Centric Financial Corporation Announces Second Quarter 2021 Earnings
Centric Financial Corporation (CFCX) reported strong financial results for Q2 2021, with a net income of $3.6 million ($0.42 per diluted share), a 59% increase from Q2 2020. Year-to-date net income reached $7.2 million, up 90% year-over-year. Key highlights include a net interest margin of 3.94%, a decrease in cost of deposits to 0.40%, and organic loan growth of $35 million since Q1. Return on Assets (ROA) and Return on Equity (ROE) stood at 1.29% and 15.99%, respectively. Despite increased noninterest expenses, Centric maintains a disciplined growth strategy with strong commercial lending activity.
- Net income for Q2 2021 increased by $1.3 million (59%) year-over-year.
- Year-to-date net income reached $7.2 million, a 90% increase compared to 2020.
- Net interest margin improved to 3.94%, up 34 basis points from Q2 2020.
- Organic loan growth of $35 million from Q1 2021 and $104 million from Q2 2020.
- Tangible book value per share rose by $1.52 (16%) over the past year.
- Noninterest income decreased to $922 thousand in Q2 2021 from $1.2 million in Q1.
- Noninterest expenses increased by 22% year-over-year, largely due to salary and benefit increases.
HARRISBURG, Pa., Aug. 5, 2021 /PRNewswire/ -- Centric Financial Corporation ("Centric" or "the Company") (OTC: CFCX), the parent company of Centric Bank ("the Bank"), reported net income of
Highlights of Performance:
- Net income increased
$1.3 million , or59% , over second quarter 2020, an increase of$0.17 and$0.16 per common share-basic and diluted, respectively. - Net interest margin increased 34 basis points over second quarter 2020, ending at
3.94% . - Cost of deposits decreased to
0.40% , an improvement of 4 and 26 basis points, respectively, from the previous quarter and second quarter 2020. - Return on Average Assets of
1.29% , increased37% over second quarter 2020 and declined3% from the first quarter. For the first six months of 2021 ROAA amounted to1.31% , up from0.86% for the same period last year. - Second quarter Return on Average Equity of
15.99% , decreased5% from last quarter, and increased43% over second quarter 2020. - Tangible book value per share of
$10.79 increased$0.41 per share, or4% , from the previous quarter and increased$1.52 per share, or16% over the second quarter 2020. - Organic loan growth (gross loans excluding the impact of PPP loans) increased
$35 million over the first quarter and$104 million over the second quarter 2020.
Patricia A. Husic, President & CEO of Centric Financial Corporation and Centric Bank stated, "We are very pleased with this quarter's results, which are highlighted by our increased net income, expansion of our net interest margin, and strong quarter of commercial lending activity. Year-to-date ROA is
Our commercial lending grew by
Centric remains disciplined on smart, profitable growth and focused on executing our key strategic initiatives."
Results of Operations – Second Quarter
Net income for the quarter ended June 30, 2020 was
Net interest income for the quarter was
Noninterest income totaled
Changes from the second quarter 2020 noninterest income included increases of
Noninterest expense of
Compared to second quarter 2020, noninterest expenses increased
Results of Operations – Year to Date
Net income for the first six months of 2021 increased nearly two times the prior year, ending at
Net interest income increased
Noninterest income totaled
Noninterest expense totaled
Asset Quality
Provision expense for the first and second quarter remained flat at
At June 30, 2021, nonperforming assets totaled
At Period End | |||||
Jun 30, | Mar 31, | Dec 31, | Sep 30, | Jun 30, | |
Asset Quality (in thousands) | 2021 | 2021 | 2020 | 2020 | 2020 |
Nonaccrual loans | $ 10,178 | $ 10,120 | $ 10,811 | $ 8,568 | $ 4,312 |
Restructured loans still accruing | 188 | - | 134 | 460 | 2,749 |
Loans 90+ days past due & still accruing | 4,692 | 1,937 | 1,423 | 2,969 | 3,477 |
OREO | - | - | - | - | - |
Total nonperforming assets | $ 15,057 | $ 12,057 | $ 12,369 | $ 11,997 | $ 10,538 |
Total assets | 1,110,872 | 1,122,986 | 1,118,012 | 1,074,756 | 1,040,400 |
Nonperforming assets/total assets |
SBA loans that were considered nonperforming at June 30, 2021 totaled
Balance Sheet
At June 30, 2021, Centric's total assets were
Total loans ended the period at
Investments in securities remained consistent with the prior quarter and increased
Total deposits ended the period at
From June 30, 2020, core deposits in money market accounts grew
Short-term borrowings totaled
Shareholders' equity increased
Centric Financial Corporation | |||
Consolidated Balance Sheet (Unaudited) | |||
At Period End | |||
Jun 30, | Mar 31, | Jun 30, | |
(Dollars in thousands) | 2021 | 2021 | 2020 |
Assets | |||
Cash and cash equivalents | $ 78,309 | $ 52,223 | $ 55,752 |
Other investments | 44,401 | 44,041 | 35,414 |
Loans | 960,193 | 998,210 | 920,200 |
Less: allowance for loan losses | (11,082) | (10,881) | (9,796) |
Net loans | 949,111 | 987,329 | 910,404 |
Premises and equipment | 16,341 | 16,713 | 17,679 |
Accrued interest receivable | 5,624 | 6,241 | 4,346 |
Mortgage servicing rights | 1,037 | 1,087 | 1,242 |
Goodwill | 492 | 492 | 492 |
Other assets | 15,557 | 14,860 | 15,071 |
Total Assets | $ 1,110,872 | $ 1,122,986 | $ 1,040,400 |
Liabilities | |||
Noninterest-bearing deposits | 244,342 | 256,342 | 218,246 |
Interest-bearing demand deposits | 266,014 | 249,218 | 248,144 |
Money market and savings | 223,246 | 207,545 | 147,533 |
Certificates of deposit | 211,537 | 234,514 | 237,551 |
Interest-bearing deposits | 700,797 | 691,277 | 633,228 |
Total deposits | 945,139 | 947,619 | 851,474 |
Short-term borrowings | 10,000 | 10,000 | 30,000 |
Long-term debt | 60,687 | 71,070 | 74,117 |
Accrued interest payable | 107 | 141 | 370 |
Other liabilities | 2,961 | 5,965 | 2,759 |
Total Liabilities | 1,018,894 | 1,034,795 | 958,720 |
Total Shareholders' Equity | 91,978 | 88,191 | 81,680 |
Total Liabilities and Shareholders' Equity | $ 1,110,872 | $ 1,122,986 | $ 1,040,400 |
Centric Financial Corporation | ||||||||
Consolidated Statement of Income (Unaudited) | ||||||||
Three months ended | Six months ended | |||||||
Jun 30, | Mar 31, | Dec 31, | Sep 30, | Jun 30, | Jun 30, | Jun 30, | ||
(Dollars in thousands) | 2021 | 2021 | 2020 | 2020 | 2020 | 2021 | 2020 | |
Interest income | ||||||||
Interest and dividends on securities | $ 349 | $ 365 | $ 337 | $ 292 | $ 217 | $ 714 | $ 468 | |
Interest and fees on loans | 11,411 | 11,413 | 10,501 | 10,238 | 9,894 | 22,824 | 19,242 | |
Other | 15 | 16 | 20 | 36 | 47 | 31 | 182 | |
Total interest income | 11,775 | 11,794 | 10,858 | 10,566 | 10,158 | 23,569 | 19,892 | |
Interest expense | ||||||||
Interest on deposits | 937 | 981 | 952 | 1,022 | 1,279 | 1,918 | 3,307 | |
Interest on borrowings | 424 | 501 | 561 | 578 | 581 | 925 | 1,116 | |
Total interest expense | 1,361 | 1,482 | 1,513 | 1,600 | 1,860 | 2,843 | 4,423 | |
Net interest income | 10,414 | 10,312 | 9,345 | 8,966 | 8,298 | 20,726 | 15,469 | |
Provision for loan losses | 450 | 450 | 325 | 975 | 975 | 900 | 1,800 | |
Net interest income after provision expense | 9,964 | 9,862 | 9,020 | 7,991 | 7,323 | 19,826 | 13,669 | |
Noninterest income | ||||||||
Gain on sale of SBA loans | 147 | - | - | 26 | 12 | 147 | 79 | |
Gain on sale of mortgage loans | 313 | 319 | 305 | 251 | 130 | 632 | 282 | |
Other non-interest income | 462 | 693 | 877 | 630 | 581 | 1,155 | 1,134 | |
Noninterest income | 922 | 1,012 | 1,182 | 907 | 723 | 1,934 | 1,495 | |
Noninterest expense | ||||||||
Salaries and benefits | 3,762 | 3,717 | 3,822 | 3,501 | 3,164 | 7,479 | 6,270 | |
Occupancy and equipment | 593 | 628 | 609 | 541 | 518 | 1,221 | 1,073 | |
Professional fees | 202 | 210 | 248 | 199 | 151 | 412 | 300 | |
Data processing | 294 | 280 | 280 | 291 | 267 | 574 | 553 | |
Advertising and marketing | 145 | 171 | 180 | 129 | 70 | 316 | 145 | |
Other non-interest expense | 1,349 | 1,285 | 1,529 | 1,129 | 1,026 | 2,634 | 2,037 | |
Noninterest expense | 6,345 | 6,291 | 6,668 | 5,790 | 5,196 | 12,636 | 10,378 | |
Income before taxes | 4,541 | 4,583 | 3,534 | 3,108 | 2,850 | 9,124 | 4,786 | |
Income tax expense | 943 | 949 | 738 | 647 | 591 | 1,892 | 986 | |
Net income available to common shareholders | $ 3,598 | $ 3,634 | $ 2,796 | $ 2,461 | $ 2,259 | $ 7,232 | $ 3,800 |
Centric Financial Corporation | ||||||||
Per Share Data & Performance Ratios (Unaudited) | ||||||||
(Dollars in thousands except per share) | Three months ended | Six months ended | ||||||
Jun 30, | Mar 31, | Dec 31, | Sep 30, | Jun 30, | Jun 30, | Jun 30, | ||
Earnings and Per Share Data | 2021 | 2021 | 2020 | 2020 | 2020 | 2021 | 2020 | |
Net income | $ 3,598 | $ 3,634 | $ 2,796 | $ 2,461 | $ 2,259 | $ 7,232 | $ 3,800 | |
Basic earnings per common share | $ 0.43 | $ 0.43 | $ 0.33 | $ 0.28 | $ 0.26 | $ 0.86 | $ 0.43 | |
Diluted earnings per common share | $ 0.42 | $ 0.43 | $ 0.33 | $ 0.28 | $ 0.26 | $ 0.85 | $ 0.43 | |
Book value (at period end) | $ 10.85 | $ 10.43 | $ 10.00 | $ 9.69 | $ 9.33 | |||
Tangible book value (at period end) | $ 10.79 | $ 10.38 | $ 9.94 | $ 9.64 | $ 9.27 | |||
Close price (at period end) | $ 9.75 | $ 9.40 | $ 8.58 | $ 7.50 | $ 6.85 | |||
Common shares outstanding | 8,475,143 | 8,452,057 | 8,448,903 | 8,436,407 | 8,758,565 | |||
Weighted average shares - basic | 8,408,969 | 8,402,984 | 8,411,759 | 8,670,112 | 8,742,308 | 8,405,994 | 8,743,994 | |
Weighted average shares - diluted | 8,511,644 | 8,490,150 | 8,434,558 | 8,683,524 | 8,752,821 | 8,500,956 | 8,760,675 | |
Performance Ratios (period to date) | ||||||||
Return on average assets | ||||||||
Return on average equity | ||||||||
Efficiency ratio | ||||||||
Yield on loans | ||||||||
Yield on average earning assets | ||||||||
Cost of deposits | ||||||||
Cost of funds | ||||||||
Net interest margin | ||||||||
Capital Ratios (at period end) | ||||||||
Shareholders' equity / asset ratio | ||||||||
Tangible common equity / tangible assets | ||||||||
Tier I leverage ratio (bank) | ||||||||
Common tier 1 capital/risk-based capital (bank) | ||||||||
Tier 1 risk-based capital (bank) | ||||||||
Total risk-based capital (bank) | ||||||||
Asset Quality Ratios | ||||||||
Net charge-offs/average loans (period to date) | ||||||||
Nonperforming assets / total assets (at period end) | ||||||||
Allowance for loan losses / total loans | ||||||||
Allowance for loan losses / nonaccrual loans |
Centric Financial Corporation | |||||||
Consolidated Average Balance Sheets and Average Yield / Cost (Unaudited) | |||||||
Three Months Ended | |||||||
June 30, 2021 | June 30, 2020 | ||||||
Average | Average | ||||||
Balance | Interest | Rate | Balance | Interest | Rate | ||
INTEREST EARNING ASSETS | |||||||
Fed Funds & Bank Balances | $ 31,197 | $ 15 | 0.20 | $ 30,115 | $ 47 | 0.62 | |
Restricted Stock | 2,786 | 47 | 6.77 | 3,996 | 37 | 3.72 | |
Total Securities | 43,454 | 302 | 2.78 | 31,182 | 181 | 2.32 | |
Total Loans | 983,644 | 11,411 | 4.65 | 860,533 | 9,894 | 4.62 | |
Total Earning Assets | 1,061,081 | 11,775 | 4.45 | 925,826 | 10,158 | 4.41 | |
Allowance for Loan Losses | (11,118) | (9,349) | |||||
Non-earning Assets | 61,386 | 45,882 | |||||
TOTAL AVERAGE ASSETS | $ 1,111,349 | $ 962,358 | |||||
INTEREST BEARING LIABILITIES | |||||||
Checking, Money Market, Savings | 484,832 | 526 | 0.43 | 337,095 | 358 | 0.43 | |
Time Deposits | 208,892 | 411 | 0.79 | 221,840 | 921 | 1.67 | |
Total Interest-Bearing Deposits | 693,724 | 937 | 0.54 | 558,935 | 1,279 | 0.92 | |
Non-Interest-Bearing Deposits | 247,169 | 217,345 | |||||
Total Deposits | 940,893 | 937 | 0.40 | 776,280 | 1,279 | 0.66 | |
Total Borrowings | 77,002 | 424 | 2.19 | 103,100 | 581 | 2.24 | |
Total Interest-Bearing Liabilities | 770,726 | 1,361 | 0.71 | 662,035 | 1,860 | 1.13 | |
Cost of Funds | 0.54 | 0.85 | |||||
Other Liabilities | 3,439 | 2,396 | |||||
TOTAL AVERAGE LIABILITIES | 1,021,334 | 881,775 | |||||
STOCKHOLDER'S EQUITY | 90,015 | 80,583 | |||||
TOTAL AVG. LIABILITIES & EQUITY | $ 1,111,349 | $ 962,358 | |||||
INTEREST RATE SPREAD | 3.74 | 3.29 | |||||
NET INTEREST INCOME | $ 8,298 | ||||||
INTEREST RATE MARGIN | 3.94 | 3.60 |
Centric Financial Corporation | |||||||
Consolidated Average Balance Sheets and Average Yield / Cost (Unaudited) | |||||||
Six Months Ended | |||||||
June 30, 2021 | June 30, 2020 | ||||||
Average | Average | ||||||
Balance | Interest | Rate | Balance | Interest | Rate | ||
INTEREST EARNING ASSETS | |||||||
Fed Funds & Bank Balances | $ 31,112 | $ 31 | 0.20 | $ 25,314 | $ 182 | 1.44 | |
Restricted Stock | 3,136 | 100 | 6.42 | 3,266 | 80 | 4.93 | |
Total Securities | 42,935 | 614 | 2.86 | 31,754 | 388 | 2.44 | |
Total Loans | 978,222 | 22,824 | 4.70 | 779,634 | 19,242 | 4.96 | |
Total Earning Assets | 1,055,406 | 23,569 | 4.50 | 839,968 | 19,892 | 4.76 | |
Allowance for Loan Losses | (10,908) | (8,989) | |||||
Non-earning Assets | 59,794 | 50,647 | |||||
TOTAL AVERAGE ASSETS | $ 1,104,292 | $ 881,626 | |||||
INTEREST BEARING LIABILITIES | |||||||
Checking, Money Market, Savings | 459,862 | 988 | 0.44 | 320,086 | 1,078 | 0.68 | |
Time Deposits | 229,551 | 930 | 0.82 | 227,032 | 2,228 | 1.97 | |
Total Interest-Bearing Deposits | 689,413 | 1,918 | 0.56 | 547,119 | 3,307 | 1.22 | |
Non-Interest-Bearing Deposits | 234,894 | 164,353 | |||||
Total Deposits | 924,307 | 1,918 | 0.42 | 711,472 | 3,307 | 0.93 | |
Total Borrowings | 88,095 | 925 | 2.10 | 88,154 | 1,116 | 2.52 | |
Total Interest-Bearing Liabilities | 777,508 | 2,843 | 0.73 | 635,273 | 4,423 | 1.40 | |
Cost of Funds | 0.56 | 1.11 | |||||
Other Liabilities | 3,621 | 2,331 | |||||
TOTAL AVERAGE LIABILITIES | 1,016,024 | 801,957 | |||||
STOCKHOLDER'S EQUITY | 88,268 | 79,668 | |||||
TOTAL AVG. LIABILITIES & EQUITY | $ 1,104,292 | $ 881,626 | |||||
INTEREST RATE SPREAD | 3.77 | 3.37 | |||||
NET INTEREST INCOME | $ 5,469 | ||||||
INTEREST RATE MARGIN | 3.96 | 3.70 |
About the Company
Founded in 2007, Centric Financial Corporation, and its subsidiary, Centric Bank, is headquartered in south central Pennsylvania with assets of
Centric Bank has financial centers located in Harrisburg, Hershey, Mechanicsburg, Camp Hill, Doylestown, Devon, and Lancaster, loan production offices in Lancaster and Devon, 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) 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 residual effects of the Covid-19 pandemic on business and impact to the economy, the effects of competition, development of competing financial products and services; changes in laws and regulations, the interest rate environment; changes in credit quality; inability to raise capital, if necessary, under favorable conditions; volatilities in the securities markets; other deteriorating economic conditions; and other risks and uncertainties.
Contact: | Patricia A. Husic |
President & CEO | |
717.909.8309 |
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SOURCE Centric Financial Corporation
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