Cortland Bancorp Reports 3Q Net Income of $1.20M

CORTLAND, Ohio – Cortland Bancorp, holding company of Cortland Bank, Tuesday reported third-quarter net income of $1.20 million, or 27 cents a share.

This compares to second-quarter net income of $1.17 million, or 27 cents a share, and third-quarter 2015 net income of $1.23 million, or 27 cents a share.

The board of directors declared a quarterly cash dividend of seven cents a share payable Dec. 1 to shareholders of record Nov. 10.

For the first nine months, Cortland reported $3.73 million in net income compared to the first three quarters of 2015 when it enjoyed income of $3.29 million, a 13% gain, the company noted. Earnings per share for the comparable periods were 85 cents and 73 cents, a 16% increase.

In a prepared statement, the president and CEO, James M. Gasior, said, “We achieved solid financial results in the third quarter, with strong loan and deposit growth, solid contributions from our mortgage operation and improving asset quality.”

The company said revenues from mortgage banking “increased 17% year-over-year, and grew 82% year-to-date.” The purchases of houses and the construction of new houses constituted 74% of mortgage lending, the refinancing of existing mortgages the other 26%, the bank said.

Key performance ratios for the quarters ended Sept. 30, June 30, and Sept. 30, 2015:

  • Return on average equity, 7.96%, 7.97%, 8.67%.
  • Return on average assets, 0.78%, 0.78%, 0.86%.
  • Net interest margin, 3.63%, 3.77%, 3.67%.
  • Efficiency ratio, 72.42%, 73.84%, 67.42%.

Net interest income was $4.92 million for the quarter, 2% lower than the $5.02 million reported the second quarter but 7% above the $4.55 million reported the year-ago quarter. Year-to-date, net interest income is 6% higher than the first three quarters of last year.

Total loans were 10% higher than the year-ago quarter, $395.76 million to $$359.83 million, and 3% higher than the $384.06 million reported in the second quarter.

Total deposits also saw growth, $508.45 million at Sept. 30, up 12% from $454.55 million at Sept. 30, 2015, and 4% higher than the $488.68 million reported for June 30.

Total assets also rose, $621.16 million at the end of the third quarter, up from $606.36 million at the end of the second quarter and $570.25 million at the end of the year-ago quarter.

The ratio of nonperforming assets (includes nonperforming loans, those 90 days past due) fell to 1.46%, to $9.1 million, down from 1.54% or the $9.3 million reported for second quarter and from 1.63%, or $9.3 million, the year-ago quarter.

Nonperforming loans were $8.3 million at Sept. 30, Cortland said, compared to $8.5 million at June 30 and $8.4 million at Sept. 30, 2015.

Noninterest expense (includes salaries and employee benefits, rents, data processing, marketing and Federal Deposit Insurance Corp. premiums) was $4.80 million compared to $4.73 million the preceding quarter and $$3.99 million the year-ago quarter. The bank added the equivalent of six full-time employees during the quarter, bringing the workforce to 168. The full-time equivalence a year ago was 151.

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