Condensed Financial Information - Parent Company

12 Months Ended

Dec. 31, 2015

Condensed Financial Information Of Parent Company Only Disclosure [Abstract]

Condensed Financial Information - Parent Company

NOTE 15 - CONDENSED FINANCIAL INFORMATION – PARENT COMPANY

Below is condensed financial information of Cortland Bancorp (parent company only). In this information, the Parent’s investment in subsidiaries is stated at cost, including equity in the undistributed earnings of the subsidiaries, adjusted for any unrealized gains or losses on available-for-sale securities.

BALANCE SHEETS

(Amounts in thousands)

	December 31,
	2015			2014
ASSETS
Cash	$	122		$	96
Investment in bank subsidiary		52,848			52,082
Investment in non-bank subsidiary		—			15
Subordinated note from subsidiary bank		6,000			6,000
Other assets		3,833			3,650
Total assets	$	62,803		$	61,843
LIABILITIES
Other liabilities	$	964		$	836
Subordinated debt (Note 7)		5,155			5,155
Total liabilities		6,119			5,991
SHAREHOLDERS’ EQUITY
Common stock		23,641			23,641
Additional paid-in capital		20,833			20,833
Retained earnings		17,851			14,555
Accumulated other comprehensive (loss) income		(238	)		376
Treasury stock		(5,403	)		(3,553	)
Total shareholders’ equity		56,684			55,852
Total liabilities & shareholders’ equity	$	62,803		$	61,843

STATEMENTS OF COMPREHENSIVE INCOME

(Amounts in thousands)

	Years ended December 31,
	2015			2014			2013
Dividends from bank subsidiary	$	3,310		$	1,013		$	544
Interest and dividend income		97			93			96
Other income		63			62			99
Interest on subordinated debt		(91	)		(88	)		(90	)
Other expenses		(513	)		(311	)		(380	)
Income before income tax and equity in undistributed earnings of    subsidiaries		2,866			769			269
Income tax benefit		133			95			104
Equity in undistributed earnings of subsidiaries		1,379			3,005			1,411
Net income	$	4,378		$	3,869		$	1,784
Comprehensive income	$	3,764		$	7,133		$	603

STATEMENTS OF CASH FLOWS

(Amounts in thousands)

	Years ended December 31,
	2015			2014			2013
Cash flow from operating activities
Net income	$	4,378		$	3,869		$	1,784
Adjustments to reconcile net income to net cash deficit from operating    activities:
Equity in undistributed net income of subsidiaries		(1,379	)		(3,005	)		(1,411	)
Deferred tax benefit		(6	)		—			(6	)
Change in other assets and liabilities		(35	)		(156	)		113
Net cash flow from operating activities		2,958			708			480
Cash deficit from financing activities
Dividends paid		(1,082	)		(816	)		(544	)
Treasury shares reissued		—			—			24
Treasury shares purchased		(1,850	)		—			—
Net cash deficit from financing activities		(2,932	)		(816	)		(520	)
Net change in cash		26			(108	)		(40	)
Cash
Beginning of year		96			204			244
End of year	$	122		$	96		$	204