Century Bancorp (CNBKA) 8-K Century Bancorp, Inc. Announces Increased Earnings for Q1 2018, Up

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 Q1 2018, UP

SIGNIFICANTLY, 26.5%; ASSETS AT $4.8 BB; REGULAR DIVIDEND DECLARED

Medford, MA, April 10, 2018 —Century Bancorp, Inc. (NASDAQ:CNBKA) (www.centurybank.com) (“the Company”) today announced net income of $7,709,000 for the quarter ended March 31, 2018, or $1.38 per Class A share diluted, an increase of 26.5% compared to net income of $6,096,000, or $1.09 per Class A share diluted, for the same period a year ago. Total assets decreased 0.2% from $4.79 billion at December 31, 2017 to $4.78 billion at March 31, 2018.

Net interest income totaled $22.5 million for the quarter ended March 31, 2018 compared to $20.5 million for the same period in 2017. The 9.8% increase in net interest income for the period is primarily due to an increase in average earning assets and an increase in the net interest margin. The net interest margin increased from 2.16% on a fully taxable equivalent basis in 2017 to 2.19% for the same period in 2018. This was primarily the result of an increase in rates on earning assets. The average balances of earning assets increased by 1.8% combined with a similar increase in average deposits. Also, interest expense increased 44.9% primarily as a result of an increase in rates on deposit balances.

The Company’s effective tax rate increased from 2.3% for the first quarter of 2017 to 6.1% for the same period in 2018, primarily as a result of an increase in taxable income offset, somewhat, by a decrease in the federal tax rate from 34% to 21% as a result of the Tax Cuts and Jobs Act.

At March 31, 2018, total equity was $268.2 million compared to $260.3 million at December 31, 2017. The Company’s equity increased primarily as a result of earnings, offset somewhat by dividends paid.

The Company’s leverage ratio stood at 6.77% at March 31, 2018, compared to 6.70% at December 31, 2017. The increase in the leverage ratio was due to an increase in stockholders’ equity, offset somewhat by an increase in quarterly average assets. Book value as of March 31, 2018 was $48.17 per share compared to $46.75 at December 31, 2017.

The Company’s allowance for loan losses was $26.7 million or 1.22% of loans outstanding at March 31, 2018, compared to $26.3 million or 1.21% of loans outstanding at December 31, 2017, and $24.8 million or 1.22% of loans outstanding at March 31, 2017. The ratio of the allowance for loan losses to loans outstanding has remained relatively stable.Non-performing assets totaled $1.4 million at March 31, 2018, compared to $1.7 million at December 31, 2017 and $810,000 at March 31, 2017.

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, 2018 to stockholders of record on May 1, 2018.

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)

Assets	March 31, 2018		December 31, 2017
Cash and Due From Banks	$	64,544	$	77,199
Federal Funds Sold and Interest-bearing Deposits In Other Banks		186,125		279,231
Securities Available-for-Sale (AFS)		372,601		397,475
Securities Held-to-Maturity		1,817,633		1,701,233
Federal Home Loan Bank of Boston stock, at cost		20,050		21,779
Loans:
Commercial & Industrial		758,621		763,807
Municipal		104,044		106,599
Construction & Land Development		17,583		18,931
Commercial Real Estate		726,440		732,491
Residential Real Estate		300,941		287,731
Consumer and Other		19,339		19,040
Home Equity		260,179		247,345
Total Loans		2,187,147		2,175,944
Less: Allowance for Loan Losses		26,695		26,255
Net Loans		2,160,452		2,149,689
Bank Premises and Equipment, net		23,220		23,527
Accrued Interest Receivable		10,844		11,179
Goodwill		2,714		2,714
Other Assets		118,499		121,546
Total Assets	$	4,776,682	$	4,785,572
Liabilities
Demand Deposits	$	715,032	$	736,020
Interest Bearing Deposits:
Savings and NOW Deposits		1,409,157		1,367,358
Money Market Accounts		1,195,785		1,188,228
Time Deposits		615,822		625,361
Total Interest Bearing Deposits		3,220,764		3,180,947
Total Deposits		3,935,796		3,916,967
Borrowed Funds:
Securities Sold Under Agreements to Repurchase		141,560		158,990
Other Borrowed Funds		317,054		347,778
Total Borrowed Funds		458,614		506,768
Other Liabilities		77,989		65,457
Subordinated Debentures		36,083		36,083
Total Liabilities		4,508,482		4,525,275
Total Stockholders’ Equity		268,200		260,297
Total Liabilities & Stockholders’ Equity	$	4,776,682	$	4,785,572

Century Bancorp, Inc. and Subsidiaries

Consolidated Comparative Statements of Income (unaudited)

For the Quarter ended March 31, 2018 and 2017

(in thousands)

	Quarter ended March 31,
	2018		2017
Interest Income:
Loans	$	18,267	$	15,100
SecuritiesHeld-to-Maturity		10,288		9,535
SecuritiesAvailable-for-Sale		1,992		1,611
Federal Funds Sold and Interest-bearing Deposits In Other Banks		883		393
Total Interest Income		31,430		26,639
Interest Expense:
Savings and NOW Deposits		2,223		1,227
Money Market Accounts		2,453		1,274
Time Deposits		2,363		1,651
Securities Sold Under Agreements to Repurchase		181		103
Other Borrowed Funds and Subordinated Debentures		1,742		1,928
Total Interest Expense		8,962		6,183
Net Interest Income		22,468		20,456
Provision For Loan Losses		450		400
Net Interest Income After
Provision for Loan Losses		22,018		20,056
Other Operating Income
Service Charges on Deposit Accounts		2,067		2,016
Lockbox Fees		791		771
Net Gain on Sales of Loans		—		101
Net Gain on Sales of Securities		197		—
Other Income		1,138		1,021
Total Other Operating Income		4,193		3,909
Operating Expenses
Salaries and Employee Benefits		11,225		10,865
Occupancy		1,637		1,741
Equipment		794		706
FDIC Assessment		383		438
Other		3,962		3,975
Total Operating Expenses		18,001		17,725
Income Before Income Taxes		8,210		6,240
Income Tax Expense		501		144
Net Income	$	7,709	$	6,096

Century Bancorp, Inc. and Subsidiaries

ConsolidatedYear-to-Date Average Comparative Statements of Condition (unaudited)

(in thousands)

Assets	March 31, 2018			March 31, 2017
Cash and Due From Banks	$	72,612		$	75,497
Federal Funds Sold and Interest-Bearing Deposits in Other Banks		230,194			204,527
SecuritiesAvailable-For-Sale (AFS)		406,087			533,486
SecuritiesHeld-to-Maturity (HTM)		1,741,492			1,751,435
Total Loans		2,175,170			1,984,700
Less: Allowance for Loan Losses		26,546			24,580
Net Loans		2,148,624			1,960,120
Unrealized (Loss) Gain on Securities AFS and HTM Transfers		(4,586	)		(7,751	)
Bank Premises and Equipment		23,430			23,569
Accrued Interest Receivable		10,731			10,015
Goodwill		2,714			2,714
Other Assets		123,550			116,347
Total Assets	$	4,754,848		$	4,669,959
Liabilities
Demand Deposits	$	706,959		$	675,941
Interest Bearing Deposits:
Savings and NOW Deposits		1,494,919			1,453,299
Money Market Accounts		1,180,436			1,216,690
Time Deposits		604,814			501,857
Total Interest Bearing Deposits		3,280,169			3,171,846
Total Deposits		3,987,128			3,847,787
Borrowed Funds:
Securities Sold Under Agreements to Repurchase		160,223			200,457
Other Borrowed Funds		238,260			283,650
Total Borrowed Funds		398,483			484,107
Other Liabilities		69,218			58,663
Subordinated Debentures		36,083			36,083
Total Liabilities		4,490,912			4,426,640
Total Stockholders’ Equity		263,936			243,319
Total Liabilities & Stockholders’ Equity	$	4,754,848		$	4,669,959
Total Average Earning Assets—YTD	$	4,552,943		$	4,474,148

Century Bancorp, Inc. and Subsidiaries

\Consolidated Selected Key Financial Information (unaudited)

(in thousands, except share data)

	March 31, 2018			March 31, 2017
Performance Measures:
Earnings per average Class A share, diluted, quarter	$	1.38		$	1.09
Return on average assets, quarter		0.66	%		0.53	%
Return on average stockholders’ equity, quarter		11.85	%		10.16	%
Net interest margin (taxable equivalent), quarter		2.19	%		2.16	%
Efficiency ratio, quarter —Non-GAAP (1)		62.6	%		64.0	%
Book value per share	$	48.17		$	44.24
Tangible book value per share —Non-GAAP (1)	$	47.68		$	43.75
Capital / assets		5.61	%		5.38	%
Tangible capital / tangible assets —Non-GAAP (1)		5.56	%		5.33	%
Common Share Data:
Average Class A shares outstanding, diluted, quarter		5,567,909			5,567,909
Shares outstanding Class A		3,608,029			3,600,729
Shares outstanding Class B		1,959,880			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		1.22	%		1.22	%
Nonaccrual loans	$	1,386		$	810
Nonperforming assets	$	1,386		$	810
Loans 90 days past due and still accruing	$	—		$	—
Accruing troubled debt restructures	$	5,415		$	3,492
Net charge-offs (recoveries), quarter	$	10		$	(21	)
Leverage ratio		6.77	%		6.12	%
Common equity tier 1 risk weighted capital ratio		10.79	%		10.06	%
Tier 1 risk weighted capital ratio		12.10	%		11.27	%
Total risk weighted capital ratio		13.10	%		12.25	%
Total risk weighted assets	$	2,660,535		$	2,532,933
(1)Non-GAAP Financial Measures are reconciled in the following tables:
Calculation of Efficiency ratio
Total operating expenses (numerator)	$	18,001		$	17,725
Net interest income	$	22,468		$	20,456
Total other operating income		4,193			3,909
Tax equivalent adjustment		2,077			3,336
Total income (denominator)	$	28,738		$	27,701
Efficiency ratio, year —Non-GAAP		62.6	%		64.0	%
Calculation of tangible book value per share
Total stockholders’ equity	$	268,200		$	246,328
Less: goodwill		2,714			2,714
Tangible stockholders’ equity (numerator)	$	265,486		$	243,614
Total shares outstanding at period end (denominator)		5,567,909			5,567,909
Tangible book value per share —Non-GAAP	$	47.68		$	43.75
Book value per share — GAAP	$	48.17		$	44.24
Calculation of tangible capital / tangible assets
Total stockholders’ equity	$	268,200		$	246,328
Less: goodwill		2,714			2,714
Tangible stockholders’ equity (numerator)	$	265,486		$	243,614
Total assets	$	4,776,682		$	4,577,385
Less: goodwill		2,714			2,714
Tangible assets (denominator)	$	4,773,968		$	4,574,671
Tangible capital / tangible assets —Non-GAAP		5.56	%		5.33	%
Capital / assets — GAAP		5.61	%		5.38	%