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: October 9, 2007

Century Bancorp, Inc.

(Exact name of registrant as specified in its charter)

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

(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 October 9, 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 October 9, 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 third quarter ended September 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 October 9, 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: October 9, 2007

EX-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 THIRD QUARTER RESULTS AND
DECLARES QUARTERLY DIVIDEND

Medford, MA, October 9, 2007—Century Bancorp, Inc. (NASDAQ:CNBKA) (www.century-bank.com) (“the Company”) today announced net income of $2,864,000, or $0.52 per share diluted, for the third quarter ended September 30, 2007, compared to net income of $1,197,000, or $0.22 per share diluted, for the third quarter ended September 30, 2006. Included in income for the third quarter of 2007 is the previously announced $1,321,000 pre-tax gain on the sale of the building which houses the Company’s Medford Square branch. Included in income for the third quarter of 2006 was approximately $354,000 of Federal Home Loan Bank (FHLB) stock dividend income. This dividend was for the second and third quarter of 2006 because the FHLB did not declare a dividend in the second quarter of 2006. For the first nine months of 2007, net income totaled $5,491,000, or $0.99 per share diluted, compared to net income of $3,600,000, or $0.65 per share diluted, for the same period a year ago. Included in income for the nine months ended September 30, 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 $29.1 million for the first nine months of 2007 as compared to $27.8 million for the same period in 2006. The 4.8% increase in net interest income for the period is due to an increase of eighteen basis points in the net interest margin, from 2.43% on a fully taxable equivalent basis in 2006 to 2.61% on the same basis for 2007. Included in interest income for the nine months ended September 30, 2007 is $432,000 of prepayment fees collected on loans as compared to $95,000 for the comparable 2006 period, an increase of $337,000. Prepayment fees amounted to $14,000 and $10,000 for the three months ended September 30, 2007 and 2006, respectively.

-more-

At September 30, 2007, total equity was $114.2 million compared to $106.8 million at December 31, 2006. The Company’s equity increased as a result of earnings less dividends paid as well as an improvement of $3.3 million in the net unrealized loss on the Company’s available-for-sale portfolio. The Company’s leverage ratio stood at 9.32% at September 30, 2007, compared to 8.78% at September 30, 2006. Book value as of September 30, 2007 was $20.60 per share compared to $19.37 at September 30, 2006.

The Company’s allowance for loan losses was $9.6 million or 1.30% of loans outstanding at the end of the third quarter of 2007, compared to $9.7 million, or 1.32% of loans outstanding at December 31, 2006 and $9.8 million or 1.36% at September 30, 2006. Non-performing assets totaled $1.0 million at September 30, 2007, compared to $135,000 at December 31, 2006 and $296,000 at September 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 November 15, 2007 to stockholders of record on November 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)

	September 30,		December 31,
	2007		2006
Assets
Cash and Due From Banks	$	41,617	$	60,465
Federal Funds Sold and Interest-bearing Deposits In Other Banks		98,119		99,203
Securities Available-For-Sale (AFS)		354,324		415,481
Securities Held-to-Maturity		242,332		265,712
Loans:
Commercial & Industrial		122,273		117,497
Construction & Land Development		60,744		49,709
Commercial Real Estate		300,105		323,700
Residential Real Estate		172,809		167,946
Consumer and Other		22,606		14,541
Home Equity		58,455		63,380
Total Loans		736,992		736,773
Less: Allowance for Loan Losses		9,591		9,713
Net Loans		727,401		727,060
Bank Premises and Equipment		22,478		22,955
Accrued Interest Receivable		7,686		7,372
Goodwill		2,714		2,714
Core Deposit Intangible		1,768		2,059
Other Assets		44,354		41,269
Total Assets	$	1,542,793	$	1,644,290
Liabilities
Demand Deposits	$	263,617	$	283,449
Interest Bearing Deposits:
Savings and NOW Deposits		289,019		274,231
Money Market Accounts		250,538		301,188
Time Deposits		306,921		410,097
Total Interest Bearing		846,478		985,516
Total Deposits		1,110,095		1,268,965
Borrowed Funds:
Securities Sold Under Agreements to Repurchase		93,850		86,960
Other Borrowed Funds		166,126		123,023
Total Borrowed Funds		259,976		209,983
Other Liabilities		22,438		22,441
Subordinated Debentures		36,083		36,083
Total Liabilities		1,428,592		1,537,472
Total Stockholders’ Equity		114,201		106,818
Total Liabilities & Stockholders’ Equity	$	1,542,793	$	1,644,290

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

	Quarter				Year-to-date
	2007		2006		2007		2006
Interest Income:
Loans	$	13,637	$	13,290	$	39,740	$	38,137
Securities Held-to-Maturity		2,299		2,497		7,045		7,665
Securities Available-for-Sale		3,555		4,390		10,558		13,214
Federal Funds Sold and Interest-bearing Deposits In Other Banks		1,453		364		5,184		445
Total Interest Income		20,944		20,541		62,527		59,461
Interest Expense:
Savings and NOW Deposits		1,711		1,344		4,893		3,426
Money Market Accounts		2,230		2,711		7,052		6,850
Time Deposits		3,606		4,157		12,263		11,069
Securities Sold Under Agreements to Repurchase		884		795		2,428		1,995
Other Borrowed Funds and Subordinated Debentures		2,404		2,163		6,791		8,346
Total Interest Expense		10,835		11,170		33,427		31,686
Net Interest Income		10,109		9,371		29,100		27,775
Provision For Loan Losses		300		225		900		600
Net Interest Income After Provision for Loan Losses		9,809		9,146		28,200		27,175
Other Operating Income
Service Charges on Deposit Accounts		1,981		1,747		5,630		4,965
Lockbox Fees		705		658		2,262		2,095
Gain on Sale of Building		1,321		—		1,321		—
Other Income		409		324		1,144		1,569
Total Other Operating Income		4,416		2,729		10,357		8,629
Operating Expenses
Salaries and Employee Benefits		6,081		5,843		18,581		18,092
Occupancy		945		1,020		2,859		2,986
Equipment		759		785		2,265		2,305
Other		2,155		2,408		6,784		6,963
Total Operating Expenses		9,940		10,056		30,489		30,346
Income Before Income Taxes		4,285		1,819		8,068		5,458
Income Tax Expense		1,421		622		2,577		1,858
Net Income	$	2,864	$	1,197	$	5,491	$	3,600

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

	September 30,			September 30,
	2007			2006
Assets
Cash and Due From Banks	$	57,507		$	58,390
Federal Funds Sold and Interest-Bearing Deposits in Other Banks		132,407			11,662
Securities Available-For-Sale (AFS)		372,659			511,909
Securities Held-to-Maturity		258,586			278,497
Total Loans		724,398			722,978
Less: Allowance for Loan Losses		9,723			9,527
Net Loans		714,675			713,451
Unrealized Loss on Securities AFS		(5,638	)		(13,795	)
Bank Premises and Equipment		23,076			24,318
Accrued Interest Receivable		7,111			7,573
Goodwill		2,714			2,714
Core Deposit Intangible		1,918			2,308
Other Assets		42,855			40,934
Total Assets	$	1,607,870		$	1,637,961
Liabilities
Demand Deposits	$	278,451		$	283,089
Interest Bearing Deposits:
Savings and NOW Deposits		310,406			288,970
Money Market Accounts		288,192			323,155
Time Deposits		347,909			342,385
Total Interest Bearing		946,507			954,510
Total Deposits		1,224,958			1,237,599
Borrowed Funds:
Securities Sold Under Agreements to Repurchase		87,582			70,004
Other Borrowed Funds		125,911			170,452
Total Borrowed Funds		213,493			240,456
Other Liabilities		23,378			19,372
Subordinated Debentures		36,083			36,083
Total Liabilities		1,497,912			1,533,510
Total Stockholders’ Equity		109,958			104,451
Total Liabilities & Stockholders’ Equity	$	1,607,870		$	1,637,961
Total Average Earning Assets — QTD	$	1,454,663		$	1,517,605
Total Average Earning Assets — YTD	$	1,488,050		$	1,525,046

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

	September 30,			September 30,
	2007			2006
Performance Measures:
Earnings per average share, basic, quarter	$	0.52		$	0.22
Earnings per average share, diluted, quarter	$	0.52		$	0.22
Earnings per average share, basic, year-to-date	$	0.99		$	0.65
Earnings per average share, diluted, year-to-date	$	0.99		$	0.65
Return on average assets, year-to-date		0.46	%		0.29	%
Return on average stockholders’ equity, year-to-date		6.68	%		4.61	%
Net interest margin (taxable equivalent), quarter		2.77	%		2.48	%
Net interest margin (taxable equivalent), year-to-date		2.61	%		2.43	%
Efficiency ratio, year-to-date		79.8	%		83.3	%
Book value per share	$	20.60		$	19.37
Tangible book value per share	$	19.79		$	18.49
Tangible capital / tangible assets		7.13	%		6.36	%
Common Share Data:
Average shares outstanding, basic, quarter		5,542,483			5,541,088
Average shares outstanding, basic, year-to-date		5,542,009			5,540,902
Average shares outstanding, diluted, quarter		5,545,915			5,548,842
Average shares outstanding, diluted, year-to-date		5,547,170			5,550,697
Shares outstanding Class A		3,515,204			3,498,638
Shares outstanding Class B		2,028,600			2,042,450
Total shares outstanding at period end		5,543,804			5,541,088
Assets Quality and Other Data:
Allowance for loan losses / loans		1.30	%		1.36	%
Nonaccrual loans	$	531		$	296
Nonperforming assets	$	984		$	296
Loans 90 days past due and still accruing	$	846		$	79
Net charge-offs (recoveries), year-to-date	$	1,022		$	156
Leverage ratio		9.32	%		8.78	%
Tier 1 risk weighted capital ratio		16.36	%		16.01	%
Total risk weighted capital ratio		17.43	%		17.10	%
Total risk weighted assets	$	896,558		$	897,313