Centric Financial Corporation Announces 2016 Year-End Results with 36% Loan Growth, 85% Commercial Loan Growth, and 66% Net Income After Taxes Increase

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Centric Bank continues to be the champion for small business in Central and Southeastern PA, and a U.S. Top 100 leader in SBA lending. Our 2016 numbers indicate that the men and women on Main Street are catching a long-awaited wave.

Centric Bank President and CEO Patricia A. (Patti) Husic.

Our Centric Bank team is laser focused on our strategic objectives and delivered double digit loan, deposit, and asset growth, as well as record breaking net income after tax results for the Company.

Centric Financial Corp, Inc. (“Centric”) (CFCX), the holding company for Centric Bank, reported unaudited results for the year ended 2016 of $3,042,000 in net income after taxes, a 66% increase, or $1,205,000 over the year ended 2015. Net interest margin expanded from 3.48% to 3.71%; cost of deposits reduced from .70% to .64%; and efficiency ratio improved from 73% to 66%.

Earnings per share at year end was $.48/share; an increase of $.06/share or 14% over the prior year end. Return on Average Assets increased to .70% from .54% over the same period; Return on Average Equity increased from 7.84% to 8.51% at the end of 2016, or a 9% improvement from 2015.

The fourth quarter 2016 highlighted an increase of net income after taxes of 103% from the quarter ended December 31, 2015, increasing to $1,076,000, while loan growth climbed 36% over the same period end in 2015.

Centric Bank continues to be the champion for small business in Central and Southeastern PA, and a U.S. Top 100 leader in SBA lending. Our 2016 numbers indicate that the men and women on Main Street are catching a long-awaited wave. And we’re proud to contribute to their economic confidence and help propel their growth, says Patricia A. (Patti) Husic, President and CEO of Centric Financial Corp, Inc. and Centric Bank. “Our team is laser focused on our strategic objectives and delivered double digit loan, deposit, and asset growth, as well as record breaking net income after tax results for the Company.”

Financial Condition
Total assets were $482 million at December 31, 2016, an increase of $109 million, or 29% for the same period end 2015. Total loans grew $112 million to $427 million, an increase of 36% from the same period for the prior year. Loan growth during 2016 was driven by an increase in Commercial loans by $46.1 million, or an 85% increase; and commercial real estate loans increased by $57.1 million, or 27%. The Company continues to grow in our core and new markets with our relationship-focused team and capitalizing on the market disruption which stemmed from the bank mergers.

Total deposits were $420 million at December 31, 2016, an increase of $109 million, or 35% over the same period end 2015. Non-interest bearing deposits are 16% of total deposits and remain a significant component of deposits and key strategic initiative of Centric Bank.

For the twelve months ending December 31, 2016, total income was $3,042,000 versus the $1,837,000 for the year ended 2015, and net interest income increased 36% to $15,231,000 for the current year.

Asset Quality
Asset quality remains pristine, with non-performing assets as a percentage of total assets at 0.47% at December 31, 2016, a reduction from 0.67% from the period end 2015.

Provision for loan losses totaled $1,650,000; an increase of $974,000 in 2016 over the same period in 2015. The increase was a result of robust loan growth. For the fourth quarter 2016, the provision expense decreased by $160,000 from the third quarter 2016.

Non-interest Income and Non-Interest Expenses
For the fourth quarter 2016, non-interest income grew by $527,000 from the same period in 2015; and grew by $1,539,000 for the twelve months ending December 31, 2016 to $3,774,000, or 69%, largely as a result of SBA loan sales. The most significant increase in non-interest expenses was personnel expense; an increase of 34% over year to date 2015.

The year 2016 was a milestone for Patti Husic and Centric Bank. In October, Centric Bank was named a Top Team in American Banker’s 25 Most Powerful Women in Banking, an exclamation point to Husic’s intentional advancement of high-achieving women. Husic herself ascended to #17 in the Most Powerful Women in Banking list, a recognition that has brought national attention to the bank’s organic lending successes and Husic’s commitment to ‘Be the Difference Maker’ for the men and women on Main Street.

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 $482 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 and agricultural industries. With a Five-Star Bauer Financial Rating, Centric Bank, named a Top 100 SBA Lender in the United States, also ranked #1 in approved SBA 7(a) loans in the Eastern District as of December 31, 2016. The bank is also a Top 20 Lender for SBA Loans in the Philadelphia Region.

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.

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Anne Deeter Gallaher
@CentricBank
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