Center Bancorp, Inc. Reports Net Income Available to Common Shareholders of $4.9 Million or $0.30 Per Share for the First

Center Bancorp, Inc. Reports Net Income Available to Common Shareholders of
$4.9 Million or $0.30 Per Share for the First Quarter of 2013, Representing a
19% Increase

UNION, N.J., April 25, 2013 (GLOBE NEWSWIRE) -- Center Bancorp, Inc.
(Nasdaq:CNBC) (the "Corporation", or "Center"), parent company of Union Center
National Bank ("UCNB" or the "Bank"), reported operating results for the first
quarter ended March 31, 2013. Net income available to common stockholders
amounted to $4.9 million, or $0.30 per fully diluted common share, for the
quarter ended March 31, 2013, an increase of $778,000 or approximately 19
percent as compared with net income available to common stockholders of $4.1
million, or $0.25 per fully diluted common share, for the quarter ended March
31, 2012.

"Our first quarter operating performance remained strong with a continued
improvement in our asset quality profile. We continued to move forward with
momentum in expanding our presence in key markets with the announcement of our
new Princeton office, our first location in Mercer County. This continues our
goal of expanding our presence and visibility in markets we are drawing
business from, allowing us to solidify and expand our service relationships.
These types of actions, supported by our core earnings performance and
strategic growth, create incremental shareholder value," said Anthony C.
Weagley, President & Chief Executive Officer of Union Center National Bank.

Mr. Weagley added: "We are pleased with this quarter's earnings and believe
that our 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. Margins were relatively stable and are poised for an
increase. We were challenged this quarter by the level of payoffs that we
experienced, which dampened the solid new loan growth that was achieved.
Nevertheless, the sequential growth that we have been experiencing in loans
has enabled us to buck the current industry trends of soft loan growth across
the industry, thanks to our solid pipelines and core loan growth. Small
businesses lending remains strong despite the continued uncertainty about the
economic recovery and broader fiscal uncertainty. Our current targeted net
growth for the second quarter will achieve our year-on-year growth
projection."

                     Highlights for the quarter include:

  oStrong balance sheet with improved credit trends compared to prior year.
    
  oAt March 31, 2013, total loans amounted to $879.4 million, an increase of
    $90.8 million compared to total loans at March 31, 2012, in part as a
    result of the Saddle River Valley Bank transaction completed in the third
    quarter of 2012.
    
  oReduction in non-performing assets, to 0.26 percent of total assets at
    March 31, 2013, compared to 0.59 percent at March 31, 2012 and 0.31
    percent at December 31, 2012. The allowance for loan losses as a
    percentage of total non-performing loans was 390.7 percent at March 31,
    2013 compared to 119.1 percent at March 31, 2012 and 278.9 percent at
    December 31, 2012.
    
  oThe Tier 1 leverage capital ratio was 9.31 percent at March 31, 2013,
    compared to 9.21 percent at March 31, 2012, and 9.02 percent at December
    31, 2012, exceeding regulatory guidelines in all periods.
    
  oTangible book value per common share rose to $8.36 at March 31, 2013,
    compared to $6.98 at March 31, 2012 and $8.11 at December 31, 2012.
    
  oThe efficiency ratio for the first quarter of 2013 on an annualized basis
    was 48.5 percent as compared to 49.3 percent in the first quarter of 2012
    and 46.9 percent in the fourth quarter of 2012.
    
  oDeposits increased $128.8 million to $1.28 billion at March 31, 2013, from
    $1.15 billion at March 31, 2012, in part as a result of the Saddle River
    Valley Bank transaction.

Non-performing assets (NPAs) at the end of the first quarter totaled $4.2
million, or 0.26 percent of total assets, as compared with $5.0 million, or
0.31 percent, at December 31, 2012 and $8.7 million, or 0.59 percent, at March
31, 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.

                                                                  
Selected Financial Ratios                                        
(unaudited; annualized where                                       
applicable)
                                                                  
As of or for the quarter ended:    3/31/13  12/31/12  9/30/12  6/30/12 3/31/12
Return on average assets           1.23%    1.11%     1.13%    1.16%   1.16%
Return on average equity           12.09%   11.17%    11.67%   11.96%  12.05%
Net interest margin (tax           3.31%    3.32%     3.28%    3.29%   3.39%
equivalent basis)
Loans / deposits ratio             68.58%   68.07%    67.28%   68.70%  68.36%
Stockholders' equity / total       10.23%   9.86%     9.75%    9.86%   9.62%
assets
Efficiency ratio (1)               48.5%    46.9%     47.7%    47.1%   49.3%
Book value per common share        $ 9.39  $ 9.14   $ 8.93  $ 8.36 $ 8.01
Return on average tangible equity  13.49%   12.49%    13.12%   13.53%  13.70%
(1)
Tangible common stockholders'      8.58%    8.22%     8.09%    8.08%   7.81%
equity / tangible assets (1)
Tangible book value per common     $ 8.36   $ 8.11    $ 7.90   $ 7.33  $ 6.98
share (1)

(1)Information reconciling non-GAAP measures to GAAP measures is presented
elsewhere in this press release.

Net Interest Income

For the three months ended March 31, 2013, total interest income on a fully
taxable equivalent basis increased $0.9 million or 6.3 percent, to $14.1
million, compared to the three months ended March 31, 2012. Total interest
expense decreased by $316,000, or 10.4 percent, to $2.7 million, for the three
months ended March 31, 2013, 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 March 31, 2013, increasing $1.2 million, or 11.0 percent,
from $10.8 million for the comparable period in 2012. Compared to 2012, for
the three months ended March 31, 2013, average interest earning assets
increased $172.6 million while net interest spread and margin, on a
tax-equivalent basis, decreased on an annualized basis by 11 basis points and
8 basis points, respectively. For the quarter ended March 31, 2013, the
Corporation's net interest margin on a fully taxable equivalent annualized
basis decreased to 3.31 percent as compared to 3.39 percent for the same three
month period in 2012.

The 10.4 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 17 basis points to 0.90 percent from 1.07
percent for the quarter ended March 31, 2012 and on a linked sequential
quarter decreased 2 basis points compared to the fourth quarter of 2012.For
the quarter ended March 31, 2013, the Corporation's annualized net interest
spread decreased to 3.17 percent as compared to 3.28 percent for the same
three month period in 2012.

Commenting on the Corporation's net interest margins, Mr. Weagley remarked:
"We stabilized margins during the period, but continue to lag our targeted
goals as a result of a continued high liquidity pool carried during the
periods, which has not been entirely offset by the projected investing
activity.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 as we move through the second quarter of
2013."

Earnings Summary for the Period Ended March 31, 2013

The following table presents 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:  3/31/13    12/31/12   9/30/12    6/30/12    3/31/12
Net interest income     $11,370   $11,422   $11,183   $10,546   $10,345
Provision for loan      —          100        225        (107)      107
losses
Net interest income
afterprovision for     11,370     11,322     10,958     10,653     10,238
loan losses
Other income            1,845      1,016      2,635      1,604      1,955
Other expense           6,538      6,193      7,507      5,690      5,807
Income before income    6,677      6,145      6,086      6,567      6,386
tax expense
Income tax expense      1,753      1,676      1,632      2,214      2,155
Net income              $4,924    $4,469    $4,454    $4,353    $4,231
Net income available   $4,868    $4,441    $4,426    $4,269    $4,090
to common stockholders
Earnings per common                                             
share:
Basic                   $0.30     $0.27     $0.27     $0.26     $0.25
Diluted                 $0.30     $0.27     $0.27     $0.26     $0.25
Weighted average common                                         
shares outstanding:
Basic                   16,348,215 16,347,564 16,347,088 16,333,653 16,332,327
Diluted                 16,373,588 16,363,698 16,362,635 16,341,767 16,338,162

Other Income

Other income decreased $110,000 for the first quarter of 2013 compared with
the same period in 2012.During the first quarter of 2013, the Corporation
recorded net investment securities gains of $319,000 compared to $937,000 in
net investment securities gains for the same period last year. Excluding net
securities gains, the Corporation recorded other income of $1.5 million for
the three months ended March 31, 2013 compared to other income, excluding net
securities gains, of $1.0 million for the first quarter of 2012 and $1.2
million for the three months ended December 31, 2012.The increase in other
income in the first quarter of 2013 when compared to the first quarter of 2012
(excluding securities losses/gains) was primarily from an increase of $137,000
in other fees, $29,000 in loan related fees, an increase in bank owned life
insurance income of $314,000, which include $291,000 in tax free proceeds in
excess of contract value on the death of one participant, and an increase of
$56,000 in annuities and insurance commissions.

The following table presents the components of other income for the periods
indicated.

(in thousands, unaudited)                                          
For the quarter ended:                3/31/13 12/31/12 9/30/12 6/30/12 3/31/12
Service charges on deposit accounts   $289   $324    $333   $287   $314
Loan related fees                     139     220      85      95      110
Net gains on sales of loans held for  138     170      88      100     126
sale
Annuities and insurance commissions   100     67       45      48      44
Debit card and ATM fees               117     125      126     134     132
Bank-owned life insurance             565     282      239     246     251
Net investment securities gains       319     (201)    763     513     937
(losses)
Bargain gain on acquisition           —       —        899     —       —
Other fees                            178     29       57      181     41
Total other income                   $1,845 $1,016  $2,635 $1,604 $1,955

Other Expense

Total other expense for the first quarter of 2013 amounted to $6.5 million,
which was approximately $345,000 or 5.3 percent higher than other expense for
the three months ended December 31, 2012 and primarily related to an increase
in employee salaries and benefits, whichincreased $285,000.The increase from
the last quarter in 2012 includes the acquisition of the assets of Saddle
River Valley Bank and, to a lesser extent, normal merit increases in salaries
and higher benefit costs. Other increases contributing to the rise in
operating overhead included FDIC insurance, marketing and advertising, other
real estate owned and all other expense. These increases were partially offset
by decreases in occupancy and equipment expense of $36,000, and professional
and consulting expenses of $41,000.

The following table presents the components of other expense for the periods
indicated.

(in thousands, unaudited)                                          
For the quarter ended:                3/31/13 12/31/12 9/30/12 6/30/12 3/31/12
Salaries                              $2,653 $2,495  $2,505 $2,347 $2,344
Employee benefits                     837     710      688     708     774
Occupancy and equipment               906     942      739     606     700
Professional and consulting           219     260      277     294     246
Stationery and printing               85      100      69      96      84
FDIC Insurance                        313     293      292     270     299
Marketing and advertising             101     35       64      56      31
Computer expense                      353     338      366     362     353
Bank regulatory related expenses      90      82       77      75      78
Postage and delivery                  56      61       55      71      79
ATM related expenses                  71      72       64      69      62
Other real estate owned, net          19      1        65      22      62
Amortization of core deposit          10      10       10      11      13
intangible
Repurchase agreement prepayment and   —       —        1,012   —       —
termination fee
Acquisition cost                      —       10       472     —       —
All other expenses                    825     784      752     703     682
Total other expense                   $6,538 $6,193  $7,507 $5,690 $5,807

The increase in other expense for the three months ended March 31, 2013, when
compared to the quarter ended March 31, 2012, was approximately $731,000.
Increases primarily included salaries and benefit expense of $372,000,
occupancy and equipment expense of $206,000, FDIC insurance of $14,000,
marketing and advertising expense of $70,000, bank regulatory related expenses
of $12,000, ATM related expenses of $9,000 and all other expenses of $143,000.
These increases were partially offset by decreases of $27,000 in professional
and consulting, $23,000 in postage and delivery and $43,000 in other real
estate owned expense.

Statement of Condition Highlights at March 31, 2013

  oContinued strength in balance sheet with total assets amounted to $1.6
    billion at March 31, 2013.
    
  oTotal loans were $879.4 million at March 31, 2013, increasing $90.8
    million, or 11.5 percent, from March 31, 2012.Total real estate loans
    increased $58.6 million, or 10.6 percent, from March 31, 2012. Commercial
    loans increased $32.2 million, or 13.7 percent, year over year.
    
  oInvestment securities totaled $536.2 million at March 31, 2013, reflecting
    an increase of $11.6 million or 2.2 percent from March 31, 2012.
    
  oDeposits totaled $1.28 billion at March 31, 2013, increasing $128.8
    million, or 11.2 percent, since March 31, 2012.Total Demand, Savings,
    Money Market, and certificates of deposit less than $100,000 increased
    $142.3 million or 13.7 percent from March 31, 2012. 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 $151.2 million at March 31, 2013, decreasing $15.0
    million from March 31, 2012, 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 table presents condensed statements of condition data as of the
dates indicated.

Condensed Consolidated Statements of Condition (unaudited)
(in thousands)                                                 
At quarter ended:  3/31/13     12/31/12    9/30/12     6/30/12     3/31/12
Cash and due from  $116,755   $104,134   $100,106  $73,668    $78,207
banks
Interest bearing
deposits with      —           2,004       2,002       12,000      —
banks
Investment                                                     
securities:
Available for sale 458,004     496,815     509,605     467,190     454,994
Held to maturity   78,212      58,064      56,503      62,997      69,610
Loans held for
sale, at fair      774         1,491       1,055       501         2,060
value
Loans              879,387     889,672     869,998     806,953     788,562
Allowance for loan (10,232)    (10,237)    (10,240)    (10,221)    (9,754)
losses
Restricted
investment in bank 8,966       8,964       8,964       9,139       9,233
stocks, at cost
Premises and       13,544      13,563      13,564      12,218      12,266
equipment, net
Goodwill           16,804      16,804      16,804      16,804      16,804
Core deposit       45          54          64          73          85
intangible
Bank-owned life    34,935      34,961      29,679      29,440      29,194
insurance
Other real estate  1,536       1,300       —           453         558
owned
Other assets       11,065      12,176      13,975      19,807      24,776
Total assets      $1,609,795 $1,629,765 $1,612,079 $1,501,022 $1,476,595
Deposits           $1,282,223 $1,306,922 $1,293,013 $1,174,649 $1,153,473
Borrowings         151,155     151,155     151,205     166,262     166,155
Other liabilities  11,664      10,997      10,676      12,128      14,886
Stockholders'      164,753     160,691     157,185     147,983     142,081
equity
Total liabilities
and stockholders'  $1,609,795 $1,629,765 $1,612,079 $1,501,022 $1,476,595
equity

The following table reflects the composition of the Corporation's deposits as
of the dates indicated.

Deposits                                                       
(unaudited)
(in thousands)                                                 
At quarter ended:  3/31/13     12/31/12    9/30/12     6/30/12     3/31/12
Demand:                                                        
Non-interest       $213,794   $215,071   $192,321   $181,282   $172,342
bearing
Interest-bearing   207,427     217,922     222,660     199,064     197,648
Savings            221,274     216,274     218,732     207,151     209,436
Money market       488,124     493,836     488,189     432,507     411,626
Time               151,604     163,819     171,111     154,645     162,421
Total deposits     $1,282,223 $1,306,922 $1,293,013 $1,174,649 $1,153,473

Loans

The Corporation's net loans in the first quarter of 2013 decreased $10.2
million, to $869.2 million at March 31, 2013, from $879.4 million at December
31, 2012.This includes allowance for loan losses of $10.2 million at both
March 31, 2013 and December 31, 2012.The loan growth during the period
amounted to approximately $64.1 million in new loans and advances during the
first quarter. This growth was offset in part by prepayments of $33.1 million
coupled with scheduled payments, maturities and payoffs of $41.1 million.
Average loans during the first quarter of 2013 totaled $873.9 million as
compared to $755.8 million during the first quarter of 2012, representing a
15.6 percent increase.

At the end of the first quarter of 2013, the loan portfolio remained well
diversified with commercial and industrial (C&I) loans, including
owner-occupied commercial real estate loans, accounting for 30.3 percent of
the loan portfolio, commercial real estate loans representing 49.1 percent of
the loan portfolio, and consumer and other loans representing 16.6 percent of
the loan portfolio. Construction and development loans accounted for only 4.0
percent of the loan portfolio. The loan volume increase within the portfolio
amounted to $102.9 million in commercial and commercial real estate loans,
offset by decreases of $9.5 million in construction loans and $2.4 million in
residential mortgage loans. At March 31, 2012, net loans totaled $778.8
million.

The following reflects the composition of the Corporation's loan portfolio as
of the dates indicated.

Loans (unaudited)                                                
(in thousands)                                                   
At quarter ended:            3/31/13   12/31/12  9/30/12   6/30/12   3/31/12
Real estate loans:                                               
Residential                  $ 145,228 $ 158,361 $ 162,070 $ 147,431 $ 147,607
Commercial                   431,771   428,673   424,574   381,348   371,855
Construction                 35,166    40,272    40,867    33,521    34,093
Total real estate loans      612,165   627,306   627,511   562,300   553,555
Commercial loans             266,762   261,791   242,008   244,294   234,549
Consumer and other loans     326       452       324       196       399
Total loans before deferred  879,253   889,549   869,843   806,790   788,503
fees and costs
Deferred costs, net          134       123       155       163       59
Total loans                  $ 879,387 $ 889,672 $ 869,998 $ 806,953 $ 788,562

At March 31, 2013, the Corporation had $212.7 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 $45.1 million in commercial and commercial real estate loans and
$5.6 million in residential mortgages expected to fund over the next 90 days.

Asset Quality

Non-accrual loans decreased from $3.6 million at December 31, 2012 to $2.6
million at March 31, 2013. Loans past due 90 days or more and still accruing
decreased marginally from $55,000 at December 31, 2012 to $54,000 at March 31,
2013.Other real estate owned at March 31, 2013 was $1.5 million, as compared
to $1.3 million at December 31, 2012.Both properties are currently being
marketed and the Corporation anticipates sales with no further losses.
Performing troubled debt restructured loans, which are performing loans,
remained stable at $6.81 million at December 31, 2012, $6.79 million at March
31, 2013 and $6.90 million at March 31, 2012 respectively.

The following table presents the components of non-performing assets and other
asset quality data for the periods indicated.

(dollars in thousands,                                         
unaudited)
As of or for the        3/31/13    12/31/12   9/30/12    6/30/12    3/31/12
quarter ended:
Non-accrual loans       $2,565    $3,616    $4,967    $3,943    $7,125
Loans 90 days or more
past due and still      54         55         570        1,026      1,062
accruing
Total non-performing    2,619      3,671      5,537      4,969      8,187
loans
Other real estate owned 1,536      1,300      —          453        558
Total non-performing    $4,155    $4,971    $5,537   $5,422    $8,745
assets
Performing troubled     $6,786    $6,813    $6,851    $8,736    $6,900
debt restructured loans
                                                               
Non-performing assets / 0.26%      0.31%      0.34%      0.36%      0.59%
total assets
Non-performing loans /  0.30%      0.41%      0.64%      0.62%      1.04%
total loans
Net charge-offs         $5        $103      $206      $(574)    $(45)
(recoveries)
Net charge-offs
(recoveries) / average  N/M        0.05%      0.10%      (0.29)%    (0.02)%
loans (1)
Allowance for loan      1.16%      1.15%      1.18%      1.27%      1.24%
losses / total loans
Allowance for loan
losses / non-performing 390.7%     278.9%     184.9%     205.7%     119.1%
loans
                                                               
Total assets            $1,609,795 $1,629,765 $1,612,079 $1,501,022 $1,476,595
Total loans             879,387    889,672    869,998    806,953    788,562
Average loans           873,916    864,829    850,059    790,382    755,813
Allowance for loan      10,232     10,237     10,240     10,221     9,754
losses
                                                               
(1)Annualized.                                                 
N/M – not meaningful                                            

At March 31, 2013, non-performing assets totaled $4.2 million, or 0.26 percent
of total assets, as compared with $8.7 million, or 0.59 percent, at March 31,
2012 and $5.0 million, or 0.31 percent, at December 31, 2012.The decrease
from March 31, 2012 reflects the ability to satisfactorily work out the
problem loans that exist.The largest component of the remaining non-accrual
loans is comprised of one relationship totaling $639,000, or 24.9 percent of
the total, secured by senior liens on a residential property, located in
Morris County, New Jersey. This loan has been restructured and is performing
and it is anticipated that it will be returned to a performing status in the
second quarter of 2013. The remaining loans are primarily residential
properties and are in the process of being worked out. Subsequent to March 31,
2013, a commercial property with a recorded value of $129,000 was resolved
with no further loss to its recorded value.

The allowance for loan losses at March 31, 2013 amounted to approximately
$10.2 million, or 1.16 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 1.24 percent of total loans at March 31, 2012. The
allowance for loan losses as a percentage of total non-performing loans was
390.7 percent at March 31, 2013 compared to 119.1 percent at March 31, 2012.

Capital

At March 31, 2013, total stockholders' equity amounted to $164.8 million, or
10.2 percent of total assets. Tangible common stockholders' equity was $136.8
million, or 8.58 percent of tangible assets, compared to 7.81 percent at March
31, 2012. Book value per common share was $9.39 at March 31, 2013, compared to
$8.01 at March 31, 2012. Tangible book value per common share was $8.36 at
March 31, 2013 compared to $6.98 at March 31, 2012.

At March 31, 2013, the Corporation's Tier 1 leverage capital ratio was 9.31
percent, the Tier 1 risk-based capital ratio was 11.63 percent and the total
risk-based capital ratio was 12.46 percent. Tier 1 capital increased to
approximately $147.8 million at March 31, 2013 from $133.1 million at March
31, 2012, reflecting an increase in retained earnings.

At March 31, 2013, 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 table presents 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:       3/31/13   12/31/12  9/30/12   6/30/12   3/31/12
Net income                   $4,924   $4,469   $4,454   $4,353   $4,231
Average stockholders' equity $ 162,853 $ 160,006 $ 152,686 $ 145,607 $ 140,411
Less:
Average goodwill and other   16,855    16,864    16,874    16,884    16,897
intangible assets
Average tangible             $145,998 $143,142 $135,812 $128,723 $123,514
stockholders' equity
                                                                
Return on average            12.09%    11.17%    11.67%    11.96%    12.05%
stockholders' equity
Add:
Average goodwill and other   1.40%     1.32%     1.45%     1.57%     1.65%
intangible assets
Return on average tangible   13.49%    12.49%    13.12%    13.53%    13.70%
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 table presents 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:       3/31/13    12/31/12   9/30/12    6/30/12    3/31/12
Common shares           16,348,915 16,347,915 16,347,088 16,347,088 16,332,327
outstanding
Stockholders' equity    $164,753  $160,691  $157,185  $147,983  $142,081
Less: Preferred stock   11,250     11,250     11,250     11,250     11,250
Less: Goodwill and      16,849     16,858     16,868     16,877     16,889
other intangible assets
Tangible common         $136,654  $132,583  $129,067  $119,856  $113,942
stockholders' equity
                                                               
Book value per common   $9.39     $9.14     $8.93     $8.36     $8.01
share
Less: Goodwill and      1.03       1.03       1.03       1.03       1.03
other intangible assets
Tangible book value per $8.36     $8.11     $7.90     $7.33     $6.98
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 table presents 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:       3/31/13    12/31/12   9/30/12    6/30/12    3/31/12
Total assets            $1,609,795 $1,629,765 $1,612,079 $1,501,022 $1,476,595
Less: Goodwill and      16,849     16,858     16,868     16,877     16,889
other intangible assets
Tangible assets         $1,592,946 $1,612,907 $1,595,211 $1,484,145 $1,459,706
                                                               
Total stockholders'     10.23%     9.86%      9.75%      9.86%      9.62%
equity / total assets
Tangible common
stockholders' equity /  8.58%      8.22%      8.09%      8.08%      7.81%
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:                3/31/13 12/31/12 9/30/12 6/30/12 3/31/12
Other income                          $1,845 $1,016  $2,635 $1,604 $1,955
Less: Net investment securities gains 319     (201)    763     513     937
(losses)
Less: Bargain gain on acquisition     —       —        899     —       —
Other income, excluding net
investment                            $1,526 $1,217  $973   $1,091 $1,018
securities gains ( 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:            3/31/13  12/31/12 9/30/12  6/30/12  3/31/12
Other expense                     $6,538  $6,193  $7,507  $5,690  $5,807
Less: Repurchase agreement        —        —        1,012    —        —
termination fee
Less: Acquisition cost            —        10       472      —        —
Other expense, excluding          $6,538  $6,183  $6,023  $5,690  $5,807
extraordinary items
                                                                 
Net interest income (tax          $11,950 $11,969 $11,663 $10,990 $10,761
equivalent basis)
Other income, excluding net       1,526    1,217    973      1,091    1,018
investment securities gains
Total                             $13,476 $13,186 $12,636 $12,081 $11,779
                                                                 
Efficiency ratio                  48.5%    46.9%    47.7%    47.1%    49.3%

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    3/31/13     12/31/12    9/30/12     6/30/12     3/31/12
ended:
Investment                                                     
securities
Available for sale $503,223   $517,179   $508,864   $473,963   $443,109
Held to maturity   65,378     58,929     60,275     66,626     72,401
Loans              873,916     864,829     850,059     790,382     755,813
Allowance for loan (10,229)    (10,188)    (10,197)    (9,813)     (9,683)
losses
All other assets   171,703     181,306     172,032     177,100     199,631
Total assets       $1,603,991 $1,612,055 $1,581,033 $1,498,258 $1,461,271
Non-interest       $212,860   $205,278   $183,858   $173,248   $167,921
bearing deposits
Interest-bearing   1,061,261   1,079,351   1,066,849   1,002,230   976,958
deposits
Borrowings         151,488     151,364     164,294     166,299     166,375
Other liabilities  15,529      16,056      13,346      10,874      9,606
Stockholders'      162,853     160,006     152,686     145,607     140,411
equity
Total liabilities
and stockholders'  $1,603,991 $1,612,055 $1,581,033 $1,498,258 $1,461,271
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,Englewood, Madison,
Millburn/Vauxhall, Morristown, Oakland, Saddle River, Springfield, and Summit,
New Jersey. Center received approval from the Office of the Comptroller of the
Currency to open a Private Banking and Loan Production Office in Princeton,
NJ. The Bank's primary market area is comprised of central and northern New
Jersey.

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 future margin performance, the Bank's ability to market
non-performing assets, the performance of restructured assets and other
aspects of the Corporation's future performance ) 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

(in thousands, except for share and per share data)   March 31,   December 31,
                                                      2013        2012
                                                     (Unaudited) 
ASSETS                                                           
Cash and due from banks                               $ 116,755   $ 104,134
Interest bearing deposits with banks                  —           2,004
Total cash and cash equivalents                       116,755     106,138
Investment securities:                                           
Available for sale                                    458,004     496,815
Held to maturity (fair value of $81,921 at March 31,  78,212      58,064
2013 and $62,431 atDecember 31, 2012)
Loans held for sale                                   774         1,491
Loans                                                 879,387     889,672
Less: Allowance for loan losses                       10,232      10,237
Net loans                                             869,155     879,435
Restricted investment in bank stocks, at cost         8,966       8,964
Premises and equipment, net                           13,544      13,563
Accrued interest receivable                           6,423       6,849
Bank-owned life insurance                             34,935      34,961
Goodwill                                              16,804      16,804
Prepaid FDIC assessments                              525         811
Other real estate owned                               1,536       1,300
Due from brokers for investment securities            718         —
Other assets                                          3,444       4,570
Total assets                                          $ 1,609,795 $ 1,629,765
                                                                
LIABILITIES                                                      
Deposits:                                                        
Non-interest bearing                                  $ 213,794   $ 215,071
Interest-bearing:                                                
Time deposits $100 and over                           99,687      110,835
Interest-bearing transaction, savings and time        968,742     981,016
deposits less than $100
Total deposits                                        1,282,223   1,306,922
Long-term borrowings                                  146,000     146,000
Subordinated debentures                               5,155       5,155
Accounts payable and accrued liabilities              11,664      10,997
Total liabilities                                     1,445,042   1,469,074
                                                                
STOCKHOLDERS' EQUITY                                             
Preferred stock, $1,000 liquidation value per share,
authorized 5,000,000 shares; issued and outstanding
11,250 shares of Series B preferred stock at March    11,250      11,250
31, 2013 and December 31, 2012 total liquidation
value of $11,250
Common stock, no par value, authorized 25,000,000
shares; issued 18,477,412 shares at March 31, 2013
andDecember 31, 2012; outstanding 16,348,915 shares  110,056     110,056
at March 31, 2013 and 16,347,915 shares at December
31, 2012
Additional paid in capital                            4,820       4,801
Retained earnings                                     50,690      46,753
Treasury stock, at cost (2,128,497 common shares at             
March 31, 2013 and 2,129,497 common shares December   (17,230)   (17,232)
31, 2012)
Accumulated other comprehensive income                5,167       5,063
Total stockholders' equity                           164,753     160,691
Total liabilities and stockholders' equity           $ 1,609,795 $ 1,629,765



CENTER BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)

                                                        Three Months Ended
                                                         March 31,
(in thousands, except for share and per share data)      2013       2012
                                                                  
Interest income                                                    
Interest and fees on loans                               $ 9,923    $ 9,385
Interest and dividends on investment securities:                   
Taxable                                                 2,972      3,088
Tax-exempt                                              1,076      773
Dividends                                                131        149
Interest on federal funds sold and other                 2          —
short-terminvestment
Total interest income                                   14,104     13,395
Interest expense                                                   
Interest on certificates of deposit $100 or more         239        252
Interest on other deposits                               1,045      1,156
Interest on borrowings                                   1,450      1,642
Total interest expense                                  2,734      3,050
Net interest income                                      11,370     10,345
Provision for loan losses                                —          107
Net interest income after provision for loan losses      11,370     10,238
Other income                                                       
Service charges, commissions and fees                    406        446
Annuities and insurance commissions                      100        44
Bank-owned life insurance                                565        251
Loan related fees                                        139        110
Net gains on sale of loans held for sale                 138        126
Other                                                    178        41
Other-than-temporary impairment losses on investment     (24)       (58)
securities
Net gains on sale of investment securities               343        995
Net investment securities gains (losses)                319        937
Total other income                                      1,845      1,955
Other expense                                                      
Salaries and employee benefits                           3,490      3,118
Occupancy and equipment                                  906        700
FDIC insurance                                           313        299
Professional and consulting                              219        246
Stationery and printing                                  85         84
Marketing and advertising                                101        31
Computer expense                                         353        353
Other real estate owned, net                             19         62
Other                                                    1,052      914
Total other expense                                     6,538      5,807
Income before income tax expense                         6,677      6,386
Income tax expense                                       1,753      2,155
Net Income                                               4,924      4,231
Preferred stock dividends and accretion                  56         141
Net income available to common stockholders             $ 4,868    $ 4,090
Earnings per common share                                          
Basic                                                    $ 0.30     $ 0.25
Diluted                                                  $ 0.30     $ 0.25
Weighted Average Common Shares Outstanding                         
Basic                                                    16,348,215 16,332,327
Diluted                                                  16,373,588 16,338,162



CENTER BANCORP, INC. AND SUBSIDIARIES
SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA
(Unaudited)
                                         
                                         Three Months Ended
(in thousands, except for share and per
share data) (annualized where             3/31/2013  12/31/2012 3/31/2012
applicable)
Statements of Income Data                                                  
                                                             
Interest income                           $14,104  $14,263   $13,395
Interest expense                          2,734      2,841      3,050
Net interest income                       11,370     11,422     10,345
Provision for loan losses                 —          100        107
Net interest income after provision for   11,370     11,322     10,238
loan losses
Other income                              1,845      1,016      1,955
Other expense                             6,538      6,193      5,807
Income before income tax expense          6,677      6,145      6,386
Income tax expense                       1,753      1,676      2,155
Net income                                $4,924    $4,469    $4,231
Net income available to common            $4,868    $4,441    $4,090
stockholders
Earnings per Common Share                                     
Basic                                     $0.30     $0.27     $0.25
Diluted                                   $0.30     $0.27     $0.25
Statements of Condition Data (Period-End)                     
Investment securities:                                        
Available for sale                        $458,004  $496,815  $454,994
Held for maturity( fair value $81,921,    78,212     58,064    69,610
$62,431 and $72,403)
Loans held for sale                       774        1,491      2,060
Loans                                     879,387    889,672    788,562
Total assets                              1,609,795  1,629,765  1,476,595
Deposits                                  1,282,223  1,306,922  1,153,473
Borrowings                                151,155    151,155    166,155
Stockholders' equity                      164,753    160,691    142,081
Common Shares Dividend Data                                   
Cash dividends                            $899      $899      $490
Cash dividends per share                  $0.055    $0.055    $0.030
Dividend payout ratio                     18.47%     20.24%     11.98%
Weighted Average Common Shares                                
Outstanding
Basic                                     16,348,215 16,347,564 16,322,327
Diluted                                   16,373,588 16,363,698 16,338,162
Operating Ratios                                              
Return on average assets                  1.23%      1.11%      1.16%
Return on average equity                  12.09%     11.17%     12.05%
Return on average tangible equity         13.49%     12.49%     13.70%
Average equity / average assets           10.15%     9.93%      9.61%
Book value per common share (period-end)  $9.39     $9.14     $8.01
Tangible book value per common share      $8.36     $8.11    $6.98
(period-end)
Non-Financial Information (Period-End)                        
Common stockholders of record             536        551        552
Full-time equivalent staff                173        178        170

CONTACT: Investor Inquiries:
         Joseph D. Gangemi
         Senior Vice President
         Investor Relations
         908.206.2863
        
         Media Inquiries :
         France Delle Donne
         Senior Vice President
         Communications & PR
         908.206.2668

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