Century Bancorp, Inc. Announces Increased Earnings for Q1 2013, Up 18%; Asset Growth to Record Size

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Century Bancorp, Inc. Announces Increased Earnings for Q1 2013, Up 18%; Asset Growth to Record Size of $3.2 BB; Regular Dividend Declared

MEDFORD, Mass.--(BUSINESS WIRE)-- Century Bancorp, Inc. (NAS: CNBKA) (www.centurybank.com) ("the Company") today announced net income of $4,476,000 for the quarter ended March 31, 2013, or $0.81 per Class A share diluted, an increase of 17.5% compared to net income of $3,808,000, or $0.69 per Class A share diluted, for the same period a year ago. Total assets increased 2.5% from $3.1 billion at December 31, 2012 to $3.2 billion at March 31, 2013.

Net interest income totaled $14.5 million for the quarter ended March 31, 2013 compared to $14.4 million for 2012. The 1.0% increase in net interest income for the period is due to a 13.0% increase in the average balances of earning assets, combined with a similar increase in average deposits. The net interest margin decreased from 2.48% on a fully taxable equivalent basis in 2012 to 2.25% on the same basis for 2013. This was primarily the result of a decrease in asset yields. 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 $1.1 million for the quarter ended March 31, 2012 to $750,000 for the quarter ended March 31, 2013, primarily as a result of a lower level of charge-off activity. The Company capitalized on favorable market conditions for the first quarter ended March 31, 2013 and realized net gains on sales of investments of $883,000, as compared to $148,000 for the same period in 2012. The Company's effective tax rate decreased from 7.6% in 2012 to 6.0% in 2013 primarily as a result of an increase in tax-exempt income.

At March 31, 2013, total equity was $181.0 million compared to $180.0 million at December 31, 2012. The Company's equity increased primarily as a result of earnings, offset somewhat by an increase in other comprehensive loss, net of taxes, and dividends paid. The Company's leverage ratio stood at 6.83% at March 31, 2013, compared to 6.80% at December 31, 2012. The increase in the leverage ratio is due to an increase in stockholders' equity, offset somewhat, by an increase in assets. Book value as of March 31, 2013 was $32.58 per share compared to $32.40 at December 31, 2012.

The Company's allowance for loan losses was $19.8 million or 1.74% of loans outstanding at March 31, 2013, compared to $19.2 million or 1.73% of loans outstanding at December 31, 2012 and $17.4 million or 1.76% of loans outstanding at March 31, 2012. The increase in the allowance for loan losses was due to the increase in the size and composition of the loan portfolio as well as qualitative factors. Non-performing assets totaled $4.1 million at March 31, 2013, compared to $4.5 million at December 31, 2012 and $5.8 million at March 31, 2012.

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, 2013 to stockholders of record on May 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)
 
  March 31,  December 31,

Assets

 2013 2012
Cash and Due From Banks$47,504$53,646
Federal Funds Sold and Interest-bearing Deposits In Other Banks197,28198,637
 
Short-term Investments12,11117,367
 
Securities Available-For-Sale (AFS)1,407,2601,434,801
 
Securities Held-to-Maturity260,545275,507
 
Federal Home Loan Bank of Boston stock, at cost14,86215,146
 
Loans:
Commercial & Industrial110,53788,475
Construction & Land Development34,02138,618
Commercial Real Estate570,441576,465
Residential Real Estate292,871281,857
Consumer and Other7,9107,450
Home Equity 121,989 118,923
 
Total Loans1,137,7691,111,788
Less: Allowance for Loan Losses 19,759 19,197
 
Net Loans1,118,0101,092,591
 
Bank Premises and Equipment23,66923,899
Accrued Interest Receivable6,0115,811
Goodwill2,7142,714
Other Assets 72,168 66,090
 
Total Assets$3,162,135$3,086,209
 

Liabilities

Demand Deposits$416,109$438,429
 
Interest Bearing Deposits:
Savings and NOW Deposits935,995933,316
Money Market Accounts730,791653,345
Time Deposits 442,980 419,983
 
Total Interest Bearing Deposits 2,109,766 2,006,644
 
Total Deposits2,525,8752,445,073
 
Borrowed Funds:
Securities Sold Under Agreements to Repurchase187,080191,390
Other Borrowed Funds 182,144 195,144
 
Total Borrowed Funds369,224386,534
 
Other Liabilities49,93538,529
Subordinated Debentures 36,083 36,083
 
Total Liabilities2,981,1172,906,219
 
Total Stockholders' Equity 181,018 179,990
 
Total Liabilities & Stockholders' Equity$3,162,135$3,086,209
 
 
Century Bancorp, Inc. and Subsidiaries
Consolidated Comparative Statements of Income (unaudited)
For the Quarter ended March 31, 2013 and 2012
(in thousands)
     
Quarter ended March 31,
 2013  2012
 
Interest Income:
Loans$11,881$12,048
Securities Held-to-Maturity1,5201,463
Securities Available-for-Sale5,6175,715
Federal Funds Sold and Interest-bearing Deposits In Other Banks 119 139
 
Total Interest Income19,13719,365
 
Interest Expense:
Savings and NOW Deposits610534
Money Market Accounts532605
Time Deposits1,3341,681
Securities Sold Under Agreements to Repurchase9092
Other Borrowed Funds and Subordinated Debentures 2,026 2,051
 
Total Interest Expense 4,592 4,963
 
Net Interest Income14,54514,402
 
Provision For Loan Losses 750 1,100
 
Net Interest Income After
Provision for Loan Losses13,79513,302
 
Other Operating Income
Service Charges on Deposit Accounts1,9421,988
Lockbox Fees772699
Net Gain on Sales of Investments883148
Other Income 837 784
 
Total Other Operating Income4,4343,619
 
Operating Expenses
Salaries and Employee Benefits8,6188,141
Occupancy1,2821,122
Equipment582583
FDIC Assessment400407
Other 2,583 2,547
 
Total Operating Expenses 13,465 12,800
 
Income Before Income Taxes4,7644,121
 
Income Tax Expense 288 313
 
Net Income$4,476$3,808
 
 
Century Bancorp, Inc. and Subsidiaries
Consolidated Year-to-Date Average Comparative Statements of Condition (unaudited)
(in thousands)
    March 31, March 31,

Assets

 2013 2012
Cash and Due From Banks$57,871$52,860
Federal Funds Sold and Interest-Bearing Deposits in Other Banks170,727186,515
 
Securities Available-For-Sale (AFS)1,419,5891,264,583
Securities Held-to-Maturity268,199205,538
 
Total Loans1,126,752986,222
Less: Allowance for Loan Losses 19,503 17,079
 
Net Loans1,107,249969,143
 
Unrealized Gain on Securities AFS16,53915,652
Bank Premises and Equipment23,80621,805
Accrued Interest Receivable6,0326,188
Goodwill2,7142,714
Other Assets 69,459 67,810
 
Total Assets$3,142,185$2,792,808
 

Liabilities

Demand Deposits$417,886$360,249
 
Interest Bearing Deposits:
Savings and NOW Deposits988,678796,649
Money Market Accounts701,837646,618
Time Deposits 394,669 416,272
Total Interest Bearing Deposits 2,085,184 1,859,539
 
Total Deposits2,503,0702,219,788
 
Borrowed Funds:
Securities Sold Under Agreements to Repurchase208,306155,193
Other Borrowed Funds 174,522 181,825
 
Total Borrowed Funds382,828337,018
 
Other Liabilities40,04536,150
Subordinated Debentures 36,083 36,083
 
Total Liabilities2,962,0262,629,039
 
Total Stockholders' Equity 180,159 163,769
 
Total Liabilities & Stockholders' Equity$3,142,185$2,792,808
 
 
Total Average Earning Assets - YTD$2,985,267$2,642,858
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