Center Bancorp Inc. (CNBC, Financial) filed Quarterly Report for the period ended 2011-03-31.
Center Bancorp Inc. has a market cap of $161.3 million; its shares were traded at around $9.9 with a P/E ratio of 16.5 and P/S ratio of 3.1. The dividend yield of Center Bancorp Inc. stocks is 1.2%.
Net interest income on a fully tax-equivalent basis increased $1.4 million or 16.9 percent to $9.9 million for the three months ended March 31, 2011 as compared to the same period in 2010. For the three months ended March 31, 2011, the net interest margin increased 20 basis points to 3.55 percent from 3.35 percent during the three months ended March 31, 2010. For the three months ended March 31, 2011, a decrease in the average yield on interest-earning assets of 40 basis points was more than offset by a decrease in the average cost of interest-bearing liabilities of 56 basis points, resulting in an increase in the Corporation s net interest spread of 16 basis points for the period. Net interest spread and margin have been impacted by a high level of uninvested excess cash, which accumulated due to strong deposit growth experienced predominantly over the last nine months of 2009. This represented growth in the Corporation s customer base and enhanced the Corporation s liquidity position while the Corporation continued to expand its earning assets base.
For the three-month period ended March 31, 2011, interest income on a tax-equivalent basis increased by $180,000 or 0.16 percent compared to the same three-month period in 2010. This increase in interest income was due primarily to a volume increase in investment securities coupled with a decline in yields due to the lower interest rate environment. Average investment securities volume increased during the current three-month period by $100.9 million, to $400.9 million, compared to the first quarter of 2010. The loan portfolio increased on average $4.7 million, to $716.6 million, from an average of $711.9 million in the same quarter in 2010, primarily driven by growth in commercial loans and commercial real estate related sectors of the loan portfolio. Average loans represented approximately 63.6 percent of average interest-earning assets during the first quarter of 2011 compared to 69.6 percent in the same quarter in 2010.
For the three months ended March 31, 2011, interest expense declined $1.2 million, or 29.8 percent from the same period in 2010. The average rate of interest-bearing liabilities decreased 0.56 basis points to 1.23 percent for the three months ended March 31, 2011, from 1.79 percent for the three months ended March 31, 2010. At the same time, average interest-bearing liabilities increased by $20.7 million. This increase was primarily in Money Markets, Savings, and Other interest-bearing deposits of $50.5 million, $11.3 million and $38.9 million, respectively, and was partially offset by decreases in Time deposits of $25.0 million, and in borrowings, which decreased by $55.1 million. Since 2009 steps have been taken 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-costing cash outflows. The result has been a decline in the Corporation s average cost of funds and an improvement in net interest spread. For the three months ended March 31, 2011, the Corporation s net interest spread on a tax-equivalent basis increased to 3.35 percent, from 3.19 percent for the three months ended March 31, 2010.
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Center Bancorp Inc. has a market cap of $161.3 million; its shares were traded at around $9.9 with a P/E ratio of 16.5 and P/S ratio of 3.1. The dividend yield of Center Bancorp Inc. stocks is 1.2%.
Highlight of Business Operations:
Net income available to common stockholders for the three months ended March 31, 2011 amounted to $2,872,000 compared to $136,000 for the comparable three-month period ended March 31, 2010. The Corporation recorded earnings per diluted common share of $0.18 for the three months ended March 31, 2011 as compared with earnings of $0.01 per diluted common share for the same three months in 2010. 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 for both periods. The annualized return on average assets was 0.98 percent for the three months ended March 31, 2011, compared to 0.09 percent for three months ended March 31, 2010.Net interest income on a fully tax-equivalent basis increased $1.4 million or 16.9 percent to $9.9 million for the three months ended March 31, 2011 as compared to the same period in 2010. For the three months ended March 31, 2011, the net interest margin increased 20 basis points to 3.55 percent from 3.35 percent during the three months ended March 31, 2010. For the three months ended March 31, 2011, a decrease in the average yield on interest-earning assets of 40 basis points was more than offset by a decrease in the average cost of interest-bearing liabilities of 56 basis points, resulting in an increase in the Corporation s net interest spread of 16 basis points for the period. Net interest spread and margin have been impacted by a high level of uninvested excess cash, which accumulated due to strong deposit growth experienced predominantly over the last nine months of 2009. This represented growth in the Corporation s customer base and enhanced the Corporation s liquidity position while the Corporation continued to expand its earning assets base.
For the three-month period ended March 31, 2011, interest income on a tax-equivalent basis increased by $180,000 or 0.16 percent compared to the same three-month period in 2010. This increase in interest income was due primarily to a volume increase in investment securities coupled with a decline in yields due to the lower interest rate environment. Average investment securities volume increased during the current three-month period by $100.9 million, to $400.9 million, compared to the first quarter of 2010. The loan portfolio increased on average $4.7 million, to $716.6 million, from an average of $711.9 million in the same quarter in 2010, primarily driven by growth in commercial loans and commercial real estate related sectors of the loan portfolio. Average loans represented approximately 63.6 percent of average interest-earning assets during the first quarter of 2011 compared to 69.6 percent in the same quarter in 2010.
For the three months ended March 31, 2011, interest expense declined $1.2 million, or 29.8 percent from the same period in 2010. The average rate of interest-bearing liabilities decreased 0.56 basis points to 1.23 percent for the three months ended March 31, 2011, from 1.79 percent for the three months ended March 31, 2010. At the same time, average interest-bearing liabilities increased by $20.7 million. This increase was primarily in Money Markets, Savings, and Other interest-bearing deposits of $50.5 million, $11.3 million and $38.9 million, respectively, and was partially offset by decreases in Time deposits of $25.0 million, and in borrowings, which decreased by $55.1 million. Since 2009 steps have been taken 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-costing cash outflows. The result has been a decline in the Corporation s average cost of funds and an improvement in net interest spread. For the three months ended March 31, 2011, the Corporation s net interest spread on a tax-equivalent basis increased to 3.35 percent, from 3.19 percent for the three months ended March 31, 2010.
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