First Colebrook Bancorp, Inc. Releases September 30, 2016 Consolidated Earnings

COLEBROOK, N.H., Oct. 27, 2016 /PRNewswire/ --  First Colebrook Bancorp, Inc.'s (FCNH) consolidated unaudited financial results for the nine months ended September 30, 2016 were released October 27, 2016. For the nine months ended September 30, 2016, total assets increased 2.2% to $271.2 million from $265.4 million for the quarter ended September 30, 2015. Funds from the sale of investments remain in interest bearing deposit accounts at other banks as we expect to reinvest the funds in loan growth initiatives over the next nine months. Net loans at September 30, 2016 increased to $198.2 million, a 1.5% increase over the $195.3 million on September 30, 2015. Deposits increased by 1.04% to $228.6 million over the same period in 2015.

Consolidated unaudited net income for the nine months ended September 30, 2016 was $549,643 compared to $820,422 for the September 2015 ended quarter. Interest income in the first nine months was slightly higher than the first nine months 2015. Interest expense was higher in 2016 due to the subordinated debenture obtained earlier this year. Non-interest income increased to $1,237,226 from $820,208 as a result of security gains of $409,455. Non-interest expense increased to $6.5 million from $6.0 million for nine months ended September 30, 2016 and September 30, 2015, respectively. The largest increase in non-interest expense was seen in net salaries and benefits as we staffed for future loan growth. During the first nine months 2016, a provision of $150,000 was made to the Allowance for Loan Losses to accommodate this loan growth. Asset quality and underwriting remains strong with low net loan losses.

In late September we completed the acquisition of Cousins Home Lending. We believe that this acquisition will increase noninterest income in the years ahead as expanded product offerings will give us a greater presence in both the secondary market and retail side of our business.

Earnings per common share decreased to $.48 compared to $1.01 in September 2015. Common shareholder equity (total equity less issued preferred stock) increased to $20,948,496 from $20,415,722 which increased book value per share of common stock to $27.96 at September 30, 2016 from $27.25 per share a year earlier.

First Colebrook Bancorp, Inc. is a single bank holding company formed in 1985 and headquartered in Colebrook, New Hampshire. Its 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 Granite Bank f/k/a First Colebrook. 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, Chief Financial Officer at [email protected] or by calling 603-237-7016.

SOURCE First Colebrook Bancorp, Inc.