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

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 Banks

197,281

98,637

Short-term Investments

12,111

17,367

Securities Available-For-Sale (AFS)

1,407,260

1,434,801

Securities Held-to-Maturity

260,545

275,507

Federal Home Loan Bank of Boston stock, at cost

14,862

15,146

Loans:

Commercial & Industrial

110,537

88,475

Construction & Land Development

34,021

38,618

Commercial Real Estate

570,441

576,465

Residential Real Estate

292,871

281,857

Consumer and Other

7,910

7,450

Home Equity

121,989

118,923

Total Loans

1,137,769

1,111,788

Less: Allowance for Loan Losses

19,759

19,197

Net Loans

1,118,010

1,092,591

Bank Premises and Equipment

23,669

23,899

Accrued Interest Receivable

6,011

5,811

Goodwill

2,714

2,714

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 Deposits

935,995

933,316

Money Market Accounts

730,791

653,345

Time Deposits

442,980

419,983

Total Interest Bearing Deposits

2,109,766

2,006,644

Total Deposits

2,525,875

2,445,073

Borrowed Funds:

Securities Sold Under Agreements to Repurchase

187,080

191,390

Other Borrowed Funds

182,144

195,144

Total Borrowed Funds

369,224

386,534

Other Liabilities

49,935

38,529

Subordinated Debentures

36,083

36,083

Total Liabilities

2,981,117

2,906,219

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-Maturity

1,520

1,463

Securities Available-for-Sale

5,617

5,715

Federal Funds Sold and Interest-bearing Deposits In Other Banks

119

139

Total Interest Income

19,137

19,365

Interest Expense:

Savings and NOW Deposits

610

534

Money Market Accounts

532

605

Time Deposits

1,334

1,681

Securities Sold Under Agreements to Repurchase

90

92

Other Borrowed Funds and Subordinated Debentures

2,026

2,051

Total Interest Expense

4,592

4,963

Net Interest Income

14,545

14,402

Provision For Loan Losses

750

1,100

Net Interest Income After

Provision for Loan Losses

13,795

13,302

Other Operating Income

Service Charges on Deposit Accounts

1,942

1,988

Lockbox Fees

772

699

Net Gain on Sales of Investments

883

148

Other Income

837

784

Total Other Operating Income

4,434

3,619

Operating Expenses

Salaries and Employee Benefits

8,618

8,141

Occupancy

1,282

1,122

Equipment

582

583

FDIC Assessment

400

407

Other

2,583

2,547

Total Operating Expenses

13,465

12,800

Income Before Income Taxes

4,764

4,121

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 Banks

170,727

186,515

Securities Available-For-Sale (AFS)

1,419,589

1,264,583

Securities Held-to-Maturity

268,199

205,538

Total Loans

1,126,752

986,222

Less: Allowance for Loan Losses

19,503

17,079

Net Loans

1,107,249

969,143

Unrealized Gain on Securities AFS

16,539

15,652

Bank Premises and Equipment

23,806

21,805

Accrued Interest Receivable

6,032

6,188

Goodwill

2,714

2,714

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 Deposits

988,678

796,649

Money Market Accounts

701,837

646,618

Time Deposits

394,669

416,272

Total Interest Bearing Deposits

2,085,184

1,859,539

Total Deposits

2,503,070

2,219,788

Borrowed Funds:

Securities Sold Under Agreements to Repurchase

208,306

155,193

Other Borrowed Funds

174,522

181,825

Total Borrowed Funds

382,828

337,018

Other Liabilities

40,045

36,150

Subordinated Debentures

36,083

36,083

Total Liabilities

2,962,026

2,629,039

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