CTUY Century Next Financial Corporation (QX)

Century Next Financial Corporation (OTCQB: CTUY), the holding company of Bank of Ruston with $161.5 million in assets, today announced financial results for the 3rd quarter ended September 30, 2014.

Financial Performance

For the three months ended September 30, 2014, Century Next Financial Corporation (the “Company”) had net income after tax of $356,000 compared to net income of $302,000 for the three months ended September 30, 2013, an increase of $54,000 or 17.9%. Earnings per share (EPS) for the third quarter of 2014 were $0.36 per basic and diluted share compared to $0.31 per basic and diluted share reported for the third quarter of 2013.

For the nine months ended September 30, 2014, net income was $918,000 compared to net income of $591,000 for the nine months ended September 30, 2013, an increase of $327,000 or 55.3%. Earnings per share (EPS) for the nine-month period in 2014 were $0.94 per basic share and $0.93 per diluted share compared to $0.61 per basic and diluted share reported for the nine-month period in 2013.

Balance Sheet

Overall, total assets increased by $18.7 million or 13.1% to $161.5 million at September 30, 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 $19.3 million or 16.6% for the nine months ended September 30, 2014 compared to December 31, 2013. Total net loans at September 30, 2014 were $135.2 million compared to $116.0 million at December 31, 2013. Year to date growth occurred in multiple areas including commercial real estate loans, up $7.3 million, residential 1-4 family loans, up $6.4 million, commercial, non-real estate loans, up $1.9 million, home equity lines, up $1.6 million, residential construction loans, up $1.3 million, land loans, up $1.2 million, held-for-sale mortgage loans, up $635,000, and consumer loans, up $451,000. The increase was offset by a decline in multi-family real estate loans of $1.4 million.

Total deposits at September 30, 2014 increased $20.5 million or 18.5% to $131.7 million compared to $111.2 million at December 31, 2013. For the year-to-date period, time deposits increased $11.8 million, interest-bearing checking increased $3.6 million, savings deposits increased $3.1 million, noninterest-bearing checking increased $1.4 million, and money market deposits increased $660,000.

Total short-term borrowings decreased to $6.5 million at September 30, 2014 from $10.0 million at December 31, 2013, a decrease of $3.5 million or 35.0%. This reduction came from funding provided by deposit growth as mentioned above.

Income Statement

Net interest income was $1.69 million for the three months ended September 30, 2014 compared to $1.37 million for the three months ended September 30, 2013. This was an increase of $318,000, or 23.2%. For the nine months ended September 30, 2014, net interest income was $4.75 million compared to $4.03 million for the nine months ended September 30, 2013, an increase of $716,000 or 17.8%. The increases for the three-month and nine-month periods were primarily from interest income earned on loans from increased volume.

The provision for loan losses amounted to $48,000 and $144,000 for the three and nine months ended September 30, 2014 compared to $51,000 and $123,000 in provision for the three and nine months ended September 30, 2013, respectively. The increase in loan loss provision for the year-to-date period in 2014 as compared to the year-to-date period in 2013 are 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 $253,000 for the three months ended September 30, 2014 compared to $290,000 for the three months ended September 30, 2013, a decrease of $37,000 or 12.8%. For the nine months ended September 30, 2014 compared to the same period in 2013, non-interest income was $698,000 compared to $727,000, respectively, a decrease of $29,000 or 4.0%. The decreases for both periods were primarily due to one-time gains on sale of foreclosed and fixed assets and a decrease in income generated from mortgage activity as both the refinancing and new construction markets slowed.

Total non-interest expense increased by $200,000 or 16.8% to $1.39 million for the quarter ended September 30, 2014 compared to $1.19 million for the quarter ended September 30, 2013. For the nine months ended September 30, 2014 compared to the same period in 2013, non-interest expense increased by $189,000 or 5.0% to $3.98 million up from $3.79 million. The increases in both periods were primarily attributable to an increase in salaries and benefits year over year. Nevertheless, the Company continues to show improvement in its efficiency ratio, a measure of expense as a percent of total income, to 71.6% and 73.1% for the three and nine months ended September 30, 2014 compared to 71.7% and 79.6% for the same periods, respectively, in 2013.

Nonperforming assets, including loans past due 90 days or more and nonaccrual loans, increased from $99,000 or 0.09% of net loans at December 31, 2013 to $705,000 or 0.52% of net loans at September 30, 2014. The increase was due to loans involving primarily one customer that experienced a deterioration in financial condition. Management is working diligently to minimize any potential losses. Impairment analyses were performed on all nonperforming loans and no impairment amount was deemed necessary at September 30, 2014.

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)

        September 30, 2014     December 31, 2013  

ASSETS

  Cash and cash equivalents $ 10,446 $ 10,204 Investment securities 6,360 7,298 Loans, net 135,209 115,956 Other assets   9,449   9,354

TOTAL ASSETS

$ 161,464 $ 142,812  

LIABILITIES AND STOCKHOLDERS' EQUITY

  Deposits $ 131,701 $ 111,164 Short-term borrowings (FHLB advances and resale agreements) 6,500 10,000 Long-term borrowings (FHLB advances) 274 301 Other liabilities   1,551   1,163 Total Liabilities 140,026 122,628 Stockholders' equity   21,438   20,184   TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 161,464 $ 142,812 Book Value per share $ 20.37 $ 19.16           Century Next Financial Corporation and Subsidiary Consolidated Statements of Income (unaudited)  

(In thousands, except per share data)

  Three Months Ended September 30, Nine Months Ended September 30, 2014     2013 2014     2013   Interest Income $ 1,852 $ 1,517 $ 5,219 $ 4,456 Interest Expense   163   146   472   425 Net Interest Income 1,689 1,371 4,747 4,031 Provision for Loan Losses   48   51   144   123

Net interest income after provision for loan losses

  1,641   1,320   4,603   3,908 Noninterest Income 253 290 698 727 Noninterest Expense   1,391   1,191   3,978   3,789 Income Before Taxes 503 419 1,323 846 Provision For Income Taxes   147   117   405   255 NET INCOME $ 356 $ 302 $ 918 $ 591   EARNINGS PER SHARE Basic $ 0.36 $ 0.31 $ 0.94 $ 0.61 Diluted $ 0.36 $ 0.31 $ 0.93 $ 0.61

Century Next Financial CorporationWilliam D. Hogan, 318-255-3733President & Chief Executive OfficerorMark A. Taylor, 318-255-3733CPA CGMA, Senior Vice President & Chief Financial Officerwww.bankruston.com