Red River Bancshares, Inc. (the “Company”), (Nasdaq: RRBI), the
holding company for Red River Bank (the “Bank”), announced today
its financial results for the fourth quarter and year ended 2019.
Net income for the fourth quarter of 2019 was $6.7 million, or
$0.92 per diluted common share ("EPS"), a decrease of $104,000, or
1.5%, compared to $6.8 million, or $0.93 EPS, for the third quarter
of 2019, and an increase of $592,000, or 9.6%, compared to $6.2
million, or $0.91 EPS, for the fourth quarter of 2018.
Net income for the twelve months ended December 31, 2019,
was $24.8 million, or $3.49 EPS, an increase of $1.8 million, or
7.7%, compared to $23.1 million, or $3.41 EPS, for the twelve
months ended December 31, 2018.
Fourth Quarter 2019 Performance and Operational
Highlights
- Net income was $6.7 million, which was $104,000, or 1.5%, lower
compared to the third quarter of 2019. This resulted in a quarterly
return on assets of 1.37% and a quarterly return on equity of
10.72%.
- The fourth quarter of 2019 benefited from a $71,000 dividend
from a Small Business Investment Company ("SBIC") limited
partnership and $132,000 from nonrecurring operating expense
reductions.
- The net interest margin, fully tax equivalent basis ("FTE"),
decreased by five basis points to 3.50% for the fourth quarter of
2019 compared to 3.55% for the prior quarter. The net interest
margin was negatively impacted by the three Federal Reserve rate
decreases which occurred in the third and fourth quarters of
2019.
- As of December 31, 2019, the Company had $1.99 billion of
assets. Assets increased 2.5% from September 30, 2019, and 6.9%
from December 31, 2018.
- Loans held for investment ("HFI") increased 1.8% from September
30, 2019, and 8.3% from December 31, 2018.
- Deposits increased 2.6% from September 30, 2019, and 4.6% from
December 31, 2018. The increase in deposits during the fourth
quarter was primarily attributable to the seasonal inflow of funds
from public entity customers.
- As of December 31, 2019, the loans HFI to deposits ratio was
83.60%, and the noninterest-bearing deposits to total deposits
ratio was 33.98%.
- The nonperforming assets ("NPA(s)") to total assets ratio
improved to 0.33% as of December 31, 2019, from 0.41% as of
September 30, 2019.
- The net charge-offs to average loans ratio was 0.02% for the
quarter ended December 31, 2019, and 0.03% for the year ended
December 31, 2019.
- The Bank did not have an FDIC insurance assessment for the
third or fourth quarters of 2019.
- As part of our continued Southwest Louisiana market expansion,
in the fourth quarter of 2019, we purchased a banking center
location and added to our lending team in the Southwest Louisiana
market. The purchased property is located in Sulphur, Louisiana.
Sulphur encompasses the western portion of the Lake Charles
metropolitan statistical area ("MSA") and is home to many major
industrial projects, either completed or under construction in
Southwest Louisiana, over the past few years. We expect to open a
full-service banking center at the Sulphur location late in the
first quarter of 2020, pending receipt of all regulatory approvals.
The addition to our lending team included hiring an experienced,
longtime Southwest Louisiana banker and community leader to join
the Red River Bank commercial banking team.
Blake Chatelain, President and Chief Executive Officer stated,
"We are pleased with our 2019 accomplishments, growth, and
financial results. Our initial public offering and selection to be
included in the Russell 2000 Index were significant milestones for
our shareholders, customers, and employees. In 2019, we expanded
organically throughout Louisiana, increasing our balance sheet to
almost $2.0 billion in assets. Net income also increased 7.7%
compared to the prior year. We mitigated the impact of the three
Federal Reserve rate decreases in the second half of 2019 with
diligent balance sheet management and pricing strategies. Also,
asset quality levels improved with the NPAs to total assets ratio
decreasing to 0.33% as of year end, the lowest it has been in 11
quarters."
Mr. Chatelain added, "Our organic expansion in the Southwest
Louisiana market is part of our continued commitment to, and
investment in providing banking services throughout Louisiana. We
are pleased to have purchased the Sulphur property and to have
expanded our banking team in this area. We look forward to opening
this property as our second banking center location in southwest
Louisiana as quickly as possible and expanding our customer base in
this vibrant market."
Net Interest Income and Net Interest Margin
(FTE)
Net interest income for the fourth quarter of 2019 was $16.3
million, which was $149,000, or 0.9%, higher than the third quarter
of 2019. The increase in net interest income was due to a $146,000
decrease in interest expense. The junior subordinated debentures
were paid off in the third quarter of 2019, resulting in a $73,000
reduction in debenture interest expense. Additionally, interest
expense relating to interest-bearing deposits decreased by
$73,000.
The net interest margin (FTE) was negatively impacted by the
three Federal Reserve rate decreases which occurred in the third
and fourth quarters of 2019. The net interest margin (FTE) was
3.50% for the fourth quarter of 2019 compared to 3.55% for the
prior quarter. The effect of the lower interest rate environment
was mitigated by managing loan and deposit pricing strategies and
adjusting the investment portfolio composition.
The yield on loans decreased eight basis points due to the
impact of the lower interest rate environment on new, renewed, and
floating rate loans. As of December 31, 2019, floating rate loans
were 15.8% of the loan portfolio. The yield on federal funds sold
decreased 54 basis points. Partially offsetting these decreases,
the yield on taxable securities improved four basis points due to a
portfolio realignment completed in the fourth quarter of 2019. The
resulting yield on earning assets was 3.97% for the fourth quarter
of 2019 compared to 4.06% for the third quarter of 2019.
The rate on interest-bearing deposits decreased four basis
points due to lower rates on new and renewed time deposits,
combined with a slight decrease in rates on certain
interest-bearing transaction deposit accounts. The cost of deposits
was 0.57% for the fourth quarter of 2019 compared to 0.60% for the
third quarter of 2019.
Noninterest Income
Noninterest income totaled $4.2 million for the fourth quarter
of 2019, a decrease of $197,000, or 4.5%, compared to $4.4 million
for the previous quarter. The decrease was mainly due to lower
mortgage loan income, partially offset by higher service charges on
deposit accounts and a dividend from an SBIC limited
partnership.
Mortgage loan income decreased $198,000, or 19.5%, in the fourth
quarter of 2019, compared to the previous quarter. This decrease
was due in part to a decline in activity related to seasonality of
mortgage demand, as well as the stabilization of mortgage rates
during the fourth quarter.
Service charges on deposit accounts increased $75,000, or 6.3%,
for the fourth quarter of 2019, compared to the prior quarter. This
increase was due greater customer volume and activity.
SBIC income increased by $46,000 in the fourth quarter of 2019,
or 33.1%, from the third quarter of 2019. This increase was a
result of a $71,000 dividend received in the fourth quarter of 2019
from an SBIC limited partnership of which Red River Bank is a
member. No dividend was received in the third quarter of 2019.
Operating Expenses
Operating expenses remained consistent at $11.9 million when
comparing the third and the fourth quarters of 2019. As a result of
our expansion, personnel and occupancy expenses increased. These
higher expenses were offset by nonrecurring reductions throughout
various expense categories.
Personnel expenses totaled $7.1 million for the fourth quarter
of 2019, up $141,000, or 2.0%, from the third quarter of 2019. This
increase was due to additional staff resulting from our expansion
in the Northshore and Southwest Louisiana markets, annual
self-insurance administrative fees, and other compensation
adjustments.
Occupancy and equipment expenses totaled $1.3 million for the
fourth quarter of 2019, up $69,000, or 5.8%, from the third quarter
of 2019. This increase was primarily due to opening the Covington
banking center in the Northshore market and normal property
maintenance.
Data processing expense totaled $462,000 for the fourth quarter
of 2019, down $17,000, or 3.5%, from the third quarter of 2019.
This decrease was due to receipt of a $39,000 nonrecurring refund
from our data processing center in the fourth quarter.
Other taxes totaled $346,000 for the fourth quarter of 2019,
down $79,000, or 18.6%, from the third quarter of 2019. The State
of Louisiana bank stock tax expense was lower due to a $53,000
nonrecurring year-end adjustment.
Loan and deposit expenses totaled $247,000 for the fourth
quarter of 2019, down $38,000, or 13.3%, from the third quarter of
2019. This decrease was primarily attributed to the receipt of a
$40,000 negotiated rebate from a vendor.
Other operating expenses totaled $895,000 for the fourth quarter
of 2019, down $45,000, or 4.8%, from the third quarter of 2019.
This reduction was primarily related to a $67,000 decrease in
expenses associated with other real estate owned.
Loans and Asset Quality
Loans HFI as of December 31, 2019, were $1.44 billion, an
increase of $25.8 million, or 1.8%, from September 30, 2019.
The increase in loans in the fourth 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 2.2% of loans HFI as of December 31,
2019, compared to 2.3% as of September 30, 2019.
NPAs totaled $6.5 million as of December 31, 2019, down $1.5
million, or 18.9%, from September 30, 2019, primarily due to
payoffs received on nonperforming loans. The ratio of NPAs to total
assets improved to 0.33% as of December 31, 2019, from 0.41% as of
September 30, 2019.
As of December 31, 2019, the allowance for loan losses ("ALL")
was $13.9 million, and the ratio of ALL to loans HFI was 0.97%. The
net charge-off ratio was 0.02% for the fourth quarter of 2019 and
0.03% for the year ended December 31, 2019. The provision for loan
losses was $378,000 for each of the third and fourth quarters of
2019.
Deposits
Deposits as of December 31, 2019, were $1.72 billion, an
increase of $44.3 million, or 2.6%, compared to September 30,
2019. Average deposits for the fourth quarter of 2019 were $1.69
billion, an increase of $38.9 million, or 2.4%, from the prior
quarter.
Noninterest-bearing deposits totaled $584.9 million as of
December 31, 2019, down $30.1 million, or 4.9%, from
September 30, 2019, due to normal customer activity. As of
December 31, 2019, noninterest-bearing deposits were 33.98% of
total deposits.
Interest-bearing deposits totaled $1.14 billion as of
December 31, 2019, up $74.4 million, or 7.0%, compared to
September 30, 2019. This increase is due to the seasonal
inflow of funds from public entity customers.
Junior Subordinated Debentures
All junior subordinated debentures were redeemed during the
second and third quarters of 2019, leaving no outstanding long-term
debt as of September 30, 2019. There was no interest expense for
the junior subordinated debentures in the fourth quarter of 2019
compared to $73,000 for the third quarter of 2019.
Stockholders’ Equity
Total stockholders’ equity increased to $251.9 million as of
December 31, 2019, from $245.4 million as of
September 30, 2019. The $6.5 million increase in stockholders’
equity during the fourth quarter of 2019 was attributable to $6.7
million of net income, partially offset by $298,000 of other
comprehensive loss.
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 ("SEC")
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.
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. However, these non-GAAP financial
measures 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.
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 Louisiana markets:
Central Louisiana, which includes the Alexandria 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.
Contact:Isabel V. Carriere, CPA, CGMAExecutive Vice President
and Chief Financial
Officer318-561-4023icarriere@redriverbank.net
| FINANCIAL
HIGHLIGHTS (UNAUDITED) |
| |
| |
|
As of and
for the Three Months Ended |
|
As of and
for the Twelve Months Ended |
| (Dollars in thousands, except per share data) |
|
Dec. 31, 2019 |
|
Sept. 30, 2019 |
|
Dec. 31, 2018 |
|
Dec. 31, 2019 |
|
Dec. 31, 2018 |
| |
|
|
|
|
|
|
|
|
|
|
| Net
Income |
|
$ |
6,743 |
|
|
$ |
6,847 |
|
|
$ |
6,151 |
|
|
$ |
24,824 |
|
|
$ |
23,056 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Per Common Share Data: |
|
|
|
|
|
|
|
|
|
|
|
Earnings per share, basic |
|
$ |
0.92 |
|
|
$ |
0.94 |
|
|
$ |
0.92 |
|
|
$ |
3.51 |
|
|
$ |
3.43 |
|
|
Earnings per share, diluted |
|
$ |
0.92 |
|
|
$ |
0.93 |
|
|
$ |
0.91 |
|
|
$ |
3.49 |
|
|
$ |
3.41 |
|
|
Book value per share |
|
$ |
34.48 |
|
|
$ |
33.59 |
|
|
$ |
29.23 |
|
|
$ |
34.48 |
|
|
$ |
29.23 |
|
|
Tangible book value per share |
|
$ |
34.27 |
|
|
$ |
33.37 |
|
|
$ |
28.99 |
|
|
$ |
34.27 |
|
|
$ |
28.99 |
|
|
Cash dividends per share |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
0.20 |
|
|
$ |
0.15 |
|
|
Weighted average shares outstanding, basic |
|
7,306,221 |
|
|
7,304,273 |
|
|
6,688,624 |
|
|
7,072,689 |
|
|
6,716,943 |
|
|
Weighted average shares outstanding, diluted |
|
7,347,602 |
|
|
7,340,498 |
|
|
6,724,669 |
|
|
7,115,514 |
|
|
6,756,102 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Summary Performance Ratios: |
|
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
1.37 |
% |
|
1.42 |
% |
|
1.33 |
% |
|
1.30 |
% |
|
1.29 |
% |
|
Return on average equity |
|
10.72 |
% |
|
11.20 |
% |
|
12.77 |
% |
|
10.86 |
% |
|
12.46 |
% |
|
Net interest margin |
|
3.45 |
% |
|
3.50 |
% |
|
3.45 |
% |
|
3.47 |
% |
|
3.42 |
% |
|
Net interest margin (FTE) |
|
3.50 |
% |
|
3.55 |
% |
|
3.50 |
% |
|
3.52 |
% |
|
3.44 |
% |
|
Efficiency ratio |
|
57.90 |
% |
|
57.75 |
% |
|
57.12 |
% |
|
59.46 |
% |
|
58.86 |
% |
|
Loans HFI to deposits ratio |
|
83.60 |
% |
|
84.27 |
% |
|
80.73 |
% |
|
83.60 |
% |
|
80.73 |
% |
|
Noninterest-bearing deposits to deposits ratio |
|
33.98 |
% |
|
36.68 |
% |
|
33.29 |
% |
|
33.98 |
% |
|
33.29 |
% |
|
Noninterest income to average assets |
|
0.85 |
% |
|
0.91 |
% |
|
0.81 |
% |
|
0.84 |
% |
|
0.81 |
% |
|
Operating expense to average assets |
|
2.41 |
% |
|
2.47 |
% |
|
2.37 |
% |
|
2.49 |
% |
|
2.43 |
% |
| |
|
|
|
|
|
|
|
|
|
|
| Summary Credit Quality Ratios: |
|
|
|
|
|
|
|
|
|
|
|
Nonperforming assets to total assets |
|
0.33 |
% |
|
0.41 |
% |
|
0.38 |
% |
|
0.33 |
% |
|
0.38 |
% |
|
Nonperforming loans to loans HFI |
|
0.37 |
% |
|
0.47 |
% |
|
0.49 |
% |
|
0.37 |
% |
|
0.49 |
% |
|
Allowance for loan losses to loans HFI |
|
0.97 |
% |
|
0.98 |
% |
|
0.94 |
% |
|
0.97 |
% |
|
0.94 |
% |
|
Net charge-offs to average loans |
|
0.02 |
% |
|
0.00 |
% |
|
0.02 |
% |
|
0.03 |
% |
|
0.03 |
% |
| |
|
|
|
|
|
|
|
|
|
|
| Capital Ratios: |
|
|
|
|
|
|
|
|
|
|
|
Total stockholders' equity to total assets |
|
12.67 |
% |
|
12.66 |
% |
|
10.41 |
% |
|
12.67 |
% |
|
10.41 |
% |
|
Tangible common equity to tangible assets |
|
12.60 |
% |
|
12.59 |
% |
|
10.34 |
% |
|
12.60 |
% |
|
10.34 |
% |
|
Total risk-based capital to risk-weighted assets |
|
18.02 |
% |
|
17.76 |
% |
|
16.55 |
% |
|
18.02 |
% |
|
16.55 |
% |
|
Tier 1 risk-based capital to risk-weighted assets |
|
17.07 |
% |
|
16.80 |
% |
|
15.62 |
% |
|
17.07 |
% |
|
15.62 |
% |
|
Common equity tier 1 capital to risk-weighted assets |
|
17.07 |
% |
|
16.80 |
% |
|
14.80 |
% |
|
17.07 |
% |
|
14.80 |
% |
|
Tier 1 risk-based capital to average assets |
|
12.82 |
% |
|
12.77 |
% |
|
11.40 |
% |
|
12.82 |
% |
|
11.40 |
% |
| RED RIVER
BANCSHARES, INC. |
| CONSOLIDATED
BALANCE SHEETS (UNAUDITED) |
| |
| (in thousands) |
Dec. 31, 2019 |
|
Sept. 30, 2019 |
|
June 30, 2019 |
|
Mar. 31, 2019 |
|
Dec. 31, 2018 |
| ASSETS |
|
|
|
|
|
|
|
|
|
| Cash and due
from banks |
$ |
25,937 |
|
|
$ |
32,724 |
|
|
$ |
29,854 |
|
|
$ |
32,371 |
|
|
$ |
34,070 |
|
| Interest-bearing deposits in other banks |
107,355 |
|
|
73,598 |
|
|
71,761 |
|
|
145,593 |
|
|
117,836 |
|
| Securities available-for-sale |
335,573 |
|
|
341,900 |
|
|
318,082 |
|
|
319,353 |
|
|
307,877 |
|
| Equity securities |
3,936 |
|
|
3,954 |
|
|
3,924 |
|
|
3,869 |
|
|
3,821 |
|
| Nonmarketable equity securities |
1,350 |
|
|
1,347 |
|
|
1,342 |
|
|
1,303 |
|
|
1,299 |
|
| Loans held for sale |
5,089 |
|
|
4,113 |
|
|
6,029 |
|
|
2,210 |
|
|
2,904 |
|
| Loans held for investment |
1,438,924 |
|
|
1,413,162 |
|
|
1,393,154 |
|
|
1,349,181 |
|
|
1,328,438 |
|
| Allowance for loan losses |
(13,937 |
) |
|
(13,906 |
) |
|
(13,591 |
) |
|
(13,101 |
) |
|
(12,524 |
) |
| Premises and equipment, net |
41,744 |
|
|
39,828 |
|
|
40,032 |
|
|
40,033 |
|
|
39,690 |
|
| Accrued interest receivable |
5,251 |
|
|
4,928 |
|
|
5,570 |
|
|
4,988 |
|
|
5,013 |
|
| Bank-owned life insurance |
21,845 |
|
|
21,707 |
|
|
21,570 |
|
|
21,434 |
|
|
21,301 |
|
| Intangible assets |
1,546 |
|
|
1,546 |
|
|
1,546 |
|
|
1,546 |
|
|
1,546 |
|
| Right-of-use assets |
4,553 |
|
|
4,651 |
|
|
4,748 |
|
|
4,844 |
|
|
— |
|
| Other assets |
9,059 |
|
|
9,302 |
|
|
8,897 |
|
|
8,494 |
|
|
9,317 |
|
|
Total Assets |
$ |
1,988,225 |
|
|
$ |
1,938,854 |
|
|
$ |
1,892,918 |
|
|
$ |
1,922,118 |
|
|
$ |
1,860,588 |
|
| |
|
|
|
|
|
|
|
|
|
| LIABILITIES |
|
|
|
|
|
|
|
|
|
| Noninterest-bearing deposits |
$ |
584,915 |
|
|
$ |
615,051 |
|
|
$ |
576,934 |
|
|
$ |
565,757 |
|
|
$ |
547,880 |
|
| Interest-bearing deposits |
1,136,205 |
|
|
1,061,800 |
|
|
1,057,656 |
|
|
1,125,377 |
|
|
1,097,703 |
|
|
Total Deposits |
1,721,120 |
|
|
1,676,851 |
|
|
1,634,590 |
|
|
1,691,134 |
|
|
1,645,583 |
|
| Other borrowed funds |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
| Junior subordinated debentures |
— |
|
|
— |
|
|
5,155 |
|
|
11,341 |
|
|
11,341 |
|
| Accrued interest payable |
2,222 |
|
|
1,925 |
|
|
1,998 |
|
|
1,967 |
|
|
1,757 |
|
| Lease liabilities |
4,603 |
|
|
4,688 |
|
|
4,773 |
|
|
4,856 |
|
|
— |
|
| Accrued expenses and other liabilities |
8,382 |
|
|
10,001 |
|
|
8,491 |
|
|
10,636 |
|
|
8,204 |
|
|
Total Liabilities |
1,736,327 |
|
|
1,693,465 |
|
|
1,655,007 |
|
|
1,719,934 |
|
|
1,666,885 |
|
| COMMITMENTS AND CONTINGENCIES |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
| STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
| Preferred stock, no par value |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
| Common stock, no par value |
68,082 |
|
|
68,082 |
|
|
68,082 |
|
|
41,271 |
|
|
41,094 |
|
| Additional paid-in capital |
1,269 |
|
|
1,205 |
|
|
1,141 |
|
|
1,091 |
|
|
1,042 |
|
| Retained earnings |
182,571 |
|
|
175,828 |
|
|
168,981 |
|
|
163,443 |
|
|
159,073 |
|
| Accumulated other comprehensive income (loss) |
(24 |
) |
|
274 |
|
|
(293 |
) |
|
(3,621 |
) |
|
(7,506 |
) |
|
Total Stockholders' Equity |
251,898 |
|
|
245,389 |
|
|
237,911 |
|
|
202,184 |
|
|
193,703 |
|
|
Total Liabilities and Stockholders' Equity |
$ |
1,988,225 |
|
|
$ |
1,938,854 |
|
|
$ |
1,892,918 |
|
|
$ |
1,922,118 |
|
|
$ |
1,860,588 |
|
| RED RIVER
BANCSHARES, INC. |
|
| CONSOLIDATED
STATEMENTS OF INCOME (UNAUDITED) |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| |
|
For the ThreeMonths Ended |
|
For the Twelve Months Ended |
|
| (in thousands) |
|
Dec. 31, 2019 |
|
Sept. 30, 2019 |
|
Dec. 31, 2018 |
|
Dec. 31, 2019 |
|
Dec. 31, 2018 |
|
| |
| INTEREST AND DIVIDEND INCOME |
|
|
|
|
|
|
|
|
|
|
|
| Interest and
fees on loans |
|
$ |
16,544 |
|
|
$ |
16,578 |
|
|
$ |
15,440 |
|
|
$ |
64,570 |
|
|
$ |
58,747 |
|
|
| Interest on securities |
|
1,894 |
|
|
1,800 |
|
|
1,697 |
|
|
7,241 |
|
|
6,951 |
|
|
| Interest on federal funds sold |
|
150 |
|
|
178 |
|
|
160 |
|
|
753 |
|
|
356 |
|
|
| Interest on deposits in other banks |
|
192 |
|
|
213 |
|
|
375 |
|
|
1,127 |
|
|
798 |
|
|
| Dividends on stock |
|
4 |
|
|
12 |
|
|
8 |
|
|
34 |
|
|
34 |
|
|
|
Total Interest and Dividend Income |
|
18,784 |
|
|
18,781 |
|
|
17,680 |
|
|
73,725 |
|
|
66,886 |
|
|
| INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
| Interest on deposits |
|
2,441 |
|
|
2,514 |
|
|
2,066 |
|
|
9,701 |
|
|
7,084 |
|
|
| Interest on other borrowed
funds |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
7 |
|
|
| Interest on junior
subordinated debentures |
|
— |
|
|
73 |
|
|
149 |
|
|
385 |
|
|
558 |
|
|
|
Total Interest Expense |
|
2,441 |
|
|
2,587 |
|
|
2,215 |
|
|
10,086 |
|
|
7,649 |
|
|
| NET INTEREST
INCOME |
|
16,343 |
|
|
16,194 |
|
|
15,465 |
|
|
63,639 |
|
|
59,237 |
|
|
| Provision for loan losses |
|
378 |
|
|
378 |
|
|
526 |
|
|
1,810 |
|
|
1,990 |
|
|
| NET INTEREST INCOME
AFTER PROVISION FOR LOAN LOSSES |
|
15,965 |
|
|
15,816 |
|
|
14,939 |
|
|
61,829 |
|
|
57,247 |
|
|
| NONINTEREST INCOME |
|
|
|
|
|
|
|
|
|
|
|
| Service charges on deposit
accounts |
|
1,270 |
|
|
1,195 |
|
|
1,096 |
|
|
4,573 |
|
|
4,582 |
|
|
| Debit card income, net |
|
782 |
|
|
833 |
|
|
732 |
|
|
3,095 |
|
|
2,986 |
|
|
| Mortgage loan income |
|
816 |
|
|
1,014 |
|
|
432 |
|
|
3,002 |
|
|
2,107 |
|
|
| Brokerage income |
|
573 |
|
|
561 |
|
|
550 |
|
|
2,125 |
|
|
1,944 |
|
|
| Loan and deposit income |
|
389 |
|
|
404 |
|
|
416 |
|
|
1,521 |
|
|
1,359 |
|
|
| Bank-owned life insurance
income |
|
137 |
|
|
137 |
|
|
316 |
|
|
544 |
|
|
732 |
|
|
| Gain (Loss) on equity
securities |
|
(19 |
) |
|
30 |
|
|
37 |
|
|
115 |
|
|
(85 |
) |
|
| Gain (Loss) on sale of
investments |
|
13 |
|
|
5 |
|
|
— |
|
|
18 |
|
|
32 |
|
|
| SBIC income |
|
185 |
|
|
139 |
|
|
141 |
|
|
819 |
|
|
509 |
|
|
| Other income |
|
43 |
|
|
68 |
|
|
47 |
|
|
158 |
|
|
365 |
|
|
|
Total Noninterest Income |
|
4,189 |
|
|
4,386 |
|
|
3,767 |
|
|
15,970 |
|
|
14,531 |
|
|
| OPERATING EXPENSES |
|
|
|
|
|
|
|
|
|
|
|
| Personnel expenses |
|
7,148 |
|
|
7,007 |
|
|
6,839 |
|
|
27,800 |
|
|
26,094 |
|
|
| Occupancy and equipment
expenses |
|
1,268 |
|
|
1,199 |
|
|
1,187 |
|
|
4,976 |
|
|
4,500 |
|
|
| Technology expenses |
|
596 |
|
|
595 |
|
|
521 |
|
|
2,293 |
|
|
2,070 |
|
|
| Advertising |
|
204 |
|
|
216 |
|
|
183 |
|
|
1,025 |
|
|
762 |
|
|
| Other business development
expenses |
|
281 |
|
|
266 |
|
|
277 |
|
|
1,107 |
|
|
1,127 |
|
|
| Data processing expense |
|
462 |
|
|
479 |
|
|
129 |
|
|
1,882 |
|
|
1,386 |
|
|
| Other taxes |
|
346 |
|
|
425 |
|
|
311 |
|
|
1,579 |
|
|
1,327 |
|
|
| Loan and deposit expenses |
|
247 |
|
|
285 |
|
|
208 |
|
|
1,148 |
|
|
852 |
|
|
| Legal and professional
expenses |
|
403 |
|
|
436 |
|
|
372 |
|
|
1,541 |
|
|
1,422 |
|
|
| Regulatory assessment
expense |
|
38 |
|
|
37 |
|
|
162 |
|
|
351 |
|
|
642 |
|
|
| Other operating expenses |
|
895 |
|
|
940 |
|
|
797 |
|
|
3,633 |
|
|
3,240 |
|
|
|
Total Operating Expenses |
|
11,888 |
|
|
11,885 |
|
|
10,986 |
|
|
47,335 |
|
|
43,422 |
|
|
| INCOME BEFORE INCOME
TAX EXPENSE |
|
8,266 |
|
|
8,317 |
|
|
7,720 |
|
|
30,464 |
|
|
28,356 |
|
|
| Income tax expense |
|
1,523 |
|
|
1,470 |
|
|
1,569 |
|
|
5,640 |
|
|
5,300 |
|
|
| NET
INCOME |
|
$ |
6,743 |
|
|
$ |
6,847 |
|
|
$ |
6,151 |
|
|
$ |
24,824 |
|
|
$ |
23,056 |
|
|
| RED RIVER
BANCSHARES, INC. |
| NET INTEREST
INCOME AND NET INTEREST MARGIN (UNAUDITED) |
| |
| |
For the Three Months Ended |
| |
December 31, 2019 |
|
September 30, 2019 |
|
December 31, 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) |
$ |
1,428,978 |
|
|
$ |
16,544 |
|
|
4.53 |
% |
|
$ |
1,408,146 |
|
|
$ |
16,578 |
|
|
4.61 |
% |
|
$ |
1,339,468 |
|
|
$ |
15,440 |
|
|
4.52 |
% |
|
Securities - taxable |
258,491 |
|
|
1,392 |
|
|
2.15 |
% |
|
255,846 |
|
|
1,352 |
|
|
2.11 |
% |
|
264,440 |
|
|
1,369 |
|
|
2.07 |
% |
|
Securities - tax-exempt |
85,749 |
|
|
502 |
|
|
2.34 |
% |
|
77,047 |
|
|
448 |
|
|
2.33 |
% |
|
57,014 |
|
|
328 |
|
|
2.30 |
% |
|
Federal funds sold |
36,470 |
|
|
150 |
|
|
1.61 |
% |
|
32,461 |
|
|
178 |
|
|
2.15 |
% |
|
27,414 |
|
|
160 |
|
|
2.28 |
% |
|
Interest-bearing balances due from banks |
45,565 |
|
|
192 |
|
|
1.65 |
% |
|
38,676 |
|
|
213 |
|
|
2.16 |
% |
|
67,139 |
|
|
375 |
|
|
2.19 |
% |
|
Nonmarketable equity securities |
1,346 |
|
|
4 |
|
|
1.19 |
% |
|
1,342 |
|
|
10 |
|
|
2.99 |
% |
|
1,295 |
|
|
4 |
|
|
1.15 |
% |
|
Investment in trusts |
— |
|
|
— |
|
|
— |
% |
|
64 |
|
|
2 |
|
|
10.91 |
% |
|
341 |
|
|
4 |
|
|
5.20 |
% |
|
Total interest-earning assets |
1,856,599 |
|
|
$ |
18,784 |
|
|
3.97 |
% |
|
1,813,582 |
|
|
$ |
18,781 |
|
|
4.06 |
% |
|
1,757,111 |
|
|
$ |
17,680 |
|
|
3.95 |
% |
| Allowance for loan losses |
(13,969 |
) |
|
|
|
|
|
(13,755 |
) |
|
|
|
|
|
(12,397 |
) |
|
|
|
|
| Noninterest earning assets |
112,130 |
|
|
|
|
|
|
110,062 |
|
|
|
|
|
|
90,946 |
|
|
|
|
|
|
Total assets |
$ |
1,954,760 |
|
|
|
|
|
|
$ |
1,909,889 |
|
|
|
|
|
|
$ |
1,835,660 |
|
|
|
|
|
| Liabilities and Stockholders’
Equity |
| Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing transaction deposits |
$ |
747,293 |
|
|
$ |
968 |
|
|
0.51 |
% |
|
$ |
724,219 |
|
|
$ |
972 |
|
|
0.53 |
% |
|
$ |
719,852 |
|
|
$ |
827 |
|
|
0.46 |
% |
|
Time deposits |
334,499 |
|
|
1,473 |
|
|
1.75 |
% |
|
338,330 |
|
|
1,542 |
|
|
1.81 |
% |
|
327,903 |
|
|
1,239 |
|
|
1.50 |
% |
|
Total interest-bearing deposits |
1,081,792 |
|
|
2,441 |
|
|
0.90 |
% |
|
1,062,549 |
|
|
2,514 |
|
|
0.94 |
% |
|
1,047,755 |
|
|
2,066 |
|
|
0.78 |
% |
|
Junior subordinated debentures |
— |
|
|
— |
|
|
— |
% |
|
2,129 |
|
|
73 |
|
|
13.64 |
% |
|
11,341 |
|
|
149 |
|
|
5.20 |
% |
|
Other borrowings |
— |
|
|
— |
|
|
— |
% |
|
22 |
|
|
— |
|
|
2.80 |
% |
|
30 |
|
|
— |
|
|
4.84 |
% |
|
Total interest-bearing liabilities |
1,081,792 |
|
|
$ |
2,441 |
|
|
0.90 |
% |
|
1,064,700 |
|
|
$ |
2,587 |
|
|
0.96 |
% |
|
1,059,126 |
|
|
$ |
2,215 |
|
|
0.83 |
% |
| Noninterest-bearing liabilities: |
|
Noninterest-bearing deposits |
606,329 |
|
|
|
|
|
|
586,664 |
|
|
|
|
|
|
574,298 |
|
|
|
|
|
|
Accrued interest and other liabilities |
17,191 |
|
|
|
|
|
|
16,084 |
|
|
|
|
|
|
11,065 |
|
|
|
|
|
|
Total noninterest-bearing liabilities: |
623,520 |
|
|
|
|
|
|
602,748 |
|
|
|
|
|
|
585,363 |
|
|
|
|
|
| Stockholders’ equity |
249,448 |
|
|
|
|
|
|
242,441 |
|
|
|
|
|
|
191,171 |
|
|
|
|
|
|
Total liabilities and stockholders’ equity |
$ |
1,954,760 |
|
|
|
|
|
|
$ |
1,909,889 |
|
|
|
|
|
|
$ |
1,835,660 |
|
|
|
|
|
| Net interest income |
|
|
$ |
16,343 |
|
|
|
|
|
|
$ |
16,194 |
|
|
|
|
|
|
$ |
15,465 |
|
|
|
| Net interest spread |
|
|
|
|
3.07 |
% |
|
|
|
|
|
3.10 |
% |
|
|
|
|
|
3.12 |
% |
| Net interest margin |
|
|
|
|
3.45 |
% |
|
|
|
|
|
3.50 |
% |
|
|
|
|
|
3.45 |
% |
| Net interest margin
FTE(3) |
|
|
|
|
3.50 |
% |
|
|
|
|
|
3.55 |
% |
|
|
|
|
|
3.50 |
% |
| Cost of deposits |
|
|
|
|
0.57 |
% |
|
|
|
|
|
0.60 |
% |
|
|
|
|
|
0.51 |
% |
| Cost of funds |
|
|
|
|
0.52 |
% |
|
|
|
|
|
0.57 |
% |
|
|
|
|
|
0.50 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) Includes average outstanding balances of
loans held for sale of $4.3 million, $6.0 million, and $2.8 million
for the three months ended December 31, 2019,
September 30, 2019, and December 31, 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 Twelve Months Ended December 31, |
| |
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) |
$ |
1,388,702 |
|
|
$ |
64,570 |
|
|
4.59 |
% |
|
$ |
1,312,078 |
|
|
$ |
58,747 |
|
|
4.42 |
% |
|
Securities - taxable |
257,090 |
|
|
5,466 |
|
|
2.13 |
% |
|
277,337 |
|
|
5,624 |
|
|
2.03 |
% |
|
Securities - tax-exempt |
75,385 |
|
|
1,775 |
|
|
2.35 |
% |
|
57,776 |
|
|
1,327 |
|
|
2.30 |
% |
|
Federal funds sold |
34,637 |
|
|
753 |
|
|
2.14 |
% |
|
17,790 |
|
|
356 |
|
|
1.97 |
% |
|
Interest-bearing balances due from banks |
51,694 |
|
|
1,127 |
|
|
2.15 |
% |
|
40,768 |
|
|
798 |
|
|
1.93 |
% |
|
Nonmarketable equity securities |
1,330 |
|
|
23 |
|
|
1.69 |
% |
|
1,286 |
|
|
18 |
|
|
1.36 |
% |
|
Investment in trusts |
181 |
|
|
11 |
|
|
6.34 |
% |
|
341 |
|
|
16 |
|
|
4.83 |
% |
|
Total interest-earning assets |
1,809,019 |
|
|
$ |
73,725 |
|
|
4.03 |
% |
|
1,707,376 |
|
|
$ |
66,886 |
|
|
3.86 |
% |
| Allowance for loan losses |
(13,444 |
) |
|
|
|
|
|
(11,713 |
) |
|
|
|
|
| Noninterest earning assets |
107,390 |
|
|
|
|
|
|
89,155 |
|
|
|
|
|
|
Total assets |
$ |
1,902,965 |
|
|
|
|
|
|
$ |
1,784,818 |
|
|
|
|
|
| Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing transaction deposits |
$ |
739,554 |
|
|
$ |
3,898 |
|
|
0.53 |
% |
|
$ |
708,818 |
|
|
$ |
2,735 |
|
|
0.39 |
% |
|
Time deposits |
335,024 |
|
|
5,803 |
|
|
1.73 |
% |
|
320,699 |
|
|
4,349 |
|
|
1.36 |
% |
|
Total interest-bearing deposits |
1,074,578 |
|
|
9,701 |
|
|
0.90 |
% |
|
1,029,517 |
|
|
7,084 |
|
|
0.69 |
% |
|
Junior subordinated debentures |
6,017 |
|
|
385 |
|
|
6.39 |
% |
|
11,341 |
|
|
558 |
|
|
4.92 |
% |
|
Other borrowings |
5 |
|
|
— |
|
|
2.80 |
% |
|
191 |
|
|
7 |
|
|
3.66 |
% |
|
Total interest-bearing liabilities |
1,080,600 |
|
|
$ |
10,086 |
|
|
0.93 |
% |
|
1,041,049 |
|
|
$ |
7,649 |
|
|
0.73 |
% |
| Noninterest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits |
577,701 |
|
|
|
|
|
|
545,547 |
|
|
|
|
|
|
Accrued interest and other liabilities |
16,118 |
|
|
|
|
|
|
13,124 |
|
|
|
|
|
|
Total noninterest-bearing liabilities: |
593,819 |
|
|
|
|
|
|
558,671 |
|
|
|
|
|
| Stockholders’ equity |
228,546 |
|
|
|
|
|
|
185,098 |
|
|
|
|
|
|
Total liabilities and stockholders’ equity |
$ |
1,902,965 |
|
|
|
|
|
|
$ |
1,784,818 |
|
|
|
|
|
| Net interest income |
|
|
$ |
63,639 |
|
|
|
|
|
|
$ |
59,237 |
|
|
|
| Net interest spread |
|
|
|
|
3.10 |
% |
|
|
|
|
|
3.13 |
% |
| Net interest margin |
|
|
|
|
3.47 |
% |
|
|
|
|
|
3.42 |
% |
| Net interest margin
FTE(3) |
|
|
|
|
3.52 |
% |
|
|
|
|
|
3.44 |
% |
| Cost of deposits |
|
|
|
|
0.59 |
% |
|
|
|
|
|
0.45 |
% |
| Cost of funds |
|
|
|
|
0.56 |
% |
|
|
|
|
|
0.45 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) Includes average outstanding balances of
loans held for sale of $4.1 million and $2.9 million for the year
ended December 31, 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) |
December 31, 2019 |
|
September 30, 2019 |
|
December 31, 2018 |
| Tangible common equity |
|
|
|
|
|
| Total
stockholders' equity |
$ |
251,898 |
|
|
$ |
245,389 |
|
|
$ |
193,703 |
|
| Adjustments: |
|
|
|
|
|
|
Intangible assets |
(1,546 |
) |
|
(1,546 |
) |
|
(1,546 |
) |
| Total tangible common equity |
$ |
250,352 |
|
|
$ |
243,843 |
|
|
$ |
192,157 |
|
| Common shares outstanding |
7,306,221 |
|
|
7,306,221 |
|
|
6,627,358 |
|
| Book value per common share |
$ |
34.48 |
|
|
$ |
33.59 |
|
|
$ |
29.23 |
|
| Tangible book value per common share |
$ |
34.27 |
|
|
$ |
33.37 |
|
|
$ |
28.99 |
|
| |
|
|
|
|
|
| Tangible assets |
|
|
|
|
|
| Total assets |
$ |
1,988,225 |
|
|
$ |
1,938,854 |
|
|
$ |
1,860,588 |
|
| Adjustments: |
|
|
|
|
|
|
Intangible assets |
(1,546 |
) |
|
(1,546 |
) |
|
(1,546 |
) |
| Total tangible assets |
$ |
1,986,679 |
|
|
$ |
1,937,308 |
|
|
$ |
1,859,042 |
|
| Total stockholder's equity to assets |
12.67 |
% |
|
12.66 |
% |
|
10.41 |
% |
| Tangible common equity to tangible assets |
12.60 |
% |
|
12.59 |
% |
|
10.34 |
% |
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