Century Bancorp, Inc. (NASDAQ:CNBKA) (www.centurybank.com) (“the
Company”) today announced net income of $14,253,000 for the six
months ended June 30, 2017, or $2.56 per Class A share diluted, an
increase of 23.4% compared to net income of $11,549,000, or $2.07
per Class A share diluted, for the same period a year ago. Total
assets increased 1.9% from $4.46 billion at December 31, 2016 to
$4.55 billion at June 30, 2017. For the quarter ended June 30,
2017, net income totaled $8,157,000 or $1.47 per Class A share
diluted, an increase of 30.7% compared to net income of $6,241,000,
or $1.12 per Class A share diluted, for the same period a year
ago.
Net interest income totaled $42.6 million for the six months
ended June 30, 2017 compared to $36.1 million for the same period
in 2016. The 17.9% increase in net interest income for the period
is primarily due to an increase in average earning assets and an
increase in the net interest margin. The net interest margin
increased from 2.16% on a fully taxable equivalent basis in 2016 to
2.23% for the same period in 2017. This was primarily the result of
an increase in rates on earning assets and prepayment penalties
collected. The average balances of earning assets increased by
12.9% combined with a similar increase in average deposits. Also,
interest expense increased 18.2% primarily as a result of an
increase in rates and an increase in deposit balances.
The provision for loan losses increased by $90,000 from $800,000
for the six months ended June 30, 2016 to $890,000 for the same
period in 2017, primarily as a result of an increase in loan growth
offset, somewhat, by changes in historical loss factors. The
Company’s effective tax rate increased from 0.7% for the first six
months of 2016 to 4.7% for the same period in 2017 primarily as a
result of an increase in taxable income.
At June 30, 2017, total equity was $254.6 million compared to
$240.0 million at December 31, 2016. 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 primarily
as a result of a decrease in unrealized losses on securities
transferred from available-for-sale to held-to-maturity, a decrease
in unrealized losses on securities available-for-sale, and
amortization of the pension liability.
The Company’s leverage ratio stood at 6.31% at June 30, 2017,
compared to 6.28% at December 31, 2016. The increase in the
leverage ratio was due to an increase in stockholders’ equity,
offset somewhat by an increase in quarterly average assets. Book
value as of June 30, 2017 was $45.73 per share compared to $43.11
at December 31, 2016.
The Company’s allowance for loan losses was $25.3 million or
1.24% of loans outstanding at June 30, 2017, compared to $24.4
million or 1.27% of loans outstanding at December 31, 2016 and
$23.9 million or 1.32% of loans outstanding at June 30, 2016. The
change in the ratio of the allowance for loan losses to loans
outstanding, when compared to June 30, 2016, was primarily due to
changes in portfolio composition and lower historical loss rates.
Non-performing assets totaled $1.1 million at June 30, 2017,
compared to $1.1 million at December 31, 2016 and $1.5 million at
June 30, 2016.
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, 2017 to stockholders of record on August 1, 2017.
The Company, through its subsidiary bank, Century Bank and Trust
Company, a state chartered full service commercial bank, operating
twenty-seven 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
2017 2016 Cash and Due From Banks $ 74,787 $ 62,400 Federal Funds
Sold and Interest-bearing Deposits In Other Banks 153,374 173,751
Short-term Investments - 3,183 Securities
Available-for-Sale (AFS) 411,340 499,297 Securities
Held-to-Maturity 1,722,875 1,653,986 Federal Home Loan Bank
of Boston stock, at cost 25,588 21,042 Loans: Commercial
& Industrial 650,542 612,503 Municipal 127,259 135,418
Construction & Land Development 14,159 14,928 Commercial Real
Estate 736,603 696,173 Residential Real Estate 264,744 241,357
Consumer and Other 11,218 11,697 Home Equity 229,274
211,857 Total Loans 2,033,799 1,923,933 Less: Allowance for
Loan Losses 25,289 24,406 Net Loans 2,008,510
1,899,527 Bank Premises and Equipment, net 23,177 23,417
Accrued Interest Receivable 10,309 9,645 Goodwill 2,714 2,714 Other
Assets 116,563 113,646 Total Assets $
4,549,237 $ 4,462,608
Liabilities
Demand Deposits $ 687,219 $ 689,286 Interest Bearing
Deposits: Savings and NOW Deposits 1,409,327 1,304,394 Money Market
Accounts 897,241 1,181,179 Time Deposits 575,410
478,359 Total Interest Bearing Deposits 2,881,978
2,963,932 Total Deposits 3,569,197 3,653,218
Borrowed Funds: Securities Sold Under Agreements to Repurchase
167,340 182,280 Other Borrowed Funds 455,500 293,000
Total Borrowed Funds 622,840 475,280 Other
Liabilities 66,492 57,986 Subordinated Debentures 36,083
36,083 Total Liabilities 4,294,612 4,222,567
Total Stockholders' Equity 254,625 240,041
Total Liabilities & Stockholders' Equity $ 4,549,237 $
4,462,608
Century Bancorp, Inc. and Subsidiaries Consolidated Comparative
Statements of Income (unaudited) For the quarter and six months
ended June 30, 2017 and 2016 (in thousands) Quarter ended
June 30, Six months ended June 30, 2017 2016
2017 2016 Interest Income: Loans $ 16,910 $
14,162 $ 32,010 $ 28,335 Securities Held-to-Maturity 9,824 8,128
19,359 15,940 Securities Available-for-Sale 1,723 1,144 3,334 2,107
Federal Funds Sold and Interest-bearing Deposits In Other Banks
349 308 742 623 Total Interest
Income 28,806 23,742 55,445 47,005 Interest Expense: Savings
and NOW Deposits 1,500 938 2,727 1,776 Money Market Accounts 1,234
781 2,508 1,576 Time Deposits 1,902 1,394 3,553 2,752 Securities
Sold Under Agreements to Repurchase 120 126 223 241 Other Borrowed
Funds and Subordinated Debentures 1,945 2,247
3,873 4,554 Total Interest Expense 6,701
5,486 12,884 10,899 Net Interest Income
22,105 18,256 42,561 36,106 Provision For Loan Losses
490 350 890 800 Net Interest Income
After Provision for Loan Losses 21,615 17,906 41,671 35,306
Other Operating Income Service Charges on Deposit Accounts 2,074
1,962 4,090 3,899 Lockbox Fees 861 883 1,632 1,672 Net Gain on
Sales of Loans 269 798 370 798 Other Income 1,087
1,000 2,108 1,928 Total Other Operating Income
4,291 4,643 8,200 8,297 Operating Expenses Salaries and
Employee Benefits 10,719 10,040 21,862 19,816 Occupancy 1,495 1,551
3,236 3,130 Equipment 757 679 1,463 1,315 FDIC Assessment 440 592
878 1,160 Other 3,786 3,426 7,483 6,549
Total Operating Expenses 17,197 16,288
34,922 31,970 Income Before Income Taxes 8,709 6,261
14,949 11,633 Income Tax (Benefit) Expense 552
20 696 84 Net Income $ 8,157 $ 6,241 $ 14,253
$ 11,549 Century Bancorp, Inc. and
Subsidiaries Consolidated Year-to-Date Average Comparative
Statements of Condition (unaudited) (in thousands) June 30, June
30,
Assets
2017 2016 Cash and Due From Banks $ 73,301 $ 69,805 Federal Funds
Sold and Interest-Bearing Deposits in Other Banks 170,604 242,004
Securities Available-For-Sale (AFS) 512,153 443,409
Securities Held-to-Maturity (HTM) 1,761,470 1,477,252 Total
Loans 2,018,274 1,789,952 Less: Allowance for Loan Losses
24,849 23,524 Net Loans 1,993,425
1,766,428 Unrealized (Loss)Gain on Securities AFS and HTM
Transfers (7,207 ) (10,324 ) Bank Premises and Equipment 23,437
23,892 Accrued Interest Receivable 10,261 8,124 Goodwill 2,714
2,714 Other Assets 118,137 111,848
Total Assets $ 4,658,295 $ 4,135,152
Liabilities
Demand Deposits $ 670,241 $ 573,303 Interest Bearing
Deposits: Savings and NOW Deposits 1,494,059 1,258,231 Money Market
Accounts 1,140,030 983,562 Time Deposits 529,038
448,890 Total Interest Bearing Deposits
3,163,127 2,690,683 Total Deposits
3,833,368 3,263,986 Borrowed Funds: Securities Sold Under
Agreements to Repurchase 198,394 227,888 Other Borrowed Funds
283,964 329,731 Total Borrowed
Funds 482,358 557,619 Other Liabilities 59,506 56,817
Subordinated Debentures 36,083 36,083
Total Liabilities 4,411,315 3,914,505 Total
Stockholders' Equity 246,980 220,647
Total Liabilities & Stockholders' Equity $ 4,658,295
$ 4,135,152 Total Average Earning Assets - QTD
$ 4,450,981 $ 4,023,022 Total Average Earning
Assets - YTD $ 4,462,501 $ 3,952,617
Century Bancorp, Inc. and Subsidiaries Consolidated
Selected Key Financial Information (unaudited) (in thousands,
except share data) June 30, June 30, 2017 2016
Performance
Measures:
Earnings per average Class A share, diluted, quarter $ 1.47
$ 1.12 Earnings per average Class A share, diluted, year-to-date $
2.56 $ 2.07 Return on average assets, year-to-date 0.62 % 0.56 %
Return on average stockholders' equity, year-to-date 11.64 % 10.53
% Net interest margin (taxable equivalent), quarter 2.31 % 2.15 %
Net interest margin (taxable equivalent), year-to-date 2.23 % 2.16
% Efficiency ratio, year-to-date - Non-GAAP (1) 60.6 % 62.9 % Book
value per share $ 45.73 $ 40.80 Tangible book value per share -
Non-GAAP (1) $ 45.24 $ 40.32 Capital / assets 5.60 % 5.42 %
Tangible capital / tangible assets - Non-GAAP (1) 5.54 % 5.36 %
Common Share Data: Average Class A shares
outstanding, diluted, quarter & year-to-date 5,567,909
5,567,909 Shares outstanding Class A 3,603,729 3,600,729
Shares outstanding Class B 1,964,180 1,967,180
Total shares outstanding at period end 5,567,909
5,567,909
Asset Quality and
Other Data:
Allowance for loan losses / loans 1.24 % 1.32 % Nonaccrual
loans $ 1,122 $ 1,486 Nonperforming assets $ 1,122 $ 1,486 Loans 90
days past due and still accruing $ - $ - Accruing troubled debt
restructures $ 2,872 $ 4,146 Net (recoveries)charge-offs,
year-to-date $ 7 $ (72 ) Leverage ratio 6.31 % 6.63 % Common
equity tier 1 risk weighted capital ratio 10.43 % 10.59 % Tier 1
risk weighted capital ratio 11.74 % 12.11 % Total risk weighted
capital ratio 12.76 % 13.14 % Total risk weighted assets $
2,490,113 $ 2,304,563
(1) Non-GAAP Financial
Measures are reconciled in the following tables:
Calculation of Efficiency ratio: Total
operating expenses(numerator) $ 34,922 $ 31,970
Net interest income $ 42,561 $ 36,106 Total other operating
income 8,200 8,297 Tax equivalent adjustment 6,827
6,387 Total income(denominator) $ 57,588 $
50,790 Efficiency ratio, year - Non-GAAP
60.6 % 62.9 %
Calculation of tangible book value per share: Total
stockholders' equity $ 254,625 $ 227,186 Less: goodwill
2,714 2,714 Tangible stockholders'
equity(numerator) $ 251,911 $ 224,472 Total
shares outstanding at period end(denominator) 5,567,909 5,567,909
Tangible book value per share - Non-GAAP $
45.24 $ 40.32 Book value per share -
GAAP $ 45.73 $ 40.80
Calculation of tangible capital / tangible assets:
Total stockholders' equity $ 254,625 $ 227,186 Less:
goodwill 2,714 2,714 Tangible
stockholders' equity(numerator) $ 251,911 $ 224,472
Total assets $ 4,549,237 $ 4,190,312 Less: goodwill
2,714 2,714 Tangible assets(denominator) $
4,546,523 $ 4,187,598 Tangible capital /
tangible assets - Non-GAAP 5.54 %
5.36 % Capital / assets - GAAP
5.60 % 5.42 %
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version on businesswire.com: http://www.businesswire.com/news/home/20170711006407/en/
Century Bancorp, Inc.William P. Hornby, CPA,
781-393-4630whornby@centurybank.comFax: 781-393-4071
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