COMMUNITY BANCORP AND DESIGNATED
SUBSIDIARIES’ RETIREMENT SAVINGS PLAN
Notes to Financial Statements
December 31, 2015 and 2014
Note 4. Tax Status
The Plan is part of a prototype plan designated by Future Planning Associates, Inc., the recordkeeper of the Plan. The Internal Revenue Service has determined and informed the recordkeeper by a letter dated March 31, 2014 that the prototype plan is designed in accordance with the applicable sections 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.
Note 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% vested in their employer contributions.
Note 6. Party-In-Interest Transactions
Community Financial Services Group, LLC is the Plan’s custodian. The Bank has a one-third ownership interest in Community Financial Services Group, LLC. Fees paid to the custodian by the Plan for investment management services amounted to $47,448 for the year ended December 31, 2015.
The Plan allows for participant contributions to be invested in common stock of the Company. At December 31, 2015 and 2014, the Plan held 435,740 and 453,551 shares, respectively, valued at $6,209,295 and $6,485,779, 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.
Note 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.
Note 8
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Subsequent Events
For purposes of accrual or disclosure in these financial statements, the Company has evaluated subsequent events through the date of issuance of these financial statements.