Century Next Financial Corporation Reports Year-End 2021 Results

Rhea-AI Summary

Century Next Financial Corporation (OTCQX: CTUY) reported its financial results for the fiscal year ending December 31, 2021. The company's net income fell to $4.78 million, down 8.3% from $5.21 million in 2020. Earnings per share (EPS) also declined to $2.73 from $3.03. However, total assets increased 7.5%, reaching $553.5 million. Notably, loans rose by 4.0% to $437.3 million, while deposits surged 7.6% to $474.5 million. Despite a rise in provisions for loan losses to $2.1 million, the company improved its asset quality significantly.

Positive

• Total assets increased by $38.4 million or 7.5% to $553.5 million.
• Net loans increased by $16.9 million or 4% to $437.3 million.
• Total deposits rose by $33.4 million or 7.6% to $474.5 million.
• Net interest income increased by 5.8% to $21.8 million.

Negative

• Net income decreased by $435,000 or 8.3% to $4.78 million.
• Earnings per share declined from $3.03 to $2.73.
• Provisions for loan losses increased to $2.1 million from $1.4 million.
• Total non-interest income decreased by $337,000 or 8.1%.

RUSTON, La., Jan. 26, 2022 (GLOBE NEWSWIRE) -- Century Next Financial Corporation (the “Company”) (OTCQX: CTUY), the holding company of Century Next Bank, with $553.5 million in assets, today announced financial results for the year ended December 31, 2021.

Financial Performance

For the year ended December 31, 2021, the Company had net income after tax of $4.78 million compared to net income of $5.21 million for the year ended December 31, 2020, a decrease of $435,000 or 8.3%. Earnings per share (EPS) for the year ended December 31, 2021 were $2.73 per basic and diluted share compared to $3.03 per basic and $2.99 per diluted share reported for the year ended December 31, 2020.

Balance Sheet

Overall, total assets increased by $38.4 million or 7.5% to $553.5 million at December 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 $16.9 million or 4.0% for the year ended December 31, 2021 compared to December 31, 2020. Total net loans at December 31, 2021 were $437.3 million compared to $420.4 million at December 31, 2020. Of total net loans outstanding for each year end period, Paycheck Protection Program Loans were $4.3 million at December 31, 2021 compared to $15.2 million at December 31, 2020. Commercial real estate loans was the primarily driver of loan growth with an increase of $31.7 million for the year ended December 31, 2021. Loans secured by multi-family properties, agricultural lands, and other land loans increased a total of $5.1 million. The increases were offset by a combined decrease of $19.2 million in residential 1-4 family - held for sale, other residential 1-4 family, residential construction, home equity lines of credit, commercial non-real estate, other agricultural loans, and consumer loans.

Total deposits at December 31, 2021 increased $33.4 million or 7.6% to $474.5 million compared to $441.1 million at December 31, 2020. Interest-bearing checking accounts increased by $28.3 million making up the majority of deposit growth for 2021. Non-interest bearing checking, money market, and savings accounts increased a combined total of $23.2 million, and time deposits decreased $18.1 million for 2021.

Total long-term borrowings remained the same at $14.5 million at December 31, 2021 and December 31, 2020.

Income Statement

Net interest income was $21.8 million for the year ended December 31, 2021 compared to $20.6 million for the year ended December 31, 2020. This was an increase of $1.2 million, or 5.8%. Included in the increase were $1.54 million of fees earned in 2021 from PPP loans compared to $602,500 fees earned from PPP loans in 2020 for a net increase of fees earned year over year of $934,800. Of the increase of $1.2 million in net interest income, total interest income was down by $100,000 and interest expense decreased $1.3 million for 2021.

The provision for loan losses amounted to $2.1 million for the year ended December 31, 2021, compared to $1.4 million for the year ended December 31, 2020. The increase in provision year over year reflects the one-time addition to the allowance for loan and lease losses in June 2021 as a result of a loss on a large credit. In the second half of 2021, asset quality improved and recoveries increased minimizing the effect to the provision for the year.

Total non-interest income amounted to $3.8 million for the year ended December 31, 2021 compared to $4.2 million for the year ended December 31, 2020, a decrease of $337,000 or 8.1%. This decrease was primarily due to a decrease of loan servicing release fees of $626,000, offset by increases in service charges on deposits of $134,000 and other income of $102,000 and a positive change in net losses on sale of held-for-sale loans and foreclosed assets of $53,000 for the year ended December 31, 2021 compared to the same period in 2020.

Total non-interest expense increased by $585,000 or 3.5% to $17.3 million for the year ended December 31, 2021 compared to $16.7 million for the year ended December 31, 2020. The largest component contributing to the increase was the increase in salaries and employee benefits of $488,000 for the year ended December 31, 2021 as compared to the same period in 2020.

The Company’s efficiency ratio, a measure of expense as a percent of total income, was 67.42% for both years ended December 31, 2021 and 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 $1.15 million at December 31, 2021, a decrease of $3.58 million. Total non-performing assets were 0.21% and 0.92% of totals assets as of December 31, 2021 and December 31, 2020, respectively. This reflects a noted improvement in nonperforming assets year to date in 2021.

Allowance for loan and lease losses was $5.24 million or 1.18% of total loans at December 31, 2021 compared to $4.55 million or 1.07% of total loans at December 31, 2020. Net charge-offs for the year ended December 31, 2021 were $1.4 million, compared to the net charge-off of $325,000 for the year ended December 31, 2020. The ratios of net charge-offs to average loans outstanding were 0.32% and 0.08% at December 31, 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)

	December 31
		2021			2020
ASSETS
Cash and cash equivalents	$	72,112		$	61,426
Investment securities		14,414			2,558
Loans, net		437,307			420,397
Other assets		29,637			30,689
TOTAL ASSETS	$	553,470		$	515,070
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits	$	474,479		$	441,075
Long-term borrowings		14,454			14,454
Other liabilities		4,229			4,021
Total Liabilities		493,162			459,550
Stockholders' equity		60,308			55,520
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	553,470		$	515,070
Book Value per share	$	33.36		$	32.90

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

(In thousands, except per share data)

		Years Ended December 31
			2021			2020
Interest Income		$	24,337		$	24,437
Interest Expense			2,545			3,847
Net Interest Income			21,792			20,590
Provision for Loan Losses			2,095			1,448
Net interest income after provision for loan losses			19,697			19,142
Noninterest Income			3,830			4,167
Noninterest Expense			17,275			16,690
Income Before Taxes			6,252			6,619
Provision For Income Taxes			1,473			1,405
NET INCOME		$	4,779		$	5,214
EARNINGS PER SHARE
Basic		$	2.73		$	3.03
Diluted		$	2.73		$	2.99

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 Century Next Financial Corporation in 2021?

Earnings per share (EPS) for Century Next Financial Corporation in 2021 were $2.73.

How much did net income decrease for Century Next Financial Corporation in 2021?

Net income decreased by $435,000 or 8.3% to $4.78 million in 2021.

What is the total asset value for Century Next Financial Corporation as of December 31, 2021?

As of December 31, 2021, the total asset value was $553.5 million.

Did deposits increase for Century Next Financial Corporation in 2021?

Yes, deposits increased by $33.4 million or 7.6%, totaling $474.5 million.

What notable change occurred in provisions for loan losses for Century Next Financial Corporation in 2021?

Provisions for loan losses rose to $2.1 million, up from $1.4 million in 2020.