CMTV · Community Bancorp

Community Bancorp's Q1 2026 results reflect sustained profitability momentum, with net income up 23.9% to $4.4 million and diluted EPS advancing 25.8% to $0.78. This performance stems from the growth in the volume of the loan portfolio and origination of loans at higher interest rates, as well as adjustable-rate loans repricing to current market rates, which together supported higher interest income versus the prior year period. The Company's level of net interest income inherently fluctuates with changes in the level and mix of earning assets and sources of funds (volume), alongside shifts in yields earned and costs of funds (rate), underscoring the dynamic balance management navigated effectively.

Cash generation strengthened markedly, with net cash provided by operating activities at $4.1 million, enabling free cash flow of $3.9 million after $160 thousand in capital expenditures—a reduction from $275 thousand last year. Management believes this combination of high levels of potentially liquid assets, unencumbered securities, cash flows from operations, and additional borrowing capacity positions the Company well to meet its liquidity and capital needs. Deposit average volume grew steadily, attributable to CD promotional products offered throughout 2025 and into 2026, alongside an influx of customer deposit accounts, primarily municipal ones, which helped fund operations despite typical seasonal runoff.

Looking forward, assessment of expected future payment performance requires consideration of numerous factors, as noted in Management's Discussion. Refer to the 'Liquidity and Capital Resources' section for details on changes in equity capital through March 31, 2026. These elements collectively affirm Community Bancorp's resilient positioning, balancing growth drivers with risk controls in a rate-sensitive banking environment.