Cortland Bancorp Reports 3Q Net Income of $2.15M
CORTLAND, Ohio – Cortland Bancorp, holding company of Cortland Bank, Tuesday reported third-quarter net income of $2.15 million, or 49 cents a share.
This compares to second-quarter net income of $1.18 million, or 26 cents a share, and third-quarter 2016 net income of $1.20 million, or 27 cents a share.
The board of directors declared a quarterly cash dividend of eight cents a share payable Dec. 1 to shareholders of record Nov. 13.
In a prepared statement, the president and CEO, James M. Gasior, said, “We delivered strong financial results this quarter, highlighted by year-over-year growth in deposits and loans. Our deposit growth is the best we’ve generated over the past 18 months, reflecting the popularity of our Kasasa checking and savings products.
“Year-over-year loan growth was solid and the pipeline for new credits continues to build. The largest area of growth has been commercial real estate loans, which has grown 8.5% through the end of the third quarter. Residential loans, primarily new construction, accounted for 14% of the portfolio and continue to meaningfully contribute to the bottom line. … Our presence in greater Cleveland is also growing.”
Key performance ratios for the quarters ended Sept. 30, June 30, and Sept. 30, 2016:
- Return on average equity, 14.15%, 7.98%, 7.96%.
- Return on average assets, 1.36%, 0.74%, 0.78%.
- Net interest margin, 3.61%, 3.56%, 3.63%.
- Efficiency ratio, 70.71%, 73.70%, 72.42%.
Net interest income was $5.06 million for the quarter, up from $5.02 million for the quarter ended June 30, and $4.91 million for the year-ago quarter.
Total loans were 4% higher than the year-ago quarter at $411.41 million, up from $409.80 million June 30 and up from $395.80 million the year-ago quarter.
Total deposits decreased slightly to $526.50 million at Sept. 30, compared to $531.00 million, but up 4% from $508.50 million at Sept. 30, 2016.
Total assets fell to $632.00 million at the end of the third quarter, compared to $634.74 million at the end of the second quarter, but up from $621.16 million at the end of the year-ago quarter.
Credit quality remains strong as indicated by the ratio of nonperforming assets (includes nonperforming loans, those 90 days past due) to assets, which fell to 0.98% of total assets at Sept. 30.
Noninterest expense (includes salaries and employee benefits, rents, data processing, marketing and Federal Deposit Insurance Corp. premiums) was $4.67 million compared to $4.67 million the preceding quarter and $4.48 million the year-ago quarter.
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