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

Center Bancorp, Inc. Reports Net Income Available to Common Shareholders of
$4.9 Million or $0.30 Per Share for the Second Quarter of 2013, Representing a
14.7% Increase

UNION, N.J., July 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
second quarter ended June 30, 2013. Net income available to common
stockholders amounted to $4.9 million, or $0.30 per fully diluted common
share, for the quarter ended June 30, 2013, an increase of $626,000 or
approximately 14.7 percent as compared with net income available to common
stockholders of $4.3 million, or $0.26 per fully diluted common share, for the
quarter ended June 30, 2012.

"Second quarter earnings remained strong with a continued improvement in our
asset quality profile. We continued with momentum in expanding our presence in
key markets, with the opening of our new Princeton office, our first location
in Mercer County, New Jersey. 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.

For the six months ended June 30, 2013, net income available to common
stockholders amounted to $9.8 million, or $0.60 per fully diluted common
share, compared to $8.4 million, or $0.51 per fully diluted common share, for
the same period in 2012.

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
improvement with further loan growth. Loans achieved sequential growth with
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 third quarter
remains on track with our year-on-year growth projection."

                     Highlights for the quarter include:

  *Strong balance sheet with improved credit trends compared to prior year.
    
  *At June 30, 2013, total loans amounted to $902.8 million, an increase of
    $95.9 million compared to total loans at June 30, 2012, due primarily to
    organic growth and as a result of the Saddle River Valley Bank transaction
    completed in the third quarter of 2012.
    
  *Reduction in non-performing assets, to 0.17 percent of total assets at
    June 30, 2013, compared to 0.36 percent at June 30, 2012 and 0.31 percent
    at December 31, 2012. The allowance for loan losses as a percentage of
    total non-performing loans was 398.4 percent at June 30, 2013 compared to
    205.7 percent at June 30, 2012 and 278.9 percent at December 31, 2012.
    
  *The Tier 1 leverage capital ratio was 9.50 percent at June 30, 2013,
    compared to 9.23 percent at June 30, 2012, and 9.02 percent at December
    31, 2012, exceeding regulatory guidelines in all periods.
    
  *Tangible book value per common share rose to $8.14 at June 30, 2013,
    compared to $7.33 at June 30, 2012 and $8.11 at December 31, 2012.
    
  *The efficiency ratio for the second quarter of 2013 on an annualized basis
    was 47.0 percent as compared to 47.1 percent in the second quarter of 2012
    and 46.9 percent in the fourth quarter of 2012.
    
  *Deposits increased $106.2 million to $1.28 billion at June 30, 2013, from
    $1.17 billion at June 30, 2012, in part as a result of the Saddle River
    Valley Bank transaction.

Non-performing assets (NPAs) at the end of the second quarter totaled $2.8
million, or 0.17 percent of total assets, as compared with $5.0 million, or
0.31 percent, at December 31, 2012 and $5.4 million, or 0.36 percent, at June
30, 2012.

Selected Financial Ratios
(unaudited; annualized where                                      
applicable)
                                                                  
As of or for the quarter ended:       6/30/13 3/31/13 12/31/12 9/30/12 6/30/12
Return on average assets              1.22%   1.23%   1.11%    1.13%   1.16%
Return on average equity              11.84%  12.09%  11.17%   11.67%  11.96%
Net interest margin (tax equivalent   3.28%   3.31%   3.32%    3.28%   3.29%
basis)
Loans / deposits ratio                70.48%  68.58%  68.07%   67.28%  68.70%
Stockholders' equity / total assets   10.04%  10.23%  9.86%    9.75%   9.86%
Efficiency ratio (1)                  47.0%   48.5%   46.9%    47.7%   47.1%
Book value per common share           $ 9.17 $ 9.39 $ 9.14  $ 8.93 $ 8.36
Return on average tangible equity (1) 13.17%  13.49%  12.49%   13.12%  13.53%
Tangible common stockholders' equity  8.38%   8.58%   8.22%    8.09%   8.08%
/ tangible assets (1)
Tangible book value per common share  $ 8.14  $ 8.36  $ 8.11   $ 7.90  $ 7.33
(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 June 30, 2013, total interest income on a fully
taxable equivalent basis increased $619,000 or 4.4 percent, to $14.6 million,
compared to the three months ended June 30, 2012. Total interest expense
decreased by $199,000, or 6.7 percent, to $2.8 million, for the three months
ended June 30, 2013, compared to the same period last year. Net interest
income on a fully taxable equivalent basis was $11.8 million for the three
months ended June 30, 2013, increasing $0.8 million, or 7.44 percent, from
$11.0 million for the comparable period in 2012. Compared to 2012, for the
three months ended June 30, 2013, average interest earning assets increased
$104.6 million while net interest spread and margin, on a tax-equivalent
basis, decreased on an annualized basis by 3 basis points and 1 basis point,
respectively. For the quarter ended June 30, 2013, the Corporation's net
interest margin on a fully taxable equivalent annualized basis decreased to
3.28 percent as compared to 3.29 percent for the same three month period in
2012.

The 6.7 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 10 basis points to 0.91 percent from 1.01 percent for
the quarter ended June 30, 2012 and on a linked sequential quarter increased 1
basis point compared to the first quarter of 2013.For the quarter ended June
30, 2013, the Corporation's annualized net interest spread decreased to 3.13
percent as compared to 3.16 percent for the same three month period in 2012.

For the six months ended June 30, 2013, net interest income on a fully taxable
equivalent basis amounted to $23.8 million, compared to $21.8 million for the
same period in 2012. For the six month period ended June 30, 2013, interest
income increased by $1.5 million while interest expense decreased by $515,000
from the same period last year. Compared to the same period in 2012, for the
six months ended June 30, 2013, average interest earning assets increased
$138.6 million while net interest spread and margin decreased on an annualized
tax-equivalent basis by 8 basis points and 5 basis points, respectively.

Earnings Summary for the Period Ended June 30, 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:  6/30/13    3/31/13    12/31/12   9/30/12    6/30/12
Net interest income     $11,228   $11,370   $11,422   $11,183   $10,546
Provision for loan      —          —          100        225        (107)
losses
Net interest income
afterprovision for     11,228     11,370     11,322     10,958     10,653
loan losses
Other income            1,707      1,845      1,016      2,635      1,604
Other expense           6,076      6,538      6,193      7,507      5,690
Income before income    6,859      6,677      6,145      6,086      6,567
tax expense
Income tax expense      1,936      1,753      1,676      1,632      2,214
Net income              $4,923    $4,924    $4,469    $4,454    $4,353
Net income available   $4,895    $4,868    $4,441    $4,426    $4,269
to common stockholders
Earnings per common                                             
share:
Basic                   $0.30     $0.30     $0.27     $0.27     $0.26
Diluted                 $0.30     $0.30     $0.27     $0.27    $0.26
Weighted average common shares outstanding:                        
Basic                   16,348,915 16,348,215 16,347,564 16,347,088 16,333,653
Diluted                 16,375,774 16,373,588 16,363,698 16,362,635 16,341,767

Other Income

Other income increased $103,000 for the second quarter of 2013 compared with
the same period in 2012.During the second quarter of 2013, the Corporation
recorded net investment securities gains of $600,000 compared to $513,000 in
net investment securities gains for the same period last year. Excluding net
securities gains, the Corporation recorded other income of $1.1 million for
the three months ended June 30, 2013 compared to other income, excluding net
securities gains, of $1.1 million for the second quarter of 2012 and $1.2
million for the three months ended December 31, 2012. Increases in other
income in the second quarter of 2013 when compared to the second quarter of
2012 (excluding securities gains) were primarily from an increase of $31,000
in service charges on deposit accounts, $19,000 in loan related fees, an
increase in bank owned life insurance income of $28,000, and an increase of
$98,000 in annuities and insurance commissions, offset by a decline of
$150,000 in other fees.

For the six months ended June 30, 2013, total other income decreased $7,000
compared to the same period in 2012, primarily as a result of $531,000 related
to lower net securities gains offset by increased income on bank owned life
insurance, annuities and loan fees. Excluding net securities gains and losses,
the Corporation recorded other income of $2.6 million for the six months ended
June 30, 2013 compared to other income, excluding net securities gains and
losses, of $2.1 million for the comparable period in 2012, an increase of
$524,000 or 24.8 percent.

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

(in thousands, unaudited)                                          
For the quarter ended:                6/30/13 3/31/13 12/31/12 9/30/12 6/30/12
Service charges on deposit accounts   $318   $289   $324    $ 333  $287
Loan related fees                     114     139     220      85      95
Net gains on sales of loans held for  91      138     170      88      100
sale
Annuities and insurance commissions   146     100     67       45      48
Debit card and ATM fees               133     117     125      126     134
Bank-owned life insurance             274     565     282      239     246
Net investment securities gains       600     319     (201)    763     513
(losses)
Bargain gain on acquisition           —       —       —        899     —
Other fees                            31      178     29       57      181
Total other income                   $1,707 $1,845 $1,016  $2,635 $1,604

Other Expense

Total other expense for the second quarter of 2013 amounted to $6.1 million,
which was approximately $462,000 or 7.1 percent lower than other expense for
the three months ended March 31, 2013 and primarily related to a decrease in
employee salaries and benefits, whichdecreased $155,000. The decrease from
the prior quarter in 2013 reflects lower benefit costs. Other decreases
contributing to the decrease in operating overhead included FDIC insurance,
marketing and advertising, occupancy and equipment and all other expense.
These decreases were partially offset by increases in other real estate owned
expense of $88,000, postage and delivery expense of $14,000, and professional
and consulting expenses of $11,000.

The increase in other expense for the three months ended June 30, 2013, when
compared to the quarter ended June 30, 2012, was approximately $386,000.
Increases primarily included salaries and benefit expense of $280,000,
occupancy and equipment expense of $205,000, marketing and advertising expense
of $6,000, and other real estate owned expenses of $85,000. These increases
were partially offset by decreases of $64,000 in professional and consulting,
$18,000 in stationery and printing, $19,000 in computer expense, and $62,000
in FDIC insurance expense.

For the six months ended June 30, 2013, total other expense increased $1.1
million, or 9.7 percent, compared to the same period in 2012. Increases
primarily included $652,000 in salaries and employee benefits, $411,000 in
occupancy and equipment, $76,000 in marketing and advertising, $42,000 in
other real estate owned expense, and $111,000 in other expenses. These
increases were partially offset by decreases in FDIC insurance expense of
$48,000, professional consulting expense of $91,000, stationery and printing
expense of $17,000, and computer expense of $19,000.

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

(in thousands, unaudited)                                  
For the quarter ended:               6/30/13 3/31/13 12/31/12 9/30/12  6/30/12
Salaries                             $2,652 $2,653 $2,495  $2,505  $2,347
Employee benefits                    683     837     710      688      708
Occupancy and equipment              811     906     942      739      606
Professional and consulting          230     219     260      277      294
Stationery and printing              78      85      100      69       96
FDIC Insurance                       208     313     293      292      270
Marketing and advertising            62      101     35       64       56
Computer expense                     343     353     338      366      362
Bank regulatory related expenses     82      90      82       77       75
Postage and delivery                 70      56      61       55       71
ATM related expenses                 65      71      72       64       69
Other real estate owned, net         107     19      1        65       22
Amortization of core deposit         8       10      10       10       11
intangible
Repurchase agreement prepayment and  —       —       —        1,012    —
termination fee
Acquisition cost                     —       —       10       472      —
All other expenses                   677     825     784      752      703
Total other expense                 $6,076 $6,538 $6,193  $7,507 $5,690

Commenting on the balance sheet, Mr. Weagley indicated: "We strengthened our
strong balance sheet and completed our purchase and assumption of Saddle River
Valley Bank, ending the second quarter with a strong Tier 1 ratio of 9.50%, up
from 9.31% in the first quarter. We also continue to see positive signs for
growth coupled with sustained asset quality."

Statement of Condition Highlights at June 30, 2013

  *Continued strength in balance sheet with total assets amounted to $1.6
    billion at June 30, 2013.
    
  *Total loans were $902.8 million at June 30, 2013, increasing $95.9
    million, or 11.9 percent, from June 30, 2012.Total real estate loans
    increased $62.5 million, or 11.1 percent, from June 30, 2012. Commercial
    loans increased $33.4 million, or 13.7 percent, year over year.
    
  *Investment securities totaled $556.6 million at June 30, 2013, reflecting
    an increase of $26.4 million or 5.0 percent from June 30, 2012.
    
  *Deposits totaled $1.28 billion at June 30, 2013, increasing $106.2
    million, or 9.0 percent, since June 30, 2012.Total Demand, Savings, Money
    Market, and certificates of deposit less than $100,000 increased $111.6
    million or 10.4 percent from June 30, 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.
    
  *Borrowings totaled $151.2 million at June 30, 2013, decreasing $15.1
    million from June 30, 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:  6/30/13     3/31/13     12/31/12    9/30/12     6/30/12
Cash and due from  $61,959    $116,755   $104,134   $100,106   $73,668
banks
Interest bearing
deposits with      —           —           2,004       2,002       12,000
banks
Investment                                                     
securities:
Available for     419,773     458,004     496,815     509,605     467,190
sale
Held to maturity  136,786     78,212      58,064      56,503      62,997
Loans held for
sale, at fair      585         774         1,491       1,055       501
value
Loans              902,822     879,387     889,672     869,998     806,953
Allowance for loan (10,202)    (10,232)    (10,237)    (10,240)    (10,221)
losses
Restricted
investment in bank 8,986       8,966       8,964       8,964       9,139
stocks, at cost
Premises and       13,456      13,544      13,563      13,564      12,218
equipment, net
Goodwill           16,804      16,804      16,804      16,804      16,804
Core deposit       36          45          54          64          73
intangible
Bank-owned life    35,209      34,935      34,961      29,679      29,440
insurance
Other real estate  220         1,536       1,300       —           453
owned
Other assets       19,264      11,065      12,176      13,975      19,807
 Total assets     $1,605,698 $1,609,795 $1,629,765 $1,612,079 $1,501,022
Deposits           $1,280,894 $1,282,223 $1,306,922 $1,293,013 $1,174,649
Borrowings         151,155     151,155     151,155     151,205     166,262
Other liabilities  12,364      11,664      10,997      10,676      12,128
Stockholders'      161,285     164,753     160,691     157,185     147,983
equity
Total liabilities
and stockholders'  $1,605,698 $1,609,795 $1,629,765 $1,612,079 $1,501,022
equity

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

Deposits                                                       
(unaudited)
(in thousands)                                                 
At quarter ended:  6/30/13     3/31/13     12/31/12    9/30/12     6/30/12
Demand:                                                        
Non-interest      $219,669   $213,794   $215,071   $192,321   $181,282
bearing
Interest-bearing  195,954     207,427     217,922     222,660     199,064
Savings            221,271     221,274     216,274     218,732     207,151
Money market       493,155     488,124     493,836     488,189     432,507
Time               150,845     151,604     163,819     171,111     154,645
Total deposits    $1,280,894 $1,282,223 $1,306,922 $1,293,013 $1,174,649

Loans

"Total loans achieved another milestone rising to$903 million during the
second quarter, due to our continued momentum of growing client relationships
and our loans coupled with the completion of the purchase and assumption of
Saddle River Valley Bank," commented Mr. Weagley."Outstanding loan balances
increased while at the same time lending opportunities continued to fuel the
Corporation's pipelines. These trends are expected to translate into strong
growth in thethird quarter," added Mr. Weagley.

The Corporation's net loans in the second quarter of 2013 increased $23.4
million, to $892.6 million at June 30, 2013, from $869.2 million at March 31,
2013.The allowance for loan losses amounted to $10.2 million at both June 30,
2013 and March 31, 2013.The loan growth during the period amounted to
approximately $88.5 million in new loans and advances during the second
quarter.This growth was offset in part by prepayments of $23.0 million
coupled with scheduled payments, maturities and payoffs of $42.2 million.
Average loans during the second quarter of 2013 totaled $888.2 million as
compared to $790.4 million during the second quarter of 2012, representing a
12.4 percent increase.

At the end of the second 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 30.8 percent of
the loan portfolio, commercial real estate loans representing 49.1 percent of
the loan portfolio, and consumer and other loans representing 15.8 percent of
the loan portfolio. Construction and development loans accounted for only 4.3
percent of the loan portfolio.The loan volume increase within the portfolio
amounted to $95.5 million in commercial and commercial real estate loans and
$5.0 million in construction loans, offset by a decrease of and $4.7 million
in residential mortgage loans. At June 30, 2012, net loans totaled $796.7
million.

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

Loans (unaudited)                                                
(in thousands)                                                   
At quarter ended:            6/30/13   3/31/13   12/31/12  9/30/12   6/30/12
Real estate loans:                                               
Residential                 $ 142,772 $ 145,228 $ 158,361 $ 162,070 $ 147,431
Commercial                  443,441   431,771   428,673   424,574   381,348
Construction               38,565    35,166    40,272    40,867    33,521
Total real estate loans      624,778   612,165   627,306   627,511   562,300
Commercial loans             277,734   266,762   261,791   242,008   244,294
Consumer and other loans     147       326       452       324       196
Total loans before deferred  902,659   879,253   889,549   869,843   806,790
fees and costs
Deferred costs, net          163       134       123       155       163
Total loans                 $ 902,822 $ 879,387 $ 889,672 $ 869,998 $ 806,953

At June 30, 2013, the Corporation had $239.2 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 $84.3 million in commercial and commercial real estate loans and
$990,000 in residential mortgages expected to fund over the next 90 days.

Asset Quality

Non-accrual loans decreased from $2.6 million at March 31, 2013 to $2.5
million at June 30, 2013. Other real estate owned at June 30, 2013 was
$220,000, as compared to $1.5 million at March 31, 2013. The remaining
property is under contract and scheduled to close in July with no further
material losses. Performing troubled debt restructured loans, which are
performing loans, had significantly decreased to $2.6 million at June 30, 2013
from $6.81 million at December 31, 2012 and $8.74 million at June 30, 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       6/30/13     3/31/13    12/31/12   9/30/12    6/30/12
quarter ended:
Non-accrual loans (1)  $2,508     $2,565    $3,616    $4,967    $3,943
Loans 90 days or more
past due and still     53          54         55         570        1,026
accruing
Total non-performing  2,561       2,619      3,671      5,537      4,969
loans
Other real estate      220         1,536      1,300      —          453
owned
Total non-performing  $2,781     $4,155    $4,971    $5,537    $5,422
assets
Performing troubled
debt restructured      $2,585     $6,786    $6,813    $6,851    $8,736
loans
                                                               
Non-performing assets  0.17%       0.26%      0.31%      0.34%      0.36%
/ total assets
Non-performing loans / 0.28%       0.30%      0.41%      0.64%      0.62%
total loans
Net charge-offs        $30        $5        $103      $206      $(574)
(recoveries)
Net charge-offs
(recoveries) / average 0.01%       N/M        0.05%      0.10%      (0.29)%
loans (2)
Allowance for loan     1.13%       1.16%      1.15%      1.18%      1.27%
losses / total loans
Allowance for loan
losses /               398.4%      390.7%     278.9%     184.9%     205.7%
non-performing loans
                                                               
Total assets           $1,605,698  $1,609,795 $1,629,765 $1,612,079 $1,501,022
Total loans            902,822     879,387    889,672    869,998    806,953
Average loans          888,175     873,916    864,829    850,059    790,382
Allowance for loan     10,202      10,232     10,237     10,240     10,221
losses
                                                               
(1)Six loans totaling $1.413 million or (56.3%) of the total non-accrual loan
balance are making payments.
(2)Annualized.

N/M – not meaningful

At June 30, 2013, non-performing assets totaled $2.8 million, or 0.17 percent
of total assets, as compared with $5.4 million, or 0.36 percent, at June 30,
2012 and $5.0 million, or 0.31 percent, at December 31, 2012. The decrease
from June 30, 2012 reflects the Corporation's ability to satisfactorily work
out certain problem loans. The largest component of the remaining non-accrual
loans is comprised of one relationship totaling $629,000, or 25.1 percent of
the total, secured by a senior lien on a residential property, located in
Morris County, New Jersey. This loan has been restructured, and is being
monitored for performance under the terms and conditions of the restructured
agreement. The remaining loans are primarily residential properties and are in
the process of being worked out.

The allowance for loan losses at June 30, 2013 amounted to approximately $10.2
million, or 1.13 percent of total loans. Excluding loans acquired from Saddle
River Valley Bank and carried at fair value, the coverage ratio was 1.18
percent, compared to 1.27 percent of total loans at June 30, 2012. The
allowance for loan losses as a percentage of total non-performing loans was
398.4 percent at June 30, 2013 compared to 205.7 percent at June 30, 2012.

Capital

At June 30, 2013, total stockholders' equity amounted to $161.3 million, or
10.0 percent of total assets. Tangible common stockholders' equity was $133.2
million, or 8.38 percent of tangible assets, compared to 8.08 percent at June
30, 2012. Book value per common share was $9.17 at June 30, 2013, compared to
$8.36 at June 30, 2012. Tangible book value per common share was $8.14 at June
30, 2013 compared to $7.33 at June 30, 2012.

At June 30, 2013, the Corporation's Tier 1 leverage capital ratio was 9.50
percent, the Tier 1 risk-based capital ratio was 11.83 percent and the total
risk-based capital ratio was 12.64 percent. Tier 1 capital increased to
approximately $151.8million at June 30, 2013 from $136.7 million at June 30,
2012, reflecting an increase in retained earnings.

At June 30, 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:       6/30/13   3/31/13   12/31/12  9/30/12   6/30/12
Net income                   $4,923   $4,924   $4,469   $4,454   $4,353
Average stockholders' equity $ 166,385 $ 162,853 $ 160,006 $ 152,686 $ 145,607
Less:
Average goodwill and other   16,845    16,855    16,864    16,874    16,884
intangible assets
Average tangible             $149,540 $145,998 $143,142 $135,812 $128,723
stockholders' equity
                                                                
Return on average            11.84%    12.09%    11.17%    11.67%    11.96%
stockholders' equity
Add:
Average goodwill and other   1.33%     1.40%     1.32%     1.45%     1.57%
intangible assets
Return on average tangible   13.17%    13.49%    12.49%    13.12%    13.53%
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:       6/30/13    3/31/13    12/31/12   9/30/12    6/30/12
Common shares           16,367,744 16,348,915 16,347,915 16,347,088 16,347,088
outstanding
Stockholders' equity    $161,285  $164,753  $160,691  $157,185  $147,983
Less: Preferred stock   11,250     11,250     11,250     11,250     11,250
Less: Goodwill and      16,840     16,849     16,858     16,868     16,877
other intangible assets
Tangible common         $133,195  $136,654  $132,583  $129,067  $119,856
stockholders' equity
                                                               
Book value per common   $9.17     $9.39     $9.14     $8.93     $8.36
share
Less: Goodwill and      1.03       1.03       1.03       1.03       1.03
other intangible assets
Tangible book value per $8.14     $8.36     $8.11     $7.90     $7.33
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:       6/30/13    3/31/13    12/31/12   9/30/12    6/30/12
Total assets            $1,605,698 $1,609,795 $1,629,765 $1,612,079 $1,501,022
Less: Goodwill and      16,840     16,849     16,858     16,868     16,877
other intangible assets
Tangible assets         $1,588,858 $1,592,946 $1,612,907 $1,595,211 $1,484,145
                                                               
Total stockholders'     10.04%     10.23%     9.86%      9.75%      9.86%
equity / total assets
Tangible common
stockholders' equity /  8.38%      8.58%      8.22%      8.09%      8.08%
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:                6/30/13 3/31/13 12/31/12 9/30/12 6/30/12
Other income                          $1,707 $1,845 $1,016  $2,635 $1,604
Less: Net investment securities gains 600     319     (201)    763     513
(losses)
Less: Bargain gain on acquisition     —       —       —        899     —
Other income, excluding net
investment securities gains (         $1,107 $1,526 $1,217  $973   $1,091
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 6/30/13      3/31/13     12/31/12    9/30/12     6/30/12
ended:
Other expense   $6,076      $6,538     $6,193     $7,507     $5,690
Less:
Repurchase      —            —           —           1,012       —
agreement
termination fee
Less:
Acquisition     —            —           10          472         —
cost
Other expense,
excluding       $6,076      $6,538     $6,183     $6,023     $5,690
extraordinary
items
                                                            
Net interest
income (tax     $11,810     $11,950    $11,969    $11,663    $10,990
equivalent
basis)
Other income,
excluding net
investment      1,107        1,526       1,217       973         1,091
securities
gains
Total          $12,917     $13,476    $13,186    $12,636    $12,081
                                                            
Efficiency      47.0%        48.5%       46.9%       47.7%       47.1%
ratio


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  6/30/13     3/31/13     12/31/12    9/30/12     6/30/12
ended:
Investment                                                               
securities
Available for   $457,484   $503,223   $517,179   $508,864   $473,963
sale
Held to         95,163    65,378     58,929     60,275     66,626
maturity
Loans            888,175     873,916     864,829     850,059     790,382
Allowance for    (10,214)    (10,229)    (10,188)    (10,197)    (9,813)
loan losses
All other assets 183,894     171,703     181,306     172,032     177,100
Total assets    $1,614,502 $1,603,991 $1,612,055 $1,581,033 $1,498,258
Non-interest     $219,965   $212,860   $205,278   $183,858   $173,248
bearing deposits
Interest-bearing 1,059,552   1,061,261   1,079,351   1,066,849   1,002,230
deposits
Borrowings       151,924     151,488     151,364     164,294     166,299
Other            16,676      15,529      16,056      13,346      10,874
liabilities
Stockholders'    166,385     162,853     160,006     152,686     145,607
equity
Total
liabilities and  $1,614,502 $1,603,991 $1,612,055 $1,581,033 $1,498,258
stockholders'
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 16 banking locations in Bergen, Mercer, Morris and
Union 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, Princeton
and Summit, New Jersey. Center opened a Private Banking and Loan Production
Office in Princeton, NJ in June 2013. 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)   June 30,    December 31,
                                                      2013        2012
                                                     (Unaudited) 
                                                                
ASSETS                                                           
Cash and due from banks                               $ 61,959    $ 104,134
Interest bearing deposits with banks                  —           2,004
Total cash and cash equivalents                      61,959      106,138
Investment securities:                                           
Available for sale                                   419,773     496,815
Held to maturity (fair value of $135,354 at June 30, 136,786     58,064
2013 and $62,431 atDecember 31, 2012)
Loans held for sale                                   585         1,491
Loans                                                 902,822     889,672
Less: Allowance for loan losses                       10,202      10,237
Net loans                                            892,620     879,435
Restricted investment in bank stocks, at cost         8,986       8,964
Premises and equipment, net                           13,456      13,563
Accrued interest receivable                           6,850       6,849
Bank-owned life insurance                             35,209      34,961
Goodwill                                              16,804      16,804
Prepaid FDIC assessments                              —           811
Other real estate owned                               220         1,300
Other assets                                          12,450      4,570
Total assets                                         $ 1,605,698 $ 1,629,765
LIABILITIES                                                      
Deposits:                                                        
Non-interest bearing                                 $ 219,669   $ 215,071
Interest-bearing:                                               
Time deposits $100 and over                          101,124     110,835
Interest-bearing transaction, savings and time       960,101     981,016
deposits less than $100
Total deposits                                        1,280,894   1,306,922
Long-term borrowings                                  146,000     146,000
Subordinated debentures                               5,155       5,155
Accounts payable and accrued liabilities              12,364      10,997
Total liabilities                                    1,444,413   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 June 30, 11,250      11,250
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 June 30, 2013
andDecember 31, 2012; outstanding 16,367,744 shares  110,056    110,056
at June 30, 2013 and 16,347,915 shares at December
31, 2012
Additional paid in capital                            4,925       4,801
Retained earnings                                     54,356      46,753
Treasury stock, at cost (2,109,668 common shares at
June 30, 2013 and 2,129,497 common shares December    (17,078)    (17,232)
31, 2012)
Accumulated other comprehensive income                (2,224)     5,063
Total stockholders' equity                           161,285     160,691
Total liabilities and stockholders' equity           $ 1,605,698 $ 1,629,765


CENTER BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
                                                                
                                  Three Months Ended    Six Months Ended
                                  June 30,              June 30,
(in thousands, except for share    2013       2012       2013       2012
and per share data)
                                                                
Interest income                                                  
Interest and fees on loans         $ 9,892    $ 9,414    $ 19,815   $ 18,799
Interest and dividends on                                        
investment securities:
Taxable                           2,885      3,112      5,857      6,200
Tax-exempt                        1,081      826        2,157      1,599
Dividends                          121        140        252        289
Interest on federal funds sold and —          4          2          4
other short-terminvestment
Total interest income             13,979     13,496     28,083     26,891
Interest expense                                                 
Interest on certificates of        220        182        459        434
deposit $100 or more
Interest on other deposits         1,063      1,126      2,108      2,282
Interest on borrowings             1,468      1,642      2,918      3,284
Total interest expense            2,751      2,950      5,485      6,000
Net interest income                11,228     10,546     22,598     20,891
Provision for loan losses          —          (107)      —          —
Net interest income after          11,228     10,653     22,598     20,891
provision for loan losses
Other income                                                     
Service charges, commissions and   451        421        857        867
fees
Annuities and insurance            146        48         246        92
commissions
Bank-owned life insurance          274        246        839        497
Loan related fees                  114        95         253        205
Net gains on sale of loans held    91         100        229        226
for sale
Other                              31         181        209        222
Other-than-temporary impairment    —          (140)      (24)       (198)
losses on investment securities
Net gains on sale of investment    600        653        943        1,648
securities
Net investment securities gains   600        513        919        1,450
(losses)
Total other income                1,707      1,604      3,552      3,559
Other expense                                                    
Salaries and employee benefits     3,335      3,055      6,825      6,173
Occupancy and equipment            811        606        1,717      1,306
FDIC insurance                     208        270        521        569
Professional and consulting        230        294        449        540
Stationery and printing            78         96         163        180
Marketing and advertising          62         56         163        87
Computer expense                   343        362        696        715
Other real estate owned, net       107        22         126        84
Other                              902        929        1,954      1,843
Total other expense               6,076      5,690      12,614     11,497
Income before income tax expense   6,859      6,567      13,536     12,953
Income tax expense                 1,936      2,214      3,689      4,369
Net Income                         4,923      4,353      9,847      8,584
Preferred stock dividends and      28         84         84         225
accretion
Net income available to common     $ 4,895    $ 4,269    $ 9,763    $ 8,359
stockholders
Earnings per common share                                        
Basic                              $ 0.30     $ 0.26     $ 0.60     $ 0.51
Diluted                            $ 0.30     $ 0.26     $ 0.60     $ 0.51
Weighted Average Common Shares                                   
Outstanding
Basic                              16,348,915 16,333,653 16,348,567 16,332,990
Diluted                            16,375,774 16,341,767 16,375,028 16,340,011


CENTER BANCORP, INC. AND SUBSIDIARIES
SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA
(Unaudited)
                                             Three Months Ended
(in thousands, except for share and per share 6/30/2013  3/31/2013  6/30/2012
data) (annualized where applicable)
Statements of Income Data                     
                                             
Interest income                              $13,979   $14,104   $13,496
Interest expense                             2,751      2,734      2,950
Net interest income                          11,228     11,370     10,546
Provision for loan losses                    —          —          (107)
Net interest income after provision for loan 11,228     11,370     10,653
losses
Other income                                 1,707      1,845      1,604
Other expense                                6,076      6,538      5,690
Income before income tax expense             6,859      6,677      6,567
Income tax expense                           1,936      1,753      2,214
Net income                                   $4,923    $4,924    $4,353
Net income available to common stockholders  $4,895    $4,868   $4,269
Earnings per Common Share                                         
Basic                                        $0.30     $0.30     $0.26
Diluted                                      $0.30     $0.30     $0.26
Statements of Condition Data (Period-End)                         
Investment securities:                                           
Available for sale                           $419,773  $458,004  $467,190
Held for maturity ( fair value $135,354,     136,786    78,212     62,997
$81,921 and $66,562)
Loans held for sale                          585        774        501
Loans                                        902,822    879,387    806,953
Total assets                                 1,605,698  1,609,795  1,501,022
Deposits                                     1,280,894  1,282,223  1,174,649
Borrowings                                   151,155    151,155    166,262
Stockholders' equity                         161,285    164,753    147,983
Common Shares Dividend Data                                       
Cash dividends                               $899      $899     $490
Cash dividends per share                     $0.055    $0.055    $0.030
Dividend payout ratio                        18.37%     18.47%     11.48%
Weighted Average Common Shares Outstanding                        
Basic                                        16,348,915 16,348,215 16,333,653
Diluted                                      16,375,774 16,373,588 16,341,767
Operating Ratios                                                  
Return on average assets                     1.22%      1.23%      1.16%
Return on average equity                     11.84%     12.09%     11.96%
Return on average tangible equity            13.17%     13.49%     13.53%
Average equity / average assets              10.31%     10.15%     9.72%
Book value per common share (period-end)     $9.17     $9.39     $8.36
Tangible book value per common share         $8.14     $8.36     $7.33
(period-end)
Non-Financial Information (Period-End)                            
Common stockholders of record                530        536        542
Full-time equivalent staff                   171        173        165

CONTACT: Investor Inquiries:
         Joseph D. Gangemi
         Senior Vice President
         Investor Relations
         (908) 206-2863
        
         France Delle Donne
         Senior Vice President
         Director of Communications & PR
         (908) 206-2668

Center Bancorp, Inc. Logo
 
Press spacebar to pause and continue. Press esc to stop.