Century Bancorp, Inc. Announces 3rd Consecutive Year of Record Earnings for 2012, up 14%; Asset Grow

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Century Bancorp, Inc. Announces 3rd Consecutive Year of Record Earnings for 2012, up 14%; Asset Growth to Record Size of $3.1 BB; Regular Dividend Declared

MEDFORD, Mass.--(BUSINESS WIRE)-- Century Bancorp, Inc. (NAS: CNBKA) (www.centurybank.com) ("the Company") today announced record net income of $19,039,000 for the year ended December 31, 2012, or $3.43 per Class A share diluted, an increase of 14.1% compared to net income of $16,693,000, or $3.01 per Class A share diluted, for the same period a year ago. Total assets increased 12.5% from $2.7 billion at December 31, 2011 to $3.1 billion at December 31, 2012. For the quarter ended December 31, 2012, net income totaled $4,778,000, or $0.86 per Class A share diluted, an increase of 14.1% compared to net income of $4,189,000, or $0.76 per Class A share diluted, for the same period a year ago.

Net interest income totaled $62.0 million for the year ended December 31, 2012 compared to $55.3 million for 2011. The 12.0% increase in net interest income for the period is due to an 11.5% increase in the average balances of earning assets, combined with a similar increase in average deposits. The net interest margin increased from 2.48% on a fully taxable equivalent basis in 2011 to 2.51% on the same basis for 2012. This was primarily the result of prepayment penalties that were collected during 2012. Also, interest expense decreased primarily as a result of the continued decline in market rates.


The provision for loan losses decreased by $400,000 from $4.6 million for the year ended December 31, 2011 to $4.2 million, for the year ended December 31, 2012, primarily as a result of changes in the composition of the loan portfolio. The Company capitalized on favorable market conditions for the fourth quarter and year ended December 31, 2012 and realized net gains on sales of investments of $724,000 and $1.8 million, respectively, as compared to $695,000 and $1.9 million, respectively, for the same periods in 2011. FDIC assessments decreased from $2.0 million for the year ended December 31, 2011 to $1.7 million, for the year ended December 31, 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 decreased from 8.5% in 2011 to 6.8% in 2012 primarily as a result of an increase in tax-exempt income.

At December 31, 2012, total equity was $180.0 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 6.80% at December 31, 2012, compared to 7.12% at December 31, 2011. This decline in the leverage ratio is due to an increase in assets, offset somewhat, by an increase in stockholders' equity. Book value as of December 31, 2012 was $32.40 per share compared to $28.98 at December 31, 2011.

The Company's allowance for loan losses was $19.2 million or 1.73% of loans outstanding at December 31, 2012, compared to $16.6 million or 1.68% of loans outstanding at December 31, 2011. The allowance for loan losses increased despite a decrease in the provision for loan losses due to a lower level of charge-off activity combined with changes in the portfolio composition. Non-performing assets totaled $4.5 million at December 31, 2012, compared to $7.0 million at December 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 February 15, 2013 to stockholders of record on February 1, 2013.

The Company, through its subsidiary bank, Century Bank and Trust Company, a state chartered full service commercial bank, operating twenty-five 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)
 
  December 31, December 31,

Assets

20122011
Cash and Due From Banks$53,646$50,187
Federal Funds Sold and Interest-bearing Deposits In Other Banks98,637157,579
 
Short-term Investments17,36718,351
 
Securities Available-For-Sale (AFS)1,434,8011,258,676
 
Securities Held-to-Maturity275,507179,368
 
Federal Home Loan Bank of Boston stock, at cost15,14615,531
 
Loans:
Commercial & Industrial88,47582,404
Construction & Land Development38,61856,819
Commercial Real Estate576,465487,495
Residential Real Estate281,857239,307
Consumer and Other7,4507,681
Home Equity 118,923 110,786
 
Total Loans1,111,788984,492
Less: Allowance for Loan Losses 19,197 16,574
 
Net Loans1,092,591967,918
 
Bank Premises and Equipment23,89921,757
Accrued Interest Receivable5,8116,022
Goodwill2,7142,714
Other Assets 66,090 65,122
 
Total Assets$3,086,209$2,743,225
 

Liabilities

Demand Deposits$438,429$365,854
 
Interest Bearing Deposits:
Savings and NOW Deposits933,316708,988
Money Market Accounts653,345616,241
Time Deposits 419,983 433,501
 
Total Interest Bearing Deposits 2,006,644 1,758,730
 
Total Deposits2,445,0732,124,584
 
Borrowed Funds:
Securities Sold Under Agreements to Repurchase191,390143,320
Other Borrowed Funds 195,144 244,143
 
Total Borrowed Funds386,534387,463
 
Other Liabilities38,52934,446
Subordinated Debentures 36,083 36,083
 
Total Liabilities2,906,2192,582,576
 
Total Stockholders' Equity 179,990 160,649
 
Total Liabilities & Stockholders' Equity$3,086,209$2,743,225
Century Bancorp, Inc. and Subsidiaries
Consolidated Comparative Statements of Income (unaudited)
For the Quarter and Year ended December 31, 2012 and 2011
(in thousands)
    
Quarter ended December 31,Year ended December 31,
2012 20112012 2011
 
Interest Income:
Loans$12,301$11,949$51,415$48,096
Securities Held-to-Maturity1,6151,2216,7465,816
Securities Available-for-Sale5,6495,93522,70323,039
Federal Funds Sold and Interest-bearing Deposits In Other Banks 173 147 630 1,114
 
Total Interest Income19,73819,25281,49478,065
 
Interest Expense:
Savings and NOW Deposits6015252,2502,539
Money Market Accounts5405882,3732,706
Time Deposits1,4762,0716,2509,356
Securities Sold Under Agreements to Repurchase9389367379
Other Borrowed Funds and Subordinated Debentures 2,085 1,960 8,300 7,786
 
Total Interest Expense 4,795 5,233 19,540 22,766
 
Net Interest Income14,94314,01961,95455,299
 
Provision For Loan Losses 900 950 4,150 4,550
 
Net Interest Income After
Provision for Loan Losses14,04313,06957,80450,749
 
Other Operating Income
Service Charges on Deposit Accounts1,9932,0317,8807,885
Lockbox Fees7056412,9302,770
Net Gain on Sales of Investments7246951,8431,940
Other Income 731 994 3,212 3,645
 
Total Other Operating Income4,1534,36115,86516,240
 
Operating Expenses
Salaries and Employee Benefits8,2117,68232,94329,630
Occupancy1,2361,1264,6954,411
Equipment5015352,2552,235
FDIC Assessment4354131,7372,025
Other 2,896 2,946 11,608 10,441
 
Total Operating Expenses 13,279 12,702 53,238 48,742
 
Income Before Income Taxes4,9174,72820,43118,247
 
Income Tax Expense 139 539 1,392 1,554
 
Net Income$4,778$4,189$19,039$16,693
Century Bancorp, Inc. and Subsidiaries
Consolidated Year-to-Date Average Comparative Statements of Condition (unaudited)
(in thousands)
 
 December 31, December 31,

Assets

20122011
Cash and Due From Banks$54,572$51,963
Federal Funds Sold and Interest-Bearing Deposits in Other Banks219,540276,413
 
Securities Available-For-Sale (AFS)1,263,3751,099,099
Securities Held-to-Maturity270,525178,659
 
Total Loans1,036,296948,883

Less: Allowance for Loan Losses

 18,039 15,767
 
Net Loans1,018,257933,116
 
Unrealized Gain on Securities AFS18,36211,004
Bank Premises and Equipment22,80421,537
Accrued Interest Receivable6,0916,658
Goodwill2,7142,714
Other Assets 68,205 64,421
 
Total Assets$2,944,445$2,645,584
 

Liabilities

Demand Deposits$386,863$326,102
 
Interest Bearing Deposits:
Savings and NOW Deposits870,046735,022
Money Market Accounts666,949584,059
Time Deposits 418,789 484,142
Total Interest Bearing Deposits 1,955,784 1,803,223
 
Total Deposits2,342,6472,129,325
 
Borrowed Funds:
Securities Sold Under Agreements to Repurchase174,624129,137
Other Borrowed Funds 181,459 166,126
 
Total Borrowed Funds356,083295,263
 
Other Liabilities37,49729,253
Subordinated Debentures 36,083  Read Full Story

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