Century Next Financial Corporation Reports Strong Year-End 2020 Results

RUSTON, La., Feb. 05, 2021 (GLOBE NEWSWIRE) -- Century Next Financial Corporation (the “Company”) (OTCQX: CTUY), the holding company of Century Next Bank, with $515.1 million in assets, today announced financial results for the year ended December 31, 2020.

Overview

“The Company and its wholly-owned subsidiary, Century Next Bank, had strong performance even with the effects of the pandemic and the level of economic uncertainty in 2020. As was the case for many holding companies with community banks, the Company started the year with aspirations for strong growth in loans and deposits, while working to manage credit and interest rate risk. I am pleased to report that despite the many challenges, our board, Management, and staff rose to the occasion and managed all four issues extremely well, delivering strong earnings and growth," said William D. Hogan, President and CEO.

“Our Company continues to focus on the strengths of our employees as well as the resilience and loyalty of our customers. In addition, we remain committed to being active participants and steadfast supporters of the communities of North Central and Southeast Arkansas which we call home,” Hogan added.

Financial Performance

For the year ended December 31, 2020, the Company had net income after tax of $5.2 million compared to net income of $5.6 million for the year ended December 31, 2019, a decrease of $339,000 or 6.1%. Earnings per share (EPS) for the full year ended December 31, 2020 were $3.18 per basic and $3.14 per diluted share compared to $3.43 per basic and $3.36 per diluted share reported for the full year ended December 31, 2019.

The mortgage refinance market, due to lower interest rates, and the Paycheck Protection Program (PPP) provided by the CARES Act of 2020 both contributed greatly to the strong performance. Held for sale mortgage (HFS) loan originations increased from $37 million for the year ended December 31, 2019 to $72 million for the year ended December 31, 2020, an increase of 94.7%. Net loan servicing release fees from HFS loan activities increased 65.7% or $721,000 for the full year 2020 compared to 2019. PPP loans originated during 2020 were $29.6 million resulting in total loan fees of $1.0 million, $602,000 of which were recognized as income for the year ended December 31, 2020.

Balance Sheet

Overall, total assets increased by $25.5 million or 5.2% to $515.1 million at December 31, 2020 compared to $489.6 million at December 31, 2019.

The largest component of assets, loans, net of deferred fees and costs and the allowance for loan losses, including loans held for sale, increased $18.4 million or 4.6% for the year ended December 31, 2020 compared to December 31, 2019. Total net loans at December 31, 2020 were $420.4 million compared to $402.0 million at December 31, 2019.

The allowance for loan losses increased by $1.1 million or 32.8% to $4.5 million at December 31, 2020 from $3.4 million at December 31, 2019.

Total deposits at December 31, 2020 increased $19.2 million or 4.6% to $441.1 million compared to $421.9 million at December 31, 2019.

Total short- and long-term borrowings decreased to $14.45 million at December 31, 2020 from $14.49 at December 31, 2019, a decrease of $41,000 or .28%.

Income Statement

Net interest income was $20.59 million year ended December 31, 2020 compared to $19.62 million for the year ended December 31, 2019. This was an increase of $969,000, or 4.9%.

The provision for loan losses amounted to $1.45 million for the year ended December 31, 2020, compared to $1.20 million for the year ended December 31, 2019. The increase reflects increases in the inherent losses in the total portfolio and increased risk awareness and identification of potential credit trend changes due to uncertain economic conditions from COVID-19.

Total non-interest income amounted to $4.17 million for the year ended December 31, 2020 compared to $3.98 million for the year ended December 31, 2019, an increase of $190,000 or 4.8%.

Total non-interest expense increased by $1.35 million or 8.8% to $16.69 million for the year ended December 31, 2020 compared to $15.34 million for the year ended December 31, 2019.

The Company’s efficiency ratio, a measure of expense as a percent of total income, increased to 67.4% for the year ended December 31, 2020 compared to 65.0% for the year ended December 31, 2019.

Other Financial Information

Nonperforming assets, including loans past due 90 days or more, nonaccrual loans, and other foreclosed assets, increased from $4.1 million at December 31, 2019 to $4.7 million at December 31, 2020. Total non-performing assets were 0.92% and 0.84% of totals assets as of December 31, 2020 and December 31, 2019, respectively. The increase was primarily due to an increase in nonaccrual loans.

Allowance for loan losses was $4.5 million or 1.07% of total loans at December 31, 2020 compared to $3.4 million or 0.84% of total loans at December 31, 2019. Net charge-offs for the year ended December 31, 2020 were $325,000 compared to net charge-offs of $348,000 for the year ended December 31, 2019. The ratios of net charge-offs to average loans outstanding were 0.08% and 0.09% at December 31, 2020 and December 31, 2019, respectively.

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 four locations in Arkansas including two banking offices in Crossett, one banking office in Hamburg, and one drive-through location with limited services 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
	2020			2019
ASSETS
Cash and cash equivalents	$	61,426		$	54,100
Investment securities		2,558			2,589
Loans, net		420,397			402,033
Other assets		30,689			30,884
TOTAL ASSETS	$	515,070		$	489,606
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits	$	441,075		$	421,855
Short-term borrowings		-			41
Long-term borrowings		14,454			14,454
Other liabilities		4,021			3,119
Total Liabilities		459,550			439,469
Stockholders' equity		55,520			50,137
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	515,070		$	489,606
Book Value per share	$	32.90		$	30.16

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

(In thousands, except per share data)

		Years Ended December 31
		2020			2019
Interest Income		$	24,437		$	25,534
Interest Expense			3,847			5,913
Net Interest Income			20,590			19,621
Provision for Loan Losses			1,448			1,203
Net interest income after provision for loan losses			19,142			18,418
Noninterest Income			4,167			3,977
Noninterest Expense			16,690			15,343
Income Before Taxes			6,619			7,052
Provision For Income Taxes			1,405			1,499
NET INCOME		$	5,214		$	5,553
EARNINGS PER SHARE
Basic		$	3.18		$	3.43
Diluted		$	3.14		$	3.36

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