t74945_10q.htm

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, 2012

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
(Exact name of registrant as specified in its charter)

	LOUISIANA				27-2851432
(State or other jurisdiction of incorporation or organization)				(I.R.S. Employer Identification No.)

	505 North Vienna St., Ruston, Louisiana				71270
(Address of principal executive offices)				(Zip Code)

	(318) 255-3733
(Registrant’s telephone number, including area code)

	Not Applicable
(Former name, former address, and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes þ No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Date File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes þ No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer o		Accelerated filer o
Non-accelerated filer o	(Do not check if a smaller reporting company)	Smaller reporting company þ

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes o No þ

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:

$.01 par value Common Stock: 1,055,760 shares outstanding at November 9, 2012

TABLE OF CONTENTS

		PAGE
PART I	FINANCIAL INFORMATION

Item 1.	Financial Statements (Unaudited)	3

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	19

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	27

Item 4.	Controls and Procedures	27

PART II	OTHER INFORMATION

Item 1.	Legal Proceedings	28

Item 1A.	Risk Factors	28

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	28

Item 3.	Defaults Upon Senior Securities	28

Item 4.	Mine Safety Disclosures	28

Item 5.	Other Information	28

Item 6.	Exhibits	29

Signatures		30

PART I – FINANCIAL INFORMATION

ITEM 1. Financial Statements (Unaudited)

CENTURY NEXT FINANCIAL CORPORATION AND SUBSIDIARY

CONSOLIDATED BALANCE SHEETS (unaudited)

(In thousands)	September 30, 2012			December 31, 2011

ASSETS
Cash and cash equivalents	$	6,554		$	5,200
Debt securities:
Available-for-sale		6,101			6,971
Held-to-maturity (including $956 and $99 at fair value)		949			99
Total Debt Securities		7,050			7,070
Federal Home Loan Bank stock		60			281
Other equity investments		320			320
Loans:
Loans, net of unearned income		86,246			83,257
Loans held for sale		2,724			3,574
Allowance for loan losses		(347	)		(245	)
Net Loans		88,623			86,586
Accrued interest receivable		519			454
Premises and equipment, net of accumulated depreciation of $1,779 and $1,707		4,127			4,259
Other foreclosed assets		-			9
Other assets		3,440			3,239
TOTAL ASSETS	$	110,693		$	107,418

LIABILITIES AND STOCKHOLDERS’ EQUITY

Liabilities:
Deposits
Noninterest-bearing	$	10,462		$	8,323
Interest-bearing		78,213			75,616
Total Deposits		88,675			83,939
Advances from borrowers for insurance and taxes		98			57
Short-term borrowings (FHLB advances and resale agreements)		1,413			3,502
Long-term borrowings (FHLB advances)		350			381
Accrued interest payable		10			12
Other liabilities		938			765
Total Liabilities		91,484			88,656

Stockholders’ equity:
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; 1,055,760 and 1,058,000 outstanding		11			11
Additional paid-in capital		10,131			9,952
Treasury Stock, at Cost - (2,240 and 0 shares)		(29	)		-
Unearned shares held by Recognition and Retention Plan (33,325 and 25,100 shares)		(578	)		(365	)
Unearned ESOP Shares (60,034 and 62,535 shares)		(600	)		(625	)
Retained earnings		10,196			9,699
Accumulated other comprehensive income-net of taxes, $40 and $47		78			90
Total Stockholders’ Equity		19,209			18,762

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	110,693		$	107,418

The accompanying notes are an integral part of the consolidated financial statements.

CENTURY NEXT FINANCIAL CORPORATION AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF INCOME (unaudited)

	Quarter Ended September 30,						Nine Months Ended September 30,
(In thousands, except share data)	2012			2011			2012			2011

INTEREST INCOME
Loans (including fees)	$	1,331		$	1,304		$	3,906		$	3,659
Debt securities:
Taxable		35			30			86			107
Tax-exempt		8			4			14			10
Other		6			2			11			4
Total Interest Income		1,380			1,340			4,017			3,780

INTEREST EXPENSE
Deposits		153			194			481			578
Short-term borrowings		3			1			9			5
Long-term debt		3			7			9			14
Total Interest Expense		159			202			499			597

Net Interest Income		1,221			1,138			3,518			3,183
Provision for loan losses		30			18			90			31
Net Interest Income After Loan Loss Provision		1,191			1,120			3,428			3,152

NON-INTEREST INCOME
Service charges on deposit accounts		81			53			205			153
Loan servicing fees		227			169			555			381
Gain(loss) on sale of loans		(17	)		(9	)		(52	)		(8	)
Gain on sales of available-for-sale securities		1			6			6			6
Gain on sale of foreclosed assets		-			-			1			5
Gain on sale of fixed assets		-			(1	)		-			135
Other		49			32			152			93
Total Non-interest Income		341			250			867			765

NON-INTEREST EXPENSE
Salaries and employee benefits		683			624			2,062			1,778
Occupancy and equipment		146			107			414			329
Data processing		72			70			204			186
Directors’ expense		54			23			145			66
Advertising		30			30			88			80
Legal and professional		21			57			80			160
Audit and examination fees		39			20			93			58
Office supplies		10			21			34			60
FDIC deposit insurance		13			9			43			51
Foreclosed assets		-			-			-			4
Other operating expense		140			110			412			411
Total Non-interest Expense		1,208			1,071			3,575			3,183

Income Before Taxes		324			299			720			734
Income Taxes		90			95			223			242

NET INCOME	$	234		$	204		$	497		$	492

Basic Earnings per Share	$	0.24		$	0.21		$	0.52		$	0.50

Diluted Earnings per Share	$	0.24		$	0.21		$	0.52		$	0.50

The accompanying notes are an integral part of the consolidated financial statements.

CENTURY NEXT FINANCIAL CORPORATION AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
(In thousands)	2012			2011			2012			2011
Net income	$	234		$	204		$	497		$	492
Other comprehensive income(loss), net of tax*
Unrealized gains(losses) on securites:
Unrealized holding gain(losses) arising during the period		(4	)		(6	)		(12	)		28
Less: reclassification adjustments for gains(losses) included in net income		-			-			-			-
Net change in unrealized gains(losses) on securities		(4	)		(6	)		(12	)		28
Other comprehensive income(loss), net of tax*		(4	)		(6	)		(12	)		28
Comprehensive income	$	230		$	198		$	485		$	520

The accompanying notes are an integral part of the consolidated financial statements.

*All other comprehensive amounts are shown net of tax.

CENTURY NEXT FINANCIAL CORPORATION AND SUBSIDIARY

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (unaudited)

Nine Months Ended September 30, 2012 and 2011

														Accumulated
	Common		Additional					Unearned			Unearned			Other
	Stock		Paid-In		Treasury			RRP			ESOP			Comprehensive			Retained
(In thousands)	Amount		Capital		Stock			Shares			Shares			Income			Earnings		Total
Balance, December 31, 2010	$	11	$	9,821	$	-		$	-		$	(661	)	$	73		$	9,064	$	18,308
Comprehensive income:
Net income		-		-		-			-			-			-			492		492
Unrealized gains(losses) on securities available for sale, net of tax		-		-		-			-			-			28			-		28
Total comprehensive income																				520
Shares purchased for RRP		-		-		-			(218	)		-			-			-		(218	)
ESOP shares released		-		12		-			-			27			-			-		39
Stock option expense		-		12		-			-			-			-			-		12
Amortization of awards under RRP		-		51		-			-			-			-			-		51

Balance September 30, 2011	$	11	$	9,896	$	-		$	(218	)	$	(634	)	$	101		$	9,556	$	18,712

Balance, December 31, 2011	$	11	$	9,952	$	-		$	(365	)	$	(625	)	$	90		$	9,699	$	18,762
Comprehensive income:
Net income		-		-		-			-			-			-			497		497
Unrealized gains(losses) on securities available for sale, net of tax		-		-		-			-			-			(12	)		-		(12	)
Total comprehensive income																				485
Shares purchased for RRP		-		-		-			(213	)		-			-			-		(213	)
ESOP shares released		-		8		-			-			25			-			-		33
Stock option expense		-		56		-			-			-			-			-		56
Amortization of awards under RRP		-		115		-			-			-			-			-		115
Purchase of treasury stock (2,240 shares)		-		-		(29	)		-			-			-			-		(29	)

Balance September 30, 2012	$	11	$	10,131	$	(29	)	$	(578	)	$	(600	)	$	78		$	10,196	$	19,209

The accompanying notes are an integral part of the consolidated financial statements.

CENTURY NEXT FINANCIAL CORPORATION AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

	Nine Months Ended September 30,
(In thousands)	2012			2011
Cash flows from operating activities:
Net income	$	497		$	492
Adjustments to reconcile net income to net cash provided (used) by operating activities:
Provision for possible loan losses		90			31
Depreciation and amortization		284			173
Stock-based compensation expense, net of tax benefits		179			75
ESOP shares released		25			27
Net loss on sale of loans		52			8
Net gain on sale of available-for-sale securities		(6	)		(6	)
Net gain on sale of foreclosed assets		(1	)		(5	)
Net gain on sale of fixed assets		-			(135	)
Income from change in cash surrender value of life insurance		(44	)		(45	)
Deferred income tax benefit		(73	)		(6	)
Net amortization of premium and fair value adjustments to investments		39			43
(Increase) decrease in loans held for sale		798			(2,420	)
Increase in interest receivable and other assets		(161	)		(59	)
Increase in accrued interest payable and other liabilities		171			18
Total adjustments		1,353			(2,301	)
Net cash provided (used) by operating activities		1,850			(1,809	)

Cash flows from investing activities:
Proceeds from sales and maturities of investment securities		3,749			6,446
Purchases of investment securities		(3,762	)		(2,215	)
Net sale (purchase) of FHLB stock and other equity investments		221			(1	)
Proceeds from sales of foreclosed assets		10			17
Purchases of life insurance		-			(106	)
Proceeds from sales of fixed assets		-			299
Purchase of fixed assets		(152	)		(588	)
Net increase in loans		(2,977	)		(9,917	)
Net cash provided (used) by investing activities		(2,911	)		(6,065	)

Cash flows from financing activities:
Net increase in demand deposits and savings accounts		3,444			3,918
Net increase in time deposits		1,292			859
Increases in advances from borrowers for insurance and taxes		41			45
Net increase (decrease) in FHLB advances		(3,031	)		2,475
Net increase (decrease) in securities sold under agreements to repurchase		911			(55	)
Purchase of treasury stock		(29	)		-
Purchase of shares for Recognition and Retention Plan		(213	)		(218	)
Net cash provided by financing activities		2,415			7,024

Net increase (decrease) in cash and cash equivalents		1,354			(850	)
Cash and cash equivalents, at beginning of period		5,200			7,581

Cash and cash equivalents, at end of period	$	6,554		$	6,731

Supplemental disclosures of cash flow information
Cash paid during the period for:
Interest on deposits and borrowed funds	$	501		$	595
Income taxes	$	286		$	286

The accompanying notes are an integral part of the consolidated financial statements

CENTURY NEXT FINANCIAL CORPORATION AND SUBSIDIARY

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES

Nature of Operations

Century Next Financial Corporation (the “Company”), a Louisiana corporation, was organized by Bank of Ruston (the “Bank”) in June 2010 to facilitate the conversion of the Bank from the mutual to the stock form (the “Conversion”) of ownership. A total of 1,058,000 shares of common stock of the Company were sold at $10 per share in the subscription offering through which the Company received net proceeds of approximately $9.8 million, net of offering costs of approximately $748,000. The Conversion and offering were completed on September 30, 2010. The Company was organized as a savings and loan holding company and is regulated by the Board of Governors of the Federal Reserve System (the “Federal Reserve Board”).

The Bank provides a variety of financial services primarily to individual customers through its main office and one branch in Ruston, Louisiana. The Bank’s primary deposit products are checking accounts, money market accounts, interest bearing savings and certificates of deposit. Its primary lending products are residential mortgage loans. The Bank provides services to customers in the Ruston and surrounding areas.

The Company’s operations are subject to customary business risks associated with activities of a financial institution holding company. Some of those risks include competition from other financial institutions and changes in economic conditions, interest rates and regulatory requirements.

Basis of Presentation

The accompanying unaudited consolidated financial statements were prepared in accordance with instructions for Form 10-Q and Regulation S-X and do not include information or footnotes necessary for a complete presentation of financial condition, results of operations, and cash flows in conformity with generally accepted accounting principles. However, in the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the financial statements have been included. The results of operations for the three-and nine-month periods ended September 30, 2012, are not necessarily indicative of the results which may be expected for the year ending December 31, 2012.

The Company follows accounting standards set by the Financial Accounting Standards Board (the “FASB”). The FASB sets generally accepted accounting principles (“GAAP”) that we follow to ensure we consistently report our financial condition, results of operations and cash flows. References to GAAP issued by the FASB in these footnotes are to the FASB Accounting Standards Codification (the “Codification” or the “ASC”).

In accordance with the subsequent events topic of the ASC, the Company evaluates events and transactions that occur after the balance sheet date for potential recognition in the financial statements. The effects of all subsequent events that provide additional evidence of conditions that existed at the balance sheet date are recognized in the financial statements as of September 30, 2012. In preparing these financial statements, the Company evaluated the events and transactions that occurred from September 30, 2012 through the date these financial statements were issued.

Use of Estimates

In preparing financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP), management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, and the valuation of foreclosed real estate, deferred tax assets and trading activities.

In connection with the determination of the allowances for losses on credits and foreclosed real estate, management obtains independent appraisals for significant properties. While management uses available information to recognize losses on credits, future additions to the allowances may be necessary based on changes in local economic conditions. In addition, regulatory agencies, as an integral part of their examination process, periodically review the Bank’s allowances for losses on loans. Such agencies may require the Bank to recognize additions to the allowances based on their judgments about information available to them at the time of their examination. Because of these factors, it is reasonably possible that the allowances for credit losses on loans may change materially in the future.

Reclassifications

Certain prior period amounts have been reclassified for comparative purposes in conformance with the presentation in the current year financial statements.

Recent Accounting Pronouncements

International Financial Reporting Standards (“IFRS”)

In July 2012, the SEC issued the “Work Plan for Consideration of Incorporating IFRS into the Financial Reporting System for U.S. Issuers.” This report was prepared by the staff of the SEC to summarize the observations and analyses of the staff regarding six key areas identified for study in the Work Plan in February 2010. At that time, the SEC issued a statement indicating that the information obtained through the Work Plan, among other considerations, would aid the SEC in evaluating the implications of incorporating IFRS into the financial reporting system for U.S. Issuers. IFRS is a comprehensive series of accounting standards published by the International Accounting Standards Board (“IASB”). The SEC stated in the Work Plan that the publication does not imply-and should not be construed to imply-that the SEC has made any policy decision as to whether IFRS should be incorporated into the financial reporting system for U.S. issuers nor how any such incorporation should be implemented. In November 2008, the SEC issued a proposed rule entitled “Roadmap for the Potential Use of Financial Statements Prepared in Accordance with IFRS by U.S. Issuers. Under this proposed rule, the Company may be required to prepare financial statements in accordance with IFRS as early as 2014. The SEC may make a determination in late 2012 or early 2013 regarding the mandatory adoption of IFRS. The Company is currently assessing the impact that this potential change would have on its operating results and financial condition, and will continue to monitor the development of the potential implementation of IFRS.

Accounting Standards Updates

In May 2011, the FASB issued ASU No. 2011-04, Fair Value Measurement. ASU 2011-04 amends the fair value measurement and disclosure requirements in order to gain consistency between the generally accepted accounting principles in the United States and the International Financial Reporting Standards. The effective date for ASU 2011-04 is for the first interim and annual period beginning after December 15, 2011. The adoption of ASU 2011-04 did not have a material impact on the Company’s results of operations, financial position or disclosures.

In June 2011, the FASB issued ASU No. 2011-05, Comprehensive Income. ASU 2011-05 requires entities to present the total of comprehensive income, the components of net income and the components of other comprehensive income in a single continuous statement of comprehensive income or in two separate consecutive statements. The effective date for ASU 2011-05 is for annual and interim period beginning after December 15, 2011. The adoption of ASU 2011-05 did not have a material impact on the Company’s results of operations or financial position.

In September 2011, the FASB issued ASU No. 2011-09, Compensation – Retirement Benefits – Multi-employer Plans. ASU 2011-09 requires entities to provide additional separate disclosures for multi-employer pension plans and multi-employer other post-retirement benefit plans. This update is intended to provide users with more detailed information about an employer’s involvement in multi-employer pension plans. The effective date for ASU 2011-09 is for annual periods for fiscal years ending after December 15, 2011. The Company included the required disclosures in the notes to the audited financial statements in Form 10-K for December 31, 2011. The adoption of this accounting standards update did not have a material impact on the Company’s results of operations, financial position or disclosures.

In December 2011, the FASB issued ASU No. 2011-11, Balance Sheet, Disclosures about Offsetting Assets and Liabilities. ASU 2011-11 requires an entity to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. The effective date for ASU 2011-11 is for interim and annual reporting periods beginning on or after January 1, 2013. The adoption of ASU 2011-11 is not expected to have a material impact on the Company’s results of operations, financial position or disclosures.

In December 2011, the FASB issued ASU No. 2011-12, Comprehensive Income, Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05. ASU 2011-12 defers certain changes in ASU 2011-05 relating to the presentation of reclassification adjustments. The effective date for ASU 2011-12 is for annual and interim periods beginning after December 15, 2011.

In June 2012, the FASB issued Exposure Draft 2012-200, Financial Instruments (Topic 825), Disclosures about Liquidity Risk and Interest Rate Risk. The proposed ASU would require financial institutions to include liquidity risk tabular disclosure of the carrying amounts of classes of financial assets and liabilities segregated by their expected maturities, including off-balance sheet financial commitments and obligations. In addition, interest rate risk disclosures would provide information about the exposure of the entity’s financial assets and liabilities to fluctuations in market interest rates. The proposed ASU does not include a proposed effective date.

NOTE 2 – INVESTMENT SECURITIES

The amortized cost and fair value of securities, with the gross unrealized gains and losses, follows:

(In thousands)
September 30, 2012	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Market Value
Securities Available-for-Sale:
Government-sponsored enterprises *	$	4,111	$	7	$	3	$	4,115
State and municipal		230		1		-		231
Mortgage-backed securities		1,643		112		-		1,755
Total Available-for-Sale Securities		5,984		120		3		6,101
Securities Held-to-Maturity:
U.S. Government and federal agency		87		-		-		87
State and municipal		862		7		-		869
Total Held-to-Maturity Securities		949		7		-		956
Total Debt Securities	$	6,933	$	127	$	3	$	7,057

* - Includes FNMA, FHLB, and FFCB bonds

(In thousands)
December 31, 2011	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Market Value
Securities Available-for-Sale:
Government-sponsored enterprises *	$	3,635	$	22	$	-	$	3,657
State and municipal		270		3		-		273
Mortgage-backed securities		2,929		112		-		3,041
Total Available-for-Sale Securities		6,834		137		-		6,971
Securities Held-to-Maturity:
U.S. Government and federal agency		99		-		-		99
Total Held-to-Maturity Securities		99		-		-		99
Total Debt Securities	$	6,933	$	137	$	-	$	7,070

* - Includes FNMA and FHLB bonds

At September 30, 2012 and December 31, 2011, the carrying amount of securities pledged to secure repurchase agreements and public fund deposits was $2.4 million and $1.9 million, respectively.

Securities with gross unrealized losses at September 30, 2012 were as follows:

September 30, 2012	Less Than Twelve Months				Over Twelve Months
(In thousands)	Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Total Unrealized Losses
Securities Available-for-Sale, at fair value
Government-sponsored enterprises	$	-	$	-	$	3	$	2,003	$	3
Total Available-for-Sale Securities	$	-	$	-	$	3	$	2,003	$	3

There were no securities with gross unrealized losses at December 31, 2011.

The amortized cost and fair value of debt securities by contractual maturity at September 30, 2012 follows:

(In thousands)	1 year or less		Over 1 year to 5 years		Over 5 years to 10 years		Over 10 years		Total
Securities Available-for-Sale, at fair value
Government-sponsored enterprises	$	1,212	$	-	$	-	$	2,903	$	4,115
State and municipal		-		-		231		-		231
Mortgage-backed securities		-		-		20		1,735		1,755
Total Available-for-Sale Securities	$	1,212	$	-	$	251	$	4,638	$	6,101
Securities Held-to-Maturity at amortized cost
U.S. Government and federal agency	$	-	$	-	$	87	$	-	$	87
State and municipal		-		-		-		862		862
Total Held-to-Maturity Securities	$	-	$	-	$	87	$	862	$	949
Total Debt Securities	$	1,212	$	-	$	338	$	5,500	$	7,050

The following table summarizes investment activities for the nine-month periods ending September 30:

	For the Nine-Month Period Ended September 30,
	2012				2011
(In thousands)	Held to Maturity		Available for Sale		Held to Maturity		Available for Sale

Purchases of securities	$	862	$	2,900	$	15	$	2,200
Sales and maturities of securities	$	12	$	3,203	$	28	$	6,417

Gross realized gains on sales	$	-	$	6	$	-	$	6
Gross realized losses on sales	$	-	$	-	$	-	$	-

Net tax expense applicable to net gains	$	-	$	2	$	-	$	2

Management evaluates securities for other-than-temporary impairment on at least a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Consideration is given to:

the length of time and the extent to which the fair value has been less than cost,

the financial condition and near-term prospects of the issuer, and

the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value.

Market changes in interest rates and credit spreads will cause normal fluctuations in the market value of securities and the possibility of temporary unrealized losses. The Company has determined that there was no other-than-temporary impairment associated with these securities at September 30, 2012 and December 31, 2011.

NOTE 3 – LOANS

A summary of the balances of loans follows:

	September 30,			December 31,
(In thousands)	2012			2011
Mortgage loans on real estate:
Held for sale 1-4 family	$	2,724		$	3,574
Residential 1-4 family		38,635			37,168
Commercial		17,885			15,142
Multi-family		5,095			4,703
Land		6,571			6,598
Residential Construction		3,238			4,315
Home equity lines of credit		1,609			1,600
Total mortgage loans on real estate		75,757			73,100
Commercial loans		8,112			7,877
Consumer loans, including overdrafts of $63 and $66		5,101			5,854
Total loans		88,970			86,831
Less: Allowance for loan losses		(347	)		(245	)
Loans, net	$	88,623		$	86,586

The Bank is obligated to repurchase those mortgage loans sold which experience an early payment default within 180 days. At September 30, 2012, loans sold for which the Bank is obligated to repurchase under such circumstances amounted to approximately $27.2 million. The Bank also is committed to sell loans approximating $2.7 million at September 30, 2012.

The following table details loans individually and collectively evaluated for impairment at September 30, 2012:

	September 30, 2012
	Loans Evaluated for Impairment
(In thousands)	Individually		Collectively		Total
Loans secured by real estate:
Residential 1-4 family	$	117	$	-	$	117
Total loans secured by real estate		117		-		117
Consumer loans		15		-		15
Total loans	$	132	$	-	$	132

	Impaired Loans
	For the Nine-Month Period Ended September 30, 2012
			Unpaid				Average		Interest
	Recorded		Principal		Related		Recorded		Income
(In thousands)	Investment		Balance		Allowance		Investment		Recognized

With no related allowance recorded:
Residential-prime	$	123	$	117	$	-	$	122	$	-
Consumer	$	15	$	15	$	-	$	15	$	-
Total:
Residential-prime	$	123	$	117	$	-	$	122	$	-
Consumer	$	15	$	15	$	-	$	15	$	-

Under ASU No. 2010-20, separate disclosures are required for troubled-debt restructurings (TDRs). As of September 30, 2012, the Company had no TDRs to report.

NOTE 4 – ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY

Allowance for Loan Losses

The allowance for loan losses is established through a provision charged to earnings. Loan losses are charged against the allowance when management determines that the collection of the loan balance outstanding is unlikely. Subsequent recoveries, if any, are credited to the allowance. Allowances for impaired loans are generally determined based on collateral values or the present value of estimated cash flows. Changes in the allowance related to impaired loans are charged or credited to the provision for loan losses.

The allowance for loan losses is maintained at a level which, in management’s opinion, is adequate to absorb credit losses inherent in the portfolio. The Company utilizes an historical analysis of the Company’s portfolio to validate the overall adequacy of the allowance for loan losses. In addition to these objective criteria, the Company subjectively assesses the adequacy of the allowance for loan losses with consideration given to current economic conditions, changes to loan policies, concentrations of credit, the level of classified and criticized credits, and other factors.

A summary of changes in the allowance for loan losses is as follows:


	September 30,			December 31,
(In thousands)	2012			2011
Beginning balance	$	245		$	204
Provision for loan losses		90			56
Loans charged-offs		(1	)		(20	)
Recoveries of loans previously charged-off		13			5
Ending balance	$	347		$	245

The following table details the balance in the allowance for loan losses by portfolio segment at September 30, 2012:

	For the Nine Months Ended September 30, 2012
	Beginning									Ending
(In thousands)	Balance		Chargeoffs			Recoveries		Provision		Balance

Loans secured by real estate:
Residential 1-4 family	$	118	$	-		$	10	$	56	$	184
Commercial		43		-			-		21		64
Multi-family		12		-			-		3		15
Land		16		-			-		3		19
Residential construction		11		-			-		-		11
Home equity lines of credit		4		-			-		1		5
Totals by loans secured by real estate		204		-			10		84		298
Commercial and industrial loans		25		-			1		6		32
Consumer loans		16		(1	)		2		-		17
Totals for all loans	$	245	$	(1	)	$	13	$	90	$	347

At September 30, 2012, the Company had no allowance for loan losses disaggregated by impairment method.

Credit Quality

Loans are categorized into risk categories based on relevant information about the ability of borrowers to service their debt, such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The following definitions are utilized for risk ratings, which are consistent with the definitions used in supervisory guidance:

Special Mention – Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date.

Substandard – Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidations of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

Doubtful – Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values highly questionable and improbable.

Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass-rated loans.

The table below illustrates the carrying amount of loans by credit quality indicator at September 30, 2012:

			Special
(In thousands)	Pass		Mention		Substandard		Doubtful		Loss		Total

Loans secured by real estate:
Residential 1-4 family	$	40,671	$	358	$	330	$	-	$	-	$	41,359
Commercial		17,871		14		-		-		-		17,885
Multi-family		5,095		-		-		-		-		5,095
Land		6,571		-		-		-		-		6,571
Residential construction		3,238		-		-		-		-		3,238
Home equity lines of credit		1,609		-		-		-		-		1,609
Totals by loans secured by real estate		75,055		372		330		-		-		75,757
Commercial and industrial loans		8,078		34		-		-		-		8,112
Consumer loans		5,079		6		16		-		-		5,101
Totals for all loans	$	88,212	$	412	$	346	$	-	$	-	$	88,970

Interest income on impaired loans, other than non-accrual loans, is recognized on an accrual basis. Interest income on non-accrual loans is recognized only as collected. During 2012, there was no interest income recognized on non-accrual loans. If the non-accrual loans had been accruing interest at their original contracted rates, related income would have been $4,000.

Below is a summary of current, past due, and non-accrual loans at September 30, 2012:

	Past Due		Past Due Over 90 Days
	30-89				Non-		Total				Total
(In thousands)	Days		Accruing		Accruing		Past Due		Current		Loans

Loans secured by real estate:
Residential 1-4 family	$	277	$	213	$	117	$	607	$	40,752	$	41,359
Commercial		2		-		-		2		17,883		17,885
Multi-family		-		-		-		-		5,095		5,095
Land		54		-		-		54		6,517		6,571
Residential construction		-						-		3,238		3,238
Home equity lines of credit		-		-		-		-		1,609		1,609
Totals by loans secured by real estate		333		213		117		663		75,094		75,757
Commercial and industrial loans		36		-		-		36		8,076		8,112
Consumer loans		49		3		15		67		5,034		5,101
Totals for all loans	$	418	$	216	$	132	$	766	$	88,204	$	88,970

NOTE 5 – REGULATORY CAPITAL

As of September 30, 2012, the most recent notification from the Office of the Comptroller of the Currency categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as adequately capitalized the Bank must maintain minimum total risk-based, Tier I risk-based, and Tier I leverage ratios as set forth in the table. The Bank’s actual capital amounts and ratios as of September 30, 2012 and December 31, 2011 are also presented in the table. There are no conditions or events since that notification that management believes have changed the institution’s category.

(Dollars in thousands)	Actual					Required for Capital Adequacy Purposes					Required to be Well Capitalized under Prompt Corrective Action Provisions
September 30, 2012	Amount		Ratio			Amount		Ratio			Amount		Ratio
Total capital to risk-weighted assets	$	16,007		17.65	%	$	7,256		8.00	%	$	9,071		10.00	%
Tier 1 Core capital to risk-weighted assets	$	15,980		17.62	%	$	3,628		4.00	%	$	5,442		6.00	%
Tier 1 Core capital to adjusted total assets	$	15,980		14.44	%	$	4,428		4.00	%	$	5,535		5.00	%
Tangible capital to tangible assets	$	15,980		14.44	%	$	1,660		1.50	%		N/A		N/A

December 31, 2011
Total capital to risk-weighted assets	$	15,159		18.26	%	$	6,642		8.00	%	$	8,303		10.00	%
Tier 1 Core capital to risk-weighted assets	$	15,234		18.35	%	$	3,321		4.00	%	$	4,982		6.00	%
Tier 1 Core capital to adjusted total assets	$	15,234		14.19	%	$	4,293		4.00	%	$	5,366		5.00	%
Tangible capital to tangible assets	$	15,234		14.19	%	$	1,610		1.50	%		N/A		N/A

The following is a reconciliation of GAAP equity to regulatory risk-based capital:

(In thousands)	September 30, 2012			December 31, 2011
GAAP equity	$	16,658		$	15,949
Unrealized gain on debt securities		(78	)		(90	)
Allowance for loan losses (allowable portion)		347			245
Equity investments required to be deducted		(320	)		(320	)
Unearned levered ESOP shares		(600	)		(625	)
Total risk-based Capital	$	16,007		$	15,159

NOTE 6 – OTHER COMPREHENSIVE INCOME

The following tables show the related tax effects allocated to each component of other comprehensive income for the respective three-and nine-month periods ending September 30, 2012 and 2011:

	For the Three-Month Period Ending September 30, 2012
	Before-Tax Amount			Tax (Expense) or Benefit			Net-of-Tax Amount
Unrealized gains(losses) on securities:
Unrealized holding gains(losses) arising during the period	$	(6	)	$	2		$	(4	)
Less: reclassification adjustment for gains(losses) realized in net income		-			-			-
Net unrealized gains(losses)		(6	)		2			(4	)
Other comprehensive income(loss)	$	(6	)	$	2		$	(4	)

	For the Three-Month Period Ending September 30, 2011
	Before-Tax Amount			Tax (Expense) or Benefit			Net-of-Tax Amount
Unrealized gains(losses) on securities:
Unrealized holding gains(losses) arising during the period	$	(9	)	$	3		$	(6	)
Less: reclassification adjustment for gains(losses) realized in net income		-			-			-
Net unrealized gains(losses)		(9	)		3			(6	)
Other comprehensive income(loss)	$	(9	)	$	3		$	(6	)


	For the Nine-Month Period Ending September 30, 2012
	Before-Tax Amount			Tax (Expense) or Benefit			Net-of-Tax Amount
Unrealized gains(losses) on securities:
Unrealized holding gains(losses) arising during the period	$	(18	)	$	6		$	(12	)
Less: reclassification adjustment for gains(losses) realized in net income		-			-			-
Net unrealized gains(losses)		(18	)		6			(12	)
Other comprehensive income(loss)	$	(18	)	$	6		$	(12	)

	For the Nine-Month Period Ending September 30, 2011
	Before-Tax Amount			Tax (Expense) or Benefit			Net-of-Tax Amount
Unrealized gains(losses) on securities:
Unrealized holding gains(losses) arising during the period	$	42		$	(14	)	$	28
Less: reclassification adjustment for gains(losses) realized in net income		-			-			-
Net unrealized gains(losses)		42			(14	)		28
Other comprehensive income(loss)	$	42		$	(14	)	$	28

NOTE 7 - DEPOSITS

Deposits at the respective dates are summarized as follows:

	September 30, 2012					December 31, 2011
(Dollars in thousands)	Amount		Weighted Average Rate			Amount		Weighted Average Rate
Demand and Savings
Noninterest-bearing demand deposits	$	10,462		-		$	8,323		-
Interest-bearing demand deposits		15,753		0.25	%		15,892		0.40	%
Money market		10,514		0.50	%		11,711		1.00	%
Savings		16,834		0.86	%		14,193		1.36	%
Total Demand and Savings	$	53,563				$	50,119

Time Deposits
0.00% to 0.99%	$	14,796		0.65	%	$	5,614		0.67	%
1.00% to 1.99%		19,044		1.18	%		26,967		1.21	%
2.00% to 2.99%		792		2.39	%		759		2.25	%
3.00% to 3.99%		480		3.18	%		480		3.18	%
Total Time Deposits	$	35,112				$	33,820
Total Deposits	$	88,675				$	83,939

Scheduled maturities of time deposits at September 30, 2012 are as follows:

2012	$	9,084
2013		21,083
2014		4,805
Thereafter		140
Total	$	35,112

Time deposits of $100,000 or more amounted to approximately $17.0 million at September 30, 2012. Deposit insurance coverage has been increased by regulation to cover deposits up to $250,000.

NOTE 8 - DISCLOSURES ABOUT FAIR VALUE OF ASSETS AND LIABILITIES

Accounting standards in the United States of America establish a framework for using fair value to measure assets and liabilities, and define fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) as opposed to the price that would be paid to acquire the asset or received to assume the liability (an entry price).

Under these standards, a fair value measure should reflect the assumptions that market participants would use in pricing the asset or liability, including the assumptions about the risk inherent in a particular valuation technique, the effect of a restriction on the sale or use of an asset, and the risk of nonperformance. Required disclosures stratify balance sheet accounts measured at fair value based on inputs the Bank uses to derive fair value measurements. These strata include:

●

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).

●

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

For the Bank, the only items recorded at fair value on a recurring basis are securities available for sale. These securities consist primarily of mortgage-backed (including Agency) securities. When available, the Bank uses quoted market prices of identical assets on active exchanges (Level 1 measurements). Where such quoted market prices are not available, the Bank typically employs quoted market prices of similar instruments (including matrix pricing) and/or discounted cash flows to estimate a value of these securities (Level 2 measurements). Level 3 measurements include discounted cash flow analyses based on assumptions that are not readily observable in the market place, including projections of future cash flows, loss assumptions, and discount rates.

Fair values of assets and liabilities measured on a recurring basis at the respective dates are as follows:

	September 30, 2012
(In thousands)	Level 1		Level 2		Level 3		Estimated Fair Value
Securities available for sale:
FHLB certificates	$	-	$	1,997	$	-	$	1,997
FHLMC certificates		-		719		-		719
GNMA certificates		-		11		-		11
FHR certificates		-		23		-		23
FNMA certificates		-		2,197		-		2,197
FNR certificates		-		17		-		17
FFCB certificates		-		900		-		900
SBA pools		-		6		-		6
Municipal securities		-		231		-		231
Total securities available for sale	$	-	$	6,101	$	-	$	6,101

Items Measured at Fair Value on a Non-Recurring Basis

From time to time, certain assets may be recorded at fair value on a non-recurring basis, typically as a result of the application of lower of cost or fair value accounting or a write-down occurring during the period. The only item recorded at fair value on a non-recurring basis is foreclosed real estate, which is recorded at the lower of cost or fair value less estimated costs to sell. Fair value is determined by reference to appraisals (performed either by the Bank or by independent appraisers) on the subject property, using market prices of similar real estate assets (Level 2 measurements). The Bank held no foreclosed real estate at September 30, 2012.

NOTE 9 - STOCK-BASED BENEFIT PLANS

The Company has three stock-based benefit plans for which compensation expense is recognized. These are the 2010 Employee Stock Ownership Plan (ESOP), the 2011 Recognition and Retention Plan (RRP), and the 2011 Stock Option Plan (SOP). Under the ESOP, compensation expense recognized is based on the average fair value of shares committed to be released over the interim reporting period. Under the RRP, compensation expense is based on the fair value of the shares determined at the date of grant and is recognized each interim reporting period as the shares vest. Compensation expense under the SOP is based on the fair value of the options granted determined at the date of grant and is also recognized each interim reporting period as the options vest. The fair value of the options is calculated by using the Black-Scholes option pricing model which assumes that the option exercises occur at the end of the expected term of the option.

The following table represents the compensation expense recognized by the Company for the respective six-month periods ended:

	September 30,
(In thousands)	2012		2011
Employee stock ownership plan	$	33	$	34
Recognition and retention plan		115		51
Stock option plan		56		12
Total compensation expense recognized	$	204	$	97

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The purpose of this discussion and analysis is to focus on significant changes in the financial condition of Century Next Financial Corporation (the “Company”) from December 31, 2011 to September 30, 2012 and on its results of operations during the three- and nine-month periods ended September 30, 2012 and 2011. This discussion and analysis is intended to highlight and supplement information presented elsewhere in this quarterly report on Form 10-Q, particularly the financial statements and related notes appearing in Item 1.

To the extent that statements in this Form 10-Q relate to future plans, objectives, financial results or performance of the Company, these statements are deemed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements, which are based on management’s current information, estimates and assumptions and the current economic environment, are generally identified by the use of the words “plan”, “believe”, “expect”, “intend”, “anticipate”, “estimate”, “project” or similar expressions. The Company’s actual strategies and results in future periods may differ materially from those currently expected due to various risks and uncertainties.

General

The Company was formed by the Bank in June 2010, in connection with the Bank’s conversion from a mutual to a stock form savings bank (the “Conversion”) completed on September 30, 2010. The Company’s results of operations are primarily dependent on the results of the Bank, which became a wholly owned subsidiary upon completion of the Conversion. The Bank’s results of operations depend, to a large extent, on net interest income, which is the difference between the income earned on its loan and investment portfolios and the cost of funds, consisting of the interest paid on deposits and borrowings. Results of operations are also affected by provisions for loan losses, fee income and other non-interest income and non-interest expense. Non-interest expense principally consists of compensation and employee benefits, office occupancy and equipment expense, data processing, advertising and business promotion and other expense. The Bank’s results of operations are also significantly affected by general economic and competitive conditions, particularly changes in interest rates, government policies and actions of regulatory authorities. Future changes in applicable law, regulations or government policies may materially impact our financial condition and results of operations.

Critical Accounting Policies

In reviewing and understanding financial information for the Company, you are encouraged to read and understand the significant accounting policies used in preparing our financial statements. These policies are described in Note 1 of the notes to our financial statements. The accounting and financial reporting policies of the Company conform to accounting principles generally accepted in the United States of America and to general practices within the banking industry. Accordingly, the financial statements require certain estimates, judgments, and assumptions, which are believed to be reasonable, based upon the information available. These estimates and assumptions affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the periods presented. The following accounting policies comprise those that management believes are the most critical to aid in fully understanding and evaluating our reported financial results. These policies require numerous estimates or economic assumptions that may prove inaccurate or may be subject to variations which may significantly affect our reported results and financial condition for the period or in future periods.

Allowance for Loan Losses. The allowance for loan losses is maintained at a level to provide for probable credit losses related to specifically identified loans and for losses inherent in the loan portfolio that have been incurred as of the balance sheet date. The allowance for loan losses is comprised of specific allowances and a general allowance. Specific provisions are assessed for each loan that is reviewed for impairment or for which a probable loss has been identified. The allowance related to loans that are identified as impaired is based on discounted expected future cash flows using the loan’s initial effective interest rate, the observable market value of the loan, or the estimated fair value of the collateral for certain collateral dependent loans. Factors contributing to the determination of specific provisions include the financial condition of the borrower, changes in the value of pledged collateral and general economic conditions. General allowances are established based on historical charge-offs considering factors that include risk rating, concentrations and loan type. For the general allowance, management also considers trends in delinquencies and non-accrual loans, concentrations, volatility of risk ratings and the evolving mix in terms of collateral, relative loan size and the degree of seasoning within the various loan products.

Our allowance levels may be impacted by changes in underwriting standards, credit administration and collection policies, regulation and other factors which affect the credit quality and collectability of the loan portfolio also impact the allowance levels. The allowance for loan losses is based on management’s estimate of probable credit losses inherent in the loan portfolio; actual credit losses may vary from the current estimate. The allowance for loan losses is reviewed periodically, taking into consideration the risk characteristics of the loan portfolio, past charge-off experience, general economic conditions and other factors that warrant current recognition. As adjustments to the allowance for loan losses become necessary, they are reflected as a provision for loan losses in current-period earnings. Actual loan charge-offs are deducted from and subsequent recoveries of previously charged-off loans are added to the allowance.

Other-Than-Temporary Impairment. We review our investment portfolio on a quarterly basis for indications of impairment. This review includes analyzing the length of time and the extent to which the fair value has been lower than the cost, the financial condition and near-term prospects of the issuer including any specific events that may influence the operations of the issuer, and the intent and ability to hold the investment for a period of time sufficient to allow for any anticipated recovery in the market. Inherent in this analysis is a certain amount of imprecision in the judgment used by management.

We recognize credit-related other-than-temporary impairment on debt securities in earnings while noncredit-related other-than-temporary impairment on debt securities not expected to be sold is recognized in accumulated other comprehensive income. We assess whether the credit loss existed by considering whether (a) we have the intent to sell the security, (b) it is more likely than not that we will be required to sell the security before recovery, or (c) we do not expect to recover the entire amortized cost basis of the security. We may bifurcate the other-than-temporary impairment on securities not expected to be sold or where the entire amortized cost of the security is not expected to be recovered into the components representing credit loss and the component representing loss related to other factors. The portion of the fair value decline attributable to credit loss is recognized through earnings.

Corporate debt securities are evaluated for other-than-temporary impairment by determining whether it is probable that an adverse change in estimated cash flows has occurred. Determining whether there has been an adverse change in estimated cash flows involves the calculation of the present value of remaining cash flows compared to previously projected cash flows. We consider the discounted cash flow analysis to be our primary evidence when determining whether credit-related other-than-temporary impairment exists on corporate debt securities.

Income Taxes. Deferred income tax assets and liabilities are determined using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is determined based on the tax effects of the temporary differences between the book and tax bases of the various assets and liabilities and gives current recognition to changes in tax rates and laws. Realizing our deferred tax assets principally depends upon our achieving projected future taxable income. We may change our judgments regarding future profitability due to future market conditions and other factors. We may adjust our deferred tax asset balances if our judgments change.

Financial Overview

Comparison of Financial Condition at September 30, 2012 and December 31, 2011

The Company’s total assets increased by $3.3 million or 3.0% to $110.7 million at September 30, 2012 compared to $107.4 million at December 31, 2011. The increase in assets was primarily a result of an increase in cash and cash equivalents of $1.4 million and an increase in net loans of $2.0 million.

Cash and cash equivalents increased $1.4 million or 26.0% to $6.6 million at September 30, 2012 compared to $5.2 million at December 31, 2011 primarily from funds received from growth in customer deposits of $4.7 million, sales, maturities, and other payments of investment securities of $20,000, and a redemption of Federal Home Loan Bank (FHLB) Stock of $221,000 partially offset by the repayment of FHLB advances of $2.1 million, the outflow of funds from an increase in net loans of $2.0 million, and increase in all other asset and liabilities of $841,000.

Total debt securities decreased from $7.07 million at December 31, 2011 to $7.05 million at September 30, 2012. The net decrease of $20,000 or 0.28% was the result of sales and maturities of securities of $3.22 million and scheduled payments, net premium amortization, and the change in fair value of $567,000 partially offset by $3.76 million in purchases for the nine-month period ended September 30, 2012.

Total loans, net of unearned income, increased over the nine-month period ended September 30, 2012 by $2.1 million or 2.5% compared to December 31, 2011. Total loans, net of unearned income, at September 30, 2012 were $89.0 million compared to $86.8 million at December 31, 2011. Of the net increase, commercial real estate loans increased $2.7 million, loans secured by 1-4 family residential increased $1.5 million, multi-family real estate loans increased $392,000, non-real estate commercial loans increased $235,000, and home equity lines of credit increased $9,000. This was partially offset by decreases in residential construction loans of $1.1 million, loans secured by 1-4 family residential held for sale of $850,000, consumer loans, not secured by real estate, of $753,000, and land loans of $27,000.

The allowance for loan losses increased from $245,000 at December 31, 2011 to $347,000 at September 30, 2012, an increase of $102,000 or 41.6%. The net increase for the nine-month period consisted of $90,000 in provision for possible loan losses and $12,000 from net recoveries of loan balances charged off in prior years.

Total deposits at September 30, 2012 increased $4.7 million or 5.6% to $88.7 million compared to $83.9 million at December 31, 2011. The net increase consisted of a $2.6 million increase in savings deposits, a $2.1 million increase in noninterest-bearing demand deposits, and a $1.3 million increase in time deposits partially offset by a $1.2 million decrease in money market deposits and a $139,000 decrease in interest-bearing demand deposits.

Total borrowings, primarily consisting of Federal Home Loan Bank advances, decreased to $1.8 million at September 30, 2012 from $3.9 million at December 31, 2011, a decrease of $2.1 million or 54.6%.

Total Stockholders’ Equity increased by $447,000 or 2.4% to $19.2 million at September 30, 2012 compared to $18.8 million at December 31, 2011. The increase for the nine-month period primarily resulted from net income of $497,000, an increase in additional paid in capital of $179,000 from equity compensation, and the release of shares for the employee stock ownership plan of $25,000, offset by decreases of $213,000 from the purchase of common stock for the recognition and retention plan, $29,000 from the purchase of treasury stock, and $12,000 in accumulated other comprehensive income.

Comparison of Operating Results for the Three and Nine Months Ended September 30, 2012 and 2011

Our net income was $234,000 for the three months ended September 30, 2012. This was a $30,000 or 14.7% increase over net income of $204,000 for the three months ended September 30, 2011. For the nine months ended September 30, 2012, our net income was $497,000, an increase of $5,000 or 1.0%, over net income of $492,000 for the nine months ended September 30, 2011.

Our total interest income was $1.38 million for the three months ended September 30, 2012, compared to $1.34 million for the three months ended September 30, 2011, a $40,000 or 3.0% increase. The increase in interest income in the three-month period ended September 30, 2012 over the comparable period in 2011 was due primarily to an increase in the average balances of our interest-earnings assets, particularly loans, amounting to an increase of $139,000 in interest income. This increase was offset by a decrease in the average rate earned on earning assets of 40 basis points to 5.37% for the quarter ended September 30, 2012 compared to 5.77% for the quarter ended September 30, 2011, amounting to a decrease in interest income of $99,000.

For the nine months ended September 30, 2012, interest income was $4.02 million compared to $3.78 million for the nine months ended September 30, 2011. This was an increase of $237,000, or 6.3% for the year-to-date period comparison. The increase in interest income in the nine-month period ended September 30, 2012 over the comparable period in 2011 was due primarily to an increase in the average balances of our interest-earnings assets, particularly loans, amounting to an increase of $498,000 in interest income. This increase was offset by a decrease in the average rate earned on earning assets of 34 basis points to 5.32% for the nine months ended September 30, 2012 compared to 5.66% for the nine months ended September 30, 2011, amounting to a decrease in interest income of $261,000.

Our total interest expense was $159,000 for the three months ended September 30, 2012. This was a decrease of $43,000, or 21.3%, compared to $202,000 of interest expense for the three months ended September 30, 2011. The average rate paid on our interest-bearing liabilities decreased by 29 basis points to 0.78% for the quarter ended September 30, 2012 compared to 1.07% for the quarter ended September 30, 2011. This reduction in rate resulted in a decrease in interest expense of $57,000 for the comparative quarters. The decrease in rate was primarily due to reductions in the average rate paid on savings/money market deposits of 50 basis points, other borrowings of 24 basis points, time deposits of 19 basis points, and interest-bearing checking of 17 basis points. The increase in the average balances of our interest-bearing liabilities resulted in an increase of interest expense of $14,000 for the quarter ended September 30, 2012 compared to the quarter ended September 30, 2011.

For the nine months ended September 30, 2012, our total interest expense was $499,000. This was a decrease of $98,000, or 16.4%, compared to $597,000 of interest expense for the nine months ended September 30, 2011. The average rate paid on our interest-bearing liabilities decreased by 27 basis points to 0.83% for the nine-month period ended September 30, 2012 compared to 1.10% for the nine-month period ending September 30, 2011. This reduction in rate resulted in a decrease in interest expense of $162,000 for the comparative nine-month periods. The decrease in rate was primarily due to reductions in the average rate paid on other borrowings of 88 basis points, savings/money market deposits of 41 basis points, time deposits of 22 basis points, and interest-bearing checking of 13 basis points. The increase in the average balances of our interest-bearing liabilities resulted in an increase of interest expense of $64,000 for the nine months ended September 30, 2012 compared to the nine months ended September 30, 2011.

Our net interest income was $1.22 million for the quarter ended September 30, 2012 compared to $1.14 million for the quarter ended September 30, 2011. This was an increase of $83,000, or 7.3%. For the nine-month period ended September 30, 2012, net interest income was $3.52 million, which represents a $335,000, or 10.5% increase over the $3.18 million for the nine-month period ended September 30, 2011. Our average interest rate spread decreased by 11 basis points to 4.59% for the three months ended September 30, 2012 over the second quarter of 2011, and our net interest margin decreased 15 basis points to 4.75% in the second quarter of 2012 compared to the second quarter of 2011. For the nine months ended September 30, 2012, our average interest spread was 4.49% and our net interest margin was 4.66%, compared to 4.56% and 4.76%, respectively, for the first nine months of 2011.

Our provision for loan losses amounted to $30,000 for the quarter ended September 30, 2012, compared to $18,000 in provision for the quarter ended September 30, 2011. For the nine-month period ended September 30, 2012, the provision for loan losses was $90,000 compared to $31,000 for the nine-month period ended September 30, 2011. The increase in loan loss provision for the quarter and year-to-date periods in 2012 compared to 2011 was primarily due to a more conservative approach in assumptions for economic conditions, credit quality trends, and other qualitative factors as well as the general increase in commercial loans which may have a higher risk of loss.

Our loans, net of unearned income, increased by $2.1 million during the nine months ended September 30, 2012 from December 31, 2011, which included $70.9 million in loan originations, offset by sales of $28.5 million and repayments of loans of $40.2 million. At September 30, 2012, our allowance for loan losses amounted to $347,000, or 0.39% of loans, net of unearned loan fees compared to $245,000, or 0.28% of loans, net of unearned loan fees, at December 31, 2011. Our total non-performing loans, including loans past due 90 days or more and non-accrual loans, amounted to $348,000 at September 30, 2012, compared to $460,000 at December 31, 2011. At September 30, 2012, our allowance for loan losses amounted to 99.71% of total non-performing loans compared to 53.26% of total non-performing loans at December 31, 2011. There were $1,000 of loans charged-off during the nine months ended September 30, 2012, and recoveries amounted to $13,000.

Our total non-interest income amounted to $341,000 for the quarter ended September 30, 2012 compared to $250,000 for the quarter ended September 30, 2011, an increase of $91,000 or 36.4%. The increase during the three-month period ended September 30, 2012 consisted primarily of increases in loan servicing fees of $58,000, service charges on deposits of $28,000, and other non-interest income and gain on sale of fixed assets of $17,000 and $1,000, respectively. The increase was offset by an increase in the loss on sale of loans of $8,000 and a decrease in the gain on sale of available-for-sale securities of $5,000.

For the nine-month period ending September 30, 2012, total non-interest income was $867,000 compared to $765,000 for the nine-month period ended September 30, 2011, an increase of $102,000 or 13.3%. The increase consisted primarily of increases in loan servicing fees of $174,000, service charges on deposit accounts of $52,000, and other non-interest income of $59,000. The increase was partially offset by an increase in loss on the sale of loans of $44,000 and decreases in gain on sale of fixed assets and foreclosed assets of $135,000 and $4,000, respectively.

Our total non-interest expense increased by $137,000 or 12.8% to $1.21 million for the three months ended September 30, 2012, compared to $1.07 million for the three months ended September 30, 2011. The primary reasons for the increase in non-interest expense were increases in salaries and benefits of $59,000, occupancy and equipment expense of $39,000, directors’ expense of $31,000, other operating expense of $30,000, audit and examination fees of $19,000, FDIC deposit insurance of $4,000, and data processing of $2,000. The increases for the quarter were partially offset by decreases in legal and professional fees of $36,000 and office supplies of $11,000. For the comparative periods, the increase in salaries and benefits was due mainly to normal salary increases and new staff additions, the increase in audit and examination fees included increases in internal audit services and regulatory examination fees, the increase in occupancy and equipment expense consists mainly of depreciation on new equipment, and the increase in directors’ expense was due primarily to stock compensation expense compared to the same quarter of 2011.

For the nine-month period ending September 30, 2012, total non-interest expense increased by $392,000 or 12.3% to $3.58 million compared to $3.18 million for the nine-month period ended September 30, 2011. The primary reasons for the increase in non-interest expense were increases in salaries and benefits of $284,000, occupancy and equipment expense of $85,000, directors’ expense of $79,000, audit and examination fees of $35,000, data processing of $18,000, advertising of $8,000, and other operating expense of $1,000. The increases for the nine-month period were offset by decreases in legal and professional fees of $80,000, office supplies of $26,000, and FDIC deposit insurance of $8,000 and expense of foreclosed assets of $4,000. For the comparative periods, the increase in salaries and benefits was due mainly to normal salary increases and new staff additions, the increase in occupancy and equipment expense consists mainly of depreciation on new equipment, the increase in directors’ expense was due primarily to stock compensation expense, and the increase in audit and examination fees included an increase in internal audit services compared to the nine months ended September 30, 2011.

At September 30, 2012 and 2011, we had 37 and 33 full-time equivalent employees, respectively.

Income tax expense for the quarter ended September 30, 2012 amounted to $90,000, a decrease of $5,000 compared to $95,000 for the quarter ended September 30, 2011 resulting in effective tax rates of 27.8% and 31.8%, respectively. For the nine months ended September 30, 2012, income tax expense amounted to $223,000 compared to $242,000 for the nine months ended September 30, 2011, a decrease of $19,000 resulting in effective tax rates for the comparative nine month periods of 31.0% and 33.0%, respectively.

Net Interest Income

Net interest income, the difference between interest earned on loans and investments and interest paid on deposits and other borrowings, is the principal component of our earnings. The following table provides a summary of average earning assets and interest-bearing liabilities as well as the income or expense attributable to each item for the periods indicated.

Average Balances, Net Interest Income, and Yields Earned and Rates Paid. The following tables show for the periods indicated the total dollar amount of interest from average interest-earning assets and the resulting yields, as well as the interest expense on average interest-bearing liabilities, expressed both in dollars and rates, and the net interest margin. Tax-exempt income and yields have not been adjusted to a tax-equivalent basis. All average balances are based on monthly balances. Management does not believe that the monthly averages differ significantly from what the daily averages would be.

	Quarter Ended September 30,
(Dollars in thousands)	2012							2011
	Avg. Balance		Interest		Avg. Yield			Avg. Balance		Interest		Avg. Yield
Earning assets:
Loans (1)	$	90,137	$	1,331		5.87	%	$	80,583	$	1,304		6.44	%
Debt Securities		6,409		43		2.67	%		8,767		34		1.54	%
Other earning assets		5,760		6		0.41	%		3,068		2		0.26	%

Total earning assets		102,306		1,380		5.37	%		92,418		1,340		5.77	%

Non-earning assets		8,650							11,122
Total Assets	$	110,956						$	103,540

Interest-bearing liabilities:
Interest-bearing checking	$	15,793	$	9		0.23	%	$	15,732	$	16		0.40	%
Savings & MMDA		27,524		50		0.72	%		23,828		73		1.22	%
Time deposits		35,711		94		1.05	%		33,613		105		1.24	%
Other borrowings		1,585		6		1.51	%		1,814		8		1.75	%

Total interest-bearing liabilities		80,613		159		0.78	%		74,987		202		1.07	%

Noninterest-bearing deposits		10,235							8,888
Other liabilities		1,021							1,003

Total Liabilities		91,869							84,878
Shareholders’ equity		19,087							18,662
Total Liabilities and
Shareholders’ Equity	$	110,956						$	103,540

Net Interest Income & Spread			$	1,221		4.59	%			$	1,138		4.70	%

Net Interest Margin(2)						4.75	%						4.90	%
Average earning assets to interest-bearing liabilities						126.91	%						123.25	%

Loan interest income includes fee income of $44,000 and $62,000 for the three months ended September 30, 2012 and 2011, respectively. Average quarterly balance of loans includes average deferred loan fees of $63,000 and $82,000 for September 30, 2012 and 2011, respectively. The average balance of nonaccrual loans has been included in net loans.

2)	Net interest margin is computed by dividing net interest income by the total average earning assets.

	Nine Months Ended September 30,
(dollars in thousands)	2012							2011
	Avg. Balance		Interest		Avg. Yield			Avg. Balance		Interest		Avg. Yield
Earning assets:
Loans (1)	$	87,581	$	3,906		5.96	%	$	75,718	$	3,659		6.45	%
Debt Securities		6,694		100		2.00	%		10,351		117		1.51	%
Other earning assets		6,671		11		0.22	%		3,200		4		0.17	%

Total earning assets		100,946		4,017		5.32	%		89,269		3,780		5.66	%

Non-earning assets		8,702							11,119
Total Assets	$	109,648						$	100,388

Interest-bearing liabilities:
Interest-bearing checking	$	15,918	$	32		0.27	%	$	15,498	$	46		0.40	%
Savings & MMDA		27,223		160		0.79	%		22,664		204		1.20	%
Time deposits		34,798		289		1.11	%		33,046		328		1.33	%
Other borrowings		2,440		18		0.99	%		1,357		19		1.87	%

Total interest-bearing liabilities		80,379		499		0.83	%		72,565		597		1.10	%

Noninterest-bearing deposits		9,391							8,318
Other liabilities		981							955

Total Liabilities		90,751							81,838
Shareholders’ equity		18,897							18,550
Total Liabilities and
Shareholders’ Equity	$	109,648						$	100,388

Net Interest Income & Spread(2)			$	3,518		4.49	%			$	3,183		4.56	%
Net Interest Margin(3)						4.66	%						4.76	%
Average earning assets to interest-bearing liabilities						125.59	%						123.02	%

Loan interest income includes fee income of $147,000 and $142,000 for the nine months ended September 30, 2012 and 2011, respectively. Average year-to-date balance of loans includes average deferred loan fees of $63,000 and $74,000 for September 30, 2012 and 2011, respectively. The average balance of non-accrual loans has been included in net loans.

2)	Net interest margin is computed by dividing net interest income by the total average earning assets.

Asset Quality

“Classified loans” are the loans and other credit facilities that we consider to be of the greatest risk to us and, therefore, they receive the highest level of attention by our account officers and senior credit management. Classified loans include both performing and nonperforming loans. During the first quarter of 2012, the Company continued to closely monitor all of its more significant loans, including all loans previously classified.

At September 30, 2012, the Company had $758,000 in classified loans compared to $831,000 at December 31, 2011. Of these loans, at September 30, 2012, $626,000 were accruing loans and $132,000 were non-accruing loans. Total loans included in classified loans at September 30, 2012 that were evaluated for impairment was $132,000 compared to $15,000 evaluated for impairment and included in classified loans at December 31, 2011. A loan “impairment” is a classification required under generally accepted accounting principles when it is considered probable that we may be unable to collect all amounts due according to the contractual terms of our loan agreement. Non-performing loans include loans past due 90 days or more that are still accruing interest and nonaccrual loans. At September 30, 2012, we had $348,000 in non-performing loans. This compares to $460,000 in non-performing loans at December 31, 2011. Non-performing loans as a percentage of total loans at September 30, 2012 were 0.39% as compared to 0.53% at December 31, 2011. There were no foreclosed assets at September 30, 2012 compared to $9,000 at December 31, 2011.

The Company charged off $1,000 of loan balances determined to be uncollectible during the quarter ended September 30, 2012 and had no recoveries of loan balances previously charged off. For the nine-month period ended September 30, 2012, charge offs of loan balances totaled $1,000 and recoveries of loan balances previously charged off totaled $13,000.

Provision for Loan Losses

The allowance for loan losses is established through a provision for loan losses charged to earnings as losses are estimated to have occurred in our loan portfolio. The allowance for loan losses is maintained at a level to provide for probable credit losses related to specifically identified loans and for losses inherent in the loan portfolio that have been incurred as of the balance sheet date. The allowance for loan losses is comprised of specific allowances and a general allowance.

Specific provisions are assessed for each loan that is reviewed for impairment or for which a probable loss has been identified. The allowance related to loans that are identified as impaired is based on discounted expected future cash flows using the loan’s initial effective interest rate, the observable market value of the loan, or the estimated fair value of the collateral for certain collateral dependent loans. Factors contributing to the determination of specific provisions include the financial condition of the borrower, changes in the value of pledged collateral and general economic conditions. General allowances are established based on historical charge-offs considering factors that include risk rating, concentrations and loan type. For the general allowance, management also considers trends in delinquencies and non-accrual loans, concentrations, volatility of risk ratings and the evolving mix in terms of collateral, relative loan size and the degree of seasoning within the various loan products.

Changes in underwriting standards, credit administration and collection policies, regulation and other factors which affect the credit quality and collectability of the loan portfolio also impact the allowance levels. The allowance for loan losses is based on management’s estimate of probable credit losses inherent in the loan portfolio; actual credit losses may vary from the current estimate. The allowance for loan losses is reviewed periodically, taking into consideration the risk characteristics of the loan portfolio, past charge-off experience, general economic conditions and other factors that warrant current recognition. As adjustments to the allowance for loan losses become necessary, they are reflected as a provision for loan losses in current-period earnings. Actual loan charge-offs are deducted from and subsequent recoveries of previously charged-off loans are added to the allowance.

During the three months ended September 30, 2012, we made a provision of $30,000 compared to $18,000 in provision for the three months ended September 30, 2011. For the nine months ended September 30, 2012, total provisions were $90,000 compared to $31,000 for the nine months ended September 30, 2011. At September 30, 2012, the Company had $348,000 of non-performing loans compared to $34,000 at September 30, 2011. To the best of management’s knowledge, the allowance is maintained at a level believed to cover all known and inherent losses in the loan portfolio, both probable and reasonable to estimate.

Liquidity and Capital Resources

The Company maintains levels of liquid assets deemed adequate by management. The Company adjusts its liquidity levels to fund deposit outflows, repay its borrowings and to fund loan commitments. The Company also adjusts liquidity as appropriate to meet asset and liability management objectives.

The Company’s primary sources of funds are deposits, loan payments, and to a lesser extent, funds provided from operations. While scheduled payments on loans are a relatively predictable source of funds, deposit flows and loan prepayments are greatly influenced by general interest rates, economic conditions and competition. The Company sets the interest rates on its deposits to maintain a desired level of total deposits. In addition, the Company invests excess funds in short-term interest-earning accounts, if greater liquidity needs are expected in the near term, and medium- to longer-term investments if liquidity is expected to be in excess of needs for an extended period of time. Excess liquidity assists in providing availability of funds to meet lending requirements and additional demand from deposit accounts as the need arises. The Company’s cash and cash equivalents amounted to $6.6 million at September 30, 2012.

A significant portion of the Company’s liquidity consists of non-interest earning deposits. The Company’s primary sources of cash are payments on loans and increases in deposit accounts. If the Company requires funds beyond its ability to generate them internally, borrowing agreements exist with the Federal Home Loan Bank of Dallas, which provide an additional source of funds. At September 30, 2012, the Company had long-term advances from the Federal Home Loan Bank of Dallas in the amount of $350,000 and had $38.4 million in additional borrowing capacity available. Additionally, at September 30, 2012, Bank of Ruston was a party to a Master Purchase Agreement with First National Bankers Bank whereby Bank of Ruston may purchase Federal Funds from First National Bankers Bank in an amount not to exceed $5.4 million. There were no amounts purchased under this agreement as of September 30, 2012.

At September 30, 2012, the Company had outstanding loan commitments of $3.9 million to originate loans and $6.1 million of unfunded commitments under lines of credit. At September 30, 2012, certificates of deposit, excluding IRAs, scheduled to mature in less than one year totaled $23.2 million. Based on prior experience, management believes that a significant portion of such deposits will remain with us, although there can be no assurance that this will be the case. In addition, in a rising interest rate environment, the cost of such deposits could be significantly higher upon renewal. The Company intends to utilize its liquidity to fund its lending activities.

The Bank is required to maintain regulatory capital sufficient to meet tier-1 leverage, tier-1 risk-based and total risk-based capital ratios of at least 4.0%, 4.0% and 8.0%, respectively. At September 30, 2012, the Bank exceeded each of its capital requirements with ratios of 14.44%, 17.62% and 17.65%, respectively.

Impact of Inflation and Changing Prices

The financial statements and related financial data presented herein regarding the Company have been prepared in accordance with accounting principles generally accepted in the United States of America which generally require the measurement of financial position and operating results in terms of historical dollars, without considering changes in relative purchasing power over time due to inflation. Unlike most industrial companies, virtually all of the Company’s assets and liabilities are monetary in nature. As a result, interest rates generally have a more significant impact on the Company’s performance than does the effect of inflation. Interest rates do not necessarily move in the same direction or in the same magnitude as the prices of goods and services, since such prices are affected by inflation to a larger extent than interest rates.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not applicable.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

The Company’s management has evaluated the effectiveness of the Company’s disclosure controls and procedures as defined in Exchange Act Rules 13(a)-15(e) as of the end of the period covered by this report. The Company’s chief executive officer and chief financial officer participated in the evaluation. Based on this evaluation, the Company’s chief executive officer and chief financial officer concluded that the Company’s disclosure controls and procedures were effective as of this report date.

Internal Control Over Financial Reporting

No change in our internal control over financial reporting (as defined in Rule 13a-15(f) under the Securities Exchange Act of 1934) occurred during the most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II – OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

There are no material pending legal proceedings to which the Company or its subsidiary is a party or of which any of their property is subject, other than ordinary routine litigation incidental to the business of the Company or its subsidiary. None of the ordinary routine litigation in which the Company or its subsidiary is involved is expected to have a material adverse impact upon the financial position or results of operations of the Company or its subsidiary.

ITEM 1A. RISK FACTORS

Not applicable.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

(a) Not applicable.

(b) Not applicable.

The following presents the Company’s purchase activity during the three-month period ended September 30, 2012:

Period	Total Number of Shares Purchased		Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs		Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs (1)
July 1-31, 2012		-	$	-		-		1,220
August 1-31, 2012		-	$	-		-		1,220
September 1-30, 2012		-	$	-		-		1,220

Total		-	$	-		-		1,220

Notes to this table:

(1)

The Company’s 2011 Recognition and Retention Plan was authorized to purchase up to a maximum of 42,320 shares of common stock, or 4.0% of the common stock sold in the initial public offering completed on September 30, 2010, as disclosed in the Company’s prospectus dated August 11, 2010, and announced by press release on May 17, 2011.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

There are no matters required to be reported under this item.

ITEM 4. Mine Safety Disclosures

Not applicable.

ITEM 5. OTHER INFORMATION

There are no matters required to be reported under this item.

ITEM 6. EXHIBITS

List of exhibits: (filed herewith unless otherwise noted)

Number		Description
31.1		Rule 13a-14(a)/15d-14(a) Certification of the Chief Executive Officer
31.2		Rule 13a-14(a)/15d-14(a) Certification of the Chief Financial Officer
32.1		Section 1350 Certification

The following Exhibits are being furnished as part of this report:

Number		Description
101.INS		XBRL Instance Document.*
101.SCH		XBRL Taxonomy Extension Schema Document.*
101.CAL		XBRL Taxonomy Extension Calculation Linkbase Document.*
101.LAB		XBRL Taxonomy Extension Label Linkbase Document.*
101.PRE		XBRL Taxonomy Extension Presentation Linkbase Document.*
101.DEF		XBRL Taxonomy Extension Definitions Linkbase Document.*

These interactive data files are being furnished as part of this Quarterly Report, and, in accordance with Rule 402 of Regulation S-T, shall not be deemed filed for purposes of Section 11 or 12 of the Securities Act of 1933, as amended, or Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liability under those sections.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	CENTURY NEXT FINANCIAL CORPORATION

Date: November 9, 2012	By:	/s/ Benjamin L. Denny
		Benjamin L. Denny
		President and Chief Executive Officer

Date: November 9, 2012	By:	/s/ Mark A. Taylor
		Mark A. Taylor
		Senior Vice President and Chief Financial Officer