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A N NUA L R E P O RT
2013
Powering business and communities. Growing with intention.SM
Centric Financial Corporation
2013 Annual Report
Letter to Our Shareholders, Customers, and Friends .................................................................................................................................................................. 2
Investing in Game Changers ............................................................................................................................................................................................................................................... 4
A Year of Intention, Opportunity, and Optimism .............................................................................................................................................................................. 5
Doctor Centric Bank ........................................................................................................................................................................................................................................................................... 9
Narratives, Numbers, and New Ground ........................................................................................................................................................................................................ 10
Centric Financial Corporation: Financial Report 2013
Independent Auditor’s Report ..................................................................................................................................................................................................................................... 11
Consolidated Balance Sheet ............................................................................................................................................................................................................................................ 12
11
Consolidated Statement of Income .................................................................................................................................................................................................................... 13
Consolidated Statement of Comprehensive Income .............................................................................................................................................................14
Consolidated Statement of Changes in Stockholders’ Equity .................................................................................................................................. 14
Consolidated Statement of Cash Flows ........................................................................................................................................................................................................ 15
Notes to Consolidated Financial Statements .......................................................................................................................................................................... 16-42
Centric Bank Leadership Team ..................................................................................................................................................................................................................................... 43
Centric Bank Financial Centers ..................................................................................................................................................................................................................................... 44
a n n u a l r e p o r t | 2 0 1 3
To Our Shareholders, Customers, and Friends:
At Centric Bank, our post-recession story is
Powering business and communities. Growing with
intention.SM 2013 will be remembered as the year
business began to recover from the recovery. In
perhaps the longest economic restoration chapter
in recent decades, the housing market and the
commercial real estate market are beginning to
capture lending attention. When business and
community grow healthy together, it’s an economic
game changer. And we’re honored to be a valuable
participant in both.
In central Pennsylvania,
Centric Bank continued to
answer opportunity with
cash and capital. We know
the narratives behind the
numbers: the passion of
the woman business owner
who celebrated 15 years in
retail; the reputation of the
restaurateur whose local
fare earns rave reviews; and
the excavating firm who’s
moving dirt to pave the
way for business building.
The dynamic of these
client relationships is our
competitive advantage.
We Revolve Around You—
four words that quietly
envelop each conversation.
Those words are even more
important today than they
were when we founded the
bank in 2007.
Donald E. Enders, Jr.
Chairman of the Board
Patricia A. Husic
President & CEO
Small business builders, doctors, landscapers,
developers, and entrepreneurs depended on us
to strengthen bottomlines—and we delivered.
There were $66.2 million in new loans in 2013
representing 16.4% organic loan growth.
Few conversations are more pervasive today
than health care and how employers and states
will afford it. To meet the private banking needs
of our medical and health care professionals,
Doctor Centric Bank allows these individuals to
focus on helping and healing others. That’s a
community advantage.
As a leader in SBA lending for central Pennsylvania,
we originated 13 loans totaling $3.7 million and
corresponding gains on sales of these assets
amounting to $245,165 for the year. Net income for
2013 was $435,746, as compared to the previous
year end at $707,532; a decrease of $271,786 or
38.4%. During the year, we made a positive impact
in fee income for both SBA loans and the mortgage
division. Mortgage originations also contributed
$125,000 to fee income from selling these loans to
the secondary market.
We made significant improvement in the loan-to-
deposit ratio in 2013, increasing to 85.9% at the end
of 2013 as compared to 76.7% for the prior year
end. This was due to an increase in loan originations
in the last half of 2013, as well as a reduction of
non-core depositors.
Also, high-cost deposits were navigated into
lower-cost products as well as some maturing
CDs repriced at lower yields. We also transitioned
some non-core deposits to a planned exit from the
financial institution. For the year, our cost of funds
was reduced from 1.19% to .86% at December 31,
2013, or an interest expense reduction of .33%.
Due to compression of interest rates and
competitor pressure in our markets, loan yields
were reduced from 5.41% to 5.09% at year end.
The overall result increased the net interest margin
from 3.15% to 3.21% for the year.
We continue to focus on risk management and our
asset quality. The bank has navigated through the
legal process from collections to bankruptcy and
finally, disposition of these assets. The navigation
of the legal and collection process had a direct
result of increased collection, legal, and carrying
costs for 2013. Non-recurring expenses related to
the collection and disposition of these assets for
the non-performing credit facilities and Other Real
Estate Owned exceeded $500,000 for the year.
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At the end of 2013, our delinquency ratio for loans
30-89 days decreased from 2.78% to .93%; and
favorably compared to the Pennsylvania average
of 1.26% and the national average at 2.62%. Total
delinquencies at year end 2013 amounted to
$625,385 versus $1,794,272 for the 2012 year end.
Total charged-off loans in 2013 amounted to
$1,564,032, and related replenishment to the
provision for total loan losses amounted to
$1,354,329.
Further indications of our diligent collection and
risk management efforts are the decline of our past-
due loans greater than 90 days and non-performing
loans, totaling $1,524,508 in 2013 as compared to
$4,037,934 for the same time period in 2012.
On May 1, we opened our fourth financial center in
Derry Township at 1201 West Governor Road. This
financial center was embraced by the community,
and we ended the year with total loans and
deposits at this location at $36.4 million and $39.6
million respectively. We recognize that on a
short-term basis a new location increases the bank’s
overall expenses until the break-even/profitability
point is attained. The average time period for a new
office to reach profitability is generally 36 months.
We are on track to meet profitability, at that
location, well before that timeframe. During 2013,
the Derry Township location had increased costs of
$207,000 related to personnel and occupancy costs.
In the long term, these investments will add to
our revenue and increase the franchise value of
Centric Financial.
these and many other fine organizations:
n Penn State Hershey Medical Center and
Farmers Market
n Willow Mill Fall Festival
n Toys for Tots Parade and Collection
n The Lion Foundation
n American Heart Association
n The Salvation Army
n Harrisburg Chamber and CREDC
n Night Out for Public Safety
n Big Brothers Big Sisters of the Capital Region
n United Way
As leaders of this institution, we are brand
ambassadors and Directors of First Impressions.
Whether introducing our services to a team at
Penn State Hershey Medical Center or providing
capital for entrepreneurs in the hospitality industry,
we are bold in our ask to be your banking
partner. In the trenches of the community
banking mission field, we have seen over and over
how one small business success can influence a
neighborhood for good.
We are most grateful to our shareholders—the
backbone of our institution. Many of you invested
in us seven years ago and have journeyed with us
to break new ground. We look forward to our next
season of “revolutionary” banking services. As we
grow with intention, We Revolve Around You.
Sincerely,
We were honored to be recognized by the Central
Penn Business Journal as one of the Top 50 Fastest
Growing Companies. Centric Bank ranked as the #2
fastest-growing bank in central Pennsylvania.
Donald E. Enders, Jr.
Chairman of the Board
Adding a human resources manager and an
expanded loan division, our workforce grew to 60,
an increase of 11%. 2013 also saw the release of
a Centric Bank mobile app and an even stronger
presence on social media—connecting and
engaging customers on channels they choose.
In 2013, we donated to many organizations,
non-profits, foundations, and community service
groups. Equally valuable, the Centric Bank family
contributed hundreds of service hours supporting
Patricia A. Husic
President & CEO
a n n u a l r e p o r t | 2 0 1 3
“The best way to predict
your future is to create it.”
— P e t eR DR uCk eR , the father of modern business enterprise
Investing in Game Changers
Because we truly believe Drucker’s words, our passion and mission at Centric Bank is to invest in game
changers—the men and women who power our regional economy. Ushering in a true recovery, they
bring big ideas, unbridled passion, and an intense will to succeed. And they have found a home with
Centric Bank.
When these entrepreneurs are ready to launch a business, they know what a critical step it is to choose a
local lending partner. In a world of kickstarter campaigns and bitcoin, the most trusted and secure path
to funding and growth is still the path that we provide—a personal relationship with a bank who
believes in them.
Growing healthy communities requires a commitment to support our region’s biggest asset: small
business. We are partners in growth and remove one of the highest barriers to small business success—
access to financing. We shorten the learning curves to financial independence.
In 2013, we added $66.2 million to the small business pipeline, an increase of 16.4%. We have loaned
$230.16 million to help people achieve their dreams, build a business, or buy a home.
We have found that the best way to predict the Harrisburg capital region’s bright future is to be a part of
its emerging growth.
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A Year of Intention, Opportunity, and Optimism
Intention: Choosing Your Foundation for Business
Every business needs tools to help it grow, attract customers, manage resources, and reinvest in the
community. Thanks to our shareholders and expanding customer base, Centric Bank is one of central
Pennsylvania’s most powerful business resources.
Choosing your banking partner is an important lifetime decision. And we’re honored by the hundreds
of business owners, executives, physicians, restaurateurs, and hoteliers who have intentionally partnered
with us. We pride ourselves on relationship-banking principles, because success isn’t just about the
numbers or the volume of transactions. We are honored every time we hear that our loan or line of
credit was the tipping point to business success for a customer. In 2013, we made 13 SBA loans for a
total of $3.7 million.
55
“ A small business needs a bank that is timely, interested, and
personal. For us, Centric Bank fills the bill. Our former bank’s
decision makers were located miles away in a large city; they
seemed detached and disinterested.
“ When we transitioned to Centric Bank, they worked hard to
structure our financing and services to meet our needs.
The Camp Hill branch is convenient to our businesses, and the
staff has been very friendly, responsive, and accommodating.”
David and Sandra Cordier
Cordier Auctions & Appraisals
Photo: Vince Cassaro
Our track record of investing in people compels us to put a face with the numbers. It’s an evolving story
of free enterprise and market forces —a push-pull of risk and glory. We measure the risk and celebrate
in the victories. Through home mortgages, commercial real estate loans, SBA loans, lines of credit, and
digital banking services, we make sure our region retains its competitive advantage.
We have established 94 new lending relationships that totaled $32.3 million. Our lending team helps the
landscapers, the medical practices, the attorneys, the architects, the engineers, and the excavators reach
financial independence and success. Our business checking accounts—certainly a fundamental tool—
remain robust, and our business lending, a growth barometer, increased 10.4%.
Each of these banking services begins with a conversation between business owner and Centric Banker.
The handshake, the small talk, the community connection, the earnest attention to whole-business
lending—all help strengthen our communities.
a n n u a l r e p o r t | 2 0 1 3
As we prepare to celebrate our seventh year, Centric Bank’s early beginnings are still fresh in our minds.
We understand the vision and mission of your “big idea” because we are living ours too. And we’re eager
to help you make it a reality.
Whether connecting with one of our retail bankers, a mortgage lending officer, a financial center teller, or
our CEO Patti Husic, our customers say they appreciate the feeling of security and opportunity they sense
with every touch point.
Opportunity: Immersed in Community and Connections
As a locally owned bank, we are driven by what’s good for our customers. We never lose sight of the men
and women who have helped build our bank. And, as purposeful and good stewards of all your
resources, we understand the value of the money you earn and entrust to our institution.
An overarching goal, beyond delivering a solid return to our shareholders and high quality service to
our customers, is to make a difference in our neighborhoods. Before we were shovel-ready at our
Hershey and Camp Hill financial centers, we began sharing sponsorships, donations, and goodwill with
the residents and business owners.
We reached out to Penn State Hershey Medical Center to introduce ourselves and learn more about the
Hershey Farmers Market directly across the road from our Derry Township financial center. “Can we help
you build a stronger community?” we asked, believing that a strong region is as dependent on financial
well-being as it is on physical well-being.
When a business moves its accounts to Centric Bank, it’s often because of a referral and a compelling
story they heard from a customer. Although people may not change financial institutions because Centric
Bank sponsored the Camp Hill Borough Toys for Tots Parade, or because Executive Vice President and
Chief Lending Officer Jeff Myers was awarded “Father of the Year” by the American Diabetes Association,
these events add tremendous soul to our brand.
“ I wanted to take a moment to thank you and your staff for making
our transition to Centric Bank a wonderful experience. From the
very beginning, you took the time to understand our needs and
company goals which demonstrated the commitment of Centric
Bank to the success of small business.
“ Centric Bank has proven itself to be a bank with small town values
and ethics, where people still have access to top management
while offering all the amenities and services of the big banks.
Thank you for listening to our needs and taking the time to know
our company.”
John W. Gleim, Jr.
John W. Gleim, Jr. Inc. Excavating
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Giving back is much more than a budget line item for us. We know that offering time and money to
organizations like The Salvation Army Harrisburg Capital Region, the Leukemia and Lymphoma
Foundation, the American Heart Association, the YWCA, the Lion Foundation, United Way, and the
Penn State Hershey Medical Center strengthens our people, families, and workforce.
We hope to connect with all our customers —at your convenience. 2013 was a positive and pivotal year
for our digital tattoo. As part of our marketing strategy, we are building a network on Twitter, Facebook,
and LinkedIn to keep our customers informed about banking initiatives, community news, and financial
resources. These are powerful opportunities to tell our story, and we’re continually digitizing our services
to make every banking experience a pleasant one.
“ As the owner of four busy central Pennsylvania restaurants—
Rock Bass Grill, Dockside Willies, Dukes Riverside, and Dukes
Hershey—I need a bank who makes doing business easy. I trust
Centric Bank’s expert team to look out for my best interests. They
are locally owned, they know me personally, and they appreciate
me: a rare combination these days. The people who represent
the bank, like my lender Don Bonafede, CEO Patti Husic, and the
folks working behind the scenes, give me confidence and comfort.
Centric Bank knows that little things mean a lot—a friendly smile,
a firm handshake, even a great pen—and they all go a long way
in saying ‘I care.’ ”
Don Carter
Rock Bass Grill, Dockside Willies, Dukes Riverside, and Dukes Hershey
77
The Centric Bank mobile app was revealed this year to a grateful customer base. Using the latest digital
tools and platforms, we make sure that our Millennials can make mobile deposits at 2 a.m. if they choose,
and that second careerists or retirees can stop into any of our financial centers for a chat about deposits,
free checking, or new banking services. In every transaction, communication, and bank statement,
we reinforce the many ways to seamlessly manage your accounts and to reach us. Your convenience,
your accounts, your choice of connection.
Although smartphones have added a new dimension to
banking services, Google searches for “bricks and mortar”
bank branches are surging, up roughly 200% according to
The Financial Brand. On May 1, 2013, Centric opened its
fourth financial center at the gateway to the heart of
Hershey with an official “Centric Bank Comes to Town Day.”
More than 50 business and banking leaders, as well as
public officials and customers celebrated our expansion.
a n n u a l r e p o r t | 2 0 1 3
Optimism: Centric Bank Is Your Competitive Advantage
What’s the value of confidence and optimism? We believe it’s priceless.
“Understanding who you serve and striking the delicate balance of appropriate risk with common sense
is the responsibility of a community bank. It’s what distinguishes us from the complexity of global
banking services. Our reality on Main Street is that we personally know and believe in our business
builders. We believe in a strong Pennsylvania workforce and attract a core client base of small business
USA. Our message to you, the men and women who own 28 million small businesses, is we’re Powered
Up to serve you. We’re built to advance your business goals; and we believe you’re a very good
investment,” says Patti Husic, Centric Bank CEO.
“ My experience with Centric Bank has far surpassed all my
previous institutions. The future looks much brighter thanks to
Centric Bank.”
Steven A. Witkowski, DDS
“ We want to thank you for a job well done. Our Centric Bank
refinancing was extremely smooth, and your team was
extremely helpful. We look forward to a long, beneficial
business relationship with Centric Bank.”
Pinakin & Sangeeta Merchant
Urmi Sons and Associates, Super 8 Motel
“ The service and response time that we receive from Paul Zwally
and the staff and board of directors at Centric Bank is remarkably
refreshing. At other banks, in our experience, once the loan is
processed and the payments begin, the personalized service seems
to end. At Centric, we are treated like lifelong customers and
friends. The tellers, loan officers, and branch managers all know
our names and treat us like we’re important. We cannot thank
everyone enough for their honesty, courtesy, and professionalism.”
tom & Josi George
Builder/Developer/Realtor
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“ Every day Centric Bank demonstrates its commitment to the
success of One Good Woman. The Centric team is professional
and very helpful—a winning combination in bankers. Centric
Bank products are first rate with services like credit card
processing, gift card redemption, and more.
“ While a lot of banks talk about small business, Centric actively
and aggressively supports us. Count me as one committed
customer of Centric Bank!”
Holly O’Connor
One Good Woman
Doctor Centric Bank
In the second year of service, Doctor Centric Bank originated $8.66 million in new loans. As quality
health care delivery becomes increasingly complicated, Doctor Centric Bank continues to provide
financial solutions to health care professionals and practices. When the timing is right to purchase a
commercial building, hire a new practitioner, upgrade IT infrastructure, or buy new medical equipment,
we provide the resources and a seamless concierge banking experience.
“ Before I found Centric Bank, I was frustrated and found other
banks to be inflexible and rigid. The Doctor Centric Bank private
banking service has enabled me to rearrange my finances in
several ways that not only make more sense but will save me
considerable money over time.”
David kann, MD
Chairman, Department of Medicine and Director of
Cardiology Services, Carlisle Hospital
Doctor Centric Bank also offers specialized financing opportunities
that many institutions are unable to meet, such as up to 100%
practice financing for buy-ins or buy-outs and equipment.
In addition, we offer the support of government guarantee and
were recently named one of the largest SBA lenders by the Central Penn Business Journal.
Powering business and communities is our mandate and growing with intention is our strategy as we
continue to open new opportunities for every segment of our hard-working neighborhoods.
a n n u a l r e p o r t | 2 0 1 3
Narratives, Numbers, and New Ground
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Ce n t rI C F In a nC Ia l
C o r p o r a tIo n
ind ep en denT
audiT or’s re por
T
tO tHe BOARD OF DIReC tORS
CeNtRIC FINANCIAl C ORPORAtION
HARRISBuRG , PeNNSY lvANIA
Report on the Consolidated Financial Statements
We have audited the accompanying consolidated financial statements of Centric Financial Corporation and
subsidiary which comprise the consolidated balance sheet as of December 31, 2013 and 2012; the related
consolidated statements of income, comprehensive income, changes in stockholders’ equity, and cash flows for
the years then ended; and the related notes to the consolidated financial statements.
Management’s Responsibility for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of these consolidated financial statements
in accordance with accounting principles generally accepted in the United States of America; this includes the
design, implementation, and maintenance of internal control relevant to the preparation and fair presentation
of consolidated financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We
conducted our audits in accordance with auditing standards generally accepted in the United States of America.
Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the
consolidated financial statements are free of material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
consolidated financial statements. The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the consolidated financial statements, whether due to
fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s
preparation and fair presentation of the consolidated financial statements in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness
of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of significant accounting estimates made
by management, as well as evaluating the overall presentation of the consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion.
Opinion
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects,
the financial position of Centric Financial Corporation and subsidiary as of December 31, 2013 and 2012, and
the results of their operations and their cash flows for the years then ended in accordance with accounting
principles generally accepted in the United States of America.
S.R. Snodgrass, P.C.
Wexford, Pennsylvania
March 17, 2014
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Ce n t rI C F In a nC Ia l
C o r p o r a tIo n
co nso li da
Te d ba l anc e sheeT
(in thousands, except share data)
ASSetS
Cash and due from banks
Interest-bearing deposits in other banks
Federal funds sold
Cash and cash equivalents
Investments in certificates of deposits
Securities available for sale
Securities held to maturity, fair value of $798 and $951
Loans
Less: allowance for loan losses
Net loans
Loans held for sale
Accrued interest receivable
Premises and equipment, net
Regulatory stock
Cash surrender value life insurance
Goodwill
Other assets
tOtAl ASSetS
lIABIlItIeS AND StOCkHOlDeRS’ eQuItY
lIABIlItIeS
Deposits:
Noninterest-bearing
Interest-bearing
Total deposits
Short-term borrowings
Long-term debt
Accrued interest payable
Other liabilities
total liabilities
StOCkHOlDeRS’ eQuItY
Preferred stock series C, $1.00 par; 7,492 shares issued and outstanding in
2013 and 2012 (liquidation preference $1,000 per share)
Common stock, $1.00 par; 12,000,000 shares authorized; 3,001,688 and 2,999,718
shares issued and outstanding in 2013 and 2012, respectively
Additional paid-in capital
Retained deficit
Accumulated other comprehensive income (loss)
total Stockholders’ equity
tOtAl lIABIlItIeS AND StOCkHOlDeRS’ eQuItY
See notes to consolidated financial statements.
December 31,
2013
2012
$ 3,264
537
15,421
19,222
$ 2,813
2,795
40,285
45,893
5,995
34,924
798
9,831
26,661
929
230,162
2,708
227,454
208,509
2,918
205,591
-
598
7,474
1,081
2,941
492
3,430
$ 304,409
1,059
597
6,362
1,060
1,387
492
2,197
$ 302,059
$ 21,958
245,836
267,794
$ 20,645
250,794
271,439
10,000
4,207
64
641
282,706
-
6,763
98
1,206
279,506
7,492
7,492
3,001
14,923
(2,524)
(1,189)
21,703
$ 304,409
2,999
14,904
(2,885)
43
22,553
$ 302,059
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Ce n t rI C F In a nC Ia l
C o r p o r a tIo n
co ns o li da
Te d sT a TeMenT oF incoMe
(in thousands, except share data)
INteReSt INCOMe
Interest and fees on loans
Interest and dividends on securities
Interest-bearing deposits in other banks
Federal funds sold
total interest income
INteReSt eXPeNSe
Interest on deposits
Interest on long-term debt
total interest expense
Net interest income
Provision for loan losses
Net interest income after provision for loan losses
NONINteReSt INCOMe
Service charges on deposit accounts
Other loan fees and servicing income
Net gain on sale of loans
Gains (losses) on sale of other real estate owned
Net gain on sale of securities
Total other-than-temporary impairment (“OTTI”) losses
Non-credit portion of OTTI recognized in other comprehensive income
Net OTTI losses recognized in earnings
Other income
total noninterest income
NONINteReSt eXPeNSe
Salaries and employee benefits
Occupancy and equipment
Legal and professional fees
Data processing
Advertising and marketing
Shares and capital stock tax
Directors expense
Federal deposit insurance
Other expenses
total noninterest expense
Income before income tax
Income tax expense
Net INCOMe
Preferred stock dividends and discount accretion
Net INCOMe AvAIlABle tO COMMON SHAReHOlDeRS
PeR SHARe DAtA
Basic earnings per share
Diluted earnings per share
Average shares outstanding (basic)
Average shares outstanding (diluted)
See notes to consolidated financial statements.
Year ended December 31,
2012
2013
$ 10,934
670
49
71
11,724
$ 10,712
569
39
79
11,399
2,356
161
2,517
2,949
185
3,134
9,207
1,354
7,853
8,265
1,353
6,912
83
199
371
(230)
-
(141)
119
(22)
194
595
99
223
251
42
145
(63)
(93)
(156)
165
769
3,745
1,115
342
440
348
186
170
274
1,241
7,861
587
151
436
(75)
$ 361
3,098
916
376
429
274
154
148
233
1,044
6,672
1,009
301
708
(75)
$ 633
$ 0.12
$ 0.12
2,998,951
3,019,894
$ 0.23
$ 0.23
2,741,791
2,760,885
Ce n t rI C F In a nC Ia l
C o r p o r a tIo n
co nso li da
Te d sT a TeMenT oF coMprehensive incoMe (loss)
(in thousands)
Net INCOMe
Other comprehensive income (loss):
Unrealized holding losses on available-for-sale securities
Tax effect
Reclassification adjustment for gains recognized in income
Tax effect
Accretion of losses on securities transferred to held to maturity
Tax effect
Unrealized holding gains (losses) due to other-than-temporary impairment
on held-to-maturity securities
Tax effect
Other-than-temporary impairment losses recognized in earnings
Tax effect
Total other comprehensive income (loss)
COMPReHeNSIve INCOMe (lOSS)
See notes to consolidated financial statements.
December 31,
2013
$ 436
2012
$ 708
(1,874)
637
-
-
23
(8)
(38)
13
22
(7)
(1,232)
$ (796)
(97)
34
(145)
49
43
(15)
93
(32)
156
(53)
33
$ 741
co nso li da
Te d sT a TeMenT oF changes in sT
ockholders’ equiTy
(in thousands, except share data)
Preferred
Stock
Series C
Common
Stock
Additional
Paid-in
Capital
Retained
Deficit
Accumulated
Other
Comprehensive
Income (loss)
total
Balance, December 31, 2011
$ 7,492
$ 2,688
$ 13,274
$ (3,518)
$ 10
$ 19,946
708
33
708
33
Net income
Other comprehensive income
Stock-based compensation plans:
Vesting of restricted stock (6,952 shares)
Restricted stock - compensation expense
Stock options - compensation expense
6
(6)
30
24
Preferred stock dividend
Issuance of common stock (304,847 shares)
305
1,582
(75)
Balance, December 31, 2012
7,492
2,999
14,904
(2,885)
43
22,553
Net income
Other comprehensive loss
Stock-based compensation plans:
Vesting of restricted stock (1,970 shares)
Restricted stock - compensation expense
Stock options - compensation expense
2
(2)
9
12
436
(1,232)
436
(1,232)
Preferred stock dividend
(75)
Balance, December 31, 2013
$ 7,492
$ 3,001
$ 14,923
$ (2,524)
$ (1,189)
$ 21,703
See notes to consolidated financial statements.
-
30
24
(75)
1,887
-
9
12
(75)
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C o r p o r a tIo n
co ns o li da
Te d sT a TeMenT oF cash Flows
(in thousands)
Cash flows from operating activities
Net income
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses
Depreciation and amortization
Stock-based compensation
Deferred income tax benefit
Loans originated for sale
Proceeds from sale of loans
Net gain on sale of loans
Increase in accrued interest receivable
Decrease in accrued interest payable
Net gain on sale of securities
Net OTTI losses recognized in earnings
Decrease in prepaid federal depository insurance
Net loss on sale of assets
Other, net
Net cash provided by operating activities
Cash flows from investing activities
Net (increase) decrease of investment certificates of deposits
Sales of available-for-sale securities
Maturities and principal pay downs of available-for-sale securities
Maturities and principal pay downs of held-to-maturity securities
Purchases of available-for-sale securities
Purchases of regulatory stock
Redemption of regulatory stock
Net increase in loans
Purchases of bank premises and equipment
Proceeds from disposal of other real estate owned
Purchase of bank-owned life insurance
Proceeds from disposal of bank premises and equipment
Net cash used by investing activities
Cash flows from financing activities
Net increase (decrease) in deposits
Net increase in short-term borrowings
Payments on long-term debt
Dividends paid - preferred stock
Net proceeds from issuance of common stock
Net cash provided by financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period
Supplemental disclosure of cash flow information:
Cash paid during the period for:
Interest
Income taxes
Supplemental schedule of noncash investing and financing activities:
Other real estate acquired in settlement of loans
Securities purchased not settled
See notes to consolidated financial statements.
15
15
Year ended December 31,
2012
2013
$ 436
$ 708
1,354
599
21
100
(10,913)
12,343
(371)
(1)
(34)
-
22
60
230
(208)
3,638
3,836
-
6,189
115
(16,989)
(1,063)
1,042
(24,842)
(1,525)
704
(1,500)
-
(34,033)
(3,645)
10,000
(2,556)
(75)
-
3,724
(26,671)
45,893
$ 19,222
1,353
520
54
113
(14,544)
14,130
(251)
(27)
(28)
(145)
156
216
75
528
2,858
(4,437)
2,369
13,101
139
(16,863)
(526)
273
(29,926)
(957)
249
-
273
(36,305)
47,852
-
(2,679)
(56)
1,887
47,004
13,557
32,336
$ 45,893
$ 2,551
255
$ 3,162
175
1,635
-
468
514
Ce n t rI C F In a nC Ia l
C o r p o r a tIo n
noTe s To c ons oli da
Ted Financial sT
a TeMenTs
Note 1 | Significant Accounting Policies
Organization and Nature of Operations
Centric Financial Corporation (“Centric”) or (“the Company”) is a financial holding company which includes its
wholly owned subsidiary, Centric Bank (“the Bank”).
The Bank entails virtually all of Centric’s ongoing operations. The Bank offers customers a range of deposit, loan,
and other services typical of community banks through four offices in south central Pennsylvania and online
banking channels. The Bank’s principal source of revenue emanates from interest income from its portfolio
of commercial and residential real estate loans, commercial loans, and consumer loans, as well as from its
investment portfolio.
Centric is subject to regulation and supervision of the Pennsylvania Department of Banking and the Federal
Deposit Insurance Corporation (“FDIC”).
Basis of Presentation
The financial statements have been prepared in accordance with accounting principles generally accepted in
the United States of America. The accounts of Centric and the Bank are consolidated with the elimination of all
intercompany transactions and balances.
estimates
Management is required to make estimates and assumptions that affect the reported amounts of assets
and liabilities, income and expense, and the nature and extent of disclosures. Ultimate results could differ
significantly from those estimates and assumptions. Centric’s material estimates that are particularly susceptible
to significant change in the near term relate to the valuation of loans, the allowances for loan and other credit
losses, and other-than-temporary impairment evaluations of securities, evaluation of goodwill impairment,
deferred tax valuation, and fair value of financial instruments.
In the ordinary course of business, Centric and the Bank are parties to legal proceedings that entail uncertainty.
In management’s opinion, Centric’s financial position and results of operations would not be materially impacted
by the outcome of such proceedings individually or in the aggregate.
Cash and Cash equivalents
Cash and cash equivalents with original maturities of 90 days or less include cash, balances due from banks,
interest-bearing demand deposits in other banks, and federal funds sold. Federal funds sold are generally for
one-day periods. The Bank has been required to maintain average balances with the Federal Reserve Bank. In
2012, the Bank engaged in a deposit reclassification program that evaluates the unused balance of transaction
accounts. The unused portion is then reclassified as a non-transaction account. This allows the Bank to reclaim
the balances held at the Federal Reserve Bank for investment or operating use. The Federal Reserve Bank of
Philadelphia approved the use of this program for Centric Bank in the second quarter of 2012. The required
minimum balance was $0 at December 31, 2013 and 2012.
Credit Risk Concentrations
As a community bank, most of the Bank’s loans and credit commitments are comprised of Pennsylvania
customers, primarily individuals and entities situated in Dauphin and Cumberland counties.
Securities
Investment securities are classified when purchased as either “securities available for sale” or “securities held to
maturity.”
Securities classified as “available for sale” are those debt securities that the Bank intends to hold for an indefinite
16
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Ce n t rI C F In a nC Ia l
C o r p o r a tIo n
Note 1 | Significant Accounting Policies (continued)
period of time but not necessarily to maturity, and are carried at fair value. Unrealized gains or losses are
included in other comprehensive income, net of the related deferred tax effect. Realized gains and losses on
disposition of securities are recognized as noninterest income measured on specific identification of the simple
difference between net proceeds and adjusted book value. Premiums and discounts are recognized in interest
income using the interest method over the terms of the securities.
Securities classified as “held to maturity” are those debt securities the Bank has both the intent and ability to
hold to maturity regardless of changes in market conditions, liquidity needs, or changes in general economic
conditions. These securities are carried at cost adjusted for the amortization of premium and accretion of
discount, computed by the interest method over the terms of the securities.
Securities are periodically reviewed for other-than-temporary impairment based upon a number of factors,
including, but not limited to, the length of time and extent to which market value has been less than cost,
the financial condition of the underlying issuer, the ability of the issuer to meet contractual obligations, the
likelihood of the security’s ability to recover any decline in its market value, and whether or not management
intends to sell the security or whether it is more likely than not that they would be required to sell the security
before its anticipated recovery in market value, to determine whether the loss in value is other than temporary.
A decline in value that is considered to be other than temporary is recorded as a loss within noninterest income
in the Consolidated Statement of Income.
loans
Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff
are stated at their outstanding unpaid principal balances, net of any allowance for loan losses and any deferred
fees or costs. Interest income is accrued on the unpaid principal balance.
Lease contracts are classified as direct finance leases. Lessees guarantee 100 percent of the leases’ residual value
at the conclusion of the lease term.
Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the
yield (interest income) of the related loans. The Bank is generally amortizing these amounts over the contractual
life of the loan.
The accrual of interest is generally discontinued when the contractual payment of principal or interest has
become 90 days past due or management has serious doubts about further collectibility of principal or interest,
even though the loan is currently performing. A loan may remain on accrual status if it is in the process of
collection and is either guaranteed or well secured. When a loan is placed on nonaccrual status, unpaid interest
credited to income in the current year is reversed and unpaid interest accrued in prior years is charged against
the allowance for loan losses. Interest received on nonaccrual loans generally is either applied against principal
or reported as interest income, according to management’s judgment as to the collectability of principal.
Generally, loans are restored to accrual status when the obligation is brought current, has performed in
accordance with the contractual terms for a reasonable period of time and the ultimate collectability of the total
contractual principal and interest is no longer in doubt.
Allowance for loan losses
The allowance for loan losses is established through provisions for loan losses charged against income as losses
are estimated to have occurred. Loans deemed to be uncollectible are charged against the allowance for loan
losses, and subsequent recoveries, if any, are credited to the allowance.
The allowance for loan losses is maintained at a level considered adequate to provide for losses that can be
reasonably anticipated. Management’s periodic evaluation of the adequacy of the allowance is based on
known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, the
estimated value of any underlying collateral, composition of the loan portfolio, current economic conditions,
Ce n t rI C F In a nC Ia l
C o r p o r a tIo n
Note 1 | Significant Accounting Policies (continued)
and other relevant factors. This evaluation is inherently subjective, since it requires material estimates that may
be susceptible to significant change.
The allowance consists of specific and general components. The specific component relates to loans that are
classified as Substandard or Special Mention. For such loans that are also classified as impaired, an allowance is
established when the discounted cash flows (or collateral value or observable market price) of the impaired loan
is lower than the carrying value of that loan. The general component covers non-classified loans and is based
on historical loss experience adjusted for qualitative factors. An unallocated component is maintained to cover
uncertainties that could affect management’s estimate of probable losses.
A loan is considered impaired when, based on current information and events, it is probable that the Bank will be
unable to collect the scheduled payments of principal or interest when due according to the original contractual
terms of the loan agreement. Factors considered by management in determining impairment include payment
status, collateral value and the probability of collecting scheduled principal and interest payments when due.
Loans that experience insignificant payment delays and payment shortfalls generally are not classified as
impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-
case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including
the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the
shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis for
commercial and construction loans by either the present value of expected future cash flows discounted at the
loan’s effective interest rate or the fair value of the collateral if the loan is collateral-dependent.
Purchased loans with evidence of credit quality deterioration for which it is probable at purchase that all
contractually required payments will not be collected are acquired with deteriorated credit quality. Centric
accounts for differences between contractual cash flows and cash flows expected to be collected from an
investor’s initial investment in loans acquired in a transfer if those differences are attributable, at least in part,
to credit quality. Centric records impaired loans at fair value and did not carry over valuation allowances in the
initial accounting for loans acquired in a transfer, including loans acquired in a purchase business combination.
The excess of cash flows expected at purchase over the purchase price is recognized as interest income over
the life of the loans. Subsequent increases in cash flows expected to be collected are recognized prospectively
through an adjustment of the loan’s yield over its remaining life. Decreases in expected cash flows are
recognized as impairments.
unfunded Credit Commitments
In the ordinary course of business, the Bank enters into commitments to extend credit and letters of credit. Such
financial instruments are recorded when funded. A reserve for unfunded lending commitments under contract,
lines and letter of credit, is included in other liabilities.
Restricted Investments in Bank Stocks
Under membership agreement, the Bank is required to own stock issued by Atlantic Central Bankers Bank.
Because ownership and disposition is restricted, the shares lack a market for measuring fair value and are
recorded at cost.
The Bank is also a member of the Federal Home Loan Bank (“FHLB”) of Pittsburgh and as such is required to
maintain a minimum investment in stock of the FHLB, which varies with the level of advances outstanding with
the FHLB. The stock is bought from and sold to the FHLB based upon its $100 par value. The stock does not
have a readily determinable fair value and as such is classified as restricted stock, carried at cost and evaluated
by management. The stock’s value is determined by the ultimate recoverability of the par value rather than
by recognizing temporary declines. The determination of whether the par value will ultimately be recovered
is influenced by criteria such as the following: (a) the significance of the decline in net assets of the FHLB as
compared to the capital stock amount and the length of time this situation has persisted; (b) commitments by
18
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Note 1 | Significant Accounting Policies (continued)
the FHLB to make payments required by law or regulation and the level of such payments in relation to the
operating performance; (c) the impact of legislative and regulatory changes on the customer base of the FHLB;
and (d) the liquidity position of the FHLB. Management evaluated the stock and concluded that the stock was
not impaired for the periods presented herein.
Goodwill
Goodwill represents the amount paid to acquire the Bank beyond the fair value of the identifiable net assets
acquired. Goodwill is not amortized but rather is tested for impairment at least annually. For federal tax
purposes, goodwill is amortized on a straight-line basis over 15 years. There was no impairment of goodwill for
2013 and 2012.
Core Deposit Intangibles
Core deposit intangibles represent the asset identified for depositor relationships acquired with the Bank. This
asset was valued at acquisition based upon the economic advantages of core deposits as a funding source. This
acquired asset is being amortized using an accelerated method with an estimated useful life of ten years; $8,000
and $10,000 of amortization expense was recognized in 2013 and 2012, respectively. The unamortized balance
was $13,000 and $21,000 at December 31, 2013 and 2012, respectively. Amortization expense will be $6,000,
$5,000, and $2,000 for years 2014, 2015, and 2016, respectively.
Mortgage Servicing Rights and Related Credit enhancement Fees
The Bank sold residential mortgages to FHLB under the Mortgage Partnership Finance Program (“MPF”). The
Bank is no longer an active participant in the MPF program. Under this program, the Bank services the portfolio
sold to the FHLB and receives corresponding fees. The MPF program also entails a credit enhancement
arrangement whereby the Bank receives a fee for retaining a residual contingent liability for the repayment of
loans sold to the FHLB.
Assets for mortgage servicing rights and related credit enhancement fees were recorded at fair value
corresponding to net cash flows expected for servicing and credit enhancement of the MPF portfolio. Mortgage
servicing rights are $8,000 and $25,000 at December 31, 2013 and 2012, respectively. These assets are amortized
based upon portfolio activity and subject to ongoing evaluation for any permanent impairment.
MPF portfolio fees earned amounted to $25,000 and $39,000 for 2013 and 2012, respectively. The MPF portfolio
balance was $5,606,000 and $8,565,000 at December 31, 2013 and 2012, respectively. The FHLB maintains a first-
loss position for the MPF portfolio that totals $301,000. Should the FHLB exhaust its first-loss position, recourse
to the Bank’s credit enhancement would be up to the next $113,000 of losses. The Bank has not experienced any
losses for the MPF portfolio. The value of credit enhancement fees receivable, net of an estimated liability, was
$5,000 and $15,000 at December 31, 2013 and 2012, respectively.
transfers of Financial Assets
The Bank sells interests in loans receivable through loan participation sales. The Bank accounts for these
transactions as sales, when control over the assets has been surrendered. Control over transferred assets is
deemed to be surrendered when (1) the assets have been isolated from the Bank, (2) the transferee obtains
the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the
transferred assets, and (3) the Bank does not maintain effective control over the transferred assets through an
agreement to repurchase them before their maturity.
The Bank retains servicing responsibilities for the loan participation sales. The Bank does not recognize a
servicing asset or liability, since the amount received for servicing the loan participations is a reasonable
approximation of market rates and servicing costs.
19
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Ce n t rI C F In a nC Ia l
C o r p o r a tIo n
Note 1 | Significant Accounting Policies (continued)
Advertising Costs
The Bank charges advertising costs to expense as accrued.
earnings Per Share
Basic earnings per share represents income available to common stockholders divided by the weighted-average
number of shares outstanding during the period. Diluted earnings per share reflects additional common
shares that would have been outstanding if dilutive potential common shares had been issued, as well as any
adjustment to income that would result from the assumed issuance. Potential common shares that may be
issued by Centric relate to outstanding stock options and warrants and non-vested restricted stock.
Anti-dilutive options and warrants to purchase 11,750 and 24,674 shares of common stock, at a weighted-
average price of $6.00 and $5.89 outstanding at December 31, 2013 and 2012, respectively; and unvested
restricted shares of 1,080 and 2,750 at a price of $6.00 and $5.92 at December 31, 2013 and 2012, respectively,
were not included in dilutive earnings per share.
(in thousands, except per share data)
Net income
Preferred stock dividends
Net income available to common shareholders
Weighted-average number of shares outstanding (basic)
Effect of dilutive securities
Weighted-average number of shares outstanding (diluted)
Per share information:
Basic earnings per share
Diluted earnings per share
2013
$ 436
(75)
$ 361
2012
$ 708
(75)
$ 633
2,998,951
20,943
3,019,894
2,741,791
19,094
2,760,885
$ 0.12
$ 0.12
$ 0.23
$ 0.23
Stock-Based Compensation
Centric records the cash flow from the tax benefits resulting from tax deductions in excess of the compensation
cost recognized for stock-based awards (excess tax benefit) be classified as financing cash flows. During 2013
and 2012, no stock options were exercised.
Accumulated Other Comprehensive Income or loss
Centric recognizes revenue, expenses, gains, and losses in net income. Certain changes in assets and liabilities,
such as unrealized gains and losses on available-for-sale securities, are reported as a separate component of the
equity section of the Consolidated Balance Sheet.
20
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Note 1 | Significant Accounting Policies (continued)
Such items are included as components of accumulated comprehensive income (loss) as of December 31, 2013
and 2012, as follows:
(in thousands)
2013
2012
and losses on
unrealized Gains unrealized Gains
and losses on
Available-for-Sale Held-to-Maturity
Securities
Securities
total
and losses on
unrealized Gains unrealized Gains
and losses on
Available-for-Sale Held-to-Maturity
Securities
Securities
total
Beginning balance
Other comprehensive income (loss)
before reclassifications
Amounts reclassified from
accumulated other comprehensive
income (loss)
Net current-period other
comprehensive income (loss)
Ending balance
$ 126
$ (83)
$ 43
$ 285
$ (275)
$ 10
(1,237)
(10)
(1,247)
(63)
89 26
-
15
15
(96)
103
7
(1,237)
$ (1,111)
5
$ (78)
(1,232)
$ (1,189)
(159)
$ 126
192 33
$ 43
$ (83)
21
21
The following illustrates amounts reclassified out of each component of accumulated other
comprehensive income.
Amount Reclassified from
Accumulated Other Comprehensive
Income (loss)
(in thousands)
Details about Accumulated Other
Comprehensive Income (loss)
Components
2013
2012
Affected line Item in the
Statement Where Net Income is
Presented
Sale of available for sale securities
Tax effect
$ -
-
-
$ (145)
49
(96)
Net gain on sale of securities
Income tax expense
Net of tax
Other-than-temporary impairment
losses on held to maturity securities
Tax effect
Total reclassification for the period
$ 22
(7)
15
$ 15
$ 156
(53)
103
$ 7
Net OTTI losses recognized in
earnings
Income tax expense
Net of tax
Net of tax
Ce n t rI C F In a nC Ia l
C o r p o r a tIo n
Note 2 | Investment Securities
The Consolidated Balance Sheet presents “available-for-sale” securities at fair value. Corresponding unrealized
gains and losses do not affect net income but are recorded in accumulated other comprehensive income, net of
related deferred income taxes.
A summary of securities available for sale is as follows:
(in thousands)
U.S. government agency securities
Municipal securities
Government sponsored mortgage-backed securities
Total
Amortized
Cost
$ 18,266
2,903
15,438
$ 36,607
Gross
unrealized
Gains
December 31, 2013
Gross
unrealized
losses
Fair
value
$ -
-
106
$ 106
$ (947)
(383)
(459)
$ (1,789)
$ 17,319
2,520
15,085
$ 34,924
U.S. government agency securities
Municipal securities
Government sponsored mortgage-backed securities
Total
$ 10,299
1,977
14,194
$ 26,470
$ 15
8
225
$ 248
$ (42)
(5)
(10)
$ (57)
$ 10,272
1,980
14,409
$ 26,661
December 31, 2012
A summary of securities held to maturity is as follows:
(in thousands)
Amortized
Cost
Gross
unrealized
Gains
December 31, 2013
Gross
unrealized
losses
Fair
value
Government sponsored mortgage-backed securities
$ 798
$ -
$ -
$ 798
Government sponsored mortgage-backed securities
$ 929
$ 22
$ -
$ 951
December 31, 2012
Securities with a fair value of $32,399,000 and $24,147,000 were pledged to collateralize bank deposits by
Pennsylvania local governments, FHLB advances, and the discount window as of December 31, 2013 and 2012,
respectively.
The amortized cost and fair value of debt securities owned at December 31, 2013, by contractual maturity, are
shown below:
(in thousands)
Available for Sale
Held to Maturity
Due in one year or less
Due after one year through five years
Due after five years through ten years
Due after ten years
Total investment securities
Amortized
Cost
$ -
6,487
12,930
17,190
$ 36,607
Fair
value
$ -
6,344
12,109
16,471
$ 34,924
Amortized
Cost
$ -
-
-
798
$ 798
Fair
value
$ -
-
-
798
$ 798
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Note 2 | Investment Securities (continued)
A summary of securities available for sale which were in an unrealized loss position is as follows:
(in thousands)
U.S. government agency securities
Municipal securities
Government sponsored mortgage-
backed securities
Total temporarily impaired securities
less than 12 Months
Gross
Fair unrealized
losses
value
12 Months or Greater
Gross
Fair unrealized
losses
value
total
Gross
Fair unrealized
losses
value
$ 14,085
2,520
$ (681)
(383)
December 31, 2013
$ (266)
-
$ 3,234
-
$ 17,319
2,520
$ (947)
(383)
7,818
$ 24,423
(376)
$ (1,440)
1,096
$ 4,330
(83)
$ (349)
8,914
$ 28,753
(459)
$ (1,789)
(in thousands)
December 31, 2012
U.S. government agency securities
Municipal securities
Government sponsored mortgage-
backed securities
3,222
Total temporarily impaired securities $ 11,215
$ 6,758
1,235
$ (42)
(5)
$ -
-
$ -
-
$ 6,758
1,235
$ (42)
(5)
(10)
$ (57)
-
$ -
-
$ -
3,222
$ 11,215
(10)
$ (57)
23
23
Securities are evaluated on an ongoing basis to determine whether a decline in their value is other than temporary. For debt securities,
management considers whether the present value of cash flows expected to be collected is less than the security’s amortized cost basis (the
difference defined as the credit loss), the magnitude and duration of the decline, the reasons underlying the decline and management’s
intent to sell the security or whether it is more likely than not that they would be required to sell the security before its anticipated recovery
in market value, to determine whether the loss in value is other than temporary. Once a decline in value is determined to be other than
temporary, if the investor does not intend to sell the security, and it is more likely than not that it will not be required to sell the security,
before recovery of the security’s amortized cost basis, the charge to earnings is limited to the amount of credit loss. Any remaining difference
between fair value and amortized cost (the difference defined as the non-credit portion) is recognized in other comprehensive income, net
of applicable taxes. Otherwise, the entire difference between fair value and amo6rtized cost is charged to earnings.
Centric reviews investment securities on an ongoing basis for potential impairment which would be other than temporary and has adopted
the provision which provides for the bifurcation of other-than-temporary impairment (“OTTI”) into two categories: (a) the amount of the total
OTTI related to a decrease in expected cash flows to be collected (credit loss) which is recognized through earnings; and (b) the amount of
OTTI related to all other factors, which is recognized, net of income taxes, as a component of other comprehensive income. Centric recorded
credit-related impairment of $22,000 on two private label mortgage-backed securities through earnings as of December 31, 2013, and
$156,000 on three private label mortgage-backed securities through earnings as of December 31, 2012. There were 67 securities that were
temporarily impaired at December 31, 2013.
Changes in credit losses during 2013 and 2012 associated with investment securities for which other-than-temporary impairment losses have
been previously recognized in both earnings and other comprehensive income follow:
(in thousands)
Estimated credit losses - beginning balance
Additions for credit losses not previously recognized
Reductions for increases in cash flows
Reductions for realized losses
Estimated credit losses - ending balance
Year ended December 31
2012
2013
$ 363
$ 391
156
22
-
-
(128)
-
$ 391
$ 413
There were no sales or proceeds from sales of securities during 2013. During the year ended December 31, 2012,
the Bank sold five securities totaling $2,258,000 resulting in gross gains of $145,000.
Ce n t rI C F In a nC Ia l
C o r p o r a tIo n
Note 3 | loans
The composition of loans, net of unamortized loan origination fees of $150,000 and $131,000, at December 31,
2013 and 2012, is as follows:
(in thousands)
Commercial
Real estate - construction
Real estate - residential owner occupied
Real estate - residential non-owner occupied
Real estate - commercial
Consumer
Total loans
Allowance for loan losses
Net loans
Note 4 | Allowance for loan losses
2013
$ 36,594
15,550
39,013
19,052
119,164
789
230,162
(2,708)
$ 227,454
2012
$ 32,745
11,325
38,873
18,960
105,786
820
208,509
(2,918)
$ 205,591
Management has an established methodology to determine the adequacy of the allowance for loan losses that
assesses the risks and losses inherent in the loan portfolio. For purposes of determining the allowance for loan
losses, the Bank has grouped certain loans in the portfolio into the following segments: commercial; real estate
- construction; real estate - residential owner occupied; real estate - residential non-owner occupied; real estate
- commercial; consumer; and unallocated. Historical loss percentages for each risk category are calculated and
used as the basis for calculating allowance allocations. These historical loss percentages are calculated over a
three-year period for all portfolio segments. Certain qualitative factors are then added to the historical allocation
percentage to get the adjusted factor to be applied to non-classified loans. The following qualitative factors are
analyzed for each portfolio segment:
n Levels of and trends in delinquencies and nonaccruals
n Trends in volume and terms
n Changes in lending policies and procedures
n Volatility of losses within each risk category
n Economic trends; concentrations of credit
n Experience depth and ability of management
The total allowance reflects management’s estimate of loan losses inherent in the loan portfolio at the balance
sheet date. The Bank considers the allowance for loan losses of approximately $2,708,000 adequate to cover
loan losses inherent in the loan portfolio, as of and for the year ending December 31, 2013. The following table
presents, by portfolio segment, the activity within the allowance for loan losses and the ending balance of the
allowance for loan losses for 2013:
Balance at
(in thousands)
Commercial
Real estate - construction
Real estate - residential owner occupied
Real estate - residential non-owner occupied
Real estate - commercial
Consumer
Unallocated
Total
December 31, Charged-off
loans
$ (202)
-
(45)
(704)
(630)
-
-
$ (1,581)
2012
$ 442
117
496
445
1,287
76
55
$ 2,918
Balance at
December 31,
2013
$ 675
150
330
290
996
14
253
$ 2,708
Provision
$ 435
33
(123)
537
339
(65)
198
$ 1,354
Recoveries
$ -
-
2
12
-
3
-
$ 17
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Note 4 | Allowance for loan losses (continued)
Allowance for loan losses activity during 2012 is as follows:
Balance at
(in thousands)
Commercial
Real estate - construction
Real estate - residential owner occupied
Real estate - residential non-owner occupied
Real estate - commercial
Consumer
Unallocated
Total
December 31, Charged-off
loans
$ (203)
-
-
(675)
(15)
(34)
-
$ (927)
2011
$ 448
126
280
866
503
104
155
$ 2,482
Balance at
December 31,
2012
$ 442
117
496
445
1,287
76
55
$ 2,918
Provision
$ 189
(9)
216
254
799
4
(100)
$ 1,353
Recoveries
$ 8
-
-
-
-
2
-
$ 10
Changes in allowance for loan losses associated with the commercial loan portfolio were primarily the result
of increases in the volume of the portfolio. The allowance for loan losses related to the real estate - residential
owner occupied and real estate - commercial loan portfolios declined from the previous year primarily due to
charge-offs in 2013 for loans identified as impaired in which specific allowance for loan loss allocations were
made in 2012. The real estate - residential non-owner occupied allowance for loan losses declined as a result
of the identification and subsequent charge-off of a specific troubled loan relationship, which significantly
improved the nonperforming loan totals for this portfolio segment.
The following tables present, by portfolio segment, the recorded investment in those loans for 2013 and 2012:
25
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(in thousands)
Allowance for loan losses:
Commercial
Real estate:
Construction
Residential owner occupied
Residential non-owner occupied
Commercial
Consumer
Unallocated
Total
loans, ending balance:
Commercial
Real estate:
Construction
Residential owner occupied
Residential non-owner occupied
Commercial
Consumer
Total
Individually
evaluated for
Impairment
December 31, 2013
Collectively
evaluated for
Impairment
total
$ 224
$ 451
$ 675
-
-
94
-
-
-
$ 318
150
330
196
996
14
253
$ 2,390
150
330
290
996
14
253
$ 2,708
$ 627
$ 35,967
$ 36,594
-
253
714
68
-
$ 1,662
15,550
38,760
18,338
119,096
789
$ 228,500
15,550
39,013
19,052
119,164
789
$ 230,162
Ce n t rI C F In a nC Ia l
C o r p o r a tIo n
Note 4 | Allowance for loan losses (continued)
(in thousands)
Allowance for loan losses:
Commercial
Real estate:
Construction
Residential owner occupied
Residential non-owner occupied
Commercial
Consumer
Unallocated
Total
loans, ending balance:
Commercial
Real estate:
Construction
Residential owner occupied
Residential non-owner occupied
Commercial
Consumer
Total
Individually
evaluated for
Impairment
December 31, 2012
Collectively
evaluated for
Impairment
total
$ -
$ 442
$ 442
-
150
-
300
-
-
$ 450
117
346
445
987
76
55
$ 2,468
117
496
445
1,287
76
55
$ 2,918
$ 923
$ 31,822
$ 32,745
-
389
1,723
1,088
-
$ 4,123
11,325
38,484
17,237
104,698
820
$ 204,386
11,325
38,873
18,960
105,786
820
$ 208,509
Credit Quality and Aging
The following tables represent credit exposures by internally assigned grades for 2013 and 2012. The grading
analysis estimates the capability of the borrower to repay the contractual obligations of the loan agreements as
scheduled or at all. The Bank’s internal credit risk grading system is based on experiences with similarly graded
loans.
The Bank’s internally assigned grades are as follows:
n Pass – loans which are protected by the current net worth and paying capacity of the obligor or by the value
of the underlying collateral.
n Special Mention – loans where a potential weakness or risk exists, which could cause a more serious problem
if not corrected.
n Substandard – loans that have a well-defined weakness based on objective evidence and are characterized by
the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected.
n Loss – loans classified as a loss are considered uncollectible, or of such value that continuance as an asset is
not warranted.
(in thousands)
Pass
Special Mention
Substandard
Loss
Total
December 31, 2013
Commercial
$ 35,724
-
870
-
$ 36,594
Real estate
Construction
$ 15,040
333
177
-
$ 15,550
Real estate
Residential
Non-owner
Occupied
$ 17,908
-
1,144
-
$ 19,052
Real estate
Commercial
$ 118,871
-
293
-
$ 119,164
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Note 4 | Allowance for loan losses (continued)
(in thousands)
December 31, 2013
Pass
Special Mention
Substandard
Loss
Total
Real estate-
Construction
$ 11,325
-
-
-
$ 11,325
Realestate
Residential
Non-owner
Occupied
$ 16,797
-
2,163
-
$ 18,960
Real estate-
Commercial
$ 103,146
140
2,500
-
$ 105,786
Commercial
$ 30,122
1,681
942
-
$ 32,745
Payment activity for the noncommercial portfolio is reviewed by management on a monthly basis to determine
how loans are performing. Loans are considered nonperforming when they become 90 days past due or the
Bank is in possession of other information that would deem the loan nonperforming. The following table
presents performing and nonperforming loans based on payment activity as of December 31:
27
27
(in thousands)
Performing
Non Performing
(in thousands)
Performing
Non Performing
December 31, 2013
Real estate
Residential Owner Occupied
$ 38,665
348
$ 39,013
Consumer
$ 763
26
$ 789
December 31, 2012
Real estate
Residential Owner Occupied
$ 38,156
717
$ 38,873
Consumer
$ 789
31
$ 820
Past-Due and Nonaccrual loans
Generally, loans are considered nonaccrual upon reaching 90 days of delinquency, although the Bank may be
receiving partial payments of interest and partial repayments of principal on such loans. When a loan is placed in
nonaccrual status, previously accrued but unpaid interest is deducted from interest income.
The following table presents performing and nonperforming loans and aging analysis of the recorded
investment of past-due financing receivables, broken by segment and sub-segment, based on payment activity
for the years ended December 31, 2013 and 2012. Payment activity is reviewed by management on a monthly
basis to determine how loans are performing. Loans are generally considered to be nonperforming when they
become 90 days past due
(in thousands)
December 31, 2013
30-89 Days
Past Due
$ 99
-
Commercial
Real estate - construction
Real estate - residential owner
occupied
Real estate - residential non-owner
occupied
Real estate - commercial
Consumer
Total
337
149
40
-
$ 625
90+ Days
Past Due
$ 404
177
total
Past Due
$ 503
177
Current
$ 36,091
15,373
total
loans
$ 36,594
15,550
Non accrual
$ 627
177
348
685
38,328
39,013
281
502
68
26
$ 1,525
651
108
26
$ 2,150
18,401
119,056
763
$ 228,012
19,052
119,164
789
$ 230,162
784
68
26
$ 1,963
Ce n t rI C F In a nC Ia l
C o r p o r a tIo n
Note 4 | Allowance for loan losses (continued)
(in thousands)
30-89 Days
Past Due
90+ Days
Past Due
December 31, 2012
total
Past Due
Current
total
loans
Non accrual
Commercial
Real estate - construction
Real estate - residential owner
occupied
Real estate - residential non-owner
occupied
Real estate - commercial
Consumer
Total
$ -
-
1,306
198
276
-
$ 1,780
$ 857
$ 857
-
-
$ 31,888
11,325
$ 32,745
11,325
$ 889
-
466
1,772
37,101
38,873
587
1,657
754
31
$ 3,765
1,855
1,030
31
$ 5,545
17,105
104,756
789
$ 202,964
18,960
105,786
820
$ 208,509
1,777
754
31
$ 4,038
28
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At December 31, 2013, there were $115,000 of loans greater than 90 days past due still accruing interest.
There were no loans 90 days past due or greater accruing interest at December 31, 2012.
Impaired loans
Management analyzes loans which are 90 days or more past due for impairment to determine if it is probable
that all amounts will not be collected according to the contractual terms of the loan agreement. If management
determines that the value of the impaired loan is less than the recorded investment in the loan (net of previous
charge-offs, deferred loan fees or costs, and unamortized premium or discount), impairment is recognized
through an allowance estimate or a charge-off to the allowance.
Loans acquired with deteriorated credit quality had outstanding contractual balances of $129,000 and $152,000
and carrying amounts of $74,000 and $97,000 as of December 31, 2013 and 2012, respectively.
The following tables include the recorded investment and unpaid principal balances for impaired financing
receivables with the associated allowance amount, if applicable, as of and for the years ended December 31,
2013 and 2012.
in thousands)
December 31, 2013
With no related allowance recorded:
Commercial
Real estate:
Construction
Residential owner occupied
Residential non-owner occupied
Commercial
Consumer
With an allowance recorded:
Commercial
Real estate:
Construction
Residential owner occupied
Residential non-owner occupied
Commercial
Consumer
Total
Recorded
Investment
unpaid
Principal
Related
Balance Allowance
Average
Recorded
Interest
Income
Investment Recognized
$ 68
$ 371
$ -
$ 425
$ 2
-
253
377
68
-
-
253
486
68
-
-
-
-
-
-
-
240
1,002
485
-
-
3
16
29
-
559
709
224
466
5
-
-
337
-
-
$ 1,662
-
-
337
-
-
$ 2,224
-
-
94
-
-
$ 318
-
-
322
-
-
$ 2,940
-
-
-
-
-
$ 55
29
29
Ce n t rI C F In a nC Ia l
C o r p o r a tIo n
Note 4 | Allowance for loan losses (continued)
in thousands)
December 31, 2012
With no related allowance recorded:
Commercial
Real estate:
Construction
Residential owner occupied
Residential non-owner occupied
Commercial
Consumer
With an allowance recorded:
Commercial
Real estate:
Construction
Residential owner occupied
Residential non-owner occupied
Commercial
Consumer
Total
Recorded
Investment
unpaid
Principal
Related
Balance Allowance
Average
Recorded
Interest
Income
Investment Recognized
$ 923
$ 1,136
$ -
$ 864
$ 20
-
95
1,723
335
-
-
95
1,889
335
-
-
-
-
-
-
-
102
1,208
344
-
-
1
38
21
-
-
-
-
-
-
-
294
-
753
-
$ 4,123
-
294
-
752
-
$ 4,501
-
150
-
300
-
$ 450
-
176
-
449
-
$ 3,143
-
-
-
17
-
$ 97
loan Modifications
Situations may arise that would cause the Bank to grant a concession for other-than-temporary purpose to
the borrower that the Bank would not otherwise consider. The loan receiving the concession would then be
classified as a troubled debt restructuring (“TDR”). The situations leading to the concession may be economic
or legal in nature and affect the borrower’s ability to meet the contractual obligation to the Bank. Management
actively attempts to identify borrowers having financial difficulty early, and work with them to modify terms prior
to the loan becoming nonaccrual. Modifications may include rate reductions, payment forbearance, principal
reduction, or other actions with the intent to minimize the loss and/or avoid foreclosure or repossession of
collateral. In cases where a restructure occurs, management measures impairment based on collateral to
support the revised terms of the loan. If the loan is not collateral dependent, impairment is calculated using the
present value of the revised loan terms compared to the investment in the loan prior to the restructure. TDRs
are individually evaluated and provided for in the allowance for loan losses and are therefore excluded from
pooled portfolio allocations. Management continually evaluates loans that are considered TDRs under the
modified loan terms, including payment history and the borrower’s ability to continue to repay the loan based
on continued evaluations of their results of operation and cash flow from operations.
Loan modifications considered TDRs completed during the year ended December 31, 2013, are as follows:
(in thousands)
Commercial
Real estate:
Construction
Residential owner occupied
Residential non-owner occupied
Commercial
Consumer
Total troubled debt restructurings
Number of
Contracts
1
-
4
1
1
-
7
December 31, 2013
Pre-Modification
Outstanding
Recorded Investment
$ 98
Post-Modification
Outstanding
Recorded Investment
$ 98
-
307
214
102
-
$ 721
-
319
214
102
-
$ 733
There were no loan modifications that were considered TDRs during the year ended December 31, 2012.
No loans modified and considered TDRs that were made during the 12 months previous to December 31, 2013
or 2012, have defaulted in the current reporting period.
Ce n t rI C F In a nC Ia l
C o r p o r a tIo n
Note 5 | Premises and equipment
Ongoing additions to premises and equipment are recorded at cost. Occupancy and equipment expense
includes depreciation expense of $413,000 and $356,000, respectively, for the years ended 2013 and 2012.
Depreciation expense is calculated on the straight-line method over estimated economic lives: buildings and
improvements, 15 to 40 years; leasehold improvements, 10 years; furniture, fixtures, and equipment, 3 to 10 years.
Premises and equipment at December 31 were comprised of:
(in thousands)
Land
Buildings and improvements
Leasehold improvements
Furniture, fixtures, and equipment
Subtotal
Less: accumulated depreciation
Premises and equipment - net
2013
$ 3,252
2,658
1,507
1,889
9,306
(1,832)
$ 7,474
2012
$ 2,929
1,728
1,497
1,627
7,781
(1,419)
$ 6,362
Lease expense amounted to $274,000 for 2013 and $211,000 for 2012. Future minimum lease payments are as
follows:
(in thousands)
2014
2015
2016
2017
2018
Thereafter
Note 6 | Deposits
Centric’s deposits at December 31 were comprised of:
(in thousands)
Demand, noninterest-bearing
Demand, interest-bearing
Savings
Money market
Time deposits
Scheduled maturities of time deposits are:
(in thousands)
2014
2015
2016
2017
2018
$ 282
291
300
263
41
-
$ 1,177
2013
$ 21,958
119,102
7,873
26,488
92,373
$ 267,794
2012
$ 20,645
121,449
18,157
30,068
81,120
$ 271,439
$ 61,139
20,686
4,642
3,742
2,164
$ 92,373
Time deposits in denominations of $100,000 or greater totaled $50,989,000 for 2013 and $41,197,000 for 2012.
30
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Note 7 | Short-term Borrowings
Short-term borrowings, which consist of federal funds purchased and other short-term borrowings are
summarized as follows:
(in thousands)
Balance
Maximum indebtedness at any month end
Average balance during year
Average rate paid for the year
Interest rate on year-end balance
At December 31, 2013
$ 10,000
10,000
27
0.25%
0.25%
Average amounts outstanding during the year represent daily averages. Average interest rates represent interest
expense divided by the related average balances. These borrowing transactions can range from overnight
to one year in maturity. The average maturity was one day at the end of 2013. There were no short-term
borrowings in 2012.
Note 8 | long-term Debt
As one avenue for funding growth, the Bank is approved by the FHLB for borrowings of up to $112,388,000.
At year-end, $1,707,000 was outstanding and $9,000,000 was held as letters of credit to secure specific deposit
balances. Additional borrowing capacity for FHLB borrowings was $91,681,000 at year-end. The Company also
has a borrowing with another institution in the amount of $2,500,000, which has a stated rate of 5.00 percent
and an original maturity date in 2013, this has been extended through January 2014.
The following table presents borrowings that mature at various dates through 2016 with weighted-average
rates as follows:
(in thousands)
Advances from FHLB
Fixed
Amortizing
Other borrowings
Principal Amount
Rate
2013
2012
2013
$ -
1,707
2,500
$ 4,207
$ 2,000
2,263
2,500
$ 6,763
-
1.17%
5.00%
3.45%
2012
1.00%
1.17%
5.00%
2.54%
The aggregate amount of future principal payments required on these borrowing at December 31, 2013,
is as follows:
(in thousands)
2014
2015
2016
$ 3,062
569
576
$ 4,207
31
31
Ce n t rI C F In a nC Ia l
C o r p o r a tIo n
Note 9 | Stock Plans and 401k
401(k) Plan
The Bank has a 401(k) plan whereby all employees are eligible to participate after 90 days of employment.
Employees may make contributions to the plan, subject to certain limitations based on federal tax laws.
The Bank makes matching contributions of 50 percent of employees’ contributions, subject to a maximum
contribution of 4 percent of an employee’s compensation. Matching contributions vest to the employee on a
graded percentage and are fully vested in five years. For the years ended December 31, 2013 and 2012, expense
attributable to the plan amounted to $39,000 and $29,000, respectively, and is included in salaries and employee
benefits on the Consolidated Statement of Income.
Stock Options and Warrants
The Company has a Stock Incentive Plan (the “Plan”) that enables the Company to grant stock options, warrants,
or restricted stock to directors and other designated employees. The Plan covers 240,000 shares of common
stock. The number of shares available for grant at December 31, 2013 was 79,425.
Options granted under the Plan will have an option price at least equal to the fair market value of the common
stock on the date of the grant. The options expire not more than ten years after the date of the grant. Exercise
and vesting dates and terms may vary and are specified at the date of the grant.
In addition to those shares granted under the stock incentive plan, the Company also granted warrants to
designated officers and directors. Warrants expire not more than ten years after the date of the grant. Exercise
and vesting dates and terms may vary and are specified at the date of the grant.
Options and warrants of the Plan outstanding at December 31, 2013, and the activity that occurred during the
year consisted of the following:
Outstanding at the beginning of the year
Granted
Exercised
Forfeited
Outstanding at the end of the year
Options
and Warrants
142,153
7,282
-
(4,155)
145,280
Weighted-
Average
exercise Price
$ 5.46
6.00
-
5.88
$ 5.48
Exercisable at December 31
135,318
$ 5.45
At December 31, 2013, the aggregate intrinsic value of all options and warrants outstanding and exercisable
were approximately $76,000 and $75,000, respectively. The weighted-average remaining life of outstanding and
exercisable options and warrants is 5.71 and 5.56 years, respectively. No options were exercised during 2012 or
2013.
For the years ended December 31, 2013 and 2012, stock option compensation expense of $12,000 and $24,000
were recognized in connection with the option plan, respectively. Tax benefits of $2,000 and $3,000 were
recognized relative to these stock options at December 31, 2013 and 2012, respectively. At December 31, 2013,
future compensation expense related to non-vested stock option grants is expected to be recognized as $4,000
and $1,000 in 2014 and 2015, respectively. There is no related expense for 2016.
Common stock warrants were issued in 2006 to certain directors to purchase an aggregate share of common
stock pursuant to the warrant grant. At December 31, 2013, 26,580 shares were outstanding and exercisable
related to these warrants, with a weighted-average exercise price of $4.91. There were no warrants exercised
during 2012 or 2013.
32
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Note 9 | Stock Plans and 401k (continued)
In addition to the options and warrants included in the Plan above, during 2010, the Company also granted one
warrant to each of the directors of the Company, which are not part of the Plan. Each warrant represents 31,500
shares for a total of 315,000 shares, all of which vest only upon a change in control of the Company and have
an exercise price of $5.44. A warrant was issued to the President & CEO in July 2013 also for 31,500 shares at an
exercise price of $5.50 and will vest only upon a change in control of the Company. During 2013 and 2012 none
of these warrants vested, and the Company recorded no compensation expense associated with these grants.
The fair value of the options granted during the years ended December 31, 2013 and 2012, was calculated using
the Black-Scholes option pricing model with the following weighted-average assumptions:
exercise
Price
Dividend
Yield
expected
volatility
expected
life (Yrs)
Risk Free
Interest Rate
value
Black Scholes
Nonemployee director
stock options
2013
2012
Employee stock options
2012
$6.00
6.00
0.00%
0.00%
12.68%
14.10%
6.00
0.00%
13.63%
5
5
6.5
0.82%
0.79%
$0.79
0.86
1.37%
1.08
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Restricted Stock
Under the Plan, the Company awarded 23,338 restricted shares to non-employee directors and executive officers
subject to vesting and other provisions. Shares granted to the Plan participants of 1,970 and 6,952 had vested
and been distributed at December 31, 2013 and 2012, respectively.
The following table summarizes transactions regarding restricted stock under the Plan:
Non-vested shares at the beginning of the year
Granted
Vested
Forfeited
Non-vested shares at the end of the year
Number of
Restricted Shares
6,784
3,500
(1,970)
(263)
8,051
Weighted-
Average Grant Date
Price Per Share
$ 5.76
6.00
5.44
5.55
$ 5.95
For the years ended December 31, 2013 and 2012, compensation expense of $9,000 and $30,000 was recognized
in connection with the vesting of restricted stock, respectively. Tax benefits of $3,000 and $10,000 were
recognized relative to these shares at December 31, 2013 and 2012, respectively. Future compensation expense
related to non-vested restricted stock at December 31, 2013 is $13,000, $8,000 and $5,000 in 2014, 2015, and
2016, respectively.
Ce n t rI C F In a nC Ia l
C o r p o r a tIo n
Note 10 | Federal Income taxes
The provision for income taxes consists of the following for the years ended December 31:
(in thousands)
Currently payable
Deferred taxes
Total income tax expense
2013
$ 51
100
$ 151
2012
$ 188
113
$ 301
The following temporary differences gave rise to the net deferred tax assets at December 31:
(in thousands)
Deferred tax assets:
Allowance for loan losses
Impairment losses on securities
Stock incentive expense
Uncollected interest
Unrealized losses on securities available-for-sale
Unrealized losses on securities held-to-maturity
Other real estate expense
Other
Total deferred tax assets
Deferred tax liabilities:
Goodwill and core deposit intangible
Prepaid expenses
Loan origination costs
Unrealized gains on securities available-for-sale
Premises and equipment
Other
Total deferred tax liabilities
Net deferred tax assets
2013
2012
$ 921
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11
573
40
42
40
1,699
$ 992
53
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9
-
43
52
44
1,222
61
72
172
-
214
7
526
$ 1,173
50
123
176
65
164
6
584
$ 638
The total provision for income taxes is different from that computed at the statutory rates due to the following
items for the years ended December 31:
(in thousands)
Computed statutory tax expense
Other, net
2013
$ 200
(49)
$ 151
2012
$ 343
(42)
$ 301
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Note 10 | Federal Income taxes (continued)
The Company utilizes a recognition threshold and a measurement attribute for the financial statement
recognition and measurement of a tax position taken or expected to be taken in a tax return. Benefits from
tax positions should be recognized in the financial statements only when it is more likely than not that the tax
position will be sustained upon examination by the appropriate taxing authority that would have full knowledge
of all relevant information. A tax position that meets the more-likely-than-not recognition threshold is measured
at the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement.
Tax positions that previously failed to meet the more-likely-than-not recognition threshold should be recognized
in the first subsequent financial reporting period in which that threshold is met. Previously recognized tax
positions that no longer meet the more-likely-than-not recognition threshold should be derecognized in the first
subsequent financial reporting period in which that threshold is no longer met.
There is currently no liability for uncertain tax positions and no known unrecognized tax benefits. The Company
recognizes, when applicable, interest and penalties related to unrecognized tax benefits in the provision for
income taxes in the Consolidated Statement of Income. With few exceptions, the Company is no longer subject
to U.S. federal, state, or local income tax examination by tax authorities for years before 2010.
Note 11 | Related-Party transactions
Centric has transactions in the ordinary course of business with its directors, their immediate families, and
affiliated companies (commonly referred to as related parties).
In management’s opinion, all loans and deposits with related parties are on the same terms, including interest
rates and collateral, as those prevailing at the time for comparable transactions with other customers. At
December 31, 2013, loans to related parties were $16,174,000 and deposits by related parties totaled $8,124,000.
At December 31, 2012, loans to related parties were $14,370,000 and deposits by related parties totaled
$6,730,000.
Related-party loan activity is summarized as follows:
(in thousands)
Balance at the beginning of the period
Additions
Reductions
Balance at end of period
2013
$ 14,370
3,603
1,799
$ 16,174
2012
$ 13,215
3,880
2,725
$ 14,370
All of Centric’s directors are customers of the Bank. Centric shareholders number approximately 199 and
many are Bank customers situated in the south central Pennsylvania community. Conversely, the Bank is a
customer of some shareholder-related entities in the ordinary course of business. The Bank also had a joint
venture arrangement with an insurance agency affiliated with a director that began in 2001. During 2012, the
investment in the insurance agency was sold. During 2013, related-party transactions include $111,000 of
purchases and no revenue; in 2012, there were $96,000 of purchases and $16,000 in revenue.
The Company has employment agreements with two executive officers. The agreements include minimum
annual salary commitments. Upon termination, these individuals will receive monetary compensation as set
forth in the agreements.
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Ce n t rI C F In a nC Ia l
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Note 12 | unfunded Credit Commitments
The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to
meet the financing needs of its customers. These financial instruments include commitments to extend credit
and letters of credit by Centric’s banking subsidiary. Such instruments involve, to varying degrees, elements of
credit risk in excess of the amount recognized in the balance sheet.
The Bank’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument
is represented by the contractual amount of those instruments. The Bank uses the same credit policies in
making commitments and conditional obligations as it does for on-balance sheet instruments.
Unfunded lending commitments at year-end:
(in thousands)
Commitment to grant loans
Unfunded commitments under lines of credit
Standby letters of credit
Total unfunded lending commitments
2013
$ 6,460
27,081
1,132
$ 34,673
2012
$ 14,852
37,742
1,433
$ 54,027
Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any
condition established in the contract. Since many of the commitments are expected to expire without
being drawn upon, the total commitment amounts do not necessarily represent future cash requirements.
Commitments generally have fixed expiration dates or other termination clauses and may require payment of
a fee. The Bank evaluates each customer’s creditworthiness on a case-by-case basis.
The amount of collateral obtained, if deemed necessary upon extension of credit, is based on management’s
credit evaluation. Collateral held varies but may include personal or commercial real estate, accounts receivable,
inventory, and equipment. Commitments under lines of credit presented above include lines that will be
funded only to the extent that the Bank receives corresponding augmentation of satisfactory collateral.
Outstanding letters of credit are conditional commitments issued by the Bank to guarantee performance of
a customer to a third party. Most of these standby letters of credit expire within 12 months. The credit risk
involved in issuing letters of credit is essentially the same as in extending comparable loans to customers.
The Bank requires collateral supporting these letters of credit as deemed necessary. Management believes that
the proceeds through liquidation of such collateral would be sufficient to cover the maximum potential amount
of future payments required under the corresponding guarantees.
The Bank did not incur any losses in 2013 or 2012 associated with financial instruments with off-balance
sheet risk.
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Note 13 | Regulatory Matters
The Company is subject to various regulatory capital requirements administered by the federal banking
agencies. The Company must meet the minimum capital requirements or face mandatory and discretionary
actions by regulators that could have a direct material effect on Centric and its financial statements. Under
capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company must
meet specific capital guidelines that involve quantitative measures of the Centric’s assets, liabilities, and certain
off-balance sheet items as calculated under regulatory accounting practices. Centric’s capital amounts and
classification are also subject to qualitative judgments by the regulators about components, risk-weightings, and
other factors.
Quantitative measures established by regulation to ensure capital adequacy require the Company to maintain
minimum amounts and ratios of Total and Tier 1 capital (as defined in the regulations) to risk-weighted assets
and of Tier 1 capital to average assets.
(in thousands)
Actual
Amount
Ratio
Total capital (to risk-weighted assets)
Company
Bank
Tier 1 capital (to risk-weighted assets)
Company
Bank
Tier 1 capital (to total assets)
Company
Bank
$ 25,133
27,370
22,385
24,622
22,385
24,622
10.96%
11.93%
9.76%
10.73%
7.40%
8.14%
(in thousands)
Actual
Amount
Ratio
Total capital (to risk-weighted assets)
Company
Bank
Tier 1 capital (to risk-weighted assets)
Company
Bank
Tier 1 capital (to total assets)
Company
Bank
$ 24,547
26,568
21,994
24,014
21,994
24,014
12.04%
13.03%
10.79%
11.78%
7.44%
8.14%
December 31, 2013
For Capital Adequacy
Purposes
Amount
Ratio
$ 18,345
18,354
9,174
9,179
12,100
12,099
8.00%
8.00%
4.00%
4.00%
4.00%
4.00%
December 31, 2012
For Capital Adequacy
Purposes
Amount
Ratio
$ 16,310
16,312
8,153
8,154
11,825
11,800
8.00%
8.00%
4.00%
4.00%
4.00%
4.00%
Minimum to be Well
Capitalized
Amount
Ratio
$ N/A
22,942
N/A
10.00%
N/A
13,768
N/A
15,124
N/A
6.00%
N/A
5.00%
Minimum to be Well
Capitalized
Amount
Ratio
$ N/A
20,390
N/A
10.00%
N/A
12,231
N/A
14,751
N/A
6.00%
N/A
5.00%
Dividends are generally restricted by federal banking laws based upon regulatorily defined profit. The Company
does not intend to declare cash dividends for the foreseeable future.
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Ce n t rI C F In a nC Ia l
C o r p o r a tIo n
Note 14 | Fair value Measurements
The following disclosures show the hierarchal disclosure framework associated with the level of pricing
observations utilized in measuring assets and liabilities at fair value. The three broad levels are defined as
follows:
level I: Quoted prices are available in active markets for identical assets or liabilities as of the reported date.
level II: Pricing inputs are other than the quoted prices in active markets, which are either directly or indirectly
observable as of the reported date. The nature of these assets and liabilities includes items for which quoted
prices are available but traded less frequently and items that are fair-valued using other financial instruments,
the parameters of which can be directly observed.
level III: Valuations derived from valuation techniques in which one or more significant inputs or significant
value drivers are unobservable.
This hierarchy requires the use of observable market data when available.
The following tables present the assets reported on the Consolidated Balance Sheet at their fair value as of
December 31, 2013 and 2012, by level within the fair value hierarchy. Financial assets and liabilities are classified
in their entirety based on the lowest level of input that is significant to the fair value measurement.
(in thousands)
Assets:
Fair value measured on a recurring basis:
U.S. government agency securities
Municipal securities
Government sponsored mortgage-
backed securities
level I
December 31, 2013
level II
level III
total
$ -
-
-
$ 17,319
2,520
15,085
$ -
-
-
$ 17,319
2,520
15,085
Fair value measured on a non-recurring basis:
Other real estate owned
Impaired loans
Securities held to maturity
-
-
-
-
-
-
1,693
1,399
798
1,693
1,399
798
(in thousands)
Assets:
Fair value measured on a recurring basis:
U.S. government agency securities
Municipal securities
Government sponsored mortgage-
backed securities
level I
December 31, 2012
level II
level III
total
$ -
-
$ 10,272
1,980
$ -
-
$ 10,272
1,980
-
14,409
-
14,409
Fair value measured on a non-recurring basis:
Other real estate owned
Impaired loans
-
-
-
-
993
3,673
993
3,673
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Note 14 | Fair value Measurements (continued)
Impaired loans
Impaired loans that are collateral dependent are written down to fair value through the establishment of specific
reserves. Techniques used to value the collateral that secure the impaired loan include: quoted market prices
for identical assets classified as Level I inputs and observable inputs, employed by certified appraisers, for similar
assets classified as Level II inputs. In cases where valuation techniques included inputs that are unobservable
and are based on estimates and assumptions developed by management based on the best information
available under each circumstance, the asset valuation is classified as Level III inputs.
Other Real estate Owned
Other real estate owned is measured at fair value, less cost to sell at the date of foreclosure, establishing a new
cost basis. Subsequent to foreclosure, valuations are periodically performed by management, and the assets are
carried at the lower of carrying amount or fair value, less cost to sell.
Securities Held to Maturity
Securities held to maturity were marked to market as of December 31, 2013, as a result of impairment that was
determined to be OTTI. Management separates OTTI into two categories: (a) the amount of total OTTI related
to a decrease in expected cash flows to be collected (credit loss) which is recognized in earnings; and (b) the
amount of OTTI related to all other factors, which is recognized, net of income taxes, as a component of other
comprehensive income. The Bank recorded credit related impairment of $22,000 on two private label mortgage-
backed securities through earnings. The remaining difference between the fair value and amortized cost of
$118,000 (the difference defined as the noncredit portion) was recognized in other comprehensive income, net
of applicable taxes.
The following tables present quantitative information about the Level III significant unobservable inputs for
assets and liabilities measured at fair value on a non-recurring basis at December 31, 2013 and 2012.
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(in thousands)
Impaired loans
Fair value
$ 1,344
valuation technique
Appraisal of collateral
December 31, 2013
Quantitative Information About level III Fair value Measurements
Other real estate owned
1,694
Appraisal of collateral
Securities held to maturity
798
Discounted cash flows
unobservable Input
Appraisal adjustments
Liquidation expenses
Holding period
Range Weighted Average
6.22%
0% - 20%
0% - 15%
7.00%
0 - 12 months
Appraisal adjustments
Liquidation expenses
0% - 20%
0% - 15%
Constant prepayment rate (CPR)
Constant default rate (CDR)
Discount rate
8%
2.15% - 2.55%
5.05% - 5.12%
10.00%
7.00%
8.00%
2.37%
5.09%
(in thousands)
Impaired loans
December 31, 2012
Quantitative Information About level III Fair value Measurements
Fair value
$ 3,637
valuation technique
Appraisal of collateral
unobservable Input
Appraisal adjustments
Liquidation expenses
Holding period
Range Weighted Average
10.00%
0% - 20%
7.00%
0% - 15%
0 - 12 months
Other real estate owned
993
Appraisal of collateral
Appraisal adjustments
Liquidation expenses
0% - 20%
0% - 15%
10.00%
7.00%
Ce n t rI C F In a nC Ia l
C o r p o r a tIo n
Note 15 | Fair value of Financial Instruments
The fair value of the Company’s financial instruments is as follows:
(in thousands)
December 31, 2013
Financial assets:
Cash and cash equivalents
Investments in certificates of deposits
Securities available for sale
Securities held to maturity
Net loans
Regulatory stock
Cash surrender value life insurance
Mortgage servicing rights
and credit enhancement fees
Accrued interest receivable
Financial liabilities:
Non-maturity deposits
Time deposits
Short-term borrowings
Long-term borrowings
Accrued interest payable
Carrying
value
$ 19,222
5,995
34,924
798
227,454
1,081
2,941
Fair
value
$ 19,222
5,995
34,924
798
231,385
1,081
2,941
level I
level II
level III
$ 19,222
5,995
-
-
-
1,081
2,941
$ -
-
34,924
-
-
-
-
$ -
-
-
798
231,385
-
-
13
598
49
598
-
598
-
-
49
-
$ 175,421
92,373
10,000
4,207
64
$ 175,421
92,825
10,000
4,209
64
$ 175,421
-
10,000
-
64
$ -
-
-
-
-
$ -
92,825
-
4,209
-
(in thousands)
December 31, 2012
Financial assets:
Cash and cash equivalents
Investments in certificates of deposits
Securities available for sale
Securities held to maturity
Net loans
Loans held for sale
Regulatory stock
Cash surrender value life insurance
Mortgage servicing rights
and credit enhancement fees
Accrued interest receivable
Financial liabilities:
Non-maturity deposits
Time deposits
Other borrowings
Accrued interest payable
Carrying
value
$ 45,893
9,831
26,661
929
205,591
1,059
1,060
1,387
Fair
value
$ 45,893
9,831
26,661
951
207,878
1,059
1,060
1,387
level I
level II
level III
$ 45,893
9,831
-
-
-
1,059
1,060
1,387
$ -
-
26,661
-
-
-
-
-
$ -
-
-
951
207,878
-
-
-
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50
597
-
597
-
-
50
-
$ 190,319
81,120
6,763
98
$ 190,319
82,013
6,786
98
$ 190,319
-
-
98
$ -
-
-
-
$ -
82,013
6,786
-
Financial instruments are defined as cash, evidence of ownership interest in an entity, or a contract that creates
an obligation or right to receive or deliver cash or another financial instrument from/to a second entity on
potentially favorable or unfavorable terms.
Fair value is defined as the amount at which a financial instrument could be exchanged in current transactions
using active trading markets. If a quoted market price is available for a financial instrument, the estimated fair
value would be calculated based upon the market price per trading unit of the instrument.
If no readily available market exists, the fair value estimates for financial instruments should be based upon
management’s judgment regarding current economic conditions, interest rate risk, expected cash flows, future
estimated losses, and other factors as determined through various option pricing formulas.
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Note 15 | Fair value of Financial Instruments (continued)
As many of these assumptions result from judgments made by management based upon estimates that are
inherently uncertain, the resulting estimated fair values may not be indicative of the amount realizable in the
sale of a particular financial instrument. In addition, changes in assumptions on which the estimated fair values
are based may have a significant impact on the resulting estimated fair values.
As certain assets such as deferred tax assets and premises and equipment are not considered financial
instruments, the estimated fair value of financial instruments would not represent the full value of Centric.
Centric employed simulation modeling in determining the estimated fair value of financial instruments for which
quoted market prices were not available based upon the following assumptions:
Cash and Cash equivalents, Investments in Certificates of Deposits, Regulatory Stock, Cash Surrender
value life Insurance, Accrued Interest Receivable, and Accrued Interest Payable
The fair value is equal to the current carrying value.
Investment Securities
The fair market value of investment securities is equal to the available quoted market price. If no quoted market
price is available, fair value is estimated using the quoted market price for similar securities.
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loans
Fair value is estimated by discounting future cash flows using current market inputs at which loans with similar
terms and qualities would be made to borrowers of similar credit quality. Where quoted market prices were
available, primarily for certain residential mortgage loans, such market rates were utilized as estimates for fair
value.
Mortgage Servicing Rights and Credit enhancement Fees
The fair value for mortgage servicing rights is estimated by discounting contractual cash flows and adjusting
for prepayment estimates. Discount rates are based upon rates generally charged for such loans with similar
characteristics.
Deposits and Other Borrowings
The fair values of certificates of deposits and other borrowed funds are based on the discounted value of
contractual cash flows. The discount rates are estimated using rates currently offered for similar instruments with
similar remaining maturities. Demand, savings, and money market deposit accounts are valued at the amount
payable on demand as of year-end.
These financial instruments are generally not subject to sale and estimated fair values are not readily available.
The carrying value is represented by the net deferred fees arising from the unrecognized commitment or
letter of credit. The fair value is determined by discounting the remaining contractual fee over the term of the
commitment using fees currently charged to enter into similar agreements with similar credit risk. Neither the
carrying value nor the fair value is considered material for disclosure. The contractual amounts of unfunded
commitments and letters of credit are presented in Note 12.
Ce n t rI C F In a nC Ia l
C o r p o r a tIo n
Note 16 | Participation in u.S. treasury Programs
On July 14, 2011, Centric elected to participate in the U.S. Treasury’s Small Business Lending Fund (“SBLF”)
program. With the execution of this Securities Purchase Agreement with the Secretary of the Treasury, the
Company paid back the monies from its participation in Capital Purchase Program. Pursuant to the agreement,
Centric sold to the Treasury 7,492 shares of senior non-cumulative perpetual preferred stock, Series C at $1,000
liquidation value per share, for the price of $7,492,000.
The preferred stock Series C qualifies as Tier 1 capital and pays quarterly dividends, beginning October 2011.
Divided rates are determined upon funding and for the next nine calendar quarters, adjusted quarterly (based
on outstanding loans at the end of the second previous quarter). The percentage of the increase in lending
determines the dividend rate. Dividend rates for the tenth quarter after funding through the end of the first 4.5
years are based on the increased lending at the end of the eighth quarter after funding. The dividend rate after
4.5 years, if the funding has not been repaid, is set at 9 percent. For both 2013 and 2012, Centric qualified for a
dividend rate of 1 percent per year due to its lending growth. Under the terms of the SBLF program, with the
approval of its regulator, an institution may exit the program at any time by repaying the funding provided plus
any accrued dividends.
Note 17 | Subsequent events
Management has reviewed events occurring through March 17, 2014, the date the financial statements were
issued, and no subsequent events have occurred requiring accrual or disclosure.
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Board of Directors
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BOARD OF DIReC tORS
Standing left to right: Robert V. Gothier, Sr., CEO, RVG Management & Development Company; Steven P.
Dayton, Retired, Founder and Former CEO, CODI, Inc.; Frank A. Conte, Managing Partner, Conte Wealth Advisors,
LLC; Dr. Jeffrey W. Keiser, Partner & President, Forest Hills Dental Associates, PC; R. Luke Rohrbaugh, Retired,
Director–Investments, Wells Fargo Advisors; Fred M. Essis, President & CEO, Essis & Sons Carpet One; Thomas H.
Flowers, Certified Public Accountant, Flowers & Flowers, CPA; Kerry A. Pae, Secretary of the Board, President &
Owner, Kerry Pae Auctioneers, Inc.; and Renée J. Conner, CEO/Owner, PensionPro Software, LLC.
Seated left to right: Donald E. Enders, Jr., Chairman of the Board, President, Colonial Park Realty Company,
Enders Insurance Associates; Patricia A. Husic, President & CEO, Centric Financial Corporation and Centric Bank;
and John A. Maher, CPA, Vice Chairman of the Board, Member, Pennsylvania House of Representatives.
leADeRSHIP teAM
COMMeRCIAl leNDING teAM
n Patricia A. Husic, President & CEO
n Jeffrey W. Myers, EVP, Chief Lending Officer
n Sandra J. Schultz, EVP, Chief Financial Officer
n Leslie A. Meck, SVP, Chief Retail Officer
n T. Wayne Stefanovich, SVP, Chief Credit Officer
n Shane E. McNaughton, SVP, Management
Information Systems
n Michelle L. Carrasquillo, SPHR
VP, Human Resources Manager
BRANCH MANAGeMeNt teAM
n Joseph M. Rebarchak, AVP
n Paul B. Zwally, SVP, Senior Commercial
Lending Officer
n Donald J. Bonafede, SVP, Senior Commercial
Lending Officer
n Michael J. Watson, VP, Commercial Lending
n Cheryl C. Sakalosky, VP, Commercial Lending
n Eric N. Fischer, VP, Commercial Lending
n Vickie L. Broughton, AVP
Lower Paxton Financial Center Manager
Camp Hill Financial Center Manager
n Mary Anne E. Bayer, AVP
n Vicky L. LaCour, AVP
Silver Spring Financial Center Manager
Derry Township Financial Center Manager
a n n u a l r e p o r t | 2 0 1 3
Centric Bank Financial Centers
Now
Open!
DeRRY tOWNSHIP FINANCIAl CeNteR
1201 West Governor Road
Hummelstown, PA 17036
(717) 533-7626
Fax (717) 533-7670
lobby & Drive-thru Hours
Monday-Thursday 8:30 a.m. to 5 p.m.
Friday 8:30 a.m. to 6:00 p.m.
Saturday 8:30 a.m. to 12 noon
Visit Our Other Convenient Locations
lOWeR PAX tON FINANCIAl CeNteR
SIlveR SPRING FINANCIAl CeNteR
CAMP HIll FINANCIAl CeNteR
4320 Linglestown Road
Harrisburg, PA 17112
(717) 657-7727
Fax (717) 657-5036
6480 Carlisle Pike
Mechanicsburg, PA 17050
(717) 591-1360
Fax (717) 591-1363
1625 Market Street
Camp Hill, PA 17011
(717) 730-2816
Fax (717) 730-2813
lobby & Drive-thru Hours
lobby & Drive-thru Hours
lobby & Drive-thru Hours
Monday-Thursday 8:30 a.m. to 5 p.m.
Friday 8:30 a.m. to 6:00 p.m.
Saturday 8:30 a.m. to 12 noon
Monday-Thursday 8:30 a.m. to 5 p.m.
Friday 8:30 a.m. to 6:00 p.m.
Saturday 8:30 a.m. to 12 noon
Monday-Thursday 8:30 a.m. to 5 p.m.
Friday 8:30 a.m. to 6:00 p.m.
Saturday 8:30 a.m. to 12 noon
Access your Centric account 24/7 with our new
Mobile Banking app!
n Verify Transactions & Balances n Transfer Funds
n Pay Your Bills
n Deposit Checks Remotely
n View Account Alerts
* Centric Bank does not currently charge a fee for Mobile Banking, however your mobile phone provider may charge
data usage fees or internet access fees. Message and data rates may apply. Check with your mobile phone provider
for more details and specific fees. iPhone is a trademark of Apple Inc., registered in the U.S. and other countries.
Android is a trademark of Google Inc. Centric Bank is a member FDIC.
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OU R MI SSION
Centric Bank is a locally owned, locally loaned community bank that provides a
variety of core financial services to businesses, professionals, and individuals. We
promise our customers immediate, direct access to our bank decision makers
and deliver the finest personalized service in the industry. Centric has committed
people and resources to enrich the communities where we live and work. Because
trust is our most important commodity, we are focused on building and sustaining
long-term generational relationships with our customers, our community, our
employees, and our shareholders. In every transaction, We Revolve Around You.
OU R VISI ON
We aspire to become the locally owned, independent, community bank of choice
for small and medium-size businesses, professionals, and individuals in central
Pennsylvania. We will combine steady growth, consistent earnings, and firm
control of risk factors to provide safety for our depositors. Our people will be the
difference in establishing consistency in earnings and enhanced shareholder value.
CORE VA LUES
We trust our principles are clear to every customer from the moment you enter
our facilities or speak to a Centric Bank representative:
n We value an uncompromising dedication to understanding and meeting our
clients’ financial needs.
n We recognize and reward the contributions of our team members and believe
that qualified, loyal, and committed professionals are our most valuable asset.
n We practice prudent business planning and cost management strategies to
ensure financial viability and responsible growth.
n We embrace change and continually seek ways to provide quality, cost-
effective services that meet or exceed our clients’ expectations.
n We seek to establish a relationship of trust and respect with our clients and
value integrity as an organization and as individuals.
n We are committed to providing the best possible service to our clients. We will
go above and beyond what is required to attract and retain cherished business
relationships. Our goal is to build relationships. We Revolve Around You.
Narratives, Numbers, and New Ground
Powering business and communities. Growing with intention.SM A drumbeat of confidence backed by
financial integrity, it’s a narrative that prizes relationships with our customers and neighbors above all
else. Our growth continues to be focused on serving you where and when you need us.
Numbers, while fundamental to our industry, are only part of the reason we are your small business
lender of choice. At Centric Bank, a home mortgage, a line of credit, or a loan to expand a retail
enterprise is bolstered by earnest attention and honest advice. We’re on your team as partners, guides,
encouragers, and advocates.
Remaining mindful of those who first put their faith and money in Centric Bank seven years ago, we
broke new ground in 2013: opening our fourth financial center, introducing our mobile banking app,
and hiring 19 new faces. All achieved with your best financial interests at heart.
In every story, every transaction, and every new service, our promise remains: We Revolve Around You.
4320 Linglestown Road | Harrisburg, PA 17112 | (717) 657-7727 | Fax (717) 657-7748 | www.centricbank.com