Century Bancorp Inc. of Medford, Mass., announced Wednesday that it had terminated its management agreement with BlackRock Inc.
Under the 15-month-old agreement, BlackRock, which is majority owned by PNC Financial Services Group Inc., had managed Century's available-for-sale securities portfolio.
The $1.7 billion-asset parent of the 36-year-old Century Bank and Trust Co. said it terminated the agreement because it plans to scale back the size of the portfolio, selling off securities and using the resulting cash flow to fund more loans.
Century had $532 million of available-for-sale securities on Dec. 31. Its loan-to-deposit ratio was 56%. Though it did not provide a target, Century said Wednesday that it wants to increase that figure.
According to the Federal Deposit Insurance Corp., the average loan-to-deposit ratio for commercial banks with assets of between $1 billion and $10 billion is 92%.
