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Century Next Financial Corporation Reports 3rd Quarter 2018 Results

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RUSTON, La., Oct. 22, 2018 (GLOBE NEWSWIRE) -- Century Next Financial Corporation (OTCQX:CTUY), the holding company of Bank of Ruston with $306.8 million in assets, today announced financial results for the 3rd quarter ended September 30, 2018.

Financial Performance

For the three months ended September 30, 2018, Century Next Financial Corporation (the "Company") had net income after tax of $835,000 compared to net income of $751,000 for the three months ended September 30, 2017, an increase of $84,000 or 11.2%.  Earnings per share (EPS) for the three months ended September 30, 2018 were $0.79 per basic share and $0.76 per diluted share compared to $0.72 per basic share and $0.69 per diluted share reported for the three months ended September 30, 2017. 

For the nine months ended September 30, 2018, net income was $2.49 million compared to net income of $2.02 million for the nine months ended September 30, 2017, an increase of $467,000 or 23.1%.  Earnings per share (EPS) for the nine months ended September 30, 2018 were $2.36 and $2.28 per basic share and diluted share, respectively, compared to $1.94 and $1.87 per basic and diluted share, respectively, reported for the same period in 2017.

Balance Sheet

Overall, total assets increased by $23.2 million or 8.2% to $306.8 million at September 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 $13.0 million or 5.5% for the nine months ended September 30, 2018 compared to December 31, 2017. Total net loans at September 30, 2018 were $250.4 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 September 30, 2018 increased $23.2 million or 10.2% to $251.2 million compared to $227.9 million at December 31, 2017. Time deposits, noninterest- and interest-bearing checking, and savings deposits were the main growth areas contributing to the increase in overall deposits. 

At September 30, 2018, there were no short-term borrowings compared to $3.3 million at December 31, 2017, consisting of FHLB advances. 

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

Income Statement

Net interest income was $2.94 million for the three months ended September 30, 2018 compared to $2.73 million for the three months ended September 30, 2017.  This was an increase of $212,000, or 7.8%.  For the nine months ended September 30, 2018, net interest income was $8.63 million compared to $7.67 million for the nine months ended September 30, 2017.  This was an increase of $954,000, or 12.4%.  The increases for the three- and nine-month periods were primarily from interest income earned on loans offset by increases in interest expense on deposits and long-term  borrowings for the three- and nine-month periods.

The provision for loan losses amounted to $180,000 for the three months ended September 30, 2018, compared to $195,000 in provision for the three months ended September 30, 2017.  For the nine months ended September 30, 2018, provision for loan losses was $555,000 compared to $495,000 for the same period in 2017.  The decrease in loan loss provision for the three-month period in 2018 compared to the same period in 2017 was due to a reduction in the calculation of projected probable losses showing improvement in credit quality trends.  The increase in loan loss provision for the nine-month period, as compared to the same period in the prior year, is not a result of increased loss activity but more attributable to increased risk awareness from loan concentrations primarily in commercial real estate secured properties increasing year over year.  

Total non-interest income amounted to $444,000 for the three months ended September 30, 2018 compared to $410,000 for the three months ended September 30, 2017, an increase of $34,000 or 8.3%.  For the nine months ended September 30, 2018, non-interest income was $1.22 million compared to $1.27 million for the same period in 2017, a decrease of $53,000 or 4.2%.  The increase for the three-month period in 2018 compared to same period in 2017 was due primarily to an increase in service charges on deposit accounts.  The decrease for the nine-month period was primarily due to a decline in income generated from loan servicing release fees from held-for-sale mortgage activities offset by an increase in service charges on deposit accounts. 

Total non-interest expense increased by $321,000 or 17.4% to $2.16 million for the quarter ended September 30, 2018 compared to $1.84 million for the quarter ended  September 30, 2017.  For the nine months ended September 30, 2018, non-interest expense was $6.21 million compared to $5.50 million  for the same period in 2017, an increase of $717,000 or 13.0%.  The majority of the increases for both the three- and nine-month periods were due to increased expenses of salaries and benefits for existing staff and legal and professional expenses associated with the acquisition of Ashley Bancstock Company.  The Company's efficiency ratio, a measure of expense as a percent of total income, was 63.88% for the three months ended September 30, 2018 compared to 58.66% for the quarter ended September 30, 2017.  For the nine months ended September 30, 2018, the efficiency ratio was 63.14% compared to 61.48% for the same nine-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)
       
  December 31
  September 30, 2018   December 31, 2017
       
ASSETS      
       
Cash and cash equivalents $   40,028   $   30,611
Investment securities     2,584       2,614
Loans, net     250,420       237,449
Other assets     13,748       12,939
TOTAL ASSETS $   306,780   $   283,613
LIABILITIES AND STOCKHOLDERS' EQUITY      
       
Deposits $   251,171   $   227,922
Short-term borrowings (FHLB advances)     -       3,250
Long-term borrowings (FHLB advances)     22,100       22,134
Other liabilities     2,699       2,155
Total Liabilities     275,970       255,461
Stockholders' equity     30,810       28,152
       
       
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $   306,780   $   283,613
Book Value per share $   28.03   $   25.80

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
    2018     2017     2018     2017
               
Interest Income $ 3,816   $ 3,178   $   10,810   $   8,810
Interest Expense   874     448     2,184     1,138
Net Interest Income   2,942     2,730     8,626     7,672
Provision for Loan Losses   180     195     555     495
Net interest income after provision for loan losses   2,762     2,535     8,071     7,177
Noninterest Income   444     410     1,216     1,269
Noninterest Expense   2,163     1,842     6,214     5,497
Income Before Taxes   1,043     1,103     3,073     2,949
Provision For Income Taxes   208     352     583     926
NET INCOME $   835   $   751   $   2,490   $   2,023
               
               
EARNINGS PER SHARE              
Basic $   0.79   $   0.72   $   2.36   $   1.94
Diluted $   0.76   $   0.69   $   2.28   $   1.87

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

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