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NEWS RELEASE
CENTRAL BANCORP Central Bancorp, Inc.
www.centralbk.com
399 Highland Avenue
Somerville, MA 02144
CONTACT: Gladys N. Partamian FOR RELEASE: Immediately
Vice President
(617) 628-4000
CENTRAL BANCORP REPORTS FISCAL YEAR EARNINGS INCREASE
OF 24.3% AND PROGRESS OF STOCK REPURCHASE PROGRAM
SOMERVILLE, MASSACHUSETTS, April 26, 2000 -- Central
Bancorp, Inc., (NASDAQ National Market: CEBK) today reported net
income of $802,000, or 44 cents per diluted share, for the three
months ended March 31, 2000, compared to the net income of
$776,000, or 40 cents per diluted share, for the corresponding
period of the previous year. For the fiscal year ended March
31, 2000, the Company's reported net income after the cumulative
effect of a change in accounting principle was $3,333,000, or
$1.77 per diluted share, compared to net income of $2,682,000,
or $1.38 per diluted share, for the fiscal year ended March 31,
1999 -- representing an increase of 24.3%.
The Company also announced that during the quarter ended
March 31, 2000, it had repurchased 61,200 shares under the
previously announced buyback program authorized by the Board of
Directors. This brings the total shares repurchased during the
fiscal year to 159,500, at an average cost of $19.07 per share,
which represents 8.1% of the common stock issued. The Company
plans to acquire additional shares in the months ahead in
accordance with the announced buyback program.
The improved performance for the 2000 quarter compared to
the same period in 1999 reflects an increase of $506,000 in net
interest and dividend income, primarily as a result of increased
income from a higher level of loans and investment securities,
which was partially offset by higher interest expense.
Additionally, Salaries and Employee Benefits and Professional
Fees were impacted by expenses associated with the
implementation of a tax-savings strategy.
(continued)
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Central Bancorp, Inc.
Page 2 of 3
For the fiscal year, net interest and dividend income
improved by $1,428,000, mainly due to the increase in loan
income and lower interest expense that was a result of an asset-
liability management strategy to fund some of this year's
growth. In addition, as previously reported, the June 30, 1999,
quarterly results included a one-time charge of $234,000, net of
taxes, for costs associated with the establishment on January 8,
1999, of Central Bancorp, Inc., as the holding company for
Central Bank. This charge represented the balance of
unamortized organization costs outstanding as of April 1, 1999,
that were required to be written off in accordance with a new
accounting rule regarding reporting costs of organization
activities. Excluding this cumulative effect of change in
accounting principle, Central Bancorp's net income for the
fiscal year ended March 31, 2000, was $3,567,000, or $1.89 per
diluted share.
Between March 31, 1999 and March 31, 2000, the Company's
total loans and assets grew to $320,013,000 and $409,557,000,
representing increases of 14% and 12%, respectively.
Central Bancorp, Inc., is the holding company for Central
Bank, whose legal name is Central Co-operative Bank, a
Massachusetts-chartered co-operative bank operating eight full-
service banking offices in suburban Boston.
(See accompanying tables.)
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Central Bancorp, Inc.
Page 3 of 3
CENTRAL BANCORP, INC.
Consolidated Operating Data
(In Thousands, Except Per-Share Data)
<TABLE>
<CAPTION>
Quarterly Ended Year Ended
March 31, March 31,
-----------------------------------
2000 1999 2000 1999
-----------------------------------
(Unaudited)
<S> <C> <C> <C> <C>
Net interest and dividend income $3,492 $2,986 $13,375 $11,947
Non-interest income 337 491 1,669 1,368
Operating expenses 2,596 2,121 9,345 8,773
------------------------------------
Income before income taxes 1,233 1,356 5,699 4,542
Income tax expense 431 580 2,132 1,860
------------------------------------
Net income before cumulative effect
of change in accounting principle 802 776 3,567 2,682
Cumulative effect of change in
accounting principle, net of taxes -- -- (234) --
------------------------------------
Net income $ 802 $ 776 $3,333 $2,682
====== ===== ====== ======
Earnings per common share before
cumulative effect of change in
accounting principle $ 0.44 $0.40 $ 1.90 $ 1.38
====== ===== ====== ======
Earnings per common share before
cumulative effect of change in
accounting principle - assuming dilution $ 0.44 $0.40 $ 1.89 $ 1.38
====== ===== ====== ======
Earnings per common share after
cumulative effect of change in
accounting principle $ 0.44 $0.40 $ 1.77 $ 1.38
====== ===== ====== ======
Earnings per common share after
cumulative effect of change in
accounting principle - assuming dilution $ 0.44 $0.40 $ 1.77 $ 1.38
====== ===== ====== ======
</TABLE>
CENTRAL BANCORP INC.
Consolidated Balance Sheet Data
(In Thousands)
<TABLE>
<CAPTION>
March 31,
-----------------------
2000 1999
-----------------------
(UNAUDITED)
<S> <C> <C>
Total assets $409,557 $364,696
Total loans 320,013 280,346
Allowance for loan losses 2,993 2,913
Deposits 258,339 266,463
Borrowings 111,000 57,000
Stockholders' equity 37,397 38,742
</TABLE>
