Cortland Bancorp Reports 3Q Net Income of $1.97M

CORTLAND, Ohio – Cortland Bancorp, holding company of Cortland Bank, Wednesday reported third-quarter net income of $1.97 million, or 46 cents a share.

This compares to second-quarter net income of $3.30 million, or 75 cents a share, and third-quarter 2017 net income of $2.14 million, or 49 cents a share.

The board of directors declared a quarterly cash dividend of 11 cents a share payable Dec. 3 to shareholders of record Nov. 12.

In a prepared statement, the president and CEO, James M. Gasior, said, “Our focus on expansion in new markets and continued strong loan growth, 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 a life insurance contracts in each of the last two years, our third quarter earnings for the current year are up 58% from the same period last year and for the full nine months, earnings are up 53% over 2017.”

Key performance ratios for the quarters ended Sept. 30, June 30, and Sept. 30, 2017:

• Return on average equity, 12.62%, 21.77%, 14.15%.
• Return on average assets, 1.17%, 2.00%, 1.36%.
• Net interest margin, 3.73%, 3.74%, 3.61%.
• Efficiency ratio, 64.26%, 66.81%, 70.71%.

Net interest income was $5.81 million for the quarter, up from $5.70 million for the quarter ended June 30, and $5.06 million for the year-ago quarter.

Total loans were at $481.91 million, up from $466.44 million June 30 and up from $411.41 million the year-ago quarter.

Total deposits increased to $561.20 million at Sept. 30, compared to $557.82 million the second quarter and $526.50 million at Sept. 30, 2017.

Total assets rose to $681.30 million at the end of the third quarter, compared to $662.70 million at the end of the second quarter, and $631.98 million at the end of the year-ago quarter.

Noninterest expense (includes salaries and employee benefits, rents, data processing, marketing and Federal Deposit Insurance Corp. premiums) was $4.52 million compared to $4.58 million the preceding quarter and $4.66 million the year-ago quarter.

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