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Century Bancorp, Inc. Announces 15% Earnings Growth for 2008 and an Increase in Assets to $1.8 Billion; Regular Dividend Declared
Posted by: gurufocus (IP Logged)
Date: January 20, 2009 06:02PM

MEDFORD, Mass.--(BUSINESS WIRE)--Century Bancorp, Inc. (NASDAQ:CNBKA) (www.century-bank.com) (“the Company”) today announced net income of $2,811,000, or $0.51 per share diluted, for the fourth quarter Press Release: Century Bancorp, Inc. Announces 15% Earnings Growth for 2008 and an Increase in Assets to $1.8 Billion; Regular Dividend Declared

MEDFORD, Mass.--(BUSINESS WIRE)--Century Bancorp, Inc. (NASDAQ:CNBKA) (www.century-bank.com) (“the Company”) today announced net income of $2,811,000, or $0.51 per share diluted, for the fourth quarter ended December 31, 2008, an increase of 18.4% when compared to net income of $2,374,000, or $0.43 per share diluted, for the fourth quarter ended December 31, 2007. For the year ended December 31, 2008, net income totaled $9,046,000, or $1.63 per share diluted, an increase of 15.0% when compared to net income of $7,864,000, or $1.42 per share diluted, for 2007. The Company’s effective tax rate declined from 31.0% in 2007 to 20.0% in 2008 primarily as a result of an increase in tax-exempt interest income. Included in income for the year ended December 31, 2007 is the after-tax gain of $872,000 or $0.16 per share diluted, on the sale of the building which housed the Company’s previous location for a branch located in Medford Square.

Total assets increased 7.2% from $1.7 billion at December 31, 2007 to $1.8 billion at December 31, 2008.

Net interest income totaled $44.8 million for 2008 as compared to $39.2 million for 2007. The 14.2% increase in net interest income for the year is due to an increase of 35 basis points in the net interest margin, from 2.65% on a fully taxable equivalent basis in 2007 to 3.00% on the same basis for 2008.

At December 31, 2008, total equity was $120.5 million compared to $118.8 million at December 31, 2007. The Company’s equity increased as a result of earnings offset by an increase in accumulated other comprehensive loss, net of taxes, primarily as a result of the December 31, 2008 revaluation of pension assets and liabilities and dividends paid. The Company’s leverage ratio stood at 9.05% at December 31, 2008, compared to 9.56% at December 31, 2007. Book value as of December 31, 2008 was $21.76 per share compared to $21.43 at December 31, 2007.

The Company’s allowance for loan losses was $11.1 million or 1.33% of loans outstanding at December 31, 2008, compared to $9.6 million, or 1.33% of loans outstanding at December 31, 2007. Non-performing assets totaled $3.7 million at December 31, 2008, compared to $1.8 million at December 31, 2007. Non-performing assets increased primarily as a result of an increase in consumer mortgages and small business loans on non-accrual.

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 February 17, 2009 to stockholders of record on February 2, 2009.

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. During the fourth quarter of 2008, a branch was opened at 522 Main Street in Winchester, Massachusetts.

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)
  December 31,   December 31,

Assets

2008 2007
Cash and Due From Banks $ 61,195 $ 66,974
Federal Funds Sold and Interest-bearing Deposits In Other Banks 138,787 232,927
 
Securities Available-For-Sale (AFS) 495,585 388,104
 
Securities Held-to-Maturity 184,047 183,710
 
Federal Home Loan Bank of Boston stock, at cost 15,531 15,531
 
Loans:
Commercial & Industrial 141,373 117,332
Construction & Land Development 59,511 62,412
Commercial Real Estate 332,325 299,920
Residential Real Estate 194,644 168,204
Consumer and Other 9,258 9,798
Home Equity   98,954   68,585
 
Total Loans 836,065 726,251
Less: Allowance for Loan Losses   11,119   9,633
 
Net Loans 824,946 716,618
 
Bank Premises and Equipment 22,054 21,985
Accrued Interest Receivable 6,723 6,590
Goodwill 2,714 2,714
Core Deposit Intangible 1,283 1,671
Other Assets   48,701   43,457
 
Total Assets $ 1,801,566 $ 1,680,281
 

Liabilities

Demand Deposits $ 277,217 $ 289,526
 
Interest Bearing Deposits:
Savings and NOW Deposits 353,261 310,858
Money Market Accounts 308,177 234,099
Time Deposits   326,872   295,578
 
Total Interest Bearing   988,310   840,535
 
Total Deposits 1,265,527 1,130,061
 
Borrowed Funds:
Securities Sold Under Agreements to Repurchase 112,510 85,990
Other Borrowed Funds   238,558   289,885
 
Total Borrowed Funds 351,068 375,875
 
Other Liabilities 28,385 19,456
Subordinated Debentures   36,083   36,083
 
Total Liabilities 1,681,063 1,561,475
 
Total Stockholders' Equity   120,503   118,806
 
Total Liabilities & Stockholders' Equity $ 1,801,566 $ 1,680,281
Century Bancorp, Inc. and Subsidiaries
Consolidated Comparative Statements of Income (unaudited)
For the Quarter and Year Ended December 31, 2008 and 2007
(in thousands)
       
Quarter Ended December 31, Year Ended December 31,
2008   2007 2008   2007
 
Interest Income:
Loans $ 12,576 $ 13,056 $ 49,303 $ 52,796
Securities Held-to-Maturity 2,075 2,020 8,265 9,065
Securities Available-for-Sale 5,613 3,920 20,312 14,478
Federal Funds Sold and Interest-bearing Deposits In Other Banks   306   1,485   2,813     6,669
 
Total Interest Income 20,570 20,481 80,693 83,008
 
Interest Expense:
Savings and NOW Deposits 1,409 1,819 6,005 6,712
Money Market Accounts 1,780 1,849 7,260 8,901
Time Deposits 2,402 3,377 9,744 15,640
Securities Sold Under Agreements to Repurchase 188 763 1,393 3,191
Other Borrowed Funds and Subordinated Debentures   2,859   2,570   11,512     9,361
 
Total Interest Expense   8,638   10,378   35,914     43,805
 
Net Interest Income 11,932 10,103 44,779 39,203
 
Provision For Loan Losses   1,450   600   4,425     1,500
 
Net Interest Income After
Provision for Loan Losses 10,482 9,503 40,354 37,703
 
Other Operating Income
Service Charges on Deposit Accounts 2,149 1,949 8,190 7,579
Lockbox Fees 654 694 2,953 2,956
Net Gain on Sales of Investments - 153 249 153
Write-down of Certain Investments to Fair Value - - (76 ) -
Gain on Sale of Building - 117 - 1,438
Other Income   696   678   2,659     1,822
 
Total Other Operating Income 3,499 3,591 13,975 13,948
 
Operating Expenses
Salaries and Employee Benefits 6,572 5,962 25,615 24,543
Occupancy 1,093 993 4,246 3,852
Equipment 675 692 2,874 2,957
Other   2,510   2,118   10,293     8,903
 
Total Operating Expenses   10,850   9,765   43,028     40,255
 
Income Before Income Taxes 3,131 3,329 11,301 11,396
 
Income Tax Expense   320   955   2,255     3,532
 
Net Income $ 2,811 $ 2,374 $ 9,046   $ 7,864
Century Bancorp, Inc. and Subsidiaries
Consolidated Year-to-Date Average Comparative Statements of Condition (unaudited)
(in thousands)
  December 31,   December 31,

Assets

2008 2007
Cash and Due From Banks $ 58,398 $ 57,553
Federal Funds Sold and Interest-Bearing Deposits in Other Banks 114,262 131,900
 
Securities Available-For-Sale (AFS) 473,344 373,208
Securities Held-to-Maturity 193,584 248,338


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