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. (NASDAQ: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
2012
2011
Cash and Due From Banks
$
53,646
$
50,187
Federal Funds Sold and Interest-bearing Deposits In Other Banks
98,637
157,579
Short-term Investments
17,367
18,351
Securities Available-For-Sale (AFS)
1,434,801
1,258,676
Securities Held-to-Maturity
275,507
179,368
Federal Home Loan Bank of Boston stock, at cost
15,146
15,531
Loans:
Commercial & Industrial
88,475
82,404
Construction & Land Development
38,618
56,819
Commercial Real Estate
576,465
487,495
Residential Real Estate
281,857
239,307
Consumer and Other
7,450
7,681
Home Equity
118,923
110,786
Total Loans
1,111,788
984,492
Less: Allowance for Loan Losses
19,197
16,574
Net Loans
1,092,591
967,918
Bank Premises and Equipment
23,899
21,757
Accrued Interest Receivable
5,811
6,022
Goodwill
2,714
2,714
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 Deposits
933,316
708,988
Money Market Accounts
653,345
616,241
Time Deposits
419,983
433,501
Total Interest Bearing Deposits
2,006,644
1,758,730
Total Deposits
2,445,073
2,124,584
Borrowed Funds:
Securities Sold Under Agreements to Repurchase
191,390
143,320
Other Borrowed Funds
195,144
244,143
Total Borrowed Funds
386,534
387,463
Other Liabilities
38,529
34,446
Subordinated Debentures
36,083
36,083
Total Liabilities
2,906,219
2,582,576
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
2011
2012
2011
Interest Income:
Loans
$
12,301
$
11,949
$
51,415
$
48,096
Securities Held-to-Maturity
1,615
1,221
6,746
5,816
Securities Available-for-Sale
5,649
5,935
22,703
23,039
Federal Funds Sold and Interest-bearing Deposits In Other Banks
173
147
630
1,114
Total Interest Income
19,738
19,252
81,494
78,065
Interest Expense:
Savings and NOW Deposits
601
525
2,250
2,539
Money Market Accounts
540
588
2,373
2,706
Time Deposits
1,476
2,071
6,250
9,356
Securities Sold Under Agreements to Repurchase
93
89
367
379
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 Income
14,943
14,019
61,954
55,299
Provision For Loan Losses
900
950
4,150
4,550
Net Interest Income After
Provision for Loan Losses
14,043
13,069
57,804
50,749
Other Operating Income
Service Charges on Deposit Accounts
1,993
2,031
7,880
7,885
Lockbox Fees
705
641
2,930
2,770
Net Gain on Sales of Investments
724
695
1,843
1,940
Other Income
731
994
3,212
3,645
Total Other Operating Income
4,153
4,361
15,865
16,240
Operating Expenses
Salaries and Employee Benefits
8,211
7,682
32,943
29,630
Occupancy
1,236
1,126
4,695
4,411
Equipment
501
535
2,255
2,235
FDIC Assessment
435
413
1,737
2,025
Other
2,896
2,946
11,608
10,441
Total Operating Expenses
13,279
12,702
53,238
48,742
Income Before Income Taxes
4,917
4,728
20,431
18,247
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
2012
2011
Cash and Due From Banks
$
54,572
$
51,963
Federal Funds Sold and Interest-Bearing Deposits in Other Banks
219,540
276,413
Securities Available-For-Sale (AFS)
1,263,375
1,099,099
Securities Held-to-Maturity
270,525
178,659
Total Loans
1,036,296
948,883
Less: Allowance for Loan Losses
18,039
15,767
Net Loans
1,018,257
933,116
Unrealized Gain on Securities AFS
18,362
11,004
Bank Premises and Equipment
22,804
21,537
Accrued Interest Receivable
6,091
6,658
Goodwill
2,714
2,714
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 Deposits
870,046
735,022
Money Market Accounts
666,949
584,059
Time Deposits
418,789
484,142
Total Interest Bearing Deposits
1,955,784
1,803,223
Total Deposits
2,342,647
2,129,325
Borrowed Funds:
Securities Sold Under Agreements to Repurchase
174,624
129,137
Other Borrowed Funds
181,459
166,126
Total Borrowed Funds
356,083
295,263
Other Liabilities
37,497
29,253
Subordinated Debentures
36,083
36,083
Total Liabilities
2,772,310
2,489,924
Total Stockholders' Equity
172,135
155,660
Total Liabilities & Stockholders' Equity
$
2,944,445
$
2,645,584
Total Average Earning Assets - QTD
$
2,938,890
$
2,570,937
Total Average Earning Assets - YTD
$
2,789,736
$
2,503,054
Century Bancorp, Inc. and Subsidiaries
Consolidated Selected Key Financial Information (unaudited)
(in thousands, except share data)
December 31,
December 31,
2012
2011
Performance Measures:
Earnings per average Class A share, diluted, quarter
$
0.86
$
0.76
Earnings per average Class A share, diluted, year-to-date
$
3.43
$
3.01
Return on average assets, year-to-date
0.65
%
0.63
%
Return on average stockholders' equity, year-to-date
11.06
%
10.72
%
Net interest margin (taxable equivalent), quarter
2.30
%
2.44
%
Net interest margin (taxable equivalent), year-to-date
2.51
%
2.48
%
Efficiency ratio, year-to-date
62.1
%
62.2
%
Book value per share
$
32.40
$
28.98
Tangible book value per share
$
31.91
$
28.47
Tangible capital / tangible assets
5.75
%
5.76
%
Common Share Data:
Average Class A shares outstanding, diluted, quarter
5,552,121
5,542,052
Average Class A shares outstanding, diluted, year-to-date
5,549,191
5,541,794
Shares outstanding Class A
3,568,079
3,548,317
Shares outstanding Class B
1,986,880
1,994,380
Total shares outstanding at period end
5,554,959
5,542,697
Asset Quality and Other Data:
Allowance for loan losses / loans
1.73
%
1.68
%
Nonaccrual loans
$
4,471
$
5,827
Nonperforming assets
$
4,471
$
7,009
Loans 90 days past due and still accruing
$
-
$
18
Accruing troubled debt restructures
$
3,048
$
4,634
Net charge-offs, year-to-date
$
1,527
$
2,029
Leverage ratio
6.80
%
7.12
%
Tier 1 risk weighted capital ratio
14.34
%
14.73
%
Total risk weighted capital ratio
15.59
%
15.98
%
Total risk weighted assets
$
1,462,197
$
1,306,874
Century Bancorp, Inc. William P. Hornby, CPA, 781-393-4630 whornby@centurybank.com
Press Release $CNBKA Century Bancorp Inc.
MEDFORD, Mass.--(BUSINESS WIRE)-- Century Bancorp, Inc. (NASDAQ: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.
Assets
Liabilities
Assets
Less: Allowance for Loan Losses
Liabilities
Performance Measures:
Asset Quality and Other Data:
Century Bancorp, Inc.
William P. Hornby, CPA, 781-393-4630
whornby@centurybank.com
Source: Century Bancorp, Inc.