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, 1999
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
2,944,588 shares outstanding
as of April 30, 1999
PART I - FINANCIAL INFORMATION
COMMUNITY BANCORP, INC.
Item 1. CONSOLIDATED BALANCE SHEETS
March 31, December 31,
1999 1998
----------- -----------
ASSETS
Cash and due from banks $ 16,133,820 $ 17,601,043
Federal funds sold 10,500,000 17,000,000
Securities available for sale, at market 27,797,561 31,685,402
Securities held to maturity (market value
$86,797,063 at 3/31/99 and $87,832,432
at 12/31/98) 86,397,626 87,058,589
Mortgage loans held for sale 858,815 1,330,278
Loans 150,406,979 140,223,942
Less allowance for possible loan losses 3,007,567 2,981,012
----------- -----------
Total net loans 147,399,412 137,242,930
Premises and equipment, net 5,868,465 5,576,789
Other assets, net 3,765,806 3,391,800
----------- -----------
Total assets $298,721,505 $300,886,831
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits
Noninterest bearing $ 57,260,177 $ 60,511,257
Interest bearing 191,081,264 193,897,478
----------- -----------
Total deposits 248,341,441 254,408,735
----------- -----------
Federal funds purchased and securities
sold under repurchase agreements 22,198,794 19,747,496
Other liabilities 2,001,321 1,265,351
----------- -----------
Total liabilities 272,541,556 275,421,582
----------- -----------
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, 3,199,218 shares issued,
2,944,588 shares outstanding 7,998,045 7,998,045
Surplus 524,106 524,106
Undivided profits 20,000,335 19,274,861
Treasury stock, at cost, 254,630 shares (2,364,573) (2,364,573)
Accumulated other comprehensive income 22,036 32,810
----------- -----------
Total stockholders' equity 26,179,949 25,465,249
----------- -----------
Total liabilities and
stockholders' equity $298,721,505 $300,886,831
=========== ===========
<FN>
See accompanying notes.
-2-
COMMUNITY BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME
Three months ended
March 31,
-------------------------
1999 1998
--------- ---------
Interest income:
Interest and fees on loans $3,249,967 $3,346,892
Interest and dividends on securities:
Taxable interest 1,566,776 1,277,759
Nontaxable interest 135,497 94,967
Dividends 19,126 16,670
Interest on federal funds sold 114,713 184,891
--------- ---------
Total interest income 5,086,079 4,921,179
--------- ---------
Interest expense:
Interest on deposits 1,574,062 1,609,620
Interest on short term borrowings 228,755 196,154
--------- ---------
Total interest expense 1,802,817 1,805,774
--------- ---------
Net interest income 3,283,262 3,115,405
--------- ---------
Provision for possible loan losses 0 0
--------- ---------
Net interest income after provision
for possible loan losses 3,283,262 3,115,405
--------- ---------
Noninterest income:
Merchant credit card assessments 312,742 304,205
Service charges 145,340 148,178
Other charges, commissions and fees 298,132 267,187
Gains on sales of loans, net 39,381 42,728
Gains on sales of securities, net 0 0
Other 21,842 20,303
--------- ---------
Total noninterest income 817,437 782,601
--------- ---------
Noninterest expense:
Salaries and employee benefits 1,313,388 1,261,079
Data processing 151,546 148,657
Occupancy, net 176,052 144,565
Furniture and equipment 91,030 116,987
Credit card processing 268,525 242,906
Printing, stationery and supplies 64,703 72,495
Marketing and advertising 85,920 47,574
Other 416,754 402,866
--------- ---------
Total noninterest expense 2,567,918 2,437,129
--------- ---------
Income before income taxes 1,532,781 1,460,877
Income taxes 551,127 540,281
--------- ---------
Net income $ 981,654 $ 920,596
========= =========
Earnings per common share $ .333 $ .315
Dividends per share $ .087 $ .077
Weighted average number of shares 2,944,588 2,926,257
<FN>
See accompanying notes.
-3-
COMMUNITY BANCORP, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Three months ended
March 31,
------------------------
1999 1998
--------- ---------
Net income $ 981,654 $ 920,596
Other comprehensive income:
Unrealized securities (losses) gains
arising during period (18,239) 9,379
Income tax benefit (expense) on securities
(losses) gains arising during period 7,465 (3,967)
--------- ---------
Net unrealized securities (losses)
gains arising during period (10,774) 5,412
--------- ---------
Less: reclassification adjustment for
securities (gains) losses included in income 0 0
Income tax expense (benefit) on securities
(gains) losses included in income 0 0
--------- ---------
Net reclassification adjustments for
securities (gains) losses included in
net income 0 0
--------- ---------
Other comprehensive income (10,774) 5,412
--------- ---------
Comprehensive income $ 970,880 $ 926,008
========= =========
<FN>
See accompanying notes.
-4-
COMMUNITY BANCORP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Three months ended
March 31,
-------------------------
1999 1998
---------- ----------
Cash flows from operating activities:
Net income $ 981,654 $ 920,596
Adjustments to reconcile net income
to net cash provided by operating
activities:
Decrease (increase) in mortgage loans
held for sale 471,463 (3,286,282)
Premium on sale of mortgages 37,371 65,887
Depreciation and amortization 205,677 205,297
Increase (decrease) in other liabilities 306,083 (36,776)
Increase in taxes payable 445,304 286,302
Increase (decrease) in interest payable 47,193 (11,603)
(Increase) decrease in other assets (348,866) 16,973
(Increase) in interest receivable (62,501) (25,120)
---------- ----------
Total adjustments 1,101,724 (2,785,322)
---------- ----------
Net cash (used in) provided by operating
activities $ 2,083,378 $(1,864,726)
========== ==========
Cash flows from investing activities:
Maturities and principal repayments of
securities available for sale 4,040,745 2,196,057
Maturities and principal repayments of
securities held to maturity 11,101,064 9,163,728
Purchases of securities available for sale (171,400) (84,600)
Purchases of securities held to maturity (10,440,102) (13,831,005)
Net change in federal funds sold 6,500,000 (1,000,000)
Net change in loans and other real estate
owned (10,217,258) 2,917,016
Acquisition of property, plant and equipment (497,354) (360,142)
---------- ----------
Net cash provided by (used in) investing
activities 315,695 (998,946)
---------- ----------
Cash flows from financing activities:
Net change in deposits (6,067,293) 3,619,853
Net change in federal funds purchased 0 (3,000,000)
Net change in repurchase agreements 2,451,298 5,007,874
Dividends paid (250,301) (219,469)
---------- ----------
Net cash (used in) provided by financing
activities (3,866,296) 5,408,258
---------- ----------
Net (decrease) increase in cash and
due from banks (1,467,223) 2,544,586
---------- ----------
Cash and due from banks at beginning
of period 17,601,043 16,704,667
---------- ----------
Cash and due from banks at end of period $16,133,820 $19,249,253
========== ==========
<FN>
See accompanying notes.
-5-
COMMUNITY BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 1999
________________________________________________________________________
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 generally accepted accounting principles 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 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, 1998.
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 is no dilution effect.
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. Prior year data has been restated to conform to the
requirements of SFAS No. 130.
-6-
4. OPERATING SEGMENTS
The Company adopted Financial Accounting Standards Board Statement
No. 131, "Disclosures About Segments of an Enterprise and Related
Information" (SFAS No. 131), during 1998. SFAS No. 131 established
standards for reporting information about operating segments in
annual financial statements and requires selected information about
operating segments in interim financial reports issued to the
stockholders. It also established standards for related disclosures
about products and services, and geographic areas. 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 Company has one reportable segment: community banking. At
present, the Company conducts no activities independent of the Bank.
The Bank is engaged in substantially all of the business operations
customarily conducted by an independent commercial bank in
Massachusetts. Banking services offered include acceptance of
checking, savings and time deposits, and the making of consumer,
commercial, real estate and other loans. The Bank also offers
official checks, traveler's checks, safe deposit boxes, electronic
banking and bill payment services and other customary banking
services to its customers.
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 $981,654 for the three months ended
March 31, 1999, representing an increase of $61,058 or 6.6% over $920,596
for the same period in 1998. Earnings per share of $.333 for the current
period represented an increase of $.018 from $.315 for the three months
ended March 31, 1998.
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, occupancy, credit card
processing, marketing and advertising and other expense.
Deposits of $248,341,441 at March 31, 1999 decreased by $6,067,294 or
2.4% from $254,408,735 at December 31, 1998. The decrease in deposits
occurred in several interest- and noninterest-bearing categories, and was
partially offset by increases in money market deposit accounts and
certificates of deposit. The decrease in deposits was partially offset
by a $2,451,298 increase in repurchase agreements during the period
Loans of $150,406,979 at March 31, 1999 increased by $10,183,037 or 7.3%
from $140,223,942 at December 31, 1998. This growth was concentrated in
the commercial, residential mortgage and home equity loan categories.
Noncurrent loans (nonaccrual loans and loans 90 days or more past due but
still accruing) totaled $1,223,393 and $913,151 at March 31, 1999 and
December 31, 1998, respectively. There were no accruing troubled debt
restructurings at March 31, 1999 or December 31, 1998.
Assets of $298,721,505 at March 31, 1999 represented a $2,165,326 or .7%
decrease from $300,886,831 at December 31, 1998.
Three months ended March 31, 1999 as Compared To
Three months ended March 31, 1998
------------------------------------------------
Net Interest Income
Interest income for the three months ended March 31, 1999 was $5,086,079,
representing an increase of $164,900 or 3.4% from $4,921,179 for the
three months ended March 31, 1998, primarily due to higher loan and
securities balances in 1999. Interest expense was $1,802,817, virtually
unchanged from $1,805,774 for the three months ended March 31, 1998. Net
interest income for the three months ended March 31, 1999 was $3,283,262,
representing an increase of $167,857 or 5.4% from $3,115,405 for the
three months ended March 31, 1998.
Noninterest Income and Expense
Noninterest income for the three months ended March 31, 1999 was
$817,437, representing an increase of $34,836 or 4.5% from $782,601 for
the three months ended March 31, 1998. This increase was primarily the
result of increases in merchant credit card assessments, other charges,
commissions and fees and other income, partially offset by a reduction in
service charges and gains on sales of loans.
-8-
Noninterest expense for the three months ended March 31, 1999 of
$2,567,918 was up $130,789 or 5.4% from $2,437,129 for the same period in
1998. This increase was primarily the result of increases in salaries
and employee benefits, data processing, occupancy, credit card
processing, marketing and advertising and other expense, partially offset
by reductions in furniture and equipment and printing, stationery and
supplies.
Provision for Loan Losses
There was no provision for loan losses for the three months ended March
31, 1999 or 1998, 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 $551,127 for the three months ended March 31, 1999
compared to $540,281 for the same period in 1998, the result of an
increase in taxable income during the current period.
Net Income
Net income of $981,654 for the first three months of 1999 represented an
increase of $61,058 or 6.6% from $920,596 recorded for the first three
months of 1998. Earnings per share of $.333 for the current period
represented an increase of $.018 from $.315 for the three months ended
March 31, 1998.
Allowance for Possible Loan Losses
The allowance for possible loan losses is maintained at a level believed
by management to be adequate to absorb potential losses in the loan
portfolio. Management's methodology in determining the adequacy of the
allowance considers specific credit reviews, past loan loss experience,
current economic conditions and trends and the volume, growth and
composition of the loan portfolio. Each loan on the Company's internal
Watch List is evaluated periodically to estimate potential losses. For
loans with potential losses, the bank sets aside or "allocates" a portion
of the ALLL against such potential losses. For the remainder of the
portfolio, "unallocated" reserve amounts are determined based on
judgments regarding the type of loan, economic conditions and trends,
potential exposure to loss and other factors. While the Company achieved
total loan growth of $10,183,037 or 7.3% during the quarter ended March
31, 1999, there were no significant changes in loan concentrations, loan
quality or loan terms during the period. Estimation methods and
assumptions affecting the allowance remained unchanged from the prior
quarter. There was no significant reallocation of the allowance among
the various segments of the portfolio. The allowance for possible loan
losses is charged when management determines that the repayment of the
principal on a loan is in doubt. Subsequent recoveries, if any, are
credited to the allowance. At March 31, 1999, the balance in the
allowance was $3,007,567 representing 245% of noncurrent loans, compared
to $2,981,012 or 326% of noncurrent loans at December 31, 1998.
Securities
The Company's securities portfolio consists of obligations of the U.S.
Treasury, U.S. government sponsored agencies, mortgage backed securities
-9-
and obligations of various municipalities. Those assets are used in part
to secure public deposits and as collateral for repurchase agreements.
Total securities were $114,195,187 at March 31, 1999, representing a
decrease of $4,548,804 or 3.8% from $118,743,991 at December 31, 1998.
At March 31, 1999, $27,797,561 in securities were classified as available
for sale. There were no sales of securities during the three months
ended March 31, 1999.
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, 1999 and
1998, deposits were $248.3 and $236.4 million, respectively. Management
anticipates that deposits will grow moderately during the remainder of
1999.
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, 1999, the Company's Tier 1 leverage capital
ratio was 8.75%. 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, 1999 the Company's Tier 1 and
total risk-based capital ratios were 15.55% and 16.81%, 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 16, 1999, the Company's Board of Directors declared a first
quarter 1999 cash dividend of $.087 per share of common stock to
shareholders of record at March 1, 1999, payable on April 15, 1999.
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, 1999, representing the excess of repricing liabilities versus
repricing assets within a one year time frame, was 6.2% expressed as a
percentage of total assets.
-10-
Year 2000
The following Year 2000 statements constitute a Year 2000 Readiness
Disclosure within the meaning of the Year 2000 Information and Readiness
Disclosure Act of 1998.
The Company, like most users of computers, computer software, and
equipment utilizing embedded microcontrollers, may be affected by the
Year 2000 date change. The Company recognized the importance of this
issue in 1996 and formally established an internal Year 2000 Committee in
1997, chaired by a member of the Company's senior management team, to
assess all systems to ensure that they will function properly. This
process involves five separate phases: awareness, assessment, renovation,
validation and implementation.
The Company's Year 2000 Committee established a schedule specifying the
completion dates for each of the process's five phases. During 1997,
the Committee completed the systems assessment phase, identifying each
internal system that could potentially be affected by the Year 2000
issue. Those systems were then designated as either mission-critical or
non- mission-critical. Mission-critical systems were defined by the
Company as being vital to the successful continuance of core business
activities. The Company determined that its only mission-critical system
is its mainframe data processing system. The mainframe system has been
certified by its respective hardware and software vendors as being Year
2000 compliant. In addition, the Company contracted with a qualified
consulting firm to independently test the mainframe system for Year 2000
compatibility. That testing has verified that the mainframe system is
Year 2000 compliant.
For all non-mission-critical systems that could be affected by the Year
2000 issue, action plans were designed which set forth the process for
determining whether or not those systems are compliant. Those
determinations involve obtaining compliance certifications from vendors
whenever possible and by validation testing conducted by the Company. A
similar procedure was followed for external systems and services the bank
obtains from third parties. Testing of those third party systems for
Year 2000 compliance began during fourth quarter of 1998 and was
completed during the first quarter of 1999.
When the results of the Company's validation testing have revealed that a
particular system or service was not Year 2000 compliant, a specific
deadline has been established by which time that system or service must
be brought into compliance. Contingency plans were formulated to either
upgrade such systems in order to meet Year 2000 compliance requirements,
replace them with systems that are certified as compliant, or establish
alternative processing arrangements. Those contingency plans document
the action the Company will take for each such non-compliant system. At
March 31, 1999, the Company was in the final or "implementation" phase of
this process.
In certain cases, however, such as the potential loss of electrical power
or telecommunications services due to Year 2000 problems, testing by the
Company is either not practical or not possible. In those cases,
detailed contingency plans have been designed that specify how the
Company will deal with each such potential situation.
The Year 2000 issue presents several potential risks to the Company. The
banking transactions of the Company's customers are processed by its
-11-
internal mainframe data processing system. The failure of that system to
function as a result of the millennium date change could result in the
Company's inability to process customer transactions in the usual manner.
In that event, the Company could potentially lose customers to other
financial institutions, resulting in a loss of revenue. A number of the
Company's borrowers utilize computers and computer software to varying
degrees in conjunction with the operation of their businesses. The
customers and suppliers of those businesses may utilize computers as
well. Should the Company's borrowers, or the businesses on which they
depend, experience Year 2000 related computer problems, such borrowers'
cash flow could be disrupted, adversely affecting their ability to repay
their loans with the Company. The Company has assessed its Year 2000
exposure to credit customers through the use of questionnaires and
personal interviews. Management's determination of the potential impact
the Year 2000 issue could have on those customers' ability to continue
servicing their debt in a satisfactory manner is factored into the
Company's credit risk rating system.
Similar problems could affect certain of the Company's business
depositors, potentially causing interruptions in their cash flow that
could result in their inability to maintain historical deposit balance
levels in their accounts. Such an event could result in the reduction of
deposit balances available to the Company for loans, investments, etc.
Concern on the part of some depositors that Year 2000 related problems
could impair access to their deposit balances following the millennium
date change could result in the Company experiencing a deposit outflow
prior to December 31, 1999. The potential increase in cash requirements
has been estimated and factored into the Company's analysis of projected
future liquidity needs. Also, the Company has made a special arrangement
with the Federal Home Loan Bank of Boston for a temporary $10,000,000
loan for the period of November 15, 1999 through March 15, 2000. This
loan will provide the Company with additional liquidity sufficient to
fund any anticipated cash requirements resulting from customers
withdrawing funds from their deposit accounts.
Certain utility services, such as electrical power and telecommunications
services, could be disrupted if those services experience Year 2000
related problems. Also, should Year 2000 related problems occur which
cause any of the Company's systems, or the systems of certain third
parties upon which the Company depends, to become inoperative, increased
personnel costs could be incurred if additional staff is required to
perform functions that the inoperative systems would have otherwise
performed. The Company has designed contingency plans to address such
potential occurrences. As a nationally chartered financial institution,
the Company and its subsidiary, Community National Bank, are regulated by
agencies of the federal government. Federal bank regulators have
established specific guidelines and timetables for all nationally
chartered financial institutions to follow in addressing the Year 2000
issue. The Company's Year 2000 contingency plans follow those
requirements. As of March 31, 1999, the Company is in compliance with
all Year 2000 guidelines and timetables mandated by the banking
regulators, and it is on schedule with its own internal preparedness
efforts.
The Company believes it is not possible to estimate the potential lost
revenue due to the Year 2000 issue, as the extent and longevity of such
potential problems cannot be predicted. However, the Company believes it
will be able to modify or replace any affected systems in time to
-12-
minimize any detrimental effects on its operations. A number of Year
2000 compliant systems have already been installed or are in the process
of being installed. The Company's estimated total cost to address the
Year 2000 issue, including the replacement of computer equipment,
software programs, and other equipment containing embedded
microprocessors that were not Year 2000 compliant, is approximately
$200,000. Of that amount, a total of approximately $91,800 has been
incurred to date, $34,300 of which was incurred during the first quarter
of 1999. System maintenance or modification costs are being expensed as
incurred, while the cost of new hardware, software, and other equipment
will be capitalized and amortized over their useful lives.
-13-
PART II - OTHER INFORMATION
Item 5. OTHER INFORMATION
On March 16, 1999, the Company's Board of Directors declared a first
quarter 1999 cash dividend of $.087 per share of common stock to
shareholders of record at March 1, 1999, payable on April 15, 1999.
On April 12, 1999, Community National Bank opened its tenth branch
office, located at 35 Edgell Road, Framingham, Massachusetts.
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, 1999.
-14-
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 5, 1999 By: /s/ James A. Langway
-------------------------
James A. Langway
President & Chief Executive Officer
Principal Executive Officer
Date: May 5, 1999 By: /s/ Donald R. Hughes, Jr.
-------------------------
Donald R. Hughes, Jr.
Treasurer and Clerk,
Principal Financial Officer and
Principal Accounting Officer
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