COMMUNITY BANCORP VT

RESULTS OF OPERATIONS

The Company’s net income decreased $308 thousand, or 2.2%, from 2022 to 2023, resulting in earnings per common share of $2.43 for 2023 versus $2.53 for 2022. Core earnings (NII) increased $1.1 million, or 3.4%, in 2023 compared to 2022. Interest income in 2023 was supported by increases in the volume of the loan portfolio and rising interest rates. Interest and fees on loans, which is the major component of interest income, increased $9.3 million, or 28.5% in 2023 and interest paid on deposits, which is the major component of total interest expense, increased $6.1 million, or 191.6% in 2023, reflecting the increase in short-term rates throughout 2022 and into 2023.

Return on average assets, which is net income divided by average total assets, measures how effectively a corporation uses its assets to produce earnings. Return on average equity, which is net income divided by average shareholders’ equity, measures how effectively a corporation uses its equity capital to produce earnings.

The following table shows these ratios, as well as other equity ratios, for each of the last two fiscal years:

(1) Dividends declared per common share divided by earnings per common share.