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  
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