CTUY Century Next Financial Corporation (QX)

Century Next Financial Corporation (OTCQB: CTUY), the holding company of Bank of Ruston with $142.8 million in assets, today announced financial results for the year ended December 31, 2013.

Financial Performance

For the year ended December 31, 2013, Century Next Financial Corporation (the “Company”) had net income after tax of $819,000 compared to net income of $656,000 for the year ended December 31, 2012, an increase of $163,000 or 24.8%. Earnings per share (EPS) for the full year were $0.84 per basic and diluted share compared to $0.68 per basic and diluted share reported for the full year ended December 31, 2012. Net Income for the Company’s wholly-owned subsidiary, Bank of Ruston, was $866,000 for the year ended December 31, 2013 compared to $710,000 for the year ended December 31, 2012, an increase of $156,000 or 22.0%.

President & CEO William D. Hogan stated, “This is the best year in our Company’s history, and we want to thank our customers for their loyalty and employees for their hard work in helping make this year possible. We look forward to the year ahead in achieving continued success for the shareholders and meeting the needs of our customers.”

Balance Sheet

Overall, total assets increased by $22.2 million or 18.4% to $142.8 million at December 31, 2013 compared to $120.6 million at December 31, 2012.

The largest component of assets, loans, net of deferred fees and costs and the allowance for loan losses, increased $19.5 million or 20.3% for the year ended December 31, 2013 compared to December 31, 2012. Total net loans at December 31, 2013 were $116.0 million compared to $96.4 million at December 31, 2012. The growth was primarily the result of demand for commercial loans both real estate and business.

Total deposits at December 31, 2013 increased $16.5 million or 17.5% to $111.2 million compared to $94.6 million at December 31, 2012. Time, interest-bearing checking, and savings deposits were the growth areas mainly contributing to the increase in overall deposits.

Total short-term borrowings increased to $10.0 million at December 31, 2013 from $5.3 million at December 31, 2012, an increase of $4.7 million or 89.5%. This growth was primarily in Federal Home Loan Bank borrowings to help fund loan growth.

Income Statement

Net interest income was $5.5 million for the year ended December 31, 2013 compared to $4.8 million for the year ended December 31, 2012. This was an increase of $697,000, or 14.6%. The increase for the year was primarily from interest income earned on loans from increased volume. The Company also reduced overall interest expense.

The provision for loan losses amounted to $174,000 for the year ended December 31, 2013, compared to $120,000 in provision for the year ended December 31, 2012. The increase in loan loss provision for the year as compared to the prior year 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 $922,000 for the year ended December 31, 2013 compared to $1.2 million for the ended December 31, 2012, a decrease of $230,000 or 20.0%. The decrease was primarily from a reduction of income generated from mortgage activity due to increasing mortgage rates and a slowing of the refinancing cycle.

Total non-interest expense increased by $202,000 or 4.2% to $5.1 million for the year ended December 31, 2013 compared to $4.9 million for the year ended December 30, 2012. Although non-interest expense increased year over year, the Company showed improvement in its efficiency ratio, a measure of expense as a percent of total income, to 79.0% for the year ended December 31, 2013 compared to 81.8% for the same period in 2012.

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)

December 31,     2013   2012  

ASSETS

  Cash and cash equivalents $ 10,204 $ 9,175 Investment securities 7,298 6,899 Loans, net 115,956 96,426 Other assets   9,354   8,148 TOTAL ASSETS $ 142,812 $ 120,648  

LIABILITIES AND STOCKHOLDERS' EQUITY

  Deposits $ 111,164 $ 94,634 Short-term borrowings (FHLB advances and resale agreements) 10,000 5,278 Long-term borrowings (FHLB advances) 301 340 Other liabilities   1,163   976 Total Liabilities 122,628 101,228 Stockholders' equity   20,184   19,420     TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 142,812 $ 120,648 Book Value per share $ 19.16 $ 18.39    

Century Next Financial Corporation and Subsidiary

Consolidated Statements of Income (unaudited)

 

(In thousands, except per share data)

Years Ended December 31, 2013   2012   Interest Income $ 6,048 $ 5,428 Interest Expense   580   657 Net Interest Income 5,468 4,771 Provision for Loan Losses   174   120 Net interest income after provision for loan losses   5,294   4,651 Noninterest Income 922 1,152 Noninterest Expense   5,048   4,846 Income Before Taxes 1,168 957 Provision For Income Taxes   349   301 NET INCOME $ 819 $ 656     EARNINGS PER SHARE Basic $ 0.84 $ 0.68 Diluted $ 0.84 $ 0.68  

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