Century Bancorp, Inc. (NASDAQ:CNBKA) ( www.centurybank.com) (“the Company”) today announced net income of $3,808,000 for the quarter ended March 31, 2012, or $0.69 per share diluted, an increase of 2.2% compared to net income of $3,725,000, or $0.67 per share diluted, for the same period a year ago. Total assets increased 4.1% from $2.7 billion at December 31, 2011 to $2.9 billion at March 31, 2012.
Net interest income totaled $14.4 million for the quarter ended March 31, 2012 compared to $13.9 million for the same period in 2011. The 3.4% increase in net interest income for the period is due to an 11.1% increase in the average balances of earning assets, combined with a similar increase in average deposits, offset by a decrease in the net interest margin from 2.64% on a fully taxable equivalent basis in 2011 to 2.48% on the same basis for 2012.
The provision for loan losses decreased by $100,000 from $1.2 million for the quarter ended March 31, 2011 to $1.1 million, for the quarter ended March 31, 2012. The Company capitalized on favorable market conditions for the first quarter ended March 31, 2012 and realized net gains on sales of investments of $148,000, compared to $164,000 for the same period in 2011. Other income increased for the first quarter of 2012 compared to the same period last year primarily as a result of increased service charges on deposit accounts. FDIC assessments decreased for the quarter, primarily as a result of a decrease in the assessment rate, offset somewhat by an increase in the assessment base. The Company’s effective tax rate decreased from 8.1% in 2011 to 7.6% in 2012 primarily as a result of an increase in tax-exempt income.
At March 31, 2012, total equity was $165.9 million compared to $160.6 million at December 31, 2011. The Company’s equity increased primarily as a result of earnings and other comprehensive income, net of taxes, offset somewhat by dividends paid. The Company’s leverage ratio stood at 7.05% at March 31, 2012, compared to 7.21% at March 31, 2011. This decline in the leverage ratio is due to an increase in assets, offset by an increase in stockholders’ equity. Book value as of March 31, 2012 was $29.91 per share compared to $26.64 at March 31, 2011.