Century Next Financial Corporation Reports 2023 Year-End Results

Rhea-AI Summary

Century Next Financial Corporation (CTUY) reported a strong financial performance for the year ended December 31, 2023, with net income after tax of $6.75 million, an increase of 29.3% from the previous year. The company's total assets increased by 19.0% to $765.8 million, with total net loans and total deposits also showing significant growth. The company's financial results indicate a positive outlook for shareholders and the business in 2024.

RUSTON, La., Jan. 26, 2024 (GLOBE NEWSWIRE) -- Century Next Financial Corporation (the “Company”) (OTCQX: CTUY), the holding company of Century Next Bank, with $765.8 million in assets, today announced financial results for the year ended December 31, 2023.

Financial Performance

For the year ended December 31, 2023, the Company had net income after tax of $6.75 million compared to net income of $5.22 million for the year ended December 31, 2022, an increase of $1.53 million or 29.3%. Earnings per share (EPS) for the year ended December 31, 2023 were $3.78 per basic and diluted share compared to $2.94 per basic and diluted share reported for the year ended December 31, 2022.

Bill Hogan, President & CEO commented, “We are pleased to report a year of strong growth in assets and deposits as well as a record year in earnings that exceeded our expectations. We are very thankful to our customers for their loyalty and to our staff for the dedication to serving our customers needs in a challenging environment. In addition, our strong financial performance has increased shareholder value through increased earnings per share and an increased book value per share. We look forward to 2024 as we strive to build on the success of 2023.”

Balance Sheet

Overall, total assets increased by $122.5 million or 19.0% to $765.8 million at December 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 $105.0 million at December 31, 2023 for an increase of $62.6 million or 147.5%. Investment securities, primarily available for sale, increased by $9.9 million to $36.0 million at December 31, 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 continued robust growth in deposits for the year of 2023. This growth in cash and cash equivalents provided strength to the Company’s liquidity position during the year ending December 31, 2023.

The largest component of assets, loans, net of deferred fees and costs and the allowance for credit losses, including loans held for sale, increased $49.3 million or 9.2% for the year ended December 31, 2023 compared to December 31, 2022. Total net loans at December 31, 2023 were $587.2 million compared to $537.9 million at December 31, 2022.   For the year ended December 31, 2023, loans secured by residential 1-4 family increased $26.3 million, loans secured by commercial real estate increased $13.5 million, land loans increased $11.4 million, loans secured by agricultural land increased $8.7 million, residential construction loans increased $5.7 million, and home equity lines of credit increased 957,000. These increases were offset by a declines in loans secured by multi-family properties of $16.2 million, residential 1-4 family held-for-sale loans of $533,000, consumer loans of $277,000 commercial non-real estate loans of $11,000, agricultural non-real estate loans of $9,000, and the net increase of the allowance for credit losses of $242,000 for the year ended December 31, 2023.  

Total deposits at December 31, 2023 increased $119.7 million or 21.4% to $680.1 million compared to $560.4 million at December 31, 2022.   For the year ended December 31, 2023, noninterest-bearing checking increased by $150.7 million and interest-bearing checking increased by $13.1 million. The increases were offset by decreases in time deposits of $23.9 million, savings deposits of $10.4 million, and money market deposits of $9.8 million for the year ended December 31, 2023.

Short-term borrowings of $6.0 million matured in September 2023 bringing the balance to zero at December 31, 2023 compared to $6.0 million at December 31, 2022. Long-term borrowings of $8.5 million remained the same at December 31, 2023 and 2022.  

Total stockholders’ equity was $71.9 million at December 31, 2023 compared to $64.5 million at December 31, 2022 for an increase of $7.4 million or 11.4%. The book value per share increased from $35.50 at December 31, 2022 to $39.34 at December 31, 2023 for an increase of $3.84 or 10.8%. The leverage ratio was 10.28%, Tier 1 and Common Equity Tier 1 ratios were both 13.15%, and the total capital ratio was 14.19%.

Income Statement

Net interest income was $25.0 million for the year ended December 31, 2023 compared to $22.0 million for the year ended December 31, 2022. This was an increase of $3 million, or 13.9%. Of the increase of $3 million in net interest income, total interest income, including loan fees recognized, was up by $11.5 million offset by an increase in total interest expense of $8.5 million the year ended December 31, 2023.

The provision for credit losses expensed using the CECL methodology amounted to $262,000 for the year ended December 31, 2023, compared to $504,000 under the previous guidance for the year ended December 31, 2022.

Total non-interest income amounted to $3.3 million for the year ended December 31, 2023 compared to $3.6 million for the year ended December 31, 2022, an decrease of $312,000 or 8.6%. The decrease was primarily from income from life insurance proceeds in 2022 that did not occur in 2023 and lower loan servicing release fees during 2023 due to the rising rate environment and its effect on mortgage activity from lower refinancings. The decrease in loan servicing fees was offset by a net gain on sales of held-for-sale mortgage loans, and increases in service charges on deposits and other noninterest income.

Total non-interest expense increased by $1.5 million or 8.1% to $19.7 million for the year ended December 31, 2023 compared to $18.2 million for the year ended December 31, 2022. The majority of the increased expense year over year was from an increase in salaries and employee benefits of $822,000, an increase in FDIC Insurance expense of $252,000, an increase of foreclosed asset expenses of $111,000, increase in advertising expenses of $71,000, an increase in occupancy and equipment costs of $58,000, and an increase in all other operating expenses of $282,000 which included a donation of property of $95,000. The increases were slightly offset by decrease in legal and professional expenses of $115,000.

The Company’s efficiency ratio, a measure of expense as a percent of total income, decreased to 69.54% for the year ended December 31, 2023 compared to 71.19% for the year ended December 31, 2022.

Other Financial Information

Nonperforming assets, including loans past due 90 days or more, nonaccrual loans, and foreclosed assets, increased from $1.64 million at December 31, 2022 to $2.93 million at December 31, 2023, an increase of $1.29 million. Total non-performing assets as a percentage of total assets were 0.38% and 0.25% at December 31, 2023 and 2022, respectively.

Allowance for credit losses was $6.01 million or 1.02% of total loans at December 31, 2023 compared to $5.81 million or 1.07% of total loans at December 31, 2022. Net charge-offs for the year ended December 31, 2023 were $20,000, compared to Net recoveries of $64,000 year ended December 31, 2022. The ratios of net charge offs to average loans outstanding were 0.003% at December 31, 2023 compared to net recoveries of 0.01% at December 31, 2022.

Key Performance Ratios

Return on average assets was 0.95% for the year ended December 31, 2023, an increase compared to 0.85% for the year ended December 31, 2023. Return on average equity increased from 8.38% for the year ended December 31, 2022 to 10.02% for the year ended December 31, 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)
	December 31
	2023			2022
ASSETS
Cash and cash equivalents	$	104,961		$	42,410
Investment securities		38,146			28,121
Loans, net		587,213			537,932
Other assets		35,519			34,855
TOTAL ASSETS	$	765,839		$	643,318
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits	$	680,112		$	560,383
Short-term borrowings		-			6,000
Long-term borrowings		8,454			8,454
Other liabilities		5,405			3,977
Total Liabilities		693,971			578,814
Stockholders' equity		71,868			64,504
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	765,839		$	643,318
Book Value per share	$	39.34		$	35.50

Century Next Financial Corporation and Subsidiary Consolidated Statements of Income (unaudited)
(In thousands, except per share data)
		Years Ended December 31
		2023			2022
Interest Income		$	38,505		$	26,964
Interest Expense			13,461			4,972
Net Interest Income			25,044			21,992
Provision for Credit Losses			262			504
Net Interest Income after Provision for Credit Losses			24,782			21,488
Noninterest Income			3,333			3,645
Noninterest Expense			19,733			18,252
Income Before Taxes			8,382			6,881
Provision For Income Taxes			1,627			1,658
NET INCOME		$	6,755		$	5,223
EARNINGS PER SHARE
Basic		$	3.78		$	2.94
Diluted		$	3.78		$	2.94

Century Next Financial Corporation Contact Information:

William D. Hogan, President & Chief Executive Officer
Mark A. Taylor, CPA CGMA, Executive Vice President & Chief Financial Officer

Administrative Office

505 North Vienna Street
Ruston, LA 71270  

Phone: (318) 255-3733

Company Website: www.cnext.bank

 

FAQ

What is the ticker symbol for Century Next Financial Corporation?

The ticker symbol for Century Next Financial Corporation is CTUY.

What was the net income after tax for Century Next Financial Corporation for the year ended December 31, 2023?

The net income after tax for the year ended December 31, 2023 was $6.75 million.

What was the percentage increase in net income after tax for Century Next Financial Corporation from the previous year?

The net income after tax increased by 29.3% from the previous year.

What was the total assets of Century Next Financial Corporation at December 31, 2023?

The total assets were $765.8 million at December 31, 2023.

What was the percentage increase in total assets for Century Next Financial Corporation from the previous year?

The total assets increased by 19.0% from the previous year.

What was the total net loans at December 31, 2023 for Century Next Financial Corporation?

The total net loans at December 31, 2023 were $587.2 million.

What was the total deposits at December 31, 2023 for Century Next Financial Corporation?

The total deposits at December 31, 2023 were $680.1 million.

What was the increase in total deposits for Century Next Financial Corporation from the previous year?

The total deposits increased by 21.4% from the previous year.

Where is Century Next Bank headquartered?

Century Next Bank is headquartered in Ruston, Louisiana.