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

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8-K - FORM 8-K - CENTURY BANCORP INC	b88533e8vk.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 RECORD EARNINGS, UP 30%, FOR FIRST NINE
MONTHS OF 2011; 9% ASSET GROWTH TO $2.7BB; REGULAR DIVIDEND DECLARED

Medford, MA, October 11, 2011—Century Bancorp, Inc. (NASDAQ:CNBKA) (www.centurybank.com) (“the Company”) today announced record net income of $12,504,000 for the nine months ended September 30, 2011, or $2.26 per share diluted, an increase of 29.6% compared to net income of $9,650,000, or $1.74 per share diluted, for the same period a year ago. Total assets increased 9.1% from $2.4 billion at December 31, 2010 to $2.7 billion at September 30, 2011. For the quarter ended September 30, 2011, net income totaled $4,582,000, or $0.83 per share diluted, an increase of 40.3% compared to net income of $3,267,000, or $0.59 per share diluted, for the third quarter of 2010.

Net interest income totaled $41.3 million for the first nine months of 2011 compared to $38.5 million for the same period in 2010. The 7.3% increase in net interest income for the period is due to a 10.3% 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 2.51% on a fully taxable equivalent basis in 2010 to 2.49% on the same basis for 2011.

The provision for loan losses decreased by $625,000 from $4.2 million for the nine months ended September 30, 2010 to $3.6 million, for the nine months ended September 30, 2011, primarily as a result of decreased provisions related to nonaccrual loans. The Company capitalized on favorable market conditions for the third quarter and nine months ended September 30, 2011 and realized net gains on sales of investments of $883,000 and $1.2 million, respectively, as compared to $0 and $1.0 million for the same periods in 2010. Other income increased for the third quarter of 2011 compared to the same period last year primarily as a result of a sale of one nonaccrual loan. The Company’s effective tax rate declined from 8.3% in 2010 to 7.5% in 2011 primarily as a result of an increase in tax-exempt income.

-more-

At September 30, 2011, total equity was $163.1 million compared to $145.0 million at December 31, 2010. The Company’s equity increased primarily as a result of earnings and other comprehensive income, net of taxes, offset somewhat by dividends paid. The Company’s leverage ratio stood at 7.02% at September 30, 2011, compared to 7.13% at September 30, 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 September 30, 2011 was $29.43 per share compared to $26.35 at September 30, 2010.

The Company’s allowance for loan losses was $16.0 million or 1.68% of loans outstanding at September 30, 2011, compared to $14.1 million, or 1.55% of loans outstanding at December 31, 2010 and $13.8 million, or 1.60% of loans outstanding at September 30, 2010. Non-performing assets totaled $7.4 million at September 30, 2011, compared to $8.1 million at December 31, 2010 and $9.9 million at September 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 November 15, 2011 to stockholders of record on November 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 “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)


	September 30,		December 31,
	2011		2010
Assets
Cash and Due From Banks	$	39,904	$	37,215
Federal Funds Sold and Interest-bearing Deposits In Other Banks		138,504		151,337

Short-term Investments		24,183		113,918

Securities Available-For-Sale (AFS)		1,281,275		909,391

Securities Held-to-Maturity		134,189		230,116

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

Loans:
Commercial & Industrial		84,765		90,654
Construction & Land Development		54,498		53,583
Commercial Real Estate		458,858		433,337
Residential Real Estate		235,636		207,787
Consumer and Other		6,419		6,594
Home Equity		111,131		114,209


Total Loans		951,307		906,164
Less: Allowance for Loan Losses		16,002		14,053


Net Loans		935,305		892,111

Bank Premises and Equipment		21,971		21,228
Accrued Interest Receivable		5,993		6,601
Goodwill		2,714		2,714
Core Deposit Intangible		217		508
Other Assets		64,126		61,014


Total Assets	$	2,663,912	$	2,441,684


Liabilities
Demand Deposits	$	345,180	$	322,002

Interest Bearing Deposits:
Savings and NOW Deposits		691,103		649,402
Money Market Accounts		569,410		513,359
Time Deposits		499,716		417,260


Total Interest Bearing		1,760,229		1,580,021


Total Deposits		2,105,409		1,902,023

Borrowed Funds:
Securities Sold Under Agreements to Repurchase		133,030		108,550
Other Borrowed Funds		193,143		222,118


Total Borrowed Funds		326,173		330,668

Other Liabilities		33,186		27,885
Subordinated Debentures		36,083		36,083


Total Liabilities		2,500,851		2,296,659

Total Stockholders’ Equity		163,061		145,025


Total Liabilities & Stockholders’ Equity	$	2,663,912	$	2,441,684

Century Bancorp, Inc. and Subsidiaries
Consolidated Comparative Statements of Income (unaudited)
For the Quarter and Nine months ended September 30, 2011 and 2010
(in thousands)


	Quarter Ended September 30,				Nine months ended September 30,
	2011		2010		2011		2010
Interest Income:
Loans	$	12,030	$	11,900	$	36,147	$	36,084
Securities Held-to-Maturity		1,304		1,645		4,595		5,501
Securities Available-for-Sale		6,042		4,618		17,104		14,630
Federal Funds Sold and Interest-bearing Deposits In Other Banks		262		465		967		1,246


Total Interest Income		19,638		18,628		58,813		57,461

Interest Expense:
Savings and NOW Deposits		592		940		2,023		3,254
Money Market Accounts		627		876		2,109		3,189
Time Deposits		2,512		2,162		7,285		5,746
Securities Sold Under Agreements to Repurchase		82		116		290		466
Other Borrowed Funds and Subordinated Debentures		1,987		1,946		5,826		6,351


Total Interest Expense		5,800		6,040		17,533		19,006


Net Interest Income		13,838		12,588		41,280		38,455

Provision For Loan Losses		1,200		1,200		3,600		4,225


Net Interest Income After Provision for Loan Losses		12,638		11,388		37,680		34,230

Other Operating Income
Service Charges on Deposit Accounts		2,031		2,003		5,854		5,878
Lockbox Fees		658		745		2,129		2,193
Net Gain on Sales of Investments		883		—		1,245		1,027
Other Income		931		664		2,651		2,678


Total Other Operating Income		4,503		3,412		11,879		11,776

Operating Expenses
Salaries and Employee Benefits		7,357		6,844		21,948		21,619
Occupancy		1,059		937		3,285		3,003
Equipment		608		454		1,700		1,537
FDIC Assessment		413		785		1,612		2,175
Other		2,618		2,293		7,495		7,143


Total Operating Expenses		12,055		11,313		36,040		35,477


Income Before Income Taxes		5,086		3,487		13,519		10,529

Income Tax Expense		504		220		1,015		879


Net Income	$	4,582	$	3,267	$	12,504	$	9,650

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


	September 30,		September 30,
	2011		2010
Assets
Cash and Due From Banks	$	52,444	$	52,468
Federal Funds Sold and Interest-Bearing Deposits in Other Banks		305,717		391,526

Securities Available-For-Sale (AFS)		1,038,455		762,522
Securities Held-to-Maturity		189,100		219,137

Total Loans		946,905		875,759
Less: Allowance for Loan Losses		15,517		13,545


Net Loans		931,388		862,214

Unrealized Gain on Securities AFS		9,710		12,972
Bank Premises and Equipment		21,416		21,339
Accrued Interest Receivable		6,806		6,560
Goodwill		2,714		2,714
Core Deposit Intangible		365		753
Other Assets		63,606		58,590


Total Assets	$	2,621,721	$	2,390,795


Liabilities
Demand Deposits	$	321,340	$	291,210

Interest Bearing Deposits:
Savings and NOW Deposits		728,238		693,057
Money Market Accounts		575,785		550,412
Time Deposits		489,808		344,036

Total Interest Bearing		1,793,831		1,587,505


Total Deposits		2,115,171		1,878,715

Borrowed Funds:
Securities Sold Under Agreements to Repurchase		121,750		138,263
Other Borrowed Funds		166,637		165,893


Total Borrowed Funds		288,387		304,156

Other Liabilities		29,160		30,922
Subordinated Debentures		36,083		36,083


Total Liabilities		2,468,801		2,249,876

Total Stockholders’ Equity		152,920		140,919


Total Liabilities & Stockholders’ Equity	$	2,621,721	$	2,390,795


Total Average Earning Assets — QTD	$	2,554,158	$	2,307,384


Total Average Earning Assets — YTD	$	2,480,177	$	2,248,944

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


	September 30,			September 30,
	2011			2010
Performance Measures:

Earnings per average share, basic, quarter	$	0.83		$	0.59
Earnings per average share, diluted, quarter	$	0.83		$	0.59
Earnings per average share, basic, year-to-date	$	2.26		$	1.74
Earnings per average share, diluted, year-to-date	$	2.26		$	1.74
Return on average assets, year-to-date		0.64	%		0.54	%
Return on average stockholders’ equity, year-to-date		10.93	%		9.16	%
Net interest margin (taxable equivalent), quarter		2.42	%		2.39	%
Net interest margin (taxable equivalent), year-to-date		2.49	%		2.51	%
Efficiency ratio, year-to-date		62.0	%		65.8	%
Book value per share	$	29.43		$	26.35
Tangible book value per share	$	28.90		$	25.75
Tangible capital / tangible assets		6.02	%		5.87	%

Common Share Data:
Average shares outstanding, basic, quarter		5,540,597			5,535,548
Average shares outstanding, diluted, quarter		5,541,646			5,537,120
Average shares outstanding, basic, year-to-date		5,540,592			5,532,067
Average shares outstanding, diluted, year-to-date		5,541,711			5,534,457

Shares outstanding Class A		3,546,217			3,525,417
Shares outstanding Class B		1,994,380			2,011,380

Total shares outstanding at period end		5,540,597			5,536,797


Asset Quality and Other Data:

Allowance for loan losses / loans		1.68	%		1.60	%
Nonaccrual loans	$	6,103		$	9,472
Nonperforming assets	$	7,403		$	9,851
Loans 90 days past due and still accruing	$	38		$	130
Accruing troubled debt restructures	$	3,909		$	1,252
Net charge-offs, year-to-date	$	1,652		$	2,771

Leverage ratio		7.02	%		7.13	%
Tier 1 risk weighted capital ratio		14.82	%		14.95	%
Total risk weighted capital ratio		16.07	%		16.13	%
Total risk weighted assets	$	1,273,134		$	1,164,263

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