RUSTON, La., April 26, 2023 (GLOBE NEWSWIRE) — Century Next Financial Corporation (the “Company”) (OTCQX: CTUY), the holding company of Century Next Bank, with $696 million in assets, today announced financial results for the 1st quarter ended March 31, 2023.
Financial Performance
For the three months ended March 31, 2023, the Company had net income after tax of $1.06 million compared to net income of $1.09 million for the three months ended March 31, 2022, a decrease of $34,000 or 3.1%. Earnings per share (EPS) for the three months ended March 31, 2023 were $0.59 per basic and diluted share compared to $0.62 per basic and diluted share reported for the three months ended March 31, 2022.
Balance Sheet
Overall, total assets increased by $52.7 million or 8.2% to $696 million at March 31, 2023 compared to $643.3 million at December 31, 2022.
Total cash and cash equivalents increased from $42.4 million at December 31, 2022 to $66.5 million at March 31, 2023 for an increase of $24.1 million or 56.9%. Investment securities, primarily available for sale, increased by $2.9 million to $29 million at March 31, 2023 from $26.1 million at December 31, 2022. The growth in cash and cash equivalents and available for sale investment securities provided added strength to the Company’s liquidity position during the first quarter ending March 31, 2023.
Loans, net of deferred fees and costs and the allowance for credit losses, including loans held for sale, increased $25.5 million or 4.7% for the three months ended March 31, 2023 compared to December 31, 2022. Total net loans at March 31, 2023 were $563.4 million compared to $537.9 million at December 31, 2022. Of total net loans outstanding for each period, loans secured by commercial real estate increase $13.4 million followed by $7.2 million in commercial non-real estate loans, $2.1 million in land loans, $1.9 million in residential 1-4 family real estate loans, and $1.5 million in multi-family real estate loans, and $1.5 million in all other real estate loans for the three months ended March 31, 2023. The increases were offset by a combined decrease of $2 million in residential 1-4 family – held for sale, consumer loans, and other agricultural loans for the three months ended March 31, 2023.
Deposit growth was strong for the quarter ended March 31, 2023 as total deposits increased by $50.9 million or 9.1% to $611.3 million at March 31, 2023 compared to $560.4 million at December 31, 2022. Noninterest-bearing checking increased $71.0 million and money market accounts increased $467,000 for the three months ended March 31, 2023. The increases were offset by a decrease of $11.1 million in time deposits, $6.8 million in savings accounts, and $2.6 million in interest-bearing checking for the three months ended March 31, 2023.
Total long-term borrowings remained the same at $8.5 million at March 31, 2023 and December 31, 2022.
Income Statement
Net interest income was $5.51 million for the three months ended March 31, 2023 compared to $5.20 million for the three months ended March 31, 2022. This was an increase of $315,000, or 6.1%. The average rate on earning assets increased to 5.20% at March 31, 2023 compared to 4.38% at March 31, 2022. The cost of interest-bearing liabilities increased to 2.36% at March 31, 2023 compared to 0.55% at March 31, 2022. The increase in yield on earning assets and cost of interest-bearing liabilities were both the result of continuing increases in rates as the Federal Open Market Committee of the Federal Reserve Board continued aggressively raising rates. The net interest margin was 3.45% for the three months ended March 31, 2023 compared to 3.95% for the three months ended March 31, 2022.
The Company implemented the Current Expected Credit Losses (CECL) methodology for determining the adequacy of the Allowance for Credit Losses (ACL) as required by Accounting Standard Codification (ASC) 326 for the three months ended March 31, 2023. For the three months ended March 31, 2023, a provision for credit losses of $138,000 was expensed using the CECL methodology compared to $126,000 for the three months ended March 31, 2022 under the previous accounting guidance.
Total non-interest income amounted to $781,000 for the three months ended March 31, 2023 compared to $918,000 for the three months ended March 31, 2022, a decrease of $137,000 or 14.9%. Gain on sale of foreclosed assets and other income increased by $13,000 during the three months ended March 31, 2023. Income from mortgage activity including loan servicing release fees and the net gain on the sale of loans from the sale of held-for-sale mortgage loans decreased by $106,000 for the three months ended March 31, 2023 as compared to the same period in 2022. Service charges on deposit accounts also decreased by $44,000 for the three months ended March 31, 2023 as compared to the same period in 2022.
Total non-interest expense increased by $268,000 or 5.9% to $4.8 million for the three months ended March 31, 2023 compared to $4.6 million for the three months ended March 31, 2022. The largest component contributing to the total increase was an increase in salaries and employee benefits of $159,000 for the three months ended March 31, 2023 as compared to the same period in 2022. All other expenses combined increased $109,000 in the three months ended March 31, 2023 as compared to the same period in 2022.
The Company’s efficiency ratio, a measure of expense as a percent of total income, increased to 76.95% for the year three months ended March 31, 2023 compared to 74.81% for the three months ended March 31, 2022.
Other Financial Information
Nonperforming assets, including loans past due 90 days or more, nonaccrual loans, and other foreclosed assets, decreased from $1.64 million at December 31, 2022 to $1.44 million at March 31, 2023, a decrease of $199,000. Total non-performing assets were 0.21% and 0.25% of totals assets as of March 31, 2023 and December 31, 2022, respectively.
Allowance for credit losses under CECL was $5.96 million or 1.05% of total loans at March 31, 2023 compared to the allowance for loan losses under previous guidance of $5.81 million or 1.07% of total loans at December 31, 2022. Net recoveries for the three months ended March 31, 2023 were $15,000, compared $57,000 for the three months ended March 31, 2022. The ratio of net recoveries to average loans outstanding was 0.003% at March 31, 2023 compared to the ratio of net recoveries to average loans outstanding was 0.013% for the same period of 2022.
Dividend Declaration
The Board of Directors has approved a cash dividend of $0.32 per share payable on June 8, 2023 to shareholders of record as of May 25, 2023.
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 three locations in Arkansas including two banking offices in Crossett and one banking office in Hamburg. 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)
| March 31, 2023 | December 31, 2022 | ||||||
| ASSETS | |||||||
| Cash and cash equivalents | $ | 66,545 | $ | 42,410 | |||
| Investment securities | 31,038 | 28,121 | |||||
| Loans, net | 563,449 | 537,932 | |||||
| Other assets | 34,945 | 34,855 | |||||
| TOTAL ASSETS | $ | 695,977 | $ | 643,318 | |||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
| Deposits | $ | 611,294 | $ | 560,383 | |||
| Short-term borrowings | 6,000 | 6,000 | |||||
| Long-term borrowings | 8,454 | 8,454 | |||||
| Other liabilities | 4,242 | 3,977 | |||||
| Total Liabilities | 629,990 | 578,814 | |||||
| Stockholders’ equity | 65,987 | 64,504 | |||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 695,977 | $ | 643,318 | |||
| Book Value per share | $ | 36.27 | $ | 35.50 | |||
Century Next Financial Corporation and Subsidiary
Consolidated Statements of Income (unaudited)
(In thousands, except per share data)
| Three Months Ended March 31 | ||||||
| 2023 | 2022 | |||||
| Interest Income | $ | 8,312 | $ | 5,760 | ||
| Interest Expense | 2,801 | 564 | ||||
| Net Interest Income | 5,511 | 5,196 | ||||
| Provision for Credit Losses | 138 | 126 | ||||
| Net Interest Income after Provision for Expected Losses | 5,373 | 5,070 | ||||
| Noninterest Income | 781 | 918 | ||||
| Noninterest Expense | 4,842 | 4,574 | ||||
| Income Before Taxes | 1,312 | 1,414 | ||||
| Provision For Income Taxes | 254 | 322 | ||||
| NET INCOME | $ | 1,058 | $ | 1,092 | ||
| EARNINGS PER SHARE | ||||||
| Basic | $ | 0.59 | $ | 0.62 | ||
| Diluted | $ | 0.59 | $ | 0.62 | ||
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
