NEWS RELEASE
FOR IMMEDIATE RELEASE
Contact: Paul V. Cusick, Jr.
Phone: 781-393-4601
Fax: 781-393-4071
CENTURY BANCORP, INC. REPORTS FIRST QUARTER RESULTS AND DECLARES
QUARTERLY DIVIDEND
Medford, MA, April 13, 2004—Century Bancorp Inc. (NASDAQ:CNBKA) (www.century-bank.com) (“the Company”) today announced net income of $2,318,000, or $0.42 per share diluted, for the first quarter ended March 31, 2004, compared to net income of $204,000, or $0.04 per share diluted, for the first quarter of 2003. Included in income for 2003 is the previously announced tax charge of $3,229,000 associated with the Real Estate Investment Trust (“REIT”) settlement. This charge was subsequently reduced to $1,183,000 during the second quarter of 2003 as a the result of an agreement with the Massachusetts Department of Revenue (“DOR”) settling a dispute related to taxes that the DOR claimed were owed from the Company’s REIT.
Net interest income totaled $10.0 million for the quarter ended March 31, 2004, versus $11.7 million for the same period in 2003. The 14.7% decrease in net interest income for the period is mainly due to a seventy-one basis point decrease in the net interest margin. The decrease in the net interest margin was somewhat offset by an 8.7% increase in the average balances of earning assets, combined with a similar increase in deposits. The increase in volume was mainly the result of an acquisition of $192.7 million of deposits from Capital Crossing Bank at the end of the first quarter of 2003 and internal deposit growth during the year. The decrease in the net interest margin was mainly attributable to assets continuing to reprice at historically low levels without a corresponding decrease in rates paid on deposits.
At March 31, 2004, total equity capital was $106.0 million compared to $98.7 million at March 31, 2003. Century’s leverage ratio stood at 7.67% on March 31, 2004 and on March 31, 2003. Book value as of March 31, 2004 was $19.18 per share compared to $17.88 as of March 31, 2003.
Century’s allowance for loan losses was $8.7 million, or 1.66% of loans outstanding at the end of the first quarter, compared to $8.8 million, or 1.76% of loans outstanding at March 31, 2003. Non-accruing loans totaled $0.7 million at March 31, 2004, compared to $1.2 million at the end of the previous quarter and $0.5 million at March 31, 2003.
Century’s Board of Directors voted a regular quarterly dividend of 12.00 cents ($0.12) per share on Century Class A common stock, and 6.00 cents ($0.06) per share on Century Class B common stock. The dividends were declared payable May 14, 2004 to stockholders of record on April 30, 2004.
Century Bancorp, Inc., through its subsidiary bank, Century Bank and Trust Company, a state chartered full service commercial bank, operating twenty-one full-service branches in the Greater Boston area, offers a full range of Business, Personal, Cash Management, Municipal and Investment products.
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 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
Consolidated Comparative Statements of Condition
March 31, 2004 and 2003 (000’s)
| (unaudited) | (unaudited) | |||||||
| March 31, | March 31, | |||||||
| Assets | 2004 | 2003 | ||||||
| Cash and Due From Banks | $ | 54,269 | $ | 74,423 | ||||
| Federal Funds Sold and Interest-bearing Deposits In Other Banks | 39,079 | 93,019 | ||||||
| Securities Available-For-Sale (AFS) | 637,649 | 878,546 | ||||||
| Securities Held-to-Maturity | 296,418 | 168,969 | ||||||
| Loans: | ||||||||
| Commercial & Industrial | 43,642 | 46,360 | ||||||
| Construction & Land Development | 33,503 | 31,404 | ||||||
| Commercial Real Estate | 295,816 | 281,837 | ||||||
| Residential Real Estate | 87,834 | 89,524 | ||||||
| Consumer and Other | 7,990 | 9,229 | ||||||
| Home Equity | 53,269 | 39,764 | ||||||
| Total Loans | 522,054 | 498,118 | ||||||
| Less: Allowance for Loan Losses | 8,673 | 8,751 | ||||||
| Net Loans | 513,381 | 489,367 | ||||||
| Bank Premises and Equipment | 22,740 | 14,451 | ||||||
| Accrued Interest Receivable | 7,323 | 9,643 | ||||||
| Goodwill | 2,714 | 2,717 | ||||||
| Core Deposit Intangible | 3,126 | 4,059 | ||||||
| Other Assets | 24,381 | 16,220 | ||||||
| Total Assets | $ | 1,601,080 | $ | 1,751,414 | ||||
Liabilities | ||||||||
| Demand Deposits | $ | 264,044 | $ | 252,972 | ||||
| Interest Bearing Deposits: | ||||||||
| Savings and NOW Deposits | 297,840 | 330,235 | ||||||
| Money Market Accounts | 464,254 | 455,162 | ||||||
| Time Deposits | 206,706 | 278,382 | ||||||
| Total Interest Bearing | 968,800 | 1,063,779 | ||||||
| Total Deposits | 1,232,844 | 1,316,751 | ||||||
| Borrowed Funds: | ||||||||
| Securities Sold Under Agreements to Repurchase | 42,370 | 52,710 | ||||||
| Federal Home Loan Bank Advances and Other Borrowed Funds | 149,628 | 126,835 | ||||||
| Total Borrowed Funds | 191,998 | 179,545 | ||||||
| Other Liabilities | 24,997 | 22,701 | ||||||
| Investments Purchased Payable | 15,614 | 104,995 | ||||||
| Long Term Debt | 29,639 | 28,750 | ||||||
| Total Liabilities | 1,495,092 | 1,652,742 | ||||||
Stockholders’ Equity | ||||||||
| Common Stock | 5,956 | 5,949 | ||||||
| Additional Paid-In-Capital | 11,234 | 11,128 | ||||||
| Retained Earnings | 93,209 | 81,469 | ||||||
| Treasury Stock | (5,982 | ) | (5,982 | ) | ||||
| Accumulated Other Comprehensive Income, Net of Taxes | 1,571 | 6,108 | ||||||
| Total Stockholders’ Equity | 105,988 | 98,672 | ||||||
| Total Liabilities & Stockholders’ Equity | $ | 1,601,080 | $ | 1,751,414 | ||||
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Century Bancorp, Inc. and Subsidiaries
Consolidated Comparative Statements of Income
For the Quarter and Year-to-date ending
March 31, 2004 and 2003 (000’s)
(unaudited)
| Quarter and Year-to-date | ||||||||
| 2004 | 2003 | |||||||
| Interest Income: | ||||||||
| Loans | $ | 8,082 | $ | 8,533 | ||||
| Securities Held-to-Maturity | 2,282 | 1,519 | ||||||
| Securities Available-for-Sale | 5,276 | 7,618 | ||||||
| Federal Funds Sold and Interest-bearing Deposits In Other Banks | 322 | 69 | ||||||
| Total Interest Income | 15,962 | 17,739 | ||||||
| Interest Expense: | ||||||||
| Savings and NOW Deposits | 537 | 739 | ||||||
| Money Market Accounts | 1,250 | 1,153 | ||||||
| Time Deposits | 1,979 | 1,662 | ||||||
| Securities Sold Under Agreements to Repurchase | 78 | 140 | ||||||
| FHLB Borrowings, Other Borrowed Funds and Long Term Debt | 2,161 | 2,366 | ||||||
| Total Interest Expense | 6,005 | 6,060 | ||||||
| Net Interest Income | 9,957 | 11,679 | ||||||
| Provision For Loan Losses | 0 | 225 | ||||||
| Net Interest Income After Provision for Loan Losses | 9,957 | 11,454 | ||||||
| Other Operating Income | ||||||||
| Service Charges on Deposit Accounts | 1,196 | 1,145 | ||||||
| Lockbox Fees | 735 | 801 | ||||||
| Brokerage Commissions | 166 | 135 | ||||||
| Net Gains on Sales of Securities | 104 | 0 | ||||||
| Other Income | 552 | 227 | ||||||
| Total Other Operating Income | 2,753 | 2,308 | ||||||
| Operating Expenses | ||||||||
| Salaries | 4,153 | 4,041 | ||||||
| Employee Benefits | 1,485 | 1,322 | ||||||
| Occupancy | 792 | 650 | ||||||
| Equipment | 558 | 288 | ||||||
| Other | 2,076 | 2,039 | ||||||
| Total Operating Expenses | 9,064 | 8,340 | ||||||
| Income Before Income Taxes | 3,646 | 5,422 | ||||||
| Income Tax Expense | ||||||||
| Provision for Income Taxes | 1,328 | 1,989 | ||||||
| Retroactive REIT Settlement | 0 | 3,229 | ||||||
| Total Income Tax (Benefit) Expense | 1,328 | 5,218 | ||||||
| Net Income | $ | 2,318 | $ | 204 | ||||
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Century Bancorp, Inc. and Subsidiaries
Consolidated Year-to-Date Average Comparative Statements of Condition
March 31, 2004 and 2003 (000’s)
| March 31, | March 31, | |||||||
| Assets | 2004 | 2003 | ||||||
| Cash and Due From Banks | $ | 64,622 | $ | 60,342 | ||||
| Federal Funds Sold and Interest-Bearing Deposits in Other Banks | 152,661 | 23,719 | ||||||
| Securities Available-For-Sale (AFS) | 634,455 | 756,161 | ||||||
| Securities Held-to-Maturity | 222,568 | 121,768 | ||||||
| Total Loans | 515,747 | 501,831 | ||||||
| Less: Allowance for Loan Losses | 8,841 | 8,629 | ||||||
| Net Loans | 506,906 | 493,202 | ||||||
| Bank Premises and Equipment | 22,380 | 13,222 | ||||||
| Accrued Interest Receivable | 8,128 | 9,695 | ||||||
| Goodwill | 2,714 | 2,717 | ||||||
| Core Deposit Intangible | 3,177 | 437 | ||||||
| Other Assets | 26,668 | 23,310 | ||||||
| Total Assets | $ | 1,644,279 | $ | 1,504,573 | ||||
Liabilities | ||||||||
| Demand Deposits | $ | 277,937 | $ | 250,413 | ||||
| Interest Bearing Deposits: | ||||||||
| Savings and NOW Deposits | 318,844 | 333,450 | ||||||
| Money Market Accounts | 419,922 | 318,956 | ||||||
| Time Deposits | 289,144 | 221,133 | ||||||
| Total Interest Bearing | 1,027,910 | 873,539 | ||||||
| Total Deposits | 1,305,847 | 1,123,952 | ||||||
| Borrowed Funds: | ||||||||
| Securities Sold Under Agreements to Repurchase | 40,685 | 54,612 | ||||||
| Federal Home Loan Bank Advances and Other Borrowed Funds | 145,916 | 172,326 | ||||||
| Total Borrowed Funds | 186,601 | 226,938 | ||||||
| Other Liabilities | 16,232 | 24,041 | ||||||
| Long Term Debt | 29,639 | 28,750 | ||||||
| Total Liabilities | 1,538,319 | 1,403,681 | ||||||
Stockholders’ Equity | ||||||||
| Common Stock | 5,956 | 5,949 | ||||||
| Additional Paid-In Capital | 11,230 | 11,125 | ||||||
| Retained Earnings | 92,572 | 83,119 | ||||||
| Treasury Stock | (5,982 | ) | (5,982 | ) | ||||
| Accumulated Other Comprehensive Income, Net of Taxes | 2,184 | 6,681 | ||||||
| Total Stockholders’ Equity | 105,960 | 100,892 | ||||||
| Total Liabilities & Stockholders’ Equity | $ | 1,644,279 | $ | 1,504,573 | ||||
| Total Average Earning Assets — QTD & YTD | $ | 1,525,431 | $ | 1,403,479 | ||||
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Century Bancorp, Inc. and Subsidiaries
Consolidated Selected Key Financial Information
March 31, 2004 and 2003 (000’s)
| 2004 | 2003 | |||||||
Performance Measures: | ||||||||
| Earnings per average share, basic, quarter | $ | 0.42 | $ | 0.04 | ||||
| Earnings per average share, diluted, quarter | $ | 0.42 | $ | 0.04 | ||||
| Earnings per average share, basic, year-to-date | $ | 0.42 | $ | 0.04 | ||||
| Earnings per average share, diluted, year-to-date | $ | 0.42 | $ | 0.04 | ||||
| Return on average assets, year-to-date | 0.57 | % | 0.06 | % | ||||
| Return on average stockholders’ equity, year-to-date | 8.80 | % | 0.82 | % | ||||
| Net interest margin (taxable equivalent), year-to-date | 2.61 | % | 3.33 | % | ||||
| Efficiency ratio, year-to-date | 71.3 | % | 59.6 | % | ||||
| Book value per share | $ | 19.18 | $ | 17.88 | ||||
| Tangible book value per share | $ | 18.13 | $ | 16.66 | ||||
| Tangible capital / tangible assets | 6.28 | % | 5.27 | % | ||||
| Common Share Data: | ||||||||
| Average shares outstanding, basic, quarter | 5,524,659 | 5,517,616 | ||||||
| Average shares outstanding, basic, year-to-date | 5,524,659 | 5,517,616 | ||||||
| Average shares outstanding, diluted, quarter | 5,557,984 | 5,537,151 | ||||||
| Average shares outstanding, diluted, year-to-date | 5,557,984 | 5,537,151 | ||||||
| Shares outstanding Class A | 3,419,073 | 3,402,725 | ||||||
| Shares outstanding Class B | 2,105,740 | 2,115,100 | ||||||
| Total shares outstanding | 5,524,813 | 5,517,825 | ||||||
Assets Quality and Other Data: | ||||||||
| Allowance for loan losses / loans | 1.66 | % | 1.76 | % | ||||
| Nonaccrual loans | $ | 709 | $ | 533 | ||||
| Nonperforming assets | $ | 709 | $ | 533 | ||||
| Loans 90 days past due and still accruing | $ | 0 | $ | 1 | ||||
| Net charge-offs (recoveries) | $ | 96 | ($20 | ) | ||||
| Leverage ratio | 7.67 | % | 7.67 | % | ||||
| Tier 1 risk weighted capital ratio | 16.97 | % | 15.85 | % | ||||
| Total risk weighted capital ratio | 18.14 | % | 17.07 | % | ||||
| Total risk weighted assets | $ | 739,563 | $ | 722,887 | ||||
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