N@N

Century Bancorp, Inc. Announces 9% Earnings Growth for Q1 2011; 5% Asset Growth to $2.6BB; Regular Dividend Declared

^{Published on 2011-04-12 13:50:32 - Market Wire}
 

MEDFORD, Mass.--([ BUSINESS WIRE ])--Century Bancorp, Inc. (NASDAQ:CNBKA) ([ www.centurybank.com ]) (athe Companya) today announced net income of $3,725,000 for the quarter ended March 31, 2011, or $0.67 per share diluted, an increase of 8.9% compared to net income of $3,422,000, or $0.62 per share diluted, for the first quarter of 2010. Total assets increased 5.0% from $2.4 billion at December 31, 2010 to $2.6 billion at March 31, 2011.

On March 1, 2011, Century Bank was named to the 2010 aBank Honor Rolla of superior performers by Keefe, Bruyette & Woods (KBW). Century Bank is one of only two banks in Massachusetts to be recognized. The top 40 U.S. banking institutions were selected for the KBW aBank Honor Rolla based on the following criteria: 1) Ten years of consecutive profitability 2) 2010 was a peak net earnings year, and 3) 2010 exceeded 2009 earnings.

Net interest income totaled $13.9 million for the quarter ended March 31, 2011 compared to $12.7 million for the same period in 2010. The 9.4% increase in net interest income for the period is due to an 8.1% increase in the average balances of earning assets, combined with a similar increase in average deposits as well as an increase in the net interest margin from 2.55% on a fully taxable equivalent basis in 2010 to 2.64% on the same basis for 2011.

The provision for loan losses decreased by $375,000 from $1.6 million for the quarter ended March 31, 2010 to $1.2 million, for the quarter ended March 31, 2011, primarily as a result of decreased provisions related to nonaccrual loans. The Companya™s effective tax rate declined from 11.0% in 2010 to 8.1% in 2011 primarily as a result of an increase in tax-exempt income.

At March 31, 2011, total equity was $147.6 million compared to $145.0 million at December 31, 2010. The Companya™s equity increased primarily as a result of earnings offset by an increase in accumulated other comprehensive loss, net of taxes, and by dividends paid. The Companya™s leverage ratio stood at 7.21% at March 31, 2011, compared to 7.23% at March 31, 2010. This decline in the leverage ratio is due to an increase in assets, offset by an increase in stockholdersa™ equity. Book value as of March 31, 2011 was $26.64 per share compared to $24.95 at March 31, 2010.

The Companya™s allowance for loan losses was $15.0 million or 1.58% of loans outstanding at March 31, 2011, compared to $14.1 million, or 1.55% of loans outstanding at December 31, 2010 and $13.2 million, or 1.50% of loans outstanding at March 31, 2010. Non-performing assets totaled $11.6 million at March 31, 2011, compared to $8.1 million at December 31, 2010 and $11.9 million at March 31, 2010.

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 16, 2011 to stockholders of record on May 2, 2011.

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.