10-K

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-K

(Mark One)
þ	ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the fiscal year ended December 31, 2013
¨	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the transition period from                to

Commission file number 0-15752

CENTURY BANCORP, INC.

(Exact name of registrant as specified in its charter)

COMMONWEALTH OF MASSACHUSETTS	04-2498617
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification number)
400 MYSTIC AVENUE, MEDFORD, MA	02155
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number including area code:

(781) 391-4000

Securities registered pursuant to Section 12(b) of the Act:

Class A Common Stock, $1.00 par value	Nasdaq Global Market
(Title of class)	(Name of Exchange)

Indicate by check mark whether the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.    Yes  ¨    No  þ

Indicate by check mark whether the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.    Yes  ¨    No  þ

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  þ    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulations S-T (232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  þ    No  ¨

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K    ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer ¨	Accelerated filer    þ	Non-accelerated filer    ¨	Smaller reporting company    ¨
		(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).    Yes  ¨    No  þ

State the aggregate market value of the registrant’s voting and nonvoting stock held by nonaffiliates, computed using the closing price as reported on Nasdaq as of June 28, 2013 was $125,231,085.

Indicate the number of shares outstanding of each of the registrant’s classes of common stock as of February 28, 2014:

Class A Common Stock, $1.00 par value 3,581,429 Shares

Class B Common Stock, $1.00 par value 1,975,180 Shares

DOCUMENTS INCORPORATED BY REFERENCE

List hereunder the following documents if incorporated by reference and the Part of the Form 10-K (e.g., Part I, Part II, etc.) into which the document is incorporated: (1) Any annual report to security holders; (2) Any proxy or information statement; and (3) Any prospectus filed pursuant to Rule 424(b) or (c) under the Securities Act of 1933. The listed documents should be clearly described for identification purposes (e.g., annual report to security holders for fiscal year ended December 24, 1980).

(1) Portions of the Registrant’s Annual Report to Stockholders for the fiscal year ended December 31, 2013 are incorporated into Part II, Items 5-8 of this Form 10-K.

CENTURY BANCORP INC.

FORM 10-K

TABLE OF CONTENTS

		Page
	PART I
ITEM 1	BUSINESS		1-5
ITEM 1A	RISK FACTORS		5-6
ITEM 1B	UNRESOLVED STAFF COMMENTS		6
ITEM 2	PROPERTIES		6
ITEM 3	LEGAL PROCEEDINGS		7
ITEM 4	MINE SAFETY DISCLOSURES		7
	PART II
ITEM 5	MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES		8-9
ITEM 6	SELECTED FINANCIAL DATA		9
ITEM 7	MANAGEMENT’S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION		9
ITEM 7A	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK		9
ITEM 8	FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA		9
ITEM 9	CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE		10
ITEM 9A	CONTROLS AND PROCEDURES		10
ITEM 9B	OTHER INFORMATION		10
	PART III
ITEM 10	DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE		91-95
ITEM 11	EXECUTIVE COMPENSATION		96-106
ITEM 12	SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS		107-108
ITEM 13	CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE		108
ITEM 14	PRINCIPAL ACCOUNTING FEES AND SERVICES		108-109
	PART IV
ITEM 15	EXHIBITS AND FINANCIAL STATEMENT SCHEDULES		109-111
SIGNATURES			112

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PART I

ITEM 1.    BUSINESS

The Company

Century Bancorp, Inc. (together with its bank subsidiary, unless the context otherwise requires, the “Company”) is a Massachusetts state-chartered bank holding company headquartered in Medford, Massachusetts. The Company is a Massachusetts corporation formed in 1972 and has one banking subsidiary: Century Bank and Trust Company formed in 1969 (the “Bank”). At December 31, 2013, the Company had total assets of $3.4 billion. Currently, the Company operates 26 banking offices in 19 cities and towns in Massachusetts, ranging from Braintree in the south to Andover in the north. The Bank’s customers consist primarily of small and medium-sized businesses and retail customers in these communities and surrounding areas, as well as local governments and institutions throughout Massachusetts.

The Company’s results of operations are largely dependent on net interest income, which is the difference between the interest earned on loans and securities and the interest paid on deposits and borrowings. The results of operations are also affected by the level of income/fees from loans and deposits, as well as operating expenses, the provision for loan losses, the impact of federal and state income taxes and the relative levels of interest rates and economic activity.

The Company offers a wide range of services to commercial enterprises, state and local governments and agencies, nonprofit organizations, and individuals. It emphasizes service to small and medium-sized businesses and retail customers in its market area. The Company makes commercial loans, real estate and construction loans, and consumer loans and accepts savings, time and demand deposits. In addition, the Company offers to its corporate and institutional customers automated lockbox collection services, cash management services and account reconciliation services, and it actively promotes the marketing of these services to the municipal market. Also, the Company provides full-service securities brokerage services through a program called Investment Services at Century Bank, which is supported by LPL Financial, a full-service third-party securities brokerage business.

The Company is also a provider of financial services, including cash management, transaction processing and short-term financing, to municipalities in Massachusetts, New Hampshire and Rhode Island. The Company has deposit relationships with 193 (55%) of the 351 cities and towns in Massachusetts.

Availability of Company Filings

Under the Securities Exchange Act of 1934, Sections 13 and 15(d), periodic and current reports must be filed with the Securities and Exchange Commission (the “SEC”). The public may read and copy any materials filed with the SEC at the SEC’s Public Reference Room at 100 F Street, NE, Washington, DC 20549. The public may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0030. The Company electronically files with the SEC its periodic and current reports, as well as other filings it makes with the SEC from time to time. The SEC maintains an Internet site that contains reports and other information regarding issuers, including the Company, that file electronically with the SEC, at www.sec.gov, in which all forms filed electronically may be accessed. Additionally, our annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K and additional shareholder information are available free of charge on the Company’s website: www.centurybank.com.

Employees

As of December 31, 2013, the Company had 344 full-time and 84 part-time employees. The Company’s employees are not represented by any collective bargaining unit. The Company believes that its employee relations are good.

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Financial Services Modernization

On November 12, 1999, President Clinton signed into law The Gramm-Leach-Bliley Act (“Gramm-Leach”) which significantly altered banking laws in the United States. Gramm Leach enables combinations among banks, securities firms and insurance companies beginning March 11, 2000. As a result of Gramm Leach, many of the depression-era laws that restricted these affiliations and other activities that may be engaged in by banks and bank holding companies were repealed. Under Gramm-Leach, bank holding companies are permitted to offer their customers virtually any type of financial service that is financial in nature or incidental thereto, including banking, securities underwriting, insurance (both underwriting and agency) and merchant banking.

In order to engage in these financial activities, a bank holding company must qualify and register with the Federal Reserve Board as a “financial holding company” by demonstrating that each of its bank subsidiaries is “well capitalized,” “well managed,” and has at least a “satisfactory” rating under the Community Reinvestment Act of 1977 (the “CRA”). The Company has not elected to become a financial holding company under Gramm-Leach.

These financial activities authorized by Gramm-Leach may also be engaged in by a “financial subsidiary” of a national or state bank, except for insurance or annuity underwriting, insurance company portfolio investments, real estate investment and development and merchant banking, which must be conducted in a financial holding company. In order for the new financial activities to be engaged in by a financial subsidiary of a national or state bank, Gramm-Leach requires each of the parent bank (and any bank affiliates) to be “well capitalized” and “well managed;” the aggregate consolidated assets of all of that bank’s financial subsidiaries may not exceed the lesser of 45% of its consolidated total assets or $50 billion; the bank must have at least a satisfactory CRA rating; and, if the bank is one of the 100 largest banks, it must meet certain financial rating or other comparable requirements. The Company does not currently conduct activities through a financial subsidiary.

Gramm-Leach establishes a system of functional regulation, under which the federal banking agencies will regulate the banking activities of financial holding companies and banks’ financial subsidiaries, the SEC will regulate their securities activities, and state insurance regulators will regulate their insurance activities. Gramm-Leach also provides new protections against the transfer and use by financial institutions of consumers’ nonpublic, personal information.

Holding Company Regulation

The Company is a bank holding company as defined by the Bank Holding Company Act of 1956, as amended (the “Holding Company Act”), and is registered as such with the Board of Governors of the Federal Reserve Bank (the “FRB”), which is responsible for administration of the Holding Company Act. Although the Company may meet the qualifications for electing to become a financial holding company under Gramm-Leach, the Company has elected to retain its pre-Gramm-Leach status for the present time under the Holding Company Act. As required by the Holding Company Act, the Company files with the FRB an annual report regarding its financial condition and operations, management and intercompany relationships of the Company and the Bank. It is also subject to examination by the FRB and must obtain FRB approval before (i) acquiring direct or indirect ownership or control of more than 5% of the voting stock of any bank, unless it already owns or controls a majority of the voting stock of that bank, (ii) acquiring all or substantially all of the assets of a bank, except through a subsidiary which is a bank, or (iii) merging or consolidating with any other bank holding company. A bank holding company must also give the FRB prior written notice before purchasing or redeeming its equity securities, if the gross consideration for the purchase or redemption, when aggregated with the net consideration paid by the company for all such purchases or redemptions during the preceding 12 months, is equal to 10% or more of the company’s consolidated net worth.

The Holding Company Act prohibits a bank holding company, with certain exceptions, from (i) acquiring direct or indirect ownership or control of more than 5% of any class of voting shares of any company which is not a bank or a bank holding company, or (ii) engaging in any activity other than managing or controlling banks, or furnishing services to or performing services for its subsidiaries. A bank holding company may own, however, shares of a company engaged in activities which the FRB has determined are so closely related to banking or managing or controlling banks as to be a proper incident thereto.

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The Company and its subsidiaries are examined by federal and state regulators. The FRB has regulatory authority over holding company activities and performed a review of the Company and its subsidiaries as of June 2012.

USA PATRIOT Act

Under Title III of the USA PATRIOT Act, also known as the “International Money Laundering Abatement and Anti-Terrorism Act of 2001”, all financial institutions are required in general to identify their customers, adopt formal and comprehensive anti-money laundering programs, scrutinize or prohibit altogether certain transactions of special concern, and be prepared to respond to inquiries from U.S. law enforcement agencies concerning their customers and their transactions. Additional information-sharing among financial institutions, regulators, and law enforcement authorities is encouraged by the presence of an exemption from the privacy provisions of the Gramm-Leach Act for financial institutions that comply with this provision and the authorization of the Secretary of the Treasury to adopt rules to further encourage cooperation and information-sharing. The effectiveness of a financial institution in combating money laundering activities is a factor to be considered in any application submitted by the financial institution under the Holding Company Act or Bank Merger Act.

Sarbanes-Oxley Act

The Sarbanes-Oxley Act, signed into law July 30, 2002, addresses, among other issues, corporate governance, auditor independence and accounting standards, executive compensation, insider loans, whistleblower protection and enhanced and timely disclosure of corporate information. The SEC has adopted a substantial number of implementing rules and the Financial Industry Regulatory Authority (FINRA) has adopted corporate governance rules that have been approved by the SEC and are applicable to the Company. The changes are intended to allow stockholders to monitor more effectively the performance of companies and management. As directed by Section 302(a) of the Sarbanes-Oxley Act, the Company’s Chief Executive Officer and Chief Financial Officer are each required to certify that the Company’s quarterly and annual reports do not contain any untrue statement of a material fact. This requirement has several parts, including certification that these officers are responsible for establishing, maintaining and regularly evaluating the effectiveness of the Company’s disclosure controls and procedures and internal controls over financial reporting; that they have made certain disclosures to the Company’s auditors and the Board of Directors about the Company’s disclosure controls and procedures and internal control over financial reporting, and that they have included information in the Company’s quarterly and annual reports about their evaluation of the Company’s disclosure controls and procedures and internal control over financial reporting, and whether there have been significant changes in the Company’s internal disclosure controls and procedures or in other factors that could significantly affect such controls and procedures subsequent to the evaluation and whether there have been any significant changes in the Company’s internal control over financial reporting that have materially affected or reasonably likely to materially affect the Company’s internal control over financial reporting, and compliance with certain other disclosure objectives. Section 906 of the Sarbanes-Oxley Act requires an additional certification that each periodic report containing financial statements fully complies with the requirements of Section 13(a) and 15(d) of the Securities Exchange Act of 1934 and that the information in the report fairly presents, in all material respects, the financial conditions and results of operations of the Company.

Dodd-Frank Wall Street Reform and Consumer Protection Act

On July 21, 2010, the Dodd-Frank Wall Street Reform and Consumer Protection Act became law. The Act was intended to address many issues arising in the recent financial crisis and is exceedingly broad in scope affecting many aspects of bank and financial market regulation. The Act requires, or permits by implementing regulation, enhanced prudential standards for banks and bank holding companies inclusive of capital, leverage, liquidity, concentration and exposure measures. In addition, traditional bank regulatory principles such as restrictions on transactions with affiliates and insiders were enhanced. The Act also contains reforms of consumer mortgage lending practices and creates a Bureau of Consumer Financial Protection which is granted broad authority over consumer financial practices of banks and others. It is expected as the specific new or

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incremental requirements applicable to the company become effective that the costs and difficulties of remaining compliant with all such requirements will increase. The Act broadens the base for FDIC assessments to average consolidated assets less tangible equity of financial institutions and also permanently raises the current standard maximum FDIC deposit insurance amount to $250,000. The Act extended unlimited deposit insurance on non-interest bearing transaction accounts through December 31, 2012. In addition, the Act added a new Section 13 to the Holding Company Act, the so-called “Volcker Rule,” (the “Rule”) which generally restricts certain banking entities such as the Company and its subsidiaries or affiliates, from engaging in proprietary trading activities and owning equity in or sponsoring any private equity or hedge fund. The Rule became effective July 21, 2012. The final implementing regulations for the Rule were issued by various regulatory agencies in December, 2013, and under an extended conformance regulation, compliance must be achieved by July 21, 2015. Under the Rule, the Company may be restricted from engaging in proprietary trading, investing in third party hedge or private equity funds or sponsoring new funds unless it qualifies for an exemption from the rule. The Company has little involvement in prohibited proprietary trading or investment activities in covered funds and the Company does not expect that complying with the requirements of the Rule will have any material effect on the Company’s financial condition or results of operations.

Deposit Insurance Premiums

The Bank’s deposits have the benefit of FDIC insurance up to applicable limits. The FDIC’s Deposit Insurance Fund is funded by assessments on insured depository institutions, which depend on the risk category of an institution and the amount of assets that it holds. The FDIC may increase or decrease the assessment rate schedule on a semi-annual basis.

The Bank was also a participant in the FDIC’s Temporary Liquidity Guarantee Program.

On May 22, 2009, the FDIC announced a special assessment on insured institutions as part of its efforts to rebuild the Deposit Insurance Fund and help maintain public confidence in the banking system. The special assessment is five basis points of each FDIC-insured depository institution’s assets minus Tier 1 capital, as of June 30, 2009. The Company recorded a pre-tax charge of approximately $1.0 million in the second quarter of 2009 in connection with the special assessment.

On September 29, 2009, the FDIC adopted a Notice of Proposed Rulemaking (NPR) that would require insured institutions to prepay their estimated quarterly risk-based assessments for the fourth quarter of 2009 and for all of 2010, 2011 and 2012. The FDIC Board voted to adopt a uniform three-basis point increase in assessment rates effective on January 1, 2011, and extend the restoration period from seven to eight years. This rule was finalized on November 2, 2009. The Company’s quarterly risk-based deposit insurance assessments were paid from this amount until June 30, 2013. The Company received a refund of $2.4 million of prepaid FDIC assessments in June 2013.

In February 2011, the FDIC approved a rule to change the assessment base from adjusted domestic deposits to average consolidated total assets minus average tangible equity. The rule should keep the overall amount collected from the industry very close to the amount collected prior to the new calculation.

Risk-Based Capital Guidelines

Federal banking regulators have issued risk-based capital guidelines, which assign risk factors to asset categories and off-balance-sheet items. Also, the Basel Committee has issued capital standards entitled “Basel III: A global regulatory framework for more resilient banks and banking systems” (“Basel III”). The Federal Reserve Board has finalized its rule implementing the Basel III regulatory capital framework. The rule sets the Basel III minimum regulatory capital requirements for all organizations. It includes a new common equity Tier I ratio of 4.5 percent of risk-weighted assets, raises the minimum Tier I capital ratio from 4 percent to 6 percent of risk-weighted assets and would set a new conservation buffer of 2.5 percent of rick-weighted assets. The final rule will come into effect on January 1, 2015. Thereafter begins a phase-in period through January 1, 2019. The Company has analyzed the final rules; the implementation of the framework will not have a material impact on the Company’s financial condition or results of operations.

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Competition

The Company experiences substantial competition in attracting deposits and making loans from commercial banks, thrift institutions and other enterprises such as insurance companies and mutual funds. These competitors include several major commercial banks whose greater resources may afford them a competitive advantage by enabling them to maintain numerous branch offices and mount extensive advertising campaigns. A number of these competitors are not subject to the regulatory oversight that the Company is subject to, which increases these competitors’ flexibility.

Forward-Looking Statements

Certain statements contained herein are not based on historical facts and are “forward-looking statements” within the meaning of Section 21A of the Securities Exchange Act of 1934. Forward-looking statements, which are based on various assumptions (some of which are beyond the Company’s control), may be identified by reference to a future period or periods, or by the use of forward-looking terminology, such as “may,” “will,” “believe,” “expect,” “estimate,” “anticipate,” “continue” or similar terms or variations on those terms, or the negative of these terms. Actual results could differ materially from those set forth in forward-looking statements due to a variety of factors, including, but not limited to, those related to the economic environment, particularly in the market areas in which the Company operates, competitive products and pricing, fiscal and monetary policies of the U.S. Government, changes in government regulations affecting financial institutions, including regulatory fees and capital requirements, changes in prevailing interest rates, acquisitions and the integration of acquired businesses, credit risk management, asset/liability management, the financial and securities markets, and the availability of and costs associated with sources of liquidity.

The Company does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions which may be made to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.

ITEM 1A.     RISK FACTORS

The risk factors that may affect the Company’s performance and results of operations include the following:

(i) the Company’s business is dependent upon general economic conditions in Massachusetts. The national and local economies may adversely affect the Company’s performance and results of operations;

(ii) the Company’s earnings depend, to a great extent, upon the level of net interest income generated by the Company, and therefore the Company’s results of operations may be adversely affected by increases or decreases in interest rates or by the shape of the yield curve;

(iii) the banking business is highly competitive and the profitability of the Company depends upon the Company’s ability to attract loans and deposits in Massachusetts, southern New Hampshire, and Rhode Island, where the Company competes with a variety of traditional banking companies, some of which have vastly greater resources, and nontraditional institutions such as credit unions and finance companies;

(iv) at December 31, 2013, approximately 63.7% of the Company’s loan portfolio was comprised of commercial and commercial real estate loans, exposing the Company to the risks inherent in financings based upon analyses of credit risk, the value of underlying collateral, including real estate, and other more intangible factors, which are considered in making commercial loans;

(v) at December 31, 2013, approximately 32.9% of the Company’s loan portfolio was comprised of residential real estate loans, exposing the Company to the risks inherent in financings based upon analyses of credit risk and the value of underlying collateral. Accordingly, the Company’s profitability may be negatively impacted by errors in risk analyses, by loan defaults and the ability of certain borrowers to repay such loans may be adversely affected by any downturn in general economic conditions;

(vi) economic conditions and interest rate risk could adversely impact the fair value and the ultimate collectibility of the Company’s investments. Should an investment be deemed “other than temporarily impaired”, the Company would be required to writedown the carrying value of the investment through earnings. Such writedown(s) may have a material adverse effect on the Company’s financial condition and results of operations;

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(vii) writedown of goodwill and other identifiable intangible assets would negatively impact our financial condition and results of operations. At December 31, 2013, our goodwill and other identifiable intangible assets were approximately $2.7 million;

(viii) acts or threats of terrorism and actions taken by the United States or other governments as a result of such acts or threats, including possible military action, could further adversely affect business and economic conditions in the United States of America generally and in the Company’s markets, which could adversely affect the Company’s financial performance and that of the Company’s borrowers and on the financial markets and the price of the Company’s Class A common stock;

(ix) changes in the extensive laws, regulations and policies governing bank holding companies and their subsidiaries could alter the Company’s business environment or affect the Company’s operations;

(x) the potential need to adapt to industry changes in information technology systems, on which the Company is highly dependent to secure bank and customer financial information, could present operational issues, require significant capital spending or impact the Company’s reputation; and

(xi) the Governor of Massachusetts has proposed a tax plan that would modify existing income tax rules. The Governor’s plan is part of his budget recommendations for fiscal year 2015, and will subject security corporations to the same tax base and rate as regular business corporations. The proposed tax changes would take effect as of January 1, 2015. The Company is currently analyzing the financial impact of the proposed changes.

These factors, as well as general economic and market conditions in the United States of America, may materially and adversely affect the Company’s performance, results of operations and the market price of shares of the Company’s Class A common stock.

ITEM 1B.    UNRESOLVED STAFF COMMENTS

No written comments received by the Company from the SEC regarding the Company’s periodic or current reports remain unresolved.

ITEM 2.     PROPERTIES

The Company owns its main banking office, headquarters, and operations center in Medford, Massachusetts, which were expanded in 2004, and 11 of the 25 other facilities in which its branch offices are located. The remaining offices are occupied under leases expiring on various dates from 2014 to 2026. The Company believes that its banking offices are in good condition.

During July 2010, the Company entered into a lease agreement to open a branch located at Newton Centre in Newton, Massachusetts. The branch opened on June 20, 2011.

During September 2010, the Company entered into a lease agreement to open a branch located in Andover, Massachusetts. The branch opened on July 16, 2012.

During June 2012, the Company entered into a lease agreement to open a branch located in Wellesley, Massachusetts. The branch opened on November 26, 2012.

During July 2012, the Company received state regulatory approval to close a branch at Chestnut Hill in Newton, Massachusetts. The branch closed on September 21, 2012 and the accounts were temporarily moved to the Brookline, Massachusetts branch. During July 2012, the Company entered into a lease agreement and received regulatory approval to open a branch at a new location at Chestnut Hill in Newton, Massachusetts. The branch opened on November 7, 2013 and the majority of the accounts that were temporarily moved to the Brookline, Massachusetts branch were moved to the new branch at Chestnut Hill in Newton, Massachusetts.

During December 2013, the Company entered into a lease agreement to open a branch located in Woburn, Massachusetts. The branch is scheduled to open during the third quarter of 2014.

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ITEM 3. LEGAL PROCEEDINGS

The Company and its subsidiaries are parties to various claims and lawsuits arising in the course of their normal business activities. Although the ultimate outcome of these suits cannot be ascertained at this time, it is the opinion of management that none of these matters, even if it resolved adversely to the Company, will have a material adverse effect on the Company’s consolidated financial position.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

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PART II

ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

(a)  The Class A Common Stock of the Company is traded on the NASDAQ National Global Market under the symbol “CNBKA.” The price range of the Company’s Class A common stock since January 1, 2012 is shown on page 12. The Company’s Class B Common Stock is not traded on any national securities exchange or other public trading market.

	Issuer Purchases of Equity Securities
Period	Total Number of Shares Purchased		Weighted Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs		Maximum Number of Shares That May Yet be Purchased Under the Plans or Programs(1)
October 1 — October 31, 2013		—		—		—		300,000
November 1 — November 30, 2013		—		—		—		300,000
December 1 — December 31, 2013		—		—		—		300,000

(1) On July 9, 2013, the Company announced a reauthorization of the Class A common stock repurchase program to repurchase up to 300,000 shares. The Company placed no deadline on the repurchase program. There were no shares purchased other than through a publicly announced plan or program.

The shares of Class A Common Stock are generally not entitled to vote on any matter, including in the election of Company Directors, but, in limited circumstances, may be entitled to vote as a class on certain extraordinary transactions, including any merger or consolidation (other than one in which the Company is the surviving corporation or one which by law may be approved by the directors without any stockholder vote) or the sale, lease, or exchange of all or substantially all of the property and assets of the Company. Since the vote of a majority of the shares of the Company’s Class B Common Stock, voting as a separate class, is required to approve certain extraordinary corporate transactions, the holders of Class B Common Stock have the power to prevent any takeover of the Company not approved by them.

(b)  Approximate number of equity security holders as of December 31, 2013:

Title of Class	Approximate Number of Record Holders
Class A Common Stock		1,080
Class B Common Stock		61

(c)  Under the Company’s Articles of Organization, the holders of Class A Common Stock are entitled to receive dividends per share equal to at least 200% of dividends paid, if any, from time to time, on each share of Class B Common Stock.

The following table shows the dividends paid by the Company on the Class A and Class B Common Stock for the periods indicated.

	Dividends per Share
	Class A		Class B
2012
First quarter	$	.12	$	.06
Second quarter		.12		.06
Third quarter		.12		.06
Fourth quarter		.12		.06
2013
First quarter	$	.12	$	.06
Second quarter		.12		.06
Third quarter		.12		.06
Fourth quarter		.12		.06

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The Company’s ability to pay dividends on its shares depends generally on dividends it receives from the Bank. Both Massachusetts and federal law limit the payment of dividends by the Bank to the Company. Under FDIC regulations and applicable Massachusetts law, the dollar amount of dividends and any other capital distributions that the Bank may make depends upon its capital position and recent net income. Generally, so long as the Bank remains adequately capitalized, it may potentially make capital distributions during any calendar year equal to up to 100% of net income for the year to date plus retained net income for the two preceding years. However, if the Bank’s capital becomes impaired or the FDIC or Commissioner otherwise determines that the Bank should conserve capital, the Bank may be prohibited or otherwise limited from paying any dividends or making any other capital distributions.

The Federal Reserve Board also has authority to prohibit dividends by bank holding companies such as the Company, if their actions constitute unsafe or unsound practices. Prior to the recent financial crisis, the Federal Reserve Board issued a policy statement and supervisory guidance on the payment of cash dividends by bank holding companies, which expresses the Federal Reserve Board’s view that a bank holding company should pay cash dividends only to the extent that, (1) the company’s net income for the past year is sufficient to cover the cash dividends, (2) the rate of earnings retention is consistent with the company’s capital needs, asset quality, and overall financial condition, and (3) the minimum regulatory capital adequacy ratios are met. It is also the Federal Reserve Board’s policy that bank holding companies should not maintain dividend levels that undermine their ability to serve as a source of strength to their banking subsidiaries. It is expected that the Federal Reserve Board will be more rather than less restrictive for the foreseeable future about dividend practices.

(d) The following schedule provides information with respect to the Company’s equity compensation plans under which shares of Class A Common Stock are authorized for issuance as of December 31, 2013:

	Equity Compensation Plan Information
Plan Category	Number of Shares to be Issued Upon Exercise of Outstanding Options (a)		Weighted-Average Exercise Price of Outstanding Options (b)		Number of Shares Remaining Available for Future Issuance Under Equity Compensation Plans (Excluding Shares Reflected in Column (a)) (c)
Equity compensation plans approved by security holders		20,375	$	31.82		224,884
Equity compensation plans not approved by security holders		—		—		—
Total		20,375	$	31.82		224,884

(e)  The performance graph information required herein is shown on page 12.

ITEM 6. SELECTED FINANCIAL DATA

The information required herein is shown on pages 11 and 12.

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION

The information required herein is shown on pages 13 through 36.

ITEM 7a. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The information required herein is shown on page 33.

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

The information required herein is shown on pages 37 through 87.

9

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

None.

ITEM 9A. CONTROLS AND PROCEDURES

The Company’s principal executive officer and principal financial officer have evaluated the Company’s disclosure controls and procedures as of December 31, 2013. Based on this evaluation, the principal executive officer and principal financial officer have concluded that the Company’s disclosure controls and procedures are effective. The Company’s disclosure controls and procedures also effectively ensure that information required to be disclosed in the Company’s filings and submissions with the Securities and Exchange Commission under the Securities Exchange Act of 1934 is accumulated and reported to Company management (including the principal executive officer and principal financial officer) and is recorded, processed, summarized and reported within the time periods specified by the Securities and Exchange Commission. In addition, the Company has reviewed its internal control over financial reporting and there have been no changes that occurred during the fourth fiscal quarter that have materially affected, or are reasonably likely to materially affect its internal control over financial reporting or in other factors that could significantly affect its internal control over financial reporting. Management’s report on internal control over financial reporting is shown on page 90. The audit report of the registered public accounting firm is shown on page 89.

ITEM 9B. OTHER INFORMATION

None.

10

Financial Highlights

	2013			2012			2011			2010			2009
	(dollars in thousands, except share data)
FOR THE YEAR
Interest income	$	79,765		$	81,494		$	78,065		$	76,583		$	79,600
Interest expense		18,805			19,540			22,766			24,817			31,723
Net interest income		60,960			61,954			55,299			51,766			47,877
Provision for loan losses		2,710			4,150			4,550			5,575			6,625
Net interest income after provision for loan losses		58,250			57,804			50,749			46,191			41,252
Other operating income		18,615			15,865			16,240			15,999			16,470
Operating expenses		55,812			53,238			48,742			47,372			46,379
Income before income taxes		21,053			20,431			18,247			14,818			11,343
Provision for income taxes		1,007			1,392			1,554			1,244			1,183
Net income	$	20,046		$	19,039		$	16,693		$	13,574		$	10,160
Average shares outstanding Class A, basic		3,575,683			3,557,693			3,543,233			3,521,179			3,509,931
Average shares outstanding Class B, basic		1,980,855			1,990,474			1,997,411			2,012,327			2,022,318
Average shares outstanding Class A, diluted		5,557,693			5,549,191			5,541,794			5,535,742			5,534,340
Average shares outstanding Class B, diluted		1,980,855			1,990,474			1,997,411			2,012,327			2,022,318
Total shares outstanding at year-end		5,556,584			5,554,959			5,542,697			5,540,247			5,530,297
Earnings per share:
Basic, Class A	$	4.39		$	4.18		$	3.68		$	3.00		$	2.25
Basic, Class B	$	2.19		$	2.09		$	1.84		$	1.50		$	1.12
Diluted, Class A	$	3.61		$	3.43		$	3.01		$	2.45		$	1.84
Diluted, Class B	$	2.19		$	2.09		$	1.84		$	1.50		$	1.12
Dividend payout ratio		10.9	%		11.5	%		13.1	%		16.0	%		21.4	%
AT YEAR-END
Assets	$	3,431,154		$	3,086,209		$	2,743,225		$	2,441,684		$	2,254,035
Loans		1,264,763			1,111,788			984,492			906,164			877,125
Deposits		2,715,839			2,445,073			2,124,584			1,902,023			1,701,987
Stockholders’ equity		176,472			179,990			160,649			145,025			132,730
Book value per share	$	31.76		$	32.40		$	28.98		$	26.18		$	24.00
SELECTED FINANCIAL PERCENTAGES
Return on average assets		0.60	%		0.65	%		0.63	%		0.56	%		0.50	%
Return on average stockholders’ equity		11.58	%		11.06	%		10.72	%		9.52	%		7.98	%
Net interest margin, taxable equivalent		2.21	%		2.51	%		2.48	%		2.52	%		2.69	%
Net charge-offs as a percent of average loans		0.08	%		0.15	%		0.21	%		0.44	%		0.63	%
Average stockholders’ equity to average assets		5.22	%		5.85	%		5.88	%		5.93	%		6.26	%
Efficiency ratio		63.0	%		62.1	%		62.2	%		65.0	%		68.5	%

11

Financial Highlights — (Continued)

Per Share Data 2013, Quarter Ended	December 31,		September 30,		June 30,		March 31,
Market price range (Class A)
High	$	35.98	$	37.80	$	35.75	$	35.40
Low		29.67		31.22		31.11		30.41
Dividends Class A		0.12		0.12		0.12		0.12
Dividends Class B		0.06		0.06		0.06		0.06
2012, Quarter Ended	December 31,		September 30,		June 30,		March 31,
Market price range (Class A)
High	$	34.00	$	33.00	$	30.24	$	29.50
Low		28.02		28.46		25.00		23.51
Dividends Class A		0.12		0.12		0.12		0.12
Dividends Class B		0.06		0.06		0.06		0.06

The stock performance graph below compares the cumulative total shareholder return of the Company’s Class A Common Stock from December 31, 2008 to December 31, 2013 with the cumulative total return of the NASDAQ Market Index (U.S. Companies) and the NASDAQ Bank Stock Index. The lines in the graph represent monthly index levels derived from compounded daily returns that include all dividends. If the monthly interval, based on the fiscal year-end, was not a trading day, the preceding trading day was used.

Comparison of Five-Year

Cumulative Total Return*

Value of $100 Invested on December 31, 2008 at:	2009		2010		2011		2012		2013
Century Bancorp, Inc.	$	143.61	$	178.37	$	191.51	$	227.01	$	232.34
NASDAQ Banks		84.30		100.68		90.16		105.38		150.84
NASDAQ U.S.		143.74		170.18		171.08		202.40		281.92

* Assumes that the value of the investment in the Company’s Common Stock and each index was $100 on December 31, 2008 and that all dividends were reinvested.

12

Management’s Discussion and Analysis of Results of Operations and Financial Condition

FORWARD-LOOKING STATEMENTS

Certain statements contained herein are not based on historical facts and are “forward-looking statements” within the meaning of Section 21A of the Securities Exchange Act of 1934. Forward-looking statements, which are based on various assumptions (some of which are beyond the Company’s control), may be identified by reference to a future period or periods, or by the use of forward-looking terminology, such as “may,” “will,” “believe,” “expect,” “estimate,” “anticipate,” “continue” or similar terms or variations on those terms, or the negative of these terms. Actual results could differ materially from those set forth in forward-looking statements due to a variety of factors, including, but not limited to, those related to the economic environment, particularly in the market areas in which the Company operates, competitive products and pricing, fiscal and monetary policies of the U.S. Government, changes in government regulations affecting financial institutions, including regulatory fees and capital requirements, changes in prevailing interest rates, acquisitions and the integration of acquired businesses, credit risk management, asset/liability management, the financial and securities markets, and the availability of and costs associated with sources of liquidity.

The Company does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions which may be made to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.

RECENT MARKET DEVELOPMENTS

The financial services industry continues to face challenges in the aftermath of the recent national and global economic crisis. Since June 2009, the U.S. economy has been recovering from the most severe recession and financial crisis since the Great Depression. There have been some improvements in private-sector employment, industrial production and U.S. exports; nevertheless, the pace of economic recovery has been slow. Financial markets have improved since the depths of the crisis but are still unsettled and volatile. There is continued concern about the U.S. economic outlook.

On July 21, 2010, the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Act”) became law. The Act was intended to address many issues arising in the recent financial crisis and is exceedingly broad in scope, affecting many aspects of bank and financial market regulation. The Act requires, or permits by implementing regulation, enhanced prudential standards for banks and bank holding companies inclusive of capital, leverage, liquidity, concentration and exposure measures. In addition, traditional bank regulatory principles such as restrictions on transactions with affiliates and insiders were enhanced. The Act also contains reforms of consumer mortgage lending practices and creates a Bureau of Consumer Financial Protection, which is granted broad authority over consumer financial practices of banks and others. It is expected as the specific new or incremental requirements applicable to the Company become effective that the costs and difficulties of remaining compliant with all such requirements will increase. The Act broadens the base for FDIC assessments to average consolidated assets less tangible equity of financial institutions and also permanently raises the current standard maximum FDIC deposit insurance amount to $250,000. The Act extended unlimited deposit insurance on non-interest bearing transaction accounts through December 31, 2012. In addition, the Act added a new Section 13 to the Bank Holding Company Act, the so-called “Volcker Rule,” (the “Rule”) which generally restricts certain banking entities such as the Company and its subsidiaries or affiliates, from engaging in proprietary trading activities and owning equity in or sponsoring any private equity or hedge fund. The Rule became effective July 21, 2012. The final implementing regulations for the Rule were issued by various regulatory agencies in December, 2013 and under an extended conformance regulation compliance must be achieved by July 21, 2015. Under the Rule, the Company may be restricted from engaging in proprietary trading, investing in third party hedge or private equity funds or sponsoring new funds unless it qualifies for an exemption from the rule. The Company has little involvement in prohibited proprietary trading or investment activities in covered funds and the Company does not expect that complying with the requirements of the Rule will have any material effect on the Company’s financial condition or results of operation.

On September 29, 2009, the FDIC adopted a Notice of Proposed Rulemaking (NPR) that would require insured institutions to prepay their estimated quarterly risk-based assessments for the fourth quarter of 2009 and

13

Management’s Discussion and Analysis of Results of Operations and Financial Condition — (Continued)

for all of 2010, 2011 and 2012. The FDIC Board voted to adopt a uniform three-basis point increase in assessment rates effective on January 1, 2011, and extend the restoration period from seven to eight years. This rule was finalized on November 2, 2009. The Company’s quarterly risk-based deposit insurance assessments were paid from this amount until June 30, 2013. The Company received a refund of $2.4 million of prepaid FDIC assessments in June 2013.

Federal banking regulators have issued risk-based capital guidelines, which assign risk factors to asset categories and off-balance-sheet items. Also, the Basel Committee has issued capital standards entitled “Basel III: A global regulatory framework for more resilient banks and banking systems” (“Basel III”). The Federal Reserve Board has finalized its rule implementing the Basel III regulatory capital framework. The rule, that will come into effect in January 2015, sets the Basel III minimum regulatory capital requirements for all organizations. It includes a new common equity Tier I ratio of 4.5 percent of risk-weighted assets, raises the minimum Tier I capital ratio from 4 percent to 6 percent of risk-weighted assets and would set a new conservation buffer of 2.5 percent of rick-weighted assets. The Company has analyzed the final rules; the implementation of the framework will not have a material impact on the Company’s financial condition or results of operations.

The Governor of Massachusetts has proposed a tax plan that would modify existing income tax rules. The governor’s plan is part of his budget recommendations for fiscal year 2015, and will subject security corporations to the same tax base and rate as regular business corporations. The proposed tax changes would take effect as of January 1, 2015. The Company is currently analyzing the financial impact of the proposed changes.

OVERVIEW

Century Bancorp, Inc. (together with its bank subsidiary, unless the context otherwise requires, the “Company”) is a Massachusetts state-chartered bank holding company headquartered in Medford, Massachusetts. The Company is a Massachusetts corporation formed in 1972 and has one banking subsidiary (the “Bank”): Century Bank and Trust Company formed in 1969. At December 31, 2013, the Company had total assets of $3.4 billion. Currently, the Company operates 26 banking offices in 19 cities and towns in Massachusetts, ranging from Braintree in the south to Andover in the north. The Bank’s customers consist primarily of small and medium-sized businesses and retail customers in these communities and surrounding areas, as well as local governments and institutions throughout Massachusetts.

The Company’s results of operations are largely dependent on net interest income, which is the difference between the interest earned on loans and securities and the interest paid on deposits and borrowings. The results of operations are also affected by the level of income/fees from loans and deposits, as well as operating expenses, the provision for loan losses, the impact of federal and state income taxes and the relative levels of interest rates and economic activity.

The Company offers a wide range of services to commercial enterprises, state and local governments and agencies, nonprofit organizations and individuals. It emphasizes service to small and medium-sized businesses and retail customers in its market area. The Company makes commercial loans, real estate and construction loans, and consumer loans and accepts savings, time and demand deposits. In addition, the Company offers to its corporate and institutional customers automated lockbox collection services, cash management services and account reconciliation services, and it actively promotes the marketing of these services to the municipal market. Also, the Company provides full-service securities brokerage services through a program called Investment Services at Century Bank, which is supported by LPL Financial, a third party full-service securities brokerage business.

The Company is also a provider of financial services, including cash management, transaction processing and short-term financing, to municipalities in Massachusetts, New Hampshire and Rhode Island, consisting of 204 relationships. The Company has deposit relationships with 193 (55%) of the 351 cities and towns in Massachusetts.

14

Management’s Discussion and Analysis of Results of Operations and Financial Condition — (Continued)

The Company had net income of $20,046,000 for the year ended December 31, 2013, compared with net income of $19,039,000 for the year ended December 31, 2012, and net income of $16,693,000 for the year ended December 31, 2011. Class A diluted earnings per share were $3.61 in 2013, compared to $3.43 in 2012 and $3.01 in 2011.

Earnings per share (EPS) for each class of stock and for each year ended December 31, is as follows:

	2013		2012		2011
Basic EPS – Class A common	$	4.39	$	4.18	$	3.68
Basic EPS – Class B common	$	2.19	$	2.09	$	1.84
Diluted EPS – Class A common	$	3.61	$	3.43	$	3.01
Diluted EPS – Class B common	$	2.19	$	2.09	$	1.84

The trends in the net interest margin are illustrated in the graph below:

Net Interest Margin

Pricing discipline occurred through the first quarter of 2011. The net interest margin fell somewhat during the second quarter of 2011 mainly as a result of increased deposits and corresponding lower yield short-term investments. During the third quarter of 2011 through the third quarter of 2012, management stabilized the net interest margin by continuing to lower cost of funds, and by deploying excess liquidity through expansion of the investment portfolio. Also, the Company collected approximately $3,253,000 of prepayment penalties during 2012. The primary factor accounting for the decrease in the net interest margin for the fourth quarter of 2012 and through the fourth quarter of 2013 was an additional large influx of deposits. Management invested the funds in shorter term securities.

While management will continue its efforts to improve the net interest margin, there can be no assurance that certain factors beyond its control, such as the prepayment of loans and changes in market interest rates, will continue to positively impact the net interest margin.

Historical U.S. Treasury Yield Curve

15

Management’s Discussion and Analysis of Results of Operations and Financial Condition — (Continued)

A yield curve is a line that typically plots the interest rates of U.S. Treasury Debt, which have different maturity dates but the same credit quality, at a specific point in time. The three main types of yield curve shapes are normal, inverted and flat. Over the past three years, the U.S. economy has experienced low short-term rates. During 2013, longer-term rates have increased resulting in a steepening of the yield curve.

During 2013, the Company’s earnings were positively impacted primarily by an increase in other operating income and a decrease in provision for loan losses. This increase in other operating income was primarily due to an increase in net gains on sales of loans and net gains on sales of securities. The decrease in the provision for loan losses was primarily attributable to a lower level of charge-off activity and changes in portfolio composition. During 2013, 2012 and 2011, the U.S. economy experienced a lower short-term rate environment. The lower short-term rates negatively impacted the net interest margin as the rate at which short-term deposits could be invested declined more than the rates offered on those deposits. The net interest margin was positively impacted in 2012 as a result of prepayment penalties that were collected during the year.

Total assets were $3,431,154,000 at December 31, 2013, an increase of 11.2% from total assets of $3,086,209,000 at December 31, 2012.

On December 31, 2013, stockholders’ equity totaled $176,472,000, compared with $179,990,000 on December 31, 2012. Book value per share decreased to $31.76 at December 31, 2013, from $32.40 on December 31, 2012.

During July 2010, the Company entered into a lease agreement to open a branch located at Newton Centre in Newton, Massachusetts. The branch opened on June 20, 2011.

During September 2010, the Company entered into a lease agreement to open a branch located in Andover, Massachusetts. The branch opened on July 16, 2012.

During June 2012, the Company entered into a lease agreement to open a branch located in Wellesley, Massachusetts. The branch opened on November 26, 2012.

During July 2012, the Company received state regulatory approval to close a branch at Chestnut Hill in Newton, Massachusetts. The branch closed on September 21, 2012 and the accounts were temporarily moved to the Brookline, Massachusetts branch. During July 2012, the Company entered into a lease agreement and received regulatory approval to open a branch at a new location at Chestnut Hill in Newton, Massachusetts. The branch opened on November 7, 2013 and the majority of the accounts that were temporarily moved to the Brookline, Massachusetts branch were moved to the new branch at Chestnut Hill in Newton, Massachusetts.

During December 2013, the Company entered into a lease agreement to open a branch located in Woburn, Massachusetts. The branch is scheduled to open during the third quarter of 2014.

CRITICAL ACCOUNTING POLICIES

Accounting policies involving significant judgments and assumptions by management, which have, or could have, a material impact on the carrying value of certain assets and impact income, are considered critical accounting policies.

The Company considers impairment of investment securities and allowance for loan losses to be its critical accounting policies. There have been no significant changes in the methods or assumptions used in the accounting policies that require material estimates and assumptions.

Impaired Investment Securities

If a decline in fair value below the amortized cost basis of an investment security is judged to be “other-than-temporary,” the cost basis of the investment is written down to fair value. The amount of the writedown is included as a charge to earnings. The amount of the impairment charge is recognized in earnings with an offset for the noncredit component which is recognized through other comprehensive income. Some factors considered

16

Management’s Discussion and Analysis of Results of Operations and Financial Condition — (Continued)

for other-than-temporary impairment related to a debt security include an analysis of yield which results in a decrease in expected cash flows, whether an unrealized loss is issuer specific, whether the issuer has defaulted on scheduled interest and principal payments, whether the issuer’s current financial condition hinders its ability to make future scheduled interest and principal payments on a timely basis or whether there was a downgrade in ratings by rating agencies.

The Company does not intend to sell any of its debt securities with an unrealized loss, and it is not more likely than not that it will be required to sell the debt securities before the anticipated recovery of their remaining amortized cost, which may be maturity.

Allowance for Loan Losses

Arriving at an appropriate level of allowance for loan losses necessarily involves a high degree of judgment. Management maintains an allowance for loan losses to absorb losses inherent in the loan portfolio. The allowance is based on assessments of the probable estimated losses inherent in the loan portfolio. Management’s methodology for assessing the appropriateness of the allowance consists of several key elements, which include the formula allowance and specific allowances for identified problem loans.

The formula allowance evaluates groups of loans to determine the allocation appropriate within each portfolio segment. Specific allowances for loan losses entail the assignment of allowance amounts to individual loans on the basis of loan impairment. The formula allowance and specific allowances also include management’s evaluation of various conditions, including business and economic conditions, delinquency trends, charge-off experience and other quality factors. Further information regarding the Company’s methodology for assessing the appropriateness of the allowance is contained within Note 1 of the “Notes to Consolidated Financial Statements.”

Management believes that the allowance for loan losses is adequate. In addition, various regulatory agencies, as part of the examination process, periodically review the Company’s allowance for loan losses. Such agencies may require the Company to recognize additions to the allowance based on their judgments about information available to them at the time of their examination.

FINANCIAL CONDITION

Investment Securities

The Company’s securities portfolio consists of securities available-for-sale (“AFS”) and securities held-to-maturity (“HTM”).

Securities available-for-sale consist of certain U.S. Treasury and U.S. Government Sponsored Enterprise mortgage-backed securities; state, county and municipal securities; privately issued mortgage-backed securities; other debt securities; and other marketable equities.

These securities are carried at fair value, and unrealized gains and losses, net of applicable income taxes, are recognized as a separate component of stockholders’ equity. The fair value of securities available-for-sale at December 31, 2013 totaled $464,245,000 and included gross unrealized gains of $821,000 and gross unrealized losses of $2,519,000. A year earlier, the fair value of securities available-for-sale was $1,434,801,000 including gross unrealized gains of $21,477,000 and gross unrealized losses of $1,271,000. In 2013, the Company recognized gains of $3,019,000 on the sale of available-for-sale securities. In 2012 and 2011, the Company recognized gains of $1,843,000 and $1,940,000, respectively.

Securities classified as held-to-maturity consist of U.S. Government Sponsored Enterprises and mortgage-backed securities. Securities held-to-maturity as of December 31, 2013 are carried at their amortized cost of $1,487,884,000. A year earlier, securities held-to-maturity totaled $275,507,000.

During the third quarter of 2013, $987,037,000 of securities available-for-sale with unrealized losses of $25,333,000 were transferred to securities held-to-maturity. This was done in response to rising interest rates and an assessment of liquidity needs.

17

Management’s Discussion and Analysis of Results of Operations and Financial Condition — (Continued)

The following table sets forth the fair value and percentage distribution of securities available-for-sale at the dates indicated.

Fair Value of Securities Available-for-Sale

	2013					2012					2011
At December 31,	Amount		Percent			Amount		Percent			Amount		Percent
(dollars in thousands)
U.S. Treasury	$	1,998		0.4	%	$	2,004		0.1	%	$	2,012		0.2	%
U.S. Government Sponsored Enterprises		10,004		2.2	%		130,340		9.1	%		174,957		13.9	%
SBA Backed Securities		7,302		1.6	%		8,156		0.6	%		8,801		0.7	%
U.S. Government Agency and Sponsored Enterprises Mortgage-Backed Securities		403,189		86.8	%		1,233,357		86.0	%		1,035,838		82.3	%
Privately Issued Residential Mortgage-Backed Securities		2,277		0.5	%		2,947		0.2	%		3,198		0.3	%
Obligations Issued by States and Political Subdivisions		36,723		7.9	%		55,174		3.8	%		20,642		1.6	%
Other Debt Securities		2,176		0.5	%		2,253		0.2	%		12,610		1.0	%
Equity Securities		576		0.1	%		570		0.0	%		618		0.0	%
Total	$	464,245		100.0	%	$	1,434,801		100.0	%	$	1,258,676		100.0	%

The majority of the Company’s securities AFS are classified as Level 2, as defined in Note 1 of the “Notes to Consolidated Financial Statements.” The fair values of these securities are obtained from a pricing service, which provides the Company with a description of the inputs generally utilized for each type of security. These inputs include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data. Management’s understanding of a pricing service’s pricing methodologies includes obtaining an understanding of the valuation risks, assessing its qualification, verification of sources of information and processes used to develop prices and identifying, documenting, and testing controls. Management’s validation of a vendor’s pricing methodology includes establishing internal controls to determine that the pricing information received by a pricing service and used by management in the valuation process is relevant and reliable. Market indicators and industry and economic events are also monitored. The decline in fair value from amortized cost for individual available-for-sale securities that are temporarily impaired is not attributable to changes in credit quality. Because the Company does not intend to sell any of its debt securities and it is not more likely than not that it will be required to sell the debt securities before the anticipated recovery of their remaining amortized cost, the Company does not consider these investments to be other-than-temporarily impaired at December 31, 2013.

Securities available-for-sale totaling $36,597,000, or 1.07% of assets, are classified as Level 3, as defined in Note 1 of the “Notes to Consolidated Financial

Statements.” These securities are generally equity investments or municipal securities with no readily determinable fair value. The securities are carried at fair value with periodic review of underlying financial statements and credit ratings to assess the appropriateness of these valuations.

Debt securities of Government Sponsored Enterprises refer primarily to debt securities of Fannie Mae and Freddie Mac.

The following table sets forth the amortized cost and percentage distribution of securities held-to-maturity at the dates indicated.

18

Management’s Discussion and Analysis of Results of Operations and Financial Condition — (Continued)

Amortized Cost of Securities Held-to-Maturity

	2013					2012					2011
At December 31,	Amount		Percent			Amount		Percent			Amount		Percent
(dollars in thousands)
U.S. Government Sponsored Enterprises	$	291,779		19.6	%	$	17,747		6.4	%	$	26,979		15.0	%
U.S. Government Sponsored Enterprise Mortgage-Backed Securities		1,196,105		80.4	%		257,760		93.6	%		152,389		85.0	%
Total	$	1,487,884		100.0	%	$	275,507		100.0	%	$	179,368		100.0	%

The following two tables set forth contractual maturities of the Bank’s securities portfolio at December 31, 2013. Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

Fair Value of Securities Available-for-Sale Amounts Maturing

	Within One Year		% of Total			Weighted Average Yield			One Year to Five Years		% of Total			Weighted Average Yield			Five Years to Ten Years		% of Total			Weighted Average Yield			Over Ten Years		% of Total			Weighted Average Yield
(dollars in thousands)
U.S. Treasury	$	1,998		0.4	%		0.23	%	$	—		0.0	%		0.00	%	$	—		0.0	%		0.00	%	$	—		0.0	%		0.00	%
U.S. Government
Sponsored Enterprises		—		0.0	%		0.00	%		10,004		2.2	%		2.64	%		—		0.0	%		0.00	%		—		0.0	%		0.00	%
SBA Backed Securities		—		0.0	%		0.00	%		—		0.0	%		0.00	%		4,963		1.1	%		0.78	%		2,339		0.5	%		0.92	%
U.S. Government Agencyand Sponsored Enterprise Mortgage-Backed
Securities		1,696		0.4	%		3.21	%		167,826		36.2	%		0.60	%		233,055		50.2	%		0.61	%		612		0.1	%		2.25	%
Privately Issued Residential Mortgage-Backed Securities		1,486		0.3	%		2.33	%		791		0.2	%		2.47	%		—		0.0	%		0.00	%		—		0.0	%		0.00	%
Obligations of States and Political Subdivisions		31,184		6.7	%		0.82	%		1,719		0.4	%		3.00	%		—		0.0	%		0.00	%		3,820		0.8	%		0.50	%
Other Debt Securities		600		0.1	%		1.45	%		200		0.0	%		0.99	%		—		0.0	%		0.00	%		—		0.0	%		0.00	%
Equity Securities		—		0.0	%		0.00	%		—		0.0	%		0.00	%		—		0.0	%		0.00	%		—		0.0	%		0.00	%
Total	$	36,964		7.9	%		0.97	%	$	180,540		39.0	%		0.74	%	$	238,018		51.3	%		0.61	%	$	6,771		1.4	%		0.80	%

19

Management’s Discussion and Analysis of Results of Operations and Financial Condition — (Continued)

	Non- Maturing		% of Total			Weighted Average Yield			Total		% of Total			Weighted Average Yield
(dollars in thousands)
U.S. Treasury	$	—		0.0	%		0.00	%	$	1,998		0.4	%		0.23	%
U.S. Government Sponsored Enterprises		—		0.0	%		0.00	%		10,004		2.2	%		2.64	%
SBA Backed Securities		—		0.0	%		0.00	%		7,302		1.6	%		0.83	%
U.S. Government Agency and Sponsored
Enterprise Mortgage-Backed Securities		—		0.0	%		0.00	%		403,189		86.8	%		0.62	%
Privately Issued Residential Mortgage-Backed Securities		—		0.0	%		0.00	%		2,277		0.5	%		2.38	%
Obligations of States and Political Subdivisions		—		0.0	%		0.00	%		36,723		7.9	%		0.88	%
Other Debt Securities		1,376		0.3	%		3.34	%		2,176		0.5	%		2.64	%
Equity Securities		576		0.1	%		1.66	%		576		0.1	%		1.66	%
Total	$	1,952		0.4	%		2.84	%	$	464,245		100.0	%		0.70	%

Amortized Cost of Securities Held-to-Maturity Amounts Maturing

	Within One Year		% of Total			Weighted Average Yield			One Year to Five Years		% of Total			Weighted Average Yield			Five Years to Ten Years		% of Total			Weighted Average Yield			Over Ten Years		% of Total			Weighted Average Yield			Total		% of Total			Weighted Average Yield
(dollars in thousands)
U.S. Government Sponsored Enterprises	$	—		0.0	%		0.00	%	$	99,189		6.7	%		1.14	%	$	192,589		12.9	%		1.69	%	$	—		0.0	%		0.00	%	$	291,778		19.6	%		1.50	%
U.S. Government Sponsored Enterprise Mortgage-Backed Securities		5,689		0.4	%		2.90	%		728,144		48.9	%		2.39	%		461,195		31.0	%		2.20	%		1,078		0.1	%		4.14	%		1,196,106		80.4	%		2.32	%
Total	$	5,689		0.4	%		2.90	%	$	827,333		55.6	%		2.24	%	$	653,784		43.9	%		2.05	%	$	1,078		0.1	%		4.14	%	$	1,487,884		100.0	%		2.16	%

At December 31, 2013 and 2012, the Bank had no investments in obligations of individual states, counties, municipalities or nongovernment corporate entities which exceeded 10% of stockholders’ equity. In 2013, sales of securities totaling $224,045,000 in gross proceeds resulted in a net realized gain of $3,019,000. There were no sales of state, county or municipal securities during 2013 and 2012. In 2012, sales of securities totaling $294,881,000 in gross proceeds resulted in net realized gains of $1,843,000. In 2011, sales of securities totaling $75,615,000 in gross proceeds resulted in net realized gains of $1,940,000.

Management reviews the investment portfolio for other-than-temporary impairment of individual securities on a regular basis. The results of such analysis are dependent upon general market conditions and specific conditions related to the issuers of our securities.

Loans

The Company’s lending activities are conducted principally in Massachusetts, Southern New Hampshire, and Rhode Island. The Company grants single-family and multi-family residential loans, commercial and commercial real estate loans, and a variety of consumer loans. To a lesser extent, the Company grants loans for the construction of residential homes, multi-family properties, commercial real estate properties and land development. Most loans granted by the Company are secured by real estate collateral. The ability and willingness of commercial real estate, commercial, construction, residential and consumer loan borrowers to honor their repayment commitments are generally dependent on the health of the real estate market in the borrowers’ geographic areas and of the general economy.

20

Management’s Discussion and Analysis of Results of Operations and Financial Condition — (Continued)

The following summary shows the composition of the loan portfolio at the dates indicated.

	2013					2012					2011					2010					2009
December 31,	Amount		Percent of Total			Amount		Percent of Total			Amount		Percent of Total			Amount		Percent of Total			Amount		Percent of Total
(dollars in thousands)
Construction and land development	$	33,058		2.6	%	$	38,618		3.5	%	$	56,819		5.7	%	$	53,583		5.9	%	$	60,349		6.9	%
Commercial and industrial		92,402		7.3	%		88,475		8.0	%		82,404		8.4	%		90,654		10.0	%		141,061		16.1	%
Commercial real estate		713,327		56.4	%		576,465		51.8	%		487,495		49.5	%		433,337		47.8	%		361,823		41.2	%
Residential real estate		286,041		22.6	%		281,857		25.3	%		239,307		24.3	%		207,787		22.9	%		188,096		21.4	%
Consumer		8,824		0.7	%		6,823		0.6	%		6,197		0.6	%		5,957		0.7	%		7,105		0.8	%
Home equity		130,277		10.3	%		118,923		10.7	%		110,786		11.3	%		114,209		12.6	%		118,076		13.5	%
Overdrafts		834		0.1	%		627		0.1	%		1,484		0.2	%		637		0.1	%		615		0.1	%
Total	$	1,264,763		100.0	%	$	1,111,788		100.0	%	$	984,492		100.0	%	$	906,164		100.0	%	$	877,125		100.0	%

At December 31, 2013, 2012, 2011, 2010 and 2009, loans were carried net of discounts of $454,000, $498,000, $550,000, $598,000 and $645,000, respectively. Net deferred loan fees of $174,000, $369,000, $666,000, $186,000 and $71,000 were carried in 2013, 2012, 2011, 2010 and 2009, respectively.

The following table summarizes the remaining maturity distribution of certain components of the Company’s loan portfolio on December 31, 2013. The table excludes loans secured by 1–4 family residential real estate and loans for household and family personal expenditures. Maturities are presented as if scheduled principal amortization payments are due on the last contractual payment date.

Remaining Maturities of Selected Loans at December 31, 2013

	One Year or Less		One to Five Years		Over Five Years		Total
(dollars in thousands)
Construction and land development	$	8,625	$	3,537	$	20,896	$	33,058
Commercial and industrial		26,860		26,172		39,370		92,402
Commercial real estate		16,089		96,608		600,630		713,327
Total	$	51,574	$	126,317	$	660,896	$	838,787

21

Management’s Discussion and Analysis of Results of Operations and Financial Condition — (Continued)

The following table indicates the rate variability of the above loans due after one year.

December 31, 2013	One to Five Years		Over Five Years		Total
(dollars in thousands)
Predetermined interest rates	$	60,303	$	262,989	$	323,292
Floating or adjustable interest rates		66,014		397,907		463,921
Total	$	126,317	$	660,896	$	787,213

The Company’s commercial and industrial (“C&I”) loan customers represent various small and middle-market established businesses involved in manufacturing, distribution, retailing and services. Most clients are privately owned with markets that range from local to national in scope. Many of the loans to this segment are secured by liens on corporate assets and the personal guarantees of the principals. The regional economic strength or weakness impacts the relative risks in this loan category. There is little concentration in any one business sector, and loan risks are generally diversified among many borrowers.

Commercial real estate loans are extended to finance various manufacturing, warehouse, light industrial, office, retail and residential properties in the Bank’s market area, which generally includes Massachusetts, Southern New Hampshire, and Rhode Island. Also included are loans to educational institutions, hospitals and other non-profit organizations. Loans are normally extended in amounts up to a maximum of 80% of appraised value and normally for terms between three and thirty years.

Amortization schedules are long term and thus a balloon payment is generally due at maturity. Under most circumstances, the Bank will offer to rewrite or otherwise extend the loan at prevailing interest rates. During recent years, the Bank has emphasized nonresidential-type owner-occupied properties. This complements our C&I emphasis placed on the operating business entities and will continue. The regional economic environment affects the risk of both nonresidential and residential mortgages.

Residential real estate (1–4 family) includes two categories of loans. Included in residential real estate are approximately $16,472,000 of C&I type loans secured by 1–4 family real estate. Primarily, these are small businesses with modest capital or shorter operating histories where the collateral mitigates some risk. This category of loans shares similar risk characteristics with the C&I loans, notwithstanding the collateral position.

The other category of residential real estate loans is mostly 1–4 family residential properties located in the Bank’s market area. General underwriting criteria are largely the same as those used by Fannie Mae. The Bank utilizes mortgage insurance to provide lower down payment products and has provided a “First Time Homebuyer” product to encourage new home ownership. Residential real estate loan volume has increased and remains a core consumer product. The economic environment impacts the risks associated with this category.

Home equity loans are extended as both first and second mortgages on owner-occupied residential properties in the Bank’s market area. Loans are underwritten to a maximum loan to property value of 75%.

Bank officers evaluate the feasibility of construction projects based on independent appraisals of the project, architects’ or engineers’ evaluations of the cost of construction and other relevant data. As of December 31, 2013, the Company was obligated to advance a total of $7,026,000 to complete projects under construction.

22

Management’s Discussion and Analysis of Results of Operations and Financial Condition — (Continued)

The composition of nonperforming assets is as follows:

December 31,	2013			2012			2011			2010			2009
(dollars in thousands)
Total nonperforming loans	$	2,549		$	4,471		$	5,827		$	8,068		$	12,311
Other real estate owned		—			—			1,182			—			—
Total nonperforming assets	$	2,549		$	4,471		$	7,009		$	8,068		$	12,311
Accruing troubled debt restructured loans	$	5,969		$	3,048		$	4,634		$	1,248		$	521
Loans past due 90 and still accruing		—			—			18			50			—
Nonperforming loans as a percent of gross loans		0.20	%		0.40	%		0.59	%		0.89	%		1.40	%
Nonperforming assets as a percent of total assets		0.07	%		0.14	%		0.26	%		0.33	%		0.55	%

The composition of impaired loans at December 31, is as follows:

	2013		2012		2011		2010		2009
Residential real estate, multi-family	$	1,199	$	862	$	516	$	—	$	—
Commercial real estate		4,520		2,281		4,561		2,492		4,260
Construction and land development		608		1,500		1,500		4,000		4,900
Commercial and industrial		1,367		1,282		1,525		1,471		1,356
Total impaired loans	$	7,694	$	5,925	$	8,102	$	7,963	$	10,516

At December 31, 2013, 2012, 2011, 2010 and 2009, impaired loans had specific reserves of $1,019,000, $1,732,000, $741,000, $317,000 and $745,000 respectively.

The Company was servicing mortgage loans sold to others without recourse of approximately $109,301,000, $26,786,000, $18,196,000, $983,000 and $1,127,000 at December 31, 2013, 2012, 2011, 2010, and 2009, respectively. The Company had no loans held for sale at December 31, 2013, $9,378,000 at December 31, 2012, $3,389,000 at December 31, 2011, and none for December 31, 2010 and 2009.

Servicing assets are recorded at fair value and recognized as separate assets when rights are acquired through sale of loans with servicing rights retained. Mortgage servicing assets (“MSA”) are amortized into non-interest income in proportion to, and over the period of, the estimated net servicing income. Upon sale, the mortgage servicing asset is established, which represents the then-current estimated fair value based on market prices for comparable mortgage servicing contracts, when available, or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, an inflation rate, ancillary income, prepayment speeds and default rates and losses. Servicing rights are recorded in other assets and are amortized in proportion to, and over the period of estimated net servicing income and are assessed for impairment based on fair value at each reporting date. MSAs are reported in other assets in the consolidated balance sheets. MSAs totaled $703,000 at December 31, 2013, $137,000 for December 31, 2012, and $123,000 for December 31, 2011.

Directors and officers of the Company and their associates are customers of, and have other transactions with, the Company in the normal course of business. All loans and commitments included in such transactions were made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with other persons and do not involve more than normal risk of collection or present other unfavorable features.

Loans are placed on nonaccrual status when any payment of principal and/or interest is 90 days or more past due, unless the collateral is sufficient to cover both principal and interest and the loan is in the process of collection.

23

Management’s Discussion and Analysis of Results of Operations and Financial Condition — (Continued)

The Company monitors closely the performance of its loan portfolio. In addition to internal loan review, the Company has contracted with an independent organization to review the Company’s commercial and commercial real estate loan portfolios. This independent review was performed in each of the past five years. The status of delinquent loans, as well as situations identified as potential problems, is reviewed on a regular basis by senior management and monthly by the Board of Directors of the Bank.

Nonaccrual loans decreased during 2013 primarily as a result of a charge-off of a construction loan and a decrease in residential real estate nonperforming loans. Nonaccrual loans decreased during 2012, primarily as a result of a decrease in home equity and residential real estate nonperforming loans.

Nonaccrual loans decreased during 2011, primarily as a result of $1,200,000 in charge-offs from two construction loans as well as the subsequent foreclosure of $1,300,000 of one of the construction loans. Nonaccrual loans decreased during 2010, primarily as a result of resolution of a $2,479,000 commercial real estate loan as well as $900,000 in charge-offs from two construction loans during 2010. Nonaccrual loans increased from 2008 to 2009, primarily as a result of three loan relationships, one primarily commercial real estate and two construction totaling $7,379,000.

The Company continues to monitor closely $16,918,000 and $18,645,000 at December 31, 2013 and 2012, respectively, of loans for which management has concerns regarding the ability of the borrowers to perform. The majority of the loans are secured by real estate and are considered to have adequate collateral value to cover the loan balances at December 31, 2013, although such values may fluctuate with changes in the economy and the real estate market.

24

Management’s Discussion and Analysis of Results of Operations and Financial Condition — (Continued)

Allowance for Loan Losses

The Company maintains an allowance for loan losses in an amount determined by management on the basis of the character of the loans, loan performance, financial condition of borrowers, the value of collateral securing loans and other relevant factors. The following table summarizes the changes in the Company’s allowance for loan losses for the years indicated.

Year Ended December 31,	2013			2012			2011			2010			2009
(dollars in thousands)
Year-end loans outstanding (net of unearned discount and deferred loan fees)	$	1,264,763		$	1,111,788		$	984,492		$	906,164		$	877,125
Average loans outstanding (net of unearned discount and deferred loan fees)	$	1,184,912		$	1,036,296		$	948,883		$	877,858		$	853,422
Balance of allowance for loan losses at the beginning of year	$	19,197		$	16,574		$	14,053		$	12,373		$	11,119
Loans charged-off:
Commercial		234			1,253			676			1,559			1,498
Construction		1,000			—			1,200			900			3,639
Commercial real estate		—			—			—			922			—
Residential real estate		—			351			341			515			490
Consumer		579			697			607			547			443
Total loans charged-off		1,813			2,301			2,824			4,443			6,070
Recovery of loans previously charged-off:
Commercial		389			307			293			172			352
Construction		—			—			—			—			25
Real estate		31			45			35			8			4
Consumer		427			422			467			368			318
Total recoveries of loans previously charged-off:		847			774			795			548			699
Net loan charge-offs		966			1,527			2,029			3,895			5,371
Provision charged to operating expense		2,710			4,150			4,550			5,575			6,625
Balance at end of year	$	20,941		$	19,197		$	16,574		$	14,053		$	12,373
Ratio of net charge-offs during the year to average loans outstanding		0.08	%		0.15	%		0.21	%		0.44	%		0.63	%
Ratio of allowance for loan losses to loans outstanding		1.66	%		1.73	%		1.68	%		1.55	%		1.41	%

The amount of the allowance for loan losses results from management’s evaluation of the quality of the loan portfolio considering such factors as loan status, specific reserves on impaired loans, collateral values, financial condition of the borrower, the state of the economy and other relevant information. The pace of the charge-offs depends on many factors, including the national and regional economy. Cyclical lagging factors may result in charge-offs being higher than historical levels. Charge-offs increased during 2009 due to an increase in commercial loan charge-offs and construction loan charge-offs as a result of the weakening of the overall

25

Management’s Discussion and Analysis of Results of Operations and Financial Condition — (Continued)

economy and real estate market. Charge-offs declined in 2010, 2011, 2012, and 2013 as a result of the overall decrease in the level of nonaccrual loans. The dollar amount of the allowance for loan losses and the level of the allowance for loan losses to total loans increased primarily as a result of a lower level of charge-off activity combined with changes in the portfolio composition.

In evaluating the allowance for loan losses, the Company considered the following categories to be higher risk:

Construction loans — The outstanding loan balance of construction loans at December 31, 2013 is $33,058,000. A major portion in nonaccrual loans is one construction loan. Based on this fact, and the general local construction conditions, management closely monitors all construction loans and considers this type of loan to be higher risk.

Higher-balance loans — Loans greater than $1.0 million are considered “high-balance loans.” The balance of these loans is $701,103,000 at December 31, 2013, as compared to $567,306,000 at December 31, 2012. These loans are considered higher risk due to the concentration in individual loans. Additional allowance allocations are made based upon the level of high-balance loans. Included in high-balance loans are loans greater than $10.0 million. The balance of these loans is $377,915,000 at December 31, 2013, as compared to $245,198,000 at December 31, 2012. Additional allowance allocations are made based upon the level of this type of high balance loans that is separate and greater than the $1.0 million allocation.

Small business loans — The outstanding loan balances of small business loans is $40,184,000 at December 31, 2013. These are considered higher risk loans because small businesses have been negatively impacted by the current economic conditions. In a liquidation scenario, the collateral, if any, is often not sufficient to fully recover the outstanding balance of the loan. As a result, the Company often seeks additional collateral prior to renewing maturing small business loans. In addition, the payment status of the loans is monitored closely in order to initiate collection efforts in a timely fashion.

The allowance for loan losses is an estimate of the amount needed for an adequate reserve to absorb losses in the existing loan portfolio. This amount is determined by an evaluation of the loan portfolio, including input from an independent organization engaged to review selected larger loans, a review of loan experience and current economic conditions. Although the allowance is allocated between categories, the entire allowance is available to absorb losses attributable to all loan categories. At December 31 of each year listed below, the allowance is comprised of the following:

	2013					2012					2011					2010					2009
	Amount		Percent of Loans in Each Category to Total Loans			Amount		Percent of Loans in Each Category to Total Loans			Amount		Percent of Loans in Each Category to Total Loans			Amount		Percent of Loans in Each Category to Total Loans			Amount		Percent of Loans in Each Category to Total Loans
(dollars in thousands)
Construction and land development	$	2,174		2.6	%	$	3,041		3.5	%	$	2,893		5.7	%	$	1,752		5.9	%	$	362		6.9	%
Commercial and industrial		2,989		7.3			3,118		8.0			3,139		8.4			3,163		10.0			4,972		16.1
Commercial real estate		11,218		56.4			9,065		51.8			6,566		49.5			5,671		47.8			2,983		41.2
Residential real estate		2,006		22.6			1,994		25.3			1,886		24.3			1,718		22.9			1,304		21.4
Consumer and other		432		0.8			333		0.7			356		0.8			298		0.8			1,753		0.9
Home equity		959		10.3			886		10.7			704		11.3			725		12.6			761		13.5
Unallocated		1,163					760					1,030					726					238
Total	$	20,941		100.0	%	$	19,197		100.0	%	$	16,574		100.0	%	$	14,053		100.0	%	$	12,373		100.0	%

26

Management’s Discussion and Analysis of Results of Operations and Financial Condition — (Continued)

Management believes that the allowance for loan losses is adequate. In addition, various regulatory agencies, as part of the examination process, periodically review the Company’s allowance for loan losses. Such agencies may require the Company to recognize additions to the allowance based on their judgments about information available to them at the time of their examination. Further information regarding the allocation of the allowance is contained within Note 6 of the “Notes to Consolidated Financial Statements.”

Deposits

The Company offers savings accounts, NOW accounts, demand deposits, time deposits and money market accounts. Additionally, the Company offers cash management accounts which provide either automatic transfer of funds above a specified level from the customer’s checking account to a money market account or short-term borrowings. Also, an account reconciliation service is offered whereby the Company provides a computerized report balancing the customer’s checking account.

Interest rates on deposits are set bi-monthly by the Bank’s rate-setting committee, based on factors including loan demand, maturities and a review of competing interest rates offered. Interest rate policies are reviewed periodically by the Executive Management Committee.

The following table sets forth the average balances of the Bank’s deposits for the periods indicated.

	2013					2012					2011
	Amount		Percent			Amount		Percent			Amount		Percent
(dollars in thousands)
Demand Deposits	$	441,193		16.6	%	$	386,863		16.5	%	$	326,102		15.3	%
Savings and Interest Checking		1,037,320		38.9	%		870,046		37.1	%		735,022		34.6	%
Money Market		800,052		30.0	%		666,949		28.5	%		584,059		27.4	%
Time Certificates of Deposit		387,514		14.5	%		418,789		17.9	%		484,142		22.7	%
Total	$	2,666,079		100.0	%	$	2,342,647		100.0	%	$	2,129,325		100.0	%

Time Deposits of $100,000 or more as of December 31, are as follows:

	2013
(dollars in thousands)
Three months or less	$	84,273
Three months through six months		59,885
Six months through twelve months		37,022
Over twelve months		78,485
Total	$	259,665

Borrowings

The Bank’s borrowings consisted primarily of Federal Home Loan Bank of Boston (“FHLBB”) borrowings collateralized by a blanket pledge agreement on the Bank’s FHLBB stock, certain qualified investment securities, deposits at the FHLBB and residential mortgages held in the Bank’s portfolios. The Bank’s borrowings from the FHLBB totaled $255,000,000, an increase of $60,000,000 from the prior year. The Bank’s remaining term borrowing capacity at the FHLBB at December 31, 2013, was approximately $423,143,000. In addition, the Bank has a $14,500,000 line of credit with the FHLBB. See Note 12, “Other Borrowed Funds and Subordinated Debentures,” for a schedule, their interest rates and other information.

27

Management’s Discussion and Analysis of Results of Operations and Financial Condition — (Continued)

Subordinated Debentures

In December 2004, the Company consummated the sale of a Trust Preferred Securities offering, in which it issued $36,083,000 of subordinated debt securities due 2034 to its newly formed unconsolidated subsidiary, Century Bancorp Capital Trust II.

Century Bancorp Capital Trust II then issued 35,000 shares of Cumulative Trust Preferred Securities with a liquidation value of $1,000 per share. These securities pay dividends at an annualized rate of 6.65% for the first ten years and then convert to the three-month LIBOR rate plus 1.87% for the remaining 20 years.

Securities Sold Under Agreements to Repurchase

The Bank’s remaining borrowings consist primarily of securities sold under agreements to repurchase. Securities sold under agreements to repurchase totaled $214,440,000, an increase of $23,050,000 from the prior year. See Note 11, “Securities Sold Under Agreements to Repurchase,” for a schedule, including their interest rates and other information.

RESULTS OF OPERATIONS Net

Interest Income

The Company’s operating results depend primarily on net interest income and fees received for providing services. Net interest income on a fully taxable equivalent basis increased 0.04% in 2013 to $69,944,000, compared with $69,918,000 in 2012. The increase in net interest income for 2013 was mainly due to an 13.6% increase in the average balances of earning assets, combined with a similar increase in deposits. This was offset, somewhat, by prepayment penalties that were collected during the prior year. The level of interest rates, the ability of the Company’s earning assets and liabilities to adjust to changes in interest rates and the mix of the Company’s earning assets and liabilities affect net interest income. The net interest margin on a fully taxable equivalent basis decreased to 2.21% in 2013 from 2.51% in 2012 and increased from 2.48% in 2011. The decrease in the net interest margin, for 2013, was primarily the result of a decrease in asset yields. The increase in the net interest margin for 2012 was primarily the result of prepayment penalties that were collected. The Company collected approximately $491,000, $3,253,000, and $158,000, respectively, of prepayment penalties, which are included in interest income on loans, for 2013, 2012, and 2011, respectively.

Additional information about the net interest margin is contained in the “Overview” section of this report. Also, there can be no assurance that certain factors beyond its control, such as the prepayment of loans and changes in market interest rates, will continue to positively impact the net interest margin. Management believes that the current yield curve environment will continue to present challenges as deposit and borrowing costs may have the potential to increase at a faster rate than corresponding asset categories.

28

Management’s Discussion and Analysis of Results of Operations and Financial Condition — (Continued)

The following table sets forth the distribution of the Company’s average assets, liabilities and stockholders’ equity, and average rates earned or paid on a fully taxable equivalent basis for each of the years indicated.

	2013									2012									2011
Year Ended December 31,	Average Balance			Interest Income/ Expense(1)			Rate Earned/ Paid(1)			Average Balance			Interest Income/ Expense(1)			Rate Earned/ Paid(1)			Average Balance			Interest Income/ Expense(1)			Rate Earned/ Paid(1)
(dollars in thousands)
ASSETS
Interest-earning assets:
Loans(2
Taxable	$	760,435		$	33,214			4.37	%	$	715,553		$	34,983			4.89	%	$	703,491		$	36,772			5.23	%
Tax-exempt		424,477			24,918			5.87			320,743			24,220			7.55			245,392			17,996			7.33
Securities available-for-sale:(3
Taxable		951,757			13,083			1.37			1,214,352			22,363			1.84			1,076,689			22,828			2.12
Tax-exempt		46,226			434			0.94			49,023			516			1.05			22,410			321			1.43
Securities held-to-maturity:
Taxable		812,448			16,615			2.05			270,525			6,746			2.49			178,659			5,816			3.26
Interest-bearing deposits in other banks		174,264			485			0.28			219,540			630			0.29			276,413			1,114			0.40
Total interest-earning assets		3,169,607		$	88,749			2.80	%		2,789,736		$	89,458			3.21	%		2,503,054		$	84,847			3.39	%
Noninterest-earning assets		167,000									172,748									158,297
Allowance for loan losses		(20,452	)								(18,039	)								(15,767	)
Total assets	$	3,316,155								$	2,944,445								$	2,645,584
LIABILITIES AND STOCKHOLDERS’ EQUITY
Interest-bearing deposits:
NOW accounts	$	713,677		$	1,673			0.23	%	$	588,500		$	1,561			0.27	%	$	476,807		$	1,715			0.36	%
Savings accounts		323,643			912			0.28			281,546			689			0.24			258,215			824			0.32
Money market accounts		800,052			2,472			0.31			666,949			2,373			0.36			584,059			2,706			0.46
Time deposits		387,514			4,777			1.23			418,789			6,250			1.49			484,142			9,356			1.93
Total interest-bearing deposits		2,224,886			9,834			0.44			1,955,784			10,873			0.56			1,803,223			14,601			0.81
Securities sold under agreements to repurchase		203,888			361			0.18			174,624			367			0.21			129,137			379			0.29
Other borrowed funds and subordinated debentures		231,032			8,610			3.73			217,542			8,300			3.82			202,209			7,786			3.85
Total interest-bearing liabilities		2,659,806		$	18,805			0.71	%		2,347,950		$	19,540			0.83	%		2,134,569		$	22,766			1.07	%
Noninterest-bearing liabilities
Demand deposits		441,193									386,863									326,102
Other liabilities		42,017									37,497									29,253
Total liabilities		3,143,016									2,772,310									2,489,924
Stockholders’ equity		173,139									172,135									155,660
Total liabilities and stockholders’ equity	$	3,316,155								$	2,944,445								$	2,645,584
Net interest income on a fully taxable equivalent basis				$	69,944								$	69,918								$	62,081
Less taxable equivalent adjustment					(8,984	)								(7,964	)								(6,782	)
Net interest income				$	60,960								$	61,954								$	55,299
Net interest spread								2.09	%								2.38	%								2.32	%
Net interest margin								2.21	%								2.51	%								2.48	%

(1) On a fully taxable equivalent basis calculated using a federal tax rate of 34%.

(2) Nonaccrual loans are included in average amounts outstanding.

(3) At amortized cost.

29

Management’s Discussion and Analysis of Results of Operations and Financial Condition — (Continued)

The following table summarizes the year-to-year changes in the Company’s net interest income resulting from fluctuations in interest rates and volume changes in earning assets and interest-bearing liabilities. Changes due to rate are computed by multiplying the change in rate by the prior year’s volume. Changes due to volume are computed by multiplying the change in volume by the prior year’s rate. Changes in volume and rate that cannot be separately identified have been allocated in proportion to the relationship of the absolute dollar amounts of each change.

	2013 Compared with 2012									2012 Compared with 2011
	Increase/(Decrease)									Increase/(Decrease)
	Due to Change in									Due to Change in
Year Ended December 31,	Volume			Rate			Total			Volume			Rate			Total
(dollars in thousands)
Interest income:
Loans
Taxable	$	2,108		$	(3,877	)	$	(1,769	)	$	622		$	(2,411	)	$	(1,789	)
Tax-exempt		6,800			(6,102	)		698			5,675			549			6,224
Securities available-for-sale:
Taxable		(4,271	)		(5,009	)		(9,280	)		2,730			(3,195	)		(465	)
Tax-exempt		(28	)		(54	)		(82	)		299			(104	)		195
Securities held-to-maturity:
Taxable		11,283			(1,414	)		9,869			2,510			(1,580	)		930
Interest-bearing deposits in other banks		(127	)		(18	)		(145	)		(202	)		(282	)		(484	)
Total interest income		15,765			(16,474	)		(709	)		11,634			(7,023	)		4,611
Interest expense:
Deposits:
NOW accounts		307			(195	)		112			352			(506	)		(154	)
Savings accounts		111			112			223			70			(205	)		(135	)
Money market accounts		436			(337	)		99			350			(683	)		(333	)
Time deposits		(442	)		(1,031	)		(1,473	)		(1,156	)		(1,950	)		(3,106	)
Total interest-bearing deposits		412			(1,451	)		(1,039	)		(384	)		(3,344	)		(3,728	)
Securities sold under agreements to repurchase		57			(63	)		(6	)		113			(125	)		(12	)
Other borrowed funds and subordinated debentures		506			(196	)		310			586			(72	)		514
Total interest expense		975			(1,710	)		(735	)		315			(3,541	)		(3,226	)
Change in net interest income	$	14,790		$	(14,764	)	$	26		$	11,319		$	(3,482	)	$	7,837

Average earning assets were $3,169,607,000 in 2013, an increase of $379,871,000 or 13.6% from the average in 2012, which was 11.5% higher than the average in 2011. Total average securities, including securities available-for-sale and securities held-to-maturity, were $1,810,431,000, an increase of 18.0% from the average in 2012. The increase in securities volume was mainly attributable to an increase in taxable securities. An increase in securities balances offset, somewhat, by lower securities returns resulted in higher securities income, which increased 1.7% to $30,132,000 on a fully tax equivalent basis. Total average loans increased 14.3% to $1,184,912,000 after increasing $87,413,000 in 2012. The primary reason for the increase in loans was due in large part to an increase in tax-exempt commercial real estate lending as well as residential first and second

30

Management’s Discussion and Analysis of Results of Operations and Financial Condition — (Continued)

mortgage lending. The increase in loan volume was offset by a decrease in loan rates that resulted in lower loan income. Loan income decreased by 1.8% or $1,071,000 to $58,132,000. Total loan income was $54,768,000 in 2011. Prepayment penalties collected were $491,000, $3,253,000, and $158,000 for 2013, 2012, and 2011, respectively.

The Company’s sources of funds include deposits and borrowed funds. On average, deposits increased 13.8%, or $323,432,000, in 2013 after increasing by 10.0%, or $213,322,000, in 2012. Deposits increased in 2013, primarily as a result of increases in demand deposits, savings, money market, and NOW accounts. Deposits increased in 2012, primarily as a result of increases in demand deposits, savings, money market and NOW accounts. Borrowed funds and subordinated debentures increased by 10.9% in 2013, following an increase of 18.4% in 2012. The majority of the Company’s borrowed funds are borrowings from the FHLBB and retail repurchase agreements. Average borrowings from the FHLBB increased by approximately $13,489,000, and average retail repurchase agreements increased by $29,264,000 in 2013. Interest expense totaled $18,805,000 in 2013, a decrease of $735,000, or 3.8%, from 2012 when interest expense decreased 14.2% from 2011. The decrease in interest expense is primarily due to market decreases in deposit rates and continued deposit pricing discipline. Interest expense on time deposits accounted for a majority of this decrease.

Provision for Loan Losses

The provision for loan losses was $2,710,000 in 2013, compared with $4,150,000 in 2012 and $4,550,000 in 2011. These provisions are the result of management’s evaluation of the amounts and quality of the loan portfolio considering such factors as loan status, collateral values, financial condition of the borrower, the state of the economy and other relevant information. The provision for loan losses decreased during 2013, primarily as a result of a lower level of charge-off activity and changes in the portfolio composition. The provision for loan losses decreased during 2012, primarily as a result of decreased provisions related to nonaccrual loans as well as management’s quantitative analysis of the loan portfolio.

The allowance for loan losses was $20,941,000 at December 31, 2013, compared with $19,197,000 at December 31, 2012. Expressed as a percentage of outstanding loans at year-end, the allowance was 1.66% in 2013 and 1.73% in 2012. The allowance for loan losses increased despite a decrease in the provision for loan losses due to a lower level of charge-off activity combined with changes in the portfolio composition.

Nonperforming loans, which include all non-accruing loans, totaled $2,549,000 on December 31, 2013, compared with $4,471,000 on December 31, 2012. Nonperforming loans decreased primarily as a result of a decrease in construction and residential real estate nonperforming loans.

Other Operating Income

During 2013, the Company continued to experience positive results in its fee-based services, including fees derived from traditional banking activities such as deposit-related services, its automated lockbox collection system and full-service securities brokerage supported by LPL Financial, a full-service securities brokerage business.

Under the lockbox program, which is not tied to extensions of credit by the Company, the Company’s customers arrange for payments of their accounts receivable to be made directly to the Company. The Company records the amounts paid to its customers, deposits the funds to the customer’s account and provides automated records of the transactions to customers. Typical customers for the lockbox service are municipalities that use it to automate tax collections, cable TV companies and other commercial enterprises.

Through a program called Investment Services at Century Bank, the Bank provides full-service securities brokerage services supported by LPL Financial, a full-service securities brokerage business. Registered representatives employed by Century Bank offer limited investment advice, execute transactions and assist customers in financial and retirement planning. LPL Financial provides research to the Bank’s representatives. The Bank receives a share in the commission revenues.

31

Management’s Discussion and Analysis of Results of Operations and Financial Condition — (Continued)

Total other operating income in 2013 was $18,615,000, an increase of $2,750,000, or 17.3%, compared to 2012. This increase followed a decrease of $375,000, or 2.3%, in 2012, compared to 2011. Included in other operating income are net gains on sales of securities of $3,019,000, $1,843,000 and $1,940,000 in 2013, 2012 and 2011, respectively. Service charge income, which continues to be a major source of other operating income, totaling $8,113,000 in 2013, increased $233,000 compared to 2012. This followed a decrease of $5,000 in 2012 compared to 2011. The increase in fees, in 2013, was mainly attributable to an increase in fees collected from processing activities as well as an increase in debit card fees, which was offset, somewhat, by a decrease in overdraft fees. Service charges on deposit accounts decreased during 2012. The decrease in fees was mainly attributable to a decrease in overdraft fees, which was offset, somewhat, by an increase in debit card fees and fees collected from processing activities. Lockbox revenues totaled $3,079,000, up $149,000 in 2013 following an increase of $160,000 in 2012. Other income totaled $2,583,000, down $32,000 in 2013 following a decrease of $7,000 in 2012. The decrease in 2013 was mainly attributable to a decrease in ATM fees.

Operating Expenses

Total operating expenses were $55,812,000 in 2013, compared to $53,238,000 in 2012 and $48,742,000 in 2011.

Salaries and employee benefits expenses increased by $2,301,000 or 7.0% in 2013, after increasing by 11.2% in 2012. The increase in 2013 was mainly attributable to increases in staff levels, merit increases in salaries and increases in health insurance costs. The increase in 2012 was mainly attributable to increases in pension costs, staff levels, merit increases in salaries and increases in health insurance costs. The increase in pension costs in 2012 was mainly attributable to a decrease in the discount rate.

Occupancy expense increased by $305,000, or 6.5%, in 2013, following an increase of $284,000, or 6.4%, in 2012. The increase in 2013 was primarily attributable to an increase in rent expense, depreciation expense and building maintenance associated with branch expansion. The increase in 2012 was primarily attributable to an increase in rent expense and depreciation expense associated with branch expansion.

Equipment expense increased by $43,000, or 1.9%, in 2013, following an increase of $20,000, or 0.9%, in 2012. The increase in 2013 and 2012 was primarily attributable to an increase in service contracts.

FDIC assessments increased by $53,000, or 3.1%, in 2013, following a decrease of $288,000, or 14.2%, in 2012. FDIC assessments increased in 2013 mainly as a result of deposit growth. FDIC assessments decreased in 2012 mainly as a result of a decrease in the assessment rate.

Other operating expenses decreased by $128,000 in 2013, which followed a $1,167,000 increase in 2012. The decrease in 2013 was primarily attributable to a decrease in contributions and marketing expense offset somewhat by an increase in software maintenance. The increase in 2012 was primarily attributable to an increase in contributions, software maintenance and marketing expense offset somewhat by a decrease in core deposit intangible amortization.

Provision for Income Taxes

Income tax expense was $1,007,000 in 2013, $1,392,000 in 2012 and $1,554,000 in 2011. The effective tax rate was 4.8% in 2013, 6.8% in 2012 and 8.5% in 2011. The decrease in the effective tax rate for 2013 and 2012 was mainly attributable to an increase in tax-exempt interest income and tax credits as a percentage of taxable income. The federal tax rate was 34% in 2013, 2012 and 2011.

Market Risk and Asset Liability Management

Market risk is the risk of loss from adverse changes in market prices and rates. The Company’s market risk arises primarily from interest rate risk inherent in its lending and deposit-taking activities. To that end, management actively monitors and manages its interest rate risk exposure.

32

Management’s Discussion and Analysis of Results of Operations and Financial Condition — (Continued)

The Company’s profitability is affected by fluctuations in interest rates. A sudden and substantial change in interest rates may adversely impact the Company’s earnings to the extent that the interest rates borne by assets and liabilities do not change at the same speed, to the same extent or on the same basis. The Company monitors the impact of changes in interest rates on its net interest income using several tools. One measure of the Company’s exposure to differential changes in interest rates between assets and liabilities is an interest rate risk management test.

This test measures the impact on net interest income of an immediate change in interest rates in 100-basis point increments as set forth in the following table:

Change in Interest Rates (in Basis Points)	Percentage Change in Net Interest Income(1)
+400	(18.3)%
+300	(13.2)%
+200	(8.0)%
+100	(4.4)%
–100	1.4%
–200	1.0%

(1) The percentage change in this column represents net interest income for 12 months in various rate scenarios versus the net interest income in a stable interest rate environment.

The Company’s primary objective in managing interest rate risk is to minimize the adverse impact of changes in interest rates on the Company’s net interest income and capital, while structuring the Company’s asset-liability structure to obtain the maximum yield-cost spread on that structure. The Company relies primarily on its asset-liability structure to control interest rate risk.

Liquidity and Capital Resources

Liquidity is provided by maintaining an adequate level of liquid assets that include cash and due from banks, federal funds sold and other temporary investments. Liquid assets totaled $99,295,000 on December 31, 2013, compared with $169,650,000 on December 31, 2012. In each of these two years, deposit and borrowing activity has generally been adequate to support asset activity.

The sources of funds for dividends paid by the Company are dividends received from the Bank and liquid funds held by the Company. The Company and the Bank are regulated enterprises and their abilities to pay dividends are subject to regulatory review and restriction. Certain regulatory and statutory restrictions exist regarding dividends, loans and advances from the Bank to the Company. Generally, the Bank has the ability to pay dividends to the Company subject to minimum regulatory capital requirements.

Capital Adequacy

Total stockholders’ equity was $176,472,000 at December 31, 2013, compared with $179,990,000 at December 31, 2012. The Company’s stockholders’ equity decreased primarily as a result of an increase in other comprehensive loss, net of taxes, and dividends paid, offset somewhat by earnings. Other comprehensive loss, net of taxes, increased as a result of an increase in unrealized losses on securities available-for-sale and securities transferred from available-for-sale to held-to-maturity, offset, somewhat, by a decrease in the additional pension liability, net of taxes. Unrealized losses increased as a result of increases in interest rates. During the third quarter of 2013, $987,037,000 of securities available-for-sale with unrealized losses of $25,333,000 million were transferred to securities held-to-maturity. This was done in response to rising interest rates. The additional pension liability decreased mainly as a result of an increase in pension assets and decrease in the projected benefit obligation on the defined benefit pension plan.

33

Management’s Discussion and Analysis of Results of Operations and Financial Condition — (Continued)

Federal banking regulators have issued risk-based capital guidelines, which assign risk factors to asset categories and off-balance-sheet items. The current guidelines require a Tier 1 capital-to-risk assets ratio of at least 4.00% and a total capital-to-risk assets ratio of at least 8.00%. The Company and the Bank exceeded these requirements with a Tier 1 capital-to-risk assets ratio of 13.67% and 12.66%, respectively, and total capital-to-risk assets ratio of 14.92% and 13.91%, respectively, at December 31, 2013. Additionally, federal banking regulators have issued leverage ratio guidelines, which supplement the risk-based capital guidelines. The minimum leverage ratio requirement applicable to the Company is 4.00%; and at December 31, 2013, the Company and the Bank exceeded this requirement with leverage ratios of 6.50% and 6.00%, respectively.

Contractual Obligations, Commitments, and Contingencies

The Company has entered into contractual obligations and commitments. The following tables summarize the Company’s contractual cash obligations and other commitments at December 31, 2013.

Contractual Obligations and Commitments by Maturity (dollars in thousands)

	Payments Due — By Period
CONTRACTUAL OBLIGATIONS	Total		Less Than One Year		One to Three Years		Three to Five Years		After Five Years
FHLBB advances	$	255,000	$	53,000	$	74,500	$	77,000	$	50,500
Subordinated debentures		36,083		—		—		—		36,083
Retirement benefit obligations		32,179		2,200		5,026		6,601		18,352
Lease obligations		10,655		2,070		3,499		2,270		2,816
Customer repurchase agreements		214,440		214,440		—		—		—
Total contractual cash obligations	$	548,357	$	271,710	$	83,025	$	85,871	$	107,751
	Amount of Commitment Expiring — By Period
OTHER COMMITMENTS	Total		Less Than One Year		One to Three Years		Three to Five Years		After Five Years
Lines of credit	$	249,941	$	24,287	$	96,589	$	10,958	$	118,107
Standby and commercial letters of credit		7,930		7,631		69		25		205
Other commitments		28,149		7,301		1,700		600		18,548
Total commitments	$	286,020	$	39,219	$	98,358	$	11,583	$	136,860

Financial Instruments with Off-Balance-Sheet Risk

The Company is party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments primarily include commitments to originate and sell loans, standby letters of credit, unused lines of credit and unadvanced portions of construction loans. The instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheet. The contract or notional amounts of those instruments reflect the extent of involvement the Company has in these particular classes of financial instruments.

34

Management’s Discussion and Analysis of Results of Operations and Financial Condition — (Continued)

The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for loan commitments, standby letters of credit and unadvanced portions of construction loans is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments. Financial instruments with off-balance-sheet risk at December 31 are as follows:

Contract or Notional Amount	2013		2012
(dollars in thousands)
Financial instruments whose contract amount represents credit risk:
Commitments to originate 1–4 family mortgages	$	3,373	$	13,580
Standby and commercial letters of credit		7,930		8,411
Unused lines of credit		249,941		217,246
Unadvanced portions of construction loans		7,026		17,609
Unadvanced portions of other loans		17,750		4,872

Commitments to originate loans, unadvanced portions of construction loans and unused letters of credit are generally agreements to lend to a customer, provided there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the borrower.

Standby letters of credit are conditional commitments issued by the Company to guarantee the performance by a customer to a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The fair value of standby letters of credit was $69,000 and $36,000 for 2013 and 2012, respectively.

Recent Accounting Developments

In February 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2013-01, Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities. This ASU clarifies the scope of offsetting disclosure requirements in ASU 2011-11, Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities. Under ASU 2013-01, the disclosure requirements would apply to derivative instruments accounted for in accordance with ASC 815, including bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending arrangements that are either offset on the balance sheet or subject to an enforceable master netting arrangement or similar agreement. Entities with other types of financial assets and financial liabilities subject to a master netting arrangement or similar agreement also are affected because these amendments make them no longer subject to the disclosure requirements in ASU No. 2011-11. Effective January 1, 2013, companies are required to disclose (a) gross amounts of recognized assets and liabilities; (b) gross amounts offset in the statement of financial position; (c) net amounts of assets and liabilities presented in the statement of financial position; (d) gross amount subject to enforceable master netting agreement not offset in the statements of financial position; and (e) net amounts after deducting (d) from (c). The disclosure should be presented in tabular format (unless another format is more appropriate) separately for assets and liabilities. The intent of the new disclosure is to enable users of financial statements to understand the effect of those arrangements on its financial position and to allow investors to better compare financial statements prepared under GAAP with financial statements prepared under International Financial Reporting Standards. The Company implemented the provisions of ASU 2011-11 as of January 1, 2013. The adoption of this pronouncement did not have a material effect on the consolidated financial statements.

In February 2013, the FASB issued ASU 2013-02, Comprehensive Income (Topic 220) Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. ASU 2013-02 requires an entity to report the effect of significant reclassifications out of accumulated other comprehensive income on the respective

35

Management’s Discussion and Analysis of Results of Operations and Financial Condition — (Continued)

line items in net income or as a separate disclosure in the notes to the financial statements. The new standard is effective for annual periods beginning January 1, 2013, and interim periods within those annual periods. The Company has presented a separate footnote (Note 13) as a result of this pronouncement.

In July 2013, the FASB issued ASU 2013-10, Inclusion of the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) as a Benchmark Interest Rate for Hedge Accounting Purposes. This ASU amends ASC 815 to allow entities to use the Fed Funds Effective Swap Rate, in addition to U.S. Treasury rates and LIBOR, as a benchmark interest rate in accounting for fair value and cash flow hedges in the United States. This ASU also eliminates the provision from ASC 815-20-25-6 that prohibits the use of different benchmark rates for similar hedges except in rate and justifiable circumstances. This ASU is effective prospectively for qualifying new hedging relationship entered into on or after July 17, 2013, and for hedging relationship redesignated on or after that day. As of December 31, 2013, the Company did not have any fair value and cash flow hedges. The adoption of ASU No. 2013-10 did not have a material impact on the Company’s financial statements.

In July 2013, the FASB issued ASU No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. This ASU provides guidance on financial statement presentation of unrecognized tax benefits (“UTBs”) when a net operating loss (“NOL”) carryforward, a similar tax loss, or a tax credit carryforward exists. The FASB’s objective in issuing this ASU is to eliminate diversity in practice resulting from a lack of guidance on this topic in current U.S. GAAP. Under this ASU, an entity must present a UTB, or a portion of a UTB, in the financial statements as a reduction to a deferred tax asset (“DTA”) for an NOL carryforward, a similar tax loss, or a tax credit carryforward except when: (a) an NOL carryforward, a similar tax loss, or a tax credit carryforward is not available as of the reporting date under the governing tax law to settle taxes that would result from the disallowance of the tax position; (b) the entity does not intend to use the DTA for this purpose (provided that the tax law permits a choice). If either of these conditions exists, an entity should present a UTB in the financial statements as a liability and should not net the UTB with a DTA. New recurring disclosures are not required because the ASU does not affect the recognition or measurement of uncertain tax positions under ASC 740. This amendment does not affect the amounts public entities disclose in the tabular reconciliation of the total amounts of UTBs because the tabular reconciliation presents the gross amount of UTBs. This ASU is effective for fiscal years beginning after December 15, 2013, and interim periods within those years. The amendments should be applied to all UTBs that exist as of the effective date. Entities may choose to apply the amendments retrospectively to each prior reporting period presented. As of December 31, 2013, the Company did not have a UTB. Management will assess the applicability of this ASU after it becomes effective in the first quarter of 2014.

36

Consolidated Balance Sheets

December 31,	2013			2012
(dollars in thousands except share data)
ASSETS
Cash and due from banks (Note 2)	$	59,956		$	53,646
Federal funds sold and interest-bearing deposits in other banks		34,722			98,637
Total cash and cash equivalents		94,678			152,283
Short-term investments		4,617			17,367
Securities available-for-sale, amortized cost $465,943 in 2013 and $1,414,595 in 2012 (Notes 3, 9 and 11)		464,245			1,434,801
Securities held-to-maturity, fair value $1,464,449 in 2013 and $281,924 in 2012 (Notes 4 and 11)		1,487,884			275,507
Federal Home Loan Bank of Boston, stock at cost		18,072			15,146
Loans, net (Note 5)		1,264,763			1,111,788
Less: allowance for loan losses (Note 6)		20,941			19,197
Net loans		1,243,822			1,092,591
Bank premises and equipment (Note 7)		23,400			23,899
Accrued interest receivable		6,539			5,811
Prepaid FDIC assessments		—			2,773
Other assets (Notes 8 and 16)		87,897			66,031
Total assets	$	3,431,154		$	3,086,209
LIABILITIES AND STOCKHOLDERS’ EQUITY
Demand deposits	$	475,862		$	438,429
Savings and NOW deposits		992,796			933,316
Money market accounts		864,957			653,345
Time deposits (Note 10)		382,224			419,983
Total deposits		2,715,839			2,445,073
Securities sold under agreements to repurchase (Note 11)		214,440			191,390
Other borrowed funds (Note 12)		255,144			195,144
Subordinated debentures (Note 12)		36,083			36,083
Other liabilities		33,176			38,529
Total liabilities		3,254,682			2,906,219
Commitments and contingencies (Notes 7, 18 and 19)
Stockholders’ equity (Note 15):
Preferred Stock – $1.00 par value; 100,000 shares authorized; no shares issued and outstanding		—			—
Common stock, Class A,
$1.00 par value per share; authorized 10,000,000 shares; issued 3,580,404 shares in 2013 and 3,568,079 shares in 2012		3,580			3,568
Common stock, Class B,
$1.00 par value per share; authorized 5,000,000 shares; issued 1,976,180 shares in 2013 and 1,986,880 shares in 2012		1,976			1,986
Additional paid-in capital		11,932			11,891
Retained earnings		180,747			162,892
		198,235			180,337
Unrealized gains (losses) on securities available-for-sale, net of taxes		(1,045	)		12,330
Unrealized losses on securities transferred to held-to-maturity, net of taxes		(13,667	)		—
Pension liability, net of taxes		(7,051	)		(12,677	)
Total accumulated other comprehensive loss, net of taxes (Notes 3, 13 and 15)		(21,763	)		(347	)
Total stockholders’ equity		176,472			179,990
Total liabilities and stockholders’ equity	$	3,431,154		$	3,086,209

See accompanying “Notes to Consolidated Financial Statements.”

37

Consolidated Statements of Income

Year Ended December 31,	2013		2012		2011
(dollars in thousands except share data)
INTEREST INCOME
Loans, taxable	$	33,214	$	34,983	$	36,772
Loans, non-taxable		16,082		16,432		11,324
Securities available-for-sale, taxable		13,024		22,286		22,782
Securities available-for-sale, non-taxable		286		340		211
Federal Home Loan Bank of Boston dividends		59		77		46
Securities held-to-maturity		16,615		6,746		5,816
Federal funds sold, interest-bearing deposits in other banks and short-term investments		485		630		1,114
Total interest income		79,765		81,494		78,065
INTEREST EXPENSE
Savings and NOW deposits		2,585		2,250		2,539
Money market accounts		2,472		2,373		2,706
Time deposits		4,777		6,250		9,356
Securities sold under agreements to repurchase		361		367		379
Other borrowed funds and subordinated debentures		8,610		8,300		7,786
Total interest expense		18,805		19,540		22,766
Net interest income		60,960		61,954		55,299
Provision for loan losses (Note 6)		2,710		4,150		4,550
Net interest income after provision for loan losses		58,250		57,804		50,749
OTHER OPERATING INCOME
Service charges on deposit accounts		8,113		7,880		7,885
Lockbox fees		3,079		2,930		2,770
Brokerage commissions		257		364		441
Net gains on sales of securities		3,019		1,843		1,940
Net gains on sales of loans		1,564		297		660
Other income		2,583		2,551		2,544
Total other operating income		18,615		15,865		16,240
OPERATING EXPENSES
Salaries and employee benefits (Note 17)		35,244		32,943		29,630
Occupancy		5,000		4,695		4,411
Equipment		2,298		2,255		2,235
FDIC assessments		1,790		1,737		2,025
Other (Note 20)		11,480		11,608		10,441
Total operating expenses		55,812		53,238		48,742
Income before income taxes		21,053		20,431		18,247
Provision for income taxes (Note 16)		1,007		1,392		1,554
Net income	$	20,046	$	19,039	$	16,693
SHARE DATA (Note 14)
Weighted average number of shares outstanding, basic
Class A		3,575,683		3,557,693		3,543,233
Class B		1,980,855		1,990,474		1,997,411
Weighted average number of shares outstanding, diluted
Class A		5,557,693		5,549,191		5,541,794
Class B		1,980,855		1,990,474		1,997,411
Basic earnings per share
Class A	$	4.39	$	4.18	$	3.68
Class B	$	2.19	$	2.09	$	1.84
Diluted earnings per share
Class A	$	3.61	$	3.43	$	3.01
Class B	$	2.19	$	2.09	$	1.84

See accompanying “Notes to Consolidated Financial Statements.”

38

Consolidated Statements of Comprehensive Income

Year Ended December 31,	2013			2012			2011
(dollars in thousands)
NET INCOME	$	20,046		$	19,039		$	16,693
Other comprehensive income (loss), net of tax:
Unrealized (losses) gains on securities:
Unrealized holding (losses) gains arising during period		(25,909	)		5,854			6,666
Less: reclassification adjustment for gains included in net income		(3,019	)		(1,843	)		(1,940	)
Total unrealized (losses) gains on securities		(28,928	)		4,011			4,726
Accretion of net unrealized losses transferred during period		1,886			—			—
Defined benefit pension plans:
Pension liability adjustment:
Net gain (loss)		4,932			(2,488	)		(4,047	)
Amortization of prior service cost and loss included in net periodic benefit cost		694			649			380
Total pension liability adjustment		5,626			(1,839	)		(3,667	)
Other comprehensive (loss) income		(21,416	)		2,172			1,059
Comprehensive income (loss)	$	(1,370	)	$	21,211		$	17,752

See accompanying “Notes to Consolidated Financial Statements.”

39

Consolidated Statements of Changes in Stockholders’ Equity

	Class A Common Stock		Class B Common Stock			Additional Paid-in Capital		Retained Earnings			Accumulated Other Comprehensive Loss			Total Stockholders’ Equity
(dollars in thousands except share data)
BALANCE, DECEMBER 31, 2010	$	3,529	$	2,011		$	11,537	$	131,526		$	(3,578	)	$	145,025
Net income		—		—			—		16,693			—			16,693
Other comprehensive income, net of tax:
Unrealized holding gains arising during period, net of $3,143 in taxes and $1,940 in realized net gains		—		—			—		—			4,726			4,726
Pension liability adjustment, net of $2,439 in taxes		—		—			—		—			(3,667	)		(3,667	)
Conversion of Class B Common Stock to Class A Common Stock, 17,000 shares		17		(17	)		—		—			—			—
Stock options exercised, 2,450 shares		2		—			50		—			—			52
Cash dividends, Class A Common Stock, $0.48 per share		—		—			—		(1,701	)		—			(1,701	)
Cash dividends, Class B Common Stock, $0.24 per share		—		—			—		(479	)		—			(479	)
BALANCE, DECEMBER 31, 2011	$	3,548	$	1,994		$	11,587	$	146,039		$	(2,519	)	$	160,649
Net income		—		—			—		19,039			—			19,039
Other comprehensive income, net of tax:
Unrealized holding gains arising during period, net of $2,491 in taxes and $1,843 in realized net gains		—		—			—		—			4,011			4,011
Pension liability adjustment, net of $1,223 in taxes		—		—			—		—			(1,839	)		(1,839	)
Conversion of Class B Common Stock to Class A Common Stock, 7,500 shares		8		(8	)		—		—			—			—
Stock options exercised, 12,262 shares		12		—			292		—			—			304
Cashless stock options exercised, 6.750 shares		—		—			12		—			—			12
Cash dividends, Class A Common Stock, $0.48 per share		—		—			—		(1,708	)		—			(1,708	)
Cash dividends, Class B Common Stock, $0.24 per share		—		—			—		(478	)		—			(478	)
BALANCE, DECEMBER 31, 2012	$	3,568	$	1,986		$	11,891	$	162,892		$	(347	)	$	179,990
Net income		—		—			—		20,046			—			20,046
Other comprehensive income, net of tax:
Unrealized holding losses arising during period, net of $8,527 in taxes and $3,019 in realized net gains		—		—			—		—			(13,375	)		(13,375	)
Unrealized losses on securities transferred to held-to-maturity, net of $9,781 in taxes		—		—			—		—			(15,553	)		(15,553	)
Accretion of net unrealized losses transferred during the period, net of $1,191 in taxes		—		—			—		—			1,886			1,886
Pension liability adjustment, net of $3,741 in taxes		—		—			—		—			5,626			5,626
Conversion of Class B Common Stock to Class A Common Stock, 10,700 shares		10		(10	)		—		—			—			—
Stock options exercised, 1,625 shares		2		—			41		—			—			43
Cash dividends, Class A Common Stock, $0.48 per share		—		—			—		(1,716	)		—			(1,716	)
Cash dividends, Class B Common Stock, $0.24 per share		—		—			—		(475	)		—			(475	)
BALANCE, DECEMBER 31, 2013	$	3,580	$	1,976		$	11,932	$	180,747		$	(21,763	)	$	176,472

See accompanying “Notes to Consolidated Financial Statements.”

40

Consolidated Statements of Cash Flows

Year Ended December 31,	2013			2012			2011
(dollars in thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	20,046		$	19,039		$	16,693
Adjustments to reconcile net income to net cash provided by operating activities:
Mortgage loans originated for sale		(82,395	)		(20,149	)		(22,664	)
Proceeds from mortgage loans sold		93,337			14,457			19,697
Gain on sales of mortgage loans held for sale		(1,564	)		(297	)		(422	)
Gain on sale of loans		—			—			(238	)
Gain on sale of fixed assets		(1	)		(1	)		—
Net gains on sales of securities		(3,019	)		(1,843	)		(1,940	)
Provision for loan losses		2,710			4,150			4,550
Deferred tax benefit		(2,929	)		(2,104	)		(953	)
Net depreciation and amortization		5,358			6,445			5,558
(Increase) decrease in accrued interest receivable		(728	)		211			579
Decrease in prepaid FDIC assessments		2,773			1,562			1,794
(Gain) loss on sales of other real estate owned		—			(1	)		8
Write down of other real estate owned		—			—			117
Increase in other assets		(5,693	)		(3,113	)		(4,456	)
Increase in other liabilities		4,043			1,070			503
Net cash provided by operating activities		31,938			19,426			18,826
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from maturities of short-term investments		22,367			38,397			121,106
Purchase of short-term investments		(9,617	)		(37,413	)		(25,539	)
Proceeds from call of Federal Home Loan Bank of Boston stock		284			385			—
Purchase of Federal Home Loan Bank of Boston stock		(3,210	)		—			—
Proceeds from calls/maturities of securities available-for-sale		256,420			532,734			722,403
Proceeds from sales of securities available-for-sale		224,045			294,881			75,615
Purchase of securities available-for-sale		(543,072	)		(998,955	)		(1,140,194	)
Proceeds from calls/maturities of securities held-to-maturity		121,121			88,628			119,315
Purchase of securities held-to-maturity		(344,455	)		(185,346	)		(68,863	)
Proceeds from sales of loans		—			—			4,000
Net increase in loans		(163,275	)		(123,183	)		(82,793	)
Proceeds from sales of other real estate owned		—			1,584			802
Proceeds from sales of fixed assets		—			1			—
Capital expenditures		(1,819	)		(4,300	)		(2,692	)
Net cash used in investing activities		(441,211	)		(392,587	)		(276,840	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net (decrease) increase in time deposit accounts		(37,759	)		(13,518	)		16,241
Net increase in demand, savings, money market and NOW deposits		308,525			334,007			206,320
Net proceeds from the exercise of stock options		43			304			52
Cash dividends		(2,191	)		(2,186	)		(2,180	)
Net increase in securities sold under agreements to repurchase		23,050			48,070			34,770
Net increase (decrease) in other borrowed funds		60,000			(48,999	)		22,025
Net cash provided by financing activities		351,668			317,678			277,228
Net (decrease) increase in cash and cash equivalents		(57,605	)		(55,483	)		19,214
Cash and cash equivalents at beginning of year		152,283			207,766			188,552
Cash and cash equivalents at end of year	$	94,678		$	152,283		$	207,766
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the year for:
Interest	$	18,812		$	19,597		$	22,799
Income taxes		4,008			3,348			3,109
Change in unrealized gains on securities available-for-sale, net of taxes	$	(13,375	)	$	4,011		$	4,726
Change in unrealized losses on securities transferred to held-to-maturity, net of taxes		(13,667	)		—			—
Pension liability adjustment, net of taxes		5,626			(1,839	)		(3,667	)
Transfer of loans to other real estate owned		—			400			2,110
Transfer of securities available-for-sale to held-to-maturity		987,037			—			—

See accompanying “Notes to Consolidated Financial Statements.”

41

Notes to Consolidated Financial Statements

1.     Summary of Significant Accounting Policies

BASIS OF FINANCIAL STATEMENT PRESENTATION

The consolidated financial statements include the accounts of Century Bancorp, Inc. (the “Company”) and its wholly owned subsidiary, Century Bank and Trust Company (the “Bank”). The consolidated financial statements also include the accounts of the Bank’s wholly owned subsidiaries, Century Subsidiary Investments, Inc. (“CSII”), Century Subsidiary Investments, Inc. II (“CSII II”), Century Subsidiary Investments, Inc. III (“CSII III”) and Century Financial Services Inc. (“CFSI”). CSII, CSII II, and CSII III are engaged in buying, selling and holding investment securities. CFSI has the power to engage in financial agency, securities brokerage, and investment and financial advisory services and related securities credit. The Company also owns 100% of Century Bancorp Capital Trust II (“CBCT II”). The entity is an unconsolidated subsidiary of the Company.

All significant intercompany accounts and transactions have been eliminated in consolidation. The Company provides a full range of banking services to individual, business and municipal customers in Massachusetts. As a bank holding company, the Company is subject to the regulation and supervision of the Federal Reserve Board. The Bank, a state chartered financial institution, is subject to supervision and regulation by applicable state and federal banking agencies, including the Federal Reserve Board, the Federal Deposit Insurance Corporation (the “FDIC”) and the Commonwealth of Massachusetts Commissioner of Banks. The Bank is also subject to various requirements and restrictions under federal and state law, including requirements to maintain reserves against deposits, restrictions on the types and amounts of loans that may be granted and the interest that may be charged thereon, and limitations on the types of investments that may be made and the types of services that may be offered. Various consumer laws and regulations also affect the operations of the Bank. In addition to the impact of regulation, commercial banks are affected significantly by the actions of the Federal Reserve Board as it attempts to control the money supply and credit availability in order to influence the economy. All aspects of the Company’s business are highly competitive. The Company faces aggressive competition from other lending institutions and from numerous other providers of financial services. The Company has one reportable operating segment.

The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America and general practices within the banking industry. In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and revenues and expenses for the period. Actual results could differ from those estimates.

Material estimates that are susceptible to change in the near term relate to the allowance for loan losses. Management believes that the allowance for loan losses is adequate based on independent appraisals and review of other factors, including historical charge-off rates with additional allocations based on risk factors for each category and general economic factors. While management uses available information to recognize loan losses, future additions to the allowance for loan losses may be necessary based on changes in economic conditions. In addition, regulatory agencies periodically review the Company’s allowance for loan losses. Such agencies may require the Company to recognize additions to the allowance for loan losses based on their judgments about information available to them at the time of their examination. Certain reclassifications are made to prior-year amounts whenever necessary to conform with the current-year presentation.

FAIR VALUE MEASUREMENTS

The Company follows FASB ASC 820-10, Fair Value Measurements and Disclosures, (formerly SFAS 157, “Fair Value Measurements,”) which among other things, requires enhanced disclosures about assets and liabilities carried at fair value. ASC 820-10 establishes a hierarchal disclosure framework associated with the level of pricing observability utilized in measuring financial instruments at fair value. The three broad levels of the hierarchy are as follows:

Level I — Quoted prices are available in active markets for identical assets or liabilities as of the reported date. The type of financial instruments included in Level I are highly liquid cash instruments with quoted prices, such as G-7 government, agency securities, listed equities and money market securities, as well as listed derivative instruments.

42

Notes to Consolidated Financial Statements — (Continued)

Level II — Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reported date. The nature of these financial instruments includes cash instruments for which quoted prices are available but traded less frequently, derivative instruments whose fair value has been derived using a model where inputs to the model are directly observable in the market or can be derived principally from or corroborated by observable market data, and instruments that are fair valued using other financial instruments, the parameters of which can be directly observed. Instruments that are generally included in this category are corporate bonds and loans, mortgage whole loans, municipal bonds and over the counter (“OTC”) derivatives.

Level III — These instruments have little to no pricing observability as of the reported date. These financial instruments do not have two-way markets and are measured using management’s best estimate of fair value, where the inputs into the determination of fair value require significant management judgment or estimation. Instruments that are included in this category generally include certain commercial mortgage loans, certain private equity investments, distressed debt, and noninvestment grade residual interests in securitizations as well as certain highly structured OTC derivative contracts.

CASH AND CASH EQUIVALENTS

For purposes of reporting cash flows, cash equivalents include highly liquid assets with an original maturity of three months or less. Highly liquid assets include cash and due from banks, federal funds sold and certificates of deposit.

SHORT-TERM INVESTMENTS

As of December 31, 2013 and 2012, short-term investments include highly liquid certificates of deposit with original maturities of more than 90 days but less than one year.

INVESTMENT SECURITIES

Debt securities that the Company has the positive intent and ability to hold to maturity are classified as held-to-maturity and reported at amortized cost; debt and equity securities that are bought and held principally for the purpose of selling are classified as trading and reported at fair value, with unrealized gains and losses included in earnings; and debt and equity securities not classified as either held-to-maturity or trading are classified as available-for-sale and reported at fair value, with unrealized gains and losses excluded from earnings and reported as a separate component of stockholders’ equity, net of estimated related income taxes. The Company has no securities held for trading.

Premiums and discounts on investment securities are amortized or accreted into income by use of the level-yield method. If a decline in fair value below the amortized cost basis of an investment is judged to be other-than-temporary, the cost basis of the investment is written down to fair value. The total amount of the impairment charge is recognized in earnings, with an offset for the noncredit component, which is recognized as other comprehensive income. Gains and losses on the sale of investment securities are recognized on the trade date on a specific identification basis.

The transfer of a security between categories of investments shall be accounted for at fair value. For a debt security transferred into the held-to-maturity category from the available-for-sale category, the unrealized holding gain or loss at the date of the transfer shall continue to be reported in a separate component of shareholders’ equity but shall be amortized over the remaining life of the security as an adjustment of yield in a manner consistent with the amortization of any premium or discount. The amortization of an unrealized holding gain or loss reported in equity will offset or mitigate the effect on interest income of the amortization of the premium or discount for that held-to-maturity security.

FEDERAL HOME LOAN BANK STOCK

The Bank, as a member of the Federal Home Loan Bank of Boston (“FHLBB”) system, is required to maintain an investment in capital stock of the FHLBB. Based on redemption provisions, the stock has no quoted market

43

Notes to Consolidated Financial Statements — (Continued)

value and is carried at cost. At its discretion, the FHLBB may declare dividends on the stock. The Company reviews for impairment based on the ultimate recoverability of the cost basis of the stock. For the year ended December 31, 2013, the FHLBB reported preliminary net income of $212.3 million. The FHLBB also declared a dividend equal to an annual yield of 1.49%. As of December 31, 2013, no impairment has been recognized.

LOANS HELD FOR SALE

Loans originated and intended for sale in the secondary market are carried at the lower of cost or estimated fair value in the aggregate. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income.

LOANS

Interest on loans is recognized based on the daily principal amount outstanding. Accrual of interest is discontinued when loans become ninety days delinquent unless the collateral is sufficient to cover both principal and interest and the loan is in the process of collection. Past-due status is based on contractual terms of the loan. Loans, including impaired loans, on which the accrual of interest has been discontinued, are designated nonaccrual loans. When a loan is placed on nonaccrual, all income that has been accrued but remains unpaid is reversed against current period income, and all amortization of deferred loan costs and fees is discontinued. Nonaccrual loans may be returned to an accrual status when principal and interest payments are not delinquent or the risk characteristics of the loan have improved to the extent that there no longer exists a concern as to the collectibility of principal and interest. Income received on nonaccrual loans is either recorded in income or applied to the principal balance of the loan, depending on management’s evaluation as to the collectibility of principal.

Loan origination fees and related direct loan origination costs are offset, and the resulting net amount is deferred and amortized over the life of the related loans using the level-yield method. Prepayments are not initially considered when amortizing premiums and discounts.

The Bank measures impairment for impaired loans at either the fair value of the loan, the present value of the expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral if the loan is collateral dependent. This method applies to all loans, uncollateralized as well as collateralized, except large groups of smaller-balance homogeneous loans such as residential real estate and consumer loans that are collectively evaluated for impairment and loans that are measured at fair value. For collateral dependent loans, the amount of the recorded investment in a loan that exceeds the fair value of the collateral is charged-off against the allowance for loan losses in lieu of an allocation of a specific allowance when such an amount has been identified definitively as uncollectible. Management considers the payment status, net worth and earnings potential of the borrower, and the value and cash flow of the collateral as factors to determine if a loan will be paid in accordance with its contractual terms. Management does not set any minimum delay of payments as a factor in reviewing for impaired classification. Loans are charged-off when management believes that the collectibility of the loan’s principal is not probable. The specific factors that management considers in making the determination that the collectibility of the loan’s principal is not probable include the delinquency status of the loan, the fair value of the collateral, if secured, and, the financial strength of the borrower and/or guarantors. In addition, criteria for classification of a loan as in-substance foreclosure has been modified so that such classification need be made only when a lender is in possession of the collateral. The Bank measures the impairment of troubled debt restructurings using the pre-modification rate of interest.

TRANSFERS OF FINANCIAL ASSETS

Transfers of financial assets, typically residential mortgages and loan participations for the Company, are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets.

44

Notes to Consolidated Financial Statements — (Continued)

ACQUIRED LOANS

In accordance with FASB ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality (formerly Statement of Position (“SOP”) No. 03-3, “Accounting for Certain Loans or Debt Securities Acquired in a Transfer”) the Company reviews acquired loans for differences between contractual cash flows and cash flows expected to be collected from the Company’s initial investment in the acquired loans to determine if those differences are attributable, at least in part, to credit quality. If those differences are attributable to credit quality, the loan’s contractually required payments received in excess of the amount of its cash flows expected at acquisition, or nonaccretable discount, is not accreted into income. FASB ASC 310-30 requires that the Company recognize the excess of all cash flows expected at acquisition over the Company’s initial investment in the loan as interest income using the interest method over the term of the loan. This excess is referred to as accretable discount and is recorded as a reduction of the loan balance.

Loans which, at acquisition, do not have evidence of deterioration of credit quality since origination are outside the scope of FASB ASC 310-30. For such loans, the discount, if any, representing the excess of the amount of reasonably estimable and probable discounted future cash collections over the purchase price, is accreted into interest income using the interest method over the term of the loan. Prepayments are not considered in the calculation of accretion income. Additionally, the discount is not accreted on nonperforming loans.

When a loan is paid off, the excess of any cash received over the net investment is recorded as interest income. In addition to the amount of purchase discount that is recognized at that time, income may include interest owed by the borrower prior to the Company’s acquisition of the loan, interest collected if on nonperforming status, prepayment fees and other loan fees.

NONPERFORMING ASSETS

In addition to nonperforming loans, nonperforming assets include other real estate owned. Other real estate owned is comprised of properties acquired through foreclosure or acceptance of a deed in lieu of foreclosure. Other real estate owned is recorded initially at estimated fair value less costs to sell. When such assets are acquired, the excess of the loan balance over the estimated fair value of the asset is charged to the allowance for loan losses. An allowance for losses on other real estate owned is established by a charge to earnings when, upon periodic evaluation by management, further declines in the estimated fair value of properties have occurred. Such evaluations are based on an analysis of individual properties as well as a general assessment of current real estate market conditions. Holding costs and rental income on properties are included in current operations, while certain costs to improve such properties are capitalized. Gains and losses from the sale of other real estate owned are reflected in earnings when realized.

ALLOWANCE FOR LOAN LOSSES

The allowance for loan losses is based on management’s evaluation of the quality of the loan portfolio and is used to provide for losses resulting from loans that ultimately prove uncollectible. In determining the level of the allowance, periodic evaluations are made of the loan portfolio, which takes into account such factors as the character of the loans, loan status, financial posture of the borrowers, value of collateral securing the loans and other relevant information sufficient to reach an informed judgment. The allowance is increased by provisions charged to income and reduced by loan charge-offs, net of recoveries. Management maintains an allowance for loan losses to absorb losses inherent in the loan portfolio. The allowance is based on assessments of the probable estimated losses inherent in the loan portfolio. Management’s methodology for assessing the appropriateness of the allowance consists of several key elements, which include the formula allowance, specific allowances, if appropriate, for identified problem loans and the unallocated allowance. Arriving at an appropriate level of allowance for loan losses necessarily involves a high degree of judgment.

While management uses available information in establishing the allowance for loan losses, future adjustments to the allowance may be necessary if economic conditions differ substantially from the assumptions used in making the evaluations. Loans are charged-off in whole or in part when, in management’s opinion, collectibility is not probable. The specific factors that management considers in making the determination that

45

Notes to Consolidated Financial Statements — (Continued)

the collectibility of the loan’s principal is not probable include the delinquency status of the loan, the fair value of the collateral and the financial strength of the borrower and/or guarantors. For collateral dependent loans, the amount of the recorded investment in a loan that exceeds the fair value of the collateral is charged-off against the allowance for loan losses in lieu of an allocation of a specific allowance when such an amount has been identified definitively as uncollectible.

The formula allowance evaluates groups of loans to determine the allocation appropriate within each portfolio segment. Individual loans within the commercial and industrial, commercial real estate and real estate construction loan portfolio segments are assigned internal risk ratings to group them with other loans possessing similar risk characteristics. Changes in risk grades affect the amount of the formula allowance. Risk grades are determined by reviewing current collateral value, financial information, cash flow, payment history and other relevant facts surrounding the particular credit. Provisions for losses on the remaining commercial and commercial real estate loans are based on pools of similar loans using a combination of historical net loss experience and qualitative adjustments. For the residential real estate and consumer loan portfolios, the reserves are calculated by applying historical charge-off and recovery experience and qualitative adjustments to the current outstanding balance in each loan category. Loss factors are based on the Company’s historical net loss experience as well as regulatory guidelines.

Specific allowances for loan losses entail the assignment of allowance amounts to individual loans on the basis of loan impairment. Certain loans are evaluated individually and are judged to be impaired when management believes it is probable that the Company will not collect all the contractual interest and principal payments as scheduled in the loan agreement. Under this method, loans are selected for evaluation based upon a change in internal risk rating, occurrence of delinquency, loan classification or nonaccrual status. A specific allowance amount is allocated to an individual loan when such loan has been deemed impaired and when the amount of a probable loss is able to be estimated on the basis of: (a) present value of anticipated future cash flows, (b) the loan’s observable fair market price or (c) fair value of collateral if the loan is collateral dependent.

The formula allowance and specific allowances also include management’s evaluation of various conditions, including business and economic conditions, delinquency trends, charge-off experience and other quality factors.

An unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating allocated and general reserves in the portfolio.

Management has identified certain risk factors, which could impact the degree of loss sustained within the portfolio. These include: (a) market risk factors, such as the effects of economic variability on the entire portfolio and (b) unique portfolio risk factors that are inherent characteristics of the Company’s loan portfolio. Market risk factors may consist of changes to general economic and business conditions that may impact the Company’s loan portfolio customer base in terms of ability to repay and that may result in changes in value of underlying collateral. Unique portfolio risk factors may include industry concentrations and geographic concentrations or trends that may exacerbate losses resulting from economic events which the Company may not be able to fully diversify out of its portfolio.

The qualitative factors are determined based on the various risk characteristics of each loan segment. Risk characteristics relevant to each portfolio segment are as follows:

Residential real estate — The Company generally does not originate loans with a loan-to-value ratio greater than 80 percent. All loans in this segment are collateralized by owner-occupied residential real estate and repayment is dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment rates, will have an effect on the credit quality in the segment.

Commercial real estate — Loans in this segment are primarily income-producing properties. Also included are loans to educational institutions, hospitals and other non-profit organizations. The underlying cash flows generated by the properties are adversely impacted by a downturn in the economy as evidenced by increased vacancy rates, which in turn, will have an effect on the credit quality in this segment. Management monitors the cash flows of these loans.

46

Notes to Consolidated Financial Statements — (Continued)

Construction loans — Loans in this segment primarily include real estate development loans for which payment is derived from sale of the property as well as construction projects in which the property will ultimately be used by the borrower. Credit risk is affected by cost overruns, time to sell at an adequate price and market conditions.

Commercial and industrial loans — Loans in this segment are made to businesses and are generally secured by assets of the business. Repayment is expected from the cash flows of the business. A weakened economy, and resultant decreased consumer spending, will have an effect on the credit quality in this segment.

BANK PREMISES AND EQUIPMENT

Bank premises and equipment are stated at cost less accumulated depreciation and amortization. Land is stated at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the assets or the terms of leases, if shorter. It is general practice to charge the cost of maintenance and repairs to operations when incurred; major expenditures for improvements are capitalized and depreciated.

GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS

Goodwill represents the excess of the cost of an acquisition over the fair value of the net assets acquired. Goodwill is not subject to amortization. Identifiable intangible assets consist of core deposit intangibles and are assets resulting from acquisitions that are being amortized over their estimated useful lives. Goodwill and identifiable intangible assets are included in other assets on the consolidated balance sheets. The Company tests goodwill for impairment on an annual basis, or more often if events or circumstances indicate there may be impairment. Goodwill impairment testing is performed at the segment (or “reporting unit”) level. Currently, the Company’s goodwill is evaluated at the entity level as there is only one reporting unit. Goodwill is assigned to reporting units at the date the goodwill is initially recorded. Once goodwill has been assigned to reporting units, it no longer retains its association with a particular acquisition, and all of the activities within a reporting unit, whether acquired or organically grown, are available to support the value of the goodwill.

Goodwill impairment is evaluated by first assessing qualitative factors (events and circumstances) to determine whether it is more likely than not (meaning a likelihood of more than 50 percent) that the fair value of a reporting unit is less than its carrying amount. If, after considering all relevant events and circumstances, an entity determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the two-step impairment test will be unnecessary.

The first step, in the two-step impairment test, used to identify potential impairment, involves comparing each reporting unit’s fair value to its carrying value including goodwill. If the fair value of a reporting unit exceeds its carrying value, applicable goodwill is considered not to be impaired. If the carrying value exceeds fair value, there is an indication of impairment and the second step is performed to measure the amount of impairment.

SERVICING

The Company services mortgage loans for others. Mortgage servicing assets are recognized as separate assets when rights are acquired through purchase or through sale of financial assets. Fair value is determined using prices for similar assets with similar characteristics, when available, or based upon discounted cash flows using market-based assumptions. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, an inflation rate, ancillary income, prepayment speeds and default rates and losses. Capitalized servicing rights are reported in other assets and are amortized into loan servicing fee income in proportion to, and over the period of, the estimated future net servicing income of the underlying financial assets. Servicing assets are evaluated for impairment based upon the fair value of the rights as compared to amortized cost. Impairment is determined by stratifying rights by predominant risk characteristics, such as interest rates and terms. Impairment is recognized through a valuation allowance for an individual stratum, to the extent that fair value is less than the capitalized amount for the stratum. Changes in the valuation allowance are reported in loan servicing fee income.

47

Notes to Consolidated Financial Statements — (Continued)

STOCK OPTION ACCOUNTING

The Company follows the fair value recognition provisions of FASB ASC 718, Compensation – Stock Compensation (formerly SFAS 123R) for all share-based payments, using the modified-prospective transition method. The Company’s method of valuation for share-based awards granted utilizes the Black-Scholes option-pricing model, which was also previously used for the Company’s pro forma information required under FASB ASC 718. The Company will recognize compensation expense for its awards on a straight-line basis over the requisite service period for the entire award (straight-line attribution method), ensuring that the amount of compensation cost recognized at any date at least equals the portion of the grant-date fair value of the award that is vested at that time.

During 2000 and 2004, common stockholders of the Company approved stock option plans (the “Option Plans”) that provide for granting of options to purchase up to 150,000 shares of Class A common stock per plan. Under the Option Plans, all officers and key employees of the Company are eligible to receive nonqualified or incentive stock options to purchase shares of Class A common stock. The Option Plans are administered by the Compensation Committee of the Board of Directors, whose members are ineligible to participate in the Option Plans. Based on management’s recommendations, the Committee submits its recommendations to the Board of Directors as to persons to whom options are to be granted, the number of shares granted to each, the option price (which may not be less than 85% of the fair market value for nonqualified stock options, or the fair market value for incentive stock options, of the shares on the date of grant) and the time period over which the options are exercisable (not more than ten years from the date of grant). There were options to purchase an aggregate of 20,375 shares of Class A common stock exercisable at December 31, 2013.

On December 30, 2005, the Board of Directors approved the acceleration and immediate vesting of all unvested options with an exercise price of $31.60 or greater per share. As a consequence, options to purchase 23,950 shares of Class A common stock became exercisable immediately. The average of the high and low price at which the Class A common stock traded on December 30, 2005, the date of the acceleration and vesting, was $29.28 per share. In connection with this acceleration, the Board of Directors approved a technical amendment to each of the Option Plans to eliminate the possibility that the terms of any outstanding or future stock option would require a cash settlement on the occurrence of any circumstance outside the control of the Company.

The Company uses the fair value method to account for stock options. All of the Company’s stock options are vested, and there were no options granted during 2013 and 2012.

INCOME TAXES

The Company uses the asset and liability method in accounting for income taxes. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which temporary differences are expected to be recovered or settled. Under this method, the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

The Company accounts for uncertain tax positions in accordance with FASB ASC 740.

The Company classifies interest resulting from underpayment of income taxes as income tax expense in the first period the interest would begin accruing according to the provisions of the relevant tax law.

The Company classifies penalties resulting from underpayment of income taxes as income tax expense in the period for which the Company claims or expects to claim an uncertain tax position or in the period in which the Company’s judgment changes regarding an uncertain tax position.

TREASURY STOCK

Effective July 1, 2004, companies incorporated in Massachusetts became subject to Chapter 156D of the Massachusetts Business Corporation Act, provisions of which eliminate the concept of treasury stock and provide that shares reacquired by a company are to be treated as authorized but unissued shares.

48

Notes to Consolidated Financial Statements — (Continued)

PENSION

The Company provides pension benefits to its employees under a noncontributory, defined benefit plan, which is funded on a current basis in compliance with the requirements of the Employee Retirement Income Security Act of 1974 (“ERISA”) and recognizes costs over the estimated employee service period.

The Company also has a Supplemental Executive Insurance/Retirement Plan (“the Supplemental Plan”), which is limited to certain officers and employees of the Company. The Supplemental Plan is accrued on a current basis and recognizes costs over the estimated employee service period.

Executive officers of the Company or its subsidiaries who have at least one year of service may participate in the Supplemental Plan. The Supplemental Plan is voluntary. Individual life insurance policies, which are owned by the Company, are purchased covering the life of each participant.

REVISION OF EPS PRESENTATION

The Company has determined that although the Class A and Class B common stock have different dividend rates, the Company had not applied the two-class method when calculating earnings per share (“EPS”) separately for the Class A and Class B common stock. This resulted in immaterial revisions to previously reported basic EPS for Class A and Class B common stock and diluted EPS for the Class B common stock as summarized below:

For the year ended December 31, 2011:	As previously reported		As revised
Basic EPS – Class A common	$	3.01	$	3.68
Basic EPS – Class B common	$	3.01	$	1.84
Diluted EPS – Class A common	$	3.01	$	3.01
Diluted EPS – Class B common	$	3.01	$	1.84

RECENT ACCOUNTING DEVELOPMENTS

In February 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2013-01, Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities. This ASU clarifies the scope of offsetting disclosure requirements in ASU 2011-11, Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities. Under ASU 2013-01, the disclosure requirements would apply to derivative instruments accounted for in accordance with ASC 815, including bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending arrangements that are either offset on the balance sheet or subject to an enforceable master netting arrangement or similar agreement. Entities with other types of financial assets and financial liabilities subject to a master netting arrangement or similar agreement also are affected because these amendments make them no longer subject to the disclosure requirements in ASU No. 2011-11. Effective January 1, 2013, companies are required to disclose (a) gross amounts of recognized assets and liabilities; (b) gross amounts offset in the statement of financial position; (c) net amounts of assets and liabilities presented in the statement of financial position; (d) gross amount subject to enforceable master netting agreement not offset in the statements of financial position; and (e) net amounts after deducting (d) from (c). The disclosure should be presented in tabular format (unless another format is more appropriate) separately for assets and liabilities. The intent of the new disclosure is to enable users of financial statements to understand the effect of those arrangements on its financial position and to allow investors to better compare financial statements prepared under GAAP with financial statements prepared under International Financial Reporting Standards. The Company implemented the provisions of ASU 2011-11 as of January 1, 2013. The adoption of this pronouncement did not have a material effect on the consolidated financial statements.

In February 2013, the FASB issued ASU 2013-02, Comprehensive Income (Topic 220) Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. ASU 2013-02 requires an entity to

49

Notes to Consolidated Financial Statements — (Continued)

report the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net income or as a separate disclosure in the notes to the financial statements. The new standard is effective for annual periods beginning January 1, 2013, and interim periods within those annual periods. The Company has presented a separate footnote (Note 13) as a result of this pronouncement.

In July 2013, the FASB issued ASU 2013-10, Inclusion of the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) as a Benchmark Interest Rate for Hedge Accounting Purposes. This ASU amends ASC 815 to allow entities to use the Fed Funds Effective Swap Rate, in addition to U.S. Treasury rates and LIBOR, as a benchmark interest rate in accounting for fair value and cash flow hedges in the United States. This ASU also eliminates the provision from ASC 815-20-25-6 that prohibits the use of different benchmark rates for similar hedges except in rate and justifiable circumstances. This ASU is effective prospectively for qualifying new hedging relationship entered into on or after July 17, 2013, and for hedging relationship redesignated on or after that day. As of December 31, 2013, the Company did not have any fair value and cash flow hedges. The adoption of ASU No. 2013-10 did not have a material impact on the Company’s financial statements.

In July 2013, the FASB issued ASU No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. This ASU provides guidance on financial statement presentation of unrecognized tax benefits (“UTBs”) when a net operating loss (“NOL”) carryforward, a similar tax loss, or a tax credit carryforward exists. The FASB’s objective in issuing this ASU is to eliminate diversity in practice resulting from a lack of guidance on this topic in current U.S. GAAP. Under this ASU, an entity must present a UTB, or a portion of a UTB, in the financial statements as a reduction to a deferred tax asset (“DTA”) for an NOL carryforward, a similar tax loss, or a tax credit carryforward except when: (a) an NOL carryforward, a similar tax loss, or a tax credit carryforward is not available as of the reporting date under the governing tax law to settle taxes that would result from the disallowance of the tax position; (b) the entity does not intend to use the DTA for this purpose (provided that the tax law permits a choice). If either of these conditions exists, an entity should present a UTB in the financial statements as a liability and should not net the UTB with a DTA. New recurring disclosures are not required because the ASU does not affect the recognition or measurement of uncertain tax positions under ASC 740. This amendment does not affect the amounts public entities disclose in the tabular reconciliation of the total amounts of UTBs because the tabular reconciliation presents the gross amount of UTBs. This ASU is effective for fiscal years beginning after December 15, 2013, and interim periods within those years. The amendments should be applied to all UTBs that exist as of the effective date. Entities may choose to apply the amendments retrospectively to each prior reporting period presented. As of December 31, 2013, the Company did not have a UTB. Management will assess the applicability of this ASU after it becomes effective in the first quarter of 2014.

2.     Cash and Due from Banks

The Company is required to maintain a portion of its cash and due from banks as a reserve balance under the Federal Reserve Act. Such reserve is calculated based upon deposit levels and amounted to $0 at December 31, 2013, and $9,608,000 at December 31, 2012.

50

Notes to Consolidated Financial Statements — (Continued)

3.     Securities Available-for-Sale

	December 31, 2013								December 31, 2012
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
(dollars in thousands)
U.S. Treasury	$	1,997	$	1	$	—	$	1,998	$	2,000	$	4	$	—	$	2,004
U.S. Government Sponsored Enterprises		9,995		9		—		10,004		130,048		360		68		130,340
SBA Backed Securities		7,270		32		—		7,302		8,043		113		—		8,156
U.S. Government Agency and Sponsored Enterprises Mortgage-Backed Securities		404,103		588		1,501		403,190		1,212,953		20,816		412		1,233,357
Privately Issued Residential Mortgage-Backed Securities		2,294		6		23		2,277		2,938		31		22		2,947
Obligations Issued by States and Political Subdivisions		37,578		15		870		36,723		55,855		41		722		55,174
Other Debt Securities		2,300		—		125		2,175		2,300		—		47		2,253
Equity Securities		406		170		—		576		458		112		—		570
Total	$	465,943	$	821	$	2,519	$	464,245	$	1,414,595	$	21,477	$	1,271	$	1,434,801

Included in U.S. Government Sponsored Enterprise Securities and U.S. Government Agency and Sponsored Enterprise Mortgage-Backed Securities are securities at fair value pledged to secure public deposits and repurchase agreements amounting to $368,137,000 and $665,028,000 at December 31, 2013 and 2012, respectively. Also included in securities available-for-sale at fair value are securities pledged for borrowing at the Federal Home Loan Bank amounting to $12,214,000 and $220,313,000 at December 31, 2013 and 2012, respectively. The Company realized gains on sales of securities of $3,019,000, $1,843,000 and $1,940,000 from the proceeds of sales of available-for-sale securities of $224,045,000, $294,881,000 and $75,615,000 for the years ended December 31, 2013, 2012, and 2011, respectively.

Debt securities of Government Sponsored Enterprises primarily refer to debt securities of Fannie Mae and Freddie Mac.

The following table shows the estimated maturity distribution of the Company’s securities available-for-sale at December 31, 2013.

	Amortized Cost		Fair Value
(dollars in thousands)
Within one year	$	36,942	$	36,964
After one but within five years		180,676		180,540
After five but within ten years		238,822		238,018
More than ten years		7,597		6,771
Nonmaturing		1,906		1,952
Total	$	465,943	$	464,245

The weighted average remaining life of investment securities available-for-sale at December 31, 2013, was 5.1 years. The contractual maturities, which were used in the table above, of mortgage-backed securities, will differ from the actual maturities due to the ability of the issuers to prepay underlying obligations. Also, $415,692,000 of the securities are floating rate or adjustable rate and reprice prior to maturity.

51

Notes to Consolidated Financial Statements — (Continued)

The Company transferred $987,037,000 of securities with unrealized losses of $25,333,000 from available-for-sale to held-to-maturity during 2013.

As of December 31, 2013 and December 31, 2012, management concluded that the unrealized losses of its investment securities are temporary in nature since they are not related to the underlying credit quality of the issuers, and the Company does not intend to sell these debt securities and it is not more likely than not that it will be required to sell these debt securities before the anticipated recovery of its remaining amortized cost. In making its other-than-temporary impairment evaluation, the Company considered the fact that the principal and interest on these securities are from issuers that are investment grade. The change in the unrealized losses on the state and municipal securities and the nonagency mortgage-backed securities was primarily caused by changes in credit spreads and liquidity issues in the marketplace.

The unrealized loss on U.S. Government Sponsored Enterprises and U.S. Government Sponsored Enterprises Mortgage Backed Securities related primarily to interest rates and not credit quality and because the Company has the ability and intent to hold these investments until recovery of fair value, which may be maturity. The Company does not consider these investments to be other-than-temporarily impaired at December 31, 2013 and December 31, 2012.

In evaluating the underlying credit quality of a security, management considers several factors such as the credit rating of the obligor and the issuer, if applicable. Internal reviews of issuer financial statements are performed as deemed necessary. In the case of privately issued mortgage-backed securities, the performance of the underlying loans is analyzed as deemed necessary to determine the estimated future cash flows of the securities. Factors considered include the level of subordination, current and estimated future default rates, current and estimated prepayment rates, estimated loss severity rates, geographic concentrations and origination dates of underlying loans. In the case of marketable equity securities, the severity of the unrealized loss, the length of time the unrealized loss has existed, and the issuer’s financial performance are considered.

The following table shows the temporarily impaired securities of the Company’s available-for-sale portfolio at December 31, 2013. This table shows the unrealized market loss of securities that have been in a continuous unrealized loss position for 12 months or less and a continuous loss position for 12 months and longer. There are 47 and 7 securities that are temporarily impaired for less than 12 months and for 12 months or longer, respectively, out of a total of 234 holdings at December 31, 2013.

	December 31, 2013
	Less Than 12 Months				12 Months or Longer				Total
Temporarily Impaired Investments	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
(dollars in thousands)
U.S. Government Sponsored Enterprise	$	—	$	—	$	—	$	—	$	—	$	—
U.S. Government Agency and Sponsored Enterprise Mortgage-Backed Securities		289,709		1,352		24,557		149		314,266		1,501
Privately Issued Residential Mortgage-Backed Securities		1,486		23		—		—		1,486		23
Obligations Issued by States and Political Subdivisions		—		—		3,820		870		3,820		870
Other Debt Securities		—		—		1,376		125		1,376		125
Total temporarily impaired securities	$	291,195	$	1,375	$	29,753	$	1,144	$	320,948	$	2,519

The following table shows the temporarily impaired securities of the Company’s available-for-sale portfolio at December 31, 2012. This table shows the unrealized market loss of securities that have been in a continuous unrealized loss position for 12 months or less and a continuous loss position for 12 months and longer. There are 20 and 7 securities that are temporarily impaired for less than 12 months and for 12 months or longer, respectively, out of a total of 458 holdings at December 31, 2012.

52

Notes to Consolidated Financial Statements — (Continued)

	December 31, 2012
	Less Than 12 Months				12 Months or Longer				Total
Temporarily Impaired Investments	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
(dollars in thousands)
U.S. Government Sponsored Enterprise	$	34,967	$	68	$	—	$	—	$	34,967	$	68
U.S. Government Agency and Sponsored Enterprise Mortgage-Backed Securities		93,006		383		10,169		29		103,175		412
Privately Issued Residential Mortgage-Backed Securities		—		—		1,863		22		1,863		22
Obligations Issued by States and Political Subdivisions		—		—		3,963		722		3,963		722
Other Debt Securities		—		—		1,453		47		1,453		47
Total temporarily impaired securities	$	127,973	$	451	$	17,448	$	820	$	145,421	$	1,271

4.     Investment Securities Held-to-Maturity

	December 31, 2013								December 31, 2012
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
(dollars in thousands)
U.S. Government Sponsored Enterprise	$	291,779	$	185	$	5,043	$	286,921	$	17,747	$	19	$	8	$	17,758
U.S. Government Sponsored Enterprise Mortgage-Backed Securities		1,196,105		2,239		20,816		1,177,528		257,760		6,480		74		264,166
Total	$	1,487,884	$	2,424	$	25,859	$	1,464,449	$	275,507	$	6,499	$	82	$	281,924

Included in U.S. Government and Agency Securities are securities pledged to secure public deposits and repurchase agreements at fair value amounting to $732,144,000 and $149,366,000 at December 31, 2013, and 2012, respectively. Also included are securities pledged for borrowing at the Federal Home Loan Bank at fair value amounting to $510,060,000 and $103,617,000 at December 31, 2013, and 2012, respectively.

At December 31, 2013 and 2012, all mortgage-backed securities are obligations of U.S. Government Sponsored Enterprises. Government Sponsored Enterprises primarily refer to debt securities of Fannie Mae and Freddie Mac.

The following table shows the maturity distribution of the Company’s securities held-to-maturity at December 31, 2013.

	Amortized Cost		Fair Value
(dollars in thousands)
Within one year	$	5,689	$	5,672
After one but within five years		827,333		818,936
After five but within ten years		653,784		638,750
More than ten years		1,078		1,091
Total	$	1,487,884	$	1,464,449

53

Notes to Consolidated Financial Statements — (Continued)

The weighted average remaining life of investment securities held-to-maturity at December 31, 2013, was 5.2 years. Included in the weighted average remaining life calculation at December 31, 2013, were $224,663,000 of U.S. Government Sponsored Enterprises obligations that are callable at the discretion of the issuer. The actual maturities, which were used in the table above, of mortgage-backed securities, will differ from the contractual maturities due to the ability of the issuers to prepay underlying obligations.

The Company transferred $987,037,000 of securities with unrealized losses of $25,333,000 from available-for-sale to held-to-maturity during 2013.

As of December 31, 2013 and December 31, 2012, management concluded that the unrealized losses of its investment securities are temporary in nature since they are not related to the underlying credit quality of the issuers, and the Company does not intend to sell these debt securities and it is not more likely than not that it will be required to sell these debt securities before the anticipated recovery of their remaining amortized costs. In making its other-than-temporary impairment evaluation, the Company considered the fact that the principal and interest on these securities are from issuers that are investment grade.

The unrealized loss on U.S. Government Agency and Sponsored Enterprises Mortgage-Backed Securities related primarily to interest rates and not credit quality, and because the Company does not intend to sell any of these securities and it is not more likely than not that it will be required to sell these securities before the anticipated recovery of the remaining amortized cost, the Company does not consider these investments to be other-than-temporarily impaired at December 31, 2013 and December 31, 2012.

In evaluating the underlying credit quality of a security, management considers several factors such as the credit rating of the obligor and the issuer, if applicable. Internal reviews of issuer financial statements are performed as deemed necessary.

The following table shows the temporarily impaired securities of the Company’s held-to-maturity portfolio at December 31, 2013. This table shows the unrealized market loss of securities that have been in a continuous unrealized loss position for 12 months or less and a continuous loss position for 12 months and longer. There are 191 and 13 securities that are temporarily impaired for less than 12 months and for 12 months or longer, respectively, out of a total of 300 holdings at December 31, 2013.

	December 31, 2013
	Less Than 12 Months				12 Months or Longer				Total
Temporarily Impaired Investments	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
(dollars in thousands)
U.S. Government Sponsored Enterprises	$	232,535	$	5,043	$	—	$	—	$	232,535	$	5,043
U.S. Government Agency and Sponsored
Enterprise Mortgage-Backed Securities		931,180		18,654		80,362		2,162		1,011,542		20,816
Total temporarily impaired securities	$	1,163,715	$	23,697	$	80,362	$	2,162	$	1,244,077	$	25,859

The following table shows the temporarily impaired securities of the Company’s held-to-maturity portfolio at December 31, 2012. This table shows the unrealized market loss of securities that have been in a continuous unrealized loss position for 12 months or less and a continuous loss position for 12 months and longer. There are 3 and 1 securities that are temporarily impaired for less than 12 months and for 12 months or longer, respectively, out of a total of 96 holdings at December 31, 2012.

54

Notes to Consolidated Financial Statements — (Continued)

	December 31, 2012
	Less Than 12 Months				12 Months or Longer				Total
Temporarily Impaired Investments	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
(dollars in thousands)
U.S. Government Sponsored Enterprises	$	9,994	$	8	$	—	$	—	$	9,994	$	8
U.S. Government Agency and Sponsored
Enterprise Mortgage-Backed Securities		8,936		50		5,371		24		14,307		74
Total temporarily impaired securities	$	18,930	$	58	$	5,371	$	24	$	24,301	$	82

5.     Loans

The majority of the Bank’s lending activities are conducted in Massachusetts. The Bank originates construction, commercial and residential real estate loans, commercial and industrial loans, consumer, home equity and other loans for its portfolio.

The following summary shows the composition of the loan portfolio at the dates indicated.

December 31,	2013		2012
(dollars in thousands)
Construction and land development	$	33,058	$	38,618
Commercial and industrial		92,402		88,475
Commercial real estate		713,327		576,465
Residential real estate		286,041		281,857
Consumer		8,824		6,823
Home equity		130,277		118,923
Overdrafts		834		627
Total	$	1,264,763	$	1,111,788

At December 31, 2013, and December 31, 2012, loans were carried net of discounts of $454,000 and $498,000, respectively. Net deferred fees included in loans at December 31, 2013, and December 31, 2012, were $174,000 and $369,000, respectively.

The Company was servicing mortgage loans sold to others without recourse of approximately $109,301,000 and $26,786,000 at December 31, 2013, and December 31, 2012, respectively. The Company had no residential real estate loans held for sale at December 31, 2013 and had $9,378,000 at December 31, 2012.

As of December 31, 2013 and 2012, the Company’s recorded investment in impaired loans was $7,788,000 and $5,925,000, respectively. If an impaired loan is placed on nonaccrual, the loan may be returned to an accrual status when principal and interest payments are not delinquent and the risk characteristics have improved to the extent that there no longer exists a concern as to the collectibility of principal and interest. At December 31, 2013, there were $6,723,000 of impaired loans with a specific reserve of $1,019,000. At December 31, 2012, there were $5,223,000 of impaired loans with a specific reserve of $1,732,000.

Loans are designated as troubled debt restructures when a concession is made on a credit as a result of financial difficulties of the borrower. Typically, such concessions consist of a reduction in interest rate to a below-market rate, taking into account the credit quality of the note, or a deferment of payments, principal or interest, which materially alters the Bank’s position or significantly extends the note’s maturity date, such that the present value of cash flows to be received is materially less than those contractually established at the loan’s origination. Restructured loans are included in the impaired loan category.

55

Notes to Consolidated Financial Statements — (Continued)

The composition of nonaccrual loans and impaired loans is as follows:

December 31,	2013		2012		2011
(dollars in thousands)
Loans on nonaccrual	$	2,549	$	4,471	$	5,827
Loans 90 days past due and still accruing		—		—		18
Impaired loans on nonaccrual included above		1,819		2,878		3,468
Total recorded investment in impaired loans		7,788		5,925		8,102
Average recorded investment of impaired loans		6,776		7,043		10,284
Accruing troubled debt restructures		5,969		3,048		4,634
Interest income not recorded on nonaccrual loans according to their original terms		711		753		846
Interest income on nonaccrual loans actually recorded		—		—		—
Interest income recognized on impaired loans		161		180		155

Directors and officers of the Company and their associates are customers of, and have other transactions with, the Company in the normal course of business. All loans and commitments included in such transactions were made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with other persons and do not involve more than normal risk of collection or present other unfavorable features.

The following table shows the aggregate amount of loans to directors and officers of the Company and their associates during 2013.

Balance at December 31, 2012	Additions		Repayments and Deletions		Balance at December 31, 2013
(dollars in thousands)
$4,663	$	310	$	269	$	4,704

6.     Allowance for Loan Losses

The Company maintains an allowance for loan losses in an amount determined by management on the basis of the character of the loans, loan performance, financial condition of borrowers, the value of collateral securing loans and other relevant factors. The following table summarizes the changes in the Company’s allowance for loan losses for the years indicated.

An analysis of the allowance for loan losses for each of the three years ending December 31, 2013, 2012 and 2011 is as follows:

	2013			2012			2011
(dollars in thousands)
Allowance for loan losses, beginning of year	$	19,197		$	16,574		$	14,053
Loans charged-off		(1,813	)		(2,301	)		(2,824	)
Recoveries on loans previously charged-off		847			774			795
Net charge-offs		(966	)		(1,527	)		(2,029	)
Provision charged to expense		2,710			4,150			4,550
Allowance for loan losses, end of year	$	20,941		$	19,197		$	16,574

56

Notes to Consolidated Financial Statements — (Continued)

ALLOWANCE FOR LOAN LOSSES AND AMOUNT OF INVESTMENTS IN LOANS

Further information pertaining to the allowance for loan losses at December 31, 2013 follows:

	Construction and Land Development			Commercial and Industrial			Commercial Real Estate		Residential Real Estate		Consumer			Home Equity		Unallocated		Total
(dollars in thousands)
Allowance for Loan Losses:
Balance at December 31, 2012	$	3,041		$	3,118		$	9,065	$	1,994	$	333		$	886	$	760	$	19,197
Charge-offs		(1,000	)		(234	)		—		—		(579	)		—		—		(1,813	)
Recoveries		—			389			19		11		427			1		—		847
EAProvision		133			(284	)		2,134		1		251			72		403		2,710
Ending balance at December 31, 2013	$	2,174		$	2,989		$	11,218	$	2,006	$	432		$	959	$	1,163	$	20,941
Amount of allowance for loan losses for loans deemed to be impaired	$	12		$	367		$	417	$	129	$	—		$	94	$	—	$	1,019
Amount of allowance for loan losses for loans not deemed to be impaired	$	2,162		$	2,622		$	10,801	$	1,877	$	432		$	865	$	1,163	$	19,922
Loans:
Ending balance	$	33,058		$	92,402		$	713,327	$	286,041	$	9,658		$	130,277	$	—	$	1,264,763
Loans deemed to be impaired	$	608		$	1,367		$	4,520	$	1,199	$	—		$	94	$	—	$	7,788
Loans not deemed to be impaired	$	32,450		$	91,035		$	708,807	$	284,842	$	9,658		$	130,183	$	—	$	1,256,975

Further information pertaining to the allowance for loan losses at December 31, 2012 follows:

	Construction and Land Development		Commercial and Industrial			Commercial Real Estate		Residential Real Estate			Consumer			Home Equity			Unallocated			Total
(dollars in thousands)
Allowance for Loan Losses:
Balance at December 31, 2011	$	2,893	$	3,139		$	6,566	$	1,886		$	356		$	704		$	1,030		$	16,574
Charge-offs		—		(1,253	)		—		(192	)		(697	)		(159	)		—			(2,301	)
Recoveries		—		307			9		17			422			19			—			774
Provision		148		925			2,490		283			252			322			(270	)		4,150
Ending balance at December 31, 2012	$	3,041	$	3,118		$	9,065	$	1,994		$	333		$	886		$	760		$	19,197
Amount of allowance for loan losses or loans deemed to be impaired	$	1,000	$	104		$	415	$	117		$	—		$	96		$	—		$	1,732
Amount of allowance for loan losses for loans not deemed to be impaired	$	2,041	$	3,014		$	8,650	$	1,877		$	333		$	790		$	760		$	17,465
Loans:
Ending balance	$	38,618	$	88,475		$	576,465	$	281,857		$	7,450		$	118,923		$	—		$	1,111,788
Loans deemed to be impaired	$	1,500	$	1,282		$	2,281	$	766		$	—		$	96		$	—		$	5,925
Loans not deemed to be impaired	$	37,118	$	87,193		$	574,184	$	281,091		$	7,450		$	118,827		$	—		$	1,105,863

57

Notes to Consolidated Financial Statements — (Continued)

CREDIT QUALITY INFORMATION

The Company utilizes a six-grade internal loan rating system for commercial real estate, construction and commercial loans as follows:

Loans rated 1-3 (Pass) — Loans in this category are considered “pass” rated loans with low to average risk.

Loans rated 4 (Monitor) — These loans represent classified loans that management is closely monitoring for credit quality. These loans have had or may have minor credit quality deterioration as of December 31, 2013.

Loans rated 5 (Substandard) — Substandard loans represent classified loans that management is closely monitoring for credit quality. These loans have had more significant credit quality deterioration as of December 31, 2013.

Loans rated 6 (Doubtful) — Doubtful loans represent classified loans that management is closely monitoring for credit quality. These loans had more significant credit quality deterioration as of December 31, 2013, and are doubtful for full collection.

Impaired — Impaired loans represent classified loans that management is closely monitoring for credit quality. A loan is classified as impaired when it is probable that the Company will be unable to collect all amounts due.

The following table presents the Company’s loans by risk rating at December 31, 2013.

	Construction and Land Development		Commercial and Industrial		Commercial Real Estate
(dollars in thousands)
Grade:
1-3 (Pass)	$	25,138	$	90,563	$	707,461
4 (Monitor)		7,312		472		1,346
5 (Substandard)		—		—		—
6 (Doubtful)		—		—		—
Impaired		608		1,367		4,520
Total	$	33,058	$	92,402	$	713,327

The following table presents the Company’s loans by risk rating at December 31, 2012.

	Construction and Land Development		Commercial and Industrial		Commercial Real Estate
(dollars in thousands)
Grade:
1-3 (Pass)	$	29,719	$	86,587	$	569,760
4 (Monitor)		7,399		606		4,424
5 (Substandard)		—		—		—
6 (Doubtful)		—		—		—
Impaired		1,500		1,282		2,281
Total	$	38,618	$	88,475	$	576,465

58

Notes to Consolidated Financial Statements — (Continued)

The Company utilized payment performance as credit quality indicators for residential real state, consumer and overdrafts, and the home equity portfolio. The indicators are depicted in the table “aging of past-due loans,” below.

AGING OF PAST-DUE LOANS

Further information pertaining to the allowance for loan losses at December 31, 2013 follows:

	Accruing 30-89 Days Past Due		Non Accrual		Accruing Greater Than 90 Days		Total Past Due		Current Loans		Total
(dollars in thousands)
Construction and land development	$	—	$	500	$	—	$	500	$	32,558	$	33,058
Commercial and industrial		112		706		—		818		91,584		92,402
Commercial real estate		1,496		306		—		1,802		711,525		713,327
Residential real estate		2,232		1,034		—		3,266		282,775		286,041
Consumer and overdrafts		11		3		—		14		9,644		9,658
Home equity		1,710		—		—		1,710		128,567		130,277
Total	$	5,561	$	2,549	$	—	$	8,110	$	1,256,653	$	1,264,763

Further information pertaining to the allowance for loan losses at December 31, 2012 follows:

	Accruing 30-89 Days Past Due		Non Accrual		Accruing Greater Than 90 Days		Total Past Due		Current Loans		Total
(dollars in thousands)
Construction and land development	$	—	$	1,500	$	—	$	1,500	$	37,118	$	38,618
Commercial and industrial		1,256		676		—		1,932		86,543		88,475
Commercial real estate		3,450		674		—		4,124		572,341		576,465
Residential real estate		864		1,597		—		2,461		279,396		281,857
Consumer and overdrafts		32		24		—		56		7,394		7,450
Home equity		1,088		—		—		1,088		117,835		118,923
Total	$	6,690	$	4,471	$	—	$	11,161	$	1,100,627	$	1,111,788

IMPAIRED LOANS

A loan is impaired when, based on current information and events, it is probable that a creditor will be unable to collect all amounts due according to the contractual terms of the loan agreement. When a loan is impaired, the Company measures impairment based on the present value of expected future cash flows discounted at the loan’s effective interest rate, except that as a practical expedient, the Company measures impairment based on a loan’s observable market price or the fair value of the collateral if the loan is collateral dependent. Loans are charged-off when management believes that the collectibility of the loan’s principal is not probable. The specific factors that management considers in making the determination that the collectibility of the loan’s principal is not probable include; the delinquency status of the loan, the fair value of the collateral, if secured, and the financial strength of the borrower and/or guarantors. For collateral dependent loans, the amount of the recorded investment in a loan that exceeds the fair value of the collateral is charged-off against the allowance for loan losses in lieu of an allocation of a specific allowance amount when such an amount has been identified definitively as uncollectible. The Company’s policy for recognizing interest income on impaired loans is contained within Note 1 of the “Notes to Consolidated Financial Statements.”

59

Notes to Consolidated Financial Statements — (Continued)

The following is information pertaining to impaired loans at December 31, 2013:

	Carrying Value		Unpaid Balance Principal		Required Reserve		Average Carrying Value Recognized		Interest Income
(dollars in thousands)
With no required reserve recorded:
Construction and land development	$	500	$	3,292	$	—	$	—	$	—
Commercial and industrial		238		268		—		361		1
Commercial real estate		82		82		—		132		—
Residential real estate		246		259		—		169		—
Consumer		—		—		—		—		—
Home equity		—		—		—		—		—
Total	$	1,066	$	3,901	$	—	$	662	$	1
With required reserve recorded:
Construction and land development	$	108	$	108	$	12	$	1,371	$	1
Commercial and industrial		1,129		1,371		367		902		37
Commercial real estate		4,438		4,527		417		2,868		120
Residential real estate		953		1,035		129		878		2
Consumer		—		—		—		—		—
Home equity		94		94		94		95		—
Total	$	6,722	$	7,135	$	1,019	$	6,114	$	160
Total
Construction and land development	$	608	$	3,400	$	12	$	1,371	$	1
Commercial and industrial		1,367		1,639		367		1,263		38
Commercial real estate		4,520		4,609		417		3,000		120
Residential real estate		1,199		1,294		129		1,047		2
Consumer		—		—		—		—		—
Home equity		94		94		94		95		—
Total	$	7,788	$	11,036	$	1,019	$	6,776	$	161

60

Notes to Consolidated Financial Statements — (Continued)

The following is information pertaining to impaired loans at December 31, 2012:

	Carrying Value		Unpaid Balance Principal		Required Reserve		Average Carrying Value		Interest Income Recognized
(dollars in thousands)
With no required reserve recorded:
Construction and land development	$	—	$	—	$	—	$	346	$	—
Commercial and industrial		503		994		—		425		1
Commercial real estate		169		199		—		176		—
Residential real estate		30		31		—		124		—
Consumer		—		—		—		—		—
Home equity		—		—		—		—		—
Total	$	702	$	1,224	$	—	$	1,071	$	1
With required reserve recorded:
Construction and land development	$	1,500	$	3,292	$	1,000	$	1,154	$	—
Commercial and industrial		779		995		104		1,317		40
Commercial real estate		2,112		2,158		415		2,817		138
Residential real estate		736		736		117		640		1
Consumer		—		—		—		—		—
Home equity		96		96		96		44		—
Total	$	5,223	$	7,277	$	1,732	$	5,972	$	179
Total
Construction and land development	$	1,500	$	3,292	$	1,000	$	1,500	$	—
Commercial and industrial		1,282		1,989		104		1,742		41
Commercial real estate		2,281		2,357		415		2,993		138
Residential real estate		766		767		117		764		1
Consumer		—		—		—		—		—
Home equity		96		96		96		44		—
Total	$	5,925	$	8,501	$	1,732	$	7,043	$	180

Troubled Debt Restructurings are identified as a modification in which a concession was granted to a customer who was having financial difficulties. This concession may be below market rate, longer amortization/term, or a lower payment amount. The present value calculation of the modification did not result in an increase in the allowance for these loans beyond any previously established allocations.

61

Notes to Consolidated Financial Statements — (Continued)

The following is information pertaining to troubled debt restructurings occurring during the year ended December 31, 2013:

	Number of Contracts		Pre-modification Outstanding Recorded Investment		Post-modification Outstanding Recorded Investment
(dollars in thousands)
Construction and land development		1	$	108	$	108
Commercial and industrial		2		67		64
Commercial real estate		3		2,376		2,356
Residential real estate		1		285		162
Total		7	$	2,836	$	2,690

There was one commercial and industrial troubled debt restructuring, that subsequently defaulted amounting to $6,000 during 2013. The loans were modified for 2013, by reducing interest rates as well as extending term on the commercial and industrial loan. The financial impact of the modifications for performing commercial and industrial loans were $808 reduction in principal and $606 reduction in interest payments for the year ended December 31, 2013. The financial impact of the modifications for performing commercial real estate loans were $5,246 increase in principal and $23,227 reduction in interest payments for the year ended December 31, 2013. The financial impact of the modifications for performing construction and land development loans were $1,515 reduction in principal and $1,098 reduction in interest payments for the year ended December 31, 2013. The financial impact of the modifications for performing residential real estate loans were $4,704 reduction in principal and $4,104 reduction in interest payments for the year ended December 31, 2013.

The following is information pertaining to troubled debt restructurings occurring during the year ended December 31, 2012:

	Number of Contracts		Pre-modification Outstanding Recorded Investment		Post-modification Outstanding Recorded  Investment
(dollars in thousands)
Construction and land development		1	$	750	$	736
Commercial and industrial		1		6		6
Commercial real estate		1		98		96
Total		3	$	854	$	838

There were no troubled debt restructurings, that subsequently defaulted, during 2012. The loans were modified during 2012, for the commercial and industrial, and residential real estate loans, by reducing interest rates as well as extending the terms of the loans. The financial impact of the modification for the performing commercial and industrial loan was a $6,000 reduction in principal payments for the year ended December 31, 2012. The financial impact of the modification for performing residential real estate loan was an $8,000 reduction in interest payments for the year ended December 31, 2012.

62

Notes to Consolidated Financial Statements — (Continued)

7.     Bank Premises and Equipment

December 31,	2013			2012			Estimated Useful Life
(dollars in thousands)
Land	$	3,478		$	3,478			—
Bank premises		19,235			18,353			30-39 years
Furniture and equipment		31,965			31,319			3-10 years
Leasehold improvements		10,010			9,930			30-39 years or lease term
		64,688			63,080
Accumulated depreciation and amortization		(41,288	)		(39,181	)
Total	$	23,400		$	23,899

The Company and its subsidiaries are obligated under a number of non-cancelable operating leases for premises and equipment expiring in various years through 2026. Total lease expense approximated $2,094,000, $2,055,000 and $2,007,000 for the years ended December 31, 2013, 2012 and 2011, respectively. Rental income approximated $299,000, $329,000 and $455,000 in 2013, 2012 and 2011, respectively.

Future minimum rental commitments for non-cancelable operating leases with initial or remaining terms of one year or more at December 31, 2013, were as follows:

Year		Amount
(dollars in thousands)
	2014	$	2,070
	2015		1,824
	2016		1,675
	2017		1,235
	2018		1,035
	Thereafter		2,816
		$	10,655

8.     Goodwill and Identifiable Intangible Assets

At December 31, 2013 and 2012, the Company concluded that it is not more likely than not that fair value of the reporting unit is less than its carrying value, and goodwill is not considered to be impaired.

During the full year of 2011, the Company’s Class A common stock traded close to or above book value per share. Accordingly, at December 31, 2011, management measured for impairment utilizing the fair value of the reporting unit based on the recent stock price of the Company.

63

Notes to Consolidated Financial Statements — (Continued)

The changes in goodwill and identifiable intangible assets for the years ended December 31, 2013 and 2012 are shown in the table below.

Carrying Amount of Goodwill and Intangibles	Goodwill		Core Deposit Intangibles			Mortgage Servicing Rights			Total
(dollars in thousands)
Balance at December 31, 2011	$	2,714	$	120		$	123		$	2,957
Additions		—		—			48			48
Amortization Expense		—		(120	)		(34	)		(154	)
Balance at December 31, 2012	$	2,714	$	—			137		$	2,851
Additions		—		—			653			653
Amortization Expense		—		—			(87	)		(87	)
Balance at December 31, 2013	$	2,714	$	—			703		$	3,417

9.     Fair Value Measurements

The Company follows FASB ASC 820-10, Fair Value Measurements and Disclosures (formerly SFAS 157, “Fair Value Measurements”), which among other things, requires enhanced disclosures about assets and liabilities carried at fair value. ASC 820-10 establishes a hierarchal disclosure framework associated with the level of pricing observability utilized in measuring financial instruments at fair value. The three broad levels of the hierarchy are as follows:

Level I — Quoted prices are available in active markets for identical assets or liabilities as of the reported date. The type of financial instruments included in Level I are highly liquid cash instruments with quoted prices such as G-7 government, agency securities, listed equities and money market securities, as well as listed derivative instruments.

Level II — Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reported date. The nature of these financial instruments include cash instruments for which quoted prices are available but traded less frequently, derivative instruments whose fair value have been derived using a model where inputs to the model are directly observable in the market, or can be derived principally from or corroborated by observable market data, and instruments that are fair valued using other financial instruments, the parameters of which can be directly observed. Instruments which are generally included in this category are corporate bonds and loans, mortgage whole loans, municipal bonds and OTC derivatives.

Level III — These instruments have little to no pricing observability as of the reported date. These financial instruments do not have two-way markets and are measured using management’s best estimate of fair value, where the inputs into the determination of fair value require significant management judgment or estimation. Instruments that are included in this category generally include certain commercial mortgage loans, certain private equity investments, distressed debt, non-investment grade residual interests in securitizations, as well as certain highly structured OTC derivative contracts.

64

Notes to Consolidated Financial Statements — (Continued)

The results of the fair value hierarchy as of December 31, 2013, are as follows:

			Fair Value Measurements Using
	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)
(dollars in thousands)
Financial Instruments Measured at Fair Value on a Recurring Basis — Securities AFS
U.S. Treasury	$	1,998	$	—	$	1,998	$	—
U.S. Government Sponsored Enterprises		10,004		—		10,004		—
SBA Backed Securities		7,302		—		7,302		—
U.S. Government Agency and Sponsored Enterprises
Mortgage-Backed Securities		403,189		—		403,189		—
Privately Issued Residential Mortgage-Backed Securities		2,277		—		2,277		—
Obligations Issued by States and Political Subdivisions		36,723		—		416		36,307
Other Debt Securities		2,176		—		2,176		—
Equity Securities		576		286		—		290
Total	$	464,245	$	286	$	427,362	$	36,597
Financial Instruments Measured at Fair Value on a Non-recurring Basis
Impaired Loans	$	1,747	$	—	$	—	$	1,747

Impaired loan balances in the table above represent those collateral dependent loans where management has estimated the credit loss by comparing the loan’s carrying value against the expected realizable fair value of the collateral. Fair value is generally determined through a review process that includes independent appraisals, discounted cash flows, or other external assessments of the underlying collateral, which generally include various Level 3 inputs which are not identifiable. The Company discounts the fair values, as appropriate, based on management’s observations of the local real estate market for loans in this category.

Appraisals, discounted cash flows and real estate tax assessments are reviewed quarterly. There is no specific policy regarding how frequently appraisals will be updated. Adjustments are made to appraisals and real estate tax assessments based on management’s estimate of changes in real estate values. Within the past twelve months there have been no updated appraisals, however, all impaired loans have been reviewed during the past quarter using either a discounted cash flow analysis or other type of real estate tax assessment. The types of adjustments that are made to specific provisions (credits) relate to impaired loans recognized for 2013 for the estimated credit loss amounted to $48,000.

There were no transfers between level 1 and 2 for the year ended December 31, 2013. There were no liabilities measured at fair value on a recurring or nonrecurring basis during the year ended December 31, 2013.

65

Notes to Consolidated Financial Statements — (Continued)

The following table presents additional information about assets measured at fair value on a recurring and nonrecurring basis for which the Company has utilized Level 3 inputs to determine fair value (dollars in thousands) at December 31, 2013. Management continues to monitor the assumptions used to value the assets listed below.

Asset	Fair Value		Valuation Technique	Unobservable Input	Unobservable Input Value or Range
Securities AFS(1)	$	36,597	Discounted cash flow	Discount rate	0%-1%(2)
Impaired Loans		1,747	Appraisal of collateral(3)	Appraisal adjustments(4)	0%-25% discount

⁽¹⁾ Municipal securities generally have maturities of one year or less and, therefore, the amortized cost equates to the fair value.

⁽²⁾ Weighted averages.

⁽³⁾ Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable.

⁽⁴⁾ Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated expenses.

The changes in Level 3 securities for the year ended December 31, 2013 are as shown in the table below:

	Auction Rate Securities			Obligations Issued by States and Political Subdivisions			Equity Securities			Total
(dollars in thousands)
Balance at December 31, 2012	$	3,963		$	49,477		$	342		$	53,782
Purchases		—			50,012			—			50,012
Maturities		—			(66,976	)		(52	)		(67,028	)
Amortization		—			(26	)		—			(26	)
Change in fair value		(143	)		—			—			(143	)
Balance at December 31, 2013	$	3,820		$	32,487		$	290		$	36,597

The amortized cost of Level 3 securities was $37,463,000 with an unrealized loss of $866,000 at December 31, 2013. The securities in this category are generally equity investments, municipal securities with no readily determinable fair value or failed auction rate securities. Management evaluated the fair value of these securities based on an evaluation of the underlying issuer, prevailing rates and market liquidity.

66

Notes to Consolidated Financial Statements — (Continued)

The results of the fair value hierarchy as of December 31, 2012, are as follows:

	Fair Value Measurements Using
	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)
(dollars in thousands)
Financial Instruments Measured at Fair Value on a Recurring Basis — Securities AFS
U.S. Treasury	$	2,004	$	—	$	2,004	$	—
U.S. Government Sponsored Enterprises		130,340		—		130,340		—
SBA Backed Securities		8,156		—		8,156		—
U.S. Government Agency and Sponsored Enterprises Mortgage-Backed Securities		1,233,357		—		1,233,357		—
Privately Issued Residential Mortgage-Backed Securities		2,947		—		2,947		—
Privately Issued Commercial Mortgage-Backed Securities		—		—		—		—
Obligations Issued by States and Political Subdivisions		55,174		—		1,734		53,440
Other Debt Securities		2,253		—		2,253		—
Equity Securities		570		228		—		342
Total	$	1,434,801	$	228	$	1,380,791	$	53,782
Financial Instruments Measured at Fair Value on a Non-recurring Basis
Impaired Loans	$	3,587	$	—	$	—	$	3,587

Appraisals, discounted cash flows and real estate tax assessments are reviewed quarterly. There is no specific policy regarding how frequently appraisals will be updated. Adjustments are made to appraisals and real estate tax assessments based on management’s estimate of changes in real estate values. Within the past twelve months there have been no updated appraisals, however, all impaired loans have been reviewed during the past quarter using either a discounted cash flow analysis or other type of real estate tax assessment. Specific provisions relate to impaired loans recognized for 2012 for the estimated credit loss amounted to $1,909,000.

There were no transfers between level 1 and 2 for the year ended December 31, 2012. There were no liabilities measured at fair value on a recurring or nonrecurring basis during the year ended December 31, 2012.

The following table presents additional information about assets measured at fair value on a recurring and nonrecurring basis for which the Company has utilized Level 3 inputs to determine fair value (dollars in thousands) at December 31, 2012. Management continues to monitor the assumptions used to value the assets listed below.

Asset	Fair Value		Valuation Technique	Unobservable Input	Unobservable Input Unobservable Input Value or Range
Securities AFS(1)	$	53,782	Discounted cash flow	Discount rate	0%-1%(2)
Impaired Loans		3,587	Appraisal of collateral(3)	Appraisal adjustments(4)	0%-25% discount

67

Notes to Consolidated Financial Statements — (Continued)

⁽¹⁾ Municipal securities generally have maturities of one year or less and, therefore, the amortized cost equates to the fair value.

⁽²⁾  Weighted averages.

⁽³⁾  Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable.

⁽⁴⁾  Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated expenses.

The changes in Level 3 securities for the year ended December 31, 2012 are as shown in the table below:

	Auction Rate Securities		Obligations Issued by States and Political Subdivisions			Equity Securities			Total
(dollars in thousands)
Balance at December 31, 2011	$	3,725	$	14,772		$	417		$	18,914
Purchases		—		90,960			—			90,960
Maturities		—		(56,214	)		(75	)		(56,289	)
Amortization		—		(41	)		—			(41	)
Change in fair value		238		—			—			238
Balance at December 31, 2012	$	3,963	$	49,477		$	342		$	53,782

The amortized cost of Level 3 securities was $54,504,000 with an unrealized loss of $722,000 at December 31, 2012. The securities in this category are generally equity investments, municipal securities with no readily determinable fair value or failed auction rate securities. Management evaluated the fair value of these securities based on an evaluation of the underlying issuer, prevailing rates and market liquidity.

10.     Deposits

The following is a summary of remaining maturities or re-pricing of time deposits as of December 31,

	2013		Percent			2012		Percent
(dollars in thousands)
Within one year	$	248,758		65	%	$	299,456		71	%
Over one year to two years		41,533		11	%		67,918		16	%
Over two years to three years		48,357		13	%		19,834		5	%
Over three years to five years		43,576		11	%		32,775		8	%
Total	$	382,224		100	%	$	419,983		100	%

Time deposits of $100,000 or more totaled $259,665,000 and $287,048,000 in 2013 and 2012, respectively.

11.     Securities Sold Under Agreements to Repurchase

The following is a summary of securities sold under agreements to repurchase as of December 31,

	2013			2012			2011
(dollars in thousands)
Amount outstanding at December 31	$	214,440		$	191,390		$	143,320
Weighted average rate at December 31		0.18	%		0.17	%		0.24	%
Maximum amount outstanding at any month end	$	214,440		$	213,730		$	152,267
Daily average balance outstanding during the year	$	203,888		$	174,624		$	129,137
Weighted average rate during the year		0.18	%		0.21	%		0.29	%

68

Notes to Consolidated Financial Statements — (Continued)

Amounts outstanding at December 31, 2013, 2012 and 2011 carried maturity dates of the next business day. U.S. Government Sponsored Enterprise securities with a total amortized cost of $216,747,000, $187,995,000 and $140,891,000 were pledged as collateral and held by custodians to secure the agreements at December 31, 2013, 2012 and 2011, respectively. The approximate fair value of the collateral at those dates was $213,350,000, $191,704,000, and $143,212,000, respectively.

12.     Other Borrowed Funds and Subordinated Debentures

The following is a summary of other borrowed funds and subordinated debentures as of December 31,

	2013			2012			2011
(dollars in thousands)
Amount outstanding at December 31	$	291,227		$	231,227		$	280,226
Weighted average rate at December 31		3.04	%		3.54	%		2.85	%
Maximum amount outstanding at any month end	$	291,227		$	277,226		$	280,226
Daily average balance outstanding during the year	$	231,032		$	217,542		$	202,209
Weighted average rate during the year		3.73	%		3.82	%		3.85	%

FEDERAL HOME LOAN BANK BORROWINGS

Federal Home Loan Bank of Boston (“FHLBB”) borrowings are collateralized by a blanket pledge agreement on the Bank’s FHLBB stock, certain qualified investment securities, deposits at the FHLBB and residential mortgages held in the Bank’s portfolios. The Bank’s remaining term borrowing capacity at the FHLBB at December 31, 2013, was approximately $423,143,000. In addition, the Bank has a $14,500,000 line of credit with the FHLBB. A schedule of the maturity distribution of FHLBB advances with the weighted average interest rates is as follows:

	2013					2012					2011
December 31,	Amount		Weighted Average Rate			Amount		Weighted Average Rate			Amount		Weighted Average Rate
(dollars in thousands)
Within one year	$	53,000		0.40	%	$	46,000		1.86	%	$	81,500		0.42	%
Over one year to two years		19,500		2.42	%		17,500		3.01	%		23,500		3.34	%
Over two years to three years		55,000		3.07	%		19,500		2.42	%		17,500		3.01	%
Over three years to five years		77,000		3.05	%		90,000		3.33	%		74,500		2.90	%
Over five years		50,500		3.39	%		22,000		4.19	%		47,000		4.38	%
Total	$	255,000		2.52	%	$	195,000		2.96	%	$	244,000		2.41	%

Included in the table above are $35,000,000 of FHLBB advances for each of the years at December 31, 2013, 2012 and 2011, respectively, that are putable at the discretion of FHLBB. These put dates were not utilized in the table above.

During 2013, the Company restructured $14,500,000 of FHLBB advances. Prior to restructure, the weighted average rate on these advances was 3.16% and the weighted average remaining maturity was 12 months. Subsequent to restructure, the weighted average rate was 3.24% and the weighted average maturity was 68 months. The restructures were accounted for as modifications.

During 2011, the Company restructured $18,000,000 of FHLBB advances. Prior to restructure, the weighted average rate on these advances was 4.45% and the weighted average remaining maturity was 25 months. Subsequent to restructure, the weighted average rate was 3.50% and the weighted average maturity was 60 months. The restructures were accounted for as modifications.

69

Notes to Consolidated Financial Statements — (Continued)

SUBORDINATED DEBENTURES

Subordinated debentures totaled $36,083,000 at December 31, 2013 and 2012. In May 1998, the Company consummated the sale of a trust preferred securities offering, in which it issued $29,639,000 of subordinated debt securities due 2029 to its newly formed unconsolidated subsidiary Century Bancorp Capital Trust. Century Bancorp Capital Trust then issued 2,875,000 shares of Cumulative Trust Preferred Securities with a liquidation value of $10 per share. These securities pay dividends at an annualized rate of 8.30%. The Company redeemed through its subsidiary, Century Bancorp Capital Trust, its 8.30% Trust Preferred Securities on January 10, 2005.

In December 2004, the Company consummated the sale of a trust preferred securities offering, in which it issued $36,083,000 of subordinated debt securities due 2034 to its newly formed unconsolidated subsidiary Century Bancorp Capital Trust II.

Century Bancorp Capital Trust II then issued 35,000 shares of Cumulative Trust Preferred Securities with a liquidation value of $1,000 per share. These securities pay dividends at an annualized rate of 6.65% for the first ten years and then convert to the three-month LIBOR rate plus 1.87% for the remaining 20 years.

OTHER BORROWED FUNDS

There were no overnight federal funds purchased at December 31, 2013 and 2012.

The Bank also has an outstanding loan in the amount of $144,000 at December 31, 2013 and 2012, borrowed against the cash value of a whole life insurance policy for a key executive of the Bank.

13.     Reclassifications Out of Accumulated Other Comprehensive Income(a)

	Amount Reclassified from Accumulated Other Comprehensive Income
Details about Accumulated Other Comprehensive Income Components	Year ended December 31, 2013(a)			Year ended December 31, 2012(a)			Affected line item in the Statement Where Net Income is Presented
Unrealized gains and losses on available-for-sale securities	$	3,019		$	1,843		Net gains on sales of investments
		(1,179	)		(728	)	Provision for income taxes
	$	1,840		$	1,115		Net income
Accretion of unrealized losses transferred	$	3,077		$	—		Securities held-to-maturity
		(1,191	)		—		Provision for income taxes
	$	1,886		$	—		Net Income
Amortization of defined benefit pension items
Prior-service costs	$	(10	)	$	(10	)	Salaries and employee benefits(b)
Actuarial gains (losses)		(1,144	)		(1,071	)	Salaries and employee benefits(b)
Total before tax		(1,154	)		(1,081	)	Income before taxes
Tax (expense) or benefit		460			432		Provision for income taxes
Net of tax	$	(694	)	$	(649	)	Net income
Total reclassifications for the period	$	3,032		$	466		Net income

70

Notes to Consolidated Financial Statements — (Continued)

^(a)  Amounts in parentheses indicate debits to profit/loss.

^(b)  These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see employee benefits footnote (Note 17) for additional details).

14.     Earnings per share (“EPS”)

Class A and Class B shares participate equally in undistributed earnings. Under the Company’s Articles of Organization, the holders of Class A Common Stock are entitled to receive dividends per share equal to at least 200% of dividends paid, if any, from time to time, on each share of Class B Common Stock.

Diluted EPS includes the dilutive effect of common stock equivalents; basic EPS excludes all common stock equivalents. The only common stock equivalents for the Company are the stock options discussed below. The dilutive effect of these stock options for 2013, 2012 and 2011 was an increase of 1,155, 1,024 and 1,149 shares, respectively.

The following table is a reconciliation of basic EPS and diluted EPS:

Year Ended December 31,	2013		2012		2011
(in thousands except share and per share data)
BASIC EPS COMPUTATION
Numerator:
Net income, Class A	$	15,698	$	14,877	$	13,023
Net income, Class B		4,348		4,162		3,670
Denominator:
Weighted average shares outstanding, Class A		3,575,683		3,557,693		3,543,233
Weighted average shares outstanding, Class B		1,980,855		1,990,474		1,997,411
Basic EPS, Class A	$	4.39	$	4.18	$	3.68
Basic EPS, Class B		2.19		2.09		1.84
DILUTED EPS COMPUTATION
Numerator:
Net income, Class A	$	15,698	$	14,877	$	13,023
Net income, Class B		4,348		4,162		3,670
Total net income, for diluted EPS, Class A computation		20,046		19,039		16,693
Denominator:
Weighted average shares outstanding, basic, Class A		3,575,683		3,557,693		3,543,233
Weighted average shares outstanding, Class B		1,980,855		1,990,474		1,997,411
Dilutive effect of Class A stock options		1,155		1,024		1,150
Weighted average shares outstanding diluted, Class A		5,557,693		5,549,191		5,541,794
Weighted average shares outstanding, Class B		1,980,855		1,990,474		1,997,411
Diluted EPS, Class A	$	3.61	$	3.43	$	3.01
Diluted EPS, Class B		2.19		2.09		1.84

71

Notes to Consolidated Financial Statements — (Continued)

15.     Stockholders’ Equity

DIVIDENDS

Holders of the Class A common stock may not vote in the election of directors but may vote as a class to approve certain extraordinary corporate transactions. Holders of Class B common stock may vote in the election of directors. Class A common stockholders are entitled to receive dividends per share equal to at least 200% per share of that paid, if any, on each share of Class B common stock. Class A common stock is publicly traded. Class B common stock is not publicly traded; however, it can be converted on a per share basis to Class A common stock at any time at the option of the holder. Dividend payments by the Company are dependent in part on the dividends it receives from the Bank, which are subject to certain regulatory restrictions.

STOCK REPURCHASE PLAN

During 2013, the Board of Directors of the Company approved a reauthorization of the stock repurchase program. Under the program, the Company is reauthorized to repurchase up to 300,000, or less than 9%, of Century Bancorp Class A Common Stock outstanding. This vote supersedes the previous program voted by the Board of Directors during 2012, which also authorized the Company to repurchase up to 300,000, or less than 9%, of Century Bancorp Class A Common Stock. The stock buyback is authorized to take place from time-to-time, subject to prevailing market conditions. The purchases are made on the open market and are funded from available cash.

STOCK OPTION PLAN

During 2000 and 2004, common stockholders of the Company approved stock option plans (the “Option Plans”) that provide for granting of options for not more than 150,000 shares of Class A common stock per plan. Under the Option Plans, all officers and key employees of the Company are eligible to receive nonqualified and incentive stock options to purchase shares of Class A common stock. The Option Plans are administered by the Compensation Committee of the Board of Directors, whose members are ineligible to participate in the Option Plans. Based on management’s recommendations, the Committee submits its recommendations to the Board of Directors as to persons to whom options are to be granted, the number of shares granted to each, the option price (which may not be less than 85% of the fair market value for nonqualified stock options, or the fair market value for incentive stock options, of the shares on the date of grant) and the time period over which the options are exercisable (not more than ten years from the date of grant). There were 20,375 options exercisable at December 31, 2013.

Stock option activity under the plan is as follows:

	December 31, 2013					December 31, 2012					December 31, 2011
	Amount			Weighted Average Exercise Price		Amount			Weighted Average Exercise Price		Amount			Weighted Average Exercise Price
Shares under option:
Outstanding at beginning of year		23,350		$	31.17		36,062		$	28.90		38,712		$	28.36
Forfeited		(1,350	)		26.68		(450	)		22.50		(200	)		15.06
Exercised		(1,625	)		26.76		(12,262	)		24.82		(2,450	)		21.44
Outstanding at end of year		20,375		$	31.82		23,350		$	31.17		36,062		$	28.90
Exercisable at end of year		20,375		$	31.82		23,350		$	31.17		36,062		$	28.90
Available to be granted at end of year		224,884					223,534					223,084

72

Notes to Consolidated Financial Statements — (Continued)

At December 31, 2013, 2012 and 2011, the options outstanding have exercise prices between $15.06 and $31.83, and a weighted average remaining contractual life of one year for 2013 and two years for 2012 and 2011. The weighted average intrinsic value of options exercised for the period ended December 31, 2013, was $6.49 per share with an aggregate value of $10,548. The average intrinsic value of options exercisable at December 31, 2013, 2012 and 2011 had an aggregate value of $29,136, $41,549 and $49,145, respectively.

CAPITAL RATIOS

The Bank and the Company are subject to various regulatory requirements administered by federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Bank and Company’s financial statements. Under capital adequacy guidelines and regulatory framework for prompt corrective action, the Bank and Company must meet specific capital guidelines that involve quantitative measures of the Bank and Company’s assets and liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The Bank and Company’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.

Quantitative measures established by regulation to ensure capital adequacy require the Bank and the Company to maintain minimum amounts and ratios (set forth in the table below) of total and Tier 1 capital (as defined in the regulation) to risk-weighted assets (as defined) and Tier 1 capital (as defined) to average assets (as defined). Management believes, as of December 31, 2013, that the Bank and the Company meet all capital adequacy requirements to which they are subject.

As of December 31, 2013, the most recent notification from the FDIC categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Bank must maintain minimum total risk-based, Tier risk-based, and Tier 1 leverage ratios as set forth in the table below. There are no conditions or events since that notification that management believes would cause a change in the Bank’s categorization.

The Bank’s actual capital amounts and ratios are presented in the following table:

	Actual Amount		Ratio			For  Capital Adequacy Purposes					To Be Well Capitalized  Under Prompt Corrective Action Provisions
						Amount		Ratio			Amount		Ratio
As of December 31, 2013
Total Capital (to Risk-Weighted Assets)	$	230,038		13.91	%	$	132,338		8.00	%	$	165,422		10.00	%
Tier 1 Capital (to Risk-Weighted Assets)		209,360		12.66	%		66,169		4.00	%		99,253		6.00	%
Tier 1 Capital (to 4th Qtr. Average Assets)		209,360		6.00	%		139,467		4.00	%		174,334		5.00	%
As of December 31, 2012
Total Capital (to Risk-Weighted Assets)	$	206,464		14.15	%	$	116,726		8.00	%	$	145,907		10.00	%
Tier 1 Capital (to Risk-Weighted Assets)		188,226		12.90	%		58,363		4.00	%		87,544		6.00	%
Tier 1 Capital (to 4th Qtr. Average Assets)		188,226		6.11	%		123,202		4.00	%		154,002		5.00	%

73

Notes to Consolidated Financial Statements — (Continued)

The Company’s actual capital amounts and ratios are presented in the following table:

						For  Capital Adequacy Purposes					To Be Well Capitalized  Under Prompt Corrective Action Provisions
	Actual Amount		Ratio			Amount		Ratio			Amount		Ratio
As of December 31, 2013
Total Capital (to Risk-Weighted Assets)	$	247,761		14.92	%	$	132,870		8.00	%	$	166,088		10.00	%
Tier 1 Capital (to Risk-Weighted Assets)		227,000		13.67	%		66,435		4.00	%		99,653		6.00	%
Tier 1 Capital (to 4th Qtr. Average Assets)		227,000		6.50	%		139,769		4.00	%		174,711		5.00	%
As of December 31, 2012
Total Capital (to Risk-Weighted Assets)	$	227,945		15.59	%	$	116,976		8.00	%	$	146,220		10.00	%
Tier 1 Capital (to Risk-Weighted Assets)		209,668		14.34	%		58,488		4.00	%		87,732		6.00	%
Tier 1 Capital (to 4th Qtr. Average Assets)		209,668		6.80	%		123,377		4.00	%		154,221		5.00	%

16.     Income Taxes

The current and deferred components of income tax expense for the years ended December 31 are as follows:

	2013			2012			2011
(dollars in thousands)
Current expense:
Federal	$	3,520		$	3,181		$	2,198
State		416			315			309
Total current expense		3,936			3,496			2,507
Deferred (benefit) expense:
Federal		(2,564	)		(1,833	)		(961	)
State		(365	)		(271	)		8
Total deferred benefit		(2,929	)		(2,104	)		(953	)
Provision for income taxes	$	1,007		$	1,392		$	1,554

There were no penalties during 2011, 2012, or 2013. There was approximately $2,000 paid to the Internal Revenue Service for interest during 2012.

Income tax accounts included in other assets/liabilities at December 31 are as follows:

	2013		2012
(dollars in thousands)
Currently receivable	$	702	$	630
Deferred income tax asset, net		30,857		14,551
Total	$	31,559	$	15,181

74

Notes to Consolidated Financial Statements — (Continued)

Differences between income tax expense at the statutory federal income tax rate and total income tax expense are summarized as follows:

	2013			2012			2011
(dollars in thousands)
Federal income tax expense at statutory rates	$	7,158		$	6,946		$	6,204
State income tax, net of federal income tax benefit		34			29			209
Insurance income		(380	)		(396	)		(396	)
Effect of tax-exempt interest		(5,348	)		(4,628	)		(3,801	)
Net tax credit		(572	)		(633	)		(683	)
Other		115			74			21
Total	$	1,007		$	1,392		$	1,554
Effective tax rate		4.8	%		6.8	%		8.5	%

The following table sets forth the Company’s gross deferred income tax assets and gross deferred income tax liabilities at December 31:

	2013			2012
(dollars in thousands)
Deferred income tax assets:
Allowance for loan losses	$	9,199		$	8,103
Unrealized losses on securities transferred to held-to-maturity		8,590			—
Deferred compensation		6,515			5,643
Pension and SERP liability		4,880			8,621
AMT credit		3,164			1,908
Unrealized losses (gains) on securities available-for-sale		652			(7,875	)
Acquisition premium		438			541
Nonaccrual interest		136			151
Depreciation		109			(36	)
Investments write down		26			26
Deferred gain		—			11
Other		198			235
Gross deferred income tax asset		33,907			17,328
Deferred income tax liabilities:
Limited partnerships		(2,769	)		(2,722	)
Mortgage servicing rights		(281	)		(55	)
Gross deferred income tax liability		(3,050	)		(2,777	)
Deferred income tax asset net	$	30,857		$	14,551

Based on the Company’s historical and current pre-tax earnings, management believes it is more likely than not that the Company will realize the deferred income tax asset existing at December 31, 2013. Management believes that existing net deductible temporary differences which give rise to the deferred tax asset will reverse

75

Notes to Consolidated Financial Statements — (Continued)

during periods in which the Company generates net taxable income. In addition, gross deductible temporary differences are expected to reverse in periods during which offsetting gross taxable temporary differences are expected to reverse. Factors beyond management’s control, such as the general state of the economy and real estate values, can affect future levels of taxable income, and no assurance can be given that sufficient taxable income will be generated to fully absorb gross deductible temporary differences. The Company is in an Alternative Minimum Tax (“AMT”) credit position. The AMT credit is carried as a deferred asset and has an indefinite life. The Company has potential tax planning strategies available which support the deferred AMT credit and, at this time, no valuation allowance is needed.

The Company and its subsidiaries file a consolidated federal tax return. For the tax year beginning in 2009, the Commonwealth of Massachusetts requires a combined state tax return, except for security corporations, which file separate tax returns. The Company is subject to federal and state examinations for tax years after December 31, 2009.

17. Employee Benefits

The Company has a Qualified Defined Benefit Pension Plan (the “Plan”), which had been offered to all employees reaching minimum age and service requirements. In 2006, the Bank became a member of the Savings Bank Employees Retirement Association (“SBERA”) within which it then began maintaining the Qualified Defined Benefit Pension Plan. SBERA offers a common and collective trust as the underlying investment structure for its retirement plans. The target allocation mix for the common and collective trust portfolio calls for an equity-based investment deployment range of 40% to 64% of total portfolio assets. The remainder of the portfolio is allocated to fixed income securities with target range of 15% to 25% and other investments including global asset allocation and hedge funds from 20% to 36%.

The Trustees of SBERA, through its Investment Committee, select investment managers for the common and collective trust portfolio. A professional investment advisory firm is retained by the Investment Committee to provide allocation analysis, performance measurement and to assist with manager searches. The overall investment objective is to diversify investments across a spectrum of investment types to limit risks from large market swings. The Company closed the plan to employees hired after March 31, 2006.

The measurement date for the Plan is December 31 for each year. The benefits expected to be paid in each year from 2014 to 2018 are $1,092,000, $1,176,000, $1,247,000, $1,322,000, and $1,325,000, respectively. The aggregate benefits expected to be paid in the five years from 2019 to 2023 are $8,011,000. The Company plans to contribute $1,000,000 to the Plan in 2014.

The fair value of plan assets and major categories as of December 31, 2013, is as follows:

Asset Category	Percent			Total		Level 1		Level 2		Level 3
(dollars in thousands)
Collective funds		52.9	%	$	17,092	$	856	$	16,236	$	—
Equity securities		25.9	%		8,355		8,355		—		—
Mutual funds		13.1	%		4,250		3,832		418		—
Hedge funds		7.0	%		2,256		—		—		2,256
Short-term investments		1.1	%		369		249		120		—
		100.0	%	$	32,322	$	13,292	$	16,774	$	2,256

76

Notes to Consolidated Financial Statements — (Continued)

The fair value of plan assets and major categories as of December 31, 2012, is as follows:

Asset Category	Percent			Total		Level 1		Level 2		Level 3
(dollars in thousands)
Collective funds		52.5	%	$	12,593	$	767	$	11,826	$	—
Equity securities		24.6	%		5,892		5,892		—		—
Mutual funds		14.1	%		3,370		3,086		284		—
Hedge funds		7.0	%		1,691		—		—		1,691
Short-term investments		1.8	%		437		62		375		—
		100.0	%	$	23,983	$	9,807	$	12,485	$	1,691

LEVEL 1

The plan assets measured at fair value in Level 1 are based on quoted market prices in an active exchange market.

LEVEL 2

Plan assets measured at fair value in Level 2 are based on pricing models that consider standard input factors, such as observable market data, benchmark yields, interest rate volatilities, broker/dealer quotes, credit spreads and new issue data.

LEVEL 3

Plan assets measured at fair value in Level 3 are based on unobservable inputs, which includes SBERA’s assumptions and the best information available under the circumstance. Level 3 assets consist of hedge funds. The underlying assets are valued based upon quoted exchange prices, over-the-counter trades, bid/ask prices, relative value assessments based on market conditions, and other information, as available. Further adjustments may be made based on factors impacting liquidity.

The asset or liability’s fair value measurement level within fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. Below is a description of the valuation methodologies used for assets measured at fair value.

The Trust reports bonds and other obligations, short-term investments and equity securities at fair values based on published quotations, Collective funds and hedge funds (Funds) are valued in accordance with valuations provided by such Funds, which generally value marketable securities at the last reported sales price on the valuation date and other investments at fair value, as determined by each Fund’s manager.

The preceding methods described may produce a fair value calculation that may not be indicative of net realizable value or reflective of future values. Furthermore, although the Trust believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

77

Notes to Consolidated Financial Statements — (Continued)

The changes in Level 3 securities are shown in the table below:

Year Ended December 31,	2013		2012
(dollars in thousands)
Balance at beginning of year	$	1,691	$	1,522
Purchases		55		152
Actual return – assets still being held		510		17
Balance at end of year	$	2,256	$	1,691

The performance of the plan assets is dependent upon general market conditions and specific conditions related to the issuers of the underlying securities.

The Company has a Supplemental Executive Insurance/Retirement Plan (the Supplemental Plan), which is limited to certain officers and employees of the Company. The Supplemental Plan is voluntary and participants are required to contribute to its cost. Under the Supplemental Plan, each participant will receive a retirement benefit based on compensation and length of service. Life insurance policies, which are owned by the Company, are purchased covering the lives of each participant.

The benefits expected to be paid in each year from 2014 to 2018 are $1,108,000, $1,088,000, $1,515,000, $1,973,000 and $1,981,000, respectively. The aggregate benefits expected to be paid in the five years from 2019 to 2023 are $10,341,000.

	Defined Benefit Pension  Plan						Supplemental Insurance/ Retirement Plan
	2013			2012			2013			2012
(dollars in thousands)
Change projected in benefit obligation
Benefit obligation at beginning of year	$	31,910		$	28,784		$	25,835		$	21,097
Service cost		1,196			1,097			1,554			1,425
Interest cost		1,257			1,295			1,072			923
Actuarial (gain)/loss		(3,734	)		1,401			(1,916	)		3,482
Benefits paid		(750	)		(667	)		(1,043	)		(1,092	)
Projected benefit obligation at end of year	$	29,879		$	31,910		$	25,502		$	25,835
Change in plan assets
Fair value of plan assets at beginning of year	$	23,983		$	20,517
Actual (loss) return on plan assets		4,619			2,333
Employer contributions		4,470			1,800
Benefits paid		(750	)		(667	)
Fair value of plan assets at end of year	$	32,322		$	23,983
(Unfunded) Funded status	$	2,443		$	(7,927	)	$	(25,502	)	$	(25,835	)
Accumulated benefit obligation	$	29,747		$	31,773		$	22,278		$	22,181

78

Notes to Consolidated Financial Statements — (Continued)

	Defined Benefit Pension  Plan						Supplemental Insurance/ Retirement Plan
	2013			2012			2013			2012
(dollars in thousands)
Weighted-average assumptions as of December 31
Discount rate — Liability		5.00	%		4.00	%		5.00	%		4.00	%
Discount rate — Expense		4.00	%		4.50	%		4.00	%		4.50	%
Expected return on plan assets		8.00	%		8.00	%		NA			NA
Rate of compensation increase		4.00	%		4.00	%		4.00	%		4.00	%
Components of net periodic benefit cost
Service cost	$	1,196		$	1,097		$	1,554		$	1,425
Interest cost		1,257			1,295			1,072			923
Expected return on plan assets		(1,880	)		(1,641	)		—			—
Recognized prior service cost		(104	)		(104	)		114			114
Recognized net losses		630			735			514			336
Net periodic cost	$	1,099		$	1,382		$	3,254		$	2,798
Other changes in plan assets and benefit obligations recognized in other comprehensive income
Amortization of prior service cost	$	104		$	104		$	(114	)	$	(114	)
Net (gain) loss		(6,956	)		(25	)		(2,401	)		3,098
Total recognized in other comprehensive income		(6,852	)		79			(2,515	)		2,984
Total recognized in net periodic benefit cost and other comprehensive income	$	(5,753	)	$	1,461		$	739		$	5,782

	December 31, 2013									December 31, 2012
	Plan			Supplemental Plan			Total			Plan			Supplemental Plan			Total
(dollars in thousands)
Prior service cost	$	516		$	(991	)	$	(475	)	$	620		$	(1,105	)	$	(485	)
Net actuarial loss		(3,361	)		(7,901	)		(11,262	)		(10,317	)		(10,302	)		(20,619	)
Total	$	(2,845	)	$	(8,892	)	$	(11,737	)	$	(9,697	)	$	(11,407	)	$	(21,104	)

The following table summarizes the amounts included in Accumulated Other Comprehensive Loss at December 31, 2013, expected to be recognized as components of net periodic benefit cost in the next year:

	Plan			Supplemental Plan
Amortization of prior service cost to be recognized in 2014	$	(104	)	$	114
Amortization of loss to be recognized in 2014		12			355

Assumptions for the expected return on plan assets and discount rates in the Company’s Plan and Supplemental Plan are periodically reviewed. As part of the review, management in consultation with independent consulting actuaries performs an analysis of expected returns based on the plan’s asset allocation. This forecast reflects the Company’s and actuarial firm’s expected return on plan assets for each significant asset class or economic indicator. The range of returns developed relies on forecasts and on broad market historical

79

Notes to Consolidated Financial Statements — (Continued)

benchmarks for expected return, correlation and volatility for each asset class. Also, as a part of the review, the Company’s management in consultation with independent consulting actuaries performs an analysis of discount rates based on expected returns of high-grade fixed income debt securities.

The Company offers a 401(k) defined contribution plan for all employees reaching minimum age and service requirements. The plan is voluntary and employee contributions are matched by the Company at a rate of 33.3% for the first 6% of compensation contributed by each employee. The Company’s match totaled $322,000 for 2013, $308,000 for 2012 and $266,000 for 2011. Administrative costs associated with the plan are absorbed by the Company.

The Company has a cash incentive plan that is designed to reward our executives and officers for the achievement of annual financial performance goals of the Company as well as business line, department and individual performance. The plan supports the philosophy that management be measured for their performance as a team in the attainment of these goals. Discretionary bonus expense amounted to $1,313,000, $1,289,000 and $1,100,000 in 2013, 2012, and 2011, respectively.

The Company does not offer any postretirement programs other than pensions.

18.     Commitments and Contingencies

A number of legal claims against the Company arising in the normal course of business were outstanding at December 31, 2013. Management, after reviewing these claims with legal counsel, is of the opinion that their resolution will not have a material adverse effect on the Company’s consolidated financial position or results of operations.

19.     Financial Instruments with Off-Balance-Sheet Risk

The Company is party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers.

These financial instruments primarily include commitments to originate and sell loans, standby letters of credit, unused lines of credit and unadvanced portions of construction loans. The instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheet. The contract or notional amounts of those instruments reflect the extent of involvement the Company has in these particular classes of financial instruments.

The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for loan commitments, standby letters of credit and unadvanced portions of construction loans is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments. Financial instruments with off-balance-sheet risk at December 31 are as follows:

Contract or Notional Amount

	2013		2012
(dollars in thousands)
Financial instruments whose contract amount represents credit risk:
Commitments to originate 1–4 family mortgages	$	3,373	$	13,580
Standby and commercial letters of credit		7,930		8,411
Unused lines of credit		249,941		217,246
Unadvanced portions of construction loans		7,026		17,609
Unadvanced portions of other loans		17,750		4,872

80

Notes to Consolidated Financial Statements — (Continued)

Commitments to originate loans, unadvanced portions of construction loans, unused lines of credit and unused letters of credit are generally agreements to lend to a customer, provided there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the borrower.

Standby letters of credit are conditional commitments issued by the Company to guarantee the performance by a customer to a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers.

20.     Other Operating Expenses

Year ended December 31,	2013		2012		2011
(dollars in thousands)
Marketing	$	1,749	$	1,853	$	1,575
Software maintenance/amortization		1,417		1,256		951
Legal and audit		1,281		1,179		1,140
Contributions		673		1,074		479
Processing services		812		921		865
Consulting		874		890		796
Postage and delivery		939		877		773
Supplies		848		849		868
Telephone		719		750		742
Directors’ fees		373		330		309
Insurance		295		279		275
Core deposit intangible amortization		—		120		388
Other		1,500		1,230		1,280
Total	$	11,480	$	11,608	$	10,441

21.     Fair Values of Financial Instruments

The following methods and assumptions were used by the Company in estimating fair values of its financial instruments. Excluded from this disclosure are all non financial instruments. Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the Company.

The assumptions used below are expected to approximate those that market participants would use in valuing these financial instruments.

Fair value estimates are made at a specific point in time, based on available market information and judgments about the financial instrument, including estimates of timing, amount of expected future cash flows and the credit standing of the issuer. Such estimates do not consider the tax impact of the realization of unrealized gains or losses. In some cases, the fair value estimates cannot be substantiated by comparison to independent markets. In addition, the disclosed fair value may not be realized in the immediate settlement of the financial instrument. Care should be exercised in deriving conclusions about our business, its value or financial position based on the fair value information of financial instruments presented below.

81

Notes to Consolidated Financial Statements — (Continued)

SECURITIES HELD-TO-MATURITY

The fair values of these securities were based on quoted market prices, where available, as provided by third-party investment portfolio pricing vendors. If quoted market prices were not available, fair values provided by the vendors were based on quoted market prices of comparable instruments in active markets and/or based on a matrix pricing methodology which employs The Bond Market Association’s standard calculations for cash flow and price/yield analysis, live benchmark bond pricing and terms/condition data available from major pricing sources. Management regards the inputs and methods used by third party pricing vendors to be “Level 2 inputs and methods” as defined in the “fair value hierarchy” provided by FASB.

LOANS

For variable-rate loans, that reprice frequently and with no significant change in credit risk, fair values are based on carrying amounts. The fair value of other loans is estimated using discounted cash flow analysis, based on interest rates currently being offered for loans with similar terms to borrowers of similar credit quality. Incremental credit risk for nonperforming loans has been considered.

TIME DEPOSITS

The fair value of time deposits was estimated using a discounted cash flow approach that applies prevailing market interest rates for similar maturity instruments. The fair values of the Company’s time deposit liabilities do not take into consideration the value of the Company’s long-term relationships with depositors, which may have significant value.

OTHER BORROWED FUNDS

The fair value of other borrowed funds is based on the discounted value of contractual cash flows. The discount rate used is estimated based on the rates currently offered for other borrowed funds of similar remaining maturities.

SUBORDINATED DEBENTURES

The fair value of subordinated debentures is based on the discounted value of contractual cash flows. The discount rate used is estimated based on the rates currently offered for other subordinated debentures of similar remaining maturities.

82

Notes to Consolidated Financial Statements — (Continued)

The following presents (in thousands) the carrying amount, estimated fair value, and placement in the fair value hierarchy of the Company’s financial instruments as of December 31, 2013 and December 31, 2012. This table excludes financial instruments for which the carrying amount approximates fair value. Financial assets for which the fair value approximates carrying value include cash and cash equivalents, short-term investments, FHLBB stock and accrued interest receivable. Financial liabilities for which the fair value approximates carrying value include non-maturity deposits, short-term borrowings and accrued interest payable.

	Carrying Amount		Estimated Fair Value		Level 1 Inputs		Fair Value Measurements Level 2 Inputs		Level 3 Inputs
(dollars in thousands)
December 31, 2013
Financial assets:
Securities held-to-maturity	$	1,487,884	$	1,464,449	$	—	$	1,464,449	$	—
Loans(1)		1,243,822		1,214,192		—		—		1,214,192
Financial liabilities:
Time deposits		382,224		386,742		—		386,742		—
Other borrowed funds		255,144		254,736		—		254,736		—
Subordinated debentures		36,083		39,503		—		—		39,503
December 31, 2012
Financial assets:
Securities held-to-maturity	$	275,507	$	281,924	$	—	$	281,924	$	—
Loans(1)		1,092,591		1,124,716		—		—		1,124,716
Financial liabilities:
Time deposits		419,983		424,253		—		424,253		—
Other borrowed funds		195,144		205,481		—		205,481		—
Subordinated debentures		36,083		43,423		—		—		43,423

(1) Comprised of loans (including collateral dependent impaired loans), net of deferred loan costs and the allowance for loan losses.

LIMITATIONS

Fair value estimates are made at a specific point in time, based on relevant market information and information about the type of financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Bank’s entire holdings of a particular financial instrument. Because no active market exists for some of the Bank’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, cash flows, current economic conditions, risk characteristics and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions and changes in the loan, debt and interest rate markets could significantly affect the estimates. Further, the income tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on the fair value estimates and have not been considered.

83

Notes to Consolidated Financial Statements — (Continued)

22.     Quarterly Results of Operations (unaudited)

2013 Quarters	Fourth		Third		Second		First
(in thousands, except share data)
Interest income	$	20,947	$	20,549	$	19,132	$	19,137
Interest expense		4,842		4,751		4,620		4,592
Net interest income		16,105		15,798		14,512		14,545
Provision for loan losses		460		750		750		750
Net interest income after provision for loan losses		15,645		15,048		13,762		13,795
Other operating income		4,186		4,774		5,221		4,434
Operating expenses		14,690		13,995		13,662		13,465
Income before income taxes		5,141		5,827		5,321		4,764
Provision for income taxes		116		308		295		288
Net income	$	5,025	$	5,519	$	5,026	$	4,476
Share data:
Average shares outstanding, basic
Class A		3,580,404		3,578,400		3,574,379		3,569,546
Class B		1,976,180		1,978,180		1,982,180		1,986,880
Average shares outstanding, diluted
Class A		5,557,419		5,558,031		5,557,354		5,557,365
Class B		1,976,180		1,978,180		1,982,180		1,986,880
Earnings per share, basic
Class A	$	1.10	$	1.21	$	1.10	$	0.98
Class B	$	0.55	$	0.60	$	0.55	$	0.49
Earnings per share, diluted
Class A	$	0.90	$	0.99	$	0.90	$	0.81
Class B	$	0.55	$	0.60	$	0.55	$	0.49

84

Notes to Consolidated Financial Statements — (Continued)

2012 Quarters	Fourth		Third		Second		First
(in thousands, except share data)
Interest income	$	19,738	$	22,079	$	20,312	$	19,365
Interest expense		4,795		4,859		4,923		4,963
Net interest income		14,943		17,220		15,389		14,402
Provision for loan losses		900		1,250		900		1,100
Net interest income after provision for loan losses		14,043		15,970		14,489		13,302
Other operating income		4,153		4,105		3,988		3,619
Operating expenses		13,279		13,708		13,451		12,800
Income before income taxes		4,917		6,367		5,026		4,121
Provision for income taxes		139		685		255		313
Net income	$	4,778	$	5,682	$	4,771	$	3,808
Share data:
Average shares outstanding, basic
Class A		3,564,145		3,559,125		3,556,474		3,550,993
Class B		1,986,880		1,989,380		1,991,880		1,993,755
Average shares outstanding, diluted
Class A		5,552,121		5,549,810		5,548,830		5,545,711
Class B		1,986,880		1,989,380		1,991,880		1,993,755
Earnings per share, basic
Class A	$	1.05	$	1.25	$	1.05	$	0.84
Class B	$	0.52	$	0.62	$	0.52	$	0.42
Earnings per share, diluted
Class A	$	0.86	$	1.02	$	0.86	$	0.69
Class B	$	0.52	$	0.62	$	0.52	$	0.42

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Notes to Consolidated Financial Statements — (Continued)

23.     Parent Company Financial Statements

The balance sheets of Century Bancorp, Inc. (“Parent Company”) as of December 31, 2013 and 2012 and the statements of income and cash flows for each of the years in the three-year period ended December 31, 2013, are presented below. The statements of changes in stockholders’ equity are identical to the consolidated statements of changes in stockholders’ equity and are therefore not presented here.

BALANCE SHEETS

December 31,	2013		2012
(dollars in thousands)
ASSETS:
Cash	$	12,245	$	19,536
Investment in subsidiary, at equity		193,783		193,499
Other assets		6,634		3,145
Total assets	$	212,662	$	216,180
LIABILITIES AND STOCKHOLDERS’ EQUITY:
Liabilities	$	107	$	107
Subordinated debentures		36,083		36,083
Stockholders’ equity		176,472		179,990
Total liabilities and stockholders’ equity	$	212,662	$	216,180

STATEMENTS OF INCOME

Year Ended December 31,	2013			2012			2011
(dollars in thousands)
Income:
Interest income from deposits in bank	$	28		$	33		$	100
Other income		72			72			72
Total income		100			105			172
Interest expense		2,400			2,400			2,400
Operating expenses		208			198			178
Income before income taxes and equity in undistributed income of subsidiary		(2,508	)		(2,493	)		(2,406	)
Benefit from income taxes		(853	)		(848	)		(818	)
Income before equity in undistributed income of subsidiary		(1,655	)		(1,645	)		(1,588	)
Equity in undistributed income of subsidiary		21,701			20,684			18,281
Net income	$	20,046		$	19,039		$	16,693

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Notes to Consolidated Financial Statements — (Continued)

STATEMENTS OF CASH FLOWS

December 31,	2013			2012			2011
(dollars in thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	20,046		$	19,039		$	16,693
Adjustments to reconcile net income to net cash provided by operating activities
Undistributed income of subsidiary		(21,701	)		(20,684	)		(18,281	)
Depreciation and amortization		12			12			12
Increase in other assets		(3,500	)		(416	)		(182	)
Net cash (used in) operating activities		(5,143	)		(2,049	)		(1,758	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from the exercise of stock options		43			304			53
Cash dividends paid		(2,191	)		(2,186	)		(2,180	)
Net cash used in financing activities		(2,148	)		(1,882	)		(2,127	)
Net (decrease) in cash		(7,291	)		(3,931	)		(3,885	)
Cash at beginning of year		19,536			23,467			27,352
Cash at end of year	$	12,245		$	19,536		$	23,467

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CENTURY BANCORP, INC.

Report of Independent Registered Public Accounting Firm

KPMG LLP

Independent Registered Public Accounting Firm

Two Financial Center

60 South Street

Boston, Massachusetts 02111-2759

The Board of Directors and Stockholders

Century Bancorp, Inc.:

We have audited the accompanying consolidated balance sheets of Century Bancorp, Inc. and its subsidiary as of December 31, 2013 and 2012 and the related consolidated statements of income, comprehensive income, changes in stockholders’ equity, and cash flows for each of the years in the three-year period ended December 31, 2013. These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Century Bancorp, Inc. and its subsidiary as of December 31, 2013 and 2012 and the results of their operations and their cash flows for each of the years in the three-year period ended December 31, 2013, in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), Century Bancorp, Inc.’s internal control over financial reporting as of December 31, 2013, based on criteria established in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) and our report dated February 20, 2014, expressed an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting.

Boston, Massachusetts

February 20, 2014

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CENTURY BANCORP, INC.

Report of Independent Registered Public Accounting Firm

KPMG LLP

Independent Registered Public Accounting Firm

Two Financial Center

60 South Street

Boston, Massachusetts 02111-2759

The Board of Directors and Stockholders

Century Bancorp, Inc.:

We have audited Century Bancorp, Inc.’s internal control over financial reporting as of December 31, 2013, based on criteria established in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Century Bancorp, Inc.’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying “Management’s Report on Internal Control Over Financial Reporting.” Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate.

In our opinion, Century Bancorp, Inc. maintained, in all material respects, effective internal control over financial reporting as of December 31, 2013, based on criteria established in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheets of Century Bancorp, Inc. as of December 31, 2013 and 2012 and the related consolidated statements of income, comprehensive income, changes in stockholders’ equity, and cash flows for each of the years in the three-year period ended December 31, 2013, and our report dated February 20, 2014, expressed an unqualified opinion on those consolidated financial statements.

Boston, Massachusetts

February 20, 2014

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CENTURY BANCORP, INC.

Management’s Report on Internal Control Over Financial Reporting

CENTURY BANCORP, INC.

400 Mystic Avenue

Medford, Massachusetts 02155

We, together with the other members of Century Bancorp, Inc. and our subsidiary (the “Company”), are responsible for establishing and maintaining adequate internal control over financial reporting. The Company’s internal control system was designed to provide reasonable assurance to the Company’s management and board of directors regarding the preparation and fair presentation of published financial statements.

All internal control systems, no matter how well designed, have inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation.

The Company’s management assessed the effectiveness of the Company’s internal control over financial reporting as of December 31, 2013. In making this assessment, it used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) in Internal Control – Integrated Framework. Based on our assessment, we believe that, as of December 31, 2013, the Company’s internal control over financial reporting is effective based on those criteria.

The Company’s independent registered public accounting firm has issued an audit report on the effectiveness of the Company’s internal control over financial reporting. Their report appears on page 89.

Barry R. Sloane	William P. Hornby, CPA
President & CEO	Chief Financial Officer & Treasurer
February 20, 2014

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PART III

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

The directors of the Company and their ages are as follows:

Name	Age		Position
George R. Baldwin		70	Director, Century Bancorp, Inc., and Century Bank and Trust Company
Stephen R. Delinsky		69	Director, Century Bancorp, Inc., and Century Bank and Trust Company
Marshall I. Goldman, Ph.D.		83	Director, Century Bancorp, Inc., and Century Bank and Trust Company
Russell B. Higley, Esquire		74	Director, Century Bancorp, Inc., and Century Bank and Trust Company
Jackie Jenkins-Scott		64	Director, Century Bancorp, Inc., and Century Bank and Trust Company
Linda Sloane Kay		52	Director, Century Bancorp, Inc.; Director and Executive Vice President, Century Bank and Trust Company
Fraser Lemley		73	Director, Century Bancorp, Inc., and Century Bank and Trust Company
Joseph P. Mercurio		65	Director, Century Bancorp, Inc., and Century Bank and Trust Company
Joseph J. Senna, Esquire		74	Director, Century Bancorp, Inc., and Century Bank and Trust Company
Barry R. Sloane		58	Director, President and Chief Executive Officer, Century Bancorp, Inc.; Director, President and Chief Executive Officer, CenturyBank and Trust Company
Marshall M. Sloane		87	Chairman of the Board, Century Bancorp, Inc. and Century Bank and Trust Company
Stephanie Sonnabend		60	Director, Century Bancorp, Inc., and Century Bank and Trust Company
George F. Swansburg		71	Director, Century Bancorp, Inc., and Century Bank and Trust Company
Jon Westling		71	Director, Century Bancorp, Inc., and Century Bank and Trust Company

Mr. Baldwin became a director of the Company in 1996. He has been a director of Century Bank and Trust Company since 1995. Mr. Baldwin is President and CEO of G. Baldwin & Co., a financial service firm. He was formerly CEO, Owner and Director of Kaler Carney Liffler, a multi-state regional insurance agency; and subsequently he became Chairman of the New England area of Arthur J. Gallagher & Co., America’s third largest insurance broker. Mr. Baldwin’s extensive three-decade background in banking and insurance is relevant to Century’s insurance and financial customers and qualifies him to continue to serve as a director of the Company.

Mr. Delinsky became a director of the Company and of Century Bank in 2013. He is an attorney with the law firm of Clark, Hunt, Ahearn & Embry. Prior to that, Mr. Delinsky was an attorney at the law firm of Eckert Seamans Cherin & Mellott, LLC. Mr. Delinsky’s experience as an attorney, and expertise in civil and criminal trial experience in state and federal courts, has qualified him to serve as director of the Company.

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Dr. Goldman has been a director of the Company since its organization in 1972. He was also a founding director of Century Bank and Trust Company in 1969. He is a Professor Emeritus of Economics at Wellesley College and Senior Scholar of the Davis Center for Russian Studies at Harvard University. Dr. Goldman is also a Trustee of Northeast Investors Trust. Dr. Goldman’s experience as a professor and expertise in economics has qualified him to serve as director of the Company. Also, his tenure and experience as a director of the Company has qualified him to continue to serve.

Mr. Higley became a director of the Company in 1996. He has been a director of Century Bank and Trust Company since 1986. Mr. Higley is an attorney in private practice. Mr. Higley’s experience as an attorney and expertise in the real estate industry, which is relevant to real estate customers of the Company, has qualified him to serve as director of the Company. Also, his tenure and experience as a director of the Company has qualified him to continue to serve.

Ms. Jenkins-Scott became a director of the Company and of Century Bank and Trust Company in 2006. Ms. Jenkins-Scott is President of Boston’s Wheelock College. Ms. Jenkins-Scott’s experience as President of a college and expertise in the educational field as well as President and CEO of a non-profit entity, which is relevant to certain customer relationships of the Company, has qualified her to serve as director of the Company. Also, her tenure and experience as a director of the Company has qualified her to continue to serve.

Ms. Kay became a director of the Company in 2005. Ms. Kay joined Century Bank and Trust Company in 1983 as Assistant Vice President of Marketing and currently serves as Executive Vice President. Ms. Kay’s experience in business development, customer relationships and tenure at Century Bank and Trust Company has qualified her to serve as director of the Company.

Mr. Lemley became a director of the Company in 1996. He has been a director of Century Bank and Trust Company since 1988. Mr. Lemley is Chairman of the Board and CEO of Sentry Auto Group. Mr. Lemley’s experience as CEO of a company and expertise in the automotive industry, which is relevant to certain other customers in the automotive industry of the Company, has qualified him to serve as director of the Company. Also, his tenure and experience as a director of the Company has qualified him to continue to serve.

Mr. Mercurio became a director of the Company in 1990 and a director of Century Bank and Trust Company in 1995 and voluntarily resigned in 2004. He was then re-elected in 2010. In December, 2010, Mr. Mercurio retired as Executive Vice President of Boston University having completed 38 years of service. He currently serves as Vice President for Administration & Finance at Quincy College. Mr. Mercurio’s experience in the educational field, which is relevant to certain customer relationships of the Company, has qualified him to serve as director of the Company. Also, his tenure and experience as a director of the Company has qualified him to continue to serve.

Mr. Senna became a director of the Company in 1986. He has been a director of Century Bank and Trust Company since 1979. Mr. Senna is an attorney and managing partner of C&S Capital Properties, LLC, a real estate management and development firm. Mr. Senna’s experience as an attorney and expertise in the real estate industry, which is relevant to real estate related customers in addition to his years of service as Chairman of the Audit Committee, has qualified him to serve as director of the Company. Also, his tenure and experience as a director of the Company has qualified him to continue to serve.

Mr. Barry R. Sloane has been a director of the Company and Century Bank and Trust Company since 1997. Mr. Sloane is President and CEO of Century Bancorp and President and CEO of Century Bank and Trust Company. Mr. Sloane is also a trustee of the Savings Bank Employee Retirement System (SBERA). Mr. Sloane’s experience at the Company as well as his experience at other financial services companies and expertise in the financial services industry has qualified him to serve as director of the Company.

Mr. Marshall M. Sloane is the founder of the Company and is currently the Chairman of the Board. He founded Century Bank and Trust Company in 1969 and is currently the Chairman of the Board. Mr. Sloane’s extensive banking experience qualifies him to serve as Chairman of the Board.

Ms. Sonnabend became a director of the Company in 1997. She has been a director of Century Bank and Trust Company since 1997. Ms. Sonnabend is former President of Sonesta Collection, as well as former CEO, President and director of Sonesta International Hotels Corporation. Ms. Sonnabend’s experience as CEO of a

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major hotel company and expertise in the real estate and travel and leisure industry, which is relevant to travel and leisure related customers of the Company, has qualified her to serve as a director of the Company. Also, her tenure and experience as a director of the Company has qualified her to continue to serve.

Mr. Swansburg became a director of the Company in 1986. He has been a director of Century Bank and Trust Company since 1992. From 1992 to 1998 he was President and Chief Operating Officer of Century Bank and Trust Company. He is now retired from Century Bank and Trust Company. Mr. Swansburg’s experience as President and Chief Operating Officer of Century Bank and Trust Company and expertise in the banking industry has qualified him to serve as a director of the Company. Also, his tenure and experience as a director of the Company has qualified him to continue to serve.

Mr. Westling became a director of the Company in 1996. He has been a director of Century Bank and Trust Company since 1995. Mr. Westling is President Emeritus and Professor of History and Humanities of Boston University. Mr. Westling’s experience as president of a University and expertise in the educational field, which is relevant to certain customer relationships of the Company, has qualified him to serve as director of the Company. Also, his tenure and experience as a director of the Company has qualified him to continue to serve.

All of the Company’s directors are elected annually and hold office until their successors are duly elected and qualified. A majority of the members of the Company’s Board of Directors have been determined by the Company’s Board of Directors to be independent within the meaning of current FINRA listing standards. There are no family relationships between any of the directors or executive officers, except that Barry R. Sloane is the son of Marshall M. Sloane and Linda Sloane Kay is the daughter of Marshall M. Sloane.

Executive officers are elected annually by the Board prior to the Annual Meeting of Shareholders to serve for a one year term and until their successors are elected and qualified. The following table sets forth the name and age of each executive officer of the Company and the principal positions and offices he/she holds with the Company.

Marshall M. Sloane	Chairman of the Board of the Company and Century Bank and Trust Company. Mr. Sloane is 87 years old.
Barry R. Sloane	Director, President and CEO; Director, President and CEO, Century Bank and Trust Company. Mr. Sloane is 58 years old.
William P. Hornby	Chief Financial Officer and Treasurer; Chief Financial Officer and Treasurer, Century Bank and Trust Company. Mr. Hornby is 47 years old. He joined the Company in 2007. Formerly he was Senior Vice President at Capital Crossing Bank.
Paul A. Evangelista	Executive Vice President, Century Bank and Trust Company with responsibility for retail, operations and marketing. Mr. Evangelista is 50 years old. He joined the Company in 1999.
Brian J. Feeney	Executive Vice President, Century Bank and Trust Company, Head of Institutional Services Group. Mr. Feeney is 53 years old. He joined the Company in 1989.
Linda Sloane Kay	Executive Vice President, Century Bank and Trust Company with responsibility for business development. Ms. Kay is 52 years old. She joined the Company in 1983.
David B. Woonton	Executive Vice President, Century Bank and Trust Company with responsibility for lending. Mr. Woonton is 58 years old. He joined the Company in 1999.

The Audit Committee

The Audit Committee meets with KPMG LLP, the Company’s independent registered public accounting firm, in connection with the annual audit and quarterly reviews of the Company’s financial statements. The Audit Committee is composed of four directors, Joseph J. Senna, Chair, Stephen R. Delinsky, Stephanie Sonnabend, and Jon Westling, each of whom the Board of Directors has determined is independent under current FINRA

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listing standards. The Board of Directors has determined that Mr. Senna qualifies as an “audit committee financial expert”, as that term is defined in Item 407(d)(5) of Regulation S-K promulgated by the SEC. The Audit Committee reviews the findings and recommendations of the FRB, FDIC, and Massachusetts Bank Commissioner’s staff in connection with their examinations and the internal audit reports and procedures for the Company and its subsidiaries. The Audit Committee met five times during 2013.

Audit Committee Report

The Audit Committee of the Company’s Board of Directors is responsible for providing independent, objective oversight of the Company’s accounting functions and internal controls. The Audit Committee reviews: the financial information provided to shareholders and others; the systems of internal controls regarding finance, accounting, legal/regulatory compliance, and ethics; and the audit and financial reporting processes. The Audit Committee operates under a written charter first adopted and approved by the Board of Directors in 2000. The Audit Committee has reviewed and reassessed its Charter. A copy of the Audit Committee Charter was last published in the Form 10-K for the period ending December 31, 2012.

Management is responsible for the Company’s internal controls and financial reporting process. The independent registered public accounting firm is responsible for performing an independent audit of the Company’s consolidated financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States) and to issue their reports thereon. The Audit Committee’s responsibility is to monitor and oversee these processes.

The Audit Committee has reviewed and discussed the audited financial statements with management and the independent registered public accounting firm. The Audit Committee has also discussed with KPMG LLP, the independent registered public accounting firm for the Company, the matters required to be discussed by the Public Company Accounting Oversight Board (PCAOB) Auditing Standard No. 16, Communication with Audit Committees, and PCAOB AU 380, Communication with Audit Committees.

The Audit Committee has also received the written disclosures and the letter from KPMG LLP, the independent registered public accounting firm as required by the PCAOB. The Audit Committee has discussed with KPMG LLP the firm’s independence, including a review of audit and non-audit fees and services, and concluded that KPMG LLP is independent.

Based on the review and discussions referred to in the paragraph above, the Audit Committee recommended to the Board of Directors that the audited consolidated financial statements be included in the Company’s Annual Report on Form 10-K for the last fiscal year for filing with the Securities and Exchange Commission.

/s/ Joseph J. Senna, Chair

/s/ Stephen R. Delinsky

/s/ Stephanie Sonnabend

/s/ Jon Westling

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Nominating Committee

The Company’s Nominating Committee has four director members, Stephen R. Delinsky, Marshall I. Goldman, Fraser Lemley and Jon Westling, each of whom the Board of Directors has determined to be independent under the NASDAQ current listing standards. The Nominating Committee operates pursuant to a written policy. The nominating committee implements the process by identifying a potential candidate and evaluating whether the candidate is eligible and qualified for service. The Committee has developed criteria for the selection of new directors to the Board, including but not limited to, diversity, age, skills, experience, time availability (including the number of other boards a director candidate sits on), NASDAQ listing standards, applicable federal and state laws and regulations, Board and Company needs and such other criteria as the Committee shall determine to be relevant. The committee’s effectiveness is assessed by reviewing existing Board of Directors attendance and performance; experience, skills and contributions that the existing Director brings to the Board; and independence, prior to nominating an existing director for reelection.

Board Leadership Structure

The Company has implemented a careful succession plan by separating the CEO and Chairman’s position. The positions were separated to retain Marshall M. Sloane, who is a valuable asset given his history with the Company and his experience, as Chairman. Barry R. Sloane is the CEO. Marshall M. Sloane continues as Chairman of the Board.

Oversight of Risk

The Board oversees risk through various Board Committees which report directly to the Board. Also, various committees comprised of Company management report to the Board.

The principal Board Committees responsible for overseeing the various elements of risk are the Audit Committee, the Asset Liability Committee and the Executive Committee. The Audit Committee is responsible for monitoring all elements of risk, primarily through its oversight of the internal audit program. The Asset Liability Committee monitors interest rate risk principally through management’s models and simulations. The Executive Committee monitors credit risk through its review of large originators, classified assets, and the calculation of the allowance for loan losses and concentrations of credits.

The principal committees comprised of management are Management Committee, Corporate Risk Management Committee, Loan Approval Committee and Asset Liability Pricing Committee. Management Committee is comprised of senior management and is responsible for overseeing all elements of risk. The Corporate Risk Management Committee meets quarterly to address specific elements of risk. Loan Approval Committee is responsible for overseeing credit risk. The Asset Liability Committee oversees interest rate risk. The committees comprised of management report to the Board of Directors, as needed, through senior management’s attendance and reporting at Board of Directors meetings.

Code of Ethics

The Company has adopted a Code of Ethics that applies to its principal executive officer, principal financial officer, principal accounting officer or persons performing similar functions. A copy of the Company’s Code of Ethics may be obtained upon written request to Investor Relations, Century Bancorp, Inc., 400 Mystic Avenue, Medford, Massachusetts 02155.

Section 16(a) Beneficial Ownership Reporting Compliance

Based solely on a review of the copies of Forms 3, 4 and 5 and amendments thereto, if any, and any written representations furnished to the Company, none of the Company’s officers, Directors or beneficial owners of more than 10% of the Company’s Class A Common Stock failed to file on a timely basis reports required by Section 16 of the Securities Exchange Act of 1934 during the fiscal year ended December 31, 2013, or in prior fiscal years.

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ITEM 11. EXECUTIVE COMPENSATION

The following is a discussion and analysis of our executive compensation policies and practices with respect to compensation reported for fiscal year 2013.

Introduction

The following discussion and analysis includes separate sections on:

• The Composition and Responsibilities of the Compensation Committee

• The Company’s Executive Compensation Conclusion

• Compensation Discussion and Analysis

• Philosophy and Objectives of the Company

• Compensation Process

• Compensation Consultant

• Compensation Components

• Post-Employment Compensation

• Chief Executive Officer Compensation

• Executive Officer Compensation

• Consulting Services Agreements

• Employment Agreements

• Report of the Compensation Committee

Composition and Responsibilities of the Compensation Committee

The Compensation Committee is a committee of the Board of Directors composed of Fraser Lemley as Chairman, Joseph Mercurio and Jon Westling, each of whom the Board has determined is independent as defined by the FINRA current listing standards.

The Compensation Committee oversees compensation programs applicable to employees at all levels of the Company and makes decisions regarding executive compensation that is intended to align total compensation with business objectives and enable the Company to attract, retain and reward individuals who are contributing to the Company’s success.

The Compensation Committee reviews the Company’s cash incentive, stock incentive, retirement, and benefit plans and makes its recommendations to the Board with respect to these areas.

All decisions with respect to executive and director compensation are approved by the Compensation Committee and recommended to the full Board for ratification.

The Company’s Executive Compensation Conclusion

Based upon review, the Compensation Committee and the Board of Directors found the Company’s Chief Executive Officer’s, the Chief Financial Officer’s and the other Named Executive Officers’ total compensation to be reasonable. In addition to the other factors noted, the Committee and the Board considered that the Company maintains only one change of control provision and did not award stock incentive awards for fiscal year 2013. It should be noted that when the Committee and the Board considers any component of executive compensation, the mix and aggregate amounts of all components are taken into consideration.

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Compensation Discussion and Analysis (CD&A)

Philosophy and Objectives of Company

The Company’s executive compensation philosophy is based on the following principles:

• Compensation programs should be designed to attract and retain executives, to motivate them to achieve and to reward them appropriately for their performance.

• Compensation should be competitive and equitable in light of the executive’s responsibilities, experience, and performance.

• Provide annual compensation that takes into account the Company’s performance with respect to its financial and strategic objectives, the performance of functions and business areas under the executive’s management and the results of established goals;

• Align the financial interests of the executive with those of shareholders by providing both short-term and long-term incentives;

• Offer a total compensation program for each executive based on (i) the level of responsibility of the executive’s position, (ii) the experience and skills necessary relative to the other senior management positions, (iii) comparison of compensation to similarly positioned executives of peer financial institutions; and

• Evaluate the overall compensation of our executives in light of general economic and specific company, industry and competitive considerations.

Compensation Process

The Company maintains governance practices to ensure that it can reach its compensation-related decisions in an informed and appropriate manner.

Base salaries, which are the Company’s major element of compensation, are reviewed for executive officers and employees at the regularly scheduled fall meeting of the Compensation Committee. At this meeting the Committee also reviews and adopts, as appropriate, proposals for the discretionary officer cash incentive plan for the new fiscal year, stock option grants, additions, amendments, modifications or terminations of retirement and benefit programs.

The Compensation Committee’s process incorporates the following:

• The Committee operates under a written charter which is periodically reviewed. The Committee amended its charter in 2013 to conform to NASDAQ compensation committee rule amendments.

• The Committee meets with representatives of management to review and discuss prepared materials and issues.

• The Committee considers recommendations from the Chief Executive Officer with respect to the compensation of the Company’s Named Executive Officers.

• Our independent compensation consultant attends Committee meetings as requested.

• The Committee meets and deliberates privately without management present. Our consultant participates in these sessions as requested.

• The Committee may consult with the non-management and independent directors regarding decisions affecting Executive compensation.

• The Committee reports the Committee’s major actions to the entire Board at the Board of Director’s meeting in December or the following January.

• The Committee recommends for approval to the Board of Directors the fees for our Board and Board Committees.

• The Board of Directors then considers the report of the Compensation Committee and accepts or amends and approves or ratifies all matters presented for consideration.

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To the extent permitted by applicable law, the Committee or the Board may delegate to management certain of its duties and responsibilities, including with respect to the adoption, amendment, modification or termination of benefit plans and with respect to the awards of stock options under certain stock plans.

Compensation Consultant

When making determinations regarding the compensation paid to our executives the Compensation Committee and the Board of Directors rely, in part, on the expertise of our independent compensation consultant, Thomas Warren & Associates, to conduct an assessment of our executive compensation. In addition to conferring with certain executives, the consultant works with internal company support staff to obtain compensation and market data. Thomas Warren & Associates identifies a group of peer companies in consideration of such factors as asset size, geography, type of financial services offered and the complexity and scope of operations and makes use of executive compensation comparisons, published surveys and peer analyses.

The Compensation Committee and the Board of Directors took Thomas Warren & Associates’ recommendations into consideration when setting base salaries for fiscal 2013.

Compensation Components

With respect to Executive compensation, the Company reviews the mix of base salary, cash and stock based incentive plans and benefits for our individual executives, however, there is no specific formula for allocating between cash and non-cash compensation. The competitiveness of total compensation potential for our executives is reviewed against industry practices and the Company’s peers as identified by our independent compensation consultant. The major elements of the Company’s executive compensation package (i.e., base salary, cash and stock based incentive plans) are similar to those found in many companies.

Base Salary Compensation:

When evaluating executive base salary compensation, the Company takes into consideration such factors as:

• The attainment of business and strategic goals and the financial performance of the Company;

• The importance, complexity, and level of responsibility of the executive’s position within the organizational structure;

• The performance of the executive’s business area’s goals and the accomplishment of objectives for the previous year;

• The difficulty of achieving desired results;

• The value of the executive’s unique skills, abilities and general management capabilities to support the long-term performance of the Company;

• The executive’s contribution as a member of the Executive Management Team.

While the Company reviews numerous quantitative and qualitative factors noted above when determining executive base salary compensation, the performance of the Company’s stock is not generally considered a factor in this determination as the price of the Company’s common stock is subject to various factors beyond the Company’s control. The Company believes that the price of the stock in the long-term will reflect the Company’s operating performance and how well our executives manage the Company.

Ultimately, the Compensation Committee and the Board of Directors have the authority to use discretion when making executive compensation determinations after review of all the information that they deem relevant.

Cash Incentive Plan:

The Company has a discretionary cash incentive plan that is designed to reward our executives and officers for the achievement of annual financial performance goals of the Company as well as business line, department and individual performance. The plan supports the philosophy that management be measured for their performance as a team in the attainment of these goals.

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Awards are based upon the attainment of established objectives including profitability, expense control, sales volumes and overall job performance. Awards are generally not granted unless the Company achieves certain financial targets.

Upon recommendation of the Compensation Committee, the Board of Directors determines the aggregate amount, if any, to be awarded. In recognition of the Company’s solid performance, discretionary awards were granted for fiscal 2013. Awards for the Chief Executive Officer and the other Named Executive Officers were reviewed and approved by the Board of Directors and are noted on the Summary Compensation Table.

Stock Option Plans:

During 2000 and 2004, common stockholders of the Company approved stock option plans (the “Option Plans”) to encourage ownership of Class A common stock of the Company by directors, officers and employees of the Company and its Affiliates and to provide additional incentives for them to promote the success of the Company’s business through awards of or relating to shares of the Company’s Class A common stock. Under the Option Plans, all officers and key employees of the Company are eligible to receive non-qualified and incentive stock options to purchase shares of Class A common stock. The Option Plans are administered by the Compensation Committee of the Board of Directors, whose members are ineligible to participate in the Option Plans. Based on management’s recommendations, the Committee submits its recommendations to the Board of Directors as to persons to whom options are to be granted, the number of shares granted to each, the option price (which may not be less than 85% of the stocks trading value for non-qualified stock options, or the fair market value for incentive stock options, of the shares on the date of grant) and the time period over which the options are exercisable (not more than ten years from the date of the grant).

The Compensation Committee has complete discretion to make or select the manner of making all necessary determinations with respect to each option to be granted by the committee under the Option Plans including the director, employee, or officer to receive an Option. However, in determining the long-term incentive component (stock incentive plan) of executive compensation, the Committee does consider the Company’s performance and relative shareholder return, the value of similar incentives awards at peer companies and the awards given in past years. The Committee may take into account the nature of the services provided by the respective officers, employees, and directors, their present and potential contributions to the success of the Company, and any other factors that the Compensation Committee, in its discretion, determines are relevant.

Option grants were not awarded in 2013.

Post-Employment Compensation

Defined Benefit Pension Plan:

The Company had a qualified Defined Benefit Pension Plan which had been offered to all employees reaching a minimum age and service requirement. In 2006 the Bank became a member of the Savings Bank Employee Retirement Association (“SBERA”) within which it maintains the qualified Defined Benefit Pension Plan. SBERA offers a common and collective trust as the underlying investment structure for pension plans participating in SBERA. The Trustee of SBERA, through SBERA’s Investment Committee, selects investment managers for the common and collective trust portfolio. A professional advisory firm is retained by the Investment Committee to provide allocation analysis, performance measurement and to assist with manager searches. The overall investment objective is to diversify equity investments across a spectrum of investment types. (e.g. small cap, large cap, international, etc) and styles (e.g. growth, value, etc.). The Company has closed the plan to employees hired after March 31, 2006.

Benefits under the plan are based upon an employee’s years of service and career average compensation. The 2013 increase in the actuarial present value of each Named Executive Officer’s accumulated benefit under the plan is set forth in the Summary Compensation Table which appears on page 101 and the actuarial present value of each Named Executive Officer is set forth in the Pension Benefits Table which appears on page 103.

401(k) Plan:

Our executives are eligible to participate in the Company’s 401(k) contributory defined contribution plan. The Company contributes a matching contribution equal to 33.33% on the first 6% of the participant’s

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compensation that has been contributed to the plan. The Chief Executive Officer and five of the Named Executive Officers participated in the 401(k) plan during fiscal 2013 and received matching contributions up to a maximum of $5,100.

In fiscal 2007, the Company transferred administration of its 401(k) plan to SBERA who also operates the Company’s Defined Benefit Pension Plan as noted above.

Supplemental Executive Insurance/Retirement Income Plan:

The Company has a Supplemental Executive Insurance/Retirement Plan (the Supplemental Plan) which is limited to select officers and employees of the Company.

Executive officers of the Company or its subsidiaries who have at least one year of service may participate in the Supplemental Plan. The Supplemental Plan is voluntary and participants are required to contribute to its cost. Under the Supplemental Plan, each participant will receive a retirement benefit based on compensation and length of service. Individual life insurance policies, which are owned by the Company, are purchased covering the lives of each participant.

Benefits under the Supplemental Plan are based upon an employee’s years of service and highest three year average compensation. The 2013 increase in the actuarial present value of each Named Executive Officer’s accumulated benefit under the Supplemental Plan is set forth in the Summary Compensation Table which appears below and the actuarial present value of each Named Executive Officer is set forth in the Supplemental Executive Insurance/Retirement Benefits Table which appears on page 105.

Previously, the Company has entered into an agreement with Mr. Marshall Sloane to freeze his Supplemental Executive/Insurance Retirement Income Plan benefit. In consideration of this frozen benefit, the Company has acquired a life insurance policy providing a death benefit of $25,000,000 upon the death of the survivor of Mr. Sloane or Mrs. Sloane. Mr. Sloane has elected 50% joint and survivor annuity. Under this plan he received $523,639 in 2013.

Chief Executive Officer Compensation

The Company granted Chief Executive Officer, Barry R. Sloane, a 5% salary increase in 2013. In recognition of the Company’s solid financial performance in 2013, the Company also granted a $151,375 cash bonus payable to Mr. Barry R. Sloane. Total compensation granted to the Chief Executive Officer for 2013 is described in the Summary Compensation Table in the statement.

Executive Officer Compensation

Consistent with the decisions regarding CEO base compensation, the Company determined that the base salary compensation for each of the following Named Executive Officers, Messrs. Paul Evangelista, William Hornby, and David Woonton was increased by 5% in 2013. To compensate Mr. Brian Feeney and Ms. Linda Kay equitably for their contributions as members of the Executive Management team, both individuals were awarded 16.02% increases to their base salaries. In light of the Company’s financial performance in 2013, cash bonuses were awarded to all of the above Named Executive Officers as noted in the Summary Compensation Table.

The Company based its determinations on its subjective analysis of each individual’s performance and contribution to the corporation’s goals and objectives and considered the quantitative and qualitative factors referenced above.

Executive Benefits

We limit additional executive benefits that we make available to our executive officers. Where such benefits are provided, they are intended to support other business purposes including facilitating business development efforts.

Consulting Services Agreement

The Company renewed its consulting agreement with Marshall M. Sloane to provide the Company advice on strategic planning and operational management, assist with business development efforts and clients,

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participate in public relations and community outreach efforts and provides other services as may be requested by the Board of Directors. The Company agreed to pay Mr. Sloane an annual contract fee of $346,633 per year during 2013 with provisions to reimburse Mr. Sloane for all related business expenses and the expense of obtaining health insurance comparable to that which the Company provided while he was Chief Executive Officer. In recognition of the Company’s financial performance, the Company also awarded Mr. Sloane a special Director’s bonus for 2013 as noted on the Summary Compensation Table.

Employment Agreement

The Company has entered into an employment agreement with Mr. David Woonton. The agreement grants two years of service payable upon a change of control of the Company.

Compensation Committee Report

The Compensation Committee has reviewed and discussed the foregoing Report of the Compensation Committee, including the CD&A, with management. In reliance on the reviews and discussions referred to above, the Compensation Committee recommended to the Board, and the Board has approved, that the CD&A be included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013 for filing with the SEC.

/s/ Fraser Lemley, Chairman

/s/ Joseph Mercurio

/s/ Jon Westling

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Compensation Paid to Executive Officers

The following table sets forth information for the three year period ended December 31, 2013 concerning the compensation for services in all capacities to Century Bancorp, Inc. and its subsidiaries of our principal executive officers and our principal financial officer as well as our other four most highly compensated executive officers (or executive officers of our subsidiaries). We refer to these individuals throughout this 10-K statement as the “Named Executive Officers”.

Summary Compensation Table

Name and Principal Position	Year		Salary ($)		Bonus ($)		Stock Awards ($)		Option Awards ($)		Change in Pension Value and Nonqualified Deferred Compensation Earnings- December 31, ($)		All Other Compensation ($)(1)		Total ($)
Marshall M. Sloane (2)		2013		—		—		—		—		—		881,420		881,420
Chairman of the Board,		2012		—		—		—		—		131,548		770,259		901,807
Century Bancorp, Inc. and		2011		—		—		—		—		—		689,205		689,205
Century Bank and Trust Company
Barry R. Sloane		2013		557,634		151,375		—		—		518,600		59,352		1,286,961
President and CEO, Century		2012		531,080		144,150		—		—		925,960		40,677		1,641,867
Bancorp, Inc. and Century Bank		2011		505,810		126,477		—		—		740,650		35,966		1,408,903
and Trust Company
David B. Woonton		2013		330,750		72,000		—		—		219,785		24,264		646,799
Executive Vice President,		2012		315,000		68,400		—		—		630,561		14,942		1,028,903
Century Bank and Trust Company		2011		300,012		60,000		—		—		495,546		12,403		867,961
Paul A. Evangelista		2013		330,750		72,000		—		—		40,947		19,107		462,804
Executive Vice President,		2012		315,000		68,400		—		—		522,433		12,097		917,930
Century Bank and Trust Company		2011		300,012		60,000		—		—		400,656		10,304		770,972
Brian J. Feeney		2013		288,716		63,000		—		—		84,596		14,113		450,425
Executive Vice President,		2012		248,850		59,708		—		—		236,536		14,201		559,295
Century Bank and Trust Company		2011		237,009		47,400		—		—		153,587		6,608		444,604
William P. Hornby		2013		288,716		63,000		—		—		46,983		23,259		421,958
Chief Financial Officer and		2012		274,969		59,708		—		—		111,857		6,667		453,201
Treasurer, Century Bancorp, Inc.		2011		261,885		52,375		—		—		76,778		7,048		398,086
and Century Bank and
Trust Company
Linda Sloane Kay		2013		288,716		63,000		—		—		95,269		27,291		474,276
Executive Vice President		2012		248,851		59,708		—		—		200,875		9,453		518,887
Century Bank and Trust Company		2011		237,010		47,400		—		—		115,732		8,689		408,831

(1) The amount listed in all other compensation includes amounts attributable to term insurance premiums paid for the Supplemental Executive Insurance/Retirement Plan, matching contribution for the 401(k) plan, excess group life insurance premiums and long-term disability premiums and, as applicable, country club membership dues and taxable expense reimbursements.

(2) This amount, for 2013, includes $346,633 for consulting services, $307,004 amounts attributable to term insurance premiums for the Supplemental Executive Insurance/Retirement Plan, $37,700 for Director fees, $151,375 for bonus, as well as country club membership dues, health insurance premiums and Medicare reimbursements.

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Outstanding Equity Awards at Fiscal Year-End

The following table sets forth information concerning outstanding equity awards held by each Named Executive Officer as of December 31, 2013. No stock awards are unvested.

OUTSTANDING EQUITY AWARDS AT FISCAL YEAR-END TABLE

	Option Awards
Name	Number of Securities Underlying Unexercised Options (#) Exercisable		Number of Securities Underlying Unexercised Options (#) Unexercisable		Equity Incentive Plan Awards: Number of Securities Underlying Unexercised Unearned Options (#)		Option Exercise Price ($)		Option Expiration Date
Marshall M. Sloane		—		—		—		—		—
Chairman of the Board
Barry R. Sloane		7,000		—		—		31.83		09/17/14
President and CEO
David B. Woonton		2,500		—		—		31.83		09/17/14
Executive Vice President
Century Bank and Trust Company
Paul A. Evangelista		2,475		—		—		31.83		09/17/14
Executive Vice President
Century Bank and Trust Company
Brian J. Feeney		600		—		—		31.83		09/17/14
Executive Vice President
Century Bank and Trust Company
William P. Hornby		—		—		—		—		—
Chief Financial Officer and Treasurer
Linda Sloane Kay		350		—		—		31.83		09/17/14
Executive Vice President
Century Bank and Trust Company

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Pension Benefits

The following table sets forth information concerning plans that provide for payments or other benefits at, following, or in connection with, retirement for each Named Executive Officer.

PENSION BENEFITS TABLE

Name	Plan Name	Number of Years Credited Service (#)		Present Value of Accumulated Benefit 12/31/2013 ($)(1)		Payments During Last Fiscal Year 12/31/2013 ($)
Marshall M. Sloane	Defined Benefit		33		564,813		94,261
Chairman of the Board	Pension Plan
Barry R. Sloane	Defined Benefit		10		149,961		—
President and CEO	Pension Plan
David B. Woonton	Defined Benefit		14		397,685		—
Executive Vice President,	Pension Plan
Century Bank and Trust Company
Paul A. Evangelista	Defined Benefit		14		276,257		—
Executive Vice President,	Pension Plan
Century Bank and Trust Company
Brian J. Feeney	Defined Benefit		24		317,287		—
Executive Vice President,	Pension Plan
Century Bank and Trust Company
William P. Hornby (2)	Defined Benefit		—		—		—
Chief Financial Officer and Treasurer	Pension Plan
Linda Sloane Kay	Defined Benefit		13		140,356		—
Executive Vice President	Pension Plan
Century Bank and Trust Company

(1) The present value of accumulated benefits was calculated with the assumption that retirement occurs at age 65. The benefit is calculated using an interest rate of 5.00% and the Mortality Table used is the 2013 Mortality Table.

(2) Not a member of the Defined Benefit Pension Plan.

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SUPPLEMENTAL EXECUTIVE INSURANCE/RETIREMENT BENEFITS

Name	Plan Name	Number of Years Credited Service (#)		Present Value of Accumulated Benefit- 12/31/2013 ($)(1)		Payments During Last Fiscal Year- 12/31/2013 ($)
Marshall M. Sloane (2)	Supplemental Executive		33		2,970,813		523,639
Chairman of the Board	Insurance/Retirement Plan
Barry R. Sloane (2)	Supplemental Executive		12		3,491,409		—
President and CEO	Insurance/Retirement Plan
David B. Woonton (2)	Supplemental Executive		14		2,262,834		—
Executive Vice President,	Insurance/Retirement Plan
Century Bank and Trust Company
Paul A. Evangelista (2)	Supplemental Executive		14		1,463,518		—
Executive Vice President,	Insurance/Retirement Plan
Century Bank and Trust Company
Brian J. Feeney (2)	Supplemental Executive		6		446,578		—
Executive Vice President,	Insurance/Retirement Plan
Century Bank and Trust Company
William P. Hornby (2)	Supplemental Executive		5		285,247		—
Chief Financial Officer and Treasurer	Insurance/Retirement Plan
Linda Sloane Kay (2)	Supplemental Executive		5		367,172		—
Executive Vice President, Century Bank and Trust Company	Insurance/Retirement Plan

(1) The present value of accumulated benefits was calculated with the assumption that retirement occurs at age 65. The benefit is calculated using an interest rate of 5.00% and the Mortality Table used is the 2013 Mortality Table.

(2) As of January 1, 2013, Messrs. Marshall M. Sloane, Barry R. Sloane, Paul A. Evangelista, David B. Woonton, Brian J. Feeney, Linda Sloane Kay and William P. Hornby were 100%, 70.0%, 92.5%, 92.5%, 32.5%, 25.0% and 25.0% vested, respectively, under the Supplemental Executive Insurance/Retirement Plan.

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Director Compensation

Directors not employed by the Company receive a $15,000 retainer per year, $300 per Company Board meeting attended, $800 per Bank Board meeting attended and $700 per committee meeting attended. Joseph Senna receives $1,500 per Audit Committee meeting as Chairman of the Audit Committee.

DIRECTOR COMPENSATION TABLE 2013

Name	Fees Earned or Paid in Cash ($)		All Other Compensation ($)		Total ($)
George R. Baldwin		33,700		—		33,700
Stephen R. Delinsky		14,900		—		14,900
Marshall I. Goldman		26,600		—		26,600
Russell B. Higley		32,100		—		32,100
Jackie Jenkins-Scott		33,200		—		33,200
Linda Sloane Kay		—		—		—
Fraser Lemley		38,400		—		38,400
James P. McDonough		14,400		—		14,400
Joseph P. Mercurio		35,800		—		35,800
Joseph J. Senna		41,000		—		41,000
Barry R. Sloane		—		—		—
Marshall M. Sloane(1)		—		—		—
Stephanie Sonnabend		31,900		—		31,900
George F. Swansburg(2)		39,800		14,500		54,300
Jon Westling		29,900		—		29,900

(1) Amounts paid are listed in the Summary Compensation Table.

(2) The amount listed in all other compensation is for serving as Administrator of Century Bancorp Capital Trust II.

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ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

The following table sets forth certain information as to the number and percentage of shares of Class A and Class B Common Stock beneficially owned as of December 31, 2013, (i) by each person known by the Company to own beneficially more than 5% of the Company’s outstanding shares of Class A or Class B Common Stock, (ii) by each of the Company’s directors and executive officers; and (iii) by all directors and executive officers as a group. As of December 31, 2013, there were 3,580,404 shares of Class A Common Stock and 1,976,180 shares of Class B Common Stock outstanding.

Name and Address of Beneficial Owner	Class A Owned			% A Owned			Class B Owned			% B Owned
James J. Filler and Carol Filler (12)		291,727			8.15	%
2964 Shook Hill Parkway, Birmingham, AL 35223
Wellington Management Company, LLP (5)		288,147			8.05	%
280 Congress Street, Boston, MA 02210
Sandler O’Neill Asset Management, LLC (8)		257,700			7.20	%
150 East 52nd Street,30th Floor, New York, NY 10022
Jacobs Asset Management, LLC (6)		210,516			5.88	%
11 East 26th Street, Suite 1900, New York, NY 10010
Marshall M. Sloane(a)		31,432	(1)		0.88	%		1,721,841	(2)		87.13	%
400 Mystic Avenue, Medford, MA 02155
George R. Baldwin(a)		5,819			0.16	%
Stephen R. Delinsky(a)		2,940	(7)		0.08	%
Paul A. Evangelista(b)		6,898	(9)		0.19	%
Brian J. Feeney(b)		1,794	(10)		0.05	%
Marshall I. Goldman(a)		6,785	(3)		0.19	%		30,000	(4)		1.52	%
Russell B. Higley, Esquire(a)		4,602			0.13	%
William P. Hornby(b)		500			0.01	%
Jackie Jenkins-Scott(a)		40			0.00	%
Linda Sloane Kay(a)(b)		10,195	(3)		0.28	%		60,000			3.04	%
Fraser Lemley(a)		20,521			0.57	%
Joseph P. Mercurio(a)		100			0.00	%
Joseph J. Senna(a)		25,001			0.70	%
Barry R. Sloane(a)(b)		4,330	(4)		0.12	%
Stephanie Sonnabend(a)		5,132			0.14	%
George F. Swansburg(a)		32,251			0.90	%
Jon Westling(a)		7,572			0.21	%
David B. Woonton(b)		800	(11)		0.02	%
All directors and officers as a group (18 in number)		166,712			4.66	%		1,811,841			91.68	%

(a) Denotes director of the Company.

(b) Denotes officer of the Company or one of its subsidiaries.

(1) Includes 2,500 shares owned by Mr. Sloane’s spouse and also includes 16,675 shares held in trust for Mr. Sloane’s grandchildren.

(2) Includes 1,500 shares owned by Mr. Sloane’s spouse, 1,694,580 shares held by Sloane Family Enterprises LP, and does not include 94,239 shares owned by Mr. Sloane’s children. Mr. Sloane disclaims beneficial ownership of such 94,239 shares and 1,694,580 shares held by Sloane Family Enterprises LP.

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(3) Includes 9,710 shares owned by Ms. Kay’s spouse. Does not include unexercised stock options of 350 shares.

(4) Includes 40 shares owned by Mr. Barry Sloane’s children and 72 shares owned by Mr. Barry Sloane’s spouse. Does not include unexercised stock options of 7,000 shares. Includes 3,111 shares pledged.

(5) The Company has relied upon the information set forth in the Form 13F filed with the SEC by the Wellington Management Company, LLP on February 14, 2014.

(6) The Company has relied upon the information set forth in the Form 13F filed with the SEC by Sy Jacobs, c/o Jacobs Asset Management, L.L.C. on February 14, 2014.

(7) Includes 246 shares owned by Mr. Delinsky’s children.

(8) The Company has relied upon the information set forth in the Form 13F filed with the SEC by the Sandler O’Neill Asset Management, LLC on February 10, 2014.

(9) Does not include unexercised stock options of 2,475 shares.

(10) Does not include unexercised stock options of 600 shares.

(11) Does not include unexercised stock options of 2,500 shares.

(12) The Company has relied upon the information set forth in the Form 13G with the SEC by James J. Filler and Carol Filler on September 11, 2013.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

Certain Directors and Officers of the Company and Bank and members of their immediate family are at present, as in the past, customers of the Bank and have transactions with the Bank in the ordinary course of business. In addition, certain of the Directors are at present, as in the past, also Directors, Officers or Stockholders of corporations or members of partnerships that are customers of the Bank and have transactions with the Bank in the ordinary course of business. Such transactions with Directors and Officers of the Company and the Bank and their families and with such corporations and partnerships were made in the ordinary course of business, were made on substantially the same terms, including interest rates and collateral on loans, as those prevailing at the time for comparable transactions with other persons, and did not involve more than the normal risk of collectibility or present other features unfavorable to the Bank. The Directors annually approve amounts to be paid to related parties for services rendered. The Company reviews related party transactions monthly.

NASDAQ Stock Market (“NASDAQ”) rules, and our governance principles, require that at least a majority of our Board be composed of “independent” directors. All of our directors other than Marshall M. Sloane, Barry R. Sloane, Linda Sloane Kay, George F. Swansburg and Russell B. Higley, Esq. are “independent” within the meaning of both the NASDAQ rules and our own corporate governance principles. Nine of our fourteen directors, therefore, are currently “independent” directors.

ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES

The Audit Committee separately pre-approves each of the following services, in compliance with the requirements of the Sarbanes-Oxley Act and SEC regulations, before they are rendered by the auditor: financial statement audit, attestation, preparation of tax returns and audit of 401(k) and pension plans. The Audit Committee’s pre-approval procedures, in compliance with the requirements of the Sarbanes-Oxley Act and SEC regulations, allow the Company’s auditors to perform certain services without specific permission from the Audit Committee, as long as these services comply with the following requirements: (a) the services consist of special projects relating to strategic tax savings initiatives, corporate tax structure engagements or merger and acquisition consulting; (b) aggregate special project services cannot exceed $50,000 during the calendar year; and (c) the Audit Committee must be informed about each service at its next scheduled meeting. All other services provided by the Company’s auditor must be separately pre-approved before they are rendered.

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Description of Fees	Fiscal 2013 Amount		Fiscal 2012 Amount
Audit fees(1)	$	383,000	$	375,500
Audit-related fees(2)		—		—
Tax fees(3)		46,750		46,305
Other fees		—		—
	$	429,750	$	421,805

(1) includes fees for annual audit, renewal of quarterly financial statement, internal control attestations.

(2) includes fees for the audit of 401K and pension plans.

(3) includes fees for tax compliance and tax consulting.

PART IV

ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

(a)(1) Financial Statements.

The following financial statements of the company and its subsidiaries are presented in Item 8:

Report of Independent Registered Public Accounting Firm

Consolidated Balance Sheets — December 31, 2013 and 2012

Consolidated Statements of Income — Years Ended December 31, 2013, 2012 and 2011

Consolidated Statements of Changes in Stockholders’ Equity -Years ended December 31, 2013, 2012 and 2011

Consolidated Statements of Cash Flows-Years Ended December 31, 2013, 2012, and 2011

Notes to Consolidated Financial Statements

(2) Financial Statement Schedules

All schedules are omitted because either the required information is shown in the financial statements or notes incorporated by reference, or they are not applicable, or the data is not significant.

(3) Exhibits

3.1	Certificate of Incorporation of Century Bancorp, Inc., incorporated by reference previously filed with registrant’s initial registration statement on Form S-1 dated May 20, 1987 (Registration No. 33-13281).
3.2	Bylaws of Century Bancorp, Inc., Amended October 9, 2007, incorporated by reference previously filed with the September 30, 2007 10-Q.
3.3	Articles of Amendment of Century Bancorp, Inc. Articles of Organization effective January 9, 2009, incorporated by reference previously filed with an 8-K filed on April 29, 2009.
4.1	Form of Common Stock Certificate of the Company, incorporated by reference previously filed with registrant’s initial registration statement on Form S-1 dated May 20, 1987 (Registration No. 33-13281).
4.2	Century Bancorp, Inc. 401(K) Plan, incorporated by reference previously filed with the registrant’s Form S-8 filed on June 25, 1997.
4.3	Registration Statement relating to the 8.30% Junior Subordinated Debentures issued by Century Bancorp Capital Trust, incorporated by reference previously filed with the registrant’s Form S-2 filed on April 23, 1998.
10.1	2000 Stock Option Plan, as amended on December 30, 2005, incorporated by reference previously filed with the registrant’s Annual Report on Form 10-K filed on March 16, 2006.
10.2	Supplemental Executive Retirement Benefit with Marshall M. Sloane, incorporated by reference previously filed with the registrant’s Annual Report on Form 10-K filed on March 26, 2003.

109

10.3	Supplemental Executive Retirement and Insurance Plan, as amended on December 1, 2008, incorporated by reference previously filed with an 8-K filed on January 21, 2009.
10.4	2004 Stock Option Plan, as amended on December 30, 2005, incorporated by reference previously filed with the registrant’s Annual Report on Form 10-K filed on March 16, 2006.
10.5	Supplemental Executive Retirement and Insurance plan, as amended on July 14, 2009, incorporated by reference previously filed with an 8-K filed on July 16, 2009.
10.6	Century Bancorp Capital Trust II Purchase Agreement dated November 30, 2004, between Century Bancorp Capital Trust II and the Company and Sandler O’Neill Partners, L.P., First Tennessee Bank National Association and Keefe, Bruyette and Woods, Inc., incorporated by reference previously filed with the registrant’s Annual Report on Form 10-K filed on March 15, 2005.
10.7	Century Bancorp Capital Trust II Indenture, dated December 2, 2004, between the Company and Wilmington Trust Company, incorporated by reference previously filed with the registrant’s Annual Report on Form 10-K filed on March 15, 2005.
10.8	Century Bancorp Capital Trust II Amended and Restated Declaration of Trust, dated December 2, 2004, between the Trustees of Century Bancorp Capital Trust II, the Administrator, the Company and Sponsors, incorporated by reference previously filed with the registrant’s Annual Report on Form 10-K filed on March 15, 2005.
10.9	Century Bancorp, Inc. Guarantee Agreement, dated December 2, 2004, between the Century Bancorp, Inc. and Wilmington Trust Company, incorporated by reference previously filed with the registrant’s Annual Report on Form 10-K filed on March 15, 2005.
10.10	Consulting Services Agreement among Century Bancorp, Inc., Century Bank and Trust Company and Marshall M. Sloane dated as of April 14, 2006, incorporated by reference previously filed with an 8-K filed on April 17, 2006.
10.11	Purchase and Sale Agreement, dated as of August 14, 2007, with C&S Capital Properties, LLC, incorporated by reference previously filed with an 8-K filed on August 17, 2007.
10.12	Commercial Lease, dated as of August 14, 2007, with C&S Capital Properties, LLC, incorporated by reference previously filed with an 8-K filed on August 17, 2007.
10.13	Severance agreement among Century Bancorp, Inc., Century Bank and Trust Company and Jonathan G. Sloane dated April 30, 2010 incorporated by reference previously filed with an 8-K on May 14, 2010.
14	Code of ethics, amended April 13, 2010, incorporated by reference previously filed with an 8-K filed on April 15, 2010.
21	Subsidiaries of the Registrant.
23.1	Consent of Independent Registered Public Accounting Firm.
31.1	Certification of Chief Executive Officer of the Company Pursuant to Securities Exchange Act Rules 13a-14 and 15d-14.
31.2	Certification of Chief Financial Officer of the Company Pursuant to Securities Exchange Act Rules 13a-14 and 15d-14.
32.1 +	Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2 +	Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS*	XBRL Instance Document.
101.SCH*	XBRL Taxonomy Extension Schema.
101.CAL*	XBRL Taxonomy Extension Calculation Linkbase.
101.LAB*	XBRL Taxonomy Extension Label Linkbase.
101.PRE*	XBRL Taxonomy Extension Presentation Linkbase.
101.DEF*	XBRL Taxonomy Definition Linkbase.

+ This exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that section, and shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934.

110

* As provided in Rule 406T of Regulation S-T, this information is filed for purposes of Sections 11 and 12 of the Securities Act of 1933 and Section 18 of the Securities Exchange Act of 1934.

(b) Exhibits required by Item 601 of Regulation S-K.

See (a)(3) above for exhibits filed herewith.

(c) Financial Statement required by Regulation S-X.

Schedules to Consolidated Financial Statements required by Regulation S-X are not required under the related instructions or are inapplicable, and therefore have been omitted.

111

SIGNATURES

Pursuant to the requirements of Section 13 or 15 (d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, on this 11th day of March, 2014.

Century Bancorp, Inc.
By:	/s/ Marshall M. Sloane
	Marshall M. Sloane, Chairman

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities indicated and on the date indicated.

/s/ George R. Baldwin	/s/ Joseph Senna
George R. Baldwin, Director	Joseph Senna, Director
/s/ Stephen R. Delinsky	/s/ Stephanie Sonnabend
Stephen R. Delinsky, Director	Stephanie Sonnabend, Director
/s/ Marshall I. Goldman	/s/ George F. Swansburg
Marshall I. Goldman, Ph.D., Director	George F. Swansburg, Director
/s/ Russell B. Higley	/s/ Jon Westling
Russell B. Higley, Esquire, Director	Jon Westling, Director
/s/ Jackie Jenkins-Scott	/s/ Marshall M. Sloane
Jackie Jenkins-Scott, Director	Marshall M. Sloane, Chairman
/s/ Linda Sloane Kay	/s/ Barry R. Sloane
Linda Sloane Kay, Director	Barry R. Sloane, Director,
Executive Vice President, Century Bank and	President and Chief Executive Officer
Trust Company
/s/ Fraser Lemley	/s/ William P. Hornby
Fraser Lemley, Director	William P. Hornby, CPA, Chief Financial
	Officer and Treasurer
/s/ Joseph P. Mercurio	/s/ Anthony C. LaRosa
Joseph P. Mercurio, Director	Anthony C. LaRosa, CPA, Senior Vice President,
	Century Bank and Trust Company,
	Principal Accounting Officer

112

EX-21

Exhibit 21

Subsidiaries of the Registrant:

1) Century Bank and Trust Company

2) Century Bancorp Capital Trust II

EX-23.1

Exhibit 23.1

	KPMG LLP Two Financial Center 60 South Street Boston, MA 02111

Consent of Independent Registered Public Accounting Firm

The Board of Directors

Century Bancorp, Inc.:

We consent to the incorporation by reference in the registration statements (Nos. 333-118208, 333-58196, and 333-29987) on Form S-8 of Century Bancorp, Inc. of our reports dated February 20, 2014, with respect to the consolidated balance sheets of Century Bancorp, Inc. as of December 31, 2013 and 2012, and the related consolidated statements of income, comprehensive income, changes in stockholders’ equity, and cash flows for each of the years in the three-year period ended December 31, 2013, and the effectiveness of internal control over financial reporting as of December 31, 2013, which reports appear in the December 31, 2013 annual report on Form 10-K of Century Bancorp, Inc.

Boston, Massachusetts

March 13, 2014

EX-31.1

Exhibit 31.1

I, Barry R. Sloane, certify that:

1. I have reviewed this annual report on Form 10-K of Century Bancorp, Inc.;

2. Based on my knowledge, this annual report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this annual report;

3. Based on my knowledge, the financial statements, and other financial information included in this annual report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the period presented in this annual report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15 (e) and 15d-15 (e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant, and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this annual report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and;

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation, to the registrant’s auditors and the audit committee of registrant’s board of directors;

(a) all significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.

Date: March 13, 2014	/s/ Barry R. Sloane
	Barry R. Sloane
	President and Chief Executive Officer
	(Principal Executive Officer)

EX-31.2

Exhibit 31.2

I, William P. Hornby, certify that:

1. I have reviewed this annual report on Form 10-K of Century Bancorp, Inc.;

2. Based on my knowledge, this annual report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this annual report;

3. Based on my knowledge, the financial statements, and other financial information included in this annual report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the period presented in this annual report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15 (e) and 15d-15 (e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant, and we have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this annual report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and;

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation, to the registrant’s auditors and the audit committee of registrant’s board of directors;

(a) all significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.

Date: March 13, 2014	/s/ William P. Hornby
	William P. Hornby
	Chief Financial Officer and Treasurer
	(Principal Financial Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. Section 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report on Form 10-K of Century Bancorp, Inc. (the “Company”) for the year ended December 31, 2013, as filed with the Securities and Exchange Commission, the undersigned, certifies, to the best knowledge and belief of the signatory, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Barry R. Sloane

Barry R. Sloane

President and Chief Executive Officer

Date: March 13, 2014

A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002 or other document authenticating, acknowledging or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. Section 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report on Form 10-K of Century Bancorp, Inc. (the “Company”) for the year ended December 31, 2013, as filed with the Securities and Exchange Commission, the undersigned, certifies, to the best knowledge and belief of the signatory, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ William P. Hornby

William P. Hornby

Chief Financial Officer and Treasurer

Date: March 13, 2014

A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002 or other document authenticating, acknowledging or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Goodwill and Identifiable Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2013

Goodwill And Intangible Assets Disclosure [Abstract]

Carrying Amount of Goodwill and Intangibles

The changes in goodwill and identifiable intangible assets for the years ended December 31, 2013 and 2012 are shown in the table below.

Carrying Amount of Goodwill and Intangibles	Goodwill		Core Deposit Intangibles			Mortgage Servicing Rights			Total
(dollars in thousands)
Balance at December 31, 2011	$	2,714	$	120		$	123		$	2,957
Additions		—		—			48			48
Amortization Expense		—		(120	)		(34	)		(154	)
Balance at December 31, 2012	$	2,714	$	—			137		$	2,851
Additions		—		—			653			653
Amortization Expense		—		—			(87	)		(87	)
Balance at December 31, 2013	$	2,714	$	—			703		$	3,417

XML

Quarterly Results of Operations - Quarterly Results of Operations (Detail) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Quarterly Financial Information [Line Items]
Interest income	$ 20,947	$ 20,549	$ 19,132	$ 19,137	$ 19,738	$ 22,079	$ 20,312	$ 19,365	$ 79,765	$ 81,494	$ 78,065
Interest expense	4,842	4,751	4,620	4,592	4,795	4,859	4,923	4,963	18,805	19,540	22,766
Net interest income	16,105	15,798	14,512	14,545	14,943	17,220	15,389	14,402	60,960	61,954	55,299
Provision for loan losses	460	750	750	750	900	1,250	900	1,100	2,710	4,150	4,550
Net interest income after provision for loan losses	15,645	15,048	13,762	13,795	14,043	15,970	14,489	13,302	58,250	57,804	50,749
Other operating income	4,186	4,774	5,221	4,434	4,153	4,105	3,988	3,619	18,615	15,865	16,240
Operating expenses	14,690	13,995	13,662	13,465	13,279	13,708	13,451	12,800	55,812	53,238	48,742
Income before income taxes	5,141	5,827	5,321	4,764	4,917	6,367	5,026	4,121	21,053	20,431	18,247
Provision for income taxes	116	308	295	288	139	685	255	313	1,007	1,392	1,554
Net income	5,025	5,519	5,026	4,476	4,778	5,682	4,771	3,808	20,046	19,039	16,693
Class A Common Stock [Member]
Quarterly Financial Information [Line Items]
Net income									15,698	14,877	13,023
Share data:
Average shares outstanding, basic	3,580,404	3,578,400	3,574,379	3,569,546	3,564,145	3,559,125	3,556,474	3,550,993	3,575,683	3,557,693	3,543,233
Average shares outstanding, diluted	5,557,419	5,558,031	5,557,354	5,557,365	5,552,121	5,549,810	5,548,830	5,545,711	5,557,693	5,549,191	5,541,794
Earnings per share, basic	$ 1.10	$ 1.21	$ 1.10	$ 0.98	$ 1.05	$ 1.25	$ 1.05	$ 0.84	$ 4.39	$ 4.18	$ 3.68
Earnings per share, diluted	$ 0.90	$ 0.99	$ 0.90	$ 0.81	$ 0.86	$ 1.02	$ 0.86	$ 0.69	$ 3.61	$ 3.43	$ 3.01
Class B Common Stock [Member]
Quarterly Financial Information [Line Items]
Net income									$ 4,348	$ 4,162	$ 3,670
Share data:
Average shares outstanding, basic	1,976,180	1,978,180	1,982,180	1,986,880	1,986,880	1,989,380	1,991,880	1,993,755	1,980,855	1,990,474	1,997,411
Average shares outstanding, diluted	1,976,180	1,978,180	1,982,180	1,986,880	1,986,880	1,989,380	1,991,880	1,993,755	1,980,855	1,990,474	1,997,411
Earnings per share, basic	$ 0.55	$ 0.60	$ 0.55	$ 0.49	$ 0.52	$ 0.62	$ 0.52	$ 0.42	$ 2.19	$ 2.09	$ 1.84
Earnings per share, diluted	$ 0.55	$ 0.60	$ 0.55	$ 0.49	$ 0.52	$ 0.62	$ 0.52	$ 0.42	$ 2.19	$ 2.09	$ 1.84

XML

Summary of Significant Accounting Policies - Additional Information (Detail) (USD $)	0 Months Ended	3 Months Ended								12 Months Ended
	Dec. 30, 2005	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2013 Segment	Dec. 31, 2012	Dec. 31, 2011
Summary Of Significant Accounting Policies And Other Information [Line Items]
Equity ownership interest		100.00%								100.00%
Number of reportable segments										1
Securities held for trading		$ 0								$ 0
Net income		5,025,000	5,519,000	5,026,000	4,476,000	4,778,000	5,682,000	4,771,000	3,808,000	20,046,000	19,039,000	16,693,000
Impairment recognized										0
Loans discontinued delinquency period										90 days
Loan to value ratio										80.00%
Nonqualified stock options										85.00%
Options to purchase an aggregate of shares		20,375				23,350				20,375	23,350	36,062
Time period over which stock option exercisable	$ 31.60
Average price of common stock	$ 29.28
Stock option granted										0	0
Maximum [Member]
Summary Of Significant Accounting Policies And Other Information [Line Items]
Time period over which stock option exercisable										10 years
Minimum [Member]
Summary Of Significant Accounting Policies And Other Information [Line Items]
Supplemental plan										1 year
Federal Home Loan Bank of Boston [Member]
Summary Of Significant Accounting Policies And Other Information [Line Items]
Net income										212,300,000
Declared a dividend equal to an annual yield										1.49%
Class A Common Stock [Member]
Summary Of Significant Accounting Policies And Other Information [Line Items]
Net income										$ 15,698,000	$ 14,877,000	$ 13,023,000
Approved stock option plan for purchase of common stock		150,000								150,000
Options to purchase an aggregate of shares	23,950	20,375								20,375

XML

Employee Benefits (Tables)

12 Months Ended

Dec. 31, 2013

Compensation And Retirement Disclosure [Abstract]

Fair Value of Plan Assets and Major Categories

The fair value of plan assets and major categories as of December 31, 2013, is as follows:

Asset Category	Percent			Total		Level 1		Level 2		Level 3
(dollars in thousands)
Collective funds		52.9	%	$	17,092	$	856	$	16,236	$	—
Equity securities		25.9	%		8,355		8,355		—		—
Mutual funds		13.1	%		4,250		3,832		418		—
Hedge funds		7.0	%		2,256		—		—		2,256
Short-term investments		1.1	%		369		249		120		—
		100.0	%	$	32,322	$	13,292	$	16,774	$	2,256

The fair value of plan assets and major categories as of December 31, 2012, is as follows:

Asset Category	Percent			Total		Level 1		Level 2		Level 3
(dollars in thousands)
Collective funds		52.5	%	$	12,593	$	767	$	11,826	$	—
Equity securities		24.6	%		5,892		5,892		—		—
Mutual funds		14.1	%		3,370		3,086		284		—
Hedge funds		7.0	%		1,691		—		—		1,691
Short-term investments		1.8	%		437		62		375		—
		100.0	%	$	23,983	$	9,807	$	12,485	$	1,691

Changes in Level 3 Securities

The changes in Level 3 securities are shown in the table below:

Year Ended December 31,	2013		2012
(dollars in thousands)
Balance at beginning of year	$	1,691	$	1,522
Purchases		55		152
Actual return – assets still being held		510		17
Balance at end of year	$	2,256	$	1,691

Components of Net Periodic Benefit Cost

	Defined Benefit Pension  Plan						Supplemental Insurance/ Retirement Plan
	2013			2012			2013			2012
(dollars in thousands)
Change projected in benefit obligation
Benefit obligation at beginning of year	$	31,910		$	28,784		$	25,835		$	21,097
Service cost		1,196			1,097			1,554			1,425
Interest cost		1,257			1,295			1,072			923
Actuarial (gain)/loss		(3,734	)		1,401			(1,916	)		3,482
Benefits paid		(750	)		(667	)		(1,043	)		(1,092	)
Projected benefit obligation at end of year	$	29,879		$	31,910		$	25,502		$	25,835
Change in plan assets
Fair value of plan assets at beginning of year	$	23,983		$	20,517
Actual (loss) return on plan assets		4,619			2,333
Employer contributions		4,470			1,800
Benefits paid		(750	)		(667	)
Fair value of plan assets at end of year	$	32,322		$	23,983
(Unfunded) Funded status	$	2,443		$	(7,927	)	$	(25,502	)	$	(25,835	)
Accumulated benefit obligation	$	29,747		$	31,773		$	22,278		$	22,181
Weighted-average assumptions as of December 31
Discount rate — Liability		5.00	%		4.00	%		5.00	%		4.00	%
Discount rate — Expense		4.00	%		4.50	%		4.00	%		4.50	%
Expected return on plan assets		8.00	%		8.00	%		NA			NA
Rate of compensation increase		4.00	%		4.00	%		4.00	%		4.00	%
Components of net periodic benefit cost
Service cost	$	1,196		$	1,097		$	1,554		$	1,425
Interest cost		1,257			1,295			1,072			923
Expected return on plan assets		(1,880	)		(1,641	)		—			—
Recognized prior service cost		(104	)		(104	)		114			114
Recognized net losses		630			735			514			336
Net periodic cost	$	1,099		$	1,382		$	3,254		$	2,798
Other changes in plan assets and benefit obligations recognized in other comprehensive income
Amortization of prior service cost	$	104		$	104		$	(114	)	$	(114	)
Net (gain) loss		(6,956	)		(25	)		(2,401	)		3,098
Total recognized in other comprehensive income		(6,852	)		79			(2,515	)		2,984
Total recognized in net periodic benefit cost and other comprehensive income	$	(5,753	)	$	1,461		$	739		$	5,782

Summary of Defined Pension Plan and Supplemental Insurance Retirement Plan

	December 31, 2013									December 31, 2012
	Plan			Supplemental Plan			Total			Plan			Supplemental Plan			Total
(dollars in thousands)
Prior service cost	$	516		$	(991	)	$	(475	)	$	620		$	(1,105	)	$	(485	)
Net actuarial loss		(3,361	)		(7,901	)		(11,262	)		(10,317	)		(10,302	)		(20,619	)
Total	$	(2,845	)	$	(8,892	)	$	(11,737	)	$	(9,697	)	$	(11,407	)	$	(21,104	)

Summary of Accumulated Other Comprehensive Loss Expected to be Recognized

The following table summarizes the amounts included in Accumulated Other Comprehensive Loss at December 31, 2013, expected to be recognized as components of net periodic benefit cost in the next year:

	Plan			Supplemental Plan
Amortization of prior service cost to be recognized in 2014	$	(104	)	$	114
Amortization of loss to be recognized in 2014		12			355

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Allowance for Loan Losses - Summary of Allowance for Loan Losses (Detail) (USD $)	3 Months Ended								12 Months Ended
	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Allowance for loan losses:
Allowance for loan losses, beginning of year				$ 19,197,000				$ 16,574,000	$ 19,197,000	$ 16,574,000	$ 14,053,000
Charge-offs									(1,813,000)	(2,301,000)	(2,824,000)
Recoveries									847,000	774,000	795,000
Provision	460,000	750,000	750,000	750,000	900,000	1,250,000	900,000	1,100,000	2,710,000	4,150,000	4,550,000
Allowance for loan losses, end of year	20,941,000				19,197,000				20,941,000	19,197,000	16,574,000
Amount of allowance for loan losses for loans deemed to be impaired	1,019,000				1,732,000				1,019,000	1,732,000
Amount of allowance for loan losses for loans not deemed to be impaired									19,922,000	17,465,000
Loans:
Total loans, net	1,264,763,000				1,111,788,000				1,264,763,000	1,111,788,000
Loans deemed to be impaired	7,788,000				5,925,000				7,788,000	5,925,000
Loans not deemed to be impaired	1,256,975,000				1,105,863,000				1,256,975,000	1,105,863,000
Construction and Land Development [Member]
Allowance for loan losses:
Allowance for loan losses, beginning of year				3,041,000				2,893,000	3,041,000	2,893,000
Charge-offs									(1,000,000)
Provision									133,000	148,000
Allowance for loan losses, end of year	2,174,000				3,041,000				2,174,000	3,041,000
Amount of allowance for loan losses for loans deemed to be impaired	12,000				1,000,000				12,000	1,000,000
Amount of allowance for loan losses for loans not deemed to be impaired									2,162,000	2,041,000
Loans:
Total loans, net	33,058,000				38,618,000				33,058,000	38,618,000
Loans deemed to be impaired	608,000				1,500,000				608,000	1,500,000
Loans not deemed to be impaired	32,450,000				37,118,000				32,450,000	37,118,000
Commercial and Industrial [Member]
Allowance for loan losses:
Allowance for loan losses, beginning of year				3,118,000				3,139,000	3,118,000	3,139,000
Charge-offs									(234,000)	(1,253,000)
Recoveries									389,000	307,000
Provision									(284,000)	925,000
Allowance for loan losses, end of year	2,989,000				3,118,000				2,989,000	3,118,000
Amount of allowance for loan losses for loans deemed to be impaired	367,000				104,000				367,000	104,000
Amount of allowance for loan losses for loans not deemed to be impaired									2,622,000	3,014,000
Loans:
Total loans, net	92,402,000				88,475,000				92,402,000	88,475,000
Loans deemed to be impaired	1,367,000				1,282,000				1,367,000	1,282,000
Loans not deemed to be impaired	91,035,000				87,193,000				91,035,000	87,193,000
Commercial Real Estate [Member]
Allowance for loan losses:
Allowance for loan losses, beginning of year				9,065,000				6,566,000	9,065,000	6,566,000
Recoveries									19,000	9,000
Provision									2,134,000	2,490,000
Allowance for loan losses, end of year	11,218,000				9,065,000				11,218,000	9,065,000
Amount of allowance for loan losses for loans deemed to be impaired	417,000				415,000				417,000	415,000
Amount of allowance for loan losses for loans not deemed to be impaired									10,801,000	8,650,000
Loans:
Total loans, net	713,327,000				576,465,000				713,327,000	576,465,000
Loans deemed to be impaired	4,520,000				2,281,000				4,520,000	2,281,000
Loans not deemed to be impaired	708,807,000				574,184,000				708,807,000	574,184,000
Residential Real Estate [Member]
Allowance for loan losses:
Allowance for loan losses, beginning of year				1,994,000				1,886,000	1,994,000	1,886,000
Charge-offs										(192,000)
Recoveries									11,000	17,000
Provision									1,000	283,000
Allowance for loan losses, end of year	2,006,000				1,994,000				2,006,000	1,994,000
Amount of allowance for loan losses for loans deemed to be impaired	129,000				117,000				129,000	117,000
Amount of allowance for loan losses for loans not deemed to be impaired									1,877,000	1,877,000
Loans:
Total loans, net	286,041,000				281,857,000				286,041,000	281,857,000
Loans deemed to be impaired	1,199,000				766,000				1,199,000	766,000
Loans not deemed to be impaired	284,842,000				281,091,000				284,842,000	281,091,000
Consumer [Member]
Allowance for loan losses:
Allowance for loan losses, beginning of year				333,000				356,000	333,000	356,000
Charge-offs									(579,000)	(697,000)
Recoveries									427,000	422,000
Provision									251,000	252,000
Allowance for loan losses, end of year	432,000				333,000				432,000	333,000
Amount of allowance for loan losses for loans deemed to be impaired
Amount of allowance for loan losses for loans not deemed to be impaired									432,000	333,000
Loans:
Total loans, net	9,658,000				7,450,000				9,658,000	7,450,000
Loans not deemed to be impaired	9,658,000				7,450,000				9,658,000	7,450,000
Home Equity [Member]
Allowance for loan losses:
Allowance for loan losses, beginning of year				886,000				704,000	886,000	704,000
Charge-offs										(159,000)
Recoveries									1,000	19,000
Provision									72,000	322,000
Allowance for loan losses, end of year	959,000				886,000				959,000	886,000
Amount of allowance for loan losses for loans deemed to be impaired	94,000				96,000				94,000	96,000
Amount of allowance for loan losses for loans not deemed to be impaired									865,000	790,000
Loans:
Total loans, net	130,277,000				118,923,000				130,277,000	118,923,000
Loans deemed to be impaired	94,000				96,000				94,000	96,000
Loans not deemed to be impaired	130,183,000				118,827,000				130,183,000	118,827,000
Unallocated [Member]
Allowance for loan losses:
Allowance for loan losses, beginning of year				760,000				1,030,000	760,000	1,030,000
Provision									403,000	(270,000)
Allowance for loan losses, end of year	1,163,000				760,000				1,163,000	760,000
Amount of allowance for loan losses for loans not deemed to be impaired									$ 1,163,000	$ 760,000

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Summary of Significant Accounting Policies - Revision of EPS Presentation (Detail) (USD $)	3 Months Ended								12 Months Ended
	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Class A Common Stock [Member]
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Earnings per share, basic	$ 1.10	$ 1.21	$ 1.10	$ 0.98	$ 1.05	$ 1.25	$ 1.05	$ 0.84	$ 4.39	$ 4.18	$ 3.68
Earnings per share, diluted	$ 0.90	$ 0.99	$ 0.90	$ 0.81	$ 0.86	$ 1.02	$ 0.86	$ 0.69	$ 3.61	$ 3.43	$ 3.01
Class A Common Stock [Member] | As Previously Reported [Member]
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Earnings per share, basic											$ 3.01
Earnings per share, diluted											$ 3.01
Class B Common Stock [Member]
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Earnings per share, basic	$ 0.55	$ 0.60	$ 0.55	$ 0.49	$ 0.52	$ 0.62	$ 0.52	$ 0.42	$ 2.19	$ 2.09	$ 1.84
Earnings per share, diluted	$ 0.55	$ 0.60	$ 0.55	$ 0.49	$ 0.52	$ 0.62	$ 0.52	$ 0.42	$ 2.19	$ 2.09	$ 1.84
Class B Common Stock [Member] | As Previously Reported [Member]
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Earnings per share, basic											$ 3.01
Earnings per share, diluted											$ 3.01

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Bank Premises and Equipment - Summary of Future Minimum Rental Commitments for Non-Cancelable Operating Leases (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013
Property Plant And Equipment [Abstract]
2014	$ 2,070
2015	1,824
2016	1,675
2017	1,235
2018	1,035
Thereafter	2,816
Future minimum rental commitments for non-cancelable operating leases, total	$ 10,655

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Employee Benefits - Fair Value of Plan Assets and Major Categories (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, Percentage	100.00%	100.00%
Total, fair value of plan assets	$ 32,322	$ 23,983
Fair Value Measurements, Level 1 Inputs [Member]
Defined Benefit Plan Disclosure [Line Items]
Total, fair value of plan assets	13,292	9,807
Fair Value Measurements, Level 2 Inputs [Member]
Defined Benefit Plan Disclosure [Line Items]
Total, fair value of plan assets	16,774	12,485
Fair Value Measurements, Level 3 Inputs [Member]
Defined Benefit Plan Disclosure [Line Items]
Total, fair value of plan assets	2,256	1,691
Collective Funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, Percentage	52.90%	52.50%
Total, fair value of plan assets	17,092	12,593
Collective Funds [Member] | Fair Value Measurements, Level 1 Inputs [Member]
Defined Benefit Plan Disclosure [Line Items]
Total, fair value of plan assets	856	767
Collective Funds [Member] | Fair Value Measurements, Level 2 Inputs [Member]
Defined Benefit Plan Disclosure [Line Items]
Total, fair value of plan assets	16,236	11,826
Equity Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, Percentage	25.90%	24.60%
Total, fair value of plan assets	8,355	5,892
Equity Securities [Member] | Fair Value Measurements, Level 1 Inputs [Member]
Defined Benefit Plan Disclosure [Line Items]
Total, fair value of plan assets	8,355	5,892
Mutual Funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, Percentage	13.10%	14.10%
Total, fair value of plan assets	4,250	3,370
Mutual Funds [Member] | Fair Value Measurements, Level 1 Inputs [Member]
Defined Benefit Plan Disclosure [Line Items]
Total, fair value of plan assets	3,832	3,086
Mutual Funds [Member] | Fair Value Measurements, Level 2 Inputs [Member]
Defined Benefit Plan Disclosure [Line Items]
Total, fair value of plan assets	418	284
Hedge Funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, Percentage	7.00%	7.00%
Total, fair value of plan assets	2,256	1,691
Hedge Funds [Member] | Fair Value Measurements, Level 3 Inputs [Member]
Defined Benefit Plan Disclosure [Line Items]
Total, fair value of plan assets	2,256	1,691
Short-Term Investments [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, Percentage	1.10%	1.80%
Total, fair value of plan assets	369	437
Short-Term Investments [Member] | Fair Value Measurements, Level 1 Inputs [Member]
Defined Benefit Plan Disclosure [Line Items]
Total, fair value of plan assets	249	62
Short-Term Investments [Member] | Fair Value Measurements, Level 2 Inputs [Member]
Defined Benefit Plan Disclosure [Line Items]
Total, fair value of plan assets	$ 120	$ 375

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Stockholders' Equity Dividends (Tables)

12 Months Ended

Dec. 31, 2013

Equity [Abstract]

Summary of Stock Option Activity Under Stock Option Plan

Stock option activity under the plan is as follows:

	December 31, 2013					December 31, 2012					December 31, 2011
	Amount			Weighted Average Exercise Price		Amount			Weighted Average Exercise Price		Amount			Weighted Average Exercise Price
Shares under option:
Outstanding at beginning of year		23,350		$	31.17		36,062		$	28.90		38,712		$	28.36
Forfeited		(1,350	)		26.68		(450	)		22.50		(200	)		15.06
Exercised		(1,625	)		26.76		(12,262	)		24.82		(2,450	)		21.44
Outstanding at end of year		20,375		$	31.82		23,350		$	31.17		36,062		$	28.90
Exercisable at end of year		20,375		$	31.82		23,350		$	31.17		36,062		$	28.90
Available to be granted at end of year		224,884					223,534					223,084

Summary of the Bank's Actual Capital Amounts and Ratios

The Bank’s actual capital amounts and ratios are presented in the following table:

	Actual Amount		Ratio			For  Capital Adequacy Purposes					To Be Well Capitalized  Under Prompt Corrective Action Provisions
						Amount		Ratio			Amount		Ratio
As of December 31, 2013
Total Capital (to Risk-Weighted Assets)	$	230,038		13.91	%	$	132,338		8.00	%	$	165,422		10.00	%
Tier 1 Capital (to Risk-Weighted Assets)		209,360		12.66	%		66,169		4.00	%		99,253		6.00	%
Tier 1 Capital (to 4th Qtr. Average Assets)		209,360		6.00	%		139,467		4.00	%		174,334		5.00	%
As of December 31, 2012
Total Capital (to Risk-Weighted Assets)	$	206,464		14.15	%	$	116,726		8.00	%	$	145,907		10.00	%
Tier 1 Capital (to Risk-Weighted Assets)		188,226		12.90	%		58,363		4.00	%		87,544		6.00	%
Tier 1 Capital (to 4th Qtr. Average Assets)		188,226		6.11	%		123,202		4.00	%		154,002		5.00	%

Summary of the Company's Actual Capital Amounts and Ratios

The Company’s actual capital amounts and ratios are presented in the following table:

						For  Capital Adequacy Purposes					To Be Well Capitalized  Under Prompt Corrective Action Provisions
	Actual Amount		Ratio			Amount		Ratio			Amount		Ratio
As of December 31, 2013
Total Capital (to Risk-Weighted Assets)	$	247,761		14.92	%	$	132,870		8.00	%	$	166,088		10.00	%
Tier 1 Capital (to Risk-Weighted Assets)		227,000		13.67	%		66,435		4.00	%		99,653		6.00	%
Tier 1 Capital (to 4th Qtr. Average Assets)		227,000		6.50	%		139,769		4.00	%		174,711		5.00	%
As of December 31, 2012
Total Capital (to Risk-Weighted Assets)	$	227,945		15.59	%	$	116,976		8.00	%	$	146,220		10.00	%
Tier 1 Capital (to Risk-Weighted Assets)		209,668		14.34	%		58,488		4.00	%		87,732		6.00	%
Tier 1 Capital (to 4th Qtr. Average Assets)		209,668		6.80	%		123,377		4.00	%		154,221		5.00	%

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Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2013

Accounting Policies [Abstract]

Revision of EPS Presentation

This resulted in immaterial revisions to previously reported basic EPS for Class A and Class B common stock and diluted EPS for the Class B common stock as summarized below:

For the year ended December 31, 2011:	As previously reported		As revised
Basic EPS – Class A common	$	3.01	$	3.68
Basic EPS – Class B common	$	3.01	$	1.84
Diluted EPS – Class A common	$	3.01	$	3.01
Diluted EPS – Class B common	$	3.01	$	1.84

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Goodwill and Identifiable Intangible Assets - Carrying Amount of Goodwill and Intangibles (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Intangible Assets And Goodwill [Line Items]
Goodwill, Beginning Balance	$ 2,714	$ 2,714
Goodwill, Ending Balance	2,714	2,714
Beginning Balance		120
Amortization Expense		(120)
Ending Balance
Total, Beginning Balance	2,851	2,957
Additions	653	48
Amortization Expense	(87)	(154)
Total, Ending Balance	3,417	2,851
Mortgage Servicing Rights [Member]
Intangible Assets And Goodwill [Line Items]
Beginning Balance	137	123
Additions	653	48
Amortization Expense	(87)	(34)
Ending Balance	$ 703	$ 137

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Allowance for Loan Losses - Information Pertaining to Impaired Loans (Detail) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Financing Receivable, Allowance for Credit Losses [Line Items]
With no required reserve recorded, Carrying Value	$ 1,066,000	$ 702,000
With no required reserve recorded, Unpaid Balance Principal	3,901,000	1,224,000
With no required reserve recorded, Required Reserve
With no required reserve recorded, Average Carrying Value	662,000	1,071,000
With no required reserve recorded, Interest Income Recognized	1,000	1,000
With required reserve recorded, Carrying Value	6,723,000	5,223,000
With required reserve recorded, Unpaid Balance Principal	7,135,000	7,277,000
With required reserve recorded, Required Reserve	1,019,000	1,732,000
With required reserve recorded, Average Carrying Value	6,114,000	5,972,000
With required reserve recorded, Interest Income Recognized	160,000	179,000
Carrying Value	7,788,000	5,925,000	8,102,000
Unpaid Balance Principal	11,036,000	8,501,000
With required reserve recorded, Required Reserve	1,019,000	1,732,000
Average Carrying Value	6,776,000	7,043,000	10,284,000
Interest Income Recognized	161,000	180,000
Construction and Land Development [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
With no required reserve recorded, Carrying Value	500,000
With no required reserve recorded, Unpaid Balance Principal	3,292,000
With no required reserve recorded, Required Reserve
With no required reserve recorded, Average Carrying Value		346,000
With no required reserve recorded, Interest Income Recognized
With required reserve recorded, Carrying Value	108,000	1,500,000
With required reserve recorded, Unpaid Balance Principal	108,000	3,292,000
With required reserve recorded, Required Reserve	12,000	1,000,000
With required reserve recorded, Average Carrying Value	1,371,000	1,154,000
With required reserve recorded, Interest Income Recognized	1,000
Carrying Value	608,000	1,500,000
Unpaid Balance Principal	3,400,000	3,292,000
With required reserve recorded, Required Reserve	12,000	1,000,000
Average Carrying Value	1,371,000	1,500,000
Interest Income Recognized	1,000
Commercial and Industrial [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
With no required reserve recorded, Carrying Value	238,000	503,000
With no required reserve recorded, Unpaid Balance Principal	268,000	994,000
With no required reserve recorded, Required Reserve
With no required reserve recorded, Average Carrying Value	361,000	425,000
With no required reserve recorded, Interest Income Recognized	1,000
With required reserve recorded, Carrying Value	1,129,000	779,000
With required reserve recorded, Unpaid Balance Principal	1,371,000	995,000
With required reserve recorded, Required Reserve	367,000	104,000
With required reserve recorded, Average Carrying Value	902,000	1,317,000
With required reserve recorded, Interest Income Recognized	37,000	40,000
Carrying Value	1,367,000	1,282,000
Unpaid Balance Principal	1,639,000	1,989,000
With required reserve recorded, Required Reserve	367,000	104,000
Average Carrying Value	1,263,000	1,742,000
Interest Income Recognized	38,000	41,000
Commercial Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
With no required reserve recorded, Carrying Value	82,000	169,000
With no required reserve recorded, Unpaid Balance Principal	82,000	199,000
With no required reserve recorded, Required Reserve
With no required reserve recorded, Average Carrying Value	132,000	176,000
With no required reserve recorded, Interest Income Recognized
With required reserve recorded, Carrying Value	4,438,000	2,112,000
With required reserve recorded, Unpaid Balance Principal	4,527,000	2,158,000
With required reserve recorded, Required Reserve	417,000	415,000
With required reserve recorded, Average Carrying Value	2,868,000	2,817,000
With required reserve recorded, Interest Income Recognized	120,000	138,000
Carrying Value	4,520,000	2,281,000
Unpaid Balance Principal	4,609,000	2,357,000
With required reserve recorded, Required Reserve	417,000	415,000
Average Carrying Value	3,000,000	2,993,000
Interest Income Recognized	120,000	138,000
Residential Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
With no required reserve recorded, Carrying Value	246,000	30,000
With no required reserve recorded, Unpaid Balance Principal	259,000	31,000
With no required reserve recorded, Required Reserve
With no required reserve recorded, Average Carrying Value	169,000	124,000
With no required reserve recorded, Interest Income Recognized
With required reserve recorded, Carrying Value	953,000	736,000
With required reserve recorded, Unpaid Balance Principal	1,035,000	736,000
With required reserve recorded, Required Reserve	129,000	117,000
With required reserve recorded, Average Carrying Value	878,000	640,000
With required reserve recorded, Interest Income Recognized	2,000	1,000
Carrying Value	1,199,000	766,000
Unpaid Balance Principal	1,294,000	767,000
With required reserve recorded, Required Reserve	129,000	117,000
Average Carrying Value	1,047,000	764,000
Interest Income Recognized	2,000	1,000
Consumer [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
With no required reserve recorded, Carrying Value
With no required reserve recorded, Unpaid Balance Principal
With no required reserve recorded, Required Reserve
With no required reserve recorded, Average Carrying Value
With no required reserve recorded, Interest Income Recognized
With required reserve recorded, Carrying Value
With required reserve recorded, Unpaid Balance Principal
With required reserve recorded, Required Reserve
With required reserve recorded, Average Carrying Value
With required reserve recorded, Interest Income Recognized
Carrying Value
Unpaid Balance Principal
With required reserve recorded, Required Reserve
Average Carrying Value
Interest Income Recognized
Home Equity [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
With no required reserve recorded, Carrying Value
With no required reserve recorded, Unpaid Balance Principal
With no required reserve recorded, Required Reserve
With no required reserve recorded, Average Carrying Value
With no required reserve recorded, Interest Income Recognized
With required reserve recorded, Carrying Value	94,000	96,000
With required reserve recorded, Unpaid Balance Principal	94,000	96,000
With required reserve recorded, Required Reserve	94,000	96,000
With required reserve recorded, Average Carrying Value	95,000	44,000
Carrying Value	94,000	96,000
Unpaid Balance Principal	94,000	96,000
With required reserve recorded, Required Reserve	94,000	96,000
Average Carrying Value	$ 95,000	$ 44,000

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Other Borrowed Funds and Subordinated Debentures - Additional Information (Detail) (USD $)	12 Months Ended				12 Months Ended			1 Months Ended	12 Months Ended			12 Months Ended
	Dec. 31, 2013	Dec. 31, 2011	Dec. 31, 2012	Dec. 31, 2013 Federal Home Loan Bank Borrowings [Member]	Dec. 31, 2013 Subordinated Debt [Member]	Dec. 31, 2012 Subordinated Debt [Member]	Jan. 10, 2005 Subordinated Debt [Member]	Dec. 31, 2004 Subordinated Debt [Member] Century Bancorp Capital Trust II [Member]	Dec. 31, 2013 Subordinated Debt [Member] Century Bancorp Capital Trust II [Member]	Dec. 31, 2013 Other Borrowed Funds [Member]	Dec. 31, 2012 Other Borrowed Funds [Member]	Dec. 31, 2013 Cumulative Preferred Stock Subject to Mandatory Redemption [Member] Subordinated Debt [Member]	Dec. 31, 2013 Cumulative Preferred Stock Subject to Mandatory Redemption [Member] Subordinated Debt [Member] Century Bancorp Capital Trust II [Member]
Short-term Debt [Line Items]
Bank's remaining term borrowing capacity at the FHLBB				$ 423,143,000
Line of credit with the FHLBB				14,500,000
FHLBB advances	35,000,000	35,000,000	35,000,000
Restructuring of FHLBB advances	14,500,000	18,000,000
Weighted average rate of restructured FHLBB advances	3.16%	4.45%
Weighted average remaining maturity period of FHLB	12 months	25 months
Weighted average rate subsequent to restructured of FHLBB advances	3.24%	3.50%
Weighted average remaining maturity subsequent to Restructured FHLBB advances	68 months	60 months
Subordinated debt securities issued	36,083,000		36,083,000		36,083,000	36,083,000		36,083,000
Subordinated debentures issued for new Unconsolidated subsidiary					29,639,000
Subordinated debt securities due year					2029			2034
Shares of cumulative trust preferred securities												2,875,000	35,000
Liquidation value of shares of cumulative trust preferred securities					$ 10				$ 1,000
Percentage of preferred trust securities							8.30%
Trust preferred securities annual dividend rate												8.30%	6.65%
Period of dividend									10 years
LIBOR rate									Three-month LIBOR rate plus 1.87% for the remaining 20 years
LIBOR rate trust preferred securities									1.87%
Duration of LIBOR rate									20 years
Federal funds purchased										0	0
Outstanding loan										$ 144,000	$ 144,000

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Securities Available-for-Sale - Summary of Securities Available-for-Sale (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Schedule of Available-for-sale Securities [Line Items]
Amortized cost	$ 465,943	$ 1,414,595
Gross Unrealized Gains	821	21,477
Gross Unrealized Losses	2,519	1,271
Total, Fair Value	464,245	1,434,801
U.S. Treasury [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized cost	1,997	2,000
Gross Unrealized Gains	1	4
Total, Fair Value	1,998	2,004
U.S. Government Sponsored Enterprises [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized cost	9,995	130,048
Gross Unrealized Gains	9	360
Gross Unrealized Losses		68
Total, Fair Value	10,004	130,340
SBA Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized cost	7,270	8,043
Gross Unrealized Gains	32	113
Total, Fair Value	7,302	8,156
U.S. Government Agency and Sponsored Enterprises Mortgage-Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized cost	404,103	1,212,953
Gross Unrealized Gains	588	20,816
Gross Unrealized Losses	1,501	412
Total, Fair Value	403,190	1,233,357
Privately Issued Residential Mortgage-Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized cost	2,294	2,938
Gross Unrealized Gains	6	31
Gross Unrealized Losses	23	22
Total, Fair Value	2,277	2,947
Obligations Issued by States and Political Subdivisions [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized cost	37,578	55,855
Gross Unrealized Gains	15	41
Gross Unrealized Losses	870	722
Total, Fair Value	36,723	55,174
Other Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized cost	2,300	2,300
Gross Unrealized Losses	125	47
Total, Fair Value	2,175	2,253
Equity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized cost	406	458
Gross Unrealized Gains	170	112
Total, Fair Value	$ 576	$ 570

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Financial Instruments with Off-Balance-Sheet Risk - Summary of Financial Instruments with Off-Balance-Sheet Risk (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Commitments to Originate 1-4 Family Mortgages [Member]
Financial instruments whose contract amount represents credit risk:
Financial instruments with off-balance-sheet risk	$ 3,373	$ 13,580
Standby and Commercial Letters of Credit [Member]
Financial instruments whose contract amount represents credit risk:
Financial instruments with off-balance-sheet risk	7,930	8,411
Unused Lines of Credit [Member]
Financial instruments whose contract amount represents credit risk:
Financial instruments with off-balance-sheet risk	249,941	217,246
Unadvanced Portions of Construction Loans [Member]
Financial instruments whose contract amount represents credit risk:
Financial instruments with off-balance-sheet risk	7,026	17,609
Unadvanced Portions of Other Loans [Member]
Financial instruments whose contract amount represents credit risk:
Financial instruments with off-balance-sheet risk	$ 17,750	$ 4,872

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Bank Premises and Equipment - Schedule of Bank Premises and Equipment (Detail) (USD $) In Thousands, unless otherwise specified											12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013 Land [Member]	Dec. 31, 2012 Land [Member]	Dec. 31, 2013 Bank Premises [Member]	Dec. 31, 2012 Bank Premises [Member]	Dec. 31, 2013 Furniture and Equipment [Member]	Dec. 31, 2012 Furniture and Equipment [Member]	Dec. 31, 2013 Leasehold Improvements [Member]	Dec. 31, 2012 Leasehold Improvements [Member]	Dec. 31, 2013 Minimum [Member] Bank Premises [Member]	Dec. 31, 2013 Minimum [Member] Furniture and Equipment [Member]	Dec. 31, 2013 Minimum [Member] Leasehold Improvements [Member]	Dec. 31, 2013 Maximum [Member] Bank Premises [Member]	Dec. 31, 2013 Maximum [Member] Furniture and Equipment [Member]	Dec. 31, 2013 Maximum [Member] Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Bank premises and equipment, gross	$ 64,688	$ 63,080	$ 3,478	$ 3,478	$ 19,235	$ 18,353	$ 31,965	$ 31,319	$ 10,010	$ 9,930
Accumulated depreciation and amortization	(41,288)	(39,181)
Total	$ 23,400	$ 23,899
Estimated Useful Life											30 years	3 years	30 years	39 years	10 years	39 years

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Securities Sold under Agreements to Repurchase - Summary of Securities Sold under Agreements to Repurchase (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Subordinated Debentures Activity For Year [Abstract]
Amount outstanding at December 31	$ 214,440	$ 191,390	$ 143,320
Weighted average rate at December 31	0.18%	0.17%	0.24%
Maximum amount outstanding at any month end	214,440	213,730	152,267
Daily average balance outstanding during the year	$ 203,888	$ 174,624	$ 129,137
Weighted average rate during the year	0.18%	0.21%	0.29%

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Fair Value Measurements - Additional Information (Detail) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Impaired loans recognized	$ 48,000	$ 1,909,000
Transfers between level 1 and 2	0	0
Liabilities measured at fair value on a recurring or nonrecurring basis	0	0
Fair Value Measurements, Level 3 Inputs [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Amortized cost of Level 3 securities	37,463,000	54,504,000
Unrealized loss	$ 866,000	$ 722,000

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Securities Sold under Agreements to Repurchase - Additional Information (Detail) (U.S. Government Sponsored Enterprises [Member], USD $)	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
U.S. Government Sponsored Enterprises [Member]
Assets Sold under Agreements to Repurchase [Line Items]
U.S. Government Sponsored Enterprise securities with a total amortized cost	$ 216,747,000	$ 187,995,000	$ 140,891,000
Fair value of the collateral repurchase agreement	$ 213,350,000	$ 191,704,000	$ 143,212,000

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Bank Premises and Equipment - Additional Information (Detail) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Property Plant And Equipment [Abstract]
Lease expense	$ 2,094,000	$ 2,055,000	$ 2,007,000
Lease rental income	$ 299,000	$ 329,000	$ 455,000
Operating lease premises and equipment lease expiration year, maximum	2026

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Allowance for Loan Losses - Loans by Risk Rating (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Loans by risk rating
Financing Receivable, Net	$ 1,264,763	$ 1,111,788
Construction and Land Development [Member]
Loans by risk rating
Financing Receivable, Net	33,058	38,618
Construction and Land Development [Member] | 1-3 (Pass) [Member]
Loans by risk rating
Financing Receivable, Net	25,138	29,719
Construction and Land Development [Member] | 4 (Monitor) [Member]
Loans by risk rating
Financing Receivable, Net	7,312	7,399
Construction and Land Development [Member] | 5 (Substandard) [Member]
Loans by risk rating
Financing Receivable, Net
Construction and Land Development [Member] | 6 (Doubtful) [Member]
Loans by risk rating
Financing Receivable, Net
Construction and Land Development [Member] | Impaired [Member]
Loans by risk rating
Financing Receivable, Net	608	1,500
Commercial and Industrial [Member]
Loans by risk rating
Financing Receivable, Net	92,402	88,475
Commercial and Industrial [Member] | 1-3 (Pass) [Member]
Loans by risk rating
Financing Receivable, Net	90,563	86,587
Commercial and Industrial [Member] | 4 (Monitor) [Member]
Loans by risk rating
Financing Receivable, Net	472	606
Commercial and Industrial [Member] | 5 (Substandard) [Member]
Loans by risk rating
Financing Receivable, Net
Commercial and Industrial [Member] | 6 (Doubtful) [Member]
Loans by risk rating
Financing Receivable, Net
Commercial and Industrial [Member] | Impaired [Member]
Loans by risk rating
Financing Receivable, Net	1,367	1,282
Commercial Real Estate [Member]
Loans by risk rating
Financing Receivable, Net	713,327	576,465
Commercial Real Estate [Member] | 1-3 (Pass) [Member]
Loans by risk rating
Financing Receivable, Net	707,461	569,760
Commercial Real Estate [Member] | 4 (Monitor) [Member]
Loans by risk rating
Financing Receivable, Net	1,346	4,424
Commercial Real Estate [Member] | 5 (Substandard) [Member]
Loans by risk rating
Financing Receivable, Net
Commercial Real Estate [Member] | 6 (Doubtful) [Member]
Loans by risk rating
Financing Receivable, Net
Commercial Real Estate [Member] | Impaired [Member]
Loans by risk rating
Financing Receivable, Net	$ 4,520	$ 2,281

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Employee Benefits

12 Months Ended

Dec. 31, 2013

Compensation And Retirement Disclosure [Abstract]

Employee Benefits

17. Employee Benefits

The Company has a Qualified Defined Benefit Pension Plan (the “Plan”), which had been offered to all employees reaching minimum age and service requirements. In 2006, the Bank became a member of the Savings Bank Employees Retirement Association (“SBERA”) within which it then began maintaining the Qualified Defined Benefit Pension Plan. SBERA offers a common and collective trust as the underlying investment structure for its retirement plans. The target allocation mix for the common and collective trust portfolio calls for an equity-based investment deployment range of 40% to 64% of total portfolio assets. The remainder of the portfolio is allocated to fixed income securities with target range of 15% to 25% and other investments including global asset allocation and hedge funds from 20% to 36%.

The Trustees of SBERA, through its Investment Committee, select investment managers for the common and collective trust portfolio. A professional investment advisory firm is retained by the Investment Committee to provide allocation analysis, performance measurement and to assist with manager searches. The overall investment objective is to diversify investments across a spectrum of investment types to limit risks from large market swings. The Company closed the plan to employees hired after March 31, 2006.

The measurement date for the Plan is December 31 for each year. The benefits expected to be paid in each year from 2014 to 2018 are $1,092,000, $1,176,000, $1,247,000, $1,322,000, and $1,325,000, respectively. The aggregate benefits expected to be paid in the five years from 2019 to 2023 are $8,011,000. The Company plans to contribute $1,000,000 to the Plan in 2014.

The fair value of plan assets and major categories as of December 31, 2013, is as follows:

Asset Category	Percent			Total		Level 1		Level 2		Level 3
(dollars in thousands)
Collective funds		52.9	%	$	17,092	$	856	$	16,236	$	—
Equity securities		25.9	%		8,355		8,355		—		—
Mutual funds		13.1	%		4,250		3,832		418		—
Hedge funds		7.0	%		2,256		—		—		2,256
Short-term investments		1.1	%		369		249		120		—
		100.0	%	$	32,322	$	13,292	$	16,774	$	2,256

The fair value of plan assets and major categories as of December 31, 2012, is as follows:

Asset Category	Percent			Total		Level 1		Level 2		Level 3
(dollars in thousands)
Collective funds		52.5	%	$	12,593	$	767	$	11,826	$	—
Equity securities		24.6	%		5,892		5,892		—		—
Mutual funds		14.1	%		3,370		3,086		284		—
Hedge funds		7.0	%		1,691		—		—		1,691
Short-term investments		1.8	%		437		62		375		—
		100.0	%	$	23,983	$	9,807	$	12,485	$	1,691

LEVEL 1

The plan assets measured at fair value in Level 1 are based on quoted market prices in an active exchange market.

LEVEL 2

Plan assets measured at fair value in Level 2 are based on pricing models that consider standard input factors, such as observable market data, benchmark yields, interest rate volatilities, broker/dealer quotes, credit spreads and new issue data.

LEVEL 3

Plan assets measured at fair value in Level 3 are based on unobservable inputs, which includes SBERA’s assumptions and the best information available under the circumstance. Level 3 assets consist of hedge funds. The underlying assets are valued based upon quoted exchange prices, over-the-counter trades, bid/ask prices, relative value assessments based on market conditions, and other information, as available. Further adjustments may be made based on factors impacting liquidity.

The asset or liability’s fair value measurement level within fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. Below is a description of the valuation methodologies used for assets measured at fair value.

The Trust reports bonds and other obligations, short-term investments and equity securities at fair values based on published quotations, Collective funds and hedge funds (Funds) are valued in accordance with valuations provided by such Funds, which generally value marketable securities at the last reported sales price on the valuation date and other investments at fair value, as determined by each Fund’s manager.

The preceding methods described may produce a fair value calculation that may not be indicative of net realizable value or reflective of future values. Furthermore, although the Trust believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

The changes in Level 3 securities are shown in the table below:

Year Ended December 31,	2013		2012
(dollars in thousands)
Balance at beginning of year	$	1,691	$	1,522
Purchases		55		152
Actual return – assets still being held		510		17
Balance at end of year	$	2,256	$	1,691

The performance of the plan assets is dependent upon general market conditions and specific conditions related to the issuers of the underlying securities.

The Company has a Supplemental Executive Insurance/Retirement Plan (the Supplemental Plan), which is limited to certain officers and employees of the Company. The Supplemental Plan is voluntary and participants are required to contribute to its cost. Under the Supplemental Plan, each participant will receive a retirement benefit based on compensation and length of service. Life insurance policies, which are owned by the Company, are purchased covering the lives of each participant.

The benefits expected to be paid in each year from 2014 to 2018 are $1,108,000, $1,088,000, $1,515,000, $1,973,000 and $1,981,000, respectively. The aggregate benefits expected to be paid in the five years from 2019 to 2023 are $10,341,000.

	Defined Benefit Pension  Plan						Supplemental Insurance/ Retirement Plan
	2013			2012			2013			2012
(dollars in thousands)
Change projected in benefit obligation
Benefit obligation at beginning of year	$	31,910		$	28,784		$	25,835		$	21,097
Service cost		1,196			1,097			1,554			1,425
Interest cost		1,257			1,295			1,072			923
Actuarial (gain)/loss		(3,734	)		1,401			(1,916	)		3,482
Benefits paid		(750	)		(667	)		(1,043	)		(1,092	)
Projected benefit obligation at end of year	$	29,879		$	31,910		$	25,502		$	25,835
Change in plan assets
Fair value of plan assets at beginning of year	$	23,983		$	20,517
Actual (loss) return on plan assets		4,619			2,333
Employer contributions		4,470			1,800
Benefits paid		(750	)		(667	)
Fair value of plan assets at end of year	$	32,322		$	23,983
(Unfunded) Funded status	$	2,443		$	(7,927	)	$	(25,502	)	$	(25,835	)
Accumulated benefit obligation	$	29,747		$	31,773		$	22,278		$	22,181
Weighted-average assumptions as of December 31
Discount rate — Liability		5.00	%		4.00	%		5.00	%		4.00	%
Discount rate — Expense		4.00	%		4.50	%		4.00	%		4.50	%
Expected return on plan assets		8.00	%		8.00	%		NA			NA
Rate of compensation increase		4.00	%		4.00	%		4.00	%		4.00	%
Components of net periodic benefit cost
Service cost	$	1,196		$	1,097		$	1,554		$	1,425
Interest cost		1,257			1,295			1,072			923
Expected return on plan assets		(1,880	)		(1,641	)		—			—
Recognized prior service cost		(104	)		(104	)		114			114
Recognized net losses		630			735			514			336
Net periodic cost	$	1,099		$	1,382		$	3,254		$	2,798
Other changes in plan assets and benefit obligations recognized in other comprehensive income
Amortization of prior service cost	$	104		$	104		$	(114	)	$	(114	)
Net (gain) loss		(6,956	)		(25	)		(2,401	)		3,098
Total recognized in other comprehensive income		(6,852	)		79			(2,515	)		2,984
Total recognized in net periodic benefit cost and other comprehensive income	$	(5,753	)	$	1,461		$	739		$	5,782

	December 31, 2013									December 31, 2012
	Plan			Supplemental Plan			Total			Plan			Supplemental Plan			Total
(dollars in thousands)
Prior service cost	$	516		$	(991	)	$	(475	)	$	620		$	(1,105	)	$	(485	)
Net actuarial loss		(3,361	)		(7,901	)		(11,262	)		(10,317	)		(10,302	)		(20,619	)
Total	$	(2,845	)	$	(8,892	)	$	(11,737	)	$	(9,697	)	$	(11,407	)	$	(21,104	)

The following table summarizes the amounts included in Accumulated Other Comprehensive Loss at December 31, 2013, expected to be recognized as components of net periodic benefit cost in the next year:

	Plan			Supplemental Plan
Amortization of prior service cost to be recognized in 2014	$	(104	)	$	114
Amortization of loss to be recognized in 2014		12			355

Assumptions for the expected return on plan assets and discount rates in the Company’s Plan and Supplemental Plan are periodically reviewed. As part of the review, management in consultation with independent consulting actuaries performs an analysis of expected returns based on the plan’s asset allocation. This forecast reflects the Company’s and actuarial firm’s expected return on plan assets for each significant asset class or economic indicator. The range of returns developed relies on forecasts and on broad market historical benchmarks for expected return, correlation and volatility for each asset class. Also, as a part of the review, the Company’s management in consultation with independent consulting actuaries performs an analysis of discount rates based on expected returns of high-grade fixed income debt securities.

The Company offers a 401(k) defined contribution plan for all employees reaching minimum age and service requirements. The plan is voluntary and employee contributions are matched by the Company at a rate of 33.3% for the first 6% of compensation contributed by each employee. The Company’s match totaled $322,000 for 2013, $308,000 for 2012 and $266,000 for 2011. Administrative costs associated with the plan are absorbed by the Company.

The Company has a cash incentive plan that is designed to reward our executives and officers for the achievement of annual financial performance goals of the Company as well as business line, department and individual performance. The plan supports the philosophy that management be measured for their performance as a team in the attainment of these goals. Discretionary bonus expense amounted to $1,313,000, $1,289,000 and $1,100,000 in 2013, 2012, and 2011, respectively.

The Company does not offer any postretirement programs other than pensions.

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Other Operating Expenses (Tables)

12 Months Ended

Dec. 31, 2013

Other Income And Expenses [Abstract]

Summary of Other Operating Expenses

Year ended December 31,	2013		2012		2011
(dollars in thousands)
Marketing	$	1,749	$	1,853	$	1,575
Software maintenance/amortization		1,417		1,256		951
Legal and audit		1,281		1,179		1,140
Contributions		673		1,074		479
Processing services		812		921		865
Consulting		874		890		796
Postage and delivery		939		877		773
Supplies		848		849		868
Telephone		719		750		742
Directors’ fees		373		330		309
Insurance		295		279		275
Core deposit intangible amortization		—		120		388
Other		1,500		1,230		1,280
Total	$	11,480	$	11,608	$	10,441

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Securities Sold under Agreements to Repurchase (Tables)

12 Months Ended

Dec. 31, 2013

Banking And Thrift [Abstract]

Summary of Securities Sold under Agreements to Repurchase

The following is a summary of securities sold under agreements to repurchase as of December 31,

	2013			2012			2011
(dollars in thousands)
Amount outstanding at December 31	$	214,440		$	191,390		$	143,320
Weighted average rate at December 31		0.18	%		0.17	%		0.24	%
Maximum amount outstanding at any month end	$	214,440		$	213,730		$	152,267
Daily average balance outstanding during the year	$	203,888		$	174,624		$	129,137
Weighted average rate during the year		0.18	%		0.21	%		0.29	%

XML

Allowance for Loan Losses - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Financing Receivable, Allowance for Credit Losses [Line Items]
Troubled debt restructurings, subsequently defaulted	$ 6,000	$ 0
Commercial and Industrial [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing allowance reduction in principal	808	6,000
Financing allowance reduction in interest payments	606
Number of troubled debt restructurings	1
Commercial Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing allowance reduction in interest payments	23,227
Financing allowance increase in principal	5,246
Construction and Land Development [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing allowance reduction in principal	1,515
Financing allowance reduction in interest payments	1,098
Residential Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing allowance reduction in principal	4,704
Financing allowance reduction in interest payments	$ 4,104	$ 8,000

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Stockholders' Equity Dividends - Summary of the Company's Actual Capital Amounts and Ratios (Detail) (Company [Member], USD $)	Dec. 31, 2013	Dec. 31, 2012
Company [Member]
Compliance with Regulatory Capital Requirements for Mortgage Companies [Line Items]
Total Capital (to Risk-Weighted Assets), Actual Amount	$ 247,761	$ 227,945
Tier 1 Capital (to Risk-Weighted Assets), Actual Amount	227,000	209,668
Tier 1 Capital (to 4th Qtr. Average Assets), Actual Amount	227,000	209,668
Total Capital (to Risk-Weighted Assets), Ratio	14.92%	15.59%
Tier 1 Capital (to Risk-Weighted Assets), Ratio	13.67%	14.34%
Tier 1 Capital (to 4th Qtr. Average Assets), Ratio	6.50%	6.80%
Total Capital (to Risk-Weighted Assets), Capital Adequacy Amount	132,870	116,976
Tier 1 Capital (to Risk-Weighted Assets), Capital Adequacy Amount	66,435	58,488
Tier 1 Capital (to 4th Qtr. Average Assets), Capital Adequacy Amount	139,769	123,377
Total Capital (to Risk-Weighted Assets), Capital Adequacy Ratio	8.00%	8.00%
Tier 1 Capital (to Risk-Weighted Assets), Capital Adequacy Ratio	4.00%	4.00%
Tier 1 Capital (to 4th Qtr. Average Assets), Capital Adequacy Ratio	4.00%	4.00%
Total Capital (to Risk-Weighted Assets), Well Capitalized Amount	166,088	146,220
Tier 1 Capital (to Risk-Weighted Assets), Well Capitalized Amount	99,653	87,732
Tier 1 Capital (to 4th Qtr. Average Assets), Well Capitalized Amount	$ 174,711	$ 154,221
Total Capital (to Risk-Weighted Assets), Well Capitalized Ratio	10.00%	10.00%
Tier 1 Capital (to Risk-Weighted Assets), Well Capitalized Ratio	6.00%	6.00%
Tier 1 Capital (to 4th Qtr. Average Assets), Well Capitalized Ratio	5.00%	5.00%

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Allowance for Loan Losses (Tables)

12 Months Ended

Dec. 31, 2013

Receivables [Abstract]

Summary of Changes in Allowance for Loan Losses

An analysis of the allowance for loan losses for each of the three years ending December 31, 2013, 2012 and 2011 is as follows:

	2013			2012			2011
(dollars in thousands)
Allowance for loan losses, beginning of year	$	19,197		$	16,574		$	14,053
Loans charged-off		(1,813	)		(2,301	)		(2,824	)
Recoveries on loans previously charged-off		847			774			795
Net charge-offs		(966	)		(1,527	)		(2,029	)
Provision charged to expense		2,710			4,150			4,550
Allowance for loan losses, end of year	$	20,941		$	19,197		$	16,574

Summary of Allowance for Loan Losses

Further information pertaining to the allowance for loan losses at December 31, 2013 follows:

	Construction and Land Development			Commercial and Industrial			Commercial Real Estate		Residential Real Estate		Consumer			Home Equity		Unallocated		Total
(dollars in thousands)
Allowance for Loan Losses:
Balance at December 31, 2012	$	3,041		$	3,118		$	9,065	$	1,994	$	333		$	886	$	760	$	19,197
Charge-offs		(1,000	)		(234	)		—		—		(579	)		—		—		(1,813	)
Recoveries		—			389			19		11		427			1		—		847
EAProvision		133			(284	)		2,134		1		251			72		403		2,710
Ending balance at December 31, 2013	$	2,174		$	2,989		$	11,218	$	2,006	$	432		$	959	$	1,163	$	20,941
Amount of allowance for loan losses for loans deemed to be impaired	$	12		$	367		$	417	$	129	$	—		$	94	$	—	$	1,019
Amount of allowance for loan losses for loans not deemed to be impaired	$	2,162		$	2,622		$	10,801	$	1,877	$	432		$	865	$	1,163	$	19,922
Loans:
Ending balance	$	33,058		$	92,402		$	713,327	$	286,041	$	9,658		$	130,277	$	—	$	1,264,763
Loans deemed to be impaired	$	608		$	1,367		$	4,520	$	1,199	$	—		$	94	$	—	$	7,788
Loans not deemed to be impaired	$	32,450		$	91,035		$	708,807	$	284,842	$	9,658		$	130,183	$	—	$	1,256,975

Further information pertaining to the allowance for loan losses at December 31, 2012 follows:

	Construction and Land Development		Commercial and Industrial			Commercial Real Estate		Residential Real Estate			Consumer			Home Equity			Unallocated			Total
(dollars in thousands)
Allowance for Loan Losses:
Balance at December 31, 2011	$	2,893	$	3,139		$	6,566	$	1,886		$	356		$	704		$	1,030		$	16,574
Charge-offs		—		(1,253	)		—		(192	)		(697	)		(159	)		—			(2,301	)
Recoveries		—		307			9		17			422			19			—			774
Provision		148		925			2,490		283			252			322			(270	)		4,150
Ending balance at December 31, 2012	$	3,041	$	3,118		$	9,065	$	1,994		$	333		$	886		$	760		$	19,197
Amount of allowance for loan losses or loans deemed to be impaired	$	1,000	$	104		$	415	$	117		$	—		$	96		$	—		$	1,732
Amount of allowance for loan losses for loans not deemed to be impaired	$	2,041	$	3,014		$	8,650	$	1,877		$	333		$	790		$	760		$	17,465
Loans:
Ending balance	$	38,618	$	88,475		$	576,465	$	281,857		$	7,450		$	118,923		$	—		$	1,111,788
Loans deemed to be impaired	$	1,500	$	1,282		$	2,281	$	766		$	—		$	96		$	—		$	5,925
Loans not deemed to be impaired	$	37,118	$	87,193		$	574,184	$	281,091		$	7,450		$	118,827		$	—		$	1,105,863

Loans by Risk Rating

The following table presents the Company’s loans by risk rating at December 31, 2013.

	Construction and Land Development		Commercial and Industrial		Commercial Real Estate
(dollars in thousands)
Grade:
1-3 (Pass)	$	25,138	$	90,563	$	707,461
4 (Monitor)		7,312		472		1,346
5 (Substandard)		—		—		—
6 (Doubtful)		—		—		—
Impaired		608		1,367		4,520
Total	$	33,058	$	92,402	$	713,327

The following table presents the Company’s loans by risk rating at December 31, 2012.

	Construction and Land Development		Commercial and Industrial		Commercial Real Estate
(dollars in thousands)
Grade:
1-3 (Pass)	$	29,719	$	86,587	$	569,760
4 (Monitor)		7,399		606		4,424
5 (Substandard)		—		—		—
6 (Doubtful)		—		—		—
Impaired		1,500		1,282		2,281
Total	$	38,618	$	88,475	$	576,465

Aging of Past-Due Loans

Further information pertaining to the allowance for loan losses at December 31, 2013 follows:

	Accruing 30-89 Days Past Due		Non Accrual		Accruing Greater Than 90 Days		Total Past Due		Current Loans		Total
(dollars in thousands)
Construction and land development	$	—	$	500	$	—	$	500	$	32,558	$	33,058
Commercial and industrial		112		706		—		818		91,584		92,402
Commercial real estate		1,496		306		—		1,802		711,525		713,327
Residential real estate		2,232		1,034		—		3,266		282,775		286,041
Consumer and overdrafts		11		3		—		14		9,644		9,658
Home equity		1,710		—		—		1,710		128,567		130,277
Total	$	5,561	$	2,549	$	—	$	8,110	$	1,256,653	$	1,264,763

Further information pertaining to the allowance for loan losses at December 31, 2012 follows:

	Accruing 30-89 Days Past Due		Non Accrual		Accruing Greater Than 90 Days		Total Past Due		Current Loans		Total
(dollars in thousands)
Construction and land development	$	—	$	1,500	$	—	$	1,500	$	37,118	$	38,618
Commercial and industrial		1,256		676		—		1,932		86,543		88,475
Commercial real estate		3,450		674		—		4,124		572,341		576,465
Residential real estate		864		1,597		—		2,461		279,396		281,857
Consumer and overdrafts		32		24		—		56		7,394		7,450
Home equity		1,088		—		—		1,088		117,835		118,923
Total	$	6,690	$	4,471	$	—	$	11,161	$	1,100,627	$	1,111,788

Information Pertaining to Impaired Loans

The following is information pertaining to impaired loans at December 31, 2013:

	Carrying Value		Unpaid Balance Principal		Required Reserve		Average Carrying Value Recognized		Interest Income
(dollars in thousands)
With no required reserve recorded:
Construction and land development	$	500	$	3,292	$	—	$	—	$	—
Commercial and industrial		238		268		—		361		1
Commercial real estate		82		82		—		132		—
Residential real estate		246		259		—		169		—
Consumer		—		—		—		—		—
Home equity		—		—		—		—		—
Total	$	1,066	$	3,901	$	—	$	662	$	1
With required reserve recorded:
Construction and land development	$	108	$	108	$	12	$	1,371	$	1
Commercial and industrial		1,129		1,371		367		902		37
Commercial real estate		4,438		4,527		417		2,868		120
Residential real estate		953		1,035		129		878		2
Consumer		—		—		—		—		—
Home equity		94		94		94		95		—
Total	$	6,722	$	7,135	$	1,019	$	6,114	$	160
Total
Construction and land development	$	608	$	3,400	$	12	$	1,371	$	1
Commercial and industrial		1,367		1,639		367		1,263		38
Commercial real estate		4,520		4,609		417		3,000		120
Residential real estate		1,199		1,294		129		1,047		2
Consumer		—		—		—		—		—
Home equity		94		94		94		95		—
Total	$	7,788	$	11,036	$	1,019	$	6,776	$	161

The following is information pertaining to impaired loans at December 31, 2012:

	Carrying Value		Unpaid Balance Principal		Required Reserve		Average Carrying Value		Interest Income Recognized
(dollars in thousands)
With no required reserve recorded:
Construction and land development	$	—	$	—	$	—	$	346	$	—
Commercial and industrial		503		994		—		425		1
Commercial real estate		169		199		—		176		—
Residential real estate		30		31		—		124		—
Consumer		—		—		—		—		—
Home equity		—		—		—		—		—
Total	$	702	$	1,224	$	—	$	1,071	$	1
With required reserve recorded:
Construction and land development	$	1,500	$	3,292	$	1,000	$	1,154	$	—
Commercial and industrial		779		995		104		1,317		40
Commercial real estate		2,112		2,158		415		2,817		138
Residential real estate		736		736		117		640		1
Consumer		—		—		—		—		—
Home equity		96		96		96		44		—
Total	$	5,223	$	7,277	$	1,732	$	5,972	$	179
Total
Construction and land development	$	1,500	$	3,292	$	1,000	$	1,500	$	—
Commercial and industrial		1,282		1,989		104		1,742		41
Commercial real estate		2,281		2,357		415		2,993		138
Residential real estate		766		767		117		764		1
Consumer		—		—		—		—		—
Home equity		96		96		96		44		—
Total	$	5,925	$	8,501	$	1,732	$	7,043	$	180

Troubled Debt Restructurings

The following is information pertaining to troubled debt restructurings occurring during the year ended December 31, 2013:

	Number of Contracts		Pre-modification Outstanding Recorded Investment		Post-modification Outstanding Recorded Investment
(dollars in thousands)
Construction and land development		1	$	108	$	108
Commercial and industrial		2		67		64
Commercial real estate		3		2,376		2,356
Residential real estate		1		285		162
Total		7	$	2,836	$	2,690

The following is information pertaining to troubled debt restructurings occurring during the year ended December 31, 2012:

	Number of Contracts		Pre-modification Outstanding Recorded Investment		Post-modification Outstanding Recorded  Investment
(dollars in thousands)
Construction and land development		1	$	750	$	736
Commercial and industrial		1		6		6
Commercial real estate		1		98		96
Total		3	$	854	$	838

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Quarterly Results of Operations (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2013

Quarterly Financial Information Disclosure [Abstract]

Quarterly Results of Operations (Unaudited)

2013 Quarters	Fourth		Third		Second		First
(in thousands, except share data)
Interest income	$	20,947	$	20,549	$	19,132	$	19,137
Interest expense		4,842		4,751		4,620		4,592
Net interest income		16,105		15,798		14,512		14,545
Provision for loan losses		460		750		750		750
Net interest income after provision for loan losses		15,645		15,048		13,762		13,795
Other operating income		4,186		4,774		5,221		4,434
Operating expenses		14,690		13,995		13,662		13,465
Income before income taxes		5,141		5,827		5,321		4,764
Provision for income taxes		116		308		295		288
Net income	$	5,025	$	5,519	$	5,026	$	4,476
Share data:
Average shares outstanding, basic
Class A		3,580,404		3,578,400		3,574,379		3,569,546
Class B		1,976,180		1,978,180		1,982,180		1,986,880
Average shares outstanding, diluted
Class A		5,557,419		5,558,031		5,557,354		5,557,365
Class B		1,976,180		1,978,180		1,982,180		1,986,880
Earnings per share, basic
Class A	$	1.10	$	1.21	$	1.10	$	0.98
Class B	$	0.55	$	0.60	$	0.55	$	0.49
Earnings per share, diluted
Class A	$	0.90	$	0.99	$	0.90	$	0.81
Class B	$	0.55	$	0.60	$	0.55	$	0.49

2012 Quarters	Fourth		Third		Second		First
(in thousands, except share data)
Interest income	$	19,738	$	22,079	$	20,312	$	19,365
Interest expense		4,795		4,859		4,923		4,963
Net interest income		14,943		17,220		15,389		14,402
Provision for loan losses		900		1,250		900		1,100
Net interest income after provision for loan losses		14,043		15,970		14,489		13,302
Other operating income		4,153		4,105		3,988		3,619
Operating expenses		13,279		13,708		13,451		12,800
Income before income taxes		4,917		6,367		5,026		4,121
Provision for income taxes		139		685		255		313
Net income	$	4,778	$	5,682	$	4,771	$	3,808
Share data:
Average shares outstanding, basic
Class A		3,564,145		3,559,125		3,556,474		3,550,993
Class B		1,986,880		1,989,380		1,991,880		1,993,755
Average shares outstanding, diluted
Class A		5,552,121		5,549,810		5,548,830		5,545,711
Class B		1,986,880		1,989,380		1,991,880		1,993,755
Earnings per share, basic
Class A	$	1.05	$	1.25	$	1.05	$	0.84
Class B	$	0.52	$	0.62	$	0.52	$	0.42
Earnings per share, diluted
Class A	$	0.86	$	1.02	$	0.86	$	0.69
Class B	$	0.52	$	0.62	$	0.52	$	0.42

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Loans - Composition of Nonaccrual Loans and Impaired Loans (Detail) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Debt Disclosure [Abstract]
Loans on nonaccrual	$ 2,549,000	$ 4,471,000	$ 5,827,000
Loans 90 days past due and still accruing			18,000
Impaired loans on nonaccrual included above	1,819,000	2,878,000	3,468,000
Total recorded investment in impaired loans	7,788,000	5,925,000	8,102,000
Average recorded investment of impaired loans	6,776,000	7,043,000	10,284,000
Accruing troubled debt restructures	5,969,000	3,048,000	4,634,000
Interest income not recorded on nonaccrual loans according to their original terms	711,000	753,000	846,000
Interest income on nonaccrual loans actually recorded
Interest income recognized on impaired loans	$ 161,000	$ 180,000	$ 155,000

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Fair Values of Financial Instruments - Carrying Amounts and Fair Values of Company's Financial Instruments (Detail) (USD $)	Dec. 31, 2013	Dec. 31, 2012
Financial assets:
Securities held-to-maturity	$ 1,487,884,000	$ 275,507,000
Loans	1,243,822,000	1,092,591,000
Financial liabilities:
Time deposits	382,224,000	419,983,000
Other borrowed funds	255,144,000	195,144,000
Subordinated debentures	36,083,000	36,083,000
Carrying Value [Member]
Financial assets:
Securities held-to-maturity	1,487,884,000	275,507,000
Loans	1,243,822,000	1,092,591,000
Financial liabilities:
Time deposits	382,224,000	419,983,000
Other borrowed funds	255,144,000	195,144,000
Subordinated debentures	36,083,000	36,083,000
Estimated Fair Value [Member]
Financial assets:
Securities held-to-maturity	1,464,449,000	281,924,000
Loans	1,214,192,000	1,124,716,000
Financial liabilities:
Time deposits	386,742,000	424,253,000
Other borrowed funds	254,736,000	205,481,000
Subordinated debentures	39,503,000	43,423,000
Fair Value Measurements, Level 1 Inputs [Member]
Financial assets:
Securities held-to-maturity
Loans
Financial liabilities:
Time deposits
Other borrowed funds
Subordinated debentures
Fair Value Measurements, Level 2 Inputs [Member]
Financial assets:
Securities held-to-maturity	1,464,449,000	281,924,000
Financial liabilities:
Time deposits	386,742,000	424,253,000
Other borrowed funds	254,736,000	205,481,000
Fair Value Measurements, Level 3 Inputs [Member]
Financial assets:
Loans	1,214,192,000	1,124,716,000
Financial liabilities:
Subordinated debentures	$ 39,503,000	$ 43,423,000

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Investment Securities Held-to-Maturity - Unrealized Gain (Losses) on Securities (Detail) (USD $)	Dec. 31, 2013	Dec. 31, 2012
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	$ 1,487,884,000	$ 275,507,000
Gross Unrealized Gains	2,424,000	6,499,000
Gross Unrealized Losses	25,859,000	82,000
Estimated Fair Value	1,464,449,000	281,924,000
U.S. Government Sponsored Enterprises [Member]
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	291,779,000	17,747,000
Gross Unrealized Gains	185,000	19,000
Gross Unrealized Losses	5,043,000	8,000
Estimated Fair Value	286,921,000	17,758,000
U.S. Government Agency and Sponsored Enterprises Mortgage-Backed Securities [Member]
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	1,196,105,000	257,760,000
Gross Unrealized Gains	2,239,000	6,480,000
Gross Unrealized Losses	20,816,000	74,000
Estimated Fair Value	$ 1,177,528,000	$ 264,166,000

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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

Summary of Current and Deferred Components of Income Tax Expense

The current and deferred components of income tax expense for the years ended December 31 are as follows:

	2013			2012			2011
(dollars in thousands)
Current expense:
Federal	$	3,520		$	3,181		$	2,198
State		416			315			309
Total current expense		3,936			3,496			2,507
Deferred (benefit) expense:
Federal		(2,564	)		(1,833	)		(961	)
State		(365	)		(271	)		8
Total deferred benefit		(2,929	)		(2,104	)		(953	)
Provision for income taxes	$	1,007		$	1,392		$	1,554

Income Tax Accounts Included in Other Assets/Liabilities

Income tax accounts included in other assets/liabilities at December 31 are as follows:

	2013		2012
(dollars in thousands)
Currently receivable	$	702	$	630
Deferred income tax asset, net		30,857		14,551
Total	$	31,559	$	15,181

Summary of Differences between Income Tax Expense at the Statutory Federal Income Tax Rate and Total Income Tax Expense

Differences between income tax expense at the statutory federal income tax rate and total income tax expense are summarized as follows:

	2013			2012			2011
(dollars in thousands)
Federal income tax expense at statutory rates	$	7,158		$	6,946		$	6,204
State income tax, net of federal income tax benefit		34			29			209
Insurance income		(380	)		(396	)		(396	)
Effect of tax-exempt interest		(5,348	)		(4,628	)		(3,801	)
Net tax credit		(572	)		(633	)		(683	)
Other		115			74			21
Total	$	1,007		$	1,392		$	1,554
Effective tax rate		4.8	%		6.8	%		8.5	%

Gross Deferred Income Tax Assets and Gross Deferred Income Tax Liabilities

The following table sets forth the Company’s gross deferred income tax assets and gross deferred income tax liabilities at December 31:

	2013			2012
(dollars in thousands)
Deferred income tax assets:
Allowance for loan losses	$	9,199		$	8,103
Unrealized losses on securities transferred to held-to-maturity		8,590			—
Deferred compensation		6,515			5,643
Pension and SERP liability		4,880			8,621
AMT credit		3,164			1,908
Unrealized losses (gains) on securities available-for-sale		652			(7,875	)
Acquisition premium		438			541
Nonaccrual interest		136			151
Depreciation		109			(36	)
Investments write down		26			26
Deferred gain		—			11
Other		198			235
Gross deferred income tax asset		33,907			17,328
Deferred income tax liabilities:
Limited partnerships		(2,769	)		(2,722	)
Mortgage servicing rights		(281	)		(55	)
Gross deferred income tax liability		(3,050	)		(2,777	)
Deferred income tax asset net	$	30,857		$	14,551

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Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2013

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

1.     Summary of Significant Accounting Policies

BASIS OF FINANCIAL STATEMENT PRESENTATION

The consolidated financial statements include the accounts of Century Bancorp, Inc. (the “Company”) and its wholly owned subsidiary, Century Bank and Trust Company (the “Bank”). The consolidated financial statements also include the accounts of the Bank’s wholly owned subsidiaries, Century Subsidiary Investments, Inc. (“CSII”), Century Subsidiary Investments, Inc. II (“CSII II”), Century Subsidiary Investments, Inc. III (“CSII III”) and Century Financial Services Inc. (“CFSI”). CSII, CSII II, and CSII III are engaged in buying, selling and holding investment securities. CFSI has the power to engage in financial agency, securities brokerage, and investment and financial advisory services and related securities credit. The Company also owns 100% of Century Bancorp Capital Trust II (“CBCT II”). The entity is an unconsolidated subsidiary of the Company.

All significant intercompany accounts and transactions have been eliminated in consolidation. The Company provides a full range of banking services to individual, business and municipal customers in Massachusetts. As a bank holding company, the Company is subject to the regulation and supervision of the Federal Reserve Board. The Bank, a state chartered financial institution, is subject to supervision and regulation by applicable state and federal banking agencies, including the Federal Reserve Board, the Federal Deposit Insurance Corporation (the “FDIC”) and the Commonwealth of Massachusetts Commissioner of Banks. The Bank is also subject to various requirements and restrictions under federal and state law, including requirements to maintain reserves against deposits, restrictions on the types and amounts of loans that may be granted and the interest that may be charged thereon, and limitations on the types of investments that may be made and the types of services that may be offered. Various consumer laws and regulations also affect the operations of the Bank. In addition to the impact of regulation, commercial banks are affected significantly by the actions of the Federal Reserve Board as it attempts to control the money supply and credit availability in order to influence the economy. All aspects of the Company’s business are highly competitive. The Company faces aggressive competition from other lending institutions and from numerous other providers of financial services. The Company has one reportable operating segment.

The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America and general practices within the banking industry. In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and revenues and expenses for the period. Actual results could differ from those estimates.

Material estimates that are susceptible to change in the near term relate to the allowance for loan losses. Management believes that the allowance for loan losses is adequate based on independent appraisals and review of other factors, including historical charge-off rates with additional allocations based on risk factors for each category and general economic factors. While management uses available information to recognize loan losses, future additions to the allowance for loan losses may be necessary based on changes in economic conditions. In addition, regulatory agencies periodically review the Company’s allowance for loan losses. Such agencies may require the Company to recognize additions to the allowance for loan losses based on their judgments about information available to them at the time of their examination. Certain reclassifications are made to prior-year amounts whenever necessary to conform with the current-year presentation.

FAIR VALUE MEASUREMENTS

The Company follows FASB ASC 820-10, Fair Value Measurements and Disclosures, (formerly SFAS 157, “Fair Value Measurements,”) which among other things, requires enhanced disclosures about assets and liabilities carried at fair value. ASC 820-10 establishes a hierarchal disclosure framework associated with the level of pricing observability utilized in measuring financial instruments at fair value. The three broad levels of the hierarchy are as follows:

Level I — Quoted prices are available in active markets for identical assets or liabilities as of the reported date. The type of financial instruments included in Level I are highly liquid cash instruments with quoted prices, such as G-7 government, agency securities, listed equities and money market securities, as well as listed derivative instruments.

Level II — Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reported date. The nature of these financial instruments includes cash instruments for which quoted prices are available but traded less frequently, derivative instruments whose fair value has been derived using a model where inputs to the model are directly observable in the market or can be derived principally from or corroborated by observable market data, and instruments that are fair valued using other financial instruments, the parameters of which can be directly observed. Instruments that are generally included in this category are corporate bonds and loans, mortgage whole loans, municipal bonds and over the counter (“OTC”) derivatives.

Level III — These instruments have little to no pricing observability as of the reported date. These financial instruments do not have two-way markets and are measured using management’s best estimate of fair value, where the inputs into the determination of fair value require significant management judgment or estimation. Instruments that are included in this category generally include certain commercial mortgage loans, certain private equity investments, distressed debt, and noninvestment grade residual interests in securitizations as well as certain highly structured OTC derivative contracts.

CASH AND CASH EQUIVALENTS

For purposes of reporting cash flows, cash equivalents include highly liquid assets with an original maturity of three months or less. Highly liquid assets include cash and due from banks, federal funds sold and certificates of deposit.

SHORT-TERM INVESTMENTS

As of December 31, 2013 and 2012, short-term investments include highly liquid certificates of deposit with original maturities of more than 90 days but less than one year.

INVESTMENT SECURITIES

Debt securities that the Company has the positive intent and ability to hold to maturity are classified as held-to-maturity and reported at amortized cost; debt and equity securities that are bought and held principally for the purpose of selling are classified as trading and reported at fair value, with unrealized gains and losses included in earnings; and debt and equity securities not classified as either held-to-maturity or trading are classified as available-for-sale and reported at fair value, with unrealized gains and losses excluded from earnings and reported as a separate component of stockholders’ equity, net of estimated related income taxes. The Company has no securities held for trading.

Premiums and discounts on investment securities are amortized or accreted into income by use of the level-yield method. If a decline in fair value below the amortized cost basis of an investment is judged to be other-than-temporary, the cost basis of the investment is written down to fair value. The total amount of the impairment charge is recognized in earnings, with an offset for the noncredit component, which is recognized as other comprehensive income. Gains and losses on the sale of investment securities are recognized on the trade date on a specific identification basis.

The transfer of a security between categories of investments shall be accounted for at fair value. For a debt security transferred into the held-to-maturity category from the available-for-sale category, the unrealized holding gain or loss at the date of the transfer shall continue to be reported in a separate component of shareholders’ equity but shall be amortized over the remaining life of the security as an adjustment of yield in a manner consistent with the amortization of any premium or discount. The amortization of an unrealized holding gain or loss reported in equity will offset or mitigate the effect on interest income of the amortization of the premium or discount for that held-to-maturity security.

FEDERAL HOME LOAN BANK STOCK

The Bank, as a member of the Federal Home Loan Bank of Boston (“FHLBB”) system, is required to maintain an investment in capital stock of the FHLBB. Based on redemption provisions, the stock has no quoted market value and is carried at cost. At its discretion, the FHLBB may declare dividends on the stock. The Company reviews for impairment based on the ultimate recoverability of the cost basis of the stock. For the year ended December 31, 2013, the FHLBB reported preliminary net income of $212.3 million. The FHLBB also declared a dividend equal to an annual yield of 1.49%. As of December 31, 2013, no impairment has been recognized.

LOANS HELD FOR SALE

Loans originated and intended for sale in the secondary market are carried at the lower of cost or estimated fair value in the aggregate. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income.

LOANS

Interest on loans is recognized based on the daily principal amount outstanding. Accrual of interest is discontinued when loans become ninety days delinquent unless the collateral is sufficient to cover both principal and interest and the loan is in the process of collection. Past-due status is based on contractual terms of the loan. Loans, including impaired loans, on which the accrual of interest has been discontinued, are designated nonaccrual loans. When a loan is placed on nonaccrual, all income that has been accrued but remains unpaid is reversed against current period income, and all amortization of deferred loan costs and fees is discontinued. Nonaccrual loans may be returned to an accrual status when principal and interest payments are not delinquent or the risk characteristics of the loan have improved to the extent that there no longer exists a concern as to the collectibility of principal and interest. Income received on nonaccrual loans is either recorded in income or applied to the principal balance of the loan, depending on management’s evaluation as to the collectibility of principal.

Loan origination fees and related direct loan origination costs are offset, and the resulting net amount is deferred and amortized over the life of the related loans using the level-yield method. Prepayments are not initially considered when amortizing premiums and discounts.

The Bank measures impairment for impaired loans at either the fair value of the loan, the present value of the expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral if the loan is collateral dependent. This method applies to all loans, uncollateralized as well as collateralized, except large groups of smaller-balance homogeneous loans such as residential real estate and consumer loans that are collectively evaluated for impairment and loans that are measured at fair value. For collateral dependent loans, the amount of the recorded investment in a loan that exceeds the fair value of the collateral is charged-off against the allowance for loan losses in lieu of an allocation of a specific allowance when such an amount has been identified definitively as uncollectible. Management considers the payment status, net worth and earnings potential of the borrower, and the value and cash flow of the collateral as factors to determine if a loan will be paid in accordance with its contractual terms. Management does not set any minimum delay of payments as a factor in reviewing for impaired classification. Loans are charged-off when management believes that the collectibility of the loan’s principal is not probable. The specific factors that management considers in making the determination that the collectibility of the loan’s principal is not probable include the delinquency status of the loan, the fair value of the collateral, if secured, and, the financial strength of the borrower and/or guarantors. In addition, criteria for classification of a loan as in-substance foreclosure has been modified so that such classification need be made only when a lender is in possession of the collateral. The Bank measures the impairment of troubled debt restructurings using the pre-modification rate of interest.

TRANSFERS OF FINANCIAL ASSETS

Transfers of financial assets, typically residential mortgages and loan participations for the Company, are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets.

ACQUIRED LOANS

In accordance with FASB ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality (formerly Statement of Position (“SOP”) No. 03-3, “Accounting for Certain Loans or Debt Securities Acquired in a Transfer”) the Company reviews acquired loans for differences between contractual cash flows and cash flows expected to be collected from the Company’s initial investment in the acquired loans to determine if those differences are attributable, at least in part, to credit quality. If those differences are attributable to credit quality, the loan’s contractually required payments received in excess of the amount of its cash flows expected at acquisition, or nonaccretable discount, is not accreted into income. FASB ASC 310-30 requires that the Company recognize the excess of all cash flows expected at acquisition over the Company’s initial investment in the loan as interest income using the interest method over the term of the loan. This excess is referred to as accretable discount and is recorded as a reduction of the loan balance.

Loans which, at acquisition, do not have evidence of deterioration of credit quality since origination are outside the scope of FASB ASC 310-30. For such loans, the discount, if any, representing the excess of the amount of reasonably estimable and probable discounted future cash collections over the purchase price, is accreted into interest income using the interest method over the term of the loan. Prepayments are not considered in the calculation of accretion income. Additionally, the discount is not accreted on nonperforming loans.

When a loan is paid off, the excess of any cash received over the net investment is recorded as interest income. In addition to the amount of purchase discount that is recognized at that time, income may include interest owed by the borrower prior to the Company’s acquisition of the loan, interest collected if on nonperforming status, prepayment fees and other loan fees.

NONPERFORMING ASSETS

In addition to nonperforming loans, nonperforming assets include other real estate owned. Other real estate owned is comprised of properties acquired through foreclosure or acceptance of a deed in lieu of foreclosure. Other real estate owned is recorded initially at estimated fair value less costs to sell. When such assets are acquired, the excess of the loan balance over the estimated fair value of the asset is charged to the allowance for loan losses. An allowance for losses on other real estate owned is established by a charge to earnings when, upon periodic evaluation by management, further declines in the estimated fair value of properties have occurred. Such evaluations are based on an analysis of individual properties as well as a general assessment of current real estate market conditions. Holding costs and rental income on properties are included in current operations, while certain costs to improve such properties are capitalized. Gains and losses from the sale of other real estate owned are reflected in earnings when realized.

ALLOWANCE FOR LOAN LOSSES

The allowance for loan losses is based on management’s evaluation of the quality of the loan portfolio and is used to provide for losses resulting from loans that ultimately prove uncollectible. In determining the level of the allowance, periodic evaluations are made of the loan portfolio, which takes into account such factors as the character of the loans, loan status, financial posture of the borrowers, value of collateral securing the loans and other relevant information sufficient to reach an informed judgment. The allowance is increased by provisions charged to income and reduced by loan charge-offs, net of recoveries. Management maintains an allowance for loan losses to absorb losses inherent in the loan portfolio. The allowance is based on assessments of the probable estimated losses inherent in the loan portfolio. Management’s methodology for assessing the appropriateness of the allowance consists of several key elements, which include the formula allowance, specific allowances, if appropriate, for identified problem loans and the unallocated allowance. Arriving at an appropriate level of allowance for loan losses necessarily involves a high degree of judgment.

While management uses available information in establishing the allowance for loan losses, future adjustments to the allowance may be necessary if economic conditions differ substantially from the assumptions used in making the evaluations. Loans are charged-off in whole or in part when, in management’s opinion, collectibility is not probable. The specific factors that management considers in making the determination that the collectibility of the loan’s principal is not probable include the delinquency status of the loan, the fair value of the collateral and the financial strength of the borrower and/or guarantors. For collateral dependent loans, the amount of the recorded investment in a loan that exceeds the fair value of the collateral is charged-off against the allowance for loan losses in lieu of an allocation of a specific allowance when such an amount has been identified definitively as uncollectible.

The formula allowance evaluates groups of loans to determine the allocation appropriate within each portfolio segment. Individual loans within the commercial and industrial, commercial real estate and real estate construction loan portfolio segments are assigned internal risk ratings to group them with other loans possessing similar risk characteristics. Changes in risk grades affect the amount of the formula allowance. Risk grades are determined by reviewing current collateral value, financial information, cash flow, payment history and other relevant facts surrounding the particular credit. Provisions for losses on the remaining commercial and commercial real estate loans are based on pools of similar loans using a combination of historical net loss experience and qualitative adjustments. For the residential real estate and consumer loan portfolios, the reserves are calculated by applying historical charge-off and recovery experience and qualitative adjustments to the current outstanding balance in each loan category. Loss factors are based on the Company’s historical net loss experience as well as regulatory guidelines.

Specific allowances for loan losses entail the assignment of allowance amounts to individual loans on the basis of loan impairment. Certain loans are evaluated individually and are judged to be impaired when management believes it is probable that the Company will not collect all the contractual interest and principal payments as scheduled in the loan agreement. Under this method, loans are selected for evaluation based upon a change in internal risk rating, occurrence of delinquency, loan classification or nonaccrual status. A specific allowance amount is allocated to an individual loan when such loan has been deemed impaired and when the amount of a probable loss is able to be estimated on the basis of: (a) present value of anticipated future cash flows, (b) the loan’s observable fair market price or (c) fair value of collateral if the loan is collateral dependent.

The formula allowance and specific allowances also include management’s evaluation of various conditions, including business and economic conditions, delinquency trends, charge-off experience and other quality factors.

An unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating allocated and general reserves in the portfolio.

Management has identified certain risk factors, which could impact the degree of loss sustained within the portfolio. These include: (a) market risk factors, such as the effects of economic variability on the entire portfolio and (b) unique portfolio risk factors that are inherent characteristics of the Company’s loan portfolio. Market risk factors may consist of changes to general economic and business conditions that may impact the Company’s loan portfolio customer base in terms of ability to repay and that may result in changes in value of underlying collateral. Unique portfolio risk factors may include industry concentrations and geographic concentrations or trends that may exacerbate losses resulting from economic events which the Company may not be able to fully diversify out of its portfolio.

The qualitative factors are determined based on the various risk characteristics of each loan segment. Risk characteristics relevant to each portfolio segment are as follows:

Residential real estate — The Company generally does not originate loans with a loan-to-value ratio greater than 80 percent. All loans in this segment are collateralized by owner-occupied residential real estate and repayment is dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment rates, will have an effect on the credit quality in the segment.

Commercial real estate — Loans in this segment are primarily income-producing properties. Also included are loans to educational institutions, hospitals and other non-profit organizations. The underlying cash flows generated by the properties are adversely impacted by a downturn in the economy as evidenced by increased vacancy rates, which in turn, will have an effect on the credit quality in this segment. Management monitors the cash flows of these loans.

Construction loans — Loans in this segment primarily include real estate development loans for which payment is derived from sale of the property as well as construction projects in which the property will ultimately be used by the borrower. Credit risk is affected by cost overruns, time to sell at an adequate price and market conditions.

Commercial and industrial loans — Loans in this segment are made to businesses and are generally secured by assets of the business. Repayment is expected from the cash flows of the business. A weakened economy, and resultant decreased consumer spending, will have an effect on the credit quality in this segment.

BANK PREMISES AND EQUIPMENT

Bank premises and equipment are stated at cost less accumulated depreciation and amortization. Land is stated at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the assets or the terms of leases, if shorter. It is general practice to charge the cost of maintenance and repairs to operations when incurred; major expenditures for improvements are capitalized and depreciated.

GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS

Goodwill represents the excess of the cost of an acquisition over the fair value of the net assets acquired. Goodwill is not subject to amortization. Identifiable intangible assets consist of core deposit intangibles and are assets resulting from acquisitions that are being amortized over their estimated useful lives. Goodwill and identifiable intangible assets are included in other assets on the consolidated balance sheets. The Company tests goodwill for impairment on an annual basis, or more often if events or circumstances indicate there may be impairment. Goodwill impairment testing is performed at the segment (or “reporting unit”) level. Currently, the Company’s goodwill is evaluated at the entity level as there is only one reporting unit. Goodwill is assigned to reporting units at the date the goodwill is initially recorded. Once goodwill has been assigned to reporting units, it no longer retains its association with a particular acquisition, and all of the activities within a reporting unit, whether acquired or organically grown, are available to support the value of the goodwill.

Goodwill impairment is evaluated by first assessing qualitative factors (events and circumstances) to determine whether it is more likely than not (meaning a likelihood of more than 50 percent) that the fair value of a reporting unit is less than its carrying amount. If, after considering all relevant events and circumstances, an entity determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the two-step impairment test will be unnecessary.

The first step, in the two-step impairment test, used to identify potential impairment, involves comparing each reporting unit’s fair value to its carrying value including goodwill. If the fair value of a reporting unit exceeds its carrying value, applicable goodwill is considered not to be impaired. If the carrying value exceeds fair value, there is an indication of impairment and the second step is performed to measure the amount of impairment.

SERVICING

The Company services mortgage loans for others. Mortgage servicing assets are recognized as separate assets when rights are acquired through purchase or through sale of financial assets. Fair value is determined using prices for similar assets with similar characteristics, when available, or based upon discounted cash flows using market-based assumptions. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, an inflation rate, ancillary income, prepayment speeds and default rates and losses. Capitalized servicing rights are reported in other assets and are amortized into loan servicing fee income in proportion to, and over the period of, the estimated future net servicing income of the underlying financial assets. Servicing assets are evaluated for impairment based upon the fair value of the rights as compared to amortized cost. Impairment is determined by stratifying rights by predominant risk characteristics, such as interest rates and terms. Impairment is recognized through a valuation allowance for an individual stratum, to the extent that fair value is less than the capitalized amount for the stratum. Changes in the valuation allowance are reported in loan servicing fee income.

STOCK OPTION ACCOUNTING

The Company follows the fair value recognition provisions of FASB ASC 718, Compensation – Stock Compensation (formerly SFAS 123R) for all share-based payments, using the modified-prospective transition method. The Company’s method of valuation for share-based awards granted utilizes the Black-Scholes option-pricing model, which was also previously used for the Company’s pro forma information required under FASB ASC 718. The Company will recognize compensation expense for its awards on a straight-line basis over the requisite service period for the entire award (straight-line attribution method), ensuring that the amount of compensation cost recognized at any date at least equals the portion of the grant-date fair value of the award that is vested at that time.

During 2000 and 2004, common stockholders of the Company approved stock option plans (the “Option Plans”) that provide for granting of options to purchase up to 150,000 shares of Class A common stock per plan. Under the Option Plans, all officers and key employees of the Company are eligible to receive nonqualified or incentive stock options to purchase shares of Class A common stock. The Option Plans are administered by the Compensation Committee of the Board of Directors, whose members are ineligible to participate in the Option Plans. Based on management’s recommendations, the Committee submits its recommendations to the Board of Directors as to persons to whom options are to be granted, the number of shares granted to each, the option price (which may not be less than 85% of the fair market value for nonqualified stock options, or the fair market value for incentive stock options, of the shares on the date of grant) and the time period over which the options are exercisable (not more than ten years from the date of grant). There were options to purchase an aggregate of 20,375 shares of Class A common stock exercisable at December 31, 2013.

On December 30, 2005, the Board of Directors approved the acceleration and immediate vesting of all unvested options with an exercise price of $31.60 or greater per share. As a consequence, options to purchase 23,950 shares of Class A common stock became exercisable immediately. The average of the high and low price at which the Class A common stock traded on December 30, 2005, the date of the acceleration and vesting, was $29.28 per share. In connection with this acceleration, the Board of Directors approved a technical amendment to each of the Option Plans to eliminate the possibility that the terms of any outstanding or future stock option would require a cash settlement on the occurrence of any circumstance outside the control of the Company.

The Company uses the fair value method to account for stock options. All of the Company’s stock options are vested, and there were no options granted during 2013 and 2012.

INCOME TAXES

The Company uses the asset and liability method in accounting for income taxes. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which temporary differences are expected to be recovered or settled. Under this method, the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

The Company accounts for uncertain tax positions in accordance with FASB ASC 740.

The Company classifies interest resulting from underpayment of income taxes as income tax expense in the first period the interest would begin accruing according to the provisions of the relevant tax law.

The Company classifies penalties resulting from underpayment of income taxes as income tax expense in the period for which the Company claims or expects to claim an uncertain tax position or in the period in which the Company’s judgment changes regarding an uncertain tax position.

TREASURY STOCK

Effective July 1, 2004, companies incorporated in Massachusetts became subject to Chapter 156D of the Massachusetts Business Corporation Act, provisions of which eliminate the concept of treasury stock and provide that shares reacquired by a company are to be treated as authorized but unissued shares.

PENSION

The Company provides pension benefits to its employees under a noncontributory, defined benefit plan, which is funded on a current basis in compliance with the requirements of the Employee Retirement Income Security Act of 1974 (“ERISA”) and recognizes costs over the estimated employee service period.

The Company also has a Supplemental Executive Insurance/Retirement Plan (“the Supplemental Plan”), which is limited to certain officers and employees of the Company. The Supplemental Plan is accrued on a current basis and recognizes costs over the estimated employee service period.

Executive officers of the Company or its subsidiaries who have at least one year of service may participate in the Supplemental Plan. The Supplemental Plan is voluntary. Individual life insurance policies, which are owned by the Company, are purchased covering the life of each participant.

REVISION OF EPS PRESENTATION

The Company has determined that although the Class A and Class B common stock have different dividend rates, the Company had not applied the two-class method when calculating earnings per share (“EPS”) separately for the Class A and Class B common stock. This resulted in immaterial revisions to previously reported basic EPS for Class A and Class B common stock and diluted EPS for the Class B common stock as summarized below:

For the year ended December 31, 2011:	As previously reported		As revised
Basic EPS – Class A common	$	3.01	$	3.68
Basic EPS – Class B common	$	3.01	$	1.84
Diluted EPS – Class A common	$	3.01	$	3.01
Diluted EPS – Class B common	$	3.01	$	1.84

RECENT ACCOUNTING DEVELOPMENTS

In February 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2013-01, Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities. This ASU clarifies the scope of offsetting disclosure requirements in ASU 2011-11, Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities. Under ASU 2013-01, the disclosure requirements would apply to derivative instruments accounted for in accordance with ASC 815, including bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending arrangements that are either offset on the balance sheet or subject to an enforceable master netting arrangement or similar agreement. Entities with other types of financial assets and financial liabilities subject to a master netting arrangement or similar agreement also are affected because these amendments make them no longer subject to the disclosure requirements in ASU No. 2011-11. Effective January 1, 2013, companies are required to disclose (a) gross amounts of recognized assets and liabilities; (b) gross amounts offset in the statement of financial position; (c) net amounts of assets and liabilities presented in the statement of financial position; (d) gross amount subject to enforceable master netting agreement not offset in the statements of financial position; and (e) net amounts after deducting (d) from (c). The disclosure should be presented in tabular format (unless another format is more appropriate) separately for assets and liabilities. The intent of the new disclosure is to enable users of financial statements to understand the effect of those arrangements on its financial position and to allow investors to better compare financial statements prepared under GAAP with financial statements prepared under International Financial Reporting Standards. The Company implemented the provisions of ASU 2011-11 as of January 1, 2013. The adoption of this pronouncement did not have a material effect on the consolidated financial statements.

In February 2013, the FASB issued ASU 2013-02, Comprehensive Income (Topic 220) Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. ASU 2013-02 requires an entity to report the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net income or as a separate disclosure in the notes to the financial statements. The new standard is effective for annual periods beginning January 1, 2013, and interim periods within those annual periods. The Company has presented a separate footnote (Note 13) as a result of this pronouncement.

In July 2013, the FASB issued ASU 2013-10, Inclusion of the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) as a Benchmark Interest Rate for Hedge Accounting Purposes. This ASU amends ASC 815 to allow entities to use the Fed Funds Effective Swap Rate, in addition to U.S. Treasury rates and LIBOR, as a benchmark interest rate in accounting for fair value and cash flow hedges in the United States. This ASU also eliminates the provision from ASC 815-20-25-6 that prohibits the use of different benchmark rates for similar hedges except in rate and justifiable circumstances. This ASU is effective prospectively for qualifying new hedging relationship entered into on or after July 17, 2013, and for hedging relationship redesignated on or after that day. As of December 31, 2013, the Company did not have any fair value and cash flow hedges. The adoption of ASU No. 2013-10 did not have a material impact on the Company’s financial statements.

In July 2013, the FASB issued ASU No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. This ASU provides guidance on financial statement presentation of unrecognized tax benefits (“UTBs”) when a net operating loss (“NOL”) carryforward, a similar tax loss, or a tax credit carryforward exists. The FASB’s objective in issuing this ASU is to eliminate diversity in practice resulting from a lack of guidance on this topic in current U.S. GAAP. Under this ASU, an entity must present a UTB, or a portion of a UTB, in the financial statements as a reduction to a deferred tax asset (“DTA”) for an NOL carryforward, a similar tax loss, or a tax credit carryforward except when: (a) an NOL carryforward, a similar tax loss, or a tax credit carryforward is not available as of the reporting date under the governing tax law to settle taxes that would result from the disallowance of the tax position; (b) the entity does not intend to use the DTA for this purpose (provided that the tax law permits a choice). If either of these conditions exists, an entity should present a UTB in the financial statements as a liability and should not net the UTB with a DTA. New recurring disclosures are not required because the ASU does not affect the recognition or measurement of uncertain tax positions under ASC 740. This amendment does not affect the amounts public entities disclose in the tabular reconciliation of the total amounts of UTBs because the tabular reconciliation presents the gross amount of UTBs. This ASU is effective for fiscal years beginning after December 15, 2013, and interim periods within those years. The amendments should be applied to all UTBs that exist as of the effective date. Entities may choose to apply the amendments retrospectively to each prior reporting period presented. As of December 31, 2013, the Company did not have a UTB. Management will assess the applicability of this ASU after it becomes effective in the first quarter of 2014.

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Investment Securities Held-to-Maturity - Additional Information (Detail) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Schedule of Held-to-maturity Securities [Line Items]
Securities pledged for borrowing at the Federal Home Loan Bank of Boston	$ 1,464,449,000	$ 281,924,000
Weighted average remaining life of investment securities held-to-maturity	5 years 2 months 12 days
Securities held-to-maturity at their fair value	987,037,000
Available-for-sale securities transferred to held-to-maturity securities unrealized loss	25,333,000
U.S. Government Sponsored Enterprises [Member]
Schedule of Held-to-maturity Securities [Line Items]
Securities at fair value pledged to secure public deposits and repurchase agreements	732,144,000	149,366,000
Securities pledged for borrowing at the Federal Home Loan Bank of Boston	286,921,000	17,758,000
Weighted average remaining life	224,663,000
Federal Home Loan Bank of Boston [Member]
Schedule of Held-to-maturity Securities [Line Items]
Securities pledged for borrowing at the Federal Home Loan Bank of Boston	$ 510,060,000	$ 103,617,000
Held-to-Maturity Securities [Member]
Schedule of Held-to-maturity Securities [Line Items]
Number of securities, temporarily impaired for less than 12 months	191	3
Number of securities, temporarily impaired for 12 months or longer	13	1
Number of securities, temporarily impaired, total	300	96

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Other Borrowed Funds and Subordinated Debentures (Tables)

12 Months Ended

Dec. 31, 2013

Banking And Thrift [Abstract]

Summary of Other Borrowed Funds and Subordinated Debentures

The following is a summary of other borrowed funds and subordinated debentures as of December 31,

	2013			2012			2011
(dollars in thousands)
Amount outstanding at December 31	$	291,227		$	231,227		$	280,226
Weighted average rate at December 31		3.04	%		3.54	%		2.85	%
Maximum amount outstanding at any month end	$	291,227		$	277,226		$	280,226
Daily average balance outstanding during the year	$	231,032		$	217,542		$	202,209
Weighted average rate during the year		3.73	%		3.82	%		3.85	%

Schedule of the Maturity Distribution of FHLBB Advances with the Weighted Average Interest Rates

A schedule of the maturity distribution of FHLBB advances with the weighted average interest rates is as follows:

	2013					2012					2011
December 31,	Amount		Weighted Average Rate			Amount		Weighted Average Rate			Amount		Weighted Average Rate
(dollars in thousands)
Within one year	$	53,000		0.40	%	$	46,000		1.86	%	$	81,500		0.42	%
Over one year to two years		19,500		2.42	%		17,500		3.01	%		23,500		3.34	%
Over two years to three years		55,000		3.07	%		19,500		2.42	%		17,500		3.01	%
Over three years to five years		77,000		3.05	%		90,000		3.33	%		74,500		2.90	%
Over five years		50,500		3.39	%		22,000		4.19	%		47,000		4.38	%
Total	$	255,000		2.52	%	$	195,000		2.96	%	$	244,000		2.41	%

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Fair Values of Financial Instruments

12 Months Ended

Dec. 31, 2013

Text Block [Abstract]

Fair Values of Financial Instruments

21.     Fair Values of Financial Instruments

The following methods and assumptions were used by the Company in estimating fair values of its financial instruments. Excluded from this disclosure are all non financial instruments. Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the Company.

The assumptions used below are expected to approximate those that market participants would use in valuing these financial instruments.

Fair value estimates are made at a specific point in time, based on available market information and judgments about the financial instrument, including estimates of timing, amount of expected future cash flows and the credit standing of the issuer. Such estimates do not consider the tax impact of the realization of unrealized gains or losses. In some cases, the fair value estimates cannot be substantiated by comparison to independent markets. In addition, the disclosed fair value may not be realized in the immediate settlement of the financial instrument. Care should be exercised in deriving conclusions about our business, its value or financial position based on the fair value information of financial instruments presented below.

SECURITIES HELD-TO-MATURITY

The fair values of these securities were based on quoted market prices, where available, as provided by third-party investment portfolio pricing vendors. If quoted market prices were not available, fair values provided by the vendors were based on quoted market prices of comparable instruments in active markets and/or based on a matrix pricing methodology which employs The Bond Market Association’s standard calculations for cash flow and price/yield analysis, live benchmark bond pricing and terms/condition data available from major pricing sources. Management regards the inputs and methods used by third party pricing vendors to be “Level 2 inputs and methods” as defined in the “fair value hierarchy” provided by FASB.

LOANS

For variable-rate loans, that reprice frequently and with no significant change in credit risk, fair values are based on carrying amounts. The fair value of other loans is estimated using discounted cash flow analysis, based on interest rates currently being offered for loans with similar terms to borrowers of similar credit quality. Incremental credit risk for nonperforming loans has been considered.

TIME DEPOSITS

The fair value of time deposits was estimated using a discounted cash flow approach that applies prevailing market interest rates for similar maturity instruments. The fair values of the Company’s time deposit liabilities do not take into consideration the value of the Company’s long-term relationships with depositors, which may have significant value.

OTHER BORROWED FUNDS

The fair value of other borrowed funds is based on the discounted value of contractual cash flows. The discount rate used is estimated based on the rates currently offered for other borrowed funds of similar remaining maturities.

SUBORDINATED DEBENTURES

The fair value of subordinated debentures is based on the discounted value of contractual cash flows. The discount rate used is estimated based on the rates currently offered for other subordinated debentures of similar remaining maturities.

The following presents (in thousands) the carrying amount, estimated fair value, and placement in the fair value hierarchy of the Company’s financial instruments as of December 31, 2013 and December 31, 2012. This table excludes financial instruments for which the carrying amount approximates fair value. Financial assets for which the fair value approximates carrying value include cash and cash equivalents, short-term investments, FHLBB stock and accrued interest receivable. Financial liabilities for which the fair value approximates carrying value include non-maturity deposits, short-term borrowings and accrued interest payable.

	Carrying Amount		Estimated Fair Value		Level 1 Inputs		Fair Value Measurements Level 2 Inputs		Level 3 Inputs
(dollars in thousands)
December 31, 2013
Financial assets:
Securities held-to-maturity	$	1,487,884	$	1,464,449	$	—	$	1,464,449	$	—
Loans(1)		1,243,822		1,214,192		—		—		1,214,192
Financial liabilities:
Time deposits		382,224		386,742		—		386,742		—
Other borrowed funds		255,144		254,736		—		254,736		—
Subordinated debentures		36,083		39,503		—		—		39,503
December 31, 2012
Financial assets:
Securities held-to-maturity	$	275,507	$	281,924	$	—	$	281,924	$	—
Loans(1)		1,092,591		1,124,716		—		—		1,124,716
Financial liabilities:
Time deposits		419,983		424,253		—		424,253		—
Other borrowed funds		195,144		205,481		—		205,481		—
Subordinated debentures		36,083		43,423		—		—		43,423

(1) Comprised of loans (including collateral dependent impaired loans), net of deferred loan costs and the allowance for loan losses.

LIMITATIONS

Fair value estimates are made at a specific point in time, based on relevant market information and information about the type of financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Bank’s entire holdings of a particular financial instrument. Because no active market exists for some of the Bank’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, cash flows, current economic conditions, risk characteristics and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions and changes in the loan, debt and interest rate markets could significantly affect the estimates. Further, the income tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on the fair value estimates and have not been considered.

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Other Operating Expenses

12 Months Ended

Dec. 31, 2013

Other Income And Expenses [Abstract]

Other Operating Expenses

20.     Other Operating Expenses

Year ended December 31,	2013		2012		2011
(dollars in thousands)
Marketing	$	1,749	$	1,853	$	1,575
Software maintenance/amortization		1,417		1,256		951
Legal and audit		1,281		1,179		1,140
Contributions		673		1,074		479
Processing services		812		921		865
Consulting		874		890		796
Postage and delivery		939		877		773
Supplies		848		849		868
Telephone		719		750		742
Directors’ fees		373		330		309
Insurance		295		279		275
Core deposit intangible amortization		—		120		388
Other		1,500		1,230		1,280
Total	$	11,480	$	11,608	$	10,441

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Income Taxes - Income Tax Accounts Included in Other Assets/Liabilities (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Income Tax Disclosure [Abstract]
Currently receivable	$ 702	$ 630
Deferred income tax asset, net	30,857	14,551
Total	$ 31,559	$ 15,181

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Cash and Due from Banks - Additional Information (Detail) (USD $)	Dec. 31, 2013	Dec. 31, 2012
Cash And Due From Banks [Abstract]
Reserve balance of cash and due from banks	$ 0	$ 9,608,000

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Reclassifications Out of Accumulated Other Comprehensive Income (Tables)

12 Months Ended

Dec. 31, 2013

Text Block [Abstract]

Reclassifications Out of Accumulated Other Comprehensive Income

	Amount Reclassified from Accumulated Other Comprehensive Income
Details about Accumulated Other Comprehensive Income Components	Year ended December 31, 2013(a)			Year ended December 31, 2012(a)			Affected line item in the Statement Where Net Income is Presented
Unrealized gains and losses on available-for-sale securities	$	3,019		$	1,843		Net gains on sales of investments
		(1,179	)		(728	)	Provision for income taxes
	$	1,840		$	1,115		Net income
Accretion of unrealized losses transferred	$	3,077		$	—		Securities held-to-maturity
		(1,191	)		—		Provision for income taxes
	$	1,886		$	—		Net Income
Amortization of defined benefit pension items
Prior-service costs	$	(10	)	$	(10	)	Salaries and employee benefits(b)
Actuarial gains (losses)		(1,144	)		(1,071	)	Salaries and employee benefits(b)
Total before tax		(1,154	)		(1,081	)	Income before taxes
Tax (expense) or benefit		460			432		Provision for income taxes
Net of tax	$	(694	)	$	(649	)	Net income
Total reclassifications for the period	$	3,032		$	466		Net income

^(a)  Amounts in parentheses indicate debits to profit/loss.

^(b)  These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see employee benefits footnote (Note 17) for additional details).

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Quarterly Results of Operations (Unaudited)

12 Months Ended

Dec. 31, 2013

Quarterly Financial Information Disclosure [Abstract]

Quarterly Results of Operations (Unaudited)

22.     Quarterly Results of Operations (unaudited)

2013 Quarters	Fourth		Third		Second		First
(in thousands, except share data)
Interest income	$	20,947	$	20,549	$	19,132	$	19,137
Interest expense		4,842		4,751		4,620		4,592
Net interest income		16,105		15,798		14,512		14,545
Provision for loan losses		460		750		750		750
Net interest income after provision for loan losses		15,645		15,048		13,762		13,795
Other operating income		4,186		4,774		5,221		4,434
Operating expenses		14,690		13,995		13,662		13,465
Income before income taxes		5,141		5,827		5,321		4,764
Provision for income taxes		116		308		295		288
Net income	$	5,025	$	5,519	$	5,026	$	4,476
Share data:
Average shares outstanding, basic
Class A		3,580,404		3,578,400		3,574,379		3,569,546
Class B		1,976,180		1,978,180		1,982,180		1,986,880
Average shares outstanding, diluted
Class A		5,557,419		5,558,031		5,557,354		5,557,365
Class B		1,976,180		1,978,180		1,982,180		1,986,880
Earnings per share, basic
Class A	$	1.10	$	1.21	$	1.10	$	0.98
Class B	$	0.55	$	0.60	$	0.55	$	0.49
Earnings per share, diluted
Class A	$	0.90	$	0.99	$	0.90	$	0.81
Class B	$	0.55	$	0.60	$	0.55	$	0.49

2012 Quarters	Fourth		Third		Second		First
(in thousands, except share data)
Interest income	$	19,738	$	22,079	$	20,312	$	19,365
Interest expense		4,795		4,859		4,923		4,963
Net interest income		14,943		17,220		15,389		14,402
Provision for loan losses		900		1,250		900		1,100
Net interest income after provision for loan losses		14,043		15,970		14,489		13,302
Other operating income		4,153		4,105		3,988		3,619
Operating expenses		13,279		13,708		13,451		12,800
Income before income taxes		4,917		6,367		5,026		4,121
Provision for income taxes		139		685		255		313
Net income	$	4,778	$	5,682	$	4,771	$	3,808
Share data:
Average shares outstanding, basic
Class A		3,564,145		3,559,125		3,556,474		3,550,993
Class B		1,986,880		1,989,380		1,991,880		1,993,755
Average shares outstanding, diluted
Class A		5,552,121		5,549,810		5,548,830		5,545,711
Class B		1,986,880		1,989,380		1,991,880		1,993,755
Earnings per share, basic
Class A	$	1.05	$	1.25	$	1.05	$	0.84
Class B	$	0.52	$	0.62	$	0.52	$	0.42
Earnings per share, diluted
Class A	$	0.86	$	1.02	$	0.86	$	0.69
Class B	$	0.52	$	0.62	$	0.52	$	0.42

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Parent Company Financial Statements

12 Months Ended

Dec. 31, 2013

Condensed Financial Information Of Parent Company Only Disclosure [Abstract]

Parent Company Financial Statements

23.     Parent Company Financial Statements

The balance sheets of Century Bancorp, Inc. (“Parent Company”) as of December 31, 2013 and 2012 and the statements of income and cash flows for each of the years in the three-year period ended December 31, 2013, are presented below. The statements of changes in stockholders’ equity are identical to the consolidated statements of changes in stockholders’ equity and are therefore not presented here.

BALANCE SHEETS

December 31,	2013		2012
(dollars in thousands)
ASSETS:
Cash	$	12,245	$	19,536
Investment in subsidiary, at equity		193,783		193,499
Other assets		6,634		3,145
Total assets	$	212,662	$	216,180
LIABILITIES AND STOCKHOLDERS’ EQUITY:
Liabilities	$	107	$	107
Subordinated debentures		36,083		36,083
Stockholders’ equity		176,472		179,990
Total liabilities and stockholders’ equity	$	212,662	$	216,180

STATEMENTS OF INCOME

Year Ended December 31,	2013			2012			2011
(dollars in thousands)
Income:
Interest income from deposits in bank	$	28		$	33		$	100
Other income		72			72			72
Total income		100			105			172
Interest expense		2,400			2,400			2,400
Operating expenses		208			198			178
Income before income taxes and equity in undistributed income of subsidiary		(2,508	)		(2,493	)		(2,406	)
Benefit from income taxes		(853	)		(848	)		(818	)
Income before equity in undistributed income of subsidiary		(1,655	)		(1,645	)		(1,588	)
Equity in undistributed income of subsidiary		21,701			20,684			18,281
Net income	$	20,046		$	19,039		$	16,693

STATEMENTS OF CASH FLOWS

December 31,	2013			2012			2011
(dollars in thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	20,046		$	19,039		$	16,693
Adjustments to reconcile net income to net cash provided by operating activities
Undistributed income of subsidiary		(21,701	)		(20,684	)		(18,281	)
Depreciation and amortization		12			12			12
Increase in other assets		(3,500	)		(416	)		(182	)
Net cash (used in) operating activities		(5,143	)		(2,049	)		(1,758	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from the exercise of stock options		43			304			53
Cash dividends paid		(2,191	)		(2,186	)		(2,180	)
Net cash used in financing activities		(2,148	)		(1,882	)		(2,127	)
Net (decrease) in cash		(7,291	)		(3,931	)		(3,885	)
Cash at beginning of year		19,536			23,467			27,352
Cash at end of year	$	12,245		$	19,536		$	23,467

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Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 20,046	$ 19,039	$ 16,693
Adjustments to reconcile net income to net cash provided by operating activities:
Mortgage loans originated for sale	(82,395)	(20,149)	(22,664)
Proceeds from mortgage loans sold	93,337	14,457	19,697
Gain on sales of mortgage loans held for sale	(1,564)	(297)	(422)
Gain on sale of loans			(238)
Gain on sale of fixed assets	(1)	(1)
Net gains on sales of securities	(3,019)	(1,843)	(1,940)
Provision for loan losses	2,710	4,150	4,550
Deferred tax benefit	(2,929)	(2,104)	(953)
Net depreciation and amortization	5,358	6,445	5,558
(Increase) decrease in accrued interest receivable	(728)	211	579
Decrease in prepaid FDIC assessments	2,773	1,562	1,794
(Gain) loss on sales of other real estate owned		(1)	8
Write down of other real estate owned			117
Increase in other assets	(5,693)	(3,113)	(4,456)
Increase in other liabilities	4,043	1,070	503
Net cash provided by operating activities	31,938	19,426	18,826
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from maturities of short-term investments	22,367	38,397	121,106
Purchase of short-term investments	(9,617)	(37,413)	(25,539)
Proceeds from call of Federal Home Loan Bank of Boston stock	284	385
Purchase of Federal Home Loan Bank of Boston stock	(3,210)
Proceeds from calls/maturities of securities available-for-sale	256,420	532,734	722,403
Proceeds from sales of securities available-for-sale	224,045	294,881	75,615
Purchase of securities available-for-sale	(543,072)	(998,955)	(1,140,194)
Proceeds from calls/maturities of securities held-to-maturity	121,121	88,628	119,315
Purchase of securities held-to-maturity	(344,455)	(185,346)	(68,863)
Proceeds from sales of loans			4,000
Net increase in loans	(163,275)	(123,183)	(82,793)
Proceeds from sales of other real estate owned		1,584	802
Proceeds from sales of fixed assets		1
Capital expenditures	(1,819)	(4,300)	(2,692)
Net cash used in investing activities	(441,211)	(392,587)	(276,840)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net (decrease) increase in time deposit accounts	(37,759)	(13,518)	16,241
Net increase in demand, savings, money market and NOW deposits	308,525	334,007	206,320
Net proceeds from the exercise of stock options	43	304	52
Cash dividends	(2,191)	(2,186)	(2,180)
Net increase in securities sold under agreements to repurchase	23,050	48,070	34,770
Net increase (decrease) in other borrowed funds	60,000	(48,999)	22,025
Net cash provided by financing activities	351,668	317,678	277,228
Net (decrease) increase in cash and cash equivalents	(57,605)	(55,483)	19,214
Cash and cash equivalents at beginning of year	152,283	207,766	188,552
Cash and cash equivalents at end of year	94,678	152,283	207,766
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the period for interest	18,812	19,597	22,799
Cash paid during the period for income taxes	4,008	3,348	3,109
Change in unrealized gains on securities available-for-sale, net of taxes	(13,375)	4,011	4,726
Change in unrealized losses on securities transferred to held-to-maturity, net of taxes	(15,553)
Pension liability adjustment, net of taxes	5,626	(1,839)	(3,667)
Transfer of loans to other real estate owned		400	2,110
Transfer of securities available-for-sale to held-to-maturity	$ 987,037

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Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2013

Accounting Policies [Abstract]

Basis of Financial Statement Presentation

BASIS OF FINANCIAL STATEMENT PRESENTATION

The consolidated financial statements include the accounts of Century Bancorp, Inc. (the “Company”) and its wholly owned subsidiary, Century Bank and Trust Company (the “Bank”). The consolidated financial statements also include the accounts of the Bank’s wholly owned subsidiaries, Century Subsidiary Investments, Inc. (“CSII”), Century Subsidiary Investments, Inc. II (“CSII II”), Century Subsidiary Investments, Inc. III (“CSII III”) and Century Financial Services Inc. (“CFSI”). CSII, CSII II, and CSII III are engaged in buying, selling and holding investment securities. CFSI has the power to engage in financial agency, securities brokerage, and investment and financial advisory services and related securities credit. The Company also owns 100% of Century Bancorp Capital Trust II (“CBCT II”). The entity is an unconsolidated subsidiary of the Company.

All significant intercompany accounts and transactions have been eliminated in consolidation. The Company provides a full range of banking services to individual, business and municipal customers in Massachusetts. As a bank holding company, the Company is subject to the regulation and supervision of the Federal Reserve Board. The Bank, a state chartered financial institution, is subject to supervision and regulation by applicable state and federal banking agencies, including the Federal Reserve Board, the Federal Deposit Insurance Corporation (the “FDIC”) and the Commonwealth of Massachusetts Commissioner of Banks. The Bank is also subject to various requirements and restrictions under federal and state law, including requirements to maintain reserves against deposits, restrictions on the types and amounts of loans that may be granted and the interest that may be charged thereon, and limitations on the types of investments that may be made and the types of services that may be offered. Various consumer laws and regulations also affect the operations of the Bank. In addition to the impact of regulation, commercial banks are affected significantly by the actions of the Federal Reserve Board as it attempts to control the money supply and credit availability in order to influence the economy. All aspects of the Company’s business are highly competitive. The Company faces aggressive competition from other lending institutions and from numerous other providers of financial services. The Company has one reportable operating segment.

The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America and general practices within the banking industry. In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and revenues and expenses for the period. Actual results could differ from those estimates.

Material estimates that are susceptible to change in the near term relate to the allowance for loan losses. Management believes that the allowance for loan losses is adequate based on independent appraisals and review of other factors, including historical charge-off rates with additional allocations based on risk factors for each category and general economic factors. While management uses available information to recognize loan losses, future additions to the allowance for loan losses may be necessary based on changes in economic conditions. In addition, regulatory agencies periodically review the Company’s allowance for loan losses. Such agencies may require the Company to recognize additions to the allowance for loan losses based on their judgments about information available to them at the time of their examination. Certain reclassifications are made to prior-year amounts whenever necessary to conform with the current-year presentation.

Fair Value Measurements

FAIR VALUE MEASUREMENTS

The Company follows FASB ASC 820-10, Fair Value Measurements and Disclosures, (formerly SFAS 157, “Fair Value Measurements,”) which among other things, requires enhanced disclosures about assets and liabilities carried at fair value. ASC 820-10 establishes a hierarchal disclosure framework associated with the level of pricing observability utilized in measuring financial instruments at fair value. The three broad levels of the hierarchy are as follows:

Level I — Quoted prices are available in active markets for identical assets or liabilities as of the reported date. The type of financial instruments included in Level I are highly liquid cash instruments with quoted prices, such as G-7 government, agency securities, listed equities and money market securities, as well as listed derivative instruments.

Level II — Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reported date. The nature of these financial instruments includes cash instruments for which quoted prices are available but traded less frequently, derivative instruments whose fair value has been derived using a model where inputs to the model are directly observable in the market or can be derived principally from or corroborated by observable market data, and instruments that are fair valued using other financial instruments, the parameters of which can be directly observed. Instruments that are generally included in this category are corporate bonds and loans, mortgage whole loans, municipal bonds and over the counter (“OTC”) derivatives.

Level III — These instruments have little to no pricing observability as of the reported date. These financial instruments do not have two-way markets and are measured using management’s best estimate of fair value, where the inputs into the determination of fair value require significant management judgment or estimation. Instruments that are included in this category generally include certain commercial mortgage loans, certain private equity investments, distressed debt, and noninvestment grade residual interests in securitizations as well as certain highly structured OTC derivative contracts.

Cash and Cash Equivalents

CASH AND CASH EQUIVALENTS

For purposes of reporting cash flows, cash equivalents include highly liquid assets with an original maturity of three months or less. Highly liquid assets include cash and due from banks, federal funds sold and certificates of deposit.

Short-Term Investments

SHORT-TERM INVESTMENTS

As of December 31, 2013 and 2012, short-term investments include highly liquid certificates of deposit with original maturities of more than 90 days but less than one year.

Investment Securities

INVESTMENT SECURITIES

Debt securities that the Company has the positive intent and ability to hold to maturity are classified as held-to-maturity and reported at amortized cost; debt and equity securities that are bought and held principally for the purpose of selling are classified as trading and reported at fair value, with unrealized gains and losses included in earnings; and debt and equity securities not classified as either held-to-maturity or trading are classified as available-for-sale and reported at fair value, with unrealized gains and losses excluded from earnings and reported as a separate component of stockholders’ equity, net of estimated related income taxes. The Company has no securities held for trading.

Premiums and discounts on investment securities are amortized or accreted into income by use of the level-yield method. If a decline in fair value below the amortized cost basis of an investment is judged to be other-than-temporary, the cost basis of the investment is written down to fair value. The total amount of the impairment charge is recognized in earnings, with an offset for the noncredit component, which is recognized as other comprehensive income. Gains and losses on the sale of investment securities are recognized on the trade date on a specific identification basis.

The transfer of a security between categories of investments shall be accounted for at fair value. For a debt security transferred into the held-to-maturity category from the available-for-sale category, the unrealized holding gain or loss at the date of the transfer shall continue to be reported in a separate component of shareholders’ equity but shall be amortized over the remaining life of the security as an adjustment of yield in a manner consistent with the amortization of any premium or discount. The amortization of an unrealized holding gain or loss reported in equity will offset or mitigate the effect on interest income of the amortization of the premium or discount for that held-to-maturity security.

Federal Home Loan Bank Stock

FEDERAL HOME LOAN BANK STOCK

The Bank, as a member of the Federal Home Loan Bank of Boston (“FHLBB”) system, is required to maintain an investment in capital stock of the FHLBB. Based on redemption provisions, the stock has no quoted market value and is carried at cost. At its discretion, the FHLBB may declare dividends on the stock. The Company reviews for impairment based on the ultimate recoverability of the cost basis of the stock. For the year ended December 31, 2013, the FHLBB reported preliminary net income of $212.3 million. The FHLBB also declared a dividend equal to an annual yield of 1.49%. As of December 31, 2013, no impairment has been recognized.

Loans Held for Sale

LOANS HELD FOR SALE

Loans originated and intended for sale in the secondary market are carried at the lower of cost or estimated fair value in the aggregate. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income.

Loans

LOANS

Interest on loans is recognized based on the daily principal amount outstanding. Accrual of interest is discontinued when loans become ninety days delinquent unless the collateral is sufficient to cover both principal and interest and the loan is in the process of collection. Past-due status is based on contractual terms of the loan. Loans, including impaired loans, on which the accrual of interest has been discontinued, are designated nonaccrual loans. When a loan is placed on nonaccrual, all income that has been accrued but remains unpaid is reversed against current period income, and all amortization of deferred loan costs and fees is discontinued. Nonaccrual loans may be returned to an accrual status when principal and interest payments are not delinquent or the risk characteristics of the loan have improved to the extent that there no longer exists a concern as to the collectibility of principal and interest. Income received on nonaccrual loans is either recorded in income or applied to the principal balance of the loan, depending on management’s evaluation as to the collectibility of principal.

Loan origination fees and related direct loan origination costs are offset, and the resulting net amount is deferred and amortized over the life of the related loans using the level-yield method. Prepayments are not initially considered when amortizing premiums and discounts.

The Bank measures impairment for impaired loans at either the fair value of the loan, the present value of the expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral if the loan is collateral dependent. This method applies to all loans, uncollateralized as well as collateralized, except large groups of smaller-balance homogeneous loans such as residential real estate and consumer loans that are collectively evaluated for impairment and loans that are measured at fair value. For collateral dependent loans, the amount of the recorded investment in a loan that exceeds the fair value of the collateral is charged-off against the allowance for loan losses in lieu of an allocation of a specific allowance when such an amount has been identified definitively as uncollectible. Management considers the payment status, net worth and earnings potential of the borrower, and the value and cash flow of the collateral as factors to determine if a loan will be paid in accordance with its contractual terms. Management does not set any minimum delay of payments as a factor in reviewing for impaired classification. Loans are charged-off when management believes that the collectibility of the loan’s principal is not probable. The specific factors that management considers in making the determination that the collectibility of the loan’s principal is not probable include the delinquency status of the loan, the fair value of the collateral, if secured, and, the financial strength of the borrower and/or guarantors. In addition, criteria for classification of a loan as in-substance foreclosure has been modified so that such classification need be made only when a lender is in possession of the collateral. The Bank measures the impairment of troubled debt restructurings using the pre-modification rate of interest.

Transfers of Financial Assets

TRANSFERS OF FINANCIAL ASSETS

Transfers of financial assets, typically residential mortgages and loan participations for the Company, are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets.

Acquired Loans

ACQUIRED LOANS

In accordance with FASB ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality (formerly Statement of Position (“SOP”) No. 03-3, “Accounting for Certain Loans or Debt Securities Acquired in a Transfer”) the Company reviews acquired loans for differences between contractual cash flows and cash flows expected to be collected from the Company’s initial investment in the acquired loans to determine if those differences are attributable, at least in part, to credit quality. If those differences are attributable to credit quality, the loan’s contractually required payments received in excess of the amount of its cash flows expected at acquisition, or nonaccretable discount, is not accreted into income. FASB ASC 310-30 requires that the Company recognize the excess of all cash flows expected at acquisition over the Company’s initial investment in the loan as interest income using the interest method over the term of the loan. This excess is referred to as accretable discount and is recorded as a reduction of the loan balance.

Loans which, at acquisition, do not have evidence of deterioration of credit quality since origination are outside the scope of FASB ASC 310-30. For such loans, the discount, if any, representing the excess of the amount of reasonably estimable and probable discounted future cash collections over the purchase price, is accreted into interest income using the interest method over the term of the loan. Prepayments are not considered in the calculation of accretion income. Additionally, the discount is not accreted on nonperforming loans.

When a loan is paid off, the excess of any cash received over the net investment is recorded as interest income. In addition to the amount of purchase discount that is recognized at that time, income may include interest owed by the borrower prior to the Company’s acquisition of the loan, interest collected if on nonperforming status, prepayment fees and other loan fees.

Nonperforming Assets

NONPERFORMING ASSETS

In addition to nonperforming loans, nonperforming assets include other real estate owned. Other real estate owned is comprised of properties acquired through foreclosure or acceptance of a deed in lieu of foreclosure. Other real estate owned is recorded initially at estimated fair value less costs to sell. When such assets are acquired, the excess of the loan balance over the estimated fair value of the asset is charged to the allowance for loan losses. An allowance for losses on other real estate owned is established by a charge to earnings when, upon periodic evaluation by management, further declines in the estimated fair value of properties have occurred. Such evaluations are based on an analysis of individual properties as well as a general assessment of current real estate market conditions. Holding costs and rental income on properties are included in current operations, while certain costs to improve such properties are capitalized. Gains and losses from the sale of other real estate owned are reflected in earnings when realized.

Allowance for Loan Losses

ALLOWANCE FOR LOAN LOSSES

The allowance for loan losses is based on management’s evaluation of the quality of the loan portfolio and is used to provide for losses resulting from loans that ultimately prove uncollectible. In determining the level of the allowance, periodic evaluations are made of the loan portfolio, which takes into account such factors as the character of the loans, loan status, financial posture of the borrowers, value of collateral securing the loans and other relevant information sufficient to reach an informed judgment. The allowance is increased by provisions charged to income and reduced by loan charge-offs, net of recoveries. Management maintains an allowance for loan losses to absorb losses inherent in the loan portfolio. The allowance is based on assessments of the probable estimated losses inherent in the loan portfolio. Management’s methodology for assessing the appropriateness of the allowance consists of several key elements, which include the formula allowance, specific allowances, if appropriate, for identified problem loans and the unallocated allowance. Arriving at an appropriate level of allowance for loan losses necessarily involves a high degree of judgment.

While management uses available information in establishing the allowance for loan losses, future adjustments to the allowance may be necessary if economic conditions differ substantially from the assumptions used in making the evaluations. Loans are charged-off in whole or in part when, in management’s opinion, collectibility is not probable. The specific factors that management considers in making the determination that the collectibility of the loan’s principal is not probable include the delinquency status of the loan, the fair value of the collateral and the financial strength of the borrower and/or guarantors. For collateral dependent loans, the amount of the recorded investment in a loan that exceeds the fair value of the collateral is charged-off against the allowance for loan losses in lieu of an allocation of a specific allowance when such an amount has been identified definitively as uncollectible.

The formula allowance evaluates groups of loans to determine the allocation appropriate within each portfolio segment. Individual loans within the commercial and industrial, commercial real estate and real estate construction loan portfolio segments are assigned internal risk ratings to group them with other loans possessing similar risk characteristics. Changes in risk grades affect the amount of the formula allowance. Risk grades are determined by reviewing current collateral value, financial information, cash flow, payment history and other relevant facts surrounding the particular credit. Provisions for losses on the remaining commercial and commercial real estate loans are based on pools of similar loans using a combination of historical net loss experience and qualitative adjustments. For the residential real estate and consumer loan portfolios, the reserves are calculated by applying historical charge-off and recovery experience and qualitative adjustments to the current outstanding balance in each loan category. Loss factors are based on the Company’s historical net loss experience as well as regulatory guidelines.

Specific allowances for loan losses entail the assignment of allowance amounts to individual loans on the basis of loan impairment. Certain loans are evaluated individually and are judged to be impaired when management believes it is probable that the Company will not collect all the contractual interest and principal payments as scheduled in the loan agreement. Under this method, loans are selected for evaluation based upon a change in internal risk rating, occurrence of delinquency, loan classification or nonaccrual status. A specific allowance amount is allocated to an individual loan when such loan has been deemed impaired and when the amount of a probable loss is able to be estimated on the basis of: (a) present value of anticipated future cash flows, (b) the loan’s observable fair market price or (c) fair value of collateral if the loan is collateral dependent.

The formula allowance and specific allowances also include management’s evaluation of various conditions, including business and economic conditions, delinquency trends, charge-off experience and other quality factors.

An unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating allocated and general reserves in the portfolio.

Management has identified certain risk factors, which could impact the degree of loss sustained within the portfolio. These include: (a) market risk factors, such as the effects of economic variability on the entire portfolio and (b) unique portfolio risk factors that are inherent characteristics of the Company’s loan portfolio. Market risk factors may consist of changes to general economic and business conditions that may impact the Company’s loan portfolio customer base in terms of ability to repay and that may result in changes in value of underlying collateral. Unique portfolio risk factors may include industry concentrations and geographic concentrations or trends that may exacerbate losses resulting from economic events which the Company may not be able to fully diversify out of its portfolio.

The qualitative factors are determined based on the various risk characteristics of each loan segment. Risk characteristics relevant to each portfolio segment are as follows:

Residential real estate — The Company generally does not originate loans with a loan-to-value ratio greater than 80 percent. All loans in this segment are collateralized by owner-occupied residential real estate and repayment is dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment rates, will have an effect on the credit quality in the segment.

Commercial real estate — Loans in this segment are primarily income-producing properties. Also included are loans to educational institutions, hospitals and other non-profit organizations. The underlying cash flows generated by the properties are adversely impacted by a downturn in the economy as evidenced by increased vacancy rates, which in turn, will have an effect on the credit quality in this segment. Management monitors the cash flows of these loans.

Construction loans — Loans in this segment primarily include real estate development loans for which payment is derived from sale of the property as well as construction projects in which the property will ultimately be used by the borrower. Credit risk is affected by cost overruns, time to sell at an adequate price and market conditions.

Commercial and industrial loans — Loans in this segment are made to businesses and are generally secured by assets of the business. Repayment is expected from the cash flows of the business. A weakened economy, and resultant decreased consumer spending, will have an effect on the credit quality in this segment.

Bank Premises and Equipment

BANK PREMISES AND EQUIPMENT

Bank premises and equipment are stated at cost less accumulated depreciation and amortization. Land is stated at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the assets or the terms of leases, if shorter. It is general practice to charge the cost of maintenance and repairs to operations when incurred; major expenditures for improvements are capitalized and depreciated.

Goodwill and Identifiable Intangible Assets

GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS

Goodwill represents the excess of the cost of an acquisition over the fair value of the net assets acquired. Goodwill is not subject to amortization. Identifiable intangible assets consist of core deposit intangibles and are assets resulting from acquisitions that are being amortized over their estimated useful lives. Goodwill and identifiable intangible assets are included in other assets on the consolidated balance sheets. The Company tests goodwill for impairment on an annual basis, or more often if events or circumstances indicate there may be impairment. Goodwill impairment testing is performed at the segment (or “reporting unit”) level. Currently, the Company’s goodwill is evaluated at the entity level as there is only one reporting unit. Goodwill is assigned to reporting units at the date the goodwill is initially recorded. Once goodwill has been assigned to reporting units, it no longer retains its association with a particular acquisition, and all of the activities within a reporting unit, whether acquired or organically grown, are available to support the value of the goodwill.

Goodwill impairment is evaluated by first assessing qualitative factors (events and circumstances) to determine whether it is more likely than not (meaning a likelihood of more than 50 percent) that the fair value of a reporting unit is less than its carrying amount. If, after considering all relevant events and circumstances, an entity determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the two-step impairment test will be unnecessary.

The first step, in the two-step impairment test, used to identify potential impairment, involves comparing each reporting unit’s fair value to its carrying value including goodwill. If the fair value of a reporting unit exceeds its carrying value, applicable goodwill is considered not to be impaired. If the carrying value exceeds fair value, there is an indication of impairment and the second step is performed to measure the amount of impairment.

Servicing

SERVICING

The Company services mortgage loans for others. Mortgage servicing assets are recognized as separate assets when rights are acquired through purchase or through sale of financial assets. Fair value is determined using prices for similar assets with similar characteristics, when available, or based upon discounted cash flows using market-based assumptions. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, an inflation rate, ancillary income, prepayment speeds and default rates and losses. Capitalized servicing rights are reported in other assets and are amortized into loan servicing fee income in proportion to, and over the period of, the estimated future net servicing income of the underlying financial assets. Servicing assets are evaluated for impairment based upon the fair value of the rights as compared to amortized cost. Impairment is determined by stratifying rights by predominant risk characteristics, such as interest rates and terms. Impairment is recognized through a valuation allowance for an individual stratum, to the extent that fair value is less than the capitalized amount for the stratum. Changes in the valuation allowance are reported in loan servicing fee income.

Stock Option Accounting

STOCK OPTION ACCOUNTING

The Company follows the fair value recognition provisions of FASB ASC 718, Compensation – Stock Compensation (formerly SFAS 123R) for all share-based payments, using the modified-prospective transition method. The Company’s method of valuation for share-based awards granted utilizes the Black-Scholes option-pricing model, which was also previously used for the Company’s pro forma information required under FASB ASC 718. The Company will recognize compensation expense for its awards on a straight-line basis over the requisite service period for the entire award (straight-line attribution method), ensuring that the amount of compensation cost recognized at any date at least equals the portion of the grant-date fair value of the award that is vested at that time.

During 2000 and 2004, common stockholders of the Company approved stock option plans (the “Option Plans”) that provide for granting of options to purchase up to 150,000 shares of Class A common stock per plan. Under the Option Plans, all officers and key employees of the Company are eligible to receive nonqualified or incentive stock options to purchase shares of Class A common stock. The Option Plans are administered by the Compensation Committee of the Board of Directors, whose members are ineligible to participate in the Option Plans. Based on management’s recommendations, the Committee submits its recommendations to the Board of Directors as to persons to whom options are to be granted, the number of shares granted to each, the option price (which may not be less than 85% of the fair market value for nonqualified stock options, or the fair market value for incentive stock options, of the shares on the date of grant) and the time period over which the options are exercisable (not more than ten years from the date of grant). There were options to purchase an aggregate of 20,375 shares of Class A common stock exercisable at December 31, 2013.

On December 30, 2005, the Board of Directors approved the acceleration and immediate vesting of all unvested options with an exercise price of $31.60 or greater per share. As a consequence, options to purchase 23,950 shares of Class A common stock became exercisable immediately. The average of the high and low price at which the Class A common stock traded on December 30, 2005, the date of the acceleration and vesting, was $29.28 per share. In connection with this acceleration, the Board of Directors approved a technical amendment to each of the Option Plans to eliminate the possibility that the terms of any outstanding or future stock option would require a cash settlement on the occurrence of any circumstance outside the control of the Company.

The Company uses the fair value method to account for stock options. All of the Company’s stock options are vested, and there were no options granted during 2013 and 2012.

Income Taxes

INCOME TAXES

The Company uses the asset and liability method in accounting for income taxes. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which temporary differences are expected to be recovered or settled. Under this method, the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

The Company accounts for uncertain tax positions in accordance with FASB ASC 740.

The Company classifies interest resulting from underpayment of income taxes as income tax expense in the first period the interest would begin accruing according to the provisions of the relevant tax law.

The Company classifies penalties resulting from underpayment of income taxes as income tax expense in the period for which the Company claims or expects to claim an uncertain tax position or in the period in which the Company’s judgment changes regarding an uncertain tax position.

Treasury Stock

TREASURY STOCK

Effective July 1, 2004, companies incorporated in Massachusetts became subject to Chapter 156D of the Massachusetts Business Corporation Act, provisions of which eliminate the concept of treasury stock and provide that shares reacquired by a company are to be treated as authorized but unissued shares.

Pension

PENSION

The Company provides pension benefits to its employees under a noncontributory, defined benefit plan, which is funded on a current basis in compliance with the requirements of the Employee Retirement Income Security Act of 1974 (“ERISA”) and recognizes costs over the estimated employee service period.

The Company also has a Supplemental Executive Insurance/Retirement Plan (“the Supplemental Plan”), which is limited to certain officers and employees of the Company. The Supplemental Plan is accrued on a current basis and recognizes costs over the estimated employee service period.

Executive officers of the Company or its subsidiaries who have at least one year of service may participate in the Supplemental Plan. The Supplemental Plan is voluntary. Individual life insurance policies, which are owned by the Company, are purchased covering the life of each participant.

Revision of EPS Presentation

REVISION OF EPS PRESENTATION

The Company has determined that although the Class A and Class B common stock have different dividend rates, the Company had not applied the two-class method when calculating earnings per share (“EPS”) separately for the Class A and Class B common stock. This resulted in immaterial revisions to previously reported basic EPS for Class A and Class B common stock and diluted EPS for the Class B common stock as summarized below:

For the year ended December 31, 2011:	As previously reported		As revised
Basic EPS – Class A common	$	3.01	$	3.68
Basic EPS – Class B common	$	3.01	$	1.84
Diluted EPS – Class A common	$	3.01	$	3.01
Diluted EPS – Class B common	$	3.01	$	1.84

Recent Accounting Developments

RECENT ACCOUNTING DEVELOPMENTS

In February 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2013-01, Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities. This ASU clarifies the scope of offsetting disclosure requirements in ASU 2011-11, Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities. Under ASU 2013-01, the disclosure requirements would apply to derivative instruments accounted for in accordance with ASC 815, including bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending arrangements that are either offset on the balance sheet or subject to an enforceable master netting arrangement or similar agreement. Entities with other types of financial assets and financial liabilities subject to a master netting arrangement or similar agreement also are affected because these amendments make them no longer subject to the disclosure requirements in ASU No. 2011-11. Effective January 1, 2013, companies are required to disclose (a) gross amounts of recognized assets and liabilities; (b) gross amounts offset in the statement of financial position; (c) net amounts of assets and liabilities presented in the statement of financial position; (d) gross amount subject to enforceable master netting agreement not offset in the statements of financial position; and (e) net amounts after deducting (d) from (c). The disclosure should be presented in tabular format (unless another format is more appropriate) separately for assets and liabilities. The intent of the new disclosure is to enable users of financial statements to understand the effect of those arrangements on its financial position and to allow investors to better compare financial statements prepared under GAAP with financial statements prepared under International Financial Reporting Standards. The Company implemented the provisions of ASU 2011-11 as of January 1, 2013. The adoption of this pronouncement did not have a material effect on the consolidated financial statements.

In February 2013, the FASB issued ASU 2013-02, Comprehensive Income (Topic 220) Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. ASU 2013-02 requires an entity to report the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net income or as a separate disclosure in the notes to the financial statements. The new standard is effective for annual periods beginning January 1, 2013, and interim periods within those annual periods. The Company has presented a separate footnote (Note 13) as a result of this pronouncement.

In July 2013, the FASB issued ASU 2013-10, Inclusion of the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) as a Benchmark Interest Rate for Hedge Accounting Purposes. This ASU amends ASC 815 to allow entities to use the Fed Funds Effective Swap Rate, in addition to U.S. Treasury rates and LIBOR, as a benchmark interest rate in accounting for fair value and cash flow hedges in the United States. This ASU also eliminates the provision from ASC 815-20-25-6 that prohibits the use of different benchmark rates for similar hedges except in rate and justifiable circumstances. This ASU is effective prospectively for qualifying new hedging relationship entered into on or after July 17, 2013, and for hedging relationship redesignated on or after that day. As of December 31, 2013, the Company did not have any fair value and cash flow hedges. The adoption of ASU No. 2013-10 did not have a material impact on the Company’s financial statements.

In July 2013, the FASB issued ASU No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. This ASU provides guidance on financial statement presentation of unrecognized tax benefits (“UTBs”) when a net operating loss (“NOL”) carryforward, a similar tax loss, or a tax credit carryforward exists. The FASB’s objective in issuing this ASU is to eliminate diversity in practice resulting from a lack of guidance on this topic in current U.S. GAAP. Under this ASU, an entity must present a UTB, or a portion of a UTB, in the financial statements as a reduction to a deferred tax asset (“DTA”) for an NOL carryforward, a similar tax loss, or a tax credit carryforward except when: (a) an NOL carryforward, a similar tax loss, or a tax credit carryforward is not available as of the reporting date under the governing tax law to settle taxes that would result from the disallowance of the tax position; (b) the entity does not intend to use the DTA for this purpose (provided that the tax law permits a choice). If either of these conditions exists, an entity should present a UTB in the financial statements as a liability and should not net the UTB with a DTA. New recurring disclosures are not required because the ASU does not affect the recognition or measurement of uncertain tax positions under ASC 740. This amendment does not affect the amounts public entities disclose in the tabular reconciliation of the total amounts of UTBs because the tabular reconciliation presents the gross amount of UTBs. This ASU is effective for fiscal years beginning after December 15, 2013, and interim periods within those years. The amendments should be applied to all UTBs that exist as of the effective date. Entities may choose to apply the amendments retrospectively to each prior reporting period presented. As of December 31, 2013, the Company did not have a UTB. Management will assess the applicability of this ASU after it becomes effective in the first quarter of 2014.

XML

Fair Value Measurements - Changes in Level 3 Securities (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance	$ 53,782	$ 18,914
Purchases	50,012	90,960
Maturities	(67,028)	(56,289)
Amortization	(26)	(41)
Change in fair value	(143)	238
Ending Balance	36,597	53,782
Auction Rate Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance	3,963	3,725
Change in fair value	(143)	238
Ending Balance	3,820	3,963
Obligations Issued by States and Political Subdivisions [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance	49,477	14,772
Purchases	50,012	90,960
Maturities	(66,976)	(56,214)
Amortization	(26)	(41)
Ending Balance	32,487	49,477
Equity Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance	342	417
Maturities	(52)	(75)
Ending Balance	$ 290	$ 342

XML

Parent Company Financial Statements - Statements of Income of Parent Company (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Income:
Other income									$ 2,583	$ 2,551	$ 2,544
Total interest income	20,947	20,549	19,132	19,137	19,738	22,079	20,312	19,365	79,765	81,494	78,065
Interest expense	4,842	4,751	4,620	4,592	4,795	4,859	4,923	4,963	18,805	19,540	22,766
Operating expenses	14,690	13,995	13,662	13,465	13,279	13,708	13,451	12,800	55,812	53,238	48,742
Income before income taxes	5,141	5,827	5,321	4,764	4,917	6,367	5,026	4,121	21,053	20,431	18,247
Benefit from income taxes	116	308	295	288	139	685	255	313	1,007	1,392	1,554
Net income	5,025	5,519	5,026	4,476	4,778	5,682	4,771	3,808	20,046	19,039	16,693
Century Bancorp, Inc. [Member]
Income:
Interest income from deposits in bank									28	33	100
Other income									72	72	72
Total interest income									100	105	172
Interest expense									2,400	2,400	2,400
Operating expenses									208	198	178
Income before income taxes									(2,508)	(2,493)	(2,406)
Benefit from income taxes									(853)	(848)	(818)
Income before equity in undistributed income of subsidiary									(1,655)	(1,645)	(1,588)
Equity in undistributed income of subsidiary									21,701	20,684	18,281
Net income									$ 20,046	$ 19,039	$ 16,693

XML

Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2013

Fair Value Disclosures [Abstract]

Financial Instruments Measured at Fair Value on a Recurring and Non-recurring Basis

The results of the fair value hierarchy as of December 31, 2013, are as follows:

			Fair Value Measurements Using
	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)
(dollars in thousands)
Financial Instruments Measured at Fair Value on a Recurring Basis — Securities AFS
U.S. Treasury	$	1,998	$	—	$	1,998	$	—
U.S. Government Sponsored Enterprises		10,004		—		10,004		—
SBA Backed Securities		7,302		—		7,302		—
U.S. Government Agency and Sponsored Enterprises
Mortgage-Backed Securities		403,189		—		403,189		—
Privately Issued Residential Mortgage-Backed Securities		2,277		—		2,277		—
Obligations Issued by States and Political Subdivisions		36,723		—		416		36,307
Other Debt Securities		2,176		—		2,176		—
Equity Securities		576		286		—		290
Total	$	464,245	$	286	$	427,362	$	36,597
Financial Instruments Measured at Fair Value on a Non-recurring Basis
Impaired Loans	$	1,747	$	—	$	—	$	1,747

The results of the fair value hierarchy as of December 31, 2012, are as follows:

	Fair Value Measurements Using
	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)
(dollars in thousands)
Financial Instruments Measured at Fair Value on a Recurring Basis — Securities AFS
U.S. Treasury	$	2,004	$	—	$	2,004	$	—
U.S. Government Sponsored Enterprises		130,340		—		130,340		—
SBA Backed Securities		8,156		—		8,156		—
U.S. Government Agency and Sponsored Enterprises Mortgage-Backed Securities		1,233,357		—		1,233,357		—
Privately Issued Residential Mortgage-Backed Securities		2,947		—		2,947		—
Privately Issued Commercial Mortgage-Backed Securities		—		—		—		—
Obligations Issued by States and Political Subdivisions		55,174		—		1,734		53,440
Other Debt Securities		2,253		—		2,253		—
Equity Securities		570		228		—		342
Total	$	1,434,801	$	228	$	1,380,791	$	53,782
Financial Instruments Measured at Fair Value on a Non-recurring Basis
Impaired Loans	$	3,587	$	—	$	—	$	3,587

Assets Measured at Fair Value

The following table presents additional information about assets measured at fair value on a recurring and nonrecurring basis for which the Company has utilized Level 3 inputs to determine fair value (dollars in thousands) at December 31, 2013. Management continues to monitor the assumptions used to value the assets listed below.

Asset	Fair Value		Valuation Technique	Unobservable Input	Unobservable Input Value or Range
Securities AFS(1)	$	36,597	Discounted cash flow	Discount rate	0%-1%(2)
Impaired Loans		1,747	Appraisal of collateral(3)	Appraisal adjustments(4)	0%-25% discount

⁽¹⁾ Municipal securities generally have maturities of one year or less and, therefore, the amortized cost equates to the fair value.

⁽²⁾ Weighted averages.

⁽³⁾ Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable.

⁽⁴⁾ Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated expenses.

The following table presents additional information about assets measured at fair value on a recurring and nonrecurring basis for which the Company has utilized Level 3 inputs to determine fair value (dollars in thousands) at December 31, 2012. Management continues to monitor the assumptions used to value the assets listed below.

Asset	Fair Value		Valuation Technique	Unobservable Input	Unobservable Input Unobservable Input Value or Range
Securities AFS(1)	$	53,782	Discounted cash flow	Discount rate	0%-1%(2)
Impaired Loans		3,587	Appraisal of collateral(3)	Appraisal adjustments(4)	0%-25% discount

⁽¹⁾ Municipal securities generally have maturities of one year or less and, therefore, the amortized cost equates to the fair value.

⁽²⁾  Weighted averages.

⁽³⁾  Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable.

⁽⁴⁾  Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated expenses.

Changes in Level 3 Securities

The changes in Level 3 securities for the year ended December 31, 2013 are as shown in the table below:

	Auction Rate Securities			Obligations Issued by States and Political Subdivisions			Equity Securities			Total
(dollars in thousands)
Balance at December 31, 2012	$	3,963		$	49,477		$	342		$	53,782
Purchases		—			50,012			—			50,012
Maturities		—			(66,976	)		(52	)		(67,028	)
Amortization		—			(26	)		—			(26	)
Change in fair value		(143	)		—			—			(143	)
Balance at December 31, 2013	$	3,820		$	32,487		$	290		$	36,597

             The changes in Level 3 securities for the year ended December 31, 2012 are as shown in the table below:

	Auction Rate Securities		Obligations Issued by States and Political Subdivisions			Equity Securities			Total
(dollars in thousands)
Balance at December 31, 2011	$	3,725	$	14,772		$	417		$	18,914
Purchases		—		90,960			—			90,960
Maturities		—		(56,214	)		(75	)		(56,289	)
Amortization		—		(41	)		—			(41	)
Change in fair value		238		—			—			238
Balance at December 31, 2012	$	3,963	$	49,477		$	342		$	53,782

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Parent Company Financial Statements (Tables)

12 Months Ended

Dec. 31, 2013

Condensed Financial Information Of Parent Company Only Disclosure [Abstract]

Balance Sheets of Parent Company

BALANCE SHEETS

December 31,	2013		2012
(dollars in thousands)
ASSETS:
Cash	$	12,245	$	19,536
Investment in subsidiary, at equity		193,783		193,499
Other assets		6,634		3,145
Total assets	$	212,662	$	216,180
LIABILITIES AND STOCKHOLDERS’ EQUITY:
Liabilities	$	107	$	107
Subordinated debentures		36,083		36,083
Stockholders’ equity		176,472		179,990
Total liabilities and stockholders’ equity	$	212,662	$	216,180

Statements of Income of Parent Company

STATEMENTS OF INCOME

Year Ended December 31,	2013			2012			2011
(dollars in thousands)
Income:
Interest income from deposits in bank	$	28		$	33		$	100
Other income		72			72			72
Total income		100			105			172
Interest expense		2,400			2,400			2,400
Operating expenses		208			198			178
Income before income taxes and equity in undistributed income of subsidiary		(2,508	)		(2,493	)		(2,406	)
Benefit from income taxes		(853	)		(848	)		(818	)
Income before equity in undistributed income of subsidiary		(1,655	)		(1,645	)		(1,588	)
Equity in undistributed income of subsidiary		21,701			20,684			18,281
Net income	$	20,046		$	19,039		$	16,693

Statements of Cash Flows of Parent Company

STATEMENTS OF CASH FLOWS

December 31,	2013			2012			2011
(dollars in thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	20,046		$	19,039		$	16,693
Adjustments to reconcile net income to net cash provided by operating activities
Undistributed income of subsidiary		(21,701	)		(20,684	)		(18,281	)
Depreciation and amortization		12			12			12
Increase in other assets		(3,500	)		(416	)		(182	)
Net cash (used in) operating activities		(5,143	)		(2,049	)		(1,758	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from the exercise of stock options		43			304			53
Cash dividends paid		(2,191	)		(2,186	)		(2,180	)
Net cash used in financing activities		(2,148	)		(1,882	)		(2,127	)
Net (decrease) in cash		(7,291	)		(3,931	)		(3,885	)
Cash at beginning of year		19,536			23,467			27,352
Cash at end of year	$	12,245		$	19,536		$	23,467

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Allowance for Loan Losses - Aging of Past-Due Loans (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Financing Receivable, Allowance for Credit Losses [Line Items]
Accruing 30-89 Days Past Due	$ 5,561	$ 6,690
Non Accrual	2,549	4,471	5,827
Accrual Greater Than 90 Days
Total Past Due	8,110	11,161
Current Loans	1,256,653	1,100,627
Total loans, net	1,264,763	1,111,788
Construction and Land Development [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Accruing 30-89 Days Past Due
Non Accrual	500	1,500
Accrual Greater Than 90 Days
Total Past Due	500	1,500
Current Loans	32,558	37,118
Total loans, net	33,058	38,618
Commercial and Industrial [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Accruing 30-89 Days Past Due	112	1,256
Non Accrual	706	676
Accrual Greater Than 90 Days
Total Past Due	818	1,932
Current Loans	91,584	86,543
Total loans, net	92,402	88,475
Commercial Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Accruing 30-89 Days Past Due	1,496	3,450
Non Accrual	306	674
Accrual Greater Than 90 Days
Total Past Due	1,802	4,124
Current Loans	711,525	572,341
Total loans, net	713,327	576,465
Residential Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Accruing 30-89 Days Past Due	2,232	864
Non Accrual	1,034	1,597
Accrual Greater Than 90 Days
Total Past Due	3,266	2,461
Current Loans	282,775	279,396
Total loans, net	286,041	281,857
Consumer [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Accruing 30-89 Days Past Due	11	32
Non Accrual	3	24
Accrual Greater Than 90 Days
Total Past Due	14	56
Current Loans	9,644	7,394
Total loans, net	9,658	7,450
Home Equity [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Accruing 30-89 Days Past Due	1,710	1,088
Accrual Greater Than 90 Days
Total Past Due	1,710	1,088
Current Loans	128,567	117,835
Total loans, net	$ 130,277	$ 118,923

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Consolidated Balance Sheets (USD $)	Dec. 31, 2013	Dec. 31, 2012
ASSETS
Cash and due from banks (Note 2)	$ 59,956,000	$ 53,646,000
Federal funds sold and interest-bearing deposits in other banks	34,722,000	98,637,000
Total cash and cash equivalents	94,678,000	152,283,000
Short-term investments	4,617,000	17,367,000
Securities available-for-sale, amortized cost $465,943 in 2013 and $1,414,595 in 2012 (Notes 3, 9 and 11)	464,245,000	1,434,801,000
Securities held-to-maturity, fair value $1,464,449 in 2013 and $281,924 in 2012 (Notes 4 and 11)	1,487,884,000	275,507,000
Federal Home Loan Bank of Boston, stock at cost	18,072,000	15,146,000
Loans, net (Note 5)	1,264,763,000	1,111,788,000
Less: allowance for loan losses (Note 6)	20,941,000	19,197,000
Net loans	1,243,822,000	1,092,591,000
Bank premises and equipment (Note 7)	23,400,000	23,899,000
Accrued interest receivable	6,539,000	5,811,000
Prepaid FDIC assessments		2,773,000
Other assets (Notes 8 and 16)	87,897,000	66,031,000
Total assets	3,431,154,000	3,086,209,000
LIABILITIES AND STOCKHOLDERS' EQUITY
Demand deposits	475,862,000	438,429,000
Savings and NOW deposits	992,796,000	933,316,000
Money market accounts	864,957,000	653,345,000
Time deposits (Note 10)	382,224,000	419,983,000
Total deposits	2,715,839,000	2,445,073,000
Securities sold under agreements to repurchase (Note 11)	214,440,000	191,390,000
Other borrowed funds (Note 12)	255,144,000	195,144,000
Subordinated debentures (Note 12)	36,083,000	36,083,000
Other liabilities	33,176,000	38,529,000
Total liabilities	3,254,682,000	2,906,219,000
Commitments and contingencies (Notes 7, 18 and 19)
Stockholders' equity (Note 15):
Preferred Stock - $1.00 par value; 100,000 shares authorized; no shares issued and outstanding
Additional paid-in capital	11,932,000	11,891,000
Retained earnings	180,747,000	162,892,000
Stockholders' equity before adjustment of accumulated other comprehensive (income) loss	198,235,000	180,337,000
Unrealized gains (losses) on securities available-for-sale, net of taxes	(1,045,000)	12,330,000
Unrealized losses on securities transferred to held-to-maturity, net of taxes	(13,667,000)
Pension liability, net of taxes	(7,051,000)	(12,677,000)
Total accumulated other comprehensive loss, net of taxes (Notes 3, 13 and 15)	(21,763,000)	(347,000)
Total stockholders' equity	176,472,000	179,990,000
Total liabilities and stockholders' equity	3,431,154,000	3,086,209,000
Class A Common Stock [Member]
Stockholders' equity (Note 15):
Common stock value	3,580,000	3,568,000
Total stockholders' equity	3,580,000	3,568,000
Class B Common Stock [Member]
Stockholders' equity (Note 15):
Common stock value	1,976,000	1,986,000
Total stockholders' equity	$ 1,976,000	$ 1,986,000

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Earnings Per Share ("EPS") (Tables)

12 Months Ended

Dec. 31, 2013

Earnings Per Share [Abstract]

Reconciliation of Basic EPS and Diluted EPS

The following table is a reconciliation of basic EPS and diluted EPS:

Year Ended December 31,	2013		2012		2011
(in thousands except share and per share data)
BASIC EPS COMPUTATION
Numerator:
Net income, Class A	$	15,698	$	14,877	$	13,023
Net income, Class B		4,348		4,162		3,670
Denominator:
Weighted average shares outstanding, Class A		3,575,683		3,557,693		3,543,233
Weighted average shares outstanding, Class B		1,980,855		1,990,474		1,997,411
Basic EPS, Class A	$	4.39	$	4.18	$	3.68
Basic EPS, Class B		2.19		2.09		1.84
DILUTED EPS COMPUTATION
Numerator:
Net income, Class A	$	15,698	$	14,877	$	13,023
Net income, Class B		4,348		4,162		3,670
Total net income, for diluted EPS, Class A computation		20,046		19,039		16,693
Denominator:
Weighted average shares outstanding, basic, Class A		3,575,683		3,557,693		3,543,233
Weighted average shares outstanding, Class B		1,980,855		1,990,474		1,997,411
Dilutive effect of Class A stock options		1,155		1,024		1,150
Weighted average shares outstanding diluted, Class A		5,557,693		5,549,191		5,541,794
Weighted average shares outstanding, Class B		1,980,855		1,990,474		1,997,411
Diluted EPS, Class A	$	3.61	$	3.43	$	3.01
Diluted EPS, Class B		2.19		2.09		1.84

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Stockholders' Equity Dividends - Summary of the Bank's Actual Capital Amounts and Ratios (Detail) (Century Bancorp Capital Trust II [Member], USD $)	Dec. 31, 2013	Dec. 31, 2012
Century Bancorp Capital Trust II [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Total Capital (to Risk-Weighted Assets), Actual Amount	$ 230,038	$ 206,464
Tier 1 Capital (to Risk-Weighted Assets), Actual Amount	209,360	188,226
Tier 1 Capital (to 4th Qtr. Average Assets), Actual Amount	209,360	188,226
Total Capital (to Risk-Weighted Assets), Ratio	13.91%	14.15%
Tier 1 Capital (to Risk-Weighted Assets), Ratio	12.66%	12.90%
Tier 1 Capital (to 4th Qtr. Average Assets), Ratio	6.00%	6.11%
Total Capital (to Risk-Weighted Assets), Capital Adequacy Amount	132,338	116,726
Tier 1 Capital (to Risk-Weighted Assets), Capital Adequacy Amount	66,169	58,363
Tier 1 Capital (to 4th Qtr. Average Assets), Capital Adequacy Amount	139,467	123,202
Total Capital (to Risk-Weighted Assets), Capital Adequacy Ratio	8.00%	8.00%
Tier 1 Capital (to Risk-Weighted Assets), Capital Adequacy Ratio	4.00%	4.00%
Tier 1 Capital (to 4th Qtr. Average Assets), Capital Adequacy Ratio	4.00%	4.00%
Total Capital (to Risk-Weighted Assets), Well Capitalized Amount	165,422	145,907
Tier 1 Capital (to Risk-Weighted Assets), Well Capitalized Amount	99,253	87,544
Tier 1 Capital (to 4th Qtr. Average Assets), Well Capitalized Amount	$ 174,334	$ 154,002
Total Capital (to Risk-Weighted Assets), Well Capitalized Ratio	10.00%	10.00%
Tier 1 Capital (to Risk-Weighted Assets), Well Capitalized Ratio	6.00%	6.00%
Tier 1 Capital (to 4th Qtr. Average Assets), Well Capitalized Ratio	5.00%	5.00%

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Parent Company Financial Statements - Balance Sheets of Parent Company (Detail) (USD $)	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
ASSETS:
Cash	$ 59,956,000	$ 53,646,000
Other assets	87,897,000	66,031,000
Total assets	3,431,154,000	3,086,209,000
LIABILITIES AND STOCKHOLDERS' EQUITY:
Liabilities	3,254,682,000	2,906,219,000
Subordinated debentures	36,083,000	36,083,000
Stockholders' equity	176,472,000	179,990,000	160,649,000	145,025,000
Total liabilities and stockholders' equity	3,431,154,000	3,086,209,000
Century Bancorp, Inc. [Member]
ASSETS:
Cash	12,245,000	19,536,000
Investment in subsidiary, at equity	193,783,000	193,499,000
Other assets	6,634,000	3,145,000
Total assets	212,662,000	216,180,000
LIABILITIES AND STOCKHOLDERS' EQUITY:
Liabilities	107,000	107,000
Subordinated debentures	36,083,000	36,083,000
Stockholders' equity	176,472,000	179,990,000
Total liabilities and stockholders' equity	$ 212,662,000	$ 216,180,000

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Consolidated Statements of Changes in Shareholders' Equity (USD $) In Thousands, unless otherwise specified	Total	Class A Common Stock [Member]	Class B Common Stock [Member]	Additional Paid-In Capital [Member]	Retained Earnings [Member]	Retained Earnings [Member] Class A Common Stock [Member]	Retained Earnings [Member] Class B Common Stock [Member]	Accumulated Other Comprehensive Loss [Member]
Beginning balance at Dec. 31, 2010	$ 145,025	$ 3,529	$ 2,011	$ 11,537	$ 131,526			$ (3,578)
Net income	16,693	13,023	3,670		16,693
Other comprehensive income, net of tax:
Unrealized holding (losses) gains arising during period, net of taxes and realized net gains	4,726							4,726
Pension liability adjustment, net of taxes	(3,667)							(3,667)
Conversion of Class B Common Stock to Class A Common Stock		17	(17)
Stock options exercised	52	2		50
Cash dividends		(1,701)	(479)			(1,701)	(479)
Ending balance at Dec. 31, 2011	160,649	3,548	1,994	11,587	146,039			(2,519)
Net income	19,039	14,877	4,162		19,039
Other comprehensive income, net of tax:
Unrealized holding (losses) gains arising during period, net of taxes and realized net gains	4,011							4,011
Pension liability adjustment, net of taxes	(1,839)							(1,839)
Conversion of Class B Common Stock to Class A Common Stock		8	(8)
Stock options exercised	304	12		292
Cashless stock options exercised	12			12
Cash dividends		(1,708)	(478)			(1,708)	(478)
Ending balance at Dec. 31, 2012	179,990	3,568	1,986	11,891	162,892			(347)
Net income	20,046	15,698	4,348		20,046
Other comprehensive income, net of tax:
Unrealized holding (losses) gains arising during period, net of taxes and realized net gains	(13,375)							(13,375)
Unrealized losses on securities transferred to held-to-maturity net of taxes	(15,553)							(15,553)
Accretion of net unrealized losses transferred during the period, net of taxes	1,886							1,886
Pension liability adjustment, net of taxes	5,626							5,626
Conversion of Class B Common Stock to Class A Common Stock		10	(10)
Stock options exercised	43	2		41
Cash dividends		(1,716)	(475)			(1,716)	(475)
Ending balance at Dec. 31, 2013	$ 176,472	$ 3,580	$ 1,976	$ 11,932	$ 180,747			$ (21,763)

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Stockholders' Equity Dividends - Additional Information (Detail) (USD $)					12 Months Ended			12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2013 Stock Option Plan [Member]	Dec. 31, 2012 Stock Option Plan [Member]	Dec. 31, 2011 Stock Option Plan [Member]	Dec. 31, 2013 Minimum [Member]	Dec. 31, 2013 Minimum [Member] Stock Option Plan [Member]	Dec. 31, 2013 Maximum [Member] Stock Option Plan [Member]	Dec. 31, 2013 Class A Common Stock [Member]	Dec. 31, 2012 Class A Common Stock [Member]	Dec. 31, 2011 Class A Common Stock [Member]	Dec. 31, 2013 Class A Common Stock [Member] Minimum [Member]	Dec. 31, 2013 Class A Common Stock [Member] Maximum [Member]	Dec. 31, 2012 Class A Common Stock [Member] Maximum [Member]
Class of Stock [Line Items]
Dividend per share percent								200.00%						200.00%
Stock repurchase program, number of additional shares authorized to be repurchased											300,000	300,000
Stock repurchase program, number of shares authorized to be repurchased, Percent															9.00%	9.00%
Share based compensation number of share authorized										150,000	150,000
Share based compensation of option price based on fair value									85.00%
Number of outstanding options	20,375	23,350	36,062	38,712	20,375
Stock option exercisable period										10 years
Exercise prices of shares outstanding, minimum											$ 15.06	$ 15.06	$ 15.06
Exercise prices of shares outstanding, maximum											$ 31.83	$ 31.83	$ 31.83
Weighted average remaining contractual life											1 year	2 years	2 years
Weighted average intrinsic value of options exercised					$ 6.49
Aggregate value of weighted average intrinsic value of options exercised					$ 10,548
Aggregate value of weighted average intrinsic value of options exercisable					$ 29,136	$ 41,549	$ 49,145

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Securities Available-for-Sale -Estimated Maturity Distribution of Securities Available-for-Sale (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Investments Debt And Equity Securities [Abstract]
Within one year, Amortized Cost	$ 36,942
After one but within five years, Amortized Cost	180,676
After five but within ten years, Amortized Cost	238,822
More than 10 years, Amortized Cost	7,597
Nonmaturing, Amortized Cost	1,906
Total, Amortized Cost	465,943
Within one year, Fair Value	36,964
After one but within five years, Fair Value	180,540
After five but within ten years, Fair Value	238,018
More than 10 years, Fair Value	6,771
Nonmaturing, Fair Value	1,952
Total, Fair Value	$ 464,245	$ 1,434,801

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Income Taxes - Additional Information (Detail) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Income Tax Disclosure [Abstract]
Penalties expense	$ 0	$ 0	$ 0
Internal Revenue Service for interest		$ 2,000

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Investment Securities Held-to-Maturity (Tables)

12 Months Ended

Dec. 31, 2013

Text Block [Abstract]

Unrealized Gain (Losses) on Securities

	December 31, 2013								December 31, 2012
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
(dollars in thousands)
U.S. Government Sponsored Enterprise	$	291,779	$	185	$	5,043	$	286,921	$	17,747	$	19	$	8	$	17,758
U.S. Government Sponsored Enterprise Mortgage-Backed Securities		1,196,105		2,239		20,816		1,177,528		257,760		6,480		74		264,166
Total	$	1,487,884	$	2,424	$	25,859	$	1,464,449	$	275,507	$	6,499	$	82	$	281,924

Company's Securities Held-to-Maturity

The following table shows the maturity distribution of the Company’s securities held-to-maturity at December 31, 2013.

	Amortized Cost		Fair Value
(dollars in thousands)
Within one year	$	5,689	$	5,672
After one but within five years		827,333		818,936
After five but within ten years		653,784		638,750
More than ten years		1,078		1,091
Total	$	1,487,884	$	1,464,449

Unrealized Market Loss of Securities

The following table shows the temporarily impaired securities of the Company’s held-to-maturity portfolio at December 31, 2013. This table shows the unrealized market loss of securities that have been in a continuous unrealized loss position for 12 months or less and a continuous loss position for 12 months and longer. There are 191 and 13 securities that are temporarily impaired for less than 12 months and for 12 months or longer, respectively, out of a total of 300 holdings at December 31, 2013.

	December 31, 2013
	Less Than 12 Months				12 Months or Longer				Total
Temporarily Impaired Investments	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
(dollars in thousands)
U.S. Government Sponsored Enterprises	$	232,535	$	5,043	$	—	$	—	$	232,535	$	5,043
U.S. Government Agency and Sponsored
Enterprise Mortgage-Backed Securities		931,180		18,654		80,362		2,162		1,011,542		20,816
Total temporarily impaired securities	$	1,163,715	$	23,697	$	80,362	$	2,162	$	1,244,077	$	25,859

The following table shows the temporarily impaired securities of the Company’s held-to-maturity portfolio at December 31, 2012. This table shows the unrealized market loss of securities that have been in a continuous unrealized loss position for 12 months or less and a continuous loss position for 12 months and longer. There are 3 and 1 securities that are temporarily impaired for less than 12 months and for 12 months or longer, respectively, out of a total of 96 holdings at December 31, 2012.

	December 31, 2012
	Less Than 12 Months				12 Months or Longer				Total
Temporarily Impaired Investments	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
(dollars in thousands)
U.S. Government Sponsored Enterprises	$	9,994	$	8	$	—	$	—	$	9,994	$	8
U.S. Government Agency and Sponsored
Enterprise Mortgage-Backed Securities		8,936		50		5,371		24		14,307		74
Total temporarily impaired securities	$	18,930	$	58	$	5,371	$	24	$	24,301	$	82

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Loans - Summary Shows the Composition of the Loan Portfolio (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Composition of Nonaccrual Loans and Impaired Loans [Line Items]
Total	$ 1,264,763	$ 1,111,788
Construction and Land Development [Member]
Composition of Nonaccrual Loans and Impaired Loans [Line Items]
Total	33,058	38,618
Commercial and Industrial [Member]
Composition of Nonaccrual Loans and Impaired Loans [Line Items]
Total	92,402	88,475
Commercial Real Estate [Member]
Composition of Nonaccrual Loans and Impaired Loans [Line Items]
Total	713,327	576,465
Residential Real Estate [Member]
Composition of Nonaccrual Loans and Impaired Loans [Line Items]
Total	286,041	281,857
Consumer [Member]
Composition of Nonaccrual Loans and Impaired Loans [Line Items]
Total	8,824	6,823
Home Equity [Member]
Composition of Nonaccrual Loans and Impaired Loans [Line Items]
Total	130,277	118,923
Overdrafts [Member]
Composition of Nonaccrual Loans and Impaired Loans [Line Items]
Total	$ 834	$ 627

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Earnings Per Share ("EPS")

12 Months Ended

Dec. 31, 2013

Earnings Per Share [Abstract]

Earnings Per Share ("EPS")

14.     Earnings per share (“EPS”)

Class A and Class B shares participate equally in undistributed earnings. Under the Company’s Articles of Organization, the holders of Class A Common Stock are entitled to receive dividends per share equal to at least 200% of dividends paid, if any, from time to time, on each share of Class B Common Stock.

Diluted EPS includes the dilutive effect of common stock equivalents; basic EPS excludes all common stock equivalents. The only common stock equivalents for the Company are the stock options discussed below. The dilutive effect of these stock options for 2013, 2012 and 2011 was an increase of 1,155, 1,024 and 1,149 shares, respectively.

The following table is a reconciliation of basic EPS and diluted EPS:

Year Ended December 31,	2013		2012		2011
(in thousands except share and per share data)
BASIC EPS COMPUTATION
Numerator:
Net income, Class A	$	15,698	$	14,877	$	13,023
Net income, Class B		4,348		4,162		3,670
Denominator:
Weighted average shares outstanding, Class A		3,575,683		3,557,693		3,543,233
Weighted average shares outstanding, Class B		1,980,855		1,990,474		1,997,411
Basic EPS, Class A	$	4.39	$	4.18	$	3.68
Basic EPS, Class B		2.19		2.09		1.84
DILUTED EPS COMPUTATION
Numerator:
Net income, Class A	$	15,698	$	14,877	$	13,023
Net income, Class B		4,348		4,162		3,670
Total net income, for diluted EPS, Class A computation		20,046		19,039		16,693
Denominator:
Weighted average shares outstanding, basic, Class A		3,575,683		3,557,693		3,543,233
Weighted average shares outstanding, Class B		1,980,855		1,990,474		1,997,411
Dilutive effect of Class A stock options		1,155		1,024		1,150
Weighted average shares outstanding diluted, Class A		5,557,693		5,549,191		5,541,794
Weighted average shares outstanding, Class B		1,980,855		1,990,474		1,997,411
Diluted EPS, Class A	$	3.61	$	3.43	$	3.01
Diluted EPS, Class B		2.19		2.09		1.84

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Loans (Tables)

12 Months Ended

Dec. 31, 2013

Debt Disclosure [Abstract]

Summary Shows the Composition of the Loan Portfolio

The following summary shows the composition of the loan portfolio at the dates indicated.

December 31,	2013		2012
(dollars in thousands)
Construction and land development	$	33,058	$	38,618
Commercial and industrial		92,402		88,475
Commercial real estate		713,327		576,465
Residential real estate		286,041		281,857
Consumer		8,824		6,823
Home equity		130,277		118,923
Overdrafts		834		627
Total	$	1,264,763	$	1,111,788

Composition of Nonaccrual Loans and Impaired Loans

The composition of nonaccrual loans and impaired loans is as follows:

December 31,	2013		2012		2011
(dollars in thousands)
Loans on nonaccrual	$	2,549	$	4,471	$	5,827
Loans 90 days past due and still accruing		—		—		18
Impaired loans on nonaccrual included above		1,819		2,878		3,468
Total recorded investment in impaired loans		7,788		5,925		8,102
Average recorded investment of impaired loans		6,776		7,043		10,284
Accruing troubled debt restructures		5,969		3,048		4,634
Interest income not recorded on nonaccrual loans according to their original terms		711		753		846
Interest income on nonaccrual loans actually recorded		—		—		—
Interest income recognized on impaired loans		161		180		155

The Aggregate Amount of Loans to Directors and Officers of the Company and Their Associates

The following table shows the aggregate amount of loans to directors and officers of the Company and their associates during 2013.

Balance at December 31, 2012	Additions		Repayments and Deletions		Balance at December 31, 2013
(dollars in thousands)
$4,663	$	310	$	269	$	4,704

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Income Taxes - Summary of Current and Deferred Components of Income Tax Expense (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Current expense:
Federal									$ 3,520	$ 3,181	$ 2,198
State									416	315	309
Total current expense									3,936	3,496	2,507
Deferred (benefit) expense:
Federal									(2,564)	(1,833)	(961)
State									(365)	(271)	8
Total deferred benefit									(2,929)	(2,104)	(953)
Provision for income taxes	$ 116	$ 308	$ 295	$ 288	$ 139	$ 685	$ 255	$ 313	$ 1,007	$ 1,392	$ 1,554

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Income Taxes

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

Income Taxes

16.     Income Taxes

The current and deferred components of income tax expense for the years ended December 31 are as follows:

	2013			2012			2011
(dollars in thousands)
Current expense:
Federal	$	3,520		$	3,181		$	2,198
State		416			315			309
Total current expense		3,936			3,496			2,507
Deferred (benefit) expense:
Federal		(2,564	)		(1,833	)		(961	)
State		(365	)		(271	)		8
Total deferred benefit		(2,929	)		(2,104	)		(953	)
Provision for income taxes	$	1,007		$	1,392		$	1,554

There were no penalties during 2011, 2012, or 2013. There was approximately $2,000 paid to the Internal Revenue Service for interest during 2012.

Income tax accounts included in other assets/liabilities at December 31 are as follows:

	2013		2012
(dollars in thousands)
Currently receivable	$	702	$	630
Deferred income tax asset, net		30,857		14,551
Total	$	31,559	$	15,181

Differences between income tax expense at the statutory federal income tax rate and total income tax expense are summarized as follows:

	2013			2012			2011
(dollars in thousands)
Federal income tax expense at statutory rates	$	7,158		$	6,946		$	6,204
State income tax, net of federal income tax benefit		34			29			209
Insurance income		(380	)		(396	)		(396	)
Effect of tax-exempt interest		(5,348	)		(4,628	)		(3,801	)
Net tax credit		(572	)		(633	)		(683	)
Other		115			74			21
Total	$	1,007		$	1,392		$	1,554
Effective tax rate		4.8	%		6.8	%		8.5	%

The following table sets forth the Company’s gross deferred income tax assets and gross deferred income tax liabilities at December 31:

	2013			2012
(dollars in thousands)
Deferred income tax assets:
Allowance for loan losses	$	9,199		$	8,103
Unrealized losses on securities transferred to held-to-maturity		8,590			—
Deferred compensation		6,515			5,643
Pension and SERP liability		4,880			8,621
AMT credit		3,164			1,908
Unrealized losses (gains) on securities available-for-sale		652			(7,875	)
Acquisition premium		438			541
Nonaccrual interest		136			151
Depreciation		109			(36	)
Investments write down		26			26
Deferred gain		—			11
Other		198			235
Gross deferred income tax asset		33,907			17,328
Deferred income tax liabilities:
Limited partnerships		(2,769	)		(2,722	)
Mortgage servicing rights		(281	)		(55	)
Gross deferred income tax liability		(3,050	)		(2,777	)
Deferred income tax asset net	$	30,857		$	14,551

Based on the Company’s historical and current pre-tax earnings, management believes it is more likely than not that the Company will realize the deferred income tax asset existing at December 31, 2013. Management believes that existing net deductible temporary differences which give rise to the deferred tax asset will reverse during periods in which the Company generates net taxable income. In addition, gross deductible temporary differences are expected to reverse in periods during which offsetting gross taxable temporary differences are expected to reverse. Factors beyond management’s control, such as the general state of the economy and real estate values, can affect future levels of taxable income, and no assurance can be given that sufficient taxable income will be generated to fully absorb gross deductible temporary differences. The Company is in an Alternative Minimum Tax (“AMT”) credit position. The AMT credit is carried as a deferred asset and has an indefinite life. The Company has potential tax planning strategies available which support the deferred AMT credit and, at this time, no valuation allowance is needed.

The Company and its subsidiaries file a consolidated federal tax return. For the tax year beginning in 2009, the Commonwealth of Massachusetts requires a combined state tax return, except for security corporations, which file separate tax returns. The Company is subject to federal and state examinations for tax years after December 31, 2009.

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Loans - The Aggregate Amount of Loans to Directors and Officers of the Company and Their Associates (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013
Debt Disclosure [Abstract]
Beginning balance	$ 4,663
Additions	310
Repayments and Deletions	269
Ending balance	$ 4,704

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Employee Benefits - Summary of Accumulated Other Comprehensive Loss Expected to be Recognized (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Defined Benefit Plan Disclosure [Line Items]
Amortization of loss to be recognized in 2014	$ (4,932)	$ 2,488	$ 4,047
Defined Benefit Pension Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Amortization of prior service cost to be recognized in 2014	(104)
Amortization of loss to be recognized in 2014	12
Supplemental Insurance/ Retirement Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Amortization of prior service cost to be recognized in 2014	114
Amortization of loss to be recognized in 2014	$ 355

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Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Unrealized holding gains arising during period, taxes	$ 8,527	$ 2,491	$ 3,143
Realized net gains	3,019	1,843	1,940
Unrealized losses on securities transferred to held-to-maturity, taxes	9,781
Accretion of net unrealized losses transferred during the period, taxes	1,191
Pension liability adjustment, taxes	$ 3,741	$ 1,223	$ 2,439
Conversion of class B common stock to class A common stock, shares	10,700	7,500	17,000
Stock options exercised, shares	1,625	12,262	2,450
Cashless stock options exercised, shares		6,750
Class A Common Stock [Member]
Cash dividends, per share	$ 0.48	$ 0.48	$ 0.48
Class B Common Stock [Member]
Cash dividends, per share	$ 0.24	$ 0.24	$ 0.24

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Consolidated Balance Sheets (Parenthetical) (USD $)	Dec. 31, 2013	Dec. 31, 2012
Amortized cost	$ 465,943,000	$ 1,414,595,000
Held-to-maturity securities, fair value	$ 1,464,449,000	$ 281,924,000
Preferred stock, par value	$ 1.00	$ 1.00
Preferred stock, shares authorized	100,000	100,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Class A Common Stock [Member]
Common stock, par value	$ 1.00	$ 1.00
Common stock, shares authorized	10,000,000	10,000,000
Common stock, shares issued	3,580,404	3,568,079
Class B Common Stock [Member]
Common stock, par value	$ 1.00	$ 1.00
Common stock, shares authorized	5,000,000	5,000,000
Common stock, shares issued	1,976,180	1,986,880

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Fair Value Measurements

12 Months Ended

Dec. 31, 2013

Fair Value Disclosures [Abstract]

Fair Value Measurements

9.     Fair Value Measurements

The Company follows FASB ASC 820-10, Fair Value Measurements and Disclosures (formerly SFAS 157, “Fair Value Measurements”), which among other things, requires enhanced disclosures about assets and liabilities carried at fair value. ASC 820-10 establishes a hierarchal disclosure framework associated with the level of pricing observability utilized in measuring financial instruments at fair value. The three broad levels of the hierarchy are as follows:

Level I — Quoted prices are available in active markets for identical assets or liabilities as of the reported date. The type of financial instruments included in Level I are highly liquid cash instruments with quoted prices such as G-7 government, agency securities, listed equities and money market securities, as well as listed derivative instruments.

Level II — Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reported date. The nature of these financial instruments include cash instruments for which quoted prices are available but traded less frequently, derivative instruments whose fair value have been derived using a model where inputs to the model are directly observable in the market, or can be derived principally from or corroborated by observable market data, and instruments that are fair valued using other financial instruments, the parameters of which can be directly observed. Instruments which are generally included in this category are corporate bonds and loans, mortgage whole loans, municipal bonds and OTC derivatives.

Level III — These instruments have little to no pricing observability as of the reported date. These financial instruments do not have two-way markets and are measured using management’s best estimate of fair value, where the inputs into the determination of fair value require significant management judgment or estimation. Instruments that are included in this category generally include certain commercial mortgage loans, certain private equity investments, distressed debt, non-investment grade residual interests in securitizations, as well as certain highly structured OTC derivative contracts.

The results of the fair value hierarchy as of December 31, 2013, are as follows:

			Fair Value Measurements Using
	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)
(dollars in thousands)
Financial Instruments Measured at Fair Value on a Recurring Basis — Securities AFS
U.S. Treasury	$	1,998	$	—	$	1,998	$	—
U.S. Government Sponsored Enterprises		10,004		—		10,004		—
SBA Backed Securities		7,302		—		7,302		—
U.S. Government Agency and Sponsored Enterprises
Mortgage-Backed Securities		403,189		—		403,189		—
Privately Issued Residential Mortgage-Backed Securities		2,277		—		2,277		—
Obligations Issued by States and Political Subdivisions		36,723		—		416		36,307
Other Debt Securities		2,176		—		2,176		—
Equity Securities		576		286		—		290
Total	$	464,245	$	286	$	427,362	$	36,597
Financial Instruments Measured at Fair Value on a Non-recurring Basis
Impaired Loans	$	1,747	$	—	$	—	$	1,747

Impaired loan balances in the table above represent those collateral dependent loans where management has estimated the credit loss by comparing the loan’s carrying value against the expected realizable fair value of the collateral. Fair value is generally determined through a review process that includes independent appraisals, discounted cash flows, or other external assessments of the underlying collateral, which generally include various Level 3 inputs which are not identifiable. The Company discounts the fair values, as appropriate, based on management’s observations of the local real estate market for loans in this category.

Appraisals, discounted cash flows and real estate tax assessments are reviewed quarterly. There is no specific policy regarding how frequently appraisals will be updated. Adjustments are made to appraisals and real estate tax assessments based on management’s estimate of changes in real estate values. Within the past twelve months there have been no updated appraisals, however, all impaired loans have been reviewed during the past quarter using either a discounted cash flow analysis or other type of real estate tax assessment. The types of adjustments that are made to specific provisions (credits) relate to impaired loans recognized for 2013 for the estimated credit loss amounted to $48,000.

There were no transfers between level 1 and 2 for the year ended December 31, 2013. There were no liabilities measured at fair value on a recurring or nonrecurring basis during the year ended December 31, 2013.

The following table presents additional information about assets measured at fair value on a recurring and nonrecurring basis for which the Company has utilized Level 3 inputs to determine fair value (dollars in thousands) at December 31, 2013. Management continues to monitor the assumptions used to value the assets listed below.

Asset	Fair Value		Valuation Technique	Unobservable Input	Unobservable Input Value or Range
Securities AFS(1)	$	36,597	Discounted cash flow	Discount rate	0%-1%(2)
Impaired Loans		1,747	Appraisal of collateral(3)	Appraisal adjustments(4)	0%-25% discount

⁽¹⁾ Municipal securities generally have maturities of one year or less and, therefore, the amortized cost equates to the fair value.

⁽²⁾ Weighted averages.

⁽³⁾ Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable.

⁽⁴⁾ Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated expenses.

The changes in Level 3 securities for the year ended December 31, 2013 are as shown in the table below:

	Auction Rate Securities			Obligations Issued by States and Political Subdivisions			Equity Securities			Total
(dollars in thousands)
Balance at December 31, 2012	$	3,963		$	49,477		$	342		$	53,782
Purchases		—			50,012			—			50,012
Maturities		—			(66,976	)		(52	)		(67,028	)
Amortization		—			(26	)		—			(26	)
Change in fair value		(143	)		—			—			(143	)
Balance at December 31, 2013	$	3,820		$	32,487		$	290		$	36,597

The amortized cost of Level 3 securities was $37,463,000 with an unrealized loss of $866,000 at December 31, 2013. The securities in this category are generally equity investments, municipal securities with no readily determinable fair value or failed auction rate securities. Management evaluated the fair value of these securities based on an evaluation of the underlying issuer, prevailing rates and market liquidity.

The results of the fair value hierarchy as of December 31, 2012, are as follows:

	Fair Value Measurements Using
	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)
(dollars in thousands)
Financial Instruments Measured at Fair Value on a Recurring Basis — Securities AFS
U.S. Treasury	$	2,004	$	—	$	2,004	$	—
U.S. Government Sponsored Enterprises		130,340		—		130,340		—
SBA Backed Securities		8,156		—		8,156		—
U.S. Government Agency and Sponsored Enterprises Mortgage-Backed Securities		1,233,357		—		1,233,357		—
Privately Issued Residential Mortgage-Backed Securities		2,947		—		2,947		—
Privately Issued Commercial Mortgage-Backed Securities		—		—		—		—
Obligations Issued by States and Political Subdivisions		55,174		—		1,734		53,440
Other Debt Securities		2,253		—		2,253		—
Equity Securities		570		228		—		342
Total	$	1,434,801	$	228	$	1,380,791	$	53,782
Financial Instruments Measured at Fair Value on a Non-recurring Basis
Impaired Loans	$	3,587	$	—	$	—	$	3,587

Appraisals, discounted cash flows and real estate tax assessments are reviewed quarterly. There is no specific policy regarding how frequently appraisals will be updated. Adjustments are made to appraisals and real estate tax assessments based on management’s estimate of changes in real estate values. Within the past twelve months there have been no updated appraisals, however, all impaired loans have been reviewed during the past quarter using either a discounted cash flow analysis or other type of real estate tax assessment. Specific provisions relate to impaired loans recognized for 2012 for the estimated credit loss amounted to $1,909,000.

There were no transfers between level 1 and 2 for the year ended December 31, 2012. There were no liabilities measured at fair value on a recurring or nonrecurring basis during the year ended December 31, 2012.

The following table presents additional information about assets measured at fair value on a recurring and nonrecurring basis for which the Company has utilized Level 3 inputs to determine fair value (dollars in thousands) at December 31, 2012. Management continues to monitor the assumptions used to value the assets listed below.

Asset	Fair Value		Valuation Technique	Unobservable Input	Unobservable Input Unobservable Input Value or Range
Securities AFS(1)	$	53,782	Discounted cash flow	Discount rate	0%-1%(2)
Impaired Loans		3,587	Appraisal of collateral(3)	Appraisal adjustments(4)	0%-25% discount

⁽¹⁾ Municipal securities generally have maturities of one year or less and, therefore, the amortized cost equates to the fair value.

⁽²⁾  Weighted averages.

⁽³⁾  Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable.

⁽⁴⁾  Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated expenses.

The changes in Level 3 securities for the year ended December 31, 2012 are as shown in the table below:

	Auction Rate Securities		Obligations Issued by States and Political Subdivisions			Equity Securities			Total
(dollars in thousands)
Balance at December 31, 2011	$	3,725	$	14,772		$	417		$	18,914
Purchases		—		90,960			—			90,960
Maturities		—		(56,214	)		(75	)		(56,289	)
Amortization		—		(41	)		—			(41	)
Change in fair value		238		—			—			238
Balance at December 31, 2012	$	3,963	$	49,477		$	342		$	53,782

The amortized cost of Level 3 securities was $54,504,000 with an unrealized loss of $722,000 at December 31, 2012. The securities in this category are generally equity investments, municipal securities with no readily determinable fair value or failed auction rate securities. Management evaluated the fair value of these securities based on an evaluation of the underlying issuer, prevailing rates and market liquidity.

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Employee Benefits - Additional Information (Detail) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Defined Benefit Plan Disclosure [Line Items]
Benefits expected to be paid in 2014	$ 1,092,000
Benefits expected to be paid in 2015	1,176,000
Benefits expected to be paid in 2016	1,247,000
Benefits expected to be paid in 2017	1,322,000
Benefits expected to be paid in 2018	1,325,000
Aggregate benefits expected to paid	8,011,000
Expected to contribute Pension Plan	1,000,000
Voluntary contribution of employees	33.30%
Contributions matched by compensation contribution	6.00%
Voluntary contribution of employees, amount	322,000	308,000	266,000
Discretionary bonus expense	1,313,000	1,289,000	1,100,000
Supplemental Insurance/ Retirement Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Benefits expected to be paid in 2014	1,108,000
Benefits expected to be paid in 2015	1,088,000
Benefits expected to be paid in 2016	1,515,000
Benefits expected to be paid in 2017	1,973,000
Benefits expected to be paid in 2018	1,981,000
Aggregate benefits expected to paid	$ 10,341,000
Equity Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Allocation mix for the common and collective trust portfolio, Minimum	40.00%
Allocation mix for the common and collective trust portfolio, Maximum	64.00%
Short-Term Investments [Member]
Defined Benefit Plan Disclosure [Line Items]
Allocation mix for the common and collective trust portfolio, Minimum	15.00%
Allocation mix for the common and collective trust portfolio, Maximum	25.00%
Hedge Funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Allocation mix for the common and collective trust portfolio, Minimum	20.00%
Allocation mix for the common and collective trust portfolio, Maximum	36.00%

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Earnings Per Share ("EPS") - Reconciliation of Basic EPS and Diluted EPS (Detail) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Net income	$ 5,025	$ 5,519	$ 5,026	$ 4,476	$ 4,778	$ 5,682	$ 4,771	$ 3,808	$ 20,046	$ 19,039	$ 16,693
Class A Common Stock [Member]
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Net income									15,698	14,877	13,023
Weighted average shares outstanding, basic	3,580,404	3,578,400	3,574,379	3,569,546	3,564,145	3,559,125	3,556,474	3,550,993	3,575,683	3,557,693	3,543,233
Basic earnings per share	$ 1.10	$ 1.21	$ 1.10	$ 0.98	$ 1.05	$ 1.25	$ 1.05	$ 0.84	$ 4.39	$ 4.18	$ 3.68
Dilutive effect of Class A stock options									1,155	1,024	1,150
Weighted average shares outstanding, diluted	5,557,419	5,558,031	5,557,354	5,557,365	5,552,121	5,549,810	5,548,830	5,545,711	5,557,693	5,549,191	5,541,794
Diluted earnings per share	$ 0.90	$ 0.99	$ 0.90	$ 0.81	$ 0.86	$ 1.02	$ 0.86	$ 0.69	$ 3.61	$ 3.43	$ 3.01
Class B Common Stock [Member]
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Net income									$ 4,348	$ 4,162	$ 3,670
Weighted average shares outstanding, basic	1,976,180	1,978,180	1,982,180	1,986,880	1,986,880	1,989,380	1,991,880	1,993,755	1,980,855	1,990,474	1,997,411
Basic earnings per share	$ 0.55	$ 0.60	$ 0.55	$ 0.49	$ 0.52	$ 0.62	$ 0.52	$ 0.42	$ 2.19	$ 2.09	$ 1.84
Weighted average shares outstanding, diluted	1,976,180	1,978,180	1,982,180	1,986,880	1,986,880	1,989,380	1,991,880	1,993,755	1,980,855	1,990,474	1,997,411
Diluted earnings per share	$ 0.55	$ 0.60	$ 0.55	$ 0.49	$ 0.52	$ 0.62	$ 0.52	$ 0.42	$ 2.19	$ 2.09	$ 1.84

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Reclassifications Out of Accumulated Other Comprehensive Income - Reclassifications Out of Accumulated Other Comprehensive Income (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net gains on sale of investments									$ 3,019	$ 1,843	$ 1,940
Securities held-to-maturity									16,615	6,746	5,816
Provision for income taxes	(116)	(308)	(295)	(288)	(139)	(685)	(255)	(313)	(1,007)	(1,392)	(1,554)
Net income	5,025	5,519	5,026	4,476	4,778	5,682	4,771	3,808	20,046	19,039	16,693
Salaries and employee benefits									(35,244)	(32,943)	(29,630)
Reclassification Out of Accumulated Other Comprehensive Income [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net income									3,032	466
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Unrealized Gains and Losses on Available-for-Sale Securities [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net gains on sale of investments									3,019	1,843
Provision for income taxes									(1,179)	(728)
Net income									1,840	1,115
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Accretion of Unrealized Losses Transferred [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Securities held-to-maturity									3,077
Provision for income taxes									(1,191)
Net income									1,886
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Prior-Service Costs [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Salaries and employee benefits									(10)	(10)
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Actuarial Gains (Losses) [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Salaries and employee benefits									(1,144)	(1,071)
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Amortization of Defined Benefit Pension Items [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total before tax									(1,154)	(1,081)
Provision for income taxes									460	432
Net income									$ (694)	$ (649)

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Document and Entity Information (USD $)	12 Months Ended
	Dec. 31, 2013	Jun. 28, 2013	Feb. 28, 2014 Class A Common Stock [Member]	Feb. 28, 2014 Class B Common Stock [Member]
Document Information [Line Items]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2013
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	FY
Entity Registrant Name	CENTURY BANCORP INC
Entity Central Index Key	0000812348
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding			3,581,429	1,975,180
Entity Public Float		$ 125,231,085

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Deposits

12 Months Ended

Dec. 31, 2013

Banking And Thrift [Abstract]

Deposits

10.     Deposits

The following is a summary of remaining maturities or re-pricing of time deposits as of December 31,

	2013		Percent			2012		Percent
(dollars in thousands)
Within one year	$	248,758		65	%	$	299,456		71	%
Over one year to two years		41,533		11	%		67,918		16	%
Over two years to three years		48,357		13	%		19,834		5	%
Over three years to five years		43,576		11	%		32,775		8	%
Total	$	382,224		100	%	$	419,983		100	%

Time deposits of $100,000 or more totaled $259,665,000 and $287,048,000 in 2013 and 2012, respectively.

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Fair Value Measurements - Financial Instruments Measured at Fair Value on a Recurring and Non-recurring Basis (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS	$ 464,245	$ 1,434,801
U.S. Treasury [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS	1,998	2,004
U.S. Government Sponsored Enterprises [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS	10,004	130,340
SBA Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS	7,302	8,156
Privately Issued Residential Mortgage-Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS	2,277	2,947
Obligations Issued by States and Political Subdivisions [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS	36,723	55,174
Other Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS	2,175	2,253
Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS	576	570
U.S. Government Agency and Sponsored Enterprises Mortgage-Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS	403,190	1,233,357
Carrying Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS	464,245	1,434,801
Financial Instruments Measured at Fair Value on a Non-recurring Basis
Impaired Loans		3,587
Carrying Value [Member] | U.S. Treasury [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS	1,998	2,004
Carrying Value [Member] | U.S. Government Sponsored Enterprises [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS	10,004	130,340
Carrying Value [Member] | SBA Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS	7,302	8,156
Carrying Value [Member] | US Government Agency and Sponsored Enterprises [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS
Carrying Value [Member] | Mortgage-Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS	403,189
Carrying Value [Member] | Privately Issued Residential Mortgage-Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS	2,277	2,947
Carrying Value [Member] | Obligations Issued by States and Political Subdivisions [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS	36,723	55,174
Carrying Value [Member] | Other Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS	2,176	2,253
Carrying Value [Member] | Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS	576	570
Carrying Value [Member] | Impaired Loans [Member]
Financial Instruments Measured at Fair Value on a Non-recurring Basis
Impaired Loans	1,747
Carrying Value [Member] | U.S. Government Agency and Sponsored Enterprises Mortgage-Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS		1,233,357
Fair Value Measurements, Level 1 Inputs [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS	286	228
Fair Value Measurements, Level 1 Inputs [Member] | US Government Agency and Sponsored Enterprises [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS
Fair Value Measurements, Level 1 Inputs [Member] | Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS	286	228
Fair Value Measurements, Level 2 Inputs [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS	427,362	1,380,791
Fair Value Measurements, Level 2 Inputs [Member] | U.S. Treasury [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS	1,998	2,004
Fair Value Measurements, Level 2 Inputs [Member] | U.S. Government Sponsored Enterprises [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS	10,004	130,340
Fair Value Measurements, Level 2 Inputs [Member] | SBA Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS	7,302	8,156
Fair Value Measurements, Level 2 Inputs [Member] | US Government Agency and Sponsored Enterprises [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS
Fair Value Measurements, Level 2 Inputs [Member] | Mortgage-Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS	403,189
Fair Value Measurements, Level 2 Inputs [Member] | Privately Issued Residential Mortgage-Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS	2,277	2,947
Fair Value Measurements, Level 2 Inputs [Member] | Obligations Issued by States and Political Subdivisions [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS	416	1,734
Fair Value Measurements, Level 2 Inputs [Member] | Other Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS	2,176	2,253
Fair Value Measurements, Level 2 Inputs [Member] | U.S. Government Agency and Sponsored Enterprises Mortgage-Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS		1,233,357
Fair Value Measurements, Level 3 Inputs [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS	36,597	53,782
Financial Instruments Measured at Fair Value on a Non-recurring Basis
Impaired Loans		3,587
Fair Value Measurements, Level 3 Inputs [Member] | US Government Agency and Sponsored Enterprises [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS
Fair Value Measurements, Level 3 Inputs [Member] | Obligations Issued by States and Political Subdivisions [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS	36,307	53,440
Fair Value Measurements, Level 3 Inputs [Member] | Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS	290	342
Fair Value Measurements, Level 3 Inputs [Member] | Impaired Loans [Member]
Financial Instruments Measured at Fair Value on a Non-recurring Basis
Impaired Loans	$ 1,747

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Other Borrowed Funds and Subordinated Debentures - Schedule of the Maturity Distribution of FHLBB Advances with the Weighted Average Interest Rates (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Federal Home Loan Bank Advances Maturities Summary [Abstract]
Within one year	$ 53,000	$ 46,000	$ 81,500
Over one year to two years	19,500	17,500	23,500
Over two years to three years	55,000	19,500	17,500
Over three years to five years	77,000	90,000	74,500
Over five years	50,500	22,000	47,000
Federal Home Loan Bank, Advances, Total	$ 255,000	$ 195,000	$ 244,000
Within one year, Weighted Average Rate	0.40%	1.86%	0.42%
Over one year to two years, Weighted Average Rate	2.42%	3.01%	3.34%
Over two years to three years, Weighted Average Rate	3.07%	2.42%	3.01%
Over three years to five years, Weighted Average Rate	3.05%	3.33%	2.90%
Over five years, Weighted Average Rate	3.39%	4.19%	4.38%
Weighted Average Rate, Total	2.52%	2.96%	2.41%

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Consolidated Statements of Income (USD $) In Thousands, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
INTEREST INCOME
Loans, taxable	$ 33,214	$ 34,983	$ 36,772
Loans, non-taxable	16,082	16,432	11,324
Securities available-for-sale, taxable	13,024	22,286	22,782
Securities available-for-sale, non-taxable	286	340	211
Federal Home Loan Bank of Boston dividends	59	77	46
Securities held-to-maturity	16,615	6,746	5,816
Federal funds sold, interest-bearing deposits in other banks and short-term investments	485	630	1,114
Total interest income	79,765	81,494	78,065
INTEREST EXPENSE
Savings and NOW deposits	2,585	2,250	2,539
Money market accounts	2,472	2,373	2,706
Time deposits	4,777	6,250	9,356
Securities sold under agreements to repurchase	361	367	379
Other borrowed funds and subordinated debentures	8,610	8,300	7,786
Total interest expense	18,805	19,540	22,766
Net interest income	60,960	61,954	55,299
Provision for loan losses (Note 6)	2,710	4,150	4,550
Net interest income after provision for loan losses	58,250	57,804	50,749
OTHER OPERATING INCOME
Service charges on deposit accounts	8,113	7,880	7,885
Lockbox fees	3,079	2,930	2,770
Brokerage commissions	257	364	441
Net gains on sales of securities	3,019	1,843	1,940
Net gains on sales of loans	1,564	297	660
Other income	2,583	2,551	2,544
Total other operating income	18,615	15,865	16,240
OPERATING EXPENSES
Salaries and employee benefits (Note 17)	35,244	32,943	29,630
Occupancy	5,000	4,695	4,411
Equipment	2,298	2,255	2,235
FDIC assessments	1,790	1,737	2,025
Other (Note 20)	11,480	11,608	10,441
Total operating expenses	55,812	53,238	48,742
Income before income taxes	21,053	20,431	18,247
Provision for income taxes (Note 16)	1,007	1,392	1,554
Net income	20,046	19,039	16,693
Class A Common Stock [Member]
OPERATING EXPENSES
Net income	15,698	14,877	13,023
SHARE DATA (Note 14)
Weighted average number of shares outstanding, basic	3,575,683	3,557,693	3,543,233
Weighted average number of shares outstanding, diluted	5,557,693	5,549,191	5,541,794
Basic earnings per share	$ 4.39	$ 4.18	$ 3.68
Diluted earnings per share	$ 3.61	$ 3.43	$ 3.01
Class B Common Stock [Member]
OPERATING EXPENSES
Net income	$ 4,348	$ 4,162	$ 3,670
SHARE DATA (Note 14)
Weighted average number of shares outstanding, basic	1,980,855	1,990,474	1,997,411
Weighted average number of shares outstanding, diluted	1,980,855	1,990,474	1,997,411
Basic earnings per share	$ 2.19	$ 2.09	$ 1.84
Diluted earnings per share	$ 2.19	$ 2.09	$ 1.84

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Investment Securities Held-to-Maturity

12 Months Ended

Dec. 31, 2013

Text Block [Abstract]

Investment Securities Held-to-Maturity

4.     Investment Securities Held-to-Maturity

	December 31, 2013								December 31, 2012
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
(dollars in thousands)
U.S. Government Sponsored Enterprise	$	291,779	$	185	$	5,043	$	286,921	$	17,747	$	19	$	8	$	17,758
U.S. Government Sponsored Enterprise Mortgage-Backed Securities		1,196,105		2,239		20,816		1,177,528		257,760		6,480		74		264,166
Total	$	1,487,884	$	2,424	$	25,859	$	1,464,449	$	275,507	$	6,499	$	82	$	281,924

Included in U.S. Government and Agency Securities are securities pledged to secure public deposits and repurchase agreements at fair value amounting to $732,144,000 and $149,366,000 at December 31, 2013, and 2012, respectively. Also included are securities pledged for borrowing at the Federal Home Loan Bank at fair value amounting to $510,060,000 and $103,617,000 at December 31, 2013, and 2012, respectively.

At December 31, 2013 and 2012, all mortgage-backed securities are obligations of U.S. Government Sponsored Enterprises. Government Sponsored Enterprises primarily refer to debt securities of Fannie Mae and Freddie Mac.

The following table shows the maturity distribution of the Company’s securities held-to-maturity at December 31, 2013.

	Amortized Cost		Fair Value
(dollars in thousands)
Within one year	$	5,689	$	5,672
After one but within five years		827,333		818,936
After five but within ten years		653,784		638,750
More than ten years		1,078		1,091
Total	$	1,487,884	$	1,464,449

The weighted average remaining life of investment securities held-to-maturity at December 31, 2013, was 5.2 years. Included in the weighted average remaining life calculation at December 31, 2013, were $224,663,000 of U.S. Government Sponsored Enterprises obligations that are callable at the discretion of the issuer. The actual maturities, which were used in the table above, of mortgage-backed securities, will differ from the contractual maturities due to the ability of the issuers to prepay underlying obligations.

The Company transferred $987,037,000 of securities with unrealized losses of $25,333,000 from available-for-sale to held-to-maturity during 2013.

As of December 31, 2013 and December 31, 2012, management concluded that the unrealized losses of its investment securities are temporary in nature since they are not related to the underlying credit quality of the issuers, and the Company does not intend to sell these debt securities and it is not more likely than not that it will be required to sell these debt securities before the anticipated recovery of their remaining amortized costs. In making its other-than-temporary impairment evaluation, the Company considered the fact that the principal and interest on these securities are from issuers that are investment grade.

The unrealized loss on U.S. Government Agency and Sponsored Enterprises Mortgage-Backed Securities related primarily to interest rates and not credit quality, and because the Company does not intend to sell any of these securities and it is not more likely than not that it will be required to sell these securities before the anticipated recovery of the remaining amortized cost, the Company does not consider these investments to be other-than-temporarily impaired at December 31, 2013 and December 31, 2012.

In evaluating the underlying credit quality of a security, management considers several factors such as the credit rating of the obligor and the issuer, if applicable. Internal reviews of issuer financial statements are performed as deemed necessary.

The following table shows the temporarily impaired securities of the Company’s held-to-maturity portfolio at December 31, 2013. This table shows the unrealized market loss of securities that have been in a continuous unrealized loss position for 12 months or less and a continuous loss position for 12 months and longer. There are 191 and 13 securities that are temporarily impaired for less than 12 months and for 12 months or longer, respectively, out of a total of 300 holdings at December 31, 2013.

	December 31, 2013
	Less Than 12 Months				12 Months or Longer				Total
Temporarily Impaired Investments	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
(dollars in thousands)
U.S. Government Sponsored Enterprises	$	232,535	$	5,043	$	—	$	—	$	232,535	$	5,043
U.S. Government Agency and Sponsored
Enterprise Mortgage-Backed Securities		931,180		18,654		80,362		2,162		1,011,542		20,816
Total temporarily impaired securities	$	1,163,715	$	23,697	$	80,362	$	2,162	$	1,244,077	$	25,859

The following table shows the temporarily impaired securities of the Company’s held-to-maturity portfolio at December 31, 2012. This table shows the unrealized market loss of securities that have been in a continuous unrealized loss position for 12 months or less and a continuous loss position for 12 months and longer. There are 3 and 1 securities that are temporarily impaired for less than 12 months and for 12 months or longer, respectively, out of a total of 96 holdings at December 31, 2012.

	December 31, 2012
	Less Than 12 Months				12 Months or Longer				Total
Temporarily Impaired Investments	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
(dollars in thousands)
U.S. Government Sponsored Enterprises	$	9,994	$	8	$	—	$	—	$	9,994	$	8
U.S. Government Agency and Sponsored
Enterprise Mortgage-Backed Securities		8,936		50		5,371		24		14,307		74
Total temporarily impaired securities	$	18,930	$	58	$	5,371	$	24	$	24,301	$	82

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Securities Available-for-Sale

12 Months Ended

Dec. 31, 2013

Text Block [Abstract]

Securities Available-for-Sale

3.     Securities Available-for-Sale

	December 31, 2013								December 31, 2012
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
(dollars in thousands)
U.S. Treasury	$	1,997	$	1	$	—	$	1,998	$	2,000	$	4	$	—	$	2,004
U.S. Government Sponsored Enterprises		9,995		9		—		10,004		130,048		360		68		130,340
SBA Backed Securities		7,270		32		—		7,302		8,043		113		—		8,156
U.S. Government Agency and Sponsored Enterprises Mortgage-Backed Securities		404,103		588		1,501		403,190		1,212,953		20,816		412		1,233,357
Privately Issued Residential Mortgage-Backed Securities		2,294		6		23		2,277		2,938		31		22		2,947
Obligations Issued by States and Political Subdivisions		37,578		15		870		36,723		55,855		41		722		55,174
Other Debt Securities		2,300		—		125		2,175		2,300		—		47		2,253
Equity Securities		406		170		—		576		458		112		—		570
Total	$	465,943	$	821	$	2,519	$	464,245	$	1,414,595	$	21,477	$	1,271	$	1,434,801

Included in U.S. Government Sponsored Enterprise Securities and U.S. Government Agency and Sponsored Enterprise Mortgage-Backed Securities are securities at fair value pledged to secure public deposits and repurchase agreements amounting to $368,137,000 and $665,028,000 at December 31, 2013 and 2012, respectively. Also included in securities available-for-sale at fair value are securities pledged for borrowing at the Federal Home Loan Bank amounting to $12,214,000 and $220,313,000 at December 31, 2013 and 2012, respectively. The Company realized gains on sales of securities of $3,019,000, $1,843,000 and $1,940,000 from the proceeds of sales of available-for-sale securities of $224,045,000, $294,881,000 and $75,615,000 for the years ended December 31, 2013, 2012, and 2011, respectively.

Debt securities of Government Sponsored Enterprises primarily refer to debt securities of Fannie Mae and Freddie Mac.

The following table shows the estimated maturity distribution of the Company’s securities available-for-sale at December 31, 2013.

	Amortized Cost		Fair Value
(dollars in thousands)
Within one year	$	36,942	$	36,964
After one but within five years		180,676		180,540
After five but within ten years		238,822		238,018
More than ten years		7,597		6,771
Nonmaturing		1,906		1,952
Total	$	465,943	$	464,245

The weighted average remaining life of investment securities available-for-sale at December 31, 2013, was 5.1 years. The contractual maturities, which were used in the table above, of mortgage-backed securities, will differ from the actual maturities due to the ability of the issuers to prepay underlying obligations. Also, $415,692,000 of the securities are floating rate or adjustable rate and reprice prior to maturity.

The Company transferred $987,037,000 of securities with unrealized losses of $25,333,000 from available-for-sale to held-to-maturity during 2013.

As of December 31, 2013 and December 31, 2012, management concluded that the unrealized losses of its investment securities are temporary in nature since they are not related to the underlying credit quality of the issuers, and the Company does not intend to sell these debt securities and it is not more likely than not that it will be required to sell these debt securities before the anticipated recovery of its remaining amortized cost. In making its other-than-temporary impairment evaluation, the Company considered the fact that the principal and interest on these securities are from issuers that are investment grade. The change in the unrealized losses on the state and municipal securities and the nonagency mortgage-backed securities was primarily caused by changes in credit spreads and liquidity issues in the marketplace.

The unrealized loss on U.S. Government Sponsored Enterprises and U.S. Government Sponsored Enterprises Mortgage Backed Securities related primarily to interest rates and not credit quality and because the Company has the ability and intent to hold these investments until recovery of fair value, which may be maturity. The Company does not consider these investments to be other-than-temporarily impaired at December 31, 2013 and December 31, 2012.

In evaluating the underlying credit quality of a security, management considers several factors such as the credit rating of the obligor and the issuer, if applicable. Internal reviews of issuer financial statements are performed as deemed necessary. In the case of privately issued mortgage-backed securities, the performance of the underlying loans is analyzed as deemed necessary to determine the estimated future cash flows of the securities. Factors considered include the level of subordination, current and estimated future default rates, current and estimated prepayment rates, estimated loss severity rates, geographic concentrations and origination dates of underlying loans. In the case of marketable equity securities, the severity of the unrealized loss, the length of time the unrealized loss has existed, and the issuer’s financial performance are considered.

The following table shows the temporarily impaired securities of the Company’s available-for-sale portfolio at December 31, 2013. This table shows the unrealized market loss of securities that have been in a continuous unrealized loss position for 12 months or less and a continuous loss position for 12 months and longer. There are 47 and 7 securities that are temporarily impaired for less than 12 months and for 12 months or longer, respectively, out of a total of 234 holdings at December 31, 2013.

	December 31, 2013
	Less Than 12 Months				12 Months or Longer				Total
Temporarily Impaired Investments	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
(dollars in thousands)
U.S. Government Sponsored Enterprise	$	—	$	—	$	—	$	—	$	—	$	—
U.S. Government Agency and Sponsored Enterprise Mortgage-Backed Securities		289,709		1,352		24,557		149		314,266		1,501
Privately Issued Residential Mortgage-Backed Securities		1,486		23		—		—		1,486		23
Obligations Issued by States and Political Subdivisions		—		—		3,820		870		3,820		870
Other Debt Securities		—		—		1,376		125		1,376		125
Total temporarily impaired securities	$	291,195	$	1,375	$	29,753	$	1,144	$	320,948	$	2,519

The following table shows the temporarily impaired securities of the Company’s available-for-sale portfolio at December 31, 2012. This table shows the unrealized market loss of securities that have been in a continuous unrealized loss position for 12 months or less and a continuous loss position for 12 months and longer. There are 20 and 7 securities that are temporarily impaired for less than 12 months and for 12 months or longer, respectively, out of a total of 458 holdings at December 31, 2012.

	December 31, 2012
	Less Than 12 Months				12 Months or Longer				Total
Temporarily Impaired Investments	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
(dollars in thousands)
U.S. Government Sponsored Enterprise	$	34,967	$	68	$	—	$	—	$	34,967	$	68
U.S. Government Agency and Sponsored Enterprise Mortgage-Backed Securities		93,006		383		10,169		29		103,175		412
Privately Issued Residential Mortgage-Backed Securities		—		—		1,863		22		1,863		22
Obligations Issued by States and Political Subdivisions		—		—		3,963		722		3,963		722
Other Debt Securities		—		—		1,453		47		1,453		47
Total temporarily impaired securities	$	127,973	$	451	$	17,448	$	820	$	145,421	$	1,271

XML

Stockholders' Equity Dividends

12 Months Ended

Dec. 31, 2013

Equity [Abstract]

Stockholders' Equity Dividends

15.     Stockholders’ Equity DIVIDENDS

Holders of the Class A common stock may not vote in the election of directors but may vote as a class to approve certain extraordinary corporate transactions. Holders of Class B common stock may vote in the election of directors. Class A common stockholders are entitled to receive dividends per share equal to at least 200% per share of that paid, if any, on each share of Class B common stock. Class A common stock is publicly traded. Class B common stock is not publicly traded; however, it can be converted on a per share basis to Class A common stock at any time at the option of the holder. Dividend payments by the Company are dependent in part on the dividends it receives from the Bank, which are subject to certain regulatory restrictions.

STOCK REPURCHASE PLAN

During 2013, the Board of Directors of the Company approved a reauthorization of the stock repurchase program. Under the program, the Company is reauthorized to repurchase up to 300,000, or less than 9%, of Century Bancorp Class A Common Stock outstanding. This vote supersedes the previous program voted by the Board of Directors during 2012, which also authorized the Company to repurchase up to 300,000, or less than 9%, of Century Bancorp Class A Common Stock. The stock buyback is authorized to take place from time-to-time, subject to prevailing market conditions. The purchases are made on the open market and are funded from available cash.

STOCK OPTION PLAN

During 2000 and 2004, common stockholders of the Company approved stock option plans (the “Option Plans”) that provide for granting of options for not more than 150,000 shares of Class A common stock per plan. Under the Option Plans, all officers and key employees of the Company are eligible to receive nonqualified and incentive stock options to purchase shares of Class A common stock. The Option Plans are administered by the Compensation Committee of the Board of Directors, whose members are ineligible to participate in the Option Plans. Based on management’s recommendations, the Committee submits its recommendations to the Board of Directors as to persons to whom options are to be granted, the number of shares granted to each, the option price (which may not be less than 85% of the fair market value for nonqualified stock options, or the fair market value for incentive stock options, of the shares on the date of grant) and the time period over which the options are exercisable (not more than ten years from the date of grant). There were 20,375 options exercisable at December 31, 2013.

Stock option activity under the plan is as follows:

	December 31, 2013					December 31, 2012					December 31, 2011
	Amount			Weighted Average Exercise Price		Amount			Weighted Average Exercise Price		Amount			Weighted Average Exercise Price
Shares under option:
Outstanding at beginning of year		23,350		$	31.17		36,062		$	28.90		38,712		$	28.36
Forfeited		(1,350	)		26.68		(450	)		22.50		(200	)		15.06
Exercised		(1,625	)		26.76		(12,262	)		24.82		(2,450	)		21.44
Outstanding at end of year		20,375		$	31.82		23,350		$	31.17		36,062		$	28.90
Exercisable at end of year		20,375		$	31.82		23,350		$	31.17		36,062		$	28.90
Available to be granted at end of year		224,884					223,534					223,084

At December 31, 2013, 2012 and 2011, the options outstanding have exercise prices between $15.06 and $31.83, and a weighted average remaining contractual life of one year for 2013 and two years for 2012 and 2011. The weighted average intrinsic value of options exercised for the period ended December 31, 2013, was $6.49 per share with an aggregate value of $10,548. The average intrinsic value of options exercisable at December 31, 2013, 2012 and 2011 had an aggregate value of $29,136, $41,549 and $49,145, respectively.

CAPITAL RATIOS

The Bank and the Company are subject to various regulatory requirements administered by federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Bank and Company’s financial statements. Under capital adequacy guidelines and regulatory framework for prompt corrective action, the Bank and Company must meet specific capital guidelines that involve quantitative measures of the Bank and Company’s assets and liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The Bank and Company’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.

Quantitative measures established by regulation to ensure capital adequacy require the Bank and the Company to maintain minimum amounts and ratios (set forth in the table below) of total and Tier 1 capital (as defined in the regulation) to risk-weighted assets (as defined) and Tier 1 capital (as defined) to average assets (as defined). Management believes, as of December 31, 2013, that the Bank and the Company meet all capital adequacy requirements to which they are subject.

As of December 31, 2013, the most recent notification from the FDIC categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Bank must maintain minimum total risk-based, Tier risk-based, and Tier 1 leverage ratios as set forth in the table below. There are no conditions or events since that notification that management believes would cause a change in the Bank’s categorization.

The Bank’s actual capital amounts and ratios are presented in the following table:

	Actual Amount		Ratio			For  Capital Adequacy Purposes					To Be Well Capitalized  Under Prompt Corrective Action Provisions
						Amount		Ratio			Amount		Ratio
As of December 31, 2013
Total Capital (to Risk-Weighted Assets)	$	230,038		13.91	%	$	132,338		8.00	%	$	165,422		10.00	%
Tier 1 Capital (to Risk-Weighted Assets)		209,360		12.66	%		66,169		4.00	%		99,253		6.00	%
Tier 1 Capital (to 4th Qtr. Average Assets)		209,360		6.00	%		139,467		4.00	%		174,334		5.00	%
As of December 31, 2012
Total Capital (to Risk-Weighted Assets)	$	206,464		14.15	%	$	116,726		8.00	%	$	145,907		10.00	%
Tier 1 Capital (to Risk-Weighted Assets)		188,226		12.90	%		58,363		4.00	%		87,544		6.00	%
Tier 1 Capital (to 4th Qtr. Average Assets)		188,226		6.11	%		123,202		4.00	%		154,002		5.00	%

The Company’s actual capital amounts and ratios are presented in the following table:

						For  Capital Adequacy Purposes					To Be Well Capitalized  Under Prompt Corrective Action Provisions
	Actual Amount		Ratio			Amount		Ratio			Amount		Ratio
As of December 31, 2013
Total Capital (to Risk-Weighted Assets)	$	247,761		14.92	%	$	132,870		8.00	%	$	166,088		10.00	%
Tier 1 Capital (to Risk-Weighted Assets)		227,000		13.67	%		66,435		4.00	%		99,653		6.00	%
Tier 1 Capital (to 4th Qtr. Average Assets)		227,000		6.50	%		139,769		4.00	%		174,711		5.00	%
As of December 31, 2012
Total Capital (to Risk-Weighted Assets)	$	227,945		15.59	%	$	116,976		8.00	%	$	146,220		10.00	%
Tier 1 Capital (to Risk-Weighted Assets)		209,668		14.34	%		58,488		4.00	%		87,732		6.00	%
Tier 1 Capital (to 4th Qtr. Average Assets)		209,668		6.80	%		123,377		4.00	%		154,221		5.00	%

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Securities Sold under Agreements to Repurchase

12 Months Ended

Dec. 31, 2013

Banking And Thrift [Abstract]

Securities Sold under Agreements to Repurchase

11.     Securities Sold Under Agreements to Repurchase

The following is a summary of securities sold under agreements to repurchase as of December 31,

	2013			2012			2011
(dollars in thousands)
Amount outstanding at December 31	$	214,440		$	191,390		$	143,320
Weighted average rate at December 31		0.18	%		0.17	%		0.24	%
Maximum amount outstanding at any month end	$	214,440		$	213,730		$	152,267
Daily average balance outstanding during the year	$	203,888		$	174,624		$	129,137
Weighted average rate during the year		0.18	%		0.21	%		0.29	%

Amounts outstanding at December 31, 2013, 2012 and 2011 carried maturity dates of the next business day. U.S. Government Sponsored Enterprise securities with a total amortized cost of $216,747,000, $187,995,000 and $140,891,000 were pledged as collateral and held by custodians to secure the agreements at December 31, 2013, 2012 and 2011, respectively. The approximate fair value of the collateral at those dates was $213,350,000, $191,704,000, and $143,212,000, respectively.

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Deposits - Summary of Remaining Maturities or Re-pricing of Time Deposits (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Maturities Of Time Deposits [Abstract]
Within one year	$ 248,758	$ 299,456
Over one year to two years	41,533	67,918
Over two years to three years	48,357	19,834
Over three years to five years	43,576	32,775
Time Deposits, Total	$ 382,224	$ 419,983
Within one year, Percent	65.00%	71.00%
Over one year to two years, Percent	11.00%	16.00%
Over two years to three years, Percent	13.00%	5.00%
Over three years to five years, Percent	11.00%	8.00%
Total, Percent	100.00%	100.00%

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Bank Premises and Equipment

12 Months Ended

Dec. 31, 2013

Property Plant And Equipment [Abstract]

Bank Premises and Equipment

7.     Bank Premises and Equipment

December 31,	2013			2012			Estimated Useful Life
(dollars in thousands)
Land	$	3,478		$	3,478			—
Bank premises		19,235			18,353			30-39 years
Furniture and equipment		31,965			31,319			3-10 years
Leasehold improvements		10,010			9,930			30-39 years or lease term
		64,688			63,080
Accumulated depreciation and amortization		(41,288	)		(39,181	)
Total	$	23,400		$	23,899

The Company and its subsidiaries are obligated under a number of non-cancelable operating leases for premises and equipment expiring in various years through 2026. Total lease expense approximated $2,094,000, $2,055,000 and $2,007,000 for the years ended December 31, 2013, 2012 and 2011, respectively. Rental income approximated $299,000, $329,000 and $455,000 in 2013, 2012 and 2011, respectively.

Future minimum rental commitments for non-cancelable operating leases with initial or remaining terms of one year or more at December 31, 2013, were as follows:

Year		Amount
(dollars in thousands)
	2014	$	2,070
	2015		1,824
	2016		1,675
	2017		1,235
	2018		1,035
	Thereafter		2,816
		$	10,655

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Securities Available-for-Sale - Continuous Unrealized Loss Position for 12 Months or Less and 12 Months or Longer (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Schedule of Available-for-sale Securities [Line Items]
Less Than 12 Months, Fair Value	$ 291,195	$ 127,973
Less Than 12 Months, Unrealized Losses	1,375	451
12 Months or Longer, Fair Value	29,753	17,448
12 Months or Longer, Unrealized Losses	1,144	820
Total, Fair Value	320,948	145,421
Total, Unrealized Losses	2,519	1,271
U.S. Government Sponsored Enterprises [Member]
Schedule of Available-for-sale Securities [Line Items]
Less Than 12 Months, Fair Value		34,967
Less Than 12 Months, Unrealized Losses		68
12 Months or Longer, Fair Value
12 Months or Longer, Unrealized Losses
Total, Fair Value		34,967
Total, Unrealized Losses		68
U.S. Government Agency and Sponsored Enterprises Mortgage-Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Less Than 12 Months, Fair Value	289,709	93,006
Less Than 12 Months, Unrealized Losses	1,352	383
12 Months or Longer, Fair Value	24,557	10,169
12 Months or Longer, Unrealized Losses	149	29
Total, Fair Value	314,266	103,175
Total, Unrealized Losses	1,501	412
Privately Issued Residential Mortgage-Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Less Than 12 Months, Fair Value	1,486
Less Than 12 Months, Unrealized Losses	23
12 Months or Longer, Fair Value		1,863
12 Months or Longer, Unrealized Losses		22
Total, Fair Value	1,486	1,863
Total, Unrealized Losses	23	22
Obligations Issued by States and Political Subdivisions [Member]
Schedule of Available-for-sale Securities [Line Items]
12 Months or Longer, Fair Value	3,820	3,963
12 Months or Longer, Unrealized Losses	870	722
Total, Fair Value	3,820	3,963
Total, Unrealized Losses	870	722
Other Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
12 Months or Longer, Fair Value	1,376	1,453
12 Months or Longer, Unrealized Losses	125	47
Total, Fair Value	1,376	1,453
Total, Unrealized Losses	$ 125	$ 47

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Other Operating Expenses - Summary of Other Operating Expenses (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Other Income And Expenses [Abstract]
Marketing	$ 1,749	$ 1,853	$ 1,575
Software maintenance/amortization	1,417	1,256	951
Legal and audit	1,281	1,179	1,140
Contributions	673	1,074	479
Processing services	812	921	865
Consulting	874	890	796
Postage and delivery	939	877	773
Supplies	848	849	868
Telephone	719	750	742
Directors' fees	373	330	309
Insurance	295	279	275
Core deposit intangible amortization		120	388
Other	1,500	1,230	1,280
Total	$ 11,480	$ 11,608	$ 10,441

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Loans

12 Months Ended

Dec. 31, 2013

Debt Disclosure [Abstract]

Loans

5.     Loans

The majority of the Bank’s lending activities are conducted in Massachusetts. The Bank originates construction, commercial and residential real estate loans, commercial and industrial loans, consumer, home equity and other loans for its portfolio.

The following summary shows the composition of the loan portfolio at the dates indicated.

December 31,	2013		2012
(dollars in thousands)
Construction and land development	$	33,058	$	38,618
Commercial and industrial		92,402		88,475
Commercial real estate		713,327		576,465
Residential real estate		286,041		281,857
Consumer		8,824		6,823
Home equity		130,277		118,923
Overdrafts		834		627
Total	$	1,264,763	$	1,111,788

At December 31, 2013, and December 31, 2012, loans were carried net of discounts of $454,000 and $498,000, respectively. Net deferred fees included in loans at December 31, 2013, and December 31, 2012, were $174,000 and $369,000, respectively.

The Company was servicing mortgage loans sold to others without recourse of approximately $109,301,000 and $26,786,000 at December 31, 2013, and December 31, 2012, respectively. The Company had no residential real estate loans held for sale at December 31, 2013 and had $9,378,000 at December 31, 2012.

As of December 31, 2013 and 2012, the Company’s recorded investment in impaired loans was $7,788,000 and $5,925,000, respectively. If an impaired loan is placed on nonaccrual, the loan may be returned to an accrual status when principal and interest payments are not delinquent and the risk characteristics have improved to the extent that there no longer exists a concern as to the collectibility of principal and interest. At December 31, 2013, there were $6,723,000 of impaired loans with a specific reserve of $1,019,000. At December 31, 2012, there were $5,223,000 of impaired loans with a specific reserve of $1,732,000.

Loans are designated as troubled debt restructures when a concession is made on a credit as a result of financial difficulties of the borrower. Typically, such concessions consist of a reduction in interest rate to a below-market rate, taking into account the credit quality of the note, or a deferment of payments, principal or interest, which materially alters the Bank’s position or significantly extends the note’s maturity date, such that the present value of cash flows to be received is materially less than those contractually established at the loan’s origination. Restructured loans are included in the impaired loan category.

The composition of nonaccrual loans and impaired loans is as follows:

December 31,	2013		2012		2011
(dollars in thousands)
Loans on nonaccrual	$	2,549	$	4,471	$	5,827
Loans 90 days past due and still accruing		—		—		18
Impaired loans on nonaccrual included above		1,819		2,878		3,468
Total recorded investment in impaired loans		7,788		5,925		8,102
Average recorded investment of impaired loans		6,776		7,043		10,284
Accruing troubled debt restructures		5,969		3,048		4,634
Interest income not recorded on nonaccrual loans according to their original terms		711		753		846
Interest income on nonaccrual loans actually recorded		—		—		—
Interest income recognized on impaired loans		161		180		155

Directors and officers of the Company and their associates are customers of, and have other transactions with, the Company in the normal course of business. All loans and commitments included in such transactions were made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with other persons and do not involve more than normal risk of collection or present other unfavorable features.

The following table shows the aggregate amount of loans to directors and officers of the Company and their associates during 2013.

Balance at December 31, 2012	Additions		Repayments and Deletions		Balance at December 31, 2013
(dollars in thousands)
$4,663	$	310	$	269	$	4,704

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Allowance for Loan Losses

12 Months Ended

Dec. 31, 2013

Receivables [Abstract]

Allowance for Loan Losses

6.     Allowance for Loan Losses

The Company maintains an allowance for loan losses in an amount determined by management on the basis of the character of the loans, loan performance, financial condition of borrowers, the value of collateral securing loans and other relevant factors. The following table summarizes the changes in the Company’s allowance for loan losses for the years indicated.

An analysis of the allowance for loan losses for each of the three years ending December 31, 2013, 2012 and 2011 is as follows:

	2013			2012			2011
(dollars in thousands)
Allowance for loan losses, beginning of year	$	19,197		$	16,574		$	14,053
Loans charged-off		(1,813	)		(2,301	)		(2,824	)
Recoveries on loans previously charged-off		847			774			795
Net charge-offs		(966	)		(1,527	)		(2,029	)
Provision charged to expense		2,710			4,150			4,550
Allowance for loan losses, end of year	$	20,941		$	19,197		$	16,574

ALLOWANCE FOR LOAN LOSSES AND AMOUNT OF INVESTMENTS IN LOANS

Further information pertaining to the allowance for loan losses at December 31, 2013 follows:

	Construction and Land Development			Commercial and Industrial			Commercial Real Estate		Residential Real Estate		Consumer			Home Equity		Unallocated		Total
(dollars in thousands)
Allowance for Loan Losses:
Balance at December 31, 2012	$	3,041		$	3,118		$	9,065	$	1,994	$	333		$	886	$	760	$	19,197
Charge-offs		(1,000	)		(234	)		—		—		(579	)		—		—		(1,813	)
Recoveries		—			389			19		11		427			1		—		847
EAProvision		133			(284	)		2,134		1		251			72		403		2,710
Ending balance at December 31, 2013	$	2,174		$	2,989		$	11,218	$	2,006	$	432		$	959	$	1,163	$	20,941
Amount of allowance for loan losses for loans deemed to be impaired	$	12		$	367		$	417	$	129	$	—		$	94	$	—	$	1,019
Amount of allowance for loan losses for loans not deemed to be impaired	$	2,162		$	2,622		$	10,801	$	1,877	$	432		$	865	$	1,163	$	19,922
Loans:
Ending balance	$	33,058		$	92,402		$	713,327	$	286,041	$	9,658		$	130,277	$	—	$	1,264,763
Loans deemed to be impaired	$	608		$	1,367		$	4,520	$	1,199	$	—		$	94	$	—	$	7,788
Loans not deemed to be impaired	$	32,450		$	91,035		$	708,807	$	284,842	$	9,658		$	130,183	$	—	$	1,256,975

Further information pertaining to the allowance for loan losses at December 31, 2012 follows:

	Construction and Land Development		Commercial and Industrial			Commercial Real Estate		Residential Real Estate			Consumer			Home Equity			Unallocated			Total
(dollars in thousands)
Allowance for Loan Losses:
Balance at December 31, 2011	$	2,893	$	3,139		$	6,566	$	1,886		$	356		$	704		$	1,030		$	16,574
Charge-offs		—		(1,253	)		—		(192	)		(697	)		(159	)		—			(2,301	)
Recoveries		—		307			9		17			422			19			—			774
Provision		148		925			2,490		283			252			322			(270	)		4,150
Ending balance at December 31, 2012	$	3,041	$	3,118		$	9,065	$	1,994		$	333		$	886		$	760		$	19,197
Amount of allowance for loan losses or loans deemed to be impaired	$	1,000	$	104		$	415	$	117		$	—		$	96		$	—		$	1,732
Amount of allowance for loan losses for loans not deemed to be impaired	$	2,041	$	3,014		$	8,650	$	1,877		$	333		$	790		$	760		$	17,465
Loans:
Ending balance	$	38,618	$	88,475		$	576,465	$	281,857		$	7,450		$	118,923		$	—		$	1,111,788
Loans deemed to be impaired	$	1,500	$	1,282		$	2,281	$	766		$	—		$	96		$	—		$	5,925
Loans not deemed to be impaired	$	37,118	$	87,193		$	574,184	$	281,091		$	7,450		$	118,827		$	—		$	1,105,863

CREDIT QUALITY INFORMATION

The Company utilizes a six-grade internal loan rating system for commercial real estate, construction and commercial loans as follows:

Loans rated 1-3 (Pass) — Loans in this category are considered “pass” rated loans with low to average risk.

Loans rated 4 (Monitor) — These loans represent classified loans that management is closely monitoring for credit quality. These loans have had or may have minor credit quality deterioration as of December 31, 2013.

Loans rated 5 (Substandard) — Substandard loans represent classified loans that management is closely monitoring for credit quality. These loans have had more significant credit quality deterioration as of December 31, 2013.

Loans rated 6 (Doubtful) — Doubtful loans represent classified loans that management is closely monitoring for credit quality. These loans had more significant credit quality deterioration as of December 31, 2013, and are doubtful for full collection.

Impaired — Impaired loans represent classified loans that management is closely monitoring for credit quality. A loan is classified as impaired when it is probable that the Company will be unable to collect all amounts due.

The following table presents the Company’s loans by risk rating at December 31, 2013.

	Construction and Land Development		Commercial and Industrial		Commercial Real Estate
(dollars in thousands)
Grade:
1-3 (Pass)	$	25,138	$	90,563	$	707,461
4 (Monitor)		7,312		472		1,346
5 (Substandard)		—		—		—
6 (Doubtful)		—		—		—
Impaired		608		1,367		4,520
Total	$	33,058	$	92,402	$	713,327

The following table presents the Company’s loans by risk rating at December 31, 2012.

	Construction and Land Development		Commercial and Industrial		Commercial Real Estate
(dollars in thousands)
Grade:
1-3 (Pass)	$	29,719	$	86,587	$	569,760
4 (Monitor)		7,399		606		4,424
5 (Substandard)		—		—		—
6 (Doubtful)		—		—		—
Impaired		1,500		1,282		2,281
Total	$	38,618	$	88,475	$	576,465

The Company utilized payment performance as credit quality indicators for residential real state, consumer and overdrafts, and the home equity portfolio. The indicators are depicted in the table “aging of past-due loans,” below.

AGING OF PAST-DUE LOANS

Further information pertaining to the allowance for loan losses at December 31, 2013 follows:

	Accruing 30-89 Days Past Due		Non Accrual		Accruing Greater Than 90 Days		Total Past Due		Current Loans		Total
(dollars in thousands)
Construction and land development	$	—	$	500	$	—	$	500	$	32,558	$	33,058
Commercial and industrial		112		706		—		818		91,584		92,402
Commercial real estate		1,496		306		—		1,802		711,525		713,327
Residential real estate		2,232		1,034		—		3,266		282,775		286,041
Consumer and overdrafts		11		3		—		14		9,644		9,658
Home equity		1,710		—		—		1,710		128,567		130,277
Total	$	5,561	$	2,549	$	—	$	8,110	$	1,256,653	$	1,264,763

Further information pertaining to the allowance for loan losses at December 31, 2012 follows:

	Accruing 30-89 Days Past Due		Non Accrual		Accruing Greater Than 90 Days		Total Past Due		Current Loans		Total
(dollars in thousands)
Construction and land development	$	—	$	1,500	$	—	$	1,500	$	37,118	$	38,618
Commercial and industrial		1,256		676		—		1,932		86,543		88,475
Commercial real estate		3,450		674		—		4,124		572,341		576,465
Residential real estate		864		1,597		—		2,461		279,396		281,857
Consumer and overdrafts		32		24		—		56		7,394		7,450
Home equity		1,088		—		—		1,088		117,835		118,923
Total	$	6,690	$	4,471	$	—	$	11,161	$	1,100,627	$	1,111,788

IMPAIRED LOANS

A loan is impaired when, based on current information and events, it is probable that a creditor will be unable to collect all amounts due according to the contractual terms of the loan agreement. When a loan is impaired, the Company measures impairment based on the present value of expected future cash flows discounted at the loan’s effective interest rate, except that as a practical expedient, the Company measures impairment based on a loan’s observable market price or the fair value of the collateral if the loan is collateral dependent. Loans are charged-off when management believes that the collectibility of the loan’s principal is not probable. The specific factors that management considers in making the determination that the collectibility of the loan’s principal is not probable include; the delinquency status of the loan, the fair value of the collateral, if secured, and the financial strength of the borrower and/or guarantors. For collateral dependent loans, the amount of the recorded investment in a loan that exceeds the fair value of the collateral is charged-off against the allowance for loan losses in lieu of an allocation of a specific allowance amount when such an amount has been identified definitively as uncollectible. The Company’s policy for recognizing interest income on impaired loans is contained within Note 1 of the “Notes to Consolidated Financial Statements.”

The following is information pertaining to impaired loans at December 31, 2013:

	Carrying Value		Unpaid Balance Principal		Required Reserve		Average Carrying Value Recognized		Interest Income
(dollars in thousands)
With no required reserve recorded:
Construction and land development	$	500	$	3,292	$	—	$	—	$	—
Commercial and industrial		238		268		—		361		1
Commercial real estate		82		82		—		132		—
Residential real estate		246		259		—		169		—
Consumer		—		—		—		—		—
Home equity		—		—		—		—		—
Total	$	1,066	$	3,901	$	—	$	662	$	1
With required reserve recorded:
Construction and land development	$	108	$	108	$	12	$	1,371	$	1
Commercial and industrial		1,129		1,371		367		902		37
Commercial real estate		4,438		4,527		417		2,868		120
Residential real estate		953		1,035		129		878		2
Consumer		—		—		—		—		—
Home equity		94		94		94		95		—
Total	$	6,722	$	7,135	$	1,019	$	6,114	$	160
Total
Construction and land development	$	608	$	3,400	$	12	$	1,371	$	1
Commercial and industrial		1,367		1,639		367		1,263		38
Commercial real estate		4,520		4,609		417		3,000		120
Residential real estate		1,199		1,294		129		1,047		2
Consumer		—		—		—		—		—
Home equity		94		94		94		95		—
Total	$	7,788	$	11,036	$	1,019	$	6,776	$	161

The following is information pertaining to impaired loans at December 31, 2012:

	Carrying Value		Unpaid Balance Principal		Required Reserve		Average Carrying Value		Interest Income Recognized
(dollars in thousands)
With no required reserve recorded:
Construction and land development	$	—	$	—	$	—	$	346	$	—
Commercial and industrial		503		994		—		425		1
Commercial real estate		169		199		—		176		—
Residential real estate		30		31		—		124		—
Consumer		—		—		—		—		—
Home equity		—		—		—		—		—
Total	$	702	$	1,224	$	—	$	1,071	$	1
With required reserve recorded:
Construction and land development	$	1,500	$	3,292	$	1,000	$	1,154	$	—
Commercial and industrial		779		995		104		1,317		40
Commercial real estate		2,112		2,158		415		2,817		138
Residential real estate		736		736		117		640		1
Consumer		—		—		—		—		—
Home equity		96		96		96		44		—
Total	$	5,223	$	7,277	$	1,732	$	5,972	$	179
Total
Construction and land development	$	1,500	$	3,292	$	1,000	$	1,500	$	—
Commercial and industrial		1,282		1,989		104		1,742		41
Commercial real estate		2,281		2,357		415		2,993		138
Residential real estate		766		767		117		764		1
Consumer		—		—		—		—		—
Home equity		96		96		96		44		—
Total	$	5,925	$	8,501	$	1,732	$	7,043	$	180

Troubled Debt Restructurings are identified as a modification in which a concession was granted to a customer who was having financial difficulties. This concession may be below market rate, longer amortization/term, or a lower payment amount. The present value calculation of the modification did not result in an increase in the allowance for these loans beyond any previously established allocations.

The following is information pertaining to troubled debt restructurings occurring during the year ended December 31, 2013:

	Number of Contracts		Pre-modification Outstanding Recorded Investment		Post-modification Outstanding Recorded Investment
(dollars in thousands)
Construction and land development		1	$	108	$	108
Commercial and industrial		2		67		64
Commercial real estate		3		2,376		2,356
Residential real estate		1		285		162
Total		7	$	2,836	$	2,690

There was one commercial and industrial troubled debt restructuring, that subsequently defaulted amounting to $6,000 during 2013. The loans were modified for 2013, by reducing interest rates as well as extending term on the commercial and industrial loan. The financial impact of the modifications for performing commercial and industrial loans were $808 reduction in principal and $606 reduction in interest payments for the year ended December 31, 2013. The financial impact of the modifications for performing commercial real estate loans were $5,246 increase in principal and $23,227 reduction in interest payments for the year ended December 31, 2013. The financial impact of the modifications for performing construction and land development loans were $1,515 reduction in principal and $1,098 reduction in interest payments for the year ended December 31, 2013. The financial impact of the modifications for performing residential real estate loans were $4,704 reduction in principal and $4,104 reduction in interest payments for the year ended December 31, 2013.

The following is information pertaining to troubled debt restructurings occurring during the year ended December 31, 2012:

	Number of Contracts		Pre-modification Outstanding Recorded Investment		Post-modification Outstanding Recorded  Investment
(dollars in thousands)
Construction and land development		1	$	750	$	736
Commercial and industrial		1		6		6
Commercial real estate		1		98		96
Total		3	$	854	$	838

There were no troubled debt restructurings, that subsequently defaulted, during 2012. The loans were modified during 2012, for the commercial and industrial, and residential real estate loans, by reducing interest rates as well as extending the terms of the loans. The financial impact of the modification for the performing commercial and industrial loan was a $6,000 reduction in principal payments for the year ended December 31, 2012. The financial impact of the modification for performing residential real estate loan was an $8,000 reduction in interest payments for the year ended December 31, 2012.

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Goodwill and Identifiable Intangible Assets

12 Months Ended

Dec. 31, 2013

Goodwill And Intangible Assets Disclosure [Abstract]

Goodwill and Identifiable Intangible Assets

8.     Goodwill and Identifiable Intangible Assets

At December 31, 2013 and 2012, the Company concluded that it is not more likely than not that fair value of the reporting unit is less than its carrying value, and goodwill is not considered to be impaired.

During the full year of 2011, the Company’s Class A common stock traded close to or above book value per share. Accordingly, at December 31, 2011, management measured for impairment utilizing the fair value of the reporting unit based on the recent stock price of the Company.

The changes in goodwill and identifiable intangible assets for the years ended December 31, 2013 and 2012 are shown in the table below.

Carrying Amount of Goodwill and Intangibles	Goodwill		Core Deposit Intangibles			Mortgage Servicing Rights			Total
(dollars in thousands)
Balance at December 31, 2011	$	2,714	$	120		$	123		$	2,957
Additions		—		—			48			48
Amortization Expense		—		(120	)		(34	)		(154	)
Balance at December 31, 2012	$	2,714	$	—			137		$	2,851
Additions		—		—			653			653
Amortization Expense		—		—			(87	)		(87	)
Balance at December 31, 2013	$	2,714	$	—			703		$	3,417

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Investment Securities Held-to-Maturity - Unrealized Market Loss of Securities (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Schedule of Held-to-maturity Securities [Line Items]
Less Than 12 Months, Fair Value	$ 1,163,715	$ 18,930
Less Than 12 Months, Unrealized Losses	23,697	58
12 Months or Longer, Fair Value	80,362	5,371
12 Months or Longer, Unrealized Losses	2,162	24
Total, Fair Value	1,244,077	24,301
Total, Unrealized Losses	25,859	82
U.S. Government Sponsored Enterprises [Member]
Schedule of Held-to-maturity Securities [Line Items]
Less Than 12 Months, Fair Value	232,535	9,994
Less Than 12 Months, Unrealized Losses	5,043	8
Total, Fair Value	232,535	9,994
Total, Unrealized Losses	5,043	8
U.S. Government Agency and Sponsored Enterprises Mortgage-Backed Securities [Member]
Schedule of Held-to-maturity Securities [Line Items]
Less Than 12 Months, Fair Value	931,180	8,936
Less Than 12 Months, Unrealized Losses	18,654	50
12 Months or Longer, Fair Value	80,362	5,371
12 Months or Longer, Unrealized Losses	2,162	24
Total, Fair Value	1,011,542	14,307
Total, Unrealized Losses	$ 20,816	$ 74

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Deposits - Additional Information (Detail) (USD $)	Dec. 31, 2013	Dec. 31, 2012
Time Deposits [Abstract]
Time deposits of $100,000 or more	$ 259,665,000	$ 287,048,000

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Loans - Additional Information (Detail) (USD $)	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Debt Disclosure [Abstract]
Net of discount on loans	$ 454,000	$ 498,000
Net deferred fee	174,000	369,000
Mortgage loans sold to others	109,301,000	26,786,000
Loans held for sale	0	9,378,000
Total recorded investment in impaired loans	7,788,000	5,925,000	8,102,000
Impaired loans	6,723,000	5,223,000
Specific reserve	$ 1,019,000	$ 1,732,000

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Income Taxes - Gross Deferred Income Tax Assets and Gross Deferred Income Tax Liabilities (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Deferred income tax assets:
Allowance for loan losses	$ 9,199	$ 8,103
Unrealized losses on securities transferred to held-to-maturity	8,590
Deferred compensation	6,515	5,643
Pension and SERP liability	4,880	8,621
AMT credit	3,164	1,908
Unrealized losses (gains) on securities available-for-sale	652	(7,875)
Acquisition premium	438	541
Nonaccrual interest	136	151
Depreciation	109	(36)
Investments write down	26	26
Deferred gain		11
Other	198	235
Gross deferred income tax asset	33,907	17,328
Deferred income tax liabilities:
Limited partnerships	(2,769)	(2,722)
Mortgage servicing rights	(281)	(55)
Gross deferred income tax liability	(3,050)	(2,777)
Deferred income tax asset net	$ 30,857	$ 14,551

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Investment Securities Held-to-Maturity - Company's Securities Held-to-Maturity (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Investments Debt And Equity Securities [Abstract]
Within one year, Amortized Cost	$ 5,689
After one but within five years, Amortized Cost	827,333
After five but within ten years, Amortized Cost	653,784
More than ten years, Amortized Cost	1,078
Total, Amortized Cost	1,487,884	275,507
Within one year, Fair Value	5,672
After one but within five years, Fair Value	818,936
After five but within ten years, Fair Value	638,750
More than ten years, Fair Value	1,091
Estimated Fair Value	$ 1,464,449	$ 281,924

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Earnings Per Share ("EPS") - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Minimum [Member]
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Percentage of dividends paid	200.00%
Class A Common Stock [Member]
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Dilutive effect of stock options, increment in shares	1,155	1,024	1,150
Class A Common Stock [Member] | Minimum [Member]
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Percentage of dividends paid	200.00%

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Securities Available-for-Sale (Tables)

12 Months Ended

Dec. 31, 2013

Text Block [Abstract]

Summary of Securities Available-for-Sale

	December 31, 2013								December 31, 2012
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
(dollars in thousands)
U.S. Treasury	$	1,997	$	1	$	—	$	1,998	$	2,000	$	4	$	—	$	2,004
U.S. Government Sponsored Enterprises		9,995		9		—		10,004		130,048		360		68		130,340
SBA Backed Securities		7,270		32		—		7,302		8,043		113		—		8,156
U.S. Government Agency and Sponsored Enterprises Mortgage-Backed Securities		404,103		588		1,501		403,190		1,212,953		20,816		412		1,233,357
Privately Issued Residential Mortgage-Backed Securities		2,294		6		23		2,277		2,938		31		22		2,947
Obligations Issued by States and Political Subdivisions		37,578		15		870		36,723		55,855		41		722		55,174
Other Debt Securities		2,300		—		125		2,175		2,300		—		47		2,253
Equity Securities		406		170		—		576		458		112		—		570
Total	$	465,943	$	821	$	2,519	$	464,245	$	1,414,595	$	21,477	$	1,271	$	1,434,801

Estimated Maturity Distribution of Securities Available-for-Sale

The following table shows the estimated maturity distribution of the Company’s securities available-for-sale at December 31, 2013.

	Amortized Cost		Fair Value
(dollars in thousands)
Within one year	$	36,942	$	36,964
After one but within five years		180,676		180,540
After five but within ten years		238,822		238,018
More than ten years		7,597		6,771
Nonmaturing		1,906		1,952
Total	$	465,943	$	464,245

Continuous Unrealized Loss Position for 12 Months or Less and 12 Months or Longer

The following table shows the temporarily impaired securities of the Company’s available-for-sale portfolio at December 31, 2013. This table shows the unrealized market loss of securities that have been in a continuous unrealized loss position for 12 months or less and a continuous loss position for 12 months and longer. There are 47 and 7 securities that are temporarily impaired for less than 12 months and for 12 months or longer, respectively, out of a total of 234 holdings at December 31, 2013.

	December 31, 2013
	Less Than 12 Months				12 Months or Longer				Total
Temporarily Impaired Investments	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
(dollars in thousands)
U.S. Government Sponsored Enterprise	$	—	$	—	$	—	$	—	$	—	$	—
U.S. Government Agency and Sponsored Enterprise Mortgage-Backed Securities		289,709		1,352		24,557		149		314,266		1,501
Privately Issued Residential Mortgage-Backed Securities		1,486		23		—		—		1,486		23
Obligations Issued by States and Political Subdivisions		—		—		3,820		870		3,820		870
Other Debt Securities		—		—		1,376		125		1,376		125
Total temporarily impaired securities	$	291,195	$	1,375	$	29,753	$	1,144	$	320,948	$	2,519

The following table shows the temporarily impaired securities of the Company’s available-for-sale portfolio at December 31, 2012. This table shows the unrealized market loss of securities that have been in a continuous unrealized loss position for 12 months or less and a continuous loss position for 12 months and longer. There are 20 and 7 securities that are temporarily impaired for less than 12 months and for 12 months or longer, respectively, out of a total of 458 holdings at December 31, 2012.

	December 31, 2012
	Less Than 12 Months				12 Months or Longer				Total
Temporarily Impaired Investments	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
(dollars in thousands)
U.S. Government Sponsored Enterprise	$	34,967	$	68	$	—	$	—	$	34,967	$	68
U.S. Government Agency and Sponsored Enterprise Mortgage-Backed Securities		93,006		383		10,169		29		103,175		412
Privately Issued Residential Mortgage-Backed Securities		—		—		1,863		22		1,863		22
Obligations Issued by States and Political Subdivisions		—		—		3,963		722		3,963		722
Other Debt Securities		—		—		1,453		47		1,453		47
Total temporarily impaired securities	$	127,973	$	451	$	17,448	$	820	$	145,421	$	1,271

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Fair Values of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2013

Text Block [Abstract]

Carrying Amounts and Fair Values of Company's Financial Instruments

The following presents (in thousands) the carrying amount, estimated fair value, and placement in the fair value hierarchy of the Company’s financial instruments as of December 31, 2013 and December 31, 2012. This table excludes financial instruments for which the carrying amount approximates fair value. Financial assets for which the fair value approximates carrying value include cash and cash equivalents, short-term investments, FHLBB stock and accrued interest receivable. Financial liabilities for which the fair value approximates carrying value include non-maturity deposits, short-term borrowings and accrued interest payable.

	Carrying Amount		Estimated Fair Value		Level 1 Inputs		Fair Value Measurements Level 2 Inputs		Level 3 Inputs
(dollars in thousands)
December 31, 2013
Financial assets:
Securities held-to-maturity	$	1,487,884	$	1,464,449	$	—	$	1,464,449	$	—
Loans(1)		1,243,822		1,214,192		—		—		1,214,192
Financial liabilities:
Time deposits		382,224		386,742		—		386,742		—
Other borrowed funds		255,144		254,736		—		254,736		—
Subordinated debentures		36,083		39,503		—		—		39,503
December 31, 2012
Financial assets:
Securities held-to-maturity	$	275,507	$	281,924	$	—	$	281,924	$	—
Loans(1)		1,092,591		1,124,716		—		—		1,124,716
Financial liabilities:
Time deposits		419,983		424,253		—		424,253		—
Other borrowed funds		195,144		205,481		—		205,481		—
Subordinated debentures		36,083		43,423		—		—		43,423

(1) Comprised of loans (including collateral dependent impaired loans), net of deferred loan costs and the allowance for loan losses.

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Reclassifications Out of Accumulated Other Comprehensive Income

12 Months Ended

Dec. 31, 2013

Text Block [Abstract]

Reclassifications Out of Accumulated Other Comprehensive Income

13.     Reclassifications Out of Accumulated Other Comprehensive Income(a)

	Amount Reclassified from Accumulated Other Comprehensive Income
Details about Accumulated Other Comprehensive Income Components	Year ended December 31, 2013(a)			Year ended December 31, 2012(a)			Affected line item in the Statement Where Net Income is Presented
Unrealized gains and losses on available-for-sale securities	$	3,019		$	1,843		Net gains on sales of investments
		(1,179	)		(728	)	Provision for income taxes
	$	1,840		$	1,115		Net income
Accretion of unrealized losses transferred	$	3,077		$	—		Securities held-to-maturity
		(1,191	)		—		Provision for income taxes
	$	1,886		$	—		Net Income
Amortization of defined benefit pension items
Prior-service costs	$	(10	)	$	(10	)	Salaries and employee benefits(b)
Actuarial gains (losses)		(1,144	)		(1,071	)	Salaries and employee benefits(b)
Total before tax		(1,154	)		(1,081	)	Income before taxes
Tax (expense) or benefit		460			432		Provision for income taxes
Net of tax	$	(694	)	$	(649	)	Net income
Total reclassifications for the period	$	3,032		$	466		Net income

^(a)  Amounts in parentheses indicate debits to profit/loss.

^(b)  These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see employee benefits footnote (Note 17) for additional details).

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Parent Company Financial Statements - Statements of Cash Flows of Parent Company (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 20,046	$ 19,039	$ 16,693
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	5,358	6,445	5,558
Increase in other assets	(5,693)	(3,113)	(4,456)
Net cash provided by operating activities	31,938	19,426	18,826
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from the exercise of stock options	43	304	52
Cash dividends paid	(2,191)	(2,186)	(2,180)
Net cash provided by financing activities	351,668	317,678	277,228
Net (decrease) increase in cash and cash equivalents	(57,605)	(55,483)	19,214
Cash and cash equivalents at beginning of year	152,283	207,766	188,552
Cash and cash equivalents at end of year	94,678	152,283	207,766
Century Bancorp, Inc. [Member]
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	20,046	19,039	16,693
Adjustments to reconcile net income to net cash provided by operating activities:
Undistributed income of subsidiary	(21,701)	(20,684)	(18,281)
Depreciation and amortization	12	12	12
Increase in other assets	(3,500)	(416)	(182)
Net cash provided by operating activities	(5,143)	(2,049)	(1,758)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from the exercise of stock options	43	304	53
Cash dividends paid	(2,191)	(2,186)	(2,180)
Net cash provided by financing activities	(2,148)	(1,882)	(2,127)
Net (decrease) increase in cash and cash equivalents	(7,291)	(3,931)	(3,885)
Cash and cash equivalents at beginning of year	19,536	23,467	27,352
Cash and cash equivalents at end of year	$ 12,245	$ 19,536	$ 23,467

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Commitments and Contingencies

12 Months Ended

Dec. 31, 2013

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

18.     Commitments and Contingencies

A number of legal claims against the Company arising in the normal course of business were outstanding at December 31, 2013. Management, after reviewing these claims with legal counsel, is of the opinion that their resolution will not have a material adverse effect on the Company’s consolidated financial position or results of operations.

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Stockholders' Equity Dividends - Summary of Stock Option Activity under Stock Option Plan (Detail) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Shares under option:
Outstanding at beginning of year, Amount	23,350	36,062	38,712
Forfeited, Amount	(1,350)	(450)	(200)
Exercised, Amount	(1,625)	(12,262)	(2,450)
Outstanding at end of year, Amount	20,375	23,350	36,062
Exercisable at end of year, Amount	20,375	23,350	36,062
Available to be granted at end of year, Amount	224,884	223,534	223,084
Outstanding at beginning of year, Weighted Average Exercise Price	$ 31.17	$ 28.90	$ 28.36
Forfeited, Weighted Average Exercise Price	$ 26.68	$ 22.50	$ 15.06
Exercised, Weighted Average Exercise Price	$ 26.76	$ 24.82	$ 21.44
Outstanding at end of year, Weighted Average Exercise Price	$ 31.82	$ 31.17	$ 28.90
Exercisable at end of year, Weighted Average Exercise Price	$ 31.82	$ 31.17	$ 28.90

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Financial Instruments with Off-Balance-Sheet Risk (Tables)

12 Months Ended

Dec. 31, 2013

Risks And Uncertainties [Abstract]

Summary of Financial Instruments with Off-Balance-Sheet Risk

Financial instruments with off-balance-sheet risk at December 31 are as follows:

Contract or Notional Amount

	2013		2012
(dollars in thousands)
Financial instruments whose contract amount represents credit risk:
Commitments to originate 1–4 family mortgages	$	3,373	$	13,580
Standby and commercial letters of credit		7,930		8,411
Unused lines of credit		249,941		217,246
Unadvanced portions of construction loans		7,026		17,609
Unadvanced portions of other loans		17,750		4,872

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Employee Benefits - Changes in Level 3 Securities (Detail) (Fair Value Measurements, Level 3 Inputs [Member], USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Fair Value Measurements, Level 3 Inputs [Member]
Defined Benefit Plan Disclosure [Line Items]
Balance at beginning of year	$ 1,691	$ 1,522
Purchases	55	152
Actual return - assets still being held	510	17
Balance at end of year	$ 2,256	$ 1,691

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Deposits (Tables)

12 Months Ended

Dec. 31, 2013

Banking And Thrift [Abstract]

Summary of Remaining Maturities or Re-pricing of Time Deposits

The following is a summary of remaining maturities or re-pricing of time deposits as of December 31,

	2013		Percent			2012		Percent
(dollars in thousands)
Within one year	$	248,758		65	%	$	299,456		71	%
Over one year to two years		41,533		11	%		67,918		16	%
Over two years to three years		48,357		13	%		19,834		5	%
Over three years to five years		43,576		11	%		32,775		8	%
Total	$	382,224		100	%	$	419,983		100	%

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Employee Benefits - Summary of Defined Pension Plan and Supplemental Insurance Retirement Plan (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Net Periodic Benefit Cost [Member]
Defined Benefit Plan Disclosure [Line Items]
Prior service cost	$ (475)	$ (485)
Net actuarial loss	(11,262)	(20,619)
Total	(11,737)	(21,104)
Defined Benefit Pension Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Prior service cost	(104)	(104)
Net actuarial loss	(3,734)	1,401
Total	29,879	31,910	28,784
Defined Benefit Pension Plan [Member] | Net Periodic Benefit Cost [Member]
Defined Benefit Plan Disclosure [Line Items]
Prior service cost	516	620
Net actuarial loss	(3,361)	(10,317)
Total	(2,845)	(9,697)
Supplemental Insurance/ Retirement Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Prior service cost	114	114
Net actuarial loss	(1,916)	3,482
Total	25,502	25,835	21,097
Supplemental Insurance/ Retirement Plan [Member] | Net Periodic Benefit Cost [Member]
Defined Benefit Plan Disclosure [Line Items]
Prior service cost	(991)	(1,105)
Net actuarial loss	(7,901)	(10,302)
Total	$ (8,892)	$ (11,407)

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Consolidated Statements of Comprehensive Income (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Statement Of Income And Comprehensive Income [Abstract]
Net income	$ 20,046	$ 19,039	$ 16,693
Unrealized (losses) gains on securities:
Unrealized holding (losses) gains arising during period	(25,909)	5,854	6,666
Less: reclassification adjustment for gains included in net income	(3,019)	(1,843)	(1,940)
Total unrealized (losses) gains on securities	(28,928)	4,011	4,726
Accretion of net unrealized losses transferred during period	1,886
Pension liability adjustment:
Net gain (loss)	4,932	(2,488)	(4,047)
Amortization of prior service cost and loss included in net periodic benefit cost	694	649	380
Total pension liability adjustment	5,626	(1,839)	(3,667)
Other comprehensive (loss) income	(21,416)	2,172	1,059
Comprehensive income (loss)	$ (1,370)	$ 21,211	$ 17,752

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Other Borrowed Funds and Subordinated Debentures - Summary of Other Borrowed Funds and Subordinated Debentures (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Subordinated Debentures Activity For Year [Abstract]
Amount outstanding at December 31	$ 291,227	$ 231,227	$ 280,226
Weighted average rate at December 31	3.04%	3.54%	2.85%
Maximum amount outstanding at any month end	291,227	277,226	280,226
Daily average balance outstanding during the year	$ 231,032	$ 217,542	$ 202,209
Weighted average rate during the year	3.73%	3.82%	3.85%

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Cash and Due from Banks

12 Months Ended

Dec. 31, 2013

Cash And Cash Equivalents [Abstract]

Cash and Due from Banks

2.     Cash and Due from Banks

The Company is required to maintain a portion of its cash and due from banks as a reserve balance under the Federal Reserve Act. Such reserve is calculated based upon deposit levels and amounted to $0 at December 31, 2013, and $9,608,000 at December 31, 2012.

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Securities Available-for-Sale - Additional Information (Detail) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Schedule of Available-for-sale Securities [Line Items]
Realized gross gain	$ 3,019,000	$ 1,843,000	$ 1,940,000
Proceeds from sales of securities available-for-sale	224,045,000	294,881,000	75,615,000
Weighted average remaining life of investment securities available-for-sale	5 years 1 month 6 days
Securities at floating rate or adjustable rate	415,692,000
Securities held-to-maturity at their fair value	987,037,000
Available-for-sale securities transferred to held-to-maturity securities unrealized loss	25,333,000
U.S. Government Agency and Sponsored Enterprises Mortgage-Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Securities at fair value pledged to secure public deposits and repurchase agreements	368,137,000	665,028,000
Federal Home Loan Bank of Boston [Member]
Schedule of Available-for-sale Securities [Line Items]
Securities available-for-sale are securities pledged for borrowing	$ 12,214,000	$ 220,313,000
Securities AFS [Member]
Schedule of Available-for-sale Securities [Line Items]
Number of securities, temporarily impaired for less than 12 months	47	20
Number of securities, temporarily impaired for 12 months or longer	7	7
Number of securities, temporarily impaired, total	234	458

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Fair Value Measurements - Assets Measured at Fair Value (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Securities AFS [Member]
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Fair Value	$ 36,597	$ 53,782
Valuation Technique	Discounted cash flow	Discounted cash flow
Unobservable Input	Discount rate	Discount rate
Impaired Loans [Member]
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Fair Value	$ 1,747	$ 3,587
Valuation Technique	Appraisal of collateral	Appraisal of collateral
Unobservable Input	Appraisal adjustments	Appraisal adjustments
Minimum [Member] | Securities AFS [Member]
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Unobservable Input Value or Range	0.00%	0.00%
Minimum [Member] | Impaired Loans [Member]
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Unobservable Input Value or Range	0.00%	0.00%
Maximum [Member] | Securities AFS [Member]
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Unobservable Input Value or Range	1.00%	1.00%
Maximum [Member] | Impaired Loans [Member]
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Unobservable Input Value or Range	25.00%	25.00%

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Employee Benefits - Components of Net Periodic Benefit Cost (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Defined Benefit Pension Plan [Member]
Change projected in benefit obligation
Benefit obligation at beginning of year	$ 31,910	$ 28,784
Service cost	1,196	1,097
Interest cost	1,257	1,295
Actuarial (gain)/loss	(3,734)	1,401
Benefits paid	(750)	(667)
Projected benefit obligation at end of year	29,879	31,910
Change in plan assets
Balance at beginning of year	23,983	20,517
Actual (loss) return on plan assets	4,619	2,333
Employer contributions	4,470	1,800
Benefits paid	(750)	(667)
Balance at end of year	32,322	23,983
(Unfunded) Funded status	2,443	(7,927)
Accumulated benefit obligation	29,747	31,773
Weighted-average assumptions as of December 31
Discount rate - Liability	5.00%	4.00%
Discount rate - Expense	4.00%	4.50%
Expected return on plan assets	8.00%	8.00%
Rate of compensation increase	4.00%	4.00%
Components of net periodic benefit cost
Service cost	1,196	1,097
Interest cost	1,257	1,295
Expected return on plan assets	(1,880)	(1,641)
Recognized prior service cost	(104)	(104)
Recognized net losses	630	735
Net periodic cost	1,099	1,382
Other changes in plan assets and benefit obligations recognized in other comprehensive income
Amortization of prior service cost	104	104
Net (gain) loss	(6,956)	(25)
Total recognized in other comprehensive income	(6,852)	79
Total recognized in net periodic benefit cost and other comprehensive income	(5,753)	1,461
Supplemental Insurance/ Retirement Plan [Member]
Change projected in benefit obligation
Benefit obligation at beginning of year	25,835	21,097
Service cost	1,554	1,425
Interest cost	1,072	923
Actuarial (gain)/loss	(1,916)	3,482
Benefits paid	(1,043)	(1,092)
Projected benefit obligation at end of year	25,502	25,835
Change in plan assets
Benefits paid	(1,043)	(1,092)
(Unfunded) Funded status	(25,502)	(25,835)
Accumulated benefit obligation	22,278	22,181
Weighted-average assumptions as of December 31
Discount rate - Liability	5.00%	4.00%
Discount rate - Expense	4.00%	4.50%
Rate of compensation increase	4.00%	4.00%
Components of net periodic benefit cost
Service cost	1,554	1,425
Interest cost	1,072	923
Recognized prior service cost	114	114
Recognized net losses	514	336
Net periodic cost	3,254	2,798
Other changes in plan assets and benefit obligations recognized in other comprehensive income
Amortization of prior service cost	(114)	(114)
Net (gain) loss	(2,401)	3,098
Total recognized in other comprehensive income	(2,515)	2,984
Total recognized in net periodic benefit cost and other comprehensive income	$ 739	$ 5,782

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Allowance for Loan Losses - Summary of Changes in Allowance for Loan Losses (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Receivables [Abstract]
Allowance for loan losses, beginning of year				$ 19,197				$ 16,574	$ 19,197	$ 16,574	$ 14,053
Loans charged-off									(1,813)	(2,301)	(2,824)
Recoveries on loans previously charged-off									847	774	795
Net charge-offs									(966)	(1,527)	(2,029)
Provision charged to expense	460	750	750	750	900	1,250	900	1,100	2,710	4,150	4,550
Allowance for loan losses, end of year	$ 20,941				$ 19,197				$ 20,941	$ 19,197	$ 16,574

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Financial Instruments with Off-Balance-Sheet Risk

12 Months Ended

Dec. 31, 2013

Risks And Uncertainties [Abstract]

Financial Instruments with Off-Balance-Sheet Risk

19.     Financial Instruments with Off-Balance-Sheet Risk

The Company is party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers.

These financial instruments primarily include commitments to originate and sell loans, standby letters of credit, unused lines of credit and unadvanced portions of construction loans. The instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheet. The contract or notional amounts of those instruments reflect the extent of involvement the Company has in these particular classes of financial instruments.

The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for loan commitments, standby letters of credit and unadvanced portions of construction loans is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments. Financial instruments with off-balance-sheet risk at December 31 are as follows:

Contract or Notional Amount

	2013		2012
(dollars in thousands)
Financial instruments whose contract amount represents credit risk:
Commitments to originate 1–4 family mortgages	$	3,373	$	13,580
Standby and commercial letters of credit		7,930		8,411
Unused lines of credit		249,941		217,246
Unadvanced portions of construction loans		7,026		17,609
Unadvanced portions of other loans		17,750		4,872

Commitments to originate loans, unadvanced portions of construction loans, unused lines of credit and unused letters of credit are generally agreements to lend to a customer, provided there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the borrower.

Standby letters of credit are conditional commitments issued by the Company to guarantee the performance by a customer to a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers.

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Allowance for Loan Losses - Troubled Debt Restructurings (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013 Contract	Dec. 31, 2012 Contract
Financing Receivable, Allowance for Credit Losses [Line Items]
Number of Contracts	7	3
Pre-modification Outstanding Recorded Investment	$ 2,836	$ 854
Post-modification Outstanding Recorded Investment	2,690	838
Construction and Land Development [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Number of Contracts	1	1
Pre-modification Outstanding Recorded Investment	108	750
Post-modification Outstanding Recorded Investment	108	736
Commercial and Industrial [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Number of Contracts	2	1
Pre-modification Outstanding Recorded Investment	67	6
Post-modification Outstanding Recorded Investment	64	6
Commercial Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Number of Contracts	3	1
Pre-modification Outstanding Recorded Investment	2,376	98
Post-modification Outstanding Recorded Investment	2,356	96
Residential Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Number of Contracts	1
Pre-modification Outstanding Recorded Investment	285
Post-modification Outstanding Recorded Investment	$ 162

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Bank Premises and Equipment (Tables)

12 Months Ended

Dec. 31, 2013

Property Plant And Equipment [Abstract]

Schedule of Bank Premises and Equipment

December 31,	2013			2012			Estimated Useful Life
(dollars in thousands)
Land	$	3,478		$	3,478			—
Bank premises		19,235			18,353			30-39 years
Furniture and equipment		31,965			31,319			3-10 years
Leasehold improvements		10,010			9,930			30-39 years or lease term
		64,688			63,080
Accumulated depreciation and amortization		(41,288	)		(39,181	)
Total	$	23,400		$	23,899

Summary of Future Minimum Rental Commitments for Non-Cancelable Operating Leases

Future minimum rental commitments for non-cancelable operating leases with initial or remaining terms of one year or more at December 31, 2013, were as follows:

Year		Amount
(dollars in thousands)
	2014	$	2,070
	2015		1,824
	2016		1,675
	2017		1,235
	2018		1,035
	Thereafter		2,816
		$	10,655

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Other Borrowed Funds and Subordinated Debentures

12 Months Ended

Dec. 31, 2013

Banking And Thrift [Abstract]

Other Borrowed Funds and Subordinated Debentures

12.     Other Borrowed Funds and Subordinated Debentures

The following is a summary of other borrowed funds and subordinated debentures as of December 31,

	2013			2012			2011
(dollars in thousands)
Amount outstanding at December 31	$	291,227		$	231,227		$	280,226
Weighted average rate at December 31		3.04	%		3.54	%		2.85	%
Maximum amount outstanding at any month end	$	291,227		$	277,226		$	280,226
Daily average balance outstanding during the year	$	231,032		$	217,542		$	202,209
Weighted average rate during the year		3.73	%		3.82	%		3.85	%

FEDERAL HOME LOAN BANK BORROWINGS

Federal Home Loan Bank of Boston (“FHLBB”) borrowings are collateralized by a blanket pledge agreement on the Bank’s FHLBB stock, certain qualified investment securities, deposits at the FHLBB and residential mortgages held in the Bank’s portfolios. The Bank’s remaining term borrowing capacity at the FHLBB at December 31, 2013, was approximately $423,143,000. In addition, the Bank has a $14,500,000 line of credit with the FHLBB. A schedule of the maturity distribution of FHLBB advances with the weighted average interest rates is as follows:

	2013					2012					2011
December 31,	Amount		Weighted Average Rate			Amount		Weighted Average Rate			Amount		Weighted Average Rate
(dollars in thousands)
Within one year	$	53,000		0.40	%	$	46,000		1.86	%	$	81,500		0.42	%
Over one year to two years		19,500		2.42	%		17,500		3.01	%		23,500		3.34	%
Over two years to three years		55,000		3.07	%		19,500		2.42	%		17,500		3.01	%
Over three years to five years		77,000		3.05	%		90,000		3.33	%		74,500		2.90	%
Over five years		50,500		3.39	%		22,000		4.19	%		47,000		4.38	%
Total	$	255,000		2.52	%	$	195,000		2.96	%	$	244,000		2.41	%

Included in the table above are $35,000,000 of FHLBB advances for each of the years at December 31, 2013, 2012 and 2011, respectively, that are putable at the discretion of FHLBB. These put dates were not utilized in the table above.

During 2013, the Company restructured $14,500,000 of FHLBB advances. Prior to restructure, the weighted average rate on these advances was 3.16% and the weighted average remaining maturity was 12 months. Subsequent to restructure, the weighted average rate was 3.24% and the weighted average maturity was 68 months. The restructures were accounted for as modifications.

During 2011, the Company restructured $18,000,000 of FHLBB advances. Prior to restructure, the weighted average rate on these advances was 4.45% and the weighted average remaining maturity was 25 months. Subsequent to restructure, the weighted average rate was 3.50% and the weighted average maturity was 60 months. The restructures were accounted for as modifications.

SUBORDINATED DEBENTURES

Subordinated debentures totaled $36,083,000 at December 31, 2013 and 2012. In May 1998, the Company consummated the sale of a trust preferred securities offering, in which it issued $29,639,000 of subordinated debt securities due 2029 to its newly formed unconsolidated subsidiary Century Bancorp Capital Trust. Century Bancorp Capital Trust then issued 2,875,000 shares of Cumulative Trust Preferred Securities with a liquidation value of $10 per share. These securities pay dividends at an annualized rate of 8.30%. The Company redeemed through its subsidiary, Century Bancorp Capital Trust, its 8.30% Trust Preferred Securities on January 10, 2005.

In December 2004, the Company consummated the sale of a trust preferred securities offering, in which it issued $36,083,000 of subordinated debt securities due 2034 to its newly formed unconsolidated subsidiary Century Bancorp Capital Trust II.

Century Bancorp Capital Trust II then issued 35,000 shares of Cumulative Trust Preferred Securities with a liquidation value of $1,000 per share. These securities pay dividends at an annualized rate of 6.65% for the first ten years and then convert to the three-month LIBOR rate plus 1.87% for the remaining 20 years.

OTHER BORROWED FUNDS

There were no overnight federal funds purchased at December 31, 2013 and 2012.

The Bank also has an outstanding loan in the amount of $144,000 at December 31, 2013 and 2012, borrowed against the cash value of a whole life insurance policy for a key executive of the Bank.

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Income Taxes - Summary of Differences between Income Tax Expense at the Statutory Federal Income Tax Rate and Total Income Tax Expense (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Income Tax Disclosure [Abstract]
Federal income tax expense at statutory rates									$ 7,158	$ 6,946	$ 6,204
State income tax, net of federal income tax benefit									34	29	209
Insurance income									(380)	(396)	(396)
Effect of tax-exempt interest									(5,348)	(4,628)	(3,801)
Net tax credit									(572)	(633)	(683)
Other									115	74	21
Provision for income taxes	$ 116	$ 308	$ 295	$ 288	$ 139	$ 685	$ 255	$ 313	$ 1,007	$ 1,392	$ 1,554
Effective tax rate									4.80%	6.80%	8.50%