Edgar Filing: COMMUNITY BANCORP /VT

form11-k2007.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 11-K

[ X ] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2007

[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from_____________ to ______________

Commission File Number - 333-133631

A.	Full title of the plan and the address of the plan:

COMMUNITY BANCORP. AND DESIGNATED SUBSIDIARIES' RETIREMENT SAVINGS PLAN

4811 U.S. Rte. 5

P.O. Box 259

Derby, Vermont 05829

B.	Name of issuer of the securities held pursuant to the plan and the address of its principal executive office:

COMMUNITY BANCORP.

4811 U.S. Rte. 5

P.O. Box 259

Derby, Vermont 05829

REQUIRED INFORMATION

The Community Bancorp. and Designated Subsidiaries' Retirement Savings Plan is an ERISA plan with more than 100 participants. Required financial statements filed with this report:

Financial Report for plan year ended December 31, 2007.

COMMUNITY BANCORP. AND DESIGNATED

SUBSIDIARIES RETIREMENT SAVINGS PLAN

FINANCIAL STATEMENTS

With

SUPPLEMENTARY INFORMATION

December 31, 2007 and 2006

With Independent Auditors’ Report

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Board of Directors

Community Bancorp. and Designated Subsidiaries Retirement Savings Plan

We have audited the accompanying statements of net assets available for benefits of Community Bancorp. and Designated Subsidiaries Retirement Savings Plan as of December 31, 2007 and 2006, and the related statement of changes in net assets available for benefits for the year ended December 31, 2007. These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of Community Bancorp. and Designated Subsidiaries Retirement Savings Plan as of December 31, 2007 and 2006 and the changes in net assets available for benefits for the year ended December 31, 2007 in conformity with accounting principles generally accepted in the United States of America.

Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedule of assets (held at end of year) is presented for the purpose of additional analysis and is not a required part of the basic financial statements but is supplementary information required by the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. This supplementary information is the responsibility of the Plan's management. The supplemental information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

/s/ Berry, Dunn, McNeil & Parker

Portland, Maine

June 24, 2008

VT Reg. No. 92-0000278

COMMUNITY BANCORP. AND DESIGNATED

SUBSIDIARIES RETIREMENT SAVINGS PLAN

Statements of Net Assets Available for Benefits

December 31, 2007 and 2006

	2007		2006
Assets
Investments, at fair value
Money market assets	$	370,238	$	332,997
Mutual funds		6,263,851		5,717,129
Marketable equity securities		4,774,448		4,144,406
Participant loans		336,061		223,555

Total investments		11,744,598		10,418,087

Receivables
Employer contributions		261,386		293,926
Participant contributions		97		11,997
Accrued interest and dividends		126,569		3,699

Total receivables		388,052		309,622

Net assets available for benefits	$	12,132,650	$	10,727,709

The accompanying notes are an integral part of these financial statements.

COMMUNITY BANCORP. AND DESIGNATED

SUBSIDIARIES RETIREMENT SAVINGS PLAN

Statement of Changes in Net Assets Available for Benefits

Year Ended December 31, 2007

Additions to net assets attributed to:
Investment income
Interest and dividends	$	826,403
Net appreciation in fair value of investments		338,361

Net investment income		1,164,764

Contributions
Employer’s		410,519
Participants’		322,938

Total contributions		733,457

Total additions		1,898,221

Deductions from net assets attributed to:
Benefits paid to participants		463,510
Administrative expenses		29,770

Total deductions		493,280

Increase in net assets available for benefits		1,404,941

Net assets available for benefits

Beginning of year		10,727,709

End of year	$	12,132,650

The accompanying notes are an integral part of these financial statements.

COMMUNITY BANCORP. AND DESIGNATED

SUBSIDIARIES RETIREMENT SAVINGS PLAN

Notes to Financial Statements

December 31, 2007 and 2006

1.	Description of Plan

The following description of the Community Bancorp. and Designated Subsidiaries Retirement Savings Plan (the "Plan") provides only general information. Participants should refer to the Plan agreement for a more complete description of the Plan's provisions.

General

The Plan is a defined contribution plan covering all employees of Community National Bank (the Bank), a subsidiary of Community Bancorp (the Company), who have attained age 21 and have completed one year of service. Under the provisions of the Plan, investment activity is directed by individual participants. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA).

Contributions

Participants may contribute up to the maximum amount allowed by the Internal Revenue Code (IRC). The Bank matches participant contributions up to five percent of annual compensation. The Bank may also make additional discretionary contributions. Contributions are subject to certain limitations.

Administrative Expenses

Employer contributions include $29,770 toward administrative expenses subsequently paid by the Plan.

2.	Summary of Accounting Policies

Use of Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates.

Payment of Benefits

Benefits are recorded when paid.

3.	Investments

The Plan’s investments are recorded at their fair values determined by quoted market prices. Shares of mutual funds are valued at the net asset value of shares held by the Plan at year-end. Participant loans are valued at cost, which approximate fair value.

On August 15, 2007, the Company declared a 5% stock dividend, which represented 16,084 shares to the Plan at $13.60 per share.

Investments that represent 5% or more of the Plan's net assets are as follows:

	2007		2006

Community Bancorp. Common Stock	$	4,744,448	$	4,144,406
Growth Fund of America, Inc.		1,225,339		1,178,900
American Balanced Fund		842,886		746,972
Vanguard Total Stock Market Index Fund		1,818,341		1,715,488
EuroPacific Growth Fund		965,811		771,682

During 2007, the Plan's investments (including gains and losses on investments bought and sold, as well as held during the year) appreciated (depreciated) in value as follows:

Mutual funds	$	(48,329	)
Marketable equity securities		386,690

	$	338,361

4.	Tax Status

The Plan obtained its latest determination letter dated August 23, 2002, in which the Internal Revenue Service stated that the Plan, as then designed, was in compliance with the applicable requirements of the IRC. The Plan has been amended since receiving the determination letter. However, the plan administrator and the plan’s tax counsel believe that the plan is currently designed and being operated in compliance with the applicable requirements of the IRC.

5.	Plan Termination

Although it has not expressed any intention to do so, the Bank has the right under the Plan to discontinue its contributions at any time and to terminate the Plan subject to the provisions set forth in ERISA. In the event of Plan termination, participants would become 100 percent vested in their employer contributions.

6.	Party-In-Interest Transactions

Community Financial Services Group is the Plan’s custodian. Community Financial Services Group is an affiliate of Community National Bank, the plan sponsor, through common ownership.

The Plan allows for participant contributions to be invested in common stock of the parent of the plan sponsor, Community Bancorp. At December 31, 2007 and 2006, the Plan held 341,032 and 306,993 shares, respectively, valued at $4,774,448 and $4,144,406, respectively.

There were no party-in-interest transactions which are prohibited by ERISA Section 406 and for which there is no statutory or administrative exemption.

7.	Risks and Uncertainties

The Plan invests in various investment securities. Investment securities are exposed to various risks such as interest rate, market, and credit risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect participants’ account balances and the amounts reported in the statement of net assets available for benefits.

Schedule

COMMUNITY BANCORP. AND DESIGNATED

SUBSIDIARIES RETIREMENT SAVINGS PLAN

Schedule H, Line 4i – Schedule of Assets (Held at End of Year)

Required for IRS Form 5500

EIN #01-0211807

Plan #002

December 31, 2007

		(c)
	(b)	Description of Investment
	Identity of Issue,	Including Maturity Date,		(e)
	Borrower, Lessor,	Rate of Interest, Collateral,	(d)	Current
(a)	or Similar Party	Par or Maturity Value	Cost (1)	Value


	Cash Management Fund of America	Money Market		$	291,898
	Blackrock Temp Fund Dollar	Money Market			66,294
	Federated Government Obligations Fund	Money Market			12,046
*	Community Bancorp.	Common Stock			4,774,448
	American Balanced Fund	Mutual Fund			842,886
	Growth Fund of America, Inc.	Mutual Fund			1,225,339
	Dodge & Cox Balanced Fund	Mutual Fund			160,902
	T. Rowe Price Equity Income Fund	Mutual Fund			327,365
	Royce Premier Small Cap Fund	Mutual Fund			454,657
	Vanguard Total Stock Market Index Fund	Mutual Fund			1,818,341
	Vanguard Short Term Bond Index Fund	Mutual Fund			125
	SEI Stable Asset Fund	Mutual Fund			468,425
	Euro Pacific Growth Fund	Mutual Fund			965,811
*	Participant Loans	Interest rate range 6.08%-8.42%, various maturities			336,061

				$	11,744,598

*	Indicates a party-in-interest to the Plan.
(1)	Participant directed investments, information not required.

SIGNATURES

The Plan. Pursuant to the requirements of the Securities Exchange Act of 1934, the Plan Administrators have duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.

	COMMUNITY BANCORP. AND DESIGNATED SUBSIDIARIES'
	RETIREMENT SAVINGS PLAN

DATE: June 25, 2008	/s/ Stephen P. Marsh
	Stephen P. Marsh, President & Chief Executive Officer
	Community Bancorp
	(Plan Administrator)