Canandaigua National Corp. reported a drop of nearly 9 percent in second-quarter net income, with diluted earnings per share down 21 cents.
The parent of Canandaigua National Bank and Trust Co. reported net income of more than $4.1 million attributable to the company, or $2.15 a diluted share, in the second quarter, a filing Friday with the Securities and Exchange Commission states.
That compares with net income of more than $4.5 million, or $2.36 a diluted share, a year ago.
Net income attributable to non-controlling interests and Canandaigua National was just more than $4 million, or $2.18 a basic share, compared with more than $4.4 million, or $2.41 a basic share, in the second quarter 2012.
Quarterly revenues increased $500,000, or by 2 percent, from last year’s second quarter, but were outpaced by an increase of more than 5 percent in operating income to $18.2 million from $17.3 million.
“With general interest rates remaining low, we have seen both asset yields and liability costs fall year-over-year as maturing products are replaced at lower interest rates,” the bank states in the filing.
“Given the length of this very low interest rate environment, we are not likely to find opportunities to significantly lower rates on deposit products, yet falling rates on earning assets will continue negatively impact interest rate spread and margin. Thus, we can anticipate the growth rate of net interest income will be less than the growth rate of average earning assets.”
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