Breaking News

NHTSA Had ‘Ample Information’ to Find GM Ignition Switch Defect: Report
Tweet TWEET

Center Bancorp, Inc. Reports Fourth Quarter Net Income Available to Common Shareholders of $4.4 Million or $0.27 Per Share and

Center Bancorp, Inc. Reports Fourth Quarter Net Income Available to Common Shareholders of $4.4 Million or $0.27 Per Share and Full Year 2012 Earnings Available to Common Shareholders of $17.2 Million or $1.05 Per Share  UNION, N.J., Jan. 25, 2013 (GLOBE NEWSWIRE) -- Center Bancorp, Inc. (Nasdaq:CNBC) (the "Corporation", or "Center"), parent company of Union Center National Bank ("UCNB" or the "Bank"), today reported operating results for the fourth quarter ended December 31, 2012. Net income available to common stockholders amounted to $4.4 million, or $0.27 per fully diluted common share, for the quarter ended December 31, 2012, as compared with net income available to common stockholders of $3.2 million, or $0.20 per fully diluted common share, for the quarter ended December 31, 2011.  For the twelve months ended December 31, 2012, net income available to common stockholders amounted to $17.2 million, or $1.05 per fully diluted common share, compared to $13.1 million, or $0.80 per fully diluted common share, for the same period in 2011.  "Our fourth quarter operating performance remained strong and was characterized by solid revenue growth, positive organic loan generation and a continuation of our stable and favorable asset quality profile. We continue to move forward with momentum in expanding our presence in key markets. With the opening of our Englewood office we are working to solidify and expand the service relationship with our new customers and remain excited by the potential to create incremental shareholder value from our strategic growth. We believe that this type of sequential earnings performance demonstrates the Corporation's commitment to achieving meaningful growth in earnings performance -- an essential component of providing consistent and favorable long-term returns to our shareholders," said Anthony C. Weagley, President and Chief Executive Officer of Union Center National Bank.                       Highlights for the quarter include:    *Strong balance sheet with improved credit trends compared to prior year.        *At December 31, 2012, total loans amounted to $889.7 million, an increase     of $134.7 million compared to total loans at December 31, 2011.        *Noninterest expense decreased $29,000, or 0.47 percent, for the three     months ended December 31, 2012 compared to the quarter ended December 31,     2011        *Reduction in non-performing assets, to 0.31 percent of total assets at     December 31, 2012, compared to 0.34 percent at September 30, 2012 and 0.59     percent at December 31, 2011. The allowance for loan losses as a     percentage of total non-performing loans was 278.9 percent at December 31,     2012 compared to 184.9 percent at September 30, 2012 and 121.5 percent at     December 31, 2011.        *The Tier 1 leverage capital ratio was 9.02 percent at December 31, 2012,     compared to 8.96 percent at September 30, 2012, and 9.29 percent at     December 31, 2011, exceeding regulatory guidelines in all periods.        *Tangible book value per common share rose to $8.11 at December 31, 2012,     compared to $6.60 at December 31, 2011 and $7.90 at September 30, 2012.        *The efficiency ratio for the fourth quarter of 2012 on an annualized basis     was 46.9 percent as compared to 53.7 percent in the fourth quarter of 2011     and 47.7 percent in the third quarter of 2012.        *Deposits increased $185.5 million to $1.3 billion at December 31, 2012,     from $1.1 billion at December 31, 2011 in part as a result of the Saddle     River Valley Bank transaction.  Selected Financial Ratios (unaudited; annualized where                                       applicable)                                                                   As of or for the quarter ended:      12/31/12 9/30/12 6/30/12 3/31/12 12/31/11 Return on average assets             1.11%    1.13%   1.16%   1.16%   1.03% Return on average equity             11.17%   11.67%  11.96%  12.05%  10.72% Net interest margin (tax equivalent  3.32%    3.28%   3.29%   3.39%   3.50% basis) Loans / deposits ratio               68.07%   67.28%  68.70%  68.36%  67.32% Stockholders' equity / total assets  9.86%    9.75%   9.86%   9.62%   9.49% Efficiency ratio (1)                 46.9%    47.7%   47.1%   49.3%   53.7% Book value per common share          $ 9.14  $ 8.93 $ 8.36 $ 8.01 $ 7.63 Return on average tangible equity    12.49%   13.12%  13.53%  13.70%  12.25% (1) Tangible common stockholders' equity 8.22%    8.09%   8.08%   7.81%   7.61% / tangible assets (1) Tangible book value per common share $ 8.11   $ 7.90  $ 7.33  $ 6.98  $ 6.60 (1)  (1)Information reconciling non-GAAP measures to GAAP measures is presented elsewhere in this press release.  Non-performing assets (NPAs) at the end of the fourth quarter totaled $5.0 million, or 0.31 percent of total assets, as compared with $8.5 million, or 0.59 percent, at December 31, 2011 and $5.5 million, or 0.34 percent, at September 30, 2012. "Asset quality remains a primary focus, and our actions with respect to asset quality have placed us near the top of all publicly traded banks and thrifts in the state of New Jersey," said Mr. Weagley. "At the same time, we continue to cautiously maintain our reserves for any potential loan losses."  Net Interest Income  For the three months ended December 31, 2012, total interest income on a fully taxable equivalent basis increased $1.2 million or 8.6 percent, to $14.8 million, compared to the three months ended December 31, 2011. Total interest expense decreased by $260,000, or 8.4 percent, to $2.8 million, for the three months ended December 31, 2012, compared to the same period last year. Net interest income on a fully taxable equivalent basis was $12.0 million for the three months ended December 31, 2012, increasing $1.5 million, or 13.7 percent, from $10.5 million for the comparable period in 2011. Compared to 2011, for the three months ended December 31, 2012, average interest earning assets increased $237.9 million while net interest spread and margin, on a tax-equivalent basis, decreased on an annualized basis by 21 basis points and 18 basis points, respectively. For the quarter ended December 31, 2012, the Corporation's net interest margin on a fully taxable equivalent annualized basis decreased to 3.32 percent as compared to 3.50 percent for the same three month period in 2011.  The 8.4 percent decrease in interest expense reflects a favorable shift in the deposit mix and the impact of the sustained low levels in short-term interest rates, offsetting higher volumes of interest bearing deposits.The average cost of funds declined 21 basis points to 0.92 percent from 1.13 percent for the quarter ended December 31, 2011 and on a linked sequential quarter decreased 3 basis points compared to the third quarter of 2012.For the quarter ended December 31, 2012, the Corporation's annualized net interest spread decreased to 3.19 percent as compared to 3.40 percent for the same three month period in 2011.  Earnings Summary for the Period Ended December 31, 2012  The following tables present condensed consolidated statement of income data for the periods indicated.  Condensed Consolidated Statements of Income (unaudited) (dollars in thousands,                                           except per share data) For the quarter ended:  12/31/12   9/30/12    6/30/12    3/31/12    12/31/11 Net interest income     $11,422   $11,183   $10,546   $10,345   $10,162 Provision for loan      100        225        (107)      107        300 losses Net interest income afterprovision for     11,322     10,958     10,653     10,238     9,862 loan losses Other income            1,016      2,635      1,604      1,955      1,866 Other expense           6,193      7,507      5,690      5,807      6,222 Income before income    6,145      6,086      6,567      6,386      5,506 tax expense Income tax expense      1,676      1,632      2,214      2,155      1,884 Net income              $4,469    $4,454    $4,353    $4,231    $3,622 Net income available to $4,441   $4,426    $4,269    $4,090    $3,238 common stockholders Earnings per common                                              share: Basic                   $0.27     $0.27     $0.26     $0.25     $0.20 Diluted                 $0.27     $0.27     $0.26     $0.25     $0.20 Weighted average common                                          shares outstanding: Basic                   16,347,564 16,347,088 16,333,653 16,332,327 16,311,193 Diluted                 16,363,698 16,362,635 16,341,767 16,338,162 16,327,990  For the twelve months ended December 31, 2012, net interest income on a fully taxable equivalent basis amounted to $45.4 million, compared to $40.6 million for the same period in 2011. For the twelve month period ended December 31, 2012, interest income increased by $4.4 million while interest expense decreased by $401,000 from the same period last year. Compared to the same period in 2011, for the twelve months ended December 31, 2012, average interest earning assets increased $216.7 million while net interest spread and margin decreased on a tax-equivalent basis by 20 basis points and 21 basis points, respectively.  Commenting on the Corporation's net interest margins, Mr. Weagley remarked:"Prior compression during quarterly periods of 2012, occurred primarily as result of a continued high liquidity pool carried during the periods, which has not been entirely offset by investing activity; however, during the fourth quarter prior action to improve margins started to abate further compression.We expect an improvement in margin, principally given the continued volume of asset deployment into loans from cash and elimination of temporary factors holding the margin down."  Other Income  The following tables present the components of other income for the periods indicated.  (in thousands, unaudited)                                          For the quarter ended:               12/31/12 9/30/12 6/30/12 3/31/12 12/31/11 Service charges on deposit accounts  $324    $333   $287   $314   $344 Loan related fees                    220      85      95      110     149 Net gains on sales of loans held for 170      88      100     126     99 sale Annuities and insurance commissions  67       45      48      44      29 Debit card and ATM fees              125      126     134     132     137 Bank-owned life insurance            282      239     246     251     258 Net investment securities gains      (201)    763     513     937     817 (losses) Bargain gain on acquisition          —        899     —       —       — Other fees                           29       57      181     41      33 Total other income                   $1,016  $2,635 $1,604 $1,955 $1,866  Other income decreased $850,000 for the fourth quarter of 2012 compared with the same period in 2011.During the fourth quarter of 2012, the Corporation recorded net investment securities losses of $201,000 compared to $817,000 in net investment securities gains for the same period last year. Excluding net securities losses, the Corporation recorded other income of $1.2 million for the three months ended December 31, 2012 compared to other income, excluding net securities gains, of $1.0 million for the fourth quarter of 2011 and $1.9 million for the three months ended September 30, 2012. The increase in other income in the fourth quarter of 2012 when compared to the fourth quarter of 2011 (excluding securities losses/gains) was primarily from an increase of $71,000 in loan related fees, an increase of $71,000 in gains on loans held for sale, an increase in bank owned life insurance income of $24,000 and an increase of $38,000 in annuities and insurance commissions, partially offset by a $20,000 decline in service charges on deposit accounts, a $12,000 decline in debit card and ATM fees, and a$4,000 decline in other income .  For the twelve months ended December 31, 2012, total other income decreased $268,000 compared to the same period in 2011, as a $899,000 bargain gain on acquisition, $311,000 in higher loan fees and higher net gains on sale of loans held for sale, a $150,000 gain from the sale of judgments and $94,000 in higher annuity commissions were offset by lower net securities gains of $1.6 million and decreases of $121,000 in fee income and $20,000 in BOLI revenue. Excluding net securities gains and losses and the 2012 bargain gain on acquisition, the Corporation recorded other income of $4.3 million for the twelve months ended December 31, 2012 compared to other income, excluding net securities gains, of $3.8 million for the comparable period in 2011, an increase of $455,000 or 11.8 percent.  Total other expense for the fourth quarter of 2012 amounted to $6.2 million, which was approximately $1.3 million or 17.5 percent lower than other expense for the three months ended September 30, 2012; excluding repurchase agreement prepayment and termination fee and acquisition costs incurred during the third quarter of 2012, total other expense increased by$160,000 or 2.7 percent. Employee salaries and benefits increased $12,000, occupancy and equipment expense increased $203,000, stationery and printing expense increased $31,000, bank regulatory related expense increased $5,000, postage and delivery increased $6,000, ATM related expense increased $8,000, and all other expense increased $32,000; these increases were partially offset by decreases in professional and consulting of $17,000, marketing and advertising of $29,000 and computer expense of $28,000.  Other Expense  The following tables present the components of other expense for the periods indicated.  (in thousands, unaudited)                                          For the quarter ended:             12/31/12 9/30/12 6/30/12 3/31/12   12/31/11 Salaries                           $2,495  $2,505 $2,347 $2,344 $2,290 Employee benefits                  710      688     708     774       619 Occupancy and equipment            942      739     606     700       701 Professional and consulting        260      277     294     246       351 Stationery and printing            100      69      96      84        95 FDIC Insurance                     293      292     270     299       328 Marketing and advertising          35       64      56      31        15 Computer expense                   338      366     362     353       323 Bank regulatory related expenses   82       77      75      78        108 Postage and delivery               61       55      71      79        42 ATM related expenses               72       64      69      62        58 Other real estate owned, net       1        65      22      62        399 Amortization of core deposit       10       10      11      13        12 intangible Repurchase agreement prepayment    —        1,012   —       —         — and termination fee Acquisition cost                   10       472     —       —         — All other expenses                 784      752     703     682       881 Total other expense                $6,193  $7,507 $5,690 $5,807   $6,222  The decrease in other expense for the three months ended December 31, 2012, when compared to the quarter ended December 31, 2011, was approximately $29,000. Decreases primarily included professional and consulting of $91,000, FDIC insurance of $35,000, bank regulatory related expense of $26,000, OREO expense of $398,000 and all other expenses of $97,000. These decreases were partially offset by increases of $296,000 in salaries and benefit expense, $241,000 in occupancy and equipment expense, which primarily reflect the increased costs of the Saddle River Valley Bank acquisition and the new Englewood office.  For the twelve months ended December 31, 2012, total other expense increased $1.8 million, or 7.5 percent, compared to the same period in 2011. Excluding the repurchase agreement prepayment and termination fee and acquisition cost, the increase was $260,000, or 1.1 percent. Increases primarily included salaries and employee benefits of $1.0 million, $40,000 in occupancy and equipment, which primarily reflect the increased costs of the Saddle River Valley Bank acquisition and the new Englewood office , $55,000 in marketing and advertising and $107,000 in computer expense. These increases were partially offset by decreases of $558,000 in FDIC insurance expense, $79,000 in professional and consulting,$248,000 in OREO expense and $82,000 in all other expenses.  Statement of Condition Highlights at December 31, 2012    oTotal assets amounted to $1.6 billion at December 31, 2012.        oTotal loans were $889.7 million at December 31, 2012, increasing $134.7     million, or 17.8 percent, from December 31, 2011.Total real estate loans     increased $86.9 million, or 16.1 percent, from December 31, 2011.     Commercial loans increased $47.6 million, or 22.2 percent, year over year.        oInvestment securities totaled $554.9 million at December 31, 2012,     reflecting an increase of $68.1 million or 14.0 percent from December 31,     2011.        oDeposits totaled $1.3 billion at December 31, 2012, increasing $185.5     million, or 16.5 percent, since December 31, 2011.Total Demand, Savings,     Money Market, and certificates of deposit less than $100,000 increased     $212.7 million or 21.6 percent from December 31, 2011. Time certificates     of deposit of $100,000 or more decreased by $27.2 million or 19.7 percent     from December 31, 2011. The increases were attributable to continued core     deposit growth in overall segments of the deposit base, as well as the     Saddle River Valley Bank transaction.        oBorrowings totaled $146.0 million at December 31, 2012, decreasing $15.0     million from December 31, 2011, primarily due to the termination of a     $10.0 million repurchase agreement and the prepayment of a $5.0 million     FHLB New York advance.  Condensed Statements of Condition  The following tables present condensed statements of condition as of the dates indicated.  Condensed Consolidated Statements of Condition (unaudited) (in thousands)                                                    At quarter ended:   12/31/12    9/30/12     6/30/12     3/31/12      12/31/11 Cash and due from   $104,134   $100,106   $73,668    $78,207    $111,101 banks Interest bearing    2,004       2,002       12,000      —            — deposits with banks Investment                                                        securities: Available for sale  496,815     509,605     467,190     454,994      414,507 Held to maturity    58,064      56,503      62,997      69,610       72,233 Loans held for sale, at lower of   1,491       1,055       501         2,060        1,018 cost or fair value Loans               889,672     869,998     806,953     788,562      754,992 Allowance for loan  (10,237)    (10,240)    (10,221)    (9,754)      (9,602) losses Restricted investment in bank  8,964       8,964       9,139       9,233        9,233 stocks, at cost Premises and        13,563      13,564      12,218      12,266       12,327 equipment, net Goodwill            16,804      16,804      16,804      16,804       16,804 Core deposit        54          64          73          85           98 intangible Bank-owned life     34,961      29,679      29,440      29,194       28,943 insurance Other real estate   1,300       —           453         558          591 owned Other assets        12,176      13,975      19,807      24,776       20,493 Total assets        $1,629,765 $1,612,079 $1,501,022 $1,476,595  $                                                                      1,432,738 Deposits            $1,306,922 $1,293,013 $1,174,649 $1,153,473  $                                                                      1,121,415 Borrowings          151,155     151,205     166,262     166,155      166,155 Other liabilities   10,997      10,676      12,128      14,886       9,252 Stockholders'       160,691     157,185     147,983     142,081      135,916 equity Total liabilities                                                    $ and stockholders'   $1,629,765 $1,612,079 $1,501,022 $1,476,595 1,432,738 equity  The following tables reflect the composition of the Corporation's deposits as of the dates indicated.  Deposits                                                        (unaudited) (in thousands)                                                  At quarter ended:  12/31/12    9/30/12     6/30/12     3/31/12     12/31/11 Demand:                                                         Non-interest       $215,071   $192,321   $181,282   $172,342  $167,164 bearing Interest-bearing   217,922     222,660     199,064     197,648     215,523 Savings            216,274     218,732     207,151     209,436     200,930 Money market       493,836     488,189     432,507     411,626     351,237 Time               163,819     171,111     154,645     162,421     186,561 Total deposits     $1,306,922 $1,293,013 $1,174,649 $1,153,473 $1,121,415  Loans  The following reflects the composition of the Corporation's loan portfolio as of the dates indicated.  Loans (unaudited)                                                 (in thousands)                                                    At quarter ended:            12/31/12  9/30/12   6/30/12   3/31/12   12/31/11 Real estate loans:                                                Residential                  $ 158,361 $ 162,070 $ 147,431 $ 147,607 $ 150,749 Commercial                   428,673   424,574   381,348   371,855   358,245 Construction                 40,272    40,867    33,521    34,093    31,378 Total real estate loans      627,306   627,511   562,300   553,555   540,372 Commercial loans             261,791   242,008   244,294   234,549   214,167 Consumer and other loans     452       324       196       399       436 Total loans before deferred  889,549   869,843   806,790   788,503   754,975 fees and costs Deferred costs, net          123       155       163       59        17 Total loans                  $ 889,672 $ 869,998 $ 806,953 $ 788,562 $ 754,992  The Corporation's net loans in the fourth quarter of 2012 increased $19.7 million, to $879.4 million at December 31, 2012, from $859.8 million at September 30, 2012.This includes allowance for loan losses of $10.2 million at both December 31, 2012 and September 30, 2012.The loan growth during the period amounted to approximately $89.2 million in new loans and advances during the fourth quarter.This growth was offset in part by prepayments of $31.5 million coupled with scheduled payments, maturities and payoffs of $38.1 million. Average loans during the fourth quarter of 2012 totaled $864.9 million as compared to $726.0 million during the fourth quarter of 2011, representing a 19.1 percent increase.  At the end of the fourth quarter of 2012, the loan portfolio remained well diversified with commercial and industrial (C&I) loans, including owner-occupied commercial real estate loans, accounting for 30.4 percent of the loan portfolio, commercial real estate loans representing 45.0 percent of the loan portfolio, and personal and other loans representing 20.1 percent of the loan portfolio. Construction and development loans accounted for only 4.5 percent of the loan portfolio.The loan volume increase within the portfolio amounted to $70.4 million in commercial and commercial real estate loans, $8.9 million in construction loans, and $7.6 million in residential mortgage loans. At December 31, 2011, net loans totaled $745.4 million.  At December 31, 2012, the Corporation had $242.2 million in overall undisbursed loan commitments, which includes largely unused commercial lines of credit, home equity lines of credit and available usage from active construction facilities.Included in the overall undisbursed commitments are the Corporation's "Approved, Accepted but Unfunded" pipeline, which includes approximately $58.1 million in commercial and commercial real estate loans and $10.9 million in residential mortgages expected to fund over the next 90 days.  Asset Quality  Non-accrual loans decreased from $5.0 million at September 30, 2012 to $3.6 million at December 31, 2012. Loans past due 90 days or more and still accruing decreased from $570,000 at September 30, 2012 to $55,000 at December 31, 2012. Other real estate owned at December 31, 2012 was $1.3 million, as compared to zero at September 30, 2012.Performing troubled debt restructured loans, which are performing loans, decreased from $6.9 million at September 30, 2012 to $6.8 million at December 31, 2012, reflecting the receipt of payments of $38,000 on loans in performing status.  "We continued to move forward with resolution of outstanding credit quality issues during the fourth quarter.As previously stated, our approach to credit management and diligence at monitoring and managing problem credits has aided in the continued reduction in the levels of nonaccrual loans and problem credits.Our underwriting and overall credit philosophies remain conservative and have provided the Bank with the high quality well-diversified loan portfolio that the Corporation has today,"commented Mr. Weagley.  The following tables present the components of non-performing assets and other asset quality data for the periods indicated.  (dollars in thousands,                                          unaudited) As of or for the        12/31/12   9/30/12    6/30/12    3/31/12    12/31/11 quarter ended: Non-accrual loans       $3,616    $4,967    $3,943    $7,125    $6,871 Loans 90 days or more past due and still      55         570        1,026      1,062      1,029 accruing Total non-performing    3,671      5,537      4,969      8,187      7,900 loans Other non-performing    —          —          —          —          — assets Other real estate owned 1,300      —          453        558        591 Total non-performing    $4,971    $5,537    $5,422    $8,745    $8,491 assets Performing troubled     $6,813    $6,851    $8,736    $6,900    $7,459 debt restructured loans                                                                 Non-performing assets / 0.31%      0.34%      0.36%      0.59%      0.59% total assets Non-performing loans /  0.41%      0.64%      0.62%      1.04%      1.05% total loans Net charge-offs         $103      $206      $(574)    $(45)     $234 (recoveries) Net charge-offs (recoveries) / average  0.05%      0.10%      (0.29)%    (0.02)%    0.13% loans (1) Allowance for loan      1.15%      1.18%      1.27%      1.24%      1.27% losses / total loans Allowance for loan losses / non-performing 278.9%     184.9%     205.7%     119.1%     121.5% loans                                                                 Total assets            $1,629,765 $1,612,079 $1,501,022 $1,476,595 $1,432,738 Total loans             889,672    869,998    806,953    788,562    754,981 Average loans           864,829    850,059    790,382    755,813    725,974 Allowance for loan      10,237     10,240     10,221     9,754      9,602 losses  (1) Annualized.  At December 31, 2012, non-performing assets totaled $5.0 million, or 0.31 percent of total assets, as compared with $8.5 million, or 0.59 percent, at December 31, 2011 and $5.5 million, or 0.34 percent, at September 30, 2012.The decrease from December 31, 2011 was achieved notwithstanding the addition of several new residential loans (totaling approximately $1.2 million) and construction and commercial loans (totaling approximately $1.0 million) into non-performing status. This was more than offset by decreases from payoffs and pay-downs of $1.7 million, total charge-offs or write downs of $175,000, the transfer to other real estate owned during the last twelve months of $1.3 million and the return to performing status of $3.9 million.  The allowance for loan losses at December 31, 2012 amounted to approximately $10.2 million, or 1.15 percent of total loans. Excluding loans acquired from Saddle River Valley Bank and carried at fair value, the coverage ratio was 1.22 percent, compared to 1.27 percent of total loans at December 31, 2011. The allowance for loan losses as a percentage of total non-performing loans was 278.9 percent at December 31, 2012 compared to 121.5 percent at December 31, 2011.  A discussion of the significant components of non-performing assets at December 31, 2012 is outlined below.    *One non-accrual relationship totaling $2.1 million, secured by senior     liens on two separate residential properties, located in Morris County,     New Jersey, has been in foreclosure; no material loss to the Corporation     is anticipated, although no assurance can be made with respect to the     outcome at this time. One of the two loans secured by residential Morris     County properties totaling $699,000 was modified, and is current with its     modification plan.A deed in lieu was accepted in the amount of $1.3     million on the second property, which was subsequently transferred to     OREO. The Corporation is marketing the property for sale.        *Two loans acquired from Saddle River Valley Bank during the third quarter     of 2012 were deemed impaired at the time of acquisition.    The fair value at acquisition of the first loan had been calculated at   $453,100, a steep discount to the borrower's true balance.The Corporation   has negotiated a full settlement with the borrower in lieu of foreclosure on   multiple residential properties in New York State, which is expected to   result in proceeds at or about the loan's fair value.The transaction is   expected to be completed in the first quarter of 2013.    The second loan when acquired had a calculated fair value of   $310,585.Similarly, the value of this loan was a significant discount to   the borrower's true balance.A sale of the loan, secured with a property in   New York State, is expected to close in the first quarter of 2013 at a value   in excess of the loan's fair value.    No assurance can be made with respect to the outcome of either transaction.  Capital  At December 31, 2012, total stockholders' equity amounted to $160.7 million, or 9.86 percent of total assets. Tangible common stockholders' equity was $132.6 million, or 8.22 percent of tangible assets, compared to 7.61 percent at December 31, 2011. Book value per common share was $9.14 at December 31, 2012, compared to $7.63 at December 31, 2011. Tangible book value per common share was $8.11 at December 31, 2012 compared to $6.60 at December 31, 2011.  At December 31, 2012, the Corporation's Tier 1 leverage capital ratio was 9.02 percent, the Tier 1 risk-based capital ratio was 11.39 percent and the total risk-based capital ratio was 12.22 percent. Tier 1 capital increased to approximately $143.8 million at December 31, 2012 from $129.4 million at December 31, 2011, reflecting an increase in retained earnings.  At December 31, 2012, the Corporation's capital ratios continued to exceed the minimum Federal requirements for a bank holding company, and Union Center National Bank's capital ratios continued to exceed each of the minimum levels required for classification as a "well capitalized institution" under the Federal Deposit Insurance Corporation Improvement Act ("FDICIA").  Non-GAAP Financial Measures  Reported amounts are presented in accordance with accounting principles generally accepted in the United States of America ("GAAP"). The Corporation's management believes that the supplemental non-GAAP information provided in this press release is utilized by market analysts and others to evaluate a company's financial condition and, therefore, that such information is useful to investors. These disclosures should not be viewed as a substitute for financial results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures presented by other companies.  "Return on average tangible stockholders' equity" is a non-GAAP financial measure and is defined as net income as a percentage of tangible stockholders' equity. Tangible stockholders' equity is defined as common stockholders' equity less goodwill and other intangible assets. The return on average tangible stockholders' equity measure may be important to investors that are interested in analyzing the Corporation's return on equity excluding the effect of changes in intangible assets on equity.  The following tables present a reconciliation of average tangible stockholders' equity and a reconciliation of return on average tangible stockholders' equity for the periods presented.  (dollars in thousands)                                            For the quarter ended:       12/31/12  9/30/12   6/30/12   3/31/12   12/31/11 Net income                   $4,469   $4,454   $4,353   $4,231   $3,622 Average stockholders' equity $ 160,006 $ 152,686 $ 145,607 $ 140,411 $ 135,142 Less: Average goodwill and other   16,864    16,874    16,884    16,897    16,910 intangible assets Average tangible             $143,142 $135,812 $128,723 $123,514 $118,232 stockholders' equity                                                                  Return on average            11.17%    11.67%    11.96%    12.05%    10.72% stockholders' equity Add: Average goodwill and other   1.32%     1.45%     1.57%     1.65%     1.53% intangible assets Return on average tangible   12.49%    13.12%    13.53%    13.70%    12.25% stockholders' equity  "Tangible book value per common share" is a non-GAAP financial measure and represents tangible stockholders' equity (or tangible book value) calculated on a per common share basis. The disclosure of tangible book value per common share may be helpful to those investors who seek to evaluate the Corporation's book value per common share without giving effect to goodwill and other intangible assets.  The following tables present a reconciliation of stockholders' equity to tangible common stockholders' equity and book value per common share to tangible book value per common share as of the dates presented.  (dollars in thousands, except per share data) At quarter ended:       12/31/12   9/30/12    6/30/12    3/31/12    12/31/11 Common shares           16,347,915 16,347,088 16,347,088 16,332,327 16,332,327 outstanding Stockholders' equity    $160,691  $157,185  $147,983  $142,081  $135,916 Less: Preferred stock   11,250     11,250     11,250     11,250     11,250 Less: Goodwill and      16,858     16,868     16,877     16,889     16,902 other intangible assets Tangible common         $132,583  $129,067  $119,856  $113,942  $107,764 stockholders' equity                                                                 Book value per common   $9.14     $8.93    $8.36     $8.01     $7.63 share Less: Goodwill and      1.03       1.03       1.03       1.03       1.03 other intangible assets Tangible book value per $8.11     $7.90     $7.33     $6.98     $6.60 common share  "Tangible common stockholders' equity/tangible assets" is a non-GAAP financial measure and is defined as tangible common stockholders' equity as a percentage of total assets minus goodwill and other intangible assets. This measure may be important to investors that are interested in analyzing the financial condition of the Corporation without consideration of intangible assets, inasmuch as tangible common stockholders' equity and tangible assets both exclude goodwill and other intangible assets.  The following tables present a reconciliation of total assets to tangible assets and a comparison of total stockholders' equity/total assets to tangible common stockholders' equity/tangible assets as of the dates presented.  (dollars in thousands)                                           At quarter ended:       12/31/12   9/30/12    6/30/12    3/31/12    12/31/11 Total assets            $1,629,765 $1,612,079 $1,501,022 $1,476,595 $1,432,738 Less: Goodwill and      16,858     16,868     16,877     16,889     16,902 other intangible assets Tangible assets         $1,612,907 $1,595,211 $1,484,145 $1,459,706 $1,415,836                                                                 Total stockholders'     9.86%      9.75%      9.86%      9.62%      9.49% equity / total assets Tangible common stockholders'equity /  8.22%      8.09%      8.08%      7.81%      7.61% tangible assets  Other income is presented in the table below including and excluding net gains. We believe that many investors desire to evaluate other income without regard for gains.  (in thousands)                                                     For the quarter ended:               12/31/12 9/30/12 6/30/12 3/31/12 12/31/11 Other income                         $1,016  $2,635 $1,604 $1,955 $1,866 Less: Net investment securities      (201)    763     513     937     817 gains (losses) Less: Bargain gain on acquisition    —        899     —       —       — Other income, excluding net investment securities gains (        $1,217  $973   $1,091 $1,018 $1,049 losses) and bargain gain on acquisition  "Efficiency ratio" is a non-GAAP financial measure and is defined as other expense as a percentage of net interest income on a tax equivalent basis plus other income, excluding net securities gains, calculated as follows:  (dollars in thousands)                                             For the quarter ended:            12/31/12 9/30/12  6/30/12  3/31/12  12/31/11 Other expense                     $6,193  $7,507  $5,690  $5,807  $6,222 Less: Repurchase agreement        —        1,012    —        —        — termination fee Less: Acquisition cost            10       472      —        —        — Other expense, excluding          $6,183  $6,023  $5,690  $5,807  $6,222 extraordinary items                                                                   Net interest income (tax          $11,969 $11,663 $10,990 $10,761 $10,531 equivalent basis) Other income, excluding net       1,217    973      1,091    1,018    1,049 investmentsecurities gains Total                             $13,186 $12,636 $12,081 $11,779 $11,580                                                                   Efficiency ratio                  46.9%    47.7%    47.1%    49.3%    53.7%  The following table sets forth the Corporation's consolidated average statements of condition for the periods presented.  Condensed Consolidated Average Statements of Condition (unaudited) (in thousands)                                                  For the quarter   12/31/12    9/30/12     6/30/12     3/31/12      12/31/11 ended: Investment                                                      securities Available for     $517,179   $508,864   $473,963   $443,109    $409,480 sale Held to maturity  58,929     60,275     66,626     72,401      69,587 Loans             864,829     850,059     790,382     755,813      725,974 Allowance for     (10,188)    (10,197)    (9,813)     (9,683)      (9,506) loan losses All other assets  181,306     172,032     177,100     199,631      214,984 Total assets      $1,612,055 $1,581,033 $1,498,258 $ 1,461,271 $ 1,410,519 Non-interest      $205,278   $183,858   $173,248   $ 167,921  $166,027 bearing deposits Interest-bearing  1,079,351   1,066,849   1,002,230   976,958      934,774 deposits Borrowings        151,364     164,294     166,299     166,375      166,155 Other liabilities 16,056      13,346      10,874      9,606        8,421 Stockholders'     160,006     152,686     145,607     140,411      135,142 equity Total liabilities                                     $ and stockholders' $1,612,055 $1,581,033 $1,498,258 1,461,271  $1,410,519 equity  About Center Bancorp  Center Bancorp, Inc. is a bank holding company, which operates Union Center National Bank, its main subsidiary. Chartered in 1923, Union Center National Bank is one of the oldest national banks headquartered in the state of New Jersey and now ranks as the third largest national bank headquartered in the state.Union Center National Bank is currently the largest commercial bank headquartered in Union County. Its primary market niche is its commercial banking business. The Bank focuses its lending activities on commercial lending to small and medium-sized businesses, real estate developers and high net worth individuals.  The Bank, through its Private Banking and Wealth Management Division, which includes its wholly-owned subsidiary, Center Financial Group LLC, provides personalized wealth management and advisory services to high net worth individuals and families. Our services include banking, liquidity management, investment services, custody, tailored lending, wealth planning, trust and fiduciary services, insurance, family wealth advisory services and philanthropic advisory services.The Bank through a strategic partnership between the Bank's Private Banking Division and Alexander, Troy & Company ("AT&CO."), Family Office Services, of Katonah, New York, provides customized financial and administrative services to high-net worth individuals.  Center, through a strategic partnership with Compass Financial Management, LLC and ING, offers pension/401(k) planning services.Compass is an Investment Advisory Company with five decades of cumulative experience providing investment services in a personal, professional and attentive manner.They provide discretionary private investment management for individuals and corporate accounts as well as 401(k) advisory services.  The Bank currently operates 15 banking locations in Union, Morris and Bergen Counties in New Jersey. Banking centers are located in Union Township (5 locations), Berkeley Heights, Boonton/Mountain Lakes,Madison, Millburn/Vauxhall, Morristown, Oakland, Saddle River, Springfield, and Summit, New Jersey. The Bank's primary market area is comprised of Union, Morris and Bergen Counties, New Jersey. Also, the Corporation opened the new Englewood banking center, located in downtown Englewood, NJ, in December.  For further information regarding Center Bancorp, Inc., please visit our web site at http://www.centerbancorp.com or call (800) 862-3683. For information regarding Union Center National Bank, please visit our web site at www.ucnb.com.  Forward-Looking Statements  All non-historical statements in this press release (including statements regarding our expanding our presence in key markets, our potential to create incremental shareholder value from our strategic growth, growth in earnings performance, the amount of the Small Business Lending Fund dividend and margin improvement, ) constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may use forward-looking terminology such as "expect," "look," "believe," "plan," "anticipate," "may," "will" or similar statements or variations of such terms or otherwise express views concerning trends and the future. Such forward-looking statements involve certain risks and uncertainties. These include, but are not limited to, the direction of interest rates, continued levels of loan quality and origination volume, Center Bancorp's ability to integrate Saddle River Valley Bank's branches into Center Bancorp's branch network, continued relationships with major customers including sources for loans, as well as the effects of international, national, regional and local economic conditions and legal and regulatory barriers and structure, including those relating to economic recovery and the deregulation of the financial services industry, and other risks cited in the Corporation's most recent Annual Report on Form 10-K and other reports filed by the Corporation with the Securities and Exchange Commission. Actual results may differ materially from such forward-looking statements. Center Bancorp, Inc. assumes no obligation for updating any such forward-looking statement at any time.  CENTER BANCORP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CONDITION                                                                                                       (Unaudited)       (Audited) (in thousands, except for share and per    December 31, 2012 December 31, 2011 share data)                                                             ASSETS                                                       Cash and due from banks                    $ 104,134         $ 111,101 Interest bearing deposits with banks       2,004             — Total cash and cash equivalents            106,138           111,101 Investment securities:                                       Available for sale                         496,815           414,507 Held to maturity (fair value of $62,431 at December 31, 2012 and $74,922 atDecember  58,064            72,233 31, 2011) Loans held for sale, at lower of cost or   1,491             1,018 fair value Loans                                      889,672           754,992 Less: Allowance for loan losses            10,237            9,602 Net loans                                  879,435           745,390 Restricted investment in bank stocks, at   8,964             9,233 cost Premises and equipment, net                13,563            12,327 Accrued interest receivable                6,849             6,219 Bank-owned life insurance                  34,961            28,943 Goodwill                                   16,804            16,804 Prepaid FDIC assessments                   811               1,884 Other real estate owned                    1,300             591 Other assets                               4,570             12,488 Total assets                               $ 1,629,765       $ 1,432,738                                                             LIABILITIES                                                  Deposits:                                                    Non-interest bearing                       $ 215,071         $ 167,164 Interest-bearing:                                            Time deposits $100 and over                110,835           137,998 Interest-bearing transaction, savings and  981,016           816,253 time deposits less than $100 Total deposits                             1,306,922         1,121,415 Long-term borrowings                       146,000           161,000 Subordinated debentures                    5,155             5,155 Accounts payable and accrued liabilities   10,997            9,252 Total liabilities                          1,469,074         1,296,822                                                             STOCKHOLDERS' EQUITY                                         Preferred stock, $1,000 liquidation value per share, authorized 5,000,000 shares;    11,250           11,250 issued 11,250 shares Series B at December 31, 2012 and December 31, 2011 Common stock, no par value, authorized 25,000,000 shares; issued 18,477,412 shares at December 31, 2012 andDecember   110,056          110,056 31, 2011; outstanding 16,347,915 shares at December 31, 2012 and 16,332,327 shares at December 31, 2011 Additional paid in capital                 4,801             4,715 Retained earnings                          46,753            32,695 Treasury stock, at cost (2,129,497 common shares at December 31, 2012 and            (17,232)          (17,354) 2,145,085common shares December 31, 2011) Accumulated other comprehensive income     5,063             (5,446) (loss) Total stockholders' equity                 160,691           135,916 Total liabilities and stockholders' equity $ 1,629,765       $ 1,432,738                                                              CENTER BANCORP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (Unaudited)                                                                                                    Three Months Ended    Twelve Months Ended                                   December 31,          December 31, (in thousands, except for share    2012       2011       2012       2011 and per share data)                                                                  Interest income                                                   Interest and fees on loans         $ 10,083   $ 9,197    $ 38,921   $ 36,320 Interest and dividends on                                         investment securities: Taxable                            3,022      3,199      12,269     13,278 Tax-exempt                         1,016      717        3,507      1,700 Dividends                          141        150        567        629 Interest on federal funds sold and 1          —          8          — other short-terminvestment Total interest income              14,263     13,263     55,272     51,927 Interest expense                                                  Interest on certificates of        202        270        839        1,215 deposit $100 or more Interest on other deposits         1,163      1,172      4,569      4,305 Interest on borrowings             1,476      1,659      6,368      6,657 Total interest expense             2,841      3,101      11,776     12,177 Net interest income                11,422     10,162     43,496     39,750 Provision for loan losses          100        300        325        2,448 Net interest income after          11,322     9,862      43,171     37,302 provision for loan losses Other income                                                      Service charges, commissions and   449        481        1,775      1,896 fees Annuities and insurance            67         29         204        110 commissions Bank-owned life insurance          282        258        1,018      1,038 Loan related fees                  220        149        510        432 Net gains on sale of loans held    170        99         484        251 for sale Bargain gain on acquisition        —          —          899        — Other                              29         33         308        117 Other-than-temporary impairment    (538)      (39)       (870)      (342) losses on investment securities Net other-than-temporary impairment losses on investment    (538)      (39)       (870)      (342) securities Net gains on sale of investment    337        856        2,882      3,976 securities Net investment securities gains    (201)      817        2,012      3,634 (losses) Total other income                 1,016      1,866      7,210      7,478 Other expense                                                     Salaries and employee benefits     3,205      2,909      12,571     11,527 Occupancy and equipment            942        701        2,987      2,947 FDIC insurance                     293        328        1,154      1,712 Professional and consulting        260        351        1,077      1,156 Stationery and printing            100        95         349        368 Marketing and advertising          35         15         186        131 Computer expense                   338        323        1,419      1,312 Other real estate owned, net       1          399        150        398 Repurchase agreementprepayment    —          —          1,012      — and termination fee Acquisition cost                   10         —          482        — Other                              1,009      1,101      3,810      3,892 Total other expense                6,193      6,222      25,197     23,443 Income before income tax expense   6,145      5,506      25,184     21,337 Income tax expense                 1,676      1,884      7,677      7,411 Net Income                         4,469      3,622      17,507     13,926 Preferred stock dividends and      28         384        281        820 accretion Net income available to common     $ 4,441    $ 3,238    $ 17,226   $ 13,106 stockholders Earnings per common share                                         Basic                              $ 0.27     $ 0.20     $ 1.05     $ 0.80 Diluted                            $ 0.27     $ 0.20     $ 1.05     $ 0.80 Weighted Average Common Shares                                    Outstanding Basic                              16,347,564 16,311,193 16,340,197 16,295,761 Diluted                            16,363,698 16,327,990 16,351,046 16,314,899                                                                   CENTER BANCORP, INC. AND SUBSIDIARIES SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA (Unaudited)                                                                                            Three Months Ended (in thousands, except for share and per share 12/31/2012 9/30/2012  12/31/2011 data) (annualized where applicable) Statements of Income Data                                                                                                            Interest income                               $14,263   $14,118   $13,263 Interest expense                              2,841      2,935      3,101 Net interest income                           11,422     11,183     10,162 Provision for loan losses                     100        225        300 Net interest income after provision for loan  11,322     10,958     9,862 losses Other income                                  1,016      2,635      1,866 Other expense                                 6,193      7,507      6,222 Income before income tax expense              6,145      6,086      5,506 Income tax expense                            1,676      1,632      1,884 Net income                                    $4,469    $4,454    $3,622 Net income available to common stockholders   $4,441    $4,426    $3,238 Earnings per Common Share                                          Basic                                         $0.27     $0.27     $0.20 Diluted                                       $0.27     $0.27     $0.20 Statements of Condition Data (Period-End)                          Investment securities:                                             Available for sale                            $496,815  $509,605  $414,507 Held for maturity( fair value $62,431,        58,064    56,503   72,233 $60,946 and $74,922) Loans held for sale, at lower of cost or fair 1,491      1,055      1,018 value Loans                                         889,672    869,998    754,992 Total assets                                  1,629,765  1,612,079  1,432,738 Deposits                                      1,306,922  1,293,013  1,121,415 Borrowings                                    151,155    151,205    166,155 Stockholders' equity                          160,691    157,185    135,916 Common Shares Dividend Data                                        Cash dividends                                $899      $899      $489 Cash dividends per share                      $0.055    $0.055    $0.030 Dividend payout ratio                         20.24%     20.31%     15.10% Weighted Average Common Shares Outstanding                         Basic                                         16,347,564 16,347,088 16,311,193 Diluted                                       16,363,698 16,362,635 16,327,990 Operating Ratios                                                   Return on average assets                      1.11%      1.13%      1.03% Return on average equity                      11.17%     11.67%     10.72% Return on average tangible equity             12.49%     13.12%     12.25% Average equity / average assets               9.93%      9.66%      9.58% Book value per common share (period-end)      $9.14     $8.93     $7.63 Tangible book value per common share          $8.11     $7.90     $6.60 (period-end) Non-Financial Information (Period-End)                             Common stockholders of record                 551        554        563 Full-time equivalent staff                    178        174        163  CONTACT: Investor Inquiries:          Joseph D. Gangemi          VP, Investor Relations          (908) 206-2863                   France Delle Donne          VP, Director of          Communications & PR          (908) 206-2668  
Press spacebar to pause and continue. Press esc to stop.