Attached files
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| 8-K - CENTER FINANCIAL CORPORATION 8-K - CENTER FINANCIAL CORP | a50040989.htm |
Exhibit 99.1
Center Financial Reports Record Results for 2011 Third Quarter
-- Strong Quarter Reflects Core Operations Supported by Continued Reduction in Credit Costs --
LOS ANGELES--(BUSINESS WIRE)--October 24, 2011--Center Financial Corporation (NASDAQ: CLFC), today reported record financial results, posting net income of $9.4 million, equal to $0.22 per diluted common share, for its 2011 third quarter. This compares with prior-year third quarter net income of $6.0 million, or $0.13 per diluted common share.
“Center Financial’s 2011 third quarter was an outstanding quarter on numerous fronts,” said Richard S. Cupp, president and chief executive officer. “First, the steady, consistent and sustainable improvements in the overall condition of the bank led to the lifting of Center Bank’s informal memorandum of understanding with the FDIC and California DFI. Second, our shareholders showed their support for the proposed merger agreement with Nara Bancorp with an overwhelming approval of the transaction. And finally, this quarter represents a record performance in terms of earnings for any given quarter in the 25-year history of the company. This performance was supported by positive trends and improvements in asset quality, loans and deposits and operations. With these achievements, we believe we are well poised to complete our merger of equals with Nara later this year, upon receipt of all required regulatory approvals.”
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2011 THIRD QUARTER FINANCIAL HIGHLIGHTS |
||||||||||||||
| At or for the Three Months Ended | ||||||||||||||
| 9/30/2011 | 6/30/2011 | 9/30/2010 | ||||||||||||
| Net income | $ | 9,393 | $ | 4,895 | $ | 5,963 | ||||||||
| Net income available to common shareholders | $ | 8,636 | $ | 4,141 | $ | 5,215 | ||||||||
| Net income per diluted common share | $ | 0.22 | $ | 0.10 | $ | 0.13 | ||||||||
| Gain on sale of loans | $ | 1,896 | $ | 1,800 | $ | 257 | ||||||||
| Income before income tax provision (benefit) | $ | 9,808 | $ | 5,180 | $ | 5,117 | ||||||||
| Income tax provision (benefit) | $ | 415 | $ | 285 | $ | (846 | ) | |||||||
| Net interest margin | 3.19 | % | 3.21 | % | 3.20 | % | ||||||||
| Total risk-based capital ratio | 21.10 | % | 20.67 | % | 19.32 | % | ||||||||
| Tier 1 leverage ratio | 13.51 | % | 13.20 | % | 12.55 | % | ||||||||
| Tangible common equity per common share | $ | 6.00 | $ | 5.76 | $ | 5.41 | ||||||||
| Tangible common equity to tangible assets | 10.62 | % | 10.14 | % | 9.52 | % | ||||||||
| Non-covered nonperforming loans, net of SBA guarantee | $ | 29,022 | $ | 36,044 | $ | 40,159 | ||||||||
| Delinquent non-covered loans 30 to 89 days past due, net of SBA guarantee | $ | 2,387 | $ | 6,138 | $ | 10,788 | ||||||||
| Non-covered net loan charge-offs | $ | 3,692 | $ | 6,420 | $ | 7,975 | ||||||||
| Provision for loan losses | $ | 1,200 | $ | 5,000 | $ | 4,000 | ||||||||
| Allowance for non-covered loan losses to total non-covered loans | 3.21 | % | 3.41 | % | 3.71 | % | ||||||||
| Total non-covered loans | $ | 1,469,433 | $ | 1,455,423 | $ | 1,467,201 | ||||||||
| Total deposits | $ | 1,796,904 | $ | 1,791,981 | $ | 1,792,281 | ||||||||
| Noninterest-bearing deposits as a % of total deposits | 27.8 | % | 25.5 | % | 21.4 | % | ||||||||
| Annualized average cost of deposits | 0.86 | % | 0.96 | % | 1.13 | % | ||||||||
2011 THIRD QUARTER OPERATIONAL HIGHLIGHTS
Net interest income before provision for loan losses for the 2011 third quarter rose to $17.2 million from $17.0 million in the preceding second quarter and $17.1 million in the prior-year third quarter.
The average yield on loans of 5.40% for the 2011 third quarter reflects continuing pressures from the prolonged low interest rate environment. This compares with 5.54% in the preceding second quarter and 5.85% in the 2010 third quarter. The average cost of interest-bearing deposits continued to improve, decreasing to 1.16% for the 2011 third quarter from 1.27% for the 2011 second quarter and from 1.44% for the 2010 third quarter. Total cost of deposits improved to 0.86% for the 2011 third quarter, compared with 0.96% for the 2011 second quarter and 1.13% for the prior-year third quarter. The company’s net interest margin (NIM) for the 2011 third quarter remained relatively stable at 3.19%, compared with 3.21% in the preceding second quarter and 3.20% in the prior-year third quarter.
Noninterest income was also steady at $6.0 million for the 2011 third quarter, compared with $6.0 million in the preceding second quarter. These periods include gains on sale of loans from its SBA portfolio of $1.9 million and $1.8 million, respectively, and reflect the company’s practice of selling approximately $20 million of SBA loans on a quarterly basis, which practice began in the 2010 fourth quarter. In the 2010 third quarter, noninterest income totaled $4.4 million and included a gain on sale of loans of $257,000.
Total noninterest expense for the 2011 third quarter declined to $12.2 million, compared with $12.8 million in the preceding second quarter and $12.4 million in the prior-year third quarter. The company’s efficiency ratio for the 2011 third quarter improved to 52.49% from 55.66% in the preceding second quarter and 57.61% in the 2010 third quarter.
An income tax provision of $415,000 for the 2011 third quarter reflects a reduction in the company’s deferred tax asset (DTA) valuation allowance by approximately $3.4 million from the June 30, 2011 balance. The income tax provision for the preceding second quarter was $285,000, and the company posted an income tax benefit for the 2010 third quarter of $846,000.
For the 2011 third quarter, Center Financial posted record quarterly net income of $9.4 million and net income available to common shareholders of $8.6 million, equal to $0.22 per diluted common share. For the preceding 2011 second quarter, net income amounted to $4.9 million and net income available to common shareholders of $4.1 million, equal to $0.10 per diluted common share. For the 2010 third quarter, net income amounted to $6.0 million and net income available to common shareholders was $5.2 million, equal to $0.13 per diluted common share.
For the 2011 third quarter, Center Financial’ return on average assets (ROAA) improved significantly to 1.63% from 0.86% in the preceding second quarter and 1.04% in the 2010 third quarter. Return on average equity (ROAE) rose considerably to 12.89%, from 6.97% in the preceding second quarter and 8.83% in the 2010 third quarter.
ASSET QUALITY
At September 30, 2011, total non-covered nonperforming assets net of SBA guarantees declined to $30.0 million from $36.2 million at June 30, 2011 and $44.7 million at September 30, 2010. As a percentage of gross non-covered loans and other real estate owned (OREO), total non-covered nonperforming assets net of SBA guarantees was 2.04% at September 30, 2011, compared with 2.49% at June 30, 2011 and 3.04% at September 30, 2010. As of September 30, 2011, the company’s non-covered OREO portfolio had a carrying value of $947,000, compared with carrying values of $133,000 at June 30, 2011 and $4.5 million at September 30, 2010.
Non-covered nonperforming loans net of SBA guarantees declined to $29.0 million at September 30, 2011 from $36.0 million at June 30, 2011, as outflows of $10.8 million exceeded new inflows of $3.7 million into nonperforming status. Of the new nonaccruals, Commercial real estate (CRE) and commercial and industrial (C&I) loans accounted for the bulk of new nonaccruals, representing 78% and 18%, respectively. During the 2011 third quarter, the company initiated a relatively small bulk sale that included 11 loans aggregating $5.0 million and concluded the transaction in October 2011. Including this $5.0 million, a total loan balance of $10.2 million was transferred to loans held for sale during the 2011 third quarter. At the close of the 2010 third quarter, non-covered nonperforming loans net of SBA guarantees totaled $40.2 million.
Delinquent non-covered loans 30 to 89 days past due net of SBA guarantees declined to $2.4 million at September 30, 2011 from $6.1 million at June 30, 2011 from $10.4 million at March 31, 2011, as the levels of inflows into non-covered past due status posted another decline from the preceding quarter. Non-covered loans past due 30 to 89 days at September 30, 2010 totaled $10.8 million.
Performing troubled debt restructurings (TDRs) that are not accounted for in non-covered nonaccrual or delinquent loans increased to $34.2 million at September 30, 2011 from $19.1 million at June 30, 2011 and $23.9 million at September 30, 2010. The company noted the increase in performing TDRs from the preceding quarter includes a concession of interest rates related to one large credit with a balance of $7.2 million.
Non-covered loan net charge-offs during the 2011 third quarter fell to $3.7 million, compared with $6.4 million in the preceding 2011 second quarter and from $8.0 million in the year-ago third quarter.
Largely reflecting the steady and continuing asset quality improvements and a considerable reduction in net loan charge-off levels, Center Financial recorded a provision for loan losses of $1.2 million in the 2011 third quarter. This compares with a provision for loan losses of $5.0 million in the preceding second quarter and $4.0 million in the third quarter a year ago.
At September 30, 2011, the company’s allowance for loan losses for non-covered loans totaled $47.1 million, reflecting decreases from $49.6 million at June 30, 2011 and $54.5 million at September 30, 2010. As a percentage of gross non-covered loans, the allowance for loan losses equaled 3.21% at September 30, 2011, 3.41% at June 30, 2011, and 3.71% at September 30, 2010.
LOANS & DEPOSITS
Non-covered loans at September 30, 2011 rose moderately to $1.47 billion from $1.46 billion at June 30, 2011, but was down when compared with $1.53 billion at December 31, 2010. Covered loans at September 30, 2011 declined to $93.6 million from $102.6 million at June 39, 2011 and $117.3 million at December 31, 2010. Total loans at September 30, 2011 amounted to $1.56 billion.
Total deposits at September 30, 2011 rose moderately to $1.80 billion from $1.79 billion at June 30, 2011 and from $1.77 billion at December 31, 2010. The company posted a 9.3% sequential increase in noninterest-bearing demand deposits, which increased the contribution to total deposits to 27.8% at September 30, 2011, compared with 25.5% at June 30, 2011. The sizeable increase in noninterest-bearing demand deposits was partially offset by a strategic reduction in higher rate money market accounts. The company’s loan-to-deposit ratio equaled 84.2% at September 30, 2011, compared with 84.1% at June 30, 2011 and 89.9% at December 31, 2010.
BALANCE SHEET SUMMARY & CAPITAL
Total assets at September 30, 2011 amounted to $2.26 billion, compared with $2.27 billion at June 30, 2011 and December 31, 2010. Average interest-earning assets equaled $2.14 billion for the 2011 third quarter, compared with $2.13 billion for the 2011 second quarter and $2.14 billion for the 2010 fourth quarter.
Total shareholders’ equity at September 30, 2011 rose to $294.7 million from $285.0 million at June 30, 2011 and from $274.0 million at December 31, 2010. Tangible common equity per common share, which is a non-GAAP financial measure, increased to $6.00 at September 30, 2011 from $5.76 at June 30, 2011 and $5.49 at December 31, 2010. Tangible common equity as a percentage of tangible assets, which is a non-GAAP financial measure, rose to 10.62% at September 30, 2011 from 10.14% at June 30, 2011 and from 9.65% at December 31, 2010.
With its seventh consecutive profitable quarter of operations, Center Financial’s capital position further strengthened and continued to be well in excess of both minimum guidelines for “well-capitalized” institutions and regulatory requirements. At September 30, 2011, Total Risk-Based capital ratio was 21.10%, Tier 1 Risk-Based capital ratio equaled 19.83% and Tier 1 Leverage ratio amounted to 13.51%, all reflecting increases from the levels at June 30, 2011 and December 31, 2010.
Use of Non-GAAP Financial Measures
This news release includes “non-GAAP financial measures” within the meaning of the Securities and Exchange Commission rules. Tangible common equity per common share and tangible common equity to tangible assets are non-GAAP financial measures. Tangible common equity was calculated as total shareholders’ equity less preferred stock and related dividend and accretion of preferred stock discount and net intangible assets. Tangible common equity to tangible assets represents tangible common equity divided by total assets less net intangible assets. The calculation of tangible common equity may differ among companies in light of diversity in presentation in the marketplace. Management believes that these measures are useful when comparing banks with preferred stock due to TARP funding to banks without preferred stock on their balance sheet and for evaluating a company’s capital levels. This information is being provided in response to market participant interest in these financial metrics. This information is not intended to be considered in isolation or as a substitute for the relevant measures calculated in accordance with U.S. GAAP. The reconciliations of these non-GAAP financial measures to GAAP financial measure included in this news release are attached herein.
Investor Conference Call
The company will host an investor conference call on Tuesday, October 25, 2011 at 10 a.m. PDT (1 p.m. EDT) to review financial results for its 2011 third quarter. The institutional investment community is invited to participate in the call by dialing 800-295-3991 (domestic) or 617-614-3924 (international) and entering passcode 52881668. Other interested parties are invited to listen to the live call through a listen-only audio Web broadcast via the Internet in the Investor Relations section of www.centerbank.com. Listeners are encouraged to visit the Web site at least 15 minutes prior to the start of the scheduled presentation to register, download and install any necessary audio software. For those who are not available to listen to the live broadcast, the audio broadcast will be archived for one year. A telephonic replay of the call will be available through Monday, October 31, 2011 by dialing 888-286-8010 (domestic) or 617-801-6888 (international) and entering replay passcode 74499659.
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 leading financial institutions focusing on the Korean-American community, with total assets of $2.26 billion at September 30, 2011. Headquartered in Los Angeles, Center Bank operates a total of 21 full-service branches and two loan production offices. The company has 16 full-service branches located throughout Southern California and two branches in Northern California. Center Bank also operates two branches and one loan production office in the Seattle area, one branch in Chicago and a loan production office in Denver. 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, 2010, as amended (See Business, and Management’s Discussion and Analysis), and other filings with the SEC are incorporated herein by reference. These factors include, but are not limited to: the health of the national and California economies; competition in the financial services market for both deposits and loans; the ability of Center Financial and its subsidiaries to increase its customer base; customers’ service expectations; changes in interest rates; loan portfolio performance; the company’s ability to sustain profitable operations; and the company’s ability to capitalize on strategic growth opportunities. Factors also include, but are not limited to: the successful completion of the proposed merger of equals between Center Financial Corporation and Nara Bancorp; difficulties and delays in integrating the two institutions and achieving anticipated synergies, cost savings and other benefits from the transaction; higher than anticipated transaction costs; deposit attrition, operating costs, customer loss and business disruption following the merger, including difficulties in maintaining relationships with employees; the companies’ ability to receive required regulatory and shareholder approvals. Such forward-looking statements speak only as of the date of this release. Center Financial expressly disclaims any obligation to update or revise any forward-looking statements found herein to reflect any changes in the company’s expectations of results or any change in events.
| CENTER FINANCIAL CORPORATION | ||||||||||||
| CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited) | ||||||||||||
| (Dollars in thousands) | ||||||||||||
| 9/30/11 | 6/30/11 | 12/31/10 | ||||||||||
| ASSETS | ||||||||||||
| Cash and due from banks | $ | 41,644 | $ | 33,738 | $ | 28,181 | ||||||
| Federal funds sold | 870 | 650 | 136,180 | |||||||||
| Money market funds and interest-bearing deposits in other banks | 263,631 | 298,040 | 94,559 | |||||||||
| Cash and cash equivalents | 306,145 | 332,428 | 258,920 | |||||||||
| Securities available for sale, at fair value | 310,983 | 305,058 | 289,551 | |||||||||
| Non-covered loans held for sale, at the lower of cost or fair value | 66,608 | 58,776 | 60,234 | |||||||||
| Federal Home Loan Bank and FRB stock, at cost | 13,199 | 13,810 | 15,019 | |||||||||
|
Non-covered loans, net of allowance for loan losses of $47,098 and $52,047 as of Sep 30, 2011 and December 31, 2010, respectively |
1,353,440 | 1,345,740 | 1,415,646 | |||||||||
| Covered loans, net of allowance for loan losses of $1,010 as of Sep 30, 2011 and December 31, 2010 | 92,581 | 101,597 | 116,283 | |||||||||
| Premises and equipment, net | 12,281 | 12,659 | 13,532 | |||||||||
| Core deposit intangible, net | 418 | 434 | 464 | |||||||||
| Customers' liability on acceptances | 3,313 | 2,748 | 2,287 | |||||||||
| Non-covered other real estate owned | 947 | 133 | 937 | |||||||||
| Covered other real estate owned | 1,028 | 1,132 | 1,459 | |||||||||
| Accrued interest receivable | 5,089 | 5,096 | 5,509 | |||||||||
| Deferred income taxes, net | 19,995 | 13,898 | 14,383 | |||||||||
| Investments in affordable housing partnerships | 9,876 | 10,110 | 10,824 | |||||||||
| Cash surrender value of life insurance | 18,147 | 17,991 | 12,791 | |||||||||
| Income tax receivable | 13,236 | 13,216 | 14,277 | |||||||||
| Prepaid assessment fees | 5,387 | 5,949 | 7,864 | |||||||||
| FDIC loss share receivable | 17,503 | 21,964 | 23,991 | |||||||||
| Other assets | 6,911 | 5,588 | 6,308 | |||||||||
| Total | $ | 2,257,087 | $ | 2,268,327 | $ | 2,270,279 | ||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||
| Liabilities | ||||||||||||
| Deposits: | ||||||||||||
| Noninterest-bearing | $ | 499,556 | $ | 457,182 | $ | 396,973 | ||||||
| Interest-bearing | 1,297,348 | 1,334,799 | 1,374,021 | |||||||||
|
Total deposits |
1,796,904 | 1,791,981 | 1,770,994 | |||||||||
| Acceptances outstanding | 3,313 | 2,748 | 2,287 | |||||||||
| Accrued interest payable | 4,317 | 4,660 | 5,113 | |||||||||
| Other borrowed funds | 132,130 | 157,299 | 188,670 | |||||||||
| Long-term subordinated debentures | 18,557 | 18,557 | 18,557 | |||||||||
| Accrued expenses and other liabilities | 7,186 | 8,043 | 10,646 | |||||||||
| Total liabilities | 1,962,407 | 1,983,288 | 1,996,267 | |||||||||
| Commitments and Contingencies | ||||||||||||
| Shareholders' Equity | ||||||||||||
| Preferred stock, Series A | 53,607 | 53,538 | 53,409 | |||||||||
| Common stock | 188,208 | 188,031 | 187,754 | |||||||||
| Retained earnings | 48,914 | 40,277 | 32,000 | |||||||||
| Accumulated other comprehensive income, net of tax | 3,951 | 3,193 | 849 | |||||||||
| Total shareholders' equity | 294,680 | 285,039 | 274,012 | |||||||||
| Total | $ | 2,257,087 | $ | 2,268,327 | $ | 2,270,279 | ||||||
| Tangible common equity per common share | $ | 6.00 | $ | 5.76 | $ | 5.49 | ||||||
| Tangible common equity to tangible assets | 10.62 | % | 10.14 | % | 9.65 | % | ||||||
| CENTER FINANCIAL CORPORATION | |||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Unaudited) | |||||||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||
| 9/30/11 | 6/30/11 | 9/30/10 | 9/30/11 | 9/30/10 | |||||||||||||||||
| Interest and Dividend Income: | |||||||||||||||||||||
| Interest and fees on loans | $ | 20,668 | $ | 20,755 | $ | 22,472 | $ | 62,584 | $ | 64,430 | |||||||||||
| Interest on federal funds sold | 1 | 1 | 127 | 44 | 289 | ||||||||||||||||
| Interest on investment securities | 2,011 | 2,109 | 1,499 | 5,902 | 7,290 | ||||||||||||||||
| Interest on money market funds and interest-earning deposits | 182 | 211 | 41 | 487 | 111 | ||||||||||||||||
| Total interest and dividend income | 22,862 | 23,076 | 24,139 | 69,017 | 72,120 | ||||||||||||||||
| Interest Expense: | |||||||||||||||||||||
| Interest on deposits | 3,947 | 4,294 | 5,137 | 12,875 | 15,658 | ||||||||||||||||
| Interest on borrowed funds | 1,570 | 1,648 | 1,747 | 4,760 | 5,021 | ||||||||||||||||
| Interest expense on long-term subordinated debentures | 143 | 142 | 155 | 427 | 438 | ||||||||||||||||
| Total interest expense | 5,660 | 6,084 | 7,039 | 18,062 | 21,117 | ||||||||||||||||
| Net interest income before provision for loan losses | 17,202 | 16,992 | 17,100 | 50,955 | 51,003 | ||||||||||||||||
| Provision for loan losses | 1,200 | 5,000 | 4,000 | 12,200 | 16,000 | ||||||||||||||||
| Net interest income after provision for loan losses | 16,002 | 11,992 | 13,100 | 38,755 | 35,003 | ||||||||||||||||
| Noninterest Income: | |||||||||||||||||||||
| Customer service fees | 1,727 | 1,782 | 2,043 | 5,308 | 6,161 | ||||||||||||||||
| Fee income from trade finance transactions | 623 | 685 | 684 | 1,924 | 2,062 | ||||||||||||||||
| Wire transfer fees | 330 | 344 | 321 | 987 | 933 | ||||||||||||||||
| Gain on business acquisition | - | - | - | - | 5,900 | ||||||||||||||||
| Gain on sale of loans | 1,896 | 1,800 | 257 | 7,448 | 1,460 | ||||||||||||||||
| Net gain on sale of securities available for sale | - | - | - | - | 2,209 | ||||||||||||||||
| Loan service fees | 526 | 708 | 565 | 1,896 | 1,153 | ||||||||||||||||
| Increase in FDIC loss share receivable | 308 | 114 | 105 | 471 | 105 | ||||||||||||||||
| Other income | 560 | 532 | 434 | 1,509 | 1,174 | ||||||||||||||||
| Total noninterest income | 5,970 | 5,965 | 4,409 | 19,543 | 21,157 | ||||||||||||||||
| Noninterest Expense: | |||||||||||||||||||||
| Salaries and employee benefits | 5,214 | 5,327 | 4,653 | 15,654 | 13,640 | ||||||||||||||||
| Occupancy | 1,260 | 1,389 | 1,388 | 3,994 | 4,020 | ||||||||||||||||
| Furniture, fixtures, and equipment | 549 | 519 | 756 | 1,671 | 1,903 | ||||||||||||||||
| Data processing | 615 | 654 | 832 | 1,938 | 1,950 | ||||||||||||||||
| Legal fees | 239 | 305 | 567 | 941 | 1,152 | ||||||||||||||||
| Accounting and other professional service fees | 466 | 340 | 309 | 1,378 | 1,170 | ||||||||||||||||
| Business promotion and advertising | 206 | 382 | 376 | 942 | 1,048 | ||||||||||||||||
| Supplies and communication | 280 | 337 | 440 | 965 | 1,100 | ||||||||||||||||
| Security service | 303 | 309 | 320 | 905 | 840 | ||||||||||||||||
| Regulatory assessment | 771 | 998 | 1,073 | 2,821 | 3,096 | ||||||||||||||||
| Merger related expenses | 477 | 200 | - | 1,114 | 129 | ||||||||||||||||
| OREO related expenses | 577 | 638 | 170 | 1,689 | 1,529 | ||||||||||||||||
| Other operating expenses | 1,207 | 1,379 | 1,508 | 3,907 | 3,950 | ||||||||||||||||
| Total noninterest expense | 12,164 | 12,777 | 12,392 | 37,919 | 35,527 | ||||||||||||||||
| Income before income tax provision | 9,808 | 5,180 | 5,117 | 20,379 | 20,633 | ||||||||||||||||
| Income tax provision | 415 | 285 | (846 | ) | 1,205 | 4,400 | |||||||||||||||
| Net income | 9,393 | 4,895 | 5,963 | 19,174 | 16,233 | ||||||||||||||||
| Preferred stock dividends and accretion of preferred stock discount | (757 | ) | (754 | ) | (748 | ) | (2,261 | ) | (31,246 | ) | |||||||||||
| Net income (loss) available to common shareholders | 8,636 | 4,141 | 5,215 | 16,913 | (15,013 | ) | |||||||||||||||
| Other comprehensive income (loss) | |||||||||||||||||||||
| - Unrealized gain (loss) on available-for-sale securities, net of income tax expense (benefit) | 758 | 1,936 | 144 | 3,102 | (91 | ) | |||||||||||||||
| Comprehensive income | $ | 10,151 | $ | 6,831 | $ | 6,107 | $ | 22,276 | $ | 16,142 | |||||||||||
| Earnings (loss) per share: | |||||||||||||||||||||
| Basic | $ | 0.22 | $ | 0.10 | $ | 0.13 | $ | 0.42 | $ | (0.44 | ) | ||||||||||
| Diluted | $ | 0.22 | $ | 0.10 | $ | 0.13 | $ | 0.42 | $ | (0.44 | ) | ||||||||||
| Weighted average shares outstanding - basic | 39,876,029 | 39,868,773 | 39,902,114 | 39,865,808 | 33,762,755 | ||||||||||||||||
| Weighted average shares outstanding - diluted | 39,932,601 | 39,936,146 | 39,912,160 | 39,931,507 | 33,762,755 | ||||||||||||||||
| CENTER FINANCIAL CORPORATION | ||||||||||||||||||||||||||||||
| SELECTED FINANCIAL DATA (Unaudited) | ||||||||||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||||||||||||
| 9/30/11 | 6/30/11 | 9/30/10 | ||||||||||||||||||||||||||||
| Interest | Annualized | Interest | Annualized | Interest | Annualized | |||||||||||||||||||||||||
|
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Average | Income/ | Rate/ | Average | Income/ | Rate/ | Average | Income/ | Rate/ | |||||||||||||||||||||
| Balance | Expense | Yield | Balance | Expense | Yield | Balance | Expense | Yield | ||||||||||||||||||||||
| Assets: | ||||||||||||||||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||||||||||||||
| Loans | $ | 1,518,771 | $ | 20,668 | 5.40 | % | $ | 1,502,416 | $ | 20,755 | 5.54 | % | $ | 1,523,012 | $ | 22,472 | 5.85 | % | ||||||||||||
| Federal funds sold | 1,094 | 1 | 0.36 | 1,377 | 1 | 0.29 | 228,116 | 127 | 0.22 | |||||||||||||||||||||
| Investments | 319,131 | 2,011 | 2.50 | 317,930 | 2,109 | 2.66 | 299,601 | 1,499 | 1.99 | |||||||||||||||||||||
| Money market funds and interest-earning deposits | 302,254 | 182 | 0.24 | 304,633 | 211 | 0.28 | 72,172 | 41 | 0.23 | |||||||||||||||||||||
| Total interest-earning assets | 2,141,250 | 22,862 | 4.24 | 2,126,356 | 23,076 | 4.35 | 2,122,901 | 24,139 | 4.51 | |||||||||||||||||||||
| Noninterest - earning assets: | ||||||||||||||||||||||||||||||
| Cash and due from banks | 37,640 | 35,636 | 37,695 | |||||||||||||||||||||||||||
| Bank premises and equipment, net | 12,567 | 12,981 | 13,091 | |||||||||||||||||||||||||||
| Customers' acceptances outstanding | 2,902 | 2,032 | 2,100 | |||||||||||||||||||||||||||
| Accrued interest receivables | 4,761 | 4,734 | 5,012 | |||||||||||||||||||||||||||
| Other assets | 88,803 | 89,766 | 102,399 | |||||||||||||||||||||||||||
| Total noninterest-earning assets | 146,673 | 145,149 | 160,297 | |||||||||||||||||||||||||||
| Total assets | $ | 2,287,923 | $ | 2,271,505 | $ | 2,283,198 | ||||||||||||||||||||||||
| Liabilities and Shareholders' Equity: | ||||||||||||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||||||||||||
| Deposits: | ||||||||||||||||||||||||||||||
| Money market and NOW accounts | $ | 564,554 | $ | 1,275 | 0.90 | % | $ | 540,246 | $ | 1,419 | 1.05 | % | $ | 519,943 | $ | 1,499 | 1.14 | % | ||||||||||||
| Savings | 90,292 | 537 | 2.36 | 89,222 | 548 | 2.46 | 92,288 | 589 | 2.53 | |||||||||||||||||||||
| Time certificates of deposit over $100,000 | 394,967 | 1,095 | 1.10 | 424,761 | 1,240 | 1.17 | 505,758 | 1,757 | 1.38 | |||||||||||||||||||||
| Other time certificates of deposit | 301,363 | 1,040 | 1.37 | 305,345 | 1,087 | 1.43 | 301,881 | 1,292 | 1.70 | |||||||||||||||||||||
| 1,351,176 | 3,947 | 1.16 | 1,359,574 | 4,294 | 1.27 | 1,419,870 | 5,137 | 1.44 | ||||||||||||||||||||||
| Other borrowed funds | 148,942 | 1,570 | 4.18 | 160,201 | 1,648 | 4.13 | 169,844 | 1,747 | 4.08 | |||||||||||||||||||||
| Long-term subordinated debentures | 18,557 | 143 | 3.06 | 18,557 | 142 | 3.07 | 18,557 | 155 | 3.31 | |||||||||||||||||||||
| Total interest-bearing liabilities | 1,518,675 | 5,660 | 1.48 | 1,538,332 | 6,084 | 1.59 | 1,608,271 | 7,039 | 1.74 | |||||||||||||||||||||
| Noninterest-bearing liabilities: | ||||||||||||||||||||||||||||||
| Demand deposits | 464,340 | 434,702 | 379,286 | |||||||||||||||||||||||||||
| Total funding liabilities | 1,983,015 | 1.13 | % | 1,973,034 | 1.24 | % | 1,987,557 | 1.41 | % | |||||||||||||||||||||
| Other liabilities | 15,857 | 16,792 | 27,722 | |||||||||||||||||||||||||||
| Total noninterest-bearing liabilities | 480,197 | 451,494 | 407,008 | |||||||||||||||||||||||||||
| Shareholders' equity | 289,051 | 281,679 | 267,919 | |||||||||||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 2,287,923 | $ | 2,271,505 | $ | 2,283,198 | ||||||||||||||||||||||||
| Net interest income | $ | 17,202 | $ | 16,992 | $ | 17,100 | ||||||||||||||||||||||||
| Cost of deposits | 0.86 | % | 0.96 | % | 1.13 | % | ||||||||||||||||||||||||
| Net interest spread | 2.76 | % | 2.77 | % | 2.77 | % | ||||||||||||||||||||||||
| Net interest margin | 3.19 | % | 3.21 | % | 3.20 | % | ||||||||||||||||||||||||
| CENTER FINANCIAL CORPORATION | ||||||||||||||||||||||
| SELECTED FINANCIAL DATA (Unaudited) | ||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||
| Nine Months Ended | ||||||||||||||||||||||
| 9/30/2011 | 9/30/2010 | |||||||||||||||||||||
| Interest | Annualized | Interest | Annualized | |||||||||||||||||||
| Average | Income/ | Rate/ | Average | Income/ | Rate/ | |||||||||||||||||
| Balance | Expense | Yield | Balance | Expense | Yield | |||||||||||||||||
| Assets: | ||||||||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||||||
| Loans | $ | 1,525,759 | $ | 62,584 | 5.48 | % | $ | 1,539,882 | $ | 64,430 | 5.59 | % | ||||||||||
| Federal funds sold | 24,779 | 44 | 0.24 | 173,785 | 289 | 0.22 | ||||||||||||||||
| Investments | 314,332 | 5,902 | 2.51 | 325,373 | 7,290 | 3.00 | ||||||||||||||||
| Money market funds and interest-earning deposits | 273,373 | 487 | 0.24 | 61,412 | 111 | 0.24 | ||||||||||||||||
| Total interest-earning assets | 2,138,243 | 69,017 | 4.32 | 2,100,452 | 72,120 | 4.59 | ||||||||||||||||
| Noninterest - earning assets: | ||||||||||||||||||||||
| Cash and due from banks | 36,591 | 37,430 | ||||||||||||||||||||
| Bank premises and equipment, net | 12,990 | 13,099 | ||||||||||||||||||||
| Customers' acceptances outstanding | 2,360 | 2,283 | ||||||||||||||||||||
| Accrued interest receivables | 4,812 | 5,890 | ||||||||||||||||||||
| Other assets | 90,485 | 82,536 | ||||||||||||||||||||
| Total noninterest-earning assets | 147,238 | 141,238 | ||||||||||||||||||||
| Total assets | $ | 2,285,481 | $ | 2,241,690 | ||||||||||||||||||
| Liabilities and Shareholders' Equity: | ||||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||||
| Deposits: | ||||||||||||||||||||||
| Money market and NOW accounts | $ | 543,589 | $ | 4,120 | 1.01 | % | $ | 500,282 | $ | 4,163 | 1.11 | % | ||||||||||
| Savings | 89,111 | 1,644 | 2.47 | 93,068 | 1,819 | 2.61 | ||||||||||||||||
| Time certificates of deposit over $100,000 | 426,845 | 3,753 | 1.18 | 511,853 | 5,930 | 1.55 | ||||||||||||||||
| Other time certificates of deposit | 310,531 | 3,358 | 1.45 | 275,656 | 3,746 | 1.82 | ||||||||||||||||
| 1,370,076 | 12,875 | 1.26 | 1,380,859 | 15,658 | 1.52 | |||||||||||||||||
| Other borrowed funds | 164,553 | 4,760 | 3.87 | 166,811 | 5,021 | 4.02 | ||||||||||||||||
| Long-term subordinated debentures | 18,557 | 427 | 3.08 | 18,557 | 438 | 3.16 | ||||||||||||||||
| Total interest-bearing liabilities | 1,553,186 | 18,062 | 1.55 | 1,566,227 | 21,117 | 1.80 | ||||||||||||||||
| Noninterest-bearing liabilities: | ||||||||||||||||||||||
| Demand deposits | 432,014 | 370,831 | ||||||||||||||||||||
| Total funding liabilities | 1,985,200 | 1.22 | % | 1,937,058 | 1.46 | % | ||||||||||||||||
| Other liabilities | 17,919 | 42,879 | ||||||||||||||||||||
| Total noninterest-bearing liabilities | 449,933 | 413,710 | ||||||||||||||||||||
| Shareholders' equity | 282,362 | 261,753 | ||||||||||||||||||||
| Total liabilities and shareholders' equity | 2,285,481 | $ | 2,241,690 | |||||||||||||||||||
| Net interest income | $ | 50,955 | $ | 51,003 | ||||||||||||||||||
| Cost of deposits | 0.96 | % | 1.20 | % | ||||||||||||||||||
| Net interest spread | 2.77 | % | 2.79 | % | ||||||||||||||||||
| Net interest margin | 3.19 | % | 3.25 | % | ||||||||||||||||||
| CENTER FINANCIAL CORPORATION | |||||||||||||||||||||||
| SELECTED FINANCIAL DATA (Unaudited) | |||||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||
| Non-covered Loans | 9/30/11 | 6/30/11 | 3/31/11 | 12/31/10 | 9/30/10 | ||||||||||||||||||
| Real Estate: | |||||||||||||||||||||||
| Construction | $ | 9,407 | $ | 9,525 | $ | 14,182 | $ | 14,803 | $ | 14,987 | |||||||||||||
| Commercial | 894,686 | 895,662 | 880,723 | 914,003 | 918,882 | ||||||||||||||||||
| Commercial: | |||||||||||||||||||||||
| Commercial | 281,711 | 272,643 | 276,180 | 315,285 | 279,450 | ||||||||||||||||||
| Trade Finance | 63,860 | 65,476 | 66,243 | 71,174 | 65,666 | ||||||||||||||||||
| SBA | 112,207 | 104,272 | 100,712 | 101,683 | 69,029 | ||||||||||||||||||
| Others: | |||||||||||||||||||||||
| Consumer | 57,514 | 67,813 | 69,699 | 71,279 | 68,968 | ||||||||||||||||||
| Other | 50,048 | 40,032 | 40,038 | 40,039 | 50,219 | ||||||||||||||||||
| Total Non-covered Loans | 1,469,433 | 1,455,423 | 1,447,777 | 1,528,266 | 1,467,201 | ||||||||||||||||||
| Less: | |||||||||||||||||||||||
| Allowance for Losses | 47,098 | 49,590 | 51,010 | 52,047 | 54,460 | ||||||||||||||||||
| Net Deferred Loan Fee | (454 | ) | (629 | ) | (649 | ) | (523 | ) | 31 | ||||||||||||||
| Discount on SBA Loans Retained | 2,741 | 1,946 | 1,617 | 862 | 936 | ||||||||||||||||||
| Net Non-covered Loans | $ | 1,420,048 | $ | 1,404,516 | $ | 1,395,799 | $ | 1,475,880 | $ | 1,411,774 | |||||||||||||
| Covered Loans | 9/30/11 | 6/30/11 | 3/31/11 | 12/31/10 | 9/30/10 | ||||||||||||||||||
| Real Estate: | |||||||||||||||||||||||
| Construction | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||
| Commercial | 51,725 | 63,352 | 61,605 | 63,503 | 73,043 | ||||||||||||||||||
| Commercial | |||||||||||||||||||||||
| Commercial | 14,106 | 9,332 | 15,375 | 18,307 | 9,698 | ||||||||||||||||||
| Trade Finance | - | - | - | - | - | ||||||||||||||||||
| SBA | 27,300 | 29,456 | 34,102 | 35,000 | 29,022 | ||||||||||||||||||
| Others: | |||||||||||||||||||||||
| Consumer | - | - | - | - | - | ||||||||||||||||||
| Other | 486 | 486 | 688 | 486 | 911 | ||||||||||||||||||
| Total Covered Loans | 93,617 | 102,626 | 111,770 | 117,296 | 112,674 | ||||||||||||||||||
| Less: | |||||||||||||||||||||||
| Allowance for Losses | 1,010 | 1,010 | 1,010 | 1,010 | - | ||||||||||||||||||
| Net Deferred Loan Fee | 26 | 19 | 7 | 3 | - | ||||||||||||||||||
| Net Covered Loans | $ | 92,581 | $ | 101,597 | $ | 110,753 | $ | 116,283 | $ | 112,674 | |||||||||||||
| Total Loans | 9/30/11 | 6/30/11 | 3/31/11 | 12/31/10 | 9/30/10 | ||||||||||||||||||
| Real Estate: | |||||||||||||||||||||||
| Construction | $ | 9,407 | $ | 9,525 | $ | 14,182 | $ | 14,803 | $ | 14,987 | |||||||||||||
| Commercial | 946,411 | 959,014 | 942,328 | 977,506 | 991,925 | ||||||||||||||||||
| Commercial: | |||||||||||||||||||||||
| Commercial | 295,817 | 281,975 | 291,555 | 333,592 | 289,148 | ||||||||||||||||||
| Trade Finance | 63,860 | 65,476 | 66,243 | 71,174 | 65,666 | ||||||||||||||||||
| SBA | 139,507 | 133,728 | 134,814 | 136,683 | 98,051 | ||||||||||||||||||
| Others: | |||||||||||||||||||||||
| Consumer | 57,514 | 67,813 | 69,699 | 71,279 | 68,968 | ||||||||||||||||||
| Other | 50,534 | 40,518 | 40,726 | 40,525 | 51,130 | ||||||||||||||||||
| Total Loans | 1,563,050 | 1,558,049 | 1,559,547 | 1,645,562 | 1,579,875 | ||||||||||||||||||
| Less: | |||||||||||||||||||||||
| Allowance for Losses | 48,108 | 50,600 | 52,020 | 53,057 | 54,460 | ||||||||||||||||||
| Net Deferred Loan Fees | (428 | ) | (610 | ) | (642 | ) | (520 | ) | 31 | ||||||||||||||
| Discount on SBA Loans Retained | 2,741 | 1,946 | 1,617 | 862 | 936 | ||||||||||||||||||
| Net Loans | $ | 1,512,629 | $ | 1,506,113 | $ | 1,506,552 | $ | 1,592,163 | $ | 1,524,448 | |||||||||||||
| As a percentage of total loans: | 9/30/11 | 6/30/11 | 3/31/11 | 12/31/10 | 9/30/10 | ||||||||||||||||||
| Real Estate: | |||||||||||||||||||||||
| Construction | 0.6 | % | 0.6 | % | 0.9 | % | 0.9 | % | 0.9 | % | |||||||||||||
| Commercial | 60.6 | 61.6 | 60.4 | 59.4 | 62.8 | ||||||||||||||||||
| Commercial: | |||||||||||||||||||||||
| Commercial | 18.9 | 18.1 | 18.7 | 20.3 | 18.3 | ||||||||||||||||||
| Trade Finance | 4.1 | 4.2 | 4.2 | 4.3 | 4.2 | ||||||||||||||||||
| SBA | 8.9 | 8.6 | 8.6 | 8.3 | 6.2 | ||||||||||||||||||
| Others: | |||||||||||||||||||||||
| Consumer | 3.7 | 4.4 | 4.5 | 4.3 | 4.4 | ||||||||||||||||||
| Other | 3.2 | 2.5 | 2.7 | 2.5 | 3.2 | ||||||||||||||||||
| Total Loans | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | ||||||||||||||||||
| 9/30/11 | 6/30/11 | 3/31/11 | 12/31/10 | 9/30/10 | |||||||||||||||||||
| Deposits | |||||||||||||||||||||||
| Demand deposits (noninterest-bearing) | $ | 499,556 | $ | 457,182 | $ | 408,843 | $ | 396,973 | $ | 383,508 | |||||||||||||
| Money market accounts and NOW | 503,251 | 530,615 | 531,580 | 471,132 | 497,362 | ||||||||||||||||||
| Savings | 89,579 | 90,085 | 88,423 | 87,484 | 89,067 | ||||||||||||||||||
| 1,092,386 | 1,077,882 | 1,028,846 | 955,589 | 969,937 | |||||||||||||||||||
| Time deposits | |||||||||||||||||||||||
| Less than $100,000 | 307,011 | 304,735 | 309,311 | 334,341 | 302,745 | ||||||||||||||||||
| $100,000 or more | 397,507 | 409,364 | 441,449 | 481,064 | 519,599 | ||||||||||||||||||
| Total deposits | $ | 1,796,904 | $ | 1,791,981 | $ | 1,779,606 | $ | 1,770,994 | $ | 1,792,281 | |||||||||||||
| As a percentage of total deposits: | |||||||||||||||||||||||
| Demand deposits (noninterest-bearing) | 27.8 | % | 25.5 | % | 23.0 | % | 22.4 | % | 21.4 | % | |||||||||||||
| Money market accounts and NOW | 28.0 | 29.6 | 29.9 | 26.6 | 27.8 | ||||||||||||||||||
| Savings | 5.0 | 5.1 | 5.0 | 4.9 | 5.0 | ||||||||||||||||||
| 60.8 | 60.2 | 57.9 | 53.9 | 54.2 | |||||||||||||||||||
| Time deposits | |||||||||||||||||||||||
| Less than $100,000 | 17.1 | 17.0 | 17.4 | 18.9 | 16.9 | ||||||||||||||||||
| $100,000 or more | 22.1 | 22.8 | 24.7 | 27.2 | 28.9 | ||||||||||||||||||
| Total deposits | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | ||||||||||||||||||
| CENTER FINANCIAL CORPORATION | ||||||||||||||||||||||||
| SELECTED FINANCIAL DATA (Unaudited) | ||||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||
| 9/30/11 | 6/30/11 | 3/31/11 | 12/31/10 | 9/30/10 | ||||||||||||||||||||
| Non-covered nonperforming loans: | ||||||||||||||||||||||||
| Real estate: | ||||||||||||||||||||||||
| Construction | $ | 1,270 | $ | 1,269 | $ | 5,738 | $ | 6,108 | $ | 4,029 | ||||||||||||||
| Commercial - Real Estate | 19,129 | 25,182 | 21,490 | 29,167 | 28,639 | |||||||||||||||||||
| Commercial | ||||||||||||||||||||||||
| Commercial - Business | 7,275 | 7,504 | 5,263 | 5,696 | 7,631 | |||||||||||||||||||
| Trade Finance | 355 | 355 | 100 | - | - | |||||||||||||||||||
| SBA | 5,534 | 7,885 | 5,278 | 3,896 | 2,653 | |||||||||||||||||||
| Other | ||||||||||||||||||||||||
| Consumer | 820 | 1,096 | 383 | 651 | 229 | |||||||||||||||||||
| Total non-covered nonperforming loans | 34,383 | 43,291 | 38,252 | 45,518 | 43,181 | |||||||||||||||||||
| Guaranteed portion of nonperforming SBA loans | 5,361 | 7,247 | 4,110 | 3,293 | 3,022 | |||||||||||||||||||
| Total non-covered nonperforming loans, net of SBA guarantees | 29,022 | 36,044 | 34,142 | 42,225 | 40,159 | |||||||||||||||||||
| Other real estate owned | 947 | 133 | 144 | 937 | 4,548 | |||||||||||||||||||
| Total non-covered nonperforming assets, net of SBA guarantees | $ | 29,969 | $ | 36,177 | $ | 34,286 | $ | 43,162 | $ | 44,707 | ||||||||||||||
| Performing TDR's not included above | $ | 34,208 | $ | 19,090 | $ | 19,894 | $ | 21,377 | $ | 23,898 | ||||||||||||||
| Ratios: | ||||||||||||||||||||||||
| Nonperforming loans, net of SBA guarantees as a percent of total non-covered loans | 1.98 | % | 2.48 | % | 2.36 | % | 2.76 | % | 2.74 | |||||||||||||||
| Nonperforming assets, net of SBA guarantees as a percent of non-covered loans and OREO | 2.04 | 2.49 | 2.37 | 2.82 | 3.04 | |||||||||||||||||||
| Allowance for loan losses to non-covered nonperforming loans, net of SBA guarantees | 162.3 | 137.6 | 149.4 | 123.3 | 135.6 | |||||||||||||||||||
| Delinquency: | ||||||||||||||||||||||||
| Delinquent non-covered loans 30-89 days past due, net of SBA guarantees | $ | 2,387 | $ | 6,138 | $ | 10,352 | $ | 12,732 | $ | 10,788 | ||||||||||||||
| Total non-covered nonperforming loans, net of SBA guarantees | 29,022 | 36,044 | 34,142 | 42,225 | 40,159 | |||||||||||||||||||
| Total delinquent non-covered loans | $ | 31,409 | $ | 42,182 | $ | 44,494 | $ | 54,957 | $ | 50,947 | ||||||||||||||
| Covered nonperforming assets: | ||||||||||||||||||||||||
| Covered nonperforming loans | $ | 19,069 | $ | 18,541 | $ | 22,578 | $ | 24,874 | $ | 19,748 | ||||||||||||||
| Covered other real estate owned | 1,028 | 1,132 | 1,405 | 1,459 | 1,459 | |||||||||||||||||||
| Total covered nonperforming assets | $ | 20,097 | $ | 19,673 | $ | 23,983 | $ | 26,333 | $ | 21,207 | ||||||||||||||
| Ratios: | ||||||||||||||||||||||||
| Covered nonperforming loans to total covered loans | 20.37 | % | 18.07 | % | 20.20 | % | 21.21 | 17.53 | ||||||||||||||||
| Covered nonperforming assets to total assets | 0.89 | 0.87 | 1.06 | 1.16 | 0.94 | |||||||||||||||||||
| Total nonperforming assets, net of SBA guarantees (combined): | ||||||||||||||||||||||||
| Total nonperforming loans, net of SBA guarantees | $ | 48,091 | $ | 54,585 | $ | 56,720 | $ | 67,099 | $ | 59,907 | ||||||||||||||
| Other real estate owned | 1,975 | 1,265 | 1,549 | 2,396 | 6,007 | |||||||||||||||||||
| Total nonperforming assets, net of SBA guarantees | $ | 50,066 | $ | 55,850 | $ | 58,269 | $ | 69,495 | $ | 65,914 | ||||||||||||||
| Ratios (combined): | ||||||||||||||||||||||||
| Nonperforming loans, net of SBA guarantees to total gross loans | 3.08 | % | 3.50 | % | 3.64 | % | 4.08 | % | 3.79 | |||||||||||||||
| Nonperforming assets, net of SBA guarantees to total assets | 2.22 | 2.46 | 2.58 | 3.06 | 2.91 | |||||||||||||||||||
| Nine Months | Six Months | Three Months | Year |
Nine Months |
||||||||||||||||||||
| Ended | Ended | Ended | Ended | Ended | ||||||||||||||||||||
| 9/30/11 | 6/30/11 | 3/31/11 | 12/31/10 | 9/30/10 | ||||||||||||||||||||
| Balances (non-covered loans): | ||||||||||||||||||||||||
| Average total non-covered loans outstanding during the period | $ | 1,469,886 | $ | 1,470,025 | $ | 1,494,492 | $ | 1,493,526 | $ | 1,498,908 | ||||||||||||||
| Total non-covered loans outstanding at end of period | $ | 1,467,146 | $ | 1,454,106 | $ | 1,446,808 | $ | 1,527,928 | $ | 1,466,234 | ||||||||||||||
| Allowance for Loan Losses (non-covered loans): | ||||||||||||||||||||||||
| Balance at beginning of period | $ | 52,047 | $ | 52,047 | $ | 52,047 | $ | 58,543 | $ | 58,543 | ||||||||||||||
| Charge-offs: | ||||||||||||||||||||||||
| Construction Real Estate | 1,932 | 1,932 | 371 | 947 | 419 | |||||||||||||||||||
| Commercial Real Estate | 8,380 | 6,350 | 5,246 | 20,296 | 16,178 | |||||||||||||||||||
| Commercial - Business | 5,562 | 4,545 | 1,251 | 8,114 | 5,011 | |||||||||||||||||||
| Trade Finance | 444 | 444 | 200 | 767 | 563 | |||||||||||||||||||
| SBA | 1,285 | 534 | 370 | 1,075 | 1,448 | |||||||||||||||||||
| Consumer | 956 | 488 | 303 | 1,448 | 1,008 | |||||||||||||||||||
| Other | - | - | - | - | - | |||||||||||||||||||
| Total charge-offs | 18,559 | 14,293 | 7,741 | 32,647 | 24,627 | |||||||||||||||||||
| Recoveries | ||||||||||||||||||||||||
| Construction Real Estate | 366 | 366 | 366 | 561 | 123 | |||||||||||||||||||
| Commercial Real Estate | 576 | 195 | 191 | 1,357 | 1,357 | |||||||||||||||||||
| Commercial - Business | 208 | 126 | 63 | 2,890 | 2,817 | |||||||||||||||||||
| Trade Finance | - | - | - | - | ||||||||||||||||||||
| SBA | 46 | 25 | 18 | 189 | 151 | |||||||||||||||||||
| Consumer | 214 | 124 | 66 | 154 | 96 | |||||||||||||||||||
| Other | - | - | - | - | - | |||||||||||||||||||
| Total recoveries | 1,410 | 836 | 704 | 5,151 | 4,544 | |||||||||||||||||||
| Net loan charge-offs | 17,149 | 13,457 | 7,037 | 27,496 | 20,083 | |||||||||||||||||||
| Provision for loan losses (non-covered loans) | 12,200 | 11,000 | 6,000 | 21,000 | 16,000 | |||||||||||||||||||
| Balance at end of period | $ | 47,098 | $ | 49,590 | $ | 51,010 | $ | 52,047 | $ | 54,460 | ||||||||||||||
| Ratios (non-covered loans): | ||||||||||||||||||||||||
| Net loan charge-offs to average non-covered loans | 1.56 | % | 1.85 | % | 1.91 | % | 1.84 | % | 1.79 | |||||||||||||||
| Provision for loan losses to average non-covered loans | 1.11 | 1.51 | 1.63 | 1.41 | 1.43 | |||||||||||||||||||
| Allowance for loan losses to gross non-covered loans at end of period | 3.21 | 3.41 | 3.53 | 3.41 | 3.71 | |||||||||||||||||||
| Allowance for loan losses to non-covered nonperforming loans | 136.98 | 114.55 | 133.35 | 114.34 | 126.12 | |||||||||||||||||||
| Net loan charge-offs to allowance for loan losses at end of period | 48.68 | 54.72 | 55.95 | 52.83 | 49.30 | |||||||||||||||||||
| Net loan charge-offs to provision for loan losses | 140.57 | 122.34 | 117.28 | 130.93 | 125.52 | |||||||||||||||||||
| CENTER FINANCIAL CORPORATION | |||||||||||||||||||
| SELECTED FINANCIAL DATA (Unaudited) | |||||||||||||||||||
|
As of and
for the three months ended |
As of and
for the nine months ended |
||||||||||||||||||
| Performance ratios: | 9/30/11 | 6/30/11 | 3/31/11 | 9/30/10 | 9/30/11 | 9/30/10 | |||||||||||||
| Return on average assets | 1.63 | % | 0.86 | % | 0.86 | % | 1.04 | % | 1.12 | % | 0.97 | % | |||||||
| Return on average equity | 12.89 | 6.97 | 7.17 | 8.83 | 9.08 | 8.29 | |||||||||||||
| Efficiency ratio | 52.49 | 55.66 | 53.26 | 57.61 | 53.79 | 49.23 | |||||||||||||
| Net loans to total deposits at period-end | 84.18 | 84.05 | 84.66 | 85.06 | 84.18 | 85.06 | |||||||||||||
| Net loans to total assets at period-end | 67.02 | 66.40 | 66.66 | 67.23 | 67.02 | 67.23 | |||||||||||||
| Capital ratios: | |||||||||||||||||||
| Leverage capital ratio | |||||||||||||||||||
| Consolidated Company | 13.51 | % | 13.20 | % | 12.85 | % | 12.55 | % | |||||||||||
| Center Bank | 13.38 | 13.04 | 12.67 | 12.31 | |||||||||||||||
| Tier 1 risk-based capital ratio | |||||||||||||||||||
| Consolidated Company | 19.83 | 19.39 | 19.14 | 18.04 | |||||||||||||||
| Center Bank | 19.64 | 19.15 | 18.86 | 17.68 | |||||||||||||||
| Total risk-based capital ratio | |||||||||||||||||||
| Consolidated Company | 21.10 | 20.67 | 20.42 | 19.32 | |||||||||||||||
| Center Bank | 20.91 | 20.43 | 20.14 | 18.96 | |||||||||||||||
| CENTER FINANCIAL CORPORATION | |||||||||||||||||||||||||
| RECONCILIATION OF GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES (Unaudited) | |||||||||||||||||||||||||
| (Dollars in thousands, except per share data) | |||||||||||||||||||||||||
| 9/30/11 | 6/30/11 | 3/31/11 | 12/31/10 | 9/30/10 | |||||||||||||||||||||
| Total shareholders' equity | $ | 294,680 | $ | 285,039 | $ | 278,907 | $ | 274,012 | $ | 270,690 | |||||||||||||||
| Less: Preferred stock | (53,607 | ) | (53,538 | ) | (53,472 | ) | (53,409 | ) | (53,347 | ) | |||||||||||||||
| Common stock warrant | (1,026 | ) | (1,026 | ) | (1,026 | ) | (1,026 | ) | (1,026 | ) | |||||||||||||||
| Intangible assets, net | (418 | ) | (434 | ) | (449 | ) | (464 | ) | (474 | ) | |||||||||||||||
|
Tangible common equity |
$ | 239,629 | $ | 230,041 | $ | 223,960 | $ | 219,113 | $ | 215,843 | |||||||||||||||
| Total assets | $ | 2,257,087 | $ | 2,268,327 | $ | 2,260,118 | $ | 2,270,279 | $ | 2,267,439 | |||||||||||||||
| Less: Intangible assets, net | (418 | ) | (434 | ) | (449 | ) | (464 | ) | (474 | ) | |||||||||||||||
| Tangible assets | $ | 2,256,669 | $ | 2,267,893 | $ | 2,259,669 | $ | 2,269,815 | $ | 2,266,965 | |||||||||||||||
| Common shares outstanding | 39,919,952 | 39,913,660 | 39,908,514 | 39,914,686 | 39,902,811 | ||||||||||||||||||||
| Tangible common equity per common share | $ | 6.00 | $ | 5.76 | $ | 5.61 | $ | 5.49 | $ | 5.41 | |||||||||||||||
| Tangible common equity to tangible assets | 10.62 | % | 10.14 | % | 9.91 | % | 9.65 | % | 9.52 | % | |||||||||||||||
CONTACT:
Center Financial Corporation
Douglas J. Goddard
Interim
CFO
213-401-2311
douglasg@centerbank.com
or
Angie Yang
SVP,
Investor Relations
213-251-2219
angiey@centerbank.com