Red River Bancshares, Inc. (the “Company”) (Nasdaq: RRBI), the
holding company for Red River Bank (the “Bank”), announced today
its financial results for the third quarter of 2019.
Net income for the third quarter of 2019 was $6.8 million, or
$0.93 per diluted common share ("EPS"), an increase of $1.3
million, or 23.6%, compared to $5.5 million, or $0.78 EPS, for the
second quarter of 2019, and an increase of $705,000, or
11.5%, compared to $6.1 million, or $0.91 EPS, for the third
quarter of 2018.
Net income for the nine months ended September 30, 2019,
was $18.1 million, or $2.57 EPS, an increase of $1.2 million, or
7.0%, compared to $16.9 million, or $2.50 EPS, for the nine months
ended September 30, 2018.
Third Quarter 2019 Performance and Operational
Highlights
- The Company completed its first full quarter of operations as a
public company.
- The Company had record high net income for the third quarter of
2019, resulting in quarterly return on assets of 1.42% and return
on equity of 11.20%. Compared to the prior quarter, net income for
the third quarter of 2019 improved with increased net interest
income and noninterest income, combined with lower provision for
loan losses and operating expenses.
- Net interest margin, fully tax equivalent basis ("FTE"),
increased by four basis points to 3.55% for the third quarter of
2019, from 3.51% for the second quarter of 2019.
- Loans held for investment ("HFI") increased 1.4% from June 30,
2019 and 6.4% from December 31, 2018.
- Deposits increased 2.6% from June 30, 2019 and 1.9% from
December 31, 2018.
- As of September 30, 2019, the loans HFI to deposits ratio was
84.27%, and the noninterest-bearing deposits to total deposits
ratio was 36.68%.
- Nonperforming assets ("NPA(s)") to total assets ratio improved
to 0.41% as of September 30, 2019, from 0.70% as of
June 30, 2019.
- The net charge-offs to average loans ratios for both the
quarter and nine months ended September 30, 2019, were 0.00%.
- The Bank did not have an FDIC insurance assessment for the
third quarter of 2019.
- As planned, a portion of the proceeds from the May 2019 initial
public offering ("IPO") were used to redeem all of our junior
subordinated debentures in June and August of 2019.
- In the third quarter of 2019, we continued to execute our
organic growth plan in our newest market. The new Northshore
market, including the city of Covington, Louisiana, is located on
the north shore of Lake Pontchartrain, near New Orleans, Louisiana.
In April 2019, we opened a temporary loan production office in
Covington. In the second and third quarters of 2019, the Northshore
banking team was fully staffed and trained to provide full banking
services. In late September 2019, we closed the Covington loan
production office and opened a full-service banking center. As of
September 30, 2019, Red River Bank had approximately $21.1 million
of loans in the Northshore market.
R. Blake Chatelain, President and Chief Executive Officer
stated, "The Company had record high net income in the third
quarter of 2019 with improvements in many categories. Despite two
Federal Reserve rate decreases in the third quarter, our net
interest margin (FTE) increased from the second quarter primarily
due to the payoff of our junior subordinated debentures. Also, a
few asset quality challenges were resolved and the nonperforming
assets to total assets ratio improved to 0.41%."
Regarding the third quarter activities, Mr. Chatelain added,
"One of the purposes of the IPO was to utilize a portion of the
funds to redeem our junior subordinated debentures. As of August 8,
2019, all junior subordinated debentures have been paid off,
eliminating all of our long-term, high interest rate debt and
associated interest expense. In Covington, we have transitioned
from a loan production office to a brand new full-service banking
center. We have a great team of bankers in Covington and have been
encouraged by the reception we are receiving in this market. We
look forward to continued opportunities to extend our reach in the
Northshore area."
Net Interest Income and Net Interest Margin
(FTE)Net interest income for the third quarter of 2019 was
$16.2 million, $543,000, or 3.5%, higher than the second quarter of
2019. The increase in net interest income was due to a $525,000
increase in interest and dividend income and an $18,000 decrease in
interest expense, combined with a 1.4% increase in average
interest-earning assets.
The net interest margin (FTE) improved four basis points to
3.55% for the third quarter of 2019, compared to the prior quarter.
The net interest margin for the third quarter was impacted by the
payoff of the junior subordinated debentures and the two Federal
Reserve rate decreases. The payoff of the junior subordinated
debentures resulted in a two basis point improvement to the net
interest margin, on a stand-alone basis. The yield on loans
increased one basis point as the rates on new and renewing loans
offset the lower yields on most floating rate loans. As of
September 30, 2019, floating rate loans were 16.0% of the loan
portfolio. The yield on taxable securities decreased two basis
points due to the negative effects of increased investment premium
amortization from the lower rate environment, partially offset by
higher yields from a portfolio realignment completed in July 2019.
The cost of deposits was stable at 0.60% for both the second and
third quarters of 2019.
Noninterest IncomeNoninterest income totaled
$4.4 million for the third quarter of 2019, an increase of
$287,000, or 7.0%, compared to $4.1 million for the previous
quarter. The increase was mainly due to higher mortgage loan income
and higher deposit service charges, offset by lower dividend income
from a Small Business Investment Company limited partnership
("SBIC") of which Red River Bank is a member.
Mortgage loan income for the third quarter of 2019 totaled $1.0
million, an increase of $357,000, or 54.3%, from the second quarter
of 2019. This increase was primarily driven by increased demand for
new and refinanced mortgage loans as a result of the lower interest
rate environment.
Service charges on deposit accounts increased $112,000, or
10.3%, for the third quarter of 2019, compared to the second
quarter of 2019. This was due to new deposit fees being implemented
at the end of the second quarter of 2019.
Other income decreased by $166,000 from the prior quarter. This
decrease was primarily a result of a $214,000 dividend received
from the SBIC in the second quarter of 2019. No dividend was
received in the third quarter of 2019 from the SBIC.
Operating Expense
Operating expense for the third quarter 2019 totaled $11.9
million, a decrease of $519,000, or 4.2%, compared to $12.4 million
for the second quarter of 2019. The decrease was mainly due to
lower advertising, occupancy, loan and FDIC insurance assessment
expenses.
Advertising expense decreased by $180,000, or 45.5%, between the
second and third quarters of 2019. This decrease was due to
expanded media campaigns and marketing events in the second quarter
of 2019 in our newer markets that did not reoccur in the third
quarter of 2019.
Occupancy and equipment expenses for the third quarter of 2019
totaled $1.2 million, a decrease of $135,000, or 10.1%, compared to
the second quarter of 2019. This decrease was due to $130,000 of
nonrecurring expenses resulting from the completion of our new
market headquarters building in Baton Rouge in the second
quarter.
Loan and deposit expenses totaled $285,000 for the third quarter
of 2019, a decrease of $107,000, or 27.3%, from the prior quarter.
The decrease in the third quarter was primarily due to a $68,000
reduction of loan development expenses and $47,000 for the
reimbursement of collection expenses related to receiving payoffs
of past due loans.
Other operating expenses decreased by $144,000, or 12.8%,
between the second and third quarter of 2019. This decrease was
mainly due to a $121,000 decrease in our FDIC insurance assessment
expense. The Bank was notified by the FDIC that it did not have an
FDIC insurance assessment for the third quarter of 2019. Therefore,
no FDIC insurance assessment expense was incurred for the third
quarter compared to $121,000 for the second quarter of 2019.
Loans and Asset Quality
Loans HFI as of September 30, 2019, were $1.41 billion, an
increase of $20.0 million, or 1.4%, from June 30, 2019. The
increase in loans in the third quarter of 2019 was primarily due to
normal loan origination activity spread across all of our markets,
with our newer markets experiencing the most growth. Energy related
credits were 2.3% of loans HFI as of September 30, 2019, compared
to 2.5% as of June 30, 2019.
Asset quality levels improved in the third quarter of 2019, with
the receipt of $5.1 million in payoffs on loans reported as past
due in second quarter 2019. NPAs dropped to $8.0 million as of
September 30, 2019, from $13.2 million as of June 30, 2019. The
ratio of NPAs to total assets improved to 0.41% as of September 30,
2019, from 0.70% as of June 30, 2019.
As of September 30, 2019, the allowance for loan losses ("ALL")
was $13.9 million and the ratio of ALL to loans HFI was 0.98%. The
net charge-off ratio was 0.00% for the second and third quarters of
2019, as well as year to date 2019. The provision for loan losses
recorded in the third quarter of 2019 totaled $378,000 compared to
$529,000 for the second quarter of 2019.
DepositsDeposits as of September 30, 2019,
were $1.68 billion, an increase of $42.3 million, or 2.6%, compared
to June 30, 2019. Average deposits for the third quarter of
2019 were $1.65 billion, an increase of $18.5 million, or 1.1%,
from the prior quarter.
Noninterest-bearing deposits totaled $615.1 million as of
September 30, 2019, up $38.1 million, or 6.6%, from
June 30, 2019. As of September 30, 2019,
noninterest-bearing deposits were 36.68% of total deposits.
Interest-bearing deposits totaled $1.06 billion as of September
30, 2019, up $4.1 million, or 0.4%, compared to June 30, 2019.
Junior Subordinated DebenturesAs anticipated,
on August 8, 2019, the remaining $5.2 million of junior
subordinated debentures were redeemed with a rate at payoff of
5.58%, and the related business trust was terminated, leaving no
outstanding long-term debt as of September 30, 2019. In June 2019,
$6.2 million of junior subordinated debentures were redeemed with
an average rate at payoff of 5.21%, and the related business trusts
were terminated. Interest expense for the junior subordinated
debentures was $73,000 for the third quarter of 2019 and $156,000
for the second quarter of 2019.
Stockholders’ Equity
Total stockholders’ equity increased to $245.4 million as of
September 30, 2019, from $237.9 million as of June 30, 2019. The
increase of $7.5 million in stockholders’ equity during the third
quarter of 2019 was attributable to $6.8 million of net income, and
$567,000 of other comprehensive income.
Non-GAAP Disclosure
Our accounting and reporting policies conform to United States
generally accepted accounting principles ("GAAP") and the
prevailing practices in the banking industry. Certain financial
measures used by management to evaluate our operating performance
are discussed as supplemental non-GAAP performance measures. In
accordance with the Security and Exchange Commission's rules, we
classify a financial measure as being a non-GAAP financial measure
if that financial measure excludes or includes amounts, or is
subject to adjustments that have the effect of excluding or
including amounts, that are included or excluded, as the case may
be, in the most directly comparable measure calculated and
presented in accordance with GAAP as in effect from time to time in
the U.S. Non-GAAP financial measures do not include operating and
other statistical measures or ratios or statistical measures
calculated using exclusively either financial measures calculated
in accordance with GAAP, operating measures or other measures that
are not non-GAAP financial measures, or both.
The non-GAAP financial measures that we discuss should not be
considered in isolation or as a substitute for the most directly
comparable or other financial measures calculated in accordance
with GAAP. Moreover, the manner in which we calculate the non-GAAP
financial measures that are discussed may differ from that of other
companies reporting measures with similar names. It is important to
understand how such other banking organizations calculate and name
their financial measures similar to the non-GAAP financial measures
discussed by us when comparing such non-GAAP financial
measures.
We provide these measures in addition to, not as a substitute
for, net income and earnings per share, which are reported in
adherence to GAAP. Management and the board of directors review
tangible book value per share and tangible common equity to
tangible assets as part of managing operating performance. We
believe that these non-GAAP performance measures, while not
substitutes for GAAP net income, earnings per share, and total
expenses, are useful for both management and investors when
evaluating our underlying operating and financial performance and
our available resources.
A reconciliation of non-GAAP financial measures to the
comparable GAAP financial measures is included at the end of the
financial statement tables.
About Red River Bancshares, Inc.The Company is
the bank holding company for Red River Bank, a Louisiana
state-chartered bank established in 1999 that provides a fully
integrated suite of banking products and services tailored to the
needs of commercial and retail customers. Red River Bank operates
from a network of 24 banking centers throughout Louisiana. Banking
centers are located in the following markets: Central Louisiana,
which includes the Alexandria metropolitan statistical area
("MSA"); Northwest Louisiana, which includes the Shreveport-Bossier
City MSA; Southeast Louisiana, which includes the Baton Rouge MSA;
Southwest Louisiana, which includes the Lake Charles MSA; and the
Northshore, which includes Covington.
Forward-Looking Statements
Statements in this news release regarding our expectations and
beliefs about our future financial performance and financial
condition, as well as trends in our business and markets, are
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements often include words such as “believe,” “expect,”
“anticipate,” “intend,” “plan,” “estimate,” “project,” “outlook,”
or words of similar meaning, or future or conditional verbs such as
“will,” “would,” “should,” “could,” or “may.” The forward-looking
statements in this news release are based on current information
and on assumptions that we make about future events and
circumstances that are subject to a number of risks and
uncertainties that are often difficult to predict and beyond our
control. As a result of those risks and uncertainties, our actual
financial results in the future could differ, possibly materially,
from those expressed in or implied by the forward-looking
statements contained in this news release and could cause us to
make changes to our future plans. Additional information regarding
these and other risks and uncertainties to which our business and
future financial performance are subject is contained in the
section titled “Risk Factors” in our Prospectus filed with the SEC
on May 3, 2019, relating to our initial public offering, and
in other documents that we file with the SEC from time to time. In
addition, our actual financial results in the future may differ
from those currently expected due to additional risks and
uncertainties of which we are not currently aware or which we do
not currently view as, but in the future may become, material to
our business or operating results. Due to these and other possible
uncertainties and risks, readers are cautioned not to place undue
reliance on the forward-looking statements contained in this news
release or to make predictions based solely on historical financial
performance. Any forward-looking statement speaks only as of the
date on which it is made, and we do not undertake any obligation to
update or review any forward-looking statement, whether as a result
of new information, future developments or otherwise, except as
required by law. All forward-looking statements, express or
implied, included in this news release are qualified in their
entirety by this cautionary statement.
FINANCIAL
HIGHLIGHTS (UNAUDITED) |
|
|
As of and
for the three months ended |
|
As of and
for the nine months ended |
(Dollars in thousands, except per share data) |
Sept. 30, 2019 |
|
June 30, 2019 |
|
Sept. 30, 2018 |
|
Sept. 30, 2019 |
|
Sept. 30, 2018 |
|
|
|
|
|
|
|
|
|
|
Net
Income |
$ |
6,847 |
|
|
$ |
5,538 |
|
|
$ |
6,142 |
|
|
$ |
18,081 |
|
|
$ |
16,905 |
|
|
|
|
|
|
|
|
|
|
|
Per Common Share Data:(1) |
|
|
|
|
|
|
|
|
|
Earnings per share, basic |
$ |
0.94 |
|
|
$ |
0.79 |
|
|
$ |
0.91 |
|
|
$ |
2.59 |
|
|
$ |
2.51 |
|
Earnings per share, diluted |
$ |
0.93 |
|
|
$ |
0.78 |
|
|
$ |
0.91 |
|
|
$ |
2.57 |
|
|
$ |
2.50 |
|
Book value per share |
$ |
33.59 |
|
|
$ |
32.59 |
|
|
$ |
28.09 |
|
|
$ |
33.59 |
|
|
$ |
28.09 |
|
Tangible book value per share |
$ |
33.37 |
|
|
$ |
32.38 |
|
|
$ |
27.86 |
|
|
$ |
33.37 |
|
|
$ |
27.86 |
|
Cash dividends per share |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
0.20 |
|
|
$ |
0.15 |
|
Weighted average shares outstanding, basic |
7,304,273 |
|
|
7,037,834 |
|
|
6,732,886 |
|
|
6,993,990 |
|
|
6,726,487 |
|
Weighted average shares outstanding, diluted |
7,340,498 |
|
|
7,074,769 |
|
|
6,768,171 |
|
|
7,032,059 |
|
|
6,763,789 |
|
|
|
|
|
|
|
|
|
|
|
Summary Performance Ratios: |
|
|
|
|
|
|
|
|
|
Return on average assets |
1.42 |
% |
|
1.18 |
% |
|
1.36 |
% |
|
1.28 |
% |
|
1.28 |
% |
Return on average equity |
11.20 |
% |
|
9.92 |
% |
|
12.96 |
% |
|
10.91 |
% |
|
12.35 |
% |
Net interest margin |
3.50 |
% |
|
3.46 |
% |
|
3.49 |
% |
|
3.48 |
% |
|
3.42 |
% |
Net interest margin (FTE) |
3.55 |
% |
|
3.51 |
% |
|
3.54 |
% |
|
3.53 |
% |
|
3.46 |
% |
Efficiency ratio |
57.75 |
% |
|
62.81 |
% |
|
58.12 |
% |
|
60.00 |
% |
|
59.48 |
% |
Loans HFI to deposits ratio |
84.27 |
% |
|
85.23 |
% |
|
83.04 |
% |
|
84.27 |
% |
|
83.04 |
% |
Noninterest-bearing deposits to deposits ratio |
36.68 |
% |
|
35.30 |
% |
|
35.04 |
% |
|
36.68 |
% |
|
35.04 |
% |
Noninterest income to average assets |
0.91 |
% |
|
0.87 |
% |
|
0.87 |
% |
|
0.84 |
% |
|
0.81 |
% |
Operating expense to average assets |
2.47 |
% |
|
2.65 |
% |
|
2.47 |
% |
|
2.51 |
% |
|
2.45 |
% |
|
|
|
|
|
|
|
|
|
|
Summary Credit Quality Ratios: |
|
|
|
|
|
|
|
|
|
Nonperforming assets to total assets |
0.41 |
% |
|
0.70 |
% |
|
0.57 |
% |
|
0.41 |
% |
|
0.57 |
% |
Nonperforming loans to loans HFI |
0.47 |
% |
|
0.87 |
% |
|
0.72 |
% |
|
0.47 |
% |
|
0.72 |
% |
Allowance for loan losses to loans HFI |
0.98 |
% |
|
0.98 |
% |
|
0.92 |
% |
|
0.98 |
% |
|
0.92 |
% |
Net charge-offs to average loans outstanding |
0.00 |
% |
|
0.00 |
% |
|
0.00 |
% |
|
0.00 |
% |
|
0.01 |
% |
|
|
|
|
|
|
|
|
|
|
Capital Ratios: |
|
|
|
|
|
|
|
|
|
Total stockholders' equity to total assets |
12.66 |
% |
|
12.57 |
% |
|
10.41 |
% |
|
12.66 |
% |
|
10.41 |
% |
Tangible common equity to tangible assets |
12.59 |
% |
|
12.50 |
% |
|
10.34 |
% |
|
12.59 |
% |
|
10.34 |
% |
Total risk-based capital to risk weighted assets |
17.76 |
% |
|
17.90 |
% |
|
16.36 |
% |
|
17.76 |
% |
|
16.36 |
% |
Tier 1 risk-based capital to risk-weighted assets |
16.80 |
% |
|
16.95 |
% |
|
15.46 |
% |
|
16.80 |
% |
|
15.46 |
% |
Common equity tier 1 capital to risk-weighted assets |
16.80 |
% |
|
16.60 |
% |
|
14.64 |
% |
|
16.80 |
% |
|
14.64 |
% |
Tier 1 risk-based capital to average assets |
12.77 |
% |
|
12.83 |
% |
|
11.59 |
% |
|
12.77 |
% |
|
11.59 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) 2018 amounts adjusted to give effect to a 2-for-1 stock
split with a record date of October 1, 2018.
RED RIVER
BANCSHARES, INC. |
CONSOLIDATED
BALANCE SHEETS |
|
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Audited) |
|
(Unaudited) |
(in thousands) |
Sept. 30, 2019 |
|
June 30, 2019 |
|
March 31, 2019 |
|
December 31, 2018 |
|
Sept. 30, 2018 |
ASSETS |
|
|
|
|
|
|
|
|
|
Cash and due
from banks |
$ |
32,724 |
|
|
$ |
29,854 |
|
|
$ |
32,371 |
|
|
$ |
34,070 |
|
|
$ |
26,823 |
|
Interest-bearing deposits in other banks |
73,598 |
|
|
71,761 |
|
|
145,593 |
|
|
117,836 |
|
|
82,434 |
|
Securities available-for-sale |
341,900 |
|
|
318,082 |
|
|
319,353 |
|
|
307,877 |
|
|
296,025 |
|
Securities held-to-maturity |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
7,746 |
|
Equity securities |
3,954 |
|
|
3,924 |
|
|
3,869 |
|
|
3,821 |
|
|
3,784 |
|
Nonmarketable equity securities |
1,347 |
|
|
1,342 |
|
|
1,303 |
|
|
1,299 |
|
|
1,295 |
|
Loans held for sale |
4,113 |
|
|
6,029 |
|
|
2,210 |
|
|
2,904 |
|
|
2,076 |
|
Loans held for investment |
1,413,162 |
|
|
1,393,154 |
|
|
1,349,181 |
|
|
1,328,438 |
|
|
1,333,362 |
|
Allowance for loans losses |
(13,906 |
) |
|
(13,591 |
) |
|
(13,101 |
) |
|
(12,524 |
) |
|
(12,249 |
) |
Premises and equipment, net |
39,828 |
|
|
40,032 |
|
|
40,033 |
|
|
39,690 |
|
|
36,853 |
|
Accrued interest receivable |
4,928 |
|
|
5,570 |
|
|
4,988 |
|
|
5,013 |
|
|
5,099 |
|
Bank-owned life insurance |
21,707 |
|
|
21,570 |
|
|
21,434 |
|
|
21,301 |
|
|
21,852 |
|
Intangible assets |
1,546 |
|
|
1,546 |
|
|
1,546 |
|
|
1,546 |
|
|
1,546 |
|
Right-of-use assets |
4,651 |
|
|
4,748 |
|
|
4,844 |
|
|
— |
|
|
— |
|
Other assets |
9,302 |
|
|
8,897 |
|
|
8,494 |
|
|
9,317 |
|
|
9,650 |
|
Total Assets |
$ |
1,938,854 |
|
|
$ |
1,892,918 |
|
|
$ |
1,922,118 |
|
|
$ |
1,860,588 |
|
|
$ |
1,816,296 |
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits |
$ |
615,051 |
|
|
$ |
576,934 |
|
|
$ |
565,757 |
|
|
$ |
547,880 |
|
|
$ |
562,575 |
|
Interest-bearing deposits |
1,061,800 |
|
|
1,057,656 |
|
|
1,125,377 |
|
|
1,097,703 |
|
|
1,043,161 |
|
Total Deposits |
1,676,851 |
|
|
1,634,590 |
|
|
1,691,134 |
|
|
1,645,583 |
|
|
1,605,736 |
|
Other borrowed funds |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
46 |
|
Junior subordinated debentures |
— |
|
|
5,155 |
|
|
11,341 |
|
|
11,341 |
|
|
11,341 |
|
Accrued interest payable |
1,925 |
|
|
1,998 |
|
|
1,967 |
|
|
1,757 |
|
|
1,504 |
|
Lease liabilities |
4,688 |
|
|
4,773 |
|
|
4,856 |
|
|
— |
|
|
— |
|
Accrued expenses and other liabilities |
10,001 |
|
|
8,491 |
|
|
10,636 |
|
|
8,204 |
|
|
8,538 |
|
Total Liabilities |
1,693,465 |
|
|
1,655,007 |
|
|
1,719,934 |
|
|
1,666,885 |
|
|
1,627,165 |
|
COMMITMENTS AND CONTINGENCIES |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
Preferred stock, no par value |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Common stock, no par value |
68,082 |
|
|
68,082 |
|
|
41,271 |
|
|
41,094 |
|
|
45,678 |
|
Retained earnings |
177,033 |
|
|
170,122 |
|
|
164,534 |
|
|
160,115 |
|
|
153,914 |
|
Accumulated other comprehensive income (loss) |
274 |
|
|
(293 |
) |
|
(3,621 |
) |
|
(7,506 |
) |
|
(10,461 |
) |
Total Stockholders' Equity |
245,389 |
|
|
237,911 |
|
|
202,184 |
|
|
193,703 |
|
|
189,131 |
|
Total Liabilities and Stockholders' Equity |
$ |
1,938,854 |
|
|
$ |
1,892,918 |
|
|
$ |
1,922,118 |
|
|
$ |
1,860,588 |
|
|
$ |
1,816,296 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RED RIVER
BANCSHARES, INC. |
CONSOLIDATED
STATEMENTS OF INCOME (UNAUDITED) |
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Nine months ended |
(in thousands) |
Sept. 30, 2019 |
|
June 30, 2019 |
|
Sept. 30, 2018 |
|
Sept. 30, 2019 |
|
Sept. 30, 2018 |
INTEREST AND DIVIDEND INCOME |
|
|
|
|
|
|
|
|
|
Interest and
fees on loans |
$ |
16,578 |
|
|
$ |
15,945 |
|
|
$ |
15,285 |
|
|
$ |
48,026 |
|
|
$ |
43,307 |
|
Interest on securities |
1,800 |
|
|
1,784 |
|
|
1,689 |
|
|
5,347 |
|
|
5,254 |
|
Interest on federal funds sold |
178 |
|
|
212 |
|
|
82 |
|
|
603 |
|
|
196 |
|
Interest on deposits in other banks |
213 |
|
|
306 |
|
|
197 |
|
|
935 |
|
|
423 |
|
Dividends on stock |
12 |
|
|
9 |
|
|
13 |
|
|
30 |
|
|
27 |
|
Total Interest and Dividend Income |
18,781 |
|
|
18,256 |
|
|
17,266 |
|
|
54,941 |
|
|
49,207 |
|
INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
Interest on deposits |
2,514 |
|
|
2,449 |
|
|
1,818 |
|
|
7,260 |
|
|
5,018 |
|
Interest on other borrowed
funds |
— |
|
|
— |
|
|
3 |
|
|
— |
|
|
6 |
|
Interest on junior
subordinated debentures |
73 |
|
|
156 |
|
|
150 |
|
|
385 |
|
|
410 |
|
Total Interest Expense |
2,587 |
|
|
2,605 |
|
|
1,971 |
|
|
7,645 |
|
|
5,434 |
|
NET INTEREST
INCOME |
16,194 |
|
|
15,651 |
|
|
15,295 |
|
|
47,296 |
|
|
43,773 |
|
Provision for loan losses |
378 |
|
|
529 |
|
|
526 |
|
|
1,432 |
|
|
1,464 |
|
NET INTEREST INCOME
AFTER PROVISION FOR LOAN LOSSES |
15,816 |
|
|
15,122 |
|
|
14,769 |
|
|
45,864 |
|
|
42,309 |
|
NONINTEREST INCOME |
|
|
|
|
|
|
|
|
|
Service charges on deposit
accounts |
1,195 |
|
|
1,083 |
|
|
1,162 |
|
|
3,304 |
|
|
3,486 |
|
Debit card income, net |
833 |
|
|
785 |
|
|
786 |
|
|
2,314 |
|
|
2,254 |
|
Mortgage loan income |
1,014 |
|
|
657 |
|
|
623 |
|
|
2,186 |
|
|
1,675 |
|
Brokerage income |
561 |
|
|
626 |
|
|
469 |
|
|
1,552 |
|
|
1,395 |
|
Loan and deposit income |
404 |
|
|
382 |
|
|
346 |
|
|
1,131 |
|
|
943 |
|
Bank-owned life insurance
income |
137 |
|
|
137 |
|
|
139 |
|
|
407 |
|
|
415 |
|
Gain (Loss) on equity
securities |
30 |
|
|
56 |
|
|
(30 |
) |
|
133 |
|
|
(122 |
) |
Gain (Loss) on sale of
investments |
5 |
|
|
— |
|
|
(9 |
) |
|
5 |
|
|
32 |
|
Other income |
207 |
|
|
373 |
|
|
455 |
|
|
749 |
|
|
686 |
|
Total Noninterest Income |
4,386 |
|
|
4,099 |
|
|
3,941 |
|
|
11,781 |
|
|
10,764 |
|
OPERATING EXPENSES |
|
|
|
|
|
|
|
|
|
Personnel expenses |
7,007 |
|
|
7,005 |
|
|
6,625 |
|
|
20,652 |
|
|
19,255 |
|
Occupancy and equipment
expenses |
1,199 |
|
|
1,334 |
|
|
1,152 |
|
|
3,708 |
|
|
3,313 |
|
Technology expenses |
595 |
|
|
558 |
|
|
507 |
|
|
1,697 |
|
|
1,549 |
|
Advertising |
216 |
|
|
396 |
|
|
193 |
|
|
821 |
|
|
579 |
|
Other business development
expenses |
266 |
|
|
277 |
|
|
303 |
|
|
827 |
|
|
850 |
|
Data processing expense |
479 |
|
|
483 |
|
|
437 |
|
|
1,420 |
|
|
1,257 |
|
Other taxes |
425 |
|
|
455 |
|
|
325 |
|
|
1,234 |
|
|
1,016 |
|
Loan and deposit expenses |
285 |
|
|
392 |
|
|
242 |
|
|
901 |
|
|
644 |
|
Legal and professional
expenses |
436 |
|
|
383 |
|
|
382 |
|
|
1,138 |
|
|
1,050 |
|
Other operating expenses |
977 |
|
|
1,121 |
|
|
1,015 |
|
|
3,049 |
|
|
2,924 |
|
Total Operating Expenses |
11,885 |
|
|
12,404 |
|
|
11,181 |
|
|
35,447 |
|
|
32,437 |
|
INCOME BEFORE INCOME
TAX EXPENSE |
8,317 |
|
|
6,817 |
|
|
7,529 |
|
|
22,198 |
|
|
20,636 |
|
Income tax expense |
1,470 |
|
|
1,279 |
|
|
1,387 |
|
|
4,117 |
|
|
3,731 |
|
NET
INCOME |
$ |
6,847 |
|
|
$ |
5,538 |
|
|
$ |
6,142 |
|
|
$ |
18,081 |
|
|
$ |
16,905 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RED RIVER
BANCSHARES, INC. |
NET INTEREST
INCOME AND NET INTEREST MARGIN (UNAUDITED) |
|
|
For the Three Months Ended |
|
September 30, 2019 |
|
June 30, 2019 |
|
September 30, 2018 |
(dollars in thousands) |
Average Balance Outstanding |
|
Interest Earned/ Interest Paid |
|
Average Yield/ Rate |
|
Average Balance Outstanding |
|
Interest Earned/ Interest Paid |
|
Average Yield/ Rate |
|
Average Balance Outstanding |
|
Interest Earned/ Interest Paid |
|
Average Yield/ Rate |
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans(1,2) |
$ |
1,408,146 |
|
|
$ |
16,578 |
|
|
4.61 |
% |
|
$ |
1,372,020 |
|
|
$ |
15,945 |
|
|
4.60 |
% |
|
$ |
1,333,720 |
|
|
$ |
15,285 |
|
|
4.49 |
% |
Securities - taxable |
255,846 |
|
|
1,352 |
|
|
2.11 |
% |
|
252,742 |
|
|
1,344 |
|
|
2.13 |
% |
|
270,179 |
|
|
1,368 |
|
|
2.02 |
% |
Securities - tax-exempt |
77,047 |
|
|
448 |
|
|
2.33 |
% |
|
73,863 |
|
|
440 |
|
|
2.38 |
% |
|
56,242 |
|
|
321 |
|
|
2.29 |
% |
Federal funds sold |
32,461 |
|
|
178 |
|
|
2.15 |
% |
|
35,390 |
|
|
212 |
|
|
2.37 |
% |
|
15,761 |
|
|
82 |
|
|
2.02 |
% |
Interest-bearing balances due from banks |
38,676 |
|
|
213 |
|
|
2.16 |
% |
|
52,477 |
|
|
306 |
|
|
2.31 |
% |
|
39,657 |
|
|
197 |
|
|
1.95 |
% |
Nonmarketable equity securities |
1,342 |
|
|
10 |
|
|
2.99 |
% |
|
1,333 |
|
|
4 |
|
|
1.30 |
% |
|
1,292 |
|
|
9 |
|
|
2.71 |
% |
Investment in trusts |
64 |
|
|
2 |
|
|
10.91 |
% |
|
324 |
|
|
5 |
|
|
5.99 |
% |
|
341 |
|
|
4 |
|
|
5.23 |
% |
Total interest-earning assets |
1,813,582 |
|
|
$ |
18,781 |
|
|
4.06 |
% |
|
1,788,149 |
|
|
$ |
18,256 |
|
|
4.05 |
% |
|
1,717,192 |
|
|
$ |
17,266 |
|
|
3.95 |
% |
Allowance for loan losses |
(13,755 |
) |
|
|
|
|
|
(13,299 |
) |
|
|
|
|
|
(11,962 |
) |
|
|
|
|
Noninterest earning assets |
110,062 |
|
|
|
|
|
|
105,677 |
|
|
|
|
|
|
88,833 |
|
|
|
|
|
Total assets |
$ |
1,909,889 |
|
|
|
|
|
|
$ |
1,880,527 |
|
|
|
|
|
|
$ |
1,794,063 |
|
|
|
|
|
Liabilities and Stockholders’
Equity |
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing transaction deposits |
$ |
724,219 |
|
|
$ |
972 |
|
|
0.53 |
% |
|
$ |
733,328 |
|
|
$ |
995 |
|
|
0.54 |
% |
|
$ |
697,485 |
|
|
$ |
689 |
|
|
0.39 |
% |
Time deposits |
338,330 |
|
|
1,542 |
|
|
1.81 |
% |
|
332,474 |
|
|
1,454 |
|
|
1.75 |
% |
|
320,955 |
|
|
1,129 |
|
|
1.40 |
% |
Total interest-bearing deposits |
1,062,549 |
|
|
2,514 |
|
|
0.94 |
% |
|
1,065,802 |
|
|
2,449 |
|
|
0.92 |
% |
|
1,018,440 |
|
|
1,818 |
|
|
0.71 |
% |
Junior subordinated debentures |
2,129 |
|
|
73 |
|
|
13.64 |
% |
|
10,763 |
|
|
156 |
|
|
5.81 |
% |
|
11,341 |
|
|
150 |
|
|
5.25 |
% |
Other borrowings |
22 |
|
|
— |
|
|
2.80 |
% |
|
— |
|
|
— |
|
|
— |
% |
|
303 |
|
|
3 |
|
|
3.24 |
% |
Total interest-bearing liabilities |
1,064,700 |
|
|
$ |
2,587 |
|
|
0.96 |
% |
|
1,076,565 |
|
|
$ |
2,605 |
|
|
0.97 |
% |
|
1,030,084 |
|
|
$ |
1,971 |
|
|
0.76 |
% |
Noninterest-bearing liabilities: |
Noninterest-bearing deposits |
586,664 |
|
|
|
|
|
|
564,911 |
|
|
|
|
|
|
566,056 |
|
|
|
|
|
Accrued interest and other liabilities |
16,084 |
|
|
|
|
|
|
15,158 |
|
|
|
|
|
|
9,863 |
|
|
|
|
|
Total noninterest-bearing liabilities: |
602,748 |
|
|
|
|
|
|
580,069 |
|
|
|
|
|
|
575,919 |
|
|
|
|
|
Stockholders’ equity |
242,441 |
|
|
|
|
|
|
223,893 |
|
|
|
|
|
|
188,060 |
|
|
|
|
|
Total liabilities and stockholders’ equity |
$ |
1,909,889 |
|
|
|
|
|
|
$ |
1,880,527 |
|
|
|
|
|
|
$ |
1,794,063 |
|
|
|
|
|
Net interest income |
|
|
$ |
16,194 |
|
|
|
|
|
|
$ |
15,651 |
|
|
|
|
|
|
$ |
15,295 |
|
|
|
Net interest spread |
|
|
|
|
3.10 |
% |
|
|
|
|
|
3.08 |
% |
|
|
|
|
|
3.19 |
% |
Net interest margin |
|
|
|
|
3.50 |
% |
|
|
|
|
|
3.46 |
% |
|
|
|
|
|
3.49 |
% |
Net interest margin
FTE(3) |
|
|
|
|
3.55 |
% |
|
|
|
|
|
3.51 |
% |
|
|
|
|
|
3.54 |
% |
Cost of deposits |
|
|
|
|
0.60 |
% |
|
|
|
|
|
0.60 |
% |
|
|
|
|
|
0.46 |
% |
Cost of funds |
|
|
|
|
0.57 |
% |
|
|
|
|
|
0.58 |
% |
|
|
|
|
|
0.46 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes average outstanding balances of loans held for
sale of $6.0 million, $3.6 million, and $3.2 million for the three
months ended September 30, 2019, June 30, 2019, and September
30, 2018, respectively.(2) Nonaccrual loans are included as
loans carrying a zero yield.(3) Net interest margin FTE
includes an FTE adjustment using a 21% federal income tax rate on
tax-exempt securities and tax-exempt loans.
RED RIVER
BANCSHARES, INC. |
NET INTEREST
INCOME AND NET INTEREST MARGIN (UNAUDITED) |
|
|
For the Nine Months Ended September 30, |
|
2019 |
|
2018 |
(dollars in thousands) |
Average Balance Outstanding |
|
Interest Earned/ Interest Paid |
|
Average Yield/ Rate |
|
Average Balance Outstanding |
|
Interest Earned/ Interest Paid |
|
Average Yield/ Rate |
Assets |
|
|
|
|
|
|
|
|
|
|
|
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
Loans(1,2) |
$ |
1,375,129 |
|
|
$ |
48,026 |
|
|
4.61 |
% |
|
$ |
1,302,848 |
|
|
$ |
43,307 |
|
|
4.38 |
% |
Securities - taxable |
256,618 |
|
|
4,074 |
|
|
2.12 |
% |
|
281,683 |
|
|
4,255 |
|
|
2.01 |
% |
Securities - tax-exempt |
71,892 |
|
|
1,273 |
|
|
2.36 |
% |
|
58,032 |
|
|
999 |
|
|
2.30 |
% |
Federal funds sold |
34,019 |
|
|
603 |
|
|
2.34 |
% |
|
14,547 |
|
|
196 |
|
|
1.78 |
% |
Interest-bearing balances due from banks |
53,759 |
|
|
935 |
|
|
2.30 |
% |
|
31,880 |
|
|
423 |
|
|
1.75 |
% |
Nonmarketable equity securities |
1,325 |
|
|
19 |
|
|
1.86 |
% |
|
1,283 |
|
|
14 |
|
|
1.43 |
% |
Investment in trusts |
242 |
|
|
11 |
|
|
6.23 |
% |
|
341 |
|
|
13 |
|
|
4.91 |
% |
Total interest-earning assets |
1,792,984 |
|
|
$ |
54,941 |
|
|
4.05 |
% |
|
1,690,614 |
|
|
$ |
49,207 |
|
|
3.85 |
% |
Allowance for loan losses |
(13,267 |
) |
|
|
|
|
|
(11,482 |
) |
|
|
|
|
Noninterest earning assets |
105,793 |
|
|
|
|
|
|
88,552 |
|
|
|
|
|
Total assets |
$ |
1,885,510 |
|
|
|
|
|
|
$ |
1,767,684 |
|
|
|
|
|
Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing transaction deposits |
$ |
736,947 |
|
|
$ |
2,930 |
|
|
0.53 |
% |
|
$ |
705,099 |
|
|
$ |
1,909 |
|
|
0.36 |
% |
Time deposits |
335,201 |
|
|
4,330 |
|
|
1.73 |
% |
|
319,239 |
|
|
3,109 |
|
|
1.30 |
% |
Total interest-bearing deposits |
1,072,148 |
|
|
7,260 |
|
|
0.91 |
% |
|
1,024,338 |
|
|
5,018 |
|
|
0.65 |
% |
Junior subordinated debentures |
8,044 |
|
|
385 |
|
|
6.39 |
% |
|
11,341 |
|
|
410 |
|
|
4.83 |
% |
Other borrowings |
7 |
|
|
— |
|
|
2.80 |
% |
|
246 |
|
|
6 |
|
|
3.46 |
% |
Total interest-bearing liabilities |
1,080,199 |
|
|
$ |
7,645 |
|
|
0.95 |
% |
|
1,035,925 |
|
|
$ |
5,434 |
|
|
0.70 |
% |
Noninterest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits |
568,053 |
|
|
|
|
|
|
539,269 |
|
|
|
|
|
Accrued interest and other liabilities |
15,756 |
|
|
|
|
|
|
9,439 |
|
|
|
|
|
Total noninterest-bearing liabilities: |
583,809 |
|
|
|
|
|
|
548,708 |
|
|
|
|
|
Stockholders’ equity |
221,502 |
|
|
|
|
|
|
183,051 |
|
|
|
|
|
Total liabilities and stockholders’ equity |
$ |
1,885,510 |
|
|
|
|
|
|
$ |
1,767,684 |
|
|
|
|
|
Net interest income |
|
|
$ |
47,296 |
|
|
|
|
|
|
$ |
43,773 |
|
|
|
Net interest spread |
|
|
|
|
3.10 |
% |
|
|
|
|
|
3.15 |
% |
Net interest margin |
|
|
|
|
3.48 |
% |
|
|
|
|
|
3.42 |
% |
Net interest margin
FTE(3) |
|
|
|
|
3.53 |
% |
|
|
|
|
|
3.46 |
% |
Cost of deposits |
|
|
|
|
0.59 |
% |
|
|
|
|
|
0.43 |
% |
Cost of funds |
|
|
|
|
0.57 |
% |
|
|
|
|
|
0.43 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes average outstanding balances of loans held for
sale of $4.1 million and $2.9 million for the nine months ended
September 30, 2019 and 2018, respectively.(2) Nonaccrual
loans are included as loans carrying a zero yield.(3) Net
interest margin FTE includes an FTE adjustment using a 21% federal
income tax rate on tax-exempt securities and tax-exempt loans.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES |
|
(dollars in thousands except per share data) |
Sept. 30, 2019 |
|
June 30, 2019 |
|
Sept. 30, 2018 |
Tangible common equity |
|
|
|
|
|
Total
stockholders' equity |
$ |
245,389 |
|
|
$ |
237,911 |
|
|
$ |
189,131 |
|
Adjustments: |
|
|
|
|
|
Intangible assets |
(1,546 |
) |
|
(1,546 |
) |
|
(1,546 |
) |
Total tangible common equity |
$ |
243,843 |
|
|
$ |
236,365 |
|
|
$ |
187,585 |
|
Common shares outstanding(1) |
7,306,221 |
|
|
7,300,246 |
|
|
6,733,848 |
|
Book value per common share(1) |
$ |
33.59 |
|
|
$ |
32.59 |
|
|
$ |
28.09 |
|
Tangible book value per common share(1) |
$ |
33.37 |
|
|
$ |
32.38 |
|
|
$ |
27.86 |
|
|
|
|
|
|
|
Tangible assets |
|
|
|
|
|
Total assets |
$ |
1,938,854 |
|
|
$ |
1,892,918 |
|
|
$ |
1,816,296 |
|
Adjustments: |
|
|
|
|
|
Intangible assets |
(1,546 |
) |
|
(1,546 |
) |
|
(1,546 |
) |
Total tangible assets |
$ |
1,937,308 |
|
|
$ |
1,891,372 |
|
|
$ |
1,814,750 |
|
Total stockholder's equity to assets |
12.66 |
% |
|
12.57 |
% |
|
10.41 |
% |
Tangible common equity to tangible assets |
12.59 |
% |
|
12.50 |
% |
|
10.34 |
% |
|
|
|
|
|
|
|
|
|
(1) September 30, 2018 amount adjusted to give effect
to a 2-for-1 stock split with a record date of October 1, 2018.
SOURCE: Red River Bancshares, Inc.
Contact:
Isabel V. Carriere, CPA, CGMA
Executive Vice-President and Chief Financial Officer
318-561-4023
icarriere@redriverbank.net
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