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Century Next Financial Corporation Reports 2nd Quarter 2020 Results

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RUSTON, La., July 29, 2020 (GLOBE NEWSWIRE) -- Century Next Financial Corporation (OTCQX:CTUY), the holding company of Century Next Bank, with $525.3 million in assets, today announced financial results for the 2nd quarter ended June 30, 2020.

Financial Performance

For the three months ended June 30, 2020, Century Next Financial Corporation (the "Company") had net income after tax of $1.52 million compared to net income of $1.18 million for the three months ended June 30, 2019, an increase of $344,000 or 29.2%.  Earnings per share (EPS) for the three months ended June 30, 2020 were $0.93 per basic and $0.92 per diluted share compared to $0.73 per basic and $0.71 per diluted share reported for the three months ended June 30, 2019. 

For the six  months ended June 30, 2020, Century Next Financial Corporation (the "Company") had net income after tax of $2.53 million compared to net income of $2.38 million for the six months ended June 30, 2019, an increase of $149,000 or 6.3%.  Earnings per share (EPS) for the six months ended June 30, 2020 were $1.55 per basic and $1.53 per diluted share compared to $1.47 per basic and $1.44 per diluted share reported for the six months ended June 30, 2019. 

Balance Sheet

Overall, total assets increased by $35.7 million or 7.3% to $525.3 million at June 30, 2020 compared to $489.6 million at December 31, 2019. 

The largest component of assets, loans, net of deferred fees and costs and the allowance for loan losses, including loans held for sale, increased $27.8 million or 6.9% for the six months ended June 30, 2020 compared to December 31, 2019.  Total net loans at June 30, 2020 were $429.8 million compared to $402.0 million at December 31, 2019.  Net loan growth reflects increases of $27.0 million in commercial non-real estate loans (including $27.3 million in Paycheck Protection Program loans), $4.6 million in commercial real estate, $3.8 million in multi-family loans, $3.5 million in residential 1-4 family HFS and $2.2 million in land loans. These increases were offset by decreases of $8.6 million in residential 1-4 family loans, $1.8 million in residential construction loans, $1.6 million in agricultural real estate loans, $571,000 in home equity lines of credit, $367,000 in consumer non-real estate loans, and $7,000 in agricultural non-real estate loans.  The allowance for loan losses increased by $362,000 or 10.6% to $3.78 million at June 30, 2020 from $3.42 million at December 31, 2019.

Total deposits at June 30, 2020 increased $33.0 million or 7.8% to $454.9 million compared to $421.9 million at December 31, 2019.  Growth occurred in noninterest-bearing checking deposits of $25.8 million, interest-bearing checking deposits of $13.0 million, and savings deposits of $4.8 million.  The increases were offset by decreases in money market deposits of $7.8 million and time deposits of $2.8 million.

Total short-term borrowings decreased to $16,000 at June 30, 2020 from $41,000 at December 31, 2019, a decrease of $25,000 or 61.0%, while long-term borrowings did not change at $14.5 million as of June 30, 2020 compared to December 31, 2019.  The net decrease in short-term borrowings was primarily due to the payments made on a Federal Home Loan Bank (FHLB) note. 

Income Statement

Net interest income was $5.19 million for the three months ended June 30, 2020 compared to $4.89 million for the three months ended June 30, 2019.  This was an increase of $301,000, or 6.2%.  For the six months ended June 30, 2020, net interest income was $10.19 million compared to $9.63 million for the six months ended June 30, 2020.  The increase for the three- and six-month periods were primarily from increases in interest income earned on loans and decreases in interest expense on deposits offset by decreases in interest income on interest-bearing deposits in banks and other investments.

The provision for loan losses amounted to $362,000 for the three months ended June 30, 2020, compared to $237,000 in provision for the three months ended June 30, 2019.  For the six months ended June 30, 2020, provision for loan losses was $724,000 compared to $474,000 for the same period in 2019.  The increase in loan loss provision for the three- and six-month periods, as compared to the same periods in the prior year was primarily a reflection of an increased risk awareness and identification of potential credit trend changes within the loan portfolio added to strengthen the allowance for loan losses.

Total non-interest income amounted to $1.15 million for the three months ended June 30, 2020 compared to $849,000 for the three months ended June 30, 2019, an increase of $299,000 or 35.2%.  for the six months ended June 30, 2020, non-interest income was $2.01 million compared to $1.68 million for the same period in 2019, an increase of $331,000 or 19.7%.  The increases for the three- and six-month periods were primarily a result of loan servicing release fees from increased mortgage refinancings and a bank-owned life insurance claim proceeds in excess of cash surrender value.

Total non-interest expense increased by $40,000 or 1.0% to $4.07 million for the three months ended June 30, 2020 compared to $4.03 million for the three months ended June 30, 2019. For the six months ended June 30, 2020, non-interest expense was $8.21 million compared to $7.92 million for the same period in 2019, an increase of $297,000 or 3.8%.  The majority of the increases for both three- and six-month periods were primarily due to salaries and employee benefits, occupancy and equipment and advertising expenses.  These increases were offset slightly by decreases in data processing, foreclosed assets, audit and examination fees, and other operating expenses. The Company's efficiency ratio, a measure of expense as a percent of total income, decreased to 64.25% for the three months ended June 30, 2020 compared to 70.27% for the three months ended June 30, 2019.  For the six months ended June 30, 2020, the efficiency ratio was 67.29% compared to 70.00% for the same six-month period of 2019.

Other Financial Information

Nonperforming assets, including loans past due 90 days or more, nonaccrual loans, and other foreclosed assets, increased from $4.1 million at December 31, 2019 to $4.3 million at June 30, 2020.  Total non-performing assets were 0.83% and 0.84% of totals assets as of June 30, 2020 and December 31, 2019, respectively.  Allowance for loan losses were $3.78 million or 0.87% of total loans at June 30, 2020 compared to $3.42 million or 0.84% of total loans at December 31, 2019.  Net charge-offs for the year-to-date period ended June 30, 2020 were $362,000 compared to net charge-offs of $47,000 for the year-to-date period ended June 30, 2019.  The ratios of net charge-offs to average loans outstanding were 0.09% and 0.01% at June 30, 2020 and June 30, 2019, respectively.

COVID-19 Related Information

The Company is continuing to monitor the economic impact from the COVID-19 restrictions to business operations as it relates to both business and consumer customers of its bank subsidiary and the potential impact to credit quality and future earnings.  During the 2nd quarter ended June 30, 2020, the Company's bank subsidiary, Century Next Bank, made approximately $27.3 million in paycheck protection loans to businesses seeking assistance.  Although economic conditions may have a negative effect on bank customer throughout the remainder of 2020, the Company has been minimally impacted and will continue to monitor conditions and react as appropriate to mitigate risks to its financial condition.

Assistance provided to business and individuals through the CARES Act enacted by Congress in late March 2020 has provided some relief for the economic effects of the shutdown.    

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)

  June 30, 2020   December 31, 2019
       
ASSETS      
       
Cash and cash equivalents $   61,573   $   54,100
Investment securities     2,573        2,589
Loans, net     429,843       402,033
Other assets     31,268       30,884
TOTAL ASSETS $   525,257   $   489,606
LIABILITIES AND STOCKHOLDERS' EQUITY      
       
Deposits $   454,890   $   421,855
Short-term borrowings     16       41
Long-term borrowings     14,454       14,454
Other liabilities      3,257       3,119
Total Liabilities     472,617       439,469
Stockholders' equity      52,640       50,137
       
       
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $   525,257   $   489,606
Book Value per share $   31.30   $   30.16


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
    2020     2019     2020     2019
               
Interest Income $ 6,112   $ 6,371   $   12,402   $   12,448
Interest Expense   922     1,482     2,211     2,822
Net Interest Income   5,190     4,889     10,191     9,626
Provision for Loan Losses   362     237     724     474
Net interest income after provision for loan losses   4,828     4,652     9,467     9,152
Noninterest Income   1,148     849     2,014     1,683
Noninterest Expense   4,072     4,032     8,213     7,916
Income Before Taxes   1,904     1,469     3,268     2,919
Provision For Income Taxes   382     291     742     542
NET INCOME $    1,522   $   1,178   $   2,526   $   2,377
               
               
EARNINGS PER SHARE              
Basic $   0.93   $   0.73   $   1.55   $   1.47
Diluted $   0.92   $   0.71   $   1.53   $   1.44

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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