Century Bancorp (CNBKA) 8-K Century Bancorp, Inc. Announces Record Earnings of $13.6 MM for 2010, an Increase of 34%; 8% Asset Growth to $2.4BB; Regular Dividend Declared

Exhibit 99.1

NEWS RELEASE

FOR IMMEDIATE RELEASE
Contact:	William P. Hornby, CPA
	whornby@century-bank.com
Phone:	781-393-4630
Fax:	781-393-4071

CENTURY BANCORP, INC. ANNOUNCES RECORD EARNINGS OF $13.6 MM FOR 2010, AN INCREASE OF 34%; 8% ASSET GROWTH TO $2.4BB; REGULAR DIVIDEND DECLARED

Medford, MA, January 18, 2011—Century Bancorp, Inc. (NASDAQ:CNBKA) (www.century-bank.com) (“the Company”) today announced record net income of $13,574,000 for the year ended December 31, 2010, or $2.45 per share diluted, an increase of 33.6% compared to net income of $10,160,000, or $1.84 per share diluted, for 2009. Total assets increased 8.3% from $2.3 billion at December 31, 2009 to $2.4 billion at December 31, 2010. For the quarter ended December 31, 2010, net income totaled $3,924,000, or $0.71 per share diluted, an increase of 27.2% compared to net income of $3,085,000, or $0.56 per share diluted, for the same period a year ago.

Net interest income totaled $51.8 million for the year ended December 31, 2010 compared to $47.9 million for 2009. The 8.1% increase in net interest income for the period is mainly due to a 18.8% increase in the average balances of earning assets, combined with a similar increase in deposits. The increased volume was partially offset by a decrease of seventeen basis points in the net interest margin. The net interest margin decreased from 2.69% on a fully taxable equivalent basis in 2009 to 2.52% on the same basis for 2010.

The provision for loan losses decreased by $1.1 million from $6.6 million for the year ended December 31, 2009 to $5.6 million, in 2010, primarily as a result of decreases in nonaccrual loans. The Company capitalized on favorable market conditions for the year ended December 31, 2010 and realized net gains on sales of investments of $1.9 million, as compared to $2.7 million for 2009. Included in operating expenses for the fourth quarter and year ended December 31, 2010 are FDIC assessments of $790,000 and $3.0 million, respectively, as compared to $582,000 and $3.3 million for the same periods in 2009. FDIC assessments decreased, for the year, primarily as a result of the special assessment charge of approximately $1.0 million during the second quarter of 2009. This was offset, somewhat, by an increase in the assessment rate as well as an increase in the deposit base during 2010.

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Also included in operating expenses for the second quarter of 2010 is a charge for payments due Jonathan G. Sloane, former Co-CEO, in accordance with his separation agreement as previously announced. The Company recorded a pre-tax charge of $916,000.

The Company’s effective tax rate declined from 10.4% in 2009 to 8.4% in 2010 primarily as a result of an increase in tax-exempt income.

At December 31, 2010, total equity was $145.0 million compared to $132.7 million at December 31, 2009. The Company’s equity increased primarily as a result of earnings and a decrease in accumulated other comprehensive loss, net of taxes, offset by dividends paid. The Company’s leverage ratio stood at 7.35% at December 31, 2010, compared to 7.73% at December 31, 2009. This decline in the leverage ratio is due to an increase in assets, offset by an increase in stockholders’ equity. Book value as of December 31, 2010 was $26.18 per share compared to $24.00 at December 31, 2009.

The Company’s allowance for loan losses was $14.1 million or 1.55% of loans outstanding at December 31, 2010, compared to $12.4 million, or 1.41% of loans outstanding at December 31, 2009. Non-performing assets totaled $8.1 million at December 31, 2010, compared to $12.3 million at December 31, 2009.

The Company’s Board of Directors voted a regular quarterly dividend of 12.00 cents ($0.12) per share on the Company’s Class A common stock, and 6.00 cents ($0.06) per share on the Company’s Class B common stock. The dividends were declared payable February 15, 2011 to stockholders of record on February 1, 2011.

The Company, through its subsidiary bank, Century Bank and Trust Company, a state chartered full service commercial bank, operating twenty-three full-service branches in the Greater Boston area, offers a full range of Business, Personal and Institutional Services.

Century Bank and Trust Company is a member of the FDIC and is an Equal Housing Lender.

This press release contains certain “forward-looking statements” with respect to the financial condition, results of operations and business of the Company. Actual results may differ from those contemplated by these statements. The Company wishes to caution readers not to place undue reliance on any forward-looking statements. The Company disclaims any intent or obligation to update publicly any such forward-looking statements, whether in response to new information, future events or otherwise.

Century Bancorp, Inc. and Subsidiaries
Consolidated Comparative Statements of Condition (unaudited)
(in thousands)

	December 31,		December 31,
	2010		2009
Assets
Cash and Due From Banks	$	37,215	$	42,627
Federal Funds Sold and Interest-bearing Deposits In Other Banks		151,337		356,015
Short-term Investments		113,918		18,518
Securities Available-For-Sale (AFS)		909,391		647,796
Securities Held-to-Maturity		230,116		217,643
Federal Home Loan Bank of Boston stock, at cost		15,531		15,531
Loans:
Commercial & Industrial		90,654		141,061
Construction & Land Development		53,583		60,349
Commercial Real Estate		433,337		361,823
Residential Real Estate		207,787		188,096
Consumer and Other		6,594		7,720
Home Equity		114,209		118,076
Total Loans		906,164		877,125
Less: Allowance for Loan Losses		14,053		12,373
Net Loans		892,111		864,752
Bank Premises and Equipment		21,228		21,015
Accrued Interest Receivable		6,601		5,806
Goodwill		2,714		2,714
Core Deposit Intangible		508		896
Other Assets		61,014		60,722
Total Assets	$	2,441,684	$	2,254,035
Liabilities
Demand Deposits	$	322,002	$	279,874
Interest Bearing Deposits:
Savings and NOW Deposits		649,402		575,592
Money Market Accounts		513,359		553,883
Time Deposits		417,260		292,638
Total Interest Bearing		1,580,021		1,422,113
Total Deposits		1,902,023		1,701,987
Borrowed Funds:
Securities Sold Under Agreements to Repurchase		108,550		118,745
Other Borrowed Funds		222,118		234,024
Total Borrowed Funds		330,668		352,769
Other Liabilities		27,885		30,466
Subordinated Debentures		36,083		36,083
Total Liabilities		2,296,659		2,121,305
Total Stockholders’ Equity		145,025		132,730
Total Liabilities & Stockholders’ Equity	$	2,441,684	$	2,254,035

Century Bancorp, Inc. and Subsidiaries
Consolidated Comparative Statements of Income (unaudited)
For the Quarter and Year ended December 31, 2010 and 2009
(in thousands)

	Quarter Ended December 31,				Year ended December 31,
	2010		2009		2010		2009
Interest Income:
Loans	$	12,350	$	12,266	$	48,434	$	48,199
Securities Held-to-Maturity		1,657		1,763		7,158		8,093
Securities Available-for-Sale		4,719		5,397		19,349		21,137
Federal Funds Sold and Interest-bearing Deposits In Other Banks		396		360		1,642		2,171
Total Interest Income		19,122		19,786		76,583		79,600
Interest Expense:
Savings and NOW Deposits		818		1,386		4,072		5,258
Money Market Accounts		753		1,181		3,942		6,100
Time Deposits		2,168		1,973		7,914		9,438
Securities Sold Under Agreements to Repurchase		107		153		573		576
Other Borrowed Funds and Subordinated Debentures		1,965		2,644		8,316		10,351
Total Interest Expense		5,811		7,337		24,817		31,723
Net Interest Income		13,311		12,449		51,766		47,877
Provision For Loan Losses		1,350		2,475		5,575		6,625
Net Interest Income After
Provision for Loan Losses		11,961		9,974		46,191		41,252
Other Operating Income
Service Charges on Deposit Accounts		1,998		1,943		7,876		8,003
Lockbox Fees		718		660		2,911		2,814
Net Gain on Sales of Investments		824		1,619		1,851		2,734
Other Income		683		639		3,361		2,919
Total Other Operating Income		4,223		4,861		15,999		16,470
Operating Expenses
Salaries and Employee Benefits		6,779		6,737		28,398		26,919
Occupancy		1,034		1,033		4,037		4,104
Equipment		595		546		2,132		2,372
FDIC Assessment		790		582		2,965		3,336
Other		2,697		2,520		9,840		9,648
Total Operating Expenses		11,895		11,418		47,372		46,379
Income Before Income Taxes		4,289		3,417		14,818		11,343
Income Tax Expense		365		332		1,244		1,183
Net Income	$	3,924	$	3,085	$	13,574	$	10,160

Century Bancorp, Inc. and Subsidiaries
Consolidated Year-to-Date Average Comparative Statements of Condition (unaudited)
(in thousands)

	December 31,		December 31,
	2010		2009
Assets
Cash and Due From Banks	$	52,662	$	57,573
Federal Funds Sold and Interest-Bearing Deposits in Other Banks		371,665		245,002
Securities Available-For-Sale (AFS)		788,951		611,246
Securities Held-to-Maturity		222,154		193,520
Total Loans		877,858		853,422
Less: Allowance for Loan Losses		13,686		13,331
Net Loans		864,172		840,091
Unrealized Gain on Securities AFS		13,151		4,766
Bank Premises and Equipment		21,334		21,382
Accrued Interest Receivable		6,575		7,046
Goodwill		2,714		2,714
Core Deposit Intangible		704		1,094
Other Assets		58,816		49,409
Total Assets	$	2,402,898	$	2,033,843
Liabilities
Demand Deposits	$	298,825	$	277,300
Interest Bearing Deposits:
Savings and NOW Deposits		696,232		528,974
Money Market Accounts		543,432		432,159
Time Deposits		356,457		318,412
Total Interest Bearing		1,596,121		1,279,545
Total Deposits		1,894,946		1,556,845
Borrowed Funds:
Securities Sold Under Agreements to Repurchase		133,080		98,635
Other Borrowed Funds		165,190		183,630
Total Borrowed Funds		298,270		282,265
Other Liabilities		31,074		31,289
Subordinated Debentures		36,083		36,083
Total Liabilities		2,260,373		1,906,482
Total Stockholders’ Equity		142,525		127,361
Total Liabilities & Stockholders’ Equity	$	2,402,898	$	2,033,843
Total Average Earning Assets — Quarter	$	2,295,297	$	2,020,576
Total Average Earning Assets — Year	$	2,260,628	$	1,903,190

Century Bancorp, Inc. and Subsidiaries
Consolidated Selected Key Financial Information (unaudited)
(in thousands, except share data)

	December 31,			December 31,
	2010			2009
Performance Measures:
Earnings per average share, basic, quarter	$	0.71		$	0.56
Earnings per average share, diluted, quarter	$	0.71		$	0.56
Earnings per average share, basic, year	$	2.45		$	1.84
Earnings per average share, diluted, year	$	2.45		$	1.84
Return on average assets, year		0.56	%		0.50	%
Return on average stockholders’ equity, year		9.52	%		7.98	%
Net interest margin (taxable equivalent), quarter		2.55	%		2.63	%
Net interest margin (taxable equivalent), year		2.52	%		2.69	%
Efficiency ratio, year		65.0	%		68.5	%
Book value per share	$	26.18		$	24.00
Tangible book value per share	$	25.60		$	23.35
Tangible capital / tangible assets		5.82	%		5.74	%
Common Share Data:
Average shares outstanding, basic, quarter		5,537,776			5,530,297
Average shares outstanding, diluted, quarter		5,539,639			5,533,943
Average shares outstanding, basic, year		5,533,506			5,532,249
Average shares outstanding, diluted, year		5,535,742			5,534,340
Shares outstanding Class A		3,528,867			3,515,767
Shares outstanding Class B		2,011,380			2,014,530
Total shares outstanding at period end		5,540,247			5,530,297
Asset Quality and Other Data:
Allowance for loan losses / loans		1.55	%		1.41	%
Nonaccrual loans	$	8,068		$	12,311
Nonperforming assets	$	8,068		$	12,311
Loans 90 days past due and still accruing	$	50		$	—
Accruing troubled debt restructures	$	1,248		$	521
Net charge-offs, year	$	3,894		$	5,372
Leverage ratio		7.35	%		7.73	%
Tier 1 risk weighted capital ratio		14.86	%		14.45	%
Total risk weighted capital ratio		16.03	%		15.53	%
Total risk weighted assets	$	1,199,896		$	1,144,639