Centric Financial Corporation Announces Q3 2017 Results with 61% Increase in Year-to-date Earnings and Double-Digit Growth in Loans, Deposits, and Assets

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Oct 23, 2017, 08:06 ET

HARRISBURG, Pa., Oct. 23, 2017 /PRNewswire/ -- Centric Financial Corp, Inc. ("Centric") (CFCX), the holding company for Centric Bank, reported unaudited results for the first nine months of 2017 of $3,168,000 in net income, a 61% increase over the $1,966,000 reported for the same period 2016. Net income for the third quarter 2017 increased 32% to $1,162,000, over the same quarter for 2016. Net income per share for the quarter ended September 30, 2017 was $.18 as compared to $.14 for the same period in 2016. Earnings per share for the period ended September 30, 2017 was $.50 for the nine months of 2017, up $.19, or 61% over the same period 2016.

Total loans increased by $68.0 million from September 30, 2016, an increase of 17%. Total loans outstanding at September 30, 2017 were $474 million.

"Centric Bank continues to deliver on its commitment to being the community bank of choice for small businesses in Pennsylvania", says Patricia A. (Patti) Husic, President & CEO. "Our loan growth numbers tell the story, and emphasize that our focus is on the job creators in our community, the small business owners. As of September 30, 2017, we are #2 in the Commonwealth of Pennsylvania for SBA 7(a) lending. We utilize SBA lending as another avenue to get our clients to a yes, and fueling the economic growth engine in our communities."

Total assets were $533 million at September 30, 2017, an increase of $69 million, or 15% from the same period ended in 2016. Loan growth for the 12 months ended September 30, 2017 was a result of the increase in commercial loans of $30 million, a 33% increase, and commercial real estate loans of $25 million, a 9% increase.

Total deposits were $463 million at September 30, 2017, an increase of $60 million, or 15% over the same period end 2016. Non-interest bearing deposits are 16% of total deposits at September 30, 2017.

Net interest income increased 36% to $14,604,000 from $10,746,000 for the first nine months due to increased loan originations, while the provision for loan losses decreased $134,000 compared to 2016 due to asset quality. The asset quality ratio of non-performing assets as a percentage of total assets continues to improve to .35% at September 30, 2017, a reduction from 0.60% for the same period 2016.

Tangible book value increased to $6.35 per share, an increase of $0.18 over last quarter end and $0.63 over September 30, 2016. Return on average assets for the third quarter 2017 was .88% up .09% from .79% at the same quarter prior year; net interest margin improved by 19 basis points, increasing to 3.99%; with the efficiency ratio at 64.9%.

**FINANCIAL HIGHLIGHTS (unaudited)**

Consolidated Balance Sheet	At Period End
	Sep 30,	Jun 30,	Sep 30,
(Dollars in thousands)	2017	2017	2016
Assets
Cash and cash equivalents	$ 30,133	$ 29,326	$ 26,604
Other investments	15,065	17,069	18,093
Loans, net of allowance for loan and lease losses	468,348	458,767	401,745
Premises and equipment	6,518	6,560	6,901
Accrued interest receivable	1,328	1,182	997
Other assets	11,528	11,606	9,829
Total Assets	$ 532,920	$ 524,510	$ 464,169

Liabilities
Deposits - Noninterest-bearing	73,678	77,260	56,227
Deposits - Interest-bearing	388,910	381,321	345,928
Total deposits	462,588	458,581	402,155
Short-term borrowings	2,500	2,000	15,000
Long-term debt	24,734	22,410	9,748
Accrued interest payable	308	144	102
Other liabilities	1,779	1,579	554
Total Liabilities	491,909	484,714	427,559
Total Shareholders' Equity	41,011	39,796	36,610
Total Liabilities and Shareholders' Equity	$ 532,920	$ 524,510	$ 464,169


Consolidated Statement of Income	Three months ended			Nine months ended
	Sep 30,	Jun 30,	Sep 30,	Sep 30,	Sep 30,
(Dollars in thousands)	2017	2017	2016	2017	2016
Interest income
Interest and dividends on securities	$ 135	$ 135	$ 142	$ 397	$ 445
Interest and fees on loans	5,925	5,627	4,619	16,754	12,282
Other	79	62	19	170	91
Total interest income	6,139	5,824	4,780	17,321	12,818
Interest expense
Interest on deposits	776	707	582	2,136	1,653
Interest on borrowings	232	203	146	581	419
Total interest expense	1,008	910	728	2,717	2,072
Net interest income	5,131	4,914	4,052	14,604	10,746
Provision for loan losses	261	380	600	1,076	1,210
Net interest income after provision expense	4,870	4,534	3,452	13,528	9,536
Noninterest income	661	1,011	1,111	2,230	2,672
Noninterest expense	3,801	3,729	3,277	11,070	9,353
Income before taxes	1,730	1,816	1,286	4,688	2,855
Income tax expense	568	591	407	1,520	889
Net income available to common shareholders	1,162	1,225	879	3,168	1,966

Per Share Data
Net income - basic (period to date)	$ 0.18	$ 0.19	$ 0.14	$ 0.50	$ 0.31
Book value (at period end)	$ 6.43	$ 6.25	$ 5.80
Tangible book value (at period end)	$ 6.35	$ 6.17	$ 5.72
Close price (at period end)	$ 7.95	$ 7.75	$ 8.55
Close price /book value ratio	123.6%	124.0%	147.4%
Average shares outstanding - basic (period to date)	6,355,877	6,350,937	6,314,913	6,351,870	6,312,274

Financial Ratios
Shareholders' equity/asset ratio	7.70%	7.59%	7.89%
Return on average assets (period to date)	0.88%	0.95%	0.79%	0.83%	0.63%
Return on average equity (period to date)	11.50%	12.51%	9.73%	10.77%	7.42%
Net charge-offs/average loans (period to date)	0.00%	-0.05%	0.05%	0.00%	0.08%
Nonperforming assets/total assets	0.35%	0.36%	0.60%
Allowance for loan & leases losses as a % of loans	1.18%	1.15%	1.04%
Allowance for loan & leases losses/nonaccrual loans	943.52%	876.09%	422.60%

About Centric Financial Corporation and Centric Bank

A three-time Best Places to Work and named a Top 50 Fastest-Growing Companies for five years, Centric Bank is headquartered in south central Pennsylvania with assets of $533 million and remains a leader in organic loan growth in central Pennsylvania. A locally owned, locally loaned community bank, Centric Bank provides highly competitive and pro-growth financial services to businesses, professionals, individuals, families, and the health care and agricultural industries. With a Five-Star Bauer Financial Rating, Centric Bank was named a Top 100 SBA 7(a) Lender in the United States in 2016 and ranked #2 in approved SBA 7(a) loans in the Commonwealth of Pennsylvania. As of September 30, 2017, the bank continues to rank #2 in the SBA's Eastern District of Pennsylvania for SBA 7(a) loan volume.

Founded in 2007, Pennsylvania-based Centric Bank has financial centers located in Harrisburg, Hershey, Mechanicsburg, and Camp Hill, and loan production offices in Lancaster and suburban Philadelphia. To learn more about Centric Bank, call 717.657.7727 or visit CentricBank.com. Connect with them on Twitter at @CentricBank and Facebook at Centric Bank.

Centric Financial Corporation is traded over the counter (OTC-Pink) with the ticker symbol CFCX.

Cautionary Note Regarding Forward-looking Statements:
This news release may contain forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that include projections, predictions, expectations, or beliefs about events or results or otherwise are not statements of historical facts. Actual results and trends could differ materially from those set forth in such statements and there can be no assurances that we will be able to continue to successfully execute on our strategic plan. Factors that could cause actual results to differ from those expressed or implied by the forward-looking statements include, but are not limited to, the following: changes in current or future market conditions; the effects of competition, development of competing financial products and services; changes in laws and regulations, interest rate movements; changes in credit quality; inability to raise capital, if necessary, under favorable conditions; volatilities in the securities markets; deteriorating economic conditions; and other risks and uncertainties.

Contact: Patricia A. Husic
President & CEO
717.909.8309

SOURCE Centric Financial Corp, Inc.