<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
----------------------
FORM 10-Q
---------
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED MARCH 31, 1997.
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE TRANSITION PERIOD FROM TO .
------- ----------------------
COMMISSION FILE NUMBER 0-16234
CENTURY BANCSHARES, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 52-1489098
(State of other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
1275 PENNSYLVANIA AVENUE, N.W.
WASHINGTON, D.C. 20004
(Address of principal executive offices)
(Zip Code)
(202) 496-4100
Registrant's Telephone number, including area code
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months(or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes X No
----- -----
As of May 14, 1997, there were 1,158,923 shares of the registrant's Common
Stock, par value $1.00 per share outstanding.
<PAGE> 2
CENTURY BANCSHARES, INC.
QUARTERLY REPORT ON FORM 10-K
FOR THE QUARTER ENDED MARCH 31, 1997
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
PART I
Item 1. Financial Statements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
PART II
Item 1. Legal Proceedings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Item 2. Changes in Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Item 3. Defaults Upon Senior Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Item 4. Submission of Matters to a Vote of Security Holders . . . . . . . . . . . . . . . . . . 10
Item 5. Other Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Item 6. Exhibits and Reports on Form 8-K
(a) The following exhibits are filed with this reports:
Exhibit
Number Description of Exhibit
------ ----------------------
11 Computation of Per Share Earnings
27 Financial Data Schedule
(b) No Reports on Form 8-K were filed by the Company during the three
months ended March 31, 1997.
</TABLE>
<PAGE> 3
PART 1 - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
CENTURY BANCSHARES, INC. AND SUBSIDIARY
Consolidated Statements of Financial Condition
March 31, 1997 (unaudited) and
December 31, 1996 (audited)
<TABLE>
<CAPTION>
March 31,
1997 December 31,
(unaudited) 1996
--------------- --------------
<S> <C> <C>
ASSETS
Cash and due from banks 5,483,333 8,363,911
Federal funds sold 5,754,000 11,436,000
Interest bearing deposits in other banks 16,412,190 6,823,077
Investment securities AFS at fair value 5,960,858 6,414,011
Investment securities, HTM at cost; fair value of $1,092,955
at March 31, 1997 and $959,389 at December 31, 1996 1,092,276 958,245
Loans net of unearned income 70,643,221 70,676,356
Less - allowance for loan losses (619,679) (825,876)
--------------- --------------
Loans, net 70,023,542 69,850,480
=============== ==============
Leasehold improvements, furniture, and equipment, net
Accrued interest receivable 1,457,025 1,558,247
Deposit premium 485,777 509,567
Prepaid expenses 265,917 275,072
Other assets 129,319 157,228
972,449 840,171
Total assets
--------------- --------------
108,036,686 107,186,009
=============== ==============
LIABILITIES & SHAREHOLDERS' EQUITY
Liabilities:
Deposits:
noninterest bearing
interest bearing 21,716,779 24,064,454
70,046,496 66,920,756
Deposits total
--------------- --------------
91,763,275 90,985,210
=============== ==============
Other borrowings
Other liabilities 8,078,120 8,465,877
1,254,715 984,881
Total liabilities
--------------- --------------
101,096,110 100,435,968
Shareholders' equity:
Common stock, $1 par value: 2,000,000 shares authorized;
1,158,267 and 1,146,028 shares issued and outstanding
at March 31, 1997 and December 31, 1996, respective 1,158,267 1,146,028
Additional paid in capital 4,894,903 4,870,856
Retained earnings
948,961 779,057
Unrealized loss on Securities available-for-sale
(61,555) (45,900)
Total shareholders' equity
--------------- --------------
6,940,576 6,750,041
=============== ==============
Total liability and shareholders' equity
--------------- --------------
108,036,686 107,186,009
=============== ==============
</TABLE>
1
<PAGE> 4
CENTURY BANCSHARES, INC. AND SUBSIDIARY
Consolidated Statements of Operations
Three Months Ended March 31, 1997 and 1996
(unaudited)
<TABLE>
<CAPTION>
March 31, March 31,
INTEREST INCOME: 1997 1996
------------- -------------
<S> <C> <C>
Interest and fees on loans
Interest on federal funds sold 1,681,239 1,670,287
Interest on deposits in other banks 68,742 13,057
Interest on securities AFS 103,244 32,335
Interest on securities HTM 123,967 162,157
1,888 2,803
Total interest income
------------- -------------
1,979,080 1,880,639
============= =============
INTEREST EXPENSE:
Interest on deposits:
Certificates $100,000 and over
Certificates under $100,000 188,041 173,292
NOW accounts 177,423 163,033
Savings accounts 67,002 67,000
Money market accounts 14,444 15,326
Interest on other borrowings 184,920 181,790
130,981 61,062
Total interest expense
------------- -------------
762,811 661,503
============= =============
Net interest income
1,216,269 1,219,136
Provision for loan loss
21,000 21,000
Net interest income after provision
------------- -------------
1,195,269 1,198,136
============= =============
NONINTEREST INCOME:
Service charges on deposit accounts
Other operating income 128,996 113,026
143,414 68,681
Total noninterest income
------------- -------------
272,410 181,707
============= =============
NONINTEREST EXPENSES:
Salaries and employee benefits
Occupancy and equipment expense 488,110 492,119
Depreciation and amortization 138,946 132,651
Professional fees 115,794 88,712
Data processing 102,709 89,935
FDIC premiums 135,166 111,824
Communications 1,200 2,361
Provision for losses on OREO 46,207 43,410
Other operating expenses - 6,000
163,282 135,825
Total noninterest expenses
------------- -------------
1,191,414 1,102,837
============= =============
Income before income tax expense
276,265 277,006
Income tax expense
106,361 104,166
Net income
------------- -------------
169,904 172,840
============= =============
Income per common share
$ 0.13 $ 0.14
============= =============
Primary weighted average shares outstanding including
common stock equivalents
1,315,584 1,232,947
============= =============
</TABLE>
See accompanying Condensed Notes to Consolidated Financial Statements
2
<PAGE> 5
CENTURY BANCSHARES, INC. AND SUBSIDIARY
Consolidated Statements of Cash Flows
Three Months Ended March 31, 1996 and 1997
(unaudited)
<TABLE>
<CAPTION>
1997 1996
---- ----
<S> <C> <C>
Cashflows from operating activities:
Net Income 169,904 172,840
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 115,794 94,712
Provision for loan losses 21,000 21,000
(Increase) decrease in accrued interest receivable 23,790 (90,935)
(Increase) in prepaid expenses and other assets (104,369) (127,627)
Increase in other liabilities 269,834 120,936
------------- -------------
Net cash provided by operating activities 495,953 190,926
------------- -------------
Cashflows from investing activities:
Loan repayments and recoveries (originations), net (194,062) (1,572,065)
Net (increase) decrease in interest bearing deposits
in other banks (9,589,113) 5,932,958
Purchases of securities held to maturity (134,031) (251,417)
Payments and maturities of securities available-for-sale 437,498 1,182,938
Purchase of leasehold improvements, furniture and equipment
net of disposals (14,572) (306,410)
------------- -------------
Net cash provided (used) by investing activities (9,494,280) 4,986,004
------------- -------------
Cashflows from financing activities:
Net issuances (redemption) of certificates of deposits 6,795,314 (1,583,928)
Net decrease in demand, savings and money market accounts (6,017,249) (12,679,898)
Deposit premium 9,155 12,207
Issuance of common stock 36,286 -
Increase (decrease) in other borrowings (387,757) 2,842,127
------------- -------------
Net cash provided (used) by financing operations 435,749 (11,409,492)
------------- -------------
Net decrease in cash and cash equivalents (8,562,578) (6,232,562)
Cash and cash equivalents, beginning of year 19,799,911 10,025,561
------------- -------------
Cash and cash equivalents, March 31, 11,237,333 3,792,999
============= =============
Supplemental disclosures of cash flow information:
Interest paid on deposits and borrowings 703,671 696,954
------------- -------------
Income taxes paid (refunded) - 117,500
------------- -------------
Transfer of loans to other real estate owned - -
------------- -------------
</TABLE>
See accompanying Condensed Notes to Consolidated Financial
Statements
3
<PAGE> 6
CENTURY BANCSHARES, INC. AND SUBSIDIARY
Condensed Notes to Consolidated Financial Statements (Unaudited)
March 31, 1997 and 1996
The unaudited consolidated financial statements as of and for the
three months ended March 31, 1997 and March 31, 1996 have not been audited but,
in the opinion of management contain all adjustments (consisting only of normal
recurring adjustments) necessary to present fairly the financial position and
results of operations of the Company as of such date and for such periods. The
unaudited consolidated financial statements should be read in conjunction with
the Consolidated Financial Statements of the Company and the Notes thereto
appearing in the 10-K. The results of operations for the three months ended
March 31, 1997 are not necessarily indicative of the results of operations that
may be expected for the year ending December 31, 1997 or any future periods.
(1) Stock Option Plans
Stock option transactions for the three months ended March 31, 1997
and 1996 are summarized as follows:
<TABLE>
<CAPTION>
1997 1996
--------------------------- -----------------------------
Weighted- Weighted-
Average Average
Exercise Exercise
Fixed Options Shares Price Shares Price
------------ ------------ -------------- ------------
<S> <C> <C> <C> <C>
Outstanding at beginning
of year 148,317 4.00 152,250 3.49
Granted - - - -
Exercised 11,016 2.70 - -
Forfeited 1,289 5.71 - -
---------- ----------
Outstanding, March 31 136,012 4.09 152,250 3.49
========== ==========
Options exercisable at
March 31 123,540 3.95 131,285 3.37
Weighted-average fair
value of options
granted during
the three months ended
March 31 $ - $ -
</TABLE>
(2) Income Per Common Share
On April 15, 1997, the Company declared a 5% stock dividend to Common
Stockholders of record as of May 7, 1997. Weighted average shares outstanding
and income per share have been restated for all periods presented in
consideration of the stock dividend.
ITEM 2. MANAGEMENT'S DICUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Century Bancshares, Inc. (the "Company") is a registered bank holding
company that derives substantially all of its revenues and income from the
operation of Century National Bank (the"Bank"). The Bank is a full service
bank that provides a broad line of financial products and services to small and
medium sized businesses and consumers through its main office located at 1875
Eye Street, N. W., in Washington, D. C., and its branches located at 1275
Pennsylvania Avenue, N. W. and 8251 Greensboro Drive in Tysons Corner,
Virginia. The following Management's Discussion and Analysis of Financial
Condition and Results of Operations contains certain forward-looking statements
regarding future financial condition and results of operations and the
Company's business operations. Such statements involve risks, uncertainties
and assumptions, including, but not limited to, monetary policy and general
economic conditions in the Washington, D. C. area, the actions of competitors
and customers, the success of the Company in implementing its strategic plan,
and the effects of regulatory restrictions imposed on banks and bank holding
companies generally, as discussed in the Company's Form 10-K for the year ended
1996 and other filings with the Securities and Exchange Commission. Should one
or more of these risks or uncertainties materialize, or should these underlying
assumptions prove incorrect, actual outcomes may vary materially from outcomes
expected or anticipated by the Company.
4
<PAGE> 7
NET INCOME
Net income was $170,000 ($0.13 per common share) for the first
quarter of 1997, compared with net income of $173,000 ($0.14 per common share)
for the first quarter of 1996, a decrease of $3,000 or 1.7% ($0.01 or 7.1% per
common share). The decrease in net income for 1997 compared with 1996 resulted
from a $3,000 decrease in net interest income, an $88,000 increase in
non-interest expenses, and a $2,000 increase in income tax expense, all
partially offset by a $90,000 increase in non-interest income. Per common
share earnings decreased primarily due to a 6.7% increase, from 1,232,947 to
1,315,584, in the number of weighted average common shares and common stock
equivalents outstanding, during the first quarter of 1997 as compared to 1996.
Return on average assets declined from .75% to .69% for the first
three months of 1996 as compared to 1997. This was due to the fact that average
total assets increased 7%, while net income declined slightly. The increase in
assets resulted primarily from the successful promotion of a new product - the
one year no-penalty certificate of deposit - together with an increase in fixed
rate Federal Home Loan Bank of Atlanta ("FHLBA") borrowings during the second
and fourth quarters of 1996
All "per share" amounts have been adjusted to give effect to the
Company's five percent (5%) stock dividend which was declared on April 15,
1997, to all shareholders of record as of May 7, 1997.
NET INTEREST INCOME
Net interest income was $1,216,000 for the three months ended March
31, 1997, a decrease of $3,000 or .25% compared with the same period in 1996.
The 7% increase in net interest earning assets was offset by a .4% decline in
the net interest margin from 5.77% in 1996 to 5.35% in 1997. This decline
resulted from an increase in the balance of certificates of deposit
liabilities and fixed rate borrowings from the FHLBA during the second and
fourth quarters of 1996, the proceeds of which were invested primarily in
short-term investments as of March 31, 1997, pending anticipated redeployment
into higher yielding loans and securities.
The following table sets forth for each category of interest-earning
assets and interest-bearing liabilities, the average amounts outstanding, the
interest earned or paid on such amounts, and the average rate earned or paid
for the three months ended March 31, 1997 and 1996.
5
<PAGE> 8
AVERAGE BALANCES AND INTEREST RATES
(Dollars in thousands)
<TABLE>
<CAPTION>
Three Months Ended March 31,
========================================================================
1997 1996
========================================================================
Interest Interest
Average Income/ Average Average Income/ Average
Balance Expense Rate Balance Expense Rate
========== ========== ========= ========= ========= ===========
<S> <C> <C> <C> <C> <C> <C>
INTEREST-EARNING ASSETS:
Loans receivable, net(1) 70,731 1,681 9.64% 69,981 1,670 9.68%
Investment securities, taxable(2) 6,966 124 7.22% 12,629 163 5.23%
Investment securities, nontaxable(2)(3) 165 2 4.92% 250 3 4.87%
Federal Funds sold 4,835 69 5.79% 653 13 8.07%
Interest-earning deposits with banks(3) 9,536 103 4.38% 2,236 32 5.80%
--------- ---------- --------- ------- ------- -------
Total interest earning assets(3) 92,233 1,979 8.70% 85,749 1,881 8.90%
NONINTEREST-EARNING ASSETS:
Cash and due from banks 4,838 4,419
Other assets 2,672 3,028
--------- -------
Total noninterest-earning assets 7,510 7,447
--------- -------
Total assets 99,743 93,196
========= =======
INTEREST BEARING LIABILITIES:
Deposits:
Interest-bearing demand (NOW)
deposits 14,161 67 1.92% 13,506 67 2.01%
Savings deposits 2,352 14 2.41% 2,328 15 2.61%
Money market deposits 21,052 185 3.56% 22,871 182 3.23%
Time deposits 27,124 366 5.47% 24,424 337 5.60%
Other borrowings 7,988 131 6.65% 4,575 61 5.41%
--------- ---------- ------- -------
Total interest-bearing liabilities 72,677 763 4.26% 67,704 662 3.97%
NONINTEREST-BEARING LIABILITIES:
Non-interest bearing deposits 18,879 17,791
Other liabilities 1,342 1,252
--------- -------
Total noninterest-bearing liabilities 20,221 19,043
--------- -------
Stockholders' equity 6,845 6,449
--------- -------
Total liabilities and stockholders'
equity 99,743 93,196
========= =======
Net interest income 1,216 1,219
========== =======
Net interest margin(3) 5.35% 5.77%
========= ========
</TABLE>
- --------------------------
(1) Non-accrual loan balances are included in the calculation of Average
Balances - Loans Receivable, Net. Interest income on non-accrual
loan balances is included in interest income to the extent that
it has been collected.
(2) Average balance and average rate for investment securities are computed
based on book value of securities held-to-maturity and cost basis of
securities available-for-sale.
(3) Average rates on a fully tax equivalent basis are as follows:
<TABLE>
<CAPTION>
1997 1996
---- ----
<S> <C> <C>
Investment securities, nontaxable 7.45% 7.37%
Total interest earning assets 8.71% 8.90%
Net interest margin 5.35% 5.77%
</TABLE>
6
<PAGE> 9
PROVISION AND ALLOWANCE FOR LOAN LOSSES
The Company maintains an allowance for loan losses ("Allowance") based
upon, among other things, such factors as historical experience, the volume and
type of loans in the portfolio, amount of nonperforming assets, regulatory
policies, generally accepted accounting principles, general economic conditions
and other factors related to the collectibility of loans in the portfolio.
Provisions for loan losses are charged to income to bring the total allowance
for loan losses to a level deemed appropriate by management based on the
above-referenced factors. Although management believes it uses the best
information available to make determinations with respect to the Allowance,
future adjustments may be necessary if such factors and conditions differ from
the assumptions used in making the initial determinations. Based upon criteria
consistently applied during the periods, the Company's Allowance as of the end
of the first quarter of 1997 was $620,000 (0.88% of total loans) as compared to
$775,000 (1.09% of total loans) at March 31, 1996.
In order to maintain an adequate Allowance, the Company charges
against earnings a provision for loan losses. The first quarter provision for
loan losses was $21,000, unchanged from the first quarter of 1996 to the
first quarter of 1997, consistent with management's analysis of the level of
risk associated with the portfolio. Management believes the Allowance is
adequate to absorb losses inherent in the loan portfolio
Net charge-offs for the first quarter of 1997 were $227,000, or 1.28%
of average loans outstanding, on an annualized basis. These charge-offs were
reflective of the circumstances described in the Company's Form 10-K for the
year ended December 31, 1996 which resulted in additional provisions for loan
losses in the fourth quarter of 1996. Management believes the current Allowance
to be sufficient based on its analysis, as reflected by the decrease in the
percentage of nonperforming loans from .75% to .25% of total loans and the
increase in the Allowance as a percentage of nonperforming loans to 346% from
147% compared to one year earlier.
In view of the Company's plans to continue its loan growth with
increased emphasis on commercial loans (which are generally considered to be
more risky than loans secured by real estate), it is likely that the Company
will continue to maintain an adequate allowance for loan losses through future
provisions charged to income. The Company does not presently anticipate that
such provisions will have a material adverse impact on the Company's results of
operations in future periods.
The following table sets forth an analysis of the Company's Allowance
for the periods indicated:
7
<PAGE> 10
ALLOWANCE FOR LOAN LOSSES
(Dollars in thousands)
<TABLE>
<CAPTION>
Three Months Ended March 31,
----------------------------------
1997 1996
---------------- ----------------
<S> <C> <C>
Average net loans outstanding 70,731 69,981
================ ================
Loans outstanding at period-end 70,643 70,791
================ ================
Total nonperforming loans 179 529
================ ================
Beginning balance of allowance 826 740
Loans charged-off:
1-4 family residential mortgage 109 0
Commercial real estate 24 0
Installment and Credit card loans 118 14
---------------- ----------------
Total loans charged off 251 14
---------------- ----------------
Recoveries of previous charge-offs:
1-4 family residential mortgage 0 7
Commercial real estate 23 21
Installment and Credit card loans 1 0
---------------- ----------------
Total recoveries 24 28
---------------- ----------------
Net loans charged-off 227 (14)
---------------- ----------------
Provision for loan losses 21 21
---------------- ----------------
Balance at end of period 620 775
================ ================
Net charge-offs to averarge loans
(annualized) 1.28% (0.08%)
================ ================
Allowance as % of total loans 0.88% 1.09%
================ ================
Nonperforming as % of total loans 0.25% 0.75%
================ ================
Allowance as % of nonperforming 346% 147%
================ ================
</TABLE>
8
<PAGE> 11
NONINTEREST INCOME
Total noninterest income increased $90,000 or 49% from $182,000 to
$272,000 for the three months ended March 31, 1997 as compared to the same
period in 1996. Substantially all of the increase is attributable to revenues
from the Company's credit card program.
NONINTEREST EXPENSE
Total noninterest expense was $1,191,000 for the first quarter of
1997, an increase of $88,000 or 8% from $1,103,000 for the first quarter of
1996. The increase is due to higher levels of spending on printing (which
comprised $24,000 of the increase in other operating expenses), depreciation of
$27,000, and data processing of $24,000. These increased costs relate to the
implementation of various parts of management's strategic plan to focus on
marketing and use of technology.
INCOME TAX EXPENSE
Income tax expense increased approximately $2,000 to $106,000 for the
first three months of 1997 as compared to $104,000 for the same period of 1996.
The increase is due to an increase in the costs associated with doing business
in multiple state jurisdictions.
LIQUIDITY
The Company's Asset/Liability Management Policy is intended to
maintain adequate liquidity for the Bank and thereby enhance its ability to
raise funds to support asset growth, meet deposit withdrawals and lending
needs, maintain reserve requirements and otherwise sustain operations. The
Company accomplishes this primarily through management of the maturities of its
interest-earning assets and interest-bearing liabilities.
Asset liquidity is provided by cash and assets which are readily
marketable, or which can be pledged, or which will mature in the near future.
The asset liquidity of the Bank is maintained in the form of vault cash, demand
deposits with commercial banks, federal funds sold, interest bearing deposits
with other financial institutions, short-term investment securities, other
investment securities available-for-sale, and short-term loans. The Company's
management monitors liquidity requirements as warranted by interest rate
trends, changes in the economy and the maturity schedule and interest rate
sensitivity of the investment and loan portfolios and deposits.
Liability liquidity is provided by access to core funding sources,
principally various customers' interest-bearing and noninterest-bearing deposit
accounts in the Company's market area. The Bank does have the ability to
solicit brokered deposits. Federal funds purchased and short-term borrowings
by the Bank are additional sources of liquidity. These sources of liquidity
are short-term in nature and are used by the Bank as necessary to fund asset
growth and meet short-term liquidity needs. Available borrowing arrangements
maintained by the Bank include lines of credit at the FHLBA and larger
correspondent banks. The Company believes that the Bank's present liquidity
position is adequate to meet its current and future needs.
The Company's cash flows are composed of three classifications: cash
flows from operating activities, cash flows from investing activities, and cash
flows from financing activities. For the three months ended March 31, 1997,
liquidity was enhanced primarily by net cash provided by operating activities
of $496,000 and net cash provided by financing activities of $436,000, offset
by net cash used in investing activities of $9,494,000. The increase in net
cash provided by operating activities was primarily attributable to net
income of $170,000 and other non-cash adjustments. The increase in net cash
provided by financing activities was primarily the result of an increase in
the volume of certificates of deposits. The increase in net cash used in
investing activities was primarily attributable to a shift in liquid assets
from cash and cash equivalents (especially federal funds sold) into
interest-bearing deposits in other banks.
CAPITAL RESOURCES
Total stockholders' equity as of March 31, 1997 was $6,941,000, an
increase of approximately $191,000 or 2.8% compared with stockholders' equity
of $6,750,000 as of December 31, 1996. Net income for the three months ended
March 31, 1997 was $170,000. In addition to these retained earnings,
stockholders' equity was also augmented by the issuance of $36,000 worth of new
common stock in connection with the exercise of outstanding warrants and stock
options.
There are no regulatory capital requirements applicable to the
Company, because it has total consolidated assets of less than $150 million.
The Bank, however, is required to comply with capital standards promulgated by
the Office of the Controller of the Currency ("OCC"). The OCC has established
certain minimum risk-based capital standards that apply to national banks. The
Bank's risk-based capital ratios remain above the levels designated as "Well
Capitalized" on March 31, 1997, with Tier-1 Capital, Total Risk-Based Capital
and Leverage Capital Ratios of 9.30%, 10.14% and 6.69%, respectively.
9
<PAGE> 12
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
Not applicable.
ITEM 2. CHANGES IN SECURITIES
(a) Not applicable.
(b) Not applicable.
(c) Not applicable.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
Not applicable.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
Not applicable.
ITEM 5. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) The following exhibits are filed with this reports:
EXHIBIT
NUMBER DESCRIPTION OF EXHIBIT
11 Computation of Per Share Earnings.
27 Financial Data Schedule.
(b) No reports on Form 8-K were filed by the Company during
the three months ended March 31, 1997.
10
<PAGE> 13
SIGNATURES
Pursuant to the requirements of Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
CENTURY BANCSHARES INC.
(Registrant)
Date: May 14, 1997 By: /s/ JOSEPH S. BRACEWELL
------------------------
Joseph S. Bracewell
Chairman of the Board, President
and Chief Executive Officer
11
<PAGE> 1
EXHIBIT 11
CENTURY BANCSHARES, INC.
Statement Re: Computation of Per Share Earnings
<TABLE>
<CAPTION>
Three Months Ended
March 31,
1997 1996
============ ============
<S> <C> <C>
PRIMARY:
Weighted average common shares outstanding 1,209,755 1,175,789
Dilutive effect of stock options 57,915 57,158
Dilutive effect of stock warrants 47,914 -
------------ ------------
Primary weighted average common share and common
stock equivalents outatnding 1,315,584 1,232,947
============ ============
Net income applicable to common stock $ 169,904 $ 172,840
============ ============
Primary earnings per share 0.13 0.14
============ ============
FULLY DILUTED:
Weighted average common shares outstanding 1,209,755 1,175,789
Dilutive effect of stock options 65,723 64,865
Dilutive effect of stock warrants 63,812 -
------------ ------------
Fully diluted weighted average common share and
common stock equivalents outatnding 1,339,290 1,240,654
============ ============
Net income applicable to common stock $169,904 $172,840
============ ============
Fully diluted earnings per share 0.13 0.14
============ ============
</TABLE>
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