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8-K - FORM 8K - COMMUNITY BANCORP /VT | form8kearnings123117.htm |
Exhibit
99.1
PRESS RELEASE
Community
Bancorp. Reports Earnings and Dividend
|
January
26, 2018
|
Derby,
Vermont
|
For
immediate release
|
For
more information, contact: Kathy Austin, President and CEO at (802)
334-7915
Community
Bancorp. has reported earnings for the fourth quarter ended
December 31, 2017, of $1,524,619 or $0.29 per share compared to
$1,503,685 or $0.29 per share for the fourth quarter of 2016. The
Company’s earnings of $6,231,298 or $1.21 per share for the
full year compares to $5,484,278 or $1.07 per share in 2016.
Earnings for both periods were impacted by a one-time charge to
earnings of $410,304 for the revaluation of the Company’s
deferred tax assets as a result of the Tax Cuts and Jobs Act being signed into
law on December 22, 2017.
Total
assets for the Company at year-end 2017 were $667,045,595 compared
to $637,653,665 at year-end 2016, an increase of 4.61%. The
increase in assets was due to an increase in loans of $15.6 million
and an increase in overnight deposits of $13.3 million, with the
increase in loans continuing to be attributable to growth in
commercial loans. On December 31, 2017 loans totaled $502,864,651
compared to $487,249,226 on December 31, 2016, an increase of
3.20%. Funding for the increase in earning assets was from an
increase in deposits of $55.9 million. Capital grew to $57,935,854
with a book value of $10.84 per share on December 31, 2017 compared
to $54,451,517 with a book value of $10.27 per share on December
31, 2016.
In
commenting on the Company’s earnings, Chief Executive Officer
Kathy Austin said “We are pleased with our 2017 results.
Kudos to our team for achieving loan growth, particularly in the
commercial loan portfolio, of 3.21% over 2016, as well as growth in
our deposits of over 11%. This growth in deposits helps to fund our
loan growth while decreasing our reliance on wholesale funding and
brokered deposits. We have continued to carefully manage our
expenses, evidenced by an increase in non-interest expenses year
over year of only 0.12%. I am pleased to report a Return on Average
Assets of 0.96% compared to 0.91% for 2016. These results are
attributable to our employees’ good work and their commitment
to the bank, the company and their customers.
As
previously announced, the Company has declared a quarterly cash
dividend of $0.17 per share payable February 1, 2018 to
shareholders of record as of January 15, 2018.
Community
National Bank is an independent bank that has been serving its
communities since 1851, with offices located in Derby, Derby Line,
Island Pond, Barton, Newport, Troy, St. Johnsbury, Montpelier,
Barre, Lyndonville, Morrisville and Enosburg Falls.
Forward Looking Statements
This press release contains forward-looking statements, including,
without limitation, statements about the Company’s financial
condition, capital status, dividend payment practices, business
outlook and affairs. Although these statements are based on
management’s current expectations and estimates, actual
conditions, results, and events may differ materially from those
contemplated by such forward-looking statements, as they could be
influenced by numerous factors which are unpredictable and outside
the Company’s control. Factors that may cause actual results
to differ materially from such statements include, among others,
the following: (1) general economic or monetary conditions, either
nationally or regionally, continue to decline, resulting in a
deterioration in credit quality or diminished demand for the
Company’s products and services; (2) changes in laws or
government rules, or the way in which courts interpret those laws
or rules, adversely affect the financial industry generally or the
Company’s business in particular, or may impose additional
costs and regulatory requirements; (3) interest rates change in
such a way as to reduce the Company’s interest margins and
its funding sources; and (4) competitive pressures increase among
financial services providers in the Company’s northern New
England market area or in the financial services industry
generally, including pressures from nonbank financial service
providers, from increasing consolidation and integration of
financial service providers and from changes in technology and
delivery systems.