What changed in this filing

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Item 1. Financial Statements

2021-11-15 compared with 2021-08-16 · 107 added, 76 removed, 818 unchanged (18% of the section changed)

3 unchanged sentences

and Subsidiary

September 30,

Consolidated Balance Sheets

38 unchanged sentences

Retained earnings

Accumulated other comprehensive income

Accumulated other comprehensive (loss) income

treasury stock, at cost;

10 unchanged sentences

and Subsidiary

Three Months Ended June 30,

Three Months Ended

September 30,

Consolidated Statements of Income

16 unchanged sentences

Other income from loans

Net realized gain on sale of securities AFS

Total non-interest income

13 unchanged sentences

and Subsidiary

Six Months Ended June 30,

Nine Months Ended

September 30,

Consolidated Statements of Income

33 unchanged sentences

Consolidated Statements of Comprehensive Income

Three Months Ended June 30,

Other comprehensive income, net of tax:

Unrealized holding gain on securities AFS arising during the period

Reclassification adjustment for gain realized in income

Unrealized gain during the period

Other comprehensive income, net of tax

Three Months Ended

September 30,

Other comprehensive loss, net of tax:

Unrealized holding loss on securities AFS arising during the period

Other comprehensive loss, net of tax

Total comprehensive income

Six Months Ended June 30,

Nine Months Ended

September 30,

Other comprehensive (loss) income, net of tax:

5 unchanged sentences

Other comprehensive (loss) income, net of tax

( 1,196,853 )

Total comprehensive income

3 unchanged sentences

Consolidated Statements of Changes in Shareholders’ Equity

Six Months Ended June 30, 2021

Nine Months Ended September 30, 2021

shareholders’

January 1, 2021

($ 2,622,777 )

Issuance of common stock

8 unchanged sentences

March 31, 2021

($ 2,622,777 )

Issuance of common stock

6 unchanged sentences

June 30, 2021

Issuance of common stock

Cash dividends declared

( 1,176,771 )

Six Months Ended June 30, 2020

( 1,176,771 )

Preferred stock

Comprehensive income

Other comprehensive loss

September 30, 2021

*Accumulated other comprehensive (loss) income

The accompanying notes are an integral part of these unaudited interim consolidated financial statements.

Nine Months Ended September 30, 2020

shareholders’

15 unchanged sentences

( 2,622,777 )

*Accumulated other comprehensive (loss) income

Issuance of common stock

Cash dividends declared

( 1,002,969 )

Preferred stock

Comprehensive income

Other comprehensive loss

September 30, 2020

( 2,622,777 )

*Accumulated other comprehensive income

The accompanying notes are an integral part of these unaudited interim consolidated financial statements.

2 unchanged sentences

Consolidated Statements of Cash Flows

Six Months Ended June 30,

Nine Months Ended September 30,

Cash Flows from Operating Activities:

7 unchanged sentences

Gain on sale of OREO

Loss (income) from CFS Partners

Capital loss on leases

Income from CFS Partners

Amortization of bond premium, net

3 unchanged sentences

( 32,015,674 )

(Decrease) increase in taxes payable

Increase in interest receivable

( 1,362,460 )

Decrease in mortgage servicing rights

Decrease in taxes payable

Decrease (increase) in interest receivable

Decrease (increase) in mortgage servicing rights

Decrease in right-of-use assets

16 unchanged sentences

Decrease in limited partnership contributions payable

Proceeds of distribution from CFS Partners

Decrease (increase) in loans, net

( 131,508,927 )

Capital expenditures net of proceeds from sales of bank premises and equipment

( 2,884,472 )

Capital expenditures net of proceeds from sales of bank

premises and equipment

Proceeds from sales of OREO

8 unchanged sentences

( 5,694,301 )

( 6,975,213 )

Net decrease in repurchase agreements

1 unchanged sentence

( 2,592,200 )

Net increase in short-term borrowings

Proceeds from long-term borrowings

Repayments on long-term borrowings

Increase (decrease) in finance lease obligations

Decrease in finance lease obligations

Dividends paid on preferred stock

3 unchanged sentences

Net cash provided by financing activities

Net decrease in cash and cash equivalents

( 18,743,386 )

( 23,869,071 )

Net increase in cash and cash equivalents

Cash and cash equivalents:

$ 129,752,036

Supplemental Schedule of Cash Paid During the Period:

3 unchanged sentences

($ 1,515,004 )

Additions to finance lease obligations

Common Shares Dividends Paid:

2 unchanged sentences

Dividends reinvested

Total dividends paid

The accompanying notes are an integral part of these unaudited interim consolidated financial statements.

8 unchanged sentences

The results of operations for the interim period are not necessarily indicative of the results of operations to be expected for any other interim period or the full annual period ending December 31, 2021.

There were no reclassifications to the consolidated financial statements for the periods presented.

There were reclassifications to the consolidated financial statements for the periods presented.

The Company is considered a “smaller reporting company” under the disclosure rules of the SEC, as amended in 2018.

87 unchanged sentences

On April 29, 2020, the FOMC indicated that the federal funds target rate range will remain unchanged until it is confident that the economy has weathered recent events and is on track to achieve its maximum employment and price stability goals.

Since that time, the FOMC has repeatedly reiterated that position, most recently in July, 2021.

Since that time, the FOMC has repeatedly reiterated that position, most recently in November, 2021.

The duration of these reductions in interest rates and other lingering after-effects of the COVID-19 pandemic could adversely affect the Company’s business, financial condition and results of operations in future periods.

It is reasonably possible that estimates made in the Company’s consolidated financial statements could be materially and adversely impacted as a result of the effects of the pandemic, including expected credit losses on loan receivables.

Recent Accounting Developments

31 unchanged sentences

The following tables illustrate the calculation of earnings per common share for the periods presented, as adjusted for the cash dividends declared on the preferred stock:

Three Months Ended June 30,

Three Months Ended September 30,

Net income, as reported

1 unchanged sentence

Net income available to common shareholders

Weighted average number of common shares used in calculating earnings per share

Weighted average number of common shares

used in calculating earnings per share

Earnings per common share

Six Months Ended June 30,

Nine Months Ended September 30,

Net income, as reported

1 unchanged sentence

Net income available to common shareholders

Weighted average number of common shares used in calculating earnings per share

Weighted average number of common shares

used in calculating earnings per share

Earnings per common share

1 unchanged sentence

Debt securities AFS as of the balance sheet dates consisted of the following:

June 30, 2021

September 30, 2021

GSE debt securities

1 unchanged sentence

Other investments

$ 111,032,475

$ 110,676,139

December 31, 2020

5 unchanged sentences

These pledged investments as of the balance sheet dates were as follows:

June 30, 2021

September 30, 2021

December 31, 2020

Proceeds from sales of debt securities were $ 884,137 for the first six months of 2020, with gains of $ 39,086 .

There were no sales for the first six months of 2021.

Proceeds from sales of debt securities were $ 884,137 for the first nine months of 2020, with gains of $ 39,086 .

There were no sales for the first nine months of 2021.

The scheduled maturities of debt securities as of the balance sheet dates were as follows:

June 30, 2021

September 30, 2021

Due in one year or less

2 unchanged sentences

Due after ten years

$ 111,032,475

$ 110,676,139

December 31, 2020

7 unchanged sentences

12 months or more

June 30, 2021

September 30, 2021

GSE debt securities

Government securities

Other investments

December 31, 2020

4 unchanged sentences

In analyzing an issuer’s financial condition, management considers whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies or other adverse developments in the status of the securities have occurred, and the results of reviews of the issuer’s financial condition.

As of June 30, 2021 and December 31, 2020, there were no declines in the fair value of any of the securities reflected in the table above that were deemed by management to be OTTI.

As of September 30, 2021 and December 31, 2020, there were no declines in the fair value of any of the securities reflected in the table above that were deemed by management to be OTTI.

Loans, Allowance for Loan Losses and Credit Quality

The composition of net loans as of the balance sheet dates was as follows:

September 30,

Commercial & industrial

12 unchanged sentences

The following is an age analysis of past due loans (including non-accrual) as of the balance sheet dates, by portfolio segment:

June 30, 2021

September 30, 2021

Commercial & industrial

14 unchanged sentences

For all loan segments, loans over 30 days past due are considered delinquent.

As of the balance sheet dates presented, residential mortgage loans in process of foreclosure consisted of the following:

As of the balance sheet dates presented, loans in process of foreclosure consisted of the following residential mortgage loans:

Number of loans

June 30, 2021

September 30, 2021

December 31, 2020

A state-imposed moratorium on residential foreclosure proceedings adopted in April 2020 in response to the COVID-19 pandemic, remained in effect in Vermont as of June 30, 2021.

A Vermont state-imposed moratorium on residential foreclosure proceedings adopted in April 2020 in response to the COVID-19 pandemic, ended on July 15, 2021.

Allowance for loan losses

19 unchanged sentences

During periods of significant expansion or contraction, the Company may appropriately shorten the historical time period.

Due primarily to the effects of COVID-19, during 2020 the Company shortened its look back period to one year, which remained in effect as of June 30, 2021.

Due primarily to the effects of COVID-19, during 2020 the Company shortened its look back period to one year, which remained in effect as of September 30, 2021.

Qualitative factors include the levels of and trends in delinquencies and non-performing loans, levels of and trends in loan risk groups, trends in volumes and terms of loans, effects of any changes in loan related policies, experience, ability and the depth of management, documentation and credit data exception levels, national and local economic trends, external factors such as competition and regulation and lastly, concentrations of credit risk in a variety of areas, including portfolio product mix, the level of loans to individual borrowers and their related interests, loans to industry segments, and the geographic distribution of CRE loans.

49 unchanged sentences

The tables below summarize changes in the ALL and select loan information, by portfolio segment, for the periods indicated.

As of or for the three months ended June 30, 2021

As of or for the three months ended September 30, 2021

ALL beginning balance

1 unchanged sentence

ALL ending balance

As of or for the six months ended June 30, 2021

As of or for the nine months ended September 30, 2021

ALL beginning balance

17 unchanged sentences

$ 709,355,330

As of or for the three months ended June 30, 2020

As of or for the three months ended September 30, 2020

ALL beginning balance

1 unchanged sentence

ALL ending balance

As of or for the six months ended June 30, 2020

As of or for the nine months ended September 30, 2020

ALL beginning balance

2 unchanged sentences

Impaired loans, by portfolio segment, were as follows:

As of June 30, 2021

As of September 30, 2021

Investment(1)

11 unchanged sentences

Total impaired loans

_____________________

Recorded investment in impaired loans as of June 30, 2021 includes accrued interest receivable and deferred net loan costs of $ 37,535 .

For the three months ended June 30, 2021.

For the six months ended June 30, 2021.

Recorded investment in impaired loans as of September 30, 2021 includes accrued interest receivable and deferred net loan costs of $ 34,179 .

For the three months ended September 30, 2021.

For the nine months ended September 30, 2021.

As of December 31, 2020

13 unchanged sentences

For the year ended December 31, 2020.

As of June 30, 2020

As of September 30, 2020

Investment(1)

11 unchanged sentences

Total impaired loans

__________________

Recorded investment in impaired loans as of June 30, 2020 includes accrued interest receivable and deferred net loan costs of $ 37,485 .

For the three months ended June 30, 2020.

For the six months ended June 30, 2020.

Recorded investment in impaired loans as of September 30, 2020 includes accrued interest receivable and deferred net loan costs of $ 34,909 .

For the three months ended September 30, 2020.

For the nine months ended September 30, 2020.

For all loan segments, the accrual of interest is discontinued when a loan is specifically determined to be impaired or when the loan is delinquent 90 days and management believes, after considering collection efforts and other factors, that the borrower’s financial condition is such that collection of interest is considered by management to be doubtful.

37 unchanged sentences

The risk ratings within the loan portfolio, by segment, as of the balance sheet dates were as follows:

As of June 30, 2021

As of September 30, 2021

$ 135,579,309

35 unchanged sentences

Under this guidance, qualifying concessions and modifications are not considered TDRs.

As of June 30, 2021, the Company had granted short term loan concessions and/or modifications within the terms of this guidance to 525 borrowers, with respect to loans having an aggregate principal balance of $ 111.0 million.

As of September 30, 2021, the Company had granted short term loan concessions and/or modifications within the terms of this guidance to 593 borrowers, with respect to loans having an aggregate principal balance of $ 109.5 million as of September 30, 2021.

These loans may bear a higher risk of default in future periods.

There were no new TDRs during the three months ended June 30, 2021.

New TDRs, by portfolio segment, during the periods presented were as follows:

Six months ended June 30, 2021

Three months ended September 30, 2021

Nine months ended September 30, 2021

Commercial & industrial

Commercial real estate

Year ended December 31, 2020

Residential real estate - 1st lien

Three months ended June 30, 2020

Six months ended June 30, 2020

Three months ended September 30, 2020

Nine months ended September 30, 2020

Residential real estate

The TDRs for which there was a payment default during the twelve month periods presented below were as follows:

For the twelve months ended June 30, 2021

For the twelve months ended September 30, 2021

Commercial & industrial

1 unchanged sentence

Residential real estate - 1st lien

For the twelve months ended June 30, 2020

For the twelve months ended September 30, 2020

Commercial & industrial

5 unchanged sentences

The specific allowances within the ALL related to TDRs as of the balance sheet dates are presented in the table below.

September 30,

Specific Allocation

49 unchanged sentences

There were no Level 3 assets or liabilities measured on a recurring basis as of the balance sheet dates presented, nor were there any transfers of assets between Levels during either 2021 or 2020.

September 30,

(market approach)

2 unchanged sentences

Other investments

Total Level 2 Assets

$ 100,575,317

$ 110,676,139

Assets and Liabilities Recorded at Fair Value on a Non-Recurring Basis

3 unchanged sentences

There were no Level 1 or Level 3 assets or liabilities measured on a non-recurring basis as of the balance sheet dates presented, nor were there any transfers of assets between levels during either 2021 or 2020.

September 30,

(market approach)

12 unchanged sentences

The estimated fair values of the Company’s financial instruments as of the balance sheet dates were as follows:

June 30, 2021

September 30, 2021

(Dollars in Thousands)

43 unchanged sentences

The following table shows the changes in the carrying amount of the MSRs, included in other assets in the consolidated balance sheets, for the periods indicated:

Six Months Ended

June 30, 2021

Nine Months Ended

September 30, 2021

December 31, 2020

9 unchanged sentences

The Company has evaluated events and transactions through the date that the financial statements were issued for potential recognition or disclosure in these financial statements, as required by GAAP.

On June 10, 2021, the Company’s Board declared a cash dividend of $ 0.22 per common share, payable August 1, 2021 to shareholders of record as of July 15, 2021.

On September 23, 2021, the Company’s Board declared a cash dividend of $ 0.22 per common share, payable November 1, 2021 to shareholders of record as of October 15, 2021.

This dividend has been recorded in the Company’s consolidated financial statements as of the declaration date, including shares issuable under the DRIP.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements