Century Bancorp (CNBKA) 8-K Century Bancorp, Inc. Reports Second Quarter Results and Declares Quarterly Dividend

Exhibit 99.1

     NEWS RELEASE

FOR IMMEDIATE RELEASE

Contact:     Paul V. Cusick, Jr.

Phone:     781-393-4601

Fax:     781-393-4071

CENTURY BANCORP, INC. REPORTS SECOND QUARTER RESULTS AND DECLARES QUARTERLY DIVIDEND

Medford, MA, JULY 13, 2004—Century Bancorp Inc. (NASDAQ:CNBKA) (www.century-bank.com) (“the Company”) today announced net income of $2,403,000, or $0.43 per share diluted, for the second quarter ended June 30, 2004, compared to net income of $5,080,000, or $0.92 per share diluted, for the second quarter of 2003. Included in income for the second quarter 2003 is the previously announced after-tax benefit of $2,046,000 associated with the Real Estate Investment Trust (“REIT”) settlement. This benefit combined with the first quarter 2003 tax charge of $3,229,000 totaled to a net tax charge of $1,183,000 in 2003. The net tax charge was a result of an agreement with the Massachusetts Department of Revenue (“DOR”) settling the dispute related to taxes that the DOR claimed were owed from the Company’s REIT. For the first six months of 2004, net income totaled $4,721,000 or $0.85 per share diluted, compared to net income of $5,285,000, or $0.95 per share diluted, for the same period a year ago.

Net interest income totaled $20.6 million for the six-months ended June 30, 2004, versus $23.3 million for the same period in 2003. The 11.9% decrease in net interest income for the period is mainly due to a forty-seven basis point decrease in the net interest margin. The decrease in the net interest margin was mainly attributable to assets continuing to reprice at historically low levels without a corresponding decrease in rates paid on deposits.

At June 30, 2004, total equity capital was $100.0 million compared to $103.2 million at June 30, 2003. Century’s leverage ratio stood at 8.04% on June 30, 2004, compared to 7.40% for the same period a year ago. Book value as of June 30, 2004 was $18.09 per share compared to $18.70 for the same period last year.

Century’s allowance for loan losses was $8.7 million, or 1.59% of loans outstanding at the end of the second quarter, compared to $9.0 million, or 1.82% of loans outstanding at June 30,

2003. Non-accruing loans totaled $0.9 million at June 30, 2004, compared to $0.7 million at the end of the previous quarter and $1.0 million at June 30, 2003.

Century’s Board of Directors voted a regular quarterly dividend of 12.00 cents ($0.12) per share on Century Class A common stock, and 6.00 cents ($0.06) per share on Century Class B common stock. The dividends were declared payable August 13, 2004 to stockholders of record on July 30, 2004.

Century Bancorp, Inc., through its subsidiary bank, Century Bank and Trust Company, a state chartered full service commercial bank, operating twenty-one full-service branches in the Greater Boston area, offers a full range of Business, Personal, Cash Management, Municipal and Investment products.

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 obligation to update publicly any such forward-looking statements, whether in response to new information, future events or otherwise.

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Century Bancorp, Inc. and Subsidiaries
Consolidated Comparative Statements of Condition

June 30, 2004 and 2003     (000's)	(unaudited)
	June 30,			June 30,
Assets	2004			2003
Cash and Due From Banks	$	49,414		$	67,624
Federal Funds Sold and Interest-bearing Deposits In Other Banks		19,026			3,014
Securities Available-For-Sale (AFS)		541,348			818,919
Securities Held-to-Maturity		359,097			183,644
Loans:
Commercial & Industrial		62,038			43,673
Construction & Land Development		33,758			39,950
Commercial Real Estate		277,301			270,726
Residential Real Estate		103,157			90,987
Consumer and Other		8,137			7,951
Home Equity		62,669			43,949
Total Loans		547,060			497,236
Less: Allowance for Loan Losses		8,701			9,036
Net Loans		538,359			488,200
Bank Premises and Equipment		23,840			15,726
Accrued Interest Receivable		7,345			9,464
Goodwill		2,714			2,717
Core Deposit Intangible		3,029			3,391
Other Assets		30,011			17,053
Total Assets	$	1,574,183		$	1,609,752
Liabilities
Demand Deposits	$	273,276		$	269,426
Interest Bearing Deposits:
Savings and NOW Deposits		340,814			323,783
Money Market Accounts		430,227			443,371
Time Deposits		202,018			253,464
Total Interest Bearing		973,059			1,020,618
Total Deposits		1,246,335			1,290,044
Borrowed Funds:
Securities Sold Under Agreements to Repurchase		35,690			49,620
Federal Home Loan Bank Advances and Other Borrowed Funds		149,758			112,431
Total Borrowed Funds		185,448			162,051
Other Liabilities		12,798			10,694
Investments Purchased Payable		0			15,003
Long Term Debt		29,639			28,750
Total Liabilities		1,474,220			1,506,542
Stockholders’ Equity
Common Stock		5,958			5,950
Additional Paid-In-Capital		11,267			11,149
Retained Earnings		95,075			86,058
Treasury Stock		(5,982	)		(5,982	)
Accumulated Other Comprehensive Income, Net of Taxes		(6,355	)		6,035
Total Stockholders’ Equity		99,963			103,210
Total Liabilities & Stockholders’ Equity	$	1,574,183		$	1,609,752

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Century Bancorp, Inc. and Subsidiaries
Consolidated Comparative Statements of Income
For the Quarter and Year-to-date ending
June 30, 2004 and 2003   (000’s)

	(unaudited)
	Quarter					Year-to-date
	2004		2003			2004		2003
Interest Income:
Loans	$	8,122	$	8,387		$	16,204	$	16,920
Securities Held-to-Maturity		3,225		1,804			5,507		3,323
Securities Available-for-Sale		4,684		7,776			9,960		15,394
Federal Funds Sold and Interest-bearing Deposits In Other Banks		71		143			393		212
Total Interest Income		16,102		18,110			32,064		35,849
Interest Expense:
Savings and NOW Deposits		588		686			1,125		1,425
Money Market Accounts		1,174		1,558			2,424		2,711
Time Deposits		1,423		2,059			3,402		3,721
Securities Sold Under Agreements to Repurchase		73		124			151		264
FHLB Borrowings, Other Borrowed Funds and Long Term Debt		2,244		2,035			4,405		4,401
Total Interest Expense		5,502		6,462			11,507		12,522
Net Interest Income		10,600		11,648			20,557		23,327
Provision For Loan Losses		0		225			0		450
Net Interest Income After Provision for Loan Losses		10,600		11,423			20,557		22,877
Other Operating Income
Service Charges on Deposit Accounts		1,262		1,201			2,458		2,346
Lockbox Fees		847		917			1,582		1,718
Brokerage Commissions		186		127			352		262
Net Gains on Sales of Securities		17		1			121		1
Other Income		433		371			985		710
Total Other Operating Income		2,745		2,617			5,498		5,037
Operating Expenses
Salaries		4,440		4,393			8,593		8,434
Employee Benefits		1,477		1,397			2,962		2,831
Occupancy		748		651			1,540		1,301
Equipment		595		493			1,153		781
Other		2,300		2,173			4,376		4,211
Total Operating Expenses		9,560		9,107			18,624		17,558
Income Before Income Taxes		3,785		4,933			7,431		10,356
Income Tax Expense
Provision for Income Taxes		1,382		1,899			2,710		3,888
Retroactive REIT Settlement		0		(2,046	)		0		1,183
Total Income Tax (Benefit) Expense		1,382		(147	)		2,710		5,071
Net Income	$	2,403	$	5,080		$	4,721	$	5,285

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Century Bancorp, Inc. and Subsidiaries
Consolidated Year-to-Date Average Comparative Statements of Condition
June 30, 2004 and 2003 (000’s)

	June 30,			June 30,
Assets	2004			2003
Cash and Due From Banks	$	61,184		$	59,634
Federal Funds Sold and Interest-Bearing Deposits in Other Banks		91,528			36,313
Securities Available-For-Sale (AFS)		610,957			787,559
Securities Held-to-Maturity		281,095			140,105
Total Loans		527,029			500,661
Less: Allowance for Loan Losses		8,758			8,754
Net Loans		518,271			491,907
Bank Premises and Equipment		22,698			14,394
Accrued Interest Receivable		7,814			10,264
Goodwill		2,714			2,717
Core Deposit Intangible		3,130			969
Other Assets		24,753			26,438
Total Assets	$	1,624,144		$	1,570,300
Liabilities
Demand Deposits	$	276,275		$	253,755
Interest Bearing Deposits:
Savings and NOW Deposits		335,075			346,540
Money Market Accounts		419,745			382,063
Time Deposits		246,848			241,098
Total Interest Bearing		1,001,668			969,701
Total Deposits		1,277,943			1,223,456
Borrowed Funds:
Securities Sold Under Agreements to Repurchase		39,496			53,576
Federal Home Loan Bank Advances and Other Borrowed Funds		158,047			143,524
Total Borrowed Funds		197,543			197,100
Other Liabilities		15,959			20,409
Long Term Debt		29,639			28,750
Total Liabilities		1,521,084			1,469,715
Stockholders’ Equity
Common Stock		5,956			5,949
Additional Paid-In Capital		11,239			11,128
Retained Earnings		93,429			83,225
Treasury Stock		(5,982	)		(5,982	)
Accumulated Other Comprehensive Income, Net of Taxes		(1,582	)		6,265
Total Stockholders’ Equity		103,060			100,585
Total Liabilities & Stockholders’ Equity	$	1,624,144		$	1,570,300
Total Average Earning Assets — QTD	$	1,495,784		$	1,525,124
Total Average Earning Assets — YTD	$	1,510,609		$	1,464,638

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Century Bancorp, Inc. and Subsidiaries
Consolidated Selected Key Financial Information
June 30, 2004 and 2003   (000’s)

	2004			2003
Performance Measures:
Earnings per average share, basic, quarter	$	0.44		$	0.92
Earnings per average share, diluted, quarter	$	0.43		$	0.92
Earnings per average share, basic , year-to-date	$	0.85		$	0.96
Earnings per average share, diluted, year-to-date	$	0.85		$	0.95
Return on average assets, year-to-date		0.58	%		0.68	%
Return on average stockholders’ equity, year-to-date		8.80	%		10.59	%
Net interest margin (taxable equivalent), year-to-date		2.72	%		3.19	%
Efficiency ratio, year-to-date		70.1	%		61.6	%
Book value per share	$	18.09		$	18.70
Tangible book value per share	$	17.05		$	17.59
Tangible capital / tangible assets		6.01	%		6.06	%
Common Share Data:
Average shares outstanding, basic, quarter		5,525,665			5,518,093
Average shares outstanding, basic, year-to-date		5,525,164			5,538,547
Average shares outstanding, diluted, quarter		5,553,500			5,517,856
Average shares outstanding, diluted, year-to-date		5,556,034			5,537,962
Shares outstanding Class A		3,426,698			3,404,100
Shares outstanding Class B		2,099,740			2,115,100
Total shares outstanding		5,526,438			5,519,200
Assets Quality and Other Data:
Allowance for loan losses / loans		1.59	%		1.82	%
Nonaccrual loans	$	949		$	994
Nonperforming assets	$	949		$	994
Loans 90 days past due and still accruing	$	0		$	0
Net charge-offs (recoveries)	$	68			($80	)
Leverage ratio		8.04	%		7.40	%
Tier 1 risk weighted capital ratio		17.15	%		17.03	%
Total risk weighted capital ratio		18.31	%		18.28	%
Total risk weighted assets	$	749,999		$	704,940

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