Cortland Bancorp profits grew 28 percent in 3Q

Staff report

CORTLAND

Cortland Bancorp, the holding company for Cortland Savings and Banking Co., reported Tuesday that net income grew 28 percent year over year to $1.2 million, or $0.27 per share, for the third quarter of 2015.

This is compared with $955,000, or $0.21 per share, for the third quarter of 2014, and improved 34 percent from $916,000, or $0.21 per share, for the second quarter of 2015. For the first nine months ending Sept. 30, 2015, net income was unchanged at $3.3 million, or $0.73 per share, compared with the first nine months of 2014.

“We continue to achieve important strategic and operational goals with another solid quarter of profitability,” said James M. Gasior, president and chief executive officer of Cortland Bancorp, in a statement.

Gasior noted the bank’s favorable net interest margin fueled by loan growth, specifically in commercial real-estate loans, which resulted in composite portfolio growth of 9 percent year over year.

Cortland recently opened a new branch in Canfield Township and now has 13 full-service community banking offices in Trumbull, Mahoning, Portage and Ashtabula counties, and two mortgage-loan production offices in Canfield and Fairlawn.

Reflecting strong loan growth, third-quarter net interest income increased 6 percent to $4.6 million, compared with $4.4 million for the third quarter a year ago.

Total noninterest income, excluding investment gains and losses, increased 29 percent to $999,000 for the third quarter of 2015, compared with $776,000 for the third quarter of 2014.

Noninterest expense for the third quarter of 2015 increased 4 percent to $4 million, compared with $3.9 million for the third quarter of 2014.

Cortland’s board of directors declared a quarterly cash dividend of $0.06 per share. The dividend will be payable Dec. 1 to shareholders of record as of the close of business Nov. 10.