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Century Next Financial Corporation Reports 2017 Yearend Results

RUSTON, La., Feb. 01, 2018 (GLOBE NEWSWIRE) -- Century Next Financial Corporation (OTCQB:CTUY), the holding company of Bank of Ruston with $283.6 million in assets, today announced financial results for the year ended December 31, 2017.

Financial Performance

For the year ended December 31, 2017, Century Next Financial Corporation (the “Company”) had net income after tax of $2.4 million compared to net income of $2.5 million for the year ended December 31, 2016, a decrease of $126,000 or 5.1%. Earnings per share (EPS) for the full year were $2.26 per basic and $2.18 per diluted share compared to $2.39 per basic and $2.34 per diluted share reported for the full year ended December 31, 2016. Net income for 2017 included a charge of $414,000, or $0.39 per basic and $0.38 per diluted share, related to the 2017 Tax Cuts and Jobs Act enacted in December of 2017 for the cumulative effect on deferred taxes.

Balance Sheet

Overall, total assets increased by $44.2 million or 18.5% to $283.6 million at December 31, 2017 compared to $239.4 million at December 31, 2016.

The largest component of assets, loans, net of deferred fees and costs and the allowance for loan losses, increased $35.9 million or 17.8% for the year ended December 31, 2017 compared to December 31, 2016. Total net loans at December 31, 2017 were $237.4 million compared to $201.5 million at December 31, 2016. Net loan growth year over year was broad based with total loans secured by real estate up $35.7 million and commercial, non-real estate loans and all other loans up $909,000.

Total deposits at December 31, 2017 increased $36.5 million or 19.1% to $227.9 million compared to $191.4 million at December 31, 2016. Year over year, interest-bearing checking deposits were up $23.7 million, noninterest-bearing deposits were up $6.1 million, time deposits were up $4.2 million, savings deposits were up $3.3 million, and money market deposits were down $796,000.

Total short-term borrowings decreased to $3.3 million at December 31, 2017 from $20.0 million at December 31, 2016, a decrease of $16.7 million, while long-term borrowings increased 22.1 million at December 31, 2017 from $179,000 million at December 31, 2016, an increase of $22.0 million. The net decrease in short-term borrowings was primarily due to the maturity of a Federal Home Loan (FHLB) discount note in December for $20.0 million. The increase in long-term borrowings was primarily due to the addition of a new 2-year FHLB discount note for $22.0 million.

Income Statement

Net interest income was $10.4 million for the year ended December 31, 2017 compared to $9.2 million for the year ended December 31, 2016. This was an increase of $1.3 million, or 13.8%. The increase for the year was primarily from interest income earned on loans from increased volume.

The provision for loan losses amounted to $645,000 for the year ended December 31, 2017, compared to $480,000 in provision for the year ended December 31, 2016. The increase of $165,000 or 34.4% in loan loss provision year over year was primarily a reflection of loan growth and an increased risk awareness and identification to strengthen the allowance for loan losses.

Total non-interest income amounted to $1.7 million for the year ended December 31, 2017 compared to $1.4 million for the year ended December 31, 2016, an increase of $283,000 or 20.7%. The increase was due to increases of $298,000 in loan servicing release fees, $102,000 in service charges on deposits, $81,000 in other income, offset by a net loss from sales of loans and foreclosed assets of $198,000.

Total non-interest expense increased by $1.0 million or 16.0% to $7.4 million for the year ended December 31, 2017 compared to $6.4 million for the year ended December 31, 2016. The increase year over year was primarily due to a $730,000 increase in salaries and employee benefits due to staff additions, compensation increases, and pension expense and health insurance increases, an $87,000 increase in data processing, and a net increase in all other operating expenses of $206,000. The Company efficiency ratio, a measure of expense as a percent of total income, increased to 61.3% for the year ended December 31, 2017 compared to 60.7% for the same period in 2016.

Other Financial Information

Nonperforming assets, including loans past due 90 days or more, nonaccrual loans, and other foreclosed assets, decreased from $1.05 million at December 31, 2016 to $750,000 at December 31, 2017. Allowance for loan losses were $1,968,000 or 0.82% of total loans at December 31, 2017 compared to $1,366,000 million or 0.67% of total loans at December 31, 2016. Net charge-offs for the year ended December 31, 2017 were $43,000 compared to net charge-offs of $101,000 during the same period in 2016. The ratios of net charge-offs to average loans outstanding were 0.02% and 0.05% at December 31, 2017 and 2016, respectively.

Additional Information

Century Next Financial Corporation is the holding company for Bank of Ruston (the “Bank”) which conducts business from its main office in Ruston, Louisiana and two 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 two banking offices in Ruston and one banking office in Monroe, Louisiana. 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
2017 2016
ASSETS
Cash and cash equivalents$30,611 $22,382
Investment securities 2,614 3,060
Loans, net 237,449 201,486
Other assets 12,939 12,503
TOTAL ASSETS$283,613 $239,431
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits$227,922 $191,361
Short-term borrowings (FHLB advances) 3,250 20,000
Long-term borrowings (FHLB advances) 22,134 179
Other liabilities 2,155 1,982
Total Liabilities 255,461 213,522
Stockholders' equity 28,152 25,909
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$283,613 $239,431
Book Value per share$25.80 $23.74



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

(In thousands, except per share data)

Years Ended December 31
2017 2016
Interest Income$12,100 $10,218
Interest Expense 1,658 1,042
Net Interest Income 10,442 9,176
Provision for Loan Losses 645 480
Net interest income after provision for loan losses 9,797 8,696
Noninterest Income 1,652 1,369
Noninterest Expense 7,419 6,396
Income Before Taxes 4,030 3,669
Provision For Income Taxes 1,675 1,188
NET INCOME$2,355 $2,481
EARNINGS PER SHARE
Basic$2.26 $2.39
Diluted$2.18 $2.34


Century Next Financial Corporation Contact Information:

William D. Hogan, President & Chief Executive Officer or
Mark A. Taylor, CPA, Senior Vice President & Chief Financial Officer
(318) 255-3733

Company Website: www.bor.bank

Source:Century Next Financial Corporation