Center Bancorp Reports Increased First Quarter Earnings.

Business Editors

UNION, N.J.--(BUSINESS WIRE)--April 19, 2000

Center Bancorp, Inc. (NASDAQ NM:CNBC) reported earnings of $1,196,000 for the first quarter of 2000, an increase in net income of $65,000 or 5.8%, as compared to the first quarter of 1999.

Earnings per share increased to $.31 per share fully diluted and the resultant return on average shareholders' equity increased to approximately 13.0%.

The results for the first quarter of 2000 are marked by an increase in operating revenue of approximately 10.6%, excluding losses on securities sold, and reflect continued strong core earnings performance.

Due to an increase of 13.6% in average loans outstanding, coupled with a 4.9% increase in average volumes of higher yielding investments, net interest income on a fully taxable equivalent basis, after the provision for loan losses, increased $138,000 or 2.9% as compared with the first quarter of 1999.

The expense to the provision for loan losses increased 183.3% over the comparative period of 1999, due to additional funding required to, maintain an adequate level of the allowance for loan losses, in concert with loan portfolio growth. Average loans outstanding during the first quarter of 2000 were $173.0 million, up $20.7 million compared with $152.3 million a year earlier.

Partially mitigating the favorable impact of earning-asset growth was an increase in the cost of funds. Rising interest rates, as the Federal Reserve hiked rates twice during the quarter was the contributing force behind the increased funding costs.

For the three-month period ended March 31, 2000, the Corporation's net interest margin was 4.16% as compared to the 4.26% during the first quarter of 1999. Although the Corporation reinvested funds from the growth of the balance sheet into higher yielding loans and investments, the cost of supporting funds outpaced this growth.

John J. Davis, President & CEO, remarked that we are off to a good start this year, despite increased interest rates, and we continue to demonstrate strong financial performance as we pursue our strategic objectives and bring them to fruition.

Other noninterest income increased to $340,000 or 38.2% for the three months ending March 31, 2000. This source of revenue was driven by increased business activity, debit card income and ATM customer fees.

At March 31, 2000 total assets amounted to $518.9 million, an increase of $22.2 million or 4.5% since March 31, 1999. Increased funding sources of $21.8 million were achieved by our expansion into Summit and our Morris county locations, as well as growth in our existing markets. Loans increased $21.1 million, an increase of approximately 13.4% over March 31, 1999.

Earning-asset quality continues to remain high.

Center Bancorp, Inc. is the holding company for Union Center National Bank. The Bank offers a broad range of lending depository, trust and related financial services to commercial, industrial, and governmental customers. Center Bancorp, Inc., through its wholly-owned subsidiary, Union Center National Bank, operates thirteen banking locations.

Banking centers are located in the Township of Union (6 locations), and one each in Millburn/Vauxhall, Springfield, Berkeley Heights, Madison, Morristown and Summit, New Jersey. The Bank also operates two remote ATM sites, one at the main campus of Union County College, Cranford, New Jersey, and the second at Union Hospital in Union, New Jersey.

For further information regarding Center Bancorp, Inc., call 800/862-3683. For information regarding Union Center National Bank visit our web site at http://www.ucnb.com.

                   FINANCIAL HIGHLIGHTS (unaudited)

                                 For the Three Months Ended
                                 3/31/00            3/31/99

Net Income                       $1,196,000         $1,131,000

Earnings per Share

           Basic                 $ .31              $ .30
           Diluted               $ .31              $ .30

Weighted Average Shares Outstanding

           Basic                 3,801,598          3,760,772
           Diluted               3,820,368          3,787,237

This release contains certain forward-looking statements, either expressed or implied, which concern anticipated future financial performance. These statements involve certain risks, uncertainties, estimates and assumptions made by management, which are subject to factors beyond the company's control, such as the interest rate environment, the overall economy and technological changes.

Accordingly, actual results may differ materially from those expressed or implied by these forward-looking statements.