Cortland Bancorp (CLDB) has reported a 2.61 percent fall in profit for the quarter ended Sep. 30, 2016. The company has earned $1.20 million, or $0.27 a share in the quarter, compared with $1.23 million, or $0.27 a share for the same period last year.
Revenue during the quarter grew 7.06 percent to $5.99 million from $5.59 million in the previous year period. Net interest income for the quarter rose 5.83 percent over the prior year period to $4.92 million. Non-interest income for the quarter rose 7.07 percent over the last year period to $1.12 million.
Cortland Bancorp has made provision of $0.05 million for loan losses during the quarter, down 50 percent from $0.10 million in the same period last year.
Net interest margin contracted 4 basis points to 3.63 percent in the quarter from 3.67 percent in the last year period. Efficiency ratio for the quarter deteriorated to 72.42 percent from 67.42 percent in the previous year period. A rise in efficiency ratio suggests a fall in profitability.
"We achieved solid financial results in the third quarter, with strong loan and deposit growth, solid contributions from our mortgage operation and improving asset quality.," said James M. Gasior, president and chief executive officer. "Compared to a year ago, deposits grew by $54 million, or 12%, and our loan portfolio increased by $36 million, or 10%. We delivered a 17% year-over-year increase and an 82% increase year-to-date in mortgage banking revenue, driven by new purchases, including new construction, and by strong refinancing activities because of lower long-term interest rates. Asset quality improved with NPAs to total assets at 1.46%."
Assets outpace liabilities growth
Total assets stood at $621.16 million as on Sep. 30, 2016, up 8.93 percent compared with $570.25 million on Sep. 30, 2015. On the other hand, total liabilities stood at $560.83 million as on Sep. 30, 2016, up 9.32 percent from $513.02 million on Sep. 30, 2015.
Loans outpace deposit growth
Net loans stood at $395.76 million as on Sep. 30, 2016, up 11.59 percent compared with $354.66 million on Sep. 30, 2015. Deposits stood at $508.45 million as on Sep. 30, 2016, up 11.86 percent compared with $454.55 million on Sep. 30, 2015.
Investments stood at $164.14 million as on Sep. 30, 2016, up 2.71 percent or $4.33 million from year-ago. Shareholders equity stood at $60.33 million as on Sep. 30, 2016, up 5.41 percent or $3.10 million from year-ago.
Return on average assets moved down 8 basis points to 0.78 percent in the quarter from 0.86 percent in the last year period. At the same time, return on average equity decreased 71 basis points to 7.96 percent in the quarter from 8.67 percent in the last year period.
Meanwhile, nonperforming assets to total assets was 1.46 percent in the quarter, down from 1.63 percent in the last year period.
Tier-1 leverage ratio stood at 9.22 percent for the quarter, down from 9.39 percent for the previous year quarter. Book value per share was $13.65 for the quarter, up 6.47 percent or $0.83 compared to $12.82 for the same period last year.
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