Center Financial Reports $7.5 Million Net Income, $0.17 EPS for 2010 Second Quarter

-- Profitable Core Operations, $5.9 Million Bargain Purchase Gain Associated with FDIC-Assisted Transaction and $1.2 Million Gain on Sale of Loans Contribute to Strong Earnings for 2Q 2010 --

LOS ANGELES--(BUSINESS WIRE)--July 29, 2010--Following its return to profitable operations in the 2010 first quarter, Center Financial Corporation (NASDAQ: CLFC), today reported net income of $7.5 million, equal to $0.17 per diluted common share, for its second quarter ended June 30, 2010, in contrast with a net loss of $12.8 million, or $0.81 per share, a year earlier.

“We believe the collective actions taken in 2009 firmly positioned the company to achieve the return to profitable operations for the six months ended 2010 notwithstanding what continues to be a challenging operating environment, particularly related to commercial real estate,” said Jae Whan (J.W.) Yoo, president and chief executive officer. “The company’s strengthened capital standing enabled us to complete an FDIC-assisted transaction in the second quarter, immediately contributing to earnings by way of a bargain purchase gain, while at the same time increasing the earnings power going forward. We continued to proactively monitor the portfolio to mitigate potential losses and negotiated $55 million in note sales during the quarter at an average 6.7% discount to the principal amount. Overall, credit metrics are trending positively with a considerable reduction in delinquent loans, especially in early stage delinquencies. However, we are standing on the sidelines with cautious optimism and expect to maintain elevated reserve levels until we see directionally consistent data that point to a more stabilizing economic recovery.”

On April 16, 2010, following the closure of Oakland, California-based Innovative Bank by the California Department of Financial Institutions, Center Bank acquired the banking operations of Innovative Bank from the Federal Deposit Insurance Corporation (FDIC), under a whole bank purchase and assumption agreement with loss sharing. After purchase accounting fair value adjustments, Center Bank acquired total assets of $219.8 million, including $126.2 million of loans for which the FDIC will bear 80% of the losses. Center Bank also assumed liabilities of $233.9 million, including $209.3 million in deposits. The transaction added four branches and marked the company’s entry into the Northern California market. The company said systems integration of the former Innovative Bank branches is on schedule to be completed during the third quarter.

The company recorded a bargain purchase gain on the transaction of $5.9 million, net of an equity appreciation instrument cost of $1.4 million. The acquisition was immediately accretive to operating results, contributing net interest income of $1.9 million, noninterest income of $286,000, noninterest expense of $777,000 and pre-tax earnings of $1.4 million for the second quarter of 2010. These operating results exclude the bargain purchase gain and are not indicative of future operating results. Center Financial incurred merger-related expenses in connection with the acquisition of Innovative Bank of $129,000.

Loans acquired in the FDIC-assisted transaction are subject to a loss sharing agreement and are referred to as “covered loans.” Covered loans are reported separately in the consolidated statements of financial condition.

Non-covered nonperforming loans at June 30, 2010 declined sequentially from March 31 levels to $67.5 million, but was up when compared with $63.5 million at December 31, 2009. Total non-covered nonperforming assets at the end of the 2010 second quarter, including $2.8 million in other real estate owned (OREO), equaled $70.3 million, or $67.0 million net of guarantees. This compares with total non-covered nonperforming assets at March 31, 2010 of $73.4 million, or $68.7 million net of guarantees, including $3.0 million in OREO. The largest contributing factor to the sequential decline in non-covered nonperforming loans was the $55.0 million in note sales negotiated during the 2010 second quarter. At December 31, 2009, total non-covered nonperforming assets equaled $67.7 million, or $64.9 million net of guarantees, including $4.3 million in OREO. Total non-covered nonperforming assets represented 4.76% of gross loans and OREO at June 30, 2010, compared with 4.81% at March 31, 2010 and 4.39% at December 31, 2009.

Delinquent non-covered loans 30 to 89 days past due declined to $11.6 million at June 30, 2010 from $28.8 million at March 31, 2010 and was lower when compared with $13.4 million at December 31, 2009. Performing troubled debt restructurings (TDRs) that are not accounted for in non-covered nonaccrual or delinquent loans equaled $17.7 million at June 30, 2010, compared with $9.8 million at March 31, 2010 and $4.4 million at December 31, 2009.

Net charge-offs during the 2010 second quarter equaled $7.6 million, including total recoveries of $2.9 million. The company attributes the strong recoveries to its early actions to resolve potential problem loans. In comparison, net charge-offs totaled $4.5 million in the 2010 first quarter and $28.1 million in the 2009 fourth quarter. As a percentage of average loans on an annualized basis, net charge-offs year-to-date equaled 1.61%.

Center Financial recorded a provision for loan losses of $5.0 million for the 2010 second quarter. The allowance for loan losses declined to $58.4 million and was relatively stable at 3.97% of gross non-covered loans. The company’s allowance for loan losses at March 30, 2010 was $61.0 million, equal to 4.01% of gross loans and totaled $58.5 million, representing 3.81% of gross loans, at December 31, 2009.

Non-covered loans at June 30, 2010 declined to $1.47 billion from $1.52 billion at March 31, 2010 and $1.54 billion at year-end 2009, primarily reflecting decreases in the commercial real estate portfolio. Covered loans at June 30, 2010 totaled $122.4 million. Total loans at June 30, 2010 amounted to $1.60 billion.

Total deposits at June 30, 2010 rose to $1.80 billion from $1.63 billion at March 31, 2010 and $1.75 billion at December 31, 2009. The company attributed the sequential increase to deposits assumed in the Innovative Bank transaction and organic growth in its noninterest-bearing and money market accounts, partially offset by the strategic run off of higher rate retail and brokered deposits. As of June 30, 2010, noninterest-bearing demand deposits rose 10% from March 31, 2010 levels to $397.6 million, and represented 22.0% of total deposits. The company’s loan-to-deposit ratio equaled 85.4% at June 30, 2010, including the Innovative Bank transaction. In comparison, the company’s loan-to-deposit ratio was 89.8% at March 31, 2010 and 84.6% at December 31, 2009.

The average cost of interest-bearing deposits continued to trend downwards, decreasing to 1.52% for the three months ended June 30, 2010 from 1.65% for the preceding first quarter and from 1.97% for the 2009 fourth quarter. Total cost of deposits also continued to decline at 1.19% for the 2010 second quarter, compared with 1.31% for the 2010 first quarter and 1.60% for the 2009 fourth quarter.

Total assets at June 30, 2010 increased to $2.28 billion from $2.19 billion at year-end 2009, largely reflecting the FDIC-assisted acquisition of former Innovative Bank, offset by reductions in the company’s investment securities portfolio, predominantly due to securities sales effected in the 2010 first quarter. Average interest-earning assets for the 2010 second quarter equaled $1.98 billion, compared with $1.95 billion for the 2010 first quarter and $2.01 billion for the 2009 fourth quarter.

Total shareholders’ equity at June 30, 2010 increased to $265.2 million from $256.1 million at December 31, 2009. As of June 30, 2010, the company’s tangible common equity as a percentage of tangible assets, which is a non-GAAP financial measure, decreased to 9.25% from 9.75% at March 31, 2010. At December 31, 2009, tangible common equity as a percentage of tangible assets was 6.01%. Center Financial further strengthened its capital position as of June 30, 2010 from year-end 2009. Total risk-based capital ratio increased to approximately 18.85%, Tier 1 risk-based capital ratio advanced to approximately 17.59% and Tier 1 leverage ratio expanded to approximately 13.55%.

Net interest income before provision for loan losses totaled $17.5 million for the 2010 second quarter. The FDIC-assisted Innovative Bank transaction contributed to higher levels of interest income on loans, as well as higher interest expense on borrowed funds. Net interest income before provision for loan losses totaled $16.4 million for the preceding three months ended March 31, 2010 and $15.3 million in the year-ago second quarter. The average yield on loans for the 2010 second quarter rose to 5.72% from 5.68% for the preceding first quarter, but was down when compared with 6.12% for the 2009 second quarter.

The company’s net interest margin (NIM) for the 2010 second quarter expanded 12 basis points to 3.53% from 3.41% in the immediately preceding first quarter, benefiting from continued reductions in the cost of deposits, partially offset by the reversal of $894,000 in interest income from non-accruing loans recognized during the second quarter. For the year-ago second quarter, the company’s NIM was 2.96%.

Noninterest income of $11.1 million for the 2010 second quarter reflects a sharp increase from comparable periods due to a $5.9 million bargain purchase gain and a gain on the sale of loans of $1.2 million. For the preceding 2010 first quarter, noninterest income totaled $5.7 million and included a $2.2 million gain on sale of securities available for sale. Noninterest income for the prior-year second quarter amounted to $3.5 million, for which there were no comparable gains.

Total noninterest expense for the 2010 second quarter was $12.3 million, compared with $10.9 million in the immediately preceding 2010 first quarter and $11.7 million in the prior-year second quarter. The increase primarily reflects additional staff and operating expenses associated with the Innovative Bank transaction. The company continues to focus on managing costs and improving its operating efficiencies. The company’s 2010 second quarter efficiency ratio benefited from the $5.9 million bargain purchase gain and improved to 43.01% from 49.12% for the 2010 first quarter and from 62.48% in the year-ago second quarter.

For the 2010 second quarter, Center Financial posted net income of $7.5 million, or $0.17 per diluted common share, after a loan loss provision of $5.0 million and an income tax provision of $3.8 million. This compares with net income of $2.8 million, $0.10 per diluted common share, in the immediately preceding first quarter, after a loan loss provision of $7.0 million and an income tax provision of $1.5 million. In the 2009 second quarter, the company sustained a net loss of $12.8 million, or $0.81 per common share, after a loan loss provision of $29.8 million and an income tax benefit of $10.0 million.

For the 2010 second quarter, Center Financial posted a return on average assets (ROAA) of 1.38% and a return on average equity (ROAE) of 11.43%. This compares with an ROAA of 0.53% and an ROAE of 4.34% for the 2010 first quarter. For the year-ago second quarter, the company reported a loss on average assets equal to 2.32% and a loss on average equity of 23.95%.

“Looking ahead to the second half of 2010 and with two profitable quarters under our belt, we are more confident that we may be ahead of the credit cycle and anticipate being able to sustain profitable operations for the year,” Yoo said. “While keeping a close eye on asset quality, our board and management team expect to focus more of our attention on strategic growth opportunities, both organic and acquisitive, and enhancing the overall earnings capacity of Center Bank for the longer term.”

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 Thursday, July 29, 2010 at 9 a.m. PDT (12 noon EDT) to review financial results for its 2010 second quarter. The institutional investment community is invited to participate in the call by dialing 866-831-6234 (domestic) or 617-213-8854 (international) and entering passcode 19320092. 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 Thursday, August 5, 2010 by dialing 888-286-8010 (domestic) or 617-801-6888 (international) and entering replay passcode 81983786.

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 $2.28 billion at June 30, 2010. Headquartered in Los Angeles, Center Bank operates a total of 23 full-service branches and one loan production office. The company has 17 full-service branches located throughout Southern California and three branches in Northern 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, as amended, for the fiscal year ended December 31, 2009 (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; the successful integration and operations of the FDIC-assisted acquisition; the company’s ability to sustain profitable operations; the company’s ability to capitalize on strategic growth opportunities; the company’s ability to enhance its earnings capacity; 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)
	6/30/10		12/31/09
ASSETS
Cash and due from banks	$	41,977	$	34,294
Federal funds sold		236,560		145,810
Interest-bearing deposits in other banks		50,458		52,698
Cash and cash equivalents		328,995		232,802

Securities available for sale, at fair value		275,844		370,427
Federal Home Loan Bank and Pacific Coast Bankers Bank stock, at cost		16,266		15,673
Non-covered loans, net of allowance for loan losses of $58,435 as of June 30, 2010 and $58,543 as of December 31, 2009		1,388,127		1,455,824
Non-covered loans held for sale, at the lower of cost or fair value		27,084		23,318
Covered loans		122,362		-
Premises and equipment, net		12,763		13,368
FDIC loss share receivable		25,300		-
Core deposit intangibles, net		490		-
Customers' liability on acceptances		2,504		2,341
Non-covered other real estate owned		2,778		4,278
Covered other real estate owned		1,560		-
Accrued interest receivable		5,707		6,879
Deferred income taxes, net		10,976		11,551
Investments in affordable housing partnerships		10,888		11,522
Cash surrender value of life insurance		12,590		12,392
Income tax receivable		15,214		16,140
Prepaid regulatory assessment fees		9,624		11,483
Other assets		6,071		4,802
Total	$	2,275,143	$	2,192,800

LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Deposits:
Noninterest-bearing	$	397,598	$	352,395
Interest-bearing		1,402,397		1,395,276
Total deposits		1,799,995		1,747,671

Acceptances outstanding		2,504		2,341
Accrued interest payable		5,379		5,803
Other borrowed funds		171,823		148,443
Long-term subordinated debentures		18,557		18,557
Accrued expenses and other liabilities		11,721		13,927
Total liabilities		2,009,979		1,936,742
Commitments and Contingencies		-		-

Shareholders' Equity
Preferred stock, no par value; 10,000,000 shares authorized; issued and outstanding, 55,000 shares and 128,500 shares as of June 30, 2010 and December 31, 2009, respectively
Series A, cumulative, issued and outstanding, 55,000 shares as of June 30, 2010 and December 31, 2009		53,286		53,171
Series B, non-cumulative, convertible, issued and outstanding, none and 73,500 shares as of June 30, 2010 and December 31, 2009, respectively		-		70,000

Common stock, no par value; 100,000,000 and 40,000,000 shares authorized; issued and outstanding, 39,895,111 and 20,160,726 shares (including 60,809 shares and 57,309 of unvested restricted stock) as of June 30, 2010 and December 31, 2009, respectively		158,508		88,060


Retained earnings		50,092		41,314
Accumulated other comprehensive income, net of tax		3,278		3,513
Total shareholders' equity		265,164		256,058
Total	$	2,275,143	$	2,192,800

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

	Three Months Ended									Six Months Ended
	6/30/10			3/31/10			6/30/09			6/30/10			6/30/09
Interest and Dividend Income:
Interest and fees on loans	$	21,388		$	20,628		$	24,742		$	42,016		$	49,053
Interest on federal funds sold		102			60			114			162			149
Interest on investment securities		2,859			2,944			2,343			5,803			4,634
Total interest and dividend income		24,349			23,632			27,199			47,981			53,836

Interest Expense:
Interest on deposits		5,060			5,461			9,913			10,521			18,637
Interest on borrowed funds		1,671			1,603			1,782			3,274			3,600
Interest expense on trust preferred securities		143			140			181			283			373
Total interest expense		6,874			7,204			11,876			14,078			22,610

Net interest income before provision for loan losses		17,475			16,428			15,323			33,903			31,226
Provision for loan losses		5,000			7,000			29,835			12,000			44,287
Net interest income (loss) after provision for loan losses		12,475			9,428			(14,512	)		21,903			(13,061	)

Noninterest Income:
Customer service fees		2,086			2,031			2,022			4,117			3,996
Fee income from trade finance transactions		720			658			587			1,378			1,136
Wire transfer fees		331			281			279			612			546
Gain on business acquisition		5,900			-			-			5,900			-
Gain on sale of loans		1,203			-			-			1,203			-
Net gain (loss) on sale of securities available for sale		-			2,209			-			2,209			(49	)
Loan service fees		427			160			185			587			459
Other income		391			350			401			741			1,124
Total noninterest income		11,058			5,689			3,474			16,747			7,212

Noninterest Expense:
Salaries and employee benefits		4,647			4,340			4,684			8,987			8,973
Occupancy		1,437			1,195			1,248			2,632			2,430
Furniture, fixtures, and equipment		640			507			517			1,147			1,045
Data processing		654			464			522			1,118			1,117
Legal fees		279			306			408			585			650
Accounting and other professional fees		546			315			352			861			762
Business promotion and advertising		415			257			344			672			682
Supplies and communications		396			264			304			660			728
Security service		285			235			261			520			506
Regulatory assessment		1,037			986			1,642			2,023			2,235
Merger related expenses		129			-			-			129			-
OREO related expenses		400			959			147			1,359			154
Other operating expenses		1,408			1,035			1,316			2,443			2,611
Total noninterest expense		12,273			10,863			11,745			23,136			21,893

Income (loss) before income tax provision (benefit)		11,260			4,254			(22,783	)		15,514			(27,742	)
Income tax provision (benefit)		3,758			1,487			(9,996	)		5,245			(12,229	)

Net income (loss)		7,502			2,767			(12,787	)		10,269			(15,513	)

Preferred stock dividends and accretion of preferred stock discount		(746	)		(744	)		(739	)		(1,490	)		(1,470	)

Net income (loss) available to common shareholders		6,756			2,023			(13,526	)		8,779			(16,983	)

Other comprehensive income (loss)		1,013			(1,248	)		2,270			(235	)		1,226

Comprehensive income (loss)	$	8,515		$	1,519		$	(10,517	)	$	10,034		$	(14,287	)

Earnings (loss) per common share:
Basic	$	0.17		$	0.10		$	(0.81	)	$	0.29		$	(1.01	)
Diluted	$	0.17		$	0.10		$	(0.81	)	$	0.29		$	(1.01	)
Average common shares outstanding:
Basic		39,895,181			21,286,403			16,789,080			30,642,197			16,789,080
Diluted		39,908,346			21,289,829			16,789,080			30,644,291			16,789,080

CENTER FINANCIAL CORPORATION
SELECTED FINANCIAL DATA (Unaudited)
(Dollars in thousands)				Three Months Ended
				6/30/10				3/31/10				6/30/09
						Annualized				Annualized				Annualized
				Average		Average		Average		Average		Average		Average
				Balance		Rate/Yield		Balance		Rate/Yield		Balance		Rate/Yield
Assets:
	Interest-earning assets:
		Loans		$	1,498,956	5.72	%	$	1,474,122	5.68	%	$	1,622,366	6.12	%
		Federal funds sold			185,860	0.22			103,624	0.23			227,678	0.20
		Investments			298,392	3.84			376,699	3.17			227,014	4.14
			Total interest-earning assets		1,983,208	4.92			1,954,445	4.90			2,077,058	5.25
	Noninterest - earning assets:
		Cash and due from banks			89,749				84,983				53,934
		Bank premises and equipment, net			12,845				13,231				14,382
		Customers' acceptances outstanding			2,353				2,193				3,073
		Accrued interest receivables			6,165				6,437				7,037
		Other assets			84,064				70,425				53,653
			Total noninterest-earning assets		195,176				177,269				132,079

			Total assets	$	2,178,384			$	2,131,714			$	2,209,137

Liabilities and Shareholders' Equity:
	Interest-bearing liabilities:
		Deposits:
		Money market and NOW accounts		$	475,608	1.15	%	$	492,797	1.07	%	$	492,730	2.09	%
		Savings			92,390	2.69			91,507	2.71			63,569	3.48
		Time certificates of deposit over $100,000			499,851	1.46			522,126	1.83			582,390	2.91
		Other time certificates of deposit			265,746	1.91			234,163	2.06			344,761	2.99
					1,333,595	1.52			1,340,593	1.65			1,483,450	2.68
		Other borrowed funds			167,541	4.00			148,239	4.39			168,147	4.25
		Long-term subordinated debentures			18,557	3.09			18,557	3.06			18,557	3.91
			Total interest-bearing liabilities		1,519,693	1.81			1,507,389	1.94			1,670,154	2.85
	Noninterest-bearing liabilities:
	Demand deposits				379,059				350,135				304,931
			Total funding liabilities		1,898,752	1.45	%		1,857,524	1.57	%		1,975,085	2.41	%
	Other liabilities				18,488				15,742				19,937
			Total noninterest-bearing liabilities		397,547				365,877				324,868
	Shareholders' equity				261,144				258,448				214,115
			Total liabilities and shareholders' equity	$	2,178,384			$	2,131,714			$	2,209,137

Net interest income
	Cost of deposits					1.19	%			1.31	%			2.22	%
	Net interest spread					3.11	%			2.97	%			2.40	%
	Net interest margin					3.53	%			3.41	%			2.96	%

CENTER FINANCIAL CORPORATION
SELECTED FINANCIAL DATA (Unaudited)
(Dollars in thousands)
				Six Months Ended
				6/30/10				6/30/09
						Annualized				Annualized
				Average		Average		Average		Average
				Balance		Rate/Yield		Balance		Rate/Yield
Assets:
	Interest-earning assets:
		Loans		$	1,508,357	5.62	%	$	1,645,491	6.01	%
		Federal funds sold			191,185	0.17			142,610	0.21
		Investments			339,106	3.45			216,157	4.32
			Total interest-earning assets		2,038,648	4.75			2,004,258	5.42
	Noninterest - earning assets:
		Cash and due from banks			89,714				47,584
		Bank premises and equipment, net			13,066				14,565
		Customers' acceptances outstanding			2,423				3,460
		Accrued interest receivables			6,293				6,946
		Other assets			83,829				49,818
			Total noninterest-earning assets		195,325				122,373

			Total assets	$	2,233,973			$	2,126,631

Liabilities and Shareholders' Equity:
	Interest-bearing liabilities:
		Deposits:
		Money market and NOW accounts		$	516,774	1.04	%	$	472,579	2.05	%
		Savings			90,527	2.74			57,490	3.52
		Time certificates of deposit over $100,000			511,735	1.64			533,662	2.98
		Other time certificates of deposit			279,801	1.77			326,789	3.05
					1,398,837	1.52			1,390,520	2.70
		Other borrowed funds			160,133	4.12			172,481	4.21
		Long-term subordinated debentures			18,557	3.08			18,557	4.05
			Total interest-bearing liabilities		1,577,527	1.80			1,581,558	2.88
	Noninterest-bearing liabilities:
	Demand deposits				374,997				305,308
			Total funding liabilities		1,952,524	1.45	%		1,886,866	2.42	%
	Other liabilities				20,838				20,864
			Total noninterest-bearing liabilities		395,835				326,172
	Shareholders' equity				260,611				218,901
			Total liabilities and shareholders' equity	$	2,233,973			$	2,126,631

Net interest income
	Cost of deposits					1.20	%			2.22	%
	Net interest spread					2.95	%			2.53	%
	Net interest margin					3.35	%			3.14	%

CENTER FINANCIAL CORPORATION
SELECTED FINANCIAL DATA (Unaudited)
(Dollars in thousands)
			As of the Dates Indicated
			6/30/10			3/31/10			12/31/09			9/30/09			6/30/09
Deposits
Demand deposits (noninterest-bearing)			$	397,598		$	360,520		$	352,395		$	332,541		$	314,621
Money market accounts and NOW				505,217			445,999			528,331			503,006			530,410
Savings				94,486			90,294			86,567			77,698			77,958
				997,301			896,813			967,293			913,245			922,989
Time deposits
	Less than $100,000			303,582			227,909			256,020			322,141			335,440
	$100,000 or more			499,112			500,590			524,358			574,829			596,519
		Total deposits	$	1,799,995		$	1,625,312		$	1,747,671		$	1,810,215		$	1,854,948


As a percentage of total deposits:
	Demand deposits (noninterest-bearing)			22.1	%		22.2	%		20.2	%		18.4	%		17.0	%
	Money market accounts and NOW			28.1	%		27.4	%		30.2	%		27.8	%		28.6	%
	Savings			5.2	%		5.6	%		5.0	%		4.2	%		4.2	%
				55.4	%		55.2	%		55.4	%		50.4	%		49.8	%
	Time deposits
	Less than $100,000			16.9	%		14.0	%		14.6	%		17.8	%		18.1	%
	$100,000 or more			27.7	%		30.8	%		30.0	%		31.8	%		32.1	%
		Total deposits		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

CENTER FINANCIAL CORPORATION
SELECTED FINANCIAL DATA (Unaudited)
(Dollars in thousands)
			As of the Dates Indicated
			6/30/10			3/31/10			12/31/09			9/30/09			6/30/09
Non-covered Loans
	Real Estate:
		Construction	$	15,052		$	16,620		$	21,014		$	21,800		$	37,224
		Commercial		937,792			985,479			1,007,794			1,095,858			1,104,496
	Commercial			296,195			299,738			295,289			290,675			320,005
	Trade Finance			53,342			43,370			39,290			43,602			52,000
	SBA			60,531			65,460			49,933			43,969			38,401
	Consumer and other			111,919			111,772			125,560			97,841			95,417
		Non-covered Loans		1,474,831			1,522,439			1,538,880			1,593,745			1,647,543

	Less:
		Allowance for loan losses		58,435			61,011			58,543			63,978			65,197
		Deferred loan fees		188			290			331			483			555
		Discount on SBA loans retained		997			799			864			931			1,016
		Net Non-covered Loans	$	1,415,211		$	1,460,339		$	1,479,142		$	1,528,353		$	1,580,775


	As a percentage of non-covered loans:
	Real Estate:
		Construction		1.0	%		1.1	%		1.4	%		1.4	%		2.3	%
		Commercial		63.6	%		64.7	%		65.5	%		68.8	%		67.0	%
	Commercial			20.1	%		19.7	%		19.2	%		18.2	%		19.4	%
	Trade Finance			3.6	%		2.8	%		2.6	%		2.7	%		3.2	%
	SBA			4.1	%		4.3	%		3.2	%		2.8	%		2.3	%
	Consumer and other			7.6	%		7.4	%		8.1	%		6.1	%		5.8	%
		Non-covered Loans		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%


Covered Loans			6/30/10
			Amount			%
	Real Estate:
		Construction	$	-			0.0	%
		Commercial		76,280			62.3	%
	Commercial			12,388			10.1	%
	Trade Finance			-			0.0	%
	SBA			32,438			26.5	%
	Consumer and other			1,256			1.0	%
		Covered Loans	$	122,362			100.0	%


Total Loans
			6/30/10
			Amount			%
	Real Estate:
		Construction	$	15,052			0.9	%
		Commercial		1,014,072			63.5	%
	Commercial			308,583			19.3	%
	Trade Finance			53,342			3.3	%
	SBA			92,969			5.8	%
	Consumer and other			113,175			7.1	%
		Total Loans	$	1,597,193			100.0	%

CENTER FINANCIAL CORPORATION
SELECTED FINANCIAL DATA (Unaudited)
(Dollars in thousands)
	6/30/10			12/31/09			6/30/09
Non-covered nonperforming loans:
Construction Real Estate	$	4,540		$	8,441		$	16,973
Commercial Real Estate		51,057			42,678			4,516
Commercial		7,445			8,290			13,577
Consumer		281			339			889
Trade Finance		1,196			1,498			1,196
SBA		2,972			2,207			1,774
Total non-covered nonperforming loans		67,491			63,453			38,925
Other real estate owned		2,778			4,278			4,567
Non-covered nonperforming assets		70,269			67,731			43,492

Guaranteed portion of nonperforming loans		3,250			2,816			2,448
Total non-covered nonperforming assets, net of guarantees	$	67,019		$	64,915		$	41,044
Performing TDR's not included above	$	17,709		$	4,414		$	1,335

Non-covered nonperforming loans to non-covered loans		4.58	%		4.12	%		2.36	%
Non-covered nonperforming assets to non-covered loans and other real estate owned		4.76			4.39			2.63

Delinquent loans 30-89 days past due	$	11,582		$	13,439		$	29,740
Total nonperforming loans		67,491			63,453			38,925
Total delinquent non-covered loans	$	79,073		$	76,892		$	68,665

CENTER FINANCIAL CORPORATION
SELECTED FINANCIAL DATA (Unaudited)
(Dollars in thousands)
		Six Months			Three Months			Year			Six Months
		Ended and as of			Ended and as of			Ended and as of			Ended and as of
		6/30/10			3/31/10			12/31/09			6/30/09
Balances
	Average total loans outstanding during the period	$	1,517,404		$	1,534,369		$	1,637,703		$	1,682,918
	Total loans outstanding at end of period^*	$	1,473,646		$	1,521,350		$	1,537,685		$	1,645,972
	* Net of deferred loan fees and discount on SBA loans sold
Allowance for Loan Losses:
	Balance at beginning of period	$	58,543		$	58,543		$	38,172		$	38,172
	Charge-offs:
	Construction Real Estate		-			-			6,844			2,727
	Commercial Real Estate		10,040			3,659			23,742			4,448
	Commercial		3,747			532			23,795			8,780
	Consumer		238			190			1,599			1,104
	SBA		872			331			941			417
	Trade Finance		251			-			911			-
	Total charge-offs		15,148			4,712			57,832			17,476
	Recoveries
	Real estate		105			43			-			-
	Commercial		2,789			53			269			43
	Consumer		66			44			394			140
	SBA		80			40			67			30
	Trade Finance		-			-			1			1
	Total recoveries		3,040			180			731			214
	Net loan charge-offs		12,108			4,532			57,101			17,262
	Provision for loan losses		12,000			7,000			77,472			44,287
	Balance at end of period	$	58,435		$	61,011		$	58,543		$	65,197

Ratios:
	Net loan charge-offs to average loans		1.61	%		1.20	%		3.49	%		1.03
	Provision for loan losses to average total loans		1.59			1.85			4.73			2.63
	Allowance for loan losses to gross loans at end of period		3.97			4.01			3.81			3.96
	Allowance for loan losses to total non-covered nonperforming loans		86.6			86.6			92.3			167.5
	Net loan charge-offs to allowance for loan losses at end of period		41.78			30.13			97.54			26.48
	Net loan charge-offs to provision for loan losses		100.90			64.74			73.71			38.98

		Three Months Ended						Six Months Ended
Performance ratios:		6/30/10		3/31/10		6/30/09		6/30/10		6/30/09
	Return (loss) on average assets	1.38	%	0.53	%	(2.32)	%	0.93	%	(1.47)	%
	Return (loss) on average equity	11.43		4.34		(23.95)		7.88		(14.29)
	Efficiency ratio	43.01		49.12		62.48		45.68		56.96
	Net loans to total deposits at period end	85.38		89.85		85.22		85.38		85.22
	Net loans to total assets at period end	67.49		70.15		69.71		67.49		69.71

Capital ratios:
	Leverage capital ratio	(estimate)
	Consolidated Company	13.55	%	12.82	%	9.38	%
	Center Bank	13.39		12.46		8.88
	Tier 1 risk-based capital ratio
	Consolidated Company	17.59		16.94		11.59
	Center Bank	17.40		16.45		10.93
	Total risk-based capital ratio
	Consolidated Company	18.85		18.23		12.87
	Center Bank	18.66		17.73		12.21

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

	6/30/10				12/31/09

Total shareholders' equity	$	265,164			$	256,058
Less:
Preferred stock		(53,286	)			(123,171	)
Common stock warrant		(1,026	)			(1,026	)
Intangible assets, net		(490	)			-
Tangible common equity	$	210,362			$	131,861

Total assets	$	2,275,143			$	2,192,800
Less : Intangible assets, net		-				-
Tangible assets	$	2,275,143			$	2,192,800

Common shares outstanding		39,895,111				20,160,726

Tangible common equity per common share	$	5.27			$	6.54
Tangible common equity to tangible assets		9.25		%		6.01		%

CONTACT:
Center Financial Corporation
Angie Yang
SVP, Investor Relations
213-251-2219
angiey@centerbank.com

California	52-2380548
(State of Incorporation)	(IRS Employer Identification No)

Date:	July 29, 2010	/s/ Douglas J. Goddard
		Center Financial Corporation
		Interim Chief Financial Officer

Exhibit No.		Description
99.1		Press release concerning results of operations and financial condition for the three and six months ended and as of June 30, 2010.