Century Bancorp, Inc. Announces Record Earnings for Q3, Up 24%; Asset Growth to $3.0 BB; Regular Div

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Century Bancorp, Inc. Announces Record Earnings for Q3, Up 24%; Asset Growth to $3.0 BB; Regular Dividend Declared

MEDFORD, Mass.--(BUSINESS WIRE)-- Century Bancorp, Inc. (NAS: CNBKA) (www.centurybank.com) ("the Company") today announced net income of $14,261,000 for the nine months ended September 30, 2012, or $2.57 per Class A share diluted, an increase of 14.1% compared to net income of $12,504,000, or $2.26 per Class A share diluted, for the same period a year ago. Total assets increased 8.1% from $2.7 billion at December 31, 2011 to $3.0 billion at September 30, 2012. For the quarter ended September 30, 2012, net income totaled $5,682,000, or $1.02 per Class A share diluted, an increase of 24.0% compared to net income of $4,582,000, or $0.83 per Class A share diluted, for the same period a year ago.

Net interest income totaled $47.0 million for the first nine months of 2012 compared to $41.3 million for the same period in 2011. The 13.9% increase in net interest income for the period is due to a 10.5% increase in the average balances of earning assets, combined with a similar increase in average deposits. The net interest margin increased from 2.49% on a fully taxable equivalent basis in 2011 to 2.58% on the same basis for 2012. This was primarily the result of prepayment penalties that were collected during the third quarter. Also, interest expense decreased primarily as a result of the continued decline in market rates.


The provision for loan losses decreased by $350,000 from $3.6 million for the nine months ended September 30, 2011 to $3.3 million, for the nine months ended September 30, 2012, primarily as a result of changes in the composition of the loan portfolio. The Company capitalized on favorable market conditions for the first nine months ended September 30, 2012 and realized net gains on sales of investments of $1.1 million, compared to $1.2 million, for the same period in 2011. FDIC assessments decreased for the first nine months of 2012, 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 increased slightly from 7.5% in 2011 to 8.1% in 2012. The Company's income tax rate has remained low primarily as a result of tax-exempt income.

At September 30, 2012, total equity was $178.1 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 6.95% at September 30, 2012, compared to 7.02% at September 30, 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 September 30, 2012 was $32.10 per share compared to $29.43 at September 30, 2011.

The Company's allowance for loan losses was $18.7 million or 1.75% of loans outstanding at September 30, 2012, compared to $16.6 million or 1.68% of loans outstanding at December 31, 2011 and $16.0 million, or 1.68% of loans outstanding at September 30, 2011. Non-performing assets totaled $5.9 million at September 30, 2012, compared to $7.0 million at December 31, 2011 and $7.4 million at September 30, 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 November 15, 2012 to stockholders of record on November 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)
  September 30,  December 31,

Assets

 2012 2011
Cash and Due From Banks$44,198$50,187
Federal Funds Sold and Interest-bearing Deposits In Other Banks217,424157,579
 
Short-term Investments31,36418,351
 
Securities Available-For-Sale (AFS)1,229,0991,258,676
 
Securities Held-to-Maturity284,490179,368
 
Federal Home Loan Bank of Boston stock, at cost15,14615,531
 
Loans:
Commercial & Industrial78,56782,404
Construction & Land Development38,31856,819
Commercial Real Estate562,252487,495
Residential Real Estate262,426239,307
Consumer and Other6,6617,681
Home Equity 116,699 110,786
 
Total Loans1,064,923984,492
Less: Allowance for Loan Losses 18,658 16,574
 
Net Loans1,046,265967,918
 
Bank Premises and Equipment23,41621,757
Accrued Interest Receivable5,8666,022
Goodwill2,7142,714
Other Assets 65,835 65,122
 
Total Assets$2,965,817$2,743,225
 

Liabilities

Demand Deposits$406,681$365,854
 
Interest Bearing Deposits:
Savings and NOW Deposits832,525708,988
Money Market Accounts672,447616,241
Time Deposits 431,630 433,501
 
Total Interest Bearing Deposits 1,936,602 1,758,730
 
Total Deposits2,343,2832,124,584
 
Borrowed Funds:
Securities Sold Under Agreements to Repurchase176,060143,320
Other Borrowed Funds 184,144 244,143
 
Total Borrowed Funds360,204387,463
 
Other Liabilities48,13534,446
Subordinated Debentures 36,083 36,083
 
Total Liabilities2,787,7052,582,576
 
Total Stockholders' Equity 178,112 160,649
 
Total Liabilities & Stockholders' Equity$2,965,817$2,743,225
 
 
Century Bancorp, Inc. and Subsidiaries
Consolidated Comparative Statements of Income (unaudited)
For the Quarter and Nine months ended September 30, 2012 and 2011
(in thousands)
      
Quarter ended September 30,Nine months ended September 30,
 2012  2011 2012  2011
 
Interest Income:
Loans$14,494$12,030$39,114$36,147
Securities Held-to-Maturity1,7441,3045,1314,595
Securities Available-for-Sale5,6716,04217,05417,104
Federal Funds Sold and Interest-bearing Deposits In Other Banks 170 262 457 967
 
Total Interest Income22,07919,63861,75658,813
 
Interest Expense:
Savings and NOW Deposits5845921,6712,023
Money Market Accounts5816271,8112,109
Time Deposits1,4932,5124,7747,285
Securities Sold Under Agreements to Repurchase9482274290
Other Borrowed Funds and Subordinated Debentures 2,107 1,987 6,215 5,826
 
Total Interest Expense 4,859 5,800 14,745 17,533
 
Net Interest Income17,22013,83847,01141,280
 
Provision For Loan Losses 1,250 1,200 3,250 3,600
 

Net Interest Income After Provision for Loan Losses

15,97012,63843,76137,680
 
Other Operating Income
Service Charges on Deposit Accounts1,9772,0315,8875,854
Lockbox Fees7456582,2252,129
Net Gain on Sales of Investments5298831,1191,245
Other Income 854 931 2,481 2,651
 
Total Other Operating Income4,1054,50311,71211,879
 
Operating Expenses
Salaries and Employee Benefits8,4007,35724,73221,948
Occupancy1,1611,0593,4593,285
Equipment6276081,7541,700
FDIC Assessment4504131,3021,612
Other 3,070 2,618 8,712 7,495
 
Total Operating Expenses 13,708 12,055 39,959 36,040
 
Income Before Income Taxes6,3675,08615,51413,519
 
Income Tax Expense 685 504 1,253 1,015
 
Net Income$5,682$4,582$14,261$12,504
 
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Century Bancorp, Inc. and Subsidiaries
Consolidated Year-to-Date Average Comparative Statements of Condition (unaudited)
(in thousands)
  September 30,  September 30,

Assets

 2012 2011
Cash and Due From Banks$53,085$52,444
Federal Funds Sold and Interest-Bearing Deposits in Other Banks212,417305,717
 
Securities Available-For-Sale (AFS)1,240,9431,038,455
Securities Held-to-Maturity266,686189,100
 
Total Loans1,019,609946,905
Less: Allowance for Loan Losses 17,748 15,517
 
Net Loans1,001,861931,388
 
Unrealized Gain on Securities AFS17,6319,710
Bank Premises and Equipment22,49021,416
Accrued Interest Receivable6,1246,806
Goodwill2,7142,714
Other Assets 68,339 63,971
 
Total Assets$2,892,290$2,621,721
 

Liabilities

Demand Deposits$385,440$321,340
 
Interest Bearing Deposits:
Savings and NOW Deposits845,057728,238