Center Financial Earns Sandler O'Neill's Sm-All Star Status for Third Consecutive Year

July 13, 2006; 06:43 AM

Center Financial Corporation (NASDAQ:CLFC) today announced that for the third year in a row it has been named one of the top performing small capitalization banks in the nation by investment banking firm Sandler O'Neill. Center Financial is one of only nine institutions to receive Sm-All Star status each year since the list's inception in 2004.

In its "Class of 2006 Bank and Thrift Sm-All Stars" report, Sandler O'Neill recognized the 34 best performing small-capitalization institutions among a field of 573 publicly traded banks and thrifts in the U.S. with market capitalizations less than $2 billion.

"It is once again an honor to be recognized as one of the premier community banks in the nation and an all-star performer among our peers," said (Paul) Seon-Hong Kim, chief executive officer. "It is especially gratifying to be included in Sandler O'Neill's Sm-All Star Class for the third consecutive year. We look forward to continuing our heritage as a leading community bank for small business customers, which in turn has delivered this outstanding financial performance."

Inclusion as a Sm-All Star was based on the company's absolute performance in each of eight financial variables. To assess fundamental momentum in the evaluation, growth trends in (1) EPS, (2) loan and (3) deposits were evaluated. As a measure of profitability, (4) return on average equity was included. In terms of asset quality, (5) nonperforming assets to loans plus OREO ratio and the (6) net charge-off ratio were analyzed. Finally, (7) reserve to nonperforming assets ratio and (8) Tier 1 risk-based capital ratio provided an indication of capital levels. In earning Sm-All Star status, Center Financial was above the peer median for all surveyed, and was considered "Well Capitalized" per the Tier 1 risk-based capital ratio.

About Center Financial Corporation

Center Financial Corporation is the holding company of Center Bank, a community bank offering a full range of financial services for diverse ethnic and small business customers. Founded in 1986 and specializing in commercial and SBA loans and trade finance products, Center Bank has grown to be one of the nation's largest financial institutions focusing on the Korean-American community, with total assets of $1.7 billion at March 31, 2006. Headquartered in Los Angeles, Center Bank operates 26 branch and loan production offices across the nation. Of the company's 17 full-service branches, 15 are located throughout Southern California, along with one branch each in Chicago and Seattle. Center Bank's nine loan production offices are strategically located in Phoenix, Seattle, Denver, Washington D.C., Las Vegas, Atlanta, Honolulu, Houston and Dallas. Center Bank is a California state-chartered institution and its deposits are insured by the FDIC to the extent provided by law. For additional information on Center Bank, visit the company's Web site at www.centerbank.com.