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) July 23, 2009

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 July 23, 2009, Center Financial Corporation issued a press release concerning its results of operations and financial condition for the three and six months ended and as of June 30, 2009. In this release, preferred stock dividends and accretion of preferred stock discount for the three months ended March 31, 2009 was corrected to $731,000 from the previously disclosed $395,000. Accordingly, the loss per common share for the same period is also being adjusted from $0.19 to $0.21. 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 results of operations and financial condition for the three and six months ended and as of June 30, 2009

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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: July 24, 2009	/s/    Lonny D. Robinson
	Center Financial Corporation 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 condition for the three and six months ended and as of June 30, 2009	5

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EX-99.1

Exhibit 99.1

News Release

Contacts:     Lonny Robinson Chief Financial Officer 213.401.2311 lonnyr@centerbank.com Angie Yang Investor Relations PondelWilkinson Inc. 310.279.5967 ayang@pondel.com

CENTER FINANCIAL REPORTS 2009 SECOND QUARTER RESULTS; TAKES ASSERTIVE STANCE ON CREDIT WITH $29.8MM PROVISION, $14.4MM IN NET CHARGE-OFFS

LOS ANGELES – July 23, 2009 – Center Financial Corporation (NASDAQ: CLFC), the holding company of Center Bank, today reported financial results for its three- and six-month periods ended June 30, 2009, reflecting significantly higher levels of loan loss provisioning and net charge-offs to mitigate potential credit risks in the challenging economic environment.

“Over the course of 2009, it has become more apparent that the current economic crisis we are all experiencing may be even more severe and prolonged than widely anticipated,” said Jae Whan (J.W.) Yoo, president and chief executive officer. “In light of this outlook, we are taking an even more assertive stance on credit risk management and are preparing for potentially even greater stress on our portfolio. As part of this effort, we completed our annual internal portfolio analysis during the second quarter, after expanding the application of the stress test to 100% of our loan portfolio. Having the benefit of this recent review of our entire portfolio, we believe the second quarter’s provisioning, charge-offs and increased reserve levels help position Center Bank ahead of the curve to better manage through this credit cycle.”

2009 SECOND QUARTER SUMMARY:

• Nonperforming assets decreased to $43.5 million at June 30 from $56.3 million at March 31, 2009

• Nonperforming assets to total loans and OREO declined to 2.63% at June 30, 2009 from 3.38% at March 31, 2009

• Net charge-offs increased significantly to $14.4 million for Q2, $17.3 million year-to-date

• Total delinquent loans including nonaccrual loans declined 17% from the preceding quarter to $68.7 million at June 30, 2009

• Provision for loan losses of $29.8 million exceeded Q2 charge-offs by $15.4 million

• Allowance for loan losses to gross loans increased to 3.96% as of June 30, from 2.99% as of March 31, 2009

• Deposits increased $190.9 million totaling $1.85 billion at June 30, 2009

• Gross loans further reduced to $1.65 billion from $1.66 billion at March 31, 2009

• Higher balances in lower-yielding Federal funds sold due to excess liquidity and the reversal of interest income on nonaccrual loans pressure net interest margin, down 38 basis points to 2.96% from 3.34% for Q1 2009

• Company remains strongly capitalized with total risk-based capital ratio of 12.76% at June 30, 2009

• Tangible common equity to total assets equals 6.48% at June 30, 2009

ASSET QUALITY

Nonperforming assets as of June 30, 2009 declined to $43.5 million from $56.3 million at March 31, 2009. This reflects reductions of $14.4 million in commercial real estate loans and $5.0 million in commercial business loans due to charge-offs and the sales of four nonaccrual loans, partially offset by additions of $4.6 million in other real

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Center Financial Corporation

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estate owned (OREO), $1.5 million in construction real estate loans and $473,000 in consumer loans. Total nonperforming assets as a percentage of gross loans and OREO improved to 2.63% as of June 30, 2009 from 3.38% at March 31, 2009.

Net charge-offs during the 2009 second quarter totaled $14.4 million, increasing year-to-date net charge-offs to $17.3 million. As a percentage of average loans, net charge-offs equaled 1.03% for the six months ended June 30, 2009, versus 0.17% for the comparable prior-year period.

Considering the comprehensive analysis of Center Financial’s total loan portfolio and accounting for directional consistency with respect to recent asset quality trends, the company posted a $29.8 million provision for loan losses in the 2009 second quarter. This provision exceeded net charge-offs during the quarter by $15.4 million and boosted the total allowance for loan losses to $65.2 million as of June 30, 2009, equaling 3.96% of gross loans. The 2009 first quarter provision for loan losses was $14.5 million, with the allowance for loan losses totaling $49.8 million as of March 31, 2009 and representing 2.99% of gross loans.

BALANCE SHEET SUMMARY & CAPITAL

Gross loans at June 30, 2009 totaled $1.65 billion, reflecting a decrease of $16.9 million from March 31, 2009 and a decrease of $170.7 million from June 30, 2008. The reductions are attributed to lower levels of loan production, higher levels of loan pay-offs and charge-offs in 2009, and the company’s strategic sale of commercial real estate and SBA loans in 2008. Net loans as a percentage of total assets declined to 69.7% at June 30, 2009 from 77.2% at March 31, 2009 and 84.4% at June 30, 2008, principally due to higher levels of liquidity on balance sheet.

Total deposits increased sharply to $1.85 billion at June 30, 2009 from $1.66 billion at March 31, 2009 and at June 30, 2008. The company’s marketing campaign initiated late in the preceding first quarter and targeting the non-ethnic consumer base resulted in increased money market deposits and time deposits. At June 30, 2009, money market deposits increased to $530.4 million from $470.7 million at March 31, 2009. Time deposits at the close of the 2009 second quarter rose to $932.0 million from $834.5 million at March 31, 2009. Noninterest-bearing demand deposits grew to $314.6 million at June 30, 2009 from $306.1 million at the end of the preceding first quarter. Savings deposits also increased to $78.0 million at June 30, 2009 from $52.7 million at March 31, 2009. Reflecting the significant increase in deposits, the company’s loan-to-deposit ratio equaled 85.2% at June 30, 2009, compared with 96.9% at March 31, 2009.

The average cost of interest-bearing deposits was 2.68% for the three months ended June 30, 2009, versus 2.73% for the three months ended March 31, 2009 and 3.72% for the prior-year second quarter.

Total assets at June 30, 2009 increased to $2.27 billion from $2.06 billion at year-end 2008, reflecting higher levels of liquidity on the balance sheet, offset in part by a continued reduction in the company’s loan portfolio. Average interest-earning assets for the 2009 second quarter equaled $2.08 billion, compared with $2.00 billion for the year-ago second quarter.

Total shareholders’ equity at June 30, 2009 was $200.0 million, compared with $211.7 million at March 31, 2009 and $214.6 million at December 31, 2008. As of June 30, 2009, the company’s tangible book value and tangible common equity as a percentage of total assets equaled $8.75 and 6.48%, respectively. This compares with tangible book value of $9.53 per share and tangible common equity to total assets of 7.78% as of December 31, 2008. Center Financial remains strongly capitalized, exceeding all regulatory guidelines. As of June 30, 2009, the company’s total risk-based capital ratio equaled 12.76%, Tier 1 risk-based capital ratio was 11.49%, and Tier 1 leverage ratio was 9.38%.

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Center Financial Corporation

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2009 SECOND QUARTER OPERATIONAL HIGHLIGHTS

Net interest income before provision for loan losses declined to $15.3 million for the three months ended June 30, 2009 from $15.9 million in the immediately preceding 2009 first quarter and $19.0 million in the second quarter of 2008. The company attributed the decrease to a shift in the asset mix, the reversal of interest on non-accrual loans and market rate reductions. The average yield on loans for the 2009 second quarter increased to 6.12% from 5.91% for the preceding first quarter, but was down by 82 basis points from the prior-year second quarter. The average yields on the investment portfolio were 4.14% for the 2009 second quarter, 4.53% for the preceding first quarter and 4.85% for the second quarter of 2008.

The company’s net interest margin for the 2009 second quarter was 2.96%, compared with 3.34% in the preceding first quarter and 3.81% in the second quarter a year ago. The compression in net interest margin principally reflects the decline in weighted average loan yields, decreasing loan balances, the reversal of previously accrued interest income on loans placed on non-accrual status during the quarter and higher balances in low-yielding Federal funds sold.

Noninterest income totaled $3.5 million in the 2009 second quarter, versus $3.7 million in the preceding first quarter. In the year-ago second quarter, noninterest income amounted to $3.9 million, which included a $630,000 gain on sale of loans.

Total noninterest expense increased to $11.7 million in the 2009 second quarter from $10.1 million in the preceding first quarter, as the company’s operational efficiencies were more than offset by a special FDIC deposit insurance assessment of $1.0 million. Notwithstanding this assessment and a significant hike in the regular FDIC insurance premiums, total noninterest expense for the 2009 second quarter was lower when compared with $12.3 million in the prior-year period, primarily due to a 21% reduction in compensation expenses. The special assessment fee adversely impacted the company’s efficiency ratio for the 2009 second quarter, which increased to 62.48% from 51.67% in the preceding first quarter and 53.49% in the 2008 second quarter.

Including the $29.8 million provision for loan losses and an income tax benefit of $10.0 million, Center Financial posted a net loss of $12.8 million, equal to $0.81 per share, for the 2009 second quarter. This compares with a net loss of $2.7 million, or $0.19 per share, for the 2009 first quarter, after a provision for loan losses of $14.5 million and an income tax benefit of $2.2 million. In the 2008 second quarter, the company posted net income of $5.3 million, equal to $0.32 per diluted share, after a provision for loan losses of $2.0 million and an income tax provision of $3.3 million.

For the 2009 second quarter, Center Financial posted a loss on average assets and loss on average equity of 2.32% and 23.95%, respectively. This compares with loss on average assets of 0.54% and loss on average equity of 4.94% in the preceding first quarter. For the year-ago second quarter, return on average assets equaled 1.00% and return on average equity was 12.97%.

“We believe the actions taken this quarter move the company significantly forward in managing credit risk in the current environment and will enable our management and board to redirect more of our focus on building franchise value,” Yoo said.

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Center Financial Corporation

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Investor Conference Call

The company will host an investor conference call at 9 a.m. PDT (12 noon EDT) on Thursday, July 23, 2009 to review the financial results for its second quarter ended June 30, 2009. The call will be open to all interested investors through a live, listen-only audio Web broadcast via the Internet at 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, July 30, 2009 by dialing 888-286-8010 (domestic) or 617-801-6888 (international) and entering replay passcode 14006319.

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 soundest financial institutions focusing on the Korean-American community, with total assets of $2.27 billion at June 30, 2009. Headquartered in Los Angeles, Center Bank operates a total of 19 full-service branches and one loan production office. The company has 16 full-service branches located throughout Southern California. Center Bank also operates two branches and one loan production office in the Seattle area, along with one branch in Chicago. Center Bank is a California state-chartered institution and its deposits are insured by the FDIC to the extent provided by law. For additional information on Center Bank, visit the company’s Web site at www.centerbank.com.

This release contains forward-looking statements, which are included in accordance with the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements are not guarantees of future performance and involve significant risks and uncertainties, and actual results and performance in future periods may be materially different from any future results or performance suggested by the forward-looking statements in this release. Factors that might cause such differences include, but are not limited to, those identified in our cautionary statements contained in Center Financial Corp.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2008 (See Business, and Management’s Discussion and Analysis), and other filings with the Securities and Exchange Commission (SEC) are incorporated herein by reference. These factors include, but are not limited to: competition in the financial services market for both deposits and loans; the ability of Center Financial and its subsidiaries to increase its customer base; changes in interest rates; new litigation or changes or adverse developments in existing litigation; and regional and general economic conditions. Such forward-looking statements speak only as of the date of this release. Center Financial expressly disclaims any obligation to update or revise any forward-looking statements found herein to reflect any changes in the company’s expectations of results or any change in events.

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CENTER FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited)

(Dollars in thousands)

	6/30/2009			12/31/2008
ASSETS
Cash and due from banks	$	37,153		$	45,129
Federal funds sold		263,240			50,435
Money market funds and interest-bearing deposits in other banks		53,047			2,647
Cash and cash equivalents		353,440			98,211
Securities available for sale, at fair value		219,368			173,833
Securities held to maturity, at amortized cost (fair value of $0 as of June 30, 2009 and $8,879 as of December 31, 2008)		-			8,861
Federal Home Loan Bank and Pacific Coast Bankers Bank stock, at cost		15,673			15,673
Loans, net of allowance for loan losses of $65,197 as of June 30, 2009 and $38,172 as of December 31, 2008		1,568,298			1,669,476
Loans held for sale, at the lower of cost or fair value		12,477			9,864
Premises and equipment, net		14,095			14,739
Customers’ liability on acceptances		2,927			4,503
Other real estate owned, net		4,567			-
Accrued interest receivable		7,668			7,477
Deferred income taxes, net		27,472			19,855
Investments in affordable housing partnerships		12,229			12,936
Cash surrender value of life insurance		12,190			11,992
Income tax receivable		9,221			2,327
Goodwill		1,253			1,253
Intangible assets, net		187			213
Other assets		6,573			5,396
Total	$	2,267,638		$	2,056,609
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Deposits:
Noninterest-bearing	$	314,621		$	310,154
Interest-bearing		1,540,327			1,293,365
Total deposits		1,854,948			1,603,519
Acceptances outstanding		2,927			4,503
Accrued interest payable		7,681			7,268
Other borrowed funds		168,321			193,021
Long-term subordinated debentures		18,557			18,557
Accrued expenses and other liabilities		15,411			15,174
Total liabilities		2,067,845			1,842,042
Commitments and Contingencies		-			-
Shareholders' Equity
Preferred stock, par value of $1,000 per share; authorized 10,000,000 shares; issued and outstanding, 55,000 shares as of June 30, 2009 and December 31, 2008, respectively		53,061			52,959
Common stock, no par value; authorized 40,000,000 shares; issued and outstanding, 16,789,080 shares (including 11,550 shares and 10,400 shares of unvested restricted stock) as of June 30, 2009 and December 31, 2008		74,732			74,254
Retained earnings		68,866			85,846
Accumulated other comprehensive income, net of tax		3,134			1,508
Total shareholders’ equity		199,793			214,567
Total	$	2,267,638		$	2,056,609
Book value per common share	$	8.84		$	9.62
Tangible book value	$	8.75		$	9.53
Tangible common equity to total assets		6.48	%		7.78	%

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
	6/30/09			3/31/09			6/30/08			6/30/09			6/30/08
Interest and Dividend Income:
Interest and fees on loans	$	24,742		$	24,311		$	31,369		$	49,053		$	64,979
Interest on federal funds sold		114			35			25			149			66
Interest on investment securities		2,343			2,291			2,168			4,634			4,196
Total interest and dividend income		27,199			26,637			33,562			53,836			69,241
Interest Expense:
Interest on deposits		9,913			8,725			12,157			18,637			26,194
Interest on borrowed funds		1,782			1,818			2,188			3,600			4,905
Interest expense on trust preferred securities		181			192			258			373			584
Total interest expense		11,876			10,735			14,603			22,610			31,683
Net interest income before provision for loan losses		15,323			15,902			18,959			31,226			37,558
Provision for loan losses		29,835			14,451			2,047			44,287			4,209
Net interest (loss) income after provision for loan losses		(14,512	)		1,451			16,912			(13,061	)		33,349
Noninterest Income:
Customer service fees		2,022			1,973			1,913			3,996			3,726
Fee income from trade finance transactions		587			548			672			1,136			1,273
Wire transfer fees		279			267			293			546			553
Gain on sale of loans		-			-			630			-			960
Net loss on sale of securities available for sale		-			(49	)		-			(49	)		-
Loan service fees		185			275			48			459			301
Other income		401			724			387			1,124			770
Total noninterest income		3,474			3,738			3,943			7,212			7,583
Noninterest Expense:
Salaries and employee benefits		4,684			4,289			5,924			8,973			13,044
Occupancy		1,248			1,182			1,119			2,430			2,160
Furniture, fixtures and equipment		517			528			500			1,045			992
Data processing		522			595			577			1,117			1,099
Legal fees		408			243			971			650			1,601
Accounting and other professional fees		352			410			381			762			718
Business promotion and advertising		344			338			494			682			956
Stationery and supplies		105			109			157			214			288
Telecommunications		152			169			179			321			348
Postage and courier service		47			146			191			193			392
Security service		261			245			294			506			568
Regulatory assessment		1,642			592			352			2,235			640
Other operating expenses		1,463			1,302			1,112			2,765			2,682
Total noninterest expense		11,745			10,148			12,251			21,893			25,488
(Loss) income before income tax (benefit) provision		(22,783	)		(4,959	)		8,604			(27,742	)		15,444
Income tax (benefit) provision		(9,996	)		(2,233	)		3,325			(12,229	)		5,945
Net (loss) income		(12,787	)		(2,726	)		5,279			(15,513	)		9,499
Preferred stock dividends and accretion of preferred stock discount		(739	)		(731	)		-			(1,470	)		-
Net (loss) income available to common shareholders		(13,526	)		(3,457	)		5,279			(16,983	)		9,499
Other comprehensive income (loss) - unrealized gain (loss) on available-for-sale securities, net of income tax (expense) benefit of ($1,644), $1,532, ($1,845) and $975		2,270			278			(2,115	)		1,226			(1,346	)
Comprehensive (loss) income	$	(10,517	)	$	(2,448	)	$	3,164		$	(14,287	)	$	8,153
EARNINGS PER SHARE:
Basic	$	(0.81	)	$	(0.21	)	$	0.32		$	(1.01	)	$	0.58
Diluted	$	(0.81	)	$	(0.21	)	$	0.32		$	(1.01	)	$	0.58
Weighted average shares outstanding - basic		16,789,080			16,789,080			16,367,475			16,789,080			16,367,608
Weighted average shares outstanding - diluted		16,789,080			16,789,080			16,399,197			16,789,080			16,401,955

CENTER FINANCIAL CORPORATION

SELECTED FINANCIAL DATA

(Unaudited) (Dollars in thousands)

	Three Months Ended
	6/30/09				3/31/09				6/30/08
	Average Balance		Rate/ Yield		Average Balance		Rate/ Yield		Average Balance		Rate/ Yield
Assets:
Interest-earning assets:
Loans	$	1,622,366	6.12	%	$	1,668,873	5.91	%	$	1,816,960	6.94	%
Federal funds sold		227,678	0.20			56,598	0.25			4,745	2.12
Investments		227,014	4.14			205,180	4.53			179,755	4.85
Total interest-earning assets		2,077,058	5.25			1,930,651	5.60			2,001,460	6.74
Noninterest-earning assets:
Cash and due from banks		53,934				41,163				56,875
Bank premises and equipment, net		14,382				14,750				14,526
Customers' acceptances outstanding		3,073				3,851				5,411
Accrued interest receivables		7,037				6,853				7,499
Other assets		53,653				45,940				37,762
Total noninterest-earning assets		132,079				112,557				122,073
Total assets	$	2,209,137			$	2,043,208			$	2,123,533
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Deposits:
Money market and NOW accounts	$	492,730	2.09	%	$	452,204	1.99	%	$	358,778	2.89	%
Savings		63,569	3.48			51,343	3.56			54,429	3.35
Time certificates of deposit over $100,000		582,390	2.91			484,393	3.08			697,414	4.07
Other time certificates of deposit		344,761	2.99			308,618	3.13			204,480	4.06
		1,483,450	2.68			1,296,558	2.73			1,315,101	3.72
Other borrowed funds		168,147	4.25			176,864	4.17			244,631	3.60
Long-term subordinated debentures		18,557	3.91			18,557	4.20			18,557	5.59
Total interest-bearing liabilities		1,670,154	2.85			1,491,979	2.92			1,578,289	3.72
Noninterest-bearing liabilities:
Demand deposits		304,931				305,690				356,309
Total funding liabilities		1,975,085	2.41	%		1,797,669	2.42	%		1,934,598	3.04	%
Other liabilities		19,937				21,799				25,262
Total noninterest-bearing liabilities		324,868				327,489				381,571
Shareholders' equity		214,115				223,740				163,673
Total liabilities and shareholders' equity	$	2,209,137			$	2,043,208			$	2,123,533
Net interest income
Cost of deposits			2.22	%			2.21	%			2.93	%
Net interest spread			2.40	%			2.68	%			3.02	%
Net interest margin			2.96	%			3.34	%			3.81	%

CENTER FINANCIAL CORPORATION

SELECTED FINANCIAL DATA

(Unaudited) (Dollars in thousands)

	Six Months Ended June 30,
	2009				2008
	Average Balance		Rate/ Yield		Average Balance		Rate/ Yield
Assets:
Interest-earning assets:
Loans	$	1,645,491	6.01	%	$	1,816,817	7.19	%
Federal funds sold		142,610	0.21			4,748	2.80
Investments		216,157	4.32			171,359	4.92
Total interest-earning assets		2,004,258	5.42			1,992,924	6.99
Noninterest-earning assets:
Cash and due from banks		47,584				58,432
Bank premises and equipment, net		14,565				14,257
Customers' acceptances outstanding		3,460				4,400
Accrued interest receivables		6,946				7,849
Other assets		49,818				38,210
Total noninterest-earning assets		122,373				123,148
Total assets	$	2,126,631			$	2,116,072
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Deposits:
Money market and NOW accounts	$	472,579	2.05	%	$	328,173	3.23	%
Savings		57,490	3.52			54,129	3.34
Time certificates of deposit over $100,000		533,662	2.98			710,889	4.41
Other time certificates of deposit		326,789	3.05			202,905	4.36
		1,390,520	2.70			1,296,096	4.06
Other borrowed funds		172,481	4.21			260,884	3.78
Long-term subordinated debentures		18,557	4.05			18,557	6.33
Total interest-bearing liabilities		1,581,558	2.88			1,575,537	4.04
Noninterest-bearing liabilities:
Demand deposits		305,308				353,708
Total funding liabilities		1,886,866	2.42	%		1,929,245	3.30	%
Other liabilities		20,864				24,176
Total noninterest-bearing liabilities		326,172				377,884
Shareholders' equity		218,901				162,651
Total liabilities and shareholders' equity	$	2,126,631			$	2,116,072
Net interest income
Cost of deposits			2.22	%			3.19	%
Net interest spread			2.53	%			2.94	%
Net interest margin			3.14	%			3.79	%

CENTER FINANCIAL CORPORATION

SELECTED FINANCIAL DATA

(Unaudited) (Dollars in thousands)

	As of the Dates Indicated
	6/30/09		3/31/09		12/31/08		9/30/08		6/30/08
Loans
Real Estate:
Construction	$	37,224	$	53,072	$	61,983	$	62,296	$	62,072
Commercial		1,104,496		1,131,682		1,134,793		1,157,286		1,191,097
Commercial		320,005		313,065		334,350		336,929		352,220
Trade Finance		52,000		48,813		63,479		70,395		81,399
SBA		38,401		37,962		37,027		38,069		39,310
Consumer and other		95,417		79,868		88,423		93,053		92,157
Total Gross Loans		1,647,543		1,664,462		1,720,055		1,758,028		1,818,255
Less:
Allowance for Losses		65,197		49,778		38,172		21,485		21,499
Deferred Loan Fees		555		1,188		1,359		1,488		1,688
Discount on SBA Loans Retained		1,016		1,102		1,184		1,284		1,296
Total Net Loans and Loans Held for Sale	$	1,580,775	$	1,612,394	$	1,679,340	$	1,733,771	$	1,793,772
As a percentage of total gross loans:
Real estate:
Construction		2.3%		3.2%		3.6%		3.5%		3.4%
Commercial		67.0%		68.0%		66.0%		65.8%		65.5%
Commercial		19.4%		18.8%		19.4%		19.2%		19.4%
Trade finance		3.2%		2.9%		3.7%		4.0%		4.5%
SBA		2.3%		2.3%		2.2%		2.2%		2.2%
Consumer		5.8%		4.8%		5.1%		5.3%		5.0%
Total gross loans		100.0%		100.0%		100.0%		100.0%		100.0%
	As of the Dates Indicated
	6/30/09		3/31/09		12/31/08		9/30/08		6/30/08
Deposits
Demand deposits (noninterest-bearing)	$	314,621	$	306,112	$	310,154	$	367,171	$	378,835
Money market accounts and NOW		530,410		470,741		447,275		425,156		375,606
Savings		77,958		52,683		52,692		54,520		55,281
		922,989		829,536		810,121		846,847		809,722
Time deposits
Less than $100,000		335,440		321,456		312,136		218,498		191,310
$100,000 or more		596,519		513,076		481,262		553,931		657,658
Total deposits	$	1,854,948	$	1,664,068	$	1,603,519	$	1,619,276	$	1,658,690
As a percentage of total deposits:
Demand deposits (noninterest-bearing)		17.0%		18.4%		19.3%		22.7%		22.8%
Money market accounts and NOW		28.6%		28.3%		27.9%		26.3%		22.6%
Savings		4.2%		3.2%		3.3%		3.3%		3.4%
		49.8%		49.9%		50.5%		52.3%		48.8%
Time deposits
Less than $100,000		18.1%		19.3%		19.5%		13.5%		11.5%
$100,000 or more		32.1%		30.8%		30.0%		34.2%		39.7%
Total deposits		100.0%		100.0%		100.0%		100.0%		100.0%

CENTER FINANCIAL CORPORATION

SELECTED FINANCIAL DATA (Unaudited)

(Dollars in thousands)

	June 30, 2009			March 31, 2009			December 31, 2008			June 30, 2008
Nonperforming loans:
Construction Real Estate	$	16,973		$	15,451		$	1,951		$	2,152
Commercial Real Estate		4,516			18,870			13,128			-
Commercial		13,577			18,582			2,272			1,434
Consumer		889			416			369			380
Trade Finance		1,196			1,196			1,196			2,276
SBA		1,774			1,774			1,538			2,454
Total nonperforming loans		38,925			56,289			20,454			8,696
Other real estate owned		4,567			-			-			-
Total nonperforming assets		43,492			56,289			20,454			8,696
Guaranteed portion of nonperforming loans with SBA guarantee		2,448			2,408			2,110			2,755
Total nonperforming assets, net of SBA guarantee	$	41,044		$	53,881		$	18,344		$	5,941
Nonperforming loans as a percent of total gross loans		2.36	%		3.38	%		1.19	%		0.48	%
Nonperforming assets as a percent of total loans and other real estate owned		2.63	%		3.38	%		1.19	%		0.48	%
Delinquent loans 30-89 days past due	$	29,740		$	26,931		$	16,737		$	2,934
Total nonperforming loans		38,925			56,289			20,454			8,696
Total delinquent loans	$	68,665		$	83,220		$	37,190		$	11,630
	Six Months Ended June 30, 2009			Three Months Ended March 31, 2009			Year Ended December 31, 2008			Six Months Ended June 30, 2008
Balances
Average total loans outstanding during the period	$	1,682,918		$	1,678,518		$	1,800,972		$	1,838,280
Total loans outstanding at end of period 1	$	1,645,972		$	1,662,172		$	1,717,511		$	1,815,271
Allowance for Loan Losses:
Balance at beginning of period	$	38,172		$	38,172		$	20,477		$	20,477
Charge-offs:
Construction Real Estate		2,727			931			402			201
Commercial Real Estate		4,448			70			319			319
Commercial		8,780			1,236			4,403			2,257
Consumer		1,104			605			2,040			472
SBA		417			129			581			144
Trade Finance					-			1,144			-
Total charge-offs		17,476			2,971			8,889			3,393
Recoveries
Commercial		43			25			128			74
Consumer		140			78			131			56
SBA		30			22			135			76
Trade Finance		1			1			12			-
Total recoveries		214			126			406			206
Net loan charge-offs		17,262			2,845			8,483			3,187
Provision for loan losses		44,287			14,451			26,178			4,209
Balance at end of period	$	65,197		$	49,778		$	38,172		$	21,499
Ratios:
Net loan charge-offs to average loans		1.03	%		0.17	%		0.47	%		0.17	%
Provision for loan losses to average total loans		2.63			0.86			1.45			0.23
Allowance for loan losses to gross loans at end of period		3.96			2.99			2.22			1.18
Allowance for loan losses to total nonperforming loans		168			88			187			247
Net loan charge-offs to allowance for loan losses at end of period		26.48			5.72			22.22			14.82
Net loan charge-offs to provision for loan losses		38.98			19.69			32.41			75.72

¹ Net of deferred loan fees and discount on SBA loans sold

CENTER FINANCIAL CORPORATION

SELECTED FINANCIAL DATA (Unaudited)

	Three Months Ended						Six Months Ended
	6/30/09		3/31/09		6/30/08		6/30/09		6/30/08
Performance ratios:
(Loss) return on average assets	(2.32	)    %	(0.54	)    %	1.00	%	(1.47	)    %	0.90	%
(Loss) return on average equity	(23.95	)	(4.94	)	12.97		(14.29	)	11.74
Efficiency ratio	62.48		51.67		53.49		56.96		56.46
Net loans to total deposits at period end	85.22		96.89		108.14		85.22		108.10
Net loans to total assets at period end	69.71		77.19		84.37		69.71		84.37

	As of the Dates Indicated
	6/30/09		3/31/09		6/30/08
Capital ratios:
Leverage capital ratio
Consolidated Company	9.38	%	11.04	%	8.51	%
Center Bank	8.88		10.41		8.46
Tier 1 risk-based capital ratio
Consolidated Company	11.49		12.53		9.49
Center Bank	10.84		11.81		9.43
Total risk-based capital ratio
Consolidated Company	12.76		13.80		10.63
Center Bank	12.11		13.08		10.57