By a News Reporter-Staff News Editor at Investment Weekly News -- Century Bancorp, Inc. (NASDAQ:CNBKA) (www.centurybank.com) ("the Company") announced net income of $10,531,000 for the six months ended June 30, 2014, or $1.89 per Class A share diluted, an increase of 10.8% compared to net income of $9,502,000, or $1.71 per Class A share diluted, for the same period a year ago. Total assets increased 3.7% from $3.4 billion at December 31, 2013 to $3.6 billion at June 30, 2014. For the quarter ended June 30, 2014, net income totaled $5,599,000 or $1.01 per Class A share diluted, an increase of 11.4% compared to net income of $5,026,000, or $0.90 per Class A share diluted, for the same period a year ago.
Net interest income totaled $33.3 million for the six months ended June 30, 2014 compared to $29.1 million for the same period in 2013. The 14.5% increase in net interest income for the period is primarily due to an increase in average earning assets. The net interest margin increased from 2.21% on a fully taxable equivalent basis in 2013 to 2.23% on the same basis for 2014. This was primarily the result of a decrease in rates paid on deposits and borrowed funds. Also, interest expense increased slightly as a result of an increase in deposit balances and there was a 13.3% increase in the average balances of earning assets, combined with a similar increase in average deposits.
The provision for loan losses decreased by $450,000 from $1.5 million for the six months ended June 30, 2013 to $1.1 million for the same period in 2014, primarily as a result of changes in the portfolio composition and changes in qualitative economic factors. There were no realized gains on sales of investments for the six months ended June 30, 2014, as compared to $1.7 million for the same period in 2013. The Company's effective tax rate decreased from 5.8% in 2013 to 4.7% in 2014 primarily as a result of an increase in tax-exempt income.
At June 30, 2014, total equity was $188.3 million compared to $176.5 million at December 31, 2013. The Company's equity increased primarily as a result of earnings and a decrease in other comprehensive loss, net of taxes, offset somewhat by dividends paid. Other comprehensive loss, net of taxes, decreased as a result of a decrease in unrealized losses on securities available-for-sale and securities transferred from available-for-sale to held-to-maturity. 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 Company's leverage ratio stood at 6.47% at June 30, 2014, compared to 6.50% at December 31, 2013. The decrease in the leverage ratio was due to an increase in assets, offset somewhat, by an increase in stockholders' equity. Book value as of June 30, 2014 was $33.88 per share compared to $31.76 at December 31, 2013.
The Company's allowance for loan losses was $21.7 million or 1.65% of loans outstanding at June 30, 2014, compared to $20.9 million or 1.66% of loans outstanding at December 31, 2013 and $20.5 million or 1.76% of loans outstanding at June 30, 2013. The increase in the allowance for loan losses was due to the increase in the size of the loan portfolio. Non-performing assets totaled $2.8 million at June 30, 2014, compared to $2.5 million at December 31, 2013 and $3.3 million at June 30, 2013.
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, 2014 to stockholders of record on August 1, 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.
Keywords for this news article include: Banking and Finance, Century Bancorp Inc.
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