Community Bancorp. · NASDAQ:CMTV
Community Bancorp — Q1 2025 Earnings Presentation
43 slides from Community Bancorp's earnings presentation, Jun 3, 2025
Slide 1: Community Bancorp 2025 First Quarter Investor Presentation
Community Bancorp (OTCQX:CMTV) 2025 First Quarter Investor Presentation
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements that are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including, without limitation, statements about the Company's financial condition, capital status, d
Slide 3: Disclaimers
Disclaimers The contents of this presentation are intended for informational purposes only and are not intended as investment advice or as an offer to sell or solicitation of an offer to buy any securities. The Company has not independently verified any third party information and makes to represent
Slide 4: Table of Contents
Table of Contents Executive Summary Management Team Overview Key Market Highlights Income Statement Highlights Compelling Value Proposition Assets & Liabilities Highlights Asset Quality Highlights Capital Highlights Appendix =} =} <f=}=|=|-| =] =
Slide 5: I. Executive Summary
|. Executive Summary ‘National Bank
Slide 6: Community Bancorp — Who We Are
Community Bancorp — Who We Are Company Overview Vermont’s Community Bank” = Founded in 1851 and headquartered in Derby, VT = Focused on commercial lending and financial solutions for individuals, businesses, and municipalities throughout Northern and Central Vermont = Ranked #1 bank in Vermont by Fo
Slide 7: Community Bancorp — Highlights and Value Proposition
Community Bancorp — Highlights and Value Proposition = Experienced Leadership Team & Board Aligned With Shareholders = With deep expertise and a strong track record, the Bank’s leadership team consistently drives success = Management and the board own 8.57% of shares combined as of May 2025 = Strong
Slide 8: Community Financial Services Group (CFSG) Success Story
Community Financial Services Group (CFSG) Success Story Community National Bank holds a 33% stake in its trust and investment affiliate, Community Financial Services Group (CFSG), which is expected to move to 50%'") Founded in 2002, CFSG provides trust and investment management services to individua
Slide 9: II. Management Team Overview
Il. Management Team Overview ‘National Bank
Slide 10: Seasoned Leadership Team, With Deep Bench Behind Them
Seasoned Leadership Team, With Deep Bench Behind Them Gommunity National Bank + Joined The Bank in April 2021 as Senior Vice President and Senior Lender and was promoted to Executive Vice President and Chief Lending Officer in July of that year + Promoted to President and Chief Executive Officer in
Slide 11: III. Key Market Highlights
Ill. Key Market Highlights ‘National Bank i)
Slide 12: Franchise Has Significant Scarcity Value As The Second Largest Stock-Owned Bank
Franchise Has Significant Scarcity Value As The Second Largest Stock- Owned Bank Across Vermont and New Hampshire Greater New England has relatively few publicly traded, stock-owned banks leaving investors with limited optionality Market Demographics Deposit Heatmap Orleans Franklin Lamoille Eenen 9
Slide 13: Our Markets: Leading Market Share in Northeast Kingdom
Our Markets: Leading Market Share in “Northeast Kingdom” Community National Bank has leading market share in its markets centered in the Northeast Kingdom of Vermont. The Bank also has a significant growth trajectory through lending activities in Burlington, VT and the Upper Valley region of NH Orle
Slide 14: Our Markets: Vermont's Balanced Economy Signals Relative Stability
Our Markets: Vermont’s Balanced Economy Signals Relative Stability Vermont consistently demonstrates lower unemployment and stronger home price growth than the national average, offering reliable economic stability during challenging times Unemployment (Seasonally Adjusted) All Transactions — House
Slide 15: IV. Income Statement Highlights
IV. Income Statement Highlights ‘National Bank 15
Slide 16: Community National Bank — Performance Trends
Community National Bank — Performance Trends Commentary —_—__=_ Return on Average Assets (%) — + The Bank has experienced steady returns since 2.00 2021, consistently returning well above 1.00% of 115 average assets and keeping a Net Interest 1.50 145 141 136 Margin above 3.00% throughout that same
Slide 17: Operating Leverage Built Upon Disciplined Expense Management and Measured Growth
Operating Leverage Built Upon Disciplined Expense Management and Measured Growth The Bank has managed to maintain a strong P&L amidst recent headwinds for the banking industry Net Interest Income MNoninterest Expense \Noninterest Income (dollars in thousands) $70,000 $60,000 $50,000 $45,012 $42,370
Slide 18: Consistent Net Interest Income Growth & Net Interest Margin Maintenance
Consistent Net Interest Income Growth & Net Interest Margin MaintenanceThrough Difficult Environments = Net Interest Income (NII) and Net Interest Margin (NIM) = (dollars in thousands) Key Components of Nil and NIM — = ‘== Loan Yield —®—Cost of Int. Bearing Dep. Cost of Funds $60,000 7.50% 8.00% $50
Slide 19: V. Compelling Value Proposition
V. Compelling Value Proposition ‘National Bank 19
Slide 20: Consistently Growing EPS and Tangible Book + Dividends
Consistently Growing EPS and Tangible Book + Dividends Earnings Growth and Tangible Book Value + Dividend Growth have been strong and have outpaced share price gains in recent years 400% ae 320% 300% 250% 200% +Spig 188% 100% 50% 98% 0% -50% os sos ers roe s Or oss —=—TBVPS+Dividends EPS Growth ==Sh
Slide 21: Compelling Value Proposition in Context of Profitability
Compelling Value Proposition in Context of Profitability Above Peer Profitability Profile Viewed In The Context of Q1'25 Valuation Robust Profitability Metrics ROAA (%) ROATCE (%) a5 16.00 087 i ; Valuation Fundamentals Price / LTM EPS (x) Price / TBV (%) 1149 102 79 J ie [Bh [reconesre Efficiency R
Slide 22: P/TBV Valuation Relative to Return on Equity
P/TBV Valuation Relative to Return on Equity Last Twelve Month ROATCE of ~16% and P/TBV of 115%. 450.0 150.0 es 5.00 10.00 15.00 20.00 25.00 30.00 35.00 2025E ROATCE (%) ‘Source: S&P Capital !Q Pro; financial data as of March 31, 2025; market data as of May 6, 2025 22 "Note: Includes banks between $
Slide 23: CMTV Historical Share Price Performance & Valuation Metrics
CMTV Historical Share Price Performance & Valuation Metrics $30.00 $25.00 $20.00 $15.00 $10.00 $5.00 CMTV Current Valuation Metrics (as of 05/06/25) ‘Closing Share Price ($) W751 Market Capitalization (mm) 984 ‘Common Shares Outstanding (#) 5,616,853 Three-month Daily Avg. Volume (shrs) 2,047 Divide
Slide 24: VI. Assets & Liabilities Highlights
VI. Assets & Liabilities Highlights ‘National Bank 24
Slide 25: Tactically Growing Balance Sheet & Accreting Capital
Tactically Growing Balance Sheet & Accreting Capital Community Bancorp boasts core, steady growth on both sides of the balance sheet Total Assets (mm) _—— _— Total Gross Loans ($mm) —_— $1,600 $1,200 10.0% CAGR $900 $929 $941 $046 $600 $300 2o21y — 2022¥ «= 2023Y += 2024¥ = 20251 “ “goaty —2022y—ozs
Slide 26: Well Diversified Loan Portfolio, With Commercial Focus
Well Diversified Loan Portfolio, With Commercial Focus — Total Gross Loans ($mm)?) —_ = 3/31/25 Bank Loan Composition — Other ‘Ag. Prod., 79% $1,200 Ooze Commercial & Industrial 12.8% Muttifam, 11.6% $900 nn Farm 25% $600 Constr & Land | Dev 68% $300 ‘Owner Oce. CRE _Non Owner Occ. 13.6% CRE 16.1% e
Slide 27: Strong Core Deposit Base, Drives Cost-of-Funds Advantage
Strong Core Deposit Base, Drives Cost-of-Funds Advantage — Deposits Composition = Deposits Composition Over Time ($mm) — $1,400 cDs< $1,200 $100k, $1,003 $981 73% $1,000 $280 ‘$924 seo CDs > $100k, a 12.0% sm Transaction $600 pore Acts, 49 f Savings, 14.6% sm $200 s 2021Y 2022¥ 2023 2024y mlnterest-
Slide 28: Investment Portfolio Mix & Performance
Investment Portfolio Mix & Performance ——— Securities Portfolio Attributes ($000s) — ——= — Securities Portfolio Composition — ‘Structured Products $200,000 $190,026 4.00% re ‘uate 8 ‘$189,760 ‘Subdiv Secs 6.1% $175,767 13.882 $150,000 3.00% $32,041 $100,000 2.00% $50,000 1.00% Community National Ban
Slide 29: Historical Bank Loan Composition & Yields
Historical Bank Loan Composition & Yields The Bank continues to maintain a well-diversified Loan portfolio & Solid Risk-Adjusted Yields Community National Bank Loan Composition Since 2021 ($ in thousands) 2021¥ 2022Y 2023Y 2024Y 202501 Loan Composition Balance — % of Total Balance eof Total Balance
Slide 30: VII. Asset Quality Highlights
Vil. Asset Quality Highlights ‘National Bank
Slide 31: Asset Quality & Reserve Coverage Ratios
Asset Quality & Reserve Coverage Ratios Strong and Steady Asset Quality with Low NPAs and minimal Net Charge-offs _— Commentary _—— NPAs / Assets (%) _ 1.00% * The Bank saw a slight decrease in its NPAs / Assets over 081% the last 4 years , still remaining comfortably below 100 bps 0.75% of NPA's as
Slide 32: Historical Net Charge-Offs & Non-performing Assets
Historical Net Charge-Offs & Non-performing Assets The Bank has maintained significantly lower through-the-cycle NCOs, with peak NCOs of just 0.21%, compared to closer to 2% nationally 2.50% Net Charge-Offs / Avg. Loans 2.00% 1.50% 1.00% 0.50% 0.00% RY = e tPhhio Fg gt gh oh ot oh Fh ” === Community
Slide 33: VIII. Capital Highlights
VIII. Capital Highlights ‘National Bank
Slide 34: Historical Bank-Level Regulatory Capital Ratios
Historical Bank-Level Regulatory Capital Ratios The Bank has maintained strong Regulatory Capital, well in excess of regulatory well-capitalized thresholds? —« Bank-Level TCE/TA — — Bank Tier 1 Risk-Based Ratio — 18% 20% we 10% | 1417% 43.64% 13.65% 13.52% 13.69% 12% oy | oe us ay 8.81% 12% oe an, (
Slide 35: Capital Stack Overview and Strategic Priorities
Capital Stack Overview and Strategic Priorities — Capital Stack” — Capital Priortes ———— 100% 1 Organic Growth + Drive profitability by supporting proven organic loan Dr fitability b rt i 95% l growth strategy 90% ! | . = =< Dividends = 85% l . : & 27) * Continue to support return of capital to shar
Slide 36: IX. Appendix
IX. Appendix ‘National Bank
Slide 37: 2025 Q1 Highlights & Commentary
2025 Q1 Highlights & Commentary —_— Financial Highlights —_— 2025 Q1 Commentary ERE - ota! net interest income for the first quarter ended March 31, 2025, increased $1.1 million, or 12.93%, to $9.4 million, compared to $8.4 —————_ million for the same quarter in 2024. The year-over-year Total Assets
Slide 38: Community National Bank Financial Highlights
Community National Bank Financial Highlights Strong Balance Sheet growth paired with efficient earnings and high-quality assets 123112021 {sof and forthe Quarters Ended: rane os0rz024 Balance Sheet ‘Total Assets ($000) 1,055,421 1,098,634 1,248,213 1,106,658 1,099,892, 1,176,660 1,248,213, 1,187,305
Slide 39: Historical Consolidated Balance Sheet
Historical Consolidated Balance Sheet the Year Ended December 3 ASSETS Cash and due from banks ‘$10,851 $17,839 $12,303 $15,001 ‘$9,875 Federal funds sold and overnight deposits $104,199 921520 ‘$58,838 $5433 $101,065 Total eash and cash equvalents $115,050 $110,359 571,140 $20,435 $110,940 ‘Securit
Slide 40: Historical Consolidated Income Statement
Historical Consolidated Income Statement INTEREST INCOME & EXPENSE. Interest and fees on loans $31,609 $33,067 $32,558 $41,825 $49,624 Irterest on taxable debt securities $1,031 $1,305 $3,112 $3,808 $3,633 Interest on tax-exempt debt secures NA $0 $203 $361 $322 Dividends 82 $56 $83 $139 $228 [retes
Slide 41: Non-GAAP Reconciliation | Consolidated ROATCE
Non-GAAP Reconciliation | Consolidated ROATCE Dollars are in thousands, unless otherwise noted For the Quarter For the Year Ended Ended: Non-GAAP Reconciliation | Consolidated ROATCE 1231/20 12/31/21 12/31/22 12/34/23 12/31/24 03/31/25 Pre-tax Net Income $13,007 $16,121 $16,875 $16,327 «$15,203 $16,
Slide 42: Non-GAAP Reconciliation | Bank TCE/TA
Non-GAAP Reconciliation | Bank TCE/TA Dollars are in thousands, unless otherwise noted For the Quarter For the Year Ended: Ended: Non-GAAP Reconciliation | Bank TCE / TA 12/31/21 12/31/22 12/31/23 12131124 03/31/25 Total Equity $97,061 $87,018 $101,032 $110,120 $115,170 Less: Preferred Equity = = =
Slide 43: Community Bancorp
Community Bancorp.