Reprinted with permission of the Rochester Business Journal.
Volume 24, Number 52
mArch 20, 2009
Bank’s net income rises; new branches planned
grows despite turmoil
in the sector, economy
By THOMAS ADAMS
Canandaigua National Bank and Trust
Co. has sidestepped the ongoing financial
meltdown by sticking to its principles,
President and CEO George Hamlin IV
said this week.
The bank reported a 12.8 percent in-
crease in earnings per share in 2008, to
$28.94 from $25.65 in 2007, and an 11.8
increase in net income, to $13.9 million
from $12.5 million in 2007.
“The reason we are where we are is we
don’t have anything that relies on market
value, and our investment portfolio is for
liquidity and not for profit,” Hamlin said.
“We are not going back to basics, because
we never left.”
The 2008 performance was driven by a
15.9 percent increase in net interest mar-
gin, to $48.5 million. That increase was
led by an 18.2 percent increase in loans,
to $1.1 billion from $911 million in 2007.
It came in spite of a 60 percent increase in
money set aside for bad loans, from $2.4
million in 2007 to $3.8 million in 2008.
However, non-performing loans are less
than 10 percent of the bank’s primary capi-
tal, as they were two years ago, and past-due
and non-accrual loans are under 2 percent,
as they were three years ago, Hamlin said.
The loan loss provision was necessary
because of the significant growth in the
bank’s loan portfolio, Hamlin said. In
particular, the bank’s indirect automobile
loans tripled the 2007 volume.
“That $1 billion involves 25,000 con-
tracts that pay us once a month,” he said.
“It comes from folks who get up each
morning, go to work and get paid. Then
we get paid each month.”
Total deposits were nearly $1.23 billion
as of Dec. 31, up 15.9 percent; total assets
were $1.42 billion, up 13 percent.
“They’ve avoided all the financial she-
nanigans that went on on Wall Street,” said
Joseph Ryan, a bank analyst at Brighton
Securities Corp. and