Century Next Financial Corporation Reports 3rd Quarter 2021 Results

Rhea-AI Summary

Century Next Financial Corporation (OTCQX: CTUY) reported financial results for Q3 2021, showing a net income of $1.67 million, up 40.9% from $1.19 million in Q3 2020. Earnings per share reached $0.95, higher than $0.69 a year earlier. However, net income for the nine months ended September 30, 2021, was $3.11 million, down 16.1% from $3.71 million in 2020. Total assets increased by 5% to $541 million, with loans rising 6.95%. Nonperforming assets significantly decreased to $2.15 million, reflecting improved asset quality.

Positive

• Net income for Q3 increased 40.9% to $1.67 million.
• Earnings per share rose to $0.95 from $0.69 year-over-year.
• Total assets grew by 5% to $541 million.
• Total net loans increased by 6.95% to $449.6 million.
• Nonperforming assets decreased from $4.72 million to $2.15 million.

Negative

• Net income for the nine-month period decreased by 16.1% to $3.11 million.
• Earnings per share for the nine-month period fell from $2.16 to $1.78.
• Total non-interest income declined by 5% for the nine months.

RUSTON, La., Oct. 27, 2021 (GLOBE NEWSWIRE) -- Century Next Financial Corporation (the “Company”) (OTCQX: CTUY), the holding company of Century Next Bank, with $541.0 million in assets, today announced financial results for the 3^rd quarter ended September 30, 2021.

Financial Performance

For the three months ended September 30, 2021, the Company had net income after tax of $1.67 million compared to net income of $1.19 million for the three months ended September 30, 2020, a increase of $485,000 or 40.9%. Earnings per share (EPS) for the three months ended September 30, 2021 were $0.95 per basic and diluted share compared to $0.69 per basic and $0.68 per diluted share reported for the three months ended September 30, 2020.

For the nine months ended September 30, 2021, Century Next Financial Corporation (the “Company”) had net income after tax of $3.11 million compared to net income of $3.71 million for the nine months ended September 30, 2020, a decrease of $598,000 or 16.1%. Earnings per share (EPS) for the nine months ended September 30, 2021 were $1.78 per basic and diluted share compared to $2.16 per basic and $2.13 per diluted share reported for the nine months ended September 30, 2020.

The increase in net income for the three months ended September 30, 2021 as compared to the same three-month period in 2020 was primarily due to a $347,000 or 5.9% year over year increased interest income and fees for loans and a reduction of interest expense of $256,000 or 29.9% year over year.

The decrease in earnings per share for the year-to-date period in 2021 as compared to the same period in 2020 was due to a one-time addition of $1.42 million to the allowance for loan and lease losses (ALLL) reserve recorded in the 2^nd quarter of 2021. However, earnings improvement in the 3^rd quarter of 2021 helped to lower the decrease for the year-to-date period through the end of the 2^nd quarter of 2021 of $1.08 million as compared to the same period in 2020 to a $598,000 decrease as reported above for the year-to-date period through the 3^rd quarter of 2021.

Balance Sheet

Overall, total assets increased by $25.9 million or 5.0% to $541.0 million at September 30, 2021 compared to $515.1 million at December 31, 2020.

The largest component of assets, loans, net of deferred fees and costs and the allowance for loan losses, including loans held for sale, increased $29.2 million or 6.95% for the nine months ended September 30, 2021 compared to December 31, 2020. Total net loans at September 30, 2021 were $449.6 million compared to $420.4 million at December 31, 2020.

Total deposits at September 30, 2021 increased $22.4 million or 5.1% to $463.5 million compared to $441.1 million at December 31, 2020.

Total long-term borrowings remained the same at $14.45 million at September 30, 2021 and December 31, 2020.

Income Statement

Net interest income was $5.7 million for the three months ended September 30, 2021 compared to $5.1 million for the three months ended September 30, 2020. This was an increase of $619,000, or 12.2%. The increase in net interest income for the three-month period, as compared to the same period in 2020, was primarily from an increase in interest income on loans and other earning assets of $363,000 and a decrease in interest expense on deposits and borrowings of $256,000.

For the nine months ended September 30, 2021, net interest income was $16.4 million compared to $15.3 million for the nine months ended September 30, 2020. This was an increase of $1.1 million, or 7.3%. The increase in net interest income for the nine-month period was primarily from a decrease in interest expense on deposits and borrowings.

The provision for loan losses amounted to $202,000 for the three months ended September 30, 2021, compared to $362,000 for the three months ended September 30, 2020. For the nine months ended September 30, 2021, provision for loan losses amounted to $2.0 million compared to $1.1 million for the nine months ended September 30, 2020. The increase in provision for the nine-month periods reflect the one-time addition to the ALLL as mentioned under the Financial Performance section.

Total non-interest income amounted to $936,000 for the three months ended September 30, 2021 compared to $962,000 for the three months ended September 30, 2020, a decrease of $26,000 or 2.7%. For the nine months ended September 30, 2021, total non-interest income amounted to $2.83 million compared to $2.98 million for the nine months ended September 30, 2020, a decrease of $148,000 or 5.0%. The decreases for the three- and nine-month periods ended September 30, 2021 was primarily due to decreased loan servicing release fees from the held-for-sale loan activity.

Total non-interest expense increased by $137,000 or 3.3% to $4.33 million for the three months ended September 30, 2021 compared to $4.19 million for the three months ended September 30, 2020. For the nine months ended September 30, 2021, total non-interest expense increased by $633,000 or 5.1% to $13.04 million compared to $12.41 million for the nine months ended September 30, 2020. The increase in both the three- and nine-month periods ending September 30, 2021 was primarily due to increases in salaries and benefits and other operating expense as compared to the same periods in 2020.

The Company’s efficiency ratio, a measure of expense as a percent of total income, decreased to 65.28% for the three months ended September 30, 2021 compared to 69.43% for the three months ended September 30, 2020. For the nine months ended September 30, 2021, the efficiency ratio decreased to 67.88% compared to 68.00% for the nine months ended September 30, 2020.

Other Financial Information

Nonperforming assets, including loans past due 90 days or more, nonaccrual loans, and other foreclosed assets, decreased from $4.72 million at December 31, 2020 to $2.15 million at September 30, 2021, a decrease of $2.57 million. Total non-performing assets were 0.40% and 0.92% of totals assets as of September 30, 2021 and December 31, 2020, respectively. This reflects a noted improvement in nonperforming assets year to date in 2021.

Allowance for loan losses was $4.88 million or 1.07% of total loans at September 30, 2021 compared to $4.55 million or 1.07% of total loans at December 31, 2020. Net recovery for the three-month period ended September 30, 2021 was $91,000, compared to the net recovery of $220,000 for the three-month period ended September 30, 2020. Net charge-off for the nine-month period ended September 30, 2021 was $1.69 million, compared to net charge-off of $141,000 for the nine-month period ended September 30, 2020. The ratios of net charge-offs to average loans outstanding were 0.38% and 0.03% at September 30, 2021 and 2020, respectively.

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 four locations in Arkansas including two banking offices in Crossett, one banking office in Hamburg, and one drive-through location with limited services in Fountain Hill. 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, 2021				December 31, 2020
ASSETS
Cash and cash equivalents		$	56,268			$	61,426
Investment securities			4,471				2,558
Loans, net			449,622				420,397
Other assets			30,594				30,689
TOTAL ASSETS		$	540,955			$	515,070
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits		$	463,497			$	441,075
Long-term borrowings			14,454				14,454
Other liabilities			4,435				4,021
Total Liabilities			482,386				459,550
Stockholders' equity			58,569				55,520
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		$	540,955			$	515,070
Book Value per share		$	32.40			$	32.90

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
		2021				2020				2021				2020
Interest Income	$	6,298			$	5,935			$	18,355			$	18,337
Interest Expense		600				856				1,972				3,067
Net Interest Income		5,698				5,079				16,383				15,270
Provision for Loan Losses		202				362				2,028				1,086
Net interest income after provision for loan losses		5,496				4,717				14,355				14,184
Noninterest Income		936				962				2,828				2,976
Noninterest Expense		4,331				4,194				13,041				12,408
Income Before Taxes		2,101				1,485				4,142				4,752
Provision For Income Taxes		431				300				1,030				1,042
NET INCOME	$	1,670			$	1,185			$	3,112			$	3,710
EARNINGS PER SHARE
Basic	$	0.95			$	0.69			$	1.78			$	2.16
Diluted	$	0.95			$	0.68			$	1.78			$	2.13

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 were the earnings per share for CTUY in Q3 2021?

Earnings per share for Century Next Financial Corporation (CTUY) in Q3 2021 were $0.95.

How much did net income increase for CTUY in Q3 2021?

Net income for CTUY increased by 40.9% to $1.67 million in Q3 2021.

What is the total asset value for CTUY as of September 30, 2021?

Total assets for Century Next Financial Corporation (CTUY) were $541 million as of September 30, 2021.

How did nonperforming assets change for CTUY?

Nonperforming assets for CTUY decreased from $4.72 million at the end of 2020 to $2.15 million by September 30, 2021.

What was the net income for CTUY for the nine months ended September 30, 2021?

Net income for Century Next Financial Corporation (CTUY) for the nine-month period was $3.11 million, a decrease of 16.1%.