CNB Community Bancorp, Inc. reported net income of $3.2 million for the second quarter of 2026, an increase of 5.5% compared to the $3.0 million earned during the same period in 2025. The growth was primarily driven by a $1.0 million increase in net interest income, which totaled $12.7 million, partially offset by a higher provision for credit losses. Basic earnings per share rose to $1.61 from $1.48 in the prior year.

For the six months ended June 30, 2026, the company reported net income of $6.1 million, an 8.1% increase from the $5.7 million earned in the first half of 2025. Basic earnings per share for the six-month period increased to $3.10 from $2.78. The annualized return on average assets (ROA) was 0.94% for the quarter, while the return on average equity (ROE) stood at 11.65%.

Joseph R. Williams, President and Chief Executive Officer, stated that the results continued an upward trend in earnings, marking only the second time the company exceeded $6.0 million in earnings in the first half of the year. He noted that the bank has positioned itself to perform in various rate environments and that associates are focused on enhancing relationships. Williams also highlighted progress in working through nonperforming credits, despite an increase of over $13 million in such credits since the end of last year.

Balance Sheet and Credit Quality

Total assets increased 7.0% year-over-year to $1.36 billion as of June 30, 2026. Net loans grew 6.6% to $1.13 billion, while total deposits increased slightly to $1.10 billion. Tangible book value per share rose 9.8% to $54.79.

Nonperforming assets totaled $30.1 million, an increase of $13.3 million from December 31, 2025. Nonperforming assets as a percentage of total assets increased to 2.21%. The allowance for credit losses was $12.7 million, or 1.11% of total loans. Net charge-offs for the quarter were $513,000.

Interest Income and Expenses

Net interest margin on a fully taxable equivalent basis increased to 4.07% for the quarter from 3.91% in the second quarter of 2025. The cost of funds decreased to 1.83% from 1.96% in the prior year. Interest income rose 5.6% to $18.5 million, while interest expense decreased slightly to $5.8 million.

Noninterest income totaled $2.6 million for the quarter, a 15.8% increase, driven by gains on loan sales and higher service charges. Noninterest expense increased 6.1% to $10.6 million, largely due to higher salaries and occupancy costs.

Shareholder Returns

The company repurchased 2,700 shares during the second quarter of 2026 at $49.25 per share. Total shareholders' equity increased to $111.0 million. Book value per share increased to $56.10, up from $51.15 a year ago.

Community National Bank's parent company, Community Bancorp. (NASDAQ: CMTV), has been added to the Russell 2000 Index, effective after the U.S. market closed on June 26, 2026. This inclusion is part of the annual reconstitution of the Russell U.S. Indexes and marks the first time the company has been listed in the benchmark for small-cap U.S. companies. Membership in the index is determined primarily by market capitalization.

Christopher Caldwell, President and Chief Executive Officer of Community Bancorp. and Community National Bank, stated that the inclusion reflects the strength and stability of the organization. He noted that the recognition follows the company's recent uplisting on Nasdaq and comes during a year in which the bank is celebrating 175 years of service.

Community National Bank was named to the Forbes list of America's Best-In-State-Banks 2026 as the top-rated bank in Vermont, a distinction earned for five consecutive years. The bank serves Vermont and surrounding regions with retail banking offices in Derby, Derby Line, Island Pond, Barton, Newport, Troy, St. Johnsbury, Montpelier, Barre, Lyndonville, Morrisville and Enosburg Falls. It also operates loan offices in Burlington, Vermont and Lebanon, New Hampshire.

About the Russell 2000 Index

The Russell 2000 Index measures the performance of approximately 2,000 small-cap U.S. companies. It is widely regarded as a leading benchmark for the small-cap segment of the U.S. equity market. The index is reconstituted annually.