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Center Bancorp, Inc. Reports Net Income Available to Common Shareholders of $5.1 Million or $0.31 per Share for the Third



Center Bancorp, Inc. Reports Net Income Available to Common Shareholders of
$5.1 Million or $0.31 per Share for the Third Quarter of 2013, Representing a
14.5% Increase

UNION, N.J., Oct. 24, 2013 (GLOBE NEWSWIRE) -- Center Bancorp, Inc.
(Nasdaq:CNBC) (the "Corporation", or "Center"), parent company of Union Center
National Bank ("UCNB" or the "Bank"), reported operating results for the third
quarter ended September 30, 2013. Net income available to common stockholders
amounted to $5.1 million, or $0.31 per fully diluted common share, for the
quarter ended September 30, 2013; an increase of $640,000 or approximately
14.5 percent as compared with net income available to common stockholders of
$4.4 million, or $0.27 per fully diluted common share, for the quarter ended
September 30, 2012.

For the nine months ended September 30, 2013, net income available to common
stockholders amounted to $14.8 million, or $0.91 per fully diluted common
share, compared to $12.8 million, or $0.78 per fully diluted common share, for
the same period in 2012.

"Our third quarter earnings remained strong, fueled primarily by top line
revenue growth with a continued improvement in our asset quality profile. The
continued momentum in expanding our client base and focus within loan segments
was evident in growth in the commercial loan sector of $65.0 million from
September 30, 2012 to September 30, 2013 against the back drop of total loan
growth of $87.5 million over the same period. We achieved solid growth across
all principal portions of our business and achieved strong core deposit
growth. Our actions, supported by our core earnings performance and strategic
growth, created incremental shareholder value," said Anthony C. Weagley,
President & Chief Executive Officer of Union Center National Bank.

                     Highlights for the quarter include:

  o Non-performing assets declined to 0.14 percent of total assets at
    September 30, 2013, compared to 0.34 percent at September 30, 2012 and
    0.31 percent at December 31, 2012. The allowance for loan losses as a
    percentage of total non-performing loans was 501.7 percent at September
    30, 2013 compared to 184.9 percent at September 30, 2012 and 278.9 percent
    at December 31, 2012.
     
  o The Tier 1 leverage capital ratio was 9.52 percent at September 30, 2013,
    compared to 8.96 percent at September 30, 2012, and 9.02 percent at
    December 31, 2012, exceeding regulatory guidelines in all periods.
     
  o Tangible book value per common share rose to $8.37 at September 30, 2013,
    compared to $7.90 at September 30, 2012 and $8.11 at December 31, 2012.
     
  o The efficiency ratio for the third quarter of 2013 on an annualized basis
    was 45.8 percent as compared to 47.7 percent in the third quarter of 2012
    and 46.9 percent in the fourth quarter of 2012.
     
  o Deposits increased $21.3 million to $1.314 billion at September 30, 2013,
    from $1.293 billion at September 30, 2012.

Non-performing assets (NPAs) at the end of the third quarter totaled $2.3
million, or 0.14 percent of total assets, as compared with $5.0 million, or
0.31 percent, at December 31, 2012 and $5.5 million, or 0.34 percent, at
September 30, 2012.

Selected Financial                                           
Ratios
(unaudited; annualized                                       
where applicable)
                                                             
As of or for the       9/30/13  6/30/13  3/31/13  12/31/12  9/30/12
quarter ended:
Return on average      1.23%    1.22%    1.23%    1.11%     1.13%
assets
Return on average      12.53%   11.84%   12.09%   11.17%    11.67%
equity
Net interest margin    3.31%    3.28%    3.31%    3.32%     3.28%
(tax equivalent basis)
Loans / deposits ratio 72.85%   70.48%   68.58%   68.07%    67.28%
Stockholders' equity / 10.04%   10.04%   10.23%   9.86%     9.75%
total assets
Efficiency ratio (1)   45.8%    47.0%    48.5%    46.9%     47.7%
Book value per common   $ 9.40   $ 9.17   $ 9.39   $ 9.14    $ 8.93
share
Return on average      13.98%   13.17%   13.49%   12.49%    13.12%
tangible equity (1)
Tangible common
stockholders' equity / 8.42%    8.38%    8.58%    8.22%     8.09%
tangible assets (1)
Tangible book value     $ 8.37  $ 8.14   $ 8.36   $ 8.11    $ 7.90
per common share (1)
                                                                              
(1)     Information reconciling non-GAAP measures to GAAP measures            
is presented elsewhere in this press release.

Net Interest Income

For the three months ended September 30, 2013, total interest income on a
fully taxable equivalent basis increased $617,000 or 4.2 percent, to $15.2
million, compared to the three months ended September 30, 2012. Total interest
expense decreased by $116,000, or 4.0 percent, to $2.8 million, for the three
months ended September 30, 2013, compared to the same period last year. Net
interest income on a fully taxable equivalent basis was $12.4 million for the
three months ended September 30, 2013, increasing $733,000, or 6.3 percent,
from $11.7 million for the comparable period in 2012. Compared to 2012, for
the three months ended September 30, 2013, average interest earning assets
increased $75.5 million while net interest spread was at 3.15 percent for both
periods. For the quarter ended September 30, 2013, the Corporation's net
interest margin on a fully taxable equivalent annualized basis increased to
3.31 percent as compared to 3.28 percent for the same three month period in
2012.

The 4.0 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 4 basis points to 0.91 percent from 0.95 percent for
the quarter ended September 30, 2012 and on a linked sequential quarter stayed
the same compared to the second quarter of 2013. 

For the nine months ended September 30, 2013, net interest income on a fully
taxable equivalent basis amounted to $36.2 million, compared to $33.4 million
for the same period in 2012. For the nine month period ended September 30,
2013, interest income increased by $2.1 million while interest expense
decreased by $631,000 from the same period last year. Compared to the same
period in 2012, for the nine months ended September 30, 2013, average interest
earning assets increased $117.5 million while net interest spread and margin
decreased on an annualized tax-equivalent basis by 4 basis points and 2 basis
points, respectively.

Earnings Summary for the Period Ended September 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 9/30/13    6/30/13    3/31/13    12/31/12   9/30/12
ended:
Net interest    $ 11,722   $ 11,228   $ 11,370   $ 11,422   $ 11,183
income
Provision for   —          —          —          100        225
loan losses
Net interest
income          11,722     11,228     11,370     11,322     10,958
after provision
for loan losses
Other income    1,543      1,707      1,845      1,016      2,635
Other expense   6,205      6,076      6,538      6,193      7,507
Income before
income tax      7,060      6,859      6,677      6,145      6,086
expense 
Income tax      1,966      1,936      1,753      1,676      1,632
expense 
Net income      $ 5,094    $ 4,923    $ 4,924    $ 4,469    $ 4,454
Net income
available to    $ 5,066    $ 4,895    $ 4,868    $ 4,441    $ 4,426
common
stockholders
Earnings per                                                 
common share:
Basic           $ 0.31     $ 0.30     $ 0.30     $ 0.27     $ 0.27
Diluted         $ 0.31     $ 0.30     $ 0.30     $ 0.27     $ 0.27
Weighted
average common                                               
shares
outstanding:
Basic           16,349,480 16,348,915 16,348,215 16,347,564 16,347,088
Diluted         16,385,155 16,375,774 16,373,588 16,363,698 16,362,635

Other Income

Other income decreased $1.1 million for the third quarter of 2013 compared
with the same period in 2012. During the third quarter of 2013, the
Corporation recorded net investment securities gains of $343,000 compared to
$763,000 in net investment securities gains for the same period last year.
Excluding net securities gains, the Corporation recorded other income of $1.2
million for the three months ended September 30, 2013 compared to other
income, excluding net securities gains and a bargain gain on acquisition, of
$973,000 for the third quarter of 2012 and $1.2 million for the three months
ended December 31, 2012. Increases in other income in the third quarter of
2013 when compared to the third quarter of 2012 (excluding securities gains
and a bargain gain on acquisition) were primarily from an increase of $208,000
in loan related fees , an increase of $23,000 in service charges on deposit
accounts, an increase in bank owned life insurance income of $26,000, and an
increase of $47,000 in annuities and insurance commissions, offset in part by
a decline of $58,000 in net gain on sale of loans held for sale, and $20,000
in other fees.

For the nine months ended September 30, 2013, total other income decreased
$1.1 million compared to the same period in 2012, primarily as a result of
$951,000 related to lower net securities gains and $899,000 relating to a
bargain gain on acquisition in the prior period, offset in part by increased
income on bank owned life insurance, annuities and loan fees. Excluding net
securities gains and losses, the Corporation recorded other income of $3.8
million for the nine months ended September 30, 2013 compared to other income,
excluding net securities gains and losses and bargain gain on acquisition, of
$3.1 million for the comparable period in 2012, representing an increase of
$750,000 or 24.3 percent.

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

(in thousands, unaudited)                                                     
For the quarter ended:      9/30/13 6/30/13 3/31/13 12/31/12 9/30/12
Service charges on deposit  $ 356   $ 318   $ 289   $ 324    $ 333
accounts
Loan related fees           297     114     139     220      89
Net gains on sales of loans 26      91      138     170      84
held for sale
Annuities and insurance     92      146     100     67       45
commissions
Debit card and ATM fees     127     133     117     125      126
Bank-owned life insurance   265     274     565     282      239
Net investment securities   343     600     319     (201)    763
gains (losses)
Bargain gain on acquisition —       —       —       —        899
Other fees                  37      31      178     29       57
Total other income          $ 1,543 $ 1,707 $ 1,845 $ 1,016  $ 2,635

Other Expense

Total other expense for the third quarter of 2013 amounted to $6.2 million,
which was approximately $129,000 or 2.1 percent higher than other expense for
the three months ended June 30, 2013, primarily related to an increase in
professional and consulting expense , which increased $122,000. Other
increases contributing to the increase in operating overhead included FDIC
insurance of $75,000, marketing and advertising of $32,000, occupancy and
equipment of $28,000 and all other expense of $57,000. These increases were
partially offset by decreases in other real estate owned expense of $100,000,
stationery and printing expense of $16,000, and salaries and employee benefits
expenses of $88,000.

The increase in other expense for the three months ended September 30, 2013,
when compared to the quarter ended September 30, 2012, excluding repurchase
agreement prepayment and termination fee and acquisition cost, was
approximately $182,000. Increases primarily included salaries and benefit
expense of $54,000, occupancy and equipment expense of $100,000, professional
and consulting expense of $75,000, marketing and advertising expense of
$30,000, bank regulatory related expenses of $9,000, and postage and delivery
expense of $16,000. These increases were partially offset by decreases of
$7,000 in stationery and printing, $4,000 in computer expense, $9,000 in FDIC
insurance expense, $58,000 in other real estate owned expense, and $22,000 in
all other expense.

For the nine months ended September 30, 2013, total other expense decreased
$185,000, or 1.0 percent, compared to the same period in 2012. Excluding the
repurchase agreement prepayment and termination fee and acquisition cost
recognized in 2012, total other expense increased $1.3 million or 7.4 percent.
Increases primarily included $706,000 in salaries and employee benefits,
$511,000 in occupancy and equipment, $106,000 in marketing and advertising,
and $112,000 in other expenses. The increases resulted from operating the
Saddle River, Oakland and Englewood branches for the nine months of 2013 and
opening of the Princeton branch in the second quarter of 2013. These increases
were partially offset by decreases in FDIC insurance expense of $57,000,
professional consulting expense of $16,000, stationery and printing expense of
$24,000, and computer expense of $23,000, and other real estate owned expense
of $16,000.

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

(in thousands, unaudited)                                                     
For the quarter ended:         9/30/13 6/30/13 3/31/13  12/31/12 9/30/12
Salaries                       $ 2,532 $ 2,652 $ 2,653  $ 2,495  $ 2,505
Employee benefits              715     683     837      710      688
Occupancy and equipment        839     811     906      942      739
Professional and consulting    352     230     219      260      277
Stationery and printing        62      78      85       100      69
FDIC Insurance                 283     208     313      293      292
Marketing and advertising      94      62      101      35       64
Computer expense               362     343     353      338      366
Bank regulatory related        86      82      90       82       77
expenses
Postage and delivery           71      70      56       61       55
ATM related expenses           66      65      71       72       64
Other real estate owned, net   7       107     19       1        65
Amortization of core deposit   6       8       10       10       10
intangible
Repurchase agreement           —       —       —        —        1,012
prepayment and termination fee
Acquisition cost               —       —       —        10       472
All other expenses             730     677     825      784      752
Total other expense            $ 6,205 $ 6,076  $ 6,538 $ 6,193  $ 7,507

Statement of Condition Highlights at September 30, 2013

Commenting on the balance sheet, Mr. Weagley indicated: "We strengthened our
balance sheet during the third quarter, ending the third quarter with a strong
Tier 1 ratio of 9.52 percent, up from 9.50 percent in the second quarter, and
8.96 percent at September 30, 2012. We also continue to see positive signs for
growth coupled with sustained asset quality." Highlights as of September 30,
2013 included:

  o Continued balance sheet strength, with total assets amounting to $1.6
    billion at September 30, 2013.
     
  o Total loans were $957.5 million at September 30, 2013, increasing $87.5
    million, or 10.1 percent, from September 30, 2012. Total real estate loans
    increased $22.3 million, or 3.6 percent, from September 30, 2012.
    Commercial loans increased $65.0 million, or 26.8 percent, year over year.
     
  o Deposits totaled $1.314 billion at September 30, 2013, increasing $21.3
    million, or 1.6 percent, since September 30, 2012. Total Demand, Savings,
    Money Market, and certificates of deposit less than $100,000 increased
    $31.3 million or 2.7 percent from September 30, 2012. The increases
    reflect continued core deposit growth.
     
  o Borrowings totaled $151.2 million at September 30, 2013 and September 30,
    2012, respectively.

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    9/30/13     6/30/13     3/31/13     12/31/12    9/30/12
ended:
Cash and due  $ 33,557    $  61,959   $ 116,755   $ 104,134   $ 100,106
from banks
Interest
bearing       —           —           —           2,004       2,002
deposits with
banks
Investment                                                     
securities:
Available for 413,147     419,773     458,004     496,815     509,605
sale
Held to       153,486     136,786     78,212      58,064      56,503
maturity
Loans held
for sale, at  101         585         774         1,491       1,055
fair value
Loans         957,492     902,822     879,387     889,672     869,998
Allowance for (10,194)    (10,202)    (10,232)    (10,237)    (10,240)
loan losses
Restricted
investment in 8,986       8,986       8,966       8,964       8,964
bank stocks,
at cost
Premises and
equipment,    13,472      13,456      13,544      13,563      13,564
net
Goodwill      16,804      16,804      16,804      16,804      16,804
Core deposit  30          36          45          54          64
intangible
Bank-owned
life          35,474      35,209      34,935      34,961      29,679
insurance
Other real    220         220         1,536       1,300       —
estate owned
Other assets  21,841      19,264      11,065      12,176      13,975
 Total assets $ 1,644,416 $ 1,605,698 $ 1,609,795 $ 1,629,765 $ 1,612,079
Deposits      $ 1,314,317 $ 1,280,894 $ 1,282,223 $ 1,306,922 $ 1,293,013
Borrowings    151,155     151,155     151,155     151,155     151,205
Other         13,806      12,364      11,664      10,997      10,676
liabilities
Stockholders' 165,138     161,285     164,753     160,691     157,185
equity
Total
liabilities
and           $ 1,644,416 $ 1,605,698 $ 1,609,795 $ 1,629,765 $ 1,612,079
stockholders'
equity

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

Deposits (unaudited)                                                                  
(in thousands)                                                                        
At quarter       9/30/13     6/30/13     3/31/13     12/31/12    9/30/12
ended:
Demand:                                                           
Non-interest     $ 238,214   $ 219,669   $ 213,794   $ 215,071   $ 192,321
bearing
Interest-bearing 231,390     195,954     207,427     217,922     222,660
Savings          186,194     221,271     221,274     216,274     218,732
Money market     505,490     493,155     488,124     493,836     488,189
Time             153,029     150,845     151,604     163,819     171,111
Total deposits   $ 1,314,317 $ 1,280,894 $ 1,282,223 $ 1,306,922 $ 1,293,013

Loans

Total loans rose to $957 million at September 30, 2013. Mr. Weagley commented:
"I continue to be extremely pleased with our success in generating solid
lending growth. Outstanding loan balances increased while at the same time
lending opportunities continued to fuel the Corporation's robust pipelines. We
expect such volume to continue to increase in future periods," added Mr.
Weagley.

The Corporation's net loans in the third quarter of 2013 increased $54.7
million, to $947.3 million at September 30, 2013, from $892.6 million at June
30, 2013. The allowance for loan losses amounted to $10.2 million at both
September 30, 2013 and June 30, 2013. The loan growth during the period
resulted from approximately $108.9 million in new loans and advances during
the third quarter. This growth was offset in part by prepayments of $16.7
million coupled with scheduled payments, maturities and payoffs of $38.0
million. Average loans during the third quarter of 2013 totaled $921.5 million
as compared to $850.1 million during the third quarter of 2012, representing
an 8.4 percent increase.

At the end of the third 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 32.1 percent of
the loan portfolio, commercial real estate loans representing 48.5 percent of
the loan portfolio, and consumer and other loans representing 14.9 percent of
the loan portfolio. Construction and development loans accounted for only 4.5
percent of the loan portfolio. The loan volume increase within the portfolio
compared to September 30, 2012, amounted to $104.8 million in commercial and
commercial real estate loans and $1.9 million in construction loans, offset by
a decrease of $19.3 million in residential mortgage loans. At September 30,
2012, net loans totaled $859.8 million.

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

Loans (unaudited)                                                     
(in thousands)                                                        
At quarter ended:            9/30/13   6/30/13   3/31/13   12/31/12  9/30/12
Real estate loans:                                                    
Residential                  $ 142,744 $ 142,772 $ 145,228 $ 158,361 $ 162,070
Commercial                   464,374   443,441   431,771   428,673   424,574
Construction                 42,727    38,565    35,166    40,272    40,867
Total real estate loans      649,845   624,778   612,165   627,306   627,511
Commercial loans             306,974   277,734   266,762   261,791   242,008
Consumer and other loans     517       147       326       452       324
Total loans before deferred  957,336   902,659   879,253   889,549   869,843
fees and costs
Deferred costs, net          156       163       134       123       155
Total loans                  $ 957,492 $ 902,822 $ 879,387 $ 889,672 $ 869,998

At September 30, 2013, the Corporation had $196.0 million in overall
undisbursed loan commitments, which consisted primarily of 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 $44.9 million in commercial and commercial real estate loans and
$2.3 million in residential mortgages expected to fund over the next 90 days.

Asset Quality

Non-accrual loans decreased from $3.6 million at December 31, 2012 to $2.5
million at June 30, 2013 and to $2.0 million at September 30, 2013. Other real
estate owned was $220,000 at June 30, 2013 and September 30, 2013, as compared
with $1.3 million at December 31, 2012.  Troubled debt restructured loans,
which are performing loans, significantly decreased to $1.66 million at
September 30, 2013 from $6.81 million at December 31, 2012 and $2.59 million
at June 30, 2013, respectively.

At September 30, 2013, non-performing assets totaled $2.3 million, or 0.14
percent of total assets, as compared with $5.5 million, or 0.34 percent, at
September 30, 2012 and $5.0 million, or 0.31 percent, at December 31, 2012.
The decrease from September 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 $618,000
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 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  9/30/13    6/30/13    3/31/13    12/31/12   9/30/12
quarter ended:
Non-accrual loans $ 2,032    $ 2,508    $ 2,565    $ 3,616    $ 4,967
(1)
Loans 90 days or
more past due and —          53         54         55         570
still accruing 
Total
non-performing    2,032      2,561      2,619      3,671      5,537
loans
Other real estate 220        220        1,536      1,300      —
owned
Total
non-performing    $ 2,252     $ 2,781   $ 4,155    $ 4,971    $ 5,537
assets
Performing
troubled debt     $ 1,658    $ 2,585    $ 6,786    $ 6,813    $ 6,851
restructured
loans
                                                               
Non-performing
assets / total    0.14%      0.17%      0.26%      0.31%      0.34%
assets
Non-performing
loans / total     0.21%      0.28%      0.30%      0.41%      0.64%
loans
Net charge-offs   $ 8         $ 30      $ 5        $ 103      $ 206
(recoveries)
Net charge-offs
(recoveries) /    N/M        0.01%      N/M        0.05%      0.10%
average loans (2)
Allowance for
loan losses /     1.06%      1.13%      1.16%      1.15%      1.18%
total loans
Allowance for
loan losses /     501.7%     398.4%     390.7%     278.9%     184.9%
non-performing
loans
                                                               
Total assets      $1,644,416 $1,605,698 $1,609,795 $1,629,765 $1,612,079
Total loans       957,492    902,822    879,387    889,672    869,998
Average loans     921,523    888,175    873,916    864,829    850,059
Allowance for     10,194     10,202     10,232     10,237     10,240
loan losses
_________________                                              
(1)  7 loans totaling $1.4 million or (69.0%) of the total non-accrual            
loan balance are making payments. 
(2)  Annualized.                                                                  
                                                               
N/M – not meaningful                                                              

The allowance for loan losses at September 30, 2013 amounted to approximately
$10.2 million, or 1.06 percent of total loans, compared to 1.18 percent of
total loans at September 30, 2012. Excluding loans acquired from Saddle River
Valley Bank and carried at fair value, the coverage ratio was 1.11 percent,
compared to 1.25 percent of total loans at September 30, 2012. The allowance
for loan losses as a percentage of total non-performing loans was 501.7
percent at September 30, 2013 compared to 184.9 percent at September 30, 2012.

Capital

At September 30, 2013, total stockholders' equity amounted to $165.1 million,
or 10.04 percent of total assets. Tangible common stockholders' equity was
$137.1 million, or 8.42 percent of tangible assets, compared to 8.09 percent
at September 30, 2012. Book value per common share was $9.40 at September 30,
2013, compared to $8.93 at September 30, 2012. Tangible book value per common
share was $8.37 at September 30, 2013 compared to $7.90 at September 30, 2012.

At September 30, 2013, the Corporation's Tier 1 leverage capital ratio was
9.52 percent, the Tier 1 risk-based capital ratio was 11.70 percent and the
total risk-based capital ratio was 12.49 percent. Tier 1 capital increased
$15.5 million to approximately $155.7 million at September 30, 2013 from
$140.2 million at September 30, 2012, reflecting an increase in retained
earnings.

At September 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    9/30/13   6/30/13   3/31/13   12/31/12  9/30/12
ended:
Net income         $ 5,094   $ 4,923   $ 4,924   $ 4,469   $ 4,454
Average
stockholders'      $ 162,557 $ 166,385 $ 162,853 $ 160,006 $ 152,686
equity
Less:
Average goodwill   16,838    16,845    16,855    16,864    16,874
and other
intangible assets
Average tangible
stockholders'      $ 145,719 $ 149,540 $ 145,998 $ 143,142 $ 135,812
equity
                                                            
Return on average
stockholders'      12.53%    11.84%    12.09%    11.17%    11.67%
equity
Add:
Average goodwill   1.45%     1.33%     1.40%     1.32%     1.45%
and other
intangible assets
Return on average
tangible           13.98%    13.17%    13.49%    12.49%    13.12%
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:       9/30/13    6/30/13    3/31/13    12/31/12   9/30/12
Common shares           16,369,012 16,367,744 16,348,915 16,347,915 16,347,088
outstanding
Stockholders' equity    $ 165,138  $ 161,285  $ 164,753  $ 160,691  $ 157,185
Less: Preferred stock   11,250     11,250     11,250     11,250     11,250
Less: Goodwill and      16,834     16,840     16,849     16,858     16,868
other intangible assets
Tangible common         $ 137,054  $ 133,195  $ 136,654  $ 132,583  $ 129,067
stockholders' equity
                                                                     
Book value per common   $ 9.40     $ 9.17     $ 9.39     $ 9.14     $ 8.93
share
Less: Goodwill and      1.03       1.03       1.03       1.03       1.03
other intangible assets
Tangible book value per $  8.37    $ 8.14     $ 8.36     $ 8.11     $ 7.90
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    9/30/13    6/30/13    3/31/13    12/31/12   9/30/12
ended:
Total assets  $1,644,416 $1,605,698 $1,609,795 $1,629,765 $1,612,079
Less:
Goodwill and
other         16,834     16,840     16,849     16,858     16,868
intangible
assets
Tangible      $1,627,582 $1,588,858 $1,592,946 $1,612,907 $1,595,211
assets
                                                           
Total
stockholders' 10.04%     10.04%     10.23%     9.86%      9.75%
equity /
total assets
Tangible
common
stockholders' 8.42%      8.38%      8.58%      8.22%      8.09%
equity /
tangible
assets

Other income is presented in the table below including and excluding net gains
and bargain gain on acquisition. We believe that many investors desire to
evaluate other income without regard for such gains. 

(in thousands)                                                                
For the quarter ended:      9/30/13 6/30/13 3/31/13 12/31/12 9/30/12
Other income                $ 1,543 $ 1,707 $ 1,845 $ 1,016  $ 2,635
Less: Net investment        343     600     319     (201)    763
securities gains (losses)
Less: Bargain gain on       —       —       —       —        899
acquisition
Other income, excluding net
investment securities gains $ 1,200 $ 1,107 $ 1,526 $ 1,217  $ 973
( 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 and bargain gain on acquisition,
calculated as follows: 

(dollars in thousands)                                                        
For the quarter ended:  9/30/13  6/30/13  3/31/13  12/31/12 9/30/12
Other expense           $ 6,205  $ 6,076  $ 6,538  $ 6,193  $ 7,507
Less: Repurchase
agreement termination   —        —        —        —        1,012
fee
Less: Acquisition cost  —        —        —        10       472
Other expense,
excluding extraordinary $ 6,205  $ 6,076  $ 6,538  $ 6,183  $ 6,023
items
                                                             
Net interest income     $ 12,342 $ 11,810 $ 11,950 $ 11,969 $ 11,663
(tax equivalent basis)
Other income, excluding
net investment          1,200    1,107    1,526    1,217    973
securities gains
 Total                  $ 13,542 $ 12,917 $ 13,476 $ 13,186 $ 12,636
                                                             
Efficiency ratio        45.8%    47.0%    48.5%    46.9%    47.7%

The following table sets forth the Corporation's consolidated average
statements of condition for the periods presented. 

Condensed Consolidated Average Statements of Condition (unaudited)                    
(in thousands)                                                    
For the quarter  9/30/13     6/30/13     3/31/13     12/31/12    9/30/12
ended:
Investment                                                        
securities
Available for    $ 426,870   $ 457,484   $ 503,223   $ 517,179   $ 508,864
sale
Held to maturity 150,087     95,163      65,378      58,929      60,275 
Loans            921,523     888,175     873,916     864,829     850,059
Allowance for    (10,200)    (10,214)    (10,229)    (10,188)    (10,197)
loan losses
All other assets 163,732     183,894     171,703     181,306     172,032
Total assets     $ 1,652,012 $ 1,614,502 $ 1,603,991 $ 1,612,055 $ 1,581,033
Non-interest     $ 238,194   $ 219,965   $ 212,860   $ 205,278   $ 183,858
bearing deposits
Interest-bearing 1,086,757   1,059,552   1,061,261   1,079,351   1,066,849
deposits
Borrowings       151,753     151,924     151,488     151,364     164,294
Other            12,751      16,676      15,529      16,056      13,346
liabilities
Stockholders'    162,557     166,385     162,853     160,006     152,686
equity
Total
liabilities and  $ 1,652,012 $ 1,614,502 $ 1,603,991 $ 1,612,055 $ 1,581,033
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.  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 positive signs for growth and expectations regarding loan volume
growth) 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  September 30, 2013  December 31, 2012
share data)
                                         (Unaudited)         
ASSETS                                                       
Cash and due from banks                   $ 33,557           $ 104,134
Interest bearing deposits with banks     —                  2,004
Total cash and cash equivalents          33,557             106,138
Investment securities:                                       
Available for sale                       413,147            496,815
Held to maturity (fair value of $152,008
at September 30, 2013 and $62,431        153,486            58,064
at December 31, 2012)
Loans held for sale                      101                1,491
Loans                                    957,492            889,672
Less: Allowance for loan losses          10,194             10,237
Net loans                                947,298            879,435
Restricted investment in bank stocks, at 8,986              8,964
cost
Premises and equipment, net              13,472             13,563
Accrued interest receivable              6,570              6,849
Bank-owned life insurance                35,474             34,961
Goodwill                                 16,804             16,804
Prepaid FDIC assessments                 —                  811
Other real estate owned                  220                1,300
Due from brokers for investment          2,983              —
securities
Other assets                             12,318             4,570
Total assets                              $ 1,644,416        $ 1,629,765
LIABILITIES                                                  
Deposits:                                                    
Non-interest bearing                      $ 238,214          $ 215,071
Interest-bearing:                                            
Time deposits $100 and over              104,398            110,835
Interest-bearing transaction, savings    971,705            981,016
and time deposits less than $100
Total deposits                           1,314,317          1,306,922
Long-term borrowings                     146,000            146,000
Subordinated debentures                  5,155              5,155
Accounts payable and accrued liabilities 13,806             10,997
Total liabilities                        1,479,278          1,469,074
STOCKHOLDERS' EQUITY                                         
Preferred stock, $1,000 liquidation
value per share, authorized 5,000,000
shares; issued and outstanding 11,250    11,250             11,250
shares of Series B preferred stock at
September 30, 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 September 30, 2013
and December 31, 2012; outstanding       110,056            110,056
16,369,012 shares at September 30, 2013
and 16,347,915 shares at December 31,
2012
Additional paid in capital               4,952              4,801
Retained earnings                        58,191             46,753
Treasury stock, at cost (2,108,400
common shares at September 30, 2013 and  (17,078)           (17,232)
2,129,497 common shares December 31,
2012)
Accumulated other comprehensive income   (2,233)            5,063
Total stockholders' equity               165,138            160,691
Total liabilities and stockholders'       $ 1,644,416        $ 1,629,765
equity

 
CENTER BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
                                                                     
                                   Three Months Ended    Nine Months Ended
                                   September 30,         September 30,
(in thousands, except for share    2013       2012       2013       2012
and per share data)
                                                                     
Interest income                                                      
Interest and fees on loans          $ 10,148   $ 10,039   $ 29,963   $ 28,838
Interest and dividends on                                            
investment securities:
Taxable                            3,116      3,047      8,973      9,247
Tax-exempt                         1,151      892        3,308      2,491
Dividends                          126        137        378        426
Interest on federal funds sold and —          3          2          7
other short-term investment
Total interest income              14,541     14,118     42,624     41,009
Interest expense                                                     
Interest on certificates of        206        203        665        637
deposit $100 or more
Interest on other deposits         1,124      1,124      3,232      3,406
Interest on borrowings             1,489      1,608      4,407      4,892
Total interest expense             2,819      2,935      8,304      8,935
Net interest income                11,722     11,183     34,320     32,074
Provision for loan losses          —          225        —          225
Net interest income after          11,722     10,958     34,320     31,849
provision for loan losses
Other income                                                         
Service charges, commissions and   483        459        1,340      1,326
fees
Annuities and insurance            92         45         338        137
commissions
Bank-owned life insurance          265        239        1,104      736
Loan related fees                  297        89         550        291
Net gains on sale of loans held    26         84         255        313
for sale
Bargain gain on acquisition        —          899        —          899
Other                              37         57         246        279
Other-than-temporary impairment    —          (134)      (24)       (332)
losses on investment securities
Net gains on sale of investment    343        897        1,286      2,545
securities 
Net investment securities gains    343        763        1,262      2,213
(losses)
Total other income                 1,543      2,635      5,095      6,194
Other expense                                                        
Salaries and employee benefits     3,247      3,193      10,072     9,366
Occupancy and equipment            839        739        2,556      2,045
FDIC insurance                     283        292        804        861
Professional and consulting        352        277        801        817
Stationery and printing            62         69         225        249
Marketing and advertising          94         64         257        151
Computer expense                   362        366        1,058      1,081
Other real estate owned, net       7          65         133        149
Repurchase agreement termination   —          1,012      —          1,012
fee
Acquisition cost                   —          472        —          472
Other                              959        958        2,913      2,801
Total other expense                6,205      7,507      18,819     19,004
Income before income tax expense   7,060      6,086      20,596     19,039
Income tax expense                 1,966      1,632      5,655      6,001
Net Income                         5,094      4,454      14,941     13,038
Preferred stock dividends and      28         28         112        253
accretion
Net income available to common      $ 5,066    $ 4,426    $ 14,829   $ 12,785
stockholders 
Earnings per common share                                            
Basic                               $ 0.31     $ 0.27     $ 0.91     $ 0.78
Diluted                             $ 0.31     $ 0.27     $ 0.91     $ 0.78
Weighted Average Common Shares                                       
Outstanding
Basic                              16,349,480 16,347,088 16,348,875 16,337,724
Diluted                            16,385,155 16,362,635 16,380,970 16,346,739

 
CENTER BANCORP, INC. AND SUBSIDIARIES
SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA
(Unaudited)
                                                                 
                                          Three Months Ended 
(in thousands, except for share and per
share data) (annualized where             9/30/2013  6/30/2013  9/30/2012
applicable) 
                                                                 
Statements of Income Data                                                     
Interest income                           $ 14,541   $ 13,979   $ 14,118
Interest expense                          2,819      2,751      2,935
Net interest income                       11,722     11,228     11,183
Provision for loan losses                 —          —          225
Net interest income after provision for   11,722     11,228     10,958
loan losses
Other income                              1,543      1,707      2,635
Other expense                             6,205      6,076      7,507
Income before income tax expense          7,060      6,859      6,086
Income tax expense                        1,966      1,936      1,632
Net income                                $ 5,094    $ 4,923    $ 4,454
Net income available to common            $ 5,066    $ 4,895    $ 4,426
stockholders
Earnings per Common Share                                        
Basic                                     $ 0.31     $ 0.30     $ 0.27
Diluted                                   $ 0.31     $ 0.30     $ 0.27
Statements of Condition Data (Period-End)                        
Investment securities:                                           
Available for sale                        $ 413,147  $ 419,773  $ 509,605
Held for maturity (fair value $152,008,   153,486    136,786    56,503
$135,354 and $60,946) 
Loans held for sale                       101        585        1,055
Loans                                     957,492    902,822    869,998
Total assets                              1,644,416  1,605,698  1,612,079
Deposits                                  1,314,317  1,280,894  1,293,013
Borrowings                                151,155    151,155    151,205
Stockholders' equity                      165,138    161,285    157,185
Common Shares Dividend Data                                      
Cash dividends                            $ 1,226    $ 899      $ 899
Cash dividends per share                  $ 0.075    $ 0.055    $ 0.055
Dividend payout ratio                     24.20%     18.37%     20.31%
Weighted Average Common Shares                                   
Outstanding
Basic                                     16,349,480 16,348,915 16,347,088
Diluted                                   16,385,155 16,375,774 16,362,635
Operating Ratios                                                 
Return on average assets                  1.23%      1.22%      1.13%
Return on average equity                  12.53%     11.84%     11.67%
Return on average tangible equity         13.98%     13.17%     13.12%
Average equity / average assets           9.84%      10.31%     9.66%
Book value per common share (period-end)  $ 9.40     $ 9.17     $ 8.93
Tangible book value per common share      $ 8.37     $ 8.14     $ 7.90
(period-end)
Non-Financial Information (Period-End)                           
Common stockholders of record             522        530        554
Full-time equivalent staff                169        171        174

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

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