Cortland Bancorp Reinstates Cash Dividend of 3¢
CORTLAND, Ohio – The directors of Cortland Bancorp, parent of Cortland Banks, have approved the reinstatement of a cash dividend of 3 cents per share payable Nov. 26 to shareholders of record Nov. 5, the company announced Thursday.
Said the president and CEO, James Gasior, in a prepared statement, “The payment of a dividend reflects our growing confidence in the company, supported by strong core earnings, increased loan production and restored capital levels well above regulatory requirements. We are pleased that the company’s financial strength and improved earnings power positions us to return profits to our shareholders while at the same time growing our business.”
After the Great Recession began, Cortland Bancorp suspended its cash dividend to shareholders in the first quarter of 2009 as it saw the value of its investments in securities plunge and regulators directed the company to mark down those securities to their market value and reflect the loss in its financial statements.
In connection with declaring the dividend, the company informed the Securities and Exchange Commission on its Form 8-K that Cortland Bancorp has been considering changes to its dividend reinvestment plan and has suspended the plan as it considers those changes.
Said Chairman Timothy K. Woofter, should the board amend the plan and see it resume, the company will mail the relevant documents to eligible shareholders. “We hope the plan will once again be available for the next dividend paid by the company,” he said, “although no assurance can be provided that another dividend will be paid or that the plan will be resumed.”
Shares of Cortland rose a nickel yesterday to close at $9.65 on a volume of 868 shares.
Published by The Business Journal, Youngstown, Ohio.