LOS ANGELES--(BUSINESS WIRE)--January 28, 2010--Center Financial Corporation (NASDAQ:CLFC), the holding company of Center Bank, today reported financial results for its fourth quarter and full year ended December 31, 2009.

“Center Financial closed a most difficult 2009 on high grounds with numerous achievements that strengthened the company’s position going into 2010,” said Jae Whan (J.W.) Yoo, president and chief executive officer. “We continued to strengthen our balance sheet and significantly enhanced our liquidity position. Throughout the year, we made more stringent our methodology for calculating reserves, which contributed to a strong build up of our reserves to levels that we believe sufficiently address the company’s current credit risk profile. We expanded our own stress testing capabilities and are now systematically performing reviews on a quarterly basis. In addition to our regular semi-annual external loan review, we engaged another third party to complete a detailed loan review ahead of imminent capital raise plans.

“Following these actions, Center Financial successfully completed two separate private placements late in the year raising a net total of $82.8 million in new capital for the company. The strong participation by the board and management team underscores a unified commitment to the organization. Both of these transactions were considerably oversubscribed for by the institutional investors and the local Korean-American community. We believe this was a resounding vote of confidence for Center Financial’s leadership to successfully navigate through the current economic storm and capitalize on the opportunities ahead,” Yoo said.

As previously announced and in preparation for the planned capital raise, Center Financial engaged a third party outside of its semi-annual external loan review to complete a detailed review of the bank’s 200 largest loan relationships. The extensive review, which was designed to be consistent with heightened regulatory standards in the current environment, encompassed approximately 75% of the commercial real estate loan portfolio and included 8 of the 20 largest commercial and industrial loans. Based on this review and considering the market’s expectations for declining commercial real estate valuations, the company proactively migrated a number of previously impaired credits to nonaccrual status and took aggressive actions to dispose of certain potential problem assets.

Nonperforming loans as of December 31, 2009 totaled $63.5 million, compared with $43.0 million at September 30, 2009. Total nonperforming assets as of December 31, 2009, including $4.3 million in other real estate owned (OREO), equaled $67.7 million, or $64.9 million net of the SBA guarantee. This compares with total nonperforming assets at September 30, 2009 of $47.8 million, or $44.7 million net of the SBA guarantee, including $4.8 million in OREO. Total nonperforming assets represented 4.39% of gross loans and OREO at December 31, 2009, compared with 2.99% at September 30, 2009.

Delinquent loans 30 to 89 days past due decreased to $13.4 million as of December 31, 2009 from $15.6 million at September 30, 2009. Performing troubled debt restructurings (TDRs) that are not accounted for in nonaccrual or delinquent loans equaled $4.4 million at December 31, 2009, which is relatively the same level as of September 30, 2009.

Net charge-offs during the 2009 fourth quarter totaled $28.1 million, compared with $11.8 million in the preceding third quarter as the company moved aggressively to dispose of potential problem credits. This increased the company’s net charge-offs for 2009 to $57.1 million. As a percentage of average loans on an annualized basis, net charge-offs equaled 3.49% for the full year ended December 31, 2009.

Center Financial recorded a provision for loan losses of $22.6 million for the 2009 fourth quarter, taking into consideration the findings of the detailed loan review and the current economic conditions. With this provision, the company said it believes its allowance for loan losses, which totaled $58.5 million at December 31, 2009 and represented 3.81% of gross loans, was sufficient to absorb the inherent losses in its portfolio. In the preceding 2009 third quarter, the company posted a $10.6 million provision and the allowance for loan losses was $64.0 million as of September 30, 2009, representing 4.01% of gross loans.

Gross loans at December 31, 2009 totaled $1.54 billion, reflecting a decrease from $1.59 billion at September 30, 2009. The continued strategic reductions reflect lower levels of loan originations in the challenging credit environment, higher levels of loan pay-offs and charge-offs and assertive measures to dispose of potential problem assets. Net loans as a percentage of total assets declined to 67.5% at December 31, 2009 from 69.4% at September 30, 2009, principally due to higher levels of liquidity on balance sheet.

Total deposits at December 31, 2009 equaled $1.75 billion, compared with $1.81 billion at September 30, 2009. The company said strong increases in its core deposit categories, including noninterest-bearing deposits, money market account and savings were more than offset by a $116.6 million decline in its times deposit end of period balances, primarily in brokered certificates of deposit. At year-end, noninterest-bearing demand deposits increased by $19.9 million from September 30, 2009 to $352.4 million and represented 20.2% of total deposits. Money market accounts increased by $25.3 million to $528.3 million and savings deposits grew by $8.9 million to $86.6 million from September 30, 2009. The company’s loan-to-deposit ratio equaled 84.6% at December 31, 2009, compared with 84.4% at September 30, 2009.

The average cost of interest-bearing deposits continued to decline sharply, decreasing by 39 basis points to 1.97% for the three months ended December 31, 2009 from 2.36% for the preceding 2009 third quarter. Total cost of deposits declined 35 basis points to 1.60% at year-end from 1.95% at September 30, 2009.

Total assets at December 31, 2009 increased to $2.19 billion from $2.06 billion at year-end 2008, primarily reflecting higher levels of liquidity on the balance sheet, partially offset by an ongoing strategic reduction in the company’s loan portfolio. Reflecting these lower balances, average interest-earning assets for the 2009 fourth quarter equaled $2.01 billion, compared with $2.06 billion for the preceding third quarter.

Total shareholders’ equity at December 31, 2009 increased to $256.1 million from $214.6 million at December 31, 2008 primarily reflecting the positive effect of the capital raise transactions in the 2009 fourth quarter. As of December 31, 2009, the company’s tangible common equity as a percentage of tangible assets, as a non-GAAP financial measure, equaled 6.01%, compared with 7.69% at December 31, 2008. Center Financial was strongly capitalized at year-end 2009, with all of its capital ratios exceeding all guidelines as outlined in the informal agreement entered into with the company’s regulators. As of December 31, 2009, the company’s capital position improved sharply from the preceding period end as a result of the capital raises with the total risk-based capital ratio increasing to 17.66%, Tier 1 risk-based capital ratio advancing to 16.38%, and Tier 1 leverage ratio expanding to 12.40%.

Net interest income before provision for loan losses increased to $15.2 million for the three months ended December 31, 2009 from $14.8 million for the preceding 2009 third quarter, as reductions in the company’s deposit costs offset the adverse effect of lower loan balances, declining loan yields and the reversal of interest on nonaccrual loans. For the 2008 fourth quarter, the company reported net interest income before provision for loan losses of $17.8 million. The average yield on loans for the 2009 fourth quarter equaled 5.63%, compared with 5.91% in the preceding 2009 third quarter and 6.37% for the prior-year fourth quarter. The average yields on the investment portfolio were 3.41% for the 2009 fourth quarter, 3.82% for the 2009 third quarter and 4.58% for the fourth quarter of 2008.

The company’s net interest margin for the 2009 fourth quarter rose 15 basis points to 3.00% from 2.85% in the preceding third quarter, but was lower when compared with 3.71% in the fourth quarter a year ago. The company attributed the sequential expansion in net interest margin principally to a 35 basis point reduction in cost of deposits and lower balances in low-yielding Federal funds sold, partially offset by the decline in weighted average loan yields, decreasing loan balances and the reversal of previously accrued interest income on loans placed on non-accrual status during the quarter.

Noninterest income totaled $3.4 million in the fourth 2009 quarter, versus $3.3 million in the 2009 third quarter and $1.2 million in the prior-year fourth quarter.

Total noninterest expense for the 2009 fourth quarter was $12.5 million, compared to $11.7 million for the 2009 third quarter and $10.2 million for the year-ago fourth quarter. The company noted that while its compensation expenses declined by 11.0% from the preceding 2009 third quarter, total noninterest expenses on a sequential basis was higher due to a full impairment of its goodwill and core deposit intangible for a total of $1.4 million. The company’s efficiency ratio for the 2009 fourth quarter equaled 66.95%, compared with 64.53% for the preceding 2009 third quarter and 53.25% for the 2008 fourth quarter.

As previously guided, following an evaluation of its deferred tax asset, the company recorded an impairment of $15.0 million based on the current economic conditions, which resulted in a net tax provision of $8.0 million for the 2009 fourth quarter. Including this significantly higher-than-usual tax provision and the $22.6 million loan loss provision for the quarter, Center Financial incurred a net loss of $24.5 million, equal to $1.41 per common share, for the 2009 fourth quarter. This compares with a net loss of $2.5 million, or $0.19 per common share, for the preceding 2009 third quarter, and a net loss of $6.1 million, equal to $0.37 per common share, for the prior-year fourth quarter.

For the 2009 fourth quarter, Center Financial posted a loss on average assets and loss on average equity of 4.44% and 48.45%, respectively. This compares with loss on average assets of 0.45% and loss on average equity of 5.01% in the preceding third quarter of 2009. For the year-ago fourth quarter, loss on average assets equaled 1.20% and loss on average equity was 13.53%.

Yoo concluded, “With the close of 2009, we have completed two years of strategic deleveraging and reserve building. We believe that the prudent, assertive and tactical actions that we have taken to date position Center Financial on strong grounds to return to profitability and capitalize on growth opportunities in 2010.”

This news release includes “non-GAAP financial measures” within the meaning of the Securities and Exchange Commission rules. Tangible common equity per common share and tangible common equity to tangible assets are non-GAAP financial measures. Tangible common equity was calculated as total shareholders’ equity less preferred stock and related dividend and accretion of preferred stock discount, goodwill and intangible assets, net. Tangible common equity to tangible assets represents tangible common equity divided by total assets less goodwill and other intangible assets, net. The calculation of tangible common equity may differ among companies in light of diversity in presentation in the marketplace. Management believes that these measures are useful when comparing banks with preferred stock due to TARP funding to banks without preferred stock on their balance sheet and for evaluating a company’s capital levels. This information is being provided in response to market participant interest in these financial metrics. This information is not intended to be considered in isolation or as a substitute for the relevant measures calculated in accordance with U.S. GAAP. The reconciliations of these non-GAAP financial measures to GAAP financial measure included in this news release are attached herein.

The company will host an investor conference call on Friday, January 29, 2010 at 9 a.m. PST (12 noon EST) to review financial results for its 2009 fourth quarter and full year. The institutional investment community is invited to participate in the call by dialing 866-202-4367 (domestic) or 617-213-8845 (international) and entering passcode 43939983. Other interested parties are invited to listen to the live call through a listen-only audio Web broadcast via the Internet in the Investor Relations section of www.centerbank.com. Listeners are encouraged to visit the Web site at least 15 minutes prior to the start of the scheduled presentation to register, download and install any necessary audio software. For those who are not available to listen to the live broadcast, the audio broadcast will be archived for one year. A telephonic replay of the call will be available through Friday, February 5, 2010 by dialing 888-286-8010 (domestic) or 617-801-6888 (international) and entering replay passcode 79205107.

Center Financial Corporation is the holding company of Center Bank, a community bank offering a full range of financial services 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 soundest financial institutions focusing on the Korean-American community, with total assets of $2.19 billion at December 31, 2009. Headquartered in Los Angeles, Center Bank operates a total of 19 full-service branches and one loan production office. The company has 16 full-service branches located throughout Southern California. Center Bank also operates two branches and one loan production office in the Seattle area, along with one branch in Chicago. Center Bank is a California state-chartered institution and its deposits are insured by the 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 contains forward-looking statements, which are included in accordance with the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements are not guarantees of future performance and involve significant risks and uncertainties, and 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. Factors that might cause such differences include, but are not limited to, those identified in our cautionary statements contained in Center Financial Corp.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2008 (See Business, and Management’s Discussion and Analysis), 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; changes in interest rates; new litigation or changes or adverse developments in existing litigation; and regional and general economic conditions. 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)
(Dollars in thousands)
	December 31,
	2009			2008
ASSETS
Cash and due from banks	$	34,294		$	45,129
Federal funds sold		145,810			50,435
Money market funds and interest-bearing deposits in other banks		52,698			2,647
Cash and cash equivalents		232,802			98,211

Securities available for sale, at fair value		370,427			173,833
Securities held to maturity, at amortized cost (fair value of $0 as of December 31, 2009 and $8,879 as of December 31, 2008)		-			8,861
Federal Home Loan Bank and Pacific Coast Bankers Bank stock, at cost		15,673			15,673
Loans, net of allowance for loan losses of $58,543 as of December 31, 2009 and $38,172 as of December 31, 2008		1,455,824			1,669,476
Loans held for sale, at the lower of cost or market		23,318			9,864
Premises and equipment, net		13,368			14,739
Customers' liability on acceptances		2,341			4,503
Other real estate owned, net		4,278			-
Accrued interest receivable		6,879			7,477
Deferred income taxes, net		12,313			19,855
Investments in affordable housing partnerships		11,522			12,936
Cash surrender value of life insurance		12,392			11,992
Income tax receivable		15,378			-
Goodwill		-			1,253
Intangible assets, net		-			213
Prepaid assessment fees		11,483			-
Other assets		4,802			7,723
Total	$	2,192,800		$	2,056,609

LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Deposits:
Noninterest-bearing	$	352,395		$	310,154
Interest-bearing		1,395,276			1,293,365
Total deposits		1,747,671			1,603,519

Acceptances outstanding		2,341			4,503
Accrued interest payable		5,803			7,268
Other borrowed funds		148,443			193,021
Long-term subordinated debentures		18,557			18,557
Accrued expenses and other liabilities		13,927			15,174
Total liabilities		1,936,742			1,842,042
Commitments and Contingencies		-			-
Shareholders' Equity
Preferred stock, no par value, 10,000,000 shares authorized; issued and outstanding, 128,500 shares and 55,000 shares as of December 31, 2009 and December 31, 2008, respectively
Series A, cumulative, issued and outstanding 55,000 shares as of December 31, 2009 and 2008		53,171			52,959
Series B, non-cumulative, convertible, issued and outstanding 73,500 shares and none as of December 31, 2009 and 2008, respectively		70,000			-
Common stock, no par value; authorized 40,000,000 shares; issued and outstanding, 20,160,726 shares and 16,789,080 shares (including 10,050 shares and 10,400 shares of unvested restricted stock) as of December 31, 2009 and December 31, 2008, respectively		88,060			74,254
Retained earnings		41,314			85,846
Accumulated other comprehensive income, net of tax		3,513			1,508
Total shareholders' equity		256,058			214,567
Total	$	2,192,800		$	2,056,609


Tangible common equity per common share	$	6.54		$	9.42
Tangible common equity to tangible assets		6.01	%		7.69	%


CENTER FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Unaudited)
(Dollars in thousands, except per share data)

	Three Months Ended									Twelve Months Ended December 31,
	12/31/09			9/30/09			12/31/08			2009			2008
Interest and Dividend Income:
Interest and fees on loans	$	21,378		$	23,128		$	27,427		$	93,559		$	122,424
Interest on federal funds sold		108			162			15			418			105
Interest on investment securities		2,774			2,426			2,169			9,834			8,678
Total interest and dividend income		24,260			25,716			29,611			103,811			131,207

Interest Expense:
Interest on deposits		7,266			9,031			9,266			34,935			46,126
Interest expense on long-term subordinated debentures		145			156			344			674			1,187
Interest on borrowed funds		1,639			1,736			2,164			6,975			9,294
Total interest expense		9,050			10,923			11,774			42,584			56,607

Net interest income before provision for loan losses		15,210			14,793			17,837			61,227			74,600
Provision for loan losses		22,625			10,561			19,848			77,472			26,178
Net interest (loss) income after provision for loan losses		(7,415	)		4,232			(2,011	)		(16,245	)		48,422

Noninterest Income:
Customer service fees		2,009			2,008			2,014			8,013			7,658
Fee income from trade finance transactions		587			543			572			2,266			2,520
Wire transfer fees		300			275			332			1,120			1,153
Gain on sale of loans		-			-			-			-			1,017
Loan service fees		188			167			356			814			1,357
Impairment loss on securities available for sale		-			-			(2,611	)		-			(9,889	)
Other income		340			349			577			1,766			1,670
Total noninterest income		3,424			3,342			1,240			13,979			5,486

Noninterest Expense:
Salaries and employee benefits		4,159			4,671			4,545			17,804			23,726
Occupancy		1,232			1,214			1,206			4,876			4,480
Furniture, fixtures, and equipment		653			713			565			2,410			2,103
Data processing		572			591			543			2,280			2,169
Legal fees		263			174			73			1,087			2,203
Accounting and other professional service fees		442			425			321			1,629			1,362
Business promotion and advertising		455			289			477			1,426			1,900
Stationery and supplies		208			104			131			526			560
Telecommunications		167			185			220			672			757
Postage and courier service		87			79			205			359			789
Security service		263			269			280			1,038			1,131
Regulatory assessment		558			642			312			3,435			1,265
OREO related expenses		605			1,152			2			1,910			71
Impairment of goodwill and intangible assets		1,413			-			-			1,413			-
Other operating expenses		1,400			1,195			1,277			5,205			12,819
Total noninterest expense		12,477			11,703			10,157			46,070			55,335

Loss before income tax provision (benefit)		(16,468	)		(4,129	)		(10,928	)		(48,336	)		(1,427	)
Income tax provision (benefit)		7,999			(1,605	)		(4,808	)		(5,834	)		(1,647	)

Net (loss) income		(24,467	)		(2,524	)		(6,120	)		(42,502	)		220

Preferred stock dividends and accretion of preferred stock discount		(744	)		(742	)		(155	)		(2,952	)		(155	)
Net (loss) income available to common shareholders		(25,211	)		(3,266	)		(6,275	)		(45,455	)		65

Other comprehensive income - unrealized gain on available-for-sale securities, net of income tax expense		(64	)		1,365			1,464			2,927			1,602

Comprehensive (loss) income	$	(24,531	)	$	(1,159	)	$	(4,656	)	$	(39,575	)	$	1,822

(Loss) earnings per share:
Basic	$	(1.41	)	$	(0.19	)	$	(0.37	)	$	(2.66	)	$	-
Diluted	$	(1.41	)	$	(0.19	)	$	(0.37	)	$	(2.66	)	$	-

Weighted average shares outstanding - basic		17,933,000			16,789,000			16,788,000			17,077,000			16,526,000
Weighted average shares outstanding - diluted		17,933,000			16,789,000			16,815,000			17,077,000			16,560,000


CENTER FINANCIAL CORPORATION
SELECTED FINANCIAL DATA (Unaudited)
(Dollars in thousands)
	Three Months Ended
	12/31/09				9/30/09				12/31/08

	Average		Rate/		Average		Rate/		Average		Rate/
	Balance		Yield		Balance		Yield		Balance		Yield
Assets:
Interest-earning assets:
Loans	$	1,506,443	5.63	%	$	1,553,814	5.91	%	$	1,712,834	6.37	%
Federal funds sold		182,823	0.23			254,853	0.25			10,664	0.56
Investments		322,311	3.41			251,891	3.82			188,268	4.58
Total interest-earning assets		2,011,578	4.78			2,060,558	4.95			1,911,766	6.16
Noninterest - earning assets:
Cash and due from banks		86,634				84,367				45,105
Bank premises and equipment, net		13,579				13,975				14,814
Customers' acceptances outstanding		1,832				2,587				4,081
Accrued interest receivables		6,857				7,427				7,365
Other assets		65,791				62,418				43,344
Total noninterest-earning assets		174,694				170,774				114,709

Total assets	$	2,186,271			$	2,231,332			$	2,026,475

Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Deposits:
Money market and NOW accounts	$	542,529	1.35	%	$	496,907	1.75	%	$	402,482	2.52	%
Savings		79,824	2.96			80,529	3.24			51,731	3.48
Time certificates of deposit over $100,000		535,768	2.20			597,068	2.64			615,768	3.25
Other time certificates of deposit		306,417	2.40			341,459	2.56			137,787	3.58
		1,464,538	1.97			1,515,963	2.36			1,207,768	3.05
Other borrowed funds		148,049	4.39			159,775	4.31			266,839	3.23
Long-term subordinated debentures		18,557	3.10			18,557	3.34			18,557	7.37
Total interest-bearing liabilities		1,631,144	2.20			1,694,295	2.56			1,493,164	3.14
Noninterest-bearing liabilities:
Demand deposits		340,719				322,370				329,467
Total funding liabilities		1,971,863	1.82	%		2,016,665	2.15	%		1,822,631	2.57	%
Other liabilities		14,040				14,611				23,810
Total noninterest-bearing liabilities		354,759				336,981				353,277
Shareholders' equity		200,368				200,056				180,034
Total liabilities and shareholders' equity	$	2,186,271			$	2,231,332			$	2,026,475

Net interest income
Cost of deposits			1.60	%			1.95	%			2.40	%
Net interest spread			2.58	%			2.39	%			3.02	%
Net interest margin			3.00	%			2.85	%			3.71	%


CENTER FINANCIAL CORPORATION
SELECTED FINANCIAL DATA (Unaudited)
(Dollars in thousands)
	For the Year Ended December 31,
	2009				2008
			Annualized				Annualized
	Average		Average		Average		Average
	Balance		Rate/Yield		Balance		Rate/Yield
Assets:
Interest-earning assets:
Loans	$	1,587,336	5.89	%	$	1,779,420	6.88	%
Federal funds sold		181,037	0.23			6,144	1.71
Investments		251,921	3.90			179,066	4.85
Total interest-earning assets		2,020,294	5.14	%		1,964,630	6.68	%
Noninterest - earning assets:
Cash and due from banks		66,698				52,851
Bank premises and equipment, net		14,168				14,509
Customers' acceptances outstanding		2,830				4,156
Accrued interest receivables		7,045				7,651
Other assets		57,020				40,675
Total noninterest-earning assets		147,761				119,842

Total assets	$	2,168,055			$	2,084,472


Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Deposits:
Money market and NOW accounts	$	496,342	1.78	%	$	363,356	2.94	%
Savings		68,926	3.27			53,601	3.42
Time certificate of deposits over $100,000		627,703	2.35			724,384	3.98
Other time certificate of deposits		247,824	3.66			124,741	3.86
		1,440,795	2.42			1,266,082	3.64
Other borrowed funds		163,120	4.28			258,151	3.60
Long-term subordinated debentures		18,557	3.63			18,557	6.40
Total interest-bearing liabilities		1,622,472	2.62			1,542,790	3.67
Noninterest-bearing liabilities:
Demand deposits		318,534				349,902
Total funding liabilities		1,941,006	2.19	%		1,892,692	2.99	%
Other liabilities		17,569				24,020
Shareholders' equity		209,480				167,760
Total liabilities and shareholders' equity	$	2,168,055			$	2,084,472

Net interest income

Cost of deposits			1.99	%			2.85	%
Net interest spread			2.51	%			3.01	%
Net interest margin			3.03	%			3.80	%


CENTER FINANCIAL CORPORATION
SELECTED FINANCIAL DATA (Unaudited)
(Dollars in thousands)	As of the Dates Indicated
	12/31/09			9/30/09			6/30/09			3/31/09			12/31/08
Loans
Real Estate:
Construction	$	21,014		$	21,800		$	37,224		$	53,072		$	61,983
Commercial		1,007,794			1,095,858			1,104,496			1,131,682			1,134,793
Commercial		295,289			290,675			320,005			313,065			334,350
Trade Finance		39,290			43,602			52,000			48,813			63,479
SBA		49,933			43,969			38,401			37,962			37,027
Consumer and other		125,560			97,841			95,417			79,868			88,423
Total Gross Loans		1,538,880			1,593,745			1,647,543			1,664,462			1,720,055

Less:
Allowance for Losses		58,543			63,978			65,197			49,778			38,172
Deferred Loan Fees		331			483			555			1,188			1,359
Discount on SBA Loans Retained		864			931			1,016			1,102			1,184
Total Net Loans and Loans Held for Sale	$	1,479,142		$	1,528,353		$	1,580,775		$	1,612,394		$	1,679,340


As a percentage of total gross loans:
Real estate:
Construction		1.4	%		1.4	%		2.3	%		3.2	%		3.6	%
Commercial		65.5	%		68.8	%		67.0	%		68.0	%		66.0	%
Commercial		19.2	%		18.2	%		19.4	%		18.8	%		19.4	%
Trade finance		2.6	%		2.7	%		3.2	%		2.9	%		3.7	%
SBA		3.2	%		2.8	%		2.3	%		2.3	%		2.2	%
Consumer		8.1	%		6.1	%		5.8	%		4.8	%		5.1	%
Total gross loans		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%




	As of the Dates Indicated
	12/31/09			9/30/09			6/30/09			3/31/09			12/31/08
Deposits
Demand deposits (noninterest-bearing)	$	352,395		$	332,541		$	314,621		$	306,112		$	310,154
Money market accounts and NOW		528,330			503,006			530,410			470,741			447,275
Savings		86,567			77,698			77,958			52,683			52,692
		967,292			913,245			922,989			829,536			810,121
Time deposits
Less than $100,000		256,020			322,141			335,440			321,456			312,136
$100,000 or more		524,358			574,829			596,519			513,076			481,262
Total deposits	$	1,747,670		$	1,810,215		$	1,854,948		$	1,664,068		$	1,603,519


As a percentage of total deposits:
Demand deposits (noninterest-bearing)		20.2	%		18.4	%		17.0	%		18.4	%		19.3	%
Money market accounts and NOW		30.2	%		27.8	%		28.6	%		28.3	%		27.9	%
Savings		5.0	%		4.2	%		4.2	%		3.1	%		3.3	%
		55.4	%		50.4	%		49.8	%		49.8	%		50.5	%
Time deposits
Less than $100,000		14.6	%		17.8	%		18.1	%		19.3	%		19.5	%
$100,000 or more		30.0	%		31.8	%		32.1	%		30.9	%		30.0	%
Total deposits		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%


CENTER FINANCIAL CORPORATION
SELECTED FINANCIAL DATA (Unaudited)
(Dollars in thousands)
	12/31/2009			9/30/2009			12/31/2008
Nonperforming loans:
Construction Real Estate	$	8,441		$	5,309		$	1,951
Commercial Real Estate		42,678			25,167			13,128
Commercial		8,290			8,236			2,272
Consumer		339			909			369
Trade Finance		1,498			1,196			1,196
SBA		2,207			2,185			1,538

Total nonperforming loans		63,453			43,002			20,454
Other real estate owned		4,278			4,813			-

Total nonperforming assets		67,731			47,815			20,454

Guaranteed portion of nonperforming SBA loans		2,816			3,134			2,110
Total nonperforming assets, net of SBA guarantee	$	64,915		$	44,681		$	18,344
Performing TDRs not included above	$	4,414		$	4,392		$	-

Nonperforming loans as a percent of total gross loans		4.12	%		2.70	%		1.19	%
Nonperforming assets as a percent of total loans and other real estate owned		4.39			2.99			1.19

Delinquent loans 30-89 days past due	$	13,439		$	15,638		$	16,737
Total nonperforming loans		63,453			43,002			20,454
Total delinquent loans	$	76,892		$	58,640		$	37,191


	Year			Nine Months			Year
	Ended			Ended			Ended
	12/31/2009			9/30/2009			12/31/2009
Balances
Average total loans outstanding during the period	$	1,637,703		$	1,661,384		$	1,800,972
Total loans outstanding at end of period^*	$	1,537,685		$	1,592,331		$	1,717,511
^* Net of deferred loan fees and discount on SBA loans sold
Allowance for Loan Losses:
Balance at beginning of period	$	38,172		$	38,172		$	20,477
Charge-offs:
Construction Real Estate		6,844			5,078			402
Commercial Real Estate		23,742			7,173			319
Commercial		23,795			15,305			4,403
Consumer		1,599			1,298			2,040
SBA		941			786			581
Trade Finance		911			-			1,144
Total charge-offs		57,832			29,640			8,889
Recoveries
Real estate		-			-			-
Commercial		269			253			128
Consumer		394			299			131
SBA		67			46			135
Trade Finance		1			1			12
Total recoveries		731			599			406
Net loan charge-offs		57,101			29,041			8,483
Provision for loan losses		77,472			54,847			26,178
Balance at end of period	$	58,543		$	63,978		$	38,172

Ratios:
Net loan charge-offs to average loans		3.49	%		2.33	%		0.47	%
Provision for loan losses to average total loans		4.73			4.40			1.45
Allowance for loan losses to gross loans at end of period		3.81			4.01			2.22
Allowance for loan losses to total nonperforming loans		96.4			148.8			186.6
Net loan charge-offs to allowance for loan losses at end of period		97.54			60.52			22.22
Net loan charge-offs to provision for loan losses		73.71			52.95			32.41


CENTER FINANCIAL CORPORATION
SELECTED FINANCIAL DATA (Unaudited)


	Three Months Ended									Twelve Months Ended
Performance ratios:	12/31/2009			9/30/2009			12/31/2008			12/31/2009			12/31/2008
(Loss) return on average assets	(4.44	)	%	(0.45	)	%	(1.20	)	%	(1.96	)	%	0.01	%
(Loss) return on average equity	(48.45	)		(5.01	)		(13.53	)		(20.29	)		0.13
Efficiency ratio	66.95			64.53			53.25			61.26			69.09
Net loans to total deposits at period end	84.64			84.43			104.73			84.64			104.73
Net loans to total assets at period end	67.45			69.41			81.66			67.45			81.66

Capital ratios:
Leverage capital ratio
Consolidated Company	12.40		%	9.45		%	11.28		%
Center Bank	12.00			9.03			10.64
Tier 1 risk-based capital ratio
Consolidated Company	16.38			12.14			12.58
Center Bank	15.83			11.58			11.87
Total risk-based capital ratio
Consolidated Company	17.66			13.42			13.84
Center Bank	17.11			12.86			13.13

CONTACT:
Center Financial Corporation
Lonny Robinson, Chief Financial Officer
213-401-2311
lonnyr@centerbank.com
or
PondelWilkinson Inc.
Angie Yang, Investor Relations
310-279-5967
ayang@pondel.com

California	000-50050	52-2380548
(State of Incorporation)	(Commission File Number)	(IRS Employer Identification Number)

(c)	Exhibits

99.1	Press release concerning results of operations and financial condition for the fourth quarter and full year ended and as of December 31, 2009.

		CENTER FINANCIAL CORPORATION

Dated:	January 28, 2010	By:	/s/ Lonny D. Robinson
		Name:	Lonny D. Robinson
		Title:	Executive Vice President, Chief Financial Officer


CENTER FINANCIAL CORPORATION
RECONCILIATION OF GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES (Unaudited)
(Dollars in thousands, except per share data)

	12/31/2009			12/31/2008

Total shareholders' equity	$	256,058		$	214,567
Less : Preferred stock		(123,171	)		(52,959	)
Common stock warrant		(1,026	)		(2,051	)
Goodwill and intangible assets, net		-			(1,466	)
Tangible common equity	$	131,862		$	158,091

Total assets	$	2,192,800		$	2,056,609
Less : Goodwill and intangible assets, net		-			(1,466	)
Tangible assets	$	2,192,800		$	2,055,143

Common shares outstanding		20,160,726			16,789,080

Tangible common equity per common share	$	6.54		$	9.42
Tangible common equity to tangible assets		6.01	%		7.69	%