Century Bancorp (CNBKA) 8-K Century Bancorp, Inc. Reports First Quarter Results

EXHIBIT 99.1   

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

Medford, MA, April 23, 2007—Century Bancorp, Inc. (NASDAQ:CNBKA) (www.century-bank.com) (“the Company”) today announced net income of $1,004,000, or $0.18 per share diluted, for the first quarter ended March 31, 2007, compared to net income of $1,430,000, or $0.26 per share diluted, for the first quarter ended March 31, 2006. Included in income for 2006 is the previously announced pre-tax gain of $600,000 from the sale of its rights to future royalty payments for a portion of its Merchant Credit Card customer base.

Net interest income totaled $9,202,000 for the quarter ended March 31, 2007, versus $9,327,000 for the same period in 2006. The 1.3% decrease in net interest income for the period is mainly due to the current inverted yield curve environment and increased funding costs that resulted in a decrease of 3 basis points in the net interest margin.

At March 31, 2007, total equity was $108.9 million compared to $106.8 million at December 31, 2006. The Company’s equity was increased by an improvement of $1.6 million in the net unrealized loss on the Company’s available-for-sale portfolio as well as earnings less dividends paid. The Company’s leverage ratio stood at 8.81% on March 31, 2007, compared to 8.67% for the same period a year ago. Book value as of March 31, 2007 was $19.65 per share compared to $18.65 for the same period last year.

-more-

The Company’s allowance for loan losses was $9.8 million or 1.37% of loans outstanding at the end of the first quarter of 2007, compared to $9.7 million, or 1.32% of loans outstanding at December 31, 2006 and $9.4 million or 1.31% at March 31, 2006. Non-performing assets totaled $0.6 million at March 31, 2007, compared to $0.1 million at December 31, 2006 and $0.2 million at March 31, 2006.

The Company has analyzed the early adoption of the Statement of Financial Accounting Standards No. 159,The Fair Value Option for Financial Assets and Financial Liabilities(SFAS 159). Upon review of emerging guidance, the Company will not early adopt the standard.

The Company, 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 (unaudited)
(000’s)

	March 31,		December 31,
	2007		2006
Assets
Cash and Due From Banks	$	45,454	$	60,465
Federal Funds Sold and Interest-bearing Deposits In Other Banks		103,731		99,203
Securities Available-For-Sale (AFS)		366,916		415,481
Securities Held-to-Maturity		261,450		265,712
Loans:
Commercial & Industrial		119,719		121,393
Construction & Land Development		52,383		49,153
Commercial Real Estate		301,879		323,700
Residential Real Estate		168,555		167,946
Consumer and Other		14,278		11,201
Home Equity		60,496		63,380
Total Loans		717,310		736,773
Less: Allowance for Loan Losses		9,797		9,713
Net Loans		707,513		727,060
Bank Premises and Equipment		22,964		22,955
Accrued Interest Receivable		7,062		7,372
Goodwill		2,714		2,714
Core Deposit Intangible		1,962		2,059
Other Assets		42,457		41,269
Total Assets	$	1,562,223	$	1,644,290
Liabilities
Demand Deposits	$	259,274	$	283,449
Interest Bearing Deposits:
Savings and NOW Deposits		278,862		274,231
Money Market Accounts		286,357		301,188
Time Deposits		365,569		410,097
Total Interest Bearing		930,788		985,516
Total Deposits		1,190,062		1,268,965
Borrowed Funds:
Securities Sold Under Agreements to Repurchase		84,840		86,960
Other Borrowed Funds		119,400		123,023
Total Borrowed Funds		204,240		209,983
Other Liabilities		22,913		22,441
Subordinated Debentures		36,083		36,083
Total Liabilities		1,453,298	��	1,537,472
Total Stockholders’ Equity		108,925		106,818
Total Liabilities & Stockholders’ Equity	$	1,562,223	$	1,644,290

Century Bancorp, Inc. and Subsidiaries
Consolidated Comparative Statements of Income (unaudited)
For the Quarter and Year-to-date ending
March 31, 2007 and 2006 (000’s)

	Quarter and Year-to-date
	2007		2006
Interest Income:
Loans	$	12,971	$	11,935
Securities Held-to-Maturity		2,396		2,613
Securities Available-for-Sale		3,552		4,609
Federal Funds Sold and Interest-bearing Deposits In Other Banks		1,827		30
Total Interest Income		20,746		19,187
Interest Expense:
Savings and NOW Deposits		1,592		923
Money Market Accounts		2,386		1,778
Time Deposits		4,610		3,181
Securities Sold Under Agreements to Repurchase		773		415
Other Borrowed Funds and Subordinated Debentures		2,183		3,563
Total Interest Expense		11,544		9,860
Net Interest Income		9,202		9,327
Provision For Loan Losses		300		150
Net Interest Income After
Provision for Loan Losses		8,902		9,177
Other Operating Income
Service Charges on Deposit Accounts		1,786		1,516
Lockbox Fees		734		675
Brokerage Commissions		24		48
Other Income		305		888
Total Other Operating Income		2,849		3,127
Operating Expenses
Salaries		4,626		4,711
Employee Benefits		1,587		1,537
Occupancy		996		1,045
Equipment		733		735
Other Expenses		2,360		2,137
Total Operating Expenses		10,302		10,165
Income Before Income Taxes		1,449		2,139
Income Tax Expense		445		709
Net Income	$	1,004	$	1,430

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

	March 31,			March 31,
	2007			2006
Assets
Cash and Due From Banks	$	59,704		$	57,737
Federal Funds Sold and Interest-Bearing Deposits in Other Banks		140,819			3,065
Securities Available-For-Sale (AFS)		396,199			537,674
Securities Held-to-Maturity		263,714			283,949
Total Loans		725,872			702,327
Less: Allowance for Loan Losses		9,817			9,395
Net Loans		716,055			692,932
Unrealized loss an Securities Available-For-Sale		(7,142	)		(14,059	)
Bank Premises and Equipment		23,071			25,006
Accrued Interest Receivable		7,254			7,607
Goodwill		2,714			2,714
Core Deposit Intangible		2,021			2,410
Other Assets		41,993			39,619
Total Assets	$	1,646,402		$	1,638,654
Liabilities
Demand Deposits	$	279,897		$	282,872
Interest Bearing Deposits:
Savings and NOW Deposits		305,694			276,498
Money Market Accounts		298,125			302,250
Time Deposits		390,618			323,222
Total Interest Bearing		994,437			901,970
Total Deposits		1,274,334			1,184,842
Borrowed Funds:
Securities Sold Under Agreements to Repurchase		84,131			52,256
Other Borrowed Funds		120,659			242,941
Total Borrowed Funds		204,790			295,197
Other Liabilities		23,228			18,662
Subordinated Debentures		36,083			36,083
Total Liabilities		1,538,435			1,534,784
Total Stockholders’ Equity		107,967			103,870
Total Liabilities & Stockholders’ Equity	$	1,646,402		$	1,638,654
Total Average Earning Assets — QTD	$	1,526,603		$	1,527,015
Total Average Earning Assets — YTD	$	1,526,603		$	1,527,015

Century Bancorp, Inc. and Subsidiaries
Consolidated Selected Key Financial Information (unaudited)
(000’s, except share data)

	March 31,			March 31,
	2007			2006
Performance Measures:
Earnings per average share, basic, quarter	$	0.18		$	0.26
Earnings per average share, diluted, quarter	$	0.18		$	0.26
Earnings per average share, basic , year-to-date	$	0.18		$	0.26
Earnings per average share, diluted, year-to-date	$	0.18		$	0.26
Return on average assets, year-to-date		0.25	%		0.35	%
Return on average stockholders’ equity, year-to-date		3.77	%		5.58	%
Net interest margin (taxable equivalent), quarter		2.41	%		2.44	%
Net interest margin (taxable equivalent), year-to-date		2.41	%		2.44	%
Efficiency ratio, year-to-date		85.3	%		81.6	%
Book value per share	$	19.65		$	18.65
Tangible book value per share	$	18.81		$	17.74
Tangible capital / tangible assets		6.69	%		5.85	%
Common Share Data:
Average shares outstanding, basic, quarter		5,541,225			5,540,523
Average shares outstanding, basic, year-to-date		5,541,225			5,540,523
Average shares outstanding, diluted, quarter		5,550,653			5,553,351
Average shares outstanding, diluted, year-to-date		5,550,653			5,553,351
Shares outstanding Class A		3,513,604			2,483,638
Shares outstanding Class B		2,028,700			2,057,450
Total shares outstanding at period end		5,542,304			4,541,088
Assets Quality and Other Data:
Allowance for loan losses / loans		1.37	%		1.31	%
Nonaccrual loans	$	625		$	239
Nonperforming assets	$	625		$	239
Loans 90 days past due and still accruing	$	0		$	0
Net charge-offs (recoveries)	$	215		$	63
Leverage ratio		8.81	%		8.67	%
Tier 1 risk weighted capital ratio		16.59	%		15.43	%
Total risk weighted capital ratio		17.71	%		16.45	%
Total risk weighted assets	$	873,785		$	922,805