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Community Bancorp., ticker symbol CMTV, reported a decrease in earnings for the fourth quarter of 2023 compared to the same period in 2022, attributed to significantly higher interest rates affecting the Bank's operations. Full-year earnings for 2023 also declined slightly compared to the prior year. However, the total assets for the Company increased by 4.10% year over year, driven by an increase in loans offset by a decrease in cash. Total net interest income decreased for the fourth quarter but grew for the full year, reflecting an increase in interest and fees on loans offset by an increase in interest on deposits expense. The provision for credit losses increased year over year, primarily due to a previously disclosed write-down on a single non-performing loan. Total non-interest income and expenses also increased for both the fourth quarter and the full year compared to the same periods in 2022. Equity capital and book value per share increased as of December 31, 2023, reflecting the decrease of unrealized losses in the investment portfolio. The President and CEO commented on the Company's results, expressing optimism for maintaining momentum in 2024 despite the challenging economic environment with rising interest rates.
Positive
- Total assets for the Company increased by 4.10% year over year.
- Total net interest income grew for the full year, reflecting an increase in interest and fees on loans.
- Equity capital and book value per share increased as of December 31, 2023.
Negative
- Earnings for the fourth quarter of 2023 decreased compared to the same period in 2022.
- The provision for credit losses increased year over year, primarily due to a previously disclosed write-down on a single non-performing loan.
DERBY, VT / ACCESSWIRE / January 23, 2024 / Community Bancorp., (OTCQX:CMTV) Community National Bank reported earnings for the fourth quarter ended December 31, 2023, of $3.5 million or $0.64 per share, a decrease of $1.2 million or 24.85% compared to $4.7 million or $0.86 per share for the fourth quarter of 2022, as significantly higher interest rates affected the Bank's operations. Full year earnings for 2023 were $13.4 million or $2.43 per share, compared to $13.7 million or $2.53 per share for the prior year period, a decrease of $308 thousand or 2.24%. On a per share basis, earnings declined 25.58% in the 2023 fourth quarter compared to the prior year period; on an annual basis, earnings per share decreased slightly, 3.95% year over year, reflecting the impact of strong balance sheet management.
Total assets for the Company at December 31, 2023, were $1.10 billion, an increase of 4.10% compared to $1.06 billion at year-end 2022. The year over year balance sheet growth in 2023 was driven by an increase in loans of $96.9 million, or 12.94%, offset by a decrease in cash of $50.7 million or 71.28%.
Total net interest income for the fourth quarter ended December 31, 2023, of $9 million decreased $328 thousand, or 3.53% compared to the prior year quarter, but grew $1.1 million, or 3.40% to $34.2 million for the full year. The year over year improvement reflects an increase of $9.3 million, or 28.46%, in the interest and fees on loans due to higher interest rates, offset by an increase in interest on deposits expense of $6.1 million or 191.60%
The provision for credit losses for the fourth quarter ended December 31, 2023, was $672 thousand, compared to a negative $347 thousand for the same period in 2022. For the year ended December 31, 2023, the provision for credit losses was $1.48 million, compared to $978 thousand in the full year 2022, with the $502 thousand year over year increase driven primarily by the previously disclosed write-down on a single non-performing loan, which was paid off and partially recovered in December 2022.
Total non-interest income for the fourth quarter ended December 31, 2023, increased $75 thousand, or 4.22%, compared to the same period in 2022, and rose $532 thousand, or 8.01%, for the full-year 2023 compared to 2022. Total non-interest expenses increased $373 thousand, or 6.61%, from the fourth quarter of 2022, and grew $1.7 million, or 7.78%, for the full-year 2023 compared to 2022.
Equity capital increased to $89 million, with a book value per share of $15.87 as of December 31, 2023, compared to $75.2 million and a book value of $13.55 as of December 31, 2022. The growth reflects the decrease of unrealized losses in the investment portfolio, consistent with declining bond rates, which caused an increase in fair market value of the investment portfolio.
President and CEO Kathryn Austin commented on the Company's results: "We finished 2023 with exceptionally strong results, demonstrating continued year over year growth in assets and loans, despite a challenging economic environment with rising interest rates. Our loan growth, particularly, contrasts with overall sector declines and demonstrates our enduring relationships with customers, and we look forward to maintaining this momentum in 2024. These results also reflect the continued strength of our team and the sustained demand for the financial products and services we provide in our markets throughout Vermont and New Hampshire. We are grateful for our committed employees and their dedication to our growing customer base."
As previously announced, the Company declared a quarterly cash dividend of $0.23 per share payable February 1, 2024, to shareholders of record as of January 15, 2024.
About Community National Bank
Community National Bank is an independent bank that has been serving its communities since 1851, with retail banking offices located in Derby, Derby Line, Island Pond, Barton, Newport, Troy,
St. Johnsbury, Montpelier, Barre, Lyndonville, Morrisville and Enosburg Falls as well as loan offices located in Burlington, Vermont and Lebanon, New Hampshire.
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, and other factors that are listed from time to time in our financial filings with the SEC, including our Forms 10Q and 10K. We disclaim any responsibility to update our forward looking statements, which are valid only as of the date of this release, should circ*mstances change.
For more information, contact:
Investor Relations
ir@communitynationalbank.com
SOURCE: Community Bancorp. Inc Vermont
View the original press release on accesswire.com
The ticker symbol for Community Bancorp. is CMTV.
Earnings for the fourth quarter of 2023 were $3.5 million or $0.64 per share, a decrease of $1.2 million or 24.85% compared to the same period in 2022.
Total assets for the Company at December 31, 2023, were $1.10 billion, an increase of 4.10% compared to $1.06 billion at year-end 2022.
The provision for credit losses for the fourth quarter of 2023 was $672 thousand, compared to a negative $347 thousand for the same period in 2022.
The Company declared a quarterly cash dividend of $0.23 per share payable February 1, 2024, to shareholders of record as of January 15, 2024.
I'm a financial analyst with a deep understanding of the banking sector and corporate finance. Throughout my career, I've extensively analyzed financial statements, market trends, and economic indicators, allowing me to provide insightful perspectives on companies' performances.
Now, let's delve into the article about Community Bancorp. (ticker symbol: CMTV) and break down the key concepts mentioned:
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Earnings Performance:
- The article reports a decrease in earnings for the fourth quarter of 2023 compared to the same period in 2022. Earnings were $3.5 million or $0.64 per share, reflecting a 24.85% decline.
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Total Assets Growth:
- Total assets for the company increased by 4.10% year over year, reaching $1.10 billion at the end of December 31, 2023, compared to $1.06 billion at year-end 2022.
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Net Interest Income:
- Total net interest income decreased for the fourth quarter but grew for the full year. The decrease in the fourth quarter was attributed to higher interest rates affecting the bank's operations. However, for the full year, net interest income increased, reflecting higher interest and fees on loans.
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Provision for Credit Losses:
- The provision for credit losses increased year over year, particularly in the fourth quarter of 2023, amounting to $672 thousand compared to a negative $347 thousand for the same period in 2022. This increase was primarily due to a previously disclosed write-down on a single non-performing loan.
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Equity Capital and Book Value:
- Equity capital and book value per share increased as of December 31, 2023. The growth was attributed to the decrease of unrealized losses in the investment portfolio, consistent with declining bond rates, resulting in an increase in the fair market value of the investment portfolio.
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CEO's Comments and Outlook:
- The President and CEO, Kathryn Austin, expressed optimism for maintaining momentum in 2024 despite the challenging economic environment with rising interest rates. The CEO highlighted the company's strong results, growth in assets and loans, and the dedication of their team.
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Dividend Declaration:
- The company declared a quarterly cash dividend of $0.23 per share payable on February 1, 2024, to shareholders of record as of January 15, 2024.
In summary, while there's a decline in earnings for the fourth quarter, the company has seen growth in total assets, net interest income for the full year, and positive developments in equity capital and book value. The provision for credit losses increased due to a specific non-performing loan, and the CEO remains optimistic about future performance despite economic challenges.
