Centric Financial Corporation Annual Report 2015

FY2015 Annual Report · Centric Financial Corporation

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c o m m u n i t y m a t t e r s .

c e n t r i c f i n a n c i a l c o r p o r a t i o n

CentriC finanCial
Corporation
annual report 2015

Letter to Our Shareholders, Customers, and Friends ....................................................................................................... 2

Community Matters .............................................................................................................................................................................................................. 4

Serving New Communities ....................................................................................................................................................................................... 4

Raising Capital, Raising Brand Equity, and Raising the Bar ................................................................................... 5

Finishing Strong ........................................................................................................................................................................................................................... 5

Acquiring Top Talent and High-Potential Clients ................................................................................................................. 6

Investing in Community Matters .................................................................................................................................................................... 8

Doctor Centric Bank .............................................................................................................................................................................................................. 9

Trendlines ........................................................................................................................................................................................................................................... 10

Performance Matters ....................................................................................................................................................................................................... 11

Centric Financial Corporation: Financial Report 2015

Independent Auditor’s Report ........................................................................................................................................................................ 12

Consolidated Balance Sheet ............................................................................................................................................................................... 13

Consolidated Statement of Income ....................................................................................................................................................... 14

Consolidated Statement of Comprehensive Income .................................................................................................15

Consolidated Statement of Changes in Stockholders’ Equity ..................................................................... 16

Consolidated Statement of Cash Flows ........................................................................................................................................... 17

Notes to Consolidated Financial Statements ............................................................................................................. 18-47

Centric Bank Board of Directors .................................................................................................................................................................... 48

Senior Leadership Team ............................................................................................................................................................................................. 49

Branch Management and Lending Teams .................................................................................................................................. 50

Investor Relations .................................................................................................................................................................................................................. 51

Centric Bank Financial Centers ........................................................................................................................................................................ 52

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To Our Shareholders, Customers, and Friends:

Every time we look at our ocean blue spherical logo,
it’s a pleasant reminder of “Community” and what
really “Matters”—and that’s our theme for 2015.

We live, work, play, learn,
and build together. This was
a year of impressive growth,
performance, partnerships,
and platforms. We reached
a new status with our
ticker symbol—CFCX—and
completed an oversubscribed
common stock offering
to support future growth.
Staying keenly focused on
our strategic loan portfolio
goals and delivering
shareholder value to you, our
322 investors, we captured
new market share as big
banks acquired small banks.

Headlines like “Midstate
banking M&A market will be
hot in 2016,” and “Two deals
that affected the mid-state
were among the country’s
seven largest deals of the year
in terms of value” heightened
lending concerns among
business owners. In this era of

DonalD E. EnDErs, Jr.
Chairman of the Board

Patricia a. Husic
President & CEO

banking musical chairs, Centric Bank has developed
the deepest and strongest ties to businesses and
individuals in our communities. We live where we
lend. Our client ambassadors, who share testimonies
on these pages, know that fueling small business is
the prescription for job creation. While other financial
institutions balloon and bust, we pledge continued
growth and long-term fidelity. Our total assets
increased by 20% and grew to $373 million at year-
end 2015.

As your Community Bank of Choice, we have privileged
insight into Pennsylvania’s small business engine. A
powerful growth tool, SBA lending continued to be
a strategic initiative. We originated and closed over

$23 million in new SBA loans during 2015. Creating
measurable economic impact, our lending strength
and partnerships propelled us to the #1 position in
SBA lending for our 5-county area as of SBA FYE 15.

Total loans originated in 2015 were $137 million,
with an increase in loans outstanding of $60 million,
or 24% growth over the prior year. As compared to
Pennsylvania banks under $650 million, the median
loan growth rate was 6.36% for the year. Once again,
Centric Bank retained leadership in organic loan
growth in our markets. Our yield on the loan portfolio
was 4.64%, as compared to our peers at 4.52% for 2015.

Our asset quality remained pristine, and non-
performing assets as a percentage of total assets were
.65%, an improvement from .92% at the end of the
prior year. The bank peer group reported a median
of 1.06% for that same period. Centric Bank’s asset
quality is reflective of our high-caliber clients and
prudent underwriting process delivered by the credit
and risk management team.

Centric Bank’s financial highlights as of December 31,
2015, are as follows:

n Net income after taxes was $1.84 million,

an increase of 49%;

n Net interest margin grew to 3.48% from 3.44%;

n Cost of funds decreased from .77% to .73%;

n Loan-to-deposit ratio increased to 101.2%

from 92.0%;

n Return on assets increased to .55% from .40%;

n Return on equity was 7.84%, compared to 7.87%
in 2014, the decrease a result of the $12 million
stock offering;

n Earnings-per-share increased to $0.42/share, up
from $0.38/share, an increase of $0.04/share or
11%, even with the impact of the additional shares
resulting from the stock offering;

n Tangible book value of the bank’s stock increased
to $5.37/share, an increase of $0.22/share or 4.3%.
The year-end trade was $7.00/share.

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A key strategic initiative was increasing non-interest
bearing deposits as a percentage of total deposits. As
seen with high-performing financial institutions, these
numbers are in the range of 18-26%. At the end of
2014, non-interest bearing checking as a percentage
of total deposits was 9%. We ended 2015 with this
ratio at 17%, an increase of $28.7 million from the year
prior. We are committed to increasing this ratio yearly.

mobile app user-experience and provide new tools
for clients to be served on the screen of their choice.
Our team has seized opportunities and taken smart
advantage of the dislocation in our markets resulting
from bank mergers. We have seen significant
successes in new client acquisition, and we continue
to discover additional ways to lead these businesses
and individuals to Centric Bank.

Another strategic initiative was to increase non-
interest income with a focus on SBA lending and
mortgage loans. In 2015, we sold over $16.1 million
in SBA loans with a resulting gross fee income of
$1.7 million, up $1.66 million from the prior year.
We also outlined goals to build infrastructure in our
mortgage operations area to sell our mortgage loans
directly to the secondary market. We added investors,
implemented software, enhanced checks and
balances, and are adding originators: 2016 is primed
for significant impact to non-interest income.

In April 2015, a 5-person lending team established
a loan production office in suburban Philadelphia,
expanding the franchise value of the bank. This team
brings over 75 years of experience in the commercial
banking industry. The charge of the Doylestown-
based team is commercial lending, with an emphasis
on C&I lending, as well as SBA lending. During 2015,
this team booked $20 million in commercial loans,
$10 million in deposits, and contributed 59% of fee
income from SBA loans. They achieved profitability
in September 2015, three months ahead of the
budgeted forecasts.

An additional goal was to increase operational
efficiency through technology and increasing fee
income. In 2015, our efficiency ratio improved
to 72.6% from 76.1% the prior year. To improve
customer profitability and evaluate prospects, we
are implementing tools through a Relationship
Profitability Management model. We introduced the
RPM tools in January 2016 after set-up and testing
during the fourth quarter.

In 2016, we plan to enhance the turnaround and
efficiency of the credit area, so we can deliver quick
results to our prospects and clients. Understanding
the power of technology, we continue to evolve our

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Our Doctor Centric Bank division grew loans to
$17.3 million and increased deposits by $850,000.
We deepened customer relationships in 2015, and
plan to double the loans outstanding in the medical
industry for 2016. Doctor Centric Bank’s concierge
service has expanded measurably through personal
referrals and word-of-mouth marketing. We are
proud to be the start-up financier and second-stage
growth partner for dentists, oncologists, cardiologists,
dermatologists, and other health care specialists.

An exclamation point to 2015 was our issuance of
$6 million in subordinated debt at one of the lowest
rates issued in the U.S. by a financial institution. Set
for a term of 10 years, it is fixed at 4.85% for the first 5
years. The proceeds were used to pay back the Small
Business Lending Fund (SBLF) to the U.S. Treasury at
year-end, prior to the reset of the rate in mid-January
2016. We also used $1.5 million of our common stock
proceeds toward that payoff. These funds provided
over $86 million in new commercial loans to small
businesses.

With palpable momentum and a reputation as the
lifeline for small business, we advance new strategic
initiatives. We are working smarter, delivering quick
turnarounds, and living our brand promise. We have
the best team in place to execute the strategic plan
and deliver returns to every stakeholder. We are
honored to Revolve Around You and are grateful to be
the stewards of your investment in Centric Financial
Corporation.

Sincerely,

Donald E. Enders, Jr.
Chairman of the Board

Patricia A. Husic
President & CEO

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Community Matters

Centric Bank celebrated a year of corporate
growth, economic opportunities, and capital raise
milestones in 2015. As our world becomes ever more
connected, regulated, and geopolitical, our focus
remains on prospering the community—it’s our
ballast. In every transaction, strategic initiative, and
customer communication, Community Matters.

“Since our first conversations in 2007 about the
exciting possibility of starting our own bank with the
singular intention of powering small business, we
redouble our clearly articulated goals both then and
now: Be the difference maker. Be the rocket fuel for
our economy. Be focused on growth, but never at the
expense of relationships.

“Nine years later, we have stayed the course. What
has changed is our bench strength: We have grown
from $60 million to $373 million in assets. Meanwhile,
the original inspiration to fuel small businesses and
propel job creators remains preeminent,” says Patti
Husic, President & CEO.

The function of finance is one of the most critical
elements for small business opportunities, and
despite new technologies and data-driven insights,
the human connection between community banker
and small business owner is still the springboard for
success. “Almost paradoxically, as more technology
becomes available, human judgement and wisdom
matter more,” says University of Michigan professor
Kentaro Toyama. Centric Bank’s deep commitment
to Main Street America has tapped into this desire to
know your banker, to understand the principles of

your bank, to share its goals, and to benefit from its
business strategies.

Serving New Communities

New client recruitment and retention have opened
several growing markets in our footprint—the
Millennials who have come of age with an Internet-
accessible device and who are defined by their
big ideas and strong convictions; women business
owners whose only barrier to lift off is access
to resources and decision-making networks;
and entrepreneurs who are investing in office
infrastructure and commercial real estate.

Connecting with Millennials—now the largest
generation in the U.S. workforce—is imperative for
Centric Bank’s long-term sustainability. “We are loyal.
We want to bank with people we know, people we
see volunteering in our communities, and people
who give where they live. I expect the convenience of
a Centric Bank app, but emphasize the value of an in-
person relationship,” says Andrew Enders, Esq., Enders
Insurance Associates, and president of Harrisburg
Young Professionals.

Using new technologies, Centric tracks trends in
banking services and can use this data to meet clients’
needs for more efficient business management, cash
management, executive lines of credit, mobile and
Internet banking, SBA loans, and office equipment
purchases.

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As first-time home buyers, we opted to take on
a new construction loan. Centric Bank was one
of the only institutions that even considered
our initial proposal for financing—and we
couldn’t be happier that they did! We have had
a steep learning curve to conquer, but Getty
Wilson and her team at Centric Bank have
been with us since day one. From answering
questions on how construction loans function
differently than typical mortgages, or taking
extended meetings to build a game plan to
maximize our rates, Centric Bank has provided
us with the information, transparency, and
support necessary for us to feel confident
and happy with our home-building choice.
Centric made our dream a reality!

K y lE C o oK A N D FiA N CéE BE t h ho lt
New Cumberland, PA

Despite new technologies
and data-driven insights, the
human connection between
community banker and small
business owner is still the
springboard for success.

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Raising Capital, Raising Brand Equity,
and Raising the Bar

In 2015, Centric Financial Corporation received
its OTC ticker symbol and began trading as CFCX.
Independence and innovation are in Centric Bank’s
DNA. This was particularly evident in this year’s
growth surges. “We relate to the entrepreneur who
takes an idea to market and convinces an investor
to fund a dream. This is the lifeblood of small
business, and it’s a story we live daily,” says Husic.
On November 20, Centric Bank exceeded its $8 million
goal and completed a $12 million capital raise in 30
days, expanded twice to meet investor demand, and
closed oversubscribed.

“The estimated $11.3 million in net proceeds from
the transaction will be used to support operational
growth, increase organic loan growth, accelerate
SBA opportunities, and expand our service footprint
in the suburban Philadelphia region and throughout
Pennsylvania,” says Husic. “Investor support for this
highly successful offering was a vote of confidence
for Centric’s expansion and a clear signal to business
builders that we are well capitalized and prepared to
finance the future.”

Finishing Strong

Centric Financial Corporation announced on
December 30, 2015, plans to pay off the Small
Business Lending Fund (SBLF) to the U.S. Department
of the Treasury and entered into a subordinated
note purchase agreement under which the
Company issued a $6 million subordinated note to a
Williamsport, Pennsylvania-based financial institution.
“This was an exclamation point to a strong year, and
we’re excited about the momentum it provides us for
2016. We take our commitment to ‘powering the GDP’
very seriously. Community banks form the financial
fabric of entire regions, and our positive capital
growth trajectories are helping to create stronger,
more prosperous communities,” says Husic.

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During the course of the SBLF Program, Centric
Bank used the funds to lend an additional $86
million in loans to small businesses—an increase of
approximately 160% in commercial loans. “The SBLF
Program was very successful for Centric Bank and
the communities we serve. We were able to provide
significant access to capital for our small business
owners to help them grow and create jobs,” says
Husic.

Our commercial loan portfolios exceeded this year’s
goal of $50 million in new loans and have grown by
24%. This infused capital has unleashed innovation
and job creation in the life sciences, chemical labs,
farm-to-table restaurants, surgical centers, hotels,
health care, and aviation. As regional banks were
absorbed by outsiders, Centric Bank immediately
captured new market share and developed new
banking relationships.

Acquiring top talent and high-Potential Clients

To meet pent-up commercial lending demand, Centric
expanded in suburban Philadelphia with a 5-person
lending team on April 13, 2015. The Bucks County
Centric Bank team opened a loan production office
within 100 days and is exceeding Centric’s commercial
loan goals. They booked $20 million in loans in
2015. This high-octane team led by Michele E. Light,
Senior Vice President and Market Leader, delivers
an aggregate 75+ years of local financial expertise,
as well as small business, SBA, and commercial real
estate loan experience.

Centric Bank is well-positioned to continue its SBA
growth in 2016 and beyond. Recognized as the #1
SBA lender in a 5-county area as of SBA FYE 15, Centric
Bank surpassed 2 billion-dollar financial institutions
that have repeatedly held the top 2 positions.

i was looking to partner with a progressive
bank that would provide me with the highest
level of industry knowledge, customer service,
and ability to streamline the SBA process
when buying my first business. the team at
Centric Bank designed a flawless strategy that
gave me an incredible experience from start to
finish. the flexibility and proactive approach
they took in understanding my business
model and growth objectives allowed me to
secure a loan, apply for additional working
capital, and use Centric Bank as my personal
bank for my new business.

it is rare to find a business that has the
resources and outstanding attitude that i have
witnessed firsthand at Centric Bank. their
concern for my professional and personal
goals makes me feel like i am working with
family. they have my best interests in mind
and will encourage my continued growth for
years to come.

K E ViN B A U E R
Owner, R3Access Inc.
(Kevin Bauer, center, with the R3Access team)
Warminster, PA

consecutive year, the Central Penn Business Journal
named Centric Bank as one of the Top 50 Fastest
Growing Companies in the region.

Adding 7 new employees in 2015, Centric Bank
became 78 people strong with a goal to add 20 new
positions in 2016. “We plan to expand our mortgage
office by 9 employees and add additional commercial
and retail sales staff to Harrisburg and Bucks County,”
says Husic. “We are very proud of our high-achieving
teams. Their relationship banking rapport has
attracted many new clients in suburban Philadelphia.”

During more than 50 years in business,
Carson has adapted its business model to
reflect the ever-changing advancements and
opportunities in the helicopter industry.
our longevity is based on being a step ahead
of the competition, which takes vision as well
as the monetary means to continually move
forward. Carson has learned the importance
of choosing a bank and a banker who
understand innovation and loyalty. Almost
20 years ago, we met Chris McDermott who
became not only our banker but a trusted
friend. When Chris told us he was working for
Centric Bank, we did not hesitate to follow
him. We have been impressed with our new
relationship with Centric Bank and look
forward to a long and fruitful association.

F R A N K C A R SoN & tE R Ri l ZiE GlE R - C A R SoN
Owners, Carson Helicopters
Perkasie, PA

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We turned to Centric Bank to provide us with
the financial tools and resources to build
our restaurant. Patti husic understood our
dream and has personally seen to providing
everything we need for success. We highly
recommend the entire Centric team. they
provide the personalized banking service that
small businesses thrive on.

ShEl ly P A G E
Owner, Vrai Restaurant
Lemoyne, PA

“To provide relationship-banking services to our
neighbors in southeastern Pennsylvania is an exciting
opportunity for us,” says Husic. “The rich history
of the region, the business DNA, work ethic, and
demographics of Bucks County and the surrounding
counties that we do business in complement our
customer and shareholder base.”

“Blending the people skills and lending strengths
of our teams was instinctive from our first meeting
with the Centric Bank leadership,” says Light. “This
acquisition is an economic opportunity for our
entrepreneurs and small business owners who
depend on access to capital from their community
banker.”

The Centric Bank mission is clear: Our people will be
the difference in establishing consistency in earnings
and enhanced shareholder value. Hiring the best
talent who innately demonstrate the bank’s DNA of
“people-first and community matters” has been the
catalyst for 24% loan growth in central Pennsylvania
and in becoming #1 among banks in Pennsylvania
under $650 million in assets. And, for the fourth

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investing in Community Matters

As the only community bank headquartered
in Harrisburg, Centric Bank gives where they
live. A simple Google Search of #CentricBank,
#WeRevolveAroundYou, and #BeTheDifferenceMaker
showcases the Centric family attending to Community
Matters. Sponsoring the U.S. Marine Corps Reserve
Toys for Tots Parade and marching with the entire
staff; honoring our war heroes in the Memorial Day
Parade; supporting the American Heart Association’s
Go Red campaign; serving the Salvation Army’s WIN
Women Involved; fighting pediatric cancer with the
Four Diamonds Fund; investing in education through
school foundations; and volunteering for the Central
PA Food Bank are just a few of the ways we quietly
show our neighbors how much we care.

We also connected and helped customers, friends, and
community leaders in the following organizations:

n Ronald McDonald House of Central Pennsylvania
n Bishop McDevitt High School
n Norwood-Fontbonne Academy
n PA Breast Cancer Coalition
n American Cancer Society
n United Way of the Capital Region
n Central PA Blood Bank
n Susquehanna Township School District
n Central Dauphin School District
n Camp Hill High School Lion Foundation
n United Methodist Home for Children
n Holy Spirit Hospital
n Whitaker Center

Building our brand message with strategic marketing
was evident in the headlines and hashtags we created
and the media attention we garnered. Focused on a
multi-channel marketing strategy of Earned, Owned,
and Paid Media, we met our customers on the screen
and channel of their choice: mobile, laptop, desktop,
digital, outdoor, radio, print, blog, and in person.
From the Central Penn Business Journal to PennLive,
to the Bucks County Courier Times, to the Philadelphia
Business Journal, to PA Banker and American Banker,
WITF Smart Talk, Facebook, Instagram, LinkedIn, and

Twitter, the Centric Bank story energizes and inspires
customers.

“On average, loyal customers are worth up to 10
times as much as their first purchase,” states the White
House Office of Consumer Affairs. Cultivating that
loyalty and inviting our customers’ user-generated
content and stories builds a strong community bond.

Making national headlines in October 2015, CEO Patti
Husic was recognized as #19 on American Banker’s
prestigious Most Powerful Women in Banking among

Rita’s is a niche business and its reputation
and great products speak for themselves.
We became the owners of two Rita’s locations
this past July and have Centric Bank to thank
for making this venture a reality.

Coming from the banking industry
ourselves, we had a unique perspective
when choosing a financial institution to fund
our purchase. We sought an institution that
could guide us through one of the biggest
decisions in our lives. A partner who could
provide a community-minded approach,
local decision making, personal service,
and a shared commitment to meet our
closing deadline. Centric was also able to
provide recommendations for other local
professionals who aided in our start-up,
as well as additional service partners and
advisors.

KiM A N D Jo hN tAy l oR
Owners, Rita’s Italian Ice
Harrisburg, PA

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Twitter, the Centric Bank story energizes and inspires
customers.

Making national headlines in October 2015, CEO
Patti Husic ascended to #19 on American Banker’s
prestigious 25 Most Powerful Women in Banking
recognition among hundreds of female executives.

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Right from the start, i knew Centric Bank was
a good match for me. their personal attention
and forward-thinking leadership fits with my
business goals and allows me to continue to
move my practice forward. Centric’s ability to
provide doctor-friendly solutions and make
me feel like i’m a valued client means i have
the confidence that i can count on them for my
ongoing banking and borrowing needs.

R oB E Rt l . My E R S , D M D , M B A
Wood & Myers Oral & Maxillofacial Surgery
Camp Hill, PA

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American Banker praised Patti’s leadership in driving
Centric Bank to “five consecutive annual profits” and
for guiding an executive team that is 75% female
with a clear focus on diversity, inclusiveness, and
prosperity. “Husic’s presence on the list is a welcome
change to give women an executive banking voice
where it certainly seems like that voice is muted, if not
silenced altogether,” says Mike Sadowski, reporter for
the Central Penn Business Journal. Recognizing these
strengths and benefits of diversity, the Harrisburg
Regional Chamber/CREDC highlighted Patti Husic and
Centric Bank as the 2015 Business Diversity Champion
of the Year in their annual Catalyst Awards.

Understanding our position as a banking
leader and economic lifeline for small business,
Centric is honored to be the bank “powering the GDP”
and “fueling the local economy” on a statewide and
national platform. Our Community Matters principle
extends to Centric’s colleagues and those who look
to us as professional role models in the community.
On March 9, 2015, Patti led the second inaugural
Pennsylvania Bankers Association Women in Banking
Symposium where 280+ women from around the
Commonwealth convened to advance their careers
in banking. Centric Bank was integral in tweeting
and posting the day’s content for financial leaders,
investors, banks, and those who aspire to a banking
career.

Doctor Centric Bank

In its third year, Doctor Centric Bank continues to
serve the highly specialized private banking needs
of doctors and health care professionals.

Offering a full suite of financial services—equipment
leasing, new construction, infrastructure financing,
cash management, medical malpractice financing,
leasehold improvement financing, private loan
structures, revolving lines of credit, and practice
mortgages—our Powerful resources. Concierge care.SM
has direct bottom line benefits.

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Trendlines

What can you expect in 2016? Banking that’s pleasant
and convenient, personalized and inspiring. If you can
learn a lot about people by where they spend their
money, you can certainly learn a lot about a Bank
by whom they “bank” on. Our community investment
in Main Street is easily discoverable—small
businesses, entrepreneurs, innovators, makers,
builders, and physicians.

As we build more prosperous communities together,
you’ll see rising trendlines in SBA loans, commercial
and mortgage lending, fee income, and powerful
omnichannel banking—one source for every service.
When banking “for the long haul” matters, We Revolve
Around You.

When we decided to build our building, we
were repeatedly told it was not going to be
possible. Centric Bank stepped in with its team
of experienced and dedicated personnel and
made the impossible possible. Their can-do
attitude and experience led the way for an
exciting new Ted’s Bar & Grill, bigger, better,
and built for the long haul. If it was not for
Centric Bank, the dream may have eluded
us. Now as we move forward with the growth
and expansion of Ted’s, we look to Centric for
guidance well into the future.

J O H N S A A D , r O m e O l A m A r C O ,
A N D JeS Se H AmIl T O N ( L - R )
Co-Owners, Ted’s Bar & Grill
Harrisburg, PA

A lifetime goal became a reality when I was
offered a chance to purchase the business
where I had worked for over nine years, but
I was overwhelmed with concerns about
how to handle the financing of such a large
investment. I contacted Centric Bank and
was immediately put at ease after a brief
conversation with a lending officer.

my confidence in the financing process grew
with each meeting. The Centric team took
the time to ensure I was comfortable with the
SBA lending process and clearly explained all
my options. Their expert management of all
aspects of the purchase allowed me to focus
on running my business. It made a world of
difference to me to be treated like more than
just another client.

DuS T I N r . B Ak e r , F D
Supervisor/Owner
Myers-Harner Funeral & Cremation Services Inc.
Camp Hill, PA

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SBA lender in a 5-county area as of SBA FYE 15

Organic loan growth

Top 50 Fastest Growing Companies for 4th
consecutive year

CEO Patti Husic recognized by American Banker as one of
the 25 Most Powerful Women in U.S. Banking

Harrisburg Regional Chamber/CREDC names Patti Husic
and Centric Bank Business Diversity Champion at the
Catalyst Awards

Total employees in 2015

New SBA loans to power small businesses

New employees to be added in 2016

Million in assets

Million capital raise

Million Doctor Centric Bank loans

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iNDEPENDENt AUDitoR’S REPoRt

TO THE BOARD OF DIRECTORS
CENTRIC FINANCIAL CORPORATION
HARRISBURG, PENNSYLVANIA

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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, 2015 and 2014; 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, 2015 and 2014, 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.

Wexford, Pennsylvania
February 26, 2016

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CoNSoliDA tED StAtEMENt oF C oMPREhENSiVE iNC oME

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CoNSoliDA tED StAtEMENt oF ChANGES iN StoCKholDERS’ EQUity

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CoNSoliDA tED StAtEMENt oF CASh Flo WS

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NotES to CoNSoliDA tED FiNANCiAl StAtEMENt S

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 full service offices in south central Pennsylvania, a loan
production office in Bucks County, as well as online banking channels. The Bank’s principal source of revenue is
interest income generated 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 impaired loans, allowances for loan and other credit losses, 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. The Bank is 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 for regulatory reporting only. 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. The required minimum balance was $268,000 and $222,000 at December 31,
2015 and 2014, respectively.

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. During April 2015 the Bank
expanded into suburban Philadelphia, Pennsylvania with a new loan production office.

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Note 1 | Significant Accounting Policies (continued)

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
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.

The Bank engages in lease financing for commercial customers to purchase equipment or vehicles. Leases are stated
at their outstanding unpaid principal balances, net of any deferred costs, residual receivable and unearned income.
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.

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Note 1 | Significant Accounting Policies (continued)

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, 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.

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 using 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.

Regulatory Stock
Under membership agreement, the Bank is required to own stock issued by Atlantic Community Bankers Bank.
Because ownership and disposition is restricted, the shares lack a market for measuring fair value and are recorded at
cost.

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Note 1 | Significant Accounting Policies (continued)

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 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 as of December 31, 2015 or
2014.

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. Amortization expense
of $4,000 and $6,000 was recognized in 2015 and 2014, respectively. The unamortized balance was $2,000 and $7,000
at December 31, 2015 and 2014, respectively. Amortization expense will be $2,000 for 2016.

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 have
finished amortizing during 2014. These assets were amortized based upon portfolio activity and subject to ongoing
evaluation for any permanent impairment.

MPF portfolio fees earned amounted to $13,000 and $18,000 during 2015 and 2014. The MPF portfolio balance was
$2,948,000 and $4,452,000 at December 31, 2015 and 2014, respectively. The FHLB maintains a first-loss position
for the MPF portfolio that totals $310,000. Should the FHLB exhaust its first-loss position, recourse to the Bank’s
credit enhancement would be up to the next $21,000 of losses. The Bank has not experienced any losses for the MPF
portfolio. There were no credit enhancement fees receivable, net of an estimated liability, at December 31, 2015 or
2014.

The Bank sells the guaranteed portion of Small Business Administration (SBA) approved loans. The loans are serviced
by the Bank and generate corresponding mortgage servicing rights. The portfolio balance of loans generating
mortgage servicing rights was $15,717,000 at December 31, 2015. The value of the mortgage servicing rights was
$391,000 at December 31, 2015.

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Note 1 | Significant Accounting Policies (continued)

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.

Advertising and Marketing 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.

Options and warrants to purchase 72,335 and 65,053 shares of common stock, at a weighted-average price of $5.70
and $5.71, outstanding at December 31, 2015 and 2014, respectively; and unvested restricted shares of 556 and 127 at
December 31, 2015 and 2014, respectively, at a price of $6.00 for each period disclosed, were not included in dilutive
earnings per share because the result would be anti-dilutive.

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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) as financing cash flows. During 2015 and 2014, no stock
options were exercised.

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Note 1 | Significant Accounting Policies (continued)

Accumulated Other Comprehensive 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.

Such items are included as components of accumulated comprehensive loss, as follows, net of taxes:

The following illustrates amounts reclassified out of each component of accumulated other comprehensive income.

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 loss, net of related deferred
income taxes. At March 3, 2014 the municipal securities portfolio, with amortized cost of $2,903,000 and a fair value
of $2,698,000, was reclassified from available-for-sale to held-to-maturity. The net related unrealized loss at the time of
the transfer was $205,000, which remained in accumulated other comprehensive loss and is being amortized over the
remaining life of the related securities.

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Note 2 | Investment Securities

A summary of securities available for sale is as follows:

A summary of securities held to maturity is as follows:

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Securities with a fair value of $15,711,000 and $24,296,000 were pledged to collateralize bank deposits by Pennsylvania
local governments, FHLB advances, and the discount window as of December 31, 2015 and 2014, respectively.

During 2015, the Bank sold seven securities totaling $3,492,000 resulting in gross gains of $3,000 and gross losses
of $4,000. For the twelve months ended December 31, 2014, the Bank sold twenty five securities totaling $6,728,000
resulting in gross gains of $78,000 and gross losses of $75,000.

The amortized cost and fair value of debt securities owned at December 31, 2015, by contractual maturity, are
shown below:

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Note 2 | Investment Securities (continued)

A summary of securities which were in an unrealized loss position is as follows:

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 amortized 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. For the years ended
December 31, 2015 and 2014, Centric did not record any credit-related impairment. There were 40 securities that were
temporarily impaired at December 31, 2015.

There were no changes in credit losses for the year ended December 31, 2015 and 2014 associated with investment
securities for which other-than-temporary impairment losses have been previously recognized in both earnings and
other comprehensive income.

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Note 3 | Loans

The composition of loans, net of unamortized loan origination fees of $642,000 and $139,000 at December 31, 2015
and 2014, respectively, are as follows:

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Note 4 | Allowance for Loan Losses

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; and
consumer. 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
n 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 $3,274,000 adequate to cover loan losses
inherent in the loan portfolio, as of and for the year ending December 31, 2015.

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Note 4 | Allowance for Loan Losses (continued)

Allowance for loan losses activity during 2015 is as follows:

The changes in the allowance for loan losses over the prior period related to the commercial portfolio increased
due to the significant increase in portfolio balances, a decrease in the loss history that influences the allocation of
provision and a significant decrease in adversely classified assets. The allowance for loan loss related to real estate -
owner occupied and real estate – commercial both increased over prior period due to the increase in their respective
portfolio balances. The change in allowance for loan losses related to real estate – non-owner occupied decreased due
to the decrease in loss history influencing provision and a decrease in adversely classified assets.

Allowance for loan losses activity during 2014 is as follows:

The changes in the allowance for loan losses related to real estate - residential non-owner occupied portfolio increased
from the previous period end due to an increase in the overall portfolio balance and an increase in the loss history
which influences the allocation of loan loss provision. The allowance for loan loss related to the commercial portfolio
increased slightly, which was the result of an increase in adversely classified assets offset by a decrease in the loss
history. The consumer segment of the allowance for loan loss decreased from the prior period due to a decline in the
portfolio balance and a reduction in the loss history.

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Note 4 | Allowance for Loan Losses (continued)

The following tables present, by portfolio segment, the allowance for loan losses broken down between loans
individually evaluated for impairment and loans collectively evaluated for impairment, as well as the recorded
investment in those loans:

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Note 4 | Allowance for Loan Losses (continued)

Credit Quality and Aging
The following tables represent credit exposures by internally assigned grades for the period end December 31, 2015
and 2014. 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 Doubtful – Loans classified as “Doubtful” have all the weaknesses inherent in a Substandard asset. In addition,
these weaknesses make collection or liquidation in full highly questionable and improbable, based on existing
circumstances.

n Loss – loans classified as a loss are considered uncollectible, or of such value that continuance as an asset is not

warranted.

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Note 4 | Allowance for Loan Losses (continued)

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 tables present performing and nonperforming loans based on payment activity for the period ended:

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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 an aging analysis of the recorded investment of past-due financing receivables, broken
down by segment and sub-segment, based on payment activity for the years ended December 31, 2015 and 2014.
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.

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Note 4 | Allowance for Loan Losses (continued)

At December 31, 2015, there were $93,000 of loans 90 days past due or greater still accruing interest. There were no
loans 90 days past due or greater still accruing interest at December 31, 2014.

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 $76,000 and $75,000 and
carrying amounts of $41,000 and $40,000 as of December 31, 2015 and 2014, 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 periods ended December 31, 2015 and 2014.

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Note 4 | Allowance for Loan Losses (continued)

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Loan Modifications
Situations may arise that would cause the Bank to grant a concession for other-than-temporary purpose to a borrower
experiencing financial difficulty 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.

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Note 4 | Allowance for Loan Losses (continued)

Loan modifications that are considered TDRs completed during the periods ended December 31, 2015 and 2014, are
as follows:

Modifications determined to be concessions granted by management were in the form of principal forgiveness,
extension of terms, and rate reductions.

Amounts within the allowance for loan losses allocated to TDR’s are $352,000 and $349,000 at December 31, 2015 and
2014, respectively. No loans modified and considered TDRs that were made during the 12 month period previous to
December 31, 2015 or 2014, have defaulted in the current reporting period.

Foreclosed Assets
Foreclosed assets acquired in settlement of loans are carried at fair value, less estimated costs to sell, and are included
in other assets on the Consolidated Balance Sheet. As of December 31, 2015 and 2014, included with other assets are
$1,179,000 and $1,071,000, respectively, of foreclosed assets. As of December 31, 2015 and 2014, included within the
foreclosed assets, is $302,000 and $132,000 of consumer residential mortgages that were foreclosed on, or received
via a deed in lieu transaction prior to the period end. As of December 31, 2015, the Company has initiated formal
foreclosure proceedings on $278,000 of consumer residential mortgages, which have not yet been transferred into
foreclosed assets.

Note 5 | Premises and Equipment

Ongoing additions to premises and equipment are recorded at cost. Occupancy and equipment expense includes
depreciation expense of $461,000 and $438,000 for the years ended December 31, 2015 and 2014, respectively.
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 were comprised of the following:

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Note 5 | Premises and Equipment (continued)

Lease expense amounted to $327,000 and $278,000 for the years ended December 31, 2015 and 2014, respectively.

Future minimum lease payments as of December 31, 2015 are as follows:

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Note 6 | Deposits

Centric’s deposits were comprised of the following:

Scheduled maturities of time deposits are as follows:

Time deposits in denominations of $250,000 or greater totaled $18,371,000 and $14,570,000 for December 31, 2015
and 2014, respectively.

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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:

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 89 days for the year ended December 31, 2015. The average maturity was two
days for the year ended December 31, 2014.

Note 8 | Long-Term Debt

As one avenue for funding growth, the Bank is approved by the FHLB for borrowings of up to $145,755,000 at
December 31, 2015. At year end, $18,202,000 was outstanding and $36,060,000 was held as letters of credit to secure
specific deposit balances, resulting in a remaining borrowing capacity for FHLB borrowings of $91,494,000.
On December 28, 2015, the Company issued $6,000,000 principal amount junior subordinated debenture due
December 28, 2025, to another financial institution. The debt bears interest at a fixed rate of 4.85 percent until
December 28, 2020, at which time the interest rate converts to a floating rate equal to Prime Rate plus one percent
with a floor of 4.25 percent. The Company maintains the ability to redeem the debenture on or after December 28,
2020.

The Company also has borrowings at another institution totaling $2,500,000, at a rate of 4.50 percent at December 31,
2015 and December 31, 2014, respectively.

The following table presents borrowings that mature at various dates through 2025 with weighted-average rates as
follows:

The aggregate amount of future principal payments required on these borrowing at December 31, 2015, is as follows:

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Note 9 | Stock Plans and 401 (K)

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, 2015 and 2014, expense attributable to the plan amounted to
$50,000 and $45,000, respectively. These expenses are 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, 2015 was 64,497.

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, 2015, and the activity that occurred during the year
consisted of the following:

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At December 31, 2015, the aggregate intrinsic value of all options and warrants, both outstanding and exercisable was
approximately $0. The weighted-average remaining life of both the outstanding and exercisable options and warrants
at December 31, 2015 is 4.12. No options were exercised during 2015 or 2014.

For the years ended December 31, 2015 and 2014, stock option compensation expense of $4,000 and $3,000 was
recognized in connection with the option plan, respectively. A tax benefit of $1,000 was recognized relative to these
stock options at both December 31, 2015 and 2014. As of December 31, 2015, there is no related future compensation
expense as all options are fully vested.

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, 2015, 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 2015 or 2014.

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Note 9 | Stock Plans and 401 (K) (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 the right
to purchase 31,500 shares for a total of 315,000 shares at December 31, 2015. These warrants would 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 and Chief
Executive Officer 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 2015 and 2014, no warrants vested and the Company recorded no compensation
expense associated with these grants.

The fair value of the options granted for the years ended December 31, 2015 and 2014, was calculated using the Black-
Scholes option pricing model with the following weighted-average assumptions:

No employee stock options were granted during 2015 or 2014.

Restricted Stock
At December 31, 2015, over the life of the Plan, the Company has awarded 25,688 of restricted shares to non-employee
directors and executive officers subject to vesting and other provisions. Shares granted to the Plan participants of 2,300
and 2,251 had vested and been distributed during December 31, 2015 and 2014, respectively.
The following table summarizes transactions regarding restricted stock under the Plan:

For the years ended December 31, 2015 and 2014, compensation expense of $8,000 and $14,000 was recognized in
connection with the vesting of restricted stock, respectively. Tax benefits of $3,000 and $5,000 were recognized relative
to these shares at December 31, 2015 and 2014, respectively. Future compensation expense related to non-vested
restricted stock at December 31, 2015 is $7,000, $4,000 and $1,000 in 2016, 2017 and 2018, respectively.

As of January 1, 2015 the Company approved and implemented an Employee Stock Purchase Plan. This plan is
intended to provide employees of Centric Financial Corporation and its subsidiary with an opportunity to acquire an
interest in the Company through the purchase of common stock. Under the plan, eligible employees may purchase
shares at fair market value, with no restrictions on the amount of shares they can purchase, up to a 5% ownership of
combined voting power or value of all classes of stock of the Company. The Company reserved 200,000 shares of its
common stock subject to adjustment of shares and price due to any recapitalization, reorganization, reclassification,
stock dividends, combination of shares, or similar event in which the number or kind of shares is changed. As of
December 31, 2015, 4,117 shares have been issued under this plan.

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Note 10 | Federal Income Taxes

The provision for income taxes consists of the following for the period ended:

The following temporary differences gave rise to the net deferred tax assets at December 31:

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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:

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 2012.

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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,
2015, loans to related parties were $13,165,000 and deposits by related parties totaled $5,409,000. At December 31,
2014, loans to related parties were $18,051,000 and deposits by related parties totaled $6,861,000.

Related-party loan activity is summarized as follows:

All of Centric’s directors are customers of the Bank. As of December 31, 2015, Centric’s shareholders number
approximately 322 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. For the years ended
December 31, 2015 and 2014, related-party transactions include $52,000 and $128,000 of purchases, respectively.

There was no revenue generated on related-party transactions for any of the periods listed.
The Company has employment agreements with three executive officers. The agreements include minimum annual
salary commitments. Upon termination, these individuals will receive monetary compensation as set forth in the
agreements.

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:

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Note 12 | Unfunded Credit Commitments (continued)

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 and are reviewed annually. 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.

Note 13 | Regulatory Matters

Effective January 1, 2015, the Company and the Bank became subject to the final rules issued by the Federal
Reserve and the OCC and subsequently adopted by the FDIC, establishing a new comprehensive capital frame work
for banking organizations. The new capital framework substantially revised the risk-based capital requirements
in comparison to the prior rules, which were in effect through December 31, 2014. The Basel III Capital Rules
introduced a new capital measure, “Common Equity Tier 1;” increased the minimum requirements for Tier 1 Capital
ratio as well as the minimum to be considered well capitalized under prompt corrective action; and introduce the
“capital conservation buffer,” which will be phased in over a four-year period. Failure to meet minimum capital
requirements can initiate certain mandatory—and possibly additional discretionary—actions by regulators that,
if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy
guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines
that involve quantitative measures of the Bank’s assets, liabilities, and certain off-balance-sheet items as calculated
under U.S. GAAP, regulatory reporting requirements, and regulatory capital standards. The Bank’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 regulatory capital standards to ensure capital adequacy require the Bank to
maintain minimum amounts and ratios (set forth in the following table) of total and Tier 1 capital to risk-weighted
assets, common equity Tier 1 capital to total risk-weighted assets, and of Tier 1 capital to average assets. Management
believes, as of December 31, 2015 and December 31, 2014, that the Bank met all capital adequacy requirements to
which it was subject.

As of December 31, 2015, the most recent notification from Federal Deposit Insurance Corporation categorized
the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well
capitalized the Bank must maintain minimum total risk-based capital, Tier 1 risk-based capital, common equity
Tier 1 risk-based capital, and Tier 1 leverage ratios as set forth in the table. There are no conditions or events since that
notification that management believes have changed the Bank’s category.

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Note 13 | Regulatory Matters (continued)

The Company and the Bank’s capital ratios as of December 31, 2015, under the new Basel III Capital Rules, and
December 31, 2014 under the previous U.S. risk based capital rules, are presented below:

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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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, 2015 and 2014, 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.

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Impaired Loans
The Company has measured impairment on impaired loans generally based on the fair value of the loan’s collateral.
Fair value is generally determined based upon independent third-party appraisals of the properties. In some
cases, management may adjust the appraised value due to the age of the appraisal, changes in market conditions,
or observable deterioration of the property since the appraisal was completed. Additionally, management makes
estimates about expected costs to sell the property which are also included in the net realizable value. If the fair value
of the collateral dependent loan is less than the carrying amount of the loan a specific reserve for the loan is made in

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Note 14 | Fair Value Measurements (continued)

the allowance for loan losses or a charge-off is taken to reduce the loan to the fair value of the collateral (less estimated
selling costs) and the loan is included in the table above as a level III measurement. If the fair value of the collateral
exceeds the carrying amount of the loan, then the loan is not included in the table above as it is not currently being
carried at its fair value. At December 31, 2015 and 2014, the fair values shown above exclude estimated selling costs of
$25,000 and $20,000.

Other Real Estate Owned
OREO is carried at the lower of cost or fair value, which is measured at the date foreclosure. If the fair value of the
collateral exceeds the carrying amount of the loan, no charge-off or adjustment is necessary, the loan is not considered
to be carried at fair value, and is therefore not included in the table above. If the fair value of the collateral is less than
the carrying amount of the loan, management will charge the loan down to its estimated realizable value. The fair
value of OREO is based on the appraised value of the property, which is generally unadjusted by management and is
based on comparable sales for similar properties in the same geographic region as the subject property, and is included
in the above table as a Level II measurement. In some cases, management may adjust the appraised value due to the
age of the appraisal, changes in market conditions, or observable deterioration of the property since the appraisal was
completed. In these cases, the loans are categorized in the above table as level III measurement since these adjustments
are considered to be unobservable inputs. Income and expenses from operations and further declines in the fair value
of the collateral subsequent to foreclosure are included in net expenses from OREO. For the years ended December
31, 2015 and 2014, write-downs of two and five OREO properties, respectively, were required and therefore are
considered to be carried at fair value.

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, 2015 and 2014.

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Note 15 | Fair Value of Financial Instruments

The fair value of the Company’s financial instruments is as follows:

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Note 15 | Fair Value of Financial Instruments (continued)

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.

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. Fair value for certain held-to-
maturity securities were determined utilizing discounted cash flow models, due to the absence of a current market to
provide reliable market quotes for the instruments.

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.

Loans Held for Sale
Loans held for sale are individual loans for which the Company has a firm sales commitment; therefore, the carrying
value is a reasonable estimate of the 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.

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Note 15 | Fair Value of Financial Instruments (continued)

Deposits and Long-Term Debt
The fair values of certificates of deposits and long-term debt 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.

Note 16 | Participation in U.S. Treasury Programs

Centric participated 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 2015 and 2014, 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. Centric, with approval from its
regulators, repaid the U.S. Treasury for the full amount of SBLF funds and final dividend on December 31, 2015.

Note 17 | Stock Offerings

On July 17, 2014, the Company began a private placement offering to “accredited investors” (as defined in Regulation
D promulgated under the Securities Act of 1922, as amended) offering up to 1,600,000 shares of common stock at a
purchase price of $5.00 per share. For the year ended December 31, 2014 the Company issued a total of 682,774 shares
and an offering price of $5.00 per share resulting in total proceeds of $3,414,000 in additional capital at December
31, 2014. The direct costs of the offering through December 31, 2014 totaled $36,000, which were netted against the
proceeds received during the year resulting in net proceeds of $3,378,000.

The offering was subsequently closed on January 30, 2015. For the duration of the offering, the Company issued a
total of 1,009,191 shares and received total proceeds of $5,046,000. Total direct expenses of the offering were $81,000,
which were netted against the proceeds.

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Note 17 | Stock Offerings (continued)

On October 9, 2015, the Company commenced a private placement offering to “accredited investors” (as defined
in Regulation D promulgated under the Securities Act of 1922, as amended) offering up to $10,000,000 worth of
common stock at a purchase price of $5.25 per share. Authorization was given by the Board to sell an additional
$2,000,000 of common stock at the same price of $5.25 per share. The private placement offering for 2015 was fully
subscribed at 2,285,715 shares at the offering price of $5.25 per share, resulting in total proceeds of $12,000,000 at
the close of the offering on November 20, 2015. The direct costs of the offering through December 31, 2015 totaled
$685,000, resulting in net proceeds of $11,315,000.

Note 18 | Subsequent Events

Management has reviewed events occurring through February 26, 2016, the date the financial statements were issued,
and no subsequent events have occurred requiring accrual or disclosure.

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Bo ARD oF DiREC toRS

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Donald E. Enders, Jr.
Chairman of the Board
President, Colonial Park
Realty Company
Enders Insurance Associates

John A. Maher, CPA
Vice Chairman of the Board
Member, Pennsylvania House of
Representatives

Patricia A. Husic
President & CEO
Centric Financial Corporation
and Centric Bank

Kerry A. Pae
Secretary for Centric Financial Corporation
President & Owner
Kerry Pae Auctioneers, Inc.

Frank A. Conte, CLU, ChFC
Managing Partner
Conte Wealth Advisors, LLC

Steven P. Dayton
Business Development
RVG Management & Development
Company

Fred M. Essis
President & CEO
Essis & Sons Carpet One

Thomas H. Flowers, CPA
Flowers & Flowers, CPAs

Ambrish K. Gupta, MD, FACP
President
Medical Associates of
Northern Virginia

Jeffrey W. Keiser, DDS
Partner & President
Forest Hills Dental Associates

Not pictured:

Robert V. Gothier, Sr.
Director Emeritus
CEO, RVG Management &
Development Company

SENioR lEADERShiP tEAM

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Patricia A. Husic
President & CEO

Jeffrey W. Myers, EVP
Chief Lending Officer

Sandra J. Schultz, EVP
Chief Financial Officer

Terrence M. Monteverde, EVP
Chief Credit Officer

Leslie A. Meck, SVP
Chief Retail Officer

Shane E. McNaughton, SVP
Management Information Systems

Michelle L. Carrasquillo, SPHR, SCP, VP
Human Resources Manager

Paul B. Zwally, SVP
Senior Commercial Lending Officer

Donald J. Bonafede, SVP
Senior Commercial Lending Officer

Michele E. Light, SVP
Market Leader

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BRANCh MANAGEMENt AND lENDiNG tEAMS

Br a n cH M a n a G E M En t tEa M

Mo r t Ga G E lEnDi nG tEa M

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n Joseph M. Rebarchak, VP

Lower Paxton Financial Center Manager
Derry Township Financial Center Manager

n Mary Anne E. Bayer, VP

Silver Spring Financial Center Manager

n Vickie L. Broughton, VP

Camp Hill Financial Center Manager

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tEa M

n tEa M lEaD Er s

n Donald J. Bonafede, SVP

Senior Commercial Lending Officer

n Michele E. Light, SVP
Market Leader

n Paul B. Zwally, SVP

Senior Commercial Lending Officer

n c oM M Er c i a l lEnD Er s

n Tania J. Fleming, SVP

Commercial Lending Officer

n Christopher E. McDermott, SVP

Commercial Lending Officer

n Michael J. Watson, SVP

Commercial Lending Officer

n Andrea R. Ahern, VP

Commercial Lending Officer

n Cheryl C. Sakalosky, VP

Commercial Lending Officer

n Cory G. Bishop, AVP

SBA and Commercial Lending Officer

n Gary M. Kline, AVP

Government Services Banking

n Gethan K. Wilson, VP

Mortgage Department Team Leader

n Jody L. Hatt

Mortgage Lending Officer

Access your Centric
account 24/7 with our
Mobile Banking app!

n Verify Transactions & Balances
n Transfer Funds
n Pay Your Bills
n View Account Alerts
n Deposit Checks Remotely
n Temporarily Suspend or Permanently

Cancel Your Debit Card

* 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.

iNVEStoR REl AtioNS

Common Stock transactions

REGiStRAR AND tRANSFER AGENt

Centric Financial Corporation’s Common Stock
is traded for investors as OTC Pink: CFCX. Centric
Financial Corporation uses the following registered
market makers for their Common Stock.

Centric Bank
4320 Linglestown Road
Harrisburg, PA 17112
(717) 657-7727

n Boenning & Scattergood, Inc.

4 Tower Bridge
200 Barr Harbor Drive, Suite 300
West Conshohocken, PA 19428

n Wedbush Securities, Inc.

One SW Columbia Street, Suite 1000
Portland, OR 97258

n Monroe Financial Partners, Inc.

100 North Riverside Plaza, Suite 1620
Chicago, IL 60606

c oM M Un i t

Y M a t t e rS .

c e n t r i c f i n a n c i a l c o r p o r a t i o n

CENtRiC BANK FiNANCiAl CENtERS

U
n

CAMP hill FiNANCiAl CENtER

SilVER SPRiNG FiNANCiAl CENtER

1625 Market Street
Camp Hill, PA 17011
(717) 730-2816
Fax (717) 730-2813

lobby & Drive-thru hours
M-th 8:30 a.m. to 5:00 p.m.
F 8:30 a.m. to 6:00 p.m.
Sat 8:30 a.m. to 12 noon

6480 Carlisle Pike
lobby & Drive-thru hours
Mechanicsburg, PA 17050 M-th 8:30 a.m. to 5:00 p.m.
(717) 591-1360
Fax (717) 591-1363

F 8:30 a.m. to 6:00 p.m.
Sat 8:30 a.m. to 12 noon

loWER PAXtoN FiNANCiAl CENtER

DERRy toWNShiP FiNANCiAl CENtER

4320 Linglestown Road
Harrisburg, PA 17112
(717) 657-7727
Fax (717) 657-5036

lobby & Drive-thru hours
M-th 8:30 a.m. to 5:00 p.m.
F 8:30 a.m. to 6:00 p.m.
Sat 8:30 a.m. to 12 noon

1201 West Governor Road
Hummelstown, PA 17036
(717) 533-7626
Fax (717) 533-7670

lobby & Drive-thru hours
M-th 8:30 a.m. to 5:00 p.m.
F 8:30 a.m. to 6:00 p.m.
Sat 8:30 a.m. to 12 noon

SUBURBAN Phil ADElPhiA oFFiCE

2003 S. Easton Road, Suite 205
Doylestown, PA 18901
(267) 880-4250
Fax (215) 489-2705

office hours
M-F 8:30 a.m. to 5:00 p.m.

Our missiOn

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.

Our visiOn

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 values

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.

To have audience with a financial institution, to

develop personal relationships with the people

who are guiding small business owners through the

lending process, to be greeted by name when you

connect with us—this is what Community Matters

means to Centric Bank.

Celebrating a significant growth year, our balance

sheets reveal a story of health and well-being for

small businesses. Equally important to financial

sustainability and critical to shareholder ROI

are the intangible assets—a sterling reputation,

loyal customers, dedicated employees, a spirit

of volunteerism, and a passion for social media

engagement. The stories of 2015 made our bank

stronger and more competitive. Let’s continue

growing our communities together!

4320 Linglestown Road, Harrisburg, PA 17112
T (717) 657-7727 | F (717) 657-7748