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Centric Financial Corporation,
PO Box 62090
Harrisburg, PA 17106-2090

Investor Relations
Sandra Schultz, EVP, CFO
Phone: 717.909.8305
Fax: 717.657.7748
Email: send us a secure email

Transfer Agent
American Stock Transfer & Trust Company, LLC
ATTN: Centric Financial Corporation
6201 15th Avenue
Brooklyn, NY 11219
Phone: 800-937-5449
Email: info@amstock.com

Investor Relations

Press Release

Centric Financial Corporation Announces 1st Quarter 2019 Results; 9% Increase in Earnings and Double-Digit Growth in Loans, Deposits, and Assets

Company Release - 5/3/2019 5:26 PM ET

HARRISBURG, Pa., May 3, 2019 /PRNewswire/ -- Centric Financial Corporation ("Centric" or "the Company") (OTC: CFCX), the parent company of Centric Bank ("the Bank"), today reported net income of $1,757,000 or $0.21 per common share basic for the first quarter of 2019.  Compared to first quarter 2018, net income increased $138,000, or 9%. 

Centric Financial Corporation (PRNewsfoto/Centric Financial Corp, Inc.)

Highlights

  • Total assets increased $124 million or 20% over March 31, 2018.
  • Net growth in loans outstanding of $88 million or 16% during the last 12 months.
  • Total deposits grew $91 million or 17% from March 31, 2018.
  • Total revenue grew $2 million or 28% over the three months ended March 2018.
  • Net income available to common shareholders increased $138,000 or 9% over the three months ended March 2018.
  • The Company's year-to-date net interest margin experienced an eight basis point decline to 3.95% compared to the same period one year prior and held constant with the fourth quarter of 2018.
  • Year-to-date Return on Average Assets was .99%, a decrease of 0.15% from the three months ended March 31, 2018.

"Our first quarter results reflect a positive earnings growth as well as the continuation of our organic growth of loans and deposits in the communities that we serve," says Patricia (Patti) A. Husic, President & CEO of Centric Financial Corporation and Centric Bank. "Regulatory approval has been obtained for our new branch in Devon and the construction process began on May 1 for this financial center. Our team remains laser focused on executing the strategic plan and successfully growing our core banking business, profitability, and delivering performance returns to our shareholders."

Operating Results

Centric's net interest income was $6,753,000 for the three months ended March 31, 2019, an increase of $1,291,000 or 24% over the first quarter 2018.  Increased average earning assets was the significant factor to the increase in net interest income for the quarter's results. First quarter 2019 over first quarter 2018 net interest margin has experienced an eight basis point decline to 3.95% with cost of deposits at 1.42% and yield on earning assets at 5.40%.

Non-interest income totaled $850,000 for the first quarter 2019, a decrease from the first quarter 2018 of $246,000 or 22%.  The decrease was attributable to reduced gain on the sale of SBA and mortgage loans of $533,000, or 88% and $30,000, or 24% respectively.  The change in income from SBA sales was affected by the 35 day long partial government shutdown which ended on January 25, 2019 and the backlog of work the shutdown created with the Small Business Administration.  Other fees on loans increased $228,000 or 156%, other non-interest income increased $146,000, or 155% over the first quarter 2018 results.

Non-interest expense for the first quarter 2019 was $4,868,000, an increase of $776,000 or 19% over the same period prior year.  The increase is due primarily to higher salary and benefit costs of $402,000 or 17%, with increased professional services $63,000 or 59%, and increased directors fees $61,000, or 184%.  Licensing and software expense increased $50,000 or 50% due to increased staffing and new technology initiatives, and data processing expense increased $34,000, or 14%. 

Balance Sheet

Total assets at March 31, 2019 were $734,152,000 compared to $610,599,000 at March 31, 2018, an increase of $123,553,000 or 20%.  The increase is due to strong loan growth and an increase in investment securities and liquid assets over the same period prior-year.  Total assets increased $29,756,000 or 4% from December 31, 2018.

Total loans for the period end March 31, 2019 were $637,608,000, an increase of $89,388,000 or 16% over the same period prior year and $11,881,000 or 2% over December 31, 2018.  The increase in loans for both prior year and prior quarter are attributed to the growth in commercial and industrial loans of $35,530,000 or 23% and $3,210,000 or 2% respectively, and commercial real estate loans of $52,905,000 or 16% and $10,396,000 or 3% respectively.

Total deposits ended March 31, 2019 at $613,921,000, an increase of $90,528,000 or 17% over the same period 2018 and increased $27,736,000 or 5% from the fourth quarter 2018.  The growth in deposits is attributed to growth in all segments with money market and certificates of deposit increasing $42,806,000, or 68% and $42,806,000, or 18%, respectively, over the same period prior year, and increasing $11,122,000, or 10% and $10,034,000, or 4%, respectively, over December 31, 2018.  The increase in non-interest bearing deposits was $16,550,000 or 22% over the same period prior year and decreased $1,589,000 or 2% from the prior quarter end.  The increase in time deposits from the first quarter of 2018 and the prior quarter has been the combined result of new and increased branch relationships and wholesale funding.

The impact from the lease accounting standard effective January 1, 2019 increased other assets $5,578,000 and borrowings $5,602,000.

Shareholders equity ended the period at $71,719,000, an increase of $28,475,000 or 66% from March 31, 2018 and an increase of $1,946,000 or 3% from December 31, 2018.  Regulatory capital ratios for the bank exceed "well capitalized" at March 31, 2019 and 2018, and December 31, 2018.

Asset Quality

Asset quality continues to be good.  The first quarter 2019 net charge-off ratio to average loans was 0.13%, an increase of 0.14% from the fourth quarter 2018 result of -0.01%, and an increase of 0.07% from March 31, 2018.  Non-performing assets to total assets was 0.76%, an increase from the prior quarter and first quarter prior year of 0.35%.  The change, current quarter over last quarter, in non-performing assets is due to non-accrual loans increasing $3,464,000 offset by loans past due greater than 90 days decreasing $712,000.  The ratio of allowance for loan and lease losses to total loans was 1.14% at March 31, 2019.  Management believes the allowance for loan and leases losses at March 31, 2019 adequately reflects the risk inherent in the loan portfolio.

About the Company

An American Banker Best Banks to Work For 2018, a three-time Best Places to Work and Top 50 Fastest-Growing Companies for six years, Centric Financial Corporation is headquartered in south central Pennsylvania with assets of $734 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, named a Top SBA Lender in the United States, also ranked #1 in approved SBA 7(a) loans in the Commonwealth for banks under $1 billion in assets as of September 30, 2018. 

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) - 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.

 

Consolidated Balance Sheet (Unaudited)






At Period End



Mar 31,

Dec 31,

Mar 31,


(Dollars in thousands)

2019

2018

2018


Assets





Cash and cash equivalents

$          47,483

$          36,308

$          33,863


Other investments

27,541

28,544

14,890


Loans, net of allowance for loan and lease losses

630,362

618,814

541,974


Premises and equipment

12,308

6,439

6,650


Accrued interest receivable

2,279

1,993

1,496


Other assets

14,179

12,298

11,726


Total Assets

$        734,152

$        704,396

$        610,599







Liabilities





   Noninterest-bearing deposits

92,096

93,685

75,546


   Interest-bearing demand deposits

128,770

120,601

145,408


   Money market and savings

118,213

107,091

70,403


   Certificates of deposit

274,842

264,808

232,036


  Interest-bearing deposits

521,825

492,500

447,847


      Total deposits

613,921

586,185

523,393


Short-term borrowings

3,000

15,500

14,000


Long-term debt

43,102

30,500

27,607


Accrued interest payable

601

511

479


Other liabilities

1,809

1,927

1,876


Total Liabilities

662,433

634,623

567,355


Total Shareholders' Equity

71,719

69,773

43,244


Total Liabilities and Shareholders' Equity

$        734,152

$        704,396

$        610,599












Consolidated Statement of Income (Unaudited)






Three months ended



Mar 31,

Dec 31,

Mar 31,


(Dollars in thousands)

2019

2018

2018


Interest income





Interest and dividends on securities

$                269

$                231

$                134


Interest and fees on loans

8,752

8,667

6,545


Other

209

291

85


   Total interest income

9,230

9,189

6,764


Interest expense





Interest on deposits

2,105

1,911

1,037


Interest on borrowings

372

394

265


   Total interest expense

2,477

2,305

1,302


Net interest income

6,753

6,884

5,462


Provision for loan losses

535

125

435


Net interest income after provision expense

6,218

6,759

5,027


Noninterest income





Gain on sale of SBA loans

72

249

605


Gain on sale of mortgage loans

95

170

125


Other non-interest income

683

767

366


   Noninterest income

850

1,186

1,096


Noninterest expense





Salaries and benefits

2,788

2,902

2,386


Occupancy and equipment

470

506

500


Professional fees

169

167

106


Data processing

269

265

235


Advertising and marketing

188

121

144


Other non-interest expense

984

1,379

721


   Noninterest expense

4,868

5,340

4,092


Income before taxes

2,200

2,605

2,031


Income tax expense

443

517

412


Net income available to common shareholders

$             1,757

$             2,088

$             1,619


 

 







(Dollars in thousands except per share) (Unaudited)

Three months ended


Mar 31,

Dec 31,

Sep 30,

Jun 30,

Mar 31,

Earnings and Per Share Data

2019

2018

2018

2018

2018

Net income

$        1,757

$        2,088

$        2,399

$        1,898

$        1,619

Basic earnings per common share

$          0.21

$          0.24

$          0.28

$          0.26

$          0.25

Book value  (at period end)

$          8.20

$          8.01

$          7.74

$          7.48

$          6.76

Tangible book value(at period end)

$          8.15

$          7.95

$          7.69

$          7.42

$          6.68

Common shares outstanding

8,742,290

8,714,975

8,698,318

8,686,988

6,397,161

Average shares outstanding - basic (period to date)

8,706,540

8,696,391

8,675,765

7,309,401

6,376,017







Performance Ratios (period to date)






Return on average assets 

0.99%

1.16%

1.35%

1.21%

1.14%

Return on average equity 

9.89%

12.15%

14.48%

14.77%

15.28%

Efficiency ratio

64.00%

66.04%

56.33%

60.44%

62.07%

Net interest margin

3.95%

3.91%

3.87%

4.00%

4.03%







Capital Ratios (at period end)






Shareholders' equity/asset ratio

9.77%

9.91%

9.40%

9.53%

7.08%

Tangible common equity/tangible assets

9.71%

9.84%

9.33%

9.46%

7.01%

Tier I leverage ratio (bank)

11.86%

11.48%

11.26%

12.29%

10.18%

Common tier 1 capital/risk-based capital (bank)

12.87%

12.86%

12.68%

12.61%

10.51%

Tier 1 risk-based capital (bank)

12.87%

12.86%

12.68%

12.61%

10.51%

Total risk-based capital (bank)

14.00%

13.96%

13.79%

13.73%

11.68%







Asset Quality Ratios 






Net charge-offs/average loans (period to date)

0.13%

-0.01%

0.21%

0.01%

0.06%

Nonperforming assets/total assets (at period end)

0.76%

0.41%

0.25%

0.32%

0.41%

Allowance for loan & leases losses as a % of loans

1.14%

1.10%

1.09%

1.11%

1.14%

Allowance for loan & leases losses/nonaccrual loans

159.73%

644.11%

616.52%

491.62%

444.54%

 

Contact: 

Patricia A. Husic  


President & CEO


717.909.8309

 

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SOURCE Centric Financial Corporation

Contact Information

Centric Financial Corporation,
PO Box 62090
Harrisburg, PA 17106-2090

Investor Relations
Sandra Schultz, EVP, CFO
Phone: 717.909.8305
Fax: 717.657.7748
Email: send us a secure email

Transfer Agent
American Stock Transfer & Trust Company, LLC
ATTN: Centric Financial Corporation
6201 15th Avenue
Brooklyn, NY 11219
Phone: 800-937-5449
Email: info@amstock.com