CTUY Century Next Financial Corporation (QX)

Century Next Financial Corporation (OTCQB: CTUY), the holding company of Bank of Ruston with $157.2 million in assets, today announced financial results for the 2nd quarter ended June 30, 2014.

Financial Performance

For the three months ended June 30, 2014, Century Next Financial Corporation (the “Company”) had net income after tax of $336,000 compared to net income of $139,000 for the three months ended June 30, 2013, an increase of $197,000 or 141.7%. Earnings per share (EPS) for the three months ended were $0.34 per basic and diluted share compared to $0.14 per basic and diluted share reported for the three months ended June 30, 2013.

For the six months ended June 30, 2014, net income was $562,000 compared to net income of $289,000 for the six months ended June 30, 2013, an increase of $273,000 or 94.5%. Earnings per share (EPS) for the six months ended were $0.58 per basic share and $0.57 per diluted share compared to $0.30 per basic and diluted share reported for the six months ended June 30, 2013.

Balance Sheet

Overall, total assets increased by $14.3 million or 10.1% to $157.2 million at June 30, 2014 compared to $142.8 million at December 31, 2013.

The largest component of assets, loans, net of deferred fees and costs and the allowance for loan losses, increased $13.5 million or 11.7% for the six months ended June 30, 2014 compared to December 31, 2013. Total net loans at June 30, 2014 were $129.5 million compared to $116.0 million at December 31, 2013. Year to date growth occurred in multiple areas including residential 1-4 family loans, up $4.5 million, commercial real estate loans, up $3.5 million, land loans, up $2.2 million, home equity lines, up $1.5 million, held-for-sale mortgage loans, up $1.2 million, and residential construction loans, up $847,000. The increase was offset by a slight decline in multi-family real estate loans of $173,000.

Total deposits at June 30, 2014 increased $13.9 million or 12.5% to $125.0 million compared to $111.2 million at December 31, 2013. For the year-to-date period, time deposits increased $7.0 million, noninterest-bearing checking increased $2.5 million, interest-bearing checking increased $2.3 million, savings deposits increased $1.8 million, and money market deposits increased $301,000.

Total short-term borrowings decreased to $9.5 million at June 30, 2014 from $10.0 million at December 31, 2013, a decrease of $500,000 or 5.0%. This reduction came from funding provided by deposit growth as mentioned above.

Income Statement

Net interest income was $1.59 million for the three months ended June 30, 2014 compared to $1.36 million for the three months ended June 30, 2013. This was an increase of $228,000, or 16.7%. For the six months ended June 30, 2014, net interest income was $3.06 million compared to $2.66 million for the six months ended June 30, 2013, an increase of $398,000 or 15.0%. The increases for the three month and six month periods were primarily from interest income earned on loans from increased volume.

The provision for loan losses amounted to $48,000 and $96,000 for the three and six months ended June 30, 2014 compared to $36,000 and $72,000 in provision for the three and six months ended June 30, 2013, 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 $256,000 for the three months ended June 30, 2014 compared to $224,000 for the three months ended June 30, 2013, an increase of $32,000 or 14.3%. For the six months ended June 30, 2014 compared to the same period in 2013, non-interest income was $445,000 compared to $437,000, respectively, an increase of $8,000 or 1.8%. The increases for both periods were primarily due to a rise in income generated from mortgage activity in both the refinancing and new construction markets.

Total non-interest expense decreased by $3,000 or 0.2% to $1.327 million for the quarter ended June 30, 2014 compared to $1.330 million for the quarter ended June 30, 2013. For the six months ended June 30, 2014 compared to the same period in 2013, non-interest expense decreased by $11,000 or 0.4% to $2.587 million down from $2.598 million. The Company continues to show improvement in its efficiency ratio, a measure of expense as a percent of total income, to 71.8% and 73.9% for the three and six months ended June 30, 2014 compared to 83.8% and 83.9% for the same periods, respectively, in 2013.

Nonperforming assets, including loans past due 90 days or more and nonaccrual loans, increased from $99,000 at December 31, 2013 to $1.25 million at June 30, 2014. The increase was due to loans involving primarily two customers that experienced a deterioration in financial condition. Management is working diligently to minimize any potential losses. Impairment analyses were performed on the loans of the aforementioned customers and no impairment amount was deemed necessary at June 30, 2014. In addition, there has been a significant positive development pertaining to the largest of the two customers in July 2014 that Management believes will likely result in a favorable outcome.

Additional Information

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, 2014   December 31, 2013   ASSETS   Cash and cash equivalents $ 10,836 $ 10,204 Investment securities 7,439 7,298 Loans, net 129,474 115,956 Other assets   9,412   9,354 TOTAL ASSETS $ 157,161 $ 142,812   LIABILITIES AND STOCKHOLDERS' EQUITY   Deposits $ 125,021 $ 111,164 Short-term borrowings (FHLB advances and resale agreements) 9,500 10,000 Long-term borrowings (FHLB advances) 284 301 Other liabilities   1,344   1,163 Total Liabilities 136,149 122,628 Stockholders' equity   21,012   20,184     TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 157,161 $ 142,812 Book Value per share $ 19.96 $ 19.16    

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, 2014   2013 2014   2013   Interest Income $ 1,747 $ 1,503 $ 3,367 $ 2,939 Interest Expense   155   139   309   279 Net Interest Income 1,592 1,364 3,058 2,660 Provision for Loan Losses   48   36   96   72 Net interest income after provision for loan losses 1,544 1,328   2,962   2,588 Noninterest Income 256 224 445 437 Noninterest Expense   1,327   1,330   2,587   2,598 Income Before Taxes 473 222 820 427 Provision For Income Taxes   137   83   258   138 NET INCOME $ 336 $ 139 $ 562 $ 289     EARNINGS PER SHARE Basic $ 0.34 $ 0.14 $ 0.58 $ 0.30 Diluted $ 0.34 $ 0.14 $ 0.57 $ 0.30

Century Next Financial CorporationWilliam D. Hogan, President & Chief Executive Officer, 318-255-3733orMark A. Taylor, CPA CGMA, Senior Vice President & Chief Financial Officer, 318-255-3733Company Website: www.bankruston.com