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Cortland Bancorp Announces Financial Results for the Second Quarter 2020

Written by Customer Service on . Posted in Public Companies.

Net income for the quarter is 45% higher than in the 2019 second quarter, despite COVID-19 challenges
Positive performance driven largely by increased mortgage loan originations and expense control measuresPre-Tax, Pre-Provision income is 60% higher than in the 2019 second quarterBank’s participation in government’s PPP relief program aids 419 local business ownersBoard continues to build Loan Loss Reserve to handle uncertainty of the current pandemic but authorizes $0.14 per share dividendCORTLAND, Ohio, July 30, 2020 (GLOBE NEWSWIRE) — Cortland Bancorp (NASDAQ: CLDB) announced its second quarter 2020 financial results.Net income for the three months ending June 30, 2020 was $1.9 million, or $0.47 per share, versus
$1.3 million, or $0.30 per share, for the second quarter of 2019 and $1.3 million or $0.32 per share for the first quarter of 2020.The return on average assets ratio was 1.00% for the Company for this second quarter, while the return on average equity ratio was 10.45%.For both the six months ended June 30, 2020 and 2019, earnings per share were $0.79 per share, with net income of $3.3 million and $3.4 million, respectively. “Considering the substantial reduction in interest rates nationally and the ongoing provisioning for COVID-related conditions, we are pleased with the achieved performance level through the first six months of the year,” said James Gasior, president and CEO.Cortland Bancorp remained well capitalized with total risk-based capital to risk-weighted assets of 14.41% and tangible equity to tangible assets of 9.71%.Year-over-year second quarter performance improved despite the increase in the provision for credit losses directly attributable to the current COVID-19 pandemic. Specifically, increases in the allowance for credit losses were recognized in the qualitative factor allocations for specific concentrations of credit in various loan portfolio segments as a result of current economic conditions.“Although the ultimate impact to businesses is unknown at the current time, a continued increase in credit provisioning is warranted given the economic disruption and uncertainty associated with the COVID-19 pandemic,” said Gasior. Mortgage loan sales accounted for much of the revenue growth, while on the expense side, a nearly 20% reduction in personnel costs also contributed to improved performance.Gasior added, “In this pandemic environment, in lieu of layoffs or furloughs, we were able to realize staff reductions through retirements and by not filling vacated positions, thus realizing substantial savings in salaries and benefits. Our mortgage unit is approaching record production for the year, improving gains on sales by more than $500,000 for the quarter.”Second Quarter 2020 Highlights (at or for the period ended June 30, 2020)

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