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Century Bancorp, Inc. Announces Record Earnings, Up 24%, for First Six Months of 2011; 6% Asset Growth to $2.6BB; Regular Divid

^{Published on 2011-07-12 13:50:36 - Market Wire}
 

MEDFORD, Mass.--([ BUSINESS WIRE ])--Century Bancorp, Inc. (NASDAQ:CNBKA) ([ www.centurybank.com ]) (athe Companya) today announced record net income of $7,922,000 for the first six months ended June 30, 2011, or $1.43 per share diluted, an increase of 24.1% compared to net income of $6,383,000, or $1.15 per share diluted, for the same period a year ago. Total assets increased 6.4% from $2.4 billion at December 31, 2010 to $2.6 billion at June 30, 2011. For the quarter ended June 30, 2011, net income totaled $4,197,000, or $0.76 per share diluted, an increase of 41.7% compared to net income of $2,961,000, or $0.54 per share diluted, for the second quarter of 2010.

Net interest income totaled $27.4 million for the first six months of 2011 compared to $25.9 million for the same period in 2010. The 6.1% increase in net interest income for the period is due to a 10.1% increase in the average balances of earning assets, combined with a similar increase in average deposits, offset slightly by a decrease in the net interest margin from 2.57% on a fully taxable equivalent basis in 2010 to 2.53% on the same basis for 2011.

The provision for loan losses decreased by $625,000 from $3.0 million for the six months ended June 30, 2010 to $2.4 million, for the six months ended June 30, 2011, primarily as a result of decreased provisions related to nonaccrual loans. The Companya™s effective tax rate declined from 9.4% in 2010 to 6.1% in 2011 primarily as a result of an increase in tax-exempt income.

At June 30, 2011, total equity was $155.3 million compared to $145.0 million at December 31, 2010. The Companya™s equity increased primarily 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 7.00% at June 30, 2011, compared to 7.23% at June 30, 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 June 30, 2011 was $28.04 per share compared to $25.86 at June 30, 2010.

Included in operating expenses for the second quarter of 2010 is a charge for payments due a 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 allowance for loan losses was $15.9 million or 1.65% of loans outstanding at June 30, 2011, compared to $14.1 million, or 1.55% of loans outstanding at December 31, 2010 and $14.4 million, or 1.65% of loans outstanding at June 30, 2010. Non-performing assets totaled $12.3 million at June 30, 2011, compared to $8.1 million at December 31, 2010 and $10.8 million at June 30, 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 August 15, 2011 to stockholders of record on August 1, 2011.

The Company, through its subsidiary bank, Century Bank and Trust Company, a state chartered full service commercial bank, operating twenty-four full-service branches in the Greater Boston area including our newest branch in Newton Centre, 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.