Century Bancorp (CNBKA) 8-K Results of Operations and Financial Condition

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. ANNOUNCES 15% EARNINGS GROWTH FOR 2008 AND
AN INCREASE IN ASSETS TO $1.8 BILLION; REGULAR DIVIDEND DECLARED.

Medford, MA, January 20, 2009—Century Bancorp, Inc. (NASDAQ:CNBKA) (www.century-bank.com) (“the Company”) today announced net income of $2,811,000, or $0.51 per share diluted, for the fourth quarter ended December 31, 2008, an increase of 18.4% when compared to net income of $2,374,000, or $0.43 per share diluted, for the fourth quarter ended December 31, 2007. For the year ended December 31, 2008, net income totaled $9,046,000, or $1.63 per share diluted, an increase of 15.0% when compared to net income of $7,864,000, or $1.42 per share diluted, for 2007. The Company’s effective tax rate declined from 31.0% in 2007 to 20.0% in 2008 primarily as a result of an increase in tax-exempt interest income. Included in income for the year ended December 31, 2007 is the after-tax gain of $872,000 or $0.16 per share diluted, on the sale of the building which housed the Company’s previous location for a branch located in Medford Square.

Total assets increased 7.2% from $1.7 billion at December 31, 2007 to $1.8 billion at December 31, 2008.

Net interest income totaled $44.8 million for 2008 as compared to $39.2 million for 2007. The 14.2% increase in net interest income for the year is due to an increase of 35 basis points in the net interest margin, from 2.65% on a fully taxable equivalent basis in 2007 to 3.00% on the same basis for 2008.

At December 31, 2008, total equity was $120.5 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, primarily as a result of the December 31, 2008 revaluation of pension assets and liabilities and dividends paid. The Company’s leverage ratio stood at 9.05% at December 31, 2008, compared to 9.56% at December 31, 2007. Book value as of December 31, 2008 was $21.76 per share compared to $21.43 at December 31, 2007.

-more-

The Company’s allowance for loan losses was $11.1 million or 1.33% of loans outstanding at December 31, 2008, compared to $9.6 million, or 1.33% of loans outstanding at December 31, 2007. Non-performing assets totaled $3.7 million at December 31, 2008, compared to $1.8 million at December 31, 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 February 17, 2009 to stockholders of record on February 2, 2009.

The Company, 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. During the fourth quarter of 2008, a branch was opened at 522 Main Street in Winchester, Massachusetts.

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)

	December 31,		December 31,
	2008		2007
Assets
Cash and Due From Banks	$	61,195	$	66,974
Federal Funds Sold and Interest-bearing Deposits In Other Banks		138,787		232,927
Securities Available-For-Sale (AFS)		495,585		388,104
Securities Held-to-Maturity		184,047		183,710
Federal Home Loan Bank of Boston stock, at cost		15,531		15,531
Loans:
Commercial & Industrial		141,373		117,332
Construction & Land Development		59,511		62,412
Commercial Real Estate		332,325		299,920
Residential Real Estate		194,644		168,204
Consumer and Other		9,258		9,798
Home Equity		98,954		68,585
Total Loans		836,065		726,251
Less: Allowance for Loan Losses		11,119		9,633
Net Loans		824,946		716,618
Bank Premises and Equipment		22,054		21,985
Accrued Interest Receivable		6,723		6,590
Goodwill		2,714		2,714
Core Deposit Intangible		1,283		1,671
Other Assets		48,701		43,457
Total Assets	$	1,801,566	$	1,680,281
Liabilities
Demand Deposits	$	277,217	$	289,526
Interest Bearing Deposits:
Savings and NOW Deposits		353,261		310,858
Money Market Accounts		308,177		234,099
Time Deposits		326,872		295,578
Total Interest Bearing		988,310		840,535
Total Deposits		1,265,527		1,130,061
Borrowed Funds:
Securities Sold Under Agreements to Repurchase		112,510		85,990
Other Borrowed Funds		238,558		289,885
Total Borrowed Funds		351,068		375,875
Other Liabilities		28,385		19,456
Subordinated Debentures		36,083		36,083
Total Liabilities		1,681,063		1,561,475
Total Stockholders’ Equity		120,503		118,806
Total Liabilities & Stockholders’ Equity	$	1,801,566	$	1,680,281

Century Bancorp, Inc. and Subsidiaries
Consolidated Comparative Statements of Income (unaudited)
For the Quarter and Year Ended December 31, 2008 and 2007
(in thousands)

	Quarter Ended December 31,				Year Ended December 31,
	2008		2007		2008			2007
Interest Income:
Loans	$	12,576	$	13,056	$	49,303		$	52,796
Securities Held-to-Maturity		2,075		2,020		8,265			9,065
Securities Available-for-Sale		5,613		3,920		20,312			14,478
Federal Funds Sold and Interest-bearing Deposits In Other Banks		306		1,485		2,813			6,669
Total Interest Income		20,570		20,481		80,693			83,008
Interest Expense:
Savings and NOW Deposits		1,409		1,819		6,005			6,712
Money Market Accounts		1,780		1,849		7,260			8,901
Time Deposits		2,402		3,377		9,744			15,640
Securities Sold Under Agreements to Repurchase		188		763		1,393			3,191
Other Borrowed Funds and Subordinated Debentures		2,859		2,570		11,512			9,361
Total Interest Expense		8,638		10,378		35,914			43,805
Net Interest Income		11,932		10,103		44,779			39,203
Provision For Loan Losses		1,450		600		4,425			1,500
Net Interest Income After Provision for Loan Losses		10,482		9,503		40,354			37,703
Other Operating Income
Service Charges on Deposit Accounts		2,149		1,949		8,190			7,579
Lockbox Fees		654		694		2,953			2,956
Net Gain on Sales of Investments		—		153		249			153
Write-down of Certain Investments to Fair Value		—		—		(76	)		—
Gain on Sale of Building		—		117		—			1,438
Other Income		696		678		2,659			1,822
Total Other Operating Income		3,499		3,591		13,975			13,948
Operating Expenses
Salaries and Employee Benefits		6,572		5,962		25,615			24,543
Occupancy		1,093		993		4,246			3,852
Equipment		675		692		2,874			2,957
Other		2,510		2,118		10,293			8,903
Total Operating Expenses		10,850		9,765		43,028			40,255
Income Before Income Taxes		3,131		3,329		11,301			11,396
Income Tax Expense		320		955		2,255			3,532
Net Income	$	2,811	$	2,374	$	9,046		$	7,864

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

	December 31,			December 31,
	2008			2007
Assets
Cash and Due From Banks	$	58,398		$	57,553
Federal Funds Sold and Interest-Bearing Deposits in Other Banks		114,262			131,900
Securities Available-For-Sale (AFS)		473,344			373,208
Securities Held-to-Maturity		193,584			248,338
Total Loans		775,337			725,903
Less: Allowance for Loan Losses		9,997			9,719
Net Loans		765,340			716,184
Unrealized Gain(Loss) on Securities AFS		(291	)		(4,551	)
Bank Premises and Equipment		22,393			22,869
Accrued Interest Receivable		7,061			7,110
Goodwill		2,714			2,714
Core Deposit Intangible		1,485			1,870
Other Assets		45,070			43,087
Total Assets	$	1,683,360		$	1,600,282
Liabilities
Demand Deposits	$	267,966		$	278,402
Interest Bearing Deposits:
Savings and NOW Deposits		369,687			314,961
Money Market Accounts		308,432			277,482
Time Deposits		273,925			335,972
Total Interest Bearing		952,044			928,415
Total Deposits		1,220,010			1,206,817
Borrowed Funds:
Securities Sold Under Agreements to Repurchase		94,526			89,815
Other Borrowed Funds		189,660			132,452
Total Borrowed Funds		284,186			222,267
Other Liabilities		21,363			23,565
Subordinated Debentures		36,083			36,083
Total Liabilities		1,561,642			1,488,732
Total Stockholders’ Equity		121,718			111,550
Total Liabilities & Stockholders’ Equity	$	1,683,360		$	1,600,282
Total Average Earning Assets — QTD	$	1,611,937		$	1,453,529
Total Average Earning Assets — YTD	$	1,556,527		$	1,479,349

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

	December 31,			December 31,
	2008			2007
Performance Measures:
Earnings per average share, basic, quarter	$	0.51		$	0.43
Earnings per average share, diluted, quarter	$	0.51		$	0.43
Earnings per average share, basic, year	$	1.63		$	1.42
Earnings per average share, diluted, year	$	1.63		$	1.42
Return on average assets, year		0.54	%		0.49	%
Return on average stockholders’ equity, year		7.43	%		7.05	%
Net interest margin (taxable equivalent), quarter		3.16	%		2.79	%
Net interest margin (taxable equivalent), year		3.00	%		2.65	%
Efficiency ratio, year		70.6	%		77.5	%
Book value per share	$	21.76		$	21.43
Tangible book value per share	$	21.04		$	20.64
Tangible capital / tangible assets		6.48	%		6.83	%
Common Share Data:
Average shares outstanding, basic, quarter		5,539,043			5,543,804
Average shares outstanding, basic, year		5,541,983			5,542,461
Average shares outstanding, diluted, quarter		5,539,092			5,547,234
Average shares outstanding, diluted, year		5,543,702			5,546,707
Shares outstanding Class A		3,511,307			3,516,704
Shares outstanding Class B		2,027,100			2,027,100
Total shares outstanding at period end		5,538,407			5,543,804
Assets Quality and Other Data:
Allowance for loan losses / loans		1.33	%		1.33	%
Nonaccrual loans	$	3,661		$	1,312
Nonperforming assets	$	3,661		$	1,765
Loans 90 days past due and still accruing	$	89		$	122
Net charge-offs (recoveries), year	$	2,939		$	1,580
Leverage ratio		9.05	%		9.56	%
Tier 1 risk weighted capital ratio		15.30	%		16.46	%
Total risk weighted capital ratio		16.38	%		17.51	%
Total risk weighted assets	$	1,026,429		$	914,129