Cortland Bancorp Reports 2017 Net Income of $4.35M

CORTLAND, Ohio – Cortland Bancorp, holding company of Cortland Bank, Monday reported fourth-quarter net 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. The company also reported a full-year net income of $4.35 million, or 99 cents per diluted share.

Fourth-quarter net income compares to $2.15 million the third quarter, or 49 cents a share and fourth-quarter 2016 income of $1.14 million, or 26 cents per share.

The board of directors declared an increase in its quarterly cash dividend from eight cents per share to 11 cents a share payable March 1 to shareholders of record Feb. 8.

“Despite the one-time tax expense adjustment associated with the deferred tax asset write-down, we delivered solid earnings both for the fourth quarter and the full year of 2017, driven by robust loan growth, an improving net interest margin and strong net interest income generation,” said President and CEO James Gasior in a release. “Additionally, as a result of the lower federal tax rate, we anticipate making additional investments to drive organic growth, which will further boost earnings momentum and ultimately create added value for our customers, employees and shareholders.”

Key financial ratios for the quarters ended Dec. 31, Sept. 30, and Dec. 31, 2016:

• Return on average assets, 0.01%, 1.36%, 0.73%.
• Return on average common equity, 0.13%, 14.15%, 7.69%.
• Net interest margin, 3.65%, 3.61%, 3.58%.
• Efficiency, 71%, 70%, 73%.

Net interest income was $5.28 million for the quarter, up from $5.06 million for the quarter ended Sept. 30, and $4.99 million for the year-ago quarter.

Total loans were higher than the year-ago quarter at $487.49 million, up from $411.41 million Sept. 30 and up from $419.76 million the year-ago quarter.

Total deposits increased to $585.85 million at Dec. 31, compared to $526.48 million, and up from $539.85 million at Dec. 31, 2016.

Total assets were $711.10 million at the end of the fourth quarter, compared to $631.98 million at the end of the third quarter, and up from $655.18 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 $4.60 million compared to $4.66 million the preceding quarter and $4.48 million the year-ago quarter.

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