Century Next Financial Corporation Reports 2nd Quarter 2015 Results
Century Next Financial Corporation (OTCQB: CTUY), the holding company of Bank of Ruston with $173.2 million in assets, today announced financial results for the 2nd quarter ended June 30, 2015.
For the three months ended June 30, 2015, Century Next Financial Corporation (the "Company") had net income after tax of $388,000 compared to net income of $336,000 for the three months ended June 30, 2014, an increase of $52,000 or 15.5%. Earnings per share (EPS) for the three months ended were $0.38 and $0.37 per basic and diluted share, respectively, compared to $0.33 per basic and diluted share reported for the three months ended June 30, 2014.
For the six months ended June 30, 2015, net income was $742,000 compared to net income of $562,000 for the six months ended June 30, 2014, an increase of $180,000 or 32.0%. Earnings per share (EPS) for the six months ended June 30, 2015 were $0.72 per basic share and diluted share compared to $0.55 per basic and diluted share reported for the same period in 2014.
On June 5, 2015, the Company paid a 5% stock dividend per share to shareholders of record May 26, 2015. Earnings per share information for 2014 for the three and six months periods has been revised to reflect the effect of the stock dividend for comparative purposes.
Overall, total assets increased by $3.5 million or 2.0% to $173.2 million at June 30, 2015 compared to $169.7 million at December 31, 2014.
The largest component of assets, loans, net of deferred fees and costs and the allowance for loan losses, increased $2.7 million or 1.9% for the six months ended June 30, 2015 compared to December 31, 2014. Total net loans at June 30, 2015 were $145.3 million compared to $142.6 million at December 31, 2014. Year to date growth occurred in multiple areas including residential 1-4 family loans, up $5.7 million, commercial real estate loans, up $5.3 million, agricultural real estate, up $2.2 million, held-for-sale mortgage loans, up $854,000, and agricultural, non-real estate loans, up $713,000. The increases were offset by a decreases in land loans of $5.9 million, commercial, non-real estate loan of $3.9 million, residential construction loans of $1.2 million, multi-family real estate loans of $569,000, consumer loans of $432,000, and home equity lines of credit of $87,000.
Total deposits at June 30, 2015 increased $6.6 million or 4.9% to $142.4 million compared to $135.8 million at December 31, 2014. For the year-to-date period, interest-bearing checking increased $11.9 million, noninterest-bearing checking increased $4.2 million, savings deposits increased $797,000, and money market deposits increased $652,000. The increases were offset by a decrease in time deposits of $10.9 million.
Total short-term borrowings decreased to $6.5 million at June 30, 2015 from $10.5 million at December 31, 2014, a decrease of $4.0 million or 38.1%. This reduction came from funding provided by deposit growth as mentioned above.
Net interest income was $1.8 million for the three months ended June 30, 2015 compared to $1.6 million for the three months ended June 30, 2014. This was an increase of $202,000, or 12.7%. For the six months ended June 30, 2015, net interest income was $3.6 million compared to $3.1 million for the six months ended June 30, 2014, an increase of $499,000 or 16.3%. The increases for the three- and six-month periods were primarily from interest income earned on loans from increased volume.
The provision for loan losses amounted to $72,000 and $144,000 for the three and six months ended June 30, 2015 compared to $48,000 and $96,000 in provision for the three and six months ended June 30, 2014, respectively. The increases in loan loss provision for the quarter and year-to-date periods as compared to the prior year quarter and year-to-date periods are 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 $251,000 for the three months ended June 30, 2015 compared to $256,000 for the three months ended June 30, 2014, a decrease of $5,000 or 2.0%. For the six months ended June 30, 2015 compared to the same period in 2014, non-interest income was $451,000 compared to $445,000, respectively, an increase of $6,000 or 1.3%. The decrease for the three-month period and the increase for the six-month period were both primarily due to fluctuations in income generated from mortgage activity in both the refinancing and new construction markets, service charges on deposit accounts, and other income.
Total non-interest expense increased by $80,000 or 6.0% to $1.4 million for the quarter ended June 30, 2015 compared to $1.3 million for the quarter ended June 30, 2014. For the six months ended June 30, 2015 compared to the same period in 2014, non-interest expense increased by $202,000 or 7.8% to $2.8 million up from $2.6 million. The increases for both the three- and six-month periods, on a year over year comparative basis, were primarily due to increases in salaries and employee benefits due to staff additions and compensation increases. The Company continues to show improvement in its efficiency ratio, a measure of expense as a percent of total income, to 68.8% and 69.6% for the three and six months ended June 30, 2015 compared to 71.8% and 73.9% for the same periods, respectively, in 2014.
Other Financial Information
Nonperforming assets, including loans past due 90 days or more and nonaccrual loans, increased from $701,000 at December 31, 2014 to $1.1 million at June 30, 2015. The increase was due to loans involving primarily one customer that experienced a deterioration in financial condition. Management is working diligently to minimize any potential losses. Impairment analyses were performed on all nonaccrual and other classified loans as identified by management and no impairment amount was deemed necessary at June 30, 2015. Although, during the 2nd quarter ended June 30, 2015, two loans were deemed uncollectible and charged off in full. Net charge-offs for the three and six months ended June 30, 2015 were $34,000 compared to no charge-offs or recoveries during the same periods in 2014.
Century Next Financial Corporation is the holding company for Bank of Ruston (the "Bank") which conducts business from its main office and full-service branch office, located in Ruston, Louisiana. The Company was formed in 2010 and is subject to the regulatory oversight of the Board of Governors of the Federal Reserve System. The Bank is a wholly-owned subsidiary and is an insured federally-chartered stock savings association subject to the regulatory oversight of the Office of the Comptroller of the Currency. The Bank was established in 1905 and is headquartered in Ruston, Louisiana. The Bank is a full-service bank with two banking offices in Ruston. The Bank emphasizes professional and personal banking service directed primarily to small and medium-sized businesses, professionals, and individuals. The Bank provides a full range of banking services including its primary business of real estate lending to residential and commercial customers.
Statements contained in this news release which are not historical facts may be forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words like "believe," "expect," "anticipate," "estimate," and "intend" or future or conditional verbs such as "will," "would," "should," "could," or "may." We undertake no obligation to update any forward-looking statements.
|Century Next Financial Corporation and Subsidiary|
|Condensed Consolidated Balance Sheets (unaudited)|
(In thousands, except per share data)
|June 30, 2015||December 31, 2014|
|Cash and cash equivalents||$||11,812||$||11,140|
LIABILITIES AND STOCKHOLDERS' EQUITY
|Short-term borrowings (FHLB advances)||6,500||10,500|
|Long-term borrowings (FHLB advances)||243||264|
|TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY||$||173,154||$||169,697|
|Book Value per share||$||20.51||$||20.84|
|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|
|Net Interest Income||1,794||1,592||3,557||3,058|
|Provision for Loan Losses||72||48||144||96|
|Net interest income after provision for loan losses||1,722||1,544||3,413||2,962|
|Income Before Taxes||566||473||1,075||820|
|Provision For Income Taxes||178||137||333||258|
|EARNINGS PER SHARE|
Century Next Financial Corporation
William D. Hogan
President & Chief Executive Officer
Mark A. Taylor, CPA CGMA
Senior Vice President & Chief Financial Officer