CORTLAND - A 16 percent growth rate in commercial loans, along with overall loan growth of 8 percent, helped power a 33 percent gain in Cortland Bancorp's first-quarter earnings over last year, the company said Monday.
The parent of Cortland Banks said it earned $1.16 million, or 26 cents per share, in the January-March period versus $870,000, or 19 cents per share, in the same quarter of 2011.
Bank shares gained 25 cents Monday to close at $8.50.
Net interest income, which provides the company's core earnings, increased 4.3 percent to $4.24 million in the quarter from $4.07 million in 2011.
James Gasior, president and chief executive officer, noted, "Our operating results reflect our commitment to growing loans and deposits and in producing consistent positive earnings. On the heels of the financial crisis, we have now posted positive earnings in each of the last 10 quarters dating back to the fourth quarter of 2009."
The company said, to date, it has not experienced notable deterioration in credit quality despite less than favorable economic conditions over the past several years.
Nonaccrual loans were $2.6 million at March 31 versus $3.6 million at Dec. 31. Included in these totals is a single loan of $1 million fully secured by collateral for which no loss is expected, the report said.
Total loans at March 31 were $277.4 million compared to $257.6 million a year ago. Total assets were $508.4 million versus $489.6 million.