Century Next Financial Corporation Announces Q1 2022

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RUSTON, Louisiana, 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, has today announced the financial results of the 1st quarter ended March 31, 2022.

Financial performance

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

Balance sheet

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

The largest component of assets, loans, net of deferred charges and costs and the allowance for loan losses, including loans held for sale, increased by $25.9 million or 5.9 % for the quarter ended March 31, 2022 compared to December 31, 2021. Total net loans as of March 31, 2022 were $463.2 million compared to $437.3 million as of 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 March 31, 2021. Loans secured by the commercial real estate were the primary driver of loan growth with an increase of $16.2 million for the quarter ended March 31, 2022. Loans secured by multifamily properties, residential construction, 1-4 family residences, commercial goods no real estate, other land and farmland increased by a total of $10.3 million for the quarter ended March 31, 2022. The increases were offset by a combined $523,000 decrease in 1-4 family residences – held for sale, home equity lines of credit, other agricultural loans and consumer loans for the three months ended March 31, 2022.

Total deposits as at March 31, 2022 increased by $5.1 million or 1.1% to reach $479.6 million, compared to $474.5 million as at December 31, 2021. interest, non-interest 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 from term deposits and money market accounts for the three months ended March 31, 2022.

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

income statement

Net interest income was $5.20 million for the quarter ended March 31, 2022, compared to $5.23 million for the quarter ended March 31, 2021. This is a decrease $29,000, or 0.6%. Fees on PPP loans included in interest income decreased by $456,000 for the quarter ended March 31, 2021, compared to $74,000 for the quarter ended March 31, 2022, for a net reduction of $382,000 fees on PPP loans for the comparative quarterly period.

The allowance for loan losses was $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, factors risk and credit trends.

Total non-interest income amounted to $918,000 for the quarter ended March 31, 2022 compared to $952,000 for the quarter 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 quarter ended March 31, 2022, compared to $4.3 million for the quarter ended March 31, 2022. March 31, 2021. The main component contributing to the increase was an increase in salaries and benefits of $110,000 for the three months ended March 31, 2022 compared to the same period in 2021. The stock incentive plan expense related to new option grants and share awards increased by $107,000 for the quarter ended March 31, 2022 compared to the same period in 2021.

The Company‘s efficiency ratio, a measure of expenses as a percentage of total revenue, increased to 74.81% for the quarter ended March 31, 2022, from 70.18% for the quarter ended March 31, 2021.

Other financial information

Non-performing assets, including loans past due for 90 days or more, unearned loans and other foreclosed assets, decreased from $1.15 million as of December 31, 2021 to $1.97 million as of March 31 2022, an increase of $826,000. Total non-performing assets represented 0.35% and 0.21% of total assets as of March 31, 2022 and December 31, 2021, respectively.

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

Declaration of dividend

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

Company Information

Century Next Financial Corporation is the holding company of Century Next Bank (the “Bank”), which operates from its headquarters in Ruston, Louisiana. The Company was established in 2010 and is subject to regulatory oversight by the Federal Reserve Board of Governors. 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 focuses on professional and personal banking services aimed primarily at small and medium-sized enterprises, professionals and individuals. The Bank offers a full range of banking services, including its core business of home lending to residential and commercial customers.

On February 28, 2022, the company closed its drive-thru with limited services in Fountain Hill, Arkansas.

Statements contained in this press release that 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 not relate strictly to historical facts. or current facts. They often include words like “believe”, “expect”, “anticipate”, “estimate” and “intend” or future or conditional verbs such as “will”, “should”, “should” , “could” or “may.” We assume no obligation to update any forward-looking statements.

Century Next Financial Corporation and its 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 security 18,205 14,414
Loans, net 463 198 437 307
other assets 33,943 29,637
TOTAL ASSETS $ 559,380 $ 553,470
LIABILITIES AND EQUITY
Deposits $ 479,553 $ 474 479
Long-term borrowings 14,454 14,454
Other liabilities 4,330 4,229
Total responsibilities 498,337 493 162
Equity 61,043 60,308
TOTAL LIABILITIES AND EQUITY $ 559,380 $ 553,470
Book value per share $ 33.72 $ 33.36

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

(In thousands, except per share data)

Quarter ended March 31
2022 2021
interest income $ 5,760 $ 5,937
Interest charges 564 712
Net interest income 5,196 5,225
Allowance for loan losses 126 202
Net interest income after provision for loan losses 5,070 5,023
Non-interest income 918 952
Non-interest expenses 4,574 4,335
Income before taxes 1,414 1,640
Provision for income taxes 322 353
NET REVENUE $ 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 and Chief Executive Officer or
Mark A. Taylor, CPA CGMA, Executive Vice President and Chief Financial Officer
(318) 255-3733

Company website: www.cnext.bank

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