Century Bancorp, Inc. Announces Increased Earnings; Asset Growth to Record Size of $2.9BB; Regular Dividend Declared

MEDFORD, Mass.--()--Century Bancorp, Inc. (NASDAQ:CNBKA) (www.centurybank.com) (“the Company”) today announced net income of $3,808,000 for the quarter ended March 31, 2012, or $0.69 per share diluted, an increase of 2.2% compared to net income of $3,725,000, or $0.67 per share diluted, for the same period a year ago. Total assets increased 4.1% from $2.7 billion at December 31, 2011 to $2.9 billion at March 31, 2012.

Net interest income totaled $14.4 million for the quarter ended March 31, 2012 compared to $13.9 million for the same period in 2011. The 3.4% increase in net interest income for the period is due to an 11.1% increase in the average balances of earning assets, combined with a similar increase in average deposits, offset by a decrease in the net interest margin from 2.64% on a fully taxable equivalent basis in 2011 to 2.48% on the same basis for 2012.

The provision for loan losses decreased by $100,000 from $1.2 million for the quarter ended March 31, 2011 to $1.1 million, for the quarter ended March 31, 2012. The Company capitalized on favorable market conditions for the first quarter ended March 31, 2012 and realized net gains on sales of investments of $148,000, compared to $164,000 for the same period in 2011. Other income increased for the first quarter of 2012 compared to the same period last year primarily as a result of increased service charges on deposit accounts. FDIC assessments decreased for the quarter, primarily as a result of a decrease in the assessment rate, offset somewhat by an increase in the assessment base. The Company’s effective tax rate decreased from 8.1% in 2011 to 7.6% in 2012 primarily as a result of an increase in tax-exempt income.

At March 31, 2012, total equity was $165.9 million compared to $160.6 million at December 31, 2011. 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 7.05% at March 31, 2012, compared to 7.21% at March 31, 2011. This decline in the leverage ratio is due to an increase in assets, offset by an increase in stockholders’ equity. Book value as of March 31, 2012 was $29.91 per share compared to $26.64 at March 31, 2011.

The Company’s allowance for loan losses was $17.4 million or 1.76% of loans outstanding at March 31, 2012, compared to $16.6 million or 1.68% of loans outstanding at December 31, 2011 and $15.0 million, or 1.58% of loans outstanding at March 31, 2011. Non-performing assets totaled $5.8 million at March 31, 2012, compared to $7.0 million at December 31, 2011 and $11.6 million at March 31, 2011.

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 May 15, 2012 to stockholders of record on May 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, 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)
    March 31,   December 31,

Assets

2012 2011
Cash and Due From Banks $ 43,266 $ 50,187
Federal Funds Sold and Interest-bearing Deposits In Other Banks 87,996 157,579
 
Short-term Investments 13,303 18,351
 
Securities Available-For-Sale (AFS) 1,313,839 1,258,676
 
Securities Held-to-Maturity 316,223 179,368
 
Federal Home Loan Bank of Boston stock, at cost 15,146 15,531
 
Loans:
Commercial & Industrial 81,882 82,404
Construction & Land Development 36,937 56,819
Commercial Real Estate 502,413 487,495
Residential Real Estate 249,981 239,307
Consumer and Other 6,946 7,681
Home Equity   109,817   110,786
 
Total Loans 987,976 984,492
Less: Allowance for Loan Losses   17,434   16,574
 
Net Loans 970,542 967,918
 
Bank Premises and Equipment 21,848 21,757
Accrued Interest Receivable 6,094 6,022
Goodwill 2,714 2,714
Core Deposit Intangible 23 120
Other Assets   64,978   65,002
 
Total Assets $ 2,855,972 $ 2,743,225
 

Liabilities

Demand Deposits $ 360,308 $ 365,854
 
Interest Bearing Deposits:
Savings and NOW Deposits 746,741 708,988
Money Market Accounts 645,143 616,241
Time Deposits   439,474   433,501
 
Total Interest Bearing   1,831,358   1,758,730
 
Total Deposits 2,191,666 2,124,584
 
Borrowed Funds:
Securities Sold Under Agreements to Repurchase 142,230 143,320
Other Borrowed Funds   241,143   244,143
 
Total Borrowed Funds 383,373 387,463
 
Other Liabilities 78,913 34,446
Subordinated Debentures   36,083   36,083
 
Total Liabilities 2,690,035 2,582,576
 
Total Stockholders' Equity   165,937   160,649
 
Total Liabilities & Stockholders' Equity $ 2,855,972 $ 2,743,225
Century Bancorp, Inc. and Subsidiaries
Consolidated Comparative Statements of Income (unaudited)
For the Quarter ended March 31, 2012 and 2011
(in thousands)
 
Quarter ended March 31,
2012   2011
 
Interest Income:
Loans $ 12,048 $ 12,105
Securities Held-to-Maturity 1,463 1,773
Securities Available-for-Sale 5,715 5,353
Federal Funds Sold and Interest-bearing Deposits In Other Banks   139   347
 
Total Interest Income 19,365 19,578
 
Interest Expense:
Savings and NOW Deposits 534 712
Money Market Accounts 605 705
Time Deposits 1,681 2,279
Securities Sold Under Agreements to Repurchase 92 110
Other Borrowed Funds and Subordinated Debentures   2,051   1,845
 
Total Interest Expense   4,963   5,651
 
Net Interest Income 14,402 13,927
 
Provision For Loan Losses   1,100   1,200
 
Net Interest Income After
Provision for Loan Losses 13,302 12,727
 
Other Operating Income
Service Charges on Deposit Accounts 1,988 1,887
Lockbox Fees 699 737
Net Gain on Sales of Investments 148 164
Other Income   784   747
 
Total Other Operating Income 3,619 3,535
 
Operating Expenses
Salaries and Employee Benefits 8,141 7,341
Occupancy 1,122 1,251
Equipment 583 558
FDIC Assessment 407 735
Other   2,547   2,325
 
Total Operating Expenses   12,800   12,210
 
Income Before Income Taxes 4,121 4,052
 
Income Tax Expense   313   327
 
Net Income $ 3,808 $ 3,725
Century Bancorp, Inc. and Subsidiaries    
Consolidated Year-to-Date Average Comparative Statements of Condition (unaudited)
(in thousands)
March 31, March 31,

Assets

2012 2011
Cash and Due From Banks $ 52,860 $ 54,279
Federal Funds Sold and Interest-Bearing Deposits in Other Banks 186,515 285,590
 
Securities Available-For-Sale (AFS) 1,264,583 956,831
Securities Held-to-Maturity 205,538 211,658
 
Total Loans 986,222 924,867
Less: Allowance for Loan Losses   17,079   14,587
 
Net Loans 969,143 910,280
 
Unrealized Gain on Securities AFS 15,652 4,708
Bank Premises and Equipment 21,805 21,148
Accrued Interest Receivable 6,188 6,757
Goodwill 2,714 2,714
Core Deposit Intangible 81 466
Other Assets   67,729   61,645
 
Total Assets $ 2,792,808 $ 2,516,076
 

Liabilities

Demand Deposits $ 360,249 $ 308,749
 
Interest Bearing Deposits:
Savings and NOW Deposits 796,649 710,725
Money Market Accounts 646,618 542,739
Time Deposits   416,272   445,696
Total Interest Bearing   1,859,539   1,699,160
 
Total Deposits 2,219,788 2,007,909
 
Borrowed Funds:
Securities Sold Under Agreements to Repurchase 155,193 129,472
Other Borrowed Funds   181,825   167,404
 
Total Borrowed Funds 337,018 296,876
 
Other Liabilities 36,150 28,924
Subordinated Debentures   36,083   36,083
 
Total Liabilities 2,629,039 2,369,792
 
Total Stockholders' Equity   163,769   146,284
 
Total Liabilities & Stockholders' Equity $ 2,792,808 $ 2,516,076
 
 
Total Average Earning Assets - YTD $ 2,642,858 $ 2,378,946
Century Bancorp, Inc. and Subsidiaries
Consolidated Selected Key Financial Information (unaudited)
(in thousands, except share data)   March 31,   March 31,
2012 2011
 

Performance Measures:

 
Earnings per average share, basic, quarter $ 0.69 $ 0.67
Earnings per average share, diluted, quarter $ 0.69 $ 0.67
Return on average assets, quarter 0.55 % 0.60 %
Return on average stockholders' equity, quarter 9.35 % 10.33 %
Net interest margin (taxable equivalent), quarter 2.48 % 2.64 %
Efficiency ratio, quarter 64.3 % 64.2 %
Book value per share $ 29.91 $ 26.64
Tangible book value per share $ 29.41 $ 26.08
Tangible capital / tangible assets 5.72 % 5.64 %
 
 
Common Share Data:
Average shares outstanding, basic, quarter 5,544,748 5,540,583
Average shares outstanding, diluted, quarter 5,545,711 5,541,927
 
Shares outstanding Class A 3,556,429 3,543,717
Shares outstanding Class B   1,991,880     1,996,880  
Total shares outstanding at period end   5,548,309     5,540,597  
 
 

Asset Quality and Other Data:

 
Allowance for loan losses / loans 1.76 % 1.58 %
Nonaccrual loans $ 4,573 $ 10,790
Nonperforming assets $ 5,755 $ 11,600
Loans 90 days past due and still accruing $ 743 $ 592
Accruing troubled debt restructures $ 4,603 $ 1,726
Net charge-offs, year-to-date $ 240 $ 295
 
Leverage ratio 7.05 % 7.21 %
Tier 1 risk weighted capital ratio 14.67 % 14.50 %
Total risk weighted capital ratio 15.92 % 15.69 %
Total risk weighted assets $ 1,335,210 $ 1,247,572

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