Century Bancorp, Inc. (NASDAQ:CNBKA) (www.centurybank.com) (“the
Company”) today announced net income of $22,276,000 for the nine
months ended September 30, 2017, or $4.00 per Class A share
diluted, an increase of 23.5% compared to net income of
$18,034,000, or $3.24 per Class A share diluted, for the same
period a year ago. Total assets increased 2.1% from $4.46 billion
at December 31, 2016 to $4.56 billion at September 30, 2017. For
the quarter ended September 30, 2017, net income totaled $8,023,000
or $1.44 per Class A share diluted, an increase of 23.7% compared
to net income of $6,486,000, or $1.16 per Class A share diluted,
for the same period a year ago.
Net interest income totaled $63.9 million for the nine months
ended September 30, 2017 compared to $55.3 million for the same
period in 2016. The 15.5% 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 2.15% on a fully taxable equivalent basis in 2016 to
2.24% 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 9.6%
combined with a similar increase in average deposits. Also,
interest expense increased 20.1% primarily as a result of an
increase in rates and an increase in deposit balances.
The provision for loan losses increased by $165,000 from
$1,175,000 for the nine months ended September 30, 2016 to
$1,340,000 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 0.2%
for the first nine months of 2016 to 5.6% for the same period in
2017 primarily as a result of an increase in taxable income.
At September 30, 2017, total equity was $262.6 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 6.56% at September 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 September 30, 2017 was $47.17 per share compared to
$43.11 at December 31, 2016.
The Company’s allowance for loan losses was $25.7 million or
1.22% of loans outstanding at September 30, 2017, compared to $24.4
million or 1.27% of loans outstanding at December 31, 2016. The
change in the ratio of the allowance for loan losses to loans
outstanding, when compared to December 31, 2016, was primarily due
to changes in portfolio composition, lower historical loss rates,
and qualitative factor adjustments. Non-performing assets totaled
$1.6 million at September 30, 2017, compared to $1.1 million at
December 31, 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 November
15, 2017 to stockholders of record on November 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) September 30, December 31,
Assets
2017 2016 Cash and Due From Banks $ 57,921 $ 62,400 Federal Funds
Sold and Interest-bearing Deposits In Other Banks 195,212 173,751
Short-term Investments - 3,183 Securities
Available-for-Sale (AFS) 387,790 499,297 Securities
Held-to-Maturity 1,654,908 1,653,986 Federal Home Loan Bank
of Boston stock, at cost 21,937 21,042 Loans: Commercial
& Industrial 702,646 612,503 Municipal 128,412 135,418
Construction & Land Development 16,779 14,928 Commercial Real
Estate 735,844 696,173 Residential Real Estate 272,588 241,357
Consumer and Other 18,594 11,697 Home Equity 237,784
211,857 Total Loans 2,112,647 1,923,933 Less: Allowance for
Loan Losses 25,698 24,406 Net Loans 2,086,949
1,899,527 Bank Premises and Equipment, net 23,932 23,417
Accrued Interest Receivable 9,926 9,645 Goodwill 2,714 2,714 Other
Assets 116,783 113,646 Total Assets $
4,558,072 $ 4,462,608
Liabilities
Demand Deposits $ 702,527 $ 689,286 Interest Bearing
Deposits: Savings and NOW Deposits 1,276,135 1,304,394 Money Market
Accounts 1,019,741 1,181,179 Time Deposits 607,279
478,359 Total Interest Bearing Deposits 2,903,155
2,963,932 Total Deposits 3,605,682 3,653,218
Borrowed Funds: Securities Sold Under Agreements to Repurchase
228,848 182,280 Other Borrowed Funds 358,000 293,000
Total Borrowed Funds 586,848 475,280 Other
Liabilities 66,811 57,986 Subordinated Debentures 36,083
36,083 Total Liabilities 4,295,424 4,222,567
Total Stockholders' Equity 262,648 240,041
Total Liabilities & Stockholders' Equity $ 4,558,072 $
4,462,608
Century Bancorp, Inc. and Subsidiaries Consolidated
Comparative Statements of Income (unaudited) For the quarter and
nine months ended September 30, 2017 and 2016 (in thousands)
Quarter ended September 30, Nine months ended September 30, 2017
2016 2017 2016 Interest Income:
Loans $ 16,658 $ 15,045 $ 48,668 $ 43,380 Securities
Held-to-Maturity 9,447 8,238 28,806 24,178 Securities
Available-for-Sale 1,809 1,439 5,143 3,546 Federal Funds Sold and
Interest-bearing Deposits In Other Banks 607 283
1,349 906 Total Interest Income 28,521
25,005 83,966 72,010 Interest Expense: Savings and NOW
Deposits 1,727 1,083 4,454 2,859 Money Market Accounts 1,395 909
3,903 2,485 Time Deposits 2,095 1,464 5,648 4,216 Securities Sold
Under Agreements to Repurchase 129 122 352 363 Other Borrowed Funds
and Subordinated Debentures 1,822 2,213
5,695 6,767 Total Interest Expense 7,168
5,791 20,052 16,690 Net Interest
Income 21,353 19,214 63,914 55,320 Provision For Loan Losses
450 375 1,340 1,175 Net
Interest Income After Provision for Loan Losses 20,903 18,839
62,574 54,145 Other Operating Income Service Charges on
Deposit Accounts 2,089 1,983 6,179 5,882 Lockbox Fees 735 759 2,367
2,431 Net Gain on Sales of Loans - 533 370 1,331 Other Income
1,118 950 3,226 2,878
Total Other Operating Income 3,942 4,225 12,142 12,522
Operating Expenses Salaries and Employee Benefits 10,282 10,544
32,144 30,360 Occupancy 1,427 1,509 4,663 4,639 Equipment 782 772
2,245 2,087 FDIC Assessment 340 343 1,218 1,503 Other 3,374
3,462 10,857 10,012 Total
Operating Expenses 16,205 16,630 51,127
48,601 Income Before Income Taxes 8,640 6,434 23,589
18,066 Income Tax (Benefit) Expense 617 (52 )
1,313 32 Net Income $ 8,023 $ 6,486 $
22,276 $ 18,034 Century Bancorp,
Inc. and Subsidiaries Consolidated Year-to-Date Average Comparative
Statements of Condition (unaudited) (in thousands) September 30,
September 30,
Assets
2017 2016 Cash and Due From Banks $ 72,206 $ 69,792 Federal Funds
Sold and Interest-Bearing Deposits in Other Banks 177,233 233,531
Securities Available-For-Sale (AFS) 481,550 486,120
Securities Held-to-Maturity (HTM) 1,739,189 1,504,728 Total
Loans 2,036,198 1,819,727 Less: Allowance for Loan Losses
25,089 23,714 Net Loans 2,011,109
1,796,013 Unrealized (Loss)Gain on Securities AFS and HTM
Transfers (6,750 ) (9,873 ) Bank Premises and Equipment 23,404
23,752 Accrued Interest Receivable 10,261 8,322 Goodwill 2,714
2,714 Other Assets 118,359 112,864
Total Assets $ 4,629,275 $ 4,227,963
Liabilities
Demand Deposits $ 676,655 $ 590,669 Interest Bearing
Deposits: Savings and NOW Deposits 1,479,433 1,296,861 Money Market
Accounts 1,100,304 1,011,283 Time Deposits 550,996
450,800 Total Interest Bearing Deposits
3,130,733 2,758,944 Total Deposits
3,807,388 3,349,613 Borrowed Funds: Securities Sold Under
Agreements to Repurchase 193,519 229,668 Other Borrowed Funds
281,097 331,555 Total Borrowed
Funds 474,616 561,223 Other Liabilities 60,274 57,150
Subordinated Debentures 36,083 36,083
Total Liabilities 4,378,361 4,004,069 Total
Stockholders' Equity 250,914 223,894
Total Liabilities & Stockholders' Equity $ 4,629,275
$ 4,227,963 Total Average Earning Assets - QTD
$ 4,378,433 $ 4,225,093 Total Average Earning
Assets - YTD $ 4,434,170 $ 4,044,106
Century Bancorp, Inc. and Subsidiaries
Consolidated Selected Key Financial Information (unaudited) (in
thousands, except share data) September 30, September 30,
2017 2016
Performance
Measures:
Earnings per average Class A share, diluted, quarter $ 1.44
$ 1.16 Earnings per average Class A share, diluted, year-to-date $
4.00 $ 3.24 Return on average assets, year-to-date 0.64 % 0.57 %
Return on average stockholders' equity, year-to-date 11.87 % 10.76
% Net interest margin (taxable equivalent), quarter 2.26 % 2.12 %
Net interest margin (taxable equivalent), year-to-date 2.24 % 2.15
% Efficiency ratio, year-to-date - Non-GAAP (1) 59.1 % 62.7 % Book
value per share $ 47.17 $ 41.99 Tangible book value per share -
Non-GAAP (1) $ 46.68 $ 41.50 Capital / assets 5.76 % 5.44 %
Tangible capital / tangible assets - Non-GAAP (1) 5.71 % 5.38 %
Common Share Data: Average Class A shares
outstanding, diluted, quarter & year-to-date 5,567,909
5,567,909 Shares outstanding Class A 3,605,829 3,600,729
Shares outstanding Class B 1,962,080 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 1.22 % 1.31 % Nonaccrual
loans $ 1,598 $ 958 Nonperforming assets $ 1,598 $ 958 Loans 90
days past due and still accruing $ - $ - Accruing troubled debt
restructures $ 2,843 $ 4,104 Net (recoveries)charge-offs,
year-to-date $ 48 $ (47 ) Leverage ratio 6.56 % 6.46 %
Common equity tier 1 risk weighted capital ratio 10.53 % 10.74 %
Tier 1 risk weighted capital ratio 11.81 % 12.24 % Total risk
weighted capital ratio 12.83 % 13.28 % Total risk weighted assets $
2,534,210 $ 2,328,304
(1) Non-GAAP Financial
Measures are reconciled in the following tables:
Calculation of Efficiency
ratio: Total operating expenses(numerator) $ 51,127
$ 48,601 Net interest income $ 63,914 $ 55,320
Total other operating income 12,142 12,522 Tax equivalent
adjustment 10,383 9,725 Total
income(denominator) $ 86,439 $ 77,567
Efficiency ratio, year - Non-GAAP 59.1 %
62.7 %
Calculation of tangible book
value per share: Total stockholders' equity $ 262,648 $
233,781 Less: goodwill 2,714 2,714
Tangible stockholders' equity(numerator) $ 259,934 $ 231,067
Total shares outstanding at period end(denominator)
5,567,909 5,567,909 Tangible book value per share - Non-GAAP
$ 46.68 $ 41.50 Book
value per share - GAAP $ 47.17 $
41.99
Calculation of tangible capital / tangible
assets: Total stockholders' equity $ 262,648 $ 233,781
Less: goodwill 2,714 2,714 Tangible
stockholders' equity(numerator) $ 259,934 $ 231,067
Total assets $ 4,558,072 $ 4,298,323 Less: goodwill
2,714 2,714 Tangible assets(denominator) $
4,555,358 $ 4,295,609 Tangible capital /
tangible assets - Non-GAAP 5.71 %
5.38 % Capital / assets - GAAP
5.76 % 5.44 %
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version on businesswire.com: http://www.businesswire.com/news/home/20171010006682/en/
Century Bancorp, Inc.William P. Hornby, CPA,
781-393-4630whornby@centurybank.comFax: 781-393-4071
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