Century Bancorp, Inc. (NASDAQ:CNBKA) (www.centurybank.com) (“the Company”) today announced net income of $4,932,000 for the quarter ended March 31, 2014, or $0.89 per Class A share diluted, an increase of 10.2% compared to net income of $4,476,000, or $0.81 per Class A share diluted, for the same period a year ago. Total assets increased 2.0% from $3.4 billion at December 31, 2013 to $3.5 billion at March 31, 2014.

Net interest income totaled $16.5 million for the quarter ended March 31, 2014 compared to $14.5 million for the same period in 2013. The 13.5% increase in net interest income for the period is primarily due to an increase in average earning assets. The net interest margin increased from 2.25% on a fully taxable equivalent basis in 2013 to 2.27% 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 13.0% increase in the average balances of earning assets, combined with a similar increase in average deposits.

The provision for loan losses decreased by $150,000 from $750,000 for the quarter ended March 31, 2013 to $600,000 for the quarter ended March 31, 2014, primarily as a result of changes in the portfolio composition. There were no realized gains on sales of investments for the quarter ended March 31, 2014, as compared to $883,000 for the same period in 2013. The Company’s effective tax rate decreased from 6.0% in 2013 to 5.6% in 2014 primarily as a result of an increase in tax-exempt income.

At March 31, 2014, total equity was $182.1 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 6.57% at March 31, 2014, compared to 6.50% at December 31, 2013. The increase in the leverage ratio was due to an increase in stockholders’ equity, offset somewhat, by an increase in assets. Book value as of March 31, 2014 was $32.77 per share compared to $31.76 at December 31, 2013.

The Company’s allowance for loan losses was $21.3 million or 1.68% of loans outstanding at March 31, 2014, compared to $20.9 million or 1.66% of loans outstanding at December 31, 2013 and $19.8 million or 1.74% of loans outstanding at March 31, 2013. The increase in the allowance for loan losses was due to the composition of the loan portfolio as well as qualitative factors. Non-performing assets totaled $1.6 million at March 31, 2014, compared to $2.5 million at December 31, 2013 and $4.1 million at March 31, 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 May 15, 2014 to stockholders of record on May 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.

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)
      March 31,       December 31,

Assets

 2014 2013
Cash and Due From Banks $ 80,087 $ 59,956
Federal Funds Sold and Interest-bearing Deposits In Other Banks 83,306 34,722
 
Short-term Investments 4,625 4,617
 
Securities Available-For-Sale (AFS) 473,302 464,245
 
Securities Held-to-Maturity 1,478,450 1,487,884
 
Federal Home Loan Bank of Boston stock, at cost 18,872 18,072
 
Loans:
Commercial & Industrial 95,775 92,402
Construction & Land Development 25,928 33,058
Commercial Real Estate 708,550 713,327
Residential Real Estate 290,466 286,041
Consumer and Other 9,542 9,658
Home Equity   133,800   130,277
 
Total Loans 1,264,061 1,264,763
Less: Allowance for Loan Losses   21,259   20,941
 
Net Loans 1,242,802 1,243,822
 
Bank Premises and Equipment 23,450 23,400
Accrued Interest Receivable 6,338 6,539
Goodwill 2,714 2,714
Other Assets   86,101   85,183
 
Total Assets $ 3,500,047 $ 3,431,154
 

Liabilities

Demand Deposits $ 489,679 $ 475,862
 
Interest Bearing Deposits:
Savings and NOW Deposits 1,018,871 992,796
Money Market Accounts 874,264 864,957
Time Deposits   381,199   382,224
 
Total Interest Bearing Deposits   2,274,334   2,239,977
 
Total Deposits 2,764,013 2,715,839
 
Borrowed Funds:
Securities Sold Under Agreements to Repurchase 210,650 214,440
Other Borrowed Funds   272,644   255,144
 
Total Borrowed Funds 483,294 469,584
 
Other Liabilities 34,575 33,176
Subordinated Debentures   36,083   36,083
 
Total Liabilities 3,317,965 3,254,682
 
Total Stockholders' Equity   182,082   176,472
 
Total Liabilities & Stockholders' Equity $ 3,500,047 $ 3,431,154
 
 
 
Century Bancorp, Inc. and Subsidiaries
Consolidated Comparative Statements of Income (unaudited)
For the Quarter ended March 31, 2014 and 2013
(in thousands)
           
Quarter ended March 31,
2014       2013
 
Interest Income:
Loans $ 12,449 $ 11,881
Securities Held-to-Maturity 7,780 1,520
Securities Available-for-Sale 820 5,617
Federal Funds Sold and Interest-bearing Deposits In Other Banks   82   119
 
Total Interest Income 21,131 19,137
 
Interest Expense:
Savings and NOW Deposits 609 610
Money Market Accounts 639 532
Time Deposits 1,085 1,334
Securities Sold Under Agreements to Repurchase 101 90
Other Borrowed Funds and Subordinated Debentures   2,183   2,026
 
Total Interest Expense   4,617   4,592
 
Net Interest Income 16,514 14,545
 
Provision For Loan Losses   600   750
 
Net Interest Income After
Provision for Loan Losses 15,914 13,795
 
Other Operating Income
Service Charges on Deposit Accounts 2,034 1,942
Lockbox Fees 777 772
Net Gain on Sales of Investments - 883
Net Gain on Sales of Loans 7 170
Other Income   652   667
 
Total Other Operating Income 3,470 4,434
 
Operating Expenses
Salaries and Employee Benefits 8,875 8,618
Occupancy 1,442 1,282
Equipment 572 582
FDIC Assessment 480 400
Other   2,790   2,583
 
Total Operating Expenses   14,159   13,465
 
Income Before Income Taxes 5,225 4,764
 
Income Tax Expense   293   288
 
Net Income $ 4,932 $ 4,476
 
 
 
Century Bancorp, Inc. and Subsidiaries
Consolidated Year-to-Date Average Comparative Statements of Condition (unaudited)
(in thousands)
      March 31,       March 31,

Assets

 2014 2013
Cash and Due From Banks $ 65,827 $ 57,871
Federal Funds Sold and Interest-Bearing Deposits in Other Banks 121,093 170,727
 
Securities Available-For-Sale (AFS) 494,242 1,419,589
Securities Held-to-Maturity (HTM) 1,492,839 268,199
 
Total Loans 1,265,049 1,126,752
Less: Allowance for Loan Losses   21,193   19,503
 
Net Loans 1,243,856 1,107,249
 
Unrealized (Loss)Gain on Securities AFS and HTM Transfers (23,077) 16,539
Bank Premises and Equipment 23,336 23,806
Accrued Interest Receivable 7,195 6,032
Goodwill 2,714 2,714
Other Assets   86,313   69,459
 
Total Assets $ 3,514,338 $ 3,142,185
 

Liabilities

Demand Deposits $ 468,623 $ 417,886
 
Interest Bearing Deposits:
Savings and NOW Deposits 1,072,313 988,678
Money Market Accounts 904,036 701,837
Time Deposits   376,793   394,669
Total Interest Bearing Deposits   2,353,142   2,085,184
 
Total Deposits 2,821,765 2,503,070
 
Borrowed Funds:
Securities Sold Under Agreements to Repurchase 226,927 208,306
Other Borrowed Funds   216,212   174,522
 
Total Borrowed Funds 443,139 382,828
 
Other Liabilities 33,610 40,045
Subordinated Debentures   36,083   36,083
 
Total Liabilities 3,334,597 2,962,026
 
Total Stockholders' Equity   179,741   180,159
 
Total Liabilities & Stockholders' Equity $ 3,514,338 $ 3,142,185
 
 
Total Average Earning Assets - YTD $ 3,373,223 $ 2,985,267
 
 
 
Century Bancorp, Inc. and Subsidiaries
Consolidated Selected Key Financial Information (unaudited)
(in thousands, except share data)       March 31,       March 31,
2014 2013
 

Performance Measures:

 
Earnings per average Class A share, diluted, quarter $ 0.89 $ 0.81
Return on average assets, year-to-date 0.57% 0.58%
Return on average stockholders' equity, year-to-date 11.13% 10.08%
Net interest margin (taxable equivalent), quarter 2.27% 2.25%
Efficiency ratio, year-to-date 63.3% 64.0%
Book value per share $ 32.77 $ 32.58
Tangible book value per share $ 32.28 $ 32.09
Tangible capital / tangible assets 5.13% 5.64%
 
 
Common Share Data:
Average Class A shares outstanding, diluted, quarter 5,558,177 5,557,365
 
Shares outstanding Class A 3,582,479 3,569,679
Shares outstanding Class B   1,974,180   1,986,880
Total shares outstanding at period end   5,556,659   5,556,559
 
 

Asset Quality and Other Data:

 
Allowance for loan losses / loans 1.68% 1.74%
Nonaccrual loans $ 1,560 $ 4,144
Nonperforming assets $ 1,560 $ 4,144
Loans 90 days past due and still accruing $ - $ -
Accruing troubled debt restructures $ 5,811 $ 3,023
Net charge-offs, year-to-date $ 282 $ 188
 
Leverage ratio 6.57% 6.83%
Tier 1 risk weighted capital ratio 13.84% 14.30%
Total risk weighted capital ratio 15.09% 15.55%
Total risk weighted assets $ 1,672,745 $ 1,493,339