CORTLAND BANCORP (OTCMKTS:CLDB) Files An 8-K Other EventsItem 8.01Other Events.
Cortland Bancorp (the “Company”) insures the lives of certain of its key officers and directors as a funding vehicle for deferred compensation programs. The value of the insurance contracts is recognized into income as cash value builds in the policies over time. Upon the death of an insured, the insurance proceeds may exceed the cash value recognized at the time of the occurrence. In this circumstance, the Company will recognize a gain for the difference.
In September 2017, the death of a former executive triggered the recognition of a gain of $898,000 based upon the extent that the death proceeds exceeded the cash value of the policy recognized to date. The gain, representing $.20 per share, will be recorded in noninterest income in the third quarter 2017 income statement.
About CORTLAND BANCORP (OTCMKTS:CLDB)
Cortland Bancorp is a bank holding company. The Company’s principal activity is to own, manage and supervise The Cortland Savings and Banking Company (Cortland Banks or the Bank). The Company operates through the commercial banking segment. The Bank is a state chartered bank engaged in commercial and retail banking. The Bank’s services include checking accounts, savings accounts, time deposit accounts, commercial, mortgage and installment loans, night depository, automated teller services, safe deposit boxes and other miscellaneous services. The Bank provides brokerage and investment services through an arrangement with Investment Professionals, Inc. Under this arrangement, financial advisors offer customers a range of investment products and services, such as estate planning, annuities, life insurance, fixed income, and equity securities and equity research and recommendations. The Bank, through Investment Professionals, Inc., also offers asset management services to customers.
