CENTURY BANCORP INC - FORM 8-K - EX-99.1

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8-K - FORM 8-K - CENTURY BANCORP INC	b86041e8vk.htm

Exhibit 99.1

NEWS RELEASE

FOR IMMEDIATE RELEASE

Contact:		William P. Hornby, CPA whornby@centurybank.com

Phone:		781-393-4630

Fax:		781-393-4071

CENTURY BANCORP, INC. ANNOUNCES 9% EARNINGS GROWTH FOR Q1 2011; 5% ASSET
GROWTH TO $2.6BB; REGULAR DIVIDEND DECLARED

Medford, MA, April 12, 2011—Century Bancorp, Inc. (NASDAQ:CNBKA) (www.centurybank.com) (“the Company”) 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 “Bank Honor Roll” 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 “Bank Honor Roll” 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 Company’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.

-more-

At March 31, 2011, total equity was $147.6 million compared to $145.0 million at December 31, 2010. The Company’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 Company’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 stockholders’ equity. Book value as of March 31, 2011 was $26.64 per share compared to $24.95 at March 31, 2010.

The Company’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 “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)


	March 31,		December 31,
	2011		2010
Assets
Cash and Due From Banks	$	41,276	$	37,215
Federal Funds Sold and Interest-bearing Deposits In Other Banks		197,457		151,337

Short-term Investments		110,951		113,918

Securities Available-For-Sale (AFS)		972,359		909,391

Securities Held-to-Maturity		204,100		230,116

Federal Home Loan Bank of Boston stock, at cost		15,531		15,531

Loans:
Commercial & Industrial		90,696		90,654
Construction & Land Development		54,027		53,583
Commercial Real Estate		448,772		433,337
Residential Real Estate		231,876		207,787
Consumer and Other		6,340		6,594
Home Equity		113,151		114,209


Total Loans		944,862		906,164
Less: Allowance for Loan Losses		14,958		14,053


Net Loans		929,904		892,111

Bank Premises and Equipment		21,020		21,228
Accrued Interest Receivable		6,568		6,601
Goodwill		2,714		2,714
Core Deposit Intangible		411		508
Other Assets		61,236		61,014


Total Assets	$	2,563,527	$	2,441,684


Liabilities
Demand Deposits	$	312,253	$	322,002

Interest Bearing Deposits:
Savings and NOW Deposits		668,236		649,402
Money Market Accounts		552,193		513,359
Time Deposits		499,696		417,260


Total Interest Bearing		1,720,125		1,580,021


Total Deposits		2,032,378		1,902,023

Borrowed Funds:
Securities Sold Under Agreements to Repurchase		119,590		108,550
Other Borrowed Funds		198,143		222,118


Total Borrowed Funds		317,733		330,668

Other Liabilities		29,713		27,885
Subordinated Debentures		36,083		36,083


Total Liabilities		2,415,907		2,296,659

Total Stockholders’ Equity		147,620		145,025


Total Liabilities & Stockholders’ Equity	$	2,563,527	$	2,441,684

Century Bancorp, Inc. and Subsidiaries
Consolidated Comparative Statements of Income (unaudited)
For the Quarter ended March 31, 2011 and 2010
(in thousands)


	Quarter Ended March 31,
	2011		2010
Interest Income:
Loans	$	12,105	$	12,112
Securities Held-to-Maturity		1,773		1,985
Securities Available-for-Sale		5,353		5,033
Federal Funds Sold and Interest-bearing Deposits In Other Banks		347		378


Total Interest Income		19,578		19,508

Interest Expense:
Savings and NOW Deposits		712		1,221
Money Market Accounts		705		1,224
Time Deposits		2,279		1,708
Securities Sold Under Agreements to Repurchase		110		219
Other Borrowed Funds and Subordinated Debentures		1,845		2,411


Total Interest Expense		5,651		6,783


Net Interest Income		13,927		12,725

Provision For Loan Losses		1,200		1,575


Net Interest Income After
Provision for Loan Losses		12,727		11,150

Other Operating Income
Service Charges on Deposit Accounts		1,887		1,923
Lockbox Fees		737		700
Net Gain on Sales of Investments		164		378
Other Income		747		1,258


Total Other Operating Income		3,535		4,259

Operating Expenses
Salaries and Employee Benefits		7,341		6,925
Occupancy		1,251		1,068
Equipment		558		550
FDIC Assessment		735		650
Other		2,325		2,373


Total Operating Expenses		12,210		11,566


Income Before Income Taxes		4,052		3,843

Income Tax Expense		327		421


Net Income	$	3,725	$	3,422

Century Bancorp, Inc. and Subsidiaries
Consolidated Year-to-Date Average Comparative Statements of Condition (unaudited)
(in thousands)


	March 31,		March 31,
	2011		2010
Assets
Cash and Due From Banks	$	54,279	$	52,167
Federal Funds Sold and Interest-Bearing Deposits in Other Banks		285,590		387,343

Securities Available-For-Sale (AFS)		956,831		704,955
Securities Held-to-Maturity		211,658		232,115

Total Loans		924,867		876,396
Less: Allowance for Loan Losses		14,587		12,848


Net Loans		910,280		863,548

Unrealized Gain on Securities AFS		4,708		10,889
Bank Premises and Equipment		21,148		21,135
Accrued Interest Receivable		6,757		6,563
Goodwill		2,714		2,714
Core Deposit Intangible		466		852
Other Assets		61,645		57,937


Total Assets	$	2,516,076	$	2,340,218


Liabilities
Demand Deposits	$	308,749	$	279,184

Interest Bearing Deposits:
Savings and NOW Deposits		710,725		645,156
Money Market Accounts		542,739		542,597
Time Deposits		445,696		311,436

Total Interest Bearing		1,699,160		1,499,189


Total Deposits		2,007,909		1,778,373

Borrowed Funds:
Securities Sold Under Agreements to Repurchase		129,472		172,691
Other Borrowed Funds		167,404		186,205


Total Borrowed Funds		296,876		358,896

Other Liabilities		28,924		30,041
Subordinated Debentures		36,083		36,083


Total Liabilities		2,369,792		2,203,393

Total Stockholders’ Equity		146,284		136,825


Total Liabilities & Stockholders’ Equity	$	2,516,076	$	2,340,218


Total Average Earning Assets — YTD	$	2,378,946	$	2,200,809

Century Bancorp, Inc. and Subsidiaries
Consolidated Selected Key Financial Information (unaudited)
(in thousands, except share data)


	March 31,			March 31,
	2011			2010
Performance Measures:

Earnings per average share, basic, quarter	$	0.67		$	0.62
Earnings per average share, diluted, quarter	$	0.67		$	0.62
Return on average assets, quarter		0.60	%		0.59	%
Return on average stockholders’ equity, quarter		10.33	%		10.14	%
Net interest margin (taxable equivalent), quarter		2.64	%		2.55	%
Efficiency ratio, quarter		64.2	%		63.9	%
Book value per share	$	26.64		$	24.95
Tangible book value per share	$	26.08		$	24.31
Tangible capital / tangible assets		5.64	%		5.71	%

Common Share Data:
Average shares outstanding, basic, quarter		5,540,583			5,530,297
Average shares outstanding, diluted, quarter		5,562,327			5,533,070

Shares outstanding Class A		3,543,717			3,515,917
Shares outstanding Class B		1,996,880			2,014,380

Total shares outstanding at period end		5,540,597			5,530,297


Asset Quality and Other Data:

Allowance for loan losses / loans		1.58	%		1.50	%
Nonaccrual loans	$	10,790		$	11,857
Nonperforming assets	$	11,600		$	11,857
Loans 90 days past due and still accruing	$	592		$	312
Accruing troubled debt restructures	$	1,726		$	877
Net charge-offs, quarter	$	295		$	718

Leverage ratio		7.21	%		7.23	%
Tier 1 risk weighted capital ratio		14.50	%		14.36	%
Total risk weighted capital ratio		15.69	%		15.49	%
Total risk weighted assets	$	1,247,572		$	1,173,973

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