First Colebrook Bancorp, Inc. Releases December 31, 2017 Consolidated Earnings
OREANDA-NEWS. First Colebrook Bancorp, Inc. (OTCQX: FCNH), the bank holding company of Granite Bank, today announced its consolidated unaudited financial results for the twelve (12) months ended December 31, 2017.
First Colebrook Bancorp, Inc. reported unaudited, consolidated net income for the twelve (12) months ended December 31, 2017 of $600,893 compared to $544,727 for the twelve (12) months ended December 31, 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.
During the latter part of 2017, additional non-recurring bank and holding company events took place that had an impact on the year end December 31, 2017 net income results. Earnings for 2017 were impacted by a one-time charge to earnings of $160,921 for the revaluation of the Company's deferred tax assets as a result of the Tax Cuts and Jobs Act being signed into law on December 22, 2017. Also, due to the pending merger with Bangor Bancorp, MHC; 2017's non-interest expenses include higher legal and financial advisor fees when compared to 2016.
While the majority of these non-recurring events affected 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 twelve (12) months ended December 31, 2017 was $1,466,363, as compared with $871,838 for the same period of 2016.
The Company continued to manage its balance sheet, which resulted in a reduction in total assets to $252.3 million at December 31, 2017 from $263.5 million at December 31, 2016. Total cash and cash equivalents at December 31, 2017 decreased to $6.7 million from $7.1 million at December 31, 2016 and interest-bearing time deposits with other banks decreased to $5.3 million from $26.0 million as short terms funds were primarily invested in loan growth initiatives and the repayment of $1.0 million of the subordinated debt. While reducing overall asset size, the Company grew net loans to $204.6 million at December 31, 2017 from $196.0 million at December 31, 2016, a 4.38% growth rate.
Total deposits decreased to $217.2 million from $224.4 million over the same period in 2016. Federal Home Loan Bank advances decreased to $4.0 million from $7.0 million.
Net interest and dividend income for the twelve (12) months ended December 31, 2017 grew by $739,566. Through the fourth quarter, a provision of $360,000 was made to the Allowance for Loan Losses compared to $200,000 during the same period a year ago. This increase in loan loss provision was to accommodate 2017 loan growth. Total non-interest income in both 2017 and 2016 reflects the non-recurring items described above as well as a $409,455 gain on sale of investments in 2016. Other income increased to $1,508,791 from $743,604 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 residential mortgage operations formerly located at the Bank's Pease location to the Lafayette Road, Portsmouth office and have closed our Pease Limited Purpose Office.
Total non-interest expense increased $144,542 from December 31, 2016. Included in consolidated non-interest expense for the twelve months ended December 31, 2017 was the non-recurring write-off of refinancing the sub debt of $118,751. Overall salaries and benefits showed a $350,771 improvement for the twelve months ended December 31, 2017 compared to the same period in 2016. During 2017, management closely monitored staffing levels and proactively controlled non-interest expenses to achieve competitive efficiencies.
Earnings per common share for the twelve months ended December 31, 2017 increased to $0.60 compared to $0.40 per share for the same period in 2016.
Common shareholder equity increased to $25.1 million at December 31, 2017 from $24.9 million at December 31, 2016. The book value per share of common stock increased to $25.10 from $24.67 per share a year earlier. The tangible book value per share of common stock increased to $24.58 from $24.15 a year earlier.