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COMMUNITY BANCORP /VT (CMTV)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 EPS was $0.62 and net income $3.5M, up 24.9% YoY, driven by loan growth and higher rates; net interest income rose 12.9% to $9.4M .
  • Balance sheet trends were mixed: total assets declined $61.1M from year-end on maturing advances, but assets were still up 8.2% YoY to $1.19B; deposits rose 10.85% YoY and loans grew 8.53% YoY .
  • AFS securities valuation improved: AOCI unrealized loss narrowed to $13.4M vs $15.8M at 12/31/24 and $17.4M at 3/31/24; equity/book value per share increased to $102.9M/$18.05 .
  • Operating expenses increased 3.2% YoY (FDIC insurance, service contracts), partially offset by lower salaries and reduced core vendor costs after a Jan 1, 2025 renegotiation; quarterly dividend maintained at $0.24 .
  • Wall Street consensus EPS and revenue for Q1 2025 were not available via S&P Global for CMTV; treat the quarter as a fundamentals-driven story with catalysts in deposit/loan momentum and improving AFS marks .

What Went Well and What Went Wrong

What Went Well

  • Sharply higher earnings: net income up $702,554 to $3.5M and EPS $0.62, reflecting stronger net interest income and higher yields, plus $236,015 more interest on fed funds/overnight deposits .
  • Robust franchise momentum: loans +$73.9M (+8.53%) and deposits +$96M (+10.85%) YoY, signaling healthy customer engagement despite macro uncertainty .
  • Capital and valuation tailwinds: AFS unrealized losses reduced to $13.4M and book value/share increased to $18.05; CEO emphasized “strong results across the board” and intent to “maintain momentum” in 2025 .

What Went Wrong

  • Sequential balance sheet contraction: total assets fell $61.1M vs 12/31 due to maturity of two advances totaling $46.5M, constraining near-term balance sheet size .
  • Deposit funding cost pressure: interest on deposits expense increased $1,105,735 (+35.9% YoY), compressing the benefit from asset yield expansion .
  • Non-interest dynamics: non-interest income declined 3.38% YoY to $1.58M and operating expenses rose 3.23% YoY to $6.50M on higher FDIC insurance and service contracts .

Financial Results

Income Statement vs Prior Periods

MetricQ3 2024Q4 2024Q1 2025
Net Interest Income ($USD Millions)$8.70 $9.50 $9.40
Non-Interest Income ($USD Millions)$2.00 N/A$1.58
Provision for Credit Losses ($USD Millions)$0.461 $0.028 $0.325
Net Income ($USD Millions)$3.10 $4.10 $3.50
Diluted EPS ($USD)$0.55 $0.73 $0.62

Balance Sheet Snapshot

MetricQ3 2024Q4 2024Q1 2025
Total Assets ($USD Billions)$1.20 $1.25 $1.19
Equity ($USD Millions)$98.3 $98.0 $102.9
Book Value per Share ($USD)$17.36 $17.24 $18.05
AOCI Unrealized Loss on AFS ($USD Millions)$(12.4) $(15.8) $(13.4)

KPIs and Growth

KPIQ3 2024Q4 2024Q1 2025
Loan Portfolio YoY Growth ($USD Millions, %)$74.1; 8.84% $82.5; 9.8% $73.9; 8.53%
Deposit Balances YoY Change ($USD Millions, %)$28; 3.15% N/A$96; 10.85%

Margins (S&P Global)

MetricQ3 2024Q4 2024Q1 2025
Net Income Margin %N/AN/A32.97%*
Return On Equity %N/AN/A14.03%*

Values marked with * retrieved from S&P Global.

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Quarterly Dividend per ShareQ1 2025 payable May 1, 2025$0.24 (Q4 2024) $0.24 Maintained
Stock Repurchase ProgramAuthorized July 24, 2024Up to 275,000 shares; no repurchases as of 9/30/24 No update disclosed in Q1 2025 8-KMaintained (no activity disclosed)

No numeric guidance was provided for revenue, margins, OpEx, OI&E, or tax rate .

Earnings Call Themes & Trends

Note: No Q1 2025 earnings call transcript appears to be available on public sources ; company IR lists the press release but no transcript .

TopicPrevious Mentions (Q3 2024, Q4 2024)Current Period (Q1 2025)Trend
Interest Rate EnvironmentPersistent high rates challenged bottom line; net interest income up modestly; AOCI improving Higher asset yields lifted net interest income; AOCI improvement continued Improving valuation/AOCI; funding cost pressure persists
Loan GrowthTen consecutive quarters of YoY loan growth; +$74.1M YoY +$73.9M YoY loan growth Sustained
Deposit TrendsDeposits +$28M YoY Deposits +$96M YoY Accelerating YoY
Funding & Borrowed FundsBorrowed funds up to support growth Two advances matured ($46.5M), lowering cash/assets Shift toward deposits; lower wholesale funds
Non-Interest ExpensesHealth benefits +$600k YoY; legal/collection costs related to workout Higher FDIC and service contracts; lower salaries; core vendor cost cut via renegotiation Mixed; cost actions offset some pressures
Capital & DividendsDividend raised to $0.24 in Q3; equity/book value higher Dividend maintained at $0.24; equity/book value further increased Stable shareholder return; stronger capital

Management Commentary

  • “Community National Bank began 2025 with strong results across the board… sharply higher earnings and the continued growth in our loan portfolio and deposit balances… our team clearly understands what it means to be community bankers… focus on maintaining our momentum this year, even amid the unpredictable economy.” — CEO Christopher Caldwell .
  • Prior quarter tone: “Record total assets… continued growth in our loan portfolio… we look forward to maintaining our momentum this year, even amid economic uncertainty.” — CEO Christopher Caldwell (Q4 2024) .

Q&A Highlights

No Q1 2025 earnings call transcript was available from public sources; thus, no Q&A highlights or clarifications to report .

Estimates Context

  • S&P Global consensus EPS and revenue for Q1 2025 appear unavailable for CMTV; OTC community banks often have limited coverage. Actual EPS was $0.62 and actual total revenue was approximately $10.69M* (net interest income plus non-interest income proxy) .
  • With no published consensus, estimate revisions are unlikely to be a driver; investors should focus on trajectory in net interest income, deposit/loan growth and expense control.
    Values marked with * retrieved from S&P Global.
MetricQ1 2025 ConsensusQ1 2025 ActualSurprise
EPS ($)N/A$0.62 N/A
Revenue ($USD Millions)N/A10.69*N/A

Key Takeaways for Investors

  • Earnings momentum: Strong YoY EPS/net income growth supported by higher asset yields and loan growth; watch persistence vs rising deposit costs .
  • Funding mix pivot: Asset decline vs Q4 reflects maturing advances; YoY deposit inflows indicate a favorable shift away from wholesale funding .
  • Capital accretion: Equity and book value per share increased, aided by improved AFS marks (AOCI); this strengthens resilience and optionality on dividends/repurchases .
  • Cost discipline emerging: Vendor renegotiation and lower salaries partially offset higher FDIC/service costs; track run-rate OpEx through mid-2025 .
  • Balance sheet sensitivity: Continued rate normalization could further improve AFS valuations and capital; conversely, stubborn funding costs would temper NII gains .
  • Dividend stability: $0.24 quarterly dividend maintained; with rising book value, payout appears sustainable absent credit/funding shocks .
  • Trading lens: Near-term catalysts include sustained deposit growth, NII stability, and additional AOCI improvement; lack of Street coverage means price may react more to reported fundamentals and local banking sentiment than to consensus “beats.”
Sources: Q1 2025 8-K/press release **[718413_0001654954-25-004520_cmtv_ex991.htm:1]** **[718413_0001654954-25-004520_cmtv_ex991.htm:2]** **[718413_0001654954-25-004520_cmtv_ex991.htm:3]**; Q4 2024 8-K/press release **[718413_0001654954-25-000639_cmtv_ex991.htm:1]** **[718413_0001654954-25-000639_cmtv_ex991.htm:2]**; Q3 2024 8-K/press release **[718413_0001654954-24-013060_cmtv_ex991.htm:1]** **[718413_0001654954-24-013060_cmtv_ex991.htm:2]**; IR page confirmations **[https://communitybancorpvt.com/financials/quarterly-results/default.aspx]**. 
Values from S&P Global are marked with *.