Notable Trader Recap: First Colebrook Bancorp, Inc. (OTCQX: FCNH)


First Colebrook Bancorp, Inc. (OTCQX: FCNH), the bank holding company of Granite Bank, lately stated its consolidated unaudited financial results for the 12-(12) months ended December 31, 2017.

First Colebrook Bancorp, Inc. reported unaudited, consolidated net income for the 12-(12) months ended December 31, 2017, or $600,893.00 compared to $544,727.00 for the 12-(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.

Throughout the latter part of 2017, extra 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 $160,921.00 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 costs 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 12-(12) months ended December 31, 2017, was $1,466,363.00, as compared with $871,838.00 for the same period of 2016.

The Company continued to manage its balance sheet, which resulted in a reduction in total assets to $252.30M on December 31, 2017, from $263.50M on December 31, 2016. Total cash and cash equivalents at December 31, 2017diminished to $6.70M from $7.10M at December 31, 2016, and interest-bearing time deposits with other banks diminished to $5.30M from $26.00M as short terms funds were primarily invested in loan growth initiatives and the repayment of $1.00M of the subordinated debt.  While reducing overall asset size, the Company grew net loans to $204.60M on December 31, 2017, from $196.00M at December 31, 2016, a 4.380% growth rate.

Total deposits diminished to $217.20M from $224.40M over the same period in 2016. Federal Home Loan Bank advances diminished to $4.00M from $7.00M.

Net interest and dividend income for the 12-(12) months ended December 31, 2017, grew by $739,566.00. Through the fourth quarter, a provision of $360,000.00 was made to the Allowance for Loan Losses compared to $200,000.00 throughout 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 $409,455.00 gain on sale of investments in 2016.

Other income inclined to $1,508,791.00 from $743,604.00 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 cost inclined $144,542.00 from December 31, 2016. Included in consolidated non-interest cost for the 12-months ended December 31, 2017, was the non-recurring write-off of refinancing the sub debt of $118,751.00.

Overall salaries and benefits showed a $350,771.00 improvement for the 12-months ended December 31, 2017compared to the same period in 2016.

Throughout 2017, management closely monitored staffing levels and proactively controlled non-interest costs to achieve competitive efficiencies.

Earnings for each common share for the 12-months ended December 31, 2017, inclined to $0.60 compared to $0.4 for each share for the same period in 2016.

Common shareholder equity inclined to $25.10M on December 31, 2017, from $24.90M on December 31, 2016.

The book value for each share of common stock inclined to $25.10 from $24.670 for each share a year earlier. The tangible book value for each share of common stock inclined to $24.580 from $24.150 a year earlier.


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