RUSTON, La., Feb. 19, 2020 (GLOBE NEWSWIRE) -- Century Next Financial Corporation (OTCQX: CTUY), the holding company of Century Next Bank, with $489.6. million in assets, today announced financial results for the year ended December 31, 2019.
Financial Performance
For the year ended December 31, 2019, Century Next Financial Corporation (the “Company”) had net income after tax of $5.55 million compared to net income of $3.31 million for the year ended December 31, 2018, an increase of $2.24 million or 67.8%. Earnings per share (EPS) for the full year were $3.43 per basic and $3.36 per diluted share compared to $2.69 per basic and $2.60 per diluted share reported for the full year ended December 31, 2018.
Balance Sheet
Overall, total assets increased by $27.5 million or 5.95% to $489.6 million at December 31, 2019 compared to $462.1 million at December 31, 2018.
The largest component of assets, loans, net of deferred fees and costs and the allowance for loan losses, including loans held for sale, increased $26.7 million or 7.11% for the year ended December 31, 2019 compared to December 31, 2018. Total net loans at December 31, 2019 were $402.0 million compared to $375.3 million at December 31, 2018. Net loan growth year over year reflects increases of $21.0 million in commercial real estate loans, $12.0 million in multi-family real estate loans, $8.1 million in commercial non-real estate loans, $1.8 million in land loans, and $19,000 in agricultural non-real estate loans. These increases were offset by decreases of $6.0 million in residential construction loans, $5.1 million in consumer non-real estate loans, $2.6 million in agricultural real estate loans, $1.3 million in home equity lines of credit, and $365,000 in residential 1-4 family loans. The allowance for loan losses increased by $855,000 or 33.3% to $3.42 million at December 31, 2019 from $2.57 million at December 31, 2018.
Total deposits at December 31, 2019 increased $38.5 million or 10.1% to $421.8 million compared to $383.3 million at December 31, 2018. Year over year, money market deposits increased $27.3 million, interest-bearing checking deposits increased $15.9 million, and time deposits increased $6.3 million while noninterest-bearing deposits decreased $10.3 million and savings deposits decreased $668,000.
Total short-term borrowings decreased to $41,000 at December 31, 2019 from $22.0 million at December 31, 2018, a decrease of $21.96 million, while long-term borrowings increased $6.0 million to $14.5 million at December 31, 2019 from $8.5 million at December 31, 2018. The net decrease in short-term borrowings was primarily due to the maturity of an Federal Home Loan Bank (FHLB) discount note. The net increase in long-term borrowings was primarily due to a long-term FHLB advance $6.0 million during 2019.
Income Statement
Net interest income was $19.62 million for the year ended December 31, 2019 compared to $12.77 million for the year ended December 31, 2018. This was an increase of $6.85 million, or 53.6%. The overall increase for the year was primarily from interest income earned on loans from twelve months of income included in 2019 from the acquisition of Ashley Bancstock Company and its bank subsidiary, First National Bank of Crossett in Arkansas, (the “Acquisition”) completed in the 4th quarter of 2018 as compared to two months of inclusion in 2018.
The provision for loan losses amounted to $1.2 million for the year ended December 31, 2019, compared to $780,000 in provision for the year ended December 31, 2018. The increase of $423,000 or 54.2% in loan loss provision year over year was primarily a reflection of the increased loan balance outstanding due to the Acquisition and subsequent loan growth for 2019 and an increased risk awareness and identification to strengthen the allowance for loan losses. No additional provision was necessary as a result of the Acquisition primarily due to the acquired loans being recorded at fair market value including a credit mark component as of the date of the Acquisition. This credit mark is being amortized over the average life of the loan portfolio acquired.
Total non-interest income amounted to $3.98 million for the year ended December 31, 2019 compared to $1.96 million for the year ended December 31, 2018, an increase of $2.02 million or 103.1%. The increase was due to increases of $928,000 in service charges on deposits, $646,000 in other income primarily from increases in the cash surrender value of life insurance policies, $374,000 in loan servicing release fees from the sale of mortgage loans, $66,000 from a decrease in the net loss from the sale of loans, and $5,000 from the sale of foreclosed assets. The increases in service charges on deposits and other income was primarily from the inclusion of twelve months of income from the Acquisition as compared to two months of inclusion in 2018.
Total non-interest expense increased by $5.55 million or 56.7% to $15.34 million for the year ended December 31, 2019 compared to $9.79 million for the year ended December 31, 2018. The increase year over year was primarily due to the inclusion of twelve months of operations from the Acquisition and normal increases in operational expenses. The Company’s efficiency ratio, a measure of expense as a percent of total income, decreased to 65.02% for the year ended December 31, 2019 compared to 66.46% for the year ended December 31, 2018.
Other Financial Information
Nonperforming assets, including loans past due 90 days or more, nonaccrual loans, and other foreclosed assets, increased from $1.98 million at December 31, 2018 to $4.12 million at December 31, 2019. Total non-performing assets were 0.84% and 0.43% of totals assets as of December 31, 2019 and 2018, respectively. Allowance for loan losses were $3.42 million or 0.84% of total loans at December 31, 2019 compared to $2.57 million or 0.68% of total loans at December 31, 2018. Net charge-offs for the year ended December 31, 2019 were $348,000 compared to net charge-offs of $181,000 for the year ended December 31, 2018. The ratios of net charge-offs to average loans outstanding were 0.09% and 0.06% at December 31, 2019 and 2018, respectively.
Additional 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 and five full-service branch offices. 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 stock 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 three locations in Louisiana including two banking offices in Ruston and one banking office in Monroe, and four locations in Arkansas including two banking offices in Crossett, one banking office in Hamburg, and one drive-through location 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 | |||||
| 2019 | 2018 | ||||
| ASSETS | |||||
| Cash and cash equivalents | $ | 54,100 | $ | 54,454 | |
| Investment securities | 2,589 | 2,958 | |||
| Loans, net | 402,033 | 375,342 | |||
| Other assets | 30,884 | 29,374 | |||
| TOTAL ASSETS | $ | 489,606 | $ | 462,128 | |
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||
| Deposits | $ | 421,855 | $ | 383,320 | |
| Short-term borrowings | 41 | 22,000 | |||
| Long-term borrowings | 14,542 | 8,542 | |||
| Other liabilities | 3,031 | 3,415 | |||
| Total Liabilities | 439,469 | 417,277 | |||
| Stockholders' equity | 50,137 | 44,851 | |||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 489,606 | $ | 462,128 | |
| Book Value per share | $ | 30.16 | $ | 27.09 | |
Century Next Financial Corporation and Subsidiary
Consolidated Statements of Income (unaudited)
(In thousands, except per share data)
| Years Ended December 31 | |||||
| 2019 | 2018 | ||||
| Interest Income | $ | 25,534 | $ | 16,067 | |
| Interest Expense | 5,913 | 3,295 | |||
| Net Interest Income | 19,621 | 12,772 | |||
| Provision for Loan Losses | 1,203 | 780 | |||
| Net interest income after provision for loan losses | 18,418 | 11,992 | |||
| Noninterest Income | 3,977 | 1,958 | |||
| Noninterest Expense | 15,343 | 9,789 | |||
| Income Before Taxes | 7,052 | 4,161 | |||
| Provision For Income Taxes | 1,499 | 851 | |||
| NET INCOME | $ | 5,553 | $ | 3,310 | |
| EARNINGS PER SHARE | |||||
| Basic | $ | 3.43 | $ | 2.69 | |
| Diluted | $ | 3.36 | $ | 2.60 | |
Century Next Financial Corporation Contact Information:
William D. Hogan, President & Chief Executive Officer or
Mark A. Taylor, CPA, Executive Vice President & Chief Financial Officer
(318) 255-3733
Company Website: www.cnext.bank