Century Bancorp (CNBKA) 8-K Century Bancorp, Inc. Announces Earnings for Q1 2015, Up 0.5%; Asset

Exhibit 99.1

NEWS RELEASE

FOR IMMEDIATE RELEASE

Contact:	William P. Hornby, CPA
	whornby@centurybank.com
Phone:	781-393-4630
Fax:	781-393-4071

CENTURY BANCORP, INC. ANNOUNCES EARNINGS FOR Q1 2015, UP 0.5%; ASSET

GROWTH TO RECORD SIZE OF $3.8 BB; REGULAR DIVIDEND DECLARED

Medford, MA, April 14, 2015—Century Bancorp, Inc. (NASDAQ:CNBKA) (www.centurybank.com) (“the Company”) today announced net income of $4,959,000 for the quarter ended March 31, 2015, or $0.89 per Class A share diluted, an increase of 0.5% compared to net income of $4,932,000, or $0.89 per Class A share diluted, for the same period a year ago. Total assets increased 4.1% from $3.6 billion at December 31, 2014 to $3.8 billion at March 31, 2015. Earnings are up slightly compared to the same period last year; however, the harsh winter caused increased expenses and lower revenues during the first quarter of 2015 compared to the same period a year ago.

Net interest income totaled $16.4 million for the quarter ended March 31, 2015 compared to $16.5 million for the same period in 2014. The 0.6% decrease in net interest income for the period is primarily due to a decrease in the net interest margin. The net interest margin decreased from 2.27% on a fully taxable equivalent basis in 2014 to 2.12% on the same basis for 2015. This was primarily the result of a decrease in rates on earning assets. Also, interest expense increased slightly as a result of an increase in deposit balances and there was a 7.8% increase in the average balances of earning assets, combined with a similar increase in average deposits.

The provision for loan losses decreased by $400,000 from $600,000 for the quarter ended March 31, 2014 to $200,000 for the same period in 2015, primarily as a result of stable loan balances and low charge-off levels. The Company’s effective tax rate decreased from 5.6% in 2014 to 4.2% in 2015 primarily as a result of an increase in tax-exempt income.

At March 31, 2015, total equity was $197.8 million compared to $192.5 million at December 31, 2014. The Company’s equity increased primarily as a result of earnings and a decrease in other comprehensive loss, net of taxes, offset somewhat by dividends paid. Other comprehensive loss, net of taxes, decreased as a result of a decrease in unrealized losses on securities available-for-sale and securities transferred from available-for-sale to held-to-maturity and amortization of the pension liability. During the third quarter of 2013, $987.0 million of securities available-for-sale with unrealized losses of $25.3 million were transferred to securities held-to-maturity. This was done in response to rising interest rates.

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The Company’s leverage ratio stood at 6.60% at March 31, 2015, compared to 6.91% at December 31, 2014. The decrease in the leverage ratio was due to an increase in quarterly average assets, offset somewhat by an increase in stockholders’ equity. Book value as of March 31, 2015 was $35.53 per share compared to $34.57 at December 31, 2014.

The Company’s allowance for loan losses was $22.5 million or 1.68% of loans outstanding at March 31, 2015, compared to $22.3 million or 1.68% of loans outstanding at December 31, 2014 and $21.3 million or 1.68% of loans outstanding at March 31, 2014. The increase in the allowance for loan losses was due to the increase in the size of the loan portfolio. Non-performing assets totaled $4.3 million at March 31, 2015, compared to $4.1 million at December 31, 2014 and $1.6 million at March 31, 2014.

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 May 15, 2015 to stockholders of record on May 1, 2015.

The Company, through its subsidiary bank, Century Bank and Trust Company, a state chartered full service commercial bank, operating twenty-six 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)

	March 31, 2015		December 31, 2014
Assets
Cash and Due From Banks	$	59,680	$	43,367
Federal Funds Sold and Interest-bearing Deposits In Other Banks		5,945		261,991
Short-term Investments		2,139		2,131
Securities Available-For-Sale (AFS)		455,931		448,390
Securities Held-to-Maturity		1,773,607		1,406,792
Federal Home Loan Bank of Boston stock, at cost		24,916		24,916
Loans:
Commercial & Industrial		157,637		149,732
Municipal		41,406		41,850
Construction & Land Development		25,347		22,744
Commercial Real Estate		691,811		696,272
Residential Real Estate		258,558		257,305
Consumer and Other		10,508		12,188
Home Equity		156,063		151,275
Total Loans		1,341,330		1,331,366
Less: Allowance for Loan Losses		22,529		22,318
Net Loans		1,318,801		1,309,048
Bank Premises and Equipment, net		24,179		24,182
Accrued Interest Receivable		6,913		6,241
Goodwill		2,714		2,714
Other Assets		98,498		94,264
Total Assets	$	3,773,323	$	3,624,036
Liabilities
Demand Deposits	$	508,820	$	484,928
Interest Bearing Deposits:
Savings and NOW Deposits		1,063,551		978,619
Money Market Accounts		960,668		890,899
Time Deposits		382,456		383,145
Total Interest Bearing Deposits		2,406,675		2,252,663
Total Deposits		2,915,495		2,737,591
Borrowed Funds:
Securities Sold Under Agreements to Repurchase		260,390		212,360
Other Borrowed Funds		307,642		395,500
Total Borrowed Funds		568,032		607,860
Other Liabilities		55,885		50,002
Subordinated Debentures		36,083		36,083
Total Liabilities		3,575,495		3,431,536
Total Stockholders’ Equity		197,828		192,500
Total Liabilities & Stockholders’ Equity	$	3,773,323	$	3,624,036

Century Bancorp, Inc. and Subsidiaries

Consolidated Comparative Statements of Income (unaudited)

For the Quarter ended March 31, 2015 and 2014

(in thousands)

	Quarter ended March 31,
	2015		2014
Interest Income:
Loans	$	12,076	$	12,449
Securities Held-to-Maturity		8,168		7,780
Securities Available-for-Sale		732		820
Federal Funds Sold and Interest-bearing Deposits In Other Banks		196		82
Total Interest Income		21,172		21,131
Interest Expense:
Savings and NOW Deposits		628		609
Money Market Accounts		782		639
Time Deposits		1,156		1,085
Securities Sold Under Agreements to Repurchase		114		101
Other Borrowed Funds and Subordinated Debentures		2,085		2,183
Total Interest Expense		4,765		4,617
Net Interest Income		16,407		16,514
Provision For Loan Losses		200		600
Net Interest Income After
Provision for Loan Losses		16,207		15,914
Other Operating Income
Service Charges on Deposit Accounts		1,913		2,034
Lockbox Fees		788		777
Net Gain on Sales of Loans		99		7
Other Income		705		652
Total Other Operating Income		3,505		3,470
Operating Expenses
Salaries and Employee Benefits		9,134		8,875
Occupancy		1,605		1,442
Equipment		593		572
FDIC Assessment		503		480
Other		2,703		2,790
Total Operating Expenses		14,538		14,159
Income Before Income Taxes		5,174		5,225
Income Tax Expense		215		293
Net Income	$	4,959	$	4,932

Century Bancorp, Inc. and Subsidiaries

Consolidated Year-to-Date Average Comparative Statements of Condition (unaudited)

(in thousands)

	March 31, 2015			March 31, 2014
Assets
Cash and Due From Banks	$	71,131		$	65,827
Federal Funds Sold and Interest-Bearing Deposits in Other Banks		300,638			121,093
Securities Available-For-Sale (AFS)		466,673			494,242
Securities Held-to-Maturity (HTM)		1,530,383			1,492,839
Total Loans		1,338,433			1,265,049
Less: Allowance for Loan Losses		22,511			21,193
Net Loans		1,315,922			1,243,856
Unrealized (Loss) Gain on Securities AFS and HTM Transfers		(16,432	)		(23,077	)
Bank Premises and Equipment		24,244			23,336
Accrued Interest Receivable		7,071			7,195
Goodwill		2,714			2,714
Other Assets		96,015			86,313
Total Assets	$	3,798,359		$	3,514,338
Liabilities
Demand Deposits	$	490,020		$	468,623
Interest Bearing Deposits:
Savings and NOW Deposits		1,096,744			1,072,313
Money Market Accounts		999,901			904,036
Time Deposits		377,433			376,793
Total Interest Bearing Deposits		2,474,078			2,353,142
Total Deposits		2,964,098			2,821,765
Borrowed Funds:
Securities Sold Under Agreements to Repurchase		248,508			226,927
Other Borrowed Funds		303,024			216,212
Total Borrowed Funds		551,532			443,139
Other Liabilities		51,639			33,610
Subordinated Debentures		36,083			36,083
Total Liabilities		3,603,352			3,334,597
Total Stockholders’ Equity		195,007			179,741
Total Liabilities & Stockholders’ Equity	$	3,798,359		$	3,514,338
Total Average Earning Assets - YTD	$	3,636,127		$	3,373,223

Century Bancorp, Inc. and Subsidiaries

Consolidated Selected Key Financial Information (unaudited)

(in thousands, except share data)

	March 31, 2015			March 31, 2014
Performance Measures:
Earnings per average Class A share, diluted, quarter	$	0.89		$	0.89
Return on average assets, year-to-date		0.53	%		0.57	%
Return on average stockholders’ equity, year-to-date		10.31	%		11.13	%
Net interest margin (taxable equivalent), quarter		2.12	%		2.27	%
Efficiency ratio, year-to-date		64.6	%		63.3	%
Book value per share	$	35.53		$	32.77
Tangible book value per share	$	35.04		$	32.28
Tangible capital / tangible assets		5.17	%		5.13	%
Common Share Data:
Average Class A shares outstanding, diluted, quarter		5,567,909			5,558,177
Shares outstanding Class A		3,600,729			3,582,479
Shares outstanding Class B		1,967,180			1,974,180
Total shares outstanding at period end		5,567,909			5,556,659
Asset Quality and Other Data:
Allowance for loan losses / loans		1.68	%		1.68	%
Nonaccrual loans	$	4,260		$	1,560
Nonperforming assets	$	4,260		$	1,560
Loans 90 days past due and still accruing	$	34		$	—
Accruing troubled debt restructures	$	3,238		$	5,811
Net (recoveries) charge-offs, year-to-date	$	(11	)	$	282
Leverage ratio		6.60	%*		6.57	%
Common equity tier 1 risk weighted capital ratio		11.00	%*		n/a
Tier 1 risk weighted capital ratio		12.78	%*		13.84	%
Total risk weighted capital ratio		13.93	%*		15.09	%
Total risk weighted assets	$	1,965,046	*	$	1,672,745

* computed utilizing recently implemented Basel III regulatory capital framework.