Center Bancorp Inc. (CNBC, Financial) filed Quarterly Report for the period ended 2009-03-31.
Center Bancorp Inc. is a one-bank holding company for the Union Center National Bank. The Bank offers a broad range of lending depository and related financial services including trust to commercial industrial and governmental customers. The Bank obtained full trust powers enabling it to offer a variety of trust services to their customers. In the lending area these services include short and medium term loans lines of credit letters of credit working capital loans real estate construction loans and mortgage loans. Center Bancorp Inc. has a market cap of $104.58 million; its shares were traded at around $8.05 with a P/E ratio of 19.63 and P/S ratio of 1.99. The dividend yield of Center Bancorp Inc. stocks is 4.47%.
Net interest income on a fully tax-equivalent basis increased $439,000 or 7.2 percent to $6.6 million for the three months ended March 31, 2009 as compared to the same period in 2008. For the three months ended March 31, 2009, the net interest margin increased 7 basis points to 2.81 percent from 2.74 percent during the three months ended March 31, 2008, due primarily to lower rates paid on interest-bearing liabilities. For the three months ended March 31, 2009, a decrease in the average yield on interest-earning assets of 55 basis points was more than offset by a decrease in the average cost of interest-bearing liabilities of 82 basis points, which increased the Corporation s net interest spread by 27 basis points for the period. On a quarterly linked sequential basis, net interest spread and margin declined by 13 basis points and 20 basis points, respectively.
For the three-month period ended March 31, 2009, interest income on a tax-equivalent basis decreased by $671,000 or 5.2 percent from the comparable three-month period in 2008. This decrease was due primarily to a decline in balances of the Corporation s investment securities portfolio coupled with a decline in rates due to the actions taken by the Federal Reserve to lower market interest rates over the past year. The Corporation s loan portfolio increased on average $114.3 million to $680.0 million from $565.7 million in the same quarter in 2008, primarily driven by growth in commercial real estate business related sectors of the loan portfolio. The loan portfolio represented approximately 72.8 percent of the Corporation s interest-earning assets on average during the first quarter of 2009 as compared to 63.4 percent in the same quarter in 2008. The increase in loan volume was partially offset by the above-mentioned decline in the volume of the Corporation s investment portfolio. Average investment volume decreased during the current three month period by $62.6 million compared to the first quarter of 2008.
For the three months ended March 31, 2009, interest expense declined by $1.1 million or 16.6 percent from the same period in 2008. The average rate of interest-bearing liabilities decreased 82 basis points to 2.64 percent for the three months ended March 31, 2009 from 3.46 percent for the three months ended March 31, 2008. At the same time, the average volume of interest-bearing liabilities increased by $73.3 million. The increase in the average balance of interest-bearing liabilities during the three months ended March 31, 2009 was primarily in time deposits (CDARS Reciprocal deposits) of $113.4 million and in savings deposits of $23.6 million, partially offset by decreases of $59.5 million in money market deposits and $8.3 million in other interest bearing deposits. Steps were taken throughout 2008 to improve the Corporation s net interest margin by allowing the runoff of certain high rate deposits and to position the Corporation for further cash outflows during the year. The result was a steady improvement in the Corporation s cost of funds and net interest margin during 2008. As a result of these factors, for the three months ended March 31, 2009, the Corporation s net interest spread on a tax-equivalent basis increased to 2.55 percent from 2.28 percent for the three months ended March 31, 2008.
Read the The complete ReportCNBC is in the portfolios of Bruce Sherman of Private Capital Management.
Center Bancorp Inc. is a one-bank holding company for the Union Center National Bank. The Bank offers a broad range of lending depository and related financial services including trust to commercial industrial and governmental customers. The Bank obtained full trust powers enabling it to offer a variety of trust services to their customers. In the lending area these services include short and medium term loans lines of credit letters of credit working capital loans real estate construction loans and mortgage loans. Center Bancorp Inc. has a market cap of $104.58 million; its shares were traded at around $8.05 with a P/E ratio of 19.63 and P/S ratio of 1.99. The dividend yield of Center Bancorp Inc. stocks is 4.47%.
Highlight of Business Operations:
Net income for the three months ended March 31, 2009 amounted to $ 799,000 compared to net income of $1.2 million for the comparable three-month period ended March 31, 2008. The Corporation recorded earnings per diluted common share of $0.05 for the three months ended March 31, 2009 as compared with earnings of $0.09 per diluted common share for the three months ended March 31, 2008. Dividends and accretion relating to the preferred stock issued to the U.S. Treasury reduced earnings by approximately $0.01 per fully diluted common share. The annualized return on average assets decreased to 0.30 percent for the three months ended March 31, 2009 as compared to 0.50 percent for the comparable three-month period in 2008. The annualized return on average stockholders equity was 3.52 percent for the three-month period ended March 31, 2009 as compared to 5.60 percent for the three months ended March 31, 2008.Net interest income on a fully tax-equivalent basis increased $439,000 or 7.2 percent to $6.6 million for the three months ended March 31, 2009 as compared to the same period in 2008. For the three months ended March 31, 2009, the net interest margin increased 7 basis points to 2.81 percent from 2.74 percent during the three months ended March 31, 2008, due primarily to lower rates paid on interest-bearing liabilities. For the three months ended March 31, 2009, a decrease in the average yield on interest-earning assets of 55 basis points was more than offset by a decrease in the average cost of interest-bearing liabilities of 82 basis points, which increased the Corporation s net interest spread by 27 basis points for the period. On a quarterly linked sequential basis, net interest spread and margin declined by 13 basis points and 20 basis points, respectively.
For the three-month period ended March 31, 2009, interest income on a tax-equivalent basis decreased by $671,000 or 5.2 percent from the comparable three-month period in 2008. This decrease was due primarily to a decline in balances of the Corporation s investment securities portfolio coupled with a decline in rates due to the actions taken by the Federal Reserve to lower market interest rates over the past year. The Corporation s loan portfolio increased on average $114.3 million to $680.0 million from $565.7 million in the same quarter in 2008, primarily driven by growth in commercial real estate business related sectors of the loan portfolio. The loan portfolio represented approximately 72.8 percent of the Corporation s interest-earning assets on average during the first quarter of 2009 as compared to 63.4 percent in the same quarter in 2008. The increase in loan volume was partially offset by the above-mentioned decline in the volume of the Corporation s investment portfolio. Average investment volume decreased during the current three month period by $62.6 million compared to the first quarter of 2008.
For the three months ended March 31, 2009, interest expense declined by $1.1 million or 16.6 percent from the same period in 2008. The average rate of interest-bearing liabilities decreased 82 basis points to 2.64 percent for the three months ended March 31, 2009 from 3.46 percent for the three months ended March 31, 2008. At the same time, the average volume of interest-bearing liabilities increased by $73.3 million. The increase in the average balance of interest-bearing liabilities during the three months ended March 31, 2009 was primarily in time deposits (CDARS Reciprocal deposits) of $113.4 million and in savings deposits of $23.6 million, partially offset by decreases of $59.5 million in money market deposits and $8.3 million in other interest bearing deposits. Steps were taken throughout 2008 to improve the Corporation s net interest margin by allowing the runoff of certain high rate deposits and to position the Corporation for further cash outflows during the year. The result was a steady improvement in the Corporation s cost of funds and net interest margin during 2008. As a result of these factors, for the three months ended March 31, 2009, the Corporation s net interest spread on a tax-equivalent basis increased to 2.55 percent from 2.28 percent for the three months ended March 31, 2008.
Read the The complete ReportCNBC is in the portfolios of Bruce Sherman of Private Capital Management.
