Company: CMTV
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001654954-25-013041
Chunk: 127

Company: COMMUNITY BANCORP /VT
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 2
Chunk 127
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 allocations required.  Consumer loans are generally not placed in non-accrual but are charged off by the time they reach 120 days past due.  When a loan is placed in non-accrual status, the Company reverses the accrued interest against current period income and discontinues the accrual of interest until the borrower clearly demonstrates the ability and intention to resume normal payments, typically demonstrated by regular timely payments for a period of not less than six months.  Interest payments received on non-accrual loans are generally applied as a reduction of the loan book balance.

 44Table of Contents

Credit loss expense

The credit loss expense was made up of the following components for the periods indicated:

Three Months Ended September 30,  Change   2025  2024   $   % Credit loss expense - loans $198,264  $406,955  $(208,691)  -51.28%Credit loss expense - OBS credit exposure  60,489   53,790   6,699   12.45%Credit loss expense $258,753  $460,745  $(201,992)   -43.84%

Nine Months Ended September 30,  Change   2025  2024  $    % Credit loss expense - loans $1,011,761  $1,076,676  $(64,915)  -6.03%Credit loss (reversal) expense - OBS credit exposure  (20,908)  29,230   (50,138)  -171.53%Credit loss expense $990,853  $1,105,906  $(115,053)  -10.40%

The decrease in the credit loss expense on loans in both periods of 2025 compared to the same periods of 2024, was due in part to changes in the economic forecast, prepayments speeds, loan curtailments and adjustments to certain qualitative factors used in the model, despite the increase in the volume of the loan portfolio.  The increase in the OBS credit exposure for the three months ended September 30, 2025 is attributable to an increase in unfunded loan commitments under contract and the decrease in the nine months ended September 30, 2025 is attributable to a decrease in unfunded commitments. 

ACL and provisions –