Company: CMTV
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001654954-25-013041
Chunk: 39

Company: COMMUNITY BANCORP /VT
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 39
---
 financial effect of the loan modifications presented above to borrowers experiencing financial difficulty for the nine months ended September 30, 2025.   Weighted-   Average   Term Extension   (months)     Commercial & Industrial  84  The Company closely monitors the performance of loans to borrowers experiencing financial difficulty that have been modified to understand the effectiveness of its modification efforts.  The following table presents the performance of such loans that have been modified during the last twelve months.         Past Due      30-89 Days  90 Days   Current  Past Due  or More           Commercial & Industrial $17,988  $0  $0  There were no loans to borrowers experiencing financial difficulty that were modified within the previous twelve months that had subsequently defaulted during the nine months ended September 30, 2025.  Loans are considered defaulted at 90 days past due. Allowance for Credit Losses on OBS Credit Exposures In the ordinary course of business, the Company enters into commitments to extend credit, including commercial letters of credit and standby letters of credit. Such financial instruments are recorded as loans when they are funded.  The Company estimates expected credit losses on OBS credit exposures over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company.  The ACL on OBS credit exposures is adjusted through credit loss expense.  To appropriately measure expected credit losses, management disaggregates the loan portfolio into similar risk characteristics, identical to those determined for the loan portfolio.  An estimated funding rate is then applied to the qualifying unfunded loan commitments and letters of credit using the Company's own historical experience to estimate the expected funded amount for each loan segment as of the reporting date.  Once the expected funded amount for each loan segment is determined, the loss rate, which is the calculated expected loan loss as a percentage of the amortized cost basis for each loan segment, is applied to calculate the ACL on OBS credit exposures as of the reporting date.  The ACL on OBS credit exposures is presented within accrued interest and other liabilities on the consolidated balance sheets.  As of September 30, 2025, and December 31, 2024, the ACL on OBS credit exposures totaled $683,068 and $703,975, respectively.

Note 6.  Goodwill and Other Intangible Assets As a result of a