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Century Next Financial Corporation Reports 2nd Quarter 2019 Results

RUSTON, La., July 31, 2019 (GLOBE NEWSWIRE) -- Century Next Financial Corporation (CTUY), the holding company of Century Next Bank with $483.4 million in assets, today announced financial results for the 2nd quarter ended June 30, 2019.

Financial Performance

For the three months ended June 30, 2019, Century Next Financial Corporation (the “Company”) had net income after tax of $1.18 million compared to net income of $831,000 for the three months ended June 30, 2018, an increase of $347,000 or 41.8%.  Earnings per share (EPS) for the three months ended June 30, 2018 were $0.73 per basic share and $0.71 per diluted share compared to $0.72 per basic share and $0.69 per diluted share reported for the three months ended June 30, 2018. 

For the six months ended June 30, 2019, net income was $2.38 million compared to net income of $1.66 million for the six months ended June 30, 2018, an increase of $722,000 or 43.6%.  Earnings per share (EPS) for the six months ended June 30, 2019 were $1.47 and $1.44 per basic share and diluted share, respectively, compared to $1.43 and $1.38 per basic and diluted share, respectively, reported for the same period in 2018.

Balance Sheet

Overall, total assets increased by $21.2 million or 4.6% to $483.4 million at June 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 $21.7 million or 5.8% for the six months ended June 30, 2019 compared to December 31, 2018.  Total net loans at June 30, 2019 were $397 million compared to $375.3 million at December 31, 2018. There were increases in commercial real estate loans of $11.5 million, commercial, non-real estate loans of $7.3 million, loans secured by real estate including 1-4 family residential of $5.2 million, multi-family of $1.6 million, agricultural of $529,000, residential construction of $212,000, 1-4 family residential held-for-sale of $137,000, and agricultural, non-real estate loans of $18,000.  These increases were offset by decreases in land loans of $2.7 million, consumer loans of $1.2 million, and home equity lines of credit of $699,000.     

Total deposits at June 30, 2019 increased $19.3 million or 5.0% to $402.6 million compared to $383.3 million at December 31, 2018.  Money market, time, and interest-bearing deposits were the main growth areas contributing to the increase in overall deposits. 

Short-term borrowings, consisting of FHLB advances, were $22.0 million at June 30, 2019 and December 31, 2018. 

Long-term borrowings, consisting primarily of subordinated debt, increased by $51,000 to $8.59 million at June 30, 2019 compared to $8.54 million at December 31, 2018.

Income Statement

Net interest income was $4.89 million for the three months ended June 30, 2019 compared to $2.90 million for the three months ended June 30, 2018.  This was an increase of $1.99 million, or 68.6%.  For the six months ended June 30, 2019, net interest income was $9.63 million compared to $5.68 million for the six months ended June 30, 2018.  This was an increase of $3.94 million, or 69.4%.  The increases for the three- and six-month periods were primarily from interest income earned on loans.

The provision for loan losses amounted to $237,000 for the three months ended June 30, 2019, compared to $180,000 in provision for the three months ended June 30, 2018.  For the six months ended June 30, 2019, provision for loan losses was $474,000 compared to $375,000 for the same period in 2018.  The increase in loan loss provision for the three- and six-month periods, as compared to the same periods in the prior year, is not a result of increased loss activity but more attributable to increased risk awareness and identification to strengthen the allowance for loan losses.  

Total non-interest income amounted to $849,000 for the three months ended June 30, 2019 compared to $402,000 for the three months ended June 30, 2018, an increase of $447,000 or 111.19%.  For the six months ended June 30, 2019, non-interest income was $1.68 million compared to $772,000 for the same period in 2018, an increase of $911,000 or 118.0%.  The increases for the three- and six-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 $1.94 million or 92.73% to $4.03 million for the quarter ended June 30, 2019 compared to $2.09 million for the quarter ended  June 30, 2018.  For the six months ended June 30, 2019, non-interest expense was $7.92 million compared to $4.05 million  for the same period in 2018, an increase of $3.87 or 95.4%.  The majority of the increases for both the three- and six-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 70.27% for the three months ended June 30, 2019 compared to 63.36% for the quarter ended June 30, 2018.  For the six months ended June 30, 2019, the efficiency ratio was 70.00% compared to 62.75% for the same six-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 $2.08 million at June 30, 2019.  Total non-performing assets as a percentage of total assets were 0.43%  at June 30, 2019 compared to 0.43% at December 31, 2018.  Allowance for loan losses were $2.99 million or 0.75% of total loans at June 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 June 30, 2019 were $47,000 compared to $15,000 of net charge-offs for the year-to-date period ended June 30, 2018.  The ratios of net charge-offs to average loans outstanding were 0.01% at June 30, 2019 compared to 0.01% at June 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 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)

  June 30, 2019   December 31, 2018
       
ASSETS      
       
Cash and cash equivalents $   52,934   $   54,454
Investment securities     2,937       2,958
Loans, net     397,000       375,342
Other assets     30,482       29,374
TOTAL ASSETS $   483,353   $   462,128
           
LIABILITIES AND STOCKHOLDERS' EQUITY    
       
Deposits $   402,648   $   383,320
Short-term borrowings     22,000       22,000
Long-term borrowings     8,593       8,542
Other liabilities     3,107       3,415
Total Liabilities     436,348       417,277
Stockholders' equity     47,005       44,851
       
       
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $   483,353   $   462,128
Book Value per share $   28.28   $   27.09
       

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

(In thousands, except per share data)

  Three Months Ended June 30   Six Months Ended June 30 
    2019     2018     2019     2018
               
Interest Income $ 6,371   $ 3,611   $   12,448   $   6,994
Interest Expense   1,482     711     2,822     1,310
Net Interest Income   4,889     2,900     9,626     5,684
Provision for Loan Losses   237     180     474     375
Net interest income after provision for loan losses   4,652     2,720     9,152     5,309
Noninterest Income   849     402     1,683     772
Noninterest Expense   4,032     2,092     7,916     4,051
Income Before Taxes   1,469     1,030     2,919     2,030
Provision For Income Taxes   291     199     542     375
NET INCOME $   1,178   $   831   $   2,377   $   1,655
               
EARNINGS PER SHARE              
Basic $   0.73   $   0.72   $   1.47   $   1.43
Diluted $   0.71   $   0.69   $   1.44   $   1.38
               

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