Cortland Bank parent company suspends dividends

CORTLAND — Cortland Bancorp said it is suspending its cash dividends after reporting lower earnings.

The cash dividend, which most recently was 22 cents a share, has been stopped as of the first quarter of this year and will be replaced by a stock dividend of 1 percent.

K. Ray Mahan, company chairman, called the move precautionary and said it would preserve capital.

“This is an exceptionally unusual measure taken by our board in recognition of the highly turbulent and uncertain circumstances surrounding the economy,” he said.

The company, which is the holding company for Cortland Banks, is well capitalized but the move helps to ensure it remains on solid footing “even if general economic and financial conditions should continue to deteriorate,” he said.

For more information, see Friday’s Vindicator or www.vindy.com.