UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTER ENDED MARCH 31, 2000
Commission File No. 33-12756-B
COMMUNITY BANCORP, INC.
A Massachusetts Corporation
IRS Employer Identification No. 04-2841993
17 Pope Street, Hudson, Massachusetts 01749
Telephone - (978)568-8321
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.
Yes X No
----- -----
Common Stock
$2.50 par value
5,885,476 shares outstanding
as of April 30, 2000
<PAGE>
<TABLE>
PART I - FINANCIAL INFORMATION
COMMUNITY BANCORP, INC.
Item 1. CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
<CAPTION>
March 31, December 31,
2000 1999
------------ ------------
<S> <C> <C>
ASSETS
Cash and due from banks $ 17,249,452 $ 21,010,959
Federal funds sold 22,500,000 6,924,026
Securities available for sale, at market 39,203,717 41,808,065
Securities held to maturity (market value
$81,798,543 at 3/31/00 and $84,164,551
at 12/31/99) 83,811,598 86,225,017
Mortgage loans held for sale 675,288 332,686
Loans 162,116,423 164,360,466
Less allowance for possible loan losses 2,885,256 3,041,873
----------- -----------
Total net loans 159,231,227 161,318,593
Premises and equipment, net 6,376,682 6,432,891
Other assets, net 4,322,478 4,034,338
----------- -----------
Total assets $333,370,382 $327,996,575
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits
Noninterest bearing $ 62,565,547 $ 68,082,062
Interest bearing 215,350,694 208,340,246
----------- -----------
Total deposits 277,916,241 276,422,308
----------- -----------
Federal funds purchased and securities
sold under repurchase agreements 24,974,086 21,766,424
Other Liabilities 1,929,212 1,496,572
----------- -----------
Total liabilities 304,819,539 299,685,304
----------- -----------
Stockholders' equity:
Preferred stock, $2.50 par value, 100,000
shares authorized, none issued or outstanding
Common stock, $2.50 par value, 12,000,000
shares authorized, 6,398,436 shares issued,
5,885,476 shares outstanding 15,996,090 15,996,090
Surplus 0 0
Undivided profits 15,531,882 14,757,255
Treasury stock, at cost, 512,960 shares
(476,612) shares at December 31, 1999) (2,545,104) (2,217,972)
Accumulated other comprehensive income (432,025) (224,102)
----------- -----------
Total stockholders' equity 28,550,843 28,311,271
----------- -----------
Total liabilities and
stockholders' equity $333,370,382 $327,996,575
=========== ===========
<FN>
See accompanying notes.
</TABLE>
-2-
<PAGE>
<TABLE>
COMMUNITY BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
<CAPTION>
Three months ended
March 31,
--------------------------
2000 1999
---------- ----------
<S> <C> <C>
Interest income:
Interest and fees on loans $3,625,453 $3,249,967
Interest and dividends on securities:
Taxable interest 1,748,370 1,566,776
Nontaxable interest 146,840 135,497
Dividends 20,629 19,126
Interest on federal funds sold 171,298 114,713
--------- ---------
Total interest income 5,712,590 5,086,079
--------- ---------
Interest expense:
Interest on deposits 1,763,219 1,574,062
Interest on short term borrowings 301,204 228,755
--------- ---------
Total interest expense 2,064,423 1,802,817
--------- ---------
Net interest income 3,648,167 3,283,262
--------- ---------
Provision for possible loan losses 0 0
--------- ---------
Net interest income after provision
for possible loan losses 3,648,167 3,283,262
--------- ---------
Noninterest income:
Merchant credit card assessments 382,028 312,742
Service charges 155,992 145,340
Other charges, commissions and fees 256,434 298,132
Gains on sales of loans, net 19,144 39,381
Gains on sales of securities, net 0 0
Other 23,358 21,842
--------- ---------
Total noninterest income 836,956 817,437
--------- ---------
Noninterest expense:
Salaries and employee benefits 1,427,596 1,313,388
Data processing and ATM network 264,079 232,885
Occupancy, net 188,425 176,052
Furniture and equipment 120,266 91,030
Credit card processing 322,947 268,525
Printing, stationery and supplies 58,380 64,703
Professional fees 87,077 84,737
Marketing and advertising 67,808 85,920
Other 281,798 250,678
--------- ----------
Total noninterest expense 2,818,376 2,567,918
--------- ----------
Income before income taxes 1,666,747 1,532,781
Income taxes 601,950 551,127
--------- ----------
Net income $1,064,797 $ 981,654
========= ==========
Earnings per common share $ .180 $ .167
Dividends per share $ .049 $ .044
Weighted average number of shares 5,917,430 5,889,176
<FN>
See accompanying notes.
</TABLE>
-3-
<PAGE>
<TABLE>
COMMUNITY BANCORP, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(UNAUDITED)
<CAPTION>
Three months ended
March 31,
--------------------------
2000 1999
----------- -----------
<S> <C> <C>
Net income $ 1,064,797 $ 981,654
Other comprehensive income:
Unrealized securities (losses) gains
arising during period (351,996) (18,239)
Income tax benefit (expense) on securities
(losses) gains arising during period 144,072 7,465
Net unrealized securities (losses) --------- ---------
gains arising during period (207,923) (10,774)
--------- ---------
Less: reclassification adjustment for
securities (gains) losses included in income 0 0
Income tax expense (benefit) on securities
(gains) losses included in income 0 0
Net reclassification adjustments for --------- ---------
securities (gains) losses included in
net income 0 0
--------- ---------
Other comprehensive income (207,923) (10,774)
--------- ---------
Comprehensive income $ 856,874 $ 970,880
========= =========
<FN>
See accompanying notes.
</TABLE>
-4-
<PAGE>
<TABLE>
COMMUNITY BANCORP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
<CAPTION>
Three months ended
March 31,
--------------------------
2000 1999
----------- -----------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 1,064,797 $ 981,654
Adjustments to reconcile net income
to net cash provided by operating
activities:
(Increase) decrease in mortgage loans
held for sale (342,542) 471,463
Premium on sale of mortgages 0 37,371
Depreciation and amortization 225,188 205,677
Increase in other liabilities 57,275 306,083
Increase in taxes payable 383,180 445,304
(Decrease) increase in interest payable (23,993) 47,193
(Increase) in other assets (257,210) (348,866)
Decrease (increase) in interest receivable 147,785 (62,501)
---------- ----------
Total adjustments 189,683 1,101,724
---------- ----------
Net cash provided by operating
activities $ 1,254,480 $ 2,083,378
========== ==========
Cash flows from investing activities:
Maturities and principal repayments of
securities available for sale 2,296,753 4,040,745
Maturities and principal repayments of
securities held to maturity 2,739,800 11,101,064
Purchases of securities available for sale (44,400) (171,400)
Purchases of securities held to maturity (326,382) (10,440,102)
Net change in federal funds sold (15,575,975) 6,500,000
Net change in loans and other real estate
owned 2,060,019 (10,217,258)
Acquisition of property, plant and equipment (258,979) (497,354)
---------- ----------
Net cash (used in) provided by investing
activities (9,109,164) 315,695
---------- ----------
Cash flows from financing activities:
Net change in deposits 1,493,934 (6,067,293)
Net change in federal funds purchased 0 0
Net change in repurchase agreements 3,207,662 2,451,298
Purchase of treasury stock (327,132) 0
Dividends paid (281,287) (250,301)
---------- ----------
Net cash provided by (used in) financing
activities 4,093,177 (3,866,296)
---------- ----------
Net (decrease) in cash and
due from banks (3,761,507) (1,467,223)
---------- ----------
Cash and due from banks at beginning
of period 21,010,959 17,601,043
---------- ----------
Cash and due from banks at end of period $17,249,452 $16,133,820
========== ==========
<FN>
See accompanying notes.
</TABLE>
-5-
<PAGE>
COMMUNITY BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 2000
________________________________________________________________________
1. BASIS OF PRESENTATION
---------------------
The accompanying unaudited consolidated financial statements have
been prepared in accordance with generally accepted accounting
principles for interim financial information and with the
instructions to Form 10-Q and Article 10 of Regulation S-X.
Accordingly, they do not include all of the information and notes
required by generally accepted accounting principles for complete
financial statements. In the opinion of management, all adjustments
(consisting of normal recurring accruals) considered necessary for a
fair presentation have been included. The results of operations for
any interim period are not necessarily indicative of results
expected for the full year. These consolidated financial statements
should be read in conjunction with the consolidated financial
statements and notes thereto contained in the Company's Annual
Report to shareholders and Form 10-K for the year ended December 31,
1999.
2. EARNINGS PER SHARE
------------------
The Company adopted Financial Accounting Standards Board Statement
No. 128, "Earnings Per Share" (SFAS No. 128), effective December 31,
1997. This Statement requires the presentation of "basic" earnings
per share, which excludes the effect of dilution, and "diluted"
earnings per share, which includes the effect of dilution. The
Company's "basic" and "diluted" earnings per share computations are
identical in the periods presented, as there is no dilution effect.
Earnings per share is based on the weighted average number of shares
outstanding during the period.
3. STOCK SPLIT
-----------
Effective April 28, 2000, the Company's Board of Directors approved
a 2-for-1 stock split of the company's common stock, par value
$2.50, effected in the form of a stock dividend. The accompanying
consolidated financial statements have been retroactively restated
for all periods presented to reflect the stock split.
4. COMPREHENSIVE INCOME
--------------------
The Company adopted Financial Accounting Standards Board Statement
No. 130, "Reporting Comprehensive Income" (SFAS No. 130), effective
January 1, 1998. Components of comprehensive income are net income
and all other non-owner changes in equity. The Statement requires
that an enterprise (a) classify items of other comprehensive income
by their nature in a financial statement and (b) display the
accumulated balance of other comprehensive income separately from
retained earnings and additional paid-in capital in the equity
section of a statement of financial position. Reclassification of
financial statements for earlier periods provided for comparative
purposes is required. The Company has chosen to disclose
comprehensive income in the Consolidated Statements of Comprehensive
Income.
-6-
<PAGE>
5. OPERATING SEGMENTS
------------------
The Company adopted Financial Accounting Standards Board Statement
No. 131, "Disclosures About Segments of an Enterprise and Related
Information" (SFAS No. 131), during 1998. SFAS No. 131 established
standards for reporting information about operating segments in
annual financial statements and requires selected information about
operating segments in interim financial reports issued to the
stockholders. It also established standards for related disclosures
about products and services, and geographic areas. Operating
segments are defined as components of an enterprise about which
separate financial information is available that is evaluated
regularly by the chief operating decision-maker, or decision making
group, in deciding how to allocate resources and in assessing
performance.
The Company has one reportable segment: community banking. At
present, the Company conducts no activities independent of the Bank.
The Bank is engaged in substantially all of the business operations
customarily conducted by an independent commercial bank in
Massachusetts. Banking services offered include acceptance of
checking, savings and time deposits, and the making of consumer,
commercial, real estate and other loans. The Bank also offers
official checks, traveler's checks, safe deposit boxes, electronic
banking and bill payment services, investment management and trust
services and other customary banking services to its customers.
6. RECLASSIFICATIONS
-----------------
Certain amounts in the prior period's financial statements have been
reclassified to be consistent with the current period's
presentation. The reclassifications have no effect on net income.
-7-
<PAGE>
PART I - FINANCIAL INFORMATION
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Summary
- -------
The Company recorded net income of $1,064,797 for the three months ended
March 31, 2000, representing an increase of $83,143 or 8.5% over $981,654
for the same period in 1999. Earnings per share of $.180 for the current
period represented an increase of $.013 from $.167 for the three months
ended March 31, 1999.
The improvement in net income resulted primarily from an increase in net
interest income and noninterest income, partially offset by increases in
salaries and benefits, data processing and ATM network, occupancy, credit
card processing, and other expense.
Deposits of $277,916,241 at March 31, 2000 increased by $1,493,933 or
0.5% from $276,422,308 at December 31, 1999. The increase in deposits
occurred in the interest-bearing categories, and was partially offset by
decreases in the non-interest bearing categories.
Loans of $162,116,423 at March 31, 2000 decreased by $2,244,043 or 1.4%
from $164,360,466 at December 31, 1999. This decrease was concentrated
in the commercial loan categories. Noncurrent loans (nonaccrual loans
and loans 90 days or more past due but still accruing) totaled $779,381
and $684,649 at March 31, 2000 and December 31, 1999, respectively.
There was one troubled debt restructure at March 31, 2000, totaling
$97,611. There were no troubled debt restructures at December 31, 1999.
Assets of $333,370,382 at March 31, 2000 represented a $5,373,807 or 1.6%
increase from $327,996,575 at December 31, 1999.
Three months ended March 31, 2000 as Compared To
Three months ended March 31, 1999
------------------------------------------------
Net Interest Income
- -------------------
Interest income for the three months ended March 31, 2000 was $5,712,590,
representing an increase of $626,511 or 12.3% from $5,086,079 for the
three months ended March 31, 1999, primarily due to higher average loan
and securities balances in 2000. Interest expense was $2,064,423,
representing an increase of $261,606 or 14.5% from $1,802,817 for the
three months ended March 31, 1999. Net interest income for the three
months ended March 31, 2000 was $3,648,167, representing an increase of
$364,905 or 11.1% from $3,283,262 for the three months ended March 31,
1999.
Noninterest Income and Expense
- ------------------------------
Noninterest income for the three months ended March 31, 2000 was
$836,956, representing an increase of $19,519 or 2.4% from $817,437 for
the three months ended March 31, 1999. This increase was primarily the
result of increases in merchant credit card assessments and service
charges, partially offset by a reduction in other charges, commissions
and fees and gains on sales of loans.
-8-
<PAGE>
Noninterest expense for the three months ended March 31, 2000 of
$2,818,376 was up $250,458 or 9.8% from $2,567,918 for the same period in
1998. This increase was primarily the result of increases in salaries
and employee benefits, data processing and ATM network, occupancy,
furniture and equipment, credit card processing and other expense,
partially offset by a reduction in printing, stationary and supplies and
marketing and advertising expense.
Provision for Loan Losses
- -------------------------
There was no provision for loan losses for the three months ended March
31, 2000 or 1999, reflecting management's continuing evaluation of the
adequacy of the allowance for loan losses and its belief that the
allowance is adequate.
Income Taxes
- ------------
Income tax expense of $601,950 for the three months ended March 31, 2000
compared to $551,127 for the same period in 1999, the result of an
increase in taxable income during the current period.
Net Income
- ----------
Net income of $1,064,797 for the first three months of 2000 represented
an increase of $83,143 or 8.5% from $981,654 recorded for the first three
months of 1999. Earnings per share of $.180 for the current period
represented an increase of $.013 from $.167 for the three months ended
March 31, 1999.
Allowance for Possible Loan Losses
- ----------------------------------
The allowance for possible loan losses is maintained at a level believed
by management to be adequate to absorb inherent losses in the loan
portfolio, including commitments to extend credit (i.e. lines of credit).
The allowance is charged when management determines that the repayment of
the principle on a loan is in doubt. Subsequent recoveries, if any, are
credited to the allowance. The allowance is maintained at an adequate
level through the provision for possible loan losses, which is a charge
to operating income. At March 31, 2000 the allowance was $2,885,256
representing 1.8% of total loans, compared to $3,041,873, representing
2.0% of total loans at December 31, 1999.
The potential for loss in the loan portfolio reflects the risks and
uncertainties inherent in the extension of credit. The determination of
the adequacy of the allowance for possible loan losses is based upon
management's assessment of risk elements in the portfolio, factors
affecting loan quality and assumptions about the economic environment in
which the Company operates. Included in this assessment are specific
credit reviews, past loan loss experience, current economic conditions
and trends, known and inherent risks in the loan portfolio, adverse
situations that may affect a borrower's ability to repay, the estimated
value of any underlying collateral and the volume and risk
characteristics of the loan portfolio. The assessment process includes
the identification and analysis of loss potential in various portfolio
segments utilizing a credit risk-rating system and specific reviews and
evaluations of significant problem credits. In addition, management
reviews overall portfolio quality through an analysis of current levels
-9-
<PAGE>
and trends in charge-off, delinquency and non-accrual loan data, economic
forecasts and the overall prevailing banking environment. These reviews
are of necessity dependent upon estimates, appraisals and judgements
which may change quickly due to changes in economic conditions and the
Company's perception of how these factors may affect the financial
condition of it's borrowers.
The methodology for assessing the adequacy of the overall allowance
consists of an evaluation of its three key components:
* The general allowance for the various loan portfolio classifications
* The valuation allowance for loans specifically identified as impaired
* The unallocated allowance
The general allowance is a percentage-based reflection of historical loss
experience and estimates inherent future losses within the loan
portfolio. The general allowance employs a risk-rating model that grades
loans based on their general characteristics of credit quality and
relative risk. It is calculated by applying various fixed percentages
against the total of all commitments to extend credit. Under this
formula, the risk rating of a loan demonstrating deteriorating credit
quality is downgraded, the loan is placed on the Company's internal
"Watch List" and its allowance allocation is increased. For the remainder
of the loan portfolio, appropriate allowance levels are estimated based
on judgements regarding the type of loan, economic conditions and trends,
potential exposure to loss and other factors.
The valuation allowance reflects specific estimates of potential losses
on individual impaired loans. Such loans are evaluated for potential loss
by calculating the net present value of the expected future cash flows
using the loan's original effective interest rate, or estimating the fair
value of the collateral if the loan is collateral-dependent. When the
difference between the net present value of a loan (or the fair value of
the collateral) is lower than the recorded loan balance, the difference
represents the valuation allowance for that loan.
In addition to the general allowance and the valuation allowance, there
is an unallocated allowance that recognizes the estimation risks
associated with the general and the valuation allowance calculations, and
that reflects management's evaluation of various conditions, the effect
of which are not directly measurable in determining the general and
valuation allowances. The estimation of the inherent losses resulting
from these conditions involves a higher degree of uncertainty because
they are not identified with any specific loans or portfolio segments.
The conditions evaluated in connection with determining the unallocated
allowance include the following:
* Current general economic and business conditions affecting the
Company's lending area
* Recent trends in collateral values
* Loan portfolio growth
* Changes in loan portfolio concentrations
* General seasoning of the loan portfolio
* Changes in specific industry conditions within the portfolio segments
* Recent loss experience in particular segments of the portfolio
* Duration of the current business cycle
* Results of the Company's independent credit reviews
* Results of regulatory examinations
-10-
<PAGE>
When an evaluation of these conditions signifies a change in the level of
inherent portfolio risk, the Company may adjust the unallocated allowance
to reflect that change.
Periodic credit reviews are conducted to enable the Company to adjust the
general allowance through the loan risk-rating process, and to identify
loans requiring a specific valuation allowance. During the first quarter
of 2000 there were no significant changes in loan concentrations, loan
quality or loan terms. Estimation methods and assumptions affecting the
allowance remained unchanged from those used in prior years. There was no
significant reallocation of the allowance among the various segments of
the portfolio.
Securities
- ----------
The Company's securities portfolio consists of obligations of the U.S.
Treasury, U.S. government sponsored agencies, mortgage backed securities
and obligations of various municipalities. Those assets are used in part
to secure public deposits and as collateral for repurchase agreements.
Total securities were $123,015,315 at March 31, 2000, representing a
decrease of $5,017,767 or 3.9% from $128,033,082 at December 31, 1999.
Securities classified as available for sale were $39,203,717 and
$41,808,065 at March 31,2000 and December 31, 1999 respectively. There
were no sales of securities during the three months ended March 31, 2000.
Liquidity and Capital Resources
- -------------------------------
The Company's primary sources of liquidity are customer deposits,
amortization and pay-offs of loan principal and maturities of investment
securities. These sources provide funds for loan originations, the
purchase of investment securities and other activities. Deposits are
considered a relatively stable source of funds. At March 31, 2000 and
1999, deposits were $277.9 and $248.3 million, respectively. Management
anticipates that deposits will grow moderately during the remainder of
2000.
As a nationally chartered member of the Federal Reserve System, the Bank
has the ability to borrow funds from the Federal Reserve Bank of Boston
by pledging certain of its investment securities as collateral. Also,
the Bank is a member of the Federal Home Loan Bank which provides
additional borrowing opportunities.
Bank regulatory authorities have established a capital measurement tool
called "Tier 1" leverage capital. A 4.00% ratio of Tier 1 capital to
assets now constitutes the minimum capital standard for most banking
organizations. At March 31, 2000, the Company's Tier 1 leverage capital
ratio was 8.69%. Regulatory authorities have also implemented risk-based
capital guidelines requiring a minimum ratio of Tier 1 capital to risk
weighted assets of 4.00% and a minimum ratio of total capital to risk-
weighted assets of 8.00%. At March 31, 2000 the Company's Tier 1 and
total risk-based capital ratios were 15.78 and 17.03%, respectively. The
Bank is categorized as "well capitalized" under the Federal Deposit
Insurance Corporation Improvement Act of 1991 (F.D.I.C.I.A.).
On March 21, 2000, the Company's Board of Directors declared a first
quarter 2000 cash dividend of $.049 per share of common stock to
shareholders of record at March 1, 2000, payable on April 14, 2000.
-11-
<PAGE>
Effective April 28, 2000, the Company's Board of Directors approved a 2-
for-1 stock split of the company's common stock, par value $2.50,
effected in the form of a stock dividend. The accompanying consolidated
financial statements have been retroactively restated for all periods
presented to reflect the stock split.
Asset/Liability Management
- --------------------------
The Company has an asset/liability management committee which oversees
all asset/liability activities of the Company. The committee establishes
general guidelines each year and meets regularly to review the Company's
operating results and to make strategic changes when necessary.
It is the Company's general policy to reasonably match the rate
sensitivity of its assets and liabilities. A common benchmark of this
sensitivity is the one year gap position, which is a reflection of the
difference between the speed and magnitude of rate changes of interest
rate sensitive liabilities as compared with the Bank's ability to adjust
the rates of it's interest rate sensitive assets in response to such
changes. The Company's negative one-year cumulative gap position at
March 31, 2000, representing the excess of repricing liabilities versus
repricing assets within a one year time frame, was 8.1% expressed as a
percentage of total assets.
Cautionary Statement Regarding Forward-Looking Information
- ----------------------------------------------------------
This Quarterly Report on Form 10-Q, including Management's Discussion and
Analysis of Financial Condition and Results of Operations, contains, in
addition to historical information, "forward-looking statements" as
defined in the Private Securities Litigation Reform Act of 1995. When
used in this and other Reports filed by the Company, the words
"anticipate", "estimate", "expect", "objective", and similar expressions
are intended to identify forward-looking statements. These forward-
looking statements are subject to a variety of risks and uncertainties.
In addition to any assumptions and other factors referred to specifically
in connection with such forward-looking statements, risk factors that
could cause the Company's actual results to differ materially from those
contemplated in any forward-looking statement include, but are not
limited to, changes in political and economic conditions, interest rate
fluctuations, competitive product and pricing pressures, adverse changes
in asset quality, increased inflation, risks related to Year 2000 issues
(particularly with respect to compliance by third parties on which the
Company relies), and adverse legislative or regulatory changes.
Year 2000
- ---------
The following Year 2000 statements constitute a Year 2000 Readiness
Disclosure within the meaning of the Year 2000 Information and Readiness
Disclosure Act of 1998.
As of March 31, 2000, the Company has experienced no Year 2000 related
problems. All mission-critical and non-mission critical systems are
performing correctly. The Company is aware of no credit problems on the
part of its borrowers, no deposit balance reductions, and no disruptions
of utility or other third-party services related to the Year 2000 issue,
and the Company has experienced no Year 2000 related loss of revenue.
-12-
<PAGE>
PART II - OTHER INFORMATION
Item 5. OTHER INFORMATION
On March 21, 2000, the Company's Board of Directors declared a first
quarter 2000 cash dividend of $.49 per share of common stock to
shareholders of record at March 1, 2000, payable on April 14, 2000.
Effective April 28, 2000, the Company's Board of Directors approved
a 2-for-1 stock split of the Company's common stock, par value
$2.50, effected in the form of a stock dividend.
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
(b) The Company did not file a Form 8-K during the quarter ended March
31, 2000.
-13-
<PAGE>
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 thereunto duly authorized.
COMMUNITY BANCORP, INC.
Date: May 8, 2000 By: /s/ James A. Langway
--------------------------
James A. Langway
President & Chief Executive Officer
Principal Executive Officer
Date: May 8, 2000 By: /s/ Donald R. Hughes, Jr.
-------------------------
Donald R. Hughes, Jr.
Treasurer and Clerk,
Principal Financial Officer and
Principal Accounting Officer
-14-
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
This schedule contains summary financial information extracted from the
unaudited March 31, 2000 financial statements of Community Bancorp, Inc. and is
qualified in its entirety by reference to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-END> MAR-31-2000
<CASH> 17249452
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 22500000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 39203717
<INVESTMENTS-CARRYING> 83811598
<INVESTMENTS-MARKET> 81798543
<LOANS> 162791711
<ALLOWANCE> 2885256
<TOTAL-ASSETS> 333370382
<DEPOSITS> 277916241
<SHORT-TERM> 24974086
<LIABILITIES-OTHER> 1929212
<LONG-TERM> 0
0
0
<COMMON> 15996090
<OTHER-SE> 12554753
<TOTAL-LIABILITIES-AND-EQUITY> 333370382
<INTEREST-LOAN> 3625453
<INTEREST-INVEST> 1915839
<INTEREST-OTHER> 171298
<INTEREST-TOTAL> 5712590
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