Cortland Bancorp Hits Record Income of $8.83M in 2018

CORTLAND, Ohio – Cortland Bancorp, holding company of Cortland Bank, Wednesday reported fourth-quarter net income of $2.02 million, or 48 cents per share. The company also reported a record full-year net income of $8.83 million, or $2.04 per diluted share, double the earnings when compared to the $4.35 million, or 99 cents per diluted share reported for 2017.

Fourth-quarter net income compares to $1.97 million the third quarter, or 46 cents a share and fourth-quarter 2017 income of $21,000, or one cent per share, after recording a tax reform write-down in its deferred tax asset value of $1.2 million, or 28 cents per share.

“Our focus on expansion in new markets has allowed us to build our deposit base and continue growing our loan portfolio,” said President and CEO James Gasior in a release.  “This has translated into balance sheet growth, which combined with our operating efficiency and expense reduction measures are producing the desired results.  The market expansion has translated into higher revenues, while the expense reduction has resulted in a substantially improved efficiency ratio.”  Adjusted for nonrecurring income items, including gains on life insurance contracts in each of the last two years, earnings for the current year are up 55% over 2017.

The board of directors declared a quarterly cash dividend of 11 cents a share payable March 1 to shareholders of record Feb. 11. In addition, a special dividend of five cents per share was declared, also payable March 1.

“With the intent of increasing shareholder value, the higher dividend level combined with opportunistic share repurchases allow the Company to provide increased returns to shareholders,” Gasior added.

Key financial ratios for the quarters ended Dec. 31, Sept. 30, and Dec. 31, 2017:

• Return on average assets, 1.19%, 1.17%, 0.01%.
• Return on average common equity, 13.02%, 12.62%, 0.13%.
• Net interest margin, 3.95%, 3.73%, 3.65%.
• Efficiency, 63%, 64%, 71%.

Net interest income was $6.25 million for the quarter, up from $5.81 million for the quarter ended Sept. 30, and $5.28 million for the year-ago quarter.

Total loans were higher than the year-ago quarter at $514.39 million, up from $481.91 million Sept. 30 and up from $487.49 million the year-ago quarter.

Total deposits increased to $604.41 million at Dec. 31, compared to $561.20 million, and up from $585.85 million at Dec. 31, 2017.

Total assets were $714.66 million at the end of the fourth quarter, compared to $681.30 million at the end of the third quarter, and up from $711.10 million at the end of the year-ago quarter.

Noninterest expense, which includes salaries and employee benefits, rents, data processing, marketing and Federal Deposit Insurance Corp. premiums, was $4.64 million compared to $4.52 million the preceding quarter and $4.60 million the year-ago quarter.

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