Center Financial Announces Completion of Trust Preferred Offering.Business Editors LOS ANGELES--(BUSINESS WIRE)--Jan. 5, 2004 Center Financial Corporation (Nasdaq:CLFC CLFC Creating Lasting Family Connections (New Hampshire) CLFC Clear Lake Fencing Club (Texas) ) today announced that it received net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of approximately $18 million on December 30, 2003, through its participation in a trust preferred securities offering as part of pooled offerings with several other financial institutions. Center Financial issued the trust preferred securities through a newly formed, wholly-owned trust subsidiary. The proceeds will be used to supplement capital and for general corporate purposes. The trust preferred securities will mature in 30 years and are callable Callable Applies mainly to convertible securities. Redeemable by the issuer before the scheduled maturity under specific conditions and at a stated price, which usually begins at a premium to par and declines annually. at the option of Center Financial in multiples of $1,000 after five years. The securities have floating rates, which will reset quarterly, based on the three-month LIBOR LIBOR See: London Interbank Offered Rate LIBOR See London interbank offered rate (LIBOR). plus 2.85%. Although Center Financial expects that all the trust preferred securities will qualify as Tier 1, under the current applicable regulatory guidelines, no assurance is given to be qualified as in the future. About Center Financial Corporation Center Financial Corporation is the holding company of Center Bank (formerly California Center Bank), a community bank offering a full range of financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. . Founded in 1986, Center Bank is one of the largest financial institutions in the nation focusing on the Korean-American community. The Bank specializes in commercial and SBA SBA abbr. Small Business Administration Noun 1. SBA - an independent agency of the United States government that protects the interests of small businesses and ensures that they receive a fair share of government loans and trade finance products for multi-ethnic and small business customers. Center Bank operates 13 full service branches throughout Southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, and five Loan Production Offices located in Phoenix; Seattle; Denver; Las Vegas Las Vegas (läs vā`gəs), city (1990 pop. 258,295), seat of Clark co., S Nev.; inc. 1911. It is the largest city in Nevada and the center of one of the fastest-growing urban areas in the United States. ; and Washington, D.C. Further information about the company can be found at www.centerbank.com. Statements contained in this release that are not historical facts are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 as amended, and are based on management's current expectations and beliefs concerning future developments and their potential effects on Center Financial. Readers are cautioned not to unduly rely on forward-looking statements. Actual results may differ from those in such forward-looking statements. These forward-looking statements involve risks and uncertainties, including but not limited to, the qualification of all the trust preferred securities as Tier 1, the company's ability to grow its deposits, the success of the company's SBA Department and Consumer Loan Center, the impact of current events on the California economy, customers' acceptance of the company's pricing policies, the company's ability to successfully expand geographically, changes in interest rates, loan portfolio performance, the ability to continue to pay dividends, and other factors detailed in Center Financial's SEC filings made from time to time. |
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