CNBKA Century BanCorp Inc

Century Bancorp, Inc. (NASDAQ:CNBKA) (www.centurybank.com) (“the Company”) today announced net income of $7,709,000 for the quarter ended March 31, 2018, or $1.38 per Class A share diluted, an increase of 26.5% compared to net income of $6,096,000, or $1.09 per Class A share diluted, for the same period a year ago. Total assets decreased 0.2% from $4.79 billion at December 31, 2017 to $4.78 billion at March 31, 2018.

Net interest income totaled $22.5 million for the quarter ended March 31, 2018 compared to $20.5 million for the same period in 2017. The 9.8% 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 2017 to 2.19% for the same period in 2018. This was primarily the result of an increase in rates on earning assets. The average balances of earning assets increased by 1.8% combined with a similar increase in average deposits. Also, interest expense increased 44.9% primarily as a result of an increase in rates on deposit balances.

The Company’s effective tax rate increased from 2.3% for the first quarter of 2017 to 6.1% for the same period in 2018, primarily as a result of an increase in taxable income offset, somewhat, by a decrease in the federal tax rate from 34% to 21% as a result of the Tax Cuts and Jobs Act.

At March 31, 2018, total equity was $268.2 million compared to $260.3 million at December 31, 2017. The Company’s equity increased primarily as a result of earnings, offset somewhat by dividends paid.

The Company’s leverage ratio stood at 6.77% at March 31, 2018, compared to 6.70% at December 31, 2017. 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 March 31, 2018 was $48.17 per share compared to $46.75 at December 31, 2017.

The Company’s allowance for loan losses was $26.7 million or 1.22% of loans outstanding at March 31, 2018, compared to $26.3 million or 1.21% of loans outstanding at December 31, 2017, and $24.8 million or 1.22% of loans outstanding at March 31, 2017. The ratio of the allowance for loan losses to loans outstanding has remained relatively stable. Non-performing assets totaled $1.4 million at March 31, 2018, compared to $1.7 million at December 31, 2017 and $810,000 at March 31, 2017.

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 May 15, 2018 to stockholders of record on May 1, 2018.

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 SubsidiariesConsolidated Comparative Statements of Condition (unaudited)(in thousands)

Assets

    March 31,2018   December 31,2017 Cash and Due From Banks $ 64,544 $ 77,199 Federal Funds Sold and Interest-bearing Deposits In Other Banks 186,125 279,231   Securities Available-for-Sale (AFS) 372,601 397,475   Securities Held-to-Maturity 1,817,633 1,701,233   Federal Home Loan Bank of Boston stock, at cost 20,050 21,779   Loans: Commercial & Industrial 758,621 763,807 Municipal 104,044 106,599 Construction & Land Development 17,583 18,931 Commercial Real Estate 726,440 732,491 Residential Real Estate 300,941 287,731 Consumer and Other 19,339 19,040 Home Equity   260,179   247,345   Total Loans 2,187,147 2,175,944 Less: Allowance for Loan Losses   26,695   26,255   Net Loans 2,160,452 2,149,689   Bank Premises and Equipment, net 23,220 23,527 Accrued Interest Receivable 10,844 11,179 Goodwill 2,714 2,714 Other Assets   118,499   121,546   Total Assets $ 4,776,682 $ 4,785,572  

Liabilities

Demand Deposits $ 715,032 $ 736,020   Interest Bearing Deposits: Savings and NOW Deposits 1,409,157 1,367,358 Money Market Accounts 1,195,785 1,188,228 Time Deposits   615,822   625,361   Total Interest Bearing Deposits   3,220,764   3,180,947   Total Deposits 3,935,796 3,916,967   Borrowed Funds: Securities Sold Under Agreements to Repurchase 141,560 158,990 Other Borrowed Funds   317,054   347,778   Total Borrowed Funds 458,614 506,768   Other Liabilities 77,989 65,457 Subordinated Debentures   36,083   36,083   Total Liabilities 4,508,482 4,525,275   Total Stockholders' Equity   268,200   260,297   Total Liabilities & Stockholders' Equity $ 4,776,682 $ 4,785,572     Century Bancorp, Inc. and SubsidiariesConsolidated Comparative Statements of Income (unaudited)For the Quarter ended March 31, 2018 and 2017(in thousands)       Quarter ended March 31, 2018   2017   Interest Income: Loans $ 18,267 $ 15,100 Securities Held-to-Maturity 10,288 9,535 Securities Available-for-Sale 1,992 1,611 Federal Funds Sold and Interest-bearing Deposits In Other Banks   883   393   Total Interest Income 31,430 26,639   Interest Expense: Savings and NOW Deposits 2,223 1,227 Money Market Accounts 2,453 1,274 Time Deposits 2,363 1,651 Securities Sold Under Agreements to Repurchase 181 103 Other Borrowed Funds and Subordinated Debentures   1,742   1,928   Total Interest Expense   8,962   6,183   Net Interest Income 22,468 20,456   Provision For Loan Losses   450   400   Net Interest Income After Provision for Loan Losses 22,018 20,056   Other Operating Income Service Charges on Deposit Accounts 2,067 2,016 Lockbox Fees 791 771 Net Gain on Sales of Loans - 101 Net Gain on Sales of Securities 197 - Other Income   1,138   1,021   Total Other Operating Income 4,193 3,909   Operating Expenses Salaries and Employee Benefits 11,225 10,865 Occupancy 1,637 1,741 Equipment 794 706 FDIC Assessment 383 438 Other   3,962   3,975   Total Operating Expenses   18,001   17,725   Income Before Income Taxes 8,210 6,240   Income Tax Expense   501   144   Net Income $ 7,709 $ 6,096     Century Bancorp, Inc. and SubsidiariesConsolidated Year-to-Date Average Comparative Statements of Condition (unaudited)(in thousands)

Assets

    March 31,2018   March 31,2017 Cash and Due From Banks $ 72,612 $ 75,497 Federal Funds Sold and Interest-Bearing Deposits in Other Banks 230,194 204,527   Securities Available-For-Sale (AFS) 406,087 533,486 Securities Held-to-Maturity (HTM) 1,741,492 1,751,435   Total Loans 2,175,170 1,984,700 Less: Allowance for Loan Losses   26,546     24,580     Net Loans 2,148,624 1,960,120   Unrealized (Loss)Gain on Securities AFS and HTM Transfers (4,586 ) (7,751 ) Bank Premises and Equipment 23,430 23,569 Accrued Interest Receivable 10,731 10,015 Goodwill 2,714 2,714 Other Assets   123,550     116,347     Total Assets $ 4,754,848   $ 4,669,959    

Liabilities

Demand Deposits $ 706,959 $ 675,941   Interest Bearing Deposits: Savings and NOW Deposits 1,494,919 1,453,299 Money Market Accounts 1,180,436 1,216,690 Time Deposits   604,814     501,857   Total Interest Bearing Deposits   3,280,169     3,171,846     Total Deposits 3,987,128 3,847,787   Borrowed Funds: Securities Sold Under Agreements to Repurchase 160,223 200,457 Other Borrowed Funds   238,260     283,650     Total Borrowed Funds 398,483 484,107   Other Liabilities 69,218 58,663 Subordinated Debentures   36,083     36,083     Total Liabilities 4,490,912 4,426,640   Total Stockholders' Equity   263,936     243,319     Total Liabilities & Stockholders' Equity $ 4,754,848   $ 4,669,959     Total Average Earning Assets - YTD $ 4,552,943   $ 4,474,148      

Century Bancorp, Inc. and SubsidiariesConsolidated Selected Key Financial Information (unaudited)(in thousands, except share data)

 

    March 31,2018   March 31,2017  

Performance Measures:

  Earnings per average Class A share, diluted, quarter $ 1.38 $ 1.09 Return on average assets, quarter 0.66 % 0.53 % Return on average stockholders' equity, quarter 11.85 % 10.16 % Net interest margin (taxable equivalent), quarter 2.19 % 2.16 % Efficiency ratio, quarter - Non-GAAP (1) 62.6 % 64.0 % Book value per share $ 48.17 $ 44.24 Tangible book value per share - Non-GAAP (1) $ 47.68 $ 43.75 Capital / assets 5.61 % 5.38 % Tangible capital / tangible assets - Non-GAAP (1) 5.56 % 5.33 %     Common Share Data: Average Class A shares outstanding, diluted, quarter 5,567,909 5,567,909   Shares outstanding Class A 3,608,029 3,600,729 Shares outstanding Class B   1,959,880     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 % 1.22 % Nonaccrual loans $ 1,386 $ 810 Nonperforming assets $ 1,386 $ 810 Loans 90 days past due and still accruing $ - $ - Accruing troubled debt restructures $ 5,415 $ 3,492 Net charge-offs(recoveries), quarter $ 10 $ (21 )   Leverage ratio 6.77 % 6.12 % Common equity tier 1 risk weighted capital ratio 10.79 % 10.06 % Tier 1 risk weighted capital ratio 12.10 % 11.27 % Total risk weighted capital ratio 13.10 % 12.25 % Total risk weighted assets $ 2,660,535 $ 2,532,933     (1) Non-GAAP Financial Measures are reconciled in the following tables:   Calculation of Efficiency ratio:   Total operating expenses(numerator) $ 18,001   $ 17,725     Net interest income $ 22,468 $ 20,456 Total other operating income 4,193 3,909 Tax equivalent adjustment   2,077     3,336   Total income(denominator) $ 28,738   $ 27,701     Efficiency ratio, year - Non-GAAP       62.6 %     64.0 %   Calculation of tangible book value per share:   Total stockholders' equity $ 268,200 $ 246,328 Less: goodwill   2,714     2,714   Tangible stockholders' equity(numerator) $ 265,486   $ 243,614     Total shares outstanding at period end(denominator) 5,567,909 5,567,909   Tangible book value per share - Non-GAAP     $ 47.68     $ 43.75   Book value per share - GAAP     $ 48.17     $ 44.24     Calculation of tangible capital / tangible assets:   Total stockholders' equity $ 268,200 $ 246,328 Less: goodwill   2,714     2,714   Tangible stockholders' equity(numerator) $ 265,486   $ 243,614     Total assets $ 4,776,682 $ 4,577,385 Less: goodwill   2,714     2,714   Tangible assets(denominator) $ 4,773,968   $ 4,574,671     Tangible capital / tangible assets - Non-GAAP       5.56 %     5.33 % Capital / assets - GAAP       5.61 %     5.38 %  

View source version on businesswire.com: https://www.businesswire.com/news/home/20180410006574/en/

Century BancorpWilliam P. Hornby, CPA, 781-393-4630781-393-4071 (Fax)whornby@centurybank.com