8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

April 12, 2019

(Date of Report - Date of earliest event reported on)

Vermont	000-16435	03-0284070
(State of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

4811 US Route 5, Derby, Vermont	05829
(Address of Principal Executive Offices)	(Zip Code)

Registrant's Telephone Number: (802) 334-7915

Not Applicable

(Former name, former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[  ] Written communications pursuant to Rule 425 under the Securities Act (17CFR 203.425)

[  ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[  ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[  ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02. Results of Operations and Financial Condition

As provided in General Instruction B.2 to Form 8-K, the information furnished in this Item 2.02 and in Exhibit 99.1 hereto shall not be deemed filed for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing with the Securities and Exchange Commission, except as shall be expressly provided by specific reference in such filing.

On April 12, 2019, Community Bancorp. issued a press release, a copy of which is furnished as Exhibit 99.1 to this Report on Form 8-K, announcing its earnings for the period ended March 31, 2019.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits

The following Exhibit, referred to in Item 2.02 of this Report is furnished, not filed, herewith:

Exhibit 99.1, Press Release dated April 12, 2019.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	COMMUNITY BANCORP.
DATED: April 12, 2019	/s/ Kathryn M. Austin
	Kathryn M. Austin, President &
	Chief Executive Officer

EX-99

Exhibit 99.1

PRESS RELEASE

Community Bancorp. Reports Earnings and Dividend April 12, 2019

Derby, Vermont For immediate release

For more information, contact: Kathryn Austin, President and CEO at (802) 334-7915

Community Bancorp., the parent company of Community National Bank, has reported earnings for the first quarter ended March 31, 2019, of $1,771,905 or $0.34 per share compared to $1,982,543 or $0.38 per share for the first quarter of 2018.

Total assets for the Company at the end of the quarter were $706,733,113 compared to $720,347,498 at year-end 2018 and $665,971,750 at the end of the quarter a year ago. The decrease in total consolidated assets from year-end is mostly due to a decrease in cash and overnight deposits of $15.9 million which was used to offset seasonal deposit outflows of $17.8 million. Total deposit balances have increased $32.6 million, or 5.4%, year over year. The $40.7 million increase in assets, year over year, was due to an increase in loans of $26.9 million during 2018 and an increase in overnight deposits of 12.1 million. At quarter end, the loan portfolio balances remained flat from year-end 2018.

Contributing to the decline in earnings, year over year, is a decrease in fee income related to the origination of residential loans, both documentation fees on portfolio loans and points and premiums related to the sale of loans in the secondary market. The decrease is due to a lower level of mortgage loan originations for the first quarter of 2019 totaling $5.7 million compared to $8.9 million for the first quarter of 2018, resulting in a 70.9% decrease in gain on loans sold and a 49.3% decrease in documentation fees collected on loans originated and held in portfolio.

Total noninterest expenses increased $379 thousand, or 8.2% year over year, mostly due to increases in salaries and the rising cost of health insurance premiums.

In commenting on the Company’s earnings, President and CEO Kathryn Austin said “While the increases in rates have provided an increase in the net interest margin, it is now having a more significant impact on our cost of funds. The market is demanding higher rates on the more rate sensitive deposit accounts such as interest bearing checking accounts and money market accounts. Increases in salaries are largely due to our efforts to ensure our salary ranges are competitive in this tightening labor market. We want to attract and retain the best employees to serve our customers’ needs.”

As previously announced, the Company has declared a quarterly cash dividend of $0.19 per share payable May 1, 2019 to shareholders of record as of April 15, 2019.

Community National Bank is an independent bank that has been serving its communities since 1851, with offices located in Derby, Derby Line, Island Pond, Barton, Newport, Troy, St. Johnsbury, Montpelier, Barre, Lyndonville, Morrisville and Enosburg Falls.

Forward Looking Statements

This press release contains forward-looking statements, including, without limitation, statements about the Company’s financial condition, capital status, dividend payment practices, business outlook and affairs. Although these statements are based on management’s current expectations and estimates, actual conditions, results, and events may differ materially from those contemplated by such forward-looking statements, as they could be influenced by numerous factors which are unpredictable and outside the Company’s control. Factors that may cause actual results to differ materially from such statements include, among others, the following: (1) general economic or monetary conditions, either nationally or regionally, continue to decline, resulting in a deterioration in credit quality or diminished demand for the Company’s products and services; (2) changes in laws or government rules, or the way in which courts interpret those laws or rules, adversely affect the financial industry generally or the Company’s business in particular, or may impose additional costs and regulatory requirements; (3) interest rates change in such a way as to reduce the Company’s interest margins and its funding sources; and (4) competitive pressures increase among financial services providers in the Company’s northern New England market area or in the financial services industry generally, including pressures from nonbank financial service providers, from increasing consolidation and integration of financial service providers and from changes in technology and delivery systems.