Century Next Financial Corporation Reports Record 1st Quarter 2025 Results

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Century Next Bank

Wed, Apr 23, 2025, 2:37 PM 8 min read

For the three months ended March 31, 2025, the Company had net income after tax of $3.45 million compared to net income of $2.66 million for the three months ended March 31, 2024, an increase of $790,000 or 29.7%. Earnings per share (EPS) for the three months ended March 31, 2025 were $1.89 per basic and $1.88 diluted share compared to $1.48 per basic and diluted share reported for the three months ended March 31, 2024.

Balance Sheet

Overall, total assets increased by $40.3 million or 4.6% to $909.7 million at March 31, 2025 compared to $869.4 million at December 31, 2024.

Total cash and cash equivalents increased from $125.7 million at December 31, 2024 to $146.2 million at March 31, 2025 for an increase of $20.5 million or 16.3%. Investment securities, primarily available-for-sale, increased by $10.9 million to $109.4 million at March 31, 2025 from $98.5 million at December 31, 2024. The growth in cash and cash equivalents and available-for-sale investment securities combined for the first quarter ending March 31, 2025 increased the Company’s liquidity position from 25.8% of total assets at December 31, 2024 to 28.1% of total assets at March 31, 2025.

Loans, net of deferred fees and costs and allowance for credit losses, including loans held for sale, increased $10.8 million or 1.8% for the three months ended March 31, 2025 compared to December 31, 2024. Total net loans at March 31, 2025 were $616.2 million compared to $605.4 million at December 31, 2024. Of total net loans outstanding for each period, commercial non-real estate loans and residential construction loans increased by $4.8 million each followed by increases of $4.2 million in multi-family real estate loans, $3.0 million in residential 1-4 family real estate loans, $1.7 million in consumer loans, and $439,000 in residential 1-4 family held-for-sale real estate loans for the three months ended March 31, 2025. The increases were offset by decreases of $5.3 million in commercial real estate loans, followed by $1.5 in agricultural real estate loans, and by $1.3 in other combined decreases for the three months ended March 31, 2025.

Total deposit increased by $35.0 million or 4.5% to $805.7 million at March 31, 2025 compared to $770.7 million at December 31, 2024. Of the increase, noninterest-bearing checking increased $46.1 million, and savings increased $154,000 for the three months ended March 31, 2025. The increases were offset by decreases of $5.5 million in money market deposits, $5.4 million in interest-bearing deposits, and $392,000 in time deposit accounts for the three months ended March 31, 2025.

Total long-term borrowings remained the same at $8.5 million at March 31, 2025 and December 31, 2024.

Income Statement

Net interest income was $9.1 million for the three months ended March 31, 2025 compared to $7.6 million for the three months ended March 31, 2024 for an increase of $1.5 million, or 19.6%. The average rate on earning assets decreased to 5.92% at March 31, 2025 compared to 6.13% at March 31, 2024. The cost of interest-bearing liabilities decreased to 3.10% at March 31, 2025 compared to 3.36% at March 31, 2024. The decreases in yield on earning assets and cost of interest-bearing liabilities were both the result of slight declines in interest rates from new and renewing assets and liabilities over the comparative periods. The net interest margin increased to 4.26% for the three months ended March 31, 2025 from 4.08% for the three months ended March 31, 2024.

For the three months ended March 31, 2025, $75,000 of provision for credit losses was expensed compared to no provision for credit loss expensed for the three months ending March 31,2024.

Total non-interest income was $770,000 for the three months ended March 31, 2025 compared to $811,000 for the three months ended March 31, 2024, a decrease of $41,000 or 5.1%. The decrease was primarily from the decline of income from the origination and sale of residential 1-4 family loans held-for-sale for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024.

Total non-interest expense increased by $284,000 or 5.5% to $5.4 million for the three months ended March 31, 2025 compared to $5.1 million for the three months ended March 31, 2024. The largest component contributing to the total increase was an increase in salaries and employee benefits of $191,000 for the three months ended March 31, 2025 as compared to the same period in 2024. All other expenses combined increased by a net of $93,000 in the three months ended March 31, 2025 as compared to the same period in 2024.

The Company’s efficiency ratio, a measure of expense as a percent of total income, decreased to 54.90% for the year three months ended March 31, 2025 compared to 60.99% for the three months ended March 31, 2024. The increase in net interest income, as previously discussed above, for the comparative periods was the primarily driver of this reduction of the efficiency ratio.

Other Financial Information

Nonperforming assets, including loans past due 90 days or more, nonaccrual loans, and other foreclosed assets, decreased from $3.98 million at December 31, 2024 to $3.76 million at March 31, 2025, a decrease of $213,000. Total non-performing assets were 0.41% and 0.46% of totals assets as of March 31, 2025 and December 31, 2024, respectively.

Allowance for credit losses was $6.63 million or 1.06% of total loans at March 31, 2025 compared to $6.07 million or 1.01% of total loans at March 31, 2024. Net recoveries for the three months ended March 31, 2025 were $15,000, compared net recoveries of $18,000 for the three months ended March 31, 2024. The ratio of net recoveries to average loans outstanding was 0.002% at March 31, 2025 and 0.003% at March 31, 2024.

Dividend Declaration

The Board of Directors has approved a cash dividend of $0.75 per share payable on June 5, 2025 to shareholders of record as of May 22, 2025.

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 three locations in Arkansas including two banking offices in Crossett and one banking office in Hamburg. 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)

	March 31, 2025		December 31, 2024

ASSETS

Cash and cash equivalents	$	146,170	$	125,675
Investment securities		110,300		100,623
Loans, net		616,206		605,439
Other assets		37,009		37,663
TOTAL ASSETS	$	909,685	$	869,400
LIABILITIES AND STOCKHOLDERS' EQUITY

Deposits	$	805,721	$	770,710
Long-term borrowings		8,454		8,454
Other liabilities		7,506		7,174
Total Liabilities		821,681		786,338
Stockholders' equity		88,004		83,062


TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	909,685	$	869,400
Book Value per share	$	47.63	$	45.10

Tangible Book Value per share	$	45.95	$	43.38

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

(In thousands, except per share data)

	Three Months Ended March 31
		2025			2024

Interest Income	$	12,616		$	11,411
Interest Expense		3,527			3,812
Net Interest Income		9,089			7,599
Provision for Credit Losses		75			-
Net Interest Income after Provision for Credit Losses		9,014			7,599
Noninterest Income		770			811
Noninterest Expense		5,413			5,129
Income Before Taxes		4,371			3,281
Provision For Income Taxes		920			620
NET INCOME	$	3,451		$	2,661


EARNINGS PER SHARE
Basic	$	1.89		$	1.48
Diluted	$	1.88		$	1.48


Key Ratios:
Annualized Return on Average Assets		1.56	%		1.37	%
Annualized Return on Average Equity		16.34	%		14.59	%
Annualized Net Interest Margin		4.26	%		4.08	%
Efficiency Ratio		54.90	%		60.99	%



	Three Months Ended March 31
Select Operating Ratios		2025			2024
Average Yield on Interest-Earning Assets		5.92	%		6.13	%
Average Cost of Interest-Bearing Liabilities		3.10	%		3.36	%
Net Interest Margin		4.26	%		4.08	%