[April 09, 2019] |
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Century Bancorp, Inc. Announces Increased Earnings for Q1 2019 up 22.2%; Asset Growth to Record $5.3 BB; Regular Dividend Declared
Century Bancorp, Inc. (NASDAQ:CNBKA) (www.centurybank.com)
("the Company") today announced net income of $9.4 million for the
quarter ended March 31, 2019, or $1.69 per Class A share diluted, an
increase of 22.2% compared to net income of $7.7 million, or $1.38 per
Class A share diluted, for the same period a year ago. Total assets
increased 2.8% from $5.16 billion at December 31, 2018 to $5.31 billion
at March 31, 2019.
Net interest income totaled $23.4 million for the quarter ended March
31, 2019 compared to $22.5 million for the same period in 2018. The 4.3%
increase in net interest income for the period is primarily due to an
increase in average earning assets. The net interest margin decreased
from 2.19% on a fully taxable equivalent basis in 2018 to 2.11% for the
same period in 2019. This was primarily the result of increased rates
paid on deposits. The average balances of earning assets increased by
8.7% combined with an average yield increase of 0.40%, resulting in an
increase in interest income of $7.6 million. The average balance of
interest bearing liabilities increased 7.7% combined with an average
cost of funds increase of 0.61%, resulting in an increase in interest
expense of $6.7 million.
The Company's effective tax rate decreased from 6.1% for the quarter
ended March 31, 2018 to (1.3%) for the same period in 2019. This was
primarily as a result of a reduction in tax accruals related to
sequestration of the refundable portion of our alternative minimum tax
(AMT) credit carryforward. On January 14, 2019, the IRS updated its
announcement "Effect of Sequestration on the Alternative Minimum Tax
Credit for Corporations" to clarify that refundable AMT credits under
Section 53(e) of the Internal Revenue Code are not subject to
sequestration for taxable years beginning after December 31, 2017.
Therefore, the full amount of the AMT credit carryover will be refunded
to the Company.
At March 31, 2019, total equity was $309.3 million compared to $300.4
million at December 31, 2018. The Company's equity increased primarily
as a result of earnings, offset somewhat by dividends paid.
The Company's leverage ratio stood at 6.92% at March 31, 2019, compared
to 6.91% at December 31, 2018. The increase in the leverage ratio was
due to an increase in stockholders' equity, offset somewhat by an
increase in quarterly average assets. Book value as of March 31, 2019
was $55.55 per share compared to $53.96 at December 31, 2018.
The Company's allowance for loan losses was $28.8 million or 1.25% of
loans outstanding at March 31, 2019 compared to $28.5 million or 1.25%
of loans outstanding at December 31, 2018, and $26.7 million or 1.22% of
loans outstanding at March 31, 2018. The ratio of the allowance for loan
losses to loans outstanding has increased from the same period last
year, primarily as a result of changes in qualitative factors related to
general economic factors pertaining to certain industries.
Non-performing assets totaled $3.7 million at March 31, 2019, compared
to $3.5 million at December 31, 2018, and $1.4 million at March 31,
2018. Nonperforming assets increased from the same period last year,
mainly as a result of one residential real estate property classified as
other real estate owned.
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 ($0.06) per share on the Company's Class B common stock. The
dividends were declared payable May 15, 2019 to stockholders of record
on May 1, 2019.
The Company, through its subsidiary bank, Century Bank and Trust
Company, a state chartered full service commercial bank, operating
twenty-seven full-service branches in the Greater Boston area, offers a
full range of Business, Personal and Institutional Services.
Century Bank and Trust Company is a member of the FDIC and is an Equal
Housing Lender.
This press release contains certain "forward-looking statements" with
respect to the financial condition, results of operations and business
of the Company. Actual results may differ from those contemplated by
these statements. The Company wishes to caution readers not to place
undue reliance on any forward-looking statements. The Company disclaims
any intent or obligation to update publicly any such forward-looking
statements, whether in response to new information, future events or
otherwise.
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Century Bancorp, Inc. and Subsidiaries
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Consolidated Comparative Statements of Condition (unaudited)
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(in thousands)
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March 31,
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December 31,
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Assets
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2019
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|
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2018
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Cash and Due From Banks
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$
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77,121
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$
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89,540
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Federal Funds Sold and Interest-bearing Deposits In Other Banks
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301,240
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252,963
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Securities Available-for-Sale (AFS)
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346,707
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338,327
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Securities Held-to-Maturity
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2,110,555
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2,046,647
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Federal Home Loan Bank of Boston stock, at cost
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14,244
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17,974
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Loans:
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Commercial & Industrial
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767,455
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761,775
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Municipal
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105,269
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97,140
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Construction & Land Development
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13,305
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13,628
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Commercial Real Estate
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746,703
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750,362
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Residential Real Estate
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349,966
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348,250
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Consumer and Other
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22,123
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22,083
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Home Equity
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305,839
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292,340
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Total Loans
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2,310,660
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2,285,578
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Less: Allowance for Loan Losses
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28,848
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28,543
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Net Loans
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2,281,812
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2,257,035
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Bank Premises and Equipment, net
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24,494
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23,921
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Accrued Interest Receivable
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14,464
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14,406
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Goodwill
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2,714
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2,714
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Other Assets
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132,715
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120,408
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Total Assets
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$
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5,306,066
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$
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5,163,935
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Liabilities
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Demand Deposits
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$
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764,545
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$
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813,478
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Interest Bearing Deposits:
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Savings and NOW Deposits
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1,783,987
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1,707,019
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Money Market Accounts
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1,359,016
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1,325,888
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Time Deposits
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542,079
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560,579
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Total Interest Bearing Deposits
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3,685,082
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3,593,486
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Total Deposits
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4,449,627
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4,406,964
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Borrowed Funds:
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Securities Sold Under Agreements to Repurchase
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164,500
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154,240
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Other Borrowed Funds
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257,148
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202,378
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Total Borrowed Funds
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421,648
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356,618
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Other Liabilities
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89,384
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63,831
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Subordinated Debentures
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36,083
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36,083
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Total Liabilities
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4,996,742
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4,863,496
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Total Stockholders' Equity
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309,324
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300,439
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Total Liabilities & Stockholders' Equity
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$
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5,306,066
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$
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5,163,935
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Century Bancorp, Inc. and Subsidiaries
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Consolidated Comparative Statements of Income (unaudited)
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For the Quarter ended March 31, 2019 and 2018
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(in thousands)
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Quarter ended March 31,
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2019
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2018
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Interest Income:
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Loans
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$
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21,309
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$
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18,267
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Securities Held-to-Maturity
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13,788
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10,288
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Securities Available-for-Sale
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2,631
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1,992
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Federal Funds Sold and Interest-bearing Deposits In Other Banks
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1,349
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883
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Total Interest Income
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39,077
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31,430
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Interest Expense:
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Savings and NOW Deposits
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5,466
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2,223
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Money Market Accounts
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5,343
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2,453
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Time Deposits
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2,793
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2,363
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Securities Sold Under Agreements to Repurchase
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|
385
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181
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Other Borrowed Funds and Subordinated Debentures
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1,652
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1,742
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Total Interest Expense
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15,639
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8,962
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Net Interest Income
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23,438
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22,468
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Provision For Loan Losses
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375
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|
450
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Net Interest Income After
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Provision for Loan Losses
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23,063
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22,018
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Other Operating Income
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Service Charges on Deposit Accounts
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2,209
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2,067
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Lockbox Fees
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1,089
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791
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Net Gain on Sales of Loans
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15
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-
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Net Gain on Sales of Securities
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-
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197
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Other Income
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1,114
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1,138
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Total Other Operating Income
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4,427
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4,193
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Operating Expenses
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Salaries and Employee Benefits
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11,035
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11,225
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Occupancy
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1,701
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1,637
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Equipment
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|
783
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|
794
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FDIC Assessment
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373
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|
383
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Other
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4,298
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3,962
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Total Operating Expenses
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18,190
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18,001
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Income Before Income Taxes
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|
|
|
9,300
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8,210
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Income Tax (Benefit) Expense
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(118)
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501
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Net Income
|
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$
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9,418
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$
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7,709
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|
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Century Bancorp, Inc. and Subsidiaries
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|
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Consolidated Year-to-Date Average Comparative Statements of
Condition (unaudited)
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(in thousands)
|
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|
|
|
|
|
|
|
|
March 31,
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March 31,
|
Assets
|
|
|
2019
|
|
|
2018
|
Cash and Due From Banks
|
|
|
$
|
74,836
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|
|
|
$
|
72,612
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Federal Funds Sold and Interest-Bearing Deposits in Other Banks
|
|
|
|
225,870
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|
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|
|
230,194
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|
|
|
|
|
|
|
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Securities Available-For-Sale (AFS)
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|
|
|
351,869
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|
|
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|
406,087
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Securities Held-to-Maturity (HTM)
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|
|
|
2,078,626
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1,741,492
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|
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|
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Total Loans
|
|
|
|
2,292,606
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|
|
|
|
2,175,170
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Less: Allowance for Loan Losses
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|
|
28,708
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|
|
|
|
26,546
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|
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Net Loans
|
|
|
|
2,263,898
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|
|
|
|
2,148,624
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|
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Unrealized (Loss)Gain on Securities AFS and HTM Transfers
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|
(3,562
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)
|
|
|
|
(4,586
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)
|
Bank Premises and Equipment
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|
|
24,164
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|
|
|
|
23,430
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|
Accrued Interest Receivable
|
|
|
|
14,147
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|
|
|
|
10,731
|
|
Goodwill
|
|
|
|
2,714
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|
|
|
|
2,714
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Other Assets
|
|
|
|
134,962
|
|
|
|
|
123,550
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|
|
|
|
|
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Total Assets
|
|
|
$
|
5,167,524
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$
|
4,754,848
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|
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Liabilities
|
|
|
|
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Demand Deposits
|
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|
$
|
782,794
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$
|
706,959
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|
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|
|
|
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Interest Bearing Deposits:
|
|
|
|
|
|
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Savings and NOW Deposits
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|
1,812,119
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|
|
|
|
1,494,919
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Money Market Accounts
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|
|
1,271,707
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|
|
|
|
1,180,436
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Time Deposits
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|
|
516,781
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|
|
|
|
604,814
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|
Total Interest Bearing Deposits
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|
|
|
3,600,607
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|
|
|
|
3,280,169
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|
|
|
|
|
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Total Deposits
|
|
|
|
4,383,401
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|
|
|
|
3,987,128
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|
|
|
|
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Borrowed Funds:
|
|
|
|
|
|
|
Securities Sold Under Agreements to Repurchase
|
|
|
|
168,447
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|
|
|
|
160,223
|
|
Other Borrowed Funds
|
|
|
|
195,837
|
|
|
|
|
238,260
|
|
|
|
|
|
|
|
|
Total Borrowed Funds
|
|
|
|
364,284
|
|
|
|
|
398,483
|
|
|
|
|
|
|
|
|
Other Liabilities
|
|
|
|
79,156
|
|
|
|
|
69,218
|
|
Subordinated Debentures
|
|
|
|
36,083
|
|
|
|
|
36,083
|
|
|
|
|
|
|
|
|
Total Liabilities
|
|
|
|
4,862,924
|
|
|
|
|
4,490,912
|
|
|
|
|
|
|
|
|
Total Stockholders' Equity
|
|
|
|
304,600
|
|
|
|
|
263,936
|
|
|
|
|
|
|
|
|
Total Liabilities & Stockholders' Equity
|
|
|
$
|
5,167,524
|
|
|
|
$
|
4,754,848
|
|
|
|
|
|
|
|
|
Total Average Earning Assets - QTD
|
|
|
$
|
4,948,971
|
|
|
|
$
|
4,552,943
|
|
|
|
|
|
|
|
|
Century Bancorp, Inc. and Subsidiaries
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|
|
|
|
|
|
Consolidated Selected Key Financial Information (unaudited)
|
|
|
|
|
(in thousands, except share data)
|
|
|
March 31,
|
|
|
March 31,
|
|
|
|
2019
|
|
|
2018
|
|
|
|
|
|
|
|
Performance Measures:
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|
|
|
|
|
|
|
|
|
|
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|
|
Earnings per average Class A share, diluted, quarter
|
|
|
$
|
1.69
|
|
|
$
|
1.38
|
Return on average assets, quarter
|
|
|
|
0.74%
|
|
|
|
0.66%
|
Return on average stockholders' equity, quarter
|
|
|
|
12.54%
|
|
|
|
11.85%
|
Net interest margin (taxable equivalent), quarter
|
|
|
|
2.11%
|
|
|
|
2.19%
|
Efficiency ratio, quarter- Non-GAAP (1)
|
|
|
|
60.3%
|
|
|
|
62.6%
|
Book value per share
|
|
|
$
|
55.55
|
|
|
$
|
48.17
|
Tangible book value per share - Non-GAAP (1)
|
|
|
$
|
55.07
|
|
|
$
|
47.68
|
Capital / assets
|
|
|
|
5.83%
|
|
|
|
5.61%
|
Tangible capital / tangible assets - Non-GAAP (1)
|
|
|
|
5.78%
|
|
|
|
5.56%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Share Data:
|
|
|
|
|
|
|
Average Class A shares outstanding, diluted, quarter
|
|
|
|
5,567,909
|
|
|
|
5,567,909
|
|
|
|
|
|
|
|
Shares outstanding Class A
|
|
|
|
3,610,329
|
|
|
|
3,608,029
|
Shares outstanding Class B
|
|
|
|
1,957,580
|
|
|
|
1,959,880
|
Total shares outstanding at period end
|
|
|
|
5,567,909
|
|
|
|
5,567,909
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality and Other Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses / loans
|
|
|
|
1.25%
|
|
|
|
1.22%
|
Nonaccrual loans
|
|
|
$
|
1,502
|
|
|
$
|
1,386
|
Nonperforming assets
|
|
|
$
|
3,727
|
|
|
$
|
1,386
|
Loans 90 days past due and still accruing
|
|
|
$
|
-
|
|
|
$
|
-
|
Accruing troubled debt restructures
|
|
|
$
|
2,542
|
|
|
$
|
5,415
|
Net charge-offs(recoveries), quarter
|
|
|
$
|
70
|
|
|
$
|
10
|
|
|
|
|
|
|
|
Leverage ratio
|
|
|
|
6.92%
|
|
|
|
6.77%
|
Common equity tier 1 risk weighted capital ratio
|
|
|
|
11.49%
|
|
|
|
10.79%
|
Tier 1 risk weighted capital ratio
|
|
|
|
12.74%
|
|
|
|
12.10%
|
Total risk weighted capital ratio
|
|
|
|
13.76%
|
|
|
|
13.10%
|
Total risk weighted assets
|
|
|
$
|
2,808,321
|
|
|
$
|
2,660,535
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Non-GAAP Financial Measures are reconciled in the following
tables:
|
|
|
|
|
|
|
|
Calculation of Efficiency ratio:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses(numerator)
|
|
|
$
|
18,190
|
|
|
$
|
18,001
|
|
|
|
|
|
|
|
Net interest income
|
|
|
$
|
23,438
|
|
|
$
|
22,468
|
Total other operating income
|
|
|
|
4,427
|
|
|
|
4,193
|
Tax equivalent adjustment
|
|
|
|
2,294
|
|
|
|
2,077
|
Total income(denominator)
|
|
|
$
|
30,159
|
|
|
$
|
28,738
|
|
|
|
|
|
|
|
Efficiency ratio, quarter - Non-GAAP
|
|
|
|
60.3%
|
|
|
|
62.6%
|
|
|
|
|
|
|
|
Calculation of tangible book value per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders' equity
|
|
|
$
|
309,324
|
|
|
$
|
268,200
|
Less: goodwill
|
|
|
|
2,714
|
|
|
|
2,714
|
Tangible stockholders' equity(numerator)
|
|
|
$
|
306,610
|
|
|
$
|
265,486
|
|
|
|
|
|
|
|
Total shares outstanding at period end(denominator)
|
|
|
|
5,567,909
|
|
|
|
5,567,909
|
|
|
|
|
|
|
|
Tangible book value per share - Non-GAAP
|
|
|
$
|
55.07
|
|
|
$
|
47.68
|
Book value per share - GAAP
|
|
|
$
|
55.55
|
|
|
$
|
48.17
|
|
|
|
|
|
|
|
Calculation of tangible capital / tangible assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders' equity
|
|
|
$
|
309,324
|
|
|
$
|
268,200
|
Less: goodwill
|
|
|
|
2,714
|
|
|
|
2,714
|
Tangible stockholders' equity(numerator)
|
|
|
$
|
306,610
|
|
|
$
|
265,486
|
|
|
|
|
|
|
|
Total assets
|
|
|
$
|
5,306,066
|
|
|
$
|
4,776,682
|
Less: goodwill
|
|
|
|
2,714
|
|
|
|
2,714
|
Tangible assets(denominator)
|
|
|
$
|
5,303,352
|
|
|
$
|
4,773,968
|
|
|
|
|
|
|
|
Tangible capital / tangible assets - Non-GAAP
|
|
|
|
5.78%
|
|
|
|
5.56%
|
Capital / assets - GAAP
|
|
|
|
5.83%
|
|
|
|
5.61%
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20190409005924/en/
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