Subjects: ERN, OTC
Centric Financial Corporation Announces Q3 2017 Results with 61% Increase in Year-to-date Earnings and Double-Digit Growth in Loans, Deposits, and Assets
HARRISBURG, Pa., Oct. 23, 2017 /PRNewswire/ -- Centric Financial Corp, Inc. ("Centric") (CFCX), the holding company for Centric Bank, reported unaudited results for the first nine months of 2017 of $3,168,000 in net income, a 61% increase over the $1,966,000 reported for the same period 2016. Net income for the third quarter 2017 increased 32% to $1,162,000, over the same quarter for 2016. Net income per share for the quarter ended September 30, 2017 was $.18 as compared to $.14 for the same period in 2016. Earnings per share for the period ended September 30, 2017 was $.50 for the nine months of 2017, up $.19, or 61% over the same period 2016.
Total loans increased by $68.0 million from September 30, 2016, an increase of 17%. Total loans outstanding at September 30, 2017 were $474 million.
"Centric Bank continues to deliver on its commitment to being the community bank of choice for small businesses in Pennsylvania", says Patricia A. (Patti) Husic, President & CEO. "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 September 30, 2017, we are #2 in the Commonwealth of Pennsylvania for SBA 7(a) lending. 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 were $533 million at September 30, 2017, an increase of $69 million, or 15% from the same period ended in 2016. Loan growth for the 12 months ended September 30, 2017 was a result of the increase in commercial loans of $30 million, a 33% increase, and commercial real estate loans of $25 million, a 9% increase.
Total deposits were $463 million at September 30, 2017, an increase of $60 million, or 15% over the same period end 2016. Non-interest bearing deposits are 16% of total deposits at September 30, 2017.
Net interest income increased 36% to $14,604,000 from $10,746,000 for the first nine months due to increased loan originations, while the provision for loan losses decreased $134,000 compared to 2016 due to asset quality. The asset quality ratio of non-performing assets as a percentage of total assets continues to improve to .35% at September 30, 2017, a reduction from 0.60% for the same period 2016.
Tangible book value increased to $6.35 per share, an increase of $0.18 over last quarter end and $0.63 over September 30, 2016. Return on average assets for the third quarter 2017 was .88% up .09% from .79% at the same quarter prior year; net interest margin improved by 19 basis points, increasing to 3.99%; with the efficiency ratio at 64.9%.
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FINANCIAL HIGHLIGHTS (unaudited) |
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Consolidated Balance Sheet |
At Period End |
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Sep 30, |
Jun 30, |
Sep 30, |
|||||
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(Dollars in thousands) |
2017 |
2017 |
2016 |
||||
|
Assets |
|||||||
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Cash and cash equivalents |
$ 30,133 |
$ 29,326 |
$ 26,604 |
||||
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Other investments |
15,065 |
17,069 |
18,093 |
||||
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Loans, net of allowance for loan and lease losses |
468,348 |
458,767 |
401,745 |
||||
|
Premises and equipment |
6,518 |
6,560 |
6,901 |
||||
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Accrued interest receivable |
1,328 |
1,182 |
997 |
||||
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Other assets |
11,528 |
11,606 |
9,829 |
||||
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Total Assets |
$ 532,920 |
$ 524,510 |
$ 464,169 |
||||
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Liabilities |
|||||||
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Deposits - Noninterest-bearing |
73,678 |
77,260 |
56,227 |
||||
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Deposits - Interest-bearing |
388,910 |
381,321 |
345,928 |
||||
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Total deposits |
462,588 |
458,581 |
402,155 |
||||
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Short-term borrowings |
2,500 |
2,000 |
15,000 |
||||
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Long-term debt |
24,734 |
22,410 |
9,748 |
||||
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Accrued interest payable |
308 |
144 |
102 |
||||
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Other liabilities |
1,779 |
1,579 |
554 |
||||
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Total Liabilities |
491,909 |
484,714 |
427,559 |
||||
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Total Shareholders' Equity |
41,011 |
39,796 |
36,610 |
||||
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Total Liabilities and Shareholders' Equity |
$ 532,920 |
$ 524,510 |
$ 464,169 |
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Consolidated Statement of Income |
Three months ended |
Nine months ended | |||||
|
Sep 30, |
Jun 30, |
Sep 30, |
Sep 30, |
Sep 30, | |||
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(Dollars in thousands) |
2017 |
2017 |
2016 |
2017 |
2016 | ||
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Interest income |
|||||||
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Interest and dividends on securities |
$ 135 |
$ 135 |
$ 142 |
$ 397 |
$ 445 | ||
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Interest and fees on loans |
5,925 |
5,627 |
4,619 |
16,754 |
12,282 | ||
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Other |
79 |
62 |
19 |
170 |
91 | ||
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Total interest income |
6,139 |
5,824 |
4,780 |
17,321 |
12,818 | ||
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Interest expense |
|||||||
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Interest on deposits |
776 |
707 |
582 |
2,136 |
1,653 | ||
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Interest on borrowings |
232 |
203 |
146 |
581 |
419 | ||
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Total interest expense |
1,008 |
910 |
728 |
2,717 |
2,072 | ||
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Net interest income |
5,131 |
4,914 |
4,052 |
14,604 |
10,746 | ||
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Provision for loan losses |
261 |
380 |
600 |
1,076 |
1,210 | ||
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Net interest income after provision expense |
4,870 |
4,534 |
3,452 |
13,528 |
9,536 | ||
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Noninterest income |
661 |
1,011 |
1,111 |
2,230 |
2,672 | ||
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Noninterest expense |
3,801 |
3,729 |
3,277 |
11,070 |
9,353 | ||
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Income before taxes |
1,730 |
1,816 |
1,286 |
4,688 |
2,855 | ||
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Income tax expense |
568 |
591 |
407 |
1,520 |
889 | ||
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Net income available to common shareholders |
1,162 |
1,225 |
879 |
3,168 |
1,966 | ||
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Per Share Data |
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Net income - basic (period to date) |
$ 0.18 |
$ 0.19 |
$ 0.14 |
$ 0.50 |
$ 0.31 | ||
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Book value (at period end) |
$ 6.43 |
$ 6.25 |
$ 5.80 |
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Tangible book value (at period end) |
$ 6.35 |
$ 6.17 |
$ 5.72 |
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Close price (at period end) |
$ 7.95 |
$ 7.75 |
$ 8.55 |
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Close price /book value ratio |
123.6% |
124.0% |
147.4% |
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Average shares outstanding - basic (period to date) |
6,355,877 |
6,350,937 |
6,314,913 |
6,351,870 |
6,312,274 | ||
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Financial Ratios |
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Shareholders' equity/asset ratio |
7.70% |
7.59% |
7.89% |
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Return on average assets (period to date) |
0.88% |
0.95% |
0.79% |
0.83% |
0.63% | ||
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Return on average equity (period to date) |
11.50% |
12.51% |
9.73% |
10.77% |
7.42% | ||
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Net charge-offs/average loans (period to date) |
0.00% |
-0.05% |
0.05% |
0.00% |
0.08% | ||
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Nonperforming assets/total assets |
0.35% |
0.36% |
0.60% |
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Allowance for loan & leases losses as a % of loans |
1.18% |
1.15% |
1.04% |
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Allowance for loan & leases losses/nonaccrual loans |
943.52% |
876.09% |
422.60% |
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About Centric Financial Corporation and Centric Bank
A three-time Best Places to Work and named a Top 50 Fastest-Growing Companies for five years, Centric Bank is headquartered in south central Pennsylvania with assets of $533 million and remains a 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 was named a Top 100 SBA 7(a) Lender in the United States in 2016 and ranked #2 in approved SBA 7(a) loans in the Commonwealth of Pennsylvania. As of September 30, 2017, the bank continues to rank #2 in the SBA's Eastern District of Pennsylvania for SBA 7(a) loan volume.
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.
Contact: Patricia A. Husic
President & CEO
717.909.8309
SOURCE Centric Financial Corp, Inc.
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