Cortland Bancorp Announces Share Repurchase Program

CORTLAND, Ohio, Dec. 18, 2019 (GLOBE NEWSWIRE) -- Cortland Bancorp (NASDAQ: CLDB), the holding company for The Cortland Savings and Banking Company, today announced that its Board of Directors authorized a share repurchase program (the “Program”).  Under the terms of the Program, the Company is authorized to repurchase up to 200,000 shares of the Company’s common stock, or approximately 4.6% of its outstanding common shares.  The Program is effective for calendar year 2020 and will commence on January 2, 2020. The Program follows the share repurchase program that expires on December 31, 2019. On a year-to-date basis through the close of business on December 16, 2019, the Company repurchased 54,000 shares of its common stock at an average price of $22.48 per share under the Company’s current stock repurchase plan that authorized the repurchase of up to 300,000 shares of the Company's common stock.

Under the Program, the Company may purchase common shares through various means such as open market transactions, including block purchases, and privately negotiated transactions.  The number of shares repurchased and the timing, manner, price and amount of any repurchases will be determined at the Company’s discretion.  Factors include, but are not limited to, share price, trading volume and general market conditions, along with the Company’s general business conditions.  The Program may be suspended or discontinued at any time and does not obligate the Company to acquire any specific number of its common shares.

Under the Program, shares may be repurchased from time to time in the open market or through negotiated transactions at prevailing market rates, or by other means in accordance with federal securities laws. The Board’s action authorizes the Company to execute one or more 10b5-1 trading plans. The 10b5-1 trading plan would allow the Company to repurchase shares of its common stock at times when the Company otherwise might be prevented from doing so under insider trading laws by requiring that an agent selected by the Company repurchase shares of common stock on the Company’s behalf.

"Stock repurchase is an attractive way, in addition to our quarterly cash dividend, to deliver on our long-term goal to enhance shareholder value," said James M. Gasior, President and Chief Executive Officer of the Company and The Cortland Savings and Banking Company.