Center Bancorp, Inc. Reports First Quarter 2008 Earnings

Market Wire, April, 2008

Center Bancorp, Inc. (NASDAQ: CNBC), parent company of Union Center National Bank, today reported operating results for the first quarter ended March 31, 2008. Earnings amounted to $1.2 million or $0.09 per diluted share for the quarter ended March 31, 2008 as compared with earnings of $1.3 million or $0.09 per diluted share for the quarter ended March 31, 2007.

"The results for the period announced today reflect our progress in improving the future stability of revenue streams and are in line with the work started in 2007 that we intend to continue into 2008. With these actions, our first quarter results reflect a marked improvement in our balance sheet and net interest margin, adequate loan loss reserves supported by continued good credit quality in our asset portfolios and reduced operating overhead," remarked Anthony C. Weagley, President and CEO.

Quarterly Condensed Consolidated Income Statements (unaudited)

(dollars in thousands, except per share data)
For the
 quarter
 ended:    3/31/08   12/31/07    9/30/07    6/30/07    3/31/07   12/31/06
         ---------- ---------- ---------- ---------- ---------- ----------
Net interest
 income  $    5,687 $    5,172 $    5,481 $    5,225 $    5,621 $    5,691
Provision
 for loan
 losses         150        150        100        100          0         57
         ---------- ---------- ---------- ---------- ---------- ----------
Net interest
 income after
 loan loss
 provision    5,537      5,022      5,381      5,125      5,621      5,634
Non interest
 income         866        874        911      1,177      1,410      1,618
Non interest
 expense     (4,953)    (6,034)    (6,080)    (6,056)    (6,428)    (6,656)
         ---------- ---------- ---------- ---------- ---------- ----------
Income
 (loss)
 before
 income
 tax          1,450       (138)       212        246        603        596
Income tax
 expense
 (benefit)      233       (670)      (786)      (771)      (706)    (1,695)
         ---------- ---------- ---------- ---------- ---------- ----------
NET
 INCOME  $    1,217 $      532 $      998 $    1,017 $    1,309 $    2,291
         ---------- ---------- ---------- ---------- ---------- ----------
Earnings
 per share
 (basic) $     0.09 $     0.04 $     0.07 $     0.07 $     0.09 $     0.16
Earnings
 per share
 (dilut-
 ed)     $     0.09 $     0.04 $     0.07 $     0.07 $     0.09 $     0.16
Weighted
 average
 common
 shares
 outstanding:
Basic    13,145,078 13,441,082 13,864,722 13,910,450 13,910,450 13,898,178
Diluted  13,163,917 13,469,764 13,913,919 13,990,642 13,986,333 13,980,270

All common share and per common share amounts have been adjusted for 5%
stock dividend

Note: Due to rounding quarterly earnings per share may not add up to the
reported annual earnings per share




Selected financial ratios (annualized where applicable)

As of or for the
 quarter ended:       3/31/08  12/31/07 09/30/07 06/30/07 03/31/07 12/31/06
                      -------  -------  -------  -------  -------  -------
Return on average
 assets                  0.50%    0.22%    0.40%    0.40%    0.50%    0.88%
Return on average
 equity                  5.60%    2.44%    4.21%    4.15%    5.37%    9.46%
Net interest margin
 (tax equivalent
 basis)                  2.74%    2.48%    2.63%    2.43%    2.55%    2.62%
Loan/Deposit ratio      90.71%   78.91%   84.62%   78.71%   73.42%   75.73%
Stockholders'
 equity/total assets     8.58%    8.38%    9.49%    9.57%    9.36%    9.28%
Efficiency ratio         70.9%    92.7%    89.3%    92.8%    92.8%    94.5%
Book value per share  $  6.51  $  6.48  $  6.85  $  6.89  $  7.06  $  7.02
Return on average
 tangible
 stockholders' equity    6.98%    3.04%    5.15%    5.04%    6.53%   11.53%
Tangible
 stockholders'
 equity/tangible
 assets                  6.98%    6.80%    7.88%    7.98%    7.84%    7.77%
Tangible book value
 per share            $  5.20  $  5.17  $  5.59  $  5.65  $  5.81  $  5.77

The Corporation recorded net interest income on a fully taxable equivalent basis of $6.1 million for both the three months ended March 31, 2008 and 2007. Interest income and interest expense each declined by $1.1 million from the same period last year. Compared to 2007, net interest earning assets declined by $28.1 million while net interest spread improved by 34 basis points, due primarily to improved funding costs. On a linked quarter basis, net interest spread and margin improved by 33 basis points and 26 basis points, respectively.

Steps were taken during the fourth quarter of 2007 to improve the Corporation's net interest margin by allowing a runoff of certain high rate deposits and to position the Corporation's cash position for further outflows in the first quarter of 2008. The result was an improvement in margin from the comparison period in 2007. Recent action by the Federal Open Market Committee allowed the Corporation to further reduce liability costs in the later part of the first quarter of this year. As such, the effect of these positive changes is expected to have a greater impact in the second quarter of 2008. During the first quarter, the Corporation secured approximately $45 million of longer term funding with a weighted average rate of 2.67% in an effort to support continued loan growth.