Carnegie increases dividend, purchases loans & announces third quarter earnings.

PRINCETON, N.J.--(BUSINESS WIRE)--Oct. 18, 1996--Carnegie Bancorp (NASDAQ/NNM: CBNJ, CBNJW) announced today that it has increased its quarterly cash dividend from $0.12 to $0.13 per share at its regularly scheduled Board of Directors meeting on Oct. 16, 1996. The dividend will be paid on Dec. 18, 1996 to shareholders of record as of Nov. 20, 1996.

Carnegie also announced that it had purchased $27 million in participations in commercial and 1-4 family loans from Regent National Bank, (NASDAQ: RBNK) with servicing retained by Regent. These loans were underwritten to Carnegie's underwriting criteria, yield an average of 8.93% and were, on average, originated 14 months ago. As part of its proposed acquisition of Regent Bancshares Corp., Carnegie has conducted extensive due diligence on Regent's commercial and residential loan portfolio. Carnegie anticipates purchasing another $13 million in loan participations from Regent during the next 30 days, subject to Carnegie's ongoing diligence on the portfolio. To fund the purchase of these participations, Carnegie has issued $42.2 million in certificates of deposit with an average yield of 6.35% and a maturity of seven months.

For the three and nine months ended Sept. 30, 1996, Carnegie had net income before provision for loan losses of $859,000 and $2.4 million, respectively, an increase of 64.5% and 37.1% over comparable net income before loan provision for loan losses in the comparable periods of 1995. However, in connection with the loan participations purchase discussed above, and in recognition of an internally generated increase in Carnegie's loan portfolio of $19 million, Carnegie took a provision for loan losses of $668,000 for the period ended Sept. 30, 1996. Carnegie did not take a provision for loan losses in the comparable period of 1995 due to a moderate level of loan growth during the period. The effect of the 1996 provision was to produce net income after taxes of $418,000, or $0.21 per share on a primary basis and $0.20 per share on a fully diluted basis for the three months ended Sept. 30, 1996, compared to net income of $522,000, or $0.27 per share on both a primary and fully diluted basis, for the comparable period of 1995, a decrease of 20%.

For the nine months ended Sept. 30, 1996, Carnegie had net income after taxes of $1.6 million, or $0.80 per share on a primary basis and $0.79 per share on a fully diluted basis, compared to a net income after taxes of $1.6 million, or $0.84 per share on a primary basis and $0.83 per share on a fully diluted basis, for the comparable period of 1995. The change in per share net income between 1996 and 1995 is a result of increased average shares outstanding.

Attached are Consolidated Condensed Balance Sheets (unaudited) for Sept. 30, 1996 and 1995 and Consolidated Condensed Statements of Income (unaudited) for the three and nine months ended Sept. 30, 1996 and 1995.

The company's solid earnings occurred even with the recent opening of four new branch offices in Toms River, Montgomery Township, Flemington, New Jersey and Langhorne, Pennsylvania, all of which have yet to be operating profitably.

The acquisition of Regent Bancshares Corp., as previously announced, is back on track as a result of the execution of amendments to the merger agreement. Shareholders are expected to vote on the merger proposal in January 1997. An April closing is anticipated.

Carnegie Bank N.A., a national bank headquartered in Princeton, N.J., is the single subsidiary of Carnegie Bancorp. Carnegie Bank N.A. serves small businesses, professionals and high net worth individuals through its branch offices located in Princeton, Hamilton, Marlton, Denville, Toms River, Montgomery Township, Flemington, New Jersey and Langhorne, Pennsylvania. -0-

                  CARNEGIE BANCORP AND SUBSIDIARY
           CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Unaudited)

                            Three Months Ended    Nine Months Ended
                               September 30,         September 30,
                             1996        1995      1996       1995
                              (000's omitted except per share data)

Interest Income:
   Loans, including fees     $5,210     $3,635    $13,977    $10,854
   Federal funds sold            18        160         39        469
   Investment securities:
     Taxable                  1,007        627      2,813      1,652
     Tax-exempt                  12        244        374        723
      Total interest income   6,247      4,666     17,203     13,698
Interest Expense:
   Savings deposits             628        704      1,986      2,417
   Other time deposits          894        970      2,590      2,090
   Certificates of deposit
      $100,000 and over         516        522      1,542      1,549
   Borrowed funds               644         10      1,346        127
      Total interest expense  2,682      2,206      7,464      6,183

      Net interest income     3,565      2,460      9,739      7,515

Provision for loan losses       668         -       1,161        242
      Net interest income after
         provision for loan
         losses               2,897      2,460      8,578      7,273
Non-interest income:
   Service fees on deposits     108        113        306        332
   Other fees & commissions      86         66        258        241
   Gain on sale of other
     real estate owned           -          -         294         -
   Investment securities
     gains                       82         -         399        130
   Investment securities
     losses                      -          -         (94)      (132)
      Total non-interest
       income                   276        179      1,163        571
Non-interest expense:
   Salaries & Wages             982        702      2,823      1,891
   Employee benefits            212        180        652        556
   Occupancy expense            371        279      1,036        759
   Furniture & Equipment        240        155        684        395
   Other                        695        627      2,153      2,134
      Total non-interest
       expense                2,500      1,943      7,348      5,735
      Income before income
       taxes                    673        696      2,393      2,109
Income tax expense              255        174        805        552

      Net Income              $ 418     $  522    $ 1,588    $ 1,557

Per Common Share:
   Net income-primary         $ 0.21    $ 0.27    $  0.80    $  0.84
   Net income-fully diluted   $ 0.20    $ 0.27    $  0.79    $  0.83
   Cash dividends             $ 0.12    $ 0.12    $  0.36    $  0.36

Weighted average shares outstanding:
  (in thousands)
   Primary                     2,009     1,902      1,988      1,852
   Fully diluted               2,054     1,958      2,009      1,871
-0-

                         CARNEGIE BANCORP AND SUBSIDIARY
                    CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited)

                                     September 30,  September 30,
                                         1996         1995
                                          (000's omitted)

ASSETS
Cash and cash equivalents:
  Cash and due from banks              $ 16,242     $ 9,459
  Federal funds sold                      5,525         -
     Total cash and cash equivalents     21,767       9,459
Investment Securities:
  Available for sale                     30,027      48,000
  Held to maturity (market value
   $23,308 at September 30, 1996 and
   $25,624 at September 30, 1995)        23,655      25,107
     Total investment securities         53,682      73,107
Loans, net of allowance for loan losses
 of $2,492 at September 30, 1996 and
 $1,640 at September 30, 1995           241,153     145,723
Premises and equipment, net               4,099       3,440
Other real estate owned                     343          -
Accrued interest receivable and
 other assets                             4,410       3,324
     Total Assets                     $ 325,454   $ 235,053

LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
  Non-interest bearing demand deposits $ 42,166    $ 38,464
  Interest bearing deposits
   Savings deposits                      73,586      75,582
   Other time deposits                   92,498      56,164
   Certificates of deposits $100,000
    and over                             49,699      41,240
     Total deposits                     257,949     211,450
Short-term borrowings                    30,000       2,000
Long-term debt                           14,425         -
Accrued interest payable and other
 liabilities                              1,163         979
     Total liabilities                  303,537     214,429
Commitments and contingencies
Stockholders' equity:
   Common stock, no par value,
    authorized 5,000,000 shares;
     issued and outstanding 1,843,926
     at September 30, 1996 and
     1,751,076 at September 30, 1995      9,220       8,755
   Capital surplus                       11,868      10,850
   Undivided profits                      1,226       1,352
   Net unrealized holding losses on
    securities available for sale          (397)       (333)
     Total stockholders' equity          21,917      20,624
     Total Liabilities and
      Stockholders' Equity             $325,454    $235,053

CONTACT: Carnegie Bancorp

Thomas L. Gray, Jr., 609/520-0601

or

L.G. Zangani Inc.

Leonardo G. Zangani, 908/788-9660