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

Medford, MA, October 11, 2005—Century Bancorp Inc. (NASDAQ:CNBKA) (www.century-bank.com) (“the Company”) today announced net income of $1,532,000 or $0.28 per share diluted, for the third quarter ended September 30, 2005, compared to net income of $2,133,000, or $0.38 per share diluted, for the third quarter of 2004. For the first nine months of 2005, net income totaled $5,609,000, or $1.01 per share diluted, compared to net income of $6,854,000, or $1.23 per share diluted, for the same period a year ago.

Net interest income totaled $30.7 million for the nine months ended September 30, 2005, versus $31.1 million for the same period in 2004. The 1.3% decrease in net interest income for the period is mainly due to a decrease of 14 basis points in the net interest margin which was partially offset by a $60 million, or 4.0%, increase in average earnings assets.

Operating expenses totaled $30.2 million for the nine months ended September 30, 2005, versus $28.2 million for the same period in 2004. Most of the increase with was attributable to increases in salaries and employee benefits, other expenses, occupancy and equipment expenses.

At September 30, 2005, total equity was $104.6 million compared to $105.3 million at September 30, 2004. Century’s leverage ratio stood at 8.63% on September 30, 2005, compared to 8.31% for the same period a year ago. Book value as of September 30, 2005 was $18.90 per share compared to $19.06 for the same period last year.

Century’s allowance for loan losses was $9.5 million, or 1.44% of loans outstanding at the end of the third quarter, compared to $8.9 million, or 1.55% of loans outstanding at September 30, 2004. Non-performing assets totaled $1.3 million at September 30, 2005, compared to $1.1 million at the end of the previous quarter and $0.7 million at September 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 November 15, 2005 to stockholders of record on November 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
September 30, 2005 and 2004 (000’s)

	(unaudited)
	September 30,			September 30,
Assets	2005			2004
Cash and Due From Banks	$	42,297		$	39,341
Federal Funds Sold and Interest-bearing Deposits In Other Banks		3,032			69,057
Securities Available-For-Sale (AFS)		558,654			505,016
Securities Held-to-Maturity		294,354			364,457
Loans:
Commercial & Industrial		89,009			73,930
Construction & Land Development		56,255			32,933
Commercial Real Estate		287,375			272,408
Residential Real Estate		139,767			113,234
Consumer and Other		10,302			9,996
Home Equity		77,682			67,931
Total Loans		660,390			570,432
Less: Allowance for Loan Losses		9,492			8,863
Net Loans		650,898			561,569
Bank Premises and Equipment		25,934			25,119
Accrued Interest Receivable		7,116			7,607
Goodwill		2,714			2,714
Core Deposit Intangible		2,544			2,932
Other Assets		38,619			28,919
Total Assets	$	1,626,162		$	1,606,731
Liabilities
Demand Deposits	$	269,260		$	267,348
Interest Bearing Deposits:
Savings and NOW Deposits		246,125			290,638
Money Market Accounts		313,830			421,605
Time Deposits		242,301			224,717
Total Interest Bearing		802,256			936,960
Total Deposits		1,071,516			1,204,308
Borrowed Funds:
Securities Sold Under Agreements to Repurchase		40,520			38,210
Federal Home Loan Bank Advances and Other Borrowed Funds		357,651			210,285
Total Borrowed Funds		398,171			248,495
Other Liabilities		15,778			13,897
Investments Purchased Payable		0			5,077
Subordinated Debentures		36,083			29,639
Total Liabilities		1,521,548			1,501,416
Stockholders’ Equity
Common Stock		5,967			5,958
Additional Paid-In-Capital		11,416			11,267
Retained Earnings		102,155			96,671
Treasury Stock		(5,982	)		(5,982	)
Accumulated Other Comprehensive (Loss) Income, Net of Taxes		(8,942	)		(2,599	)
Total Stockholders’ Equity		104,614			105,315
Total Liabilities & Stockholders’ Equity	$	1,626,162		$	1,606,731

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

	(unaudited)
	Quarter				Year-to-date
	2005		2004		2005		2004
Interest Income:
Loans	$	10,616	$	8,315	$	29,900	$	24,519
Securities Held-to-Maturity		2,773		3,438		8,957		8,945
Securities Available-for-Sale		4,895		4,276		14,829		14,236
Federal Funds Sold and Interest-bearing Deposits In Other Banks		5		48		337		441
Total Interest Income		18,289		16,077		54,023		48,141
Interest Expense:
Savings and NOW Deposits		1,015		598		2,663		1,723
Money Market Accounts		1,886		1,127		5,366		3,551
Time Deposits		2,174		1,467		6,169		4,869
Securities Sold Under Agreements to Repurchase		225		79		455		230
FHLB Borrowings, Other Borrowed Funds and Long Term Debt		3,215		2,290		8,692		6,695
Total Interest Expense		8,515		5,561		23,345		17,068
Net Interest Income		9,774		10,516		30,678		31,073
Provision For Loan Losses		150		150		450		150
Net Interest Income After Provision for Loan Losses		9,624		10,366		30,228		30,923
Other Operating Income
Service Charges on Deposit Accounts		1,481		1,301		4,446		3,915
Lockbox Fees		644		695		2,139		2,277
Brokerage Commissions		106		120		398		472
Net (Losses) Gains on Sales of Securities		0		0		0		121
Other Income		471		385		1,303		1,214
Total Other Operating Income		2,702		2,501		8,286		7,999
Operating Expenses
Salaries		4,707		4,522		13,925		13,115
Employee Benefits		1,357		1,467		4,193		4,429
Occupancy		874		790		2,803		2,330
Equipment		733		629		2,229		1,782
Other		2,396		2,179		7,067		6,555
Total Operating Expenses		10,067		9,587		30,217		28,211
Income Before Income Taxes		2,259		3,280		8,297		10,711
Income Tax Expense
Provision for Income Taxes		727		1,147		2,688		3,857
Total Income Tax Expense		727		1,147		2,688		3,857
Net Income	$	1,532	$	2,133	$	5,609	$	6,854

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

	September 30,			September 30,
Assets	2005			2004
Cash and Due From Banks	$	53,522		$	58,932
Federal Funds Sold and Interest-Bearing Deposits in Other Banks		20,366			65,709
Securities Available-For-Sale (AFS)		588,077			584,459
Securities Held-to-Maturity		318,871			308,652
Total Loans		627,858			536,330
Less: Allowance for Loan Losses		9,289			8,769
Net Loans		618,569			527,561
Bank Premises and Equipment		26,414			23,252
Accrued Interest Receivable		7,539			7,899
Goodwill		2,714			2,714
Core Deposit Intangible		2,693			3,082
Other Assets		25,425			24,671
Total Assets	$	1,664,190		$	1,606,931
Liabilities
Demand Deposits	$	282,653		$	276,824
Interest Bearing Deposits:
Savings and NOW Deposits		326,621			338,066
Money Market Accounts		385,003			408,614
Time Deposits		261,852			232,283
Total Interest Bearing		973,476			978,963
Total Deposits		1,256,129			1,255,787
Borrowed Funds:
Securities Sold Under Agreements to Repurchase		36,441			40,011
Federal Home Loan Bank Advances and Other Borrowed Funds		213,280			162,501
Total Borrowed Funds		249,721			202,512
Other Liabilities		16,408			15,416
Subordinated Debentures		37,060			29,639
Total Liabilities		1,559,318			1,503,354
Stockholders’ Equity
Common Stock		5,966			5,957
Additional Paid-In Capital		11,409			11,249
Retained Earnings		100,590			94,390
Treasury Stock		(5,982	)		(5,982	)
Accumulated Other Comprehensive (Loss) Income, Net of Taxes		(7,111	)		(2,037	)
Total Stockholders’ Equity		104,872			103,577
Total Liabilities & Stockholders’ Equity	$	1,664,190		$	1,606,931
Total Average Earning Assets — QTD	$	1,532,128		$	1,464,569
Total Average Earning Assets — YTD	$	1,555,170		$	1,495,150

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

	2005			2004
Performance Measures:
Earnings per average share, basic, quarter	$	0.28		$	0.39
Earnings per average share, diluted, quarter	$	0.28		$	0.38
Earnings per average share, basic, year-to-date	$	1.01		$	1.24
Earnings per average share, diluted, year-to-date	$	1.01		$	1.23
Return on average assets, year-to-date		0.45	%		0.57	%
Return on average stockholders’ equity, year-to-date		7.15	%		8.84	%
Net interest margin (taxable equivalent), quarter		2.55	%		2.87	%
Net interest margin (taxable equivalent), year-to-date		2.63	%		2.77	%
Efficiency ratio, year-to-date		77.6	%		72.2	%
Book value per share	$	18.90		$	19.06
Tangible book value per share	$	17.95		$	18.04
Tangible capital/tangible assets		6.13	%		6.23	%
Common Share Data:
Average shares outstanding, basic, quarter		5,535,388			5,526,438
Average shares outstanding, basic, year-to-date		5,535,121			5,525,594
Average shares outstanding, diluted, quarter		5,559,344			5,552,202
Average shares outstanding, diluted, year-to-date		5,548,438			5,553,997
Shares outstanding Class A		3,435,802			3,426,698
Shares outstanding Class B		2,099,640			2,099,740
Total shares outstanding		5,535,442			5,526,438
Assets Quality and Other Data:
Allowance for loan losses/loans		1.44	%		1.55	%
Nonaccrual loans	$	1,264		$	663
Nonperforming assets	$	1,264		$	663
Loans 90 days past due and still accruing	$	5		$	0
Net charge-offs (recoveries)		($41	)	$	56
Leverage ratio		8.63	%		8.31	%
Tier 1 risk weighted capital ratio		16.12	%		16.86	%
Total risk weighted capital ratio		17.20	%		18.00	%
Total risk weighted assets	$	879,024		$	773,084