Suffolk Bancorp said Thursday that a provision for loan losses and the absence of a one-time gain from the sale of stock booked in the period a year earlier cut its third quarter net income by 4.4 percent.
The Riverhead-based parent of the 26-branch Suffolk County National Bank said net income for the three months ended Sept. 30 was $3.7 million or 32 cents a share this year, down from $3.9 million or 34 cents a share a year earlier.
The company cited as a major factor the absence of a $3.8 million pretax gain recorded in the third quarter of 2013 on the sale of Visa Class B shares. That, in turn, was cited as the major cause of a 61 percent decline in noninterest income, to $2.55 million. Suffolk also cited a $250,000 provision for loan losses in the quarter this year. No provision was booked in the year-earlier quarter.
Net income for the nine months ended Sept. 30 was $11.2 million or 96 cents a share, up from $9.4 million or 81 cents a share a year earlier.
Net interest income, the difference between the revenue generated from a bank's assets and the expenses associated with liabilities, was $15.5 million in this year's third quarter, up 11.3 percent from a year earlier.
President and chief executive Howard C. Bluver said in a statement, "We continue to see accelerating momentum in all our core businesses, and it is gratifying to see the successful expansion strategies we have put in place translate into strong financial results."
He said the bank would open a new branch and loan production office in Long Island City within the next few months.
Suffolk Bancorp's total assets were $1.8 billion at Sept. 30, up 3.9 percent from a year earlier.