Shares of Community Bancorp (CMTV Quick QuoteCMTV - Free Report) have gained 2.7% since the company reported its earnings for the third quarter of 2025. This compares to the S&P 500 index’s 0.1% decline over the same time frame. Over the past month, the stock has risen 2.2% compared with the S&P 500’s 1.3% gain.

Community Bancorp reported robust results for the third quarter ended Sept. 30, 2025, reflecting significant growth across key metrics. Net income rose to $4.7 million, or 84 cents per share, marking a 52.4% increase from $3.1 million, or 55 cents per share, in the prior-year quarter. For the nine months ended Sept. 30, 2025, earnings climbed 42.3% year over year to $12.3 million, or $2.18 per share, from $8.7 million, or $1.55 per share, in the comparable 2024 period. The improvement was primarily driven by strong loan growth and expanding net interest income, which helped offset modest increases in non-interest expenses.

Solid Loan and Deposit Growth of CMTV

Total assets stood at $1.23 billion as of Sept. 30, 2025, up 4.15% year over year from $1.18 billion. The increase stemmed from sustained expansion in the loan portfolio, which rose $49 million, or 5.39%, compared with the 2024 period. Deposit balances advanced $78.7 million, or 8.47%, year over year, and were $6.7 million higher than at year-end 2024. The loan growth was funded through a combination of cash and higher core and brokered deposits. Conversely, total assets declined $22.8 million from year-end 2024 due to the use of cash for debt repayment and maturities in the investment portfolio.

The company’s securities portfolio contracted 10.7% to $152 million from $170.5 million a year earlier, reflecting strategic balance sheet adjustments and the effect of interest rate dynamics on fair value. The unrealized loss adjustment to equity improved to $10.5 million as of Sept. 30, 2025 compared with $12.4 million a year earlier, aided by stabilizing bond yields.

CMTV’s Earnings Supported by Higher Net Interest Income

Net interest income, a critical profitability driver, increased 21.4% year over year to $10.5 million in the third quarter compared with $8.7 million in the same period of 2024. The growth was fueled by higher yields and a $1.5 million, or 11.5%, rise in interest and fees on loans. Interest expenses increased modestly by just 2.4% on deposits and 20.9% on repurchase agreements, underscoring disciplined funding cost management. For the first nine months of 2025, net interest income reached $29.8 million, up 18.8% from $25.1 million in the prior-year period.

The provision for credit losses fell to $258,753 in the third quarter from $460,745 a year earlier. For the nine-month period, provisions totaled $990,853, down from $1.1 million in 2024. The decline primarily reflected a large commercial loan charge-off recorded in 2024. The company continues to apply the Current Expected Credit Loss (“CECL”) methodology for evaluating credit risk.

Modest Increase in Non-Interest Income and Expenses

Non-interest income for the third quarter totaled $2.1 million, up 4.4% from $2 million in the same quarter of 2024. For the nine months ended Sept. 30, 2025, it rose 5.9% year over year to $5.7 million. Growth was driven by steady service fee income and other banking-related revenues. Meanwhile, non-interest expenses increased only 1.3% in the quarter and 3.6% year to date, reflecting effective cost controls even as business volumes grew.

CMTV’s Strengthened Capital Position

Equity capital improved to $111.9 million as of Sept. 30, 2025, from $98.3 million a year earlier, representing a 13.9% increase. Book value per share rose to $19.64 compared with $17.36 in the year-ago quarter, aided by higher retained earnings and reduced unrealized losses in the investment portfolio. Management emphasized that these unrealized losses are temporary and do not affect regulatory capital ratios. The strengthening of book value and capital reflects the company’s sustained earnings momentum and prudent balance sheet management.

CMTV: Management Commentary

President and CEO Christopher Caldwell attributed the robust earnings to the company’s disciplined execution and commitment to community banking values. He highlighted that strong results enabled the fourth consecutive annual dividend increase since 2020 and reaffirmed management’s focus on returning capital to shareholders. Caldwell also emphasized the bank’s resilience amid sector consolidation and macroeconomic uncertainty, noting that Community Bancorp’s performance underscores its ability to deliver “strong returns for shareholders” and “exceptional service” to customers and communities. He reaffirmed that maintaining strategic initiatives will remain central to its 2026 planning.

CMTV’s Dividend Growth and Outlook

The board declared a quarterly cash dividend of 25 cents per share, payable Nov. 1, 2025, to shareholders of record as of Oct. 15, 2025. The payout represents a 4% increase from the previous quarter’s dividend, marking the fourth consecutive annual dividend hike since 2020. This decision reflects the company’s confidence in its earnings trajectory and capital position. While no formal guidance was issued, management’s commentary suggested continued focus on efficiency, disciplined balance sheet management and maintaining strong community relationships as key strategic priorities for the remainder of 2025 and into 2026.

Other Developments at CMTV

No acquisitions, divestitures or restructuring initiatives were announced during the quarter. The company continues to operate as an independent community bank serving northern New England, with branches across Vermont and loan offices in Burlington, VT, and Lebanon, NH.