Central Bancorp Reports Second 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 that its net income decreased to $506,000, or $0.33 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 September September: see month. 30, 2004, from $830,000, or $0.53 per diluted share, for the corresponding quarter in the prior fiscal year. The current quarter's results included costs of $178,700, net of taxes, consisting primarily of legal and other professional fees incurred in connection with the previously announced buyback Buyback The buying back of outstanding shares (repurchase) by a company in order to reduce the number of shares on the market. Companies will buyback shares either to increase the value of shares still available (reducing supply), or to eliminate any threats by shareholders who may of 154,268 shares of Company stock from PL Capital LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control and affiliates by the Company and its ESOP ESOP See: Employee Stock Ownership Plan ESOP See Employee Stock Ownership Plan (ESOP). Trust. During the quarter ended September 30, 2003, the Company recognized an insurance recovery of $214,000, net of related legal fees and taxes, attributable to shareholder litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. , which was settled in that quarter. Exclusive of the foregoing significant items, pro forma earnings pro forma earnings Income 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. increased to $685,000 for the second quarter of this year from $616,000 for the comparable period last year. Earnings during the quarter ended September 30, 2004 included an increase in net interest and dividend income. Although net interest margin declined from 3.39% in the second quarter of the last fiscal year to 3.20% during this quarter, this level is an improvement over the 3.10% net interest margin reported for the first quarter of this fiscal year. This improvement was primarily attributable to shifts in the Company's asset mix, with increases in commercial loans and investment securities and declines in low-yielding short term investments. For the six months ended September 30, 2004, net income decreased to $960,000, or $0.61 per diluted share, from $2,118,000, or $1.36 per diluted share, in the year earlier period. Exclusive of the after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. impact of $374,000 resulting from the Company's June 2003 settlement of its 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 and a net insurance recovery of $276,000 for the
six-month fiscal 2003 period attributable to the aforementioned a·fore·men·tioned adj. Mentioned previously. n. The one or ones mentioned previously. aforementioned Adjective mentioned before Adj. 1. net insurance recovery, and the costs associated with the stock buyback Stock buyback A corporation's purchase of its own outstanding stock, usually in order to raise the company's earnings per share. stock buyback See buyback. noted above, net income declined $329,000 compared to the year earlier period. This reduction was largely the result of a $397,000 decrease in net interest income in the first half of the current year, as compared to the prior year period. John D. Doherty, Chairman, President & Chief Executive Officer, stated, "We are pleased to see an increase in net interest and dividend income for the quarter as compared to last year and especially as compared to the first quarter of this fiscal year. The last several years have been extremely challenging because of the interest rate environment. Although we have continued our balance sheet shift, which has included an increase in commercial real-estate lending, asset quality remains outstanding with no loans delinquent delinquent 1) adj. not paid in full amount or on time. 2) n. short for an underage violator of the law as in juvenile delinquent. DELINQUENT, civil law. He who has been guilty of some crime, offence or failure of duty. in excess of 90 days at September 30." 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 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 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 Six Months Ended
September 30, September 30,
--------------- ----------------
2004 2003 2004 2003
------- ------- -------- -------
(Unaudited) (Unaudited)
Net interest and dividend income $3,946 $3,941 $7,653 $8,050
Provision for loan losses -- 50 50 100
Net gain (loss) on sales of
investment securities 214 (130) 348 (135)
Gain on sale of loans 56 68 119 209
Other non-interest income 230 230 480 503
Non-interest expenses 3,612 2,761 7,005 5,759
------- ------- -------- -------
Income before taxes 834 1,298 1,545 2,768
Provision for income taxes 328 468 585 650
------- ------- -------- -------
Net income $506 $830 $960 $2,118
======= ======= ======== =======
Earnings per share:
Basic $0 .33 $0.54 $0.62 $1.37
======= ======= ======== =======
Diluted $0 .33 $0.53 $0.61 $1.36
======= ======= ======== =======
Weighted average number of
shares outstanding:
Basic 1,538 1,549 1,549 1,547
======= ======= ======== =======
Diluted 1,550 1,563 1,562 1,561
======= ======= ======== =======
Outstanding shares, end of period 1,589 1,663 1,589 1,663
======= ======= ======== =======
Reconciliation of GAAP earnings
to pro forma earnings:
Net income per GAAP $506 $830 $960 $2,118
Impact of REIT legislation, net
of taxes -- -- -- (374)
Impact of litigation and legal
fees, net of insurance and taxes -- (214) -- (276)
Costs associated with stock
buyback, net of taxes 179 -- 179 --
------- ------- -------- -------
Pro forma earnings $685 $616 $1,139 $1,468
======= ======= ======== =======
Consolidated Balance Sheet Data
(In Thousands, Except Per Share Data)
September 30, March 31,
2004 2004
------------ ------------
(Unaudited)
Total assets $504,999 $490,897
Investment securities available for sale 107,604 83,771
Total loans (1) 358,306 357,424
Allowance for loan losses 3,606 3,537
Deposits 316,310 295,920
Borrowings 147,125 145,256
Stockholders' equity 38,335 43,454
Book value per share $24.14 $26.10
(1) Includes loans held for sale of $1,182 and $799 at September 30,
2004 and March 31, 2004, respectively.
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