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CB

COMMUNITY BANCORP /VT (CMTV)·Q2 2025 Earnings Summary

Executive Summary

  • Strong quarter: Net income rose 49% YoY to $4.1M ($0.72 EPS) on robust loan-driven net interest income; sequential EPS improved ~16% vs Q1 2025 ($0.62) .
  • Key driver: Total net interest income increased 22% YoY to $9.9M on higher loan yields and balances; non-interest income also rose 16% YoY to $2.1M .
  • Balance sheet: Loans +9.23% YoY; deposits +9.92% YoY; AFS OCI improved (equity adjustment -$12.5M vs -$17.3M YoY) supporting higher book value per share to $18.69 .
  • Capital return: Quarterly dividend maintained at $0.24 (payable Aug 1, 2025) .
  • Estimates: S&P Global consensus for Q2 2025 EPS and revenue was not available, limiting “beat/miss” framing (see Estimates Context) (S&P Global).

What Went Well and What Went Wrong

What Went Well

  • Net interest income acceleration: NII up $1.8M (+22%) YoY to $9.9M on loan growth and higher yields, outpacing deposit and repo funding cost increases .
  • Fee diversification: Non-interest income rose 16.15% YoY to $2.1M, supporting top-line breadth .
  • Equity and book value up: Book value/share increased to $18.69 as AFS OCI improved (equity adjustment to -$12.5M from -$17.3M YoY) and retained earnings grew; management highlighted strong shareholder returns and brand recognition (“Forbes’ Best in State”) .

What Went Wrong

  • Funding costs still rising: Interest expense on deposits +18.22% YoY and repurchase agreements +67.57% YoY, partially offsetting asset yield gains .
  • Expense growth: Non-interest expenses +6.31% YoY in Q2; cost discipline remains an ongoing focus in a still-elevated cost environment .
  • Provision increased with growth: CECL provision $407k vs $332k YoY; growth-related reserve build continues, though credit commentary remains measured .

Financial Results

Income statement highlights (YoY and sequential)

Metric ($USD)Q2 2024Q1 2025Q2 2025
Net Income$2.7M $3.5M $4.1M
Diluted EPS$0.49 $0.62 $0.72
Total Net Interest Income$8.1M $9.4M $9.9M
Total Non-Interest Income$1.77M $1.58M $2.10M
Provision for Credit Losses$0.33M $0.33M $0.41M
Net Income Margin %28.59%*32.97%*35.16%*

Notes: Company does not present “revenue” in the press release; we show bank-relevant components (net interest income and non-interest income). Net Income Margin % sourced from S&P Global. Values marked with an asterisk are from S&P Global; Values retrieved from S&P Global.

Key comparisons and drivers:

  • YoY: EPS +47% to $0.72 on NII +22% and non-interest income +16% .
  • QoQ: EPS +16% (from $0.62 to $0.72) as NII rose from $9.4M to $9.9M .
  • Funding costs remain a headwind: deposit interest expense +18% YoY; repo interest +68% YoY .

Balance sheet and capital KPIs (period-end)

KPIQ2 2024Q2 2025
Total Assets~$1.10B $1.17B
Loans (YoY change)+$81.19M, +10.40% YoY (to Q2’24) +$79.6M, +9.23% YoY (to Q2’25)
Deposits (YoY change)-$2.45M, -0.29% YoY +$84.2M, +9.92% YoY
AFS Securities$174.4M $158.9M
AFS Equity Adjustment (OCI)-$17.3M -$12.5M
Equity / Book Value per Share$91.3M / $16.17 $106.3M / $18.69
Dividend per Share$0.23 (declared for Aug 1, 2024) $0.24 (payable Aug 1, 2025)

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Dividend per shareQ3 2025 payment (8/1/25)$0.24 per share (declared for 5/1/25) $0.24 per share (payable 8/1/25) Maintained

Note: Company did not provide formal quantitative revenue, margin, or expense guidance in Q2 2025 materials .

Earnings Call Themes & Trends

Note: No Q2 2025 earnings call transcript was available on the company’s IR site at the time of this analysis .

TopicPrevious Mentions (Q4 2024, Q1 2025)Current Period (Q2 2025)Trend
Interest rates & NIIQ4: NII +5.8% YoY despite higher deposit costs . Q1: NII +12.9% YoY on loan growth and rates .NII +22% YoY on strong loan yields/balances; deposit and repo costs still rising .Improving NII, funding costs remain headwind .
Loan growthQ4: Loans +$82.5M YoY (+9.8%) . Q1: +$73.9M YoY (+8.5%) .+$79.6M YoY (+9.23%) .Sustained growth momentum .
DepositsQ4: Cash balances up; reliance on wholesale eased late in year . Q1: Deposits +$96M YoY (+10.85%) .Deposits +$84.2M YoY (+9.92%); cyclical QoQ decline since YE .Positive YoY growth; seasonal balance decline .
Securities/OCIQ4: AFS down $30M; OCI drag persisted . Q1: AFS $168.3M; equity adj. -$13.4M (improving) .AFS $158.9M; equity adj. -$12.5M (improving) .Gradual OCI improvement with rate backdrop .
Credit/CECLQ4: Provision $28k; 2024 down YoY . Q1: Provision $325k; steady with growth .Provision $407k; growth-driven build .Normalizing with portfolio growth .
Operating expensesQ4: FY’24 non-interest expenses +8.1% (health benefits +33%) . Q1: +3.2% YoY, some vendor savings .+6.31% YoY in Q2 .Mixed; discipline vs inflationary pressures .
Capital returnQ4: $0.24 dividend; repurchase program previously authorized (2024) .$0.24 dividend for 8/1/25 .Stable dividends; buyback authorization from 2024 still in place .

Management Commentary

  • “Community National Bank continues to provide a strong return to our shareholders and communities as we pass the midpoint of 2025. Our significantly increased earnings reflect the hard work of our team as they continue to deliver on our commitment to our customers… We remain committed to staying true to our strategic initiatives to ensure this level of performance.” — Christopher Caldwell, President & CEO .
  • Recognition: “Recently the bank was recognized by Forbes’ Best in State award as the best bank in the state of Vermont.” .

Q&A Highlights

  • No analyst Q&A available; the company did not publish a Q2 2025 earnings call transcript on the investor relations page at the time of analysis .

Estimates Context

  • S&P Global consensus for Q2 2025 was unavailable for EPS and revenue at the time of this analysis (microcap coverage limited). Consequently, no formal beat/miss vs consensus can be determined (S&P Global).

Key Takeaways for Investors

  • Core earnings strength: EPS grew to $0.72 on robust NII growth (+22% YoY) from loan expansion and higher yields, despite elevated funding costs .
  • Healthy franchise momentum: Loans +9.23% YoY; deposits +9.92% YoY underpin balance sheet scalability and support NII resilience .
  • Capital and book value improving: AFS OCI adjustment improved to -$12.5M; book value/share rose to $18.69, enhancing capital flexibility .
  • Expense vigilance remains important: Non-interest expenses +6.31% YoY; discipline and vendor savings (Q1) help offset inflationary/FDIC cost pressures .
  • Credit normalization: CECL provision increased with portfolio growth; no acute credit stress signaled in releases .
  • Dividend stability: $0.24/share maintained; provides total return underpin in a rising-earnings environment .
  • Near-term trading lens: Positive narrative centered on accelerating NII and improving OCI could be a catalyst; lack of consensus estimates may reduce headline-driven volatility but places focus on organic trends and capital return .

Appendix – Additional details and cross-references

  • Net interest income drivers: Loan interest/fees +13.46% YoY; deposit interest expense +18.22% YoY; repo interest expense +67.57% YoY .
  • Non-interest income: +16.15% YoY in Q2 2025 to $2.1M .
  • Equity growth: Equity capital $106.3M (book $18.69), up from $91.3M (book $16.17) YoY; retained earnings build and improved AFS marks cited .

S&P Global disclaimer: Values marked with an asterisk are from S&P Global; Values retrieved from S&P Global.