Century Bancorp, Inc. (NASDAQ:CNBKA) (www.century-bank.com) (“the Company”) today announced net income of $1,876,000, or $0.34 per share diluted, for the second quarter ended June 30, 2008, an increase of 15.6% when compared to net income of $1,623,000, or $0.29 per share diluted, for the second quarter ended June 30, 2007. For the first six months of 2008, net income totaled $3,676,000, or $0.66 per share diluted, an increase of 39.9% when compared to net income of $2,627,000, or $0.47 per share diluted, for the same period a year ago.

Net interest income totaled $20.9 million for the first six months of 2008 as compared to $19.0 million for the same period in 2007. The 10.0% increase in net interest income for the period is due to an increase of thirty-three basis points in the net interest margin, from 2.52% on a fully taxable equivalent basis in 2007 to 2.85% on the same basis for 2008. Included in interest income for the six months ended June 30, 2008 is $52,000 of prepayment fees collected on loans compared to $418,000 for the same period a year ago, a decrease of $366,000.

At June 30, 2008, total equity was $120.6 million compared to $118.8 million at December 31, 2007. The Company’s equity increased as a result of earnings offset by an increase in accumulated other comprehensive loss, net of taxes and dividends paid. The Company’s leverage ratio stood at 9.22% at June 30, 2008, compared to 9.12% at June 30, 2007. Book value as of June 30, 2008 was $21.76 per share compared to $19.78 at June 30, 2007.

The Company’s allowance for loan losses was $9.5 million or 1.24% of loans outstanding at the end of the second quarter of 2008, compared to $9.3 million, or 1.29% of loans outstanding at June 30, 2007 and $9.6 million, or 1.33% of loans outstanding at December 31, 2007. Non-performing assets totaled $3.8 million at June 30, 2008, compared to $1.8 million at December 31, 2007 and $1.5 million at June 30, 2007. Non-performing assets increased primarily as a result of an increase in consumer mortgages and small business loans on non-accrual.

The Company's Board of Directors voted a regular quarterly dividend of 12.00 cents ($0.12) per share on the Company's Class A common stock, and 6.00 cents ($0.06) per share on the Company's Class B common stock. The dividends were declared payable August 15, 2008 to stockholders of record on August 1, 2008.

The Company, through its subsidiary bank, Century Bank and Trust Company, a state chartered full service commercial bank, operating twenty-two full-service branches in the Greater Boston area, offers a full range of Business, Personal and Institutional Services.

Century Bank and Trust Company is a member of the FDIC and is an Equal Housing Lender.

This press release contains certain “forward-looking statements” with respect to the financial condition, results of operations and business of the Company. Actual results may differ from those contemplated by these statements. The Company wishes to caution readers not to place undue reliance on any forward-looking statements. The Company disclaims any intent or obligation to update publicly any such forward-looking statements, whether in response to new information, future events or otherwise.