Central Bancorp Inc. reported consolidated unaudited financial results for the third quarter and six months ended September 30, 2009. For the quarter, the company's net income increased to $604,000, or $0.30 per diluted share, as compared to a net loss of $9.5 million, or $6.80 per diluted share, for the comparable prior year quarter. Net interest and dividend income totaled $4.2 million during both the quarter ended September 30, 2009 and the quarter ended September 30, 2008. Income before taxes was $911,000 against loss before taxes of $9.402 million for the same quarter last year. Return on average assets for the quarter was 0.44% against negative of 6.81% for the same quarter last year. Return on average equity for the quarter was 5.68% against negative of 99.95% for the same quarter last year. The company's net income for the six months ended September 30, 2009 was $901,000, or $0.40 per diluted share, as compared to net loss of $9.1 million, or $6.53 per diluted share, for the corresponding period in 2008. Net interest and dividend income was $8.034 million against $8.123 million for the same period last year. Income before taxes was $1.32 million against loss before taxes of $8.857 million for the same period last year. Book value per common share at the end of the current period was $20.49 against $18.76 at the end of the same period last year. Return on average assets for the six months of 2009 was 0.32% against negative of 3.23% for the same period last year. Return on average equity for the six months of 2009 was 4.31% against negative of 46.57% for the same period last year.

Central Bancorp Inc. announced that the company's Board of Directors has declared a quarterly common stock dividend of five ($0.05) cents per share, payable on or about November 20, 2009 to stockholders of record on November 6, 2009.

On October 9, 2009, David W. Kearn, the Executive Vice President and Senior Lending Officer of Central Bancorp Inc. (the 'company') and its wholly owned subsidiary, Central Co-Operative Bank (the 'Bank'), notified the company that he will take an indefinite medical leave of absence. In addition, Mr. Kearn has also notified the company that he expects to retire as Executive Vice President and Senior Lending Officer of the company and the Bank on or before December 31, 2009. Mr. Kearn has been on medical leave since August 24, 2009, but had previously believed that his absence would be of a shorter duration. In his absence, Mr. Kearn's duties have been performed by other members of senior management. The company has commenced a search for Mr. Kearn's replacement.