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, 2001
------------------------------------
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
5,914,441 shares outstanding
as of April 30, 2001
PART I - FINANCIAL INFORMATION
------------------------------
COMMUNITY BANCORP, INC.
Item 1. CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
March 31, December 31,
2001 2000
------------ ------------
ASSETS
Cash and due from banks $ 13,899,226 $ 16,472,547
Federal funds sold 38,626,966 31,136,266
Securities available for sale, at market 47,276,652 50,110,202
Securities held to maturity (market value
$91,865,703 at 3/31/01 and $92,302,813
at 12/31/00) 91,866,065 92,441,522
Mortgage loans held for sale 2,396,025 295,742
Loans 175,552,218 176,029,265
Less allowance for loan losses 2,806,799 2,812,392
----------- -----------
Total net loans 172,745,419 173,216,873
----------- -----------
Premises and equipment, net 6,510,432 6,234,641
Other assets, net 4,975,208 4,959,718
----------- -----------
Total assets $378,295,993 $374,867,511
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits
Noninterest bearing $ 66,762,668 $ 75,969,408
Interest bearing 244,079,955 231,159,424
----------- -----------
Total deposits 310,842,623 307,128,832
----------- -----------
Federal funds purchased and securities
sold under repurchase agreements 31,253,261 33,463,166
Other Liabilities 3,168,919 2,460,642
----------- -----------
Total liabilities 345,264,803 374,867,511
----------- -----------
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,
5,914,441 shares outstanding 15,996,090 15,996,090
Surplus 101,378 101,378
Undivided profits 18,883,134 18,052,893
Treasury stock, at cost, 483,995 shares (2,414,762) (2,414,762)
Accumulated other comprehensive income 465,350 79,272
----------- -----------
Total stockholders' equity 33,031,190 31,814,871
----------- -----------
Total liabilities and
stockholders' equity $378,295,993 $374,867,511
=========== ===========
<FN>
See accompanying notes.
-2-
COMMUNITY BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Three months ended
March 31,
--------------------------
2001 2000
---------- ----------
Interest income:
Interest and fees on loans $3,990,995 $3,625,453
Interest and dividends on securities:
Taxable interest 1,923,012 1,748,370
Nontaxable interest 199,565 146,840
Dividends 24,378 20,629
Interest on federal funds sold 452,390 171,298
--------- ---------
Total interest income 6,590,340 5,712,590
--------- ---------
Interest expense:
Interest on deposits 2,040,718 1,763,219
Interest on short term borrowings 433,086 301,204
--------- ---------
Total interest expense 2,473,804 2,064,423
--------- ---------
Net interest income 4,116,536 3,648,167
--------- ---------
Provision for loan losses -- --
--------- ----------
Net interest income after provision
for loan losses 4,116,536 3,648,167
--------- ---------
Noninterest income:
Merchant credit card assessments 426,529 382,028
Service charges 154,725 155,992
Other charges, commissions and fees 309,342 256,434
Gains on sales of loans, net 41,870 19,144
Gains on sales of securities, net -- --
Other 26,119 23,358
-------- --------
Total noninterest income 958,585 836,956
--------- ---------
Noninterest expense:
Salaries and employee benefits 1,645,165 1,427,596
Data processing and ATM network 294,027 264,079
Occupancy, net 242,042 188,425
Furniture and equipment 101,640 100,062
Credit card processing 387,324 322,947
Printing, stationery and supplies 57,486 58,380
Professional fees 120,857 87,077
Marketing and advertising 55,360 67,808
Other 359,183 302,002
--------- ---------
Total noninterest expense 3,263,084 2,818,376
--------- ---------
Income before income taxes 1,812,037 1,666,747
Income taxes 638,759 601,950
--------- ---------
Net income $1,173,278 $1,064,797
========= =========
Basic and diluted earnings per common share $ .198 $ .180
Dividends per share $ .058 $ .049
Basic and diluted weighted average number
of shares 5,914,441 5,917,430
<FN>
See accompanying notes.
-3
COMMUNITY BANCORP, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(UNAUDITED)
Three months ended
March 31,
--------------------------
2001 2000
----------- ----------
Net income $ 1,173,278 $1,064,797
Other comprehensive income:
Unrealized securities gains (losses)
arising during period 653,596 (351,996)
Income tax (expense) benefit on securities
gains (losses) arising during period (267,516) 144,072
--------- ---------
Net unrealized securities gains
(losses) arising during period 386,080 (207,923)
Less: reclassification adjustment for
securities (gains) losses included in income -- --
Income tax expense (benefit) on securities
(gains) losses included in income -- --
--------- ---------
Net reclassification adjustments for
securities (gains) losses included in
net income -- --
--------- ---------
Other comprehensive income (loss) 386,080 (207,923)
--------- ---------
Comprehensive income $1,559,358 $ 856,874
========= =========
<FN>
See accompanying notes.
-4-
COMMUNITY BANCORP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Three months ended
March 31,
--------------------------
2001 2000
---------- ----------
Cash flows from operating activities:
Net income $ 1,173,278 $1,064,797
Adjustments to reconcile net income
to net cash provided by operating
activities:
(Increase) in mortgage loans
held for sale (2,100,283) (342,542)
Depreciation and amortization 239,793 225,188
Amortization of investment securities
discounts and premiums, net 38,974 8,036
(Increase)decrease in other liabilities (209,821) 57,275
Increase in taxes payable 666,244 383,180
(Decrease) in interest payable (3,409) (23,993)
(Increase) in other assets (350,466) (257,210)
Decrease in interest receivable 284,976 147,785
---------- ----------
Total adjustments (1,433,992) 197,719
---------- ----------
Net cash (used in) provided by operating
activities $ (260,714) $ 1,262,516
---------- ----------
Cash flows from investing activities:
Maturities and principal repayments of
securities available for sale 3,442,232 2,278,359
Maturities and principal repayments of
securities held to maturity 23,361,846 2,750,158
Purchases of securities available for sale -- (44,400)
Purchases of securities held to maturity (22,780,457) (326,382)
Net change in federal funds sold (7,490,700) (15,575,975)
Net change in loans and other real estate
owned 497,371 2,060,019
Acquisition of property, plant and equipment (515,584) (258,979)
---------- ----------
Net cash used in investing activities (3,485,292) (9,117,200)
---------- ----------
Cash flows from financing activities:
Net change in deposits 3,713,791 1,493,934
Net change in repurchase agreements (2,209,905) 3,207,662
Purchase of treasury stock -- (327,132)
Dividends paid (331,201) (281,287)
---------- ----------
Net cash provided by financing activities 1,172,685 4,093,177
---------- ----------
Net (decrease) in cash and
due from banks (2,573,321) (3,761,507)
---------- ----------
Cash and due from banks at beginning
of period 16,472,547 21,010,959
---------- ----------
Cash and due from banks at end of period $13,899,226 $17,249,452
========== ==========
<FN>
See accompanying notes.
Supplemental disclosures:
1. Cash paid for interest was $2,477,213 and $2,088,416 for the three
months ended March 31, 2001 and 2000, respectively.
2. Cash paid for income taxes was $ 0 and $218,770 for the three
months ended March 31, 2001 and 2000, respectively.
-5-
COMMUNITY BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 2001
_________________________________________________________________________
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 accounting principals generally accepted in
the United States. 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,
2000.
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 are no
securities outstanding that are potentially dilutive. For the three months
ended March 31, 2001, the Company has excluded 9,000 shares related to common
stock issuable pursuant to the exercise of stock options from the calculation
of the Company's diluted earnings per share, as the exercise price of those
stock options was equal to the average fair market value of the Company's
common stock for the three months ended March 31, 2001. Earnings per share is
based on the weighted average number of shares outstanding during the period.
3. 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.
4. OPERATING SEGMENTS
------------------
The Company has adopted SFAS no. 131, "Disclosures About Segments of an
Enterprise and Related Information", which established standards for reporting
information about operating segments in annual financial statements.
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 adoption of SFAS No. 131
did not have any material effect on the Company's primary financial statements
or results of operations.
-6-
The Company has identified its reportable operating business segment as
"Community Banking". The company's community banking segment consists of
commercial and retail banking. The community banking segment is managed as a
single strategic unit and derives its revenues from a wide range of banking
services, including investing and lending activities and the acceptance of
demand, savings and time deposits. Nonreportable operating segments of the
Company's operations which do not have similar characteristics to the
community banking operations and do not meet the thresholds requiring separate
disclosure are included in the "Other" category in the disclosure of business
segments below. The nonreportable segment represents the holding company
financial information.
The accounting policies used in the disclosure of business segments are the
same as those described in the summary of significant accounting policies.
The consolidation adjustments reflect certain eliminations of intersegment
revenue, cash and investments in the subsidiary. Reportable segment-specific
information, and the reconciliation to consolidated financial information, are
as follows:
Other
Adjustments
Community and
Banking Other Eliminations Consolidated
------------ ---------- ------------ ------------
March 31, 2001
- --------------
Investment securities $139,142,717 $ -- $ -- $139,142,717
Net loans 175,141,444 -- -- 175,141,444
Total assets 378,295,993 -- -- 378,295,993
Total interest income 6,590,340 2,812 2,812) 6,590,340
Total interest expense 2,476,584 -- (2,780) 2,473,804
Net interest income 4,113,756 -- 2,780 4,116,536
Net income $ 1,172,338 $1,173,278 $(1,172,338) $ 1,173,278
- ---------------------------------------------------------------------------
March 31, 2000
- --------------
Investment securities $123,015,315 $ -- $ -- $123,015,315
Net loans 159,906,455 -- -- 159,906,455
Total assets 333,370,382 -- -- 333,370,382
Total interest income 5,712,590 3,208 (3,208) 5,712,590
Total interest expense 2,067,631 -- (3,208) 2,064,423
Net interest income 3,644,959 -- 3,208 3,644,959
Net income $ 1,063,585 $1,064,797 $(1,063,585) $ 1,064,797
- --------------------------------------------------------------------------
5. 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-
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 $1,173,278 for the three months ended
March 31, 2001, representing an increase of $108,481 or 10.2% over $1,064,797
for the same period in 2000. Earnings per share of $.198 for the current
period represented an increase of $.018 from $.180 for the three months ended
March 31, 2000.
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, professional fees, and other expense.
Deposits of $310,842,623 at March 31, 2001 increased by $3,713,791 or 1.2%
from $307,128,832 at December 31, 2000. The increase in deposits occurred in
the interest-bearing categories, and was partially offset by decreases in the
non-interest bearing categories.
Loans of $175,552,218 at March 31, 2001 decreased by $477,047 or 0.3% from
$176,029,265 at December 31, 2000. This decrease occurred in the real estate
loan portfolio, offset by an increase in commercial loans. Noncurrent loans
(nonaccrual loans, troubled debt restructurings, and loans 90 days or more
past due but still accruing) totaled $497,936 and $560,295 at March 31, 2001
and December 31, 2000, respectively.
Assets of $378,295,993 at March 31, 2001 represented a $3,428,482 or 0.9%
increase from $374,867,511 at December 31, 2000.
Three months ended March 31, 2001 as Compared To
Three months ended March 31, 2000
Net Interest Income
- -------------------
Interest income for the three months ended March 31, 2001 was $6,590,340,
representing an increase of $877,750 or 15.4% from $5,712,590 for the three
months ended March 31, 2000, primarily due to higher average loan and
securities balances in 2001. Interest expense was $2,473,804, representing an
increase of $409,381 or 19.8% from $2,064,423 for the three months ended March
31, 2000. Net interest income for the three months ended March 31, 2001 was
$4,116,536, representing an increase of $468,369 or 12.8% from $3,648,167 for
the three months ended March 31, 2000.
Noninterest Income and Expense
- ------------------------------
Noninterest income for the three months ended March 31, 2001 was $958,585,
representing an increase of $121,629 or 14.5% from $836,956 for the three
months ended March 31, 2000. This increase was primarily the result of
increases in merchant credit card assessments, other charges, commissions and
fees and gains on sales of loans.
Noninterest expense for the three months ended March 31, 2001 of $3,263,084
was up $444,708 or 15.8% from $2,818,376 for the same period in 2000. 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, professional fees and other expense, partially offset
by a reduction in printing, stationary and supplies and marketing and
advertising expense.
-8-
Provision for Loan Losses
- -------------------------
There was no provision for loan losses for the three months ended March 31,
2001 or 2000, 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 $638,759 for the three months ended March 31, 2001
compared to $601,950 for the same period in 2000, the result of an increase in
taxable income during the current period.
Net Income
- ----------
Net income of $1,173,278 for the first three months of 2001 represented an
increase of $108,481 or 10.2% from $1,064,797 recorded for the first three
months of 2000. Earnings per share of $.198 for the current period
represented an increase of $.018 from $.180 for the three months ended March
31, 2000.
Allowance for Loan Losses
- -------------------------
The allowance for loan losses is based on management's estimate of the amount
required to reflect the risks in the loan portfolio, based on circumstances
and conditions known or anticipated at each reporting date. The methodology
for assessing the appropriateness of the allowance consists of a review of the
following three key elements:
- The valuation allowance for loans specifically identified as impaired
- The formula allowance for the various loan portfolio classifications
- The unallocated allowance
The valuation allowance reflects specific estimates of potential losses on
individual impaired loans. When each impaired loan is evaluated, if the
difference between the net present value of the loan (or fair value of the
collateral if the loan is collateral-dependent) is lower than the recorded
loan balance, the difference represents the valuation allowance for that loan.
The formula allowance is a percentage-based reflection of historical loss
experience and assigns required allowance allocations by loan classification
based on fixed percentages of all outstanding loan balances and commitments to
extend credit. The formula allowance employs a risk-rating model that grades
loans based on their general characteristics of credit quality and relative
risk. When a loan's credit quality becomes suspect, it 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 judgments regarding the type of loan, economic conditions
and trends, potential exposure to loss and other factors.
In addition to the valuation allowance and the formula allowance, there is an
unallocated allowance that recognizes the estimation risks associated with the
valuation and the formula allowance calculations, and that reflects
management's evaluation of various conditions, the effect of which are not
directly measurable in determining the valuation and formula allowances. The
unallocated allowance is adjusted for qualitative factors including, among
others, general economic and business conditions, credit quality trends, loan
volumes and concentrations and specific industry conditions within portfolio
segments.
There are inherent uncertainties with respect to determining the adequacy of
the allowance for loan losses. Because of these inherent uncertainties,
actual losses may differ from the amounts reflected in these consolidated
financial statements. Factors considered in evaluating the adequacy of the
allowance includes previous loss experience, current economic conditions and
their effect on borrowers, the performance of individual loans in relation to
contract terms, and the estimated fair values of underlying collateral.
Losses are charged against the allowance when management believes the
collectibility of principal is doubtful.
-9-
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 $139,142,717 at March 31, 2001, representing a decrease of
$3,409,007 or 2.4% from $142,551,724 at December 31, 2000. Securities
classified as available for sale were $47,276,652 and $50,110,202 at March
31,2001 and December 31, 2000 respectively. There were no sales of securities
during the three months ended March 31, 2001.
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, 2001 and 2000, deposits were $310.8 and $277.9
million, respectively. Management anticipates that deposits will grow
moderately during the remainder of 2001.
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, 2001, the Company's Tier 1 leverage capital ratio was 8.60%.
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, 2001 the Company's Tier 1 and total risk-based
capital ratios were 15.84 and 17.09%, 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 20, 2001, the Company's Board of Directors declared a first quarter
2001 cash dividend of $.058 per share of common stock to shareholders of
record at March 1, 2001, payable on April 13, 2001.
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 positive one-year
cumulative gap position at March 31, 2001, representing the excess of
repricing assets versus repricing liabilities within a one year time frame,
was 3.9% expressed as a percentage of total assets.
-10-
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 and adverse legislative or
regulatory changes.
-11-
PART II - OTHER INFORMATION
Item 5. OTHER INFORMATION
On February 22, 2001, the Company's Board of Directors approved the "2001
Directors' Plan", a stock option plan which provides incentives to present and
future directors of the Company who are not employees of the Company or its
Subsidiaries. The aggregate number of shares of the Company's common stock
reserved for grant under the Plan is 30,000. The Board of Directors has
granted options under the Plan for the purchase of an aggregate of 9,000
shares of the Company's common stock at a price of $10.00 per share, the fair
market value on February 22, 2001. The granted options fully vest over a four
year period. The Company filed a Form S-8 Registration Statement with the
Securities and Exchange Commission pursuant to the Plan on April 19, 2001.
On February 22, 2001, the Company's Board of Directors approved the "2001
Incentive Stock Option Plan for Key Employees", a stock option plan which
provides incentives to present and future key employees of the Company and its
Subsidiaries. The aggregate number of shares of the Company's common stock
reserved for grant under the Plan is 384,000. On February 22, 2001, the Board
of Directors granted options under the Plan, subject to the Plan's approval by
the Company's shareholders, at the fair market value of the shares on
the approval date. The Plan was approved by the Company's shareholders at the
April 10, 2001 Annual Meeting. The granted options fully vest over a four
year period and have an exercise price of $10.00 per share, the fair market
value on April 10, 2001. The Company filed a Form S-8 Registration Statement
with the Securities and Exchange Commission pursuant to the Plan on April 19,
2001.
On March 20, 2001, the Company's Board of Directors declared a first quarter
2001 cash dividend of $.058 per share of common stock to shareholders of
record at March 1, 2001, payable on April 13, 2001.
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,
2001.
-12-
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, 2001 By: /s/ James A. Langway
---------------------
James A. Langway
President & Chief Executive Officer
Principal Executive Officer
Date: May 8, 2001 By: /s/ Donald R. Hughes, Jr.
-------------------------
Donald R. Hughes, Jr.
Treasurer and Clerk,
Principal Financial Officer and
Principal Accounting Officer
-13-