Century Next Financial Corporation Reports 3rd Quarter 2021 Results

·9 min read

RUSTON, La., Oct. 27, 2021 (GLOBE NEWSWIRE) -- Century Next Financial Corporation (the “Company”) (OTCQX: CTUY), the holding company of Century Next Bank, with $541.0 million in assets, today announced financial results for the 3rd quarter ended September 30, 2021.

Financial Performance

For the three months ended September 30, 2021, the Company had net income after tax of $1.67 million compared to net income of $1.19 million for the three months ended September 30, 2020, a increase of $485,000 or 40.9%. Earnings per share (EPS) for the three months ended September 30, 2021 were $0.95 per basic and diluted share compared to $0.69 per basic and $0.68 per diluted share reported for the three months ended September 30, 2020.

For the nine months ended September 30, 2021, Century Next Financial Corporation (the “Company”) had net income after tax of $3.11 million compared to net income of $3.71 million for the nine months ended September 30, 2020, a decrease of $598,000 or 16.1%. Earnings per share (EPS) for the nine months ended September 30, 2021 were $1.78 per basic and diluted share compared to $2.16 per basic and $2.13 per diluted share reported for the nine months ended September 30, 2020.

The increase in net income for the three months ended September 30, 2021 as compared to the same three-month period in 2020 was primarily due to a $347,000 or 5.9% year over year increased interest income and fees for loans and a reduction of interest expense of $256,000 or 29.9% year over year.

The decrease in earnings per share for the year-to-date period in 2021 as compared to the same period in 2020 was due to a one-time addition of $1.42 million to the allowance for loan and lease losses (ALLL) reserve recorded in the 2nd quarter of 2021. However, earnings improvement in the 3rd quarter of 2021 helped to lower the decrease for the year-to-date period through the end of the 2nd quarter of 2021 of $1.08 million as compared to the same period in 2020 to a $598,000 decrease as reported above for the year-to-date period through the 3rd quarter of 2021.

Balance Sheet

Overall, total assets increased by $25.9 million or 5.0% to $541.0 million at September 30, 2021 compared to $515.1 million at December 31, 2020.

The largest component of assets, loans, net of deferred fees and costs and the allowance for loan losses, including loans held for sale, increased $29.2 million or 6.95% for the nine months ended September 30, 2021 compared to December 31, 2020. Total net loans at September 30, 2021 were $449.6 million compared to $420.4 million at December 31, 2020.

Total deposits at September 30, 2021 increased $22.4 million or 5.1% to $463.5 million compared to $441.1 million at December 31, 2020.

Total long-term borrowings remained the same at $14.45 million at September 30, 2021 and December 31, 2020.

Income Statement

Net interest income was $5.7 million for the three months ended September 30, 2021 compared to $5.1 million for the three months ended September 30, 2020. This was an increase of $619,000, or 12.2%. The increase in net interest income for the three-month period, as compared to the same period in 2020, was primarily from an increase in interest income on loans and other earning assets of $363,000 and a decrease in interest expense on deposits and borrowings of $256,000.

For the nine months ended September 30, 2021, net interest income was $16.4 million compared to $15.3 million for the nine months ended September 30, 2020. This was an increase of $1.1 million, or 7.3%. The increase in net interest income for the nine-month period was primarily from a decrease in interest expense on deposits and borrowings.

The provision for loan losses amounted to $202,000 for the three months ended September 30, 2021, compared to $362,000 for the three months ended September 30, 2020. For the nine months ended September 30, 2021, provision for loan losses amounted to $2.0 million compared to $1.1 million for the nine months ended September 30, 2020. The increase in provision for the nine-month periods reflect the one-time addition to the ALLL as mentioned under the Financial Performance section.

Total non-interest income amounted to $936,000 for the three months ended September 30, 2021 compared to $962,000 for the three months ended September 30, 2020, a decrease of $26,000 or 2.7%. For the nine months ended September 30, 2021, total non-interest income amounted to $2.83 million compared to $2.98 million for the nine months ended September 30, 2020, a decrease of $148,000 or 5.0%. The decreases for the three- and nine-month periods ended September 30, 2021 was primarily due to decreased loan servicing release fees from the held-for-sale loan activity.

Total non-interest expense increased by $137,000 or 3.3% to $4.33 million for the three months ended September 30, 2021 compared to $4.19 million for the three months ended September 30, 2020. For the nine months ended September 30, 2021, total non-interest expense increased by $633,000 or 5.1% to $13.04 million compared to $12.41 million for the nine months ended September 30, 2020. The increase in both the three- and nine-month periods ending September 30, 2021 was primarily due to increases in salaries and benefits and other operating expense as compared to the same periods in 2020.

The Company’s efficiency ratio, a measure of expense as a percent of total income, decreased to 65.28% for the three months ended September 30, 2021 compared to 69.43% for the three months ended September 30, 2020. For the nine months ended September 30, 2021, the efficiency ratio decreased to 67.88% compared to 68.00% for the nine months ended September 30, 2020.

Other Financial Information

Nonperforming assets, including loans past due 90 days or more, nonaccrual loans, and other foreclosed assets, decreased from $4.72 million at December 31, 2020 to $2.15 million at September 30, 2021, a decrease of $2.57 million. Total non-performing assets were 0.40% and 0.92% of totals assets as of September 30, 2021 and December 31, 2020, respectively. This reflects a noted improvement in nonperforming assets year to date in 2021.

Allowance for loan losses was $4.88 million or 1.07% of total loans at September 30, 2021 compared to $4.55 million or 1.07% of total loans at December 31, 2020. Net recovery for the three-month period ended September 30, 2021 was $91,000, compared to the net recovery of $220,000 for the three-month period ended September 30, 2020. Net charge-off for the nine-month period ended September 30, 2021 was $1.69 million, compared to net charge-off of $141,000 for the nine-month period ended September 30, 2020. The ratios of net charge-offs to average loans outstanding were 0.38% and 0.03% at September 30, 2021 and 2020, respectively.

Company 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. 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 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 four locations in Louisiana including two banking offices in Ruston, one banking office in Monroe, one banking office in West Monroe, and four locations in Arkansas including two banking offices in Crossett, one banking office in Hamburg, and one drive-through location with limited services 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, 2021

December 31, 2020

ASSETS

Cash and cash equivalents

$

56,268

$

61,426

Investment securities

4,471

2,558

Loans, net

449,622

420,397

Other assets

30,594

30,689

TOTAL ASSETS

$

540,955

$

515,070

LIABILITIES AND STOCKHOLDERS' EQUITY

Deposits

$

463,497

$

441,075

Long-term borrowings

14,454

14,454

Other liabilities

4,435

4,021

Total Liabilities

482,386

459,550

Stockholders' equity

58,569

55,520

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

540,955

$

515,070

Book Value per share

$

32.40

$

32.90


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

2021

2020

2021

2020

Interest Income

$

6,298

$

5,935

$

18,355

$

18,337

Interest Expense

600

856

1,972

3,067

Net Interest Income

5,698

5,079

16,383

15,270

Provision for Loan Losses

202

362

2,028

1,086

Net interest income after provision for loan losses

5,496

4,717

14,355

14,184

Noninterest Income

936

962

2,828

2,976

Noninterest Expense

4,331

4,194

13,041

12,408

Income Before Taxes

2,101

1,485

4,142

4,752

Provision For Income Taxes

431

300

1,030

1,042

NET INCOME

$

1,670

$

1,185

$

3,112

$

3,710

EARNINGS PER SHARE

Basic

$

0.95

$

0.69

$

1.78

$

2.16

Diluted

$

0.95

$

0.68

$

1.78

$

2.13


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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