Shares of Center Financial Corp. dropped in after-hours trading Wednesday despite posting better-than-expected second quarter earnings.

The Los Angeles-based holding company for Center Bank reported net income of $5.3 million, or 32 cents per share, outpacing Wall Street estimates of 24 cents per share. The earnings were up from $4.2 million last quarter but down from $6.5 million in the second quarter last year.

The company said net interest income increased to $19 million from $18.6 million last quarter, while net interest margin rose to 3.81 percent from 3.76 percent last quarter. That number is down from 4.39 percent in the second quarter 2007.

Center Financial also said its $21 million allowance for loan losses stayed roughly even with last quarter.

The company’s stock dropped nearly 4 percent to $9.86 in after hours trading Wednesday after jumping more than 5 percent during regular trading.