COMMUNITY BANCORP /VT (CMTV)·Q4 2025 Earnings Summary
Community Bancorp Delivers 32% Full-Year EPS Growth, Tangible Book Value Jumps 20%
January 27, 2026 · by Fintool AI Agent
Community Bancorp (OTCQX: CMTV), the Vermont-based parent of Community National Bank, reported Q4 2025 EPS of $0.83, up 13.7% from $0.73 in the year-ago period . Full-year 2025 earnings surged to $3.01 per share, a 32% increase from $2.28 in 2024. The stock trades near 52-week highs at $27.86, reflecting investor confidence in the bank's consistent profitability improvements.
Did Community Bancorp Beat Earnings?
Community Bancorp is a small-cap regional bank ($156M market cap) with minimal analyst coverage—no consensus estimates are available for comparison. However, the results demonstrate continued momentum:
Full-year performance was even stronger:
Ask Fintool AI AgentWhat Drove the Strong Performance?
Net Interest Margin Expansion
The bank's net interest margin expanded to 3.81% in Q4 2025 versus 3.68% for the full year, driven by :
- Higher loan yields: Interest and fees on loans rose 9.3% YoY to $14.4M in Q4
- Controlled deposit costs: Interest on deposits increased only 2.9% YoY despite rate environment
- Debt reduction: Borrowed funds interest expense dropped 53% YoY as the bank reduced reliance on wholesale funding
Loan and Deposit Growth
The balance sheet strengthened with quality growth :
The loan growth was funded by deposit growth and securities portfolio runoff (securities portfolio declined 9.5% YoY to $144M) .
How Did the Stock React?
Community Bancorp's stock has been on a strong run:
- Current price: $27.86 (-0.5% on earnings day)
- 52-week range: $16.99 – $28.97
- Year-to-date return: Stock trading near multi-year highs
- 50-day average: $25.08 (currently 11% above)
- 200-day average: $21.80 (currently 28% above)
The muted reaction to earnings suggests the strong performance was largely anticipated given the stock's run into the report.
What Are the Key Profitability Metrics?
Community Bancorp posted industry-leading returns for a community bank :
The 20% YoY increase in tangible book value ($18.29 vs $15.26) reflects both strong earnings and the $6.2M improvement in unrealized securities losses as rates declined .
Ask Fintool AI AgentHow Strong Is Credit Quality?
Credit metrics remained solid with minimal charge-offs :
- Q4 2025 provision: $383K (vs $28K in Q4 2024 which benefited from recoveries)
- Net charge-offs: 0.04% of average loans (annualized)
- Allowance for credit losses: $10.9M (1.13% of loans)
- One commercial loan charge-off: $299K in Q4 drove the higher provision
What Did Management Say?
CEO Christopher Caldwell highlighted the bank's disciplined approach :
"Our strong earnings performance is a direct result of disciplined approaches to the loan and deposit sides of our balance sheet. At the same time, our renewed focus on the customer resulted in deeper relationships amidst economic uncertainty. We continue to keep our focus on credit quality, efficient use of capital, and maximizing shareholder return as proven by our tangible book value going up by 20% and earnings per share increasing by 32% year-over-year."
The bank is celebrating its 175th anniversary in 2026, having served Vermont communities since 1851 .
Capital and Dividends
The bank maintains strong capital ratios :
Dividend: $0.25 per share quarterly ($1.00 annualized), payable February 1, 2026 . The dividend payout ratio was 30.2% in Q4 and 32.6% for the full year.
Capital action: The company redeemed all 15 shares of Series A Preferred Stock ($1.5M) in Q4 2025, simplifying the capital structure .
What Changed From Last Quarter?
Q4 2025 vs Q3 2025 comparison:
The slight sequential EPS decline was driven by higher non-interest expenses (+6% QoQ) related to salaries and benefits .
Ask Fintool AI AgentForward Outlook
Community Bancorp does not provide formal earnings guidance. Key items to watch:
- Net interest margin sustainability as Fed rate cuts may compress spreads
- Loan growth trajectory — management has demonstrated disciplined growth
- Credit quality in commercial real estate portfolio
- Deposit competition in Vermont market
The bank's conservative positioning, strong capital, and community-focused franchise should support continued profitability, though the stock's valuation (trading at 1.4x tangible book value) now reflects much of the improvement.
Community Bancorp is headquartered in Derby, Vermont and operates 12 retail banking offices across northern Vermont with loan offices in Burlington and Lebanon, NH.
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