Century Bancorp (CNBKA) 8-K Asset Growth to Record Size of $4.2 BB; Regular Dividend Declared

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 INCREASED EARNINGS FOR Q2 2016, UP 5.3%;

ASSET GROWTH TO RECORD SIZE OF $4.2 BB; REGULAR DIVIDEND DECLARED

Medford, MA, July 12, 2016—Century Bancorp, Inc. (NASDAQ:CNBKA) (www.centurybank.com) (“the Company”) today announced net income of $11,549,000 for the six months ended June 30, 2016, or $2.07 per Class A share diluted, an increase of 6.1% compared to net income of $10,884,000, or $1.95 per Class A share diluted, for the same period a year ago. Total assets increased 6.2% from $3.9 billion at December 31, 2015 to $4.2 billion at June 30, 2016. For the quarter ended June 30, 2016, net income totaled $6,241,000 or $1.12 per Class A share diluted, an increase of 5.3% compared to net income of $5,925,000, or $1.06 per Class A share diluted, for the same period a year ago.

Net interest income totaled $36.1 million for the six months ended June 30, 2016 compared to $34.1 million for the same period in 2015. The 5.8% increase in net interest income for the period is primarily due to an increase in average earning assets. The net interest margin was stable at 2.16% on a fully taxable equivalent basis for the first six months of 2016 compared to the same period in 2015. This was primarily the result of relatively stable earning asset yields and rates paid on interest-bearing liabilities. The average balances of earning assets increased by 7.2% combined with a similar increase in average deposits. Also, interest expense increased 12.1% as a result of an increase in deposit balances.

The provision for loan losses increased by $600,000 from $200,000 for the six months ended June 30, 2015 to $800,000 for the same period in 2016, primarily as a result of an increase in loan balances. The Company’s effective tax rate decreased from 4.0% in 2015 to 0.7% in 2016 primarily as a result of an increase in tax-exempt income.

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At June 30, 2016, total equity was $227.2 million compared to $214.5 million at December 31, 2015. 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 primarily as a result of a decrease in unrealized losses on securities transferred from available-for-sale to held-to-maturity and amortization of the pension liability. This was offset, somewhat, by an increase in unrealized losses on securities available-for-sale.

The Company’s leverage ratio stood at 6.63% at June 30, 2016, compared to 6.79% at December 31, 2015. 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 June 30, 2016 was $40.80 per share compared to $38.53 at December 31, 2015.

The Company’s allowance for loan losses was $23.9 million or 1.32% of loans outstanding at June 30, 2016, compared to $23.1 million or 1.33% of loans outstanding at December 31, 2015 and $22.2 million or 1.44% of loans outstanding at June 30, 2015. The change in the ratio of the allowance for loan losses to loans outstanding, when compared to June 30, 2015, was primarily due to changes in portfolio composition. Non-performing assets totaled $1.5 million at June 30, 2016, compared to $2.3 million at December 31, 2015 and $4.1 million at June 30, 2015.

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, 2016 to stockholders of record on August 1, 2016.

The Company, through its subsidiary bank, Century Bank and Trust Company, a state chartered full service commercial bank, operating twenty-seven 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,
Assets	2016		2015
Cash and Due From Banks	$	66,913	$	52,877
Federal Funds Sold and Interest-bearing Deposits In Other Banks		20,093		167,847
Short-term Investments		3,241		3,233
Securities Available-for-Sale (AFS)		562,933		404,623
Securities Held-to-Maturity		1,573,829		1,438,903
Federal Home Loan Bank of Boston stock, at cost		26,086		28,807
Loans Held-for-Sale		12,403		—
Loans:
Commercial & Industrial		493,033		452,235
Municipal		134,386		85,685
Construction & Land Development		31,178		27,421
Commercial Real Estate		728,658		721,506
Residential Real Estate		219,494		255,346
Consumer and Other		11,339		11,323
Home Equity		183,816		178,020
Total Loans		1,801,904		1,731,536
Less: Allowance for Loan Losses		23,863		23,075
Net Loans		1,778,041		1,708,461
Bank Premises and Equipment, net		23,525		24,106
Accrued Interest Receivable		8,714		8,002
Goodwill		2,714		2,714
Other Assets		111,820		107,868
Total Assets	$	4,190,312	$	3,947,441
Liabilities
Demand Deposits	$	610,756	$	541,955
Interest Bearing Deposits:
Savings and NOW Deposits		1,272,221		1,070,585
Money Market Accounts		875,428		989,094
Time Deposits		460,527		473,426
Total Interest Bearing Deposits		2,608,176		2,533,105
Total Deposits		3,218,932		3,075,060
Borrowed Funds:
Securities Sold Under Agreements to Repurchase		217,765		197,850
Other Borrowed Funds		431,000		368,000
Total Borrowed Funds		648,765		565,850
Other Liabilities		59,346		55,904
Subordinated Debentures		36,083		36,083
Total Liabilities		3,963,126		3,732,897
Total Stockholders’ Equity		227,186		214,544
Total Liabilities & Stockholders’ Equity	$	4,190,312	$	3,947,441

Century Bancorp, Inc. and Subsidiaries

Consolidated Comparative Statements of Income (unaudited)

For the Quarter and Six months ended June 30, 2016 and 2015

(in thousands)

	Quarter ended June 30,				Six months ended June 30,
	2016		2015		2016		2015
Interest Income:
Loans	$	14,162	$	12,470	$	28,335	$	24,546
Securities Held-to-Maturity		8,128		9,371		15,940		17,539
Securities Available-for-Sale		1,144		737		2,107		1,469
Federal Funds Sold and Interest-bearing Deposits In Other Banks		308		97		623		293
Total Interest Income		23,742		22,675		47,005		43,847
Interest Expense:
Savings and NOW Deposits		938		692		1,776		1,320
Money Market Accounts		781		734		1,576		1,516
Time Deposits		1,394		1,207		2,752		2,363
Securities Sold Under Agreements to Repurchase		126		128		241		242
Other Borrowed Funds and Subordinated Debentures		2,247		2,200		4,554		4,285
Total Interest Expense		5,486		4,961		10,899		9,726
Net Interest Income		18,256		17,714		36,106		34,121
Provision For Loan Losses		350		—		800		200
Net Interest Income After
Provision for Loan Losses		17,906		17,714		35,306		33,921
Other Operating Income
Service Charges on Deposit Accounts		1,962		1,934		3,899		3,847
Lockbox Fees		883		888		1,672		1,676
Net Gain on Sales of Loans		798		418		798		517
Other Income		1,000		970		1,928		1,675
Total Other Operating Income		4,643		4,210		8,297		7,715
Operating Expenses
Salaries and Employee Benefits		10,040		9,480		19,816		18,614
Occupancy		1,551		1,517		3,130		3,122
Equipment		679		659		1,315		1,252
FDIC Assessment		592		545		1,160		1,048
Other		3,426		3,565		6,549		6,268
Total Operating Expenses		16,288		15,766		31,970		30,304
Income Before Income Taxes		6,261		6,158		11,633		11,332
Income Tax (Benefit) Expense		20		233		84		448
Net Income	$	6,241	$	5,925	$	11,549	$	10,884

Century Bancorp, Inc. and Subsidiaries

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

(in thousands)

	June 30,			June 30,
Assets	2016			2015
Cash and Due From Banks	$	69,805		$	69,139
Federal Funds Sold and Interest-Bearing Deposits in Other Banks		242,004			221,727
Securities Available-For-Sale (AFS)		443,409			464,679
Securities Held-to-Maturity (HTM)		1,477,252			1,637,599
Total Loans		1,789,952			1,363,532
Less: Allowance for Loan Losses		23,524			22,482
Net Loans		1,766,428			1,341,050
Unrealized (Loss)Gain on Securities AFS and HTM Transfers		(10,324	)		(15,774	)
Bank Premises and Equipment		23,892			24,312
Accrued Interest Receivable		8,124			7,262
Goodwill		2,714			2,714
Other Assets		111,848			99,258
Total Assets	$	4,135,152		$	3,851,966
Liabilities
Demand Deposits	$	573,303		$	500,241
Interest Bearing Deposits:
Savings and NOW Deposits		1,258,231			1,142,838
Money Market Accounts		983,562			973,696
Time Deposits		448,890			383,832
Total Interest Bearing Deposits		2,690,683			2,500,366
Total Deposits		3,263,986			3,000,607
Borrowed Funds:
Securities Sold Under Agreements to Repurchase		227,888			256,883
Other Borrowed Funds		329,731			309,601
Total Borrowed Funds		557,619			566,484
Other Liabilities		56,817			50,804
Subordinated Debentures		36,083			36,083
Total Liabilities		3,914,505			3,653,978
Total Stockholders’ Equity		220,647			197,988
Total Liabilities & Stockholders’ Equity	$	4,135,152		$	3,851,966
Total Average Earning Assets - QTD	$	4,023,022		$	3,738,382
Total Average Earning Assets - YTD	$	3,952,617		$	3,687,537

Century Bancorp, Inc. and Subsidiaries

Consolidated Selected Key Financial Information (unaudited)

(in thousands, except share data)

	June 30,			June 30,
	2016			2015
Performance Measures:
Earnings per average Class A share, diluted, quarter	$	1.12		$	1.06
Earnings per average Class A share, diluted, year-to-date	$	2.07		$	1.95
Return on average assets, year-to-date		0.56	%		0.57	%
Return on average stockholders’ equity, year-to-date		10.53	%		11.09	%
Net interest margin (taxable equivalent), quarter		2.15	%		2.19	%
Net interest margin (taxable equivalent), year-to-date		2.16	%		2.16	%
Efficiency ratio, year-to-date - Non-GAAP (1)		62.9	%		64.3	%
Book value per share	$	40.80		$	36.71
Tangible book value per share - Non-GAAP (1)	$	40.32		$	36.22
Capital / assets		5.42	%		5.22	%
Tangible capital / tangible assets - Non-GAAP (1)		5.36	%		5.16	%
Common Share Data:
Average Class A shares outstanding, diluted, quarter & year-to-date		5,567,909			5,567,909
Shares outstanding Class A		3,600,729			3,600,729
Shares outstanding Class B		1,967,180			1,967,180
Total shares outstanding at period end		5,567,909			5,567,909
Asset Quality and Other Data:
Allowance for loan losses / loans		1.32	%		1.44	%
Nonaccrual loans	$	1,486		$	2,186
Nonperforming assets	$	1,486		$	4,101
Loans 90 days past due and still accruing	$	—		$	—
Accruing troubled debt restructures	$	4,146		$	3,024
Net (recoveries)charge-offs, year-to-date	$	(72	)	$	274
Leverage ratio		6.63	%*		6.58	%*
Common equity tier 1 risk weighted capital ratio		10.59	%*		10.24	%*
Tier 1 risk weighted capital ratio		12.11	%*		11.85	%*
Total risk weighted capital ratio		13.14	%*		12.87	%*
Total risk weighted assets	$	2,304,563	*	$	2,174,045	*
* computed utilizing recently implemented Basel III regulatory capital framework.
(1) Non-GAAP Financial Measures are reconciled in the following tables:
Calculation of Efficiency ratio:
Total operating expenses (numerator)	$	31,970		$	30,304
Net interest income	$	36,106		$	34,121
Total other operating income		8,297			7,715
Tax equivalent adjustment		6,387			5,288
Total income (denominator)	$	50,790		$	47,124
Efficiency ratio, year - Non-GAAP		62.9	%		64.3	%
Calculation of tangible book value per share:
Total stockholders’ equity	$	227,186		$	204,373
Less: goodwill		2,714			2,714
Tangible stockholders’ equity (numerator)	$	224,472		$	201,659
Total shares outstanding at period end (denominator)		5,567,909			5,567,909
Tangible book value per share - Non-GAAP	$	40.32		$	36.22
Book value per share - GAAP	$	40.80		$	36.71
Calculation of tangible capital / tangible assets:
Total stockholders’ equity	$	227,186		$	204,373
Less: goodwill		2,714			2,714
Tangible stockholders’ equity (numerator)	$	224,472		$	201,659
Total assets	$	4,190,312		$	3,913,818
Less: goodwill		2,714			2,714
Tangible assets (denominator)	$	4,187,598		$	3,911,104
Tangible capital / tangible assets - Non-GAAP		5.36	%		5.16	%
Capital / assets - GAAP		5.42	%		5.22	%