Century Next Financial Corporation Reports 1st Quarter 2014 Results

RUSTON, La.--(BUSINESS WIRE)--Century Next Financial Corporation (OTCQB: CTUY), the holding company of Bank of Ruston with $147.6 million in assets, today announced financial results for the 1^st quarter ended March 31, 2014.

Financial Performance

For the three months ended March 31, 2014, Century Next Financial Corporation (the “Company”) had net income after tax of $226,000 compared to net income of $150,000 for the three months ended March 31, 2013, an increase of $76,000 or 50.7%. Earnings per share (EPS) for the three months ended were $0.23 per basic and diluted share compared to $0.16 per basic and diluted share reported for the three months ended March 31, 2013. Net Income for the Company’s wholly-owned subsidiary, Bank of Ruston, was $228,000 for the three months ended March 31, 2014 compared to $154,000 for the three months ended March 31, 2013, an increase of $74,000 or 48.1%.

Balance Sheet

Overall, total assets increased by $4.8 million or 3.4% to $147.6 million at March 31, 2014 compared to $142.8 million at December 31, 2013.

The largest component of assets, loans, net of deferred fees and costs and the allowance for loan losses, increased $3.9 million or 3.4% for the three months ended March 31, 2014 compared to December 31, 2013. Total net loans at March 31, 2014 were $119.9 million compared to $116.0 million at December 31, 2013. The growth was primarily the result of demand for commercial real estate loans and held-for-sale mortgage loans.

Total deposits at March 31, 2014 increased $8.2 million or 7.4% to $119.4 million compared to $111.2 million at December 31, 2013. Time, noninterest and interest-bearing checking, and savings deposits were the growth areas mainly contributing to the increase in overall deposits.

Total short-term borrowings decreased to $6.0 million at March 31, 2014 from $10.0 million at December 31, 2013, a decrease of $4.0 million or 40.0%. This reduction came from funding provided by deposit growth as mentioned above.

Income Statement

Net interest income was $1.47 million for the three months ended March 31, 2014 compared to $1.30 million for the three months ended March 31, 2013. This was an increase of $170,000, or 13.1%. The increase for the quarter was primarily from interest income earned on loans from increased volume.

The provision for loan losses amounted to $48,000 for the three months ended March 31, 2014, compared to $36,000 in provision for the three months ended March 31, 2013. The increase in loan loss provision for the quarter as compared to the prior year quarter is not a result of increased loss activity but more appropriately a result of increased risk awareness and identification to strengthen the allowance for loan losses.

Total non-interest income amounted to $189,000 for the three months ended March 31, 2014 compared to $213,000 for the three months ended March 31, 2013, a decrease of $24,000 or 11.3%. The decrease was primarily from a reduction of income generated from mortgage activity due to increasing mortgage rates and a slowing of the refinancing market.

Total non-interest expense decreased by $8,000 or 0.6% to $1.26 million for the quarter ended March 31, 2014 compared to $1.27 million for the quarter ended March 31, 2013. The Company continues to show improvement in its efficiency ratio, a measure of expense as a percent of total income, to 76.1% for the quarter ended March 31, 2014 compared to 84.0% for the same period in 2013.

Additional Information

Century Next Financial Corporation is the holding company for Bank of Ruston (the “Bank”) which conducts business from its main office and full-service branch office, located 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 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 two banking offices in Ruston. 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)
	March 31, 2014		December 31, 2013
ASSETS
Cash and cash equivalents	$	10,950	$	10,204
Investment securities		7,400		7,298
Loans, net		119,857		115,956
Other assets		9,424		9,354
TOTAL ASSETS	$	147,631	$	142,812
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits	$	119,390	$	111,164
Short-term borrowings (FHLB advances and resale agreements)		6,000		10,000
Long-term borrowings (FHLB advances)		291		301
Other liabilities		1,383		1,163
Total Liabilities		127,064		122,628
Stockholders' equity		20,567		20,184
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	147,631	$	142,812
Book Value per share	$	19.52	$	19.16

Century Next Financial Corporation and Subsidiary Consolidated Statements of Income (unaudited)
(In thousands, except per share data)
	Three Months Ended March 31,
	2014		2013
Interest Income	$	1,620	$	1,436
Interest Expense		154		140
Net Interest Income		1,466		1,296
Provision for Loan Losses		48		36
Net interest income after provision for loan losses		1,418		1,260
Noninterest Income		189		213
Noninterest Expense		1,260		1,268
Income Before Taxes		347		205
Provision For Income Taxes		121		55
NET INCOME	$	226	$	150
EARNINGS PER SHARE
Basic	$	0.23	$	0.16
Diluted	$	0.23	$	0.16