Center Financial Reports Increases of 56% and 73% in Net Income for 2005 Fourth Quarter and Full Year; Results Reflect Healthy Growth in Balance Sheet, Loan Portfolio and Deposits and Improvements in Operating Ratios and Credit Quality.LOS ANGELES Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. -- Center Financial Corporation (Nasdaq:CLFC CLFC Creating Lasting Family Connections (New Hampshire) CLFC Clear Lake Fencing Club (Texas) ), the holding company of Center Bank, today reported record levels of net income for the fourth quarter and year ended December December: see month. 31, 2005. 2005 highlights, compared with a year ago, include: --Net income increased 73% to $24.6 million, equal to $1.48 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share --Net loans increased 21% to $1.2 billion --Total deposits grew 27% to $1.5 billion --Total assets increased 24% to $1.7 billion --Return on average assets and return on average equity increased to 1.69% and 24.04%, respectively --Efficiency ratio improved to 48.7% --Net interest income before provision for loan losses increased 50% to $63.4 million --Noninterest income, excluding gain on sale of loans, increased 13% to $18.0 million --Quarterly cash dividends totaled $0.16 per share for the year --Franchise expanded to 17 full-service full-ser·vice adj. Associated with or offering complete service: full-service gasoline pumps; full-service banks. branches and nine loan production offices, reflecting two new branches located in Seattle Seattle (sēăt`əl), city (1990 pop. 516,259), seat of King co., W Wash., built on seven hills, between Elliott Bay of Puget Sound and Lake Washington; inc. 1869. , WA and Irvine Irvine, town, Scotland Irvine (ûr`vĭn), town (1991 pop. 32,507), North Ayrshire, SW Scotland, on the Irvine River estuary. Industries include iron and brass foundries. Other products are chemicals, electric goods, and clothing. , CA "2005 proved to be another year of record earnings, with healthy growth in our balance sheet and loan and deposit portfolios, along with further improvements in our operating ratios Operating Ratio A ratio that shows the efficiency of management by comparing operating expense to net sales: and credit quality," said (Paul Paul, 1901–64, king of the Hellenes (1947–64), brother and successor of George II. He married (1938) Princess Frederika of Brunswick. During Paul's reign Greece followed a pro-Western policy, and the Cyprus question was temporarily resolved. ) Seon-Hong Kim Kim orphan wanders streets of India with lama. [Br. Lit.: Kim] See : Adventurousness , president and chief executive officer of Center Financial. "I am particularly proud of the outstanding achievements made by our team during a challenging year that included a restatement Restatement A revision in a company's earlier financial statements. Notes: The need for restating financial figures can result from fraud, misrepresentation, or a simple clerical error. that eliminated hedge accounting Why is hedge accounting necessary? Many financial institutions and corporate businesses (entities) use derivative financial instruments to hedge their exposure to different risks (eg interest rate risk, foreign exchange risk, commodity risk, etc). treatment for interest rate swaps Interest Rate Swap A deal between banks or companies where borrowers switch floating-rate loans for fixed rate loans in another country. These can be either the same or different currencies. and successes related to the KEIC KEIC Korea Export Insurance Corporation litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. . "In addition to these achievements, we continued to make progress in executing our strategic expansion plan with the relocation RELOCATION, Scotch law, contracts. To let again to renew a lease, is called a relocation. 2. When a tenant holds over after the expiration of his lease, with the consent of his landlord, this will amount to a relocation. of our Chicago Chicago, city, United States Chicago (shĭkä`gō, shĭkô`gō), city (1990 pop. 2,783,726), seat of Cook co., NE Ill., on Lake Michigan; inc. 1837. branch to the Koreatown Koreatown (Korean: 코리아타운) is a term to describe the Korean ethnic enclave within a city or metropolitan area. Argentina Buenos Aires district and the additions of two new full-service branches," Kim said. "The opening of the Seattle Branch marked a key milestone “Milemarker” redirects here. For the American indie rock band, see Milemarker (band). A milestone or kilometre sign is one of a series of numbered markers placed along a road at regular intervals, typically at the side of the road or in a median. for Center Bank as it exemplified our strategy of expanding operations in a geographic geographic /geo·graph·ic/ (je?o-graf´ik) in pathology, of or referring to a pattern that is well demarcated, resembling outlines on a map. geographic pertaining to geography. area outside of 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, , following the success of an initial loan production office in the area. Our Irvine Branch illustrates the burgeoning growth of the Korean-American community in Southern California and the vibrancy vi·brant adj. 1. a. Pulsing or throbbing with energy or activity: the vibrant streets of a big city. b. of the economy in our core market, as new concentrations of small businesses catering to the needs of this niche niche: see ecology. niche Smallest unit of a habitat that is occupied by an organism. A habitat niche is the physical space occupied by the organism; an ecological niche is the role the organism plays in the community of organisms found in the community continue to be established." Kim added, "I am also proud that the investment banking firm of Sandler Sandler is the surname of:
2005 FOURTH QUARTER For the three months ended December 31, 2005, net interest income before provision for loan losses grew to a quarterly record of $17.5 million, up 32% from $13.2 million in the 2004 fourth quarter, reflecting the positive impact of prime rate increases on a growing loan portfolio that is largely prime rate sensitive, offset in part by higher interest expense on deposits. The company's yield on interest earning assets Earning Assets Any income-earning asset owned by a company. Notes: These assets are generally interest-bearing accounts, bonds, and securities available for sale. See also: Asset, Asset Valuation, Earnings, Net Interest Margin rose to 7.52% in the 2005 fourth quarter from 6.17% in the same period a year ago. The net interest margin improved to 4.78% from 4.59% in the fourth quarter of 2004, but narrowed slightly from 4.81% in the immediately preceding third quarter. The company increased its allowance for loan losses by $740,000 during the 2005 fourth quarter, compared with an increase of $1.1 million in the fourth quarter of 2004, thereby increasing our allowance for loan losses to 1.12% of loan losses, net of unearned income Unearned Income Any income that comes from investments and other sources unrelated to employment services. Notes: Examples of unearned income include interest from a savings account, bond interest, tips, alimony, and dividends from stock. , from 1.10% at December 31, 2004. Noninterest income totaled $4.8 million in the fourth quarter of 2005, up 3% from $4.7 million in the fourth quarter of 2004. Noninterest expense for the 2005 fourth quarter increased 10% to $11.4 million from $10.4 million a year earlier principally reflecting increased staff, occupancy Gaining or having physical possession of real property subject to, or in the absence of, legal right or title. In a fire insurance policy, for example, the term occupancy and operational costs associated with the addition of two full-service branches in 2005 located in Seattle and Irvine and the San Fernando Valley San Fernando Valley Valley, southern California, U.S. Northwest of central Los Angeles, the valley is bounded by the San Gabriel, Santa Susana, and Santa Monica mountains and the Simi Hills. branch which opened in December 2004. These increases were partially offset by reduced professional service fees and lower business promotion and advertising expenses. The efficiency ratio for the 2005 fourth quarter improved to 51.1 % from 57.7% in the prior-year period. Net income for the 2005 fourth quarter increased 56% to a record $6.6 million, or $0.40 per diluted share, from $4.3 million, or $0.25 per diluted share, in the corresponding period a year ago. Return on average assets for the 2005 fourth quarter increased to 1.67% from 1.35% in the prior-year period. Return on average equity improved to 23.92% from 18.99% in the fourth quarter of 2004. 2005 FULL YEAR For the year, net interest income before provision for loan losses increased 50% to $63.4 million from $42.1 million in 2004, reflecting the favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. impact of prime rate increases on a growing loan portfolio that is largely prime rate sensitive, offset in part by increased interest expense on deposits. Yield on interest earning assets in 2005 rose to 6.98% from 5.43% in 2004. The net interest margin for 2005 expanded 79 basis points to 4.77% from 3.98% in the prior year. The company added $3.4 million to its allowance for loan losses during the year, compared with $3.3 million in 2004, increasing the allowance for loan losses to 1.12% of loan losses, net of unearned income, from 1.10% at December 31, 2004. Noninterest income totaled $20.5 million for 2005, compared with $20.6 million a year ago. Excluding the gain on sale of loans, non interest income Non-interest income is derived from the execution/processing business, the advisory business and any principal business that does not appear on the balance sheet. Financial institutions that wish to maximize execution/processing income depend on volume and efficiency for profits. increased 13% over 2004, primarily due to increases in fee income from loans and deposits. Noninterest expense for 2005 were up 11% to $40.8 million from $36.8 million a year earlier, reflecting higher staff, occupancy and operational costs associated with the Bank's branch expansion. The efficiency ratio improved to 48.7% for the 2005 from 58.7% in the prior year. Net income for 2005 increased 73% to $24.6 million, or $1.48 per diluted share, from $14.2 million, or $0.86 per diluted share, in 2004. Return on average assets for 2005 increased to 1.69% from 1.22% in 2004. Return on average equity improved to 24.04% from 16.89% in the prior year. Gross loans at December 31, 2005 increased 21% to $1.2 billion from $1.0 billion at the end of 2004. Commercial real estate loans grew 28% from prior-year levels and accounted for 63% of the company's gross loans at the end of the 2005 year. Commercial and industrial loans, including commercial, trade finance 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, were up 12% over a year earlier and represented 31% of the gross loan portfolio at December 31, 2005. Consumer loans increased 23% over the prior year and totaled 6% of the company's gross loan portfolio at the end of 2005. Total deposits rose to $1.5 billion at year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. 2005, representing a 7% linked-quarter increase, principally reflecting increases in time deposits. This compares with $1.2 billion in total deposits at December 31, 2004. Core deposits represented 47% of total deposits at the end of the year, compared with 54% at year-end 2004. At December 31, 2005, non-interest bearing deposits were up 15% at $398.3 million, compared with $347.2 million at year-end 2004. Interest bearing checking and savings deposits Savings deposits Accounts that pay interest, typically at below-market interest rates, that do not have a specific maturity, and that usually can be withdrawn upon demand. posted increases of 5% and 11%, respectively, over year-end 2004 levels. Time deposits rose 47% over a year ago and accounted for 53% of total deposits at year-end 2005. Kim noted, "Non-interest bearing deposits accounted for 27% of total deposits at December 31, 2005, down from 30% at year-end 2004, reflecting the significant growth in our in time deposits as consumers responded to the higher interest rate environment. The growth in our deposit portfolio also impacted our loan-to-deposit ratio, which decreased to 82.2 percent in 2005 from 86.7 percent a year ago." The average cost of interest-bearing Adj. 1. interest-bearing - of financial obligations on which interest is paid deposits for 2005 increased to 3.01% from 1.97% for the prior year. The average cost of total deposits rose to 2.20% for the current third quarter, up from 1.37% in 2004. Total assets at December 31, 2005 grew to $1.7 billion, up from $1.3 billion at year-end 2004. Interest-earning assets totaled $1.5 billion at year-end 2005, compared with $1.2 billion at December 31, 2004. The company continued to finance the growth of its total assets with the increase in deposits through its expanded network of branch offices. The company continued to maintain excellent asset quality with total non-performing assets totaling $2.9 million, or 0.18% of total assets, at December 31, 2005, compared with $3.4 million, or 0.26% of total assets, at December 31, 2004. Net charge-offs for 2005 totaled $726,000, compared with $827,000 in 2004. The allowance for loan losses was increased to $13.9 million, reflecting the expansion of the company's loan portfolio, and represented 1.12% of loans, net of unearned income at December 31, 2005, compared with 1.10% at year-end 2004. Shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. at December 31, 2005 increased 24% to $112.7 million from $90.7 million at December 31, 2004. At year-end 2005, Center Financial remained "well-capitalized" under all regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. categories, with a Tier 1 risk-based capital ratio Risk-based capital ratio Bank requirement that there be a minimum ratio of estimated total capital to estimated risk-weighted asset. of 9.70%, a total risk-based capital ratio of 10.77%, and a Tier 1 leverage ratio of 8.21%. Investor Conference Call The company will host an investor conference call at 11:00 a.m. EST EST electroshock therapy. EST abbr. electroshock therapy (8:00 a.m. PST PST Paroxysmal supraventricular tachycardia, see there ) on Thursday Thursday: see week. , February February: see month. 2, 2006 to review the financial results for its 2005 four quarter and full year. The call will be open to all interested investors through a live, listen-only audio Web broadcast via the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the at www.centerbank.com and www.earnings.com. For those who are not available to listen to the live broadcast, the call will be archived for one year at both Web sites. A telephonic playback Playback could mean:
abbr. post meridiem Usage Note: By definition, 12 a.m. , Wednesday Wednesday: see week. , February 8, by calling 888-286-8010 (domestic) or 617-801-6888 (international) and using passcode 45197376. About Center Financial Corporation Center Financial Corporation is the holding company of 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. for diverse ethnic and small business customers. Founded in 1986 and specializing in commercial and SBA loans and trade finance products, Center Bank has grown to be one of the nation's largest financial institutions focusing on the Korean-American community, with total assets of $1.7 billion at December 31, 2005. Headquartered in Los Angeles, Center Bank operates 26 branch and loan production offices across the nation. Of the company's 17 full-service branches, 15 are located throughout Southern California, along with one branch each in Chicago and Seattle. Center Bank's nine loan production offices are strategically located in Phoenix, Seattle, Denver Denver, city (1990 pop. 467,610), alt. 5,280 ft (1,609 m), state capital, coextensive with Denver co., N central Colo., on a plateau at the foot of the Front Range of the Rocky Mts., along the South Platte River where Cherry Creek meets it; inc. 1861. , Washington Washington, town, England Washington, town (1991 pop. 48,856), Sunderland metropolitan district, NE England. Washington was designated one of the new towns in 1964 to alleviate overpopulation in the Tyneside-Wearside area. D.C., 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. , Atlanta Atlanta (ətlăn`tə, ăt–), city (1990 pop. 394,017), state capital and seat of Fulton co., NW Ga., on the Chattahoochee R. and Peachtree Creek, near the Appalachian foothills; inc. 1847. , Honolulu Honolulu (hŏn'əl  `l, hōnō–), city (1990 pop. , Houston Houston, city (1990 pop. 1,630,553), seat of Harris co., SE Tex., a deepwater port on the Houston Ship Channel; inc. 1837.
EconomyThe fourth largest city in the nation and the largest in the entire South and Southwest, Houston is a port of entry; and Dallas Dallas, city (1990 pop. 1,006,877), seat of Dallas co., N Tex., on the Trinity River near the junction of its three forks; inc. 1871. The second largest Texas city, after Houston, and the eighth largest U.S. . Center Bank is a California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). state-chartered institution and its deposits are insured The person who obtains or is otherwise covered by insurance on his or her health, life, or property. The insured in a policy is not limited to the insured named in the policy but applies to anyone who is insured under the policy. insured n. by the FDIC FDIC See: Federal Deposit Insurance Corporation FDIC See Federal Deposit Insurance Corporation (FDIC). to the extent provided by law. For additional information on Center Bank, visit the company's Web site at www.centerbank.com. This release may contain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. , which are included in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with the "safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 and accordingly, the cautionary statements contained in Center Financial Corp's Annual Report on amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. Form 10-K/A for the fiscal year ended Dec. 31, 2004 (See Business, and Management's Discussion and Analysis Management's discussion and analysis (MD&A) A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial ), and other filings with the Securities and Exchange Commission (SEC) are incorporated herein by reference. These factors include, but are not limited to: competition in the financial services market for both deposits and loans; the ability of Center Financial and its subsidiaries to increase its customer base; and regional and general economic conditions. Actual results and performance in future periods may be materially different from any future results or performance suggested by the forward-looking statements in this release. Such forward-looking statements speak only as of the date of this release. Center Financial expressly disclaims any obligation to update or revise any forward-looking statements found herein to reflect any changes in the company's expectations of results or any change in events.
CENTER FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited)
(In thousands, except share and per share data)
12/31/05 12/31/04
----------- -----------
Assets
Cash and due from banks $83,335 $63,564
Federal funds sold 58,490 35,915
Money market funds and interest-bearing
deposits in other banks 5,064 3,663
Securities available-for-sale 226,023 157,027
Securities held-to-maturity 11,052 11,396
Loans (net of unearned income) 1,233,020 1,021,700
Allowance for loan losses (13,871) (11,227)
----------- -----------
Net loans 1,219,149 1,010,473
Fixed assets 14,027 11,695
Bank-owned life insurance - cash surrender
value 10,805 10,430
Goodwill 1,253 1,253
Other assets 33,821 32,698
----------- -----------
Total assets $1,663,019 $1,338,114
=========== ===========
Liabilities and Shareholders' Equity
Deposits
Non-interest bearing deposits $398,332 $347,195
Interest bearing deposits 1,085,737 818,341
----------- -----------
Total deposits 1,484,069 1,165,536
Borrowed funds 28,643 44,854
Long-term subordinated debenture 18,557 18,557
Other liabilities 19,036 18,447
----------- -----------
Total liabilities 1,550,305 1,247,394
Shareholders' equity 112,714 90,720
----------- -----------
Total Liabilities & Shareholders' Equity $1,663,019 $1,338,114
=========== ===========
Book value per share $6.86 $5.57
Number of common shares outstanding at period
end 16,439,053 16,283,496
CENTER FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(In thousands, except share and per share data)
Three Months Ended Twelve Months Ended
December 31, December 31,
----------------------- -----------------------
2005 2004 2005 2004
----------- ----------- ----------- -----------
Interest income $27,505 $17,809 $92,825 $57,508
Interest expense 10,034 4,561 29,467 15,381
----------- ----------- ----------- -----------
Net interest income
before provision for
loan losses 17,471 13,248 63,358 42,127
Provision for loan
losses 740 1,100 3,370 3,250
----------- ----------- ----------- -----------
Net interest income
after provision for
loan losses 16,731 12,148 59,988 38,877
Noninterest income
Customer service fees 2,194 2,319 9,125 8,569
Fee income from trade
finance transactions 755 925 3,491 3,596
Wire transfer fees 239 227 914 829
Gain on sale of loans 667 946 2,487 4,616
Net gain (loss) on
sale of securities
available for sale - - 51 (15)
Loan service fees 459 (126) 2,014 1,397
Other income 528 420 2,449 1,566
----------- ----------- ----------- -----------
Total noninterest
income 4,842 4,711 20,531 20,558
----------- ----------- ----------- -----------
Noninterest expense
Salaries and
employee benefits 5,636 4,517 19,516 16,361
Occupancy 1,038 634 3,374 2,477
Furniture, fixtures,
and equipment 479 383 1,809 1,385
Data processing 536 389 2,012 2,038
Professional service
fees 804 1,126 3,771 3,612
Business promotion
and advertising 723 1,038 2,788 2,543
Stationery and
supplies 220 170 839 550
Telecommunications 157 120 600 517
Postage and courier
service 197 163 735 621
Impairment loss of
securities
available for sale - 394 - 2,263
Security service 230 152 817 695
Loss on termination
of interest rate
swap - - 306 -
Loss on interest
rate swaps 32 367 280 235
Other operating
expenses 1,343 903 3,978 3,526
----------- ----------- ----------- -----------
Total noninterest
expense 11,395 10,356 40,825 36,823
----------- ----------- ----------- -----------
Income before income
tax provision 10,178 6,503 39,694 22,612
Income tax provision 3,529 2,230 15,091 8,388
----------- ----------- ----------- -----------
Net income $6,649 $4,273 $24,603 $14,224
=========== =========== =========== ===========
Earnings per share,
basic $0.40 $0.26 $1.50 $0.88
=========== =========== =========== ===========
Earnings per share,
diluted $0.40 $0.25 $1.48 $0.86
=========== =========== =========== ===========
Basic average common
shares outstanding 16,434,670 16,157,121 16,375,823 16,157,581
=========== =========== =========== ===========
Diluted average common
shares outstanding 16,725,023 16,525,564 16,702,430 16,525,861
=========== =========== =========== ===========
CENTER FINANCIAL CORPORATION
SELECTED FINANCIAL DATA (Unaudited)
(In thousands)
Three Months Ended Three Months Ended
December 31, 2005 September 30, 2005
------------------------ ------------------------
Interest Interest
Average income/ Rate/ Average income/ Rate/
expense yield expense yield
---------- ------- ----- ---------- ------- -----
Interest earning
assets
Loans $1,210,886 $25,175 8.25% $1,130,982 $22,295 7.82%
Investments 240,012 2,330 3.85% 226,550 2,042 3.58%
---------- ------- ----- ---------- ------- -----
Total interest-
earning assets $1,450,898 $27,505 7.52% $1,357,532 $24,337 7.11%
========== ======= ===== ========== ======= =====
Interest bearing
liabilities
Deposits $1,022,110 $9,492 3.68% 938,530 7,397 3.13%
Other
borrowed
funds 20,150 222 4.37% 18,013 184 4.05%
Long-term
debt 18,557 320 6.84% 18,557 295 6.31%
---------- ------- ----- ---------- ------- -----
Total interest
bearing
liabilities 1,060,817 10,034 3.75% 975,100 7,876 3.20%
Noninterest bearing
deposits 394,063 - - 396,553 - -
---------- ------- ----- ---------- ------- -----
Total cost
of funds $1,454,880 $10,034 2.74% $1,371,653 $7,876 2.28%
========== ======= ===== ========== ======= =====
Total cost of
deposits 2.66% 2.20%
===== =====
Net interest
income $17,471 $16,461
======== ========
Net
interest
spread 3.77% 3.91%
===== =====
Net
interest
margin 4.78% 4.81%
===== =====
Twelve Months Ended
December 31, 2005
------------------------
Interest
Average income/ Rate/
expense yield
---------- ------- -----
Interest earning
assets
Loans $1,111,087 $85,102 7.66%
Investments 218,000 7,723 3.54%
---------- ------- -----
Total interest-
earning assets $1,329,087 $92,825 6.98%
========== ======= =====
Interest bearing
liabilities
Deposits $910,143 $27,376 3.01%
Other
borrowed
funds 26,799 938 3.50%
Long-term
debt 18,557 1,153 6.21%
---------- ------- -----
Total interest
bearing
liabilities 955,499 29,467 3.08%
Noninterest bearing
deposits 381,566 - -
---------- ------- -----
Total cost
of funds $1,337,065 $29,467 2.20%
========== ======= =====
Total cost of
deposits 2.12%
=====
Net interest
income $63,358
========
Net
interest
spread 3.90%
=====
Net
interest
margin 4.77%
=====
Three Months Ended
December 31, 2004
------------------------
Interest
Average income/ Rate/
expense yield
---------- ------- -----
Interest earning
assets
Loans $963,906 $16,365 6.75%
Investments 184,902 1,443 3.10%
---------- ------- -----
Total interest-
earning assets $1,148,808 $17,808 6.17%
========== ======= =====
Interest bearing
liabilities
Deposits 782,284 4,239 2.16%
Other
borrowed
funds 14,317 118 3.28%
Long-term
debt 18,557 204 4.37%
---------- ------- -----
Total interest
bearing
liabilities 815,158 4,561 2.23%
Noninterest bearing
deposits 340,914 - -
---------- ------- -----
Total cost
of funds $1,156,072 $4,561 1.57%
========== ======= =====
Total cost of
deposits 1.50%
=====
Net interest
income $13,247
========
Net
interest
spread 3.94%
=====
Net
interest
margin 4.59%
=====
Twelve Months Ended
December 31, 2004
------------------------
Interest
Average income/ Rate/
expense yield
---------- ------- -----
Interest earning
assets
Loans $868,915 $52,411 6.03%
Investments 190,373 5,097 2.68%
---------- ------- -----
Total interest-
earning assets $1,059,288 $57,508 5.43%
========== ======= =====
Interest bearing
liabilities
Deposits $718,029 $14,120 1.97%
Other
borrowed
funds 18,484 489 2.65%
Long-term
debt 18,557 772 4.16%
---------- ------- -----
Total interest
bearing
liabilities 755,070 15,381 2.04%
Noninterest bearing
deposits 315,541 - -
---------- ------- -----
Total cost
of funds $1,070,611 $15,381 1.44%
========== ======= =====
Total cost of
deposits 1.37%
=====
Net interest
income $42,127
========
Net
interest
spread 3.39%
=====
Net
interest
margin 3.98%
=====
CENTER FINANCIAL CORPORATION
SELECTED FINANCIAL DATA (Unaudited)
(In thousands)
December 31, December 31,
2005 2004
------------ ------------
Non-performing assets
Loans past due 90 days or more and still
accruing interest $- $-
Non-accrual loans 2,943 3,431
------------ ------------
Total non-performing loans 2,943 3,431
Other Real Estate Owned - -
Total Non-performing assets $2,943 $3,431
============ ============
Allowance for Loan Losses
Balance as of January 1 $11,227 $8,804
Provision for loan losses 3,370 3,250
Net loan (charge-offs) and recoveries (726) (827)
------------ ------------
Balance as of December 31 $13,871 $11,227
============ ============
December 31, December 31,
2005 2004
------------ ------------
Tier 1 risk-based capital ratio 9.70% 9.59%
Total risk-based capital ratio 10.77 10.62
Tier 1 leverage ratio 8.21 9.13
Non-accrual loans to gross loans 0.24 0.34
Non-performing assets to total loans and OREO 0.24 0.34
Non-performing assets to total assets 0.18 0.26
Allowance for loan loss to gross loans 1.12 1.10
Allowance for loan losses to nonperforming
assets 471.32 327.22
Net charge-offs to average loans 0.06 0.09
Three Months Ended Twelve Months Ended
Selected Ratios December 31, December 31,
------------------ -------------------
For the Period 2005 2004 2005 2004
--------- -------- --------- ---------
Return on average assets 1.67% 1.35% 1.69% 1.22%
Return on average equity 23.92 18.99 24.04 16.89
Noninterest expense/average
assets 2.86 3.26 2.81 3.15
Efficiency ratio 51.07 57.66 48.67 58.74
CENTER FINANCIAL CORPORATION
SELECTED FINANCIAL DATA (Unaudited)
(In thousands)
December 31, December 31,
Loans 2005 2004
------------ ------------
Real estate-construction $4,713 $16,919
Real estate-commercial 776,725 607,296
Commercial 243,052 208,995
Consumer 71,499 58,178
Trade finance 90,370 83,763
SBA 49,070 49,027
Other 1,473 864
------------ ------------
Total loans-gross 1,236,902 1,025,042
Unearned Income (3,882) (3,342)
Allowance for loan losses (13,871) (11,227)
------------ ------------
Total loans-net $1,219,149 $1,010,473
============ ============
Deposits
Non-interest bearing $398,332 $347,195
Interest bearing checking 221,083 210,842
Savings 81,654 73,733
Time deposits 783,000 533,766
------------ ------------
Total deposits $1,484,069 $1,165,536
============ ============
Net loans to total deposits 82.2% 86.7%
============ ============
Three Months Ended Twelve Months Ended
Average Balances December 31, December 31,
---------------------- ----------------------
2005 2004 2005 2004
----------- ---------- ----------- ----------
Gross loans $1,224,415 $980,412 $1,122,512 $878,819
Net loans 1,210,886 963,906 1,111,087 868,915
Interest earning assets 1,450,898 1,148,808 1,329,087 1,059,288
Assets 1,583,138 1,262,302 1,453,482 1,167,961
Deposits 1,416,173 1,123,198 1,291,709 1,033,570
Equity 110,263 89,520 102,324 84,239
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