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CST: 20/08/2019 07:43:35   

Century Next Financial Corporation Reports 1st Quarter 2019 Results and Declares Cash Dividend

97 Days ago

RUSTON, La., May 14, 2019 (GLOBE NEWSWIRE) -- Century Next Financial Corporation (OTCQX:CTUY), the holding company of Century Next Bank with $475.6 million in assets, today announced financial results for the 1st quarter ended March 31, 2019.

Financial Performance

For the three months ended March 31, 2019, Century Next Financial Corporation (the “Company”) had net income after tax of $1.2 million compared to net income of $824,000 for the three months ended March 31, 2018, an increase of $375,000 or 45.5%.  Earnings per share (EPS) for the three months ended March 31, 2019 were $0.74 per basic share and $0.73 per diluted share compared to $0.71 per basic share and $0.69 diluted share reported for the three months ended March 31, 2018.

Balance Sheet

Overall, total assets increased by $13.5 million or 2.9% to $475.6 million at March 31, 2019 compared to $462.1 million at December 31, 2018. 

The largest component of assets, loans, net of deferred fees and costs and the allowance for loan losses, increased $8.4 million or 2.24% for the three months ended March 31, 2019 compared to December 31, 2018.  Total net loans at March 31, 2019 were $383.7 million compared to $375.3 million at December 31, 2018.  Growth was achieved in commercial, non-real estate loans of $5.6 million, loans secured by real estate including 1-4 family residential of $3.3 million, commercial of $1.5 million, land of $1.2 million, and agricultural of $81,000.  These increases were offset by decreases in consumer loans of $1.2 million, residential construction of $863,000, 1-4 family residential held-for-sale of $585,000, home equity lines of credit of $314,000, multi-family of $79,000, and agricultural, non-real estate loans of $4,000.

Total deposits at March 31, 2019 increased $12.7 million or 3.3% to $396.0 million compared to $383.3 million at December 31, 2018.  Growth occurred in money market deposits of $8.9 million, interest-bearing checking of $4.3 million, and noninterest-bearing checking of $1.4 million.  The increases were offset by decreases in time deposits of $1.7 million, and savings deposits of $196,000.

There were short-term borrowings, consisting of FHLB advances, of $22 million at both March 31, 2019 and December 31, 2018.

Long-term borrowings, consisting of primarily of subordinated debt, increased by $73,000 to $8.61 million at March 31, 2019 compared to $8.54 million at December 31, 2018.

Income Statement

Net interest income was $4.74 million for the three months ended March 31, 2019 compared to $2.79 million for the three months ended March 31, 2018.  This was an increase of $1.95 million, or 70.2%.  The increase for the year-over-year comparative quarters was primarily from the increase in interest income on loans due to the business combination with Ashley Bancstock Company effective in November of 2018.

The provision for loan losses amounted to $237,000 for the three months ended March 31, 2019, compared to $195,000 in provision for the three months ended March 31, 2018.  The increase in loan loss provision for the quarter, as compared to the prior year quarter, is not a result of increased loss activity but more appropriately a result of increased risk awareness and identification to strengthen the allowance for loan losses.

Total non-interest income amounted to $834,000 for the three months ended March 31, 2019 compared to $370,000 for the three months ended March 31, 2018, an increase of $464,000 or 125.4%.  The increase for the year-over-year comparative quarters consisted of increases in service charges on deposits of $232,000, other income of $216,000, and income from mortgage loan activity of $16,000.  The overall increases were primarily the result of an increased customer base of deposits and income from bank-owned life insurance policies acquired in the business combination completed in November 2018.

Total non-interest expense increased by $1.92 million or 98.3% to $3.88 million for the quarter ended March 31, 2019 compared to $1.96 million for the quarter ended  March 31, 2018.  The increase in overall expense was due primarily to increases in expenses of salaries and benefits of $879,000, data processing of $317,000, occupancy and equipment of $144,000, and other operating expenses combined of $585,000.  These increases were primarily due to the additional normal operating and merger-related expenses from the business combination completed in November 2018.  The Company efficiency ratio, a measure of expense as a percent of total income, was 69.1% for the quarter ended March 31, 2019 compared to 62.1% for the quarter ended March 31, 2018.  The increase in merger-related expenses contributed to the increase in operating expenses resulting in a higher efficiency ratio.

Other Financial Information

Nonperforming assets, including loans past due 90 days or more, nonaccrual loans, and other foreclosed assets, increased from $1.98 million at December 31, 2018 to $2.37 million at March 31, 2019.  Total non-performing assets as a percentage of total assets were 0.50% at March 31, 2019 compared to 0.43% at December 31, 2018.  Allowance for loan losses were $2.76 million or 0.71% of total loans at March 31, 2019 compared to $2.57 million or 0.68% of total loans at December 31, 2018.  Net charge-offs for the three months ended March 31, 2019 were $41,000 compared to no net charge-offs for the three months ended March 31, 2018.  The ratios of net charge-offs to average loans outstanding were 0.01% at March 31, 2019 compared to 0.07% at December 31, 2018 and 0.00% at March 31, 2018.

Dividend Declaration

The Board of Directors has approved a cash dividend of $0.23 per share payable on June 12, 2019 to shareholders of record as of May 29, 2019.

Additional Information

Century Next Financial Corporation is the holding company for Century Next Bank (the “Bank”) which conducts business from its main office in Ruston, Louisiana and five full-service branch offices.  The Company was formed in 2010 and is subject to the regulatory oversight of the Board of Governors of the Federal Reserve System. The Bank is a wholly-owned subsidiary and is an insured federally-chartered stock savings association subject to the regulatory oversight of the Office of the Comptroller of the Currency.  The Bank was established in 1905 and is headquartered in Ruston, Louisiana.  The Bank is a full-service bank with three locations in Louisiana including two banking offices in Ruston and one banking office in Monroe, and four locations in Arkansas including two banking offices in Crossett, one banking office in Hamburg, and one drive-through location in Fountain Hill.  The Bank emphasizes professional and personal banking service directed primarily to small and medium-sized businesses, professionals, and individuals.  The Bank provides a full range of banking services including its primary business of real estate lending to residential and commercial customers.

Statements contained in this news release which are not historical facts may be forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995.  Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts.  They often include words like “believe,” “expect,” “anticipate,” “estimate,” and “intend” or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.”  We undertake no obligation to update any forward-looking statements.

Century Next Financial Corporation and Subsidiary
Condensed Consolidated Balance Sheets (unaudited)

(In thousands, except per share data)

       
  March 31, 2019   December 31, 2018
       
ASSETS      
       
Cash and cash equivalents $   59,060   $   54,454
Investment securities     2,945       2,958
Loans, net     383,740       375,342
Other assets     29,907       29,374
TOTAL ASSETS $   475,652   $   462,128
   
LIABILITIES AND STOCKHOLDERS' EQUITY  
       
Deposits $   395,978   $   383,320
Short-term borrowings     22,000       22,000
Long-term borrowings      8,615       8,542
Other liabilities     2,912       3,415
Total Liabilities     429,505       417,277
Stockholders' equity     46,147       44,851
       
       
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $   475,652   $   462,128
Book Value per share $   27.79   $   27.09
       


 

Century Next Financial Corporation and Subsidiary
Consolidated Statements of Income (unaudited)

(In thousands, except per share data)

       
  2019   2018
       
Interest Income $  6,077   $  3,383
Interest Expense   1,340     599
Net Interest Income   4,737     2,784
Provision for Loan Losses   237     195
Net interest income after provision for loan losses   4,500     2,589
Noninterest Income   834     370
Noninterest Expense   3,884     1,959
Income Before Taxes   1,450     1,000
Provision For Income Taxes   251     176
NET INCOME $  1,199   $  824
       
EARNINGS PER SHARE      
Basic $  0.74   $  0.71
Diluted $  0.73   $  0.69
       


Century Next Financial Corporation Contact Information:

William D. Hogan, President & Chief Executive Officer or
Mark A. Taylor, CPA CGMA, Executive Vice President & Chief Financial Officer
(318) 255-3733

Company Website: www.cnext.bank

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