Market Overview

Century Next Financial Corporation Reports 2nd Quarter 2018 Results

Share:

RUSTON, La., July 31, 2018 (GLOBE NEWSWIRE) -- Century Next Financial Corporation (OTC:CTUY), the holding company of Bank of Ruston with $303.6 million in assets, today announced financial results for the 2nd quarter ended June 30, 2018.

Financial Performance

For the three months ended June 30, 2018, Century Next Financial Corporation (the "Company") had net income after tax of $831,000 compared to net income of $688,000 for the three months ended June 30, 2017, an increase of $143,000 or 20.8%.  Earnings per share (EPS) for the three months ended June 30, 2018 were $0.79 per basic share and $0.76 per diluted share compared to $0.66 per basic share and $0.64 per diluted share reported for the three months ended June 30, 2017. 

For the six months ended June 30, 2018, net income was $1.65 million compared to net income of $1.27 million for the six months ended June 30, 2017, an increase of $383,000 or 30.1%.  Earnings per share (EPS) for the six months ended June 30, 2018 were $1.57 and $1.52 per basic share and diluted share, respectively, compared to $1.22 and $1.18 per basic and diluted share, respectively, reported for the same period in 2017.

Balance Sheet

Overall, total assets increased by $20.0 million or 7.0% to $303.6 million at June 30, 2018 compared to $283.6 million at December 31, 2017. 

The largest component of assets, loans, net of deferred fees and costs and the allowance for loan losses, increased $13.2 million or 5.6% for the six months ended June 30, 2018 compared to December 31, 2017.  Total net loans at June 30, 2018 were $250.6 million compared to $237.4 million at December 31, 2017. The growth was primarily the result of demand for loans secured by real estate including 1-4 family residential, residential construction, commercial properties, agricultural, and multi-family loans.     

Total deposits at June 30, 2018 increased $17.2 million or 7.5% to $245.1 million compared to $227.9 million at December 31, 2017.  Time deposits, noninterest-bearing checking, and savings deposits were the main growth areas contributing to the increase in overall deposits. 

Short-term borrowings, consisting of FHLB advances, at June 30, 2018 were $4.0 million compared to $3.3 million at December 31, 2017. 

Long-term borrowings, consisting of FHLB discount note borrowings, were unchanged at $22.1 million at June 30, 2018 and December 31, 2017.

Income Statement

Net interest income was $2.90 million for the three months ended June 30, 2018 compared to $2.55 million for the three months ended June 30, 2017.  This was an increase of $352,000, or 13.8%.  For the six months ended June 30, 2018, net interest income was $5.68 million compared to $4.94 million for the six months ended June 30, 2017.  This was an increase of $742,000, or 15.0%.  The increases for the three- and six-month periods were primarily from interest income earned on loans.

The provision for loan losses amounted to $180,000 for the three months ended June 30, 2018, compared to $150,000 in provision for the three months ended June 30, 2017.  For the six months ended June 30, 2018, provision for loan losses was $375,000 compared to $300,000 for the same period in 2017.  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 $402,000 for the three months ended June 30, 2018 compared to $478,000 for the three months ended June 30, 2017, a decrease of $76,000 or 15.9%.  For the six months ended June 30, 2018, non-interest income was $772,000 compared to $859,000 for the same period in 2017, a decrease of $87,000 or 10.1%.  The decreases for the three- and six-month periods were primarily from a decline in income generated from loan servicing release fees from held-for-sale mortgage activities. 

Total non-interest expense increased by $220,000 or 11.8% to $2.09 million for the quarter ended June 30, 2018 compared to $1.87 million for the quarter ended  June 30, 2017.  For the six months ended June 30, 2018, non-interest expense was $4.05 million compared to $3.66 million  for the same period in 2017, an increase of $396,000 or 10.8%.  The majority of the increases for both the three- and six-month periods was due to increased expenses of salaries and benefits and legal and professional expenses.  The Company's efficiency ratio, a measure of expense as a percent of total income, was 63.36% for the three months ended June 30, 2018 compared to 61.86% for the quarter ended June 30, 2017.  For the six months ended June 30, 2018, the efficiency ratio was 62.75% compared to 63.01% for the same six-month period in 2017.

Additional Information

Century Next Financial Corporation is the holding company for Bank of Ruston (the "Bank") which conducts business from three full-service banking centers.  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 and one banking office in Monroe. 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, 2018      December 31, 2017
       
ASSETS      
       
Cash and cash equivalents $   36,803   $   30,611
Investment securities     2,592       2,614
Loans, net     250,631       237,449
Other assets     13,553       12,939
TOTAL ASSETS $   303,579   $   283,613
       
       
LIABILITIES AND STOCKHOLDERS' EQUITY      
       
Deposits $   245,121   $   227,922
Short-term borrowings (FHLB advances)     4,000       3,250
Long-term borrowings (FHLB advances)     22,111       22,134
Other liabilities     2,397       2,155
Total Liabilities     273,629       255,461
Stockholders' equity     29,950       28,152
       
       
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $   303,579   $   283,613
Book Value per share $   27.24   $   25.80
       

 

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
     2018    2017    2018    2017
                 
Interest Income   3,611     2,916       6,994       5,632  
Interest Expense     711       368       1,310       690  
Net Interest Income     2,900       2,548       5,684       4,942  
Provision for Loan Losses     180       150       375       300  
Net interest income after provision for loan losses     2,720       2,398       5,309       4,642  
Noninterest Income     402       478       772       859  
Noninterest Expense     2,092       1,872       4,051       3,655  
                 
Income Before Taxes     1,030       1,004       2,030       1,846  
Provision For Income Taxes     199       316       375       574  
NET INCOME   $   831     $   688     $   1,655     $   1,272  
                 
                 
EARNINGS PER SHARE                
Basic   $   0.79     $   0.66     $   1.57     $   1.22  
Diluted   $   0.76     $   0.64     $   1.52     $   1.18  
                 

 

Century Next Financial Corporation Contact Information:

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

Company Website: www.bor.bank

Primary Logo

View Comments and Join the Discussion!