Century Next Financial Corporation Reports 1st Quarter 2022 Results

RUSTON, La., April 25, 2022 (GLOBE NEWSWIRE) -- Century Next Financial Corporation (the “Company”) (OTCQX: CTUY), the holding company of Century Next Bank, with $559.4 million in assets, today announced financial results for the 1^st quarter ended March 31, 2022.

Financial Performance

For the three months ended March 31, 2022, the Company had net income after tax of $1.1 million compared to net income of $1.3 million for the three months ended March 31, 2021, a decrease of $195,000 or 15.2%. Earnings per share (EPS) for the three months ended March 31, 2022 were $0.62 per basic and diluted share compared to $0.74 per basic and $0.73 per diluted share reported for the three months ended March 31, 2021.

Balance Sheet

Overall, total assets increased by $5.9 million or 1.1% to $559.4 million at March 31, 2022 compared to $553.5 million at December 31, 2021.

The largest component of assets, loans, net of deferred fees and costs and the allowance for loan losses, including loans held for sale, increased $25.9 million or 5.9% for the three months ended March 31, 2022 compared to December 31, 2021. Total net loans at March 31, 2022 were $463.2 million compared to $437.3 million at December 31, 2021. Of total net loans outstanding for each period, Paycheck Protection Program (PPP) Loans were $2.3 million at March 31, 2022 compared to $4.3 million at December 31, 2021. Loans secured by commercial real estate were the primarily driver of loan growth with an increase of $16.2 million for the three months ended March 31, 2022. Loans secured by multi-family properties, residential construction, residential 1-4 family, commercial non-real estate, other land, and agricultural land increased a total of $10.3 million for the three months ended March 31, 2022. The increases were offset by a combined decrease of $523,000 in residential 1-4 family - held for sale, home equity lines of credit, other agricultural loans, and consumer loans for the three months ended March 31, 2022.

Total deposits at March 31, 2022 increased $5.1 million or 1.1% to $479.6 million compared to $474.5 million at December 31, 2021. Interest-bearing checking, noninterest-bearing checking, and savings accounts increased by a combined total of $9.2 million for the three months ended March 31, 2022. The increases were offset by a combined decrease of $4.1 million in time deposits and money market accounts for the three months ended March 31, 2022.

Total long-term borrowings remained the same at $14.5 million at March 31, 2022 and December 31, 2021.

Income Statement

Net interest income was $5.20 million for the three months ended March 31, 2022 compared to $5.23 million for the three months ended March 31, 2021. This was an decrease of $29,000, or 0.6%. PPP loan fees included in interest income decreased from $456,000 for the three months ended March 31, 2021 compared to $74,000 for the three months ended March 31, 2022 for a net reduction of $382,000 in PPP loan fees for the comparative quarterly period.

The provision for loan losses amounted to $126,000 for the three months ended March 31, 2022, compared to $202,000 for the three months ended March 31, 2021. The decrease reflects the analysis of projected inherent losses, risk factors, and credit trends.

Total non-interest income amounted to $918,000 for the three months ended March 31, 2022 compared to $952,000 for the three months ended March 31, 2021, a decrease of $34,000 or 3.6%. Service charges on deposits and other income increased by $149,000 while income from mortgage activity decreased by $183,000.

Total non-interest expense increased by $239,000 or 5.5% to $4.6 million for the three months ended March 31, 2022 compared to $4.3 million for the three months ended March 31, 2021. The largest component contributing to the increase was an increase in salaries and employee benefits of $110,000 for the three months ended March 31, 2022 as compared to the same period in 2021. Stock incentive plan expense related to grants of new options and equity awards increased $107,000 for the three months ended March 31, 2022 compared to the same period in 2021.

The Company’s efficiency ratio, a measure of expense as a percent of total income, increased to 74.81% for the year three months ended March 31, 2022 compared to 70.18% for the three months ended March 31, 2021.

Other Financial Information

Nonperforming assets, including loans past due 90 days or more, nonaccrual loans, and other foreclosed assets, increased from $1.15 million at December 31, 2021 to $1.97 million at March 31, 2022, an increase of $826,000. Total non-performing assets were 0.35% and 0.21% of totals assets as of March 31, 2022 and December 31, 2021, respectively.

Allowance for loan and lease losses was $5.42 million or 1.16% of total loans at March 31, 2022 compared to $5.24 million or 1.18% of total loans at December 31, 2021. Net recoveries for the three months ended March 31, 2022 were $57,000, compared to the net charge-off of $57,000 for the three months ended March 31, 2021. The ratio of net recoveries to average loans outstanding was 0.01% at March 31, 2022 compared to the ratio of net charge-offs to average loans outstanding was 0.01% for the same period of 2021.

Dividend Declaration

The Board of Directors has approved a cash dividend of $0.30 per share payable on June 7, 2022 to shareholders of record as of May 24, 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 four 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.

On February 28, 2022, the Company closed its drive-through location with limited services in Fountain Hill, Arkansas.

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)

	March 31, 2022			December 31, 2021
ASSETS
Cash and cash equivalents	$	44,034		$	72,112
Investment securities		18,205			14,414
Loans, net		463,198			437,307
Other assets		33,943			29,637
TOTAL ASSETS	$	559,380		$	553,470
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits	$	479,553		$	474,479
Long-term borrowings		14,454			14,454
Other liabilities		4,330			4,229
Total Liabilities		498,337			493,162
Stockholders' equity		61,043			60,308
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	559,380		$	553,470
Book Value per share	$	33.72		$	33.36

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

(In thousands, except per share data)

		Three Months Ended March 31
			2022			2021
Interest Income		$	5,760		$	5,937
Interest Expense			564			712
Net Interest Income			5,196			5,225
Provision for Loan Losses			126			202
Net interest income after provision for loan losses			5,070			5,023
Noninterest Income			918			952
Noninterest Expense			4,574			4,335
Income Before Taxes			1,414			1,640
Provision For Income Taxes			322			353
NET INCOME		$	1,092		$	1,287
EARNINGS PER SHARE
Basic		$	0.62		$	0.74
Diluted		$	0.62		$	0.73

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