Center Financial Corp. of Los Angeles is in danger of having its stock delisted, because it has not certified its second-quarter earnings statement.
The $1.5 billion-asset Center said last week that the Nasdaq had notified the company that its securities were subject to delisting, because its Aug. 15 statement did not include a review by an independent auditor, nor did top officials certify the accuracy of the report.
In its earnings statement, Center said that its net income nearly tripled from a year earlier, to $6.1 million, but that the results were preliminary and may change as a result of a review by the company's auditor.
Last week Center said its auditor has not been able to complete that review, because the official has been working with the company to restate its earnings for 2002 through 2004. Patrick Hartman, who was hired in March as the chief financial officer, said in an interview this month that Center improperly accounted for interest rate swaps during that period.
Center's stock fell nearly 5% Thursday but rebounded somewhat Friday. It was trading at $24.17 a share late in the day.
The company said it would file an amended second-quarter earnings statement after the review, but it did not say when the review would be finished. Center has also requested a hearing with Nasdaq officials.
