Community Bancorp. Reports 15.5% Net Income Growth in Q2 2026

Community Bancorp. reported its financial results for the second quarter and first half of 2026, showing a net income of $4.7 million for the quarter, an increase of 15.5% from $4.1 million in the same period last year. For the first six months, net income rose to $9.1 million, up 19.4% from $7.6 million in 2025. Earnings per share for the quarter were $0.84, compared to $0.72 a year earlier, while for the six months, earnings per share increased to $1.62 from $1.34. The growth in net income was attributed to a rise in net interest income, which increased by $1.4 million, or 7.7%, for the quarter and $2.9 million, or 8.5%, for the first half, driven by a larger loan portfolio and higher interest rates.

Total assets decreased to $1.17 billion as of June 30, 2026, down 8.9% from $1.29 billion at the end of 2025. This decline was primarily due to a significant reduction in federal funds sold and overnight deposits, which fell by 95% to $5.8 million. However, loans increased slightly by $5.2 million, reaching $970.5 million, with notable growth in residential first and junior lien loans. Total deposits also decreased by 8.3% to $982 million, reflecting typical seasonal fluctuations, particularly in municipal accounts.

The company’s interest income for the second quarter rose to $16.0 million, an increase of 8.0% year-over-year, while interest expense decreased by 3.3% to $4.8 million. The net interest margin improved to 3.95% from 3.64% in the previous year, indicating better efficiency in generating income from interest-earning assets. The allowance for credit losses (ACL) increased to $11.9 million, representing 1.22% of total loans, up from 1.13% at the end of 2025, reflecting management's proactive approach to potential credit risks.

In terms of operational developments, Community Bancorp. declared a quarterly cash dividend of $0.25 per common share, payable on August 1, 2026. The company continues to focus on maintaining a strong capital position, with total shareholders' equity increasing to $120.9 million, resulting in a book value per share of $21.58, up from $20.36 at the end of 2025. Looking ahead, the company anticipates continued challenges in the economic environment, including interest rate fluctuations and credit quality, but remains committed to managing its risks effectively while pursuing growth opportunities in its lending portfolio.