Cortland Bancorp Reports Q1 Net Income of $1.54M

CORTLAND, Ohio – Cortland Bancorp, holding company of Cortland Bank, Friday reported first-quarter net income of $1.54 million, or 35 cents per diluted share.

This compares to fourth-quarter net income of $21,000, or one cent a share, and first-quarter 2017 income of $1 million or 23 cents a share.

Cortland also announced its board declared a cash dividend of 11 cents per share payable June 1 to shareholders of record May 14.

“Following the expense reduction measures throughout 2017, combined with our continued expansion in new markets and continued strong loan growth, we are pleased to report our 2018 first quarter earnings. We are optimistic that the solid start in 2018 will continue through the remainder of the year,” said President and CEO James Gasior in a release. “The market expansion has translated into higher revenues, while the expense reduction has resulted in a substantially improved efficiency ratio.”

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

• Return on average assets, 0.91%, 0.01%, 0.63%.
• Return on average common equity, 10.13%, 0.13%, 6.94%.
• Net interest margin, 3.62%, 3.65%, 3.52%.
• Efficiency, 64.66%, 71.13%, 76.63%.

Net interest income was $5.59 million compared to $5.28 million the previous quarter and $4.94 million the year-ago quarter.

Noninterest income (includes mortgage servicing fees, debit and credit card fees) was $992,000, up from the $964,000 reported for the fourth quarter and $891,000 the year-ago quarter.

Noninterest expense (includes salaries and employee benefits, rents, data processing, marketing and Federal Deposit Insurance Corp. premiums) was $4.32 million compared to $4.60 million the preceding quarter and $4.64 million the quarter ended March 31, 2017.

Average assets were $676.17 million during the quarter compared to $648.88 million the fourth quarter and $632.31 million the year-ago quarter.

Average total loans were $468.89 million during the first quarter compared to $407.68 million the year-ago quarter and $427.45 million the quarter ended Dec. 31, 2017.

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