About Century Bancorp

Century Bancorp, Inc. operates as the bank holding company for Century Bank and Trust Company that provides various services to commercial enterprises, state and local governments and agencies, non-profit organizations and individuals. The company operates 27 banking offices in 20 cities and towns in Massachusetts, ranging from Braintree in the south to Andover in the north. Its customers consist primarily of small and medium-sized businesses and retail customers in these communities and surrounding areas, as well as local governments and large healthcare and higher education institutions throughout Massachusetts, New Hampshire, Rhode Island, Connecticut, New York, Virginia, Washington DC, and Pennsylvania. 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 lock box collection services, cash management services and account reconciliation services, as well as 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 securities brokerage business. The company has municipal cash management client engagements in Massachusetts, New Hampshire and Rhode Island comprised of approximately 302 government entities. Loans The company’s lending activities are conducted principally in Massachusetts, New Hampshire, Rhode Island, Connecticut, New York, Virginia, Washington DC, and Pennsylvania. It grants single-family and multi-family residential loans, commercial and commercial real estate loans, municipal loans, and various 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. Majority loans granted by the company are secured by real estate collateral. The company’s commercial and industrial (C&I) loan customers include major healthcare and higher education institutions. C&I loan customers also include various small and middle-market established businesses involved in manufacturing, distribution, retailing and services. Majority of clients are privately owned with markets that range from local to national in scope. Majority of the loans to this segment are secured by liens on corporate assets and the personal guarantees of the principals. Commercial real estate loans are extended to educational institutions, hospitals and other non-profit organizations. Loans are extended in amounts approximately a maximum of 80% of appraised value and for terms between three and thirty years. Also included in commercial real estate loans are loans extended to finance various manufacturing, warehouse, light industrial, office, retail and residential properties in the company’s market area, which includes Massachusetts, New Hampshire, and Rhode Island. Municipal loans customers include loans to municipalities or related interests, primarily for infrastructure projects. Residential real estate (1–4 family) includes two categories of loans. Included in residential real estate are approximately $48,023,000 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. The other category of residential real estate loans is primarily 1–4 family residential properties located in the company’s market area. The company utilizes mortgage insurance to provide lower down payment products and has provided a ‘First Time Homebuyer’ product to encourage new home ownership. Home equity loans are extended as both first and second mortgages on owner-occupied residential properties in the company’s market area. Investment Securities As of December 31, 2020, the company's investment portfolio included SBA backed securities; U.S. government agency and sponsored enterprises mortgage-backed securities; privately issued residential mortgage-backed securities; obligations issued by states and political subdivisions; and other debt securities. 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 report balancing the customer’s checking account. 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. The Securities and Exchange Commission (SEC) has adopted various implementing rules and the Financial Industry Regulatory Authority has adopted corporate governance rules that have been approved by the SEC and are applicable to the company. 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. Section 906 of the Sarbanes-Oxley Act requires an additional certification that each periodic report containing financial statements 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. In addition, the Dodd-Frank Wall Street Reform and Consumer Protection Act added a new Section 13 to the Holding Company Act, the so-called ‘Volcker Rule’, which 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. As a bank holding company, the company is subject to the regulation and supervision of the FRB. The bank, a state chartered financial institution, is subject to supervision and regulation by applicable state and federal banking agencies, including the FRB, the Federal Deposit Insurance Corporation (the FDIC) and the Commonwealth of Massachusetts Commissioner of Banks. The bank’s deposits have the benefit of FDIC insurance up to applicable limits. History Century Bancorp, Inc. was founded in 1969.