Center Bancorp, Inc. Reports Fourth Quarter and 2002 Earnings.Business Editors UNION, N.J.--(BUSINESS WIRE)--Jan. 23, 2003 Center Bancorp, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CNBC CNBC Center for the Neural Basis of Cognition (artificial intelligence) CNBC Consumer News and Business Channel CNBC Congress of National Black Churches, Inc. ), parent company to Union Center National Bank of Union, New Jersey, today reported increased earnings results for the fourth quarter and twelve months ended December December: see month. 31, 2002. Net income for the fourth quarter of 2002 amounted to $1,777,000 or $.42 per fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, an increase of $16,000 or .91% over the $1,761,000 or $.42 per fully diluted share earned for the comparable quarter of the previous year. All common share and per share amounts have been restated to reflect the 5% common stock dividend distributed on June June: see month. 1, 2002. For the full twelve months ended December 31, 2002, net income amounted to $8,003,000, an increase of 33.1% over the $6,011,000 earned in the twelve months of 2001. On a year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. basis, earnings per fully diluted share were $1.91 up 24.8% from $1.45 for the full twelve months of 2001. "We are pleased with the Corporation's results for the year" indicated John J. Davis See also John J. Davis (congressman) for the West Virginia politician. John J. Davis was a U.S. Army officer. From September 1, 1965 to October 19, 1966, Davis, then a Major General, served as the Assistant chief of Staff for Intelligence, Headquarters, Department , President & CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . He further noted that the Corporation's quarterly earnings performance remained strong notwithstanding a contraction contraction, in physics contraction, in physics: see expansion. contraction, in grammar contraction, in writing: see abbreviation. contraction - reduction of net interest margins and an 6.1% increase in operating overhead for the fourth quarter period, primarily related to salary and benefit expense associated with the continued expansion of the Corporation's franchise. We feel we had a good year of growth despite the economic downturn Downturn The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. that shadowed much of 2002. The Corporation's earnings results for both the fourth quarter and twelve months of 2002 reflected growth in revenue generated by core earnings performance. Total interest income for the fourth quarter of 2002 declined by $127,000 to $9,565,000 or 1.31%, over the comparable 2001 period, while total interest expense decreased by $125,000 or 3.50%, resulting in equivalent net interest income results for the fourth quarter periods of 2002 and 2001. Net interest income increased $3.6 million or 16.03% for the full twelve months ended December 31, 2002. The Corporation continued to have earning-asset growth both in the loan and the investment securities portfolios. Total average loan volume for the fourth quarter of 2002 increased to $226.4 million, an increase of $16.5 million (up 7.9% from $209.9 million for the comparable prior year quarter) and the investment securities portfolio increased on average $89.3 million for the fourth quarter (up 22.1% over the comparable prior year quarter). Despite the slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. experienced in the economy, the Corporation continues to experience loan demand in certain portfolio sectors, primarily real estate related. Demand for 1-4 family residential mortgages remained high during the fourth quarter. Loan growth was also attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to a lower prevailing rate environment coupled with branch network expansion, higher visibility in new markets, and a continued enhancement of product lines to meet market demands. The increased securities portfolio largely reflects the execution of the Corporation's investment strategies in response to the growth in average funding sources. While asset quality continues to remain high, during the fourth quarter of 2002 provisions of $90,000 was made to the allowance for loan losses, to maintain adequate loan loss reserves in relationship with loan portfolio growth. At December 31, 2002, the total allowance for loan and lease losses amounted to 1.09% of total loans. Average funding sources grew $117.1 million or approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 19.2% during the fourth quarter. Interest-bearing Adj. 1. interest-bearing - of financial obligations on which interest is paid liabilities increased $102.1 million on average during the fourth quarter, as compared to the fourth quarter in 2001. Total non-interest bearing core deposits increased $15.0 million on average and continue to be a low-cost source of funding. At December 31, 2002 this source of funding, which has swelled as a result of a flight from the stock market to short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. insured The person who obtains or is otherwise covered by insurance on his or her health, life, or property. The insured in a policy is not limited to the insured named in the policy but applies to anyone who is insured under the policy. insured n. deposit accounts, amounted to $117.0 million or 15.3% of total funding sources and 19.0% of total deposits. Net interest margins and spreads continued to experience some contraction during the fourth quarter of 2002, as interest rates remained low, following the sharp decline in interest rates in 2001. Extremely high prepayment Prepayment 1. The payment of a debt obligation prior to its due date. 2. The excess payment over a scheduled debt repayment amount. Notes: 1. Examples include deferred expenses such as rent and early loan repayments. 2. rates of mortgage-related assets have forced the Corporation to reinvest re·in·vest tr.v. re·in·vest·ed, re·in·vest·ing, re·in·vests To invest (capital or earnings) again, especially to invest (income from securities or funds) in additional shares. prepaid pre·pay tr.v. pre·paid, pre·pay·ing, pre·pays To pay or pay for beforehand. pre·pay  ment n. loan and investment cash flows at
lower rates, fueling further compression compression, external stress applied to an object or substance, tending to cause a decrease in volume (see pressure). Gases can be compressed easily, solids and liquids to a very small degree if at all. of margin. Additionally, the
asset sensitivity that had been built into the balance sheet in
anticipation The performance of an act or obligation before it is legally due. In patent law, the publication of the existence of an invention that has already been patented or has a patent pending, of an eventual rise in interest rates, given the protracted pro·tract tr.v. pro·tract·ed, pro·tract·ing, pro·tracts 1. To draw out or lengthen in time; prolong: disputants who needlessly protracted the negotiations. 2. depression of the yield curve, is contributing to short-term margin pressure. There has been an unfavorable impact on margins and spreads, as reflected for the fourth quarter of 2002 in comparison to the fourth quarter in 2001. The net interest spread decreased 45 basis points in the fourth quarter of 2002 to 3.10% from 3.55% for the comparable quarter in 2001 and decreased 21 basis points compared to the third quarter of 2002. For the three months ended December 31, 2002 the net interest margin (net interest income as a percentage of earning assets Earning Assets Any income-earning asset owned by a company. Notes: These assets are generally interest-bearing accounts, bonds, and securities available for sale. See also: Asset, Asset Valuation, Earnings, Net Interest Margin ), decreased 59 basis points to 3.45% from 4.04% for the fourth quarter in 2001; and decreased 29 basis points from 3.74% for the third quarter of 2002. Asset yields will be susceptible susceptible /sus·cep·ti·ble/ (su-sep´ti-b'l) 1. readily affected or acted upon. 2. lacking immunity or resistance and thus at risk of infection. sus·cep·ti·ble adj. to further reductions in yield in response to the Federal Reserve's November November: see month. 5th 50-basis point reduction on the federal funds Federal Funds Funds deposited to regional Federal Reserve Banks by commercial banks, including funds in excess of reserve requirements. Notes: These non-interest bearing deposits are lent out at the Fed funds rate to other banks unable to meet overnight reserve target rate to 1.25%, a 41-year low. Growth in non-interest revenue, which increased by 33.7% for the quarter, was a contributing factor for the positive quarterly results. Other non-interest income, exclusive of gains on securities sold (which increased $146,000), rose $72,000 or 11.2% for the fourth quarter compared with the comparable quarter in 2001. The increased revenue was driven by the decrease in the cash surrender value The amount of money that an insurance company pays the insured upon cancellation of a life insurance policy before death and which is a specific figure assigned to the policy at that particular time, reduced by a charge for administrative expenses. of bank owned life insurance, which amounted to $196,000 or an increase of $40,000 for the fourth quarter in comparison to the comparable quarter of 2001, and a decrease of $3,000 in other income. The decrease in other income is primarily a result of a decrease in letter of credit fees during the quarter. Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. rose approximately 6.10% for the fourth quarter in 2002 over the comparable period in 2001, with increased salary and benefit expense, bank premise and occupancy Gaining or having physical possession of real property subject to, or in the absence of, legal right or title. In a fire insurance policy, for example, the term occupancy expense representing most of the increase and reflecting the continued growth of the Corporation's franchise. Effective January January: see month. 1, 2002, the Corporation adopted SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System No. 142, "Goodwill and Intangible Assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. ;" under which annual amortization of unamortized goodwill ceased. Accordingly there was no amortization expense for the three and twelve-month periods ended December 31, 2002. Other operating expense Operating Expense The essential things that a company must purchase in order to maintain business. Notes: For example, the payment of employees wages are an operating expense. Also known as OPEX. , associated with amortization of goodwill, for the comparable periods in 2001 to $81,000 and $323,000 for the three and twelve months ended December 31, 2001. Total assets at December 31, 2002, reached $823.4 million, an increase of $133.8 million or 19.4% from assets of $689.6 million at December 31, 2001. The annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. return on average assets for the twelve months ended December 31, 2002, increased to 1.07% as compared with .99% for the comparable period in 2001. Deposit growth surged during the fourth quarter and for the year, up 23.4% and 24.0% respectively on average. The growth in average deposits was reflected in core interest-bearing accounts, savings and demand deposits. The Corporation's entry into Morris County over the last several years continues to provide growth opportunities to the Corporation and has proven to be a key strategy to the Corporation's expansion efforts. The total Tier 1 capital Tier 1 Capital A term used to describe the capital adequacy of a bank. Tier I capital is core capital, this includes equity capital and disclosed reserves. Notes: Equity capital includes instruments that can't be redeemed at the option of the holder. leverage ratio was 7.29% at December 31, 2002, down from 7.77% at December 31, 2001. Total Tier 1 capital increased to approximately $56.8 million. Book value per common share Book Value Per Common Share A measure used by owners of common shares in a firm to determine the level of safety associated with each individual share after all debts are paid accordingly. Formula: was $12.12 as compared with $10.64 a year ago. Tangible Possessing a physical form that can be touched or felt. Tangible refers to that which can be seen, weighed, measured, or apprehended by the senses. A tangible object is something that is real and substantial. An automobile is an example of tangible Personal Property. book value per common share increased to $11.63 from $10.14 a year ago. Annualized return on average stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. for the twelve months ended December 31, 2002 was 16.58% compared to 14.08% for the comparable period in 2001. This increase reflects the issuance of $10.0 million in Trust Preferred Securities on December 18, 2001. The Corporation had previously announced a common stock buyback Stock buyback A corporation's purchase of its own outstanding stock, usually in order to raise the company's earnings per share. stock buyback See buyback. program on January 24, 2002 under which the Corporation is authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: to purchase up to 120,750 shares (restated to reflect the 5% common stock dividend distributed on June 1, 2002) of the Corporation's outstanding common stock over the next year. Under that program the Corporation indicated that repurchases may be made from time to time as, in the opinion of management, market conditions warrant, in the open market or in privately negotiated transactions. John J. Davis, President and CEO, reiterated that any repurchases of shares will be added to the corporate treasury and will be used for future stock dividends and general corporate purposes. As of December 31, 2002 Center Bancorp had repurchased 26,000 shares under the program at an average cost per share of $20.68. Center Bancorp, Inc., through its wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , Union Center National Bank, Union, New Jersey, operates thirteen-banking locations. Banking centers are located in Union Township There are many townships named Union Township in the United States: Michigan
Madison. 1 City (1990 pop. 12,006), seat of Jefferson co., SE Ind., on the Ohio River; settled c.1806, inc. 1838. It is a port of entry and a tobacco marketing center. , Millburn/Vauxhall, Morristown Morristown. 1 Town (1990 pop. 16,189), seat of Morris co., N N.J., on the Whippany River; settled c.1710, inc. 1865. Although chiefly residential, it has diverse manufactures, including electronic products, health and beauty aids, auto parts, and (2 locations), Springfield Springfield. 1 City (1990 pop. 105,227), state capital and seat of Sangamon co., central Ill., on the Sangamon River; settled 1818, inc. as a city 1840. , and Summit, New Jersey. The Bank also operates a remote ATM location in Union Hospital in Union. Union Center National Bank, the largest commercial Bank headquartered in Union County, was chartered in 1923 and is a full service banking company. 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. All non-historical statements in this press release constitute forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Such statements include expressions about management's views regarding future performance. Such forward-looking statements involve certain risks and uncertainties. These statements may use such forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. terminology The terminology used in the computer and telecommunications field adds tremendous confusion not only for the lay person, but for the technicians themselves. What many do not realize is that terms are made up by anybody and everybody in a nonchalant, casual manner without any regard or 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 Origination The process through which a mortgage lender creates a mortgage secured by some amount of the mortgagor's real property. Notes: Also known as loan origination, everyone must go through the origination process when securing a mortgage for a piece of real volume, continued relationships with major customers including sources for loans, as well as the effects of economic conditions and legal and regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. barriers and structure, including those relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the deregulation Deregulation The reduction or elimination of government power in a particular industry, usually enacted to create more competition within the industry. Notes: Traditional areas that have been deregulated are the telephone and airline industries. of the financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. industry and other risks and uncertainties disclosed dis·close tr.v. dis·closed, dis·clos·ing, dis·clos·es 1. To expose to view, as by removing a cover; uncover. 2. To make known (something heretofore kept secret). in periodic public reports filed by the Corporation with the SEC. 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.
FINANCIAL HIGHLIGHTS (UNAUDITED)
For the 3 Months Ended For the 12 Months Ended
---------------------- ----------------------
12/31/02 12/31/01 12/31/02 12/31/01
Net Income $1,777,000 $1,761,000 $8,003,000 $6,011,000
Earnings per Share
------------------
Basic $0.42 $0.42 $1.91 $1.45
Diluted $0.42 $0.42 $1.89 $1.44
Weighted Average Shares Outstanding
-----------------------------------
Basic 4,203,091 4,154,735 4,196,741 4,136,782
Diluted 4,238,624 4,187,281 4,230,482 4,171,258
All common share and per share amounts have been restated to reflect
the 5% common stock dividend declared on April 16, 2002, distributed
on June 1, 2002.
Center Bancorp, Inc. and Subsidiaries
Consolidated Statements of Income
(unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
(in thousands, except
per share data) 2002 2001 2002 2001
------------------------------- ---------- ---------- ----------
Interest income:
Interest and fees
on loans $ 3,635 $ 3,789 $ 14,880 $ 15,301
Interest and
dividends on
investment
securities:
Taxable interest
income 5,754 5,755 24,903 22,236
Nontaxable
interest income 176 148 627 501
Interest on
Federal funds
sold and
securities
purchased under
agreement 0 0 59 331
------------------------------- ---------- ---------- ----------
Total
interest
income 9,565 9,692 40,469 38,369
------------------------------- ---------- ---------- ----------
Interest expense:
Interest on
certificates of
deposit $100,000
or more 89 194 472 1,465
Interest on other
deposits 2,043 1,958 8,749 9,216
Interest on
short-term
borrowings 1,318 1,423 5,301 5,326
------------------------------- ---------- ---------- ----------
Total
interest
expense 3,450 3,575 14,522 16,007
------------------------------- ---------- ---------- ----------
Net interest
income 6,115 6,117 25,947 22,362
Provision for loan
losses 90 142 360 656
------------------------------- ---------- ---------- ----------
Net interest
income
after
provision
for loan
losses 6,025 5,975 25,587 21,706
------------------------------- ---------- ---------- ----------
Other income:
Service charges,
commissions and
fees 417 382 1,600 1,560
Other income 104 107 383 365
BOLI 196 156 760 382
Gain on securities
sold 147 1 592 181
------------------------------- ---------- ---------- ----------
Total other
income 864 646 3,335 2,488
------------------------------- ---------- ---------- ----------
Other expense:
Salaries and
employee benefits 2,497 2,142 9,452 7,807
Occupancy expense,
net 411 341 1,644 1,509
Premises and
equipment expense 428 428 1,600 1,486
Stationery and
printing expense 164 134 583 468
Marketing and
Advertising 98 137 576 487
Other expenses 743 910 3,343 3,459
------------------------------- ---------- ---------- ----------
Total other
expense 4,341 4,092 17,198 15,216
------------------------------- ---------- ---------- ----------
Income
before
income tax
expense 2,548 2,529 11,724 8,978
Income tax expense 771 768 3,721 2,967
------------------------------- ---------- ---------- ----------
Net income $ 1,777 $ 1,761 $ 8,003 $ 6,011
------------------------------- ---------- ---------- ----------
Earnings per share
Basic $ 0.42 $ 0.42 $ 1.91 $ 1.45
Diluted $ 0.42 $ 0.42 $ 1.89 $ 1.44
------------------------------- ---------- ---------- ----------
Weighted average
common shares
outstanding
Basic 4,203,091 4,154,735 4,196,741 4,136,782
Diluted 4,238,624 4,187,281 4,230,482 4,171,258
------------------------------- ---------- ---------- ----------
All common share and per share amounts have been restated to reflect
the 5% common stock dividend declared April 16, 2002, paid June 1,
2002 to common stockholders of record May 17, 2002.
Center Bancorp, Inc. and Subsidiaries
Consolidated Statements of Condition
(unaudited)
Dec-31-02 Dec-31-01
---------------------------------------------------------------------
Assets:
Cash and due from banks $ 23,195 $ 29,668
---------------------------------------------------------------------
Total cash and cash equivalents 23,195 29,668
Investment securities held to maturity
(approximate market value of $219,921
in 2002 and $205,604 in 2001) 214,902 205,237
Investment securities available for sale 322,742 212,037
---------------------------------------------------------------------
Total investment securities 537,644 417,274
Loans, net of unearned income 229,051 211,236
Less - Allowance for loan losses 2,498 2,191
---------------------------------------------------------------------
Net loans 226,553 209,045
Premises and equipment, net 12,976 11,685
Accrued interest receivable 4,439 4,542
Bank Owned Life Insurance 14,143 13,382
Other assets 2,395 1,916
Goodwill 2,091 2,091
---------------------------------------------------------------------
Total assets $823,436 $689,603
---------------------------------------------------------------------
Liabilities
Deposits:
Non-interest bearing $116,984 $103,520
Interest bearing:
Certificates of deposit $100,000
and over 52,892 23,371
Savings and Time Deposits 446,475 370,942
---------------------------------------------------------------------
Total deposits 616,351 497,833
Federal Home Loan Bank advances 65,000 60,000
Federal funds purchased and securities
sold under agreements to repurchase 75,431 72,296
Corporation - obligated Mandatorily
redeemable trust preferred securities
of subsidiary trust holding solely
junior subordinated debentures of
the Corporation 10,000 10,000
Accounts payable and accrued liabilities 5,605 5,178
---------------------------------------------------------------------
Total Liabilities 772,387 645,307
---------------------------------------------------------------------
Stockholder's equity
Preferred stock, no par value:
Authorized 5,000,000 shares; non issued 0 0
Common stock, no par value:
Authorized 20,000,000 shares; issued
4,749,557 and 4,732,625 shares in
2002 and 2001, respectively 18,984 14,677
Additional paid in capital 4,562 4,180
Retained earnings 29,858 28,569
---------------------------------------------------------------------
53,404 47,426
Treasury stock at cost (539,202 and
569,741 shares in 2002 and 2001,
respectively) (4,254) (4,115)
Restricted stock (285) (135)
Accumulated other comprehensive income 2,184 1,120
---------------------------------------------------------------------
Total stockholders' equity 51,049 44,296
---------------------------------------------------------------------
Total liabilities and stockholders'
equity $823,436 $689,603
---------------------------------------------------------------------
All common share and per share amounts have been restated to reflect
the 5% common stock dividend declared April 16, 2002, paid June 1,
2002 to common stockholders of record May 17, 2002.
Center Bancorp, Inc. and Subsidiaries
Average Balance Sheet with Interest and Average Rates
(12 Month Averages)
Period Ended December 31,
(unaudited) 2002 2001
-------------------------------------------- ------------------------
(tax equivalent Interest Average Interest Average
basis, dollars in Average Income/ Yield/ Average Income/ Yield/
thousands) Balance Expense Rate Balance Expense Rate
-------------------------------------------- ------------------------
Assets
Interest-earning
assets:
Investment
securities:
Taxable $451,867 $24,903 5.51% $342,247 $22,236 6.50%
Non-taxable 13,694 950 6.94% 10,968 759 6.92%
Federal funds
sold and
securities
purchase 3,415 59 1.73% 6,771 331 4.89%
Loans, net of
unearned
income (1) 222,819 14,880 6.68% 205,991 15,301 7.43%
-------- -------- ----- -------- -------- -----
Total interest-
earning assets 691,795 40,792 5.90% 565,977 38,627 6.82%
-------- -------- ----- -------- -------- -----
Non-interest earning
assets
Cash and due from
banks 18,901 17,293
BOLI 13,738 11,598
Other assets 25,220 15,186
Allowance for
possible loan
losses (2,336) (1,865)
-------- --------
Total non-interest
earning assets 55,523 42,212
-------- --------
Total assets $747,318 $608,189
-------- --------
Liabilities and
stockholders' equity
Interest bearing
liabilities:
Money Market
deposits $96,788 1,798 1.86% $78,878 2,042 2.59%
Savings deposits 168,930 3,502 2.07% 118,209 3,438 2.91%
Time deposits 103,772 3,218 3.10% 98,710 4,529 4.59%
Other interest
bearing deposits 65,096 703 1.08% 48,590 672 1.38%
Short-term
borrowings 137,013 4,738 3.46% 119,565 5,304 4.44%
Trust Preferred 10,000 563 5.63% 384 22 5.73%
-------- -------- ----- -------- -------- -----
Total
interest-
bearing
liabilities 581,599 14,522 2.50% $464,336 16,007 3.45%
-------- -------- ----- -------- -------- -----
Noninterest-bearing
liabilities:
Demand deposits 110,896 95,213
Other noninterest-
bearing deposits 603 964
Other liabilities 5,962 4,971
-------- --------
Total
noninterest-
bearing
liabilities 117,461 101,148
Stockholders' equity 48,258 42,705
-------- --------
Total
liabilities
and
stockholders'
equity $747,318 $608,189
-------- --------
Net interest income
(tax equivalent
basis) $26,270 $22,620
-------- --------
Net Interest Spread 3.40% 3.37%
----- -----
Net interest income as
percent
of earning-assets 3.80% 4.00%
----- -----
Tax equivalent
adjustment (323) (258)
-------- --------
Net interest income $25,947 $22,362
-------- --------
Variance
----------------------------------------
Interest Average
(tax equivalent basis, Average Income/ Yield/
dollars in thousands) Balances Expense Rate
----------------------------------------
Basis Points
Assets
Interest-earning
assets:
Investment
securities:
Taxable $109,620 $2,667 -0.99%
Non-taxable 2,726 191 0.02%
Federal funds
sold and
securities
purchase (3,356) (272) -3.16%
Loans, net of
unearned
income (1) 16,828 (421) -0.75%
-------- -------- --------
Total interest-
earning assets 125,818 2,165 -0.92%
-------- -------- --------
Non-interest
earning assets
Cash and due
from banks 1,608
BOLI 2,140
Other assets 10,034
Allowance for
possible loan
losses (471)
--------
Total non-
interest
earning
assets 13,311
--------
Total assets $139,129
--------
Liabilities and
stockholders'
equity
Interest
bearing
liabilities:
Money Market
deposits $17,910 (244) -0.73%
Savings
deposits 50,721 64 -0.84%
Time deposits 5,062 (1,311) -1.49%
Other interest
bearing
deposits 16,506 31 -0.30%
Short-term
borrowings 17,448 (566) -0.98%
Trust Preferred 9,616 541 -0.10%
-------- -------- --------
Total interest-
bearing
liabilities $117,263 (1,485) -0.95%
-------- -------- --------
Noninterest-bearing
liabilities:
Demand deposits 15,683
Other
noninterest-
bearing
deposits (361)
Other
liabilities 991
--------
Total
noninterest-
bearing
liabilities 16,313
Stockholders'
equity 5,553
--------
Total
liabilities
and
stockholders'
equity $139,129
--------
Net interest
income (tax
equivalent
basis) $3,650
--------
Net Interest
Spread 0.03%
---------
Net interest
income as percent
of earning-assets -0.20%
---------
Tax equivalent
adjustment (65)
--------
Net interest
income $3,585
--------
(1) Includes loan fees (fee income is not material)
Center Bancorp, Inc. and Subsidiaries
Average Balance Sheet with Interest and Average Rates
(3 Month Quarterly Averages)
Period Ended December 31,
(unaudited) 2002 2001
----------------------------------------------- ----------------------
(tax equivalent Interest Average Interest Average
basis, dollars Average Income/ Yield/ Average Income/ Yield/
in thousands) Balance Expense Rate Balance Expense Rate
----------------------------------------------- ----------------------
Assets
Interest-earning assets:
Investment securities:
Taxable $476,981 $5,754 4.83% $390,048 $5,755 5.90%
Non-taxable 15,579 267 6.86% 13,256 220 6.64%
Federal funds sold
and securities
purchase 0 0 0.00% 174 0 0.00%
Loans, net of
unearned income (1) 226,394 3,635 6.42% 209,911 3,789 7.22%
-------- ------- ----- -------- ------ -----
Total
interest-earning
assets 718,954 9,656 5.37% 613,389 9,764 6.37%
-------- ------- ----- -------- ------ -----
Non-interest earning
assets
Cash and due from
banks 20,702 17,320
BOLI 14,027 10,705
Other assets 29,519 19,817
Allowance for possible
loan losses (2,452) (2,141)
-------- --------
Total non-interest
earning assets 61,796 45,701
-------- --------
Total assets $780,750 $659,090
-------- --------
Liabilities and
stockholders' equity
Interest bearing
liabilities:
Money Market deposits $ 96,737 378 1.56% $ 82,545 410 1.99%
Savings deposits 168,921 989 2.34% 125,603 740 2.36%
Time deposits 119,127 626 2.10% 91,122 798 3.50%
Other interest
bearing deposits 66,924 139 0.83% 59,912 204 1.36%
Short-term borrowings 147,388 1,175 3.19% 146,339 1,401 3.83%
Trust Preferred 10,000 143 5.60% 1,522 22 5.78%
-------- ------- ----- -------- ------ -----
Total
interest-bearing
liabilities 609,097 3,450 2.27% $507,043 3,575 2.82%
-------- ------- ----- -------- ------ -----
Noninterest-bearing
liabilities:
Demand deposits 115,539 100,624
Other
noninterest-bearing
deposits 701 610
Other liabilities 5,745 5,918
-------- --------
Total
noninterest-bearing
liabilities 121,985 107,152
Stockholders' equity 49,668 44,895
-------- --------
Total liabilities
and stockholders'
equity $780,750 $659,090
-------- --------
Net interest income (tax
equivalent basis) $ 6,206 $6,189
------- -------
Net Interest Spread 3.10% 3.55%
----- -----
Net interest income
as percent of
earning-assets 3.45% 4.04%
----- -----
Tax equivalent adjustment (91) (72)
------- ------
Net interest income $6,115 $6,117
------- -------
Variance
------------------------------------------------
(tax equivalent Interest Average
basis, dollars Average Income/ Yield/
in thousands) Balances Expense Rate
------------------------------------------------
Assets
Interest-earning assets: Basis Points
Investment securities:
Taxable $ 86,933 $ (1) -1.08%
Non-taxable 2,323 47 0.22%
Federal funds sold
and securities
purchased under
agreement to resell (174) 0 0.00%
Loans, net of
unearned income (1) 16,483 (154) -0.80%
--------- ------ ------
Total
interest-earning
assets 105,565 (108) 1.00%
--------- ----- ------
Non-interest earning
assets
Cash and due from
banks 3,382
BOLI 3,322
Other assets 9,702
Allowance for possible
loan losses (311)
--------
Total non-interest
earning assets 16,095
--------
Total assets $121,660
--------
Liabilities and
stockholders' equity
Interest bearing
liabilities:
Money Market deposits $ 14,192 (32) -0.42%
Savings deposits 43,318 249 -0.01%
Time deposits 28,005 (172) -1.40%
Other interest
bearing deposits 7,012 (65) -0.53%
Short-term borrowings 1,049 (226) -0.64%
Trust Preferred 8,478 121 -0.18%
-------- ------ -------
Total
interest-bearing
liabilities $102,054 (125) -0.55%
-------- ------ -------
Noninterest-bearing
liabilities:
Demand deposits 14,915
Other
noninterest-bearing
deposits 91
Other liabilities (173)
--------
Total
noninterest-bearing
liabilities 14,833
Stockholders' equity 4,773
--------
Total liabilities
and stockholders'
equity $121,660
--------
Net interest income (tax
equivalent basis) $ 17
------
Net Interest Spread 0.45%
-------
Net interest income
as percent of
earning-assets -0.59%
-------
Tax equivalent adjustment (19)
------
Net interest income $ (2)
------
(1) Includes loan fees (fee income is not material)
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