Century Bancorp (CNBKA) 8-K Century Bancorp, Inc. Reports Second 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 SECOND QUARTER RESULTS AND DECLARES QUARTERLY DIVIDEND

Medford, MA, July 12, 2005—Century Bancorp Inc. (NASDAQ:CNBKA) (www.century-bank.com) (“the Company”) today announced net income of $2,035,000, or $0.37 per share diluted, for the second quarter ended June 30, 2005, compared to net income of $2,403,000, or $0.43 per share diluted, for the second quarter of 2004. For the first six months of 2005, net income totaled $4,077,000, or $0.74 per share diluted, compared to net income of $4,721,000, or $0.85 per share diluted, for the same period a year ago.

Net interest income totaled $20.9 million for the six months ended June 30, 2005, versus $20.6 million for the same period in 2004. The 1.7% increase in net interest income for the period is mainly due to a $56 million, or 3.7%, increase in average earnings assets, which was partially offset by a decrease of five basis points in the net interest margin.

At June 30, 2005, total equity was $106.4 million compared to $100.0 million at June 30, 2004. Century’s leverage ratio stood at 8.49% on June 30, 2005, compared to 8.04% for the same period a year ago. Book value as of June 30, 2005 was $19.22 per share compared
to $18.09 for the same period last year.

Century’s allowance for loan losses was $9.4 million, or 1.44% of loans outstanding at the end of the second quarter, compared to $8.7 million, or 1.59% of loans outstanding at June 30, 2004. Non-performing assets totaled $1.1 million at June 30, 2005, compared to $1.5 million at the end of the previous quarter and $0.9 million at June 30, 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 August 15, 2005 to stockholders of record on August 1, 2005.

-more-

Century Bancorp, Inc., 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 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
June 30, 2005 and 2004 (000’s)

	(unaudited)
	June 30,			June 30,
Assets	2005			2004
Cash and Due From Banks	$	41,519		$	49,414
Federal Funds Sold and Interest-bearing Deposits In Other Banks		10,568			19,026
Securities Available-For-Sale (AFS)		577,147			541,348
Securities Held-to-Maturity		303,918			359,097
Loans:
Commercial & Industrial		90,907			62,038
Construction & Land Development		59,198			33,758
Commercial Real Estate		282,388			277,301
Residential Real Estate		132,753			103,157
Consumer and Other		10,105			8,137
Home Equity		80,022			62,669
Total Loans		655,373			547,060
Less: Allowance for Loan Losses		9,445			8,701
Net Loans		645,928			538,359
Bank Premises and Equipment		26,462			23,840
Accrued Interest Receivable		6,802			7,345
Goodwill		2,714			2,714
Core Deposit Intangible		2,641			3,029
Other Assets		34,688			30,011
Total Assets	$	1,652,387		$	1,574,183
Liabilities
Demand Deposits	$	271,620		$	273,276
Interest Bearing Deposits:
Savings and NOW Deposits		312,076			340,814
Money Market Accounts		371,714			430,227
Time Deposits		277,810			202,018
Total Interest Bearing		961,600			973,059
Total Deposits		1,233,220			1,246,335
Borrowed Funds:
Securities Sold Under Agreements to Repurchase		32,270			35,690
Federal Home Loan Bank Advances and Other Borrowed Funds		228,585			149,758
Total Borrowed Funds		260,855			185,448
Other Liabilities		15,829			12,798
Investments Purchased Payable		0			0
Subordinated Debentures		36,083			29,639
Total Liabilities		1,545,987			1,474,220
Stockholders’ Equity
Common Stock		5,967			5,958
Additional Paid-In-Capital		11,413			11,267
Retained Earnings		101,161			95,075
Treasury Stock		(5,982	)		(5,982	)
Accumulated Other Comprehensive (Loss) Income, Net of Taxes		(6,159	)		(6,355	)
Total Stockholders’ Equity		106,400			99,963
Total Liabilities & Stockholders’ Equity	$	1,652,387		$	1,574,183

Century Bancorp, Inc. and Subsidiaries
Consolidated Comparative Statements of Income
For the Quarter and Year-to-date ending
June 30, 2005 and 2004 (000’s)

	(unaudited)
	Quarter				Year-to-date
	2005		2004		2005		2004
Interest Income:
Loans	$	10,086	$	8,122	$	19,284	$	16,204
Securities Held-to-Maturity		2,988		3,225		6,184		5,507
Securities Available-for-Sale		4,999		4,684		9,934		9,960
Federal Funds Sold and Interest-bearing Deposits In Other Banks		9		71		332		393
Total Interest Income		18,082		16,102		35,734		32,064
Interest Expense:
Savings and NOW Deposits		933		588		1,648		1,125
Money Market Accounts		1,769		1,174		3,480		2,424
Time Deposits		1,938		1,423		3,995		3,402
Securities Sold Under Agreements to Repurchase		130		73		230		151
FHLB Borrowings, Other Borrowed Funds and Long Term Debt		2,957		2,244		5,477		4,405
Total Interest Expense		7,727		5,502		14,830		11,507
Net Interest Income		10,355		10,600		20,904		20,557
Provision For Loan Losses		150		0		300		0
Net Interest Income After Provision for Loan Losses		10,205		10,600		20,604		20,557
Other Operating Income
Service Charges on Deposit Accounts		1,537		1,351		2,965		2,614
Lockbox Fees		786		847		1,495		1,582
Brokerage Commissions		139		186		292		352
Net (Losses) Gains on Sales of Securities		0		17		0		121
Other Income		457		344		832		829
Total Other Operating Income		2,919		2,745		5,584		5,498
Operating Expenses
Salaries		4,588		4,440		9,218		8,593
Employee Benefits		1,363		1,477		2,836		2,962
Occupancy		943		748		1,929		1,540
Equipment		714		595		1,496		1,153
Other		2,508		2,300		4,671		4,376
Total Operating Expenses		10,116		9,560		20,150		18,624
Income Before Income Taxes		3,008		3,785		6,038		7,431
Income Tax Expense
Provision for Income Taxes		973		1,382		1,961		2,710
Total Income Tax Expense		973		1,382		1,961		2,710
Net Income	$	2,035	$	2,403	$	4,077	$	4,721

Century Bancorp, Inc. and Subsidiaries
Consolidated Year-to-Date Average Comparative Statements of Condition
June 30, 2005 and 2004 (000’s)

	June 30,			June 30,
Assets	2005			2004
Cash and Due From Banks	$	53,482		$	61,184
Federal Funds Sold and Interest-Bearing Deposits in Other Banks		30,411			91,528
Securities Available-For-Sale (AFS)		593,086			610,957
Securities Held-to-Maturity		328,643			281,095
Total Loans		614,742			527,029
Less: Allowance for Loan Losses		9,176			8,758
Net Loans		605,566			518,271
Bank Premises and Equipment		26,453			22,698
Accrued Interest Receivable		7,525			7,814
Goodwill		2,714			2,714
Core Deposit Intangible		2,741			3,130
Other Assets		25,274			24,753
Total Assets	$	1,675,895		$	1,624,144
Liabilities
Demand Deposits	$	284,738		$	276,275
Interest Bearing Deposits:
Savings and NOW Deposits		330,911			335,075
Money Market Accounts		398,167			419,745
Time Deposits		265,699			246,848
Total Interest Bearing		994,777			1,001,668
Total Deposits		1,279,515			1,277,943
Borrowed Funds:
Securities Sold Under Agreements to Repurchase		36,004			39,496
Federal Home Loan Bank Advances and Other Borrowed Funds		201,983			158,047
Total Borrowed Funds		237,987			197,543
Other Liabilities		16,362			15,959
Subordinated Debentures		37,557			29,639
Total Liabilities		1,571,421			1,521,084
Stockholders’ Equity
Common Stock		5,966			5,956
Additional Paid-In Capital		11,407			11,239
Retained Earnings		99,803			93,429
Treasury Stock		(5,982	)		(5,982	)
Accumulated Other Comprehensive (Loss) Income, Net of Taxes		(6,720	)		(1,582	)
Total Stockholders’ Equity		104,474			103,060
Total Liabilities & Stockholders’ Equity	$	1,675,895		$	1,624,144
Total Average Earning Assets — QTD	$	1,547,894		$	1,495,784
Total Average Earning Assets — YTD	$	1,566,882		$	1,510,609

Century Bancorp, Inc. and Subsidiaries
Consolidated Selected Key Financial Information
June 30, 2005 and 2004 (000’s)

	2005			2004
Performance Measures:
Earnings per average share, basic, quarter	$	0.37		$	0.44
Earnings per average share, diluted, quarter	$	0.37		$	0.43
Earnings per average share, basic , year-to-date	$	0.74		$	0.85
Earnings per average share, diluted, year-to-date	$	0.74		$	0.85
Return on average assets, year-to-date		0.49	%		0.58	%
Return on average stockholders’ equity, year-to-date		7.87	%		8.80	%
Net interest margin (taxable equivalent), quarter		2.68	%		2.84	%
Net interest margin (taxable equivalent), year-to-date		2.67	%		2.72	%
Efficiency ratio, year-to-date		76.1	%		70.1	%
Book value per share	$	19.22		$	18.09
Tangible book value per share	$	18.25		$	17.05
Tangible capital / tangible assets		6.14	%		6.01	%
Common Share Data:
Average shares outstanding, basic, quarter		5,529,704			5,525,665
Average shares outstanding, basic, year-to-date		5,529,373			5,525,164
Average shares outstanding, diluted, quarter		5,535,018			5,553,500
Average shares outstanding, diluted, year-to-date		5,536,652			5,556,034
Shares outstanding Class A		3,435,677			3,426,698
Shares outstanding Class B		2,099,640			2,099,740
Total shares outstanding		5,535,317			5,526,438
Assets Quality and Other Data:
Allowance for loan losses / loans		1.44	%		1.59	%
Nonaccrual loans	$	646		$	949
Nonperforming assets	$	1,128		$	949
Loans 90 days past due and still accruing	$	100		$	0
Net charge-offs (recoveries)		($144	)	$	68
Leverage ratio		8.49	%		8.04	%
Tier 1 risk weighted capital ratio		16.07	%		17.15	%
Total risk weighted capital ratio		17.15	%		18.31	%
Total risk weighted assets	$	874,802		$	749,999