Tuesday, November 04, 2014CORTLAND, Ohio -- Cortland Bancorp, holding company of Cortland Banks, Monday reported third-quarter net income of $955,000, or 21 cents per share -- a 55% increase above third-quarter 2013 net income.
Net income for the first nine months is $3.33 million, or 73 cents a share, a 48% increase above the $2.27 million for the first three quarters of 2013, or 50 cents a share.
The board of directors declared a cash dividend of five cents a share payable Nov. 28 to shareholders of record Nov. 12.
In a prepared statement, the president and CEO of Cortland, James M. Gasior, said, “Our third-quarter results demonstrate the progress we are making in building a sustainable franchise in the Ohio markets we serve. We are consistently growing our loan portfolio, increasing core deposits, generating strong margins while maintaining solid asset quality. We believe the strength of our share price over the past few quarters reflects the growing investor confidence in community banking.”
Shares of Cortland Bancorp closed at $15.50 Monday, up 30 cents from Friday’s close. Over the last 52 weeks, shares have ranged from $9.50 to $15.95.
By all measures, Cortland Bancorp enjoyed a successful quarter. Net interest income was $4.38 million compared to $4.40 million the quarter ended June 30 and $4.11 million the third quarter a year ago.
Noninterest income (includes fees and mortgage servicing income) was $776,000 compared to $806,000 the second quarter and $682,000 the third quarter a year ago.
Noninterest expense fell (includes salaries and benefits, rents, marketing, data processing, Federal Deposit Insurance Corp. premiums) to $3.85 million from $3.91 million the preceding quarter and $4.47 million a year ago. A year ago, Cortland was incurring expense related to closing its wholesale mortgage banking business throughout central and southwestern Ohio.
Hence its efficiency ratio fell to 70.89% the third quarter, slightly above the 70.14% recorded for the second quarter but well below the 86.67% for the third quarter a year ago. The closing saw its full-time equivalent workforce stand at 154, down one from June 30 and from 170 a year ago.
Other key performance ratios for the quarters ended Sept. 30, June 30, and Sept. 30, 2013:
Capital ratios
Tier 1 leverage:
Total risk-based capital:
Total loans grew $15.3 million, or 5%, to $330.19 million and total deposits to $430.26 million from $425.07 million at June 30.
Asset quality remains strong. Nonperforming loans (those 90 or more days past due) were 2.26% of total loans, down from 2.41% at June 30 but up from 1.50% Sept. 30, 2013.
“In spite of the increase in nonperforming loans,” the company said, “primarily due to two to two large loans, asset quality remained strong with total nonperforming assets representing only 1.50% of total assets.” That figure was 1.48% at June 30 and 1.07% at Sept. 30, 2013.
Average assets for the quarter were $540.28 million, up from $536.28 million June 30 and $532.91 million a year ago.
SOURCE: Cortland Bancorp.
Copyright 2014 The Business Journal, Youngstown, Ohio.
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