Company: CMTV
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001654954-25-009542
Chunk: 81

Company: COMMUNITY BANCORP /VT
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 81
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$57,613,672          Residential real estate - 1st lien  0.00%  0.00%Net recoveries during the period $219  $0 Average amount outstanding $223,510,841  $209,128,975          Residential real estate - Jr lien  0.00%  0.01%Net recoveries during the period $0  $2,415 Average amount outstanding $36,512,026  $31,625,031          Consumer  -2.13%  -0.81%Net charge-offs during the period $(51,292) $(26,303)Average amount outstanding $2,404,792  $3,236,126          Total loans  -0.01%  -0.02%Net charge-offs during the period $(74,177) $(176,731)Average amount outstanding $944,997,126  $865,334,523 

In addition to credit risk in the Company’s loan and investment portfolios and its off-balance sheet commitments, and liquidity risk in its loan and deposit-taking operations, the Company’s business activities also generate market risk.  Market risk is the risk of loss in a financial instrument arising from adverse changes in market prices and rates, foreign currency exchange rates, commodity prices and equity prices.  Declining capital markets and changes in interest rates can result in fair value adjustments to asset valuations or the need to create a related reserve or allowance.  The Company does not have any market risk sensitive instruments acquired for trading purposes.  The Company’s market risk arises primarily from interest rate risk inherent in its lending, deposit taking and investment activities.  During recessionary periods, a declining housing market can result in an increase in loan loss reserves or ultimately an increase in foreclosures and credit-related losses.  Interest rate risk is directly related to the different maturities and repricing characteristics of interest-bearing assets and liabilities, as well as to loan prepayment risks, early withdrawal of time deposits, and the fact that the speed and magnitude of responses to interest rate changes vary by product.  Rapid changes in prevailing interest rates, particularly after a long period of relative stability, create a challenging interest rate environment. As discussed above under "Interest Rate Risk and Asset and Liability Management", the Company actively monitors and manages its interest rate risk through