Century Next Financial Corporation Reports 3nd Quarter 2024 Results

Rhea-AI Summary

Century Next Financial (OTCQX: CTUY), holding company of Century Next Bank, reported strong financial results for Q3 2024. Net income increased 59.8% to $3.02 million for the quarter, with EPS rising to $1.67 from $1.06 year-over-year. For the nine months ended September 30, 2024, net income grew 93.4% to $8.75 million.

The company's total assets increased 12.0% to $857.7 million, with significant growth in cash, cash equivalents, and investment securities. Deposits grew 11.8% to $760.4 million, driven by increases in noninterest-bearing and interest-bearing checking accounts. Net interest income rose 30.0% for the quarter and 34.4% for the nine-month period, with improved net interest margin. The efficiency ratio decreased substantially, indicating better operational performance.

Positive

• Net income increased 59.8% to $3.02 million for Q3 2024
• EPS rose to $1.67 from $1.06 year-over-year
• Total assets grew 12.0% to $857.7 million
• Deposits increased 11.8% to $760.4 million
• Net interest income rose 30.0% for the quarter
• Efficiency ratio improved significantly to 56.38% for Q3 2024
• Net recoveries of $67,000 for the nine months ending September 30, 2024

Negative

• Nonperforming assets increased to $5.77 million, or 0.67% of total assets
• Provision for credit losses of $270,000 expensed in Q3 2024
• Non-interest expense increased by 5.5% to $5.25 million for Q3 2024

RUSTON, La., Oct. 22, 2024 (GLOBE NEWSWIRE) --

Century Next Financial Corporation (the “Company”) (OTCQX: CTUY), the holding company of Century Next Bank, with $857.7 million in assets, today announced financial results for the 3^rd quarter ended September 30, 2024.

Financial Performance

For the three months ended September 30, 2024, the Company had net income after tax of $3.02 million compared to net income of $1.89 million for the three months ended September 30, 2023, an increase of $1.13 million or 59.8%. Earnings per share (EPS) for the three months ended September 30, 2024 were $1.67 per basic and diluted share compared to $1.06 per basic and diluted share reported for the three months ended September 30, 2023.

For the nine months ended September 30, 2024, the Company had net income after tax of $8.75 million compared to net income of $4.52 million for the nine months ended September 30, 2023, an increase of $4.22 million or 93.4%. Earnings per share (EPS) for the nine months ended September 30, 2024 were $4.85 per basic and diluted share compared to $2.53 per basic and diluted share reported for the nine months ended September 30, 2023.

Balance Sheet

Overall, total assets increased by $91.8 million or 12.0% to $857.7 million at September 30, 2024 compared to $765.9 million at December 31, 2023.  

Total cash and cash equivalents increased from $105.0 million at December 31, 2023 to $139.2 million at September 30, 2024 for an increase of $34.2 million or 32.6%. Investment securities, primarily available-for-sale, increased by $52.9 million to $89.0 million at September 30, 2024 from $36.1 million at December 31, 2023. The growth in cash and cash equivalents and available-for-sale investment securities for the nine months ending September 30, 2024 continues to add strength to the Company’s liquidity position.

Loans, net of deferred fees and costs and allowance for credit losses, including loans held for sale, increased $3.7 million or 0.6% for the nine months ended September 30, 2024 compared to December 31, 2023. Total net loans at September 30, 2024 were $590.9 million compared to $587.2 million at December 31, 2023. Of total net loans outstanding for the nine-month ended September 30, 2024, loans secured by commercial real estate increased $10.5 million followed by an increase of $4.3 million in residential construction, and a combined increase of $505,000 in land loans and home equity lines of credit. The increases were offset by decreases of $6.8 million in agricultural real estate loans, $1.6 million in commercial loans, $1.4 million in residential 1-4 family loans, $654,000 in residential 1-4 family - held for sale, $355,000 in multi-family real estate loans, $310,000 in consumer loans and $55,000 in agricultural non-real estate loans for the nine months ended September 30, 2024.  

Deposit growth was strong for the nine months ended September 30, 2024 as total deposits increased by $80.3 million or 11.8% to $760.4 million at September 30, 2024 compared to $680.1 million at December 31, 2023. Noninterest-bearing checking increased $83.9 million, interest-bearing checking increased $6.6 million, and money market increased $383,000 for the nine months ended September 30, 2024. The increases were offset by decreases of $8.1 million in time deposits and $2.5 million in savings accounts for the nine months ended September 30, 2024.

Total long-term borrowings remained the same at $8.5 million at September 30, 2024 and December 31, 2023.

Income Statement

Net interest income was $8.5 million for the three months ending September 30, 2024 compared to $6.5 million for the three months ending September 30, 2023 for an increase of $2.0 million, or 30.0%. Net interest income was $24.2 million for the nine months ending September 30, 2024 compared to $18.0 million for the nine months ending September 30, 2023 for an increase of $6.2 million, or 34.4%.

Several key operating ratios increased for the three- and nine-month periods ending September 30, 2024 compared to the same periods ending September 30, 2023 as displayed in the following table:

	Three Months Ended September 30								Nine Months Ended September 30
Select Operating Ratios		2024				2023				2024				2023
Average Yield on Interest-Earning Assets		6.14	%			5.89	%			6.14	%			5.57	%
Average Cost of Interest-Bearing Liabilities		3.45	%			3.16	%			3.41	%			2.77	%
Net Interest Margin		4.19	%			3.80	%			4.15	%			3.63	%

The increase in yield on earning assets and cost of interest-bearing liabilities were both the result of continuing increases in rates from new and renewing assets and liabilities over the comparative periods. The net interest margin improved significantly in both the three- and nine-month periods ending September 30, 2024 compared to the same periods in 2023.

For the three months ending September 30, 2024, a provision for credit losses of $270,000 was expensed. No provision for credit losses was expensed for the three months ending September 30, 2023. For the nine months ending September 30, 2024, a provision for credit losses of $420,000 compared to $262,000 was expensed for the nine months ending September 30, 2023.

Total non-interest income was $846,000 for the three months ending September 30, 2024 compared to $869,000 for the three months ending September 30, 2023, a decrease of $23,000 or 2.6%. Total non-interest income was $2.57 million for the nine months ending September 30, 2024 compared to $2.51 million for the nine months ending September 30, 2023, an increase of $65,000 or 2.6%. The increases in non-interest income for the three- and nine-month periods ending September 30, 2024 were primarily from service charges on deposits offset by loan servicing release fees, net gain on sale of loans, other income, and losses on sale of foreclosed assets as compared to the same periods in 2023.

Total non-interest expense increased by $275,000 or 5.5% to $5.25 million for the three months ending September 30, 2024 compared to $4.98 million for the three months ending September 30, 2023. Total non-interest expense increased by $789,000 or 5.4% to $15.43 million for the nine months ending September 30, 2024 compared to $14.64 million for the nine months ending September 30, 2023. The increases in both the three- and nine-month periods ending September 30, 2024 was primarily due to increases in salaries and benefits, data processing, audit and examination fees, advertising, and various other operating expenses as compared to the same periods in 2023.

The Company’s efficiency ratio, a measure of expense as a percent of total income, decreased substantially to 56.38% for the three months ending September 30, 2024 compared to 67.43% for the three months ending September 30, 2023. For the nine months ending September 30, 2024, the efficiency ratio decreased to 57.67% compared to 71.41% for the nine months ending September 30, 2023. The increase in net interest income, as previously discussed above, for the comparative periods was the primarily driver of this reduction of the efficiency ratio.

Other Financial Information

Nonperforming assets, including loans past due 90 days or more, nonaccrual loans, and other foreclosed assets, increased from $2.93 million at December 31, 2023 to $5.77 million at September 30, 2024, an increase of $2.84 million. Total non-performing assets were 0.67% and 0.38% of totals assets as of September 30, 2024 and December 31, 2023, respectively.  

Allowance for credit losses under CECL was $6.54 million or 1.09% of total loans at September 30, 2024 compared to $6.05 million or 1.02% of total loans at December 31, 2023. Net recoveries for the nine months ending September 30, 2024 were $67,000, compared net charge-offs of $32,000 for the nine months ending September 30, 2023. The ratio of net recoveries to average loans outstanding was 0.011% at September 30, 2024 compared to the ratio of net charge-offs to average loans outstanding was 0.006% for the same period of 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)
	September 30, 2024			December 31, 2023
ASSETS
Cash and cash equivalents	$	139,167		$	104,961
Investment securities		91,137			38,146
Loans, net		590,864			587,213
Other assets		36,500			35,530
TOTAL ASSETS	$	857,668		$	765,850
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits	$	760,398		$	680,112
Long-term borrowings		8,454			8,454
Other liabilities		6,790			5,391
Total Liabilities		775,642			693,957
Stockholders' equity		82,026			71,893
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	857,668		$	765,850
Book Value per share	$	44.72		$	39.35
Tangible Book Value per share	$	42.96		$	37.48

Century Next Financial Corporation and Subsidiary Consolidated Statements of Income (unaudited)
(In thousands, except per share data)
	Three Months Ended September 30								Nine Months Ended September 30
		2024				2023				2024				2023
Interest Income	$	12,412			$	10,104			$	35,842			$	27,608
Interest Expense		3,941				3,590				11,651				9,608
Net Interest Income		8,471				6,514				24,191				18,000
Provision for Credit Losses		270				0				420				262
Net Interest Income after Provision for Credit Losses		8,201				6,514				23,771				17,738
Noninterest Income		846				869				2,571				2,506
Noninterest Expense		5,253				4,978				15,433				14,644
Income Before Taxes		3,794				2,405				10,909				5,600
Provision For Income Taxes		773				515				2,163				1,078
NET INCOME	$	3,021			$	1,890			$	8,746			$	4,522
EARNINGS PER SHARE
Basic	$	1.67			$	1.06			$	4.85			$	2.53
Diluted	$	1.67			$	1.06			$	4.85			$	2.53
Key Ratios:
Annualized Return on Average Assets										1.44	%			0.87	%
Annualized Return on Average Equity										15.31	%			9.08	%
Annualized Net Interest Margin										4.15	%			3.63	%
Efficiency Ratio										57.67	%			71.41	%

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

FAQ

What was Century Next Financial 's (CTUY) net income for Q3 2024?

Century Next Financial (CTUY) reported a net income of $3.02 million for Q3 2024, a 59.8% increase from $1.89 million in Q3 2023.

How much did Century Next Financial 's (CTUY) total assets grow in Q3 2024?

Century Next Financial 's (CTUY) total assets increased by $91.8 million or 12.0% to $857.7 million as of September 30, 2024, compared to $765.9 million at December 31, 2023.

What was the change in Century Next Financial 's (CTUY) deposit base for Q3 2024?

Century Next Financial (CTUY) reported strong deposit growth, with total deposits increasing by $80.3 million or 11.8% to $760.4 million as of September 30, 2024, compared to $680.1 million at December 31, 2023.

How did Century Next Financial 's (CTUY) efficiency ratio change in Q3 2024?

Century Next Financial 's (CTUY) efficiency ratio improved significantly, decreasing to 56.38% for Q3 2024 compared to 67.43% for Q3 2023, indicating better operational performance.