First Colebrook Bancorp, Inc. Releases March 31, 2017 Consolidated Earnings

COLEBROOK, N.H., May 5, 2017 /PRNewswire/ -- First Colebrook Bancorp, Inc.'s (FCNH) consolidated unaudited financial results for the quarter ended March 31, 2017 were released May 5, 2017.  For the quarter ended March 31, 2017, total assets increased to $264.7 million from $261.9 million for the quarter ended March 31, 2016, a 1.07% increase.  Total cash and cash equivalents at March 31, 2017 increased to $14.4 million from $6.4 million at March 31, 2016. Investments in available-for-sale securities decreased to $20.3 million at March 31, 2017 from $37.5 million at March 31, 2016. Net loans at March 31, 2017 increased to $210.3 million, a 6.42% increase over the $197.6 million on March 31, 2016.  Deposits increased by 3.21% to $226.8 million over the same period in 2016. Non-interest bearing deposits increased 15.6% to $50.3 million versus the $43.5 million at March 31, 2016.  Federal Home Loan Bank advances were $6.0 million at March 31, 2017 compared to $10.0 million at March 31, 2016. Subordinated debt of $5.0 million was issued in March 2016 and has a current carrying value of approximately $4.9 million due to the remaining unamortized issuance costs.

Consolidated unaudited net income for the quarter ended March 31, 2017 was $119,363 compared to $145,983 for the quarter ended March 31, 2016, an 18.2% decrease primarily due to the interest cost of the Company's subordinated debt.  For the quarter ended March 31, 2017 interest paid on subordinated debt was $90,036 compared to $0 at March 31, 2016.  The Company is currently negotiating to obtain a less expensive financing alternative to reduce our debt costs.  This is expected to result in lower debt costs in the second half of 2017 and beyond.

Unaudited net income for the Company's wholly-owned subsidiary, Granite Bank, was $194,763 for the quarter ended March 31, 2017 compared to $197,544 for the quarter ended March 31, 2016.  Net interest and dividend income of $2.0 million at March 31, 2017 is slightly lower than the $2.1 million seen a year ago. During the first quarter of 2017, a provision of $135,000 was made to the Allowance for Loan Losses compared to $50,000 during the same period a year ago.  This increase in loan loss provision was to accommodate our 2017 loan growth and increased estimates for future loan losses.  Non-interest income for the quarter ended March 31, 2017 increased to $407,032 from $252,257 primarily due to increased income from our mortgage division of $102,636 over the same period of last year.  Additionally, for the quarter ended March 31, 2017 we experienced favorable increases in loan fees and payroll division revenues over the same period of last year.  Non-interest expense increased to $2.2 million from $2.1 million for March 31, 2017 and March 31, 2016, respectively. The largest increase in non-interest expense was seen in net salaries and benefits, mainly due to the added personnel expenses due to the acquisition of Cousins Home Lending. Both occupancy and other noninterest expenses had favorable improvements from a year ago.

Earnings per common share decreased to $0.12 compared to $0.16 at March 31, 2016. Common shareholder equity (total equity less issued preferred stock) increased to $24.7 million at March 31, 2017 from $20.7 million at March 31, 2016 due to the redemption of a portion of the Company's preferred stock in March 2016. The book value per share of common stock decreased to $24.72 at March 31, 2017 from $27.66 per share a year earlier.  The tangible book value per share of common stock decreased to $24.20 at March 31, 2017 from $27.43 a year earlier, as restated.  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.

The Company intends to provide our financial information electronically as we go forward and will not be providing quarterly printed material.  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 and a loan production office in Portsmouth, New Hampshire.                                                                                         

This press release may contain forward-looking statements regarding the financial performance, business prospects, growth, and operating strategies of Granite Bank.  For these statements, Granite Bank 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 Granite Bank, 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 Granite Bank 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.  Granite Bank 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 abrosseau@granitebank.com or by calling 603-237-7016.

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/first-colebrook-bancorp-inc-releases-march-31-2017-consolidated-earnings-300451716.html

SOURCE First Colebrook Bancorp, Inc.