-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, TwpffPp8GUYA4qQyXwE2qg7Z/Aru2PA+CW4zgZcOr3KD4stLSnIUf8YxW9Zhy0/q 3W4hd3l5+a7dUb5lGTj4Cw== /in/edgar/work/0000950135-00-004971/0000950135-00-004971.txt : 20001114 0000950135-00-004971.hdr.sgml : 20001114 ACCESSION NUMBER: 0000950135-00-004971 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20000930 FILED AS OF DATE: 20001113 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CENTURY BANCORP INC CENTRAL INDEX KEY: 0000812348 STANDARD INDUSTRIAL CLASSIFICATION: [6022 ] IRS NUMBER: 042498617 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-15752 FILM NUMBER: 760203 BUSINESS ADDRESS: STREET 1: 400 MYSTIC AVENUE CITY: MEDFORD STATE: MA ZIP: 01887 BUSINESS PHONE: 6173934606 MAIL ADDRESS: STREET 1: 400 MYSTIC AVE CITY: MEDFORD STATE: MA ZIP: 01887 10-Q 1 b37165cee10-q.txt CENTURY BANCORP, INC. 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) [ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended SEPTEMBER 30, 2000 -------------------------------------------------- or [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ------------------------------------------------- Commission file number. 0-15752 --------------------------------------------------------- CENTURY BANCORP, INC. - -------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) COMMONWEALTH OF MASSACHUSETTS 04-2498617 - ------------------------------------------------------------------------------------------------------------------------ (State or other jurisdiction of incorporation or organization) (I.R.S. Employer IdentificationNo.) 400 MYSTIC AVENUE, MEDFORD, MA 02155 - ------------------------------------------------------------------------------------------------------------------------ (Address of principal executive offices) (Zip Code)
(781)391-4000 - -------------------------------------------------------------------------------- (Registrant's telephone number, including area code) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by section 13 or 15(d) of the Securities and Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. X Yes No --- --- Indicate the number of shares outstanding of each of the registrant's classes of common stock as of September 30, 2000: CLASS A COMMON STOCK, $1.00 PAR VALUE 3,416,000 SHARES CLASS B COMMON STOCK, $1.00 PAR VALUE 2,144,350 SHARES SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. Date: NOVEMBER 13, 2000 CENTURY BANCORP, Inc. -------------------------------- ----------------------------------------- (Registrant) /s/ Paul V. Cusick, Jr. /s/ Kenneth A. Samuelian - ---------------------------------- --------------------------------------- PAUL V. CUSICK, JR. KENNETH A. SAMUELIAN VICE PRESIDENT AND TREASURER VICE PRESIDENT AND CONTROLLER, (PRINCIPAL FINANCIAL OFFICER) CENTURY BANK & TRUST COMPANY (CHIEF ACCOUNTING OFFICER) 1 of 13 2 Century Bancorp, Inc. Page Index Number ----- ------ PART I. FINANCIAL INFORMATION Item 1. FINANCIAL STATEMENTS Consolidated Balance Sheets: September 30, 2000 and December 31, 1999. 3 Consolidated Statements of Income: Three (3) Months Ended September 30, 2000 and 1999; and Nine (9) Months 4 Ended September 30, 2000 and 1999. Consolidated Statements of Changes in Stockholders, Equity: Nine (9) Months Ended September 30, 2000 and 1999. 5 Consolidated Statements of Cash Flows: Nine (9) Months Ended September 30, 2000 and 1999. 6 Notes to Consolidated Financial Statements 7 - 8 Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 9 - 12 Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK 13 PART II. OTHER INFORMATION Item 1 through Item 6 13 2 of 13 3 PART I - Item 1
Century Bancorp, Inc. - Consolidated Balance Sheets (unaudited) - ------------------------------------------------------------------------------------------------------------- (000's) Sept. 30, Dec. 31, ASSETS 2000 1999 --------- --------- Cash and due from banks $ 48,724 $ 34,512 Federal funds sold and interest-bearing deposits in other banks 7 32,016 --------- --------- Total cash and cash equivalents 48,731 66,528 --------- --------- Securities available-for-sale, amortized cost $269,310 and $263,690, respectively 263,519 254,975 Securities held-to-maturity, market value $167,311 and $146,603, respectively 171,048 152,599 Loans, net of unearned discount: Commercial & industrial 88,620 77,166 Construction & land development 20,551 21,682 Commercial real estate 208,299 209,332 Industrial revenue bonds 137 190 Residential real estate 82,711 82,968 Consumer 9,948 11,678 Home equity 21,046 19,227 Overdrafts 664 482 --------- --------- Total loans, net of unearned discount 431,976 422,725 Less: allowance for loan losses 5,206 7,646 --------- --------- Net loans 426,770 415,079 Bank premises and equipment, net 8,855 9,473 Accrued interest receivable 8,111 6,624 Other assets 18,872 20,255 --------- --------- Total assets $ 945,906 $ 925,533 ========= ========= LIABILITIES Deposits: Demand deposits $ 174,098 $ 143,280 Savings and NOW deposits 169,444 152,089 Money market accounts 82,235 77,729 Time deposits 237,480 270,575 --------- --------- Total deposits 663,257 643,673 Securities sold under agreements to repurchase 61,190 59,480 Federal Home Loan Bank (FHLB) borrowings and other borrowed funds 114,574 117,594 Other liabilities 11,314 15,740 Long term debt 28,750 28,750 --------- --------- Total liabilities 879,085 865,237 STOCKHOLDERS' EQUITY Class A common stock, $1.00 par value per share; authorized 10,000,000 shares; issued 3,754,600 and 3,721,850, respectively 3,755 3,722 Class B common stock, $1.00 par value per share; authorized 5,000,000 shares; issued 2,191,900 and 2,196,900, respectively 2,192 2,197 Additional paid-in capital 11,093 11,017 Retained earnings 58,687 52,188 Treasury stock, Class A, 338,600 and 200,600 shares, at cost, respectively (5,101) (3,122) Treasury stock, Class B, 47,550 shares, each period, at cost, respectively (41) (41) --------- --------- 70,585 65,961 Accumulated other comprehensive (loss) (3,764) (5,665) --------- --------- Total stockholders' equity 66,821 60,296 --------- --------- Total liabilities and stockholders' equity $ 945,906 $ 925,533 ========= =========
See accompanying Notes to Consolidated Financial Statements. 3 of 13 4
Century Bancorp, Inc. - Consolidated Statements of Income (unaudited) - ---------------------------------------------------------------------------------------------------------------------------------- (000's except share data) Three months ended Sept. 30, Nine months ended Sept. 30, 2000 1999 2000 1999 ---------- ---------- ---------- ---------- Interest income Loans $ 9,968 $ 9,056 $ 29,223 $ 26,540 Securities held-to-maturity 2,684 2,264 7,706 6,957 Securities available-for-sale 4,071 3,341 11,994 9,678 Federal funds sold and interest-bearing deposits in other banks 220 21 424 240 ---------- ---------- ---------- ---------- Total interest income 16,943 14,682 49,347 43,415 Interest expense Savings and NOW deposits 1,035 908 3,071 2,894 Money market accounts 602 517 1,676 1,627 Time deposits 3,509 2,751 9,881 8,447 Securities sold under agreements to repurchase 715 472 2,137 1,289 FHLB borrowings, other borrowed funds and long term debt 2,097 1,880 6,287 4,964 ---------- ---------- ---------- ---------- Total interest expense 7,958 6,528 23,052 19,221 ---------- ---------- ---------- ---------- Net interest income 8,985 8,154 26,295 24,194 Provision for loan losses 375 225 1,050 675 ---------- ---------- ---------- ---------- Net interest income after provision for loan losses 8,610 7,929 25,245 23,519 Other operating income Service charges on deposit accounts 573 469 1,559 1,349 Lockbox fees 759 447 1,763 1,355 Brokerage commissions 317 358 1,172 1,125 Other income 123 133 797 408 ---------- ---------- ---------- ---------- Total other operating income 1,772 1,407 5,291 4,237 ---------- ---------- ---------- ---------- Operating expenses Salaries and employee benefits 4,018 3,589 11,832 10,659 Occupancy 405 378 1,182 1,142 Equipment 428 337 1,207 1,009 Other 1,698 1,309 4,619 4,152 ---------- ---------- ---------- ---------- Total operating expenses 6,549 5,613 18,840 16,962 ---------- ---------- ---------- ---------- Income before income taxes 3,833 3,723 11,696 10,794 Provision for income taxes 1,307 1,275 4,124 3,925 ---------- ---------- ---------- ---------- Net income $ 2,526 $ 2,448 $ 7,572 $ 6,869 ========== ========== ========== ========== - ---------------------------------------------------------------------------------------------------------------------------------- Share data: Weighted average number of shares outstanding, basic 5,560,350 5,804,096 5,611,714 5,814,641 Weighted average number of shares outstanding, diluted 5,560,350 5,827,577 5,612,371 5,843,089 Net income per share, basic $ 0.45 $ 0.42 $ 1.35 $ 1.18 Net income per share, diluted $ 0.45 $ 0.42 $ 1.35 $ 1.18 Cash dividends declared: Class A common stock $ 0.0900 $ 0.0800 $ 0.2500 $ 0.2200 Class B common stock $ 0.0450 $ 0.0370 $ 0.1190 $ 0.0910
See accompanying Notes to Consolidated Financial Statements. 4 of 13 5
Century Bancorp, Inc. - Consolidated Statement of Changes in Stockholders' Equity (unaudited) - ------------------------------------------------------------------------------------------------------------------------------------ Accumulated Class A Class B Additional Treasury Treasury Other Total Common Common Paid-In Retained Stock Stock Comprehensive Stockholders' Nine months ended September 30, Stock Stock Capital Earnings Class A Class B Income (Loss) Equity -------------------------------------------------------------------------------------------- (000's) 1999 Balance at December 31, 1998 $ 3,673 $ 2,227 $ 10,965 $ 44,451 $ (136) $ (41) $ (88) $ 61,051 Net income -- -- -- 6,869 -- -- -- 6,869 Other comprehensive income, net of tax: Increase in unrealized loss on securities available-for-sale -- -- -- -- -- -- (3,948) (3,948) -------- Comprehensive income 2,921 Conversion of Class B common stock to Class A common stock, 29,420 shares 29 (29) Stock options exercised, 17,533 shares 18 -- 48 -- -- -- -- 66 Treasury stock repurchase, 76,300 shares -- -- -- -- (1,390) -- -- (1,390) Cash dividends, Class A common stock, $.220 per share -- -- -- (805) -- -- -- (805) Cash dividends, Class B common stock, $.091 per share -- -- -- (196) -- -- -- (196) -------------------------------------------------------------------------------------------- Balance at September 30, 1999 $ 3,720 $ 2,197 $ 11,013 $ 50,319 $ (1,526) $ (41) $ (4,036) $ 61,646 ============================================================================================ 2000 Balance at December 31, 1999 $ 3,722 $ 2,197 $ 11,017 $ 52,188 $ (3,122) $ (41) $ (5,665) $ 60,296 Net income -- -- -- 7,572 -- -- -- 7,572 Other comprehensive income, net of tax: Decrease in unrealized loss on securities available-for-sale -- -- -- -- -- -- 1,901 1,901 -------- Comprehensive income 9,473 Conversion of Class B common stock to Class A common stock, 5,000 shares 5 (5) -- -- -- -- -- -- Stock options exercised, 27,750 shares 28 -- 76 -- -- -- -- 104 Treasury stock repurchases, 138,000 shares -- -- -- -- (1,979) -- -- (1,979) Cash dividends, Class A common stock, $.24 per share -- -- -- (836) -- -- -- (836) Cash dividends, Class B common stock, $.111 per share -- -- -- (237) -- -- -- (237) -------------------------------------------------------------------------------------------- Balance at September 30, 2000 $ 3,755 $ 2,192 $ 11,093 $ 58,687 $ (5,101) $ (41) $ (3,764) $ 66,821 ============================================================================================
See accompanying Notes to Consolidated Financial Statements. 5 of 13 6
Century Bancorp, Inc. - Consolidated Statements of Cash Flows (unaudited) 2000 1999 - ------------------------------------------------------------------------------------------------------------- For the nine months ended September 30, (000's) CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 7,572 $ 6,869 Adjustments to reconcile net income to net cash provided by operating activities: Provision for loan losses 1,050 675 Decrease (increase) in deferred income taxes 406 (681) Net depreciation and amortization 1,491 1,384 Increase in accrued interest receivable (1,487) (635) Increase in other assets (735) (560) Proceeds from sales of loans 56 145 Gain on sales of loans (1) (2) Gain on sale of building (386) -- Increase in other liabilities 1,574 1,982 -------- -------- Net cash provided by operating activities 9,540 9,177 -------- -------- CASH FLOWS FROM INVESTING ACTIVITIES: Proceeds from maturities of securities available-for-sale 10,428 56,736 Purchase of securities available-for-sale (28,934) (91,918) Proceeds from maturities of securities held-to-maturity 9,076 52,649 Purchase of securities held-to-maturity (14,682) (47,730) Decrease in payable for investments purchased (6,000) (17,992) Net increase in loans (12,513) (12,191) Proceeds from sale of building 1,342 -- Capital expenditures (1,380) (721) -------- -------- Net cash used in investing activities (42,663) (61,167) -------- -------- CASH FLOWS FROM FINANCING ACTIVITIES: Net decrease in time deposits (33,095) (27,499) Net increase (decrease) in demand, savings, money market and NOW deposits 52,679 (33,464) Net proceeds from the issuance of common stock 104 66 Treasury stock repurchases (1,979) (1,390) Cash Dividends (1,073) (1,001) Net increase (decrease) in securities sold under agreements to repurchase 1,710 (8,320) Net (decrease) increase in FHLB borrowings and other borrowed funds (3,020) 95,949 -------- -------- Net cash provided by financing activities 15,326 24,341 -------- -------- Net decrease in cash and cash equivalents (17,797) (27,649) Cash and cash equivalents at beginning of year 66,528 61,019 -------- -------- Cash and cash equivalents at end of period $ 48,731 $ 33,370 ======== ======== SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: Cash paid during the period for: Interest $ 22,046 $ 18,999 Income taxes 2,998 2,567 Change in unrealized losses on securities available-for-sale, net of taxes $ 1,901 ($ 3,948)
See accompanying Notes to Consolidated Financial Statements. 6 of 13 7 Century Bancorp Inc. Notes to Consolidated Financial Statements BASIS OF PRESENTATION In the opinion of management, the accompanying unaudited interim consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, which are necessary to present a fair statement of the results for the interim period presented of Century Bancorp, Inc. (the "Company") and its wholly owned subsidiary, Century Bank and Trust Company (the "Bank"). The results of operations for the interim period ended September 30, 2000, are not necessarily indicative of results for the entire year. It is suggested that these statements be read in conjunction with the consolidated financial statements and the notes thereto included in the Company's Annual Report on Form 10K for year ended December 31, 1999. The financial statements have been prepared in conformity with generally accepted accounting principles and to general practices within the banking industry. In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and revenues and expenses for the period. Actual results could differ from those estimates. Material estimates that are susceptible to change in the near-term relate to the allowance for losses on loans. Management believes that the allowance for losses on loans is adequate based on independent appraisals and review of other factors associated with the assets. While management uses available information to recognize losses on loans, future additions to the allowance for loans may be necessary based on changes in economic conditions. In addition, regulatory agencies periodically review the Company's allowance for losses on loans. Such agencies may require the Company to recognize additions to the allowance for loans based on their judgements about information available to them at the time of their examination. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, the Bank. The Company provides a full range of banking services to consumer, business and municipal customers in Massachusetts. As a bank holding company, the Company is subject to the regulation and supervision of the Federal Reserve Board. The Bank, a state chartered financial institution, is subject to supervision and regulation by applicable state and federal banking agencies, including the Federal Reserve Board, the Federal Deposit Insurance Corporation (the "FDIC"), and the Massachusetts Division of Banks. The Bank is also subject to various requirements and restrictions under federal and state law, including requirements to maintain reserves against deposits, restrictions on the types and amounts of loans that may be granted and the interest that may be charged thereon, and limitations on the types of investments that may be made and the types of services that 7 of 13 8 may be offered. Various consumer laws and regulations also affect the operations of the Bank. In addition to the impact of regulation, commercial banks are affected significantly by the actions of the Federal Reserve Board as it attempts to control the money supply and credit availability in order to influence the economy. All aspects of the Company's business are highly competitive. The Company faces aggressive competition from other lending institutions and from numerous other providers of financial services. ==================================================== 8 of 13 9 ITEM 2 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. OVERVIEW For the quarter ended and year-to-date ended September 30, 2000. Earnings for the third quarter ended September 30, 2000 were $2.5 million, an increase of 3.2% when compared with the third quarter 1999 earnings of $2.4 million. Diluted earnings per share for the third quarter 2000 were $0.45 versus $0.42 for the third quarter of 1999. The increase was attributable to balance sheet growth. For the nine months ending September 30, 2000, earnings were $7.6 million an increase of 10.2% when compared with the same period last year earnings of $6.9 million. Diluted earnings per share for the first nine months were $1.35 versus $1.18 for the first nine months of 1999. The increase was attributable to balance sheet growth and increases in fee income. Total assets were $945.9 million at September 30, 2000 compared to $925.5 million at December 31, 1999. The increase was attributable to loan and investment growth as well as deposit and borrowings growth. During the third quarter of 2000, the Company announced plans to continue its stock repurchase plan. Under the program, the Company is authorized to repurchase up to 300,000 shares, or less than 9%, of Century Bancorp Class A Common Stock. The program expires on July 14, 2001. FINANCIAL CONDITION LOANS On September 30, 2000 total loans outstanding, net of unearned discount, were $432.0 million, an increase of 2.2% from the total on December 31, 1999. At September 30, 2000 commercial real estate loans accounted for 48.2% and residential real estate loans accounted for 24.0% of total loans. Construction loans decreased to $20.6 million at September 30, 2000 from $21.7 million on December 31, 1999. The increase in loans was mainly attributable to corporate loans which are comprised of commercial, construction and commercial real estate lending. Originations of corporate loans reflect the Company's increased interest for this type of loan as well as higher real estate values. The increase in corporate loans was partially offset by a decrease in consumer loans. Consumer loans are comprised mainly of personal installment and personal credit line loans. ALLOWANCE FOR LOAN LOSSES The allowance for loan losses was 1.21% of total loans on September 30, 2000 compared with 1.81% on December 31, 1999. Net charge-offs for the nine month period ended September 30, 2000, were $3.5 million, compared with $43 thousand for the same period in 1999. The increase in net charge-offs primarily reflects the deterioration with one borrower's credit quality whose total relationship amounted to $4.1 million. Management reported this credit in the third quarter 1999 10Q, placed it to nonaccrual loans during the fourth quarter of 1999 and subsequently 9 of 13 10 Management's Discussion and Analysis of Financial Condition and Results of Operation (con't.) charged-off $3.5 million during the first quarter of 2000. Management believes that the allowance for loan losses is adequate. Management uses available information to provide for losses but recognizes that changes in economic conditions may result in additional losses and additional loss provisions. Also, the allowance is reviewed in conjunction with regulatory examinations. These reviews may require the Company to make additional provisions to the allowance based on judgements made by the regulators. September 30, 2000 December 31, 1999 ------------------ ----------------- (Dollars In Thousands) Nonaccruing loans $148 $4,621 Loans past due 90 days or more $ 0 $ 188 Nonaccruing loans as a percentage of total loans .03% 1.09% The decrease in nonaccruing loans was mainly attributable to the previously mentioned $3.5 million charge-off that occurred during the first quarter of 2000. INVESTMENTS Management continually evaluates its investment alternatives in order to properly manage the overall balance sheet mix. The timing of purchases, sales and reinvestment, if any, will be based on various factors including expectation of movements in market interest rates, deposit flows and loan demand. Notwithstanding these events, it is the intent of management to grow the earning asset base through loan originations, loan purchases or investment acquisitions while funding this growth through a mix of retail deposits, FHLB advances, and retail repurchase agreements.
September 30, 2000 December 31, 1999 ------------------ ----------------- (Dollars In Thousands) SECURITIES AVAILABLE-FOR-SALE U.S. Government and Agencies $217,933 $209,414 Other Bonds and Equity Securities 18,378 16,197 Mortgage-backed Securities 27,208 29,364 -------- -------- Total Securities Available-for Sale $263,519 $254,975 ======== ========
10 of 13 11 Management's Discussion and Analysis of Financial Condition and Results of Operation (con't.) SECURITIES HELD-TO-MATURITY U.S. Government and Agencies $ 85,978 $ 82,824 Other bonds 25 50 Mortgage-backed Securities 85,045 69,725 -------- ------- Total Securities Held-to-Maturity $171,048 $152,599 ======== ======== SECURITIES AVAILABLE-FOR-SALE The securities available-for-sale portfolio totaled $263.5 million at September 30, 2000, an increase of 3.4% from December 31, 1999. The portfolio is concentrated in United States Treasury and Agency securities and has an estimated weighted average maturity of 3.2 years. SECURITIES HELD-TO-MATURITY The securities held-to-maturity portfolio totaled $171.0 million on September 30, 2000, an increase of 12.1% from the total on December 31, 1999. The portfolio is concentrated in United States Treasury and Agency securities, including Mortgage Backed Securities and has an estimated weighted average maturity of 4.0 years. DEPOSITS AND BORROWED FUNDS On September 30, 2000 deposits totaled $663.3 million, representing a 3.0% increase in total deposits from December 31, 1999. Total deposits increased primarily as a result of core deposit growth. Borrowed funds totaled $175.8 million compared to $177.1 million at December 31, 1999. RESULTS OF OPERATIONS NET INTEREST INCOME For the three month period ended September 30, 2000 net interest income totaled $9.0 million, an increase of 10.2% from the comparable period in 1999. For the nine month period ended September 30, 2000 net interest income totaled $26.3 million, an increase of 8.7% from the comparable period in 1999. Interest income was affected positively by balance sheet growth. The net yield on average earning assets on a fully taxable equivalent basis decreased to 4.01 in the first nine months of 2000 from 4.09% during the same period in 1999. The decrease was mainly attributable to leveraged balance sheet transactions and competetive pressures on loan pricing. 11 of 13 12 Management's Discussion and Analysis of Financial Condition and Results of Operation (con't.) PROVISION FOR LOAN LOSSES For the three month period ended September 30, 2000 the loan loss provision totaled $375 thousand compared to $225 thousand for the same period last year. For the nine month period ended September 30, 2000 the loan loss provision totaled $1,050 thousand compared to $675 thousand for the same period in 1999. Loan loss provision increased due to growth in the loan portfolio. The Company's loan loss allowance as a percentage of total loans outstanding has decreased from 1.63% at September 30, 1999 to 1.21% at September 30, 2000. NON-INTEREST INCOME AND EXPENSE Other operating income for the quarter ended September 30, 2000 was $1.8 million compared to $1.4 million for the third quarter of 1999. The increase was mainly attributable to an increase of $312 thousand in lockbox fees. For the nine month period ending September 30, 1999 other operating income totaled $5.3 million compared to $4.2 million for the same period in 1999.This was mainly attributable to an increase of $408 thousand in lockbox fees and the benefit from a pretax gain of $386 thousand associated with the sale of Company owned real estate. During the third quarter 2000, operating expenses increased by $936 thousand to $6.5 million or 16.7% from the same quarter last year. Most of the increase was in staff levels as well as merit increases in salaries and employee benefits with the remainder in all other expenses. For the nine month period ended September 30, 2000 operating expenses totaled $18.8 million compared to $17.0 million for the same period in 1999. Most of the increase was in salaries and benefits with the remainder in all other expenses. INCOME TAXES For the third quarter of 2000, the Company's income taxes totaled $1.3 million on pretax income of $3.8 million for an effective tax rate of 34.1%. For last year's corresponding quarter, the Company's income taxes totaled $1.3 million on pretax income of $3.7 million for an effective rate of 34.2%. For the nine month period ended September 30, 2000 income taxes totaled $4.1 million on a pretax income of $11.7 million for an effective tax rate of 35.3% For last year's corresponding period income taxes totaled $3.9 million on pretax income of $10.8 million for an effective tax rate of 36.4%. ================================================================== 12 of 13 13 ITEM 3 QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK The response is incorporated herein by reference from the discussion under the subcaption "Market Risk and Asset Liability Management" of the caption "MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS" on pages 9 and 10 of the Annual Report which is incorporated herein by reference. ================================================================== PART II - OTHER INFORMATION Item 1 Legal proceedings - The Company is not engaged in any legal proceedings of a material nature at the present time. From time to time, the Company is party to routine legal proceedings within the normal course of business. Such routine legal proceedings, in the aggregate, are believed by management to be immaterial to the Company's financial condition and results of operation. Item 2 Change in securities - Not applicable Item 3 Defaults upon senior securities - Not applicable Item 4 Submission of matters to a vote - Not applicable Item 5 Other information - Not applicable Item 6 Exhibits and reports on form 8-K - Not applicable 13 of 13 EX-27 2 b37165ceex27.txt FINANCIAL DATA SCHEDULE
9 0000812348 CENTURY BANCORP, INC. 1,000 U.S. DOLLARS 3-MOS DEC-31-2000 JAN-01-2000 SEP-30-2000 1 48,724 7 0 0 263,519 171,048 167,311 431,976 5,206 945,906 663,257 175,764 11,314 28,750 5,947 0 0 60,874 945,906 29,223 19,700 424 49,347 14,628 23,052 26,295 1,050 2 18,840 11,696 7,572 0 0 7,572 1.35 1.35 4.01 148 0 0 10,724 7,646 3,639 149 5,206 5,206 0 0
-----END PRIVACY-ENHANCED MESSAGE-----