RUSTON, La., July 28, 2023 (GLOBE NEWSWIRE) —
Century Next Financial Corporation (the “Company”) (OTCQX: CTUY), the holding company of Century Next Bank, with $699.5 million in assets, today announced financial results for the 2nd quarter ended June 30, 2023.
Financial Performance
Net income for the three months ended June 30, 2023 was $1.57 million compared to net income of $1.49 million for the three months ended June 30, 2022, an increase of $86,000 or 5.8%. Earnings per share (EPS) for the three months ended June 30, 2023 were $0.88 per basic and diluted share compared to $0.84 per basic and diluted share reported for the three months ended June 30, 2022.
For the six months ended June 30, 2023, the Company had net income of $2.63 million compared to net income of $2.58 million for the six months ended June 30, 2022, an increase of $52,000 or 2%. Earnings per share (EPS) for the six months ended June 30, 2023 were $1.47 per basic and diluted share compared to $1.45 per basic and diluted share reported for the six months ended June 30, 2022.
Net income and earnings per share improved for the quarter- and year-to-date periods ending June 30, 2023 compared to the same periods ending June 30, 2022.
Balance Sheet
Total assets increased by $56.2 million or 8.7% to $699.5 million at June 30, 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 $60.4 million at June 30, 2023 for an increase of $18 million or 42.5%. Investment securities, primarily available for sale, increased by $2.8 million to $28.9 million at June 30, 2023 from $26.1 million at December 31, 2022. The growth in cash and cash equivalents and available for sale investment securities was primarily from robust growth in deposits for the first six months of 2023. This growth provided added strength to the Company’s liquidity position during the six months ending June 30, 2023.
Loans, net of deferred fees and costs and the allowance for credit losses, including loans held for sale, increased $34.9 million or 6.5% for the six months ended June 30, 2023 compared to December 31, 2022. Total net loans at June 30, 2023 were $572.8 million compared to $537.9 million at December 31, 2022. The increase in net loan balances for the six month period ending June 30, 2023 was primarily from growth in residential 1-4 family, commercial real estate, commercial non-real estate, and various other loan categories which were up a combined $54.1 million. The increase in loans was offset by a net decrease of $18.9 million in residential 1-4 family held-for-sales, multi-family, residential construction, consumer, and agricultural loans.
Deposit growth was strong for the six months ended June 30, 2023 as total deposits increased by $53.3 million or 9.5% to $613.7 million at June 30, 2023 compared to $560.4 million at December 31, 2022. Noninterest-bearing checking increased $96.4 million and interest-bearing checking accounts increased $1.9 million for the six months ended June 30, 2023. The increases were offset by decreases of $21.2 million in time deposits, primarily from brokered CD maturities of $17.9 million, $16.8 million in money market accounts, and $7 million in savings for the six months ended June 30, 2023.
Short-term borrowings of $6 million and long-term borrowings of $8.5 million both remained the same at June 30, 2023 and December 31, 2022.
Income Statement
Net interest income was $6 million for the three months ended June 30, 2023 compared to $5.6 million for the three months ended June 30, 2022. This was an increase of $409,000, or 7.3%. Net interest income was $11.5 million for the six months ended June 30, 2023 compared to $10.8 million for the six months ended June 30, 2022. This was an increase of $724,000, or 6.7%.
The average rate on earning assets for the three months ended June 30, 2023 increased to 5.58% compared to 4.41% for the three months ended June 30, 2022. The average rate on earning assets for the six month ended June 30, 2023 increased to 5.39% compared to 4.40% for the six months ended June 30, 2022. The cost of interest-bearing liabilities for the three months ended June 30, 2023 increased to 2.81% compared to 0.67% for the three months ended June 30, 2022. The cost of interest-bearing liabilities for the six months ended June 30, 2023 increased to 2.58% compared to 0.61% for the six months ended June 30, 2022. The increase in yield on earning assets and cost of interest-bearing liabilities were both the result of continuing increase in rates by the Federal Open Market Committee of the Federal Reserve Board. The net interest margin was 3.63% for the three months ended June 30, 2023 compared to 3.88% for the three months ended June 30, 2022. The net interest margin was 3.54% for the six months ended June 30, 2023 compared to 3.92% for the six months ended June 30, 2022.
For the three months ended June 30, 2023, a provision for credit losses of $124,000 was expensed using the CECL methodology compared to $126,000 the three months ended June 30, 2022 under the previous guidance. For the six months ended June 30, 2023, a provision for credit losses of $262,000 was expensed using the CECL methodology compared to $252,000 for the six months ended June 30, 2022 under the previous accounting guidance.
Total non-interest income amounted to $856,000 for the three months ended June 30, 2023 compared to $1.1 million for the three months ended June 30, 2022, a decrease of $263,000 or 23.5%. Total non-interest income amounted to $1.6 million for the six months ended June 30, 2023 compared to $2 million for the six months ended June 30, 2022, a decrease of $400,000 or 19.6%. The increases in non-interest income for the three- and six-month periods ending June 30, 2023 were primarily from net gain on sale of loans and net gain on sale of foreclosed assets, offset primarily by decreases in loan servicing release fees and other income as compared to the same periods in 2022.
Total non-interest expense increased by $310,000 or 6.9% to $4.8 million for the three months ended June 30, 2023 compared to $4.5 million for the three months ended June 30, 2022. Total non-interest expense increased by $578,000 or 6.4% to $9.7 million for the six months ended June 30, 2023 compared to $9.1 million for the six months ended June 30, 2022 The increases in both the three- and six-month periods ending June 30, 2023 was primarily due to increases in salaries and benefits, FDIC deposit insurance, and various other operating expenses as compared to the same periods in 2022.
The Company’s efficiency ratio, a measure of expense as a percent of total income, increased to 70.62% for the three months ended June 30, 2023 compared to 67.52% for the three months ended June 30, 2022. For the six months ended June 30, 2023, the efficiency ratio increased to 73.66% compared to 71.01% for the six months ended June 30, 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 $1.08 million at June 30, 2023, a decrease of $556,000. Total non-performing assets were 0.15% and 0.25% of totals assets as of June 30, 2023 and December 31, 2022, respectively.
Allowance for credit losses under CECL was $6.1 million or 1.05% of total loans at June 30, 2023 compared to the allowance for loan losses under previous guidance of $5.8 million or 1.07% of total loans at December 31, 2022. Net recoveries for the six months ended June 30, 2023 were $7,000, compared $61,000 for the six months ended June 30, 2022. The ratio of net recoveries to average loans outstanding was 0.001% at June 30, 2023 compared to the ratio of net recoveries to average loans outstanding was 0.01% for the same period of 2022.
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 six 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) |
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| (In thousands, except per share data) | |||||
| June 30, 2023 | December 31, 2022 | ||||
| ASSETS | |||||
| Cash and cash equivalents | $ | 60,433 | $ | 42,410 | |
| Investment securities | 30,965 | 28,121 | |||
| Loans, net | 572,830 | 537,932 | |||
| Other assets | 35,303 | 34,855 | |||
| TOTAL ASSETS | $ | 699,531 | $ | 643,318 | |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||
| Deposits | $ | 613,711 | $ | 560,383 | |
| Short-term borrowings | 6,000 | 6,000 | |||
| Long-term borrowings | 8,454 | 8,454 | |||
| Other liabilities | 4,516 | 3,977 | |||
| Total Liabilities | 632,681 | 578,814 | |||
| Stockholders’ equity | 66,850 | 64,504 | |||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 699,531 | $ | 643,318 | |
| Book Value per share | $ | 36.76 | $ | 35.50 | |
| Century Next Financial Corporation and Subsidiary Consolidated Statements of Income (unaudited) |
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| (In thousands, except per share data) | |||||||||||
| Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||
| Interest Income | $ | 9,192 | $ | 6,327 | $ | 17,504 | $ | 12,087 | |||
| Interest Expense | 3,217 | 761 | 6,018 | 1,325 | |||||||
| Net Interest Income | 5,975 | 5,566 | 11,486 | 10,762 | |||||||
| Provision for Credit Losses | 124 | 126 | 262 | 252 | |||||||
| Net Interest Income after Provision for Expected Losses | 5,851 | 5,440 | 11,224 | 10,510 | |||||||
| Noninterest Income | 856 | 1,119 | 1,637 | 2,037 | |||||||
| Noninterest Expense | 4,824 | 4,514 | 9,666 | 9,088 | |||||||
| Income Before Taxes | 1,883 | 2,045 | 3,195 | 3,459 | |||||||
| Provision For Income Taxes | 309 | 557 | 563 | 879 | |||||||
| NET INCOME | $ | 1,574 | $ | 1,488 | $ | 2,632 | $ | 2,580 | |||
| EARNINGS PER SHARE | |||||||||||
| Basic | $ | 0.88 | $ | 0.84 | $ | 1.47 | $ | 1.45 | |||
| Diluted | $ | 0.88 | $ | 0.84 | $ | 1.47 | $ | 1.45 | |||
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
