Carnegie earnings top $2 million for second straight year cash & stock dividends declared.

PRINCETON, N.J.--(BUSINESS WIRE)--Feb. 3, 1997--CARNEGIE BANCORP (NASDAQ/NNM: CBNJ, CBNJW) announced net income after taxes for 1996 of $2,144,000, compared to $2,128,000 for 1995. Primary and fully diluted net income per share for 1996 were $1.01 and $1.00 respectively, compared to $1.08 per share primary and $1.07 per share fully diluted net income for 1995.

According to Thomas L. Gray, Jr., President and CEO, "Although year-to-year net income only increased by $16,000, that is impressive considering Carnegie had four newly opened branch offices operating at a loss in 1996. Additionally, much of the increase in the provision for loan losses during 1996 was attributable to the very strong growth in the loan portfolio. The year a loan is booked, the Bank's income is impacted by the provision, without the benefit of a full year of interest income. We expect these new loans to add to the Company's earnings in future periods."

Carnegie's total assets grew 37% to $343 million at year end 1996, compared to $251 million for the previous year. Also for the year, total loans rose to over $263 million, compared to $163 million at December 31, 1995, for an increase of more than 62%. Carnegie posted $303 million in total deposits as of December 31, 1996, representing an increase of 44%, compared to 1995. President Gray stated, "We are most gratified to see the bank achieve such excellent growth while maintaining such high performance in earnings and asset quality."

In recognition of the earnings, the Board of Directors of Carnegie Bancorp recently declared an increase in its regular quarterly cash dividend to $0.14 per share. The dividend will be paid on March 19, 1997 to shareholders of record on February 19, 1997. This represents the 21st consecutive quarter in which the Company has paid a cash dividend. Carnegie's solid earnings have enabled the Company to consistently pay a quarterly cash dividend, beginning with $0.06 per share in 1992, $0.08 per share in 1993, $0.10 per share in 1994, $0.12 per share in 1995, $0.12 per share in the first three quarters of 1996 and $0.13 per share in the fourth quarter of 1996. The Carnegie Board simultaneously declared a 5% stock dividend, also to be paid on March 19, 1997 to shareholders of record on February 12, 1997. The record date for the stock dividend is a week prior to the record date for the cash dividend so that the cash dividend will be received on the new shares from the stock dividend as well. This is the eighth consecutive year that Carnegie has paid a 5% stock dividend.

CARNEGIE BANK, N.A., a national bank headquartered in Princeton, New Jersey, is the single subsidiary of CARNEGIE BANCORP. Carnegie Bank, N.A. serves small businesses, professionals and high net worth individuals through its eight branch offices located in Princeton, Hamilton, Marlton, Denville, Toms River, Montgomery Township, Flemington, New Jersey, as well as Langhorne, Pennsylvania. A merger agreement with Regent Bancshares Corp. (NASDAQ: RBNK) of Philadelphia, originally signed in August 1995, was mutually terminated on January 14, 1997. The two companies had shifted their respective strategic focus during the merger agreement period. -0-

                     CARNEGIE BANCORP AND SUBSIDIARY
                   CONSOLIDATED CONDENSED BALANCE SHEETS

                                             December 31,
                                           1996        1995
ASSETS
                           (000's omitted except for per share data)

Cash and cash equivalents:
    Cash and due from banks                 $16,745    $10,207
    Federal funds sold                     --------   --------
        Total cash and cash equivalents      16,745     10,207
Investment securities:
    Available for sale                       30,015     70,577
    Held to maturity                         23,359    -------
          Total investment securities        53,374     70,577
Loans, net of allowance for loan losses
 of $2,665 at December 31, 1996
 and $1,754 at December 31, 1995            263,797    162,587
Premises and equipment, net                   4,482      3,722
Other real estate owned                         473      -----
Accrued  interest receivable  and  other      4,486      3,469
assets
                  Total Assets             $343,357   $250,562

LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
  Non-interest bearing demand deposits      $42,372    $40,944
     Interest bearing deposits:
          Savings deposits                  139,671     70,430
          Other time deposits                62,008     54,327
            Certificates of deposit
             $100,000 and over               58,511     44,500
                 Total deposits             302,562    210,201
Short-term borrowings                         1,000     17,500
Long-term debt                               14,425     ------
Accrued interest payable and other liabilities 1,628     1,067
                 Total liabilities          319,615    228,768
Commitments and contingencies
Stockholders' equity:
 Common  stock, no  par  value,
 authorized 5,000,000 shares;
 issued and outstanding
 1,940,942 at December 31, 1996
 and 1,754,441 at December 31, 1995           9,705      8,772
         Capital surplus                     12,711     10,869
         Undivided profits                    1,530      1,713
          Net  unrealized holding  gains
           (losses) on securities
           available for sale                  (204)       440
         Total stockholders' equity          23,742     21,794
       Total Liabilities and
         Stockholders' Equity              $343,357   $250,562
BOOK VALUE PER SHARE                         $11.65     $11.27
ADJUSTED  SHARES OUTSTANDING  (after  5%
 stock dividend
 declared 1/15/97)                        2,037,989  1,934,271

                      CARNEGIE BANCORP AND SUBSIDIARY
                CONSOLIDATED CONDENSED STATEMENTS OF INCOME

                                         Year Ended December 31,
                                            1996        1995

(000's omitted except for per share data)
Interest income:
     Loans, including fees                  $20,225    $14,727
     Federal funds sold                         106        475
     Investment securities:
              Taxable                         3,750      2,535
              Tax-exempt                        383        969
                       Total interest income 24,464     18,706
Interest expense:
    Savings deposits                          3,519      3,096
    Other time deposits                       3,448      2,947
    Certificates of deposit $100,000 and over 2,128      2,124
    Borrowed funds                            1,789        297
                 Total interest expense      10,884      8,464
                    Net interest income      13,580     10,242
Provision for loan losses                     1,609        369
        Net interest income
         after provision for loan losses     11,971      9,873
Non-interest income:
     Service fees on deposits                   422        433
     Other fees and commissions                 339        311
      Gain  on sale of other real-estate owned  294        ---
     Investment securities gains                399        132
     Investment securities losses              (94)      (132)
               Total non-interest income      1,360        744
Non-interest expense:
     Salaries and wages                       3,826      2,683
    Employee benefits                           858        692
    Occupancy expense                         1,466      1,024
    Furniture and equipment                     915        583
    Other                                     2,989      2,742
              Total non-interest expense     10,054      7,724
              Income before income taxes      3,277      2,893
Income tax expense                            1,133        765
                      Net Income             $2,144     $2,128
Per Common Share:
        Net income-primary                    $1.01      $1.08
        Net income-fully diluted              $1.00      $1.07
Weighted   average  shares  outstanding,
 adjusted for 5% stock dividend
 declared 1/15/97 (in thousands):
       Primary                                2,125      1,973
       Fully Diluted                          2,142      1,990

CONTACT: THOMAS L. GRAY, JR. [phone]

LEONARDO G. ZANGANI [phone]