Century bancorp, inc. announces record earnings for q3 2020, up 8%; record assets, loans, and deposits; increase in quarterly dividend declared
Medford, mass.--(business wire)--century bancorp, inc. (nasdaq:cnbka) (www.centurybank.com) (“the company”) today announced net income of $30,609,000 for the nine months ended september 30, 2020, or $5.50 per class a share diluted, an increase of 5.7% compared to net income of $28,967,000, or $5.20 per class a share diluted, for the same period a year ago. total assets increased 14.6% from $5.49 billion at december 31, 2019 to $6.3 billion at september 30, 2020. for the quarter ended september 30, 2020, net income totaled $10,887,000 or $1.96 per class a share diluted, an increase of 8.0% compared to net income of $10,084,000, or $1.81 per class a share diluted, for the same period a year ago. the company's board of directors voted to increase its regular quarterly dividend from 14.00 cents ($0.14) per share to 16.00 cents ($0.16) per share on the company's class a common stock, and from 7.00 cents ($0.07) per share to 8.00 cents ($0.08) per share on the company's class b common stock. the dividends were declared payable november 16, 2020 to stockholders of record on november 2, 2020. net interest income totaled $78.4 million for the nine months ended september 30, 2020 compared to $70.5 million for the same period in 2019. the 11.2% increase in net interest income for the period is primarily due to a decrease in interest expense as a result of falling interest rates. prepayment penalties collected amounted to approximately $946,000 for the first nine months of 2020 compared to $18,000 for the same period last year. the net interest margin decreased from 2.08% on a fully tax-equivalent basis for the first nine months of 2019 to 2.01% for the same period in 2020. this was primarily the result of increased margin pressure during the recent decrease in interest rates across the yield curve. the average balances of earning assets increased for the first nine months of 2020 compared to the same period last year, by $609.0 million or 12.3%, combined with an average yield decrease of 0.55%, resulting in a decrease in interest income of $6.2 million. the average balance of interest-bearing liabilities increased for the first nine months of 2020 compared to the same period last year, by $486.9 million or 12.1%, combined with an average interest-bearing liabilities interest cost decrease of 0.59%, resulting in a decrease in interest expense of $14.1 million. the provision for loan losses increased by $2,975,000 from $700,000 for the nine months ended september 30, 2019 to $3,675,000 for the same period in 2020, primarily as a result of the economic uncertainties associated with the novel coronavirus disease (covid–19) pandemic and increased loan balances. the company’s effective tax rate increased from 2.0% for the nine months ended september 30, 2019 to 9.5% for the same period in 2020. this was primarily as a result of an increase in taxable income relative to total income and a reduction in tax accruals, during 2019, 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. on march 27, 2020, the coronavirus, aid, relief and economic security (cares) act was signed into law. as a result of the cares act, the full balance of the amt credit was refunded in 2020. at september 30, 2020, total equity was $363.4 million compared to $332.6 million at december 31, 2019. the company’s equity increased primarily as a result of earnings, offset somewhat by dividends paid. the company’s leverage ratio stood at 6.79% at september 30, 2020, compared to 7.25% at december 31, 2019. 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 september 30, 2020 was $65.27 per share compared to $59.73 at december 31, 2019. the company’s allowance for loan losses was $33.4 million or 1.12% of loans outstanding at september 30, 2020 compared to $29.6 million or 1.22% of loans outstanding at december 31, 2019, and $29.1 million or 1.22% of loans outstanding at september 30, 2019. the ratio of the allowance for loan losses to loans outstanding has decreased from december 31, 2019, primarily from approximately $232 million of payroll protection program (ppp) loans that are guaranteed by the u.s. small business administration (sba), which require no allowance for loan losses. nonperforming assets totaled $1.4 million at september 30, 2020, compared to $2.0 million at december 31, 2019, and $1.1 million at september 30, 2019. as of september 30, 2020, the company has covid-19 modifications of 33 loans aggregating $37,987,000, primarily consisting of short-term payment deferrals. of these modifications, $37,987,000, or 100%, were performing in accordance with their modified terms. the cares act also allows companies to delay financial accounting standards board (fasb) accounting standards update (asu) 2016-13, measurement of credit losses on financial instruments (cecl), including the current expected credit losses methodology for estimating allowances for credit losses. the company has elected to delay fasb asu 2016-13. this asu will be delayed until the earlier of the date on which the national emergency concerning the covid–19 outbreak declared by the president on march 15, 2020 terminates or december 31, 2020, with an effective retrospective implementation date of january 1, 2020. 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. 2020 2019 $ 101,679 $ 44,420 310,901 214,273 293,277 262,190 2,407,176 2,351,120 13,361 19,471 1,315,407 812,417 130,047 120,455 9,116 8,992 784,895 786,102 443,703 371,897 19,866 21,893 287,099 304,363 2,990,133 2,426,119 33,394 29,585 2,956,739 2,396,534 37,340 33,952 13,223 13,110 2,714 2,714 159,016 154,640 $ 6,295,426 $ 5,492,424 $ 991,590 $ 712,842 1,932,339 1,678,250 1,906,676 1,453,572 581,866 555,447 4,420,881 3,687,269 5,412,471 4,400,111 231,030 266,045 152,248 370,955 383,278 637,000 100,160 86,649 36,083 36,083 5,931,992 5,159,843 363,434 332,581 $ 6,295,426 $ 5,492,424 2020 2019 2020 2019 $ 21,431 $ 22,117 $ 63,478 $ 65,106 14,186 14,623 44,701 43,006 818 2,184 3,493 7,305 69 928 747 3,204 36,504 39,852 112,419 118,621 1,726 5,445 7,569 16,788 3,056 5,050 12,090 15,805 2,858 3,038 9,141 8,724 241 697 1,176 1,572 1,292 1,852 4,093 5,274 9,173 16,082 34,069 48,163 27,331 23,770 78,350 70,458 900 75 3,675 700 26,431 23,695 74,675 69,758 2,239 2,310 6,558 6,801 996 937 2,850 3,018 - - - 154 934 1,039 3,112 3,737 4,169 4,286 12,520 13,710 11,362 10,670 33,020 32,621 1,477 1,463 4,448 4,686 809 862 2,608 2,440 4,519 4,467 13,306 14,170 18,167 17,462 53,382 53,917 12,433 10,519 33,813 29,551 1,546 435 3,204 584 $ 10,887 $ 10,084 $ 30,609 $ 28,967 2020 2019 $ 80,686 $ 74,413 238,525 184,035 293,301 325,036 2,346,502 2,128,082 2,693,000 2,325,136 31,359 28,936 2,661,641 2,296,200 (2,861 ) (3,352 ) 36,253 26,273 12,630 13,942 2,714 2,714 164,804 133,754 $ 5,834,195 $ 5,181,097 $ 889,237 $ 764,852 1,881,897 1,818,017 1,603,367 1,249,531 597,589 512,228 4,082,853 3,579,776 4,972,090 4,344,628 220,796 205,185 169,972 201,804 390,768 406,989 88,028 79,327 36,083 36,083 5,486,969 4,867,027 347,226 314,070 $ 5,834,195 $ 5,181,097 $ 5,881,860 $ 4,971,831 $ 5,571,328 $ 4,962,289 2020 2019 $ 1.96 $ 1.81 $ 5.50 $ 5.20 0.70 % 0.75 % 11.78 % 12.33 % 1.96 % 2.08 % 2.01 % 2.08 % 55.4 % 59.1 % $ 65.27 $ 59.08 $ 64.79 $ 58.59 5.77 % 6.21 % 5.73 % 6.16 % 5,567,909 5,567,909 3,655,469 3,650,449 1,912,440 1,917,460 5,567,909 5,567,909 1.12 % 1.22 % $ 1,419 $ 1,066 $ 1,419 $ 1,066 $ 49 $ - $ 2,240 $ 2,404 $ (134 ) $ 146 6.79 % 7.25 % 11.36 % 11.90 % 12.40 % 13.12 % 13.39 % 14.13 % $ 3,370,541 $ 2,867,422 $ 53,382 $ 53,917 - (139 ) $ 53,382 $ 53,778 $ 78,350 $ 70,458 12,520 13,710 5,558 6,875 $ 96,428 $ 91,043 55.4 % 59.1 % $ 363,434 $ 328,960 2,714 2,714 $ 360,720 $ 326,246 5,567,909 5,567,909 $ 64.79 $ 58.59 $ 65.27 $ 59.08 $ 363,434 $ 328,960 2,714 2,714 $ 360,720 $ 326,246 $ 6,295,426 $ 5,299,181 2,714 2,714 $ 6,292,712 $ 5,296,467 5.73 % 6.16 % 5.77 % 6.21 %
