Central Bancorp Reports Improved Quarterly 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 that its net income improved more than 16% to $796,000, or $.55 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 quarter ended December December: see month. 31, 2005, from $686,000, or $.48 per diluted share, for the corresponding quarter in the prior fiscal year. The Company's earnings for the nine months ended December 31, 2005 of $2,125,000, or $1.48 per diluted share, rose over 29% from the earnings of $1,646,000, or $1.09 per diluted share, for the nine months ended December 31, 2004. The earnings improvement for the quarterly periods included a $105,000 increase in net interest and dividend income and a $70,000 increase in total non-interest income primarily attributable to a continuing higher level of deposit-related fees earned during the period, offset partially by a decline in gains on sales of loans as the volume of this business has slowed in recent months. Central Bancorp's Chairman, President & Chief Executive Officer, John D. Doherty
The earnings improvement for the nine months ended December 31, 2005 was primarily attributable to increases of $824,000 in net interest and dividend income and $223,000 in total non-interest income. While the net interest spread and margins remained virtually unchanged, interest earning assets Earning Assets Any income-earning asset owned by a company. Notes: These assets are generally interest-bearing accounts, bonds, and securities available for sale. See also: Asset, Asset Valuation, Earnings, Net Interest Margin increased significantly, resulting in the increased earnings. The increases in total non-interest income continued to be driven by increases in deposit-related fees and commissions from non-deposit investment products, offset partially by lower levels of gains on sales of loans and investments as a result of a decline in activity as well as the previously reported charge of $283,000 in the September September: see month. 2005 quarter associated with a restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). that involved voluntary employment termination packages offered to selected employees. 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 banking offices, a limited service high school branch in suburban Boston Boston, town, England Boston, town (1991 pop. 26,495), E central England, on the Witham River. Boston's fame as a port dates from the 13th cent., when it was a Hanseatic port trading wool and wine. Having recovered from a decline in the 18th and 19th cent. and a stand alone 24-hour automated teller machine automated teller machine (ATM), device used by bank customers to process account transactions. Typically, a user inserts into the ATM a special plastic card that is encoded with information on a magnetic strip. in Somerville. 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 beliefs and expectations, as well as the assumptions made using information currently available to management. Since these statements reflect the views of management concerning future events, these statements involve risks, uncertainties and assumptions. These risks and uncertainties include among others: 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 reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. and technological factors affecting the Company's operations, pricing, products and services. Additionally, other risks and uncertainties may be described in the Company's quarterly reports on Form 10-Q Form 10-Q See 10-Q. and its annual reports on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. , each filed with the Securities and Exchange Commission, which are available at the Securities and Exchange Commission's internet website (www.sec.gov See .gov and GovNet. (networking) gov - The top-level domain for US government bodies. ) and to which reference is hereby made. Therefore, actual future results may differ significantly from results discussed in these forward-looking statements and undue reliance should not be placed on such statements. The Company assumes no obligation to update any forward-looking statements.
Central Bancorp, Inc.
Consolidated Operating Data
(In Thousands, Except Per Share Data)
Quarter Ended Nine Months Ended
December 31, December 31,
--------------------------------------
2005 2004 2005 2004
---------- -------- --------- --------
(Unaudited) (Unaudited)
Net interest and dividend
income $ 4,079 $ 3,974 $ 12,451 $ 11,627
Provision for loan losses -- -- 100 50
Net gain on sales and write-
downs of investment securities 93 84 306 432
Gain on sale of loans 44 85 183 204
Other non-interest income 310 208 1,058 688
Non-interest expenses 3,302 3,249 10,621 10,254
------- ------- -------- --------
Income before taxes 1,224 1,102 3,277 2,647
Provision for income taxes 428 416 1,152 1,001
------- ------- -------- --------
Net income $ 796 $ 686 $ 2,125 $ 1,646
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Earnings per share:
Basic $ .56 $ .49 $ 1.49 $ 1.10
======= ======= ======== ========
Diluted $ .55 $ .48 $ 1.48 $ 1.09
======= ======= ======== ========
Weighted average number of
shares outstanding:
Basic 1,431 1,413 1,427 1,503
======= ======= ======== ========
Diluted 1,440 1,424 1,435 1,515
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Outstanding shares, end of
period 1,590 1,589 1,590 1,589
======= ======= ======== ========
Selected Consolidated Balance Sheet Data
(In Thousands, Except Per Share Data)
December 31, March 31,
2005 2005
--------------------
Total assets $536,867 $521,071
Investment securities available for sale 97,037 108,616
Total loans (1) 413,787 388,603
Allowance for loan losses 3,783 3,681
Deposits 359,540 333,215
Borrowings 129,129 141,197
Subordinated debenture 5,258 5,258
Stockholders' equity 39,155 38,239
Book value per share 24.63 24.07
(1) Includes loans held for sale of $1,056 and $2,221 at December 31,
2005 and March 31, 2005, respectively.
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