Century Bancorp, Inc. Announces Increased Year-to-Date Earnings for 2013, Up 11%; Asset Growth of 6.

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Century Bancorp, Inc. Announces Increased Year-to-Date Earnings for 2013, Up 11%; Asset Growth of 6.5% to Record Size of $3.3 BB; Regular Dividend Declared

MEDFORD, Mass.--(BUSINESS WIRE)-- Century Bancorp, Inc. (NAS: CNBKA) (www.centurybank.com) ("the Company") today announced net income of $9,502,000 for the six months ended June 30, 2013, or $1.71 per Class A share diluted, an increase of 10.8% compared to net income of $8,579,000, or $1.55 per Class A share diluted, for the same period a year ago. Total assets increased 6.5% from $3.1 billion at December 31, 2012 to $3.3 billion at June 30, 2013. For the quarter ended June 30, 2013, net income totaled $5,026,000, or $0.90 per Class A share diluted, an increase of 5.3% compared to net income of $4,771,000, or $0.86 per Class A share diluted, for the same period a year ago.

Net interest income totaled $29.1 million for the six months ended June 30, 2013 compared to $29.8 million for the same period in 2012. The 2.5% decrease in net interest income for the period is primarily due to $640,000 of prepayment penalties collected during the first six months of 2012. The net interest margin decreased from 2.50% on a fully taxable equivalent basis in 2012 to 2.21% 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 and there was a 12.3% increase in the average balances of earning assets, combined with a similar increase in average deposits.


The provision for loan losses decreased by $500,000 from $2.0 million for the six months ended June 30, 2012 to $1.5 million for the six months ended June 30, 2013, primarily as a result of a lower level of charge-off activity. The Company capitalized on favorable market conditions for the first six months ended June 30, 2013 and realized net gains on sales of investments of $1.7 million, as compared to $590,000 for the same period in 2012. The Company's effective tax rate decreased from 6.2% in 2012 to 5.8% in 2013 primarily as a result of an increase in tax-exempt income.

At June 30, 2013, total equity was $166.2 million compared to $180.0 million at December 31, 2012. The Company's equity decreased primarily as a result of an increase in other comprehensive loss, net of taxes, and dividends paid, offset somewhat by earnings. Other comprehensive loss, net of taxes, increased as a result of an increase in unrealized losses on securities available-for-sale. Unrealized losses on the available-for-sale portfolio increased as a result of increases in interest rates. The Company's leverage ratio stood at 6.74% at June 30, 2013, compared to 6.80% at December 31, 2012. The decrease in the leverage ratio is due to an increase in assets. Book value as of June 30, 2013 was $29.92 per share compared to $32.40 at December 31, 2012.

The Company's allowance for loan losses was $20.5 million or 1.76% of loans outstanding at June 30, 2013, compared to $19.2 million or 1.73% of loans outstanding at December 31, 2012 and $18.0 million or 1.75% of loans outstanding at June 30, 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 $3.3 million at June 30, 2013, compared to $4.5 million at December 31, 2012 and $5.3 million at June 30, 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 August 15, 2013 to stockholders of record on August 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)
 
   June 30, December 31,

Assets

20132012
Cash and Due From Banks$49,192$53,646
Federal Funds Sold and Interest-bearing Deposits In Other Banks122,71398,637
 
Short-term Investments19,61117,367
 
Securities Available-For-Sale (AFS)1,552,2161,434,801
 
Securities Held-to-Maturity267,613275,507
 
Federal Home Loan Bank of Boston stock, at cost16,08215,146
 
Loans:
Commercial & Industrial101,91888,475
Construction & Land Development34,91938,618
Commercial Real Estate609,462576,465
Residential Real Estate283,392281,857
Consumer and Other8,1237,450
Home Equity 125,918 118,923
 
Total Loans1,163,7321,111,788
Less: Allowance for Loan Losses 20,500 19,197
 
Net Loans1,143,2321,092,591
 
Bank Premises and Equipment23,36723,899
Accrued Interest Receivable6,0055,811
Goodwill2,7142,714
Other Assets 83,191 66,090
 
Total Assets$3,285,936$3,086,209
 

Liabilities

Demand Deposits$440,120$438,429
 
Interest Bearing Deposits:
Savings and NOW Deposits964,923933,316
Money Market Accounts769,660653,345
Time Deposits 466,492 419,983
 
Total Interest Bearing Deposits 2,201,075 2,006,644
 
Total Deposits2,641,1952,445,073
 
Borrowed Funds:
Securities Sold Under Agreements to Repurchase214,290191,390
Other Borrowed Funds 177,144 195,144
 
Total Borrowed Funds391,434386,534
 
Other Liabilities50,99138,529
Subordinated Debentures 36,083 36,083
 
Total Liabilities3,119,7032,906,219
 
Total Stockholders' Equity 166,233 179,990
 
Total Liabilities & Stockholders' Equity$3,285,936$3,086,209
 
 
Century Bancorp, Inc. and Subsidiaries
Consolidated Comparative Statements of Income (unaudited)
For the Quarter and Six months ended June 30, 2013 and 2012
(in thousands)
       
Quarter ended June 30,Six months ended June 30,
2013 20122013 2012
 
Interest Income:
Loans$11,997$12,572$23,878$24,620
Securities Held-to-Maturity1,4191,9242,9393,387
Securities Available-for-Sale5,5715,66811,18811,383
Federal Funds Sold and Interest-bearing Deposits In Other Banks 145 148 264 287
 
Total Interest Income19,13220,31238,26939,677
 
Interest Expense:
Savings and NOW Deposits6495601,2591,087
Money Market Accounts5826181,1141,230
Time Deposits1,2341,6002,5683,281
Securities Sold Under Agreements to Repurchase8988179180
Other Borrowed Funds and Subordinated Debentures 2,066 2,057 4,092 4,108
 
Total Interest Expense 4,620 4,923 9,212 9,886
 
Net Interest Income14,51215,38929,05729,791
 
Provision For Loan Losses 750 900 1,500 2,000
 
Net Interest Income After
Provision for Loan Losses13,76214,48927,55727,791
 
Other Operating Income
Service Charges on Deposit Accounts2,0341,9223,9763,910
Lockbox Fees8387811,6101,480
Net Gain on Sales of Investments7814421,664590
Other Income 1,568 843 2,405 1,627
 
Total Other Operating Income5,2213,9889,6557,607
 
Operating Expenses
Salaries and Employee Benefits8,3828,19117,00016,332
Occupancy1,1931,1762,4752,298
Equipment6105441,1921,127
FDIC Assessment450445850852
Other 3,027 3,095 5,610 5,642
 
Total Operating Expenses 13,662 13,451 27,127 26,251
 
Income Before Income Taxes5,3215,02610,0859,147
 
Income Tax Expense 295 255 583 568
 
Net Income$5,026$4,771$9,502$8,579
 
 
Century Bancorp, Inc. and Subsidiaries     
Consolidated Year-to-Date Average Comparative Statements of Condition (unaudited)
(in thousands)
June 30,June 30,

Assets

20132012
Cash and Due From Banks$57,758$52,885
Federal Funds Sold and Interest-Bearing Deposits in Other Banks188,730200,066
 
Securities Available-For-Sale (AFS)1,446,1961,250,085
Securities Held-to-Maturity259,812255,609
 
Total Loans1,140,277996,503
Less: Allowance for Loan Losses 19,828 17,386
 
Net Loans1,120,449979,117
 
Unrealized Gain on Securities AFS11,07516,541
Bank Premises and Equipment23,68922,091
Accrued Interest Receivable6,0046,168
Goodwill2,7142,714
Other Assets 73,617 68,568
 
Total Assets
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