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

NEWS RELEASE

FOR IMMEDIATE RELEASE

Contact: Paul V. Cusick, Jr.

Phone: 781-393-4601

Fax: 781-393-4071

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

Medford, MA, April 12, 2005—Century Bancorp Inc. (NASDAQ:CNBKA) (www.century-bank.com) (“the Company”) today announced net income of $2,041,000, or $0.37 per share diluted, for the first quarter ended March 31, 2005, compared to net income of $2,318,000, or $0.42 per share diluted, for the first quarter of 2004.

Net interest income totaled $10.5 million for the quarter ended March 31, 2005, versus $10.0 million for the same period in 2004. The 5.9% increase in net interest income for the period is mainly due to a $61 million, or 4%, increase in average earnings assets. The net interest margin also increased by five basis points.

At March 31, 2005, total equity was $101.7 million compared to $106.0 million at March 31, 2004. Century’s leverage ratio stood at 8.17% on March 31, 2005, compared to 7.67% for the same period a year ago. Book value as of March 31, 2005 was $18.38 per share compared
to $19.18 for the same period last year.

Century’s allowance for loan losses was $9.2 million, or 1.51% of loans outstanding at the end of the first quarter, compared to $8.7 million, or 1.66% of loans outstanding at March 31, 2004. Non-performing assets totaled $1.5 million at March 31, 2005, compared to $0.6 million at the end of the previous quarter and $0.7 million at March 31, 2004.

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 May 16, 2005 to stockholders of record on May 2, 2005.

-more-

Century Bancorp, Inc., through its subsidiary bank, Century Bank and Trust Company, a state chartered full service commercial bank, operating twenty-two 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 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

March 31, 2005 and 2004 (000’s)

	(unaudited)
	March 31,			March 31,
	2005			2004
Assets
Cash and Due From Banks	$	38,457		$	54,269
Federal Funds Sold and Interest-bearing Deposits In Other Banks		4,064			39,079
Securities Available-For-Sale (AFS)		581,391			637,649
Securities Held-to-Maturity		332,158			296,418
Loans:
Commercial & Industrial		78,749			43,642
Construction & Land Development		50,884			33,503
Commercial Real Estate		273,202			295,816
Residential Real Estate		124,370			87,834
Consumer and Other		8,419			7,990
Home Equity		72,445			53,269
Total Loans		608,069			522,054
Less: Allowance for Loan Losses		9,154			8,673
Net Loans		598,915			513,381
Bank Premises and Equipment		26,533			22,740
Accrued Interest Receivable		7,454			7,323
Goodwill		2,714			2,714
Core Deposit Intangible		2,738			3,126
Other Assets		36,096			24,381
Total Assets	$	1,630,520		$	1,601,080
Liabilities
Demand Deposits	$	277,830		$	264,044
Interest Bearing Deposits:
Savings and NOW Deposits		304,843			297,840
Money Market Accounts		378,406			464,254
Time Deposits		231,883			206,706
Total Interest Bearing		915,132			968,800
Total Deposits		1,192,962			1,232,844
Borrowed Funds:
Securities Sold Under Agreements to Repurchase		38,090			42,370
Federal Home Loan Bank Advances and Other Borrowed Funds		244,926			149,628
Total Borrowed Funds		283,016			191,998
Other Liabilities		16,720			15,614
Investments Purchased Payable		0			24,997
Subordinated Debentures		36,083			29,639
Total Liabilities		1,528,781			1,495,092
Stockholders’ Equity
Common Stock		5,967			5,956
Additional Paid-In-Capital		11,413			11,234
Retained Earnings		99,664			93,209
Treasury Stock		(5,982	)		(5,982	)
Accumulated Other Comprehensive (Loss) Income, Net of Taxes		(9,323	)		1,571
Total Stockholders’ Equity		101,739			105,988
Total Liabilities & Stockholders’ Equity	$	1,630,520		$	1,601,080

Century Bancorp, Inc. and Subsidiaries
Consolidated Comparative Statements of Income
For the Quarter and Year-to-date ending
March 31, 2005 and 2004 (000’s)

	(unaudited)
	Quarter and Year-to-date
	2005		2004
Interest Income:
Loans	$	9,198	$	8,082
Securities Held-to-Maturity		3,196		2,282
Securities Available-for-Sale		4,935		5,276
Federal Funds Sold and Interest-bearing Deposits In Other Banks		323		322
Total Interest Income		17,652		15,962
Interest Expense:
Savings and NOW Deposits		715		537
Money Market Accounts		1,711		1,250
Time Deposits		2,057		1,979
Securities Sold Under Agreements to Repurchase		100		78
FHLB Borrowings, Other Borrowed Funds and Long Term Debt		2,520		2,161
Total Interest Expense		7,103		6,005
Net Interest Income		10,549		9,957
Provision For Loan Losses		150		0
Net Interest Income After Provision for Loan Losses		10,399		9,957
Other Operating Income
Service Charges on Deposit Accounts		1,428		1,263
Lockbox Fees		709		735
Brokerage Commissions		153		166
Net (Losses) Gains on Sales of Securities		0		104
Other Income		375		485
Total Other Operating Income		2,665		2,753
Operating Expenses
Salaries		4,630		4,153
Employee Benefits		1,473		1,485
Occupancy		986		792
Equipment		782		558
Other		2,164		2,076
Total Operating Expenses		10,035		9,064
Income Before Income Taxes		3,029		3,646
Income Tax Expense
Provision for Income Taxes		988		1,328
Total Income Tax Expense		988		1,328
Net Income	$	2,041	$	2,318

Century Bancorp, Inc. and Subsidiaries
Consolidated Year-to-Date Average Comparative Statements of Condition
March 31, 2005 and 2004 (000’s)

	March 31,			March 31,
	2005			2004
Assets
Cash and Due From Banks	$	55,051		$	64,622
Federal Funds Sold and Interest-Bearing Deposits in Other Banks		59,797			152,661
Securities Available-For-Sale (AFS)		596,015			634,455
Securities Held-to-Maturity		338,893			222,568
Total Loans		591,377			515,747
Less: Allowance for Loan Losses		9,099			8,841
Net Loans		582,278			506,906
Bank Premises and Equipment		26,375			22,380
Accrued Interest Receivable		7,548			8,128
Goodwill		2,714			2,714
Core Deposit Intangible		2,787			3,177
Other Assets		24,181			26,668
Total Assets	$	1,695,639		$	1,644,279
Liabilities
Demand Deposits	$	286,497		$	277,937
Interest Bearing Deposits:
Savings and NOW Deposits		325,364			318,844
Money Market Accounts		426,312			419,922
Time Deposits		285,523			289,144
Total Interest Bearing		1,037,199			1,027,910
Total Deposits		1,323,696			1,305,847
Borrowed Funds:
Securities Sold Under Agreements to Repurchase		38,560			40,685
Federal Home Loan Bank Advances and Other Borrowed Funds		174,330			145,916
Total Borrowed Funds		212,890			186,601
Other Liabilities		16,308			16,232
Subordinated Debentures		39,047			29,639
Total Liabilities		1,591,941			1,538,319
Stockholders’ Equity
Common Stock		5,965			5,956
Additional Paid-In Capital		11,400			11,230
Retained Earnings		99,048			92,572
Treasury Stock		(5,982	)		(5,982	)
Accumulated Other Comprehensive (Loss) Income, Net of Taxes		(6,733	)		2,184
Total Stockholders’ Equity		103,698			105,960
Total Liabilities & Stockholders’ Equity	$	1,695,639		$	1,644,279
Total Average Earning Assets — YTD	$	1,586,082		$	1,525,431

Century Bancorp, Inc. and Subsidiaries
Consolidated Selected Key Financial Information
March 31, 2005 and 2004 (000’s)

		2005			2004
Performance Measures:
Earnings per average share, basic, quarter		$	0.37		$	0.42
Earnings per average share, diluted, quarter		$	0.37		$	0.42
Earnings per average share, basic , year-to-date		$	0.37		$	0.42
Earnings per average share, diluted, year-to-date		$	0.37		$	0.42
Return on average assets, year-to-date			0.49	%		0.57	%
Return on average stockholders’ equity, year-to-date			7.98	%		8.80	%
Net interest margin (taxable equivalent), year-to-date			2.66	%		2.61	%
Efficiency ratio, year-to-date			75.9	%		71.3	%
Book value per share		$	18.38		$	19.18
Tangible book value per share		$	17.40		$	18.13
Tangible capital / tangible assets			5.93	%		6.28	%
Common Share Data:
Average shares outstanding, basic, quarter			5,529,038			5,524,659
Average shares outstanding, basic, year-to-date			5,529,038			5,524,659
Average shares outstanding, diluted, quarter			5,538,170			5,557,984
Average shares outstanding, diluted, year-to-date			5,538,170			5,557,984
Shares outstanding Class A			3,435,677			3,419,073
Shares outstanding Class B			2,099,640			2,105,740
Total shares outstanding			5,535,317			5,524,813
Assets Quality and Other Data:
Allowance for loan losses / loans			1.51	%		1.66	%
Nonaccrual loans		$	1,057		$	709
Nonperforming assets		$	1,539		$	709
Loans 90 days past due and still accruing		$	0		$	0
Net charge-offs (recoveries)	(	$	3	)	$	96
Leverage ratio			8.17	%		7.67	%
Tier 1 risk weighted capital ratio			16.56	%		16.97	%
Total risk weighted capital ratio			17.70	%		18.14	%
Total risk weighted assets		$	836,217		$	739,563