Company: CMTV
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001654954-25-005620
Chunk: 108

Company: COMMUNITY BANCORP /VT
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 2
Chunk 108
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49%  167,719   7.23%Residential real estate - 1st lien  2,524,870   23.96%  2,087,034   23.50%Residential real estate - Jr lien  313,576   3.83%  291,239   3.85%Consumer  26,097   0.33%  26,617   0.33%Total $10,173,926   100.00% $9,810,212   100.00%

The first quarter ACL analysis indicated that the reserve balance of $10.2 million as of March 31, 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 first quarter of 2025 are adjustments to several qualitative factors made by management, including an increase in the risk status of the qualitative factors for volumes and terms in the residential portfolios to reflect increasing trends in volumes. The quantitative factor for exceptions in that portfolio was also adjusted by increasing the risk status as an increasing trend was noted. In addition, the risk status for delinquency and non-performing loans was increased to reflect the uncertainty as to how and when inflation or a recession will, or could, affect our consumer customers’ ability to pay.

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 Three Months Ended March 31, 2025  2024        Commercial & industrial  -0.02%  -0.10%Net charge-offs during the period $(30,581) $(125,369)Average amount outstanding $126,564,512  $125,426,823          Purchased  0.00%  0.00%Net charge-offs during the period $0  $0 Average amount outstanding $7,379,149  $