Company: CMTV
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001654954-25-013041
Chunk: 129

Company: COMMUNITY BANCORP /VT
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 2
Chunk 129
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   13.37%Purchased  32,996   1.12%  22,415   0.84%Commercial real estate  6,783,066   50.04%  6,487,700   50.88%Municipal  175,225   7.29%  167,719   7.23%Residential real estate - 1st lien  2,634,295   23.88%  2,087,034   23.50%Residential real estate - Jr lien  467,109   4.45%  291,239   3.85%Consumer  24,769   0.31%  26,617   0.33%Total $10,769,269   100.00% $9,810,212   100.00%

The third quarter ACL analysis indicated that the reserve balance of $10.8 million as of September 30, 2025, was sufficient to cover expected credit losses that are probable and estimable as of the measurement date.  As discussed in Note 5 of the accompanying unaudited interim consolidated financial statements, included in the ACL calculation for the third quarter of 2025 are adjustments to certain qualitative factors made by management, including an increase in the risk status of the qualitative factors for external factors in the purchased loan and residential Jr. lien segments to reflect uncertainty  regarding the impact of the government shutdown as well as an increase in the risk status of volume and terms in the residential Jr. lien segment to reflect the increase in volume of these loans. 

Management believes that the quantitative calculation adequately captures the risk in these areas, and that the reserve balance continues to be directionally consistent with the overall risk profile of the Company’s loan portfolio and credit risk appetite. While the ACL is described as consisting of separate allocated portions, the entire ACL is available to support loan losses, regardless of category.  Management’s assessment of the adequacy of the ACL is presented to the full Board for approval quarterly.  

 46Table of Contents

Net charge-offs during the periods presented to average loans outstanding were as follows:

For the Nine Months Ended September 30, 2025  2024        Commercial & industrial  0.00%  -0.95%Net recoveries (charge-offs) during the period $5,394  $(