What changed in this filing

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Item 1. Financial Statements

2026-08-14 compared with 2026-05-15 · 172 added, 87 removed, 757 unchanged (25% of the section changed)

30 unchanged sentences

1,070,668,001

$ 1,070,668,001

Repurchase agreements

7 unchanged sentences

Common stock - $ 2.50 par value;

15,000,000 shares authorized, 5,896,981

shares issued at 03/31/26 and 5,882,266 shares issued at 12/31/25

15,000,000 shares authorized, 5,902,267 shares issued at 06/30/26 and 5,882,266 shares issued at 12/31/25

Additional paid-in capital

4 unchanged sentences

treasury stock, at cost;

300,409 shares at 03/31/26 and 299,339 shares

300,409 shares at 06/30/26 and 299,339 shares at 12/31/25

( 4,532,652 )

8 unchanged sentences

and Subsidiary

Three Months Ended March 31

Three Months Ended June 30,

Consolidated Statements of Income

34 unchanged sentences

and Subsidiary

Six Months Ended June 30,

Consolidated Statements of Income

Interest income

Interest and fees on loans

Interest on taxable debt securities

Interest on tax-exempt debt securities

Interest on federal funds sold and overnight deposits

Total interest income

Interest expense

Interest on deposits

Interest on borrowed funds

Interest on repurchase agreements

Interest on junior subordinated debentures

Total interest expense

Net interest income

Credit loss expense

Net interest income after credit loss expense

Non-interest income

Income from sold loans

Other income from loans

Income from investment in CFS Partners

Total non-interest income

Non-interest expense

Salaries and wages

Employee benefits

Occupancy expenses, net

Other expenses

Total non-interest expense

Income before income taxes

Income tax expense

Earnings per common share

Weighted average number of common shares

used in computing earnings per share

Dividends declared per common share

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

Community Bancorp.

and Subsidiary

Consolidated Statements of Comprehensive Income

Three Months Ended March 31

Three Months Ended June 30,

Other comprehensive income

Unrealized (loss) gain on securities AFS arising during the period

Other comprehensive (loss) income, net of tax

Unrealized gain on securities AFS arising during the period

Other comprehensive income, net of tax

Total comprehensive income

Six Months Ended June 30,

Other comprehensive income, net of tax:

Unrealized gain on securities AFS arising during the period

Other comprehensive income, net of tax

Total comprehensive income

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

2 unchanged sentences

Consolidated Statements of Changes in Shareholders' Equity

Three Months Ended March 31, 2026

Six Months Ended June 30, 2026

shareholders'

7 unchanged sentences

( 1,393,291 )

Preferred stock

Shares purchased through stock buyback plan

5 unchanged sentences

$ 116,842,750

Issuance of common stock

Cash dividends declared

( 1,397,813 )

Preferred stock

Shares purchased through stock buyback plan

Comprehensive income

Other comprehensive income

June 30, 2026

($ 9,373,705 )

($ 4,532,652 )

$ 120,894,014

*Accumulated other comprehensive loss

Community Bancorp.

1 unchanged sentence

Consolidated Statements of Changes in Shareholders' Equity

Three Months Ended March 31, 2025

Six Months Ended June 30, 2025

shareholders'

14 unchanged sentences

$ 102,905,030

Issuance of common stock

Cash dividends declared

( 1,346,706 )

Preferred stock

Shares purchased through stock buyback plan

Comprehensive income

Other comprehensive income

June 30, 2025

($ 12,487,842 )

($ 3,170,995 )

$ 106,343,407

*Accumulated other comprehensive loss

3 unchanged sentences

Consolidated Statements of Cash Flows

Three Months Ended March 31

Six Months Ended June 30,

Cash Flows from Operating Activities:

10 unchanged sentences

Originations of loans held for sale

Increase in taxes payable

Increase in interest receivable

( 2,110,849 )

( 2,691,225 )

Decrease in taxes payable

Decrease in interest receivable

Decrease in mortgage servicing rights

Decrease in right-of-use assets

Decrease in operating lease liabilities

Decrease in other assets

Decrease (increase) in right-of-use assets

(Decrease) increase in operating lease liabilities

Decrease (increase) in other assets

Increase in cash surrender value of BOLI

1 unchanged sentence

Change in net deferred loan fees and costs

Increase (decrease) in interest payable

Decrease in interest payable

( 1,938,683 )

Decrease in accrued expenses

(Decrease) increase in other liabilities

Decrease in other liabilities

Net cash provided by operating activities

5 unchanged sentences

Purchases of restricted equity securities

( 2,107,700 )

Decrease in limited partnership contributions payable

( 1,182,994 )

Investments in limited liability entities

2 unchanged sentences

( 13,933,241 )

Capital expenditures net of proceeds from sales of bank

premises and equipment

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

Proceeds from sales of OREO

Recoveries of loans charged off

Net cash used in investing activities

( 12,099,510 )

Net cash provided by (used in) investing activities

( 10,132,040 )

12 unchanged sentences

( 21,800,000 )

Proceeds from long-term borrowings

(Repayment) proceeds from long-term borrowings

( 25,000,000 )

Decrease in finance lease obligations

3 unchanged sentences

( 2,049,080 )

( 1,957,974 )

Net cash used in financing activities

6 unchanged sentences

Supplemental Schedule of Cash Paid During the Period:

Income taxes, net of refunds

Supplemental Schedule of Noncash Investing and Financing Activities:

Change in unrealized (loss) gain on securities AFS

Change in unrealized gain on securities AFS

Additions to operating lease liabilities

16 unchanged sentences

The Company is considered a “smaller reporting company” and a “non-accelerated filer” under the disclosure rules of the SEC.

Accordingly, the Company has elected to provide smaller reporting company scaled disclosures where management deems it appropriate, and to provide its audited consolidated statements of income, comprehensive income, cash flows and changes in shareholders’ equity for a two year, rather than a three year, period is considered a “smaller reporting company” under the disclosure rules of the SEC, as amended in 2018.

Accordingly, the Company has elected to provide smaller reporting company scaled disclosures where management deems it appropriate, and to provide its audited consolidated statements of income, comprehensive income, changes in shareholders’ equity for a two-year, rather than a three year period and cash flows.

In addition to the definitions provided elsewhere in this quarterly report, the definitions, acronyms and abbreviations identified below are used throughout this report, including in Part I.

40 unchanged sentences

Current Expected Credit Loss

Other amortizing security

New Market Tax Credit

Community Financial Services Group, LLC

Off-balance sheet

Other amortizing security

CFS Partners:

Community Financial Services Partners,

Off-balance sheet

Other comprehensive income (loss)

Other real estate owned

CME Group Benchmark Administration Ltd.

Other-than-temporary impairment

Other real estate owned

Collateralized Mortgage Obligations

Private mortgage insurance

Other-than-temporary impairment

Community Bancorp.

and Subsidiary

Paycheck Protection Program

Private mortgage insurance

Commercial Real Estate

USDA Rural Development

Paycheck Protection Program

Discounted cash flow

Small Business Administration

USDA Rural Development

Demand Deposit Account(s)

Securities and Exchange Commission

Small Business Administration

Depository Trust Company

Secured Overnight Financing Rate

Securities and Exchange Commission

Dividend Reinvestment Plan

Department of Agriculture

Secured Overnight Financing Rate

Exchange Act:

Securities Exchange Act of 1934

Department of Agriculture

Veterans Administration

10 unchanged sentences

Earnings per common share amounts are computed based on the weighted average number of shares of common stock issued during the period (retroactively adjusted for stock splits and stock dividends, if any), including Dividend Reinvestment Plan shares issuable upon reinvestment of dividends declared, and reduced for shares held in treasury.

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 that was outstanding during the first quarter of 2025:

Three Months Ended March 31

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,

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,

Net income, as reported

dividends to preferred shareholders

Net income available to common shareholders

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

Earnings per common share

Investment Securities

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

March 31, 2026

June 30, 2026

GSE debt securities

$ 12,000,000 $ 0 $ 551,864 $ 11,448,136

Government securities

9,513,457 0 129,090 9,384,367

Taxable Municipal securities

300,000 0 36,986 263,014

Tax-exempt Municipal securities

10,697,807 52,743 566,939 10,183,611

114,966,030 233,518 11,291,824 103,907,724

1,496,844 0 71,364 1,425,480

688,003 0 6,983 681,020

Other investments

9 unchanged sentences

$ 144,528,758

The Company had investments in Agency MBS exceeding 10 % of shareholders’ equity with a book value of $ 114.9 million and $ 118.1 million, respectively, and a fair value of $ 103.9 million and $ 107.3 million, respectively, as of March 31, 2026 and December 31, 2025.

The Company had investments in Agency MBS exceeding 10 % of shareholders’ equity with a book value of $ 107.8 million and $ 118.2 million, respectively, and a fair value of $ 97.0 million and $ 107.3 million, respectively, as of June 30, 2026 and December 31, 2025.

Investment securities pledged as collateral for repurchase agreements consisted of certain U.S.

2 unchanged sentences

The aggregate amortized cost and fair value of these pledged investments as of the balance sheet dates were as follows:

March 31, 2026

June 30, 2026

December 31, 2025

There were no sales of debt securities during the first three months of 2026 or 2025.

There were no sales of debt securities during the first six months of 2026 or 2025.

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

March 31, 2026

June 30, 2026

Due in one year or less

15 unchanged sentences

12 months or more

March 31, 2026

June 30, 2026

GSE debt securities

15 unchanged sentences

$ 117,173,599

As of March 31, 2026 and December 31, 2025, the Company did not have the intent to sell, nor was it more likely than not that we would be required to sell, any of the debt securities AFS in an unrealized loss position as of such dates prior to recovery.

As of June 30, 2026 and December 31, 2025, the Company did not have the intent to sell, nor was it more likely than not that we would be required to sell, any of the debt securities AFS in an unrealized loss position as of such dates prior to recovery.

Management determined that no individual debt securities in an unrealized loss position represented credit losses that would require an allowance for credit losses, and that the unrealized losses as of the balance sheet dates were primarily attributed to increases in market interest rates since these securities were purchased under other market conditions.

Accordingly, there was no ACL on AFS debt securities as of March 31, 2026, or December 31, 2025.

Accrued interest receivable on AFS debt securities which totaled $ 402,670 and $ 449,020 on March 31, 2026, and December 31, 2025, respectively, was reported in accrued interest receivable on the consolidated balance sheets and is excluded from the estimate of credit losses.

Accordingly, there was no ACL on AFS debt securities as of June 30, 2026, or December 31, 2025.

Accrued interest receivable on AFS debt securities which totaled $ 409,673 and $ 449,020 on June 30, 2026, and December 31, 2025, respectively, was reported in accrued interest receivable on the consolidated balance sheets and is excluded from the estimate of credit losses.

Loans, Allowance for Credit Losses, Credit Quality and Off-Balance Sheet Credit Exposures

1 unchanged sentence

The composition of net loans follows:

March 31, 2026

June 30, 2026

December 31, 2025

11 unchanged sentences

$ 955,207,283

As of March 31, 2026, purchased loans consisted of $ 2.8 million in commercial loans and $ 6.4 million in consumer loans, compared to $ 3.0 million and $ 7.0 million, respectively, as of December 31, 2025.

Accrued interest receivable on loans totaled $ 4.7 million and $ 3.9 million as of March 31, 2026, and December 31, 2025, respectively, and was reported in accrued interest receivable on the consolidated balance sheets and is excluded from the estimate of credit losses.

As of June 30, 2026, purchased loans consisted of $ 2.5 million in commercial loans and $ 5.7 million in consumer loans, compared to $ 3.0 million and $ 7.0 million, respectively, as of December 31, 2025.

Accrued interest receivable on loans totaled $ 4.0 million as of June 30, 2026, and December 31, 2025, and was reported in accrued interest receivable on the consolidated balance sheets and is excluded from the estimate of credit losses.

Credit loss expense

Three Months Ended March 31

Three Months Ended June 30,

Credit loss expense - loans

Credit loss reversal - OBS credit exposure

Credit loss expense - OBS credit exposure

Credit loss expense

Six Months Ended June 30,

Credit loss expense - loans

Credit loss (reversal) expense - OBS credit exposure

Credit loss expense

The following tables present the activity in the ACL on loans for the periods presented.

For the three months ended March 31, 2026

For the three months ended June 30, 2026

Commercial & Industrial

2 unchanged sentences