CORTLAND - Community bank holding company Cortland Bancorp. reported increased earnings in the third quarter of 2012 that contributed to the reinstatement of 3 cents per share cash dividends.
The company's net income for the third quarter ending Sept. 30 was reported at $1.3 million, or $.28 per share, compared to $1.1 million for the third quarter of 2011, or $.24 per share.
Bank officials said net interest income increased by $7,000 in 2012 versus 2011 was spurred by the commercial loan growth. Mortgage banking gains reached $1 million in the quarter versus $25,000 in the same quarter of 2011. The gains, which are reported as non-interest income, are exceeding expectations from the wholesale mortgage unit which was formed late last year specifically as a result of strategic initiatives aimed at improving overall profitability, the company announced.
The company's total shareholders' equity also increased from $45.7 million Dec. 31 to $50.6 million Sept. 30, an increase of $4.9 million.
The company continues to remain well capitalized under all regulatory measures. The company's total risk-based capital is $18.6 million in excess of the 10 percent well capitalized threshold.
"On the heels of the financial crisis, we have now posted positive earnings in each of the last 12 quarters dating back to the fourth quarter of 2009," said James Gasior, president and chief executive officer. "In the midst of earnings pressures brought on by the economic downturn, interest rate compression and investment impairment issues, the company devoted substantial attention to profit improvement measures, balance sheet restructuring and a reorganization of its management structure.''
Cortland Bancorp is a holding company headquartered in Cortland.