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Zacks Initiates Coverage of Community Bancorp With Outperform Rating
The BancorpThe Bancorp(US:TBBK) ZACKSยท2025-09-09 16:41

Core Viewpoint - Zacks Investment Research has initiated coverage of Community Bancorp (CMTV) with an "Outperform" recommendation, highlighting the company's strong earnings momentum, expanding loan book, deposit growth, and competitive navigation in northern New England's community banking market [1] Financial Performance - Community Bancorp reported a net income growth of 48.8% year over year to $4.1 million for Q2 2025, with a 36.6% increase in profits to $7.6 million for the first half of the year, driven by loan demand and fee income expansion [2] - The company's book value per share increased to $18.69 as of June 30, 2025, from $16.17 a year earlier, indicating solid capital generation [5] Deposit and Funding Growth - Deposits rose by 9.9% year over year, supporting lending activities without excessive reliance on wholesale funding sources, with growth in time deposits and money market accounts enhancing liquidity [3] Revenue Diversification - Community Financial Services Group (CFSG), an affiliate of Community Bancorp, has broadened revenue streams through wealth management and fiduciary services, managing $1.5 billion in assets and contributing significantly to non-interest income [4] Market Position and Valuation - Community Bancorp shares have outperformed broader banking indices, increasing by 41% over the past year, while trading at an attractive 8.62X trailing earnings, below sector averages, supporting the "Outperform" recommendation [7]