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Century Next Financial Corporation Reports Strong Results for 3rd Quarter 2023
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Century Next Financial Corporation announces financial results for the 3rd quarter of 2023
Positive
Net income for the three months ended September 30, 2023, was $1.89 million, an increase of 27.4% compared to the same period in 2022.
Earnings per share for the three months ended September 30, 2023, were $1.06, an increase of 26.2% compared to the same period in 2022.
Total assets increased by 11.4% to $716.5 million at September 30, 2023, compared to December 31, 2022.
Total cash and cash equivalents increased by 69.4% to $71.8 million at September 30, 2023, compared to December 31, 2022.
Total deposits increased by 13.3% to $634.9 million at September 30, 2023, compared to December 31, 2022.
Negative
None.
RUSTON, La., Oct. 19, 2023 (GLOBE NEWSWIRE) -- Century Next Financial Corporation (the “Company”) (OTCQX: CTUY), the holding company of Century Next Bank, with $716.5 million in assets, today announced financial results for the 3rd quarter ended September 30, 2023.
Financial Performance
Net income for the three months ended September 30, 2023 was $1.89 million compared to net income of $1.48 million for the three months ended September 30, 2022, an increase of $406,000 or 27.4%. Earnings per share (EPS) for the three months ended September 30, 2023 were $1.06 per basic and diluted share compared to $0.84 per basic and diluted share reported for the three months ended September 30, 2022.
For the nine months ended September 30, 2023, the Company had net income of $4.52 million compared to net income of $4.06 million for the nine months ended September 30, 2022, an increase of $458,000 or 11.3%. Earnings per share (EPS) for the nine months ended September 30, 2023 were $2.53 per basic and diluted share compared to $2.29 per basic and diluted share reported for the nine months ended September 30, 2022.
Net income and earnings per share improved for the quarter- and year-to-date periods ending September 30, 2023 compared to the same periods ending September 30, 2022.
Balance Sheet
Total assets increased by $73.2 million or 11.4% to $716.5 million at September 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 $71.8 million at September 30, 2023 for an increase of $29.4 million or 69.4%. Investment securities, primarily available for sale, increased by $1.7 million to $27.8 million at September 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 continued robust growth in deposits for the first nine months of 2023. This growth continued to provide added strength to the Company’s liquidity position during the nine months ending September 30, 2023.
Loans, net of deferred fees and costs and the allowance for credit losses, including loans held for sale, increased $41.3 million or 7.7% for the nine months ended September 30, 2023 compared to December 31, 2022. Total net loans at September 30, 2023 were $579.3 million compared to $537.9 million at December 31, 2022. The increase in net loan balances for the nine month period ending September 30, 2023 was primarily from growth in residential 1-4 family, commercial real estate, land, residential construction, commercial non-real estate, and various other loan categories which were up a combined $58.8 million. The increase in loans was offset by a net decrease of $17.2 million in multi-family, consumer, residential 1-4 family held-for-sale, and non-real estate agricultural loans.
Deposit growth remained strong for the nine months ended September 30, 2023 as total deposits increased by $74.5 million or 13.3% to $634.9 million at September 30, 2023 compared to $560.4 million at December 31, 2022. Noninterest-bearing checking increased $120.1 million and interest-bearing checking accounts increased $2.1 million for the nine months ended September 30, 2023. The increases were offset by decreases of $25.3 million in time deposits, primarily from brokered and internet CD maturities of $21.5 million, $12.8 million in money market accounts, and $9.5 million in savings for the nine months ended September 30, 2023.
Short-term borrowings of $6 million matured in September 2023 bringing the balance to zero at September 30, 2023 compared to $6 million at December 31, 2022. Long-term borrowings of $8.5 million remained the same at September 30, 2023 and December 31, 2022.
Income Statement
Net interest income was $6.5 million for the three months ended September 30, 2023 compared to $5.7 million for the three months ended September 30, 2022. This was an increase of $768,000, or 13.4%. Net interest income was $18 million for the nine months ended September 30, 2023 compared to $16.5 million for the nine months ended September 30, 2022. This was an increase of $1.5 million, or 9.0%.
The average rate on earning assets for the three months ended September 30, 2023 increased to 5.89% compared to 4.72% for the three months ended September 30, 2022. The average rate on earning assets for the nine month ended September 30, 2023 increased to 5.57% compared to 4.51% for the nine months ended September 30, 2022. The cost of interest-bearing liabilities for the three months ended September 30, 2023 increased to 3.16% compared to 1.17% for the three months ended September 30, 2022. The cost of interest-bearing liabilities for the nine months ended September 30, 2023 increased to 2.77% compared to 0.81% for the nine months ended September 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 3.80% for the three months ended September 30, 2023 compared to 3.79% for the three months ended September 30, 2022. The net interest margin was 3.63% for the nine months ended September 30, 2023 compared to 3.87% for the nine months ended September 30, 2022.
For the three months ended September 30, 2023, no provision for credit losses was expensed using the CECL methodology compared to $126,000 the three months ended September 30, 2022 under the previous guidance. For the nine months ended September 30, 2023, a provision for credit losses of $262,000 was expensed using the CECL methodology compared to $378,000 for the nine months ended September 30, 2022 under the previous accounting guidance.
Total non-interest income amounted to $869,000 for the three months ended September 30, 2023 compared to $807,000 for the three months ended September 30, 2022, a increase of $62,000 or 7.7%. Total non-interest income amounted to $2.5 million for the nine months ended September 30, 2023 compared to $2.8 million for the nine months ended September 30, 2022, a decrease of $338,000 or 11.9%. The increase in non-interest income for the three-month period ending September 30, 2023 was primarily from increased service charges on deposit and other non-interest income. The decrease in non-interest income for the nine-month period ending September 30, 2023 was primary from the continued reduction of loan servicing release fees from mortgage held-for-sale loans as home mortgage financing activity continued to slow due to increasing mortgage interest rates.
Total non-interest expense increased by $482,000 or 10.7% to $5.0 million for the three months ended September 30, 2023 compared to $4.5 million for the three months ended September 30, 2022. Total non-interest expense increased by $1.1 million or 7.8% to $14.6 million for the nine months ended September 30, 2023 compared to $13.6 million for the nine months ended September 30, 2022 The increases in both the three- and nine-month periods ending September 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, decreased to 67.43% for the three months ended September 30, 2023 compared to 68.61% for the three months ended September 30, 2022. For the nine months ended September 30, 2023, the efficiency ratio increased to 71.41% compared to 70.19% for the nine months ended September 30, 2022.
Other Financial Information
Nonperforming assets, including loans past due 90 days or more, nonaccrual loans, and other foreclosed assets, increased from $1.6 million at December 31, 2022 to $3.1 million at September 30, 2023, a increase of $1.5 million. Total non-performing assets were 0.44% and 0.25% of totals assets as of September 30, 2023 and December 31, 2022, respectively.
Allowance for credit losses under CECL was $6 million or 1.03% of total loans at September 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 charge-offs for the nine months ended September 30, 2023 were $32,000, compared $92,000 net recoveries for the nine months ended September 30, 2022. The ratio of net charge-offs to average loans outstanding was 0.006% at September 30, 2023 compared to the ratio of net recoveries to average loans outstanding was 0.02% 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 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, 2023
December 31, 2022
ASSETS
Cash and cash equivalents
$
71,836
$
42,410
Investment securities
29,851
28,121
Loans, net
579,277
537,932
Other assets
35,529
34,855
TOTAL ASSETS
$
716,493
$
643,318
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits
$
634,899
$
560,383
Short-term borrowings
-
6,000
Long-term borrowings
8,454
8,454
Other liabilities
4,941
3,977
Total Liabilities
648,294
578,814
Stockholders' equity
68,199
64,504
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
$
716,493
$
643,318
Book Value per share
$
37.52
$
35.50
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
2023
2022
2023
2022
Interest Income
$
10,104
$
7,150
$
27,608
$
19,237
Interest Expense
3,590
1,404
9,608
2,729
Net Interest Income
6,514
5,746
18,000
16,508
Provision for Credit Losses
0
126
262
378
Net Interest Income after Provision for Expected Losses
6,514
5,620
17,738
16,130
Noninterest Income
869
807
2,506
2,844
Noninterest Expense
4,978
4,496
14,644
13,584
Income Before Taxes
2,405
1,931
5,600
5,390
Provision For Income Taxes
515
447
1,078
1,326
NET INCOME
$
1,890
$
1,484
$
4,522
$
4,064
EARNINGS PER SHARE
Basic
$
1.06
$
0.84
$
2.53
$
2.29
Diluted
$
1.06
$
0.84
$
2.53
$
2.29
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
