COMMUNITY BANCORP /VT Debt Disclosure
Note 11. Borrowed Funds
The following table reflects the Company’s outstanding advances with FHLBB as of the balance sheet dates presented:
December 31, |
| 2025 |
|
| 2024 |
| ||
FHLBB Long-Term Advances |
|
|
|
|
|
| ||
FHLBB term advance, 0.00%, due November 12, 2025 (1) |
| $ | 0 |
|
| $ | 300,000 |
|
FHLBB term advance, 0.00%, due November 13, 2028 (1) |
|
| 800,000 |
|
|
| 800,000 |
|
FHLBB option advance, 4.54%, due May 15, 2026 |
|
| 10,000,000 |
|
|
| 10,000,000 |
|
FHLBB option advance, 4.74%, due May 26, 2026 |
|
| 5,000,000 |
|
|
| 5,000,000 |
|
FHLBB option advance, 3.89%, due February 01, 2027 |
|
| 0 |
|
|
| 5,000,000 |
|
FHLBB option advance, 4.27%, due June 07, 2027 |
|
| 10,000,000 |
|
|
| 10,000,000 |
|
FHLBB option advance, 3.66%, due March 26, 2027 |
|
| 5,000,000 |
|
|
| 0 |
|
FHLBB option advance, 3.51%, due March 27, 2028 |
|
| 5,000,000 |
|
|
| 0 |
|
FHLB term advance, 0.00%, due September 24, 2030 |
|
| 175,022 |
|
|
| 0 |
|
Total Long-Term Advances |
| $ | 35,975,022 |
|
| $ | 31,100,000 |
|
(1) | The FHLBB provides a subsidy, funded by the FHLBB’s earnings, to write down interest rates to 0% on JNE advances that finance qualifying loans to small businesses. JNE advances must support small business in New England that create and/or retain jobs or otherwise contribute to overall economic development activities. |
Borrowings from the FHLBB are secured by a blanket lien on qualified collateral consisting primarily of loans with first lien mortgages secured by 1-4 family residential properties, as well as certain qualifying CRE loans. Qualified collateral for these borrowings totaled $192,353,598 and $151,113,385 as of December 31, 2025 and 2024, respectively, and the Company's gross potential borrowing capacity under this arrangement was $138,742,970 and $108,736,377, respectively, before reduction for outstanding advances and collateral pledges.
Under a separate agreement with the FHLBB, the Company has the authority to collateralize public unit deposits, up to its available borrowing capacity, with letters of credit issued by the FHLBB. As of December 31, 2025 and 2024, $72,000,000 and $0 in FHLBB letters of credit were utilized as collateral for these deposits. Total fees paid by the Company in connection with issuance of these letters of credit were $108,721 for 2025 and $82,225 for 2024.
The Company also maintained a $500,000 IDEAL Way Line of Credit with the FHLBB as of December 31, 2025 and 2024, with no outstanding advances under this line at either year-end date. Interest on these borrowings is at a rate determined daily by the FHLBB and payable monthly.
The Company also has a BIC arrangement with the FRBB, which is intended to be used as a contingency funding source and is secured by eligible commercial & industrial loans and CRE loans not pledged to FHLBB and home equity loans, with an available line of $62,573,798 and $60,776,993 as of December 31, 2025 and 2024, respectively. Credit advances in the FRBB lending program are overnight advances with interest chargeable at the primary credit rate (generally referred to as the discount rate), which was 375 basis points as of December 31, 2025. As of December 31, 2025 and 2024, the Company had no outstanding advances against this line.
The Company utilized borrowing capacity during the first quarter of 2024 under the BTFP, a temporary loan facility established by the FRB in March 2023 to provide additional liquidity to financial institutions in the wake of several high-profile bank failures. The Company’s BTFP borrowings were collateralized by U.S. Agency and U.S. Government Securities, valued at par. The BTFP ceased extending new loans on March 11, 2024. The BTFP loans matured and were repaid during the first quarter of 2025.
The Company’s advances under the BTFP as of the balance sheet dates were as follows:
December 31, |
| 2025 |
|
| 2024 |
| ||
FRB BTFP Advances |
|
|
|
|
|
| ||
FRB BTFP term advance, 4.83%, due January 17, 2025 |
| $ | 0 |
|
| $ | 41,500,000 |
|
As of December 31, 2025 and 2024, the Company had an unsecured line of credit with one correspondent bank totaling $12.5 million. The Company had no outstanding advances against this line as of the balance sheet dates presented.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 27, 2026 | Showing above |
| 2024 | Mar 28, 2025 | |
| 2023 | Mar 29, 2024 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.