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Center Bancorp Inc. Reports Operating Results (10-K/A)

May 03, 2010 | About:
10qk

10qk

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Center Bancorp Inc. (CNBC) filed Amended Annual Report for the period ended 2009-12-31.

Center Bancorp Inc. has a market cap of $121.26 million; its shares were traded at around $8.32 with a P/E ratio of 27.73 and P/S ratio of 2.2. The dividend yield of Center Bancorp Inc. stocks is 1.44%.CNBC is in the portfolios of Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.

Highlight of Business Operations:

Center has concluded that a restatement of its financial statements for the period ended December 31, 2009, is necessary to conform to bank regulatory reporting positions taken with respect to the previously reported loan receivable from Highlands State Bank (“Highlands”). As previously reported, this loan participation ended and Union Center National Bank (the “Bank”) made demand for payment from Highlands in 2009. In the Annual Report as originally filed, Center treated the amount due as a receivable from Highlands rather than as a loan since the participation had ended. Bank regulators have concluded that solely for purposes of the Consolidated Reports of Condition and Income (“Call Reports”) filed by the Bank with the bank regulators, the item should be accounted for consistent with its classification prior to December 31, 2009, despite the termination of the participation. After reviewing this matter with the Audit Committee of the Board of Directors of Center and of the Board of Directors of the Bank, the Bank has agreed to account for this item in its Call Reports in the manner proposed by the bank regulators and Center has determined to restate its year-end financial statements filed with the SEC to assure that the financial statements filed with the SEC are consistent with the financial statements filed as part of the Call Reports. The change resulted in, among other things, (i) an increase in loans outstanding at December 31, 2009 of $4,153,000, (ii) a resultant increase in the allowance for loan losses of $436,000 at December 31, 2009 and (iii) a resultant increase in the provision for loan losses of $1,336,000 for the year ended December 31, 2009. The increase in the provision for loan losses in turn lowered year-end after-tax net income by $802,000 or $0.06 per fully diluted share. The Company and its counsel remain confident regarding its legal position with respect to its underlying litigation with Highlands and intend to continue to vigorously pursue its current course of legal action for repayment of the amount payable to the Bank.

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