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MEDFORD, Mass.--([ BUSINESS WIRE ])--Century Bancorp, Inc. (NASDAQ:CNBKA) ([ www.centurybank.com ]) (athe Companya) today announced record net income of $16,693,000 for the year ended December 31, 2011, or $3.01 per share diluted, an increase of 23.0% compared to net income of $13,574,000, or $2.45 per share diluted, for the same period a year ago. Total assets increased 12.3% from $2.4 billion at December 31, 2010 to $2.7 billion at December 31, 2011. For the quarter ended December 31, 2011, net income totaled $4,189,000, or $0.76 per share diluted, an increase of 6.8% compared to net income of $3,924,000, or $0.71 per share diluted, for the same period a year ago.

Net interest income totaled $55.3 million for the year ended December 31, 2011 compared to $51.8 million for 2011. The 6.8% increase in net interest income for the period is due to a 10.7% increase in the average balances of earning assets, combined with a similar increase in average deposits, offset slightly by a decrease in the net interest margin from 2.52% on a fully taxable equivalent basis in 2010 to 2.48% on the same basis for 2011.

The provision for loan losses decreased by $1.0 million from $5.6 million for the year ended December 31, 2010 to $4.6 million, for the year ended December 31, 2011, primarily as a result of decreased provisions related to nonaccrual loans. The Company capitalized on favorable market conditions for the fourth quarter and year ended December 31, 2011 and realized net gains on sales of investments of $695,000 and $1.9 million, respectively, as compared to $824,000 and $1.9 million for the same periods in 2010. Other income increased for the fourth quarter of 2011 compared to the same period last year primarily as a result of a sale of mortgage loans. FDIC assessments decreased, for the year, primarily as a result of a decrease in the assessment rate, offset somewhat by an increase in assets. The Companyas effective tax rate increased slightly from 8.4% in 2010 to 8.5% in 2011 primarily as a result of an increase in taxable income.

At December 31, 2011, total equity was $160.6 million compared to $145.0 million at December 31, 2010. The Companyas equity increased primarily as a result of earnings and other comprehensive income, net of taxes, offset somewhat by dividends paid. The Companyas leverage ratio stood at 7.12% at December 31, 2011, compared to 7.35% at December 31, 2010. This decline in the leverage ratio is due to an increase in assets, offset by an increase in stockholdersa equity. Book value as of December 31, 2011 was $28.98 per share compared to $26.18 at December 31, 2010.

The Companyas allowance for loan losses was $16.6 million or 1.68% of loans outstanding at December 31, 2011, compared to $14.1 million, or 1.55% of loans outstanding at December 31, 2010. Non-performing assets totaled $7.0 million at December 31, 2011, compared to $8.1 million at December 31, 2010.

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 February 15, 2012 to stockholders of record on February 1, 2012.

The Company, through its subsidiary bank, Century Bank and Trust Company, a state chartered full service commercial bank, operating twenty-four full-service branches in the Greater Boston area, including our newest branch in Newton Centre, 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 aforward-looking statementsa 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.