Century Next Financial Corporation Reports Strong 2nd Quarter 2025 Results

Rhea-AI Summary

Century Next Financial Corporation (OTCQX: CTUY) reported exceptional Q2 2025 financial results, with net income reaching $3.94 million, a 28.5% increase from Q2 2024. The company achieved record-breaking earnings per share of $2.16 basic and $2.14 diluted.

Total assets grew to $923.6 million, up 6.24% from December 2024. The bank demonstrated strong deposit growth of $45.9 million, reaching $816.6 million. Net interest income increased by 19.8% to $9.73 million for Q2 2025, while maintaining an improved efficiency ratio of 51.35%.

The bank's asset quality remained strong with nonperforming assets at just 0.37% of total assets, and the allowance for credit losses stood at 1.06% of total loans.

Positive

• Net income increased 28.5% year-over-year to $3.94 million in Q2 2025
• Record-breaking EPS of $2.16 basic and $2.14 diluted in Q2 2025
• Strong deposit growth of $45.9 million (6% increase) to $816.6 million
• Improved efficiency ratio to 51.35% from 55.90% year-over-year
• Net interest margin improved to 4.40% from 4.16% year-over-year
• Nonperforming assets decreased to 0.37% of total assets from 0.46%

Negative

• Net charge-offs increased to $234,000 compared to net recoveries of $39,000 in 2024
• Non-interest income remained relatively flat at $916,000
• Non-interest expenses increased 8.2% to $5.47 million
• Average yield on interest-earning assets declined to 5.99% from 6.16%

RUSTON, La., July 18, 2025 (GLOBE NEWSWIRE) -- Century Next Financial Corporation (the “Company”) (OTCQX: CTUY), the holding company of Century Next Bank, with $923.6 million in assets, today announced financial results for the 2^nd quarter ended June 30, 2025.

Financial Performance

For the three months ended June 30, 2025, the Company had net income after tax of $3.94 million compared to net income of $3.06 million for the three months ended June 30, 2024, an increase of $873,000 or 28.5%. Earnings per share (EPS) for the three months ended June 30, 2025 were $2.16 per basic and $2.14 per diluted share compared to $1.70 per basic and diluted share reported for the three months ended June 30, 2024.

For the six months ended June 30, 2025, the Company had net income after tax of $7.39 million compared to net income of $5.73 million for the six months ended June 30, 2024, an increase of $1.66 million or 29.0%. Earnings per share (EPS) for the six months ended June 30, 2025 were $4.05 per basic and $4.02 per diluted share compared to $3.18 per basic and diluted share reported for the six months ended June 30, 2024. Both the three- and six-month periods ended June 30, 2025 were a record for net income and earnings per share.

Balance Sheet

Overall, total assets increased by $54.2 million or 6.24% to $923.6 million at June 30, 2025 compared to $869.4 million at December 31, 2024.

Total cash and cash equivalents increased from $125.7 million at December 31, 2024 to $130.8 million at June 30, 2025 for an increase of $5.1 million or 4.08%. Investment securities, primarily available-for-sale, increased by $37.5 million to $136 million at June 30, 2025 from $98.5 million at December 31, 2024. The growth in cash and cash equivalents and available-for-sale investment securities for the six months ended June 30, 2025 continues to strengthen the Company’s strong liquidity position.

Loans, net of deferred fees and costs and allowance for credit losses, including loans held for sale, increased $12.5 million or 2.07% for the six months ended June 30, 2025 compared to December 31, 2024. Total net loans at June 30, 2025 were $618 million compared to $605.4 million at December 31, 2024. Of total net loans outstanding for the period, loans secured by residential construction increased $7.3 million followed by $6.6 million in land, $5.8 million in residential 1-4 family, $2.8 million in consumer loans non-real estate, $1.5 million in multi-family real estate, and $1.2 million in residential 1-4 family - held for sale for the six months ended June 30, 2025. The increases were offset by decreases of $7.1 million in commercial non-real estate loans, $2.6 million in agriculture real estate loans, $2.4 million in commercial real estate, and $529,000 in home equity lines of credit for the six months ended June 30, 2025.

Deposit growth was strong for the six months ended June 30, 2025 as total deposits increased by $45.9 million or 6% to $816.6 million at June 30, 2025 compared to $770.7 million at December 31, 2024. Noninterest-bearing checking increased $61.1 million and savings deposits increased $490,000 for the six months ended June 30, 2025. The increases were offset by decreases of $7.6 million in money market deposits, $7.2 million in interest-bearing checking deposits, $865,000 in time deposits for the six months ended June 30, 2025.

Total long-term borrowings remained the same at $8.5 million at June 30, 2025 and December 31, 2024.

Income Statement

Net interest income was $9.73 million for the three months ended June 30, 2025 compared to $8.12 million for the three months ended June 30, 2024 for an increase of $1.61 million, or 19.8%. Net interest income was $18.82 million for the six months ended June 30, 2025 compared to $15.72 million for the six months ended June 30, 2024 for an increase of $3.1 million, or 19.7%.

The following table shows key operating ratios for the three- and six-month periods ended June 30, 2025 compared to the same periods ended June 30, 2024:

	Three Months Ended June 30								Six Months Ended June 30
Select Operating Ratios		2025				2024				2025				2024
Average Yield on Interest-Earning Assets		5.99	%			6.16	%			5.96	%			6.14	%
Average Cost of Interest-Bearing Liabilities		3.12	%			3.41	%			3.11	%			3.39	%
Net Interest Margin		4.40	%			4.16	%			4.33	%			4.12	%

The yield on earning assets declined slightly and cost of interest-bearing liabilities improved modestly in both the three- and six-month periods ended June, 30, 2025. The net interest margin improved modestly in both the three- and six-month periods ended June 30, 2025 compared to the same periods in 2024.

For the three months ended June 30, 2025, a provision for credit losses of $223,000 was expensed compared to $150,000 for the three months ended June 30, 2024. For the six months ended June 30, 2025, a provision for credit losses of $298,000 compared to $150,000 was expensed for the six months ended June 30, 2024.

Total non-interest income was $916,000 for the three months ended June 30, 2025 compared to $914,000 for the three months ended June 30, 2024, an increase of $2,000 or 0.2%. Total non-interest income was $1.69 million for the six months ended June 30, 2025 compared to $1.73 million for the six months ended June 30, 2024, a decrease of $39,000 or 2.3%.

Total non-interest expense increased by $416,000 or 8.2% to $5.47 million for the three months ended June 30, 2025 compared to $5.05 million for the three months ended June 30, 2024. Total non-interest expense increased by $700,000 or 6.9% to $10.88 million for the six months ended June 30, 2025 compared to $10.18 million for the six months ended June 30, 2024. The increases in both the three- and six-month periods ended June 30, 2025 was primarily due to increases in salaries and benefits, other operating, occupancy and equipment, and data processing expenses as compared to the same periods in 2024.

The Company’s efficiency ratio, a measure of expense as a percent of total income, decreased to 51.35% for the year three months ended June 30, 2025 compared to 55.90% for the three months ended June 30, 2024. For the six months ended June 30, 2025, the efficiency ratio decreased to 53.06% compared to 58.35% for the six months ended June 30, 2024. The increase in net interest income for the comparative periods was the primary driver of this reduction of the efficiency ratio.

Other Financial Information

Nonperforming assets, including loans past due 90 days or more, nonaccrual loans, and other foreclosed assets, decreased from $3.98 million at December 31, 2024 to $3.38 million at June 30, 2025, a decrease of $593,000. Total non-performing assets were 0.37% and 0.46% of totals assets as of June 30, 2025 and December 31, 2024, respectively.

Allowance for credit losses under CECL was $6.6 million or 1.06% of total loans at June 30, 2025 compared to $6.54 million or 1.07% of total loans at December 31, 2024. Net charge-offs for the six months ended June 30, 2025 were $234,000, compared net recoveries of $39,000 for the six months ended June 30, 2024. The ratio of net charge-off to average loans outstanding was 0.038% at June 30, 2025 compared to the ratio of net recoveries to average loans outstanding was -0.007% for the same period of 2024.

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)
	June 30, 2025				December 31, 2024
ASSETS
Cash and cash equivalents	$	130,804			$	125,675
Investment securities		136,875				100,623
Loans, net		617,973				605,439
Other assets		37,973				37,663
TOTAL ASSETS	$	923,625			$	869,400
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits	$	816,636			$	770,710
Long-term borrowings		8,454				8,454
Other liabilities		7,424				7,174
Total Liabilities		832,514				786,338
Stockholders' equity		91,111				83,062
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	923,625			$	869,400
Book Value per share	$	49.20			$	45.10
Tangible Book Value per share	$	47.56			$	43.38

Century Next Financial Corporation and Subsidiary Consolidated Statements of Income (unaudited)
(In thousands, except per share data)
	Three Months Ended June 30								Six Months Ended June 30
		2025				2024				2025				2024
Interest Income	$	13,252			$	12,019			$	25,868			$	23,430
Interest Expense		3,522				3,898				7,049				7,710
Net Interest Income		9,730				8,121				18,819				15,720
Provision for Credit Losses		223				150				298				150
Net Interest Income after Provision for Credit Losses		9,507				7,971				18,521				15,570
Noninterest Income		916				914				1,686				1,725
Noninterest Expense		5,467				5,051				10,880				10,180
Income Before Taxes		4,956				3,834				9,327				7,115
Provision For Income Taxes		1,019				770				1,939				1,390
NET INCOME	$	3,937			$	3,064			$	7,388			$	5,725
EARNINGS PER SHARE
Basic	$	2.16			$	1.70			$	4.05			$	3.18
Diluted	$	2.14			$	1.70			$	4.02			$	3.18
Key Ratios:
Annualized Return on Average Assets										1.63	%			1.44	%
Annualized Return on Average Equity										17.02	%			15.42	%
Annualized Net Interest Margin										4.33	%			4.12	%
Efficiency Ratio										53.06	%			58.35	%

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 was Century Next Financial's (CTUY) earnings per share in Q2 2025?

Century Next Financial reported $2.16 per basic share and $2.14 per diluted share in Q2 2025, compared to $1.70 per share in Q2 2024.

How much did Century Next Financial's (CTUY) deposits grow in the first half of 2025?

Total deposits increased by $45.9 million or 6% to reach $816.6 million at June 30, 2025, with noninterest-bearing checking accounts growing by $61.1 million.

What was Century Next Financial's (CTUY) net interest margin in Q2 2025?

The net interest margin improved to 4.40% in Q2 2025, compared to 4.16% in Q2 2024.

How did Century Next Financial's (CTUY) asset quality perform in Q2 2025?

Asset quality remained strong with nonperforming assets at 0.37% of total assets, down from 0.46%, and allowance for credit losses at 1.06% of total loans.

What was Century Next Financial's (CTUY) total asset growth in the first half of 2025?

Total assets increased by $54.2 million or 6.24% to reach $923.6 million at June 30, 2025, compared to $869.4 million at December 31, 2024.