Cortland Bank Full-Year Earnings Rise to $8.3M
CORTLAND, Ohio – Cortland Bancorp, the parent company of Cortland Bank, reports full-year net income of $8.3 million for 2020, up $1 million from the year before.
Earnings per share were $1.97 in 2020, compared to $1.68 in 2019.
In the fourth quarter, net income was $2.8 million, or 67 cents per share, up from $1.9 million, or 44 cents per share, in the same quarter of 2019.
“Considering the substantial reduction in interest rates nationally and the ongoing provisioning for COVID-related conditions, we are pleased with the achieved performance level,” said James Gasior, president and CEO, in a statement.
Mortgage sales accounted for much of Cortland Bank’s revenue growth, as fourth quarter sales rose to $33.8 million from the $23.3 million reported in the final quarter of 2019. Mortgage revenue accounted for 12% of Cortland Bank’s revenues in the quarter, compared to 4% in the fourth quarter of 2019.
Other highlights cited in the bank’s earnings report include:
- Total assets of $821 million as of Dec. 31, compared to $812 million at Sept. 30 and $737 million at Dec. 31, 2019.
- Total loans increased 7%, with Paycheck Protection Program loans accounting “for substantially all loan growth.”
- Total deposits increased 13% to $701 million for the fourth quarter.
“Stimulus payments provided by the government, as well as the PPP funds for our borrowers, have significantly contributed to deposit growth,” Gasior said. “In addition, in this stay-at-home environment, depositors have increased their rates of saving.”
Key performance ratios for the quarters ended Dec. 31, Sept. 30 and Dec. 31, 2019 are:
- Net interest margin: 3.4%, 3.17%, 3.74%.
- Return on average equity: 14.22%, 11.22%, 10.23%.
- Return on average assets: 1.4%, 1.07%, 1.07%.
- Efficiency ratio: 60.79%, 59.72%, 62.5%.
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