Red River Bancshares, Inc. (the “Company”), (Nasdaq: RRBI), the
holding company for Red River Bank (the “Bank”), announced today
its unaudited financial results for the third quarter of 2020.
Net income for the third quarter of 2020 was $7.3
million, or $0.99 per diluted common share ("EPS"), an increase of
$431,000, or 6.3%, compared to $6.9 million, or $0.93 EPS, for the
second quarter of 2020, and an increase of $438,000, or 6.4%,
compared to $6.8 million, or $0.93 EPS, for the third quarter of
2019.
Net income for the nine months ended September 30, 2020,
was $20.9 million, or $2.84 EPS, an increase of $2.8 million, or
15.5%, compared to $18.1 million, or $2.57 EPS, for the nine months
ended September 30, 2019.
Third Quarter 2020 Performance and Operational
Highlights
- The third quarter of 2020 included a new Company high level of
mortgage lending activity, approval of a stock repurchase program,
entrance into a new market, and the impact of Hurricane Laura. The
Louisiana COVID-19 pandemic response restrictions transitioned from
Phase Two to Phase Three, easing restrictions and allowing
increased economic activity.
- The quarterly return on assets was 1.20%, and the quarterly
return on equity was 10.50%.
- Assets increased $129.1 million in the third quarter of 2020 to
$2.49 billion as of September 30, 2020, driven by a $124.6 million
increase in deposits. Deposits increased due to strong deposit
account opening activity and a large, temporary deposit, along with
commercial customers maintaining larger deposit balances.
- Mortgage loan production and income in 2020 were at record-high
levels for the Company. Mortgage loan income for the third quarter
of 2020 was $2.9 million, surpassing $1.9 million recorded in the
prior quarter. For the nine months ended September 30, 2020,
mortgage loan income was $5.7 million, which was $3.5 million, or
161.7%, higher than the same period in 2019.
- As of September 30, 2020, active pandemic-related loan
deferrals were $23.3 million, or 1.6% of non-PPP loans held for
investment ("HFI") (non-GAAP), down from $152.8 million, or 10.7%
of non-PPP loans HFI (non-GAAP) as of June 30, 2020.
- Nonperforming assets ("NPA(s)") increased $921,000 and were
$5.2 million, or 0.21% of assets as of September 30, 2020. The
provision for loan losses for the third quarter of 2020 was $1.6
million, compared to $1.5 million for the prior quarter. As of
September 30, 2020, the allowance for loan losses ("ALL") was $16.2
million, or 0.98% of loans HFI and 1.11%(1) of non-PPP loans HFI
(non-GAAP).
- The net interest margin for the third quarter of 2020 was
negatively impacted by the low interest rate environment. The net
interest margin fully tax equivalent ("FTE") for the third quarter
of 2020 was 3.02%, compared to 3.12% for the prior quarter.
- Red River Bank participated in the Small Business
Administration ("SBA") Paycheck Protection Program ("PPP") and as
of September 30, 2020, had $193.5 million of PPP loans, net of
deferred income, at an interest rate of 1.0%. These loans resulted
in $877,000 of origination fees recognized as income in the third
quarter of 2020 and $5.4 million in deferred income as of September
30, 2020. Red River Bank began accepting PPP loan forgiveness
applications on September 14, 2020.
- On August 27, 2020, our board approved a stock repurchase
program that authorizes us to purchase up to $3.0 million of our
outstanding shares through August 27, 2021. In the third quarter of
2020, we repurchased 2,824 shares.
- We declared and paid a quarterly cash dividend of $0.06 per
common share.
- We began operations in our newest market, Acadiana, which
includes the Lafayette, Louisiana metropolitan statistical area. We
hired an Acadiana market president and opened a combined loan and
deposit production office in Lafayette.
- On August 27, 2020, Hurricane Laura made landfall in southwest
Louisiana near Lake Charles and impacted southwest and central
Louisiana. Red River Bank did not sustain any significant damage to
its locations, and our employees remained safe. Our business
continuity planning allowed us to quickly restore banking services
in the impacted areas.
- On October 9, 2020, Hurricane Delta also made landfall in
southwest Louisiana near Lake Charles and continued to move inland
through central Louisiana. Banking locations in the impacted
markets closed as necessary prior to the hurricane's landfall, and
normal banking services were provided the following day. There was
no significant damage to any of Red River Bank's locations as a
result of Hurricane Delta.
Blake Chatelain, President and Chief Executive Officer, stated,
"In the third quarter we kept our focus on helping our customers
through the challenges of 2020. Since the pandemic began in March
2020, our goal has been to be as accessible as possible to our
customers, while also implementing social distancing and other
protective measures to protect employees and customers.
"Despite the continued challenges, we had many achievements
during the third quarter of 2020. The Red River Bank Mortgage
Department had another busy quarter, producing record-high volumes
of mortgage loan activity and income. Also, as Louisiana
transitioned to Phase Three of the state's pandemic response plan
and restrictions on businesses decreased, customer traffic in our
banking centers returned to near pre-pandemic levels. New deposit
account opening activity was strong, and we welcomed new banking
relationships to Red River Bank. As part of our capital management
plan, we approved and implemented a stock repurchase program.
"We are very pleased to expand to Lafayette and to welcome Ben
Smith as our new Acadiana Market President. The Lafayette loan and
deposit production office opened in mid-September 2020, and we are
excited to serve our Acadiana customers with this new location.
"In addition to the pandemic 'storm', Louisiana was hit by two
hurricanes. Hurricane Laura was a powerful hurricane that made
landfall near Lake Charles in southwest Louisiana and moved inland
through central Louisiana, causing significant damage. Fortunately,
none of our locations or employees sustained significant physical
harm. Despite major damage in our Central Louisiana headquarters
area and Lake Charles, our Baton Rouge and Covington markets
provided full banking services on the day Laura hit. Several of our
Central Louisiana banking centers, as well as our Shreveport
centers, opened the day after Laura. Our hardest hit locations in
Lake Charles opened early the following week. Six weeks later
Hurricane Delta made landfall and followed a similar path as Laura.
Thankfully Delta was a weaker storm; however, it disrupted repair
and cleanup efforts in southwest Louisiana. Even though many
employees had personal challenges due to these hurricanes, Red
River Bank operations continued and customers' banking needs were
met. Our bankers remain hard at work daily to help our communities
and customers recover from these hurricanes.
"While 2020 has been full of challenges, the Red River Bank team
recognizes that we are an essential business, and our goal is to
provide uninterrupted banking services to existing and new
customers."
Net Interest Income and Net Interest Margin
FTE
Net interest income and net interest margin FTE for the third
quarter of 2020 continued to be impacted by the lower interest rate
environment stemming from the 150 basis point ("bp(s)") decrease to
the target federal funds rate by the Federal Reserve in the first
quarter of 2020.
Net interest income for the third quarter of 2020 was $17.3
million, which was $339,000, or 2.0%, higher than the second
quarter of 2020, due to a $226,000 increase in interest and
dividend income, combined with a $113,000 decrease in interest
expense. Total interest and fee income on loans was consistent
between the third and second quarters with lower non-PPP loan
income offset by higher PPP loan income. Interest and dividend
income increased primarily due to a $223,000 increase in interest
income for total securities. The increase in interest income for
total securities was due to an $87.9 million growth in average
total securities compared to the previous quarter, partially offset
by a decrease in yield. Due to deposit growth outpacing loan growth
for the third quarter of 2020, excess liquidity was deployed into
securities and interest-bearing deposits in other banks. Interest
expense decreased as a result of our new and renewed time deposits
continuing to price downward in the low interest rate
environment.
The net interest margin FTE decreased ten bps to 3.02% for the
third quarter of 2020, compared to 3.12% for the prior quarter, as
our interest-earning assets continued to price lower from the
effects of the current low interest rate environment. The yield on
loans decreased 17 bps to 4.04% due to the continued impact of the
lower interest rate environment on new, renewed, and floating rate
loans. As of September 30, 2020, floating rate loans were 13.8% of
loans HFI. The yield on taxable securities decreased 27 bps due to
the securities purchased being at lower yields than the existing
yield for the taxable securities portfolio, combined with an
increase in amortization expense on mortgage-backed securities. The
resulting yield on interest-earning assets was 3.30% for the third
quarter of 2020, compared to 3.45% for the second quarter of 2020.
The cost of deposits was 0.37% for the third quarter of 2020,
compared to 0.41% for the prior quarter. The cost of deposits was
lower during the third quarter due to average non-interest bearing
deposits increasing $73.3 million, or 9.0%, combined with a six bp
decrease in the rate on interest-bearing deposits during the same
period as a result of our adjustments to deposit rates.
In the third quarter of 2020, Red River Bank had an average of
$193.0 million of PPP loans, net of deferred income, outstanding at
an interest rate of 1.0%. PPP origination fees totaled $7.0
million, or 3.52%, of originated PPP loans and are being recorded
to interest income over the 24-month loan term or until the loans
are forgiven by the SBA. For the third quarter of 2020, PPP loan
interest and fees totaled $1.4 million, resulting in a 2.84% yield,
compared to $1.2 million in interest and fees and a 2.99% yield for
the prior quarter.
Excluding PPP loan income, net interest income (non-GAAP) for
the third quarter of 2020 was $15.9 million,(1) which was $106,000,
or 0.7%, higher than the second quarter of 2020. Also, with PPP
loans excluded for the third quarter of 2020, the yield on non-PPP
loans (non-GAAP) was 4.20%,(1) and the net interest margin FTE
(non-GAAP) was 3.03%.(1) PPP loans had a 16 bp dilutive impact to
the yield on loans and a one bp dilutive impact to the net interest
margin FTE.
Provision for Loan Losses
The provision for loan losses for the third quarter of 2020 was
$1.6 million which was $65,000 higher than $1.5 million for the
prior quarter, due to expected economic pressures relating to the
continuing COVID-19 pandemic.
Noninterest Income
Noninterest income totaled $6.4 million for the third quarter of
2020, an increase of $597,000, or 10.3%, compared to $5.8 million
for the previous quarter. The increase was mainly due to higher
mortgage loan income, higher service charges on deposit accounts,
and increased brokerage income. These increases were partially
offset by a smaller gain on the sale of securities and lower loan
and deposit income.
Due to the low mortgage interest rate environment in 2020,
mortgage loan production and income have been at record-high
levels. For the third quarter of 2020, mortgage loan production
increased 38.4%, resulting in $2.9 million of mortgage loan income,
an increase of $937,000, or 48.1%, from $1.9 million for the
previous quarter. Also, for the nine months ended September 30,
2020, mortgage loan production increased 135.2%, resulting in $5.7
million of mortgage loan income, an increase of $3.5 million, or
161.7%, from $2.2 million for the same period in 2019.
Service charges on deposit accounts totaled $1.1 million for the
third quarter of 2020, an increase of $337,000, or 46.9%, compared
to the second quarter of 2020. This increase was attributed to
higher customer deposit transaction activity in the third quarter
and approximately $168,000 in reduced deposit fees due to temporary
fee reductions in the second quarter.
Brokerage income for the third quarter of 2020 was $586,000, an
increase of $191,000, or 48.4%, compared to $395,000 in the
previous quarter. The second quarter was impacted by our conversion
to a new Red River Bank investment group broker-dealer partner,
which temporarily reduced brokerage activity and revenue. In the
third quarter of 2020, brokerage activity and revenue returned to
normal levels.
The gain on the sale of securities was $125,000 for the third
quarter of 2020, compared to a gain of $840,000 in the second
quarter. In the third quarter of 2020, selected mortgage-backed
securities were sold, resulting in the $125,000 gain. In the second
quarter of 2020, we executed a portfolio restructuring transaction
in response to the lower interest rate environment, resulting in
the $840,000 gain.
Loan and deposit income totaled $413,000 for the third quarter
of 2020, a decrease of $214,000, or 34.1%, from the prior quarter.
This decrease was primarily related to $230,000 of nonrecurring
commercial real estate loan fees reported in the second quarter of
2020.
Operating Expenses
Operating expenses for the third quarter of 2020 totaled $13.3
million, an increase of $382,000, or 3.0%, compared to $12.9
million for the second quarter of 2020. This increase was mainly
due to higher personnel expenses and occupancy and equipment
expenses, partially offset by a decrease in legal and professional
expenses.
Personnel expenses totaled $8.1 million for the third quarter of
2020, up $431,000, or 5.6%, from the second quarter of 2020. This
increase was primarily due to increased commission compensation
related to higher mortgage loan activity.
Occupancy and equipment expenses for the third quarter of 2020
totaled $1.3 million, an increase of $84,000, or 6.8%, compared to
the second quarter of 2020. This increase was primarily due to the
recent expansion in our Southwest and Acadiana markets, as well as
expenses related to Hurricane Laura.
Legal and professional expenses totaled $487,000 for the third
quarter of 2020, down $118,000, or 19.5%, from the second quarter
of 2020. This decrease was primarily due to higher loan collection,
audit, and compliance expenses in the second quarter of 2020.
Asset Overview
As of September 30, 2020, assets totaled $2.49 billion,
which was $129.1 million, or 5.5%, higher than $2.36 billion as of
June 30, 2020. This increase was primarily due to a $124.6 million
increase in deposits in the third quarter. Because deposit growth
exceeded loan growth, excess funds were deployed into securities
and interest-bearing deposits in other banks. Securities
available-for-sale increased $54.5 million to $467.7 million, and
interest-bearing deposits in other banks increased $29.2 million to
$239.5 million as of September 30, 2020. The loans HFI to deposits
ratio was 75.17% as of September 30, 2020, compared to 78.06%
as of June 30, 2020.
Assets excluding PPP loans, net of deferred income (non-GAAP) as
of September 30, 2020, totaled $2.30 billion(1) which was
$128.2 million, or 5.9%, higher than $2.17 billion(1) as of June
30, 2020. The non-PPP loans HFI to deposits ratio (non-GAAP) was
66.35%(1) as of September 30, 2020, compared to 68.75%(1) as of
June 30, 2020.
Loans
Loans HFI as of September 30, 2020, were $1.65 billion, an
increase of $34.0 million, or 2.1%, from June 30, 2020. As of
September 30, 2020, PPP loans totaled $193.5 million, net of
$5.4 million in deferred income, and were 11.7% of loans HFI. As of
September 30, 2020, non-PPP loans were $1.46 billion,(1) an
increase of $33.1 million, or 2.3%, from June 30, 2020. The
increase in both loans HFI and non-PPP loans HFI was attributable
to new loan activity in our newer markets.
In the second quarter of 2020, Red River Bank originated 1,384
PPP loans totaling $199.0 million, with an average loan size of
$144,000. We began accepting PPP loan forgiveness applications on
September 14, 2020, and as of September 30, 2020, 20.6% of our
PPP loan customers had submitted forgiveness applications.
On October 8, 2020, the SBA and U.S. Treasury authorized a
streamlined loan forgiveness application process for PPP loans of
$50,000 or less. Approximately 54% of our PPP loan accounts may be
eligible for the streamlined process. As of October 20, 2020, we
had received forgiveness applications from 28.1% of our PPP loan
customers.
During the first quarter and continuing into the second quarter
of 2020, we granted 90-day loan payment deferments for requesting
borrowers impacted by pandemic-related economic shutdowns. Through
June 30, 2020, loan payment deferments on 554 loans totaling $272.2
million were granted.
As of September 30, 2020, $23.3 million, or 1.6% of
non-PPP loans HFI (non-GAAP), remained on active deferral and were
deferrals of principal payments only. Active deferrals included
approved second 90-day deferrals of $22.4 million. As of October
20, 2020, $14.9 million, or 1.0% of non-PPP loans HFI (non-GAAP),
remained on active deferral and included $14.0 million of approved
second 90-day deferrals.
We have identified certain sectors within our portfolio that we
believe have a heightened overall level of risk due to
pandemic-related macro-economic conditions. The following table
shows non-PPP loans HFI (non-GAAP) in these sectors:
|
September 30, 2020 |
|
Loans |
|
Loans with Active COVID-19 Payment Deferment |
(dollars in thousands) |
Amount |
|
Percent ofNon-PPPLoans HFI(non-GAAP) |
|
Amount |
|
Percent ofNon-PPPLoans HFI(non-GAAP) |
Hospitality services: |
|
|
|
|
|
|
|
Hotels and other overnight lodging |
$ |
25,287 |
|
|
1.7 |
% |
|
$ |
15,539 |
|
|
1.1 |
% |
Restaurants - full service |
10,594 |
|
|
0.7 |
% |
|
1,340 |
|
|
0.1 |
% |
Restaurants - limited service |
12,508 |
|
|
0.9 |
% |
|
— |
|
|
— |
% |
Other |
5,560 |
|
|
0.4 |
% |
|
— |
|
|
— |
% |
Total hospitality
services |
$ |
53,949 |
|
|
3.7 |
% |
|
$ |
16,879 |
|
|
1.2 |
% |
|
|
|
|
|
|
|
|
Retail trade: |
|
|
|
|
|
|
|
Automobile dealers |
$ |
36,096 |
|
|
2.5 |
% |
|
$ |
— |
|
|
— |
% |
Other retail |
21,345 |
|
|
1.5 |
% |
|
— |
|
|
— |
% |
Total retail trade |
$ |
57,441 |
|
|
4.0 |
% |
|
$ |
— |
|
|
— |
% |
|
|
|
|
|
|
|
|
Energy |
$ |
26,767 |
|
|
1.8 |
% |
|
$ |
— |
|
|
— |
% |
The following table shows non-PPP loans HFI (non-GAAP) in other
non-industry specific areas that we believe may be affected by the
pandemic:
|
September 30, 2020 |
(dollars in thousands) |
Amount |
|
Percent ofNon-PPPLoans HFI(non-GAAP) |
Loans collateralized by non-owner occupied properties leased to
retail establishments |
$ |
43,914 |
|
|
3.0 |
% |
|
|
|
|
Credit card loans: |
|
|
|
Commercial |
$ |
1,461 |
|
|
0.1 |
% |
Consumer |
875 |
|
|
0.1 |
% |
Total credit card loans |
$ |
2,336 |
|
|
0.2 |
% |
Our health care loans are made up of a diversified portfolio of
health care providers. As of September 30, 2020, health care
credits were 10.0% of non-PPP loans HFI (non-GAAP), with nursing
and residential care loans and loans to physician and dental
practices of 4.1% and 5.7%, of non-PPP loans HFI (non-GAAP),
respectively. The average loan size was $322,000. Health care
deferral requests were minimal, and as of September 30, 2020,
there were no health care credits with active deferrals.
Asset Quality and Allowance for Loan Losses
NPAs totaled $5.2 million as of September 30, 2020, an
increase of $921,000, or 21.4%, from June 30, 2020, primarily due
to additional loans placed on nonaccrual status in the third
quarter. The ratio of NPAs to total assets increased to 0.21% as of
September 30, 2020, from 0.18% as of June 30, 2020.
As of September 30, 2020, the ALL was $16.2 million. The
ratio of ALL to loans HFI was 0.98% as of September 30, 2020,
and 0.92% as of June 30, 2020. The ratio of ALL to non-PPP loans
HFI (non-GAAP) was 1.11%(1) as of September 30, 2020, and
1.05%(1) as of June 30, 2020.
The net charge-off ratio was 0.02% for the third quarter of 2020
and 0.06% for the second quarter of 2020. Due to economic
uncertainties related to the pandemic shutdowns and future risks
associated with the continuing COVID-19 pandemic, we are closely
monitoring asset quality and will adjust the provision for loan
losses as needed in the fourth quarter of 2020.
Deposits
Deposits as of September 30, 2020, were $2.19 billion, an
increase of $124.6 million, or 6.0%, compared to June 30, 2020.
Average deposits for the third quarter of 2020 were $2.11 billion,
an increase of $123.7 million, or 6.2%, from the prior quarter.
This increase was due to strong deposit account opening activity
and a large, temporary deposit, along with commercial customers
maintaining larger deposit balances.
Noninterest-bearing deposits totaled $923.3 million as of
September 30, 2020, up $64.9 million, or 7.6%, from June 30,
2020. As of September 30, 2020, noninterest-bearing deposits
were 42.08% of total deposits.
Interest-bearing deposits totaled $1.27 billion as of September
30, 2020, up $59.7 million, or 4.9%, compared to June 30, 2020.
Stockholders’ Equity
Total stockholders’ equity increased to $278.1 million as of
September 30, 2020, from $271.1 million as of June 30, 2020.
The $7.0 million increase in stockholders’ equity during the third
quarter of 2020 was attributable to $7.3 million of net income, a
$180,000, net of tax, market adjustment to accumulated other
comprehensive income related to securities available-for-sale, and
$58,000 of stock compensation, partially offset by $440,000 in cash
dividends and the repurchase of 2,824 shares for $122,000. We paid
our third quarterly cash dividend of $0.06 per share on September
24, 2020.
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 Securities 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.
Management and the board of directors review tangible book value
per share, tangible common equity to tangible assets, and
PPP-adjusted metrics 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.
(1) Non-GAAP financial measure. Calculations of this measure and
reconciliations to GAAP are included in the schedules accompanying
this release
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 25 banking centers throughout Louisiana
and one combined loan and deposit production office in Lafayette,
Louisiana. Banking centers are located in the following Louisiana
markets: Central, which includes the Alexandria metropolitan
statistical area ("MSA"); Northwest, which includes the
Shreveport-Bossier City MSA; Capital, which includes the Baton
Rouge MSA; Southwest, 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 most recent Annual Report on
Form 10-K and any subsequent quarterly reports on Form 10-Q, 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) |
|
September 30, 2020 |
|
June 30, 2020 |
|
September 30, 2019 |
|
September 30, 2020 |
|
September 30, 2019 |
|
|
|
|
|
|
|
|
|
|
|
Net
Income |
|
$ |
7,285 |
|
$ |
6,854 |
|
$ |
6,847 |
|
$ |
20,884 |
|
$ |
18,081 |
|
|
|
|
|
|
|
|
|
|
|
Per Common Share Data: |
|
|
|
|
|
|
|
|
|
|
Earnings per share, basic |
|
$ |
0.99 |
|
$ |
0.94 |
|
$ |
0.94 |
|
$ |
2.85 |
|
$ |
2.59 |
Earnings per share, diluted |
|
$ |
0.99 |
|
$ |
0.93 |
|
$ |
0.93 |
|
$ |
2.84 |
|
$ |
2.57 |
Book value per share |
|
$ |
37.96 |
|
$ |
37.03 |
|
$ |
33.59 |
|
$ |
37.96 |
|
$ |
33.59 |
Tangible book value per share(1) |
|
$ |
37.75 |
|
$ |
36.81 |
|
$ |
33.37 |
|
$ |
37.75 |
|
$ |
33.37 |
Cash dividends per share |
|
$ |
0.06 |
|
$ |
0.06 |
|
$ |
— |
|
$ |
0.18 |
|
$ |
0.20 |
Shares outstanding |
|
7,325,333 |
|
7,322,532 |
|
7,306,221 |
|
7,325,333 |
|
7,306,221 |
Weighted average shares outstanding, basic |
|
7,327,395 |
|
7,322,532 |
|
7,304,273 |
|
7,321,092 |
|
6,993,990 |
Weighted average shares outstanding, diluted |
|
7,342,678 |
|
7,348,772 |
|
7,340,498 |
|
7,341,747 |
|
7,032,059 |
|
|
|
|
|
|
|
|
|
|
|
Summary Performance Ratios: |
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
1.20 % |
|
1.20 % |
|
1.42 % |
|
1.25 % |
|
1.28 % |
Return on average equity |
|
10.50 % |
|
10.30 % |
|
11.20 % |
|
10.44 % |
|
10.91 % |
Net interest margin |
|
2.96 % |
|
3.07 % |
|
3.50 % |
|
3.11 % |
|
3.48 % |
Net interest margin FTE |
|
3.02 % |
|
3.12 % |
|
3.55 % |
|
3.17 % |
|
3.53 % |
Efficiency ratio |
|
55.88 % |
|
56.50 % |
|
57.75 % |
|
56.56 % |
|
60.00 % |
Loans HFI to deposits ratio |
|
75.17 % |
|
78.06 % |
|
84.27 % |
|
75.17 % |
|
84.27 % |
Noninterest-bearing deposits to deposits ratio |
|
42.08 % |
|
41.48 % |
|
36.68 % |
|
42.08 % |
|
36.68 % |
Noninterest income to average assets |
|
1.06 % |
|
1.02 % |
|
0.91 % |
|
1.01 % |
|
0.84 % |
Operating expense to average assets |
|
2.19 % |
|
2.26 % |
|
2.47 % |
|
2.28 % |
|
2.51 % |
|
|
|
|
|
|
|
|
|
|
|
Summary Credit Quality Ratios: |
|
|
|
|
|
|
|
|
|
|
Nonperforming assets to total assets |
|
0.21 % |
|
0.18 % |
|
0.41 % |
|
0.21 % |
|
0.41 % |
Nonperforming loans to loans HFI |
|
0.27 % |
|
0.21 % |
|
0.47 % |
|
0.27 % |
|
0.47 % |
Allowance for loan losses to loans HFI |
|
0.98 % |
|
0.92 % |
|
0.98 % |
|
0.98 % |
|
0.98 % |
Net charge-offs to average loans |
|
0.02 % |
|
0.06 % |
|
0.00 % |
|
0.09 % |
|
0.00 % |
|
|
|
|
|
|
|
|
|
|
|
Capital Ratios: |
|
|
|
|
|
|
|
|
|
|
Total stockholders' equity to total assets |
|
11.16 % |
|
11.48 % |
|
12.66 % |
|
11.16 % |
|
12.66 % |
Tangible common equity to tangible assets(1) |
|
11.11 % |
|
11.42 % |
|
12.59 % |
|
11.11 % |
|
12.59 % |
Total risk-based capital to risk-weighted assets |
|
18.17 % |
|
18.22 % |
|
17.76 % |
|
18.17 % |
|
17.76 % |
Tier 1 risk-based capital to risk-weighted assets |
|
17.15 % |
|
17.25 % |
|
16.80 % |
|
17.15 % |
|
16.80 % |
Common equity Tier 1 capital to risk-weighted assets |
|
17.15 % |
|
17.25 % |
|
16.80 % |
|
17.15 % |
|
16.80 % |
Tier 1 risk-based capital to average assets |
|
11.26 % |
|
11.52 % |
|
12.77 % |
|
11.26 % |
|
12.77 % |
(1) Non-GAAP financial measure.
Calculations of this measure and reconciliations to GAAP are
included in the schedules accompanying this release.
RED RIVER
BANCSHARES, INC. |
CONSOLIDATED
BALANCE SHEETS |
|
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Audited) |
|
(Unaudited) |
(in thousands) |
September 30, 2020 |
|
June 30, 2020 |
|
March 31, 2020 |
|
December 31, 2019 |
|
September 30, 2019 |
ASSETS |
|
|
|
|
|
|
|
|
|
Cash and due from banks |
$ |
31,422 |
|
|
$ |
31,097 |
|
|
$ |
31,858 |
|
|
$ |
25,937 |
|
|
$ |
32,724 |
|
Interest-bearing deposits in other banks |
239,466 |
|
|
210,254 |
|
|
48,605 |
|
|
107,355 |
|
|
73,598 |
|
Securities available-for-sale |
467,744 |
|
|
413,246 |
|
|
401,944 |
|
|
335,573 |
|
|
341,900 |
|
Equity securities |
4,032 |
|
|
4,032 |
|
|
3,998 |
|
|
3,936 |
|
|
3,954 |
|
Nonmarketable equity securities |
3,445 |
|
|
3,441 |
|
|
1,354 |
|
|
1,350 |
|
|
1,347 |
|
Loans held for sale |
23,358 |
|
|
14,578 |
|
|
6,597 |
|
|
5,089 |
|
|
4,113 |
|
Loans held for investment |
1,649,272 |
|
|
1,615,298 |
|
|
1,447,362 |
|
|
1,438,924 |
|
|
1,413,162 |
|
Allowance for loan losses |
(16,192 |
) |
|
(14,882 |
) |
|
(14,393 |
) |
|
(13,937 |
) |
|
(13,906 |
) |
Premises and equipment, net |
44,501 |
|
|
41,465 |
|
|
41,711 |
|
|
41,744 |
|
|
39,828 |
|
Accrued interest receivable |
6,617 |
|
|
6,492 |
|
|
5,240 |
|
|
5,251 |
|
|
4,928 |
|
Bank-owned life insurance |
22,270 |
|
|
22,131 |
|
|
21,987 |
|
|
21,845 |
|
|
21,707 |
|
Intangible assets |
1,546 |
|
|
1,546 |
|
|
1,546 |
|
|
1,546 |
|
|
1,546 |
|
Right-of-use assets |
4,255 |
|
|
4,355 |
|
|
4,454 |
|
|
4,553 |
|
|
4,651 |
|
Other assets |
9,192 |
|
|
8,813 |
|
|
8,438 |
|
|
9,059 |
|
|
9,302 |
|
Total Assets |
$ |
2,490,928 |
|
|
$ |
2,361,866 |
|
|
$ |
2,010,701 |
|
|
$ |
1,988,225 |
|
|
$ |
1,938,854 |
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits |
$ |
923,286 |
|
|
$ |
858,397 |
|
|
$ |
607,322 |
|
|
$ |
584,915 |
|
|
$ |
615,051 |
|
Interest-bearing deposits |
1,270,654 |
|
|
1,210,925 |
|
|
1,120,460 |
|
|
1,136,205 |
|
|
1,061,800 |
|
Total Deposits |
2,193,940 |
|
|
2,069,322 |
|
|
1,727,782 |
|
|
1,721,120 |
|
|
1,676,851 |
|
Accrued interest payable |
1,805 |
|
|
1,994 |
|
|
2,307 |
|
|
2,222 |
|
|
1,925 |
|
Lease liabilities |
4,327 |
|
|
4,419 |
|
|
4,511 |
|
|
4,603 |
|
|
4,688 |
|
Accrued expenses and other liabilities |
12,778 |
|
|
15,014 |
|
|
11,926 |
|
|
8,382 |
|
|
10,001 |
|
Total Liabilities |
2,212,850 |
|
|
2,090,749 |
|
|
1,746,526 |
|
|
1,736,327 |
|
|
1,693,465 |
|
COMMITMENTS AND CONTINGENCIES |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
Preferred stock, no par value |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Common stock, no par value |
68,055 |
|
|
68,177 |
|
|
68,177 |
|
|
68,082 |
|
|
68,082 |
|
Additional paid-in capital |
1,487 |
|
|
1,429 |
|
|
1,333 |
|
|
1,269 |
|
|
1,205 |
|
Retained earnings |
202,136 |
|
|
195,291 |
|
|
188,877 |
|
|
182,571 |
|
|
175,828 |
|
Accumulated other comprehensive income (loss) |
6,400 |
|
|
6,220 |
|
|
5,788 |
|
|
(24 |
) |
|
274 |
|
Total Stockholders' Equity |
278,078 |
|
|
271,117 |
|
|
264,175 |
|
|
251,898 |
|
|
245,389 |
|
Total Liabilities and Stockholders' Equity |
$ |
2,490,928 |
|
|
$ |
2,361,866 |
|
|
$ |
2,010,701 |
|
|
$ |
1,988,225 |
|
|
$ |
1,938,854 |
|
RED RIVER
BANCSHARES, INC. |
|
CONSOLIDATED
STATEMENTS OF INCOME (UNAUDITED) |
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
For the Nine Months Ended |
|
(in thousands) |
September 30, 2020 |
|
June 30, 2020 |
|
September 30, 2019 |
|
September 30, 2020 |
|
September 30, 2019 |
|
|
INTEREST AND DIVIDEND INCOME |
|
|
|
|
|
|
|
|
|
|
Interest and fees on loans |
$ |
17,080 |
|
|
$ |
17,076 |
|
|
$ |
16,578 |
|
|
$ |
50,623 |
|
|
$ |
48,026 |
|
|
Interest on securities |
2,099 |
|
|
1,876 |
|
|
1,800 |
|
|
5,766 |
|
|
5,347 |
|
|
Interest on federal funds sold |
30 |
|
|
37 |
|
|
178 |
|
|
179 |
|
|
603 |
|
|
Interest on deposits in other banks |
27 |
|
|
32 |
|
|
213 |
|
|
265 |
|
|
935 |
|
|
Dividends on stock |
13 |
|
|
2 |
|
|
12 |
|
|
19 |
|
|
30 |
|
|
Total Interest and Dividend Income |
19,249 |
|
|
19,023 |
|
|
18,781 |
|
|
56,852 |
|
|
54,941 |
|
|
INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|
Interest on deposits |
1,954 |
|
|
2,051 |
|
|
2,514 |
|
|
6,497 |
|
|
7,260 |
|
|
Interest on other borrowed funds |
— |
|
|
16 |
|
|
— |
|
|
16 |
|
|
— |
|
|
Interest on junior subordinated debentures |
— |
|
|
— |
|
|
73 |
|
|
— |
|
|
385 |
|
|
Total Interest Expense |
1,954 |
|
|
2,067 |
|
|
2,587 |
|
|
6,513 |
|
|
7,645 |
|
|
Net Interest
Income |
17,295 |
|
|
16,956 |
|
|
16,194 |
|
|
50,339 |
|
|
47,296 |
|
|
Provision for loan losses |
1,590 |
|
|
1,525 |
|
|
378 |
|
|
3,618 |
|
|
1,432 |
|
|
Net Interest Income
After Provision for Loan Losses |
15,705 |
|
|
15,431 |
|
|
15,816 |
|
|
46,721 |
|
|
45,864 |
|
|
NONINTEREST INCOME |
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts |
1,055 |
|
|
718 |
|
|
1,195 |
|
|
3,001 |
|
|
3,304 |
|
|
Debit card income, net |
978 |
|
|
896 |
|
|
833 |
|
|
2,629 |
|
|
2,314 |
|
|
Mortgage loan income |
2,884 |
|
|
1,947 |
|
|
1,014 |
|
|
5,720 |
|
|
2,186 |
|
|
Brokerage income |
586 |
|
|
395 |
|
|
561 |
|
|
1,725 |
|
|
1,552 |
|
|
Loan and deposit income |
413 |
|
|
627 |
|
|
404 |
|
|
1,340 |
|
|
1,131 |
|
|
Bank-owned life insurance income |
139 |
|
|
144 |
|
|
137 |
|
|
425 |
|
|
407 |
|
|
Gain (Loss) on equity securities |
— |
|
|
33 |
|
|
30 |
|
|
96 |
|
|
133 |
|
|
Gain (Loss) on sale of securities |
125 |
|
|
840 |
|
|
5 |
|
|
1,348 |
|
|
5 |
|
|
SBIC income |
200 |
|
|
190 |
|
|
139 |
|
|
568 |
|
|
634 |
|
|
Other income (loss) |
40 |
|
|
33 |
|
|
68 |
|
|
122 |
|
|
115 |
|
|
Total Noninterest Income |
6,420 |
|
|
5,823 |
|
|
4,386 |
|
|
16,974 |
|
|
11,781 |
|
|
OPERATING EXPENSES |
|
|
|
|
|
|
|
|
|
|
Personnel expenses |
8,077 |
|
|
7,646 |
|
|
7,007 |
|
|
23,072 |
|
|
20,652 |
|
|
Occupancy and equipment expenses |
1,319 |
|
|
1,235 |
|
|
1,199 |
|
|
3,739 |
|
|
3,708 |
|
|
Technology expenses |
661 |
|
|
615 |
|
|
595 |
|
|
1,863 |
|
|
1,697 |
|
|
Advertising |
240 |
|
|
215 |
|
|
216 |
|
|
717 |
|
|
821 |
|
|
Other business development expenses |
233 |
|
|
256 |
|
|
266 |
|
|
782 |
|
|
827 |
|
|
Data processing expense |
491 |
|
|
471 |
|
|
479 |
|
|
1,412 |
|
|
1,420 |
|
|
Other taxes |
433 |
|
|
438 |
|
|
425 |
|
|
1,308 |
|
|
1,234 |
|
|
Loan and deposit expenses |
289 |
|
|
273 |
|
|
285 |
|
|
808 |
|
|
901 |
|
|
Legal and professional expenses |
487 |
|
|
605 |
|
|
436 |
|
|
1,587 |
|
|
1,138 |
|
|
Regulatory assessment expenses |
172 |
|
|
139 |
|
|
37 |
|
|
337 |
|
|
312 |
|
|
Other operating expenses |
849 |
|
|
976 |
|
|
940 |
|
|
2,445 |
|
|
2,737 |
|
|
Total Operating Expenses |
13,251 |
|
|
12,869 |
|
|
11,885 |
|
|
38,070 |
|
|
35,447 |
|
|
Income Before Income
Tax Expense |
8,874 |
|
|
8,385 |
|
|
8,317 |
|
|
25,625 |
|
|
22,198 |
|
|
Income tax expense |
1,589 |
|
|
1,531 |
|
|
1,470 |
|
|
4,741 |
|
|
4,117 |
|
|
Net
Income |
$ |
7,285 |
|
|
$ |
6,854 |
|
|
$ |
6,847 |
|
|
$ |
20,884 |
|
|
$ |
18,081 |
|
|
RED RIVER
BANCSHARES, INC. |
NET INTEREST
INCOME AND NET INTEREST MARGIN (UNAUDITED) |
|
|
For the Three Months Ended |
|
September 30, 2020 |
|
June 30, 2020 |
|
September 30, 2019 |
(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) |
$ |
1,656,586 |
|
|
$ |
17,080 |
|
4.04 |
% |
|
$ |
1,606,436 |
|
|
$ |
17,076 |
|
4.21 |
% |
|
$ |
1,408,146 |
|
|
$ |
16,578 |
|
4.61 |
% |
Securities - taxable |
317,612 |
|
|
1,240 |
|
1.56 |
% |
|
266,139 |
|
|
1,217 |
|
1.83 |
% |
|
255,846 |
|
|
1,352 |
|
2.11 |
% |
Securities - tax-exempt |
146,477 |
|
|
859 |
|
2.35 |
% |
|
110,026 |
|
|
659 |
|
2.39 |
% |
|
77,047 |
|
|
448 |
|
2.33 |
% |
Federal funds sold |
73,644 |
|
|
30 |
|
0.16 |
% |
|
81,253 |
|
|
37 |
|
0.18 |
% |
|
32,461 |
|
|
178 |
|
2.15 |
% |
Interest-bearing balances due from banks |
97,687 |
|
|
27 |
|
0.11 |
% |
|
118,090 |
|
|
32 |
|
0.11 |
% |
|
38,676 |
|
|
213 |
|
2.16 |
% |
Nonmarketable equity securities |
3,441 |
|
|
13 |
|
1.51 |
% |
|
3,116 |
|
|
2 |
|
0.31 |
% |
|
1,342 |
|
|
10 |
|
2.99 |
% |
Investment in trusts |
— |
|
|
— |
|
— |
% |
|
— |
|
|
— |
|
— |
% |
|
64 |
|
|
2 |
|
10.91 |
% |
Total interest-earning assets |
2,295,447 |
|
|
$ |
19,249 |
|
3.30 |
% |
|
2,185,060 |
|
|
$ |
19,023 |
|
3.45 |
% |
|
1,813,582 |
|
|
$ |
18,781 |
|
4.06 |
% |
Allowance for loan losses |
(15,525 |
) |
|
|
|
|
|
(14,494 |
) |
|
|
|
|
|
(13,755 |
) |
|
|
|
|
Noninterest earning
assets |
128,910 |
|
|
|
|
|
|
124,625 |
|
|
|
|
|
|
110,062 |
|
|
|
|
|
Total assets |
$ |
2,408,832 |
|
|
|
|
|
|
$ |
2,295,191 |
|
|
|
|
|
|
$ |
1,909,889 |
|
|
|
|
|
Liabilities and Stockholders’ Equity |
Interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing transaction deposits |
$ |
891,840 |
|
|
$ |
617 |
|
0.28 |
% |
|
$ |
838,802 |
|
|
$ |
611 |
|
0.29 |
% |
|
$ |
724,219 |
|
|
$ |
972 |
|
0.53 |
% |
Time deposits |
330,576 |
|
|
1,337 |
|
1.61 |
% |
|
333,285 |
|
|
1,440 |
|
1.74 |
% |
|
338,330 |
|
|
1,542 |
|
1.81 |
% |
Total interest-bearing deposits |
1,222,416 |
|
|
1,954 |
|
0.64 |
% |
|
1,172,087 |
|
|
2,051 |
|
0.70 |
% |
|
1,062,549 |
|
|
2,514 |
|
0.94 |
% |
Junior subordinated debentures |
— |
|
|
— |
|
— |
% |
|
— |
|
|
— |
|
— |
% |
|
2,129 |
|
|
73 |
|
13.64 |
% |
Other borrowings |
— |
|
|
— |
|
— |
% |
|
18,681 |
|
|
16 |
|
0.35 |
% |
|
22 |
|
|
— |
|
2.80 |
% |
Total interest-bearing liabilities |
1,222,416 |
|
|
$ |
1,954 |
|
0.64 |
% |
|
1,190,768 |
|
|
$ |
2,067 |
|
0.70 |
% |
|
1,064,700 |
|
|
$ |
2,587 |
|
0.96 |
% |
Noninterest-bearing liabilities: |
Noninterest-bearing deposits |
891,850 |
|
|
|
|
|
|
818,528 |
|
|
|
|
|
|
586,664 |
|
|
|
|
|
Accrued interest and other liabilities |
18,541 |
|
|
|
|
|
|
18,155 |
|
|
|
|
|
|
16,084 |
|
|
|
|
|
Total noninterest-bearing liabilities |
910,391 |
|
|
|
|
|
|
836,683 |
|
|
|
|
|
|
602,748 |
|
|
|
|
|
Stockholders’ equity |
276,025 |
|
|
|
|
|
|
267,740 |
|
|
|
|
|
|
242,441 |
|
|
|
|
|
Total liabilities and stockholders’ equity |
$ |
2,408,832 |
|
|
|
|
|
|
$ |
2,295,191 |
|
|
|
|
|
|
$ |
1,909,889 |
|
|
|
|
|
Net interest income |
|
|
$ |
17,295 |
|
|
|
|
|
$ |
16,956 |
|
|
|
|
|
$ |
16,194 |
|
|
Net interest spread |
|
|
|
|
2.66 |
% |
|
|
|
|
|
2.75 |
% |
|
|
|
|
|
3.10 |
% |
Net interest margin |
|
|
|
|
2.96 |
% |
|
|
|
|
|
3.07 |
% |
|
|
|
|
|
3.50 |
% |
Net interest margin
FTE(3) |
|
|
|
|
3.02 |
% |
|
|
|
|
|
3.12 |
% |
|
|
|
|
|
3.55 |
% |
Cost of deposits |
|
|
|
|
0.37 |
% |
|
|
|
|
|
0.41 |
% |
|
|
|
|
|
0.60 |
% |
Cost of funds |
|
|
|
|
0.34 |
% |
|
|
|
|
|
0.38 |
% |
|
|
|
|
|
0.57 |
% |
(1) |
Includes average outstanding balances of loans held for sale of
$24.4 million, $11.2 million, and $6.0 million for the three months
ended September 30, 2020, June 30, 2020, and September
30, 2019, 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. |
LOAN
INTEREST INCOME AND NET INTEREST RATIOS EXCLUDING PPP LOANS
(NON-GAAP) (UNAUDITED) |
|
The following table
presents interest income for total loans, PPP loans, and total
non-PPP loans (non-GAAP), as well as net interest ratios excluding
PPP loans (non-GAAP) for the three months ended September 30,
2020, June 30, 2020, and September 30, 2019. |
|
|
|
For the Three Months Ended |
|
September 30, 2020 |
|
June 30, 2020 |
|
September 30, 2019 |
(dollars in thousands) |
Average Balance
Outstanding |
|
Interest/Fees Earned |
|
Average Yield |
|
Average Balance
Outstanding |
|
Interest/Fees Earned |
|
Average Yield |
|
Average Balance
Outstanding |
|
Interest/Fees Earned |
|
Average Yield |
Loans(1,2) |
$ |
1,656,586 |
|
$ |
17,080 |
|
4.04 |
% |
|
$ |
1,606,436 |
|
$ |
17,076 |
|
4.21 |
% |
|
$ |
1,408,146 |
|
$ |
16,578 |
|
4.61 |
% |
Less: PPP loans, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average |
193,038 |
|
|
|
|
|
154,400 |
|
|
|
|
|
— |
|
|
|
|
Interest |
|
|
509 |
|
|
|
|
|
423 |
|
|
|
|
|
— |
|
|
Fees |
|
|
877 |
|
|
|
|
|
730 |
|
|
|
|
|
— |
|
|
Total PPP loans, net |
193,038 |
|
1,386 |
|
2.84 |
% |
|
154,400 |
|
1,153 |
|
2.99 |
% |
|
— |
|
— |
|
— |
% |
Non-PPP loans (non-GAAP)(4) |
$ |
1,463,548 |
|
$ |
15,694 |
|
4.20 |
% |
|
$ |
1,452,036 |
|
$ |
15,923 |
|
4.34 |
% |
|
$ |
1,408,146 |
|
$ |
16,578 |
|
4.61 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios excluding
PPP loans, net (non-GAAP)(4) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest spread |
|
|
|
|
2.70 |
% |
|
|
|
|
|
2.79 |
% |
|
|
|
|
|
3.10 |
% |
Net interest margin |
|
|
|
|
2.97 |
% |
|
|
|
|
|
3.08 |
% |
|
|
|
|
|
3.50 |
% |
Net interest margin FTE(3) |
|
|
|
3.03 |
% |
|
|
|
|
|
3.13 |
% |
|
|
|
|
|
3.55 |
% |
(1) |
Includes average outstanding balances of loans held for sale of
$24.4 million, $11.2 million, and $6.0 million for the three months
ended September 30, 2020, June 30, 2020, and September
30, 2019, 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. |
(4) |
Non-GAAP financial measure. |
RED RIVER
BANCSHARES, INC. |
NET INTEREST
INCOME AND NET INTEREST MARGIN (UNAUDITED) |
|
|
For the Nine Months Ended
September 30, |
|
2020 |
|
2019 |
(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) |
$ |
1,571,318 |
|
|
$ |
50,623 |
|
4.24 |
% |
|
$ |
1,375,129 |
|
|
$ |
48,026 |
|
4.61 |
% |
Securities - taxable |
282,186 |
|
|
3,725 |
|
1.76 |
% |
|
256,618 |
|
|
4,074 |
|
2.12 |
% |
Securities - tax-exempt |
114,581 |
|
|
2,041 |
|
2.38 |
% |
|
71,892 |
|
|
1,273 |
|
2.36 |
% |
Federal funds sold |
63,015 |
|
|
179 |
|
0.37 |
% |
|
34,019 |
|
|
603 |
|
2.34 |
% |
Interest-bearing balances due from banks |
91,866 |
|
|
265 |
|
0.38 |
% |
|
53,759 |
|
|
935 |
|
2.30 |
% |
Nonmarketable equity securities |
2,639 |
|
|
19 |
|
0.96 |
% |
|
1,325 |
|
|
19 |
|
1.86 |
% |
Investment in trusts |
— |
|
|
— |
|
— |
% |
|
242 |
|
|
11 |
|
6.23 |
% |
Total interest-earning assets |
2,125,605 |
|
|
$ |
56,852 |
|
3.52 |
% |
|
1,792,984 |
|
|
$ |
54,941 |
|
4.05 |
% |
Allowance for loan losses |
(14,702 |
) |
|
|
|
|
|
(13,267 |
) |
|
|
|
|
Noninterest earning
assets |
122,948 |
|
|
|
|
|
|
105,793 |
|
|
|
|
|
Total assets |
$ |
2,233,851 |
|
|
|
|
|
|
$ |
1,885,510 |
|
|
|
|
|
Liabilities and
Stockholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing transaction deposits |
$ |
842,193 |
|
|
$ |
2,214 |
|
0.35 |
% |
|
$ |
736,947 |
|
|
$ |
2,930 |
|
0.53 |
% |
Time deposits |
333,154 |
|
|
4,283 |
|
1.72 |
% |
|
335,201 |
|
|
4,330 |
|
1.73 |
% |
Total interest-bearing deposits |
1,175,347 |
|
|
6,497 |
|
0.74 |
% |
|
1,072,148 |
|
|
7,260 |
|
0.91 |
% |
Junior subordinated debentures |
— |
|
|
— |
|
— |
% |
|
8,044 |
|
|
385 |
|
6.39 |
% |
Other borrowings |
6,231 |
|
|
16 |
|
0.35 |
% |
|
7 |
|
|
— |
|
2.80 |
% |
Total interest-bearing liabilities |
1,181,578 |
|
|
$ |
6,513 |
|
0.74 |
% |
|
1,080,199 |
|
|
$ |
7,645 |
|
0.95 |
% |
Noninterest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits |
767,372 |
|
|
|
|
|
|
568,053 |
|
|
|
|
|
Accrued interest and other liabilities |
17,762 |
|
|
|
|
|
|
15,756 |
|
|
|
|
|
Total noninterest-bearing liabilities |
785,134 |
|
|
|
|
|
|
583,809 |
|
|
|
|
|
Stockholders’ equity |
267,139 |
|
|
|
|
|
|
221,502 |
|
|
|
|
|
Total liabilities and stockholders’ equity |
$ |
2,233,851 |
|
|
|
|
|
|
$ |
1,885,510 |
|
|
|
|
|
Net interest income |
|
|
$ |
50,339 |
|
|
|
|
|
$ |
47,296 |
|
|
Net interest spread |
|
|
|
|
2.78 |
% |
|
|
|
|
|
3.10 |
% |
Net interest margin |
|
|
|
|
3.11 |
% |
|
|
|
|
|
3.48 |
% |
Net interest margin
FTE(3) |
|
|
|
|
3.17 |
% |
|
|
|
|
|
3.53 |
% |
Cost of deposits |
|
|
|
|
0.45 |
% |
|
|
|
|
|
0.59 |
% |
Cost of funds |
|
|
|
|
0.41 |
% |
|
|
|
|
|
0.57 |
% |
(1) |
Includes average outstanding balances of loans held for sale of
$13.3 million and $4.1 million for the nine months ended
September 30, 2020 and 2019, 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. |
LOAN INTEREST INCOME AND NET INTEREST RATIOS EXCLUDING PPP
LOANS (NON-GAAP) (UNAUDITED) |
|
The following table
presents interest income for total loans, PPP loans, and total
non-PPP loans (non-GAAP), as well as net interest ratios excluding
PPP loans (non-GAAP) for the nine months ended September 30,
2020 and 2019. |
|
|
|
For the Nine Months Ended
September 30, |
|
2020 |
|
2019 |
(dollars in thousands) |
Average Balance
Outstanding |
|
Interest/Fees Earned |
|
Average Yield |
|
Average Balance
Outstanding |
|
Interest/Fees Earned |
|
Average Yield |
Loans(1,2) |
$ |
1,571,318 |
|
$ |
50,623 |
|
4.24 |
% |
|
$ |
1,375,129 |
|
$ |
48,026 |
|
4.61 |
% |
Less: PPP loans, net |
|
|
|
|
|
|
|
|
|
|
|
Average |
116,095 |
|
|
|
|
|
— |
|
|
|
|
Interest |
|
|
932 |
|
|
|
|
|
— |
|
|
Fees |
|
|
1,607 |
|
|
|
|
|
— |
|
|
Total PPP loans, net |
116,095 |
|
2,539 |
|
2.90 |
% |
|
— |
|
— |
|
— |
% |
Non-PPP loans (non-GAAP)(4) |
$ |
1,455,223 |
|
$ |
48,084 |
|
4.35 |
% |
|
$ |
1,375,129 |
|
$ |
48,026 |
|
4.61 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Ratios excluding PPP loans,
net (non-GAAP)(4) |
|
|
|
|
|
|
|
|
|
|
|
Net interest spread |
|
|
|
|
2.82 |
% |
|
|
|
|
|
3.10 |
% |
Net interest margin |
|
|
|
|
3.13 |
% |
|
|
|
|
|
3.48 |
% |
Net interest margin FTE(3) |
|
|
|
|
3.19 |
% |
|
|
|
|
|
3.53 |
% |
(1) |
Includes average outstanding balances of loans held for sale of
$13.3 million and $4.1 million for the nine months ended
September 30, 2020 and 2019, 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. |
(4) |
Non-GAAP financial measure. |
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(UNAUDITED) |
|
(dollars in thousands, except per share data) |
September 30,2020 |
|
June 30, 2020 |
|
September 30,2019 |
Tangible common equity |
|
|
|
|
|
Total stockholders' equity |
$ |
278,078 |
|
|
|
$ |
271,117 |
|
|
|
$ |
245,389 |
|
|
Adjustments: |
|
|
|
|
|
Intangible assets |
(1,546 |
) |
|
|
(1,546 |
) |
|
|
(1,546 |
) |
|
Total tangible common equity (non-GAAP) |
$ |
276,532 |
|
|
|
$ |
269,571 |
|
|
|
$ |
243,843 |
|
|
Common shares outstanding |
7,325,333 |
|
|
|
7,322,532 |
|
|
|
7,306,221 |
|
|
Book value per common share |
$ |
37.96 |
|
|
|
$ |
37.03 |
|
|
|
$ |
33.59 |
|
|
Tangible book value per common share (non-GAAP) |
$ |
37.75 |
|
|
|
$ |
36.81 |
|
|
|
$ |
33.37 |
|
|
|
|
|
|
|
|
Tangible assets |
|
|
|
|
|
Total assets |
$ |
2,490,928 |
|
|
|
$ |
2,361,866 |
|
|
|
$ |
1,938,854 |
|
|
Adjustments: |
|
|
|
|
|
Intangible assets |
(1,546 |
) |
|
|
(1,546 |
) |
|
|
(1,546 |
) |
|
Total tangible assets (non-GAAP) |
$ |
2,489,382 |
|
|
|
$ |
2,360,320 |
|
|
|
$ |
1,937,308 |
|
|
Total stockholders' equity to assets |
11.16 |
|
% |
|
11.48 |
|
% |
|
12.66 |
|
% |
Tangible common equity to tangible assets (non-GAAP) |
11.11 |
|
% |
|
11.42 |
|
% |
|
12.59 |
|
% |
|
|
|
|
|
|
Non-PPP loans HFI |
|
|
|
|
|
Loans HFI |
$ |
1,649,272 |
|
|
|
$ |
1,615,298 |
|
|
|
$ |
1,413,162 |
|
|
Adjustments: |
|
|
|
|
|
PPP loans, net |
(193,532 |
) |
|
|
(192,655 |
) |
|
|
— |
|
|
Non-PPP loans HFI (non-GAAP) |
$ |
1,455,740 |
|
|
|
$ |
1,422,643 |
|
|
|
$ |
1,413,162 |
|
|
|
|
|
|
|
|
Assets excluding PPP loans, net |
|
|
|
|
|
Assets |
$ |
2,490,928 |
|
|
|
$ |
2,361,866 |
|
|
|
$ |
1,938,854 |
|
|
Adjustments: |
|
|
|
|
|
PPP loans, net |
(193,532 |
) |
|
|
(192,655 |
) |
|
|
— |
|
|
Assets excluding PPP loans, net (non-GAAP) |
$ |
2,297,396 |
|
|
|
$ |
2,169,211 |
|
|
|
$ |
1,938,854 |
|
|
|
|
|
|
|
|
Allowance for loan losses |
$ |
16,192 |
|
|
|
$ |
14,882 |
|
|
|
$ |
13,906 |
|
|
Deposits |
$ |
2,193,940 |
|
|
|
$ |
2,069,322 |
|
|
|
$ |
1,676,851 |
|
|
|
|
|
|
|
|
Loans HFI to deposits ratio |
75.17 |
|
% |
|
78.06 |
|
% |
|
84.27 |
|
% |
Non-PPP loans HFI to deposits ratio (non-GAAP) |
66.35 |
|
% |
|
68.75 |
|
% |
|
84.27 |
|
% |
|
|
|
|
|
|
Allowance for loan losses to loans HFI |
0.98 |
|
% |
|
0.92 |
|
% |
|
0.98 |
|
% |
Allowance for loan losses to non-PPP loans HFI (non-GAAP) |
1.11 |
|
% |
|
1.05 |
|
% |
|
0.98 |
|
% |
Contact:
Isabel V. Carriere, CPA, CGMA
Executive Vice President and Chief Financial Officer
318-561-4023
icarriere@redriverbank.net
Red River Bancshares (NASDAQ:RRBI)
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Red River Bancshares (NASDAQ:RRBI)
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