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 2020.
Net income for the fourth quarter of 2020 was $7.3 million, or
$0.99 per diluted common share ("EPS"), consistent with the $7.3
million, or $0.99 EPS, for the third quarter of 2020, and an
increase of $518,000, or 7.7%, compared to $6.7 million, or $0.92
EPS, for the fourth quarter of 2019. For the fourth quarter of
2020, the quarterly return on assets was 1.13% and the quarterly
return on equity was 10.23%.
Net income for the twelve months ended December 31, 2020,
was $28.1 million, or $3.83 EPS, an increase of $3.3 million, or
13.4%, compared to $24.8 million, or $3.49 EPS, for the twelve
months ended December 31, 2019. For the twelve months ended
December 31, 2020, the return on assets was 1.22% and the
return on equity was 10.39%.
Fourth Quarter and Year-End 2020 Performance and
Operational Highlights
The fourth quarter of 2020 included progress on the Small
Business Administration ("SBA") Paycheck Protection Program ("PPP")
loan forgiveness, continued strong mortgage lending activity, and
the purchase of two banking center locations. On November 25, 2020,
the Louisiana COVID-19 pandemic response restrictions moved from
Phase Three to modified Phase Two, resulting in increased
restrictions on selected businesses.
- Net income for the
fourth quarter of 2020 was $7.3 million, consistent with net income
for the prior quarter. An increase in PPP loan income was mainly
offset by higher provision for loan loss expense.
- Assets increased $151.7 million in the
fourth quarter to $2.64 billion as of December 31, 2020, driven by
a $146.4 million increase in deposits. The deposit growth in the
fourth quarter of 2020 was primarily a result of consumer customers
maintaining higher deposit balances combined with the seasonal
inflow of funds from public entity customers.
- During 2020, Red River Bank
participated in the SBA PPP. On September 14, 2020, we began
accepting PPP loan forgiveness applications from our borrowers. In
the fourth quarter of 2020, the SBA began approving our initial
forgiveness applications, and we received $77.7 million of PPP loan
payments. This resulted in higher PPP loan income in the fourth
quarter.
- The net interest margin fully tax
equivalent ("FTE") for the fourth quarter benefited from higher PPP
loan income due to PPP loan forgiveness payments. The net interest
margin FTE for the fourth quarter was 3.08%, compared to 3.02% for
the prior quarter.
- Due to the expected economic pressures
relating to the COVID-19 pandemic, we funded the allowance for loan
losses by increasing the provision for loan losses for the quarter
and year ended December 31, 2020.
- Mortgage loan production and income in
2020 were at record high levels for the Company.
- Nonperforming assets
("NPA(s)") decreased $1.0 million in the fourth quarter and were
$4.2 million, or 0.16% of assets, as of December 31, 2020.
- As of December 31,
2020, active pandemic-related loan deferrals were $12.5 million, or
0.8% of non-PPP loans held for investment ("HFI") (non-GAAP), down
from $23.3 million, or 1.6% of non-PPP loans HFI (non-GAAP), as of
September 30, 2020.
- In the fourth
quarter of 2020, as part of our continued Louisiana market
expansion, we purchased banking center locations in Lafayette and
Lake Charles, Louisiana. The Lafayette location is expected to open
in the summer of 2021 as our first full-service banking center in
our new Acadiana market, pending receipt of all regulatory
approvals. Also, the Lake Charles location is expected to open as a
full-service banking center in the second quarter of 2021 as the
third banking center in our Southwest market, pending receipt of
all regulatory approvals.
Blake Chatelain, President and Chief Executive Officer stated,
"The fourth quarter of 2020 was productive, and we completed a year
of growth and progress for the Company. The PPP loan forgiveness
process is under way and progressing quickly, as we believe it is
in the best interest of our borrowers to finalize these loans.
Mortgage loan activity and income continues at high levels.
"Additionally, we were pleased to announce our expansion in our
Acadiana and Southwest Louisiana markets as part of our continued
commitment to, and investment in, providing banking services
throughout Louisiana. We have purchased banking center buildings in
Lafayette and Lake Charles, and look forward to opening these
locations as Red River Bank banking centers as quickly as possible
and increasing our customer base in these vibrant markets. Both
locations were former bank branches. Therefore, the total
investment will be less than if we had built new buildings.
"We are greatly saddened by the loss of our longtime friend,
supporter, and director on Red River Bancshares, Inc.'s board, Bill
Hackmeyer, who passed away in early January 2021. His friendship,
wise counsel, and guidance will be missed by our entire
organization.
"As we begin 2021, we are hopeful that vaccinations will be
successful and allow our customers and our communities to resume
normal activities as the year progresses."
Net Interest Income and Net Interest Margin
FTE
Net interest income and net interest margin FTE for the fourth
quarter of 2020 benefited from the forgiveness of PPP loans
resulting in higher PPP loan income. PPP loans have a 1.0% interest
rate, and 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. When PPP loan forgiveness payments are received, the remaining
portion of origination fees are recorded to income. In the fourth
quarter of 2020, 48.0% of the total number of our PPP loans were
forgiven by the SBA, and $77.7 million of PPP loan payments were
received from the SBA and our borrowers. Average PPP loans, net of
deferred income, for the fourth quarter of 2020 were $161.1
million, which was $31.9 million lower than the prior quarter. For
the fourth quarter of 2020, PPP loan income totaled $3.0 million,
resulting in a 7.45% yield, compared to $1.4 million in income and
a 2.84% yield for the prior quarter. PPP loan income for the twelve
months ended December 31, 2020, was $5.6 million, resulting in a
4.35% yield.
Net interest income for the fourth quarter of 2020 was $18.7
million, which was $1.4 million, or 7.9%, higher than the third
quarter of 2020, primarily due to a $1.6 million increase in PPP
loan income. Interest income for total securities decreased
$265,000 due to lower interest income on mortgage-backed securities
resulting from lower yielding securities purchased during the
fourth quarter, combined with an increase in amortization expense.
In the fourth quarter of 2020, deposit growth combined with PPP
loan forgiveness payments resulted in excess liquidity, which was
deployed into interest-bearing deposits in other banks and
securities.
The net interest margin FTE increased six basis points ("bp(s)")
to 3.08% for the fourth quarter of 2020, compared to 3.02% for the
prior quarter, as our interest-earning assets benefited from higher
PPP loan income, and the rate on our interest-bearing deposits
decreased. The yield on loans increased by 43 bps due to a $1.6
million increase in PPP loan income from the prior quarter. The
yield on taxable securities decreased 41 bps as a result of the
mortgage-backed securities purchased during the fourth quarter
having lower yields due to the continued low rate environment,
combined with an increase in amortization expense for our
mortgage-backed securities portfolio. The resulting yield on
interest-earning assets was 3.32% for the fourth quarter of 2020,
compared to 3.30% for the third quarter of 2020. The cost of
deposits was 0.33% for the fourth quarter of 2020, compared to
0.37% for the prior quarter. The cost of deposits was lower during
the fourth quarter due to an eight bp decrease in the rate on
interest-bearing deposits as a result of our adjustments to deposit
rates.
Excluding PPP loan income, net interest income (non-GAAP) for
the fourth quarter of 2020 was $15.6 million,(1) which was
$271,000, or 1.7%, lower than the third quarter of 2020. Also, with
PPP loans excluded for the fourth quarter of 2020, the yield on
non-PPP loans (non-GAAP) was 4.14%,(1) and the net interest margin
FTE (non-GAAP) was 2.77%(1). For the fourth quarter of 2020, PPP
loans had a 33 bp accretive impact to the yield on loans and a 31
bp accretive impact to the net interest margin FTE.
Provision for Loan Losses
The provision for loan losses was higher in 2020 due to expected
economic pressures relating to the continuing COVID-19 pandemic.
Provision expense for 2020 was $6.3 million, compared to $1.8
million for 2019. The provision for loan losses for the fourth
quarter of 2020 was $2.7 million, which was $1.1 million higher
than $1.6 million for the prior quarter.
Noninterest Income
Noninterest income totaled $6.2 million for the fourth quarter
of 2020, a decrease of $227,000, or 3.5%, compared to $6.4 million
for the previous quarter. The decrease was mainly due to lower
mortgage loan income and lower loan and deposit fee income,
partially offset by higher service charges on deposit accounts.
Due to the low mortgage interest rate environment in 2020,
mortgage loan production and income have been at record high
levels. For the twelve months ended December 31, 2020, mortgage
loan production increased 140.2% from 2019, resulting in $8.4
million of mortgage loan income, an increase of $5.4 million, or
179.7%, from $3.0 million for the prior year. For the fourth
quarter of 2020, mortgage loan income was $2.7 million, a decrease
of $205,000, or 7.1%, from the previous quarter's record high total
of $2.9 million. The decrease in the fourth quarter was related to
lower levels of mortgage loan production when compared to the
Company high the previous quarter.
Loan and deposit income totaled $361,000 for the fourth quarter
of 2020, a decrease of $52,000, or 12.6%, from the prior quarter.
The decrease was primarily due to $40,000 of nonrecurring income in
the third quarter and decreased loan fees in the fourth
quarter.
Service charges on deposit accounts totaled $1.1 million for the
fourth quarter of 2020, an increase of $52,000, or 4.9%, compared
to the third quarter of 2020. This increase was due to higher
customer deposit transaction activity.
Operating Expenses
Operating expenses for the fourth quarter of 2020 totaled $13.3
million, an increase of $85,000, or 0.6%, compared to the third
quarter of 2020. This increase was due to higher legal and
professional expenses and higher occupancy and equipment
expenses.
Legal and professional expenses totaled $554,000 for the fourth
quarter of 2020, up $67,000, or 13.8%, from the third quarter of
2020. The increase was due to higher attorney, compliance, and
audit expenses, partially offset by a reduction in contracted
services due to lower mortgage loan activity in the fourth quarter
of 2020.
Occupancy and equipment expenses for the fourth quarter of 2020
totaled $1.4 million, an increase of $48,000, or 3.6%, compared to
the third quarter of 2020. This increase was due to higher
equipment expenses and routine property maintenance, partially
offset by a reduction of other occupancy expenses.
Personnel expenses totaled $8.1 million for both the fourth and
third quarters of 2020. However, in the fourth quarter, normal
year-end compensation adjustments were offset by a decrease in
mortgage commissions due to lower mortgage loan activity.
Asset Overview
As of December 31, 2020, assets totaled $2.64 billion,
which was $151.7 million, or 6.1%, higher than $2.49 billion as of
September 30, 2020. This increase was primarily due to a $146.4
million increase in deposits in the fourth quarter. In the fourth
quarter of 2020, deposit growth combined with PPP loan forgiveness
payments resulted in excess liquidity, which was deployed into
interest-bearing deposits in other banks and securities.
Interest-bearing deposits in other banks increased $178.2 million
to $417.7 million, and securities available-for-sale increased
$30.5 million to $498.2 million as of December 31, 2020. The loans
HFI to deposits ratio was 67.87% as of December 31, 2020,
compared to 75.17% as of September 30, 2020.
Assets excluding PPP loans, net of deferred income (non-GAAP) as
of December 31, 2020, totaled $2.52 billion(1) which was
$226.8 million, or 9.9%, higher than $2.30 billion(1) as of
September 30, 2020. The non-PPP loans HFI to deposits ratio
(non-GAAP) was 62.81%(1) as of December 31, 2020, compared to
66.35%(1) as of September 30, 2020.
Loans
Loans HFI as of December 31, 2020, were $1.59 billion, a
decrease of $60.8 million, or 3.7%, from September 30, 2020. The
decrease in loans in the fourth quarter of 2020 was primarily due
to the forgiveness of PPP loans by the SBA. As of December 31,
2020, PPP loans totaled $118.4 million, net of $2.8 million in
deferred income, and were 7.5% of loans HFI. As of
December 31, 2020, non-PPP loans HFI were $1.47 billion,(1) an
increase of $14.3 million, or 1.0%, from September 30, 2020. The
increase in 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 in the fourth quarter of 2020, we began
receiving PPP loan forgiveness payments from the SBA. As of
December 31, 2020, 48.0% of the 1,384 PPP loans were forgiven by
the SBA, and we had received $77.7 million in SBA forgiveness and
borrower payments. Through January 20, 2021, 61.9% of the 1,384 PPP
loans were forgiven by the SBA, and we had received $100.0 million
in SBA forgiveness and borrower payments. Red River Bank is
participating in the PPP Second Draw program.
During 2020, we granted loan payment deferments for requesting
borrowers impacted by pandemic-related economic shutdowns. As of
December 31, 2020, $12.5 million, or 0.8% of non-PPP loans HFI
(non-GAAP), remained on active deferral and were deferrals of
principal payments only, compared to $23.3 million, or 1.6% of
non-PPP loans HFI (non-GAAP), as of September 30, 2020.
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:
| |
December 31, 2020 |
| |
Loans |
| (dollars in thousands) |
Amount |
|
Percent of Non-PPP Loans HFI (non-GAAP) |
| Hospitality services: |
|
|
|
|
Hotels and other overnight lodging |
$ |
26,722 |
|
|
1.9 |
% |
|
Restaurants - full service |
11,901 |
|
|
0.8 |
% |
|
Restaurants - limited service |
12,467 |
|
|
0.8 |
% |
|
Other |
7,194 |
|
|
0.5 |
% |
| Total hospitality
services |
$ |
58,284 |
|
|
4.0 |
% |
| |
|
|
|
| Retail trade: |
|
|
|
|
Automobile dealers |
$ |
35,460 |
|
|
2.4 |
% |
|
Other retail |
21,120 |
|
|
1.4 |
% |
| Total retail trade |
$ |
56,580 |
|
|
3.8 |
% |
| |
|
|
|
| Energy |
$ |
20,351 |
|
|
1.4 |
% |
Loan payment deferments in the hospitality services sector
represents 65.0% of our active deferrals. As of December 31, 2020,
active deferrals in the hospitality services decreased to $8.1
million, or 0.6% of non-PPP loans HFI (non-GAAP), from $16.9
million, or 1.2% of non-PPP loans HFI (non-GAAP), as of September
30, 2020. As of December 31, 2020, there were no active deferrals
in the retail trade or energy sectors.
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:
| |
December 31, 2020 |
| (dollars in thousands) |
Amount |
|
Percent of Non-PPP Loans HFI (non-GAAP) |
|
Loans collateralized by non-owner occupied properties leased to
retail establishments |
$ |
38,923 |
|
|
2.6 |
% |
| |
|
|
|
| Credit card loans: |
|
|
|
|
Commercial |
$ |
1,499 |
|
|
0.1 |
% |
|
Consumer |
958 |
|
|
0.1 |
% |
| Total credit card loans |
$ |
2,457 |
|
|
0.2 |
% |
Our health care loans are made up of a diversified portfolio of
health care providers. As of December 31, 2020, health care
credits were 10.2% of non-PPP loans HFI (non-GAAP), with nursing
and residential care loans and loans to physician and dental
practices of 4.4% and 5.7% of non-PPP loans HFI (non-GAAP),
respectively. The average loan size was $305,000. Health care
deferral requests were minimal, and as of December 31, 2020,
there were no health care credits with active deferrals.
Asset Quality and Allowance for Loan Losses
NPAs totaled $4.2 million as of December 31, 2020, down
$1.0 million, or 19.3%, from September 30, 2020, primarily due to
nonperforming loans being charged-off. The ratio of NPAs to total
assets improved to 0.16% as of December 31, 2020, from 0.21%
as of September 30, 2020.
As of December 31, 2020, the Allowance for Loan Losses
("ALL") was $18.0 million. The ratio of ALL to loans HFI was 1.13%
as of December 31, 2020, and 0.98% as of September 30, 2020. The
ratio of ALL to non-PPP loans HFI (non-GAAP) was 1.22%(1) as of
December 31, 2020, and 1.11%(1) as of September 30, 2020.
The net charge-off ratio was 0.06% for the fourth quarter of
2020, 0.02% for the third quarter of 2020, and 0.14% for the twelve
months ended December 31, 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 first quarter of 2021.
Deposits
Deposits as of December 31, 2020, were $2.34 billion, an
increase of $146.4 million, or 6.7%, compared to September 30,
2020. Average deposits for the fourth quarter of 2020 were $2.24
billion, an increase of $130.4 million, or 6.2%, from the prior
quarter.
Noninterest-bearing deposits totaled $943.6 million as of
December 31, 2020, up $20.3 million, or 2.2%, from September
30, 2020, due to consumer customers maintaining higher
noninterest-bearing deposit balances. As of December 31, 2020,
noninterest-bearing deposits were 40.32% of total deposits.
Interest-bearing deposits totaled $1.40 billion as of
December 31, 2020, up $126.1 million, or 9.9%, compared to
September 30, 2020. This increase was a result of consumer
customers maintaining higher interest-bearing deposit balances and
the seasonal inflow of funds from public entity customers,
partially offset by a large, temporary deposit received in the
third quarter of 2020 that was withdrawn in the fourth quarter.
Stockholders’ Equity
Total stockholders’ equity increased to $285.5 million as of
December 31, 2020, from $278.1 million as of September 30,
2020. The $7.4 million increase in stockholders’ equity during the
fourth quarter of 2020 was attributable to $7.3 million of net
income, a $521,000, 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. We paid our fourth quarterly
cash dividend of $0.06 per share on December 17, 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 and 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.
Contact:Isabel V. Carriere, CPA, CGMAExecutive Vice President
and Chief Financial
Officer318-561-4023icarriere@redriverbank.net
|
|
|
FINANCIAL HIGHLIGHTS (UNAUDITED) |
| |
| |
As of and for theThree Months
Ended |
|
As of and for theTwelve Months
Ended |
| (Dollars in thousands, except
per share data) |
December 31,2020 |
|
September 30,2020 |
|
December 31,2019 |
|
December 31,2020 |
|
December 31,2019 |
| |
|
|
|
|
|
|
|
|
|
|
Net Income |
$ |
7,261 |
|
|
$ |
7,285 |
|
|
$ |
6,743 |
|
|
$ |
28,145 |
|
|
$ |
24,824 |
|
| |
|
|
|
|
|
|
|
|
|
| Per Common Share
Data: |
|
|
|
|
|
|
|
|
|
|
Earnings per share, basic |
$ |
0.99 |
|
|
$ |
0.99 |
|
|
$ |
0.92 |
|
|
$ |
3.84 |
|
|
$ |
3.51 |
|
|
Earnings per share, diluted |
$ |
0.99 |
|
|
$ |
0.99 |
|
|
$ |
0.92 |
|
|
$ |
3.83 |
|
|
$ |
3.49 |
|
|
Book value per share |
$ |
38.97 |
|
|
$ |
37.96 |
|
|
$ |
34.48 |
|
|
$ |
38.97 |
|
|
$ |
34.48 |
|
|
Tangible book value per share(1) |
$ |
38.76 |
|
|
$ |
37.75 |
|
|
$ |
34.27 |
|
|
$ |
38.76 |
|
|
$ |
34.27 |
|
|
Cash dividends per share |
$ |
0.06 |
|
|
$ |
0.06 |
|
|
$ |
— |
|
|
$ |
0.24 |
|
|
$ |
0.20 |
|
|
Shares outstanding |
7,325,333 |
|
|
7,325,333 |
|
|
7,306,221 |
|
|
7,325,333 |
|
|
7,306,221 |
|
|
Weighted average shares outstanding, basic |
7,325,333 |
|
|
7,327,395 |
|
|
7,306,221 |
|
|
7,322,158 |
|
|
7,072,689 |
|
|
Weighted average shares outstanding, diluted |
7,343,859 |
|
|
7,342,678 |
|
|
7,347,602 |
|
|
7,345,045 |
|
|
7,115,514 |
|
| |
|
|
|
|
|
|
|
|
|
| Summary Performance
Ratios: |
|
|
|
|
|
|
|
|
|
|
Return on average assets |
1.13 |
% |
|
1.20 |
% |
|
1.37 |
% |
|
1.22 |
% |
|
1.30 |
% |
|
Return on average equity |
10.23 |
% |
|
10.50 |
% |
|
10.72 |
% |
|
10.39 |
% |
|
10.86 |
% |
|
Net interest margin |
3.01 |
% |
|
2.96 |
% |
|
3.45 |
% |
|
3.09 |
% |
|
3.47 |
% |
|
Net interest margin FTE |
3.08 |
% |
|
3.02 |
% |
|
3.50 |
% |
|
3.14 |
% |
|
3.52 |
% |
|
Efficiency ratio |
53.66 |
% |
|
55.88 |
% |
|
57.90 |
% |
|
55.77 |
% |
|
59.46 |
% |
|
Loans HFI to deposits ratio |
67.87 |
% |
|
75.17 |
% |
|
83.60 |
% |
|
67.87 |
% |
|
83.60 |
% |
|
Noninterest-bearing deposits to deposits ratio |
40.32 |
% |
|
42.08 |
% |
|
33.98 |
% |
|
40.32 |
% |
|
33.98 |
% |
|
Noninterest income to average assets |
0.97 |
% |
|
1.06 |
% |
|
0.85 |
% |
|
1.00 |
% |
|
0.84 |
% |
|
Operating expense to average assets |
2.08 |
% |
|
2.19 |
% |
|
2.41 |
% |
|
2.22 |
% |
|
2.49 |
% |
| |
|
|
|
|
|
|
|
|
|
| Summary Credit Quality
Ratios: |
|
|
|
|
|
|
|
|
|
|
Nonperforming assets to total assets |
0.16 |
% |
|
0.21 |
% |
|
0.33 |
% |
|
0.16 |
% |
|
0.33 |
% |
|
Nonperforming loans to loans HFI |
0.21 |
% |
|
0.27 |
% |
|
0.37 |
% |
|
0.21 |
% |
|
0.37 |
% |
|
Allowance for loan losses to loans HFI |
1.13 |
% |
|
0.98 |
% |
|
0.97 |
% |
|
1.13 |
% |
|
0.97 |
% |
|
Net charge-offs to average loans |
0.06 |
% |
|
0.02 |
% |
|
0.02 |
% |
|
0.14 |
% |
|
0.03 |
% |
| |
|
|
|
|
|
|
|
|
|
| Capital
Ratios: |
|
|
|
|
|
|
|
|
|
|
Total stockholders' equity to total assets |
10.80 |
% |
|
11.16 |
% |
|
12.67 |
% |
|
10.80 |
% |
|
12.67 |
% |
|
Tangible common equity to tangible assets (1) |
10.75 |
% |
|
11.11 |
% |
|
12.60 |
% |
|
10.75 |
% |
|
12.60 |
% |
|
Total risk-based capital to risk-weighted assets |
18.68 |
% |
|
18.17 |
% |
|
18.02 |
% |
|
18.68 |
% |
|
18.02 |
% |
|
Tier 1 risk-based capital to risk-weighted assets |
17.55 |
% |
|
17.15 |
% |
|
17.07 |
% |
|
17.55 |
% |
|
17.07 |
% |
|
Common equity Tier 1 capital to risk-weighted assets |
17.55 |
% |
|
17.15 |
% |
|
17.07 |
% |
|
17.55 |
% |
|
17.07 |
% |
|
Tier 1 risk-based capital to average assets |
10.92 |
% |
|
11.26 |
% |
|
12.82 |
% |
|
10.92 |
% |
|
12.82 |
% |
(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) |
| |
| (in thousands) |
December 31,2020 |
|
September 30,2020 |
|
June 30, 2020 |
|
March 31, 2020 |
|
December 31,2019 |
| ASSETS |
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
$ |
29,537 |
|
|
$ |
31,422 |
|
|
$ |
31,097 |
|
|
$ |
31,858 |
|
|
$ |
25,937 |
|
|
Interest-bearing deposits in other banks |
417,664 |
|
|
239,466 |
|
|
210,254 |
|
|
48,605 |
|
|
107,355 |
|
|
Securities available-for-sale |
498,206 |
|
|
467,744 |
|
|
413,246 |
|
|
401,944 |
|
|
335,573 |
|
|
Equity securities |
4,021 |
|
|
4,032 |
|
|
4,032 |
|
|
3,998 |
|
|
3,936 |
|
|
Nonmarketable equity securities |
3,447 |
|
|
3,445 |
|
|
3,441 |
|
|
1,354 |
|
|
1,350 |
|
|
Loans held for sale |
29,116 |
|
|
23,358 |
|
|
14,578 |
|
|
6,597 |
|
|
5,089 |
|
|
Loans held for investment |
1,588,446 |
|
|
1,649,272 |
|
|
1,615,298 |
|
|
1,447,362 |
|
|
1,438,924 |
|
|
Allowance for loan losses |
(17,951 |
) |
|
(16,192 |
) |
|
(14,882 |
) |
|
(14,393 |
) |
|
(13,937 |
) |
|
Premises and equipment, net |
46,924 |
|
|
44,501 |
|
|
41,465 |
|
|
41,711 |
|
|
41,744 |
|
|
Accrued interest receivable |
6,880 |
|
|
6,617 |
|
|
6,492 |
|
|
5,240 |
|
|
5,251 |
|
|
Bank-owned life insurance |
22,413 |
|
|
22,270 |
|
|
22,131 |
|
|
21,987 |
|
|
21,845 |
|
|
Intangible assets |
1,546 |
|
|
1,546 |
|
|
1,546 |
|
|
1,546 |
|
|
1,546 |
|
|
Right-of-use assets |
4,154 |
|
|
4,255 |
|
|
4,355 |
|
|
4,454 |
|
|
4,553 |
|
|
Other assets |
8,231 |
|
|
9,192 |
|
|
8,813 |
|
|
8,438 |
|
|
9,059 |
|
|
Total Assets |
$ |
2,642,634 |
|
|
$ |
2,490,928 |
|
|
$ |
2,361,866 |
|
|
$ |
2,010,701 |
|
|
$ |
1,988,225 |
|
| |
|
|
|
|
|
|
|
|
|
| LIABILITIES |
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits |
$ |
943,615 |
|
|
$ |
923,286 |
|
|
$ |
858,397 |
|
|
$ |
607,322 |
|
|
$ |
584,915 |
|
|
Interest-bearing deposits |
1,396,745 |
|
|
1,270,654 |
|
|
1,210,925 |
|
|
1,120,460 |
|
|
1,136,205 |
|
|
Total Deposits |
2,340,360 |
|
|
2,193,940 |
|
|
2,069,322 |
|
|
1,727,782 |
|
|
1,721,120 |
|
|
Accrued interest payable |
1,774 |
|
|
1,805 |
|
|
1,994 |
|
|
2,307 |
|
|
2,222 |
|
|
Lease liabilities |
4,233 |
|
|
4,327 |
|
|
4,419 |
|
|
4,511 |
|
|
4,603 |
|
|
Accrued expenses and other liabilities |
10,789 |
|
|
12,778 |
|
|
15,014 |
|
|
11,926 |
|
|
8,382 |
|
|
Total Liabilities |
2,357,156 |
|
|
2,212,850 |
|
|
2,090,749 |
|
|
1,746,526 |
|
|
1,736,327 |
|
| COMMITMENTS AND
CONTINGENCIES |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
| STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
Preferred stock, no par value |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
Common stock, no par value |
68,055 |
|
|
68,055 |
|
|
68,177 |
|
|
68,177 |
|
|
68,082 |
|
|
Additional paid-in capital |
1,545 |
|
|
1,487 |
|
|
1,429 |
|
|
1,333 |
|
|
1,269 |
|
|
Retained earnings |
208,957 |
|
|
202,136 |
|
|
195,291 |
|
|
188,877 |
|
|
182,571 |
|
|
Accumulated other comprehensive income (loss) |
6,921 |
|
|
6,400 |
|
|
6,220 |
|
|
5,788 |
|
|
(24 |
) |
|
Total Stockholders' Equity |
285,478 |
|
|
278,078 |
|
|
271,117 |
|
|
264,175 |
|
|
251,898 |
|
|
Total Liabilities and Stockholders' Equity |
$ |
2,642,634 |
|
|
$ |
2,490,928 |
|
|
$ |
2,361,866 |
|
|
$ |
2,010,701 |
|
|
$ |
1,988,225 |
|
|
RED RIVER BANCSHARES, INC. |
|
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) |
| |
|
|
|
|
|
|
|
|
|
| |
For the Three Months Ended |
|
For the Twelve Months Ended |
| (in thousands) |
December 31, 2020 |
|
September 30, 2020 |
|
December 31, 2019 |
|
December 31, 2020 |
|
December 31, 2019 |
| INTEREST AND DIVIDEND
INCOME |
|
|
|
|
|
|
|
|
|
|
Interest and fees on loans |
$ |
18,605 |
|
|
$ |
17,080 |
|
|
$ |
16,544 |
|
|
$ |
69,228 |
|
|
$ |
64,570 |
|
|
Interest on securities |
1,834 |
|
|
2,099 |
|
|
1,894 |
|
|
7,601 |
|
|
7,241 |
|
|
Interest on federal funds sold |
28 |
|
|
30 |
|
|
150 |
|
|
207 |
|
|
753 |
|
|
Interest on deposits in other banks |
58 |
|
|
27 |
|
|
192 |
|
|
322 |
|
|
1,127 |
|
|
Dividends on stock |
1 |
|
|
13 |
|
|
4 |
|
|
20 |
|
|
34 |
|
|
Total Interest and Dividend Income |
20,526 |
|
|
19,249 |
|
|
18,784 |
|
|
77,378 |
|
|
73,725 |
|
| INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|
Interest on deposits |
1,865 |
|
|
1,954 |
|
|
2,441 |
|
|
8,362 |
|
|
9,701 |
|
|
Interest on other borrowed funds |
— |
|
|
— |
|
|
— |
|
|
16 |
|
|
— |
|
|
Interest on junior subordinated debentures |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
385 |
|
|
Total Interest Expense |
1,865 |
|
|
1,954 |
|
|
2,441 |
|
|
8,378 |
|
|
10,086 |
|
| Net Interest
Income |
18,661 |
|
|
17,295 |
|
|
16,343 |
|
|
69,000 |
|
|
63,639 |
|
|
Provision for loan losses |
2,675 |
|
|
1,590 |
|
|
378 |
|
|
6,293 |
|
|
1,810 |
|
| Net Interest Income
After Provision for Loan Losses |
15,986 |
|
|
15,705 |
|
|
15,965 |
|
|
62,707 |
|
|
61,829 |
|
| NONINTEREST INCOME |
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts |
1,107 |
|
|
1,055 |
|
|
1,270 |
|
|
4,108 |
|
|
4,573 |
|
|
Debit card income, net |
1,011 |
|
|
978 |
|
|
782 |
|
|
3,641 |
|
|
3,095 |
|
|
Mortgage loan income |
2,679 |
|
|
2,884 |
|
|
816 |
|
|
8,398 |
|
|
3,002 |
|
|
Brokerage income |
598 |
|
|
586 |
|
|
573 |
|
|
2,324 |
|
|
2,125 |
|
|
Loan and deposit income |
361 |
|
|
413 |
|
|
389 |
|
|
1,701 |
|
|
1,521 |
|
|
Bank-owned life insurance income |
143 |
|
|
139 |
|
|
137 |
|
|
568 |
|
|
544 |
|
|
Gain (Loss) on equity securities |
(11 |
) |
|
— |
|
|
(19 |
) |
|
85 |
|
|
115 |
|
|
Gain (Loss) on sale of securities |
93 |
|
|
125 |
|
|
13 |
|
|
1,441 |
|
|
18 |
|
|
SBIC income |
207 |
|
|
200 |
|
|
185 |
|
|
775 |
|
|
819 |
|
|
Other income |
5 |
|
|
40 |
|
|
43 |
|
|
126 |
|
|
158 |
|
|
Total Noninterest Income |
6,193 |
|
|
6,420 |
|
|
4,189 |
|
|
23,167 |
|
|
15,970 |
|
| OPERATING EXPENSES |
|
|
|
|
|
|
|
|
|
|
Personnel expenses |
8,089 |
|
|
8,077 |
|
|
7,148 |
|
|
31,160 |
|
|
27,800 |
|
|
Occupancy and equipment expenses |
1,367 |
|
|
1,319 |
|
|
1,268 |
|
|
5,106 |
|
|
4,976 |
|
|
Technology expenses |
680 |
|
|
661 |
|
|
596 |
|
|
2,542 |
|
|
2,293 |
|
|
Advertising |
216 |
|
|
240 |
|
|
204 |
|
|
933 |
|
|
1,025 |
|
|
Other business development expenses |
238 |
|
|
233 |
|
|
281 |
|
|
1,020 |
|
|
1,107 |
|
|
Data processing expense |
493 |
|
|
491 |
|
|
462 |
|
|
1,905 |
|
|
1,882 |
|
|
Other taxes |
425 |
|
|
433 |
|
|
346 |
|
|
1,733 |
|
|
1,579 |
|
|
Loan and deposit expenses |
244 |
|
|
289 |
|
|
247 |
|
|
1,052 |
|
|
1,148 |
|
|
Legal and professional expenses |
554 |
|
|
487 |
|
|
403 |
|
|
2,141 |
|
|
1,541 |
|
|
Regulatory assessment expenses |
201 |
|
|
172 |
|
|
38 |
|
|
538 |
|
|
351 |
|
|
Other operating expenses |
829 |
|
|
849 |
|
|
895 |
|
|
3,276 |
|
|
3,633 |
|
|
Total Operating Expenses |
13,336 |
|
|
13,251 |
|
|
11,888 |
|
|
51,406 |
|
|
47,335 |
|
| Income Before Income
Tax Expense |
8,843 |
|
|
8,874 |
|
|
8,266 |
|
|
34,468 |
|
|
30,464 |
|
|
Income tax expense |
1,582 |
|
|
1,589 |
|
|
1,523 |
|
|
6,323 |
|
|
5,640 |
|
| Net
Income |
$ |
7,261 |
|
|
$ |
7,285 |
|
|
$ |
6,743 |
|
|
$ |
28,145 |
|
|
$ |
24,824 |
|
| |
|
RED RIVER BANCSHARES, INC. |
|
NET INTEREST INCOME AND NET INTEREST MARGIN
(UNAUDITED) |
| |
| |
For the Three Months Ended |
| |
December 31, 2020 |
|
September 30, 2020 |
|
December 31, 2019 |
| (dollars in thousands) |
AverageBalanceOutstanding |
|
InterestEarned/InterestPaid |
|
AverageYield/Rate |
|
AverageBalanceOutstanding |
|
InterestEarned/InterestPaid |
|
AverageYield/Rate |
|
AverageBalanceOutstanding |
|
InterestEarned/InterestPaid |
|
AverageYield/Rate |
| Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans(1,2) |
$ |
1,635,103 |
|
|
$ |
18,605 |
|
|
4.47 |
% |
|
$ |
1,656,586 |
|
|
$ |
17,080 |
|
|
4.04 |
% |
|
$ |
1,428,978 |
|
|
$ |
16,544 |
|
|
4.53 |
% |
|
Securities - taxable |
303,689 |
|
|
873 |
|
|
1.15 |
% |
|
317,612 |
|
|
1,240 |
|
|
1.56 |
% |
|
258,491 |
|
|
1,392 |
|
|
2.15 |
% |
|
Securities - tax-exempt |
169,621 |
|
|
961 |
|
|
2.27 |
% |
|
146,477 |
|
|
859 |
|
|
2.35 |
% |
|
85,749 |
|
|
502 |
|
|
2.34 |
% |
|
Federal funds sold |
80,175 |
|
|
28 |
|
|
0.14 |
% |
|
73,644 |
|
|
30 |
|
|
0.16 |
% |
|
36,470 |
|
|
150 |
|
|
1.61 |
% |
|
Interest-bearing balances due from banks |
239,953 |
|
|
58 |
|
|
0.09 |
% |
|
97,687 |
|
|
27 |
|
|
0.11 |
% |
|
45,565 |
|
|
192 |
|
|
1.65 |
% |
|
Nonmarketable equity securities |
3,446 |
|
|
1 |
|
|
0.13 |
% |
|
3,441 |
|
|
13 |
|
|
1.51 |
% |
|
1,346 |
|
|
4 |
|
|
1.19 |
% |
|
Total interest-earning assets |
2,431,987 |
|
|
$ |
20,526 |
|
|
3.32 |
% |
|
2,295,447 |
|
|
$ |
19,249 |
|
|
3.30 |
% |
|
1,856,599 |
|
|
$ |
18,784 |
|
|
3.97 |
% |
| Allowance for loan losses |
(16,653 |
) |
|
|
|
|
|
(15,525 |
) |
|
|
|
|
|
(13,969 |
) |
|
|
|
|
|
Noninterest earning assets |
131,220 |
|
|
|
|
|
|
128,910 |
|
|
|
|
|
|
112,130 |
|
|
|
|
|
|
Total assets |
$ |
2,546,554 |
|
|
|
|
|
|
$ |
2,408,832 |
|
|
|
|
|
|
$ |
1,954,760 |
|
|
|
|
|
|
Liabilities and Stockholders’ Equity |
| Interest-bearing
liabilities: |
|
Interest-bearing transaction deposits |
$ |
983,992 |
|
|
$ |
610 |
|
|
0.25 |
% |
|
$ |
891,840 |
|
|
$ |
617 |
|
|
0.28 |
% |
|
$ |
747,293 |
|
|
$ |
968 |
|
|
0.51 |
% |
|
Time deposits |
333,575 |
|
|
1,255 |
|
|
1.50 |
% |
|
330,576 |
|
|
1,337 |
|
|
1.61 |
% |
|
334,499 |
|
|
1,473 |
|
|
1.75 |
% |
|
Total interest-bearing deposits |
1,317,567 |
|
|
1,865 |
|
|
0.56 |
% |
|
1,222,416 |
|
|
1,954 |
|
|
0.64 |
% |
|
1,081,792 |
|
|
2,441 |
|
|
0.90 |
% |
|
Other borrowings |
— |
|
|
— |
|
|
— |
% |
|
— |
|
|
— |
|
|
— |
% |
|
— |
|
|
— |
|
|
— |
% |
|
Total interest-bearing liabilities |
1,317,567 |
|
|
$ |
1,865 |
|
|
0.56 |
% |
|
1,222,416 |
|
|
$ |
1,954 |
|
|
0.64 |
% |
|
1,081,792 |
|
|
$ |
2,441 |
|
|
0.90 |
% |
|
Noninterest-bearing liabilities: |
|
Noninterest-bearing deposits |
927,123 |
|
|
|
|
|
|
891,850 |
|
|
|
|
|
|
606,329 |
|
|
|
|
|
|
Accrued interest and other liabilities |
19,468 |
|
|
|
|
|
|
18,541 |
|
|
|
|
|
|
17,191 |
|
|
|
|
|
|
Total noninterest-bearing liabilities: |
946,591 |
|
|
|
|
|
|
910,391 |
|
|
|
|
|
|
623,520 |
|
|
|
|
|
| Stockholders’ equity |
282,396 |
|
|
|
|
|
|
276,025 |
|
|
|
|
|
|
249,448 |
|
|
|
|
|
|
Total liabilities and stockholders’ equity |
$ |
2,546,554 |
|
|
|
|
|
|
$ |
2,408,832 |
|
|
|
|
|
|
$ |
1,954,760 |
|
|
|
|
|
| Net interest
income |
|
$ |
18,661 |
|
|
|
|
|
|
$ |
17,295 |
|
|
|
|
|
|
$ |
16,343 |
|
|
|
| Net interest
spread |
|
|
|
2.76 |
% |
|
|
|
|
|
2.66 |
% |
|
|
|
|
|
3.07 |
% |
| Net interest
margin |
|
|
|
3.01 |
% |
|
|
|
|
|
2.96 |
% |
|
|
|
|
|
3.45 |
% |
| Net interest
margin FTE(3) |
|
|
|
3.08 |
% |
|
|
|
|
|
3.02 |
% |
|
|
|
|
|
3.50 |
% |
| Cost of
deposits |
|
|
|
0.33 |
% |
|
|
|
|
|
0.37 |
% |
|
|
|
|
|
0.57 |
% |
| Cost of funds |
|
|
|
0.31 |
% |
|
|
|
|
|
0.34 |
% |
|
|
|
|
|
0.52 |
% |
(1) Includes average outstanding balances of loans
held for sale of $17.1 million, $24.4 million, and
$4.3 million for the three months ended December 31,
2020, September 30, 2020, and December 31, 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 December 31,
2020, September 30, 2020, and December 31, 2019. |
| |
|
| |
For the Three Months Ended |
| |
December 31, 2020 |
|
September 30, 2020 |
|
December 31, 2019 |
| (dollars in thousands) |
AverageBalanceOutstanding |
|
Interest/FeesEarned |
|
AverageYield |
|
AverageBalanceOutstanding |
|
Interest/FeesEarned |
|
AverageYield |
|
AverageBalanceOutstanding |
|
Interest/FeesEarned |
|
AverageYield |
|
Loans(1,2) |
$ |
1,635,103 |
|
|
$ |
18,605 |
|
|
4.47 |
% |
|
$ |
1,656,586 |
|
|
$ |
17,080 |
|
|
4.04 |
% |
|
$ |
1,428,978 |
|
|
$ |
16,544 |
|
|
4.53 |
% |
|
Less: PPP loans, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average |
161,109 |
|
|
|
|
|
|
193,038 |
|
|
|
|
|
|
— |
|
|
|
|
|
|
Interest |
|
|
419 |
|
|
|
|
|
|
509 |
|
|
|
|
|
|
— |
|
|
|
|
Fees |
|
|
2,604 |
|
|
|
|
|
|
877 |
|
|
|
|
|
|
— |
|
|
|
|
Total PPP loans, net |
161,109 |
|
|
3,023 |
|
|
7.45 |
% |
|
193,038 |
|
|
1,386 |
|
|
2.84 |
% |
|
— |
|
|
— |
|
|
— |
% |
|
Non-PPP loans (non-GAAP)(4) |
$ |
1,473,994 |
|
|
$ |
15,582 |
|
|
4.14 |
% |
|
$ |
1,463,548 |
|
|
$ |
15,694 |
|
|
4.20 |
% |
|
$ |
1,428,978 |
|
|
$ |
16,544 |
|
|
4.53 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Ratios excluding
PPP loans, net (non-GAAP)(4) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest spread |
|
2.47 |
% |
|
|
|
|
|
2.70 |
% |
|
|
|
|
|
3.07 |
% |
|
Net interest margin |
|
2.70 |
% |
|
|
|
|
|
2.97 |
% |
|
|
|
|
|
3.45 |
% |
|
Net interest margin FTE(3) |
|
2.77 |
% |
|
|
|
|
|
3.03 |
% |
|
|
|
|
|
3.50 |
% |
(1) Includes average outstanding balances of loans
held for sale of $17.1 million, $24.4 million, and
$4.3 million for the three months ended December 31,
2020, September 30, 2020, and December 31, 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 Twelve Months Ended December 31, |
| |
2020 |
|
2019 |
| (dollars in thousands) |
AverageBalanceOutstanding |
|
InterestEarned/InterestPaid |
|
AverageYield/Rate |
|
AverageBalanceOutstanding |
|
InterestEarned/InterestPaid |
|
AverageYield/Rate |
| Assets |
|
|
|
|
|
|
|
|
|
|
|
| Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Loans(1,2) |
$ |
1,587,351 |
|
|
$ |
69,228 |
|
|
4.30 |
% |
|
$ |
1,388,702 |
|
|
$ |
64,570 |
|
|
4.59 |
% |
|
Securities - taxable |
287,591 |
|
|
4,598 |
|
|
1.60 |
% |
|
257,090 |
|
|
5,466 |
|
|
2.13 |
% |
|
Securities - tax-exempt |
128,416 |
|
|
3,003 |
|
|
2.34 |
% |
|
75,385 |
|
|
1,775 |
|
|
2.35 |
% |
|
Federal funds sold |
67,328 |
|
|
207 |
|
|
0.30 |
% |
|
34,637 |
|
|
753 |
|
|
2.14 |
% |
|
Interest-bearing balances due from banks |
129,090 |
|
|
322 |
|
|
0.25 |
% |
|
51,694 |
|
|
1,127 |
|
|
2.15 |
% |
|
Nonmarketable equity securities |
2,842 |
|
|
20 |
|
|
0.71 |
% |
|
1,330 |
|
|
23 |
|
|
1.69 |
% |
|
Investment in trusts |
— |
|
|
— |
|
|
— |
% |
|
181 |
|
|
11 |
|
|
6.34 |
% |
|
Total interest-earning assets |
2,202,618 |
|
|
$ |
77,378 |
|
|
3.47 |
% |
|
1,809,019 |
|
|
$ |
73,725 |
|
|
4.03 |
% |
| Allowance for loan losses |
(15,192 |
) |
|
|
|
|
|
(13,444 |
) |
|
|
|
|
| Noninterest earning
assets |
125,028 |
|
|
|
|
|
|
107,390 |
|
|
|
|
|
|
Total assets |
$ |
2,312,454 |
|
|
|
|
|
|
$ |
1,902,965 |
|
|
|
|
|
| Liabilities and
Stockholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing transaction deposits |
$ |
877,836 |
|
|
$ |
2,824 |
|
|
0.32 |
% |
|
$ |
739,554 |
|
|
$ |
3,898 |
|
|
0.53 |
% |
|
Time deposits |
333,260 |
|
|
5,538 |
|
|
1.66 |
% |
|
335,024 |
|
|
5,803 |
|
|
1.73 |
% |
|
Total interest-bearing deposits |
1,211,096 |
|
|
8,362 |
|
|
0.69 |
% |
|
1,074,578 |
|
|
9,701 |
|
|
0.90 |
% |
|
Junior subordinated debentures |
— |
|
|
— |
|
|
— |
% |
|
6,017 |
|
|
385 |
|
|
6.39 |
% |
|
Other borrowings |
4,664 |
|
|
16 |
|
|
0.35 |
% |
|
5 |
|
|
— |
|
|
2.80 |
% |
|
Total interest-bearing liabilities |
1,215,760 |
|
|
$ |
8,378 |
|
|
0.69 |
% |
|
1,080,600 |
|
|
$ |
10,086 |
|
|
0.93 |
% |
| Noninterest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits |
807,528 |
|
|
|
|
|
|
577,701 |
|
|
|
|
|
|
Accrued interest and other liabilities |
18,192 |
|
|
|
|
|
|
16,118 |
|
|
|
|
|
|
Total noninterest-bearing liabilities: |
825,720 |
|
|
|
|
|
|
593,819 |
|
|
|
|
|
| Stockholders’ equity |
270,974 |
|
|
|
|
|
|
228,546 |
|
|
|
|
|
|
Total liabilities and stockholders’ equity |
$ |
2,312,454 |
|
|
|
|
|
|
$ |
1,902,965 |
|
|
|
|
|
| Net interest income |
|
|
$ |
69,000 |
|
|
|
|
|
|
$ |
63,639 |
|
|
|
| Net interest spread |
|
|
|
|
2.78 |
% |
|
|
|
|
|
3.10 |
% |
| Net interest margin |
|
|
|
|
3.09 |
% |
|
|
|
|
|
3.47 |
% |
| Net interest margin
FTE(3) |
|
|
|
|
3.14 |
% |
|
|
|
|
|
3.52 |
% |
| Cost of deposits |
|
|
|
|
0.41 |
% |
|
|
|
|
|
0.59 |
% |
| Cost of funds |
|
|
|
|
0.38 |
% |
|
|
|
|
|
0.56 |
% |
(1) Includes average outstanding balances of loans
held for sale of $14.2 million and $4.1 million for the year ended
December 31, 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 twelve months ended December 31,
2020 and 2019. |
| |
|
| |
For the Twelve Months Ended December 31, |
| |
2020 |
|
2019 |
| (dollars in thousands) |
AverageBalanceOutstanding |
|
Interest/FeesEarned |
|
AverageYield |
|
AverageBalanceOutstanding |
|
Interest/FeesEarned |
|
AverageYield |
|
Loans(1,2) |
$ |
1,587,351 |
|
|
$ |
69,228 |
|
|
4.30 |
% |
|
$ |
1,388,702 |
|
|
$ |
64,570 |
|
|
4.59 |
% |
|
Less: PPP loans, net |
|
|
|
|
|
|
|
|
|
|
|
|
Average |
127,410 |
|
|
|
|
|
|
— |
|
|
|
|
|
|
Interest |
|
|
1,351 |
|
|
|
|
|
|
— |
|
|
|
|
Fees |
|
|
4,211 |
|
|
|
|
|
|
— |
|
|
|
|
Total PPP loans, net |
127,410 |
|
|
5,562 |
|
|
4.35 |
% |
|
— |
|
|
— |
|
|
— |
% |
|
Non-PPP loans (non-GAAP)(4) |
$ |
1,459,941 |
|
|
$ |
63,666 |
|
|
4.29 |
% |
|
$ |
1,388,702 |
|
|
$ |
64,570 |
|
|
4.59 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
| Ratios excluding PPP loans,
net (non-GAAP)(4) |
|
|
|
|
|
|
|
|
|
|
|
|
Net interest spread |
|
|
|
|
2.72 |
% |
|
|
|
|
|
3.10 |
% |
|
Net interest margin |
|
|
|
|
3.01 |
% |
|
|
|
|
|
3.47 |
% |
|
Net interest margin FTE(3) |
|
|
|
|
3.07 |
% |
|
|
|
|
|
3.52 |
% |
(1) Includes average outstanding balances of loans
held for sale of $14.2 million and $4.1 million for the year ended
December 31, 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.
|
|
|
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(UNAUDITED) |
| |
| (dollars in thousands except
per share data) |
December 31,2020 |
|
September 30,2020 |
|
December 31,2019 |
| Tangible common equity |
|
|
|
|
|
|
Total stockholders' equity |
$ |
285,478 |
|
|
$ |
278,078 |
|
|
$ |
251,898 |
|
|
Adjustments: |
|
|
|
|
|
|
Intangible assets |
(1,546 |
) |
|
(1,546 |
) |
|
(1,546 |
) |
|
Total tangible common equity (non-GAAP) |
$ |
283,932 |
|
|
$ |
276,532 |
|
|
$ |
250,352 |
|
| Common shares outstanding |
7,325,333 |
|
|
7,325,333 |
|
|
7,306,221 |
|
| Book value per common
share |
$ |
38.97 |
|
|
$ |
37.96 |
|
|
$ |
34.48 |
|
| Tangible book value per common
share (non-GAAP) |
$ |
38.76 |
|
|
$ |
37.75 |
|
|
$ |
34.27 |
|
| |
|
|
|
|
|
| Tangible assets |
|
|
|
|
|
|
Total assets |
$ |
2,642,634 |
|
|
$ |
2,490,928 |
|
|
$ |
1,988,225 |
|
|
Adjustments: |
|
|
|
|
|
|
Intangible assets |
(1,546 |
) |
|
(1,546 |
) |
|
(1,546 |
) |
|
Total tangible assets (non-GAAP) |
$ |
2,641,088 |
|
|
$ |
2,489,382 |
|
|
$ |
1,986,679 |
|
| Total stockholders' equity to
assets |
10.80 |
% |
|
11.16 |
% |
|
12.67 |
% |
| Tangible common equity to
tangible assets (non-GAAP) |
10.75 |
% |
|
11.11 |
% |
|
12.60 |
% |
| |
|
|
|
|
|
| Non-PPP loans HFI |
|
|
|
|
|
|
Loans HFI |
$ |
1,588,446 |
|
|
$ |
1,649,272 |
|
|
$ |
1,438,924 |
|
|
Adjustments: |
|
|
|
|
|
|
PPP loans, net |
(118,447 |
) |
|
(193,532 |
) |
|
— |
|
|
Non-PPP loans HFI (non-GAAP) |
$ |
1,469,999 |
|
|
$ |
1,455,740 |
|
|
$ |
1,438,924 |
|
| |
|
|
|
|
|
| Assets excluding PPP loans,
net |
|
|
|
|
|
|
Assets |
$ |
2,642,634 |
|
|
$ |
2,490,928 |
|
|
$ |
1,988,225 |
|
|
Adjustments: |
|
|
|
|
|
|
PPP loans, net |
(118,447 |
) |
|
(193,532 |
) |
|
— |
|
|
Assets excluding PPP loans, net (non-GAAP) |
$ |
2,524,187 |
|
|
$ |
2,297,396 |
|
|
$ |
1,988,225 |
|
| |
|
|
|
|
|
| Allowance for loan losses |
$ |
17,951 |
|
|
$ |
16,192 |
|
|
$ |
13,937 |
|
| Deposits |
$ |
2,340,360 |
|
|
$ |
2,193,940 |
|
|
$ |
1,721,120 |
|
| |
|
|
|
|
|
| Loans HFI to deposits
ratio |
67.87 |
% |
|
75.17 |
% |
|
83.60 |
% |
| Non-PPP loans HFI to deposits
ratio (non-GAAP) |
62.81 |
% |
|
66.35 |
% |
|
83.60 |
% |
| |
|
|
|
|
|
| Allowance for loan losses to
loans HFI |
1.13 |
% |
|
0.98 |
% |
|
0.97 |
% |
| Allowance for loan losses to
non-PPP loans HFI (non-GAAP) |
1.22 |
% |
|
1.11 |
% |
|
0.97 |
% |
Red River Bancshares (NASDAQ:RRBI)
Historical Stock Chart
From Oct 2024 to Nov 2024
Red River Bancshares (NASDAQ:RRBI)
Historical Stock Chart
From Nov 2023 to Nov 2024
