Center Financial Reports Strong Loan Growth for 2006 Second Quarter; Sequential Net Interest Margin Expands 18 Basis Points, Benefiting from Loan Growth and Improved Deposit Mix.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 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 holding company of Center Bank, today reported strong sequential One after the other in some consecutive order such as by name or number. growth in its loan portfolio for the second quarter ended June June: see month. 30, 2006. 2006 second quarter highlights include: --Net income increased 28% to $7.7 million, equal to $0.46 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, over the prior-year period --Net loans increased 7% to $1.3 billion from 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 --Non-interest bearing deposits grew 4% over year-end 2005 --Time deposits over $100,000 declined 7% from year-end 2005 --Return on average assets increased to 1.9% --Return on average equity equaled 25.2% --Efficiency ratio was 42.7% --Net interest margin improved sequentially se·quen·tial adj. 1. Forming or characterized by a sequence, as of units or musical notes. 2. Sequent. se·quen to 4.58% --Net interest income before provision for loan losses increased 11% to $17.3 million over the prior-year period --Quarterly cash dividend of $0.04 per share "We are extremely pleased with the positive trends achieved during the quarter," 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. "Our non-interest bearing deposits grew by nearly $14 million, despite the highly competitive market that we operate in, while we strategically reduced price-sensitive time deposits by $46 million. Net loans increased 6.2 percent sequentially, up by $77 million over the preceding quarter, or by $91 million before the sale of unguaranteed loans. And, because the strong loan production was concentrated heavily in the third month of the quarter, we expect to fully benefit from these trends beginning in the current third quarter. "With our strengthened sales team, refocused strategy to grow our loan portfolio, disciplined approach to the competitive deposit market and improvements made in our internal reporting processes, we believe we are well positioned to create greater long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. value for our shareholders," Kim said. 2006 SECOND QUARTER For the three months ended June 30, 2006, net interest income before provision for loan losses rose 11% to $17.3 million from $15.6 million in the 2005 second quarter, reflecting the growth in the company's 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 and the positive impact of prime rate increases, offset in part by higher interest expense on deposits. The company's yield on interest earning assets rose consistently each month throughout the quarter and averaged 7.88% for the three months ended June 30, 2006, reflecting a trend toward a more favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. mix of loans to earning assets. This is up from 7.54% in the immediately preceding first quarter and from 6.87% in the year-ago second quarter. The net interest margin improved to 4.58% from 4.40% in the preceding 2006 first quarter, but was lower when compared with 4.91% in the prior-year second quarter. "Our net interest margin also improved consistently each month during the second quarter," Kim said. "As we focus on minimizing excess liquidity and reducing price sensitive deposits from our balance sheet, continuing solid loan production and maintaining a disciplined pricing approach to deposits, we expect that we will be able to achieve even further improvements in our net interest margin in the second half of the year." The company posted a provision for loan losses of $1.5 million in the 2006 second quarter, compared with $1.1 million in the same 2005 period, reflecting the strong loan production during the quarter. Allowance for loan losses to gross loans equaled 1.13% at June 30, 2006, versus 1.12% a year earlier. Noninterest income totaled $7.7 million in the second quarter of 2006, compared with $5.0 million in the second quarter of 2005. The increase in noninterest income is principally due to the one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. recognition of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $2.5 million for an insurance settlement related to the KEIC KEIC Korea Export Insurance Corporation matter. The company also posted higher gain on sale of loans of $1.1 million in the current second quarter, compared with $592,000 in the year-ago period. Noninterest expense for the 2006 second quarter increased 10% to $10.7 million from $9.7 million a year earlier, principally reflecting increased staff, operational costs associated with the addition of two full-service full-ser·vice adj. Associated with or offering complete service: full-service gasoline pumps; full-service banks. branches during 2005 and higher business promotion and advertising expenses. These increases were partially offset by reduced professional service fees as legal expenses of $230,000 related to the KEIC insurance settlement were recouped during the quarter. The previously mentioned insurance settlement recognition and recouping of certain legal expenses favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. impacted the company's efficiency ratio for the 2006 second quarter, which improved to 42.7% from 46.9% in the prior-year period. Net income for the 2006 second quarter increased 28% to $7.7 million, or $0.46 per diluted share, from $6.0 million, or $0.36 per diluted share, in the corresponding period a year ago. Return on average assets for the 2006 second quarter increased to 1.9% from 1.7% in the prior-year period. Return on average equity equaled 25.2% in the current second quarter, compared with 24.4% in the prior-year period. 2006 FIRST HALF For the six months ended June 30, 2006, net interest income before provision for loan losses increased 15% to $33.9 million from $29.4 million in comparable 2005 period, reflecting the growth in the company's earning assets and the positive impact of prime rate increases, offset in part by higher interest expense on deposits. Yield on interest earning assets in the first half of 2006 rose to 7.71% from 6.61% in same period a year ago. The net interest margin for first six months of 2006 was 4.49%, compared with 4.74% in the prior-year period. The company added $1.8 million to its allowance for loan losses during the year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. period, compared with $1.7 million in the first six months of 2005. Allowance for loan losses to gross loans equaled 1.13% at June 30, 2006, versus 1.12% a year earlier. Noninterest income totaled $12.7 million for first half of 2006, compared with $10.1 million in the year-ago six months. The increase in noninterest income is principally due to the insurance settlement recognition of approximately $2.5 million, plus higher gain on sale of loans of $1.8 million year-to-date, compared with $1.3 million in the 2005 first half. Noninterest expense for the first six months of 2006 rose 20% to $22.8 million from $19.0 million a year earlier, reflecting increased staff, operational costs associated with the addition of two full-service branches during 2005 and business promotion and advertising expenses. In addition, the company posted a non-recurring professional fee of $1.4 million in the first quarter related to a major effort to strengthen its BSA 1. BSA - Business Software Alliance. 2. BSA - Bidouilleurs Sans Argent. infrastructure. Including non-recurring items, the efficiency ratio for the year-to-date period rose to 48.8% from 48.2% in the 2005 first half. Net income for the first six months of 2006 increased 18% to $13.4 million, or $0.81 per diluted share, from $11.4 million, or $0.68 per diluted share, in 2005. Return on average assets and return on average equity for the six months ended June 30, 2006, equaled 1.6% and 22.7%, respectively, compared with 1.7% and 23.9% during the same period in 2005. Gross loans at June 30, 2006, increased 6% sequentially to $1.3 billion from $1.2 billion at March 31, 2006, and rose 7% from $1.2 billion at December December: see month. 31, 2005. As of June 30, 2006, commercial real estate loans remained the largest component of the company's total loan portfolio, increasing 11% over year-end 2005 and accounting for 65% of total loans. Real estate construction loans increased by $13.5 million over December 31, 2005, and accounted for 1% of the company's total loans at June 30, 2006. 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, represented 28% and consumer loans totaled 6% of the gross loan portfolio at June 30, 2006. The company maintained its excellent asset quality with total non-performing assets of $3.5 million, or 0.26% of total loans, at June 30, 2006, compared with $2.9 million, or 0.24% of total loans, at December 31, 2005. Net charge-offs year-to-date totaled $682,000, compared with $389,000 in the first six months of 2005. The allowance for loan losses was increased to $15.0 million, reflecting the expansion of the company's loan portfolio, and represented 1.13% of loans, 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. at June 30, 2006, compared with 1.12% at year-end 2005. Total deposits declined 2% to $1.4 billion at June 30, 2006, as the company's strategic pricing discipline led to a reduction of $46 million in price-sensitive time deposits. This was partially offset by a 4% increase of $14 million in non-interest bearing deposits since year-end. Reflecting a more favorable deposit mix, non-interest bearing deposits of $409.4 million at June 30, 2006, accounted for more than 28% of total deposits, up from 26% in the preceding first quarter. Total time deposits accounted for 51% of total deposits at June 30, 2006, versus 53% at December 31, 2005. Kim noted, "Despite the extremely competitive and higher interest rate environment, our disciplined approach to business development and deposit pricing led to a more favorable deposit portfolio mix with increased non-interest bearing deposits and reduced time deposits. These trends improved our loan-to-deposit ratio to 90.5% from 82.3% at year-end 2005. The company's loan-to-asset ratio was 80% at June 30, 2006, compared with 74% at year-end 2005." The average cost of interest-bearing Adj. 1. interest-bearing - of financial obligations on which interest is paid deposits year-to-date increased to 4.28% from 2.52% for the 2005 first half, reflecting continual increases in the prime rate by the Federal Reserve. The average cost of total deposits rose to 3.17% for the current six months, up from 1.75% in the same year-ago period. Total assets at June 30, 2006, narrowed slightly by 1% to $1.6 billion from $1.7 billion at year-end 2005, reflecting liquidity management and deposit pricing discipline. Interest-earning assets totaled $1.5 billion at the end of the 2006 second quarter, the same as at December 31, 2005, but performance improved substantially because composition shifted to loans. 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 June 30, 2006, increased 11% to $125.2 million from $112.7 million at December 31, 2005. At June 30, 2006, 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 9.98%, a total risk-based capital ratio of 11.07%, and a Tier 1 leverage ratio of 8.61%. "As a testament to the overall performance of our organization, the ABA Aba (ä`bä), city (1991 est. pop. 264,000), SE Nigeria. It is an important regional market, a road and rail hub, and a manufacturing center for cement, textiles, pharmaceuticals, processed palm oil, shoes, plastics, soap, and beer. Banking Journal, in its July July: see month. 2006 issue, recognized Center Financial as one of the top community banks between $100 million and $3 billion in assets, ranking 22nd in the nation," Kim said. "Earlier this month, we announced that the investment banking firm of Sandler Sandler is the surname of:
Investor Conference Call The company will host an investor conference call at 11:00 a.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT (8:00 a.m. PDT PDT abbr. Pacific Daylight Time PDT Pacific Daylight Time PDT n abbr (US) (= Pacific Daylight Time) → hora de verano del Pacífico PDT ) on Thursday Thursday: see week. , July 27, 2006, to review the financial results for its 2006 second quarter and first half. 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:
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 $1.6 billion at June 30, 2006. 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 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, , along with one branch each 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 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. . 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 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 December 31, 2005 (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)
6/30/2006 12/31/2005
--------------- --------------
(Dollars in thousands)
ASSETS
Cash and due from banks $ 82,424 $ 79,822
Federal funds sold 7,080 58,490
Money market funds and interest-
bearing deposits in other banks 5,264 5,064
--------------- --------------
Cash and cash equivalents 94,768 143,376
Securities available for sale, at
fair value 170,109 226,023
Securities held to maturity, at
amortized cost (fair value of
$10,844 as of June 30, 2006 and
$11,014 as of December 31, 2005) 10,990 11,052
Federal Home Loan Bank and Pacific
Coast Bankers Bank stock, at cost 7,158 5,434
Loans, net of allowance for loan
losses of $14,964 as of June 30,
2006 and $13,871 as of December
31, 2005 1,280,520 1,206,408
Loans held for sale, at the lower of
cost or market 26,731 12,741
Premises and equipment, net 13,711 14,027
Customers' liability on acceptances 5,515 4,028
Accrued interest receivable 7,312 6,486
Deferred income taxes, net 10,567 10,205
Investments in affordable housing
partnerships 4,193 4,481
Cash surrender value of life
insurance 10,991 10,805
Goodwill 1,253 1,253
Intangible assets-net 347 373
Other assets 5,140 4,311
--------------- --------------
Total $ 1,649,305 $ 1,661,003
=============== ==============
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Deposits:
Noninterest-bearing $ 409,380 $ 395,050
Interest-bearing 1,034,778 1,085,506
--------------- --------------
Total Deposits 1,444,158 1,480,556
Acceptances outstanding 5,515 4,028
Accrued interest payable 12,222 9,084
Other borrowed funds 36,167 28,643
Trust preferred securities 18,557 18,557
Accrued expenses and other
liabilities 7,151 7,421
--------------- --------------
Total liabilities 1,523,770 1,548,289
Commitments and Contingencies - -
Shareholders' Equity
Serial preferred stock, no par value;
authorized 10,000,000 shares; issued
and outstanding, none - -
Common stock, no par value;
authorized 40,0000,000 shares;
issued and outstanding, 16,521,805
as of June 30, 2006 and 16,439,053
as of December 31, 2005 66,721 65,622
Retained earnings 60,399 48,268
Accumulated other comprehensive loss,
net of tax (1,585) (1,176)
--------------- --------------
Total shareholders' equity 125,535 112,714
--------------- --------------
Total $ 1,649,305 $ 1,661,003
=============== ==============
CENTER FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
------------------------- -------------------------
2006 2005 2006 2005
----------- ----------- ----------- -----------
(Dollars in thousands, except per share data)
Interest and
Dividend Income:
Interest and fees
on loans $ 26,767 $ 20,043 $ 52,055 $ 37,637
Interest on
federal funds
sold 595 188 1,418 359
Interest on
taxable
investment
securities 2,058 1,422 4,244 2,703
Interest on tax-
advantaged
investment
securities 152 76 249 147
Dividends on
equity stock 92 54 158 87
Money market funds
and interest-
earning deposits 53 27 113 50
----------- ----------- ----------- -----------
Total interest
and dividend
income 29,717 21,810 58,237 40,983
Interest Expense:
Interest on
deposits 11,920 5,666 23,344 10,487
Interest expense
on trust
preferred
securities 177 278 281 532
Interest on
borrowed funds 359 272 693 538
----------- ----------- ----------- -----------
Total Interest
expense 12,456 6,216 24,318 11,557
----------- ----------- ----------- -----------
Net interest
income before
provision for
loan losses 17,261 15,594 33,919 29,426
Provision for loan
losses 1,518 1,050 1,775 1,700
----------- ----------- ----------- -----------
Net interest
income after
provision for
loan losses 15,743 14,544 32,144 27,726
Noninterest
Income:
Customer service
fees 2,084 2,428 4,214 4,663
Fee income from
trade finance
transactions 797 929 1,750 1,831
Wire transfer fees 237 251 453 455
Gain on sale of
loans 1,123 592 1,797 1,265
Net gain on sale
of securities
available for
sale - 1 - 51
Loan service fees 414 419 968 859
Insurance
settlement -
legal fees 2,520 - 2,520 -
Other income 532 394 1,012 927
----------- ----------- ----------- -----------
Total
noninterest
income 7,707 5,014 12,714 10,051
----------- ----------- ----------- -----------
Noninterest
Expense:
Salaries and
employee benefits 5,315 4,532 10,878 8,977
Occupancy 896 854 1,779 1,569
Furniture,
fixtures, and
equipment 509 407 969 815
Data processing 541 477 1,083 942
Professional
service fees 354 1,108 2,414 1,906
Business promotion
and advertising 1,123 666 1,968 1,316
Stationary and
supplies 167 236 326 413
Telecommunications 165 170 338 299
Postage and
courier service 195 187 336 350
Security service 239 197 502 372
Loss on
termination of
interest rate
swap - - - 306
Loss on interest
rate swaps 30 (38) 83 119
Other operating
expenses 1,133 864 2,081 1,646
----------- ----------- ----------- -----------
Total
noninterest
expense 10,667 9,660 22,757 19,030
----------- ----------- ----------- -----------
Income before
income tax
provision 12,783 9,898 22,101 18,747
Income tax
provision 5,104 3,888 8,653 7,324
----------- ----------- ----------- -----------
Net income 7,679 6,010 13,448 11,423
Other
comprehensive
income -
unrealized gain
(loss) on
available for
sale securities,
net of income tax
(expense) benefit
of $450, $(175),
$296 and $214 (622) (89) (409) (313)
----------- ----------- ----------- -----------
Comprehensive
income $ 7,057 $ 5,921 $ 13,039 $ 11,110
=========== =========== =========== ===========
EARNINGS PER SHARE:
Basic $ 0.47 $ 0.37 $ 0.82 $ 0.70
=========== =========== =========== ===========
Diluted $ 0.46 $ 0.36 $ 0.81 $ 0.68
=========== =========== =========== ===========
Weighted average
shares
outstanding -
basic 16,494,000 16,356,000 16,481,000 16,336,000
=========== =========== =========== ===========
Weighted average
shares
outstanding -
diluted 16,635,000 16,677,000 16,641,000 16,670,000
=========== =========== =========== ===========
CENTER FINANCIAL CORPORATION
SELECTED FINANCIAL DATA (Unaudited)
(In thousands)
Three Months Ended June 30,
----------------------------
2006
----------------------------
Interest
Average Income/ Rate/
Balance Expense Yield
----------- --------- ------
Assets:
Interest-earning assets:
Loan $1,244,273 $26,767 8.63%
Federal funds sold 49,293 595 4.84
Investments 218,259 2,355 4.60
----------- --------- ------
Total interest-earning assets 1,511,825 29,717 7.88%
----------- --------- ------
Noninterest - earning assets:
Cash and due from banks 79,629
Bank premises and equipment, net 13,769
Customers' acceptances outstanding 5,228
Accrued interest receivables 6,930
Other assets 32,613
-----------
Total noninterest-earning assets 138,169
-----------
Total assets $1,649,994
===========
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Deposits:
Money market and NOW accounts $219,626 $1,636 2.99%
Savings 81,958 775 3.80
Time certificate of deposits over
$100,000 680,426 8,419 4.96
Other time certificate of deposits 101,748 1,090 4.30
----------- --------- ------
1,083,758 11,920 4.45
Other borrowed funds 14,463 177 4.92
Long-term subordinated debentures 18,557 359 7.76
----------- --------- ------
Total interest-bearing liabilities 1,116,778 12,456 4.47
----------- --------- ------
Noninterest-bearing liabilities:
Demand deposits 387,106
-----------
Total funding liabilities 1,503,884 3.32%
======
Other liabilities 23,686
-----------
Total noninterest-bearing liabilities 410,792
Shareholders' equity 122,424
-----------
Total liabilities and shareholders'
equity $1,649,994
===========
Net interest income $17,261
=========
Cost of deposits 3.25%
======
Net interest spread 3.41%
======
Net interest margin 4.58%
======
Three Months Ended June 30,
----------------------------
2005
----------------------------
Interest
Average Income/ Rate/
Balance Expense Yield
----------- --------- ------
Assets:
Interest-earning assets:
Loan $1,068,492 $20,043 7.52%
Federal funds sold 25,263 188 2.98
Investments 180,441 1,579 3.59
----------- --------- ------
Total interest-earning assets 1,274,196 21,810 6.87%
----------- --------- ------
Noninterest - earning assets:
Cash and due from banks 69,815
Bank premises and equipment, net 12,583
Customers' acceptances outstanding 3,980
Accrued interest receivables 3,889
Other assets 27,830
-----------
Total noninterest-earning assets 118,097
-----------
Total assets $1,392,293
===========
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Deposits:
Money market and NOW accounts $214,546 $975 1.82%
Savings 79,097 636 3.23
Time certificate of deposits over
$100,000 476,913 3,546 2.98
Other time certificate of deposits 82,536 509 2.47
----------- --------- ------
853,092 5,666 2.66
Other borrowed funds 33,109 278 3.37
Long-term subordinated debentures 18,557 272 5.88
----------- --------- ------
Total interest-bearing liabilities 904,758 6,216 2.76%
----------- --------- ------
Noninterest-bearing liabilities:
Demand deposits 380,479
-----------
Total funding liabilities 1,285,237 1.94%
======
Other liabilities 8,154
-----------
Total noninterest-bearing liabilities 388,633
Shareholders' equity 98,902
-----------
Total liabilities and shareholders'
equity $1,392,293
===========
Net interest income $15,594
=========
Cost of deposits 1.84%
======
Net interest spread 4.11%
======
Net interest margin 4.91%
======
CENTER FINANCIAL CORPORATION
SELECTED FINANCIAL DATA (Unaudited)
(In thousands)
Six Months Ended June 30,
---------------------------
2006
---------------------------
Interest
Average Income/ Rate/
Balance Expense Yield
----------- -------- ------
Assets:
Interest-earning assets:
Loan $1,236,045 $52,055 8.49%
Federal funds sold 61,482 1,418 4.65
Investments 225,237 4,764 4.48
----------- -------- ------
Total interest-earning assets 1,522,764 58,237 7.71%
----------- -------- ------
Noninterest - earning assets:
Cash and due from banks 77,062
Bank premises and equipment, net 13,871
Customers' acceptances outstanding 4,636
Accrued interest receivables 6,722
Other assets 31,209
-----------
Total noninterest-earning assets 133,500
-----------
Total assets $1,656,264
===========
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Deposits:
Money market and NOW accounts $211,339 $2,996 2.86%
Savings 81,317 1,519 3.77
Time certificate of deposits over
$100,000 707,290 16,811 4.80
Other time certificate of deposits 101,122 2,018 4.02
----------- -------- ------
1,101,068 23,344 4.28
Other borrowed funds 11,964 281 4.74
Long-term subordinated debentures 18,557 693 7.53
----------- -------- ------
Total interest-bearing liabilities 1,131,589 24,318 4.33
----------- -------- ------
Noninterest-bearing liabilities:
Demand deposits 383,290
-----------
Total funding liabilities 1,514,879 3.24%
======
Other liabilities 22,135
-----------
Total noninterest-bearing liabilities 405,425
Shareholders' equity 119,250
-----------
Total liabilities and shareholders'
equity $1,656,264
===========
Net interest income $33,919
========
Cost of deposits 3.17%
======
Net interest spread 3.38%
======
Net interest margin 4.49%
======
Six Months Ended June 30,
---------------------------
2005
---------------------------
Interest
Average Income/ Rate/
Balance Expense Yield
----------- -------- ------
Assets:
Interest-earning assets:
Loan $1,048,268 $37,637 7.24%
Federal funds sold 26,318 359 2.75
Investments 176,049 2,987 3.50
----------- -------- ------
Total interest-earning assets 1,250,635 40,983 6.61%
----------- -------- ------
Noninterest - earning assets:
Cash and due from banks 68,623
Bank premises and equipment, net 12,238
Customers' acceptances outstanding 5,238
Accrued interest receivables 4,809
Other assets 27,707
-----------
Total noninterest-earning assets 118,615
-----------
Total assets $1,369,250
===========
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Deposits:
Money market and NOW accounts $208,713 $1,815 1.75%
Savings 77,183 1,236 3.23
Time certificate of deposits over
$100,000 470,597 6,482 2.78
Other time certificate of deposits 82,309 954 2.34
----------- -------- ------
838,802 10,487 2.52
Other borrowed funds 34,562 532 3.10
Long-term subordinated debentures 18,557 538 5.84
----------- -------- ------
Total interest-bearing liabilities 891,921 11,557 2.61%
----------- -------- ------
Noninterest-bearing liabilities:
Demand deposits 367,615
-----------
Total funding liabilities 1,259,536 1.85%
======
Other liabilities 13,257
-----------
Total noninterest-bearing liabilities 380,872
Shareholders' equity 96,457
-----------
Total liabilities and shareholders'
equity $1,369,250
===========
Net interest income $29,426
========
Cost of deposits 1.75%
======
Net interest spread 4.00%
======
Net interest margin 4.74%
======
CENTER FINANCIAL CORPORATION
SELECTED FINANCIAL DATA (Unaudited)
June 30, 2006 December 31, 2005
------------------- -------------------
Percent Percent
of of
Amount Total Amount Total
----------- ------- ----------- -------
(Dollars in thousands)
Real Estate:
Construction $18,260 1.38% $4,713 0.38%
Commercial 858,331 64.77 776,725 62.80
Commercial 244,557 18.45 243,052 19.65
Trade Finance 75,351 5.69 90,370 7.30
SBA 53,621 4.05 49,070 3.97
Other 343 .03 1,473 0.12
Consumer 74,668 5.63 71,499 5.78
----------- ------- ----------- -------
Total Gross Loans 1,325,131 100.00% 1,236,902 100.00%
======= =======
Less:
Allowance for Losses 14,964 13,871
Deferred Loan Fees 1,828 1,595
Discount on SBA Loans
Retained 1,088 2,287
----------- -----------
Total Net Loans and Loans
Held for Sale $1,307,251 $1,219,149
=========== ===========
June 30, December 31,
2006 2005
---------------- ---------------
(Dollars in thousands)
Demand deposits (noninterest-bearing) $ 409,380 $ 395,050
Money market accounts and NOW 215,931 221,083
Savings 82,178 81,654
Time deposits
Less than $100,000 98,711 97,433
$100,000 or more 637,958 685,336
--------------- --------------
Total $ 1,444,158 $ 1,480,556
=============== ==============
CENTER FINANCIAL CORPORATION
SELECTED FINANCIAL DATA (Unaudited)
June 30, December 31, June 30,
2006 2005 2005
--------- ------------ ---------
(Dollars in thousands)
Nonaccrual loans:
Real estate:
Construction $ - $ 1,632 $ 1,695
Commercial 355 - -
Commercial 2,249 598 900
Consumer 191 113 67
Trade Finance - - -
SBA 687 600 370
-------- ----------- --------
Total nonperforming loans 3,482 2,943 3,032
Other real estate owned - - -
-------- ----------- --------
Total nonperforming assets $ 3,482 $ 2,943 $ 3,032
======== =========== ========
Six Months Six Months
Ended Year Ended Ended
June 30, Dec. 31, June 30,
2006 2005 2005
---------- ---------- ----------
Balances (Dollars in thousands)
Average total loans outstanding
during the period (22) $1,250,187 $1,123,880 $1,059,963
========== ========== ==========
Total loans outstanding at end of
period (22) $1,322,215 $1,234,615 $1,122,790
========== ========== ==========
Allowance for Loan Losses:
Balance at beginning of period $ 13,871 $ 11,227 $ 11,227
---------- ---------- ----------
Charge-offs:
Real estate 258 - -
Commercial 783 623 309
Consumer 126 227 117
SBA 35 37 2
---------- ---------- ----------
Total charge-offs 1,202 887 428
---------- ---------- ----------
Recoveries
Real estate 423 - -
Commercial 34 102 15
Consumer 60 12 11
Trade finance - 23 -
SBA 3 24 13
---------- ---------- ----------
Total recoveries 520 161 39
---------- ---------- ----------
Net loan charge-offs 682 726 389
---------- ---------- ----------
Provision for loan losses 1,775 3,370 1,700
---------- ---------- ----------
Balance at end of period $ 14,964 $ 13,871 $ 12,538
========== ========== ==========
Ratios:
Nonperforming loans as a percent
of total loans 0.26% 0.24% 0.27%
Nonperforming assets as a percent
of total loans and other real
estate owned 0.26 0.24 0.27
Net loan charge-offs to average
loans 0.05 0.06 0.04
Provision for loan losses to
average total loans 0.14 0.30 0.16
Allowance for loan losses to
gross loans at end of period 1.13 1.12 1.12
Allowance for loan losses to
total nonperforming loans 429.75 471.32 413.58
Net loan charge-offs to allowance
for loan losses at end of period 4.56 5.23 3.10
Net loan charge-offs to provision
for loan losses 38.42 21.54 22.88
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