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Community Bancorp Q4 Earnings Rise Y/Y on Loan Growth & Margin Gains
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Shares of Community Bancorp. (CMTV - Free Report) have remained flat since reporting earnings for the fourth quarter of 2025. This compares to the S&P 500 index’s 0.3% return over the same time frame. Over the past month, the stock has risen 12.5% compared with the S&P 500’s 1.4% growth.
Community Bancorp reported solid earnings growth for both the fourth quarter and the year ended Dec. 31, 2025. Fourth-quarter net income rose to $4.6 million, or 83 cents per share, from $4.1 million, or 73 cents per share, in the year-ago period, representing a 13.1% increase in net income and a 13.7% rise in earnings per share. For 2025, net income increased to $17 million, or $3.01 per share, from $12.8 million, or $2.28 per share, in 2024. This reflected a 32.9% year-over-year increase in net income and a 32% rise in full-year EPS, supported by stronger net interest income and higher non-interest revenues.
Other Key Business Metrics
Balance sheet growth remained steady in the year. Total assets reached $1.29 billion at Dec. 31, 2025, up $38.6 million, or 3.1%, from the prior year. Gross loans increased year over year by $37 million or 4%, reflecting continued loan demand, while deposit balances grew by $69 million or 6.9%. Cash and cash equivalents also rose meaningfully, increasing 15.4% from the end of 2024.
The securities portfolio declined 9.5% to $144 million as cash flows from maturing securities were redeployed into loan growth. Capital ratios remained strong, with total capital to risk-weighted assets at 15.2% and common equity tier 1 capital at 13.95% at the year-end.
Profitability metrics showed improvement. Full-year return on average assets was 1.41%, while return on average shareholders’ equity reached 16.04%. Net interest margin for the year was 3.68%, reflecting higher loan yields and controlled funding costs. The efficiency ratio stood at 57% for the full year, indicating relatively stable expense management despite higher operating costs.
Management Commentary
President and chief executive officer Christopher Caldwell highlighted disciplined balance sheet management and customer-focused strategies as key contributors to the company’s performance. He noted that earnings growth was driven by prudent loan and deposit management, alongside a continued emphasis on credit quality and efficient capital use. Caldwell also pointed to the 20% increase in tangible book value and more than 30% growth in earnings per share as evidence of value creation for shareholders, while acknowledging ongoing economic uncertainty and competitive pressures in the banking environment.
Factors Influencing the Headline Numbers
Net interest income was a primary driver of earnings growth. Fourth-quarter net interest income increased 16% year over year to $11 million, while full-year net interest income rose 18% to $40.9 million. This improvement was largely attributable to higher interest and fee income on loans, which increased 9.3% for the year, reflecting both loan growth and improved yields. Interest expenses rose at a slower pace, with deposit interest expenses increasing modestly compared with growth in earning assets.
Provision for credit losses increased in the quarter and year, reflecting a commercial loan charge-off in the fourth quarter of 2025. The quarterly provision rose to $382,807 from $27,504 in the prior-year quarter, while the full-year provision increased to $1.4 million from $1.1 million. Despite this, net loan charge-offs as a percentage of average loans remained low at 0.04%.
Non-interest income also contributed positively. Fourth-quarter non-interest income increased 23% year over year, while full-year non-interest income rose 10.1% to $7.9 million. These gains were partially offset by higher non-interest expenses, which increased 6% for the full year, driven by higher salaries, benefits and other operating costs.
Other Developments
In the fourth quarter, Community Bancorp completed the optional redemption of all outstanding shares of its Series A Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, eliminating $1.5 million of preferred equity from its capital structure. The company also declared a quarterly cash dividend of 25 cents per share, payable Feb. 1, 2026, reflecting a dividend payout ratio of approximately 33% for the year.
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Community Bancorp Q4 Earnings Rise Y/Y on Loan Growth & Margin Gains
Shares of Community Bancorp. (CMTV - Free Report) have remained flat since reporting earnings for the fourth quarter of 2025. This compares to the S&P 500 index’s 0.3% return over the same time frame. Over the past month, the stock has risen 12.5% compared with the S&P 500’s 1.4% growth.
Community Bancorp reported solid earnings growth for both the fourth quarter and the year ended Dec. 31, 2025. Fourth-quarter net income rose to $4.6 million, or 83 cents per share, from $4.1 million, or 73 cents per share, in the year-ago period, representing a 13.1% increase in net income and a 13.7% rise in earnings per share. For 2025, net income increased to $17 million, or $3.01 per share, from $12.8 million, or $2.28 per share, in 2024. This reflected a 32.9% year-over-year increase in net income and a 32% rise in full-year EPS, supported by stronger net interest income and higher non-interest revenues.
Other Key Business Metrics
Balance sheet growth remained steady in the year. Total assets reached $1.29 billion at Dec. 31, 2025, up $38.6 million, or 3.1%, from the prior year. Gross loans increased year over year by $37 million or 4%, reflecting continued loan demand, while deposit balances grew by $69 million or 6.9%. Cash and cash equivalents also rose meaningfully, increasing 15.4% from the end of 2024.
The securities portfolio declined 9.5% to $144 million as cash flows from maturing securities were redeployed into loan growth. Capital ratios remained strong, with total capital to risk-weighted assets at 15.2% and common equity tier 1 capital at 13.95% at the year-end.
Profitability metrics showed improvement. Full-year return on average assets was 1.41%, while return on average shareholders’ equity reached 16.04%. Net interest margin for the year was 3.68%, reflecting higher loan yields and controlled funding costs. The efficiency ratio stood at 57% for the full year, indicating relatively stable expense management despite higher operating costs.
Management Commentary
President and chief executive officer Christopher Caldwell highlighted disciplined balance sheet management and customer-focused strategies as key contributors to the company’s performance. He noted that earnings growth was driven by prudent loan and deposit management, alongside a continued emphasis on credit quality and efficient capital use. Caldwell also pointed to the 20% increase in tangible book value and more than 30% growth in earnings per share as evidence of value creation for shareholders, while acknowledging ongoing economic uncertainty and competitive pressures in the banking environment.
Factors Influencing the Headline Numbers
Net interest income was a primary driver of earnings growth. Fourth-quarter net interest income increased 16% year over year to $11 million, while full-year net interest income rose 18% to $40.9 million. This improvement was largely attributable to higher interest and fee income on loans, which increased 9.3% for the year, reflecting both loan growth and improved yields. Interest expenses rose at a slower pace, with deposit interest expenses increasing modestly compared with growth in earning assets.
Provision for credit losses increased in the quarter and year, reflecting a commercial loan charge-off in the fourth quarter of 2025. The quarterly provision rose to $382,807 from $27,504 in the prior-year quarter, while the full-year provision increased to $1.4 million from $1.1 million. Despite this, net loan charge-offs as a percentage of average loans remained low at 0.04%.
Non-interest income also contributed positively. Fourth-quarter non-interest income increased 23% year over year, while full-year non-interest income rose 10.1% to $7.9 million. These gains were partially offset by higher non-interest expenses, which increased 6% for the full year, driven by higher salaries, benefits and other operating costs.
Other Developments
In the fourth quarter, Community Bancorp completed the optional redemption of all outstanding shares of its Series A Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, eliminating $1.5 million of preferred equity from its capital structure. The company also declared a quarterly cash dividend of 25 cents per share, payable Feb. 1, 2026, reflecting a dividend payout ratio of approximately 33% for the year.