Company: CMTV
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001654954-25-013041
Chunk: 128

Company: COMMUNITY BANCORP /VT
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 2
Chunk 128
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The Company’s ACL policy provides guidance in maintaining an adequate methodology for establishing, estimating, and maintaining allowances for credit losses under ASC 326.  The policy creates a measurement model to establish a proper ACL based on current expected credit losses rather than losses incurred.

The Company maintains an ACL at a level that management believes is appropriate to absorb losses inherent in the loan portfolio as of the measurement date (See Note 5 of the accompanying unaudited interim consolidated financial statements).  Although the Company, in establishing the ACL, considers the expected inherent losses in individual loans and pools of loans, the ACL is a general reserve available to absorb all credit losses in the loan portfolio.  No part of the ACL is segregated to absorb losses from any loan or segment of loans.

When establishing the ACL each quarter, the Company applies a combination of significant key assumptions and methodologies, as discussed in the ACL section under Critical Accounting Policies in this MD&A and presented in Note 5 of the accompanying unaudited interim consolidated financial statements. 

The following table summarizes the Company’s credit risk ratios for the balance sheet dates presented:

  September 30,  December 31,   2025  2024        ACL to total loans outstanding  1.12%  1.06%ACL $10,769,269  $9,810,212 Loans outstanding $961,882,509  $927,940,805          Non-accruing loans to loans outstanding  0.84%  0.90%Non-accruing loans $8,108,381  $8,338,166 Loans outstanding $961,882,509  $927,940,805          ACL to non-accruing loans  132.82%  117.65%ACL $10,769,269  $9,810,212 Non-accruing loans $8,108,381  $8,338,166 

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The following table shows the breakdown of the ACL by loan segment and the percentage of loans in each category to total loans in the respective portfolios at the date indicated:

  September 30, 2025  December 31, 2024   Amount  Percent  Amount  Percent              Commercial & industrial $651,809   12.91% $727,488