Century Bancorp posts 6th consecutive year of record earnings
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Net interest income totaled $70 million for the year.
For the quarter ended December 31, 2015, net income totaled $5,971,000 or $1.07 per Class A share diluted, an increase of 6.2% compared to net income of $5,623,000, or $1.01 per Class A share diluted, for the same period a year ago.
The average balances of earning assets increased by 8.3%.
The net interest margin decreased from 2.22% on a fully taxable equivalent basis in 2014 to 2.18% on the same basis for 2015. This was primarily the result of a decrease in rates on earning assets.
The average balances of earning assets increased by 8.3% combined with a similar increase in average deposits. Also, interest expense increased 5.2% as a result of an increase in deposit balances.
The provision for loan losses decreased by $1,850,000 from $2,050,000 for the year ended December 31, 2014 to $200,000 for 2015, primarily as a result of changes in portfolio composition, related methodology enhancements to address these changes, as well as net recoveries being realized during the year.
The company’s effective tax rate decreased from 3.8% in 2014 to 2.3% in 2015 primarily as a result of an increase in tax-exempt income.
At December 31, 2015, total equity was $214.5 million compared to $192.5 million at December 31, 2014. The company’s equity increased primarily as a result of earnings and a decrease in other comprehensive loss, net of taxes, offset somewhat by dividends paid.
Other comprehensive loss, net of taxes, decreased primarily as a result of a decrease in unrealized losses on securities transferred from available-for-sale to held-to-maturity.
The company’s leverage ratio stood at 6.79% at December 31, 2015, compared to 6.91% at December 31, 2014. 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 December 31, 2015 was $38.53 per share compared to $34.57 at December 31, 2014. ■