Century Bancorp Inc. recently announced a 10.8 percent increase in its net income for the six months ended June 30, to $9.5 million from $8.6 million for the same time period last year.
Total assets increased 6.5 percent to $3.3 billion at June 30 from $3.1 billion at Dec. 31, 2012. For the quarter ended June 30, 2013, net income totaled $5,026,000, an increase of 5.3 percent compared with net income of $4,771,000, for the same period a year ago.
Net interest income totaled $29.1 million for the six months ended June 30, compared to $29.8 million for the same period in 2012. The bank attributed the 2.5 percent decrease in net interest income for the period to $640,000 of prepayment penalties collected during the first six months of 2012. The net interest margin decreased to 2.21 percent on a fully taxable equivalent basis in 2013 from 2.5 percent on the same basis for 2012. This was primarily the result of a decrease in asset yields. Also, interest expense decreased primarily as a result of the continued decline in market rates and there was a 12.3 percent increase in the average balances of earning assets, combined with a similar increase in average deposits.
The provision for loan losses decreased by $500,000 to $1.5 million for the six months ended June 30 of this year from $2 million for the six months ended June 30, 2012, primarily as a result of a lower level of charge-off activity. The company capitalized on favorable market conditions for the first six months ended June 30 and realized net gains on sales of investments of $1.7 million, as compared to $590,000 for the same period in 2012. The company’s effective tax rate decreased to 5.8 percent in 2013 from 6.2 percent in 2012, primarily as a result of an increase in tax-exempt income.
The company’s allowance for loan losses was $20.5 million or 1.76 percent of loans outstanding at June 30, compared with $19.2 million or 1.73 percent of loans outstanding at the end of last year and $18.0 million or 1.75 percent of loans outstanding at June 30, 2012. The increase in the allowance for loan losses was due to the increase in the size and composition of the loan portfolio as well as qualitative factors. Non-performing assets totaled $3.3 million at June 30, compared to $4.5 million at Dec. 31, 2012 and $5.3 million at June 30, 2012.
The company’s board of directors voted a regular quarterly dividend of 12 cents per share on the company’s Class A common stock, and 6 cents per share on the company’s Class B common stock, to be paid August 15 to shareholders of record on August 1.
