Center Financial to Buy N.Y.’s Liberty Bank

Center Financial Corp., which owns banks in Southern California, plans to buy Liberty Bank of New York for undisclosed terms to expand into another market with a large Korean American population.

Liberty operates one bank branch in Manhattan and one in Flushing, N.Y. The company has assets of $73.5 million, Los Angeles-based Center Financial said.

Center Financial caters to Korean Americans and believes expanding into New York will bring new customers, especially small-business owners. California and New York are among the states with the highest percentages of Korean Americans, at 0.7% to 1.1% of their populations, 2000 U.S. Census Bureau data show.

“Walk into any liquor store or sandwich shop in New York, and you are pretty sure to see some Asian face,” said James Ryu, a first vice president at Center Financial. “Six out of 10 times those are Korean Americans.”

The agreement followed Center Financial’s announcement last month that it would buy Korea Exchange Bank branches in Chicago.

“They are selecting markets where they feel their business plan and approach to clients would grow assets, deposits and loan base,” said Steven Marascia, an analyst at Anderson & Strudwick Inc. in Richmond, Va.

Marascia rates Center Financial shares a “hold” and doesn’t own them personally.

Center Financial has assets of $1 billion. The company runs 13 branches in Southern California through its Center Bank unit.

Center Financial shares fell 36 cents to $31.54 on Nasdaq.