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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT: APRIL 8, 2003
CENTURY BANCORP, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
MASSACHUSETTS ______
(STATE OR OTHER JURISDICTION OF (COMMISSION FILE NO.) 04-2498617
INCORPORATION) 0-15752 (IRS EMPLOYER IDENTIFICATION NO.)
400 MYSTIC AVENUE 02155
MEDFORD, MA (ZIP CODE)
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)
(781) 391-4000
(REGISTRANT'S TELEPHONE NUMBER,
INCLUDING AREA CODE)
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Item 5. Other Events.
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On April 8, 2003, Century Bancorp, Inc. (the "Company"), the Massachusetts
bank holding company for Century Bank and Trust Company, issued a press release
announcing the Company's results for the quarter ended March 31, 2003. The
Company is attaching this press release as Exhibit 99.1 to this Current Report
on Form 8-K
Item 7. Financial Statements, Pro forma Financial Information and Exhibits.
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(A)(B) Inapplicable
(C) Exhibits
99.1 Press Release issued by the Company on April 8, 2003 for the quarter
ended March 31, 2003.
SIGNATURES
Pursuant to the requirement of the Securities and Exchange Act of 1934,
the Company has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
CENTURY BANCORP, INC.
/s/ Paul V. Cusick, Jr.
_____________________
Paul V. Cusick, Jr.
Chief Financial Officer
Dated: April 8, 2003
Exhibit 99.1
[GRAPHIC OMITTED]
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 8, 2003---Century Bancorp Inc. (NASDAQ:CNBKA) () today
announced net income of $204,000, or $0.04 per share diluted, for the first
quarter ended March 31, 2003, compared to net income of $3,004,000, or $0.54
per share diluted, for the first quarter of 2002. Included in income for the
quarter ended March 31, 2003 is the previously announced net tax charge of
$3,229,000 associated with recent Massachusetts legislation that disallows the
dividend deduction from a REIT. The tax charge includes additional state excise
taxes, including interest (net of the federal tax deduction associated with
such taxes and interest), relating to the years 1999 through 2002. Century's
income before income taxes increased $666,000 or 14.0%.
At March 31, 2003, total equity capital was $98.7 million compared to $82.9
million at March 31, 2002. Century's leverage ratio stood at 7.67% on March 31,
2003, compared to 9.12% for the same period a year ago. Book value as of March
31, 2003 was $17.88 per share compared to $15.03 for the same period last year.
Century's allowance for loan losses was $8.8 million, or 1.76% of loans
outstanding at the end of the first quarter, compared to $7.4 million, or 1.59%
of loans outstanding at March 31, 2002. Non-accruing loans totaled $0.5 million
at March 31, 2003, compared to $0.5 million at the end of the previous quarter
and $0.7 million at March 31, 2002.
Net interest income totaled $11.7 million for the quarter ended March 31, 2003,
versus $11.0 million for the same period in 2002. The 6.4% increase in net
interest income for the year is mainly due to a 27.5% increase in the average
balances of earning assets, combined with a similar increase in deposits and
borrowed funds. The increase in volume was partially offset by a sixty-three
basis point decrease in the net interest margin.
--more --
On March 21, 2003, the Company completed the acquisition of Capital Crossings
Bank's "Capital Crossing" branch office at 1220 Boylston Street, Chestnut Hill,
Massachusetts, and substantially all of the retail deposits at Capital
Crossing's main office at 101 Summer Street, Boston, Massachusetts. Century
closed the Chestnut Hill branch and transferred all customers of the branch to
its nearby branch office at 1184 Boylston Street, Brookline, Massachusetts. In
addition, Century transferred all of the retail deposits from Capital
Crossing's Summer Street branch to its branch at 24 Federal Street, Boston,
Massachusetts. The acquisition included $192.7 million in deposits.
Century's Board of Directors voted a regular quarterly dividend of 11.00 cents
($0.11) per share on Century Class A common stock, and 5.50 cents ($0.0550) per
share on Century Class B common stock. The dividends were declared payable May
15, 2003 to stockholders of record on May 1, 2003.
Century Bancorp, Inc., through its subsidiary bank, Century Bank and Trust
Company, a state chartered full service commercial bank, operating nineteen
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.
Century Bancorp, Inc. and Subsidiaries
Consolidated Comparative Statements of Condition
March 31, 2003 and 2002 (000's)
March 31, March 31,
Assets 2003 2002
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Cash and Due From Banks $74,423 $46,188
Federal Funds Sold and Interest-bearing Deposits In Other Banks 93,019 17
Securities Available-For-Sale (AFS) 878,546 551,002
Securities Held-to-Maturity 168,969 127,986
Loans:
Commercial & Industrial 46,360 49,465
Construction & Land Development 31,404 37,315
Commercial Real Estate 281,837 250,184
Residential Real Estate 89,524 92,593
Consumer and Other 9,229 8,164
Home Equity 39,764 29,963
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Total Loans 498,118 467,684
Less: Allowance for Loan Losses 8,751 7,444
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Net Loans 489,367 460,240
Bank Premises and Equipment 14,451 11,751
Accrued Interest Receivable 9,643 8,978
Goodwill 2,717 2,717
Core Deposit Intangible 4,059 117
Other Assets 16,220 13,783
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Total Assets $1,751,414 $1,222,779
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Liabilities
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Demand Deposits $252,972 $212,186
Interest Bearing Deposits:
Savings and NOW Deposits 285,437 199,893
Money Market Accounts 455,162 272,865
Time Deposits 323,180 183,902
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Total Interest Bearing 1,063,779 656,660
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Total Deposits 1,316,751 868,846
Borrowed Funds:
Securities Sold Under Agreements to Repurchase 52,710 66,440
Federal Home Loan Bank Advances and Other 126,835 157,674
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Total Borrowed Funds 179,545 224,114
Other Liabilities 127,696 18,157
Long Term Debt 28,750 28,750
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Total Liabilities 1,652,742 1,139,867
Stockholders' Equity
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Common Stock 5,949 5,947
Additional Paid-In Capital 11,128 11,101
Retained Earnings 81,469 72,681
Treasury Stock (5,982) (5,982)
Accumulated Other Comprehensive Income, Net of Taxes 6,108 (835)
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Total Stockholders' Equity 98,672 82,912
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Total Liabilities & Stockholders' Equity $1,751,414 $1,222,779
=============== ==============
Century Bancorp, Inc. and Subsidiaries
Consolidated Comparative Statements of Income
For the Quarter and Year-to-date ending
March 31, 2003 and 2002 (000's)
(unaudited)
Quarter & Year-to-date
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2003 2002
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Interest Income:
Loans $8,533 $8,587
Securities Held-to-Maturity 1,519 1,959
Securities Available-for-Sale 7,618 6,095
Federal Funds Sold and Interest-bearing Deposits In Other Banks 69 141
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Total Interest Income 17,739 16,782
Interest Expense:
Savings and NOW Deposits 494 585
Money Market Accounts 1,153 1,025
Time Deposits 1,907 1,909
Securities Sold Under Agreements to Repurchase 140 189
FHLB Borrowings, Other Borrowed Funds and Long Term Debt 2,366 2,098
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Total Interest Expense 6,060 5,806
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Net Interest Income 11,679 10,976
Provision For Loan Losses 225 300
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Net Interest Income After
Provision for Loan Losses 11,454 10,676
Other Operating Income
Service Charges on Deposit Accounts 1,145 1,077
Lockbox Fees 801 887
Brokerage Commissions 135 267
Other Income 227 217
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Total Other Operating Income 2,308 2,448
Operating Expenses
Salaries 4,041 4,131
Employee Benefits 1,322 1,092
Occupancy 650 571
Equipment 288 539
Other 2,039 2,035
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Total Operating Expenses 8,340 8,368
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Income Before Income Taxes 5,422 4,756
Provision for Income Taxes 5,218 1,752
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Net Income $204 $3,004
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Century Bancorp, Inc. and Subsidiaries
Consolidated Year-to-Date Average Comparative Statements of Condition
March 31, 2003 and 2002 (000's)
March 31, March 31,
Assets 2003 2002
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Cash and Due From Banks $60,342 $56,261
Federal Funds Sold and Interest-Bearing Deposits in Other
Banks 23,719 34,691
Securities Available-For-Sale (AFS) 767,645 485,566
Securities Held-to-Maturity 121,768 135,332
Total Loans 501,831 457,775
Less: Allowance for Loan Losses 8,629 7,278
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Net Loans 493,202 450,497
Bank Premises and Equipment 13,222 11,840
Accrued Interest Receivable 9,695 8,202
Goodwill 2,717 2,717
Core Deposit Intangible 437 142
Other Assets 11,826 12,989
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Total Assets $1,504,573 $1,198,237
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Liabilities
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Demand Deposits $250,413 $220,135
Interest Bearing Deposits:
Savings and NOW Deposits 289,128 220,810
Money Market Accounts 318,956 225,964
Time Deposits 265,455 198,971
Total Interest Bearing --------------- ---------------
873,539 645,745
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Total Deposits 1,123,952 865,880
Borrowed Funds:
Securities Sold Under Agreements to Repurchase 54,612 67,399
Federal Home Loan Bank Advances and Other 172,326 133,059
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Total Borrowed Funds 226,938 200,458
Other Liabilities 24,041 17,794
Long Term Debt 28,750 28,750
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Total Liabilities 1,403,681 1,112,882
Stockholders' Equity
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Common Stock 5,949 5,947
Additional Paid-In Capital 11,125 11,096
Retained Earnings 83,119 71,685
Treasury Stock (5,982) (5,982)
Accumulated Other Comprehensive Income, Net of Taxes 6,681 2,609
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Total Stockholders' Equity 100,892 85,355
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Total Liabilities & Stockholders' Equity $1,504,573 $1,198,237
=============== ===============
Total Earning Assets 1,414,963 1,109,349
=============== ===============
Century Bancorp, Inc. and Subsidiaries
Consolidated Selected Key Financial Information
March 31, 2003 and 2002 (000's)
2003 2002
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PERFORMANCE MEASURES:
Earnings per average share, basic, quarter $0.04 $0.54
Earnings per average share, diluted, quarter $0.04 $0.54
Earnings per average share, basic , year-to-date $0.04 $0.54
Earnings per average share, diluted, year-to-date $0.04 $0.54
Return on average assets 0.06% 1.02%
Return on average stockholders' equity 0.82% 14.27%
Net interest margin (taxable equivalent) 3.33% 3.96%
Efficiency ratio 59.6% 62.3%
Book value per share $17.88 $15.03
Common Share Data:
Average shares outstanding, basic, quarter 5,517,616 5,515,350
Average shares outstanding, basic, year-to-date 5,517,616 5,515,350
Average shares outstanding, diluted, quarter 5,537,151 5,526,697
Average shares outstanding, diluted, year-to-date 5,537,151 5,526,697
Shares outstanding Class A 3,402,725 3,391,170
Shares outstanding Class B 2,115,100 2,124,730
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Total shares outstanding 5,517,825 5,515,900
============== ==============
ASSETS QUALITY AND OTHER DATA:
Allowance for loan losses / loans 1.76% 1.59%
Nonaccrual loans $533 $701
Nonperforming assets $533 $701
Loans 90 days past due and still accruing $1 $8
Net (recoveries) charge-offs ($20) ($32)
Leverage ratio 7.67% 9.12%
Tier 1 risk weighted capital ratio 15.85% 18.20%
Total risk weighted capital ratio 17.07% 19.59%
Total risk weighted assets $722,887 $597,120