8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported) April 27, 2006

Center Financial Corporation

(Exact name of Registrant as specified in its charter)

Commission file number: 000-50050

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

3435 Wilshire Boulevard, Suite 700, Los Angeles, California 90010

(Address of principal executive offices)

(213) 251-2222

(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the follow provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Center Financial Corporation

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Item 2.02. Results of Operations and Financial Condition

On April 27, 2006 Center Financial Corporation issued a press release concerning its results of operations and financial condition as of and for the three months ended March 31, 2006. A copy of the press release is attached hereto as Exhibit 99.1. The information in this report (including Exhibit 99.1) is being furnished pursuant to Item 2.02 and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act.

Item 9.01. Financial Statements and Exhibits

(c) Exhibits

99.1 Press release concerning earnings for March 31, 2006 calendar quarter.

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Center Financial Corporation

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SIGNATURES

Pursuant to the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized:

Date: April 27, 2006	/s/ Patrick Hartman
	Center Financial Corporation Patrick Hartman Chief Financial Officer

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Center Financial Corporation

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EXHIBIT INDEX

Exhibit No.	Description	Page
99.1	Press release concerning results of operations and financial conditions as of and for the calendar quarter ended March 31, 2006	5

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EX-99.1

Center Financial Corporation

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EXHIBIT 99.1

CENTER FINANCIAL REPORTS 2006 FIRST QUARTER RESULTS

LOS ANGELES, CA – April 27, 2006 – Center Financial Corporation (NASDAQ NM: CLFC), the holding company of Center Bank, today reported financial results for the three months ended March 31, 2006.

2006 first quarter highlights, compared with a year ago, include:

• Net income increased 7% to $5.8 million, equal to $0.35 per diluted share

• Net loans increased 19% to $1.2 billion

• Total deposits grew 25% to $1.5 billion

• Total assets increased 22% to $1.7 billion

• Return on average assets and return on average equity equals 1.41% and 20.16%, respectively

• Efficiency ratio equals 55.8%

• Net interest income before provision for loan losses increased 20% to $16.7 million

• Noninterest income even at $5.0 million

• Quarterly cash dividends totaled $0.04 per share for the year

“Following a record year of earnings and healthy growth in our balance sheet and loan and deposit portfolios, first quarter results were moderate and reflect the impact of a significant, non-recurring investment to build up our BSA infrastructure,” said (Paul) Seon-Hong Kim, president and chief executive officer of Center Financial. “While this effort certainly restrained our financial performance in the current first quarter, we believe we have taken the appropriate steps necessary to enable us to move forward with our strategic growth objectives.

“Fortifying the platform from which we expect to grow in the years ahead, we recently announced the expansion of our sales team with the appointment of a new chief marketing officer, along with several new experienced marketing professionals,” Kim said. “We believe these investments, along with initiatives designed to further improve our internal reporting processes, will result in long-term value for our customers, employees and shareholders.”

For the three months ended March 31, 2006, net interest income before provision for loan losses rose 20% to $16.7 million from $13.8 million in the 2005 first quarter, reflecting the positive impact of prime rate increases on a largely variable rate loan portfolio, partially offset by higher interest expense on deposits. The company’s yield on interest earning assets rose to 7.54% in the 2006 first quarter from 6.34% in the same period a year ago. The net interest margin narrowed to 4.40% from 4.57% in the first quarter of 2005.

The company posted a provision for loan losses of $257,000 in the 2006 first quarter, compared with $650,000 in the same 2005 period. Allowance for loan losses to gross loans equaled 1.12% in the first quarter of 2006, versus 1.13% a year earlier.

Noninterest income was relatively equal at $5.0 million in the first quarter of 2006 and 2005.

Noninterest expense for the 2006 first quarter rose to $12.1 million from $9.4 million a year earlier principally due to non-recurring professional fees related to the company’s major effort to build up its BSA infrastructure, which included the engagement of specialized outside consultants. In addition, the company recorded higher staff,

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Center Financial Corporation

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occupancy and operational costs associated with the addition of two full-service branches in 2005 located in Seattle and Irvine. Reflecting the non-recurring professional fees in 2006 first quarter, the efficiency ratio rose to 55.8% from 49.7% in the prior-year period.

Net income for the 2006 first quarter increased 7% to $5.8 million, or $0.35 per diluted share, from $5.4 million, or $0.32 per diluted share, in the corresponding period a year ago.

For the 2006 first quarter, return on average assets was 1.41% and return on average equity was 20.16%, compared with 1.63% and 23.36%, respectively, for the same period last year.

Gross loans at March 31, 2006 increased 19% to $1.2 billion from $1.0 billion at March 31, 2005. Commercial real estate loans grew 25% from prior-year levels and accounted for 63% of the company’s gross loans at the end of the 2006 first quarter. Commercial and industrial loans, including commercial, trade finance and SBA loans, were up 9% over a year earlier and represented 30% of the gross loan portfolio at March 31, 2006. Consumer loans increased 18% over the prior year and totaled 6% of the company’s gross loan portfolio at the end of the 2006 first quarter.

“Earlier this month, Center Bank was honored to be recipient of the U.S. Small Business Administration’s (SBA) 2006 Excellence in Lending Award at the National Small Business Week 2006 event,” Kim said. “Amongst the nation’s largest and multi-national banks, Center Bank was designated as an Excellent Lender by the SBA based on the last three to five fiscal years of outstanding compounded annual growth in loan volume, consistent loan volume increases year-over-year, and exceptional credit quality. This recognition is a testament to Center Bank’s continued support of small business owners and its leadership in SBA lending. We look forward to another strong year of achievements.”

Total deposits rose 25% to $1.5 billion at March 31, 2006 from $1.2 billion a year ago. Non-interest bearing deposits were up 4% over levels a year earlier and accounted for 26% of deposits at the end of the 2006 first quarter. Interest bearing checking and savings deposits posted increases of 6% and 5%, respectively, over levels at March 31, 2005. Time deposits rose 50% over a year ago as consumers responded to the higher interest rate environment and accounted for 55% of total deposits at the end of the 2006 first quarter.

The average cost of interest-bearing deposits for the 2006 first quarter increased to 4.14% from 2.37% a year earlier. The average cost of total deposits rose to 3.09% for the current first quarter, up from 1.66% in the year-ago first quarter.

Total assets at March 31, 2006 grew 22% to $1.7 billion, up from $1.4 billion at March 31, 2005. Interest-earning assets totaled $1.5 billion at the end of the 2006 first quarter compared with $1.2 billion at March 31, 2005. The company continued to finance the growth of its total assets with the increase in deposits through its expanded network of branch offices.

The company continued to maintain excellent asset quality with total nonperforming assets totaling $3.6 million, or 0.21% of total assets, at March 31, 2006, compared with $3.5 million, or 0.25% of total assets, at March 31, 2005. Net charge-offs for 2006 first quarter totaled $210,000, compared with $94,000 in the year-ago first quarter.

Shareholders’ equity at March 31, 2006 increased 24% to $118.5 million from $95.4 million at March 31, 2005. At the end of the 2006 first quarter, Center Financial remained “well-capitalized” under all regulatory categories, with a Tier 1 risk-based capital ratio of 9.99%, a total risk-based capital ratio of 11.05%, and a Tier 1 leverage ratio of 8.17%.

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Center Financial Corporation

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Investor Conference Call

The company will host an investor conference call at 11:00 a.m. EDT (8:00 a.m. PDT) on Thursday, April 27, 2006 to review the financial results for its 2006 first quarter. The call will be open to all interested investors through a live, listen-only audio Web broadcast via the Internet 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 of the conference call also will be available through 8:00 p.m. EST, Wednesday, May 3, by calling 888-286-8010 (domestic) or 617-801-6888 (international) and using passcode 29811794.

About Center Financial Corporation

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 largest financial institutions focusing on the Korean-American community, with total assets of $1.7 billion at March 31, 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, along with one branch each in Chicago and Seattle. Center Bank’s nine loan production offices are strategically located in Phoenix, Seattle, Denver, Washington D.C., Las Vegas, Atlanta, Honolulu, Houston and Dallas. 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 may contain forward-looking statements, which are included in accordance with the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 and accordingly, the cautionary statements contained in Center Financial Corp’s Annual Report on amended Form 10-K for the fiscal year ended Dec. 31, 2005 (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; 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.

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(TABLES FOLLOW)

CENTER FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited)

(In thousands, except share and per share data)

	3/31/2006			12/31/2005			3/31/2005
ASSETS:
Cash and due from banks	$	84,808		$	79,822		$	69,566
Federal funds sold		91,690			58,490			52,470
Money market funds and interest-bearing deposits in other banks		5,264			5,064			3,564
Cash and cash equivalents		181,762			143,376			125,600
Securities available for sale, at fair value		204,121			226,023			167,829
Securities held to maturity, at amortized cost (fair value of $11,147 as of March 31, 2006, $11,014 as of December 31, 2005 and $10,951 as of March 31, 2005)		11,217			11,052			10,880
Federal Home Loan Bank and Pacific Coast Bankers Bank stock, at cost		5,497			5,434			3,905
Loans, net of allowance for loan losses of $13,918 as of March 31, 2006, $13,871 as of December 31, 2005 and $11,783 as of March 31, 2005		1,218,864			1,206,408			1,017,302
Loans held for sale, at the lower of cost or market		11,781			12,741			14,591
Premises and equipment, net		13,863			14,027			12,047
Customers’ liability on acceptances		3,698			4,028			3,573
Accrued interest receivable		7,256			6,486			5,261
Deferred income taxes, net		10,117			10,205			6,443
Investments in affordable housing partnerships		4,353			4,481			3,772
Cash surrender value of life insurance		10,897			10,805			10,522
Goodwill		1,253			1,253			1,253
Intangible assets-net		360			373			413
Other assets		4,318			4,311			4,100
Total	$	1,689,357		$	1,661,003		$	1,387,491
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Liabilities
Deposits:
Noninterest-bearing	$	389,355		$	395,050		$	374,917
Interest-bearing		1,101,727			1,085,506			815,734
Total Deposits		1,491,082			1,480,556			1,190,651
Acceptances outstanding		3,698			4,028			3,573
Accrued interest payable		11,150			9,084			3,760
Other borrowed funds		37,243			28,643			69,268
Trust preferred securities		18,557			18,557			18,557
Accrued expenses and other liabilities		9,145			7,421			6,312
Total liabilities		1,570,875			1,548,289			1,292,121
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, 16,476,768 as of March 31, 2006, 16,439,053 as of December 31, 2005 and 16,431,063 as of March 31, 2005		66,066			65,622			65,078
Retained earnings		53,379			48,268			31,049
Accumulated other comprehensive loss, net of tax		(963	)		(1,176	)		(757	)
Total shareholders’ equity		118,482			112,714			95,370
Total	$	1,689,357		$	1,661,003		$	1,387,491

CENTER FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

(In thousands, except share and per share data)

	Three Months Ended
	March 31, 2006		December 31, 2005		March 31, 2005
Interest income	$	28,520	$	27,505	$	19,173
interest expense		11,862		10,034		5,341
Net interest income before provision for loan losses		16,658		17,471		13,832
Provision for loan losses		257		740		650
Net interest income after provision for loan losses		16,401		16,731		13,182
Noninterest Income:
Customer service fees		2,130		2,194		2,235
Fee income from trade finance transactions		953		755		902
Wire transfer fees		216		239		204
Gain on sale of loans		674		667		673
Net gain on sale of securities available for sale		—		—		50
Loan service fees		554		459		440
Other income		480		528		533
Total noninterest income		5,007		4,842		5,037
Noninterest expense:
Salaries and employee benefits		5,563		5,636		4,445
Occupancy		884		1,038		715
Furniture, fixtures, and equipment		460		479		408
Data processing		542		536		465
Professional service fees		2,060		804		798
Business promotion and advertising		845		723		650
Stationary and supplies		159		220		177
Telecommunications		173		157		129
Postage and courier service		141		197		163
Security service		263		230		175
Loss on termination of interest rate swap		—		—		306
Loss on interest rate swaps		53		32		157
Other operating expenses		947		1,343		782
Total noninterest expense		12,090		11,395		9,370
Income before income tax provision		9,318		10,178		8,849
Income tax provision		3,549		3,529		3,436
Net income	$	5,769	$	6,649	$	5,413
Earings per share
Basic	$	0.35	$	0.40	$	0.33
Diluted	$	0.35	$	0.40	$	0.32
Basic average common shares outstanding		16,451,055		16,434,670		16,314,981
Diluted average common shares outstanding		16,629,328		16,725,023		16,669,068

CENTER FINANCIAL CORPORATION

SELECTED FINANCIAL DATA (Unaudited)

(In thousands)

	Three Months Ended
	March 31, 2006						December 31, 2005						March 31, 2005
	Average Balance		Interest Income/ Expense		Rate/ Yield		Average Balance		Interest Income/ Expense		Rate/ Yield		Average Balance		Interest Income/ Expense		Rate/ Yield
Assets:
Interest-earning assets:
Loans	$	1,227,712	$	25,288	8.35	%	$	1,210,886	$	25,175	8.25	%	$	1,027,819	$	17,594	6.94	%
Federal funds sold		73,806		823	4.52			32,448		323	3.94			27,385		171	2.53
Investment securities		232,294		2,409	4.21			207,564		2,007	3.84			171,608		1,408	3.33
Total interest-earning assets		1,533,812		28,520	7.54	%		1,450,898		27,505	7.52	%		1,226,812		19,173	6.34	%
Noninterest - earning assets		128,792						132,240						117,844
Total assets	$	1,662,604					$	1,583,138					$	1,344,656
Interest-bearing liabilities:
Deposits:
Money market and NOW accounts	$	202,960	$	1,360	2.72	%	$	199,727	$	1,224	2.43	%	$	202,816	$	840	1.68	%
Savings		80,670		744	3.74			80,571		735	3.62			75,247		599	3.23
Time certificates of deposits in:
Denominations of $100,000 or more		734,453		8,392	4.63			646,188		6,745	4.14			464,211		2,938	2.57
Other time certificate of deposits		100,489		928	3.75			95,624		788	3.27			82,079		444	2.19
		1,118,572		11,424	4.14			1,022,110		9,492	3.68			824,353		4,821	2.37
Other borrowed funds		9,437		104	4.47			20,150		222	4.37			36,030		254	2.86
Long-term subordinated debentures		18,557		334	7.30			18,557		320	6.85			18,557		266	5.82
Total interest-bearing liabilities		1,146,566		11,862	4.20			1,060,817		10,034	3.75			878,940		5,341	2.46	%
Noninterest-bearing liabilities:
Demand deposits		379,431						394,063						354,608
Total funding liabilities		1,525,997			3.15	%		1,454,880			2.73	%		1,233,548			1.76	%
Other liabilities		20,567						18,029						17,123
Total noninterest-bearing liabilities		399,998						412,092						371,731
Shareholders’ equity		116,040						110,258						93,985
Total liabilities and shareholders’ equity	$	1,662,604					$	1,583,167					$	1,344,656
Net interest income			$	16,658					$	17,471					$	13,832
Cost of deposits					3.09	%					2.66	%					1.66	%
Net interest spread					3.34	%					3.77	%					3.88	%
Net interest margin					4.40	%					4.78	%					4.57	%

CENTER FINANCIAL CORPORATION

SELECTED FINANCIAL DATA (Unaudited)

(In thousands)

	March 31, 2006			December 31, 2005			March 31, 2005
Nonaccrual loans:
Real estate:
Construction	$	1,562		$	1,632		$	1,726
Commercial		354			—			—
Commercial		1,088			598			426
Consumer		173			113			62
Trade Finance		—			—			532
SBA		429			600			753
Total nonperforming loans		3,606			2,943			3,499
Other real estate owned		—			—			—
Total nonperforming assets	$	3,606		$	2,943		$	3,499
Nonperforming loans as a percent of total loans		0.29	%		0.24	%		0.37	%
Nonperforming assets as a percent of total loans and other real estate owned		0.29	%		0.24	%		0.37	%
Nonperforming assets to total assets		0.21	%		0.17	%		0.37	%
	Three Months Ended March 31, 2006			Year Ended December 31, 2005			Three Months Ended March 31, 2005
Balances
Average total loans outstanding during the period	$	1,241,701		$	1,123,880		$	1,039,245
Total loans outstanding at end of period	$	1,244,563		$	1,234,615		$	1,043,675
Allowance for loan losses:
Balance at beginning of period	$	13,871		$	11,227		$	11,227
Net loan charge-offs		(210	)		(726	)		(94	)
Provision for loan losses		257			3,370			650
Balance at end of period	$	14,338		$	15,323		$	11,971
Allowance for loan losses to nonperforming loans		385.97	%		471.32	%		336.75	%
Allowance for loan losses to gross loans at end of period		1.12	%		1.12	%		1.13	%
Provision for loan losses to average total loans		0.02	%		0.30	%		0.06	%
Net loan charge-offs to average loans		0.02	%		0.06	%		0.01	%
Net loan charge-offs to allowance for loan losses at end of period		1.51	%		5.23	%		0.80	%
Net loan charge-offs to provision for loan losses		81.71	%		21.54	%		14.50	%
Other ratios
Return on average assets		1.41	%		1.67	%		1.63	%
Return on average equity		20.16	%		23.92	%		23.36	%
Noninterest expense to average assets		3.20	%		2.86	%		3.10	%
Efficiency ratio		55.80	%		51.07	%		49.66	%
	March 31, 2006			December 31, 2005			March 31, 2006
Tier 1 risk-based captial ratio		9.99	%		9.70	%		9.89	%
Total risk-based captial ratio		11.05			10.77			10.95
Tier 1 leverage ratio		8.17			8.21			8.35

CENTER FINANCIAL CORPORATION

SELECTED FINANCIAL DATA (Unaudited)

(In thousands)

	March 31, 2006				December 31, 2005				March 31, 2005
	Amount		Percent of Total		Amount		Percent of Total		Amount		Percent of Total
Real Estate:
Construction	$	11,569	1	%	$	4,713	—	%	$	11,122	1	%
Commercial		792,341	63			776,725	63			634,747	61
Commercial		241,331	19			243,052	20			211,248	20
Trade Finance		80,071	7			90,370	7			76,892	7
SBA		50,390	4			49,070	4			51,643	5
Other		250	—			1,473	—			159	—
Consumer		72,566	6			71,499	6			61,385	6
Total Gross Loans		1,248,518	100	%		1,236,902	100	%		1,047,196	100	%
Less:
Allowance for Losses		13,918				13,871				11,783
Deferred Loan Fees		1,547				1,595				1,310
Discount on SBA Loans Retained		2,408				2,287				2,210
Total Net Loans and Loans Held for Sale	$	1,230,645			$	1,219,149			$	1,031,893
Deposits:
Demand deposits (noninterest-bearing)	$	389,356	26	%	$	395,050	26	%	$	374,917	31	%
Money market accounts and NOW		202,159	14			221,083	15			191,288	16
Savings		82,411	5			81,654	6			78,498	7
Time deposits
Less than $100,000		102,117	7			97,433	7			82,542	7
$100,000 or more		715,039	48			685,336	46			463,406	39
Total deposits	$	1,491,082	100	%	$	1,480,556	100	%	$	1,190,651	100	%

	Three Months Ended March 31, 2006		Three Months Ended December 31, 2005		Three Months Ended March 31, 2005
Average Balances
Gross loans	$	1,241,701	$	1,224,415	$	1,039,245
Net loans		1,227,712		1,210,886		1,027,819
Interest earning assets		1,533,812		1,450,898		1,226,812
Assets		1,662,604		1,583,138		1,344,656
Deposits		1,498,003		1,416,173		1,178,961
Equity		116,040		110,263		93,985