Cortland Bancorp Reports Net Income of $1.3 Million
CORTLAND, Ohio – Cortland Bancorp, holding company of Cortland Banks, Wednesday reported third-quarter net income of $1.27 million, or 28 cents per share, and net income for the first nine months of $3.38 million, or 75 cents per share.
This compares to net income for the same quarter a year ago of $1.05 million, or 24 cents a share and for the first nine months of 2011 of $3.24 million, or 72 cents a share.
Net income for the second quarter was $952,000, or 21 cents a share.
“Spurred by commercial loan growth, net interest income increased by $7,000 in 2012 versus 2011 as the company continues to optimally manage its balance sheet in this historically low interest rate environment,” the earnings release said.
Other highlights the company cited:
- Its management of risk in the loan portfolio with measures of asset quality are “among the best for banks with similar asset totals.” (Cortland has assets of $554.51 million at Sept. 30, up by more than 10% in a year.) Net loan charge-offs of $21,000 for the quarter were only 0.03% of all loans and the $341,000 year-to-date was only 0.16% of all loans.
- Mortgage banking gains reached $1 million in the three months ended Sept. 30 versus $25,000 the same quarter a year ago. The gains, reported as noninterest income, exceeded the projections of the wholesale mortgage-banking unit, CSB Mortgage Co., formed late last year. CSB has partnerships with mortgage brokers in contiguous states who originate the mortgages that CSB sells to investors in the secondary market.
- Shareholders’ equity rose to $50.56 million at Sept. 30 from $44.27 million a year earlier and $45.7 million at Dec. 31. “The company continues to remain well capitalized under all regulatory measures,” said James Gasior, president and CEO. Its total risk-based capital to risk-weighted measures stood at 14.64% at Sept. 30, Tier 1 capital to risk-weighted assets, 13.72%, and Tier 1 capital to average assets, 10.46%.
Said Gasior in a prepared statement, “Our operating results reflect our commitment to growing loans and deposits in the markets we serve [Trumbull, Mahoning, Portage, Geauga and Ashtabula counties] in which we operate and in producing consistent earnings. On the heels of the financial crisis, we have now posted positive earnings in each of the 12 quarters dating back to the fourth quarter of 2009.”
Net interest income was $4.124 million for the quarter, nearly unchanged from the $4.117 million posted a year ago. For the first nine months, Cortland enjoyed net interest income of $12.57 million versus the same period a year ago of $12.32 million.
Total loans at Sept. 30 stood at $293.19 million compared to $263.52 million a year earlier.
Noninterest expense (such as salaries, benefits, rents, Federal Deposit Insurance Corp. premiums) was $3.85 million for the quarter compared to $3.30 million a year ago. For the nine months, the figure was $11.41 million compared to $9.97 million for the first three quarters of 2011.
Key financial ratios for the quarters ended Sept. 30, June 30 and Sept. 30, 2011:
- Return on average equity, 10.32%, 7.89%, 9.23%.
- Return on average assets, 0.96%, 0.74%, 0.85%.
- Net interest margin, 3.51%, 3.59%, 3.72%.
- Efficiency ratio, 66.22%, 71.04%, 67.23%.
Published by The Business Journal, Youngstown, Ohio.