Century Bancorp in Medford, Mass., said loan growth helped its profit rise in the third quarter.
The $4.3 billion-asset parent of Century Bank and Trust Co. said in a press release Tuesday that its net income increased 5.2% in the quarter from a year earlier to $6.4 million, or $1.16 a share.
Net interest income rose 3.2% to $19.2 million and total loans grew 6.3% to $1.8 billion. The net interest margin narrowed by 16 basis points to 2.12%.
Interest income rose 5.2% to $25 million, thanks mainly to increases in loans and securities held to maturity. Interest expense increased 12.7% to $5.7 million.
The loan-loss allowance rose 5.7% to $23.7 million.
For the three quarters that ended Sept. 30, the provision for loan losses rose 487.5% to $1.1 million compared with the first nine months of 2015, primarily because of an increase in loan balances, Century said.
