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) October 25, 2007

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))

Item 2.02. Results of Operations and Financial Condition

On October 25, 2007, Center Financial Corporation issued a press release concerning its results of operations and financial condition as of and for the three and nine months ended September 30, 2007. 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 September 30, 2007 calendar quarter.

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: October 25, 2007	/s/ Lonny D. Robinson
	Center Financial Corporation
	Chief Financial Officer

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 September 30, 2007	5

EX-99.1

EXHIBIT 99.1

CENTER FINANCIAL REPORTS 18% YEAR-OVER-YEAR LOAN GROWTH

FOR 2007 THIRD QUARTER

— Credit Quality Steady at 0.38% of Total Gross Loans —

LOS ANGELES – October 25, 2007 – Center Financial Corporation (NASDAQ: CLFC), the holding company of Center Bank, today reported financial results for its third quarter and nine months ended September 30, 2007, with net loans increasing 6% sequentially and 18% over the year-ago period and asset quality remaining solid.

2007 Third Quarter Summary:

• Net loans increased 6% sequentially by $104.1 million to $1.72 billion from Q2 2007; up 18% over Q3 2006

• Provision for loan losses of $2.0 million versus $1.1 million in Q2 2007 reflects strong loan growth

• Nonperforming assets stable at 0.38% of total gross loans, versus 0.37% at June 30, 2007

• Allowance for loan losses upped to 1.13% from 1.12%

• Total deposits up 7% over September 30, 2006 to $1.52 billion, but down 4% sequentially

• Non-interest bearing deposits equal 24% of total deposits, versus 25% for Q2 2007

• Net interest margin compressed to 4.22% from 4.39% for Q2 2007

• Net interest income before provision for loan losses increased 1% sequentially to $19.3 million

• Net income of $5.7 million, or $0.34 per diluted share, principally reflects higher loan loss provisioning and no gain on sale of loans versus Q2 2007

• Efficiency ratio improved sequentially to 50.4% from 51.2% for Q2 2007

• ROAA and ROAE down sequentially to 1.16% and 14.47%, respectively, versus 1.39% and 17.27% for Q2 2007

• Successful remediation of material weakness in internal controls reported in Q1 2007 Form 10-Q

• Quarterly cash dividend of $0.05 per share

• Signed definitive agreement to acquire First Intercontinental Bank

“Benefiting from a strengthened, cohesive management team, along with a streamlined branch and LPO support structure, Center Bank delivered a very strong quarter of new loan production that added more than $100 million dollars net to our total loan portfolio,” said Jae Whan (J.W.) Yoo, president and chief executive officer. “As our historical focus has always been serving the financial needs of small business entrepreneurs, we do not participate in subprime residential mortgage lending, negative amortization loans or collateralized debt obligation markets. With no direct exposure to asset quality issues created by these activities and our traditionally conservative underwriting standards, Center Bank’s loan portfolio remains intact with steady and sound credit metrics.

“Given the difficult operating environment, we are cautiously navigating forward with our growth objectives designed to create greater value for our customers, employees and shareholders. While our strategy to refrain from selling loans to the wholesale market for an immediate gain on sale each quarter will initially challenge our year-over-year earnings comparisons, we have strong conviction that this policy is a sound one that will ultimately lead to greater profits longer term, particularly in light of recent market developments,” Yoo said.

2007 THIRD QUARTER

For the three months ended September 30, 2007, net interest income before provision for loan losses rose 5% to $19.3 million from $18.4 million in the 2006 third quarter. The increase reflects growth in the company’s earning assets driven by continued strength in loan originations, offset in part by a larger proportion of interest-bearing deposits and higher interest expense on borrowed funds. The company’s yield on interest-earning assets averaged 8.01% for the three months ended September 30, 2007, compared with 8.11% in the 2007 second quarter and 8.08% in the 2006 third quarter. The net interest margin for the 2007 third quarter was 4.22%, down from 4.39% in the immediately preceding second quarter and 4.63% in the year-ago third quarter. The company attributed the net interest margin compression to the growing demand for fixed rate loans, which provides lower rates than variable rate lending, general rate increases in funding liabilities and a less favorable mix of interest-bearing to noninterest-bearing deposits. In addition, the Federal Reserve Board’s reduction in the Federal funds rate by 50 basis points on September 18, 2007, which resulted in a corresponding prime rate reduction to 7.75%, further pressured the company’s net interest margin.

Center Financial added $2.0 million to its provision for loan losses in the current third quarter, primarily due to very strong loan growth. This compared with $1.1 million in the immediately preceding second quarter and $2.5 million in the year-ago third quarter. Allowance for loan losses to gross loans was increased to 1.13%

Noninterest income in the third quarter of 2007 totaled $3.4 million and did not include any gain from the sale of loans to the wholesale market. This compares with total noninterest income of $4.9 million in the year-ago third quarter, which included a gain on sale of loans of $819,000.

Noninterest expense for the 2007 third quarter equaled $11.5 million, up 6% from $10.8 million a year earlier, principally reflecting increased costs for staff and occupancy over the prior-year period. Compared with $12.1 million in the immediately preceding second quarter, 2007 third quarter noninterest expense declined 6%, reflecting lower professional service, business promotion and advertising expenses. As a percentage of average earning assets, noninterest expense was 2.5% for the current third quarter, improved from 2.9% in the preceding second quarter and from 2.7% in the 2006 third quarter. The company’s efficiency ratio for the 2007 third quarter improved to 50.4% from 51.2% in the immediately preceding second quarter, but was up from 46.3% posted in the third quarter of 2006.

Net income for the 2007 third quarter declined year-over-year to $5.7 million, equal to $0.34 per diluted share, principally reflecting management’s determination not to sell loans to wholesale market and overall increases in salary and benefits. In the year-ago third quarter, the company posted net income of $6.4 million, or $0.38 per diluted share, which included a pre-tax gain on sale of $819,000.

Return on average assets (ROAA) and return on average equity (ROAE) equaled 1.16% and 14.47%, respectively, for the three months ended September 30, 2007. This compares with 1.39% and 17.27%, respectively, for the immediately preceding second quarter. In the year-ago third quarter, ROAA and ROAE were 1.47% and 19.44%, respectively.

2007 NINE MONTHS

For the nine months ended September 30, 2007, net interest income before provision for loan losses increased 9% to $57.1 million from $52.3 million in the comparable 2006 period. The increase reflects the growth in the company’s earning assets driven by continued strength in loan originations, offset in part by a larger proportion of interest-bearing deposits and higher interest expense on borrowed funds. Yield on interest-earning assets in the first nine months of 2007 rose to 8.05% from 7.84% in same period a year ago. The net interest margin year-to-date was 4.33%, compared with 4.54% for the first nine months of 2006. The company attributed the net interest margin compression to the growing demand for fixed rate loans, which provides lower rates than variable rate lending, general rate increases in funding liabilities and a less favorable mix of interest-bearing to noninterest-bearing deposits.

The company’s provision for loan losses totaled $4.4 million in the first nine months of 2007, compared with $4.3 million in the 2006 year-to-date period. Allowance for loan losses to gross loans was 1.13% at September 30, 2007, compared with 1.12% a year ago.

Noninterest income for first nine months of 2007 totaled $11.5 million and includes a $618,000 gain on the sale of unguaranteed portion SBA loans posted in the preceding second quarter. This compares with noninterest income of $17.6 million in the 2006 nine-month period, which includes $2.6 million in gain on sale of SBA loans. In addition, the 2006 year-to-date noninterest income includes a one-time recognition of $2.5 million related to an insurance settlement.

Noninterest expense for the first nine months of 2007 rose 5% to $35.1 million from $33.5 million in the same period a year earlier, reflecting increased costs for staff and occupancy over the prior-year period, offset by lower professional services, business promotion and advertising expenses. The company’s efficiency ratio was 51.1% for the 2007 year-to-date period. This compares with an efficiency ratio of 48.0% for the 2006 nine-month period, which included the net positive impact from the $2.5 million one-time insurance settlement offset partially by a one-time, BSA-related consulting expense of $1.5 million recorded in the 2006 first quarter. Excluding the net positive impact of the insurance settlement and BSA-related consulting expense, the company would have reported an efficiency ratio of 48.7% for the 2006 nine months.

Net income for the first nine months of 2007 totaled $18.0 million, or $1.07 per diluted share, including $618,000 in gain on sale of loans. This compares with $19.8 million, or $1.19 per diluted share, in the 2006 year-to-date period, which included a $2.6 million in gain on sale of loans and a non-recurring insurance settlement of $2.5 million, offset partially by BSA-related consulting expense of $1.5 million. Excluding the $2.0 million differential in gain on sale of loans for the comparable nine-month periods, the insurance settlement and the BSA-related consulting expense, the company’s 2006 nine-month net income would have been $18.0 million, equal to $1.08 per diluted share.

Return on average assets and return on average equity for the nine months ended September 30, 2007 equaled 1.28% and 16.02%, respectively, compared with 1.58% and 21.57% during the corresponding 2006 period. Excluding the $2.0 million differential in gain on sale of loans for the comparable nine-month periods, the insurance settlement and the BSA-related consulting expense, the company’s 2006 nine-month ROAA and ROAE would have been 1.44% and 19.60%, respectively.

FINANCIAL CONDITION

Gross loans at September 30, 2007 increased 6% sequentially to $1.74 billion from $1.64 billion at June 30, 2007 and rose 12% from $1.56 billion at December 31, 2006. Year-over-year, gross loans increased 18% from September 30, 2006. As of September 30, 2007, commercial real estate loans, which increased 10% from year-end 2006, remained the largest component of the company’s total loan portfolio and accounted for 66% of total loans outstanding. Real estate construction loans, which accounted for 3% of the company’s total loans at September 30, 2007, were up 38% over December 31, 2006. Commercial and industrial loans, including commercial, trade finance and SBA loans, represented 26% and consumer loans totaled 5% of the company’s gross loan portfolio at September 30, 2007. Net loans as a percentage of total assets increased to 85.6% at September 30, 207, compared with 84.3% at June 30, 2007 and 83.4% at year-end 2006.

Center Financial continued to maintain sound asset quality with nonperforming assets at September 30, 2007 totaling $6.6 million, or $4.2 million, net of the guaranteed portion of nonperforming SBA loans. This compares with nonperforming assets of $6.0 million, or $3.3 million, net of SBA guarantee, at June 30, 2007 and $3.3 million, or $2.3 million, net of SBA guarantee, at December 31, 2006. As a percentage of total gross loans, nonperforming loans equaled 0.38% at September 30, 2007, compared with 0.37% at June 30, 2007 and 0.21% at December 31, 2006.

The company noted that one nonperforming guaranteed SBA loan, located outside of Southern California and totaling $791,000, was brought current during the 2007 third quarter, but is still being reported as nonperforming and impaired in accordance with accounting guidelines and bank collection procedures. Year-to-date, net charge-offs totaled $2.2 million. This compares with net charge-offs of $1.6 million in the first nine months of 2006, which included a larger-than-usual recovery of $423,000 from one loan. The total allowance for loan losses at September 30, 2007 increased to $19.6 million, reflecting the strong expansion of the company’s loan portfolio and represented 1.13% of gross loans. This compares with allowance for losses of $17.4 million, or 1.12% of gross loans, at December 31, 2006.

Total deposits at September 30, 2007 equaled $1.52 billion, up 6% over $1.43 billion at December 31, 2006, but were down sequentially from $1.59 billion at June 30, 2007. Non-interest bearing deposits at the end of the 2007 third quarter totaled $361.1 million and accounted for 24% of total deposits, versus $388.2 million, or 27% of total deposits, at December 31, 2006. Time deposits at September 30, 2007 accounted for 57% of total deposits, compared with 54% at year-end 2006. Center Bank’s loan-to-deposit ratio as of September 30, 2007 equaled 113.0%, compared with 107.5% at December 31, 2006.

The average cost of interest-bearing deposits year-to-date increased to 4.80% from 4.36% for the 2006 nine-month period, reflecting increases in the Fed Funds rate by the Federal Reserve. The company said that due to a lagging effect, the 50 basis point reduction in the Fed Funds rate on September 18, 2007 did not have any significant impact on its cost of interest-bearing deposits. The average cost of total deposits rose to 3.57% for the current nine-month period, up from 3.21% in the same year-ago period.

Total assets at September 30, 2007 increased to $2.00 billion from $1.84 billion at December 31, 2006, primarily reflecting the growth in the company’s loan portfolio. Average interest-earning assets totaled $1.76 billion for the 2007 nine-month period, compared with $1.54 billion for the corresponding 2006 period.

Shareholders’ equity at September 30, 2007 increased 13% to $158.8 million from $140.7 million at December 31, 2006. Tangible book value at the end of the 2007 third quarter increased to $9.40 per share from $9.06 per share at

June 30, 2007 and $8.37 per share at year-end 2006. At September 30, 2007, Center Financial remained “well-capitalized” under all regulatory categories, with a Tier 1 risk-based capital ratio of 9.93%, a total risk-based capital ratio of 11.08%, and a Tier 1 leverage ratio of 9.01%.

“During our third quarter, we made significant progress with our reinvigorated expansion strategies,” Yoo said. “We recently announced the signing of lease for a full-service branch in Diamond Bar, Calif., which will be our 16^th branch in Southern California. We are also looking forward to the opening of our second full-service branch in the Seattle area in November, as well as the relocation of our Oxford branch to a significantly larger site in the heart of Los Angeles’ Koreatown this winter. On a larger scale, we announced our plans to enter the Atlanta market early in 2008 with the pending acquisition of First Intercontinental Bank, as discussed below. Through the acquisition of the first Korean-American financial institution established in the Atlanta metro area with the greatest market share, we believe the opportunities are tremendous for continued expansion along the East Coast. With the progress made-to-date being driven by a strengthened organization, we are confident that we are well prepared for our next phase of growth for Center Financial.”

DEFINITIVE AGREEMENT TO ACQUIRE FIRST INTERCONTINENTAL BANK

On September 18, 2007, Center Financial announced that it had entered into a definitive agreement to acquire First Intercontinental Bank of Doraville, Ga., the commercial business center of Atlanta’s Asian community. Under the terms of the definitive agreement, which has been approved by each respective board of directors, First Intercontinental will be merged into a newly formed Georgia state-chartered banking subsidiary of Center Financial that will operate under the First Intercontinental Bank name. Center Financial will become a multi-bank holding company with Center Bank and First Intercontinental Bank as its two wholly owned banking subsidiaries. The transaction is valued at $22.27 per fully diluted share of First Intercontinental Bank common stock, based on a total purchase price of $65.2 million. Of this amount, approximately $3.6 million is to be paid in cash for the cancellation of outstanding First Intercontinental stock options, and the remainder is to be paid to First Intercontinental shareholders, payable 60% in cash and 40 % in Center Financial common stock. The closing of the transaction is subject to the approvals of the Federal Reserve Board, the FDIC and the Georgia Department of Banking and Finance, as well as the approval of First Intercontinental’s shareholders. The transaction is expected to be completed in the first quarter of 2008.

Investor Conference Call

The company will host an investor conference call at 12:00 p.m. EDT (9:00 a.m. PDT) on Thursday, October 25, 2007 to review the financial results for its 2007 third 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. 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 call will be archived for one year at both Web sites. A telephone replay of the call will be available through 9:00 p.m. EDT, Thursday, November 1, 2007 by dialing 888-286-8010 (domestic) or 617-801-6888 (international) and entering passcode 23618712.

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 $2.0 billion at September 30, 2007. Headquartered in Los Angeles, Center Bank operates 24 branch and loan production offices. 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 seven loan production offices are strategically located in Seattle, Denver, Washington D.C., Las Vegas, Atlanta, Dallas and Northern California. 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. These forward-looking statements include, but are not limited to, statements regarding the next phase of growth for Center Financial and Center Bank, integration risks associated with the First Intercontinental Bank acquisitions, satisfaction of various closing conditions and receipt of all regulatory approvals. 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, 2006 (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.

#     #     #

(TABLES FOLLOW)

CENTER FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited)

	9/30/2007		12/31/2006
	(Dollars in thousands)
ASSETS
Cash and due from banks	$	64,070	$	71,504
Federal funds sold		6,470		—
Money market funds and interest-bearing deposits in other banks		2,233		1,872
Cash and cash equivalents		72,773		73,376
Securities available for sale, at fair value		132,162		148,913
Securities held to maturity, at amortized cost (fair value of $10,295 as of September 30, 2007 and $10,571 as of December 31, 2006)		10,373		10,591
Federal Home Loan Bank and Pacific Coast Bankers Bank stock, at cost		13,437		11,065
Loans, net of allowance for loan losses of $19,619 as of September 30, 2007 and $17,412 as of December 31, 2006		1,681,650		1,518,666
Loans held for sale, at the lower of cost or market		36,621		18,510
Premises and equipment, net		13,407		13,322
Customers’ liability on acceptances		3,748		4,871
Accrued interest receivable		9,336		8,574
Deferred income taxes, net		11,318		11,723
Investments in affordable housing partnerships		6,150		6,878
Cash surrender value of life insurance		11,482		11,183
Goodwill		1,253		1,253
Intangible assets, net		280		320
Other assets		3,453		4,067
Total Assets	$	2,007,443	$	1,843,312
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities
Deposits:
Noninterest-bearing	$	361,137	$	388,163
Interest-bearing		1,159,132		1,041,236
Total deposits		1,520,269		1,429,399
Acceptances outstanding		3,748		4,871
Accrued interest payable		11,927		11,458
Other borrowed funds		285,324		229,490
		18,557		18,557
Accrued expenses and other liabilities		8,771		8,803
Total liabilities		1,848,596		1,702,578
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 40,000,000 shares; issued and outstanding, 16,730,407 (including 8,700 shares of unvested restricted stock) as of September 30, 2007 and 16,632,601 as of December 31, 2006		71,088		69,172
Retained earnings		87,471		71,777
Accumulated other comprehensive loss, net of tax		288		(215	)
Total shareholders’ equity		158,847		140,734
Total Liabilities and Shareholders’ Equity	$	2,007,443	$	1,843,312
Tangible book value per share	$	9.40	$	8.37

CENTER FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Unaudited)

	Three Months Ended							Nine Months Ended September 30,
	9/30/07		6/30/07		9/30/06			2007		2006
	(Dollars in thousands, except per share data)
Interest and Dividend Income:
Interest and fees on loans	$	34,781	$	33,490	$	29,906		$	100,252	$	81,961
Interest on federal funds sold		67		62		88			180		1,506
Interest on taxable investment securities		1,595		1,551		1,757			4,771		6,001
Interest on tax-advantaged investment securities		125		129		144			387		393
Dividends on equity stock		151		181		107			506		265
Money market funds and interest-earning deposits		16		16		119			48		232
Total interest and dividend income		36,735		35,429		32,121			106,144		90,358
Interest Expense:
Interest on deposits		14,767		13,431		11,843			39,775		35,187
Interest on borrowed funds		2,258		2,426		1,499			8,120		1,780
Interest expense on trust preferred securities		378		373		383			1,120		1,076
Total interest expense		17,403		16,230		13,725			49,015		38,043
Net interest income before provision for loan losses		19,332		19,199		18,396			57,129		52,315
Provision for loan losses		2,000		1,100		2,494			4,370		4,269
Net interest income after provision for loan losses		17,332		18,099		15,902			52,759		48,046
Noninterest Income:
Customer service fees		1,676		1,772		2,019			5,215		6,233
Fee income from trade finance transactions		615		682		849			2,046		2,599
Wire transfer fees		206		226		221			643		674
Gain on sale of loans		—		618		819			618		2,616
Gain on sale of equipment		—		—		—			12		—
Loan service fees		409		612		480			1,398		1,448
Insurance settlement - legal fees		—		—		—			—		2,520
Other income		477		585		520			1,596		1,532
Total noninterest income		3,383		4,495		4,908			11,528		17,622
Noninterest Expense:
Salaries and employee benefits		6,342		6,218		5,632			19,220		17,142
Occupancy		1,079		983		957			3,022		2,736
Furniture, fixtures, and equipment		575		497		487			1,539		1,456
Data processing		530		533		539			1,567		1,622
Professional service fees		359		1,082		704			2,449		3,118
Business promotion and advertising		480		830		552			1,549		1,888
Stationery and supplies		137		138		179			408		505
Telecommunications		160		146		169			442		507
Postage and courier service		185		191		212			565		548
Security service		268		271		247			779		749
Loss on sale of investment securities		—		—		115			—		115
(Gain) loss on interest rate swaps		—		—		(57	)		—		26
Other operating expenses		1,332		1,240		1,043			3,574		3,124
Total noninterest expense		11,447		12,129		10,779			35,114		33,536
Income before income tax provision		9,268		10,465		10,031			29,173		32,132
Income tax provision		3,570		3,982		3,671			11,136		12,324
Net income		5,698		6,483		6,360			18,037		19,808
EARNINGS PER SHARE:
Basic	$	0.34	$	0.39	$	0.38		$	1.08	$	1.20
Diluted	$	0.34	$	0.39	$	0.38		$	1.07	$	1.19
Weighted average shares outstanding - basic		16,720,539		16,679,653		16,564,111			16,689,622		16,503,416
Weighted average shares outstanding - diluted		16,785,290		16,761,144		16,681,811			16,785,126		16,648,779

CENTER FINANCIAL CORPORATION

SELECTED FINANCIAL DATA (Unaudited)

(Dollars in thousands)

	Three Months Ended
	9/30/07				6/30/07				9/30/06
	Average Balance		Rate/ Yield		Average Balance		Rate/ Yield		Average Balance		Rate/ Yield
Assets:
Interest-earning assets:
Loans	$	1,662,816	8.30	%	$	1,591,648	8.44	%	$	1,382,189	8.58	%
Federal funds sold		4,582	5.80			4,401	5.65			6,428	5.43
Investments		152,387	4.96			156,539	4.81			188,378	4.71
Total interest-earning assets		1,819,785	8.01			1,752,588	8.11			1,576,995	8.08
Noninterest - earning assets:
Cash and due from banks		63,727				66,295				77,246
Bank premises and equipment, net		13,564				13,553				13,675
Customers’ acceptances outstanding		3,241				4,446				5,774
Accrued interest receivables		8,286				7,642				7,236
Other assets		32,399				31,631				32,127
Total noninterest-earning assets		121,217				123,567				136,058
Total assets	$	1,941,002			$	1,876,155			$	1,713,053
Liabilities and Shareholders’ Equity:
Interest-bearing liabilities:
Deposits:
Money market and NOW accounts	$	263,320	4.30	%	$	228,726	4.01	%	$	206,719	3.13	%
Savings		60,946	3.17			69,258	3.43			79,517	3.82
Time certificates of deposit over $100,000		763,632	5.27			718,716	5.26			649,063	5.11
Other time certificates of deposit		104,879	4.83			97,148	4.69			97,158	4.43
		1,192,777	4.91			1,113,848	4.84			1,032,457	4.55
Other borrowed funds		180,667	4.96			181,339	5.37			110,855	5.36
Long-term subordinated debentures		18,557	8.08			18,557	8.06			18,557	8.19
Total interest-bearing liabilities		1,392,001	4.96			1,313,744	4.96			1,161,869	4.69
Noninterest-bearing liabilities:
Demand deposits		370,254				389,084				397,470
Total funding liabilities		1,762,255	3.92	%		1,702,828	3.82	%		1,559,339	3.49	%
Other liabilities		22,572				22,745				23,919
Total noninterest-bearing liabilities		392,826				411,829				421,389
Shareholders’ equity		156,175				150,582				129,795
Total liabilities and shareholders’ equity	$	1,941,002			$	1,876,155			$	1,713,053
Net interest income
Cost of deposits			3.75	%			3.58	%			3.29	%
Net interest spread			3.05	%			3.15	%			3.39	%
Net interest margin			4.22	%			4.39	%			4.63	%

CENTER FINANCIAL CORPORATION

SELECTED FINANCIAL DATA (Unaudited)

(Dollars in thousands)

	Nine Months Ended September 30,
	2007				2006
	Average Balance		Rate/ Yield		Average Balance		Rate/ Yield
Assets:
Interest-earning assets:
Loans	$	1,601,321	8.37	%	$	1,285,291	8.53	%
Federal funds sold		4,214	5.71			42,929	4.69
Investments		158,883	4.86			212,816	4.42
Total interest-earning assets		1,764,418	8.05			1,541,036	7.84
Noninterest - earning assets:
Cash and due from banks		68,010				77,124
Bank premises and equipment, net		13,512				13,805
Customers’ acceptances outstanding		3,774				5,020
Accrued interest receivables		7,939				6,895
Other assets		32,625				31,522
Total noninterest-earning assets		125,860				134,366
Total assets	$	1,890,278			$	1,675,402
Liabilities and Shareholders’ Equity:
Interest-bearing liabilities:
Deposits:
Money market and NOW accounts	$	224,431	3.91	%	$	209,808	2.95	%
Savings		67,653	3.41			80,711	3.79
Time certificates of deposit over $100,000		717,074	5.23			687,668	4.89
Other time certificates of deposit		97,635	4.68			99,786	4.16
		1,106,793	4.80			1,077,973	4.36
Other borrowed funds		208,329	5.21			45,290	5.25
Long-term subordinated debentures		18,557	8.07			18,557	7.75
Total interest-bearing liabilities		1,333,679	4.91			1,141,820	4.45
Noninterest-bearing liabilities:
Demand deposits		384,593				388,068
Total funding liabilities		1,718,272	3.81	%		1,529,888	3.32	%
Other liabilities		21,461				22,710
Total noninterest-bearing liabilities		406,054				410,778
Shareholders’ equity		150,545				122,804
Total liabilities and shareholders’ equity	$	1,890,278			$	1,675,402
Net interest income
Cost of deposits			3.57	%			3.21	%
Net interest spread			3.14	%			3.39	%
Net interest margin			4.33	%			4.54	%

CENTER FINANCIAL CORPORATION

SELECTED FINANCIAL DATA (Unaudited)

	As of the Dates Indicated
	9/30/07			6/30/07			3/31/07			12/31/06			9/30/06
	(Dollars in thousands)
Real Estate:
Construction	$	59,821		$	58,865		$	53,468		$	43,508		$	30,934
Commercial		1,142,899			1,080,128			1,060,110			1,042,562			985,334
Commercial		306,037			288,736			285,132			277,296			260,437
Trade Finance		75,526			67,000			68,703			66,925			72,349
SBA		65,561			58,464			56,083			50,606			54,347
Consumer and other		90,675			82,084			77,893			77,682			77,031
Total Gross Loans		1,740,519			1,635,277			1,601,389			1,558,579			1,480,432
Less:
Allowance for Losses		19,619			18,289			17,855			17,412			16,530
Deferred Loan Fees		1,833			1,954			2,225			2,347			1,970
Discount on SBA Loans Retained		796			874			1,535			1,644			1,373
Total Net Loans and Loans Held for Sale	$	1,718,271		$	1,614,160		$	1,579,774		$	1,537,176		$	1,460,559
As a percentage of total gross loans:
Real estate:
Construction		3.4	%		3.6	%		3.3	%		2.8	%		2.1	%
Commercial		65.7	%		66.1	%		66.2	%		66.9	%		66.6	%
Commercial		17.6	%		17.7	%		17.8	%		17.8	%		17.6	%
Trade finance		4.3	%		4.1	%		4.3	%		4.3	%		4.9	%
SBA		3.8	%		3.6	%		3.5	%		3.2	%		3.6	%
Consumer		5.2	%		5.0	%		4.9	%		5.0	%		5.2	%
Total gross loans		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

	As of the Dates Indicated
	9/30/07			6/30/07			3/31/07			12/31/06			9/30/06
	(Dollars in thousands)
Demand deposits (noninterest-bearing)	$	361,137		$	393,108		$	389,358		$	388,163		$	394,144
Money market accounts and NOW		237,457			275,403			181,305			190,453			182,231
Savings		58,764			65,838			71,973			76,846			78,974
		657,358			734,349			642,636			655,462			655,349
Time deposits
Less than $100,000		105,038			102,582			91,600			91,830			95,551
$100,000 or more		757,873			748,421			707,915			682,107			664,598
Total	$	1,520,269		$	1,585,352		$	1,442,151		$	1,429,399		$	1,415,498
As a percentage of total deposits:
Demand deposits (noninterest-bearing)		23.8	%		24.8	%		27.0	%		27.2	%		27.8	%
Money market accounts and NOW		15.6	%		17.4	%		12.6	%		13.3	%		12.9	%
Savings		3.9	%		4.2	%		5.0	%		5.4	%		5.6	%
		43.2	%		46.3	%		44.6	%		45.9	%		46.3	%
Time deposits
Less than $100,000		6.9	%		6.5	%		6.4	%		6.4	%		6.8	%
$100,000 or more		49.9	%		47.2	%		49.1	%		47.7	%		47.0	%
Total deposits		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

CENTER FINANCIAL CORPORATION

SELECTED FINANCIAL DATA (Unaudited)

	September 30, 2007		December 31, 2006		September 30, 2006
	(Dollars in thousands)
Nonperforming loans:
Commercial	$	1,428	$	1,502	$	1,540
Consumer		445		429		252
Trade Finance		199		—		—
SBA		4,535		1,330		893
Total nonperforming assets		6,607		3,261		2,685
Guaranteed portion of nonperforming SBA loans		2,418		973		484
Total nonperforming assets, net of SBA guarantee	$	4,189	$	2,288	$	2,201

	Nine Months Ended September 30, 2007			Year Ended December 31, 2006			Nine Months Ended September 30, 2006
	(Dollars in thousands)
Balances
Average total loans outstanding during the period	$	1,619,267		$	1,356,169		$	1,299,913
Total loans outstanding at end of period	$	1,737,890		$	1,554,588		$	1,477,089
Allowance for Loan Losses:
Balance at beginning of period	$	17,412		$	13,871		$	13,871
Charge-offs:
Commercial Real Estate		—			258			257
Commercial		2,032			1,635			1,280
Consumer		127			333			249
SBA		84			473			364
Other		—			—			—
Total charge-offs		2,243			2,699			2,150
Recoveries
Real estate		—			423			423
Commercial		19			44			38
Consumer		54			101			76
SBA		7			6			3
Total recoveries		80			574			540
Net loan charge-offs		2,163			2,125			1,610
Provision for loan losses		4,370			5,666			4,269
Balance at end of period	$	19,619		$	17,412		$	16,530
Ratios:
Nonperforming loans as a percent of total gross loans		0.38	%		0.21	%		0.18	%
Nonperforming assets as a percent of total loans and other real estate owned		0.38			0.21	%		0.18
Net loan charge-offs to average loans		0.13			0.16	%		0.12
Provision for loan losses to average total loans		0.27			0.42			0.33
Allowance for loan losses to gross loans at end of period		1.13			1.12			1.12
Allowance for loan losses to total nonperforming loans		297			534			616
Net loan charge-offs to allowance for loan losses at end of period		11.03			12.20			9.73
Net loan charge-offs to provision for loan losses		49.50			37.50			37.70