Century Next Financial Corporation Reports Record 1st Quarter 2021 Results

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Century Next Financial Corporation (OTCQX: CTUY) reported a strong financial performance for Q1 2021, with net income rising to $1.29 million, a 28.2% increase from $1.0 million in Q1 2020. Earnings per share reached $0.78 basic and $0.77 diluted. Total assets climbed to $538.0 million, boosted by a $12.1 million increase in net loans. Total deposits also rose by $20.3 million. However, nonperforming assets increased to $5.67 million, reflecting a rise in loans past due. A cash dividend of $0.28 per share and a 5% stock dividend were declared, payable on June 8, 2021.

Positive

• Net income increased by 28.2% to $1.29 million.
• Earnings per share rose to $0.78 basic and $0.77 diluted.
• Total assets increased by 4.5% to $538.0 million.
• Net loans rose by $12.1 million or 2.9%.
• Total deposits increased by $20.3 million or 4.6%.
• Net interest income grew by 4.5% to $5.23 million.
• Non-interest income rose by 9.9% to $952,000.
• Efficiency ratio improved to 70.2%.

Negative

• Nonperforming assets increased by $950,000 to $5.67 million.
• Nonperforming assets as a percentage of total assets rose to 1.05%.
• Net charge-offs increased from $20,000 to $57,000.

RUSTON, La., April 21, 2021 (GLOBE NEWSWIRE) -- Century Next Financial Corporation (the “Company”) (OTCQX: CTUY), the holding company of Century Next Bank, with $538.0 million in assets, today announced financial results for the 1^st quarter ended March 31, 2021.

Financial Performance

For the three months ended March 31, 2021, the Company had net income after tax of $1.29 million compared to net income of $1.0 million for the three months ended March 31, 2020, an increase of $283,000 or 28.2%. Earnings per share (EPS) for the three months ended March 31, 2021 were $0.78 per basic and $0.77 per diluted share compared to $0.62 per basic and $0.61 per diluted share reported for the three months ended March 31, 2020.  

Balance Sheet

Overall, total assets increased by $22.9 million or 4.5% to $538.0 million at March 31, 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 $12.1 million or 2.9% for the three months ended March 31, 2021 compared to December 31, 2020. Total net loans at March 31, 2021 were $432.5 million compared to $420.4 million at December 31, 2020.

Total deposits at March 31, 2021 increased $20.3 million or 4.6% to $461.4 million compared to $441.1 million at December 31, 2020.  

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

Income Statement

Net interest income was $5.23 million for the three months ended March 31, 2021 compared to $5.0 million for the three months ended March 31, 2020. This was an increase of $224,000, or 4.5%.

The provision for loan losses amounted to $202,000 for the three months ended March 31, 2021, compared to $362,000 for the three months ended March 31, 2020. The decrease reflects decreases in the inherent losses in the total portfolio and decreased risk awareness and identification of potential credit trend changes.

Total non-interest income amounted to $952,000 for the three months ended March 31, 2021 compared to $866,000 for the three months ended March 31, 2020, an increase of $86,000 or 9.9%.

Total non-interest expense increased by $194,000 or 4.7% to $4.34 million for the three months ended March 31, 2021 compared to $4.14 million for the three months ended March 31, 2020.

The Company’s efficiency ratio, a measure of expense as a percent of total income, decreased to 70.2% for the year three months ended March 31, 2021 compared to 70.6% for the three months ended March 31, 2020.

Other Financial Information

Nonperforming assets, including loans past due 90 days or more, nonaccrual loans, and other foreclosed assets, increased from $4.72 million at December 31, 2020 to $5.67 million at March 31, 2021, an increase of $950,000. Total non-performing assets were 1.05% and 0.92% of totals assets as of March 31, 2021 and December 31, 2020, respectively.   The increase was primarily due to an increase in accruing loans 90 days or more past due.

Allowance for loan losses was $4.69 million or 1.07% of total loans at March 31, 2021 compared to $4.55 million or 1.07% of total loans at December 31, 2020. Net charge-offs for the three months ended March 31, 2021 were $57,000 compared to net charge-offs of $20,000 at March 31, 2020. The ratios of net charge-offs to average loans outstanding were 0.01% and 0.005% at March 31, 2021 and March 31, 2020, respectively.

Dividends Declaration

The Board of Directors has approved a cash dividend of $0.28 per share and a 5% stock dividend each payable on June 8, 2021 to shareholders of record as of May 25, 2021. The stock dividend will increase the number of shares currently outstanding by approximately 84,220 shares bringing total outstanding shares to approximately 1,768,624. The final number of shares outstanding may vary slightly for any newly issued and fractional shares that will be paid in cash.

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)

	December 31
	March 31, 2021			December 31, 2020
ASSETS
Cash and cash equivalents	$	64,493		$	61,426
Investment securities		9,820			2,558
Loans, net		432,518			420,397
Other assets		31,157			30,689
TOTAL ASSETS	$	537,988		$	515,070
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits	$	461,416		$	441,075
Long-term borrowings		14,454			14,454
Other liabilities		5,211			4,021
Total Liabilities		481,081			459,550
Stockholders' equity		56,907			55,520
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	537,988		$	515,070
Book Value per share	$	33.67		$	32.90

Century Next Financial Corporation and Subsidiary
Consolidated Statements of Income (unaudited)

(In thousands, except per share data)

		Three Months Ended March 31
			2021			2020
Interest Income		$	5,937		$	6,290
Interest Expense			712			1,289
Net Interest Income			5,225			5,001
Provision for Loan Losses			202			362
Net interest income after provision for loan losses			5,023			4,639
Noninterest Income			952			866
Noninterest Expense			4,335			4,141
Income Before Taxes			1,640			1,364
Provision For Income Taxes			353			360
NET INCOME		$	1,287		$	1,004
EARNINGS PER SHARE
Basic		$	0.78		$	0.62
Diluted		$	0.77		$	0.61

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 financial results for Century Next Financial Corporation (CTUY) in Q1 2021?

In Q1 2021, Century Next Financial reported a net income of $1.29 million, up 28.2% from Q1 2020, with earnings per share of $0.78.

What is the total asset value for Century Next Financial Corporation (CTUY) as of March 31, 2021?

As of March 31, 2021, total assets for Century Next Financial were $538.0 million.

How much did deposits increase for Century Next Financial Corporation (CTUY) in Q1 2021?

Deposits increased by $20.3 million or 4.6% in Q1 2021.

What dividends were declared by Century Next Financial Corporation (CTUY) in 2021?

A cash dividend of $0.28 per share and a 5% stock dividend were declared, payable on June 8, 2021.

What was the increase in nonperforming assets reported by Century Next Financial Corporation (CTUY)?

Nonperforming assets increased by $950,000 to $5.67 million as of March 31, 2021.