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

Exhibit 99.1

NEWS RELEASE

FOR IMMEDIATE RELEASE

Contact: William P. Hornby, CPA
whornby@century-bank.com

Phone: 781-393-4630

Fax: 781-393-4071

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

Medford, MA, July 8, 2008—Century Bancorp, Inc. (NASDAQ:CNBKA) (www.century-bank.com) (“the Company”) today announced net income of $1,876,000, or $0.34 per share diluted, for the second quarter ended June 30, 2008, an increase of 15.6% when compared to net income of $1,623,000, or $0.29 per share diluted, for the second quarter ended June 30, 2007. For the first six months of 2008, net income totaled $3,676,000, or $0.66 per share diluted, an increase of 39.9% when compared to net income of $2,627,000, or $0.47 per share diluted, for the same period a year ago.

Net interest income totaled $20.9 million for the first six months of 2008 as compared to $19.0 million for the same period in 2007. The 10.0% increase in net interest income for the period is due to an increase of thirty-three basis points in the net interest margin, from 2.52% on a fully taxable equivalent basis in 2007 to 2.85% on the same basis for 2008. Included in interest income for the six months ended June 30, 2008 is $52,000 of prepayment fees collected on loans compared to $418,000 for the same period a year ago, a decrease of $366,000.

At June 30, 2008, total equity was $120.6 million compared to $118.8 million at December 31, 2007. The Company’s equity increased as a result of earnings offset by an increase in accumulated other comprehensive loss, net of taxes and dividends paid. The Company’s leverage ratio stood at 9.22% at June 30, 2008, compared to 9.12% at June 30, 2007. Book value as of June 30, 2008 was $21.76 per share compared to $19.78 at June 30, 2007.

-more-

The Company’s allowance for loan losses was $9.5 million or 1.24% of loans outstanding at the end of the second quarter of 2008, compared to $9.3 million, or 1.29% of loans outstanding at June 30, 2007 and $9.6 million, or 1.33% of loans outstanding at December 31, 2007. Non-performing assets totaled $3.8 million at June 30, 2008, compared to $1.8 million at December 31, 2007 and $1.5 million at June 30, 2007. Non-performing assets increased primarily as a result of an increase in consumer mortgages and small business loans on non-accrual.

The Company’s Board of Directors voted a regular quarterly dividend of 12.00 cents ($0.12) per share on the Company’s Class A common stock, and 6.00 cents ($0.06) per share on the Company’s Class B common stock. The dividends were declared payable August 15, 2008 to stockholders of record on August 1, 2008.

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 or 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)
(in thousands)

	June 30,		December 31,
	2008		2007
Assets
Cash and Due From Banks	$	78,641	$	66,974
Federal Funds Sold and Interest-bearing Deposits In Other Banks		93,003		232,927
Securities Available-For-Sale (AFS)		484,358		403,635
Securities Held-to-Maturity		203,693		183,710
Loans:
Commercial & Industrial		124,996		117,332
Construction & Land Development		55,519		62,412
Commercial Real Estate		311,550		299,920
Residential Real Estate		179,053		168,204
Consumer and Other		10,258		10,949
Home Equity		83,113		67,434
Total Loans		764,489		726,251
Less: Allowance for Loan Losses		9,469		9,633
Net Loans		755,020		716,618
Bank Premises and Equipment		22,497		21,985
Accrued Interest Receivable		6,356		6,590
Goodwill		2,714		2,714
Core Deposit Intangible		1,477		1,671
Other Assets		66,499		43,457
Total Assets	$	1,714,258	$	1,680,281
Liabilities
Demand Deposits	$	284,942	$	289,526
Interest Bearing Deposits:
Savings and NOW Deposits		335,608		310,858
Money Market Accounts		306,194		234,099
Time Deposits		247,304		295,578
Total Interest Bearing		889,106		840,535
Total Deposits		1,174,048		1,130,061
Borrowed Funds:
Securities Sold Under Agreements to Repurchase		99,150		85,990
Other Borrowed Funds		257,585		289,885
Total Borrowed Funds		356,735		375,875
Other Liabilities		26,772		19,456
Subordinated Debentures		36,083		36,083
Total Liabilities		1,593,638		1,561,475
Total Stockholders’ Equity		120,620		118,806
Total Liabilities & Stockholders’ Equity	$	1,714,258	$	1,680,281

Century Bancorp, Inc. and Subsidiaries
Consolidated Comparative Statements of Income (unaudited)
For the Quarter and Six Months Ended June 30, 2008 and 2007
(in thousands)

	Quarter Ended June 30,				Six Months Ended June 30,
	2008		2007		2008		2007
Interest Income:
Loans	$	11,882	$	13,132	$	24,144	$	26,103
Securities Held-to-Maturity		2,094		2,350		3,999		4,746
Securities Available-for-Sale		4,757		3,451		9,136		7,003
Federal Funds Sold and Interest-bearing Deposits In Other Banks		737		1,904		1,953		3,731
Total Interest Income		19,470		20,837		39,232		41,583
Interest Expense:
Savings and NOW Deposits		1,458		1,590		3,072		3,182
Money Market Accounts		1,829		2,436		3,419		4,822
Time Deposits		2,271		4,047		5,187		8,657
Securities Sold Under Agreements to Repurchase		359		771		875		1,544
Other Borrowed Funds and Subordinated Debentures		2,897		2,204		5,791		4,387
Total Interest Expense		8,814		11,048		18,344		22,592
Net Interest Income		10,656		9,789		20,888		18,991
Provision For Loan Losses		925		300		1,625		600
Net Interest Income After Provision for Loan Losses		9,731		9,489		19,263		18,391
Other Operating Income
Service Charges on Deposit Accounts		2,028		1,863		4,009		3,649
Lockbox Fees		827		823		1,599		1,557
Net Gain on Sales of Investments		2		—		102		—
Other Income		620		406		1,189		735
Total Other Operating Income		3,477		3,092		6,899		5,941
Operating Expenses
Salaries and Employee Benefits		6,315		6,287		12,605		12,500
Occupancy		1,079		918		2,143		1,914
Equipment		742		773		1,472		1,506
Other		2,607		2,269		4,907		4,629
Total Operating Expenses		10,743		10,247		21,127		20,549
Income Before Income Taxes		2,465		2,334		5,035		3,783
Income Tax Expense		589		711		1,359		1,156
Net Income	$	1,876	$	1,623	$	3,676	$	2,627

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

	June 30,		June 30,
	2008		2007
Assets
Cash and Due From Banks	$	57,223	$	58,447
Federal Funds Sold and Interest-Bearing Deposits in Other Banks		147,191		142,886
Securities Available-For-Sale (AFS)		421,492		380,716
Securities Held-to-Maturity		192,451		261,474
Total Loans		742,168		719,945
Less: Allowance for Loan Losses		9,710		9,793
Net Loans		732,458		710,152
Unrealized Gain(Loss) on Securities AFS		1,707		(6,668	)
Bank Premises and Equipment		22,449		23,162
Accrued Interest Receivable		6,886		6,977
Goodwill		2,714		2,714
Core Deposit Intangible		1,584		1,970
Other Assets		43,751		42,555
Total Assets	$	1,629,906	$	1,624,385
Liabilities
Demand Deposits	$	259,514	$	278,371
Interest Bearing Deposits:
Savings and NOW Deposits		356,144		308,314
Money Market Accounts		280,653		297,938
Time Deposits		270,143		367,396
Total Interest Bearing		906,940		973,648
Total Deposits		1,166,454		1,252,019
Borrowed Funds:
Securities Sold Under Agreements to Repurchase		95,100		83,599
Other Borrowed Funds		189,656		120,731
Total Borrowed Funds		284,756		204,330
Other Liabilities		21,298		23,338
Subordinated Debentures		36,083		36,083
Total Liabilities		1,508,591		1,515,770
Total Stockholders’ Equity		121,315		108,615
Total Liabilities & Stockholders’ Equity	$	1,629,906	$	1,624,385
Total Average Earning Assets — QTD	$	1,538,302	$	1,483,675
Total Average Earning Assets — YTD	$	1,503,302	$	1,505,021

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

	June 30,			June 30,
	2008			2007
Performance Measures:
Earnings per average share, basic, quarter	$	0.34		$	0.29
Earnings per average share, diluted, quarter	$	0.34		$	0.29
Earnings per average share, basic, year-to-date	$	0.66		$	0.47
Earnings per average share, diluted, year-to-date	$	0.66		$	0.47
Return on average assets, year-to-date		0.45	%		0.33	%
Return on average stockholders’ equity, year-to-date		6.09	%		4.88	%
Net interest margin (taxable equivalent), quarter		2.86	%		2.64	%
Net interest margin (taxable equivalent), year-to-date		2.85	%		2.52	%
Efficiency ratio, year-to-date		74.6	%		82.3	%
Book value per share	$	21.76		$	19.78
Tangible book value per share	$	21.00		$	18.96
Tangible capital / tangible assets		6.81	%		6.92	%
Common Share Data:
Average shares outstanding, basic, quarter		5,543,781			5,542,304
Average shares outstanding, basic, year-to-date		5,543,792			5,541,768
Average shares outstanding, diluted, quarter		5,546,128			5,548,105
Average shares outstanding, diluted, year-to-date		5,546,423			5,549,651
Shares outstanding Class A		3,516,304			3,513,704
Shares outstanding Class B		2,027,100			2,028,600
Total shares outstanding at period end		5,543,404			5,542,304
Assets Quality and Other Data:
Allowance for loan losses / loans		1.24	%		1.29	%
Nonaccrual loans	$	3,382		$	1,454
Nonperforming assets	$	3,835		$	1,454
Loans 90 days past due and still accruing	$	—		$	—
Net charge-offs (recoveries), year-to-date	$	1,789		$	999
Leverage ratio		9.22	%		9.12	%
Tier 1 risk weighted capital ratio		15.66	%		16.50	%
Total risk weighted capital ratio		16.63	%		17.55	%
Total risk weighted assets	$	978,349		$	885,536