8-K

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of Report:  July 10, 2007

Century Bancorp, Inc.

(Exact name of registrant as specified in its charter)

Massachusetts (State or other jurisdiction of incorporation)	0-15752 (Commission File No.)	04-2498617 (IRS Employer Identification No.)
400 Mystic Avenue Medford, MA (Address of principal executive offices)		02155 (Zip Code)

(781) 391-4000
(Registrant’s telephone number,
including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

TABLE OF CONTENTS

	Item 2.02     Results of Operations and Financial Condition
	Item 9.01     Financial Statements and Exhibits
SIGNATURES
EX-99.1 Press Release dated July 10, 2007.

Item 2.02     Results of Operations and Financial Condition

     The following information is furnished under Item 2.02 — “Results of Operations and Financial Condition” and such information, including the exhibits attached hereto, shall not be deemed “filed” for any purpose, including for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section. The information in this Current Report on Form 8-K shall not be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act regardless of any general incorporation language in such filing.

     On July 10, 2007, Century Bancorp, Inc. issued a press release, a copy of which is attached hereto as Exhibit 99.1 and incorporated herein by reference, announcing its earnings for the second quarter ended June 30, 2007 and the declaration of a regular quarterly dividend on Century Bancorp Inc.’s Class A and Class B common stock.

Item 9.01     Financial Statements and Exhibits

     (c)     Exhibits

          99.1     Century Bancorp, Inc. press release dated July 10, 2007.

SIGNATURES

     Pursuant to the requirement of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

CENTURY BANCORP, INC.
 

/s/ William P. Hornby  

William P. Hornby, CPA 

Treasurer 

Dated: July 10, 2007

EX-99.1

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 10, 2007—Century Bancorp, Inc. (NASDAQ:CNBKA) (www.century-bank.com) (“the Company”) today announced net income of $1,623,000, or $0.29 per share diluted, for the second quarter ended June 30, 2007, compared to net income of $973,000, or $0.18 per share diluted, for the second quarter ended June 30, 2006. Excluded from income for the second quarter of 2006 was approximately $170,000 of Federal Home Loan Bank (FHLB) stock dividend income that was not recorded because the FHLB did not declare a dividend. The dividend was declared during the third quarter of 2006. For the first six months of 2007, net income totaled $2,627,000, or $0.47 per share diluted, compared to net income of $2,403,000, or $0.43 per share diluted, for the same period a year ago. Included in income for 2006 is a pre-tax gain of $600,000 from the sale of the Company’s rights to future royalty payments for a portion of its Merchant Credit Card customer base.

Net interest income totaled $19.0 million for the first six months of 2007 as compared to $18.4 million for the same period in 2006. The 3.2% increase in net interest income for the period is due to an increase of twelve basis points in the net interest margin, from 2.40% on a fully taxable equivalent basis in 2006 to 2.52% on the same basis for 2007. Included in interest income for the six months ended June 30, 2007 is $418,000 of prepayment fees collected on loans as compared to $85,000 for the comparable 2006 period, an increase of $333,000. Prepayment fees amounted to $287,000 and $37,000 for the three months ended June 30, 2007 and 2006, respectively.

At June 30, 2007, total equity was $109.7 million compared to $106.8 million at December 31, 2006. The Company’s equity was increased by earnings less dividends paid as well as an improvement of $1.1 million in the net unrealized loss on the Company’s available-for-sale portfolio. The Company’s leverage ratio stood at 9.12% at June 30, 2007, compared to 8.68% at

-more-

June 30, 2006. Book value as of June 30, 2007 was $19.78 per share compared to $18.66 at June 30, 2006.

The Company’s allowance for loan losses was $9.3 million or 1.29% of loans outstanding at the end of the second quarter of 2007, compared to $9.7 million, or 1.32% of loans outstanding at December 31, 2006 and $9.6 million or 1.28% at June 30, 2006. Non-performing assets totaled $1.5 million at June 30, 2007, compared to $135,000 at December 31, 2006 and $289,000 at June 30, 2006.

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, 2007 to stockholders of record on August 1, 2007.

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,
Assets	2007		2006
Cash and Due From Banks	$	44,366	$	60,465
Federal Funds Sold and Interest-bearing Deposits In Other Banks		63,115		99,203
Securities Available-For-Sale (AFS)		367,022		415,481
Securities Held-to-Maturity		256,741		265,712
Loans:
Commercial & Industrial		126,445		117,497
Construction & Land Development		55,082		49,709
Revenue Bonds		5,317		3,340
Commercial Real Estate		292,926		323,700
Residential Real Estate		168,317		167,946
Consumer and Other		14,065		11,201
Home Equity		60,081		63,380
Total Loans		722,233		736,773
Less: Allowance for Loan Losses		9,314		9,713
Net Loans		712,919		727,060
Bank Premises and Equipment		23,224		22,955
Accrued Interest Receivable		6,959		7,372
Goodwill		2,714		2,714
Core Deposit Intangible		1,865		2,059
Other Assets		44,035		41,269
Total Assets	$	1,522,960	$	1,644,290
Liabilities
Demand Deposits	$	269,394	$	283,449
Interest Bearing Deposits:
Savings and NOW Deposits		280,663		274,231
Money Market Accounts		270,590		301,188
Time Deposits		313,407		410,097
Total Interest Bearing		864,660		985,516
Total Deposits		1,134,054		1,268,965
Borrowed Funds:
Securities Sold Under Agreements to Repurchase		85,590		86,960
Other Borrowed Funds and Subordinated Debentures		135,183		123,023
Total Borrowed Funds		220,773		209,983
Other Liabilities		22,400		22,441
Subordinated Debentures		36,083		36,083
Total Liabilities		1,413,310		1,537,472
Total Stockholders’ Equity		109,650		106,818
Total Liabilities & Stockholders’ Equity	$	1,522,960	$	1,644,290

Century Bancorp, Inc. and Subsidiaries
Consolidated Comparative Statements of Income (unaudited)
For the Quarter and Year-to-date periods ending
June 30, 2007 and 2006 (in thousands)

	Quarter				Year-to-date
	2007		2006		2007		2006
Interest Income:
Loans	$	13,132	$	12,912	$	26,103	$	24,847
Securities Held-to-Maturity		2,350		2,555		4,746		5,168
Securities Available-for-Sale		3,451		4,215		7,003		8,824
Federal Funds Sold and Interest-bearing Deposits In Other Banks		1,904		51		3,731		81
Total Interest Income		20,837		19,733		41,583		38,920
Interest Expense:
Savings and NOW Deposits		1,590		1,159		3,182		2,082
Money Market Accounts		2,436		2,361		4,822		4,139
Time Deposits		4,047		3,731		8,657		6,912
Securities Sold Under Agreements to Repurchase		771		785		1,544		1,200
Other Borrowed Funds and Subordinated Debentures		2,204		2,620		4,387		6,183
Total Interest Expense		11,048		10,656		22,592		20,516
Net Interest Income		9,789		9,077		18,991		18,404
Provision For Loan Losses		300		225		600		375
Net Interest Income After Provision for Loan Losses		9,489		8,852		18,391		18,029
Other Operating Income
Service Charges on Deposit Accounts		1,863		1,702		3,649		3,218
Lockbox Fees		823		762		1,557		1,437
Brokerage Commissions		37		30		61		78
Other Income		369		279		674		1,167
Total Other Operating Income		3,092		2,773		5,941		5,900
Operating Expenses
Salaries and Employee Benefits		6,287		6,001		12,500		12,249
Occupancy		918		921		1,914		1,966
Equipment		773		785		1,506		1,520
Other		2,269		2,418		4,629		4,555
Total Operating Expenses		10,247		10,125		20,549		20,290
Income Before Income Taxes		2,334		1,500		3,783		3,639
Income Tax Expense		711		527		1,156		1,236
Net Income	$	1,623	$	973	$	2,627	$	2,403

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

	June 30,			June 30,
Assets	2007			2006
Cash and Due From Banks	$	58,447		$	57,413
Federal Funds Sold and Interest-Bearing Deposits in Other Banks		142,886			3,616
Securities Available-For-Sale (AFS)		380,716			526,206
Securities Held-to-Maturity		261,474			281,173
Total Loans		719,945			717,833
Less: Allowance for Loan Losses		9,793			9,453
Net Loans		710,152			708,380
Unrealized Loss an Securities Available-For-Sale		(6,668	)		(14,640	)
Bank Premises and Equipment		23,162			24,653
Accrued Interest Receivable		6,977			7,575
Goodwill		2,714			2,714
Core Deposit Intangible		1,970			2,359
Other Assets		42,555			40,572
Total Assets	$	1,624,385		$	1,640,021
Liabilities
Demand Deposits	$	278,371		$	281,730
Interest Bearing Deposits:
Savings and NOW Deposits		308,314			284,437
Money Market Accounts		297,938			317,309
Time Deposits		367,396			334,034
Total Interest Bearing		973,648			935,780
Total Deposits		1,252,019			1,217,510
Borrowed Funds:
Securities Sold Under Agreements to Repurchase		83,599			65,288
Other Borrowed Funds		120,731			198,365
Total Borrowed Funds		204,330			263,653
Other Liabilities		23,338			19,069
Subordinated Debentures		36,083			36,083
Total Liabilities		1,515,770			1,536,315
Total Stockholders’ Equity		108,615			103,706
Total Liabilities & Stockholders’ Equity	$	1,624,385		$	1,640,021
Total Average Earning Assets — QTD	$	1,483,675		$	1,530,621
Total Average Earning Assets — YTD	$	1,505,021		$	1,528,828

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

	June 30,			June 30,
	2007			2006
Performance Measures:
Earnings per average share, basic, quarter	$	0.29		$	0.18
Earnings per average share, diluted, quarter	$	0.29		$	0.18
Earnings per average share, basic, year-to-date	$	0.47		$	0.43
Earnings per average share, diluted, year-to-date	$	0.47		$	0.43
Return on average assets, year-to-date		0.33	%		0.30	%
Return on average stockholders’ equity, year-to-date		4.88	%		4.67	%
Net interest margin (taxable equivalent), quarter		2.64	%		2.38	%
Net interest margin (taxable equivalent), year-to-date		2.52	%		2.40	%
Efficiency ratio, year-to-date		82.3	%		83.5	%
Book value per share	$	19.78		$	18.66
Tangible book value per share	$	18.96		$	17.76
Tangible capital / tangible assets		6.92	%		5.95	%
Common Share Data:
Average shares outstanding, basic, quarter		5,542,304			5,541,088
Average shares outstanding, basic, year-to-date		5,541,768			5,540,807
Average shares outstanding, diluted, quarter		5,548,105			5,550,784
Average shares outstanding, diluted, year-to-date		5,549,651			5,551,746
Shares outstanding Class A		3,513,704			3,483,638
Shares outstanding Class B		2,028,600			2,057,450
Total shares outstanding at period end		5,542,304			5,541,088
Assets Quality and Other Data:
Allowance for loan losses / loans		1.29	%		1.28	%
Nonaccrual loans	$	1,454		$	289
Nonperforming assets	$	1,454		$	289
Loans 90 days past due and still accruing	$	0		$	4,163
Net charge-offs (recoveries), year-to-date	$	999		$	164
Leverage ratio		9.12	%		8.68	%
Tier 1 risk weighted capital ratio		16.50	%		15.31	%
Total risk weighted capital ratio		17.55	%		16.34	%
Total risk weighted assets	$	885,536		$	933,270