Century Bancorp, Inc. Announces Record Earnings, Up 23%, for 2011; 12% Asset Growth to Record Size of $2.7BB; Regular Dividend Declared

MEDFORD, Mass.--()--Century Bancorp, Inc. (NASDAQ:CNBKA) (www.centurybank.com) (“the Company”) today announced record net income of $16,693,000 for the year ended December 31, 2011, or $3.01 per share diluted, an increase of 23.0% compared to net income of $13,574,000, or $2.45 per share diluted, for the same period a year ago. Total assets increased 12.3% from $2.4 billion at December 31, 2010 to $2.7 billion at December 31, 2011. For the quarter ended December 31, 2011, net income totaled $4,189,000, or $0.76 per share diluted, an increase of 6.8% compared to net income of $3,924,000, or $0.71 per share diluted, for the same period a year ago.

Net interest income totaled $55.3 million for the year ended December 31, 2011 compared to $51.8 million for 2011. The 6.8% increase in net interest income for the period is due to a 10.7% increase in the average balances of earning assets, combined with a similar increase in average deposits, offset slightly by a decrease in the net interest margin from 2.52% on a fully taxable equivalent basis in 2010 to 2.48% on the same basis for 2011.

The provision for loan losses decreased by $1.0 million from $5.6 million for the year ended December 31, 2010 to $4.6 million, for the year ended December 31, 2011, primarily as a result of decreased provisions related to nonaccrual loans. The Company capitalized on favorable market conditions for the fourth quarter and year ended December 31, 2011 and realized net gains on sales of investments of $695,000 and $1.9 million, respectively, as compared to $824,000 and $1.9 million for the same periods in 2010. Other income increased for the fourth quarter of 2011 compared to the same period last year primarily as a result of a sale of mortgage loans. FDIC assessments decreased, for the year, primarily as a result of a decrease in the assessment rate, offset somewhat by an increase in assets. The Company’s effective tax rate increased slightly from 8.4% in 2010 to 8.5% in 2011 primarily as a result of an increase in taxable income.

At December 31, 2011, total equity was $160.6 million compared to $145.0 million at December 31, 2010. The Company’s equity increased primarily as a result of earnings and other comprehensive income, net of taxes, offset somewhat by dividends paid. The Company’s leverage ratio stood at 7.12% at December 31, 2011, compared to 7.35% at December 31, 2010. This decline in the leverage ratio is due to an increase in assets, offset by an increase in stockholders’ equity. Book value as of December 31, 2011 was $28.98 per share compared to $26.18 at December 31, 2010.

The Company’s allowance for loan losses was $16.6 million or 1.68% of loans outstanding at December 31, 2011, compared to $14.1 million, or 1.55% of loans outstanding at December 31, 2010. Non-performing assets totaled $7.0 million at December 31, 2011, compared to $8.1 million at December 31, 2010.

The Company's Board of Directors voted a regular quarterly dividend of 12.00 cents ($0.12) per share on the Company's Class A common stock, and 6.00 cents ($0.06) per share on the Company's Class B common stock. The dividends were declared payable February 15, 2012 to stockholders of record on February 1, 2012.

The Company, through its subsidiary bank, Century Bank and Trust Company, a state chartered full service commercial bank, operating twenty-four full-service branches in the Greater Boston area, including our newest branch in Newton Centre, offers a full range of Business, Personal and Institutional Services.

Century Bank and Trust Company is a member of the FDIC and is an Equal Housing Lender.

This press release contains certain “forward-looking statements” with respect to the financial condition, results of operations and business of the Company. Actual results may differ from those contemplated by these statements. The Company wishes to caution readers not to place undue reliance on any forward-looking statements. The Company disclaims any intent or obligation to update publicly any such forward-looking statements, whether in response to new information, future events or otherwise.

Century Bancorp, Inc. and Subsidiaries

Consolidated Comparative Statements of Condition (unaudited)
(in thousands)
    December 31,   December 31,

Assets

2011 2010
Cash and Due From Banks $ 50,187 $ 37,215
Federal Funds Sold and Interest-bearing Deposits In Other Banks 157,579 151,337
 
Short-term Investments 18,351 113,918
 
Securities Available-For-Sale (AFS) 1,258,676 909,391
 
Securities Held-to-Maturity 179,368 230,116
 
Federal Home Loan Bank of Boston stock, at cost 15,531 15,531
 
Loans:
Commercial & Industrial 82,404 90,654
Construction & Land Development 56,819 53,583
Commercial Real Estate 487,495 433,337
Residential Real Estate 239,307 207,787
Consumer and Other 7,681 6,594
Home Equity   110,786   114,209
 
Total Loans 984,492 906,164
Less: Allowance for Loan Losses   16,574   14,053
 
Net Loans 967,918 892,111
 
Bank Premises and Equipment 21,757 21,228
Accrued Interest Receivable 6,022 6,601
Goodwill 2,714 2,714
Core Deposit Intangible 120 508
Other Assets   65,002   61,014
 
Total Assets $ 2,743,225 $ 2,441,684
 

Liabilities

Demand Deposits $ 365,854 $ 322,002
 
Interest Bearing Deposits:
Savings and NOW Deposits 708,988 649,402
Money Market Accounts 616,241 513,359
Time Deposits   433,501   417,260
 
Total Interest Bearing   1,758,730   1,580,021
 
Total Deposits 2,124,584 1,902,023
 
Borrowed Funds:
Securities Sold Under Agreements to Repurchase 143,320 108,550
Other Borrowed Funds   244,143   222,118
 
Total Borrowed Funds 387,463 330,668
 
Other Liabilities 34,446 27,885
Subordinated Debentures   36,083   36,083
 
Total Liabilities 2,582,576 2,296,659
 
Total Stockholders' Equity   160,649   145,025
 
Total Liabilities & Stockholders' Equity $ 2,743,225 $ 2,441,684
Century Bancorp, Inc. and Subsidiaries
Consolidated Comparative Statements of Income (unaudited)
For the Quarter and Year ended December 31, 2011 and 2010
(in thousands)
       
Quarter ended December 31, Year ended December 31,
2011   2010 2011   2010
 
Interest Income:
Loans $ 11,949 $ 12,350 $ 48,096 $ 48,434
Securities Held-to-Maturity 1,221 1,657 5,816 7,158
Securities Available-for-Sale 5,935 4,719 23,039 19,349
Federal Funds Sold and Interest-bearing Deposits In Other Banks   147   396   1,114   1,642
 
Total Interest Income 19,252 19,122 78,065 76,583
 
Interest Expense:
Savings and NOW Deposits 525 818 2,539 4,072
Money Market Accounts 588 753 2,706 3,942
Time Deposits 2,071 2,168 9,356 7,914
Securities Sold Under Agreements to Repurchase 89 107 379 573
Other Borrowed Funds and Subordinated Debentures   1,960   1,965   7,786   8,316
 
Total Interest Expense   5,233   5,811   22,766   24,817
 
Net Interest Income 14,019 13,311 55,299 51,766
 
Provision For Loan Losses   950   1,350   4,550   5,575
 
Net Interest Income After
Provision for Loan Losses 13,069 11,961 50,749 46,191
 
Other Operating Income
Service Charges on Deposit Accounts 2,031 1,998 7,885 7,876
Lockbox Fees 641 718 2,770 2,911
Net Gain on Sales of Investments 695 824 1,940 1,851
Other Income   994   683   3,645   3,361
 
Total Other Operating Income 4,361 4,223 16,240 15,999
 
Operating Expenses
Salaries and Employee Benefits 7,682 6,779 29,630 28,398
Occupancy 1,126 1,034 4,411 4,037
Equipment 535 595 2,235 2,132
FDIC Assessment 413 790 2,025 2,965
Other   2,946   2,697   10,441   9,840
 
Total Operating Expenses   12,702   11,895   48,742   47,372
 
Income Before Income Taxes 4,728 4,289 18,247 14,818
 
Income Tax Expense   539   365   1,554   1,244
 
Net Income $ 4,189 $ 3,924 $ 16,693 $ 13,574
Century Bancorp, Inc. and Subsidiaries
Consolidated Year-to-Date Average Comparative Statements of Condition (unaudited)
(in thousands)
  December 31,   December 31,

Assets

2011 2010
Cash and Due From Banks $ 51,963 $ 52,662
Federal Funds Sold and Interest-Bearing Deposits in Other Banks 276,413 371,665
 
Securities Available-For-Sale (AFS) 1,099,099 788,951
Securities Held-to-Maturity 178,659 222,154
 
Total Loans 948,883 877,858
Less: Allowance for Loan Losses   15,767   13,686
 
Net Loans 933,116 864,172
 
Unrealized Gain on Securities AFS 11,004 13,151
Bank Premises and Equipment 21,537 21,334
Accrued Interest Receivable 6,658 6,575
Goodwill 2,714 2,714
Core Deposit Intangible 317 704
Other Assets   64,104   58,816
 
Total Assets $ 2,645,584 $ 2,402,898
 

Liabilities

Demand Deposits $ 326,102 $ 298,825
 
Interest Bearing Deposits:
Savings and NOW Deposits 735,022 696,232
Money Market Accounts 584,059 543,432
Time Deposits   484,142   356,457
Total Interest Bearing   1,803,223   1,596,121
 
Total Deposits 2,129,325 1,894,946
 
Borrowed Funds:
Securities Sold Under Agreements to Repurchase 129,137 133,080
Other Borrowed Funds   166,126   165,190
 
Total Borrowed Funds 295,263 298,270
 
Other Liabilities 29,253 31,074
Subordinated Debentures   36,083   36,083
 
Total Liabilities 2,489,924 2,260,373
 
Total Stockholders' Equity   155,660   142,525
 
Total Liabilities & Stockholders' Equity $ 2,645,584 $ 2,402,898
 
 
Total Average Earning Assets - QTD $ 2,570,937 $ 2,295,297
 
Total Average Earning Assets - YTD $ 2,503,054 $ 2,260,628
Century Bancorp, Inc. and Subsidiaries
Consolidated Selected Key Financial Information (unaudited)
(in thousands, except share data)   December 31,   December 31,
2011 2010
 

Performance Measures:

 
Earnings per average share, basic, quarter $ 0.76 $ 0.71
Earnings per average share, diluted, quarter $ 0.76 $ 0.71
Earnings per average share, basic, year-to-date $ 3.01 $ 2.45
Earnings per average share, diluted, year-to-date $ 3.01 $ 2.45
Return on average assets, year-to-date 0.63 % 0.56 %
Return on average stockholders' equity, year-to-date 10.72 % 9.52 %
Net interest margin (taxable equivalent), quarter 2.44 % 2.55 %
Net interest margin (taxable equivalent), year-to-date 2.48 % 2.52 %
Efficiency ratio, year-to-date 62.2 % 65.0 %
Book value per share $ 28.98 $ 26.18
Tangible book value per share $ 28.47 $ 25.60
Tangible capital / tangible assets 5.76 % 5.82 %
 
 
Common Share Data:
Average shares outstanding, basic, quarter 5,540,798 5,537,776
Average shares outstanding, diluted, quarter 5,542,052 5,539,639
Average shares outstanding, basic, year-to-date 5,540,644 5,533,506
Average shares outstanding, diluted, year-to-date 5,541,794 5,535,742
 
Shares outstanding Class A 3,548,317 3,528,867
Shares outstanding Class B   1,994,380     2,011,380  
Total shares outstanding at period end   5,542,697     5,540,247  
 
 

Asset Quality and Other Data:

 
Allowance for loan losses / loans 1.68 % 1.55 %
Nonaccrual loans $ 5,827 $ 8,068
Nonperforming assets $ 7,009 $ 8,068
Loans 90 days past due and still accruing $ 18 $ 50
Accruing troubled debt restructures $ 4,634 $ 1,248
Net charge-offs, year-to-date $ 2,030 $ 3,894
 
Leverage ratio 7.12 % 7.35 %
Tier 1 risk weighted capital ratio 14.73 % 14.86 %
Total risk weighted capital ratio 15.98 % 16.03 %
Total risk weighted assets $ 1,306,874 $ 1,199,896

Contacts

Century Bancorp, Inc.
William P. Hornby, CPA, 781-393-4630
Fax: 781-393-4071
whornby@centurybank.com

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Contacts

Century Bancorp, Inc.
William P. Hornby, CPA, 781-393-4630
Fax: 781-393-4071
whornby@centurybank.com