Centric Financial Corporation Announces 3rd Quarter Results Highlighting a 43% Increase in Earnings and Loan Growth of 41%

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Centric Financial Corp, Inc. (“Centric”) (CFCX), the holding company for Centric Bank, reported unaudited results for the third quarter of 2016 highlighting an increase of net income after taxes of 43% from the quarter ended September 30, 2015, and loan growth of 41% from that same period end in 2015.

With many large institutions sacrificing the deep trust a customer has with her banker – and disappearing altogether from Main Street – Centric is expanding our services to small businesses and entrepreneurs.

Centric Financial Corp, Inc. (“Centric”) (CFCX), the holding company for Centric Bank, reported unaudited results for the third quarter of 2016 highlighting an increase of net income after taxes of 43% from the quarter ended September 30, 2015, and loan growth of 41% from that same period end in 2015.

“Small business represents 99.7% of all employer firms in the U.S., and they are America’s job creators. With many large institutions sacrificing the deep trust a customer has with her banker – and disappearing altogether from Main Street – Centric is expanding our services to small businesses and entrepreneurs. Our extraordinary business development and lending teams have built strong relationships with small businesses in every town and city we serve. No business is too small, no dream too big. Our lending packages, access to decision makers, quick responses, and business insights have inspired trust and a headline – making 41% loan growth. Lots of people say ‘We need to grow the economy.’ We’re very proud to have the team that makes it happen,” says Patricia A. Husic, President & CEO, Centric Bank. “November is Small Business Month in Pennsylvania, and we anticipate ending 2016 with continued momentum in SBA loans and organic loan growth.”

Total assets were $464 million at September 30, 2016, an increase of $115 million, or 33% for the same period end 2015. Total loans grew $117 million to $406 million, an increase of 41% from the same period for the prior year. Loan growth during 2016 was driven by an increase in Commercial & Industrial loans by $34.2 million, or a 63% increase; and commercial real estate loans increased by $49.1 million, or 23%. Centric Bank remains one of the top community bank leaders in organic loan growth in central Pennsylvania.

Total deposits were $402 million at September 30, 2016, an increase of $90 million, or 29% over the same period end 2015. Non-interest bearing deposits are 14% of total deposits, and remain a significant component of deposits, a key strategic initiative of Centric Bank. To fund our robust loan growth, our community deposits grew by $91 million during 2016.

Quarterly net income after taxes was $879,000, an increase of 22%, or $328,000 over the third quarter 2015. Net-interest income increased to $4,052,000, an increase of $1,191,000, or a 42% increase from the same quarter of 2015. Earnings per share increased to .14; an increase of .03 per share from the second quarter 2016. Tangible book value increased to $5.58 per share; an increase of $.21 per share from year end 2015; or 4% growth. Return on average assets for the quarter ended September 30, 2016, increased to .79% from .63% at the same quarter prior year; net interest margin improved by 32 basis points, increasing to 3.80% from 3.48%; and the efficiency ratio improved to 66.7% from 71.5% over the same periods, respectively. Our team is laser focused on our strategic initiatives and is making significant strides to meet and exceed on our goals for 2016.

For the nine months ending September 30, 2016, the provision for loan losses increased $714,000 over the same period 2015, and increased by $190,000 from the second quarter 2016, due to robust loan growth. Asset quality remains steady with non-performing assets as a percentage of total assets at .60% for the third quarter 2016, a reduction from .72% during the same quarter 2015.

For the third quarter 2016, non-interest income grew by $427,000 from the same period in 2015; and grew by $1,013,000 for the first nine months of 2016 to $2,672,000, largely a result of SBA loan sales. The most significant increase in non-interest expenses was personnel expense; an increase of 31% over the first nine months of 2015. Husic commented, “Our most significant investment of the third quarter was strengthening our team—we increased personnel by 31% over the first nine months of 2015. Our employees are Centric Bank’s greatest asset, and we’re not the only ones who feel that way. American Banker recognized Centric Bank last month as a Top Team in the 25 Most Powerful Women in Banking,” says Husic. “Recruiting key talent that drives results for our customers and exceeds stretch goals of the bank is our fuel for growth."

About Centric Bank

A three-time Best Places to Work and Top 50 Fastest-Growing Companies for four years, Centric Bank is headquartered in south central Pennsylvania with assets of $464 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 core financial services to businesses, professionals, individuals, and families. Centric Bank’s specializes in niche markets, and its Flagship, Doctor Centric Bank, leads the market in our concierge approach to financing the medical community. With a Five-Star Bauer Financial Rating, Centric Bank is also the #1 Lender in the Pennsylvania Eastern District for SBA 7(a) loans, which comprises 40 out of the 67 counties in the Commonwealth, as of September 30, 2016, and a Top 10 Lender for SBA Loans in the Philadelphia Region.

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

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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Patti Husic
Centric Bank
+1 717.909.8309
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Centric Bank

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