Company: CMTV
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001654954-25-009542
Chunk: 127

Company: COMMUNITY BANCORP /VT
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 2
Chunk 127
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 Jr lien  326,582   4.05%  291,239   3.85%Consumer  25,083   0.31%  26,617   0.33%Total $10,549,531   100.00% $9,810,212   100.00%

The second quarter ACL analysis indicated that the reserve balance of $10.5 million as of June 30, 2025, was sufficient to cover expected credit losses that are probable and estimable as of the measurement date.  Included in the ACL calculation for the second quarter of 2025 are adjustments to certain qualitative factors made by management, including a decrease in the risk status of the qualitative factors for loan review in the commercial and CRE segments to reflect the strong loan review system that is in place, as discussed in Note 5 of the accompanying unaudited interim consolidated financial statements.

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.  

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

For the Six Months Ended June 30, 2025  2024        Commercial & industrial  -0.02%  -0.08%Net charge-offs during the period $(23,104) $(107,450)Average amount outstanding $124,770,912  $126,491,436          Purchased  0.00%  0.00%Net charge-offs during the period $0  $0 Average amount outstanding $9,558,456  $9,994,314          Commercial real estate  0.00%  -0.01%Net charge-offs during the period $0  $(45,393)Average amount outstanding $479,691,041  $427,244,969          Municipal  0.00%  0.00%Net charge-offs during the period $0  $0 Average amount outstanding