##### Table of Contents



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 
 FORM 10-Q
  þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the quarterly period ended September 30, 2010
 OR
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the transition period from  to
 Commission file number: 000-54133
 Century Next Financial Corporation
  Louisiana
    
    27-2851432(State or Other Jurisdiction of Incorporation or Organization)
    
    (I.R.S. Employer Identification No.)505 North Vienna StreetRuston, Louisiana
    
    71270(Address of Principal Executive Offices)
    
    (Zip Code)
 (Registrants Telephone Number, Including Area Code)
 (Former name, former address and former fiscal year, if changed since last report)
 o þ
 o o
  Large accelerated filer o
    
    Accelerated filer o
    
    Non-accelerated filer o
    
    Smaller reporting company þ(Do not check if a smaller reporting company)
 o þ
 APPLICABLE ONLY TO CORPORATE ISSUERS:




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##### 



Century Next Financial Corporation
Form 10-Q
 Table of Contents
 PagePART I  FINANCIAL INFORMATIONItem 1  Financial Statements (Unaudited)
    
    
    1Item 2  Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    11Item 3  Quantitative and Qualitative Disclosures About Market Risk
    
    
    19Item 4  Controls and Procedures
    
    
    19PART II  OTHER INFORMATIONItem 1  Legal Proceedings
    
    
    19Item 1A  Risk Factors
    
    
    19Item 2  Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    19Item 3  Defaults Upon Senior Securities
    
    
    20Item 4  (Removed and Reserved)
    
    
    20Item 5  Other Information
    
    
    20Item 6  Exhibits
    
    
    20Signatures
    
    
    21Exhibit 31.1Exhibit 31.2Exhibit 32.1




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CENTURY NEXT FINANCIAL CORPORATION
 CONSOLIDATED BALANCE SHEETS  (In thousands, except share data)
 September 30,
    
    
    December 31,2010
    
    
    2009ASSETSCash and cash equivalents
    
    $
    15,151
    
    
    $
    4,674Investment and mortgage-backed securities
    
    
    6,039
    
    
    
    7,258Federal Home Loan Bank stock
    
    
    280
    
    
    
    280Loans (includes loans held for sale of $2,883 and
$761), less allowance for loan losses of $207
and $176
    
    
    72,787
    
    
    
    66,998Accrued interest receivable:Loans
    
    
    325
    
    
    
    308Securities
    
    
    30
    
    
    
    28Premises and equipment, net of accumulated
depreciation of $1,444 and $1,313
    
    
    3,783
    
    
    
    3,885Foreclosed real estate
    
    
    
    
    
    
    Other assets
    
    
    2,365
    
    
    
    2,444Total assets
    
    $
    100,760
    
    
    $
    85,875LIABILITIES AND EQUITYLiabilities:DepositsSavings and demand
    
    $
    37,923
    
    
    $
    31,659Time
    
    
    41,516
    
    
    
    44,284Total deposits
    
    
    79,439
    
    
    
    75,943Advances from borrowers for insurance and taxes
    
    
    59
    
    
    
    21FHLB advances
    
    
    424
    
    
    
    Securities sold under agreements to repurchase
    
    
    772
    
    
    
    907Accrued interest payable
    
    
    17
    
    
    
    21Other liabilities
    
    
    1,817
    
    
    
    506Total liabilities
    
    
    82,528
    
    
    
    77,399Equity:Preferred Stock, $.01 par value  1,000,000 shares
authorized;
none issued
    
    
    
    
    
    
    Common Stock, $.01 par value  9,000,000 shares authorized;
1,058,000 issued; 1,058,000 outstanding
    
    
    11
    
    
    
    Additional Paid In Capital
    
    
    9,919
    
    
    
    Unearned ESOP Shares (66,704 shares)
    
    
    (667
    )
    
    
    Accumulated other comprehensive income, net
of taxes of $48 and $35
    
    
    94
    
    
    
    69Retained earnings
    
    
    8,875
    
    
    
    8,407Total equity
    
    
    18,232
    
    
    
    8,476Total liabilities and equity
    
    $
    100,760
    
    
    $
    85,875
 The accompanying notes are an integral part of the financial statements.
  1




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CENTURY NEXT FINANCIAL CORPORATION
 CONSOLIDATED STATEMENTS OF INCOME  (In thousands, except share data)
 For the Three Months
    
    
    For the Nine MonthsEnded September 30,
    
    
    Ended September 30,2010
    
    
    2009
    
    
    2010
    
    
    2009Interest income:First mortgage loans
    
    $
    156
    
    
    $
    187
    
    
    $
    499
    
    
    $
    574Consumer and other loans
    
    
    983
    
    
    
    886
    
    
    
    2,800
    
    
    
    2,534Investment securities
    
    
    40
    
    
    
    46
    
    
    
    139
    
    
    
    163Other
    
    
    
    
    
    
    
    
    
    
    1
    
    
    
    1Total interest income
    
    
    1,179
    
    
    
    1,119
    
    
    
    3,439
    
    
    
    3.272Interest expense:Savings and interest-bearing demand deposits
    
    
    40
    
    
    
    56
    
    
    
    108
    
    
    
    165Time deposits
    
    
    211
    
    
    
    279
    
    
    
    667
    
    
    
    830Other borrowings
    
    
    3
    
    
    
    1
    
    
    
    8
    
    
    
    2Total interest expense
    
    
    254
    
    
    
    336
    
    
    
    783
    
    
    
    997Net interest income
    
    
    925
    
    
    
    783
    
    
    
    2,656
    
    
    
    2,275Provision for loan losses
    
    
    26
    
    
    
    7
    
    
    
    28
    
    
    
    14Net interest income after provision for loan
losses
    
    
    899
    
    
    
    776
    
    
    
    2,628
    
    
    
    2,261Noninterest income:Service charges
    
    
    43
    
    
    
    55
    
    
    
    133
    
    
    
    153Loan fees
    
    
    178
    
    
    
    106
    
    
    
    376
    
    
    
    344Gain on sale of foreclosed real estate
    
    
    
    
    
    
    
    
    
    
    3
    
    
    
    Gain on cash value of life insurance
    
    
    11
    
    
    
    9
    
    
    
    28
    
    
    
    19Gain on sale of fixed assets
    
    
    
    
    
    
    
    
    
    
    53
    
    
    
    Other operating income
    
    
    12
    
    
    
    101
    
    
    
    38
    
    
    
    125Total noninterest income
    
    
    244
    
    
    
    271
    
    
    
    631
    
    
    
    641Noninterest expenseSalaries and benefits
    
    
    515
    
    
    
    481
    
    
    
    1,526
    
    
    
    1,406Occupancy expense
    
    
    93
    
    
    
    96
    
    
    
    285
    
    
    
    263Expense of foreclosed real estate
    
    
    
    
    
    
    
    
    
    
    1
    
    
    
    2FDIC deposit insurance
    
    
    29
    
    
    
    23
    
    
    
    81
    
    
    
    92Other operating expense
    
    
    245
    
    
    
    198
    
    
    
    665
    
    
    
    562Total noninterest expense
    
    
    882
    
    
    
    798
    
    
    
    2,558
    
    
    
    2,325Income before income taxes
    
    
    261
    
    
    
    249
    
    
    
    701
    
    
    
    577Income taxes
    
    
    86
    
    
    
    47
    
    
    
    233
    
    
    
    166Net income
    
    $
    175
    
    
    $
    202
    
    
    $
    468
    
    
    $
    411Earnings Per Common ShareBasic
    
    $
    0.18
    
    
    
    N/A
    
    
    $
    0.47
    
    
    
    N/ADiluted
    
    $
    0.18
    
    
    
    N/A
    
    
    $
    0.47
    
    
    
    N/A
 The accompanying notes are an integral part of the financial statements.
  2




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CENTURY NEXT FINANCIAL CORPORATION
 CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY  (In thousands)
 AccumulatedAdditional
    
    
    Unearned
    
    
    OtherCommon
    
    
    Paid In
    
    
    ESOP
    
    
    Comprehensive
    
    
    Retained
    
    
    TotalStock
    
    
    Capital
    
    
    Shares
    
    
    Income
    
    
    Earnings
    
    
    EquityBalance at December 31, 2008
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    16
    
    
    $
    7,942
    
    
    $
    7,958Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    411
    
    
    
    411Unrealized gain on securities
available for sale, net of
taxes of $21
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    40
    
    
    
    
    
    
    
    40Comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    451Balance at September 30, 2009
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    56
    
    
    $
    8,353
    
    
    $
    8,409Balance at December 31, 2009
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    69
    
    
    $
    8,407
    
    
    $
    8,476Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    468
    
    
    
    468Unrealized gain on securities
available for sale, net of
taxes of $13
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    25
    
    
    
    
    
    
    
    25Comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    493Issuance of Common Stock for
Initial Public Offering,
net of $651 conversion
cost
    
    
    11
    
    
    
    9,919
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    9,930Shares Purchased for ESOP
    
    
    
    
    
    
    
    
    
    
    (667
    )
    
    
    
    
    
    
    
    
    
    
    (667
    )Balance at September 30, 2010
    
    $
    11
    
    
    $
    9,919
    
    
    $
    (667
    )
    
    $
    94
    
    
    $
    8,875
    
    
    $
    18,232
 The accompanying notes are an integral part of the financial statements.
  3




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CENTURY NEXT FINANCIAL CORPORATION
 CONSOLIDATED STATEMENTS OF CASH FLOWS  (In thousands)
 Nine Months Ended September 30,2010
    
    
    2009Cash flows from operating activities:Net income
    
    $
    468
    
    
    $
    411Adjustments to reconcile net income to net cash
used by operating activities:Provision for loan losses
    
    
    28
    
    
    
    14Depreciation
    
    
    150
    
    
    
    135Gain on sale of foreclosed real estate
    
    
    (3
    )
    
    
    Gain on sale of fixed assets
    
    
    (53
    )
    
    
    Net increase in loans held for sale
    
    
    (2,121
    )
    
    
    (1,174
    )Increase in accrued interest receivable
    
    
    (19
    )
    
    
    (51
    )Decrease in accrued interest payable
    
    
    (4
    )
    
    
    (11
    )(Increase) decrease in other assets
    
    
    79
    
    
    
    (47
    )Increase in other operating liabilities
    
    
    362
    
    
    
    144Total adjustments
    
    
    (1,581
    )
    
    
    (990
    )Net cash used by operating activities
    
    
    (1,113
    )
    
    
    (579
    )Cash flows from investing activities:Proceeds from sales and maturities of investment securities
    
    
    1,247
    
    
    
    2,147Purchase of investment securities
    
    
    
    
    
    
    (3,054
    )Net redemption (purchase) of Federal Home Loan Bank stock
    
    
    (1
    )
    
    
    Proceeds from sale of foreclosed real estate
    
    
    4
    
    
    
    Proceeds from sale of fixed assets
    
    
    150
    
    
    
    Purchase of premises and equipment, net
    
    
    (145
    )
    
    
    (380
    )Net increase in loans
    
    
    (3,699
    )
    
    
    (4,505
    )Net cash used by investing activities
    
    
    (2,444
    )
    
    
    (5,792
    )Cash flows from financing activities:Net increase in savings and demand deposits
    
    
    6,264
    
    
    
    353Net increase (decrease) in time deposits
    
    
    (2,768
    )
    
    
    5,258Increase in advances from borrowers for
insurance and taxes
    
    
    38
    
    
    
    35Net increase (decrease) in FHLB advances
    
    
    424
    
    
    
    (53
    )Net increase (decrease) in securities sold under agreements to
repurchase
    
    
    (135
    )
    
    
    1,061Proceeds from Issuance of Common Stock
    
    
    10,580
    
    
    
    Net increase in Liquidation Account
    
    
    949Cost of Issuance of Common Stock
    
    
    (651
    )
    
    
    Loan to ESOP for purchase of stock
    
    
    (667
    )
    
    
    Net cash provided by financing activities
    
    
    14,034
    
    
    
    6,654Net increase in cash and cash equivalents
    
    
    10,477
    
    
    
    283Cash and cash equivalents at beginning of year
    
    
    4,674
    
    
    
    3,515Cash and cash equivalents at end of year
    
    $
    15,151
    
    
    $
    3,798Supplementary cash flow information:Cash paid: Interest
    
    $
    787
    
    
    $
    1,009Income Taxes
    
    $
    19
    
    
    $
    163
 The accompanying notes are an integral part of the financial statements.
  4




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Notes to Financial Statements (Unaudited)
 Note 1  Basis of Presentation
       5




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Note 2  Recent Accounting Pronouncements
 Topic 105 
Generally Accepted Accounting Principles amendments based on Statement of Financial Accounting
Standards No. 168  The FASB Accounting Standards Codification and the Hierarchy of Generally
Accepted Accounting Principles The FASB Accounting Standards Codification and the Hierarchy of Generally
Accepted Accounting Principles
  The Hierarchy of Generally Accepted Accounting Principles
 Fair Value
Measurements and Disclosures (Topic 820)  Improving Disclosures about Fair Value Measurements
  6




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Note 3  Investment Securities
  September 30, 2010Held to
    
    
    AvailableMaturity
    
    
    for SalePurchases of securities
    
    
    
    
    
    
    Maturities of securities
    
    
    27
    
    
    
    1,220
 Note 4  Loans
  September 30,
    
    
    December 31,2010
    
    
    2009Held for
sale (one- to-four family)
    
    
    2,883
    
    
    
    761Residential
real estate (one- to-four family)
    
    
    35,276
    
    
    
    35,338Commercial real estate and lines of credit
    
    
    12,547
    
    
    
    12,670Multifamily real estate
    
    
    2,162
    
    
    
    2,247Land
    
    
    6,789
    
    
    
    4,292Residential construction
    
    
    611
    
    
    
    1,365Commercial business
    
    
    5,745
    
    
    
    4,436Home equity lines of credit
    
    
    1,061
    
    
    
    1,697Consumer non-real estate
    
    
    5,900
    
    
    
    4,337Overdrafts
    
    
    20
    
    
    
    3172,994
    
    
    
    67,174Allowance for loan losses
    
    
    (207
    )
    
    
    (176
    )72,787
    
    
    
    66,998
  September 30,
    
    
    December 31,2010
    
    
    2009Beginning balance
    
    
    176
    
    
    
    183Provision for loan losses
    
    
    27
    
    
    
    16Loans charged off
    
    
    
    
    
    
    (24
    )Recoveries
    
    
    4
    
    
    
    1Ending balance
    
    
    207
    
    
    
    176
  7




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Note 4  Loans (continued)
   Note 5  Regulatory Capital
  Required To Be WellCapitalized UnderRequired For Capital
    
    
    Prompt CorrectiveActual
    
    
    Adequacy Purposes:
    
    
    Action Provisions:Amount
    
    
    Ratio
    
    
    Amount
    
    
    Ratio
    
    
    Amount
    
    
    RatioAs of September 30, 2010Total capital (to Risk
Weighted Assets)
    
    
    14,260
    
    
    
    21.78
    %
    
    
    8,128
    
    
    
    8.0
    %
    
    
    10,160
    
    
    
    10.0
    %Core (Tier 1) Capital (to
Risk Weighted Assets)
    
    
    14,166
    
    
    
    21.52
    %
    
    
    4,064
    
    
    
    4.0
    %
    
    
    6,096
    
    
    
    6.0
    %Core (Tier 1) Capital
(to Total Assets)
    
    
    14,166
    
    
    
    13.94
    %
    
    
    4,064
    
    
    
    4.0
    %
    
    
    5,080
    
    
    
    5.0
    %Tangible Capital
(to Total Assets)
    
    
    14,166
    
    
    
    13.94
    %
    
    
    1,524
    
    
    
    1.5
    %
    
    
    N/A
    
    
    
    N/AAs of December 31, 2009Total capital (to Risk
Weighted Assets)
    
    
    8,580
    
    
    
    13.93
    %
    
    
    4,927
    
    
    
    8.0
    %
    
    
    6,159
    
    
    
    10.0
    %Core (Tier I) Capital (to
Risk Weighted Assets)
    
    
    8,407
    
    
    
    13.65
    %
    
    
    N/A
    
    
    
    N/A
    
    
    
    3,695
    
    
    
    6.0
    %Core (Tier I) Capital
(to Total Assets)
    
    
    8,407
    
    
    
    9.79
    %
    
    
    3,434
    
    
    
    4.0
    %
    
    
    4,293
    
    
    
    5.0
    %Tangible Capital
(to Total Assets)
    
    
    8,407
    
    
    
    9.79
    %
    
    
    1,288
    
    
    
    1.5
    %
    
    
    N/A
    
    
    
    N/A
  September 30, 2010
    
    
    December 31, 2009GAAP equity
    
    
    14,930
    
    
    
    8,476Allowance
for loan losses/other
    
    
    (670
    )
    
    
    104Total capital
    
    
    14,260
    
    
    
    8,580
  8




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Note 6  Deposits
  September 30, 2010
    
    
    December 31, 2009Weighted
    
    
    
    
    
    
    WeightedAverage
    
    
    
    
    
    
    AverageAmount
    
    
    Rate
    
    
    Amount
    
    
    RateSavings and DemandNoninterest bearing accounts
    
    $
    7,628
    
    
    
    
    
    
    
    7,065
    
    
    
    Interest bearing checking
    
    
    15,378
    
    
    
    0.40
    %
    
    
    13,919
    
    
    
    0.40
    %Savings accounts
    
    
    7,210
    
    
    
    0.40
    %
    
    
    6,716
    
    
    
    0.40
    %Money market
    
    
    7,707
    
    
    
    1.00
    %
    
    
    3,959
    
    
    
    1.00
    %$
    37,923
    
    
    
    
    
    
    
    31,659Time Deposits0.00% to 0.99%
    
    $
    2,016
    
    
    
    0.64
    %
    
    $
    
    
    
    
    1.00% to 1.99%
    
    
    23,365
    
    
    
    1.47
    %
    
    
    14,958
    
    
    
    1.62
    %2.00% to 2.99%
    
    
    12,142
    
    
    
    2.34
    %
    
    
    17,294
    
    
    
    2.19
    %3.00% to 3.99%
    
    
    3,835
    
    
    
    3.34
    %
    
    
    11,557
    
    
    
    3.26
    %4.00% to 4.99%
    
    
    158
    
    
    
    4.00
    %
    
    
    475
    
    
    
    4.16
    %Total time deposits
    
    $
    41,516
    
    
    
    
    
    
    $
    44,284Total deposits
    
    $
    79,439
    
    
    
    
    
    
    $
    75,943
  2011
    
    $
    18,8962012
    
    
    1,635Thereafter
    
    
    130$
    20,661
  Note 7  Fair Value Measurements
   
    
    Level 1 valuations, where the valuation is based on quoted market prices for
identical assets or liabilities traded in active markets (which include exchanges
and over-the-counter markets with sufficient volume).
  9




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Note 7  Fair Value Measurements (Continued)
 
    
    Level 2 valuations, where the valuation is based on quoted market prices for
similar instruments traded in active markets, quoted prices for identical or similar
instruments in markets that are not active, and model-based valuation techniques for
which all significant assumptions are observable in the market.
 
    
    Level 3 valuations, where the valuation is generated from model-based techniques
that use significant assumptions not observable in the market, but observable based
on Bank-specific data. These unobservable assumptions reflect the Banks own
estimates for assumptions that market participants would use in pricing the asset or
liability. Valuation techniques typically include option pricing models, discounted
cash flow models, and similar techniques, but may also include the use of market
prices of assets or liabilities that are not directly comparable to the subject
asset or liability.
 Items Measured at Fair Value on a Recurring Basis
  EstimatedLevel 1
    
    
    Level 2
    
    
    Level 3
    
    
    Fair ValueSeptember 30, 2010Securities available for sale:FHLB certificates
    
    
    
    
    
    
    2,567
    
    
    
    
    
    
    
    2,567GNMA certificates
    
    
    
    
    
    
    15
    
    
    
    
    
    
    
    15FHLMC certificates
    
    
    
    
    
    
    1,019
    
    
    
    
    
    
    
    1,019FNMA certificates
    
    
    
    
    
    
    1,585
    
    
    
    
    
    
    
    1,585FNR certificates
    
    
    
    
    
    
    389
    
    
    
    
    
    
    
    389SBA pools
    
    
    
    
    
    
    8
    
    
    
    
    
    
    
    8Munis
    
    
    
    
    
    
    313
    
     
    
    

    
    
    
    313
    
    
    
    5,896
    
    
    
    
    
    
    
    5,896
 Items Measured at Fair Value on a Non-Recurring Basis
  10




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Note 8  Mutual to Stock Conversion
   
 Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
   General
   11




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##### Table of Contents



Critical Accounting Policies
  Allowance for Loan Losses.
  Other-Than-Temporary Impairment
  12




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##### Table of Contents



Income Taxes.
 Comparison of Financial Condition at September 30, 2010 and December 31, 2009
     13




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Comparison of Operating Results for the Three and Nine Months Ended September 30, 2010 and 2009
      14




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15




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Average Balances, Net Interest Income, and Yields Earned and Rates Paid.
 Three Months Ended September 30,2010
    
    
    2009Average
    
    
    
    
    
    
    
    
    
    
    AverageAverage
    
    
    
    
    
    
    Yield/
    
    
    Average
    
    
    
    
    
    
    Yield/Balance
    
    
    Interest
    
    
    Rate(1)
    
    
    Balance
    
    
    Interest
    
    
    Rate(1)(Dollars in thousands)Interest-earning assets:Loans receivable(1)
    
    $
    72,284
    
    
    $
    1,139
    
    
    
    6.30
    %
    
    $
    65,685
    
    
    $
    1,073
    
    
    
    6.53
    %Investment securities
    
    
    6,283
    
    
    
    40
    
    
    
    2.55
    %
    
    
    6,250
    
    
    
    46
    
    
    
    2.94
    %Other interest-earning assets
    
    
    6,747
    
    
    
    
    
    
    
    
    
    
    
    3,106
    
    
    
    
    
    
    
    Total interest-earning assets
    
    
    85,314
    
    
    
    1,179
    
    
    
    5.53
    %
    
    
    75,041
    
    
    
    1,119
    
    
    
    5.96
    %Non-interest-earning assets
    
    
    7,908
    
    
    
    
    
    
    
    
    
    
    
    7,905Total assets
    
    $
    93,222
    
    
    
    
    
    
    
    
    
    
    $
    82,946Interest-bearing liabilities:Savings, NOW and money
market accounts
    
    
    29,767
    
    
    
    40
    
    
    
    0.54
    %
    
    
    25,400
    
    
    
    56
    
    
    
    0.88
    %Certificates of deposit
    
    
    43,380
    
    
    
    211
    
    
    
    1.95
    %
    
    
    41,193
    
    
    
    279
    
    
    
    2.71
    %Total interest-bearing deposits
    
    
    73,147
    
    
    
    251
    
    
    
    1.37
    %
    
    
    66,593
    
    
    
    335
    
    
    
    2.01
    %Other borrowings
    
    
    1,124
    
    
    
    3
    
    
    
    1.07
    %
    
    
    489
    
    
    
    1
    
    
    
    0.82
    %Total interest-bearing liabilities
    
    
    74,271
    
    
    
    254
    
    
    
    1.37
    %
    
    
    67,082
    
    
    
    336
    
    
    
    2.00
    %Non-interest-bearing liabilities
    
    
    9,964
    
    
    
    
    
    
    
    
    
    
    
    7,489Total liabilities
    
    
    84,235
    
    
    
    
    
    
    
    
    
    
    
    74,571Equity
    
    
    8,987
    
    
    
    
    
    
    
    
    
    
    
    8,375Total liabilities and equity
    
    $
    93,222
    
    
    
    
    
    
    
    
    
    
    $
    82,946Net interest-earning assets
    
    $
    11,043
    
    
    
    
    
    
    
    
    
    
    $
    7,959Net interest income; average interest
rate spread
    
    
    
    
    
    $
    925
    
    
    
    4.16
    %
    
    
    
    
    
    $
    783
    
    
    
    3.96
    %Net interest margin(2)
    
    
    
    
    
    
    
    
    
    
    4.34
    %
    
    
    
    
    
    
    
    
    
    
    4.17
    %Average interest-earning assets to
average interest-bearing liabilities
    
    
    
    
    
    
    
    
    
    
    114.87
    %
    
    
    
    
    
    
    
    
    
    
    111.86
    %
 
 (1)
    
    Calculated net of deferred fees and discounts, loans in process and allowance for loan
losses.(2)
    
    Equals net interest income divided by average interest-earning assets.  16




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##### Table of Contents



Nine Months Ended September 30,2010
    
    
    2009Average
    
    
    
    
    
    
    
    
    
    
    AverageAverage
    
    
    
    
    
    
    Yield/
    
    
    Average
    
    
    
    
    
    
    Yield/Balance
    
    
    Interest
    
    
    Rate(1)
    
    
    Balance
    
    
    Interest
    
    
    Rate(1)(Dollars in thousands)Interest-earning assets:Loans receivable(1)
    
    $
    70,065
    
    
    $
    3,299
    
    
    
    6.28
    %
    
    $
    64,107
    
    
    $
    3,108
    
    
    
    6.46
    %Investment securities
    
    
    6,718
    
    
    
    139
    
    
    
    2.76
    %
    
    
    6,945
    
    
    
    163
    
    
    
    3.13
    %Other interest-earning assets
    
    
    5,787
    
    
    
    1
    
    
    
    0.02
    %
    
    
    2,496
    
    
    
    1
    
    
    
    0.05
    %Total interest-earning assets
    
    
    82,570
    
    
    
    3,439
    
    
    
    5.55
    %
    
    
    73,548
    
    
    
    3,272
    
    
    
    5.93
    %Non-interest-earning assets
    
    
    7,760
    
    
    
    
    
    
    
    
    
    
    
    6,939Total assets
    
    $
    90,330
    
    
    
    
    
    
    
    
    
    
    $
    80,487Interest-bearing liabilities:Savings, NOW and money market
accounts
    
    
    28,312
    
    
    
    108
    
    
    
    0.51
    %
    
    
    25,539
    
    
    
    165
    
    
    
    0.86
    %Certificates of deposit
    
    
    43,831
    
    
    
    667
    
    
    
    2.03
    %
    
    
    38,973
    
    
    
    830
    
    
    
    2.84
    %Total interest-bearing deposits
    
    
    72,143
    
    
    
    775
    
    
    
    1.43
    %
    
    
    64,512
    
    
    
    995
    
    
    
    2.06
    %Other borrowings
    
    
    979
    
    
    
    8
    
    
    
    1.09
    %
    
    
    285
    
    
    
    2
    
    
    
    0.94
    %Total interest-bearing liabilities
    
    
    73,122
    
    
    
    783
    
    
    
    1.43
    %
    
    
    64,797
    
    
    
    997
    
    
    
    2.05
    %Non-interest-bearing liabilities
    
    
    8,391
    
    
    
    
    
    
    
    
    
    
    
    7,444Total liabilities
    
    
    81,513
    
    
    
    
    
    
    
    
    
    
    
    72,241Equity
    
    
    8,817
    
    
    
    
    
    
    
    
    
    
    
    8,246Total liabilities and equity
    
    $
    90,330
    
    
    
    
    
    
    
    
    
    
    $
    80,487Net interest-earning assets
    
    $
    9,448
    
    
    
    
    
    
    
    
    
    
    $
    8,751Net interest income; average interest
rate spread
    
    
    
    
    
    $
    2,656
    
    
    
    4.13
    %
    
    
    
    
    
    $
    2,275
    
    
    
    3.88
    %Net interest margin(2)
    
    
    
    
    
    
    
    
    
    
    4.29
    %
    
    
    
    
    
    
    
    
    
    
    4.12
    %Average interest-earning assets to
average interest-bearing liabilities
    
    
    
    
    
    
    
    
    
    
    112.92
    %
    
    
    
    
    
    
    
    
    
    
    113.51
    %
 
 (1)
    
    Calculated net of deferred fees and discounts, loans in process and allowance for loan
losses.(2)
    
    Equals net interest income divided by average interest-earning assets. Provision for Loan Losses.
   17




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Liquidity and Capital Resources
       18




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##### Table of Contents



Impact of Inflation and Changing Prices
  
 Item 3  Quantitative and Qualitative Disclosures About Market Risk.
  
 Item 4  Controls and Procedures.
   
 PART II  OTHER INFORMATION
 
 Item 1  Legal Proceedings.
  
 Item 1A  Risk Factors.
  
 Item 2  Unregistered Sales of Equity Securities and Use of Proceeds.
    19




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##### Table of Contents



Item 3  Defaults Upon Senior Securities.
  
 Item 4  (Removed and Reserved).
 
 Item 5  Other Information.
  
 Item 6  Exhibits.
  No.
    
    Description31.1
    
    
    Rule 13a-14(a)/15d-14(a) Certification of the Chief Executive Officer31.2
    
    
    Rule 13a-14(a)/15d-14(a) Certification of the Chief Financial Officer32.1
    
    
    Section 1350 Certification
  20




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##### Table of Contents



SIGNATURES
  CENTURY NEXT FINANCIAL CORPORATIONDate: November 15, 2010
    By:

/s/ Benjamin
L. DennyBenjamin L. DennyPresident and Chief Executive OfficerDate:  November 15, 2010
    By:

/s/ G.
Randall AllisonG. Randall AllisonChief Financial Officer  21