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Centric Financial Corporation Announces 2017 Results; a Record Breaking Year with 23% Increase in Earnings and Double-Digit Growth in Loans, Deposits, and Assets

Harrisburg, Pennsylvania (January 25, 2018) – Centric Financial Corp, Inc. (“Centric”) (CFCX), the holding company for Centric Bank, reported unaudited results for the year ended December 31, 2017 of $3,744,000 in net income, a 23% increase over the reported year to date 2016.  Net income for the fourth quarter 2017 was $576,000, a decline of 46% from the fourth quarter 2016.  Earnings per share for the fourth quarter 2017 was $.09 and $.59 for the twelve months ended 2017, up $.11 over the same period 2016.  The fourth quarter of 2017 included a tax expense charge of $800,000 for revaluation of certain net deferred tax assets related to the corporate income tax rate change enacted in the fourth quarter as part of the Tax Cuts and Jobs Act. The results without the one-time tax deferred adjustment would have reflected net income after taxes of $4,544,000, or an increase of 49% over the prior year-end, earnings per share of $.71 and tangible book value per share of $6.56. Return on Average Assets would have been .88% without this one-time adjustment.

“The continuation of our double-digit loan growth, specifically commercial loans to small business and commercial real estate, is the result of our team's efforts in the markets we serve and a strong indication of small business optimism,” says Patricia (Patti) A. Husic, President & CEO of Centric Financial Corporation and Centric Bank. “By nearly every measure, we are shattering expectations with record-breaking organic loan growth, supported by community deposits, and delivering performance returns to our shareholders. Our team is laser focused on our goals and executing the strategic plan.”

"Centric Bank continues to deliver on its commitment to being the community bank of choice for small businesses in Pennsylvania,” says Husic. “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 December 31, 2017, we are #3 in the Commonwealth of Pennsylvania for SBA 7(a) lending, and #1 in the State for banks under $1 billion in assets. 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 at December 31, 2017 grew to $556 million, a 15% increase from year-end 2016.  Net loans grew $69 million, or 16% to $491 million at year-end 2017, driven by increases in commercial loans of $30 million, or 30% and commercial real estate loans of $41 million, or 15% over the prior year end.

Total deposits were $485 million at December 31, 2017, an increase of $65 million, or 15% over the year-end 2016.  Non-interest bearing deposits increased $12 million from a year ago to $71 million at December 31, 2017, comprising 15% of total deposits.   

Net interest income increased 31%, or $5 million over year-end 2016, ending 2017 at $19,959,000.  Provision for loan and lease losses decreased $254,000 from the same period 2016.  Income before tax increased $2 million or 52% over year-end 2016 ending 2017 at $7 million.  Return on average assets for the year ending 2017 was .72%, increasing .01% over year-end 2016.  Non-performing assets as a percentage of total assets was .46% at December 31, 2017, a reduction from .48% year-end 2016.

Fourth quarter 2017 income before tax of $2,051,000 was up 30% over the same period 2016.  Net-interest income increased 19% to $5,355,000 from fourth quarter 2016.  Earnings per share was $.09 for the quarter-end, a decrease of $.08 from the same period 2016.  Tangible book value increased to $6.44 per share at December 31, 2017, an increase of $.57 over December 31, 2016.  Return on average assets for the fourth quarter 2017 was .43%, down from same period 2016 of .90%.

For the year ended December 31, 2017, Centric’s net interest margin improved by 28 basis points to 3.99% from 3.71%, and the Company’s efficiency ratio improved to 63.76% from 66.66% over the same  period last year, respectively.

About Centric Financial Corporation and Centric Bank

A three-time Best Places to Work and Top 50 Fastest-Growing Companies for five years, Centric Financial Corporation is headquartered in south central Pennsylvania with assets of $556 million and remains the 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 industry. With a Five-Star Bauer Financial Rating, Centric Bank ranked #110 in SBA Lending in the United States; ranked #3 in approved SBA 7(a) loans in the Commonwealth of Pennsylvania, and #1 in the State with banks $1 billion and under in asset size.

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 Connect with them on Connect with them on Twitter, Facebook, LinkedIn, and Instagram.

Centric Financial Corporation is traded over the counter (OTC-Pink) - 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.

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