Central Bancorp Inc (CEBK, Financial) filed Quarterly Report for the period ended 2010-09-30.
Central Bancorp Inc has a market cap of $24.3 million; its shares were traded at around $14.53 with a P/E ratio of 14.1 and P/S ratio of 0.8. The dividend yield of Central Bancorp Inc stocks is 1.4%.
Investment securities totaled $37.1 million at September 30, 2010 compared to $44.5 million at March 31, 2010, representing a decrease of $7.4 million, or 16.6%. The decrease in investment securities is primarily due to the repayment of $5.1 million in principal on mortgage backed securities, the sale of $2.0 million in corporate bonds, partially offset by a net increase of $48 thousand in the market value of available for sale securities. Stock in the FHLBB totaled $8.5 million at both September 30, 2010 and March 31, 2010.
Net income available to common shareholders for the quarter ended September 30, 2010 was $246 thousand, or $0.15 per diluted common share, as compared to net income available to common shareholders of $451 thousand, or $0.30 per diluted common share, for the comparable prior year quarter. The decrease was primarily due to a $442 thousand increase in non-interest expenses, a $119 thousand decrease in non-interest income and a $100 thousand increase in the provision for loan losses, partially offset by a $349 thousand increase in net interest income. Additionally, for each of the quarters ended September 30, 2010 and 2009, net income available to common shareholders was reduced by $125 thousand for allocated dividends paid to preferred shareholders related to the Companys December 2008 sale of $10.0 million of preferred stock and a warrant to purchase 234,732 shares of the Companys common stock to the U.S. Treasury Department as a participant in the federal governments TARP Capital Purchase Program.
Interest Expense. Interest expense decreased by $969 thousand, or 31.9%, to $2.1 million for the quarter ended September 30, 2010 as compared to $3.0 million for the same period of 2009 primarily due to decreases in the average rates paid on deposits and FHLBB borrowings. The cost of deposits decreased by 70 basis points from 1.62% for the quarter ended September 30, 2009 to 0.92% for the quarter ended September 30, 2010, as some higher-cost certificates of deposit were either not renewed or were replaced by lower-costing deposits. The average balance of certificates of deposit totaled $128.4 million for the quarter ended September 30, 2010, compared to $151.0 million for the same period in 2009, a decline of $22.6 million. The average balance of lower-costing non-maturity deposits increased by $4.7 million to $164.8 million for the quarter ended September 30, 2010, as compared to an average balance of $160.1 million during the same period of 2009. The average balance of FHLBB borrowings decreased by $11.4 million, from $141.5 million for the quarter ended September 30, 2009 to $130.1 million for the quarter ended September 30, 2010. The average cost of these funds declined as management utilized short-term investments to fund maturing, relatively higher-rate advances during the quarter ended September 30, 2010.
Noninterest Income. Noninterest income decreased by $119 thousand from $410 thousand during the quarter ended September 30, 2009 to $291 thousand during the quarter ended September 30, 2010. The decrease of $119 thousand was primarily due to other-than-temporary impairment write-downs of $226 thousand during the quarter ended September 30, 2010 on three available-for-sale preferred equity securities, compared to $0 during the same quarter of 2009. The aforementioned decrease in non-interest income was partially offset by a $55 thousand increase in the gain on sale of loans due to increased loan sale activity during the three months ended September 30, 2010, and a $37 thousand increase in third-party brokerage income.
Noninterest Expenses. Noninterest expenses increased by $442 thousand or 12.7%, to $3.9 million for the quarter ended September 30, 2010 as compared to $3.5 million during the quarter ended September 30, 2009. This net increase was comprised of a $409 thousand increase in salary and employee benefits, a $121 thousand increase in professional services, a $25 thousand increase in marketing expenses, a $9 thousand increase in FDIC deposit insurance premiums and an $8 thousand increase in data processing costs, partially offset by decreases in other expenses of $96 thousand and occupancy and equipment related expenses of $34 thousand. Management continues to closely monitor operating expenses throughout the Company.
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Central Bancorp Inc has a market cap of $24.3 million; its shares were traded at around $14.53 with a P/E ratio of 14.1 and P/S ratio of 0.8. The dividend yield of Central Bancorp Inc stocks is 1.4%.
Highlight of Business Operations:
Total assets were $525.9 million at September 30, 2010 compared to $542.4 million at March 31, 2010, representing a decrease of $16.6 million, or 3.1%. The decrease in total assets reflected strategic actions taken by management to reduce risk and increase capital ratios in accordance with the Companys business plan, including the use of loan repayment, and investment maturity and repayment proceeds to fund certain maturing deposits and borrowings. Total loans (excluding loans held for sale) were $428.0 million at September 30, 2010, compared to $461.5 million at March 31, 2010, representing a decrease of $33.5 million, or 7.3%. This decrease was primarily due to decreases in residential and home equity loans of $18.6 million and $245 thousand, respectively, as well as decreases in construction and commercial real estate loans of $14.1 million. Construction and commercial real estate loans declined as management de-emphasized these types of lending in the current economic environment in an effort to reduce risk and increase regulatory capital ratios in accordance with the Companys business plan. Residential and home equity loans decreased from $225.9 million at March 31, 2010 to $207.0 million at September 30, 2010 due to higher than expected residential loan payoffs. Commercial and industrial loans decreased from $4.0 million at March 31, 2010 to $3.4 million at September 30, 2010 primarily due to the scheduled repayment of principal. Managements efforts to reduce the levels of commercial real estate and construction loans are reflected in changes in the Banks commercial real estate concentration ratio, which is calculated as total non-owner occupied commercial real estate and construction loans divided by the Banks risk-based capital. At September 30, 2010, the commercial real estate concentration ratio was 436%, compared to a ratio of 466% at March 31, 2010. Additionally, the commercial real estate concentration ratio was 600% at March 31, 2009.Investment securities totaled $37.1 million at September 30, 2010 compared to $44.5 million at March 31, 2010, representing a decrease of $7.4 million, or 16.6%. The decrease in investment securities is primarily due to the repayment of $5.1 million in principal on mortgage backed securities, the sale of $2.0 million in corporate bonds, partially offset by a net increase of $48 thousand in the market value of available for sale securities. Stock in the FHLBB totaled $8.5 million at both September 30, 2010 and March 31, 2010.
Net income available to common shareholders for the quarter ended September 30, 2010 was $246 thousand, or $0.15 per diluted common share, as compared to net income available to common shareholders of $451 thousand, or $0.30 per diluted common share, for the comparable prior year quarter. The decrease was primarily due to a $442 thousand increase in non-interest expenses, a $119 thousand decrease in non-interest income and a $100 thousand increase in the provision for loan losses, partially offset by a $349 thousand increase in net interest income. Additionally, for each of the quarters ended September 30, 2010 and 2009, net income available to common shareholders was reduced by $125 thousand for allocated dividends paid to preferred shareholders related to the Companys December 2008 sale of $10.0 million of preferred stock and a warrant to purchase 234,732 shares of the Companys common stock to the U.S. Treasury Department as a participant in the federal governments TARP Capital Purchase Program.
Interest Expense. Interest expense decreased by $969 thousand, or 31.9%, to $2.1 million for the quarter ended September 30, 2010 as compared to $3.0 million for the same period of 2009 primarily due to decreases in the average rates paid on deposits and FHLBB borrowings. The cost of deposits decreased by 70 basis points from 1.62% for the quarter ended September 30, 2009 to 0.92% for the quarter ended September 30, 2010, as some higher-cost certificates of deposit were either not renewed or were replaced by lower-costing deposits. The average balance of certificates of deposit totaled $128.4 million for the quarter ended September 30, 2010, compared to $151.0 million for the same period in 2009, a decline of $22.6 million. The average balance of lower-costing non-maturity deposits increased by $4.7 million to $164.8 million for the quarter ended September 30, 2010, as compared to an average balance of $160.1 million during the same period of 2009. The average balance of FHLBB borrowings decreased by $11.4 million, from $141.5 million for the quarter ended September 30, 2009 to $130.1 million for the quarter ended September 30, 2010. The average cost of these funds declined as management utilized short-term investments to fund maturing, relatively higher-rate advances during the quarter ended September 30, 2010.
Noninterest Income. Noninterest income decreased by $119 thousand from $410 thousand during the quarter ended September 30, 2009 to $291 thousand during the quarter ended September 30, 2010. The decrease of $119 thousand was primarily due to other-than-temporary impairment write-downs of $226 thousand during the quarter ended September 30, 2010 on three available-for-sale preferred equity securities, compared to $0 during the same quarter of 2009. The aforementioned decrease in non-interest income was partially offset by a $55 thousand increase in the gain on sale of loans due to increased loan sale activity during the three months ended September 30, 2010, and a $37 thousand increase in third-party brokerage income.
Noninterest Expenses. Noninterest expenses increased by $442 thousand or 12.7%, to $3.9 million for the quarter ended September 30, 2010 as compared to $3.5 million during the quarter ended September 30, 2009. This net increase was comprised of a $409 thousand increase in salary and employee benefits, a $121 thousand increase in professional services, a $25 thousand increase in marketing expenses, a $9 thousand increase in FDIC deposit insurance premiums and an $8 thousand increase in data processing costs, partially offset by decreases in other expenses of $96 thousand and occupancy and equipment related expenses of $34 thousand. Management continues to closely monitor operating expenses throughout the Company.
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