RUSTON, La., July 31, 2017 (GLOBE NEWSWIRE) -- Century Next Financial Corporation (OTCQB:CTUY), the holding company of Bank of Ruston with $261.5 million in assets, today announced financial results for the 2nd quarter ended June 30, 2017.
Financial Performance
For the three months ended June 30, 2017, Century Next Financial Corporation (the “Company”) had net income after tax of $688,000 compared to net income of $615,000 for the three months ended June 30, 2016, an increase of $73,000 or 11.9%. Earnings per share (EPS) for the three months ended were $0.66 per basic share and $0.64 per diluted share compared to $0.59 per basic share and diluted share reported for the three months ended June 30, 2016.
For the six months ended June 30, 2017, net income was $1,272,000 compared to net income of $1,069,000 for the six months ended June 30, 2016, an increase of $203,000 or 19.0%. Earnings per share (EPS) for the six months ended June 30, 2017 were $1.22 and $1.18 per basic share and diluted share, respectively, compared to $1.03 and $1.02 per basic and diluted share, respectively, reported for the same period in 2016.
Balance Sheet
Overall, total assets increased by $22.1 million or 9.2% to $261.5 million at June 30, 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 $16.7 million or 8.3% for the six months ended June 30, 2017 compared to December 31, 2016. Total net loans at June 30, 2017 were $218.2 million compared to $201.5 million at December 31, 2016. The growth was primarily the result of demand for loans secured by real estate including 1-4 family residential, commercial properties, residential construction, and land loans.
Total deposits at June 30, 2017 increased $20.9 million or 10.9% to $212.3 million compared to $191.4 million at December 31, 2016. Noninterest- and interest-bearing checking, time deposits, and savings deposits were the main growth areas contributing to the increase in overall deposits.
Total short-term borrowings were unchanged at $20.0 million at June 30, 2017 compared to December 31, 2016.
Income Statement
Net interest income was $2.55 million for the three months ended June 30, 2017 compared to $2.27 million for the three months ended June 30, 2016. This was an increase of $274,000, or 12.1%. The increase for the quarter was primarily from interest income earned on loans.
Net interest income was $4.94 million for the six months ended June 30, 2017 compared to $4.43 million for the six months ended June 30, 2016. This was an increase of $515,000, or 11.6%. The increase for the quarter was primarily from interest income earned on loans.
The provision for loan losses amounted to $150,000 for the three months ended June 30, 2017, compared to $105,000 in provision for the three months ended June 30, 2016. For the six months ended June 30, 2017, provision for loan losses was $300,000 compared to $210,000 for the same period in 2016. The increase in loan loss provision for the quarter- and year-to-date periods, as compared to the same periods in 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 $478,000 for the three months ended June 30, 2017 compared to $346,000 for the three months ended June 30, 2016, an increase of $132,000 or 38.2%. For the six months ended June 30, 2017, non-interest income was $859,000 compared to $547,000 for the same period in 2016, an increase of $312,000 or 57.0%. The increase was primarily from income generated from loan servicing release fees and service charges and other fees on deposits.
Total non-interest expense increased by $279,000 or 17.5% to $1.87 million for the quarter ended June 30, 2017 compared to $1.59 million for the quarter ended June 30, 2016. For the six months ended June 30, 2017, non-interest expense was $3.66 million compared to $3.16 million for the same period in 2016, an increase of $496,000 or 15.7%. The majority of the increases for both the three- and six-month period were due to increased expenses of salaries and benefits. The Company continues to show improvement in its efficiency ratio, a measure of expense as a percent of total income, to 63.0% for the six months ended June 30, 2017 compared to 63.5% for the same period in 2016.
Additional Information
Century Next Financial Corporation is the holding company for Bank of Ruston (the “Bank”) which conducts business from three full-service banking centers. 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. 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) | ||||||
| June 30, 2017 | December 31, 2016 | |||||
| ASSETS | ||||||
| Cash and cash equivalents | $ | 27,423 | $ | 22,382 | ||
| Investment securities | 2,985 | 3,060 | ||||
| Loans, net | 218,156 | 201,486 | ||||
| Other assets | 12,956 | 12,503 | ||||
| TOTAL ASSETS | $ | 261,520 | $ | 239,431 | ||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
| Deposits | $ | 212,311 | $ | 191,361 | ||
| Short-term borrowings (FHLB advances) | 20,000 | 20,000 | ||||
| Long-term borrowings (FHLB advances) | 157 | 179 | ||||
| Other liabilities | 2,029 | 1,982 | ||||
| Total Liabilities | 234,497 | 213,522 | ||||
| Stockholders' equity | 27,023 | 25,909 | ||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 261,520 | $ | 239,431 | ||
| Book Value per share | $ | 24.76 | $ | 23.74 | ||
| Century Next Financial Corporation and Subsidiary Consolidated Statements of Income (unaudited) | ||||||||||||
| (In thousands, except per share data) | ||||||||||||
| Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||
| 2017 | 2016 | 2017 | 2016 | |||||||||
| Interest Income | $ | 2,916 | $ | 2,523 | $ | 5,632 | $ | 4,904 | ||||
| Interest Expense | 368 | 249 | 690 | 477 | ||||||||
| Net Interest Income | 2,548 | 2,274 | 4,942 | 4,427 | ||||||||
| Provision for Loan Losses | 150 | 105 | 300 | 210 | ||||||||
| Net interest income after provision for loan losses | 2,398 | 2,169 | 4,642 | 4,217 | ||||||||
| Noninterest Income | 478 | 346 | 859 | 547 | ||||||||
| Noninterest Expense | 1,872 | 1,593 | 3,655 | 3,159 | ||||||||
| Income Before Taxes | 1,004 | 922 | 1,846 | 1,605 | ||||||||
| Provision For Income Taxes | 316 | 307 | 574 | 536 | ||||||||
| NET INCOME | $ | 688 | $ | 615 | $ | 1,272 | $ | 1,069 | ||||
| EARNINGS PER SHARE | ||||||||||||
| Basic | $ | 0.66 | $ | 0.59 | $ | 1.22 | $ | 1.03 | ||||
| Diluted | $ | 0.64 | $ | 0.59 | $ | 1.18 | $ | 1.02 | ||||