Century Bancorp, Inc. CNBKA (www.centurybank.com) ("the Company") today announced net income of $24,534,000 for the year ended December 31, 2016, or $4.41 per Class A share diluted, an increase of 6.6% compared to net income of $23,021,000, or $4.13 per Class A share diluted, for the same period a year ago. Total assets increased 13.1% from $3.9 billion at December 31, 2015 to $4.5 billion at December 31, 2016. For the quarter ended December 31, 2016, net income totaled a record $6,500,000 or $1.17 per Class A share diluted, an increase of 8.9% compared to net income of $5,971,000, or $1.07 per Class A share diluted, for the same period a year ago.
Net interest income totaled $74.1 million for the year ended December 31, 2016 compared to $70.0 million for the same period in 2015. The 5.9% increase in net interest income for the period is primarily due to an increase in average earning assets. The net interest margin decreased from 2.18% on a fully taxable equivalent basis in 2015 to 2.12% for the same period in 2016. This was primarily the result of a decrease in rates on earning assets. The average balances of earning assets increased by 10.3% combined with a similar increase in average deposits. Also, interest expense increased 12.3% as a result of an increase in deposit balances.
The provision for loan losses increased by $1,175,000 from $200,000 for the year ended December 31, 2015 to $1,375,000 for the same period in 2016, primarily as a result of an increase in loan balances. The Company's effective tax rate decreased from 2.3% in 2015 to (1.5%) in 2016 primarily as a result of an increase in tax-exempt income.
At December 31, 2016, total equity was $240.0 million compared to $214.5 million at December 31, 2015. The Company's equity increased primarily as a result of earnings and a decrease in other comprehensive loss, net of taxes, offset somewhat by dividends paid. Other comprehensive loss, net of taxes, decreased primarily as a result of a decrease in unrealized losses on securities transferred from available-for-sale to held-to-maturity and amortization of the pension liability. This was offset, somewhat, by an increase in unrealized losses on securities available-for-sale.
The Company's leverage ratio stood at 6.28% at December 31, 2016, compared to 6.79% at December 31, 2015. The decrease in the leverage ratio was due to an increase in quarterly average assets, offset somewhat by an increase in stockholders' equity. Book value as of December 31, 2016 was $43.11 per share compared to $38.53 at December 31, 2015.
The Company's allowance for loan losses was $24.4 million or 1.27% of loans outstanding at December 31, 2016, compared to $23.1 million or 1.33% of loans outstanding at December 31, 2015. The change in the ratio of the allowance for loan losses to loans outstanding, when compared to December 31, 2015, was primarily due to changes in portfolio composition and lower historical loss rates. Non-performing assets totaled $1.1 million at December 31, 2016, compared to $2.3 million at December 31, 2015.
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 15, 2017 to stockholders of record on February 1, 2017.
The Company, through its subsidiary bank, Century Bank and Trust Company, a state chartered full service commercial bank, operating twenty-seven 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) | ||||||||
| December 31, | December 31, | |||||||
|
Assets |
2016 | 2015 | ||||||
| Cash and Due From Banks | $ | 62,400 | $ | 52,877 | ||||
| Federal Funds Sold and Interest-bearing Deposits In Other Banks | 173,751 | 167,847 | ||||||
| Short-term Investments | 3,183 | 3,233 | ||||||
| Securities Available-for-Sale (AFS) | 499,297 | 404,623 | ||||||
| Securities Held-to-Maturity | 1,653,986 | 1,438,903 | ||||||
| Federal Home Loan Bank of Boston stock, at cost | 21,042 | 28,807 | ||||||
| Loans: | ||||||||
| Commercial & Industrial | 612,503 | 452,235 | ||||||
| Municipal | 135,418 | 85,685 | ||||||
| Construction & Land Development | 14,928 | 27,421 | ||||||
| Commercial Real Estate | 696,173 | 721,506 | ||||||
| Residential Real Estate | 241,357 | 255,346 | ||||||
| Consumer and Other | 11,697 | 11,323 | ||||||
| Home Equity | 211,857 | 178,020 | ||||||
| Total Loans | 1,923,933 | 1,731,536 | ||||||
| Less: Allowance for Loan Losses | 24,406 | 23,075 | ||||||
| Net Loans | 1,899,527 | 1,708,461 | ||||||
| Bank Premises and Equipment, net | 23,417 | 24,106 | ||||||
| Accrued Interest Receivable | 9,645 | 8,002 | ||||||
| Goodwill | 2,714 | 2,714 | ||||||
| Other Assets | 113,646 | 107,868 | ||||||
| Total Assets | $ | 4,462,608 | $ | 3,947,441 | ||||
|
Liabilities |
||||||||
| Demand Deposits | $ | 689,286 | $ | 541,955 | ||||
| Interest Bearing Deposits: | ||||||||
| Savings and NOW Deposits | 1,304,394 | 1,070,585 | ||||||
| Money Market Accounts | 1,181,179 | 989,094 | ||||||
| Time Deposits | 478,359 | 473,426 | ||||||
| Total Interest Bearing Deposits | 2,963,932 | 2,533,105 | ||||||
| Total Deposits | 3,653,218 | 3,075,060 | ||||||
| Borrowed Funds: | ||||||||
| Securities Sold Under Agreements to Repurchase | 182,280 | 197,850 | ||||||
| Other Borrowed Funds | 293,000 | 368,000 | ||||||
| Total Borrowed Funds | 475,280 | 565,850 | ||||||
| Other Liabilities | 57,986 | 55,904 | ||||||
| Subordinated Debentures | 36,083 | 36,083 | ||||||
| Total Liabilities | 4,222,567 | 3,732,897 | ||||||
| Total Stockholders' Equity | 240,041 | 214,544 | ||||||
| Total Liabilities & Stockholders' Equity | $ | 4,462,608 | $ | 3,947,441 | ||||
| Century Bancorp, Inc. and Subsidiaries | ||||||||||||||||
| Consolidated Comparative Statements of Income (unaudited) | ||||||||||||||||
| For the Quarter and Year ended December 31, 2016 and 2015 | ||||||||||||||||
| (in thousands) | ||||||||||||||||
| Quarter ended December 31, | Year ended December 31, | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| Interest Income: | ||||||||||||||||
| Loans | $ | 14,384 | $ | 13,531 | $ | 57,764 | $ | 52,128 | ||||||||
| Securities Held-to-Maturity | 8,501 | 8,015 | 32,679 | 34,388 | ||||||||||||
| Securities Available-for-Sale | 1,474 | 842 | 5,020 | 3,141 | ||||||||||||
| Federal Funds Sold and Interest-bearing Deposits In Other Banks | 330 | 108 | 1,236 | 436 | ||||||||||||
| Total Interest Income | 24,689 | 22,496 | 96,699 | 90,093 | ||||||||||||
| Interest Expense: | ||||||||||||||||
| Savings and NOW Deposits | 1,161 | 768 | 4,020 | 2,817 | ||||||||||||
| Money Market Accounts | 1,057 | 762 | 3,542 | 3,038 | ||||||||||||
| Time Deposits | 1,490 | 1,293 | 5,706 | 4,887 | ||||||||||||
| Securities Sold Under Agreements to Repurchase | 109 | 116 | 472 | 487 | ||||||||||||
| Other Borrowed Funds and Subordinated Debentures | 2,110 | 2,335 | 8,877 | 8,905 | ||||||||||||
| Total Interest Expense | 5,927 | 5,274 | 22,617 | 20,134 | ||||||||||||
| Net Interest Income | 18,762 | 17,222 | 74,082 | 69,959 | ||||||||||||
| Provision For Loan Losses | 200 | - | 1,375 | 200 | ||||||||||||
| Net Interest Income After | ||||||||||||||||
| Provision for Loan Losses | 18,562 | 17,222 | 72,707 | 69,759 | ||||||||||||
| Other Operating Income | ||||||||||||||||
| Service Charges on Deposit Accounts | 2,025 | 1,944 | 7,907 | 7,732 | ||||||||||||
| Lockbox Fees | 733 | 753 | 3,164 | 3,211 | ||||||||||||
| Net Gain on Sales of Investments | - | 424 | 64 | 594 | ||||||||||||
| Net Gain on Sales of Loans | - | 292 | 1,331 | 1,034 | ||||||||||||
| Other Income | 942 | 1,035 | 3,756 | 3,422 | ||||||||||||
| Total Other Operating Income | 3,700 | 4,448 | 16,222 | 15,993 | ||||||||||||
| Operating Expenses | ||||||||||||||||
| Salaries and Employee Benefits | 9,688 | 9,895 | 40,048 | 38,596 | ||||||||||||
| Occupancy | 1,508 | 1,495 | 6,147 | 6,116 | ||||||||||||
| Equipment | 758 | 677 | 2,845 | 2,626 | ||||||||||||
| FDIC Assessment | 399 | 550 | 1,902 | 2,152 | ||||||||||||
| Other | 3,803 | 3,177 | 13,815 | 12,708 | ||||||||||||
| Total Operating Expenses | 16,156 | 15,794 | 64,757 | 62,198 | ||||||||||||
| Income Before Income Taxes | 6,106 | 5,876 | 24,172 | 23,554 | ||||||||||||
| Income Tax (Benefit) Expense | (394) | (95) | (362) | 533 | ||||||||||||
| Net Income | $ | 6,500 | $ | 5,971 | $ | 24,534 | $ | 23,021 | ||||||||
|
Century Bancorp, Inc. and Subsidiaries |
||||||||||
| Consolidated Year-to-Date Average Comparative Statements of Condition (unaudited) | ||||||||||
| (in thousands) | ||||||||||
| December 31, | December 31, | |||||||||
|
Assets |
2016 | 2015 | ||||||||
| Cash and Due From Banks | $ | 71,023 | $ | 67,700 | ||||||
| Federal Funds Sold and Interest-Bearing Deposits in Other Banks | 235,339 | 157,765 | ||||||||
| Securities Available-For-Sale (AFS) | 498,654 | 454,638 | ||||||||
| Securities Held-to-Maturity (HTM) | 1,533,032 | 1,603,530 | ||||||||
| Total Loans | 1,838,136 | 1,507,546 | ||||||||
| Less: Allowance for Loan Losses | 23,872 | 22,559 | ||||||||
| Net Loans | 1,814,264 | 1,484,987 | ||||||||
| Unrealized (Loss)Gain on Securities AFS and HTM Transfers | (9,504 | ) | (14,430 | ) | ||||||
| Bank Premises and Equipment | 23,656 | 24,261 | ||||||||
| Accrued Interest Receivable | 8,390 | 7,537 | ||||||||
| Goodwill | 2,714 | 2,714 | ||||||||
| Other Assets | 113,924 | 103,918 | ||||||||
| Total Assets | $ | 4,291,492 | $ | 3,892,620 | ||||||
|
Liabilities |
||||||||||
| Demand Deposits | $ | 609,159 | $ | 518,161 | ||||||
| Interest Bearing Deposits: | ||||||||||
| Savings and NOW Deposits | 1,322,714 | 1,139,449 | ||||||||
| Money Market Accounts | 1,041,404 | 951,197 | ||||||||
| Time Deposits | 452,562 | 408,711 | ||||||||
| Total Interest Bearing Deposits | 2,816,680 | 2,499,357 | ||||||||
| Total Deposits | 3,425,839 | 3,017,518 | ||||||||
| Borrowed Funds: | ||||||||||
| Securities Sold Under Agreements to Repurchase | 222,956 | 245,276 | ||||||||
| Other Borrowed Funds | 321,891 | 338,025 | ||||||||
| Total Borrowed Funds | 544,847 | 583,301 | ||||||||
| Other Liabilities | 57,602 | 51,247 | ||||||||
| Subordinated Debentures | 36,083 | 36,083 | ||||||||
| Total Liabilities | 4,064,371 | 3,688,149 | ||||||||
| Total Stockholders' Equity | 227,121 | 204,471 | ||||||||
| Total Liabilities & Stockholders' Equity | $ | 4,291,492 | $ | 3,892,620 | ||||||
| Total Average Earning Assets - QTD | $ | 4,287,001 | $ | 3,771,711 | ||||||
| Total Average Earning Assets - YTD | $ | 4,105,161 | $ | 3,723,479 | ||||||
| Century Bancorp, Inc. and Subsidiaries | |||||||||||||
| Consolidated Selected Key Financial Information (unaudited) | |||||||||||||
| (in thousands, except share data) | December 31, | December 31, | |||||||||||
| 2016 | 2015 | ||||||||||||
|
Performance Measures: |
|||||||||||||
| Earnings per average Class A share, diluted, quarter | $ | 1.17 | $ | 1.07 | |||||||||
| Earnings per average Class A share, diluted, year | $ | 4.41 | $ | 4.13 | |||||||||
| Return on average assets, year | 0.57 | % | 0.59 | % | |||||||||
| Return on average stockholders' equity, year | 10.80 | % | 11.26 | % | |||||||||
| Net interest margin (taxable equivalent), quarter | 2.04 | % | 2.12 | % | |||||||||
| Net interest margin (taxable equivalent), year | 2.12 | % | 2.18 | % | |||||||||
| Efficiency ratio, year - Non-GAAP (1) | 62.7 | % | 64.1 | % | |||||||||
| Book value per share | $ | 43.11 | $ | 38.53 | |||||||||
| Tangible book value per share - Non-GAAP (1) | $ | 42.62 | $ | 38.04 | |||||||||
| Capital / assets | 5.38 | % | 5.44 | % | |||||||||
| Tangible capital / tangible assets - Non-GAAP (1) | 5.32 | % | 5.37 | % | |||||||||
| Common Share Data: | |||||||||||||
| Average Class A shares outstanding, diluted, quarter & year | 5,567,909 | 5,567,909 | |||||||||||
| Shares outstanding Class A | 3,600,729 | 3,600,729 | |||||||||||
| Shares outstanding Class B | 1,967,180 | 1,967,180 | |||||||||||
| Total shares outstanding at period end | 5,567,909 | 5,567,909 | |||||||||||
|
Asset Quality and Other Data: |
|||||||||||||
| Allowance for loan losses / loans | 1.27 | % | 1.33 | % | |||||||||
| Nonaccrual loans | $ |
1,084 |
$ | 2,336 | |||||||||
| Nonperforming assets | $ |
1,084 |
$ | 2,336 | |||||||||
| Loans 90 days past due and still accruing | $ | - | $ | - | |||||||||
| Accruing troubled debt restructures | $ | 3,526 | $ | 2,893 | |||||||||
| Net (recoveries)charge-offs, year-to-date | $ | (45 | ) | $ | (557 | ) | |||||||
| Leverage ratio | 6.28 | % | * | 6.79 | % | * | |||||||
| Common equity tier 1 risk weighted capital ratio | 10.41 | % | * | 10.04 | % | * | |||||||
| Tier 1 risk weighted capital ratio | 11.70 | % | * | 11.55 | % | * | |||||||
| Total risk weighted capital ratio | 12.72 | % | * | 12.54 | % | * | |||||||
| Total risk weighted assets | $ | 2,398,796 | * | $ | 2,325,258 | * | |||||||
| * computed utilizing Basel III regulatory capital framework. | |||||||||||||
| (1) Non-GAAP Financial Measures are reconciled in the following tables: | |||||||||||||
| Calculation of Efficiency ratio: | |||||||||||||
| Total operating expenses(numerator) | $ | 64,757 | $ | 62,198 | |||||||||
| Net interest income | $ | 74,082 | $ | 69,959 | |||||||||
| Total other operating income | 16,222 | 15,993 | |||||||||||
| Tax equivalent adjustment | 12,917 | 11,140 | |||||||||||
| Total income(denominator) | $ | 103,221 | $ | 97,092 | |||||||||
| Efficiency ratio, year - Non-GAAP | 62.7 | % | 64.1 | % | |||||||||
| Calculation of tangible book value per share: | |||||||||||||
| Total stockholders' equity | $ | 240,041 | $ | 214,544 | |||||||||
| Less: goodwill | 2,714 | 2,714 | |||||||||||
| Tangible stockholders' equity(numerator) | $ | 237,327 | $ | 211,830 | |||||||||
| Total shares outstanding at period end(denominator) | 5,567,909 | 5,567,909 | |||||||||||
| Tangible book value per share - Non-GAAP | $ | 42.62 | $ | 38.04 | |||||||||
| Book value per share - GAAP | $ | 43.11 | $ | 38.53 | |||||||||
| Calculation of tangible capital / tangible assets: | |||||||||||||
| Total stockholders' equity | $ | 240,041 | $ | 214,544 | |||||||||
| Less: goodwill | 2,714 | 2,714 | |||||||||||
| Tangible stockholders' equity(numerator) | $ | 237,327 | $ | 211,830 | |||||||||
| Total assets | $ | 4,462,608 | $ | 3,947,441 | |||||||||
| Less: goodwill | 2,714 | 2,714 | |||||||||||
| Tangible assets(denominator) | $ | 4,459,894 | $ | 3,944,727 | |||||||||
| Tangible capital / tangible assets - Non-GAAP | 5.32 | % | 5.37 | % | |||||||||
| Capital / assets - GAAP | 5.38 | % | 5.44 | % | |||||||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20170117006555/en/
Century Bancorp, Inc.
William P. Hornby, CPA, 781-393-4630
whornby@centurybank.com
Fax:
781-393-4071
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