Center Bancorp (CNBC) Sees Net Loan Growth of 12% in Q2; Gives Updates on Expense Reduction Initiative

June 25, 2008 3:33 PM EDT

Center Bancorp, Inc. (Nasdaq: CNBC) today announced that it expects to achieve net loan growth of approximately 12% in Q2. The loan portfolio for Q2, is expected to amount to about $632.0 million, up 18% from the same quarter last year, or up 12% from Q1.

At the same time, Center Bancorp has been successful in maintaining loan credit quality and anticipates that it will have reduced its nonperforming loans in the period to amount to only 0.1 percent of total outstanding loans at the end of the period. Additionally, the company has successfully reduced its OREO in its entirety and expects that level to remain at June 30, 2008.

The Company also commented on the status of its expense reductions: the cost reduction plans resulted in the reduction of workforce by 12 staff positions in the quarter, which in turn resulted in a one time charge of $145,000 for the period for severance and termination benefits. Furthermore, Center announced that it had completed its outsourcing arrangement with Atlantic Central Bankers Bank, BITS program and the migration of its telecommunications lines to their service platform. The result of these initiatives is expected to result in annual cost savings of $600,000.

Center Bancorp, Inc. operates as the holding company for The Union Center National Bank, which provides a range of banking services to individual and corporate customers in Union and Morris counties, New Jersey.

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