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. pcusick@century-bank.com
Phone:	781-393-4601
Fax:	781-393-4071

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

Medford, MA, April 11, 2006—Century Bancorp, Inc. (NASDAQ:CNBKA) (www.century-bank.com) (“the Company”) today announced net income of $1,430,000, or $0.26 per share diluted, for the first quarter ended March 31, 2006, compared to net income of $2,041,000, or $0.37 per share diluted, for the first quarter of 2005. Included in income for 2006 is the previously announced pre-tax gain of $600 thousand from the sale of its rights to future royalty payments for a portion of its Merchant Credit Card customer base.

Net interest income totaled $9.3 million for the quarter ended March 31, 2006, versus $10.5 million for the same period in 2005. The 11.6% decrease in net interest income for the period is mainly due to a decrease of twenty-two basis points in the net interest margin as well as a $59.1 million or 3.7% decrease in average earnings assets.

At March 31, 2006, total equity was $103.3 million compared to $101.7 million at March 31, 2005. Century’s leverage ratio stood at 8.67% on March 31, 2006, compared to 8.17% for the same period a year ago. Book value as of March 31, 2006 was $18.65 per share compared to $18.38 for the same period last year.

Century’s allowance for loan losses was $9.4 million or 1.31% of loans outstanding at the end of the first quarter, compared to $9.3 million, or 1.35% of loans outstanding at December 31, 2005. Non-performing assets totaled $0.2 million at March 31, 2006, compared to $0.9 million at the end of the previous quarter and $1.5 million at March 31, 2005.

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 15, 2006 to stockholders of record on May 1, 2006.

-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
(000’s)

	(unaudited)
	March 31,		December 31,
	2006		2005
Assets
Cash and Due From Banks	$	46,920	$	47,626
Federal Funds Sold and Interest-bearing Deposits In Other Banks		52,002		105,053
Securities Available-For-Sale (AFS)		517,613		532,982
Securities Held-to-Maturity		281,071		286,578
Loans:
Commercial & Industrial		101,803		94,139
Construction & Land Development		71,505		58,846
Commercial Real Estate		305,766		302,279
Residential Real Estate		153,987		146,355
Consumer and Other		10,566		11,316
Home Equity		74,360		76,710
Total Loans		717,987		689,645
Less: Allowance for Loan Losses		9,427		9,340
Net Loans		708,560		680,305
Bank Premises and Equipment		24,631		25,228
Accrued Interest Receivable		7,357		7,127
Goodwill		2,714		2,714
Core Deposit Intangible		2,350		2,447
Other Assets		40,926		38,709
Total Assets	$	1,684,144	$	1,728,769
Liabilities
Demand Deposits	$	283,800	$	296,696
Interest Bearing Deposits:
Savings and NOW Deposits		261,620		239,326
Money Market Accounts		307,801		279,245
Time Deposits		314,747		401,773
Total Interest Bearing		884,168		920,344
Total Deposits		1,167,968		1,217,040
Borrowed Funds:
Securities Sold Under Agreements to Repurchase		54,020		50,010
Other Borrowed Funds		303,775		304,722
Total Borrowed Funds		357,795		354,732
Other Liabilities		18,954		17,713
Subordinated Debentures		36,083		36,083
Total Liabilities		1,580,800		1,625,568
Total Stockholders’ Equity		103,344		103,201
Total Liabilities & Stockholders’ Equity	$	1,684,144	$	1,728,769

Century Bancorp, Inc. and Subsidiaries
Consolidated Comparative Statements of Income (unaudited)
For the Quarter and Year-to-date ending
March 31, 2006 and 2005 (000’s)

	Quarter and Year-to-date
	2006		2005
Interest Income:
Loans	$	11,935	$	9,198
Securities Held-to-Maturity		2,613		3,196
Securities Available-for-Sale		4,609		4,935
Federal Funds Sold and Interest-bearing Deposits In Other Banks		30		323
Total Interest Income		19,187		17,652
Interest Expense:
Savings and NOW Deposits		923		715
Money Market Accounts		1,778		1,711
Time Deposits		3,181		2,057
Securities Sold Under Agreements to Repurchase		415		100
Other Borrowed Funds and Subordinated Debentures		3,563		2,520
Total Interest Expense		9,860		7,103
Net Interest Income		9,327		10,549
Provision For Loan Losses		150		150
Net Interest Income After Provision for Loan Losses		9,177		10,399
Other Operating Income
Service Charges on Deposit Accounts		1,516		1,428
Lockbox Fees		675		709
Brokerage Commissions		48		153
Net (Losses) Gains on Sales of Securities		0		0
Other Income		888		375
Total Other Operating Income		3,127		2,665
Operating Expenses
Salaries		4,711		4,630
Employee Benefits		1,537		1,473
Occupancy		1,045		986
Equipment		735		782
Other		2,137		2,164
Total Operating Expenses		10,165		10,035
Income Before Income Taxes		2,139		3,029
Income Tax Expense Provision for Income Taxes		709		988
Total Income Tax Expense		709		988
Net Income	$	1,430	$	2,041

Century Bancorp, Inc. and Subsidiaries
Consolidated Year-to-Date Average Comparative Statements of Condition (unaudited)
March 31, 2006 and 2005 (000’s)

	March 31,		March 31,
	2006		2005
Assets
Cash and Due From Banks	$	57,737	$	55,051
Federal Funds Sold and Interest-Bearing Deposits in Other Banks		3,065		59,797
Securities Available-For-Sale (AFS)		537,674		596,015
Securities Held-to-Maturity		283,949		338,893
Total Loans		702,327		591,377
Less: Allowance for Loan Losses		9,395		9,099
Net Loans		692,932		582,278
Bank Premises and Equipment		25,006		26,375
Accrued Interest Receivable		7,607		7,548
Goodwill		2,714		2,714
Core Deposit Intangible		2,410		2,787
Other Assets		25,560		24,181
Total Assets	$	1,638,654	$	1,695,639
Liabilities
Demand Deposits	$	282,872	$	286,497
Interest Bearing Deposits:
Savings and NOW Deposits		276,498		325,364
Money Market Accounts		302,250		426,312
Time Deposits		323,222		285,523
Total Interest Bearing		901,970		1,037,199
Total Deposits		1,184,842		1,323,696
Borrowed Funds:
Securities Sold Under Agreements to Repurchase		52,256		38,560
Federal Home Loan Bank Advances and Other Borrowed Funds		242,941		174,330
Total Borrowed Funds		295,197		212,890
Other Liabilities		18,662		16,308
Subordinated Debentures		36,083		39,047
Total Liabilities		1,534,784		1,591,941
Total Stockholders’ Equity		103,870		103,698
Total Liabilities & Stockholders’ Equity	$	1,638,654	$	1,695,639
Total Average Earning Assets — QTD	$	1,527,015	$	1,586,082
Total Average Earning Assets — YTD	$	1,527,015	$	1,586,082

Century Bancorp, Inc. and Subsidiaries
Consolidated Selected Key Financial Information (unaudited)
March 31, 2006 and 2005
(dollars in thousands, except share data)

	2006			2005
Performance Measures:
Earnings per average share, basic, quarter	$	0.26		$	0.37
Earnings per average share, diluted, quarter	$	0.26		$	0.37
Earnings per average share, basic, year-to-date	$	0.26		$	0.37
Earnings per average share, diluted, year-to-date	$	0.26		$	0.37
Return on average assets, year-to-date		0.35	%		0.49	%
Return on average stockholders’ equity, year-to-date		5.58	%		7.98	%
Net interest margin (taxable equivalent), quarter		2.44	%		2.66	%
Net interest margin (taxable equivalent), year-to-date		2.44	%		2.66	%
Efficiency ratio, year-to-date		81.6	%		75.9	%
Book value per share	$	18.65		$	18.38
Tangible book value per share	$	17.74		$	17.40
Tangible capital/tangible assets		5.85	%		5.93	%
Common Share Data:
Average shares outstanding, basic, quarter		5,540,523			5,534,651
Average shares outstanding, basic, year-to-date		5,540,523			5,534,651
Average shares outstanding, diluted, quarter		5,546,470			5,543,783
Average shares outstanding, diluted, year-to-date		5,546,470			5,543,783
Shares outstanding Class A		3,483,638			3,435,677
Shares outstanding Class B		2,057,450			2,099,640
Total shares outstanding		5,541,088			5,535,317
Assets Quality and Other Data:
Allowance for loan losses/loans		1.31	%		1.51	%
Nonaccrual loans	$	239		$	1,057
Nonperforming assets	$	239		$	1,539
Loans 90 days past due and still accruing	$	0		$	0
Net charge-offs (recoveries)	$	63			($3	)
Leverage ratio		8.67	%		8.17	%
Tier 1 risk weighted capital ratio		15.43	%		16.56	%
Total risk weighted capital ratio		16.45	%		17.70	%
Total risk weighted assets	$	922,805		$	836,217