Central Bancorp Reports First Quarter Earnings.SOMERVILLE Somerville. 1 City (1990 pop. 76,210), Middlesex co., E Mass., a residential and industrial suburb of Boston, on the Mystic River; settled 1630, set off from Charlestown 1842, inc. as a city 1871. , Mass. -- Central Bancorp, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : CEBK) today reported net income of $454,000, or $0.29 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, for the three months ended June June: see month. 30, 2004, compared to $1,288,000, or $0.83 per diluted share, for the corresponding quarter in the prior fiscal year. Included in the prior year's quarterly results was a recovery of income taxes of $374,000 attributable to the settlement of the REIT-related tax liability with the Massachusetts Massachusetts (măsəch  `sĭts), most populous of the New England states of the NE United States. Department of Revenue.
Exclusive of the foregoing significant item, pro forma earnings pro forma earningsIncome not necessarily calculated in accordance with generally accepted accounting principles. For example, a company might report pro forma earnings that exclude depreciation expense and nonrecurring expenses such as restructuring costs. were $914,000 for the quarter ended June 30, 2003. For the quarter ended June 30, 2004, the Company experienced a decrease in net interest income of $402,000 and a reduction in its net interest margin of 47 basis points to 3.10%, as compared to the quarter ended June 30, 2003. The unfavorable trend in the Company's net interest margin began in the first quarter of fiscal 2004 and is reflective Refers to light hitting an opaque surface such as a printed page or mirror and bouncing back. See reflective media and reflective LCD. of limitations the Company has had in reducing its cost of funds Cost of Funds The interest rate paid on an outstanding loan. Notes: Money isn't free! Cost of funds is the cost of borrowing money. See also: Interest Rate Cost of funds Interest rate associated with borrowing money. and the shift in its asset mix from long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. fixed-rate residential mortgage loans to shorter-term investments. Also contributing to the decline in net income was an increase of $391,000 in non-interest expenses due primarily to increases in professional fees ($138,000), salaries and employee benefits ($103,000) and other non-interest expenses ($82,000). At June 30, 2004, the Company achieved significant financial milestones in its history with total assets and deposits exceeding $500 million and $300 million, respectively. John D. Doherty
A change in the yield curve when the spread between the yield on long-term and short-term Treasuries has decreased. Compare steepening of the yield curve and butterfly shift. forecast by many analysts, it is likely that net interest margins throughout the industry will be under pressure throughout fiscal 2005. Our strategic focus on increasing core deposits is designed to help the Bank improve its net interest margin." Loan quality continued to be outstanding. At June 30, 2004, loan delinquencies were minimal and there were no loans in excess of 90 days past due. In addition, the Company held no foreclosed assets at June 30, 2004. Central Bancorp, Inc. is the holding company for Central Bank, whose legal name is Central Co-operative Bank The Co-operative Bank is a co-operative bank trading in the United Kingdom with headquarters in Manchester, UK. It is an ethical bank, and refuses to invest in companies involved in the arms trade, genetic engineering, animal testing and use of sweated labour as stated in its , a Massachusetts-chartered co-operative bank operating eight full-service full-ser·vice adj. Associated with or offering complete service: full-service gasoline pumps; full-service banks. banking offices and one limited-service high school branch in suburban Boston. (See accompanying tables.) This press release contains financial information determined by methods other than in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with accounting methods generally accepted in the United States of America UNITED STATES OF AMERICA. The name of this country. The United States, now thirty-one in number, are Alabama, Arkansas, Connecticut, Delaware, Florida, Georgia, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Missouri, New Hampshire, ("GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). "). The Company's management uses these non-GAAP measures in its analysis of the Company's performance. These measures typically adjust GAAP performance measures to exclude the effects of significant gains or losses that are unusual in nature. Because these items and their impact on the Company's performance are difficult to predict, management believes that presentations of financial measures excluding the impact of these items provide useful supplemental information that is essential to a proper understanding of the operating results of the Company's core business. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance which may be presented by other companies. This press release may contain certain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. , which are based on management's current expectations regarding economic, legislative and regulatory issues that may impact the Company's earnings in future periods. Factors that could cause future results to vary materially from current management expectations include, but are not limited to, general economic conditions, changes in interest rates, deposit flows, real estate values and competition; changes in accounting principles, policies or guidelines guidelines, n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. ; changes in legislation or regulation; and other economic, competitive, governmental, regulatory and technological factors affecting the Company's operations, pricing, products and services.
Central Bancorp, Inc.
Consolidated Operating Data
(In Thousands, Except Per Share Data)
Quarter Ended
June 30,
----------------------
2004 2003
----------------------
(Unaudited)
Net interest and dividend income $3,707 $4,109
Provision for loan losses 50 50
Net gain (loss) on sales of
investment securities 134 (5)
Gain on sale of loans 63 141
Other non-interest income 251 278
Non-interest expenses 3,394 3,003
---------- ----------
Income before taxes 711 1,470
Provision for income taxes 257 182
---------- ----------
Net income $454 $1,288
========== ==========
Earnings per share:
Basic $.29 $.83
========== ==========
Diluted $.29 $.83
========== ==========
Weighted average number of
shares outstanding:
Basic 1,559 1,546
========== ==========
Diluted 1,573 1,559
========== ==========
Outstanding shares,
end of period 1,665 1,663
========== ==========
Reconciliation of GAAP earnings
to pro forma earnings:
Net income per GAAP $454 $1,288
Impact of REIT legislation,
net of taxes -- (374)
---------- ----------
Pro forma earnings $454 $914
========== ==========
Consolidated Balance Sheet Data
(In Thousands, Except Per Share Data)
June 30, March 31,
2004 2004
----------------------------
(Unaudited)
Total assets $507,883 $490,897
Investment securities
available for sale 106,700 83,771
Total loans (1) 355,792 357,424
Allowance for loan losses 3,599 3,537
Deposits 314,167 295,920
Borrowings 142,242 145,256
Stockholders' equity 42,634 43,454
Book value per share 25.61 26.10
(1) Includes loans held for sale of $925 and $799 at June 30, 2004 and
March 31, 2004, respectively.
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