Cortland Bancorp Reports Drop in Net Income
CORTLAND, Ohio – Cortland Bancorp reports net income of $952,000, or 21 cents per share, for the second quarter of 2012, versus $1.3 million for the second quarter of 2011, or 29 cents per share. This represents a $74,000 improvement in quarterly earnings from normal operations compared to the second quarter of 2011, the company said.
Net income for the six months ended June 30 was $2.11 million versus $2.19 million for the same period in 2011. On a comparable “earnings from normal operations” basis -- excluding net securities transactions -- 2012 net earnings from operations were $2.2 million versus $1.8 million in 2011.
“Our operating results reflect our commitment to growing loans and deposits in the markets in which we operate and in producing consistent positive earnings,” said the president and CEO of Cortland Bancorp, James Gasior, in a prepared statement. “On the heels of the financial crisis, we have now posted positive earnings in each of the last 11 quarters dating back to the fourth quarter of 2009.”
The company listed highlights of its operations are as follows:
- Spurred by the commercial loan growth, net interest income increased by $65,000 in 2012 versus 2011 as the company continues to optimally manage its balance sheet in this historically low interest rate environment.
- The company continues to excel in managing risks in the loan portfolio as asset quality measures are among the best for banks with similar asset totals. Net loan charge-offs were .19% of average loans in 2012 and .25% for 2011. The allowance for loan loss (ALLL) to total loans ratio was 1.17% at June 30, versus 1.10% a year ago. The company’s allowance for loan losses covers 64% of nonaccrual loans at June 30.
- Mortgage banking gains reached $266,000 in the quarter versus $20,000 in the same quarter of 2011. These gains, which are reported as non-interest income, are in line with results expected from the wholesale mortgage unit, which was formed late last year specifically as a result of strategic initiatives aimed at improving overall profitability.
- The North Bloomfield office was closed effective May 5. The branch closure, announced earlier in the year, was completed in line with strategic initiatives aimed at improving overall branch efficiencies and profitability,
- Total shareholders’ equity increased from $45.7 million on Dec. 31 to $48.1 million at June 30, an increase of $2.4 million. The company’s total risk-based capital is $16.4 million in excess of the 10% well capitalized threshold.
The improvement in earnings from normal operations is highlighted by an 18% year-over-year growth rate in the commercial loan portfolio and a composite loan portfolio growth rate of 10%, the company noted.
FULL RESULTS: Go to Cortland Banks’ website
Published by The Business Journal, Youngstown, Ohio.