N@N

Century Bancorp, Inc. Announces 36% Earnings Growth for YTD 2010; 8% Asset Growth to $2.4BB; Regular Dividend Declared

^{Published on 2010-10-12 13:55:21 - Market Wire}
 

MEDFORD, Mass.--([ BUSINESS WIRE ])--Century Bancorp, Inc. (NASDAQ:CNBKA) ([ www.century-bank.com ]) (athe Companya) today announced net income of $3,267,000 for the quarter ended September 30, 2010, or $0.59 per share diluted, an increase of 2.7% as compared to net income of $3,182,000, or $0.58 per share diluted, for the same period a year ago. Total assets increased 8.0% from $2.3 billion at December 31, 2009 to $2.4 billion at September 30, 2010. For the first nine months of 2010, net income totaled $9,650,000, or $1.74 per share diluted, an increase of 36.4% when compared to net income of $7,075,000, or $1.28 per share diluted, for the same period a year ago.

Net interest income totaled $38.5 million for the first nine months of 2010 compared to $35.4 million for 2009. The 8.5% increase in net interest income for the period is mainly due to a 20.7% increase in the average balances of earning assets, combined with a similar increase in deposits. The increased volume was partially offset by a decrease of seventeen basis points in the net interest margin. The net interest margin decreased from 2.68% on a fully taxable equivalent basis in 2009 to 2.51% on the same basis for 2010.

The provision for loan losses increased by $75,000, primarily as a result of additional allocations related to impaired loans. The provision for loan losses was $4.2 million for both of the nine month periods. The Company capitalized on favorable market conditions for the nine months ended September 30, 2010 and realized net gains on sales of investments of $1.0 million, as compared to $1.1 million for the same period in 2009. Included in operating expenses for the third quarter and first nine months of 2010 are FDIC assessments of $785,000 and $2.2 million, respectively, as compared to $638,000 and $2.8 million for the same periods in 2009. FDIC assessments decreased, for the nine month period, primarily as a result of the special assessment charge of approximately $1.0 million during the second quarter of 2009. This was offset, somewhat, by an increase in assessment rate as well as an increase in the deposit base during 2010.

Also included in operating expenses for the second quarter of 2010 is a charge for payments due Jonathan G. Sloane, former Co-CEO, in accordance with his separation agreement as previously announced. The Company recorded a pre-tax charge of $916,000.

The Companya™s effective tax rate declined from 10.7% in 2009 to 8.3% in 2010 primarily as a result of an increase in tax-exempt income.

At September 30, 2010, total equity was $145.9 million compared to $132.7 million at December 31, 2009. The Companya™s equity increased as a result of earnings and a decrease in accumulated other comprehensive loss, net of taxes, offset somewhat by dividends paid. The Companya™s leverage ratio stood at 7.13% at September 30, 2010, compared to 8.02% at September 30, 2009. This decline in the leverage ratio is due to an increase in assets, offset by an increase in stockholdersa™ equity. Book value as of September 30, 2010 was $26.35 per share compared to $23.72 at September 30, 2009.

The Companya™s allowance for loan losses was $13.8 million or 1.60% of loans outstanding at September 30, 2010, compared to $12.4 million, or 1.41% of loans outstanding at December 31, 2009 and $14.2 million or 1.62% of loans outstanding at September 30, 2009. Non-performing assets totaled $9.9 million at September 30, 2010, compared to $12.3 million at December 31, 2009 and $17.0 million at September 30, 2009.

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, 2010 to stockholders of record on November 1, 2010.

The Company, through its subsidiary bank, Century Bank and Trust Company, a state chartered full service commercial bank, operating twenty-three 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 aforward-looking statementsa 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.