Center Announces Sale of Other Real Estate Owned Property

• Press Release
• Source: Center Bancorp, Inc.
• On 9:20 am EDT, Wednesday July 22, 2009

UNION, N.J., July 22, 2009 (GLOBE NEWSWIRE) -- Center Bancorp, Inc. (Nasdaq:CNBC - News), the parent company for Union Center National Bank ("UCNB"), today announced that it has negotiated a sale of its major other real estate owned ("OREO") property for $3.9 million dollars.

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Anthony C. Weagley, President & Chief Executive Officer, added, "When we announce second quarter earnings later this month, we expect to report that at June 30, 2009, our non-performing assets amounted to $10.8 million, as compared with $9.1 million at March 31, 2009. The property we are selling represents nearly one third of our June 30, 2009 non-performing assets. Had this sale occurred on June 30, 2009, our non-performing assets would have reflected, a significant improvement over March 31, 2009. In addition, we expect to book a gain on the sale of the property in the approximate amount of $150,000. The sale is subject to a mortgage contingency, which was recently committed and accepted. The sale is also subject to normal performance requirements and standard contingencies. The sale is expected to close during the third quarter of 2009."

Asset Quality

Non-performing assets, which include loans past due 90 days or more and still accruing interest, trouble debt restructures, non-accrual loans and OREO, as a percentage of total assets, decreased to 0.80% as of June 30, 2009, from 0.81% at March 31, 2009 but was up from the 0.46% reported at year-end 2008. These June 30, 2009 figures include in OREO the property we have agreed to sell; at June 30, 2009, that property alone represented 0.26% of assets. Had the Corporation's pending OREO sale been consummated by June 30, 2009, non-performing assets would have been significantly reduced.

The Corporation has provided a loan loss provision of $156,000 for the second quarter of 2009, which will more than cover the $8,000 of net charges for the quarter.

At June 30, 2009, the total allowance for loan losses is expected to amount to $6.9 million, or 1.00% of total loans, as compared to $6.8 million or 1.00% of total loans at March 31, 2009. Management believes the allowance at June 30, 2009 is adequate to cover losses inherent in the loan portfolio.

Capital Adequacy

Center remained well capitalized with strong liquidity in the second quarter of 2009. Total stockholders' equity amounted to $89.5 million, or 6.67% of total assets, at June 30, 2009.

At June 30, 2009, the Corporation's Tier 1 Capital Leverage ratio was 7.52% and the Corporation's total Tier 1 Risk Based Capital ratio was 10.46%. At June 30, 2009, the Corporation's capital ratios continued to exceed each of 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.

About Center Bancorp

UCNB currently operates 13 banking locations in Union and Morris counties in New Jersey. Banking centers are located in Union Township (6 locations), Berkeley Heights, Boonton/Mountain Lakes, Madison, Millburn/Vauxhall, Morristown, Springfield, and Summit, New Jersey. UCNB also operates remote ATM locations in the Chatham and Madison New Jersey Transit train stations and the Boys and Girls Club of Union.

While UCNB's primary market area is comprised of Morris and Union Counties, New Jersey, the Corporation has expanded into northern and central New Jersey. At March 31, 2009, on a consolidated basis, Center Bancorp had total assets of $1.1 billion, total deposit funding sources, which includes overnight repurchase agreements, of $795.3 million and stockholders' equity of $89.4 million. For further information regarding Center Bancorp, Inc., call 1-(800)-862-3683. For information regarding Union Center National Bank, visit our web site at http://www.centerbancorp.com

Forward-Looking Statements

All non-historical statements in this press release (including statements regarding the precise amount of the loan loss provision and charge-offs to be recorded for the second quarter of 2009, the future outcomes associated with the OREO project referenced herein, total non-performing asset and OREO levels to be reflected on the Corporation's books as of June 30, 2009, and the level of the allowance for loan losses for the second quarter of 2009) constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may use such 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, 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 the current global financial crisis and the deregulation of the financial services industry, and other risks cited in 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.
Anthony C. Weagley, President & Chief Executive Officer
Investor Relations
Joseph Gangemi
(908) 206-2886