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, 2002
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
5,940,606 shares outstanding
as of March 31, 2002
PART I - FINANCIAL INFORMATION
COMMUNITY BANCORP, INC.
Item 1. CONSOLIDATED BALANCE SHEETS
(Unaudited)
March 31, December 31,
2002 2001
---------- ----------
ASSETS
Cash and due from banks $ 21,668,519 $ 19,876,999
Federal funds sold 28,706,671 12,912,746
Securities available for sale, at market value 75,772,722 74,116,739
Securities held to maturity (market value
$94,773,152 at March 31, 2002 and $99,075,447
at December 31, 2001 93,237,909 97,266,087
Mortgage loans held for sale 1,108,279 1,909,913
Loans 188,158,824 188,452,703
Less allowance for loan losses 2,669,447 2,684,517
----------- -----------
Total net loans 185,489,377 185,768,186
----------- -----------
Premises and equipment, net 6,117,096 6,140,477
Other assets, net 4,864,292 4,714,597
----------- -----------
Total assets $416,964,865 $402,705,744
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits
Noninterest bearing $ 78,392,687 $ 78,513,849
Interest bearing 257,457,648 240,552,490
----------- -----------
Total deposits 335,850,335 319,066,339
----------- -----------
Securities sold under repurchase agreements 31,972,604 34,023,288
Borrowed funds 10,000,000 10,000,000
Other liabilities 2,281,462 3,305,118
----------- -----------
Total liabilities 380,104,401 366,394,745
----------- -----------
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 15,996,090 15,996,090
Surplus 219,120 219,120
Undivided profits 22,533,233 21,608,513
Treasury stock, at cost, 457,830 shares (2,297,019) (2,297,019)
Accumulated other comprehensive income 409,040 784,295
----------- -----------
Total stockholders' equity 36,860,464 36,310,999
----------- -----------
Total liabilities and
stockholders' equity $416,964,865 $402,705,744
=========== ===========
<FN>
The accompanying notes are an integral part of these unaudited, consolidated
financial statements
-2-
COMMUNITY BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three months ended
March 31,
--------------------------
2002 2001
---------- ----------
Interest income:
Interest and fees on loans $3,366,694 $3,820,329
Interest and dividends on securities:
Taxable interest 1,819,047 1,923,012
Nontaxable interest 313,982 199,565
Dividends 17,236 24,378
Interest on federal funds sold 79,413 452,390
--------- ---------
Total interest income 5,596,372 6,419,674
--------- ---------
Interest expense:
Interest on deposits 1,288,875 2,040,718
Interest on short term borrowings 192,208 433,086
--------- ---------
Total interest expense 1,481,083 2,473,804
--------- ---------
Net interest income 4,115,289 3,945,870
Provision for loan losses 45,000 --
--------- ---------
Net interest income after provision
for loan losses 4,070,289 3,945,870
--------- ---------
Noninterest income:
Merchant credit card assessments 415,783 426,529
Service charges 331,713 325,391
Other charges, commissions and fees 364,806 309,342
Gains on sales of loans, net 64,193 41,870
Gains on sales of securities, net 59,280 --
Other 27,654 26,119
--------- ---------
Total noninterest income 1,263,429 1,129,251
--------- ---------
Noninterest expense:
Salaries and employee benefits 1,712,733 1,645,165
Information technology and ATM network 295,752 294,027
Occupancy, net 259,278 242,042
Furniture and equipment 91,163 101,640
Credit card processing 339,272 387,324
Printing, stationery and supplies 60,519 57,486
Professional fees 118,780 139,721
Marketing and advertising 27,891 55,360
Other 358,394 340,319
--------- ---------
Total noninterest expense 3,263,782 3,263,084
--------- ---------
Income before income taxes 2,069,936 1,812,037
Income taxes 711,552 638,759
--------- ---------
Net income $1,358,384 $1,173,278
========= =========
-3-
COMMUNITY BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME (CONTINUED)
(Unaudited)
Three months ended
March 31,
--------------------------
2002 2001
---------- ----------
Basic earnings per common share $ .229 $ .198
Diluted earnings per common share $ .228 $ .198
Dividends per share $ .073 $ .058
Basic weighted average number of shares 5,940,606 5,914,441
Diluted weighted average number of shares 5,956,950 5,914,441
<FN>
The accompanying notes are an integral part of these unaudited, consolidated
financial statements.
-4-
COMMUNITY BANCORP, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
Three months ended
March 31,
------------------------
2002 2001
---------- ----------
Net income $1,358,384 $1,173,278
Other comprehensive income:
Unrealized securities (losses) gains
arising during period (635,274) 653,596
Income tax benefit (expense) on securities
(losses) gains arising during period 260,019 (267,516)
---------- ----------
Net unrealized securities (losses)
gains arising during period (375,255) 386,080
---------- ----------
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 (loss) income (375,255) 386,080
---------- ----------
Comprehensive income $ 983,129 $1,559,358
========== ==========
<FN>
The accompanying notes are an integral part of these unaudited, consolidated
financial statements.
-5-
COMMUNITY BANCORP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three months ended
March 31,
--------------------------
2002 2001
----------- -----------
Cash flows from operating activities:
Net income $ 1,358,384 $ 1,173,278
Adjustments to reconcile net income
to net cash provided by operating
activities:
Decrease (increase) in mortgage loans held
For sale 801,634 (2,100,283)
Depreciation and amortization 241,012 239,793
Provision for loan losses 45,000 --
Amortization of investment securities
discounts and premiums, net 99,695 38,974
Gain on sale of securities 59,280 --
(Decrease) in other liabilities (1,143,339) (209,821)
Increase in taxes payable 505,632 666,244
(Decrease) in interest payable (32,866) (3,409)
(Increase) in other assets (3,191) (350,466)
(Increase) decrease in interest receivable (146,504) 284,976
---------- ----------
Total adjustments 426,353 (1,433,992)
---------- ----------
Net cash provided by (used in) operating
activities 1,784,737 (260,714)
---------- ----------
Cash flows from investing activities:
Maturities, principal repayments and sales of
securities available for sale 1,869,374 3,442,232
Maturities and principal repayments of
securities held to maturity 4,965,802 23,361,846
Purchases of securities available for sale (4,258,020) --
Purchases of securities held to maturity (999,210) (22,780,457)
Net change in federal funds sold (15,793,925) (7,490,700)
Net change in loans and other real estate
owned 128,863 497,371
Acquisition of property, plant and equipment (217,630) (515,584)
---------- ----------
Net cash used in investing activities (14,304,746) (3,485,292)
---------- ----------
Cash flows from financing activities:
Net change in deposits 16,783,996 3,713,791
Net change in repurchase agreements (2,050,684) (2,209,905)
Dividends paid (421,783) (331,201)
---------- ----------
Net cash provided by financing activities 14,311,529 1,172,685
---------- ----------
Net increase(decrease)in cash and due from banks 1,791,520 (2,573,321)
---------- ----------
Cash and due from banks at beginning of period 19,876,999 16,472,547
---------- ----------
Cash and due from banks at end of period $21,668,519 $13,899,226
========== ==========
<FN>
The accompanying notes are an integral part of these unaudited, consolidated
financial statements.
-6-
Supplemental disclosures:
1. Cash paid for interest was $1,513,949 and $2,477,213 for the three months
ended March 31, 2002 and 2001, respectively.
2. Cash paid for income taxes was $205,920 and $0 for the three
months ended March 31, 2002 and 2001, respectively.
-7-
COMMUNITY BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2002
_____________________________________________________________________________
1. BASIS OF PRESENTATION
---------------------
The accompanying unaudited consolidated financial statements have been prepared
in accordance with accounting principles generally accepted in the United
States 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 principles generally accepted 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 unaudited 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, 2001
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. Earnings per share is based on the weighted
average number of shares outstanding during the period.
A reconciliation between basic and diluted earnings per share from continuing
operations is as follows:
Three Months Ended
--------------------------------------
March 31, 2002 March 31, 2001
--------------- --------------
Net Earnings $ 1,358,384 $ 1,173,278
Basic EPS:
Basic common shares 5,940,606 5,914,441
Basic EPS $ .229 .198
Diluted EPS:
Basic common shares 5,940,606 5,914,441
Plus: Impact of stock options 16,344 --
Diluted common shares 5,956,950 5,914,441
Diluted EPS $ .228 $ .198
-8-
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.
4. OPERATING SEGMENTS
------------------
The Company has adopted SFAS No. 131, "Disclosures About Segments of an
Enterprise and Related Information", which establishes standards for reporting
information about operating segments in 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.
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:
Adjustments
Community and
Banking Other Eliminations Consolidated
----------- ---------- ------------- -------------
March 31, 2002
Investment securities $169,010,631 $ -- $ -- $169,010,631
Net loans 185,489,377 -- -- 185,489,377
Total assets 416,964,865 -- -- 416,964,865
Total interest income 5,596,372 2,596 (2,596) 5,596,372
Total interest expense 1,483,736 -- (2,653) 1,481,083
Net interest income 4,112,636 -- 2,653 4,115,289
Net income $ 1,357,387 $1,358,384 $(1,357,387) $ 1,358,384
_____________________________________________________________________________
-9-
Adjustments
Community and
Banking Other Eliminations Consolidated
----------- ---------- ------------- ------------
March 31, 2001
Investment securities $139,142,717 $ -- $ -- $139,142,717
Net loans 172,745,419 -- -- 172,745,419
Total assets 378,295,993 -- -- 378,295,993
Total interest income 6,419,674 2,812 (2,812) 6,419,674
Total interest expense 2,476,584 -- (2,780) 2,473,804
Net interest income 3,943,090 -- 2,780 3,945,870
Net income $ 1,172,338 $1,173,278 $(1,172,338) $ 1,173,278
_____________________________________________________________________________
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.
-10-
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 $1,358,384 for the three months ended March
31, 2002, representing an increase of $185,106 or 15.8% over $1,173,278 for the
same period in 2001. Basic earnings per share of $.229 for the current period
represented an increase of $.031 from $.198 for the three months ended March
31, 2001.
The improvement in net income resulted primarily from an increase in net
interest income, other charges, commissions and fees, and gain on sales of
securities, while non-interest expense remained unchanged.
Deposits of $335,850,335 at March 31, 2002 increased by $16,783,996 or 5.3%
from $319,066,339 at December 31, 2001. The increase in deposits occurred in
the interest-bearing categories.
Loans of $188,158,824 at March 31, 2002 decreased by $293,879 or 0.2% from
$188,452,703 at December 31, 2001. This decrease took place in prime equity,
installment, and MasterCard loans, partially 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
$410,634 and $332,981 at March 31, 2002 and December 31, 2001, respectively.
Assets of $416,964,865 at March 31, 2002 represented a $14,259,121 or 3.5%
increase from $402,705,744 at December 31, 2001.
Three months ended March 31, 2002 as Compared To
Three months ended March 31, 2001
---------------------------------
Net Interest Income
- -------------------
Interest income for the three months ended March 31, 2002 was $5,596,372,
representing a decrease of $823,302 or 12.8% from $6,419,674 for the three
months ended March 31, 2002, primarily due to lower average interest rates,
partially offset by higher average loan and securities balances in 2002.
Interest expense was $1,481,083, representing a decrease of $992,721 or 40.1%
from $2,473,804 for the three months ended March 31, 2001, primarily due to
lower average interest rates, partially offset by higher average interest
bearing deposit, repurchase agreement, and borrowing balances in 2002. Net
interest income for the three months ended March 31, 2002 was $4,115,289,
representing an increase of $169,419 or 4.3% from $3,945,870 for the three
months ended March 31, 2001.
Noninterest Income and Expense
- ------------------------------
Noninterest income for the three months ended March 31, 2002 was $1,263,439
representing an increase of $134,188 or 11.9% from $1,129,251 for the three
months ended March 31, 2001. This increase was primarily the result of an
increase in other charges, commissions and fees, gains on sales of loans, and
gains on sales of securities, partially offset by a decrease in merchant credit
card assessments.
-11-
Noninterest expense for the three months ended March 31, 2002, of $3,263,792
was up $708 or 0.02% from $3,263,084 for the corresponding period in 2001.
Increases in salaries and benefits, occupancy and other expenses were offset by
decreases in furniture and equipment, credit card processing, professional
fees, and marketing and advertising expense.
Provision for Loan Losses
- -------------------------
The provision for loan losses for the three months ended March 31, 2002 was
$45,000, compared to $0 for the three months ended March 31, 2001. This
increase reflects management's continuing evaluation of the adequacy of the
reserve for loan losses.
Income Taxes
- ------------
Income tax expense of $711,552 for the three months ended March 31, 2002
compared to $638,759 for the corresponding period in 2001. The increase was
the result of an increase in taxable income during the current period.
Net Income
- ----------
Net income of $1,358,384 for the three months ended March 31, 2002 represented
an increase of $185,106 or 15.8% from $1,173,278 recorded for the corresponding
period in 2001. Basic earnings per share of $.229 for the current period
represented an increase of $.031 from $.198 for the three months ended March
31, 2001.
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 imprecision allowance
The valuation allowance reflects specific estimates of potential losses on
individually impaired loans. When each impaired loan is evaluated, if the net
present value of the expected cash flows (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 estimate based on historical loss
experience and assigns required allowance allocations by loan classification
based on fixed percentages of all outstanding loan balances. 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. Losses are charged against the allowance when
management believes the collectibility of principal is doubtful.
In addition to the valuation allowance and the formula allowance, there is an
imprecision allowance that is determined based on the totals of the valuation
-12-
and formula allowances. The imprecision allowance reflects the measurement
imprecision inherent in determining the valuation allowance and the formula
allowance. It represents 15% - 25% of the valuation and formula allowances,
depending on management's evaluation of various conditions, the effects of
which are not directly measured in determining the valuation and formula
allowances.
The evaluation of the inherent loss resulting from these conditions involves a
higher level of uncertainty because they are not identified with specific
problem credits or portfolio segments. The conditions evaluated in connection
with the imprecision allowance include the following:
* Levels of and trends in delinquencies and impaired loans
* Levels of and trends in charge-offs and recoveries
* Trends in loan volume and terms
* Effects of changes in credit concentrations
* Effects of and changes in risk selection and underwriting standards, and
other changes in lending policies, procedures and practices
* National and local economic conditions
* Trends and duration of the present business cycle
* Findings of internal and external credit review examiners
When an evaluation of these conditions signifies a change in the level of risk,
the Company adjusts the formula allowance. Periodic credit reviews enable
further adjustment to the formula allowance through the risk rating of loans
and the identification of loans requiring a valuation allowance. In addition,
the formula allowance model is designed to be self-correcting by taking into
consideration recent actual loss experience.
Securities
- ----------
The Company's securities portfolio consists of obligations of the U.S.
Government sponsored agencies, mortgage backed securities, obligations of
various municipalities, and corporate bonds. Those assets are used in part to
secure public deposits and as collateral for repurchase agreements. Total
securities were $169,010,631 at March 31, 2002, representing a decrease of
$2,372,195 or 1.4% from $171,382,826 at December 31, 2001. Securities
classified as available for sale were $75,772,722 and $74,116,739 at March 31,
2002 and December 31, 2001, respectively. There were no sales of securities
during the three months ended March 31, 2002, other than the redemption of the
Company's shares of stock in the regional ATM network NYCE, when it was
purchased by First Data Corporation.
Liquidity and Capital Resources
- -------------------------------
The Company's primary sources of liquidity are customer deposits, amortization
and pay-offs of loan principal and sales 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, 2002 and 2001, deposits were
$335,850,335 and $310,842,623, respectively. Management anticipates that
deposits will grow moderately during the remainder of 2002.
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.
-13-
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, 2002, the Company's Tier 1 leverage capital ratio was 8.74%.
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, 2002 the Company's Tier 1 and total risk-based capital ratios
were 15.92% 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.).
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, 2002, representing the excess of repricing
liabilities versus repricing assets within a one year time frame, was 4.1%
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, and adverse legislative or
regulatory changes.
-14-
PART II - OTHER INFORMATION
---------------------------
Item 5. OTHER INFORMATION
On February 19, 2002, the Company's Board of Directors granted stock options
under the "2001 Directors' Plan" for the purchase of an aggregate of 18,000
shares of the Company's common stock at a price of $12.00 per share, the fair
market value on the date of grant. The granted options fully vest over a four
year period.
On February 19, 2002, the Company's Board of Directors granted stock options
under the "2001 Incentive Stock Option Plan for Key Employees" for the
purchase of an aggregate of 90,413 shares of the Company's common stock at a
price of $12.00 per share, the fair value on the date of grant. The granted
options fully vest over a four year period.
There is no established public trading market for the Company's common stock.
Therefore, for purposes of the stock options granted on February 19, 2002
pursuant to the 2001 Director's Plan and the 2001 Incentive Stock Option Plan
for Key Employees, the fair value of the Company's stock on the date of grant
was determined to be equal to the most recent trade price as of that date.
On March 19, 2002, the Company's Board of Directors declared a first quarter
2002 cash dividend of $.073 per share of common stock to shareholders of record
at March 1, 2002, payable on April 15, 2002.
-15-
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) The Company did not file a Form 8-K during the quarter ended March 31,
2002.
-16-
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 9, 2002 By: /s/ James A. Langway
--------------------
James A. Langway
President & Chief Executive Officer and
Principal Executive Officer
Date: May 9, 2002 By: /s/ Donald R. Hughes, Jr.
-------------------------
Donald R. Hughes, Jr.
Treasurer and Clerk,
Principal Financial Officer and
Principal Accounting Officer
-17-