First Colebrook Bancorp, Inc. Releases September 30, 2017 Consolidated Earnings

COLEBROOK, N.H., Oct. 31, 2017 /PRNewswire/ -- First Colebrook Bancorp, Inc. (OTCQX: FCNH), the bank holding company of Granite Bank, today announced its consolidated unaudited financial results for the nine (9) months ended September 30, 2017.

First Colebrook Bancorp, Inc. reported unaudited, consolidated net income for the nine (9) months ended September 30, 2017 of $582,047 compared to $549,643 for the nine (9) months ended September 30, 2016.

These results reflect previously disclosed non-recurring bank holding company events related to the refinancing of First Colebrook Bancorp, Inc.'s subordinated debt and its sale of foreclosed real estate that was previously carried as other real estate owned (OREO) on the financial statements of First Colebrook Bancorp, Inc. The combined expenses of these two items resulted in a charge to second quarter earnings and year-to-date earnings of $245,391, net of taxes, or $0.25 per share.

While these non-recurring events effected bank holding company income, the primary source of income for First Colebrook Bancorp, Inc., is its wholly owned bank subsidiary, Granite Bank. Unaudited net income from Granite Bank, for the  three (3) and nine (9) months ended September 30, 2017 was $516,944 and  $1,066,408, respectively, as compared with $173,266 and  $763,179 for the same periods of  2016.  Results for the nine months ended September 30, 2016, reflected security gains of $248,089, net of taxes, or $0.33 per share.

The Company continued to strategically manage its balance sheet, reducing total assets to $259.9 million at September 30, 2017 from $271.2 million at September 30, 2016. Total cash and cash equivalents at September 30, 2017 decreased to $7.9 million from $11.5 million at September 30, 2016 and interest-bearing time deposits with other banks decreased to $5.5 million from $27.7 million as short terms funds were primarily invested in loan growth initiatives. While reducing overall asset size, the Company grew net loans to $212.4 million at September 30, 2017 from $198.2 million at September 30, 2016, a 7.11% growth rate.

Total deposits decreased to $223.9 million from $228.6 million over the same period in 2016. Federal Home Loan Bank advances decreased to $4.0 million from $10.0 million.

Net interest and dividend income for the nine months ended September 30, 2017 grew by $393,645. Through the third quarter, a provision of $360,000 was made to the Allowance for Loan Losses compared to $150,000 during the same period a year ago.  This increase in loan loss provision was to accommodate 2017 loan growth.  Non-interest income in both 2017 and 2016 reflect the non-recurring items described above including the real estate loss of $286,251 in 2017 and the $409,455 gain on sale of investments in 2016. Other income increased to $1,082,538 from $487,151 a year ago due in large part to the secondary market loans that began booking in the fourth quarter 2016. Due to space availability in other offices, we have consolidated the mortgage operations formerly located at the Bank's Pease location to the Lafayette Road, Portsmouth office and have closed our Pease Loan Production Office.  

Non-interest expense remained essentially flat from September 30, 2016. Included in consolidated non-interest expense for the nine months ended was the non-recurring write-off of refinancing sub debt of $118,751. Despite the addition of a mortgage division and related personnel expense, overall salaries and benefits showed a $102,769 improvement in salaries expense in the first nine months of 2017 compared to the same period in 2016. As noted previously, management continues to closely monitor staffing levels and proactively controls non-interest expenses to achieve competitive efficiencies.

In November 2016, the number of the Company's common shares outstanding increased by 250,000 shares to 999,243 common shares from 749,243 common shares as a result of the Company's completion of its stock offering. Earnings per common share for the nine months ended September 30, 2017 increased to $0.58 compared to $0.48 per share for the same period in 2016.  

Common shareholder equity (total equity less issued preferred stock) increased to $25.1 million at September 30, 2017 from $24.6 million at September 30, 2016. The book value per share of common stock decreased to $25.17 from $27.70 per share a year earlier, as restated.  The tangible book value per share of common stock decreased to $24.65 from $27.00 a year earlier, as restated.  Both the book value and tangible book value increased from $24.85 and $24.33, respectively, at June 30, 2017 to $25.17 and $24.65, respectively, at September 30, 2017.

The unaudited financial balance sheet and income statement can be found on our investor relations website, www.firstcolebrookbancorp.com. The documents can be found in Filings/ Documents/ Quarterly Report. 

First Colebrook Bancorp, Inc. is a single bank holding company formed in 1984 and headquartered in Colebrook, New Hampshire.  It's wholly owned subsidiary, Granite Bank, f/k/a First Colebrook Bank, was established in 1889.  Granite Bank operates four banking offices located in Colebrook, Concord, Amherst and Portsmouth, New Hampshire.                                                                     

This press release may contain forward-looking statements regarding the financial performance, business prospects, growth, and operating strategies of First Colebrook Bancorp, Inc.  For these statements, First Colebrook Bancorp, Inc.  claims the protections of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.  Statements in this press release should be considered in conjunction with other information available about First Colebrook Bancorp, Inc., including the information in the filings we make to regulatory authorities.  Forward-looking statements are based on management's expectations and are subject to a number of risks and uncertainties.  We have tried, wherever possible, to identify such statements by using words such as "anticipate," "estimate," "project," "intend," "plan," "believe," "will," and similar expressions in connection with any discussion of future operating or financial performance.  Although management believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements.  Risks and uncertainties that could cause actual results to differ materially include risk factors relating to the banking industry and the other factors detailed from time to time in First Colebrook Bancorp, Inc.  reports publically issued.  Undue reliance should not be placed on the forward-looking statements, which speak only as of the date of this press release.  First Colebrook Bancorp, Inc. does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions that may be made to update any forward-looking statements to reflect the events or circumstances after the date on which the forward-looking statement is made, or reflect the occurrence of unanticipated events, except to the extent required by law.

For additional information, contact Avis Brosseau, Senior Vice President/Chief Financial Officer at [email protected] or by calling 603-237-7016.

SOURCE First Colebrook Bancorp, Inc.

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