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Centric Financial Corporation Announces Record Breaking First Quarter 2018 Results for Net Income and Loan Growth

Harrisburg, Pennsylvania (April 25, 2018)  –  Centric Financial Corporation, Inc. (“Centric”) (CFCX), the holding company for Centric Bank, reported unaudited results for the first quarter ended March 31, 2018, of net income after taxes of $1,619,000, a 107% increase over the same period in 2017.  Net income per share for the first quarter 2018 was $.25, up $.13 over the same period in 2017.

Earnings in 2018 reflected increased interest income from our loan growth as well as the increasing loan yield of our commercial portfolio. The net interest margin grew to 4.03% for the period ending March 31, 2018 as compared to 3.96% for the same period in 2017. Patricia A. Husic, President & CEO commented, “Our team continues to be intentional in our growth and disciplined in our pricing; we are laser focused on successfully executing our strategic plan. The loan growth in the first quarter was a result of the financing to the entrepreneurs, the job creators in our communities, the small business customers.”

Net interest income totaled $5.5 million for the quarter ended March 31, 2018, a 20% increase compared with $4.6 million for the same period in 2017.

The Company recorded a $435 thousand provision for loan losses for the quarter ended March 31, 2018, equaling the same amount in the first quarter of 2017. In calculating the required provision for loan losses, both quantitative and qualitative factors are considered in the determination of the adequacy of the allowance for loan losses. The Company has continued to experience growth in its loan portfolio and generally stable economic and market conditions over the last few years.

Non-interest income for the quarter ended March 31, 2018, totaled $1.1 million compared with $558 thousand in 2017, an increase of 96.3% from the first quarter of 2017. SBA 7(a) sales, as well as residential mortgage sales, were the primary drivers of the non-interest income. Non-interest expenses totaled $4.1 million for the quarter ended March 31, 2018, compared with $3.5 million for the corresponding 2017 period.

The key drivers of increases in non-interest expenses in the first quarter of 2018 were salaries and employee benefits, occupancy expense and data processing expenses. The Company expanded its executive leadership team in December 2017, with the addition of a CIO, Director of Operations, as well as other hires in its operational area to support infrastructure. Executive and operations personnel consolidated and relocated to a larger facility in November 2017 with the lease expense beginning in January 2018.

Assets totaled $611 million at March 31, 2018, an increase of $101 million from $510 million at March 31, 2017, or 20%.  Loans grew to $549 million from $450 million, an increase of 22%, or $99 million from March 31, 2017. Community deposits grew to $523 million from $429 million or 22%, from the same period in 2017. Non-interest bearing deposits grew to $76 million, an increase of $16 million or 28%.  Community deposits were the primary funding source for commercial loans.
         
The asset quality ratio of non-performing assets as a percentage of total assets was .41% at March 31, 2018, an increase of 0.01% from the same period in 2017.  Earnings per share increased to $0.25 from $0.12 in the first quarter 2017.  Tangible book value increased to $6.68 per share at March 31, 2018, an increase of $0.69 over the first quarter 2017.  Return on average assets for the first quarter 2018 was 1.14%, up 77% from the first quarter of 2017 at .65%, while return on average equity ended the quarter at 15.28%, an increase of 86% from the first quarter of 2017 which reported at 8.21%. The Company’s efficiency ratio improved to 62.07% from 68.03% over the same period last year.

About Centric Financial Corporation and Centric Bank

A three-time Best Places to Work and a Top 50 Fastest-Growing Companies for five years, Centric Bank is headquartered in south central Pennsylvania with assets of over $611 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. Centric Bank ranks #1 in approved SBA 7(a) loans in the Commonwealth of Pennsylvania for banks under $1 billion in assets as of December 31, 2017.

Founded in 2007, Pennsylvania-based Centric Bank has financial centers located in Harrisburg, Hershey, Mechanicsburg, and Camp Hill, loan production offices in Lancaster and suburban Philadelphia, and an Operations and Executive Office campus in Hampden Township, Cumberland County. To learn more about Centric Bank, call 717.657.7727 or visit CentricBank.com. 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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