Cortland Bancorp Inc (CLDB) has reported a 5.06 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $1.14 million, or $0.26 a share in the quarter, compared with $1.09 million, or $0.24 a share for the same period last year.
Revenue during the quarter grew 5.39 percent to $5.90 million from $5.60 million in the previous year period. Net interest income for the quarter rose 5.98 percent over the prior year period to $5 million. Non-interest income for the quarter fell 4.74 percent over the last year period to $0.90 million.
Net interest margin contracted 5 basis points to 3.58 percent in the quarter from 3.63 percent in the last year period. Efficiency ratio for the quarter deteriorated to 73.13 percent from 72.28 percent in the previous year period. A rise in efficiency ratio suggests a fall in profitability.
"We ended 2016 on a strong note, delivering solid profits for both the year and the fourth quarter; in fact, 2016 was the most profitable year we've had in well over a decade," said James M. Gasior, president and chief executive officer. "Boosting results were record deposit growth, robust loan growth and continuing improvements in asset quality. Nonperforming assets fell to 1.39% of total assets. We also recognized substantial recoveries throughout the year as well as increased fee income." "In addition, revenue from our mortgage banking operations significantly contributed to the bottom line in 2016. Mortgage origination increased 56%, to $61 million, generating gains on sale of mortgages of $1.2 million up 59% year-over-year. The Fairlawn financial services center expanded its origination team and is now well positioned to be one of the market leaders, offering premiere mortgage products and services," added Gasior.
Return on average assets moved down 2 basis points to 0.73 percent in the quarter from 0.75 percent in the last year period. At the same time, return on average equity increased 8 basis points to 7.69 percent in the quarter from 7.61 percent in the last year period.
Meanwhile, nonperforming assets to total assets was 1.39 percent in the quarter, down from 2.02 percent in the last year period.
Tier-1 leverage ratio stood at 10.46 percent for the quarter, down from 10.62 percent for the previous year quarter. Book value per share was $13.05 for the quarter, up 1.40 percent or $0.18 compared to $12.87 for the same period last year.
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