SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 11-K

þ		ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2003

o		TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to                     

Century Bancorp 401(k) Plan
(Full Title of the Plan)

CENTURY BANCORP, INC.

(Issuer of the securities held pursuant to the Plan)

400 Mystic Avenue
Medford, MA 02155
(Address of principal executive offices)

 

 

Century Bancorp 401(k) Plan

Table of Contents

		Page
Report of Independent Registered Public Accounting Firm			1
Statements of Net Assets Available for Plan Benefits			2
Statement of Changes Net Assets Available for Plan Benefits			3
Notes to Financial Statements			4 - 7
Supplemental Schedule
Schedule H, Line 4(i) — Schedule of Assets (Held at End of Year)			8
Signatures			9
Ex-23.1 Consent of Independent Registered Public Accounting Firm

Report of Independent Registered Public Accounting Firm

The Management Committee
Century Bancorp, Inc. 401(k) Plan:

We have audited the accompanying statements of net assets available for plan benefits of Century Bancorp, Inc. 401(k) Plan (the Plan) as of December 31, 2003 and 2002, and the related statements of changes in net assets available for plan benefits for the years then ended. These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on these 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 financial statements referred to above present fairly, in all material respects, the net assets available for plan benefits of the Plan as of December 31, 2003 and 2002, and the changes in net assets available for plan benefits for the years then ended in conformity with U.S. generally accepted accounting principles.

Our audits were performed for the purpose of forming an opinion on the basic financial statements, taken as a whole. The supplemental schedule of assets held at end of year is presented for purposes of additional analysis and is not a required part of the basic financial statements but is supplementary information required by the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. The supplemental schedule is the responsibility of the Plan’s management. The supplemental schedule has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

Boston, Massachusetts

June 25, 2004

CENTURY BANCORP, INC.
401(k) PLAN

Statements of Net Assets Available for Plan Benefits

December 31, 2003 and 2002

		2003				2002
Assets
Investments, at fair value:
Mutual funds		$	3,769,567				2,276,287
Century Bancorp Stock Fund			763,879				491,120
Participant loans			48,589				34,077
Total investments			4,582,035				2,801,484
Net assets available for plan benefits		$	4,582,035				2,801,484

See accompanying notes to financial statements.

CENTURY BANCORP, INC.
401(k)PLAN

Statements of Changes in Net Assets Available for Plan Benefits

Years ended December 31, 2003 and 2002

		2003				2002
Additions:
Investment income		$	47,256				24,201
Net appreciation (depreciation) in fair value of investments			764,807				(434,222	)
Contributions from employees			878,538				827,206
Contributions from employer			219,188				200,972
Total additions			1,909,789				618,157
Deduction:
Benefits paid to participants			129,238				85,949
Total deduction			129,238				85,949
Net increase			1,780,551				532,208
Net assets available for plan benefits:
Beginning of year			2,801,484				2,269,276
End of year		$	4,582,035				2,801,484

See accompanying notes to financial statements.

CENTURY BANCORP, INC.
401(k)PLAN

Notes to Financial Statements

December 31, 2003 and 2002

(1)		Description of Plan
		The following description of the Century Bancorp, Inc. 401(k) Plan (the Plan) is provided for general information purposes. Participants should refer to the Plan document for more detailed information.

	(a)		General
			The Century Bancorp, Inc. 401(k) Plan was established on October 1, 1996 for the purpose of providing a medium for eligible employees to supplement their retirement income through salary reduction arrangements on a tax-deferred basis, and is established for the exclusive benefit of the employees and their beneficiaries. The Plan is a defined contribution savings plan for all employees of Century Bancorp, Inc. who have attained age twenty-one and completed one year of service. Century Bancorp, Inc. pays all general administrative expenses of the Plan. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA).
	(b)		Contributions
			Each participant of the Plan may enter into an enrollment agreement under which participants agree to reduce their compensation by a specified percent. The percentage shall not be less than 2% nor more than 15% of the participant’s annual compensation, subject to IRS limitations. The employer pays a matching contribution on behalf of each participant who has made a salary reduction contribution during such Plan year in an amount equal to $0.25 on each dollar contributed up to 4% of compensation prior to September 1, 2001 and $0.33 on each dollar contributed up to 6% of compensation subsequent to September 1, 2001.
	(c)		Vesting
			Participants are fully vested in all benefits.
	(d)		Payment of Benefits
			Under the terms of the Plan, participants retiring at or after age 591/2 are eligible to receive the entire balances in all of the accounts maintained for such participants in a lump-sum payment. Participants terminating employment prior to retirement receive their entire account balance as a lump sum payment, with applicable taxes withheld, or as a rollover into another qualified plan. In the event of death, the full value of the participant’s account is payable to the designated beneficiary in a lump sum.
	(e)		Participants’ Loans
			Participant loans may be granted by the Plan Administrator on a uniform and nondiscriminatory basis, upon written request by a participant. The minimum loan amount is $1,000. The maximum loan amount cannot exceed the lesser of 50% of the participant’s account balance or $50,000. Loans are repaid through a payroll deduction and generally within five years.

(Continued)

CENTURY BANCORP, INC.
401(k)PLAN

Notes to Financial Statements

December 31, 2003 and 2002

(2)

Summary of Significant Accounting Policies

	(a)		Basis of Presentation
			The accompanying financial statements of the Plan have been prepared on the accrual basis of accounting and present the net assets available for plan benefits and changes in those net assets.
	(b)		Investment Valuation and Income Recognition
			Marketable investments are stated at fair value. The fair value of marketable investments is based on quoted market prices. Money market fund investments are stated at cost, which approximates fair value. Participant loans are stated at cost which approximates fair value.
			Securities transactions are recognized on the trade date (the date the order to buy or sell is executed). Dividend income is recorded on the ex-dividend date. Interest income is recorded on an accrual basis. Realized gains and losses are determined on the average cost method.
	(c)		Management Estimates
			The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosures of contingent assets and liabilities, at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
	(d)		Benefits
			Benefits are recorded when paid.
	(e)		Investment Options
			The Plan offers investment options among various funds. Participants may elect to have contributions to their account invested in one or a combination of the following investment options:

	1.		MPS Emerging Growth Fund: an aggressive growth fund which seeks to provide long-term growth of capital by investing in common stocks of small and medium-size companies showing earnings growth over time.
	2.		Fidelity Advisory Growth Opportunities Fund: a growth fund which invests m a broad range of companies, industries and securities for diversification, while seeking growth opportunities in small, medium, and large companies.
	3.		Putnam Fund for Growth and Income: a growth and income fund which seeks to provide capital growth and current income by investing primarily in common stocks that pay dividends and/or bonds.
	4.		Liberty Quality Plus Bond: a bond fund which invests in high-quality, short-term bonds and seeks to achieve price stability.

(Continued)

CENTURY BANCORP, INC.
401(k)PLAN

Notes to Financial Statements

December 31, 2003 and 2002

	5.		Century Bancorp Stock Fund: a company stock fund in which amounts invested are used to purchase shares of class A common stock of Century Bancorp, Inc.
	6.		Galaxy Institutional Treasury Money Market Fund: a money market fund which seeks to preserve principal value and maintain a high degree of liquidity while providing current income.
	7.		Janus Fund: a long-term growth fund which seeks long-term growth of capital in a manner consistent with the preservation of capital.
	8.		Putnam International Growth Fund: a growth fund which seeks capital appreciation by investing in common stocks of companies outside the United States.

(3)		Investments
		The following is a listing of individual investments that represent 5% or more of net assets available for plan benefits at December 31:

		2003				2002
MFS Emerging Growth Fund		$	761,804				450,544
Fidelity Advisory Growth Opportunities Fund			740,693				414,921
Putnam Fund for Growth and Income			955,650				636,506
Liberty Quality Plus Bond — Class Z			447,026				271,796
Century Bancorp Stock Fund			763,879				491,120
Galaxy Institutional Treasury Money Market Fund			447,751				271,111
Janus Fund			241,597				—
Putnam International Growth Fund			175,046				—

During 2003 and 2002, the Plan’s investments (including gains and losses on investments bought and sold, as well as held during the year) appreciated (depreciated) by $764,807 and $(434,222), respectively, as follows:

		2003				2002
Mutual funds		$	577,391				(520,150	)
Century Bancorp Stock Fund			187,416				85,928
		$	764,807				(434,222	)

(4)		Distribution on Termination of the Plan
		Although it has not expressed any intent to do so, Century Bancorp, Inc. has the right under the Plan to terminate the Plan subject to the provisions of ERISA. In the event of termination of the Plan, the rights of all members to amounts credited to their accounts shall be fully vested and nonforfeitable.

(Continued)

CENTURY BANCORP, INC.
401 (k) PLAN

Notes to Financial Statements

December 31, 2003 and 2002

(5)		Income Taxes
		The Internal Revenue Service (IRS) determined and informed the Plan Administrator, by letter dated November 7, 2001, that the Plan and related trust are designed in accordance with Section 401 of the Internal Revenue Code (IRC). The Plan is a standardized prototype plan and continues to operate within the terms of the prototype plan,

Schedule 1

CENTURY BANCORP, INC.
401 (k) PLAN

Schedule H, Line 4(i) — Schedule of Assets (Held at End of Year)

December 31, 2003

		Identity of issue, borrower,
		lessor, or similar party		Description		Current value
		MPS Emerging Growth Fund		Mutual Fund		$	761,804
		Fidelity Advisory Growth Opportunities Fund		Mutual Fund			740,693
		Putnam Fund for Growth & Income		Mutual Fund			955,650
		Liberty Quality Plus Bond — Class Z		Mutual Fund			447,026
		Janus Fund		Mutual Fund			241,597
		Putnam International Growth Fund		Mutual Fund			175,046
		Galaxy Institutional Treasury Money Market Fund		Money Market Fund			447,751
*		Century Bancorp Stock Fund		Common Stock			763,879
*		Participant loans		Interest rate between 5.25% and 10.5% with maturities ranging from 2004-2007			48,589
						$	4,582,035

See accompanying independent auditors’ report.

The Plan is subject to the Employee Retirement Income Security Act of 1974 (ERISA). Therefore, in lieu of the requirements of Items 1-3 of Form 11-K, the financial statements and supplemental schedule of the Plan for the two fiscal years ended December 31, 2003 and 2002, have been prepared in accordance with the financial reporting requirements of ERISA, are attached hereto.

Signatures

Pursuant to the requirements of the Securities and Exchange Act of 1934, the Plan has duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.

Exhibit Index

Number		Title
23.1		Consent of KPMG LLP, Independent Registered Public Accounting Firm