Center Financial Reports Record Net Income for 2004 Fourth Quarter and Year.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. -- Strong Loan Production, Deposits Growth Contribute to Solid Interest and Noninterest Income Gains Center Financial Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CLFC CLFC Creating Lasting Family Connections (New Hampshire) CLFC Clear Lake Fencing Club (Texas) ), the financial holding company of Center Bank, today reported record earnings for the fourth quarter and year ended December December: see month. 31, 2004. 2004 fourth quarter highlights, compared with a year ago, include: --Net income increased 43% to $4.4 million, or $0.26 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 rose 41% to $1.01 billion --Total deposits grew 34% to $1.17 billion --Total assets up 30% to $1.34 billion --Revenues up 34% to $22.3 million --Net interest income before provision for loan losses grew 39% to $12.5 million --Noninterest income advanced 10% to $5.2 million --Franchise expansion continued with the opening of a full-service full-ser·vice adj. Associated with or offering complete service: full-service gasoline pumps; full-service banks. branch office in 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. and new loan production offices in Houston Houston, city (1990 pop. 1,630,553), seat of Harris co., SE Tex., a deepwater port on the Houston Ship Channel; inc. 1837. Economy The 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. --Quarterly cash dividend declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. of $0.04 per share "2004 marked another year of new levels of achievement for Center Financial," 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. "We continued to make progress throughout the year, expanding the Center Bank franchise. Our first out-of-state out-of-state adj. Of, relating to, or being from another state. full-service branch was opened in 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. , and we strengthened our penetration in 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, with our newest office in San Fernando Valley. We also entered four other high-growth niche markets A niche market also known as a target market is a focused, targetable portion (subset) of a market sector. By definition, then, a business that focuses on a niche market is addressing a need for a product or service that is not being addressed by mainstream providers. with loan production offices opened in 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 and
Dallas. We believe our enhanced focus on investor relations Investor relationsThe process by which the corporation communicates with its investors. and a two-for-one stock split effected earlier this year contributed to improved liquidity of our shares on the NASDAQ market over the course of 2004. Acknowledging our financial performance, Sandler Sandler is the surname of:
"Our successes in 2004 also include reaching record levels in our loan portfolio and deposits, while maintaining excellent credit quality. These achievements, plus improved operating efficiencies and a more favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. interest rate environment, contributed to another consecutive year of record earnings, realized through strong performances each quarter throughout the year," Kim said. For the three months ended December 31, 2004, net interest income before provision for loan losses rose 39% to $12.5 million from $9.0 million in the corresponding period a year ago, benefiting from robust growth in net loans and the positive impact of the recent series of Federal Fund rate hikes. Net interest margin advanced 28 basis points to 4.45% from 4.17% in the prior-year period. Center Financial added $1.1 million to its provision for loan losses in the 2004 fourth quarter, reflecting the considerable expansion of its loan portfolio and lower levels of recoveries as compared to the corresponding prior-year period when the company added $250,000 to its provision for loan losses. Noninterest income in the 2004 fourth quarter grew 10% to $5.2 million from $4.8 million a year earlier, principally benefiting from increases in 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 loan sales and trade finance transactions, as well as a greater number of customer account relationships, offset, in part, by a loss on 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. . Total noninterest expenses in the 2004 fourth quarter rose 14% to $10.0 million from $8.7 million in the same prior-year period, reflecting higher 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 Center Bank's expanding franchise, as well as increased professional fees. Compared with the 2003 fourth quarter, the current period includes the additional costs associated with operating four new loan production offices, along with the company's full-service branches in Chicago and in San Fernando Valley. The company posted an impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. loss of securities available for sale of $394,000 in the 2004 fourth quarter related to a decline in the market value of its Fannie Mae Fannie Mae: see Federal National Mortgage Association. and Freddie Mac Freddie Mac: see Federal Home Loan Mortgage Corporation. preferred stocks Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. , compared with an impairment loss of $880,000 in the 2003 fourth quarter. Center Financial's efficiency ratio for the current quarter improved markedly to 56.27% from 63.46% in the same period a year ago. Excluding the securities impairment charges, the efficiency ratios would have been 54.05% and 57.06%, respectively, for the 2004 and 2003 fourth quarters. Net income grew 43% to $4.4 million, or $0.26 per diluted share, for the fourth quarter of 2004, compared with $3.0 million, or $0.18 per diluted share, in the corresponding prior-year period. (All per share figures have been adjusted to reflect a two-for-one stock split in March 2004). Excluding the securities impairment charge in the 2004 fourth quarter, the company would have reported net income of $4.6 million, or $0.28 per diluted share. Return on average assets for the fourth quarter of 2004 increased to 1.38% from 1.26% in the year-ago period and from 1.33% in the immediately preceding 2004 third quarter. Return on average equity was 19.33%, improved from 15.71% in the year-ago fourth quarter and from 19.19% in the 2004 third quarter, reflecting higher interest income due, in part, to Federal Fund rate hikes and increases in average 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 . The company's yield on interest earning assets rose to 6.04% in the 2004 fourth quarter from 5.51% in the same year-ago period, and the average yield on net loans improved to 6.57% from 6.25% in the 2003 fourth quarter. For the full year ended December 31, 2004, net interest income before provision for loan losses grew 33% to $42.7 million from $32.0 million a year ago. The net interest margin for the 2004 year improved to 4.03% from 3.96% last year. The company posted $3.3 million in its provision for loan losses to cover the significant expansion of its loan portfolio, compared with $2.0 million recorded in 2003. Noninterest income for 2004 increased 27% to $21.1 million from $16.6 million a year ago, reflecting strong gains in all core fee income categories, as well as a 72% increase in gain on sale of loans. Total noninterest expenses for 2004 increased 30% to $36.6 million from $28.2 million a year earlier. The efficiency ratio improved to 57.34% for the 2004 full year from 58.10% last year. Excluding an impairment loss of securities available for sale of $2.3 million in 2004 and $880,000 in 2003, the efficiency ratio for 2004 would have been 53.79%, and 56.29% in 2003. For the 2004 full year, net income rose 29% to $15.0 million, or $0.91 per diluted share, from $11.7 million, or $0.72 per diluted share, a year earlier. Excluding the securities impairment charge, the company would have reported full year net income of $16.4 million, or $1.00 per diluted share. Return on average assets and return on average equity for 2004 were 1.29% and 17.82%, respectively, compared with 1.32% and 16.28% in 2003. The company's yield on interest earning assets rose to 5.49% for 2004 from 5.40% a year ago. The average yield on net loans for 2004 totaled 6.10%, compared with 6.25% in 2003. Gross and net loans 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. 2004 advanced 41% each to $1.03 billion and $1.01 billion, respectively, from $728.7 million and $717.0 million at December 31, 2003. Commercial real estate loans increased 58% from a year ago and accounted for 59% of the company's gross loans at the end of 2004. Commercial loans rose 42% from prior-year levels and totaled 20% of the loan portfolio. Trade finance loans increased 35% from year-end 2003 and represented 8% of gross loans. SBA, consumer and real estate construction loans, respectively, totaled 5%, 6% and 2% of Center Financial's loan portfolio at December 31, 2004. Total deposits at the end of 2004 grew 34% to $1.17 billion from $867.9 million at December 31, 2003. Core deposits represented 54% of total deposits at year-end 2004. Noninterest-bearing, interest-bearing Adj. 1. interest-bearing - of financial obligations on which interest is paid 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. increased 29%, 34% and 20%, respectively, from prior-year levels. Noninterest-bearing deposits accounted for 30% of the company's total deposits at December 31, 2004. Time deposits rose 40% to $533.8 million from $381.2 million at year-end 2003. The average cost of interest-bearing deposits for the 2004 fourth quarter and full year were 2.16% and 1.97%, respectively, compared with 1.86% and 2.02% in the corresponding prior-year periods. The average cost of total deposits were 1.50% and 1.29% for the 2004 fourth quarter and full year, respectively. The average cost of funds Cost of Funds The interest rate paid on an outstanding loan. Notes: Money isn't free! Cost of funds is the cost of borrowing money. See also: Interest Rate Cost of funds Interest rate associated with borrowing money. for the fourth quarter of 2004 increased to 2.22% from 1.89% in the year-ago period, but was slightly lower for the full year at 2.04%, compared with 2.05% in 2003. Total assets at December 31, 2004 equaled $1.34 billion, compared with $1.03 billion at year-end 2003. Interest-earning assets grew to $1.22 billion from $906.6 million at December 31, 2003. The company continued to finance its growth of total assets through increased deposits collected by its expanded network of branch offices. Total nonperforming assets Nonperforming asset An asset that is not effectively producing income, such as an overdue loan. nonperforming asset An asset that produces no income. equaled $3.4 million, or 0.26% of total assets, at December 31, 2004, compared with $3.3 million, or 0.32% of total assets, at December 31, 2003. Net charge-offs for the full year totaled $827,000, compared with net recoveries of $44,000 in 2003. The allowance for loan losses was increased to $11.2 million 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 expansion of the company's loan portfolio. The improving loan quality allowed the company to slightly decrease the allowance for loan losses to total gross loans ratio to 1.10% at December 31, 2004, compared with 1.21% at year-end 2003. 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 the end of 2004 increased 16% to $90.7 million from $78.3 million at year-end 2003. At December 31, 2004, 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 9.61%, a total risk-based capital ratio of 10.63%, and a Tier 1 leverage ratio of 9.12%. Investor Conference Call Center Financial management will host an investor conference call on Wednesday Wednesday: see week. , February February: see month. 2, at 8:00 a.m. PST PST Paroxysmal supraventricular tachycardia, see there (11:00 a.m. EST EST electroshock therapy. EST abbr. electroshock therapy ) to review the company's financials and operations for the fiscal fourth quarter and year ended December 31, 2004. The call will be open to all interested parties 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.fulldisclosure.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:
Friday young Indian rescued by Crusoe and kept as servant and companion. [Br. Lit.: Robinson Crusoe] See : Servant , February 4, by calling 888-286-8010 (domestic) or 617-801-6888 (international) and using Reservation No. 61999375. About Center Financial Corporation Center Financial Corporation is the financial 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 a diverse ethnic base of small businesses and individual 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 $1.34 billion at December 31, 2004. Headquartered in Los Angeles, Center Bank operates 24 branch and loan production offices across the nation, of which 15 full-service branches are located throughout Southern California and in Chicago, plus nine loan production offices in Phoenix, 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. , 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, Honolulu, Houston and Dallas. 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 bank and a member of the FDIC FDIC See: Federal Deposit Insurance Corporation FDIC See Federal Deposit Insurance Corporation (FDIC). . 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 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 Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the fiscal year ended Dec. 31, 2003 (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 are incorporated herein by reference. These factors include, but are not limited to: the effect of interest rate and currency exchange fluctuations, competition in the financial services market for both deposits and loans, Center Financial's ability to efficiently incorporate acquisitions into its operations, the ability of Center Financial and its subsidiaries to increase its customer base, the company's ability to successfully operate new loan production offices, 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)
12/31/04 12/31/03
----------- -----------
Assets
Cash and due from banks $63,458 $76,926
Federal funds sold 39,578 41,635
Money market funds and interest-bearing
deposits in other banks - 22,400
Securities available-for-sale 157,027 110,126
Securities held-to-maturity 11,396 15,390
Loans (net of unearned income) 1,021,359 725,812
Allowance for loan losses (11,227) (8,804)
----------- -----------
Net loans 1,010,132 717,008
Fixed assets 11,695 11,063
Bank-owned life insurance - cash surrender
value 10,430 10,034
Goodwill 1,253 -
Other assets 33,508 22,784
----------- -----------
Total Assets $1,338,477 $1,027,366
=========== ===========
Liabilities and Shareholders' Equity
Deposits
Noninterest-bearing deposits $347,195 $268,534
Interest-bearing deposits 818,341 599,331
----------- -----------
Total deposits 1,165,536 867,865
Borrowed funds 44,854 50,671
Long-term subordinated debenture 18,557 18,557
Other liabilities 18,810 12,012
----------- -----------
Total Liabilities 1,247,757 949,105
Shareholders' Equity 90,720 78,261
----------- -----------
Total Liabilities & Shareholders' Equity $1,338,477 $1,027,366
=========== ===========
Book value per share(1) $5.57 $4.88
Number of common shares outstanding at
period end(1) 16,283,496 16,048,520
=========== ===========
(1) Adjusted to reflect 2-for-1 stock split in 2004.
CENTER FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Unaudited)
(In thousands, except share and per share data)
Quarter Ended Twelve Months Ended
December 31, December 31,
2004 2003 2004 2003
----------------------------------------------------------------------
Interest income $17,081 $11,900 $58,117 $43,658
Interest expense 4,561 2,899 15,381 11,643
----------- ----------- ----------- -----------
Net interest income
before provision for
loan losses 12,520 9,001 42,736 32,015
----------- ----------- ----------- -----------
Provision for loan
losses 1,100 250 3,250 2,000
----------- ----------- ----------- -----------
Net interest income
after provision for
loan losses 11,420 8,751 39,486 30,015
Noninterest income
Customer service
fees 2,319 1,910 8,569 7,164
Fee income from
trade finance
transactions 925 723 3,596 2,689
Wire transfer fees 227 197 829 698
Gain on sale of
loans 946 1,088 4,616 2,681
Net (loss) gain on
sale of securities
available-for-sale - - (15) 330
Loan service fees 602 348 2,125 1,296
Gain (loss) on
interest rate swaps (208) - (208) -
Other income 420 489 1,566 1,694
----------- ----------- ----------- -----------
Total noninterest
income 5,231 4,755 21,078 16,552
----------- ----------- ----------- -----------
Noninterest expenses
Salaries and
employee benefits 4,517 3,691 16,361 13,458
Occupancy 634 518 2,477 1,998
Furniture,
fixtures, and
equipment 383 333 1,385 1,321
Data processing 389 335 2,038 1,613
Professional
service fees 1,126 782 3,612 2,204
Business promotion
and advertising 1,038 474 2,543 1,795
Stationery and
supplies 170 136 550 586
Telecommunications 120 103 517 462
Postage and courier
service 163 159 621 545
Security service 152 122 695 573
Impairment loss of
securities
available-for-sale 394 880 2,263 880
Other operating
expenses 902 1,196 3,526 2,784
----------- ----------- ----------- -----------
Total noninterest
expenses 9,988 8,729 36,588 28,219
----------- ----------- ----------- -----------
INCOME BEFORE INCOME
TAX PROVISION 6,663 4,777 23,976 18,348
INCOME TAX PROVISION 2,298 1,733 8,962 6,696
----------- ----------- ----------- -----------
Net income $4,365 $3,044 $15,014 $11,652
=========== =========== =========== ===========
Other comprehensive
(loss) income(1) $(669) $(1,031) $(376) $(1,544)
=========== =========== =========== ===========
Total comprehensive
income $3,696 $2,013 $14,638 $10,108
=========== =========== =========== ===========
Earning per share,
basic(2) $0.27 $0.19 $0.93 $0.74
Earning per share,
diluted(2) $0.26 $0.18 $0.91 $0.72
Basic average common
shares outstanding(2) 16,255,621 16,024,691 16,157,581 15,675,650
Diluted average common
shares outstanding(2) 16,768,425 16,469,663 16,525,865 16,184,253
(1) Comprehensive income represents the change in unrealized gain
(loss) on securities available for sale and, interest rate swaps,
net of tax, from the previous period end.
(2) Adjusted to reflect 2-for-1 stock split in 2004.
CENTER FINANCIAL CORPORATION
SELECTED FINANCIAL DATA (Unaudited)
(In thousands)
For the year ended
December 31,
2004 2003
---------- ---------
Average gross loans outstanding during
period $878,819 $620,302
Total loans outstanding at end of period(1) 1,021,359 725,812
Nonperforming assets
Loans past due 90 days or more and still
accruing interest $- $-
Nonaccrual loans 3,431 3,327
---------- ---------
Total nonperforming loans 3,431 3,327
Other Real Estate Owned - -
---------- ---------
Total Nonperforming assets $3,431 $3,327
========== =========
Allowance for Loan Losses
Balance as of January 1 $(8,804) $(6,760)
Reserve for losses on commitments to extend
credit(2) - -
Provision for loan losses (3,250) (2,000)
Net loan charge-offs and (recoveries) 827 (44)
---------- ---------
Balance as of December 31 $(11,227) $(8,804)
========== =========
Quarter Ended Year Ended
Selected Ratios December 31, December 31,
For the Period 2004 2003 2004 2003
Return on average assets 1.38% 1.26% 1.29% 1.32%
Return on average equity 19.33 15.71 17.82 16.28
Interest rate spread 3.82 3.62 3.45 3.35
Net interest margin 4.45 4.17 4.03 3.96
Yield on earning assets 6.04 5.51 5.49 5.40
Cost of interest-bearing deposits 2.16 1.86 1.97 2.02
Cost of deposits 1.50 1.29 1.37 1.41
Cost of funds 2.22 1.89 2.04 2.05
Noninterest expense/average assets 0.79 0.91 3.13 3.49
Efficiency ratio 56.27 63.46 57.34 58.10
Net charge-offs/(recoveries) to average
loans 0.02 (0.08) 0.09 (0.01)
Year Ended
December 31,
2004 2003
Tier 1 risk-based capital ratio 9.61% 11.56%
Total risk-based capital ratio 10.63 12.67
Tier 1 leverage ratio 9.12 10.69
Nonaccrual loans to gross loans 0.34 0.46
Nonperforming assets to total loans and OREO 0.34 0.46
Nonperforming assets to total assets 0.26 0.32
Allowance for loan loss to gross loans 1.10 1.21
Allowance for loan losses to nonperforming assets 327.22 264.62
(1) Total loans are net of deferred loan fees and discount on SBA
loan sold.
(2) The reserve for losses on commitments to extend credit and
letters of credit is primarily related to lines of credit. The
Company evaluates credit risk associated with the loan portfolio
at the same time it evaluates credit risk associated with
commitments to extend credit and letters of credit. However, as of
December 31, 2002 and thereafter, the reserve necessary for the
commitments is reported separately in other liabilities in the
accompanying statements of financial condition, and not as part of
the allowance for loan losses, as presented above.
CENTER FINANCIAL CORPORATION
SELECTED FINANCIAL DATA (Unaudited)
(In thousands)
For the twelve
months ended
December 31,
Loans 2004 2003 % chg
----------- --------- ------
Real estate-construction $16,919 $18,464 -8.4%
Real estate-commercial 607,296 384,824 57.8%
Commercial 208,995 147,368 41.8%
Consumer 58,178 49,530 17.5%
Trade finance 83,763 61,886 35.4%
SBA 49,027 66,487 -26.3%
Other 864 179 382.7%
----------- --------- ------
Total loans-gross 1,025,042 728,738 40.7%
Unearned income (3,683) (2,926) 25.9%
Allowance for loan losses (11,227) (8,804) 27.5%
----------- --------- ------
Total loans-net $1,010,132 $717,008 40.9%
Deposits
Noninterest bearing $347,195 $268,534 29.3%
Interest-bearing checking 210,842 156,928 34.4%
Savings 73,733 61,251 20.4%
Time deposits 533,765 381,152 40.0%
----------- --------- ------
Total deposits $1,165,535 $867,865 34.3%
Quarter Ended Year Ended
Average Balances December 31, December 31,
2004 2003 2004 2003
----------- --------- ----------- ---------
Average assets $1,259,382 $955,984 $1,167,961 $885,734
Average equity 89,854 76,868 84,239 71,561
Average net loans
(including LFHS) 963,906 681,593 868,915 612,779
Average deposits
(including noninterest
bearing) 1,123,198 854,839 718,029 552,949
Average interest-earning
assets 1,138,795 856,809 1,059,288 808,831
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