RUSTON, La., April 24, 2024 (GLOBE NEWSWIRE) -- Century Next Financial Corporation (the “Company”) (OTCQX: CTUY), the holding company of Century Next Bank, with $793.8 million in assets, today announced financial results for the 1st quarter ended March 31, 2024.
Financial Performance
For the three months ended March 31, 2024, the Company had net income after tax of $2.66 million compared to net income of $1.06 million for the three months ended March 31, 2023, an increase of $1.6 million or 151%. Earnings per share (EPS) for the three months ended March 31, 2024 were $1.48 per basic and diluted share compared to $0.59 per basic and diluted share reported for the three months ended March 31, 2023.
Balance Sheet
Overall, total assets increased by $27.9 million or 3.6% to $793.8 million at March 31, 2024 compared to $765.9 million at December 31, 2023.
Total cash and cash equivalents increased from $105.0 million at December 31, 2023 to $113.2 million at March 31, 2024 for an increase of $8.2 million or 7.8%. Investment securities, primarily available-for-sale, increased by $14.1 million to $50.2 million at March 31, 2024 from $36.1 million at December 31, 2023. The growth in cash and cash equivalents and available-for-sale investment securities for the first quarter ending March 31, 2024 continued to strengthen the Company’s liquidity position.
Loans, net of deferred fees and costs and allowance for credit losses, including loans held for sale, increased $5.1 million or 0.9% for the three months ended March 31, 2024 compared to December 31, 2023. Total net loans at March 31, 2024 were $592.3 million compared to $587.2 million at December 31, 2023. Of total net loans outstanding for each period, loans secured by commercial real estate increase $9.4 million followed by $1.8 million in commercial non-real estate loans, $1.5 million in residential construction loans, and $216,000 in home equity line of credit for the three months ended March 31, 2024. The increases were offset by decreases of $4.7 million in agricultural real estate loans, $1.4 million in land loans, $902,000 in residential 1-4 family loans, $412,000 in residential 1-4 family - held for sale, $234,000 in multi-family, and a combined decrease of $208,000 in agricultural non-real estate and consumer loans for the three months ended March 31, 2024.
Deposit growth was strong for the quarter ended March 31, 2024 as total deposits increased by $24.7 million or 3.6% to $704.8 million at March 31, 2024 compared to $680.1 million at December 31, 2023. Noninterest-bearing checking increased $23.0 million and interest-bearing accounts increased $3.2 million, and savings increased $238,000 for the three months ended March 31, 2024. The increases were offset by decreases of $1.17 million in time deposits and $607,000 in money market accounts for the three months ended March 31, 2024.
Total long-term borrowings remained the same at $8.5 million at March 31, 2024 and December 31, 2023.
Income Statement
Net interest income was $7.6 million for the three months ended March 31, 2024 compared to $5.5 million for the three months ended March 31, 2023 for an increase of $2.1 million, or 37.9%. The average rate on earning assets increased to 6.13% at March 31, 2024 compared to 5.20% at March 31, 2023. The cost of interest-bearing liabilities increased to 3.36% at March 31, 2024 compared to 2.36% at March 31, 2023. The increase in yield on earning assets and cost of interest-bearing liabilities were both the result of continuing increases in rates from new and renewing assets and liabilities over the comparative periods. The net interest margin was 4.08% for the three months ended March 31, 2024 compared to 3.45% for the three months ended March 31, 2023.
For the three months ended March 31, 2024, no provision for credit losses was expensed compared to $138,000 for the three months ending March 31,2023.
Total non-interest income was $811,000 for the three months ended March 31, 2024 compared to $781,000 for the three months ended March 31, 2023, an increase of $30,000 or 3.8%. Of the increase, service charges on deposit accounts increased by $67,000 and income from mortgage activity increased by $10,000 for the three months ended March 31, 2024 as compared to the three months ended March 31, 2023. The increases were offset by a decrease in the net proceeds from sale of foreclosed assets of $38,000 and a decrease in other income of $9,000 for the three months ended March 31, 2024 compared to the same period in 2023.
Total non-interest expense increased by $287,000 or 5.9% to $5.1 million for the three months ended March 31, 2024 compared to $4.8 million for the three months ended March 31, 2023. The largest component contributing to the total increase was an increase in salaries and employee benefits of $159,000 for the three months ended March 31, 2024 as compared to the same period in 2023. All other expenses combined increased by a net of $128,000 in the three months ended March 31, 2024 as compared to the same period in 2023.
The Company’s efficiency ratio, a measure of expense as a percent of total income, decreased substantially to 61% for the year three months ended March 31, 2024 compared to 77% for the three months ended March 31, 2023. The increase in net interest income, as previously discussed above, for the comparative periods was the primarily 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 $2.93 million at December 31, 2023 to $2.89 million at March 31, 2024, a decrease of $37,000. Total non-performing assets were 0.36% and 0.38% of totals assets as of March 31, 2024 and December 31, 2023, respectively.
Allowance for credit losses under CECL was $6.07 million or 1.01% of total loans at March 31, 2024 compared to $6.05 million or 1.02% of total loans at December 31, 2023. Net recoveries for the three months ended March 31, 2024 were $18,000, compared net recoveries of $15,000 for the three months ended March 31, 2023. The ratio of net recoveries to average loans outstanding was 0.003% at both March 31, 2024 and 2023.
Dividend Declaration
The Board of Directors has approved a cash dividend of $0.42 per share payable on June 7, 2024 to shareholders of record as of May 24, 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) | |||||
| December 31 | |||||
| March 31, 2024 | December 31, 2023 | ||||
| ASSETS | |||||
| Cash and cash equivalents | $ | 113,178 | $ | 104,961 | |
| Investment securities | 52,265 | 38,146 | |||
| Loans, net | 592,336 | 587,213 | |||
| Other assets | 36,008 | 35,530 | |||
| TOTAL ASSETS | $ | 793,787 | $ | 765,850 | |
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||
| Deposits | $ | 704,812 | $ | 680,112 | |
| Long-term borrowings | 8,454 | 8,454 | |||
| Other liabilities | 5,953 | 5,391 | |||
| Total Liabilities | 719,219 | 693,957 | |||
| Stockholders' equity | 74,568 | 71,893 | |||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 793,787 | $ | 765,850 | |
| Book Value per share | $ | 40.76 | $ | 39.35 | |
| Century Next Financial Corporation and Subsidiary Consolidated Statements of Income (unaudited) | ||||||
| (In thousands, except per share data) | ||||||
| Three Months Ended March 31 | ||||||
| 2024 | 2023 | |||||
| Interest Income | $ | 11,411 | $ | 8,312 | ||
| Interest Expense | 3,812 | 2,801 | ||||
| Net Interest Income | 7,599 | 5,511 | ||||
| Provision for Credit Losses | - | 138 | ||||
| Net Interest Income after Provision for Credit Losses | 7,599 | 5,373 | ||||
| Noninterest Income | 811 | 781 | ||||
| Noninterest Expense | 5,129 | 4,842 | ||||
| Income Before Taxes | 3,281 | 1,312 | ||||
| Provision For Income Taxes | 620 | 254 | ||||
| NET INCOME | $ | 2,661 | $ | 1,058 | ||
| EARNINGS PER SHARE | ||||||
| Basic | $ | 1.48 | $ | 0.59 | ||
| Diluted | $ | 1.48 | $ | 0.59 | ||
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
