Center Bancorp Inc. (CNBC, Financial) filed Quarterly Report for the period ended 2009-06-30.
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 $119.26 million; its shares were traded at around $9.18 with a P/E ratio of 24.16 and P/S ratio of 2.27. The dividend yield of Center Bancorp Inc. stocks is 1.31%.
Net income for the six months ended June 30, 2009 amounted to $2.0 million compared to net income of $2.6 million for the comparable six-month period ended June 30, 2008. The Corporation recorded earnings per diluted common share of $0.13 for the six months ended June 30, 2009 as compared with earnings of $0.20 per diluted common share for the six months ended June 30, 2008. Dividends and accretion relating to the preferred stock issued to the U.S. Treasury reduced earnings by approximately $0.02 per fully diluted common share. The annualized return on average assets decreased to 0.35 percent for the six months ended June 30, 2009 as compared to 0.53 percent for the comparable six-month period in 2008. The annualized return on average stockholders equity was 4.43 percent for the six-month period ended June 30, 2009 as compared to 6.14 percent for the six months ended June 30, 2008.
For the three-month period ended June 30, 2009, interest income on a tax-equivalent basis increased by $255,000 or 2.0 percent from the comparable three-month period in 2008. This increase was due primarily to an increase in balances of the Corporation s loan portfolio offset in part by 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 $85.0 million to $686.7 million from $601.7 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 69.3 percent of the Corporation s interest-earning assets on average during the second quarter of 2009 as compared to 66.6 percent in the same quarter in 2008. Average investment volume, including short-term investments and restricted investment in bank stocks, increased during the current three month period by $3.4 million compared to the second quarter of 2008.
For the six month period ended June 30, 2009, interest income on a tax-equivalent basis decreased by $0.4 million or 1.6 percent from the comparable six-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 $99.6 million to $683.3 million from $583.7million in the same period in 2008, primarily driven by growth in commercial real estate business related sectors of the loan portfolio. The loan portfolio represented approximately 71.0 percent of the Corporation s interest-earning assets on average during the first six months of 2009 as compared to 65.0 percent in the same period in 2008. The increase in loan volume was partially offset by a decline in the volume of the Corporation s investment portfolio. Average investment volume, including short-term investments and restricted investment in bank stocks, decreased during the period by $34.7 million on average compared to the same period of 2008.
For the three months ended June 30, 2009, interest expense increased by $0.3 million or 4.8 percent from the same period in 2008. The average rate of interest-bearing liabilities decreased 45 basis points to 2.51 percent for the three months ended June 30, 2009 from 2.96 percent for the three months ended June 30, 2008. At the same time, the average volume of interest-bearing liabilities increased by $185.9 million. The increase in the average balance of interest-bearing liabilities during the three months ended June 30, 2009 was primarily in time deposits (CDARS Reciprocal deposits) of $182.3 million, in savings deposits of $71.7 million and in other interest bearing deposits of $3.2 million partially offset by a decline of $40.3 million in money market deposits and other borrowings of $31.0 million. 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 high cost cash outflows during the year. The result was a steady improvement in the Corporation s cost of funds. As a result of these factors, for the three months ended June 30, 2009, the Corporation s net interest spread on a tax-equivalent basis increased to 2.67 percent from 2.61 percent for the three months ended June 30, 2008.
For the six months ended June 30, 2009, interest expense declined by $0.8 million or 6.7 percent from the same period in 2008. The total cost of average interest-bearing liabilities decreased 64 basis points to 2.57 percent for the six months ended June 30, 2009 from 3.21 percent for the six months ended June 30, 2008. At the same time, the average volume of interest-bearing liabilities increased by $129.9 million. The increase in the average balance of interest bearing liabilities during the six months ended June 30, 2009 was primarily in savings and time deposits of $195.7 million, partially offset by a decrease in money market and other interest bearing deposits of $52.3 million and a decrease in borrowings of $13.5 million. For the six month ended June 30, 2009, the Corporation s net interest spread on a tax-equivalent basis increased to 2.61 percent form 2.44 percent for the six months ended June 30, 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 $119.26 million; its shares were traded at around $9.18 with a P/E ratio of 24.16 and P/S ratio of 2.27. The dividend yield of Center Bancorp Inc. stocks is 1.31%.
Highlight of Business Operations:
Net income for the three months ended June 30, 2009 amounted to $1.2 million compared to net income of $1.4 million for the comparable three-month period ended June 30, 2008. The Corporation recorded earnings per diluted common share of $0.08 for the three months ended June 30, 2009 as compared with earnings of $0.11 per diluted common share for the three months ended June 30, 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 0.40 percent for the three months ended June 30, 2009 as compared to 0.57 percent for the comparable three-month period in 2008. The annualized return on average stockholders equity was 5.35 percent for the three-month period ended June 30, 2009 as compared to 6.69 percent for the three months ended June 30, 2008Net income for the six months ended June 30, 2009 amounted to $2.0 million compared to net income of $2.6 million for the comparable six-month period ended June 30, 2008. The Corporation recorded earnings per diluted common share of $0.13 for the six months ended June 30, 2009 as compared with earnings of $0.20 per diluted common share for the six months ended June 30, 2008. Dividends and accretion relating to the preferred stock issued to the U.S. Treasury reduced earnings by approximately $0.02 per fully diluted common share. The annualized return on average assets decreased to 0.35 percent for the six months ended June 30, 2009 as compared to 0.53 percent for the comparable six-month period in 2008. The annualized return on average stockholders equity was 4.43 percent for the six-month period ended June 30, 2009 as compared to 6.14 percent for the six months ended June 30, 2008.
For the three-month period ended June 30, 2009, interest income on a tax-equivalent basis increased by $255,000 or 2.0 percent from the comparable three-month period in 2008. This increase was due primarily to an increase in balances of the Corporation s loan portfolio offset in part by 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 $85.0 million to $686.7 million from $601.7 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 69.3 percent of the Corporation s interest-earning assets on average during the second quarter of 2009 as compared to 66.6 percent in the same quarter in 2008. Average investment volume, including short-term investments and restricted investment in bank stocks, increased during the current three month period by $3.4 million compared to the second quarter of 2008.
For the six month period ended June 30, 2009, interest income on a tax-equivalent basis decreased by $0.4 million or 1.6 percent from the comparable six-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 $99.6 million to $683.3 million from $583.7million in the same period in 2008, primarily driven by growth in commercial real estate business related sectors of the loan portfolio. The loan portfolio represented approximately 71.0 percent of the Corporation s interest-earning assets on average during the first six months of 2009 as compared to 65.0 percent in the same period in 2008. The increase in loan volume was partially offset by a decline in the volume of the Corporation s investment portfolio. Average investment volume, including short-term investments and restricted investment in bank stocks, decreased during the period by $34.7 million on average compared to the same period of 2008.
For the three months ended June 30, 2009, interest expense increased by $0.3 million or 4.8 percent from the same period in 2008. The average rate of interest-bearing liabilities decreased 45 basis points to 2.51 percent for the three months ended June 30, 2009 from 2.96 percent for the three months ended June 30, 2008. At the same time, the average volume of interest-bearing liabilities increased by $185.9 million. The increase in the average balance of interest-bearing liabilities during the three months ended June 30, 2009 was primarily in time deposits (CDARS Reciprocal deposits) of $182.3 million, in savings deposits of $71.7 million and in other interest bearing deposits of $3.2 million partially offset by a decline of $40.3 million in money market deposits and other borrowings of $31.0 million. 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 high cost cash outflows during the year. The result was a steady improvement in the Corporation s cost of funds. As a result of these factors, for the three months ended June 30, 2009, the Corporation s net interest spread on a tax-equivalent basis increased to 2.67 percent from 2.61 percent for the three months ended June 30, 2008.
For the six months ended June 30, 2009, interest expense declined by $0.8 million or 6.7 percent from the same period in 2008. The total cost of average interest-bearing liabilities decreased 64 basis points to 2.57 percent for the six months ended June 30, 2009 from 3.21 percent for the six months ended June 30, 2008. At the same time, the average volume of interest-bearing liabilities increased by $129.9 million. The increase in the average balance of interest bearing liabilities during the six months ended June 30, 2009 was primarily in savings and time deposits of $195.7 million, partially offset by a decrease in money market and other interest bearing deposits of $52.3 million and a decrease in borrowings of $13.5 million. For the six month ended June 30, 2009, the Corporation s net interest spread on a tax-equivalent basis increased to 2.61 percent form 2.44 percent for the six months ended June 30, 2008.
Read the The complete ReportCNBC is in the portfolios of Bruce Sherman of Private Capital Management.
