News Column

Century Bancorp, Inc. Announces 4th Consecutive Year of Record Earnings for 2013, Up 5%; Asset Growth of 11% to Record Size of $3.4 BB; Regular Dividend Declared

January 21, 2014

MEDFORD, Mass. --(BUSINESS WIRE)-- Century Bancorp, Inc. (NASDAQ:CNBKA) ( www.centurybank.com ) (“the Company”) today announced net income of $20,046,000 for the year ended December 31, 2013 , or $3.61 per Class A share diluted, an increase of 5.3% compared to net income of $19,039,000 , or $3.43 per Class A share diluted, for the same period a year ago. Total assets increased 11.2% from $3.1 billion at December 31, 2012 to $3.4 billion at December 31, 2013 . For the quarter ended December 31, 2013 , net income totaled $5,025,000 , or $0.90 per Class A share diluted, an increase of 5.2% compared to net income of $4,778,000 , or $0.86 per Class A share diluted, for the same period a year ago. Net interest income totaled $61.0 million for the year ended December 31, 2013 compared to $62.0 million for the same period in 2012. The 1.6% decrease in net interest income for the period is primarily due to $3.3 million of prepayment penalties collected during 2012 compared to $491,000 for 2013. The net interest margin decreased from 2.51% 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 13.6% increase in the average balances of earning assets, combined with a similar increase in average deposits. The provision for loan losses decreased by $1.4 million from $4.2 million for the year ended December 31, 2012 to $2.7 million for the year ended December 31, 2013 , primarily as a result of a lower level of charge-off activity and changes in portfolio composition. The Company capitalized on favorable market conditions for the year ended December 31, 2013 and realized net gains on sales of investments of $3.0 million , as compared to $1.8 million for the same period in 2012. The Company’s effective tax rate decreased from 6.8% in 2012 to 4.8% in 2013 primarily as a result of an increase in tax-exempt income. At December 31, 2013 , total equity was $176.5 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 and securities transferred from available-for-sale to held-to-maturity, offset, somewhat, by a decrease in the additional pension liability, net of taxes. Unrealized losses increased as a result of increases in interest rates. During the third quarter of 2013, $987.0 million of securities available-for-sale with unrealized losses of $25.3 million were transferred to securities held-to-maturity. This was done in response to rising interest rates. The additional pension liability decreased mainly as a result of an increase in pension assets and decrease in the projected benefit obligation on the defined benefit pension plan. The Company’s leverage ratio stood at 6.50% at December 31, 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 December 31, 2013 was $31.76 per share compared to $32.40 at December 31, 2012 . The Company’s allowance for loan losses was $20.9 million or 1.66% of loans outstanding at December 31, 2013 , compared to $19.2 million or 1.73% of loans outstanding at December 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 $2.5 million at December 31, 2013 , compared to $4.5 million at December 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 February 18, 2014 to stockholders of record on February 3, 2014 . The Company, through its subsidiary bank, Century Bank and Trust Company , a state chartered full service commercial bank, operating twenty-six 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 2013 2012 Cash and Due From Banks $ 59,956 $ 53,646 Federal Funds Sold and Interest-bearing Deposits In Other Banks 34,722 98,637 Short-term Investments 4,617 17,367 Securities Available-For-Sale (AFS) 464,245 1,434,801 Securities Held-to-Maturity 1,487,884 275,507 Federal Home Loan Bank of Boston stock, at cost 18,072 15,146 Loans: Commercial & Industrial 92,402 88,475 Construction & Land Development 33,058 38,618 Commercial Real Estate 713,327 576,465 Residential Real Estate 286,041 281,857 Consumer and Other 9,658 7,450 Home Equity 130,277 118,923 Total Loans 1,264,763 1,111,788 Less: Allowance for Loan Losses 20,941 19,197 Net Loans 1,243,822 1,092,591 Bank Premises and Equipment 23,400 23,899 Accrued Interest Receivable 6,539 5,811 Goodwill 2,714 2,714 Other Assets 85,183 66,090 Total Assets $ 3,431,154 $ 3,086,209 Liabilities Demand Deposits $ 475,862 $ 438,429 Interest Bearing Deposits: Savings and NOW Deposits 992,796 933,316 Money Market Accounts 864,957 653,345 Time Deposits 382,224 419,983 Total Interest Bearing Deposits 2,239,977 2,006,644 Total Deposits 2,715,839 2,445,073 Borrowed Funds: Securities Sold Under Agreements to Repurchase 214,440 191,390 Other Borrowed Funds 255,144 195,144 Total Borrowed Funds 469,584 386,534 Other Liabilities 33,176 38,529 Subordinated Debentures 36,083 36,083 Total Liabilities 3,254,682 2,906,219 Total Stockholders' Equity 176,472 179,990 Total Liabilities & Stockholders' Equity $ 3,431,154 $ 3,086,209 Century Bancorp, Inc. and Subsidiaries Consolidated Comparative Statements of Income (unaudited) For the Quarter and Year ended December 31, 2013 and 2012 (in thousands) Quarter ended December 31 , Year ended December 31 , 2013 2012 2013 2012 Interest Income: Loans $ 12,562 $ 12,301 $ 49,296 $ 51,415 Securities Held-to-Maturity 7,495 1,615 16,615 6,746 Securities Available-for-Sale 789 5,649 13,369 22,703 Federal Funds Sold and Interest-bearing Deposits In Other Banks 101 173 485 630 Total Interest Income 20,947 19,738 79,765 81,494 Interest Expense: Savings and NOW Deposits 652 601 2,585 2,250 Money Market Accounts 677 540 2,472 2,373 Time Deposits 1,120 1,476 4,777 6,250 Securities Sold Under Agreements to Repurchase 93 93 361 367 Other Borrowed Funds and Subordinated Debentures 2,300 2,085 8,610 8,300 Total Interest Expense 4,842 4,795 18,805 19,540 Net Interest Income 16,105 14,943 60,960 61,954 Provision For Loan Losses 460 900 2,710 4,150 Net Interest Income After Provision for Loan Losses 15,645 14,043 58,250 57,804 Other Operating Income Service Charges on Deposit Accounts 2,073 1,993 8,113 7,880 Lockbox Fees 733 705 3,079 2,930 Net Gain on Sales of Investments 354 724 3,019 1,843 Net Gain on Sales of Loans 326 1 1,564 297 Other Income 700 730 2,840 2,915 Total Other Operating Income 4,186 4,153 18,615 15,865 Operating Expenses Salaries and Employee Benefits 9,386 8,211 35,244 32,943 Occupancy 1,285 1,236 5,000 4,695 Equipment 552 501 2,298 2,255 FDIC Assessment 478 435 1,790 1,737 Other 2,989 2,896 11,480 11,608 Total Operating Expenses 14,690 13,279 55,812 53,238 Income Before Income Taxes 5,141 4,917 21,053 20,431 Income Tax Expense 116 139 1,007 1,392 Net Income $ 5,025 $ 4,778 $ 20,046 $ 19,039 Century Bancorp, Inc. and Subsidiaries Consolidated Year-to-Date Average Comparative Statements of Condition (unaudited) (in thousands) December 31 , December 31 , Assets 2013 2012 Cash and Due From Banks $ 59,603 $ 54,572 Federal Funds Sold and Interest-Bearing Deposits in Other Banks 174,264 219,540 Securities Available-For-Sale (AFS) 997,983 1,263,375 Securities Held-to-Maturity (HTM) 812,448 270,525 Total Loans 1,184,912 1,036,296 Less: Allowance for Loan Losses 20,452 18,039 Net Loans 1,164,460 1,018,257 Unrealized (Loss)Gain on Securities AFS and HTM Transfers (6,236 ) 18,362 Bank Premises and Equipment 23,551 22,804 Accrued Interest Receivable 6,247 6,091 Goodwill 2,714 2,714 Other Assets 81,121 68,205 Total Assets $ 3,316,155 $ 2,944,445 Liabilities Demand Deposits $ 441,193 $ 386,863 Interest Bearing Deposits: Savings and NOW Deposits 1,037,320 870,046 Money Market Accounts 800,052 666,949 Time Deposits 387,514 418,789 Total Interest Bearing Deposits 2,224,886 1,955,784 Total Deposits 2,666,079 2,342,647 Borrowed Funds: Securities Sold Under Agreements to Repurchase 203,888 174,624 Other Borrowed Funds 194,949 181,459 Total Borrowed Funds 398,837 356,083 Other Liabilities 42,017 37,497 Subordinated Debentures 36,083 36,083 Total Liabilities 3,143,016 2,772,310 Total Stockholders' Equity 173,139 172,135 Total Liabilities & Stockholders' Equity $ 3,316,155 $ 2,944,445 Total Average Earning Assets - QTD $ 3,342,186 $ 2,938,890 Total Average Earning Assets - YTD $ 3,169,607 $ 2,789,736 Century Bancorp, Inc. and Subsidiaries Consolidated Selected Key Financial Information (unaudited) (in thousands, except share data) December 31 , December 31 , 2013 2012 Performance Measures: Earnings per average Class A share, diluted, quarter $ 0.90 $ 0.86 Earnings per average Class A share, diluted, year-to-date $ 3.61 $ 3.43 Return on average assets, year-to-date 0.60 % 0.65 % Return on average stockholders' equity, year-to-date 11.58 % 11.06 % Net interest margin (taxable equivalent), quarter 2.20 % 2.30 % Net interest margin (taxable equivalent), year-to-date 2.21 % 2.51 % Efficiency ratio, year-to-date 63.0 % 62.1 % Book value per share $ 31.76 $ 32.40 Tangible book value per share $ 31.27 $ 31.91 Tangible capital / tangible assets 5.07 % 5.75 % Common Share Data: Average Class A shares outstanding, diluted, quarter 5,557,419 5,552,121 Average Class A shares outstanding, diluted, year-to-date 5,557,693 5,549,191 Shares outstanding Class A 3,580,404 3,568,079 Shares outstanding Class B 1,976,180 1,986,880 Total shares outstanding at period end 5,556,584 5,554,959 Asset Quality and Other Data: Allowance for loan losses / loans 1.66 % 1.73 % Nonaccrual loans $ 2,549 $ 4,471 Nonperforming assets $ 2,549 $ 4,471 Loans 90 days past due and still accruing $ - $ - Accruing troubled debt restructures $ 5,969 $ 3,048 Net charge-offs, year-to-date $ 966 $ 1,527 Leverage ratio 6.50 % 6.80 % Tier 1 risk weighted capital ratio 13.67 % 14.34 % Total risk weighted capital ratio 14.92 % 15.59 % Total risk weighted assets $ 1,660,881 $ 1,462,197 Century Bancorp, Inc. William P. Hornby , CPA, 781-393-4630 Fax: 781-393-4071 whornby@centurybank.com Source: Century Bancorp, Inc.


For more stories on investments and markets, please see HispanicBusiness' Finance Channel



Source: Business Wire


Story Tools