Century Bancorp, Inc. (NASDAQ:CNBKA) (www.centurybank.com) (“the
Company”) today announced net income of $18,034,000 for the nine
months ended September 30, 2016, or $3.24 per Class A share
diluted, an increase of 5.8% compared to net income of $17,050,000,
or $3.06 per Class A share diluted, for the same period a year ago.
Total assets increased 8.9% from $3.9 billion at December 31, 2015
to $4.3 billion at September 30, 2016. For the quarter ended
September 30, 2016, net income totaled a record $6,486,000 or $1.16
per Class A share diluted, an increase of 5.2% compared to net
income of $6,166,000, or $1.11 per Class A share diluted, for the
same period a year ago.
Net interest income totaled $55.3 million for the nine months
ended September 30, 2016 compared to $52.7 million for the same
period in 2015. The 4.9% increase in net interest income for the
period is primarily due to an increase in average earning assets.
The net interest margin decreased from 2.20% on a fully taxable
equivalent basis for the first nine months of 2015 to 2.15% for the
same period in 2016. This was primarily the result of a decrease in
rates on earning assets. The average balances of earning assets
increased by 9.1% combined with a similar increase in average
deposits. Also, interest expense increased 12.3% as a result of an
increase in deposit balances.
The provision for loan losses increased by $975,000 from
$200,000 for the nine months ended September 30, 2015 to $1,175,000
for the same period in 2016, primarily as a result of an increase
in loan balances. The Company’s effective tax rate decreased from
3.6% in 2015 to 0.2% in 2016 primarily as a result of an increase
in tax-exempt income.
At September 30, 2016, total equity was $233.8 million compared
to $214.5 million at December 31, 2015. 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 and
amortization of the pension liability. This was offset, somewhat,
by an increase in unrealized losses on securities
available-for-sale.
The Company’s leverage ratio stood at 6.46% at September 30,
2016, compared to 6.79% at December 31, 2015. The decrease in the
leverage ratio was due to an increase in quarterly average assets,
offset somewhat by an increase in stockholders’ equity. Book value
as of September 30, 2016 was $41.99 per share compared to $38.53 at
December 31, 2015.
The Company’s allowance for loan losses was $24.2 million or
1.31% of loans outstanding at September 30, 2016, compared to $23.1
million or 1.33% of loans outstanding at December 31, 2015 and
$22.3 million or 1.36% of loans outstanding at September 30, 2015.
The change in the ratio of the allowance for loan losses to loans
outstanding, when compared to September 30, 2015, was primarily due
to changes in portfolio composition. Non-performing assets totaled
$1.0 million at September 30, 2016, compared to $2.3 million at
December 31, 2015 and $1.8 million at September 30, 2015.
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, 2016 to stockholders of record on November 1, 2016.
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
2016 2015 Cash and Due From Banks $ 58,975 $ 52,877 Federal Funds
Sold and Interest-bearing Deposits In Other Banks 159,900 167,847
Short-term Investments 3,241 3,233 Securities
Available-for-Sale (AFS) 526,122 404,623 Securities
Held-to-Maturity 1,565,191 1,438,903 Federal Home Loan Bank
of Boston stock, at cost 21,158 28,807 Loans: Commercial
& Industrial 549,290 452,235 Municipal 145,063 85,685
Construction & Land Development 19,522 27,421 Commercial Real
Estate 692,778 721,506 Residential Real Estate 222,881 255,346
Consumer and Other 11,474 11,323 Home Equity 200,085
178,020 Total Loans 1,841,093 1,731,536 Less: Allowance for
Loan Losses 24,208 23,075 Net Loans 1,816,885
1,708,461 Bank Premises and Equipment, net 23,334 24,106
Accrued Interest Receivable 7,597 8,002 Goodwill 2,714 2,714 Other
Assets 113,206 107,868 Total Assets $
4,298,323 $ 3,947,441
Liabilities
Demand Deposits $ 645,317 $ 541,955 Interest Bearing
Deposits: Savings and NOW Deposits 1,293,995 1,070,585 Money Market
Accounts 1,067,170 989,094 Time Deposits 454,631
473,426 Total Interest Bearing Deposits 2,815,796
2,533,105 Total Deposits 3,461,113 3,075,060
Borrowed Funds: Securities Sold Under Agreements to Repurchase
214,320 197,850 Other Borrowed Funds 293,000 368,000
Total Borrowed Funds 507,320 565,850 Other
Liabilities 60,026 55,904 Subordinated Debentures 36,083
36,083 Total Liabilities 4,064,542 3,732,897
Total Stockholders' Equity 233,781 214,544
Total Liabilities & Stockholders' Equity $ 4,298,323 $
3,947,441
Century Bancorp, Inc. and Subsidiaries Consolidated Comparative
Statements of Income (unaudited) For the Quarter and Nine months
ended September 30, 2016 and 2015 (in thousands) Quarter
ended September 30, Nine months ended September 30, 2016
2015 2016 2015 Interest Income: Loans $ 15,045
$ 14,051 $ 43,380 $ 38,597 Securities Held-to-Maturity 8,238 8,834
24,178 26,373 Securities Available-for-Sale 1,439 830 3,546 2,299
Federal Funds Sold and Interest-bearing Deposits In Other Banks
283 35 906 328 Total
Interest Income 25,005 23,750 72,010 67,597 Interest
Expense: Savings and NOW Deposits 1,083 729 2,859 2,049 Money
Market Accounts 909 760 2,485 2,276 Time Deposits 1,464 1,231 4,216
3,594 Securities Sold Under Agreements to Repurchase 122 129 363
371 Other Borrowed Funds and Subordinated Debentures 2,213
2,285 6,767 6,570 Total Interest
Expense 5,791 5,134 16,690
14,860 Net Interest Income 19,214 18,616 55,320 52,737
Provision For Loan Losses 375 -
1,175 200 Net Interest Income After Provision for
Loan Losses 18,839 18,616 54,145 52,537 Other Operating
Income Service Charges on Deposit Accounts 1,983 1,941 5,882 5,788
Lockbox Fees 759 782 2,431 2,458 Net Gain on Sales of Loans 533 225
1,331 742 Other Income 950 882 2,878
2,557 Total Other Operating Income 4,225 3,830 12,522
11,545 Operating Expenses Salaries and Employee Benefits
10,544 10,087 30,360 28,701 Occupancy 1,509 1,499 4,639 4,621
Equipment 772 697 2,087 1,949 FDIC Assessment 343 554 1,503 1,602
Other 3,462 3,263 10,012 9,531
Total Operating Expenses 16,630 16,100
48,601 46,404 Income Before Income Taxes 6,434
6,346 18,066 17,678 Income Tax (Benefit) Expense (52
) 180 32 628 Net Income $ 6,486
$ 6,166 $ 18,034 $ 17,050
Century Bancorp, Inc. and Subsidiaries
Consolidated Year-to-Date Average Comparative Statements of
Condition (unaudited) (in thousands) September 30, September 30,
Assets
2016 2015 Cash and Due From Banks $ 69,792 $ 67,363 Federal Funds
Sold and Interest-Bearing Deposits in Other Banks 233,531 163,144
Securities Available-For-Sale (AFS) 486,120 462,104
Securities Held-to-Maturity (HTM) 1,504,728 1,640,388 Total
Loans 1,819,727 1,441,589 Less: Allowance for Loan Losses
23,714 22,432 Net Loans 1,796,013
1,419,157 Unrealized (Loss)Gain on Securities AFS and HTM
Transfers (9,873 ) (15,107 ) Bank Premises and Equipment 23,752
24,332 Accrued Interest Receivable 8,322 7,462 Goodwill 2,714 2,714
Other Assets 112,864 102,373
Total Assets $ 4,227,963 $ 3,873,930
Liabilities
Demand Deposits $ 590,669 $ 507,855 Interest Bearing
Deposits: Savings and NOW Deposits 1,296,861 1,134,195 Money Market
Accounts 1,011,283 959,191 Time Deposits 450,800
395,915 Total Interest Bearing Deposits
2,758,944 2,489,301 Total Deposits
3,349,613 2,997,156 Borrowed Funds: Securities Sold Under
Agreements to Repurchase 229,668 254,521 Other Borrowed Funds
331,555 334,069 Total Borrowed
Funds 561,223 588,590 Other Liabilities 57,150 50,908
Subordinated Debentures 36,083 36,083
Total Liabilities 4,004,069 3,672,737 Total
Stockholders' Equity 223,894 201,193
Total Liabilities & Stockholders' Equity $ 4,227,963
$ 3,873,930 Total Average Earning Assets - QTD
$ 4,225,093 $ 3,745,957 Total Average Earning
Assets - YTD $ 4,044,106 $ 3,707,225
Century Bancorp, Inc. and Subsidiaries
Consolidated Selected Key Financial Information (unaudited) (in
thousands, except share data) September 30, September 30, 2016 2015
Performance
Measures:
Earnings per average Class A share, diluted, quarter $ 1.16
$ 1.11 Earnings per average Class A share, diluted, year-to-date $
3.24 $ 3.06 Return on average assets, year-to-date 0.57 % 0.59 %
Return on average stockholders' equity, year-to-date 10.76 % 11.33
% Net interest margin (taxable equivalent), quarter 2.12 % 2.28 %
Net interest margin (taxable equivalent), year-to-date 2.15 % 2.20
% Efficiency ratio, year-to-date - Non-GAAP (1) 62.7 % 64.0 % Book
value per share $ 41.99 $ 37.92 Tangible book value per share -
Non-GAAP (1) $ 41.50 $ 37.43 Capital / assets 5.44 % 5.47 %
Tangible capital / tangible assets - Non-GAAP (1) 5.38 % 5.41 %
Common Share Data: Average Class A shares
outstanding, diluted, quarter & year-to-date 5,567,909
5,567,909 Shares outstanding Class A 3,600,729 3,600,729
Shares outstanding Class B 1,967,180 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 1.31 % 1.36 % Nonaccrual
loans $ 958 $ 1,760 Nonperforming assets $ 958 $ 1,760 Loans 90
days past due and still accruing $ - $ - Accruing troubled debt
restructures $ 4,104 $ 2,994 Net (recoveries)charge-offs,
year-to-date $ (47 ) $ 188 Leverage ratio 6.46 % *
6.71
%
*
Common equity tier 1 risk weighted capital ratio 10.74 % *
10.18
%
*
Tier 1 risk weighted capital ratio 12.24 % *
11.74
%
*
Total risk weighted capital ratio 13.28 % *
12.74
%
*
Total risk weighted assets $ 2,328,304 *
$
2,240,879
*
* computed utilizing recently implemented Basel III
regulatory capital framework.
(1) Non-GAAP Financial
Measures are reconciled in the following tables:
Calculation of Efficiency ratio: Total
operating expenses(numerator) $ 48,601 $ 46,404
Net interest income $ 55,320 $ 52,737 Total other operating
income 12,522 11,545 Tax equivalent adjustment 9,725
8,243 Total income(denominator) $ 77,567 $
72,525 Efficiency ratio, year - Non-GAAP
62.7 % 64.0 %
Calculation of tangible book value per share: Total
stockholders' equity $ 233,781 $ 211,132 Less: goodwill
2,714 2,714 Tangible stockholders'
equity(numerator) $ 231,067 $ 208,418 Total
shares outstanding at period end(denominator) 5,567,909 5,567,909
Tangible book value per share - Non-GAAP $
41.50 $ 37.43 Book value per
share - GAAP $ 41.99 $
37.92
Calculation of tangible capital / tangible
assets: Total stockholders' equity $ 233,781 $ 211,132
Less: goodwill 2,714 2,714 Tangible
stockholders' equity(numerator) $ 231,067 $ 208,418
Total assets $ 4,298,323 $ 3,856,407 Less: goodwill
2,714 2,714 Tangible assets(denominator) $
4,295,609 $ 3,853,693 Tangible capital /
tangible assets - Non-GAAP 5.38 %
5.41 % Capital / assets - GAAP
5.44 % 5.47 %
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version on businesswire.com: http://www.businesswire.com/news/home/20161011006685/en/
Century Bancorp, Inc.William P. Hornby, CPA,
781-393-4630whornby@centurybank.comFax: 781-393-4071
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