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CST: 06/12/2019 16:39:25   

Century Next Financial Corporation Reports 3rd Quarter 2019 Results

45 Days ago

RUSTON, La., Oct. 22, 2019 (GLOBE NEWSWIRE) -- Century Next Financial Corporation (OTCQX:CTUY), the holding company of Century Next Bank with $490.2 million in assets, today announced financial results for the 3rd quarter ended September 30, 2019.

Financial Performance

For the three months ended September 30, 2019, Century Next Financial Corporation (the “Company”) had net income after tax of $1.83 million compared to net income of $835,000 for the three months ended September 30, 2018, an increase of $998,000 or 119.5%.  Earnings per share (EPS) for the three months ended September 30, 2019 were $1.13 per basic share and $1.11 per diluted share compared to $0.79 per basic share and $0.76 per diluted share reported for the three months ended September 30, 2018. 

For the nine months ended September 30, 2019, net income was $4.21 million compared to net income of $2.49 million for the nine months ended September 30, 2018, an increase of $1.72 million or 69.1%.  Earnings per share (EPS) for the nine months ended September 30, 2019 were $2.60 and $2.55 per basic share and diluted share, respectively, compared to $2.36 and $2.28 per basic and diluted share, respectively, reported for the nine months ended September 30, 2018.

Balance Sheet

Overall, total assets increased by $28.1 million or 6.1% to $490.2 million at September 30, 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 $23.7 million or 6.3% for the nine months ended September 30, 2019 compared to December 31, 2018.  Total net loans at September 30, 2019 were $399.0 million compared to $375.3 million at December 31, 2018. There were increases in commercial real estate loans of $17.3 million, multi-family of $6.5 million, consumer loans of $4.8 million, loans secured by real estate including 1-4 family residential of $4.2 million, 1-4 family residential held-for-sale of $228,000, land loans of $131,000,  and agricultural, non-real estate loans of $18,000.  These increases were offset by decreases in commercial non-real estate loans of $3.7 million, agricultural of $2.5 million, residential construction of $1.5 million,  and home equity lines of credit of $1.4 million.     

Total deposits at September 30, 2019 increased $32.2 million or 8.4% to $415.5 million compared to $383.3 million at December 31, 2018.  There were increases in money market deposits of $21.9 million, interest bearing deposits of $9.7 million and time deposits of $9.5 millions.  These increases were offset by decreases in noninterest bearing deposits of $6.5 million and savings of $2.4 million.

Short-term borrowings, consisting of FHLB short-term advances, at September 30, 2019 decreased $14.0 million or 63.6% to $8.0 million compared to $22.0 million at December 31, 2018.

Long-term borrowings, consisting primarily of subordinated debt and FHLB long-term advances, increased by $6.0 million to $14.6 million at September 30, 2019 compared to $8.54 million at December 31, 2018.

Income Statement

Net interest income was $5.03 million for the three months ended September 30, 2019 compared to $2.94 million for the three months ended September 30, 2018.  This was an increase of $2.10 million, or 71.0%.  For the nine months ended September 30, 2019, net interest income was $14.66 million compared to $8.63 million for the nine months ended September 30, 2018.  This was an increase of $6.03 million, or 69.9%.  The increases for the three- and nine-month periods were primarily from interest income earned on loans and the effect of net interest income included in 2019 from the business combination in November of 2018.

The provision for loan losses amounted to $317,000 for the three months ended September 30, 2019, compared to $180,000 in provision for the three months ended September 30, 2018.  For the nine months ended September 30, 2019, provision for loan losses was $791,000 compared to $555,000 for the same period in 2018.  The increase in loan loss provision for the three- and nine-month periods, as compared to the same periods in the prior year, are a result of the quarterly calculation of the allowance for loan and lease losses.  

Total non-interest income amounted to $1.29 million for the three months ended September 30, 2019 compared to $444,000 for the three months ended September 30, 2018, an increase of $845,000 or 190.3%.  For the nine months ended September 30, 2019, non-interest income was $2.97 million compared to $1.22 million for the same period in 2018, an increase of $1.76 million or 144.4%.  The increases for the three- and nine-month periods 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 $1.50 million or 69.4% to $3.67 million for the quarter ended September 30, 2019 compared to $2.16 million for the quarter ended  September 30, 2018.  For the nine months ended September 30, 2019, non-interest expense was $11.58 million compared to $6.21 million  for the same period in 2018, an increase of $5.37 or 86.4%.  The majority of the increases for both the three- and nine-month periods were primarily due to the additional normal operating and merger-related expenses from the business combination completed in November 2018 and a writedown of $193,000 of other real estate owned recorded in the 2nd quarter ended June 30, 2019.  The Company’s efficiency ratio, a measure of expense as a percent of total income, was 57.98% for the three months ended September 30, 2019 compared to 63.88% for the quarter ended September 30, 2018.  For the nine months ended September 30, 2019, the efficiency ratio was 65.69% compared to 63.14% for the same nine-month period in 2018.

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 $2.22 million at September 30, 2019.  Total non-performing assets as a percentage of total assets were 0.45%  at September 30, 2019 compared to 0.43% at December 31, 2018.  Allowance for loan losses were $3.12 million or 0.78% of total loans at September 30, 2019 compared to $2.57 million or 0.68% of total loans at December 31, 2018.  Net charge-offs for the year-to-date period ended September 30, 2019 were $240,000 compared to $144,000 of net charge-offs for the year-to-date period ended September 30, 2018.  The ratios of net charge-offs to average loans outstanding were 0.06% at September 30, 2019 compared to 0.06% at September 30, 2018.

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 covered 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)

  September 30, 2019   December 31, 2018
       
ASSETS      
       
Cash and cash equivalents $ 57,898   $ 54,454
Investment securities   2,939     2,958
Loans, net   398,994     375,342
Other assets   30,416     29,374
TOTAL ASSETS $ 490,247   $ 462,128
       
LIABILITIES AND STOCKHOLDERS' EQUITY      
       
Deposits $ 415,541   $ 383,320
Short-term borrowings   8,000     22,000
Long-term borrowings   14,571     8,542
Other liabilities   3,339     3,415
Total Liabilities   441,451     417,277
Stockholders' equity   48,796     44,851
       
       
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 490,247   $ 462,128
Book Value per share $ 29.37   $ 27.09
       

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

(In thousands, except per share data)

               
  Three Months Ended September 30   Nine Months Ended September 30
  2019   2018   2019   2018
               
Interest Income $ 6,601   $ 3,816   $ 19,049   $ 10,810
Interest Expense   1,569     874     4,391     2,184
Net Interest Income   5,032     2,942     14,658     8,626
Provision for Loan Losses   317     180     791     555
Net interest income after provision for loan losses   4,715     2,762     13,867     8,071
Noninterest Income   1,289     444     2,972     1,216
Noninterest Expense   3,665     2,163     11,581     6,214
Income Before Taxes   2,339     1,043     5,258     3,073
Provision For Income Taxes   506     208     1,048     583
NET INCOME $ 1,833   $ 835   $ 4,210   $ 2,490
               
               
EARNINGS PER SHARE              
Basic $ 1.13   $ 0.79   $ 2.60   $ 2.36
Diluted $ 1.11   $ 0.76   $ 2.55   $ 2.28
               

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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