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 2021.
Net income for the fourth quarter of 2021 was
$8.5 million, or $1.17 per diluted common share ("EPS"), an
increase of $372,000, or 4.6%, compared to $8.1 million, or $1.12
EPS, for the third quarter of 2021, and an increase of $1.2
million, or 17.2%, compared to $7.3 million, or $0.99 EPS, for the
fourth quarter of 2020. For the fourth quarter of 2021, the
quarterly return on assets was 1.09% and the quarterly return on
equity was 11.33%.
Net income for the year ended December 31,
2021, was $33.0 million, or $4.51 EPS, an increase of $4.8 million,
or 17.1%, compared to $28.1 million, or $3.83 EPS, for the year
ended December 31, 2020. For the year ended December 31,
2021, the return on assets was 1.13% and the return on equity was
11.21%.
Fourth Quarter and Year-End 2021
Performance and Operational Highlights
In the fourth quarter of 2021, the Company had
robust deposit and asset growth, solid earnings, and a continued
high level of liquidity. The Company began providing banking
services in New Orleans, Louisiana, our newest market, through a
combined loan and deposit production office ("LPO/DPO"). The
Company also finalized a large private stock repurchase that
completed the stock repurchase program announced on August 31,
2021.
The fourth quarter of 2021 began with a
declining trend of COVID-19 cases and hospitalizations in the
Louisiana markets served by Red River Bank. However, as a result of
the emergence of the Omicron variant in December 2021, the number
of cases and hospitalizations increased toward the end of the
quarter. Economic activity in Louisiana remained relatively stable,
although the economy is still impacted by supply chain disruptions
and labor shortages.
- Net income for the
fourth quarter of 2021 was $8.5 million, $372,000 higher than the
prior quarter, primarily due to higher net interest income,
partially offset by higher personnel expenses.
- Assets increased $203.9 million in the
fourth quarter of 2021 to $3.22 billion as of December 31, 2021,
primarily driven by a $205.8 million increase in deposits. The
deposit growth was largely the result of customers maintaining
higher deposit balances and the seasonal inflow of funds from
public entity customers.
- Net interest income for the fourth
quarter of 2021 was $18.8 million, $666,000 higher than the prior
quarter. This increase was primarily due to deploying funds into
loans and securities.
- Personnel expenses for the fourth
quarter of 2021 were $8.4 million, $406,000 higher than the prior
quarter. This increase was primarily due to adding new staff in
connection with our expansion in new and existing markets.
- There was $196,000 of nonrecurring
gains on sales of properties in the fourth quarter of 2021.
- Red River Bank is participating in the
Small Business Administration ("SBA") Paycheck Protection Program
("PPP"). As of December 31, 2021, PPP loans were $17.6 million, net
of $626,000 of deferred income, or 1.0% of loans held for
investment ("HFI"). In the fourth quarter of 2021, forgiveness
payments on PPP loans resulted in a $28.4 million decrease in PPP
loans, net of deferred fees. PPP loan income for the fourth quarter
of 2021 was $1.2 million, $155,000 lower than the prior quarter.
PPP loan income for 2021 was $5.8 million, compared to $5.6 million
for 2020.
- As of December 31, 2021, non-PPP loans
HFI were $1.67 billion,(1) an increase of $89.7 million, or 5.7%,
from September 30, 2021. The growth in non-PPP loans HFI was a
result of new loans in New Orleans, our newest market, and
increased loan activity in other markets.
- Nonperforming assets ("NPA(s)")
decreased $1.4 million in the fourth quarter and were $979,000, or
0.03% of assets as of December 31, 2021. As of December 31, 2021,
the allowance for loan losses ("ALL") was $19.2 million, or 1.14%
of loans HFI and 1.15%(1) of non-PPP loans HFI (non-GAAP).
- We paid a quarterly cash dividend of
$0.07 per common share.
- In the third quarter
of 2021, the board of directors renewed a stock repurchase program,
authorizing the Company to purchase up to $5.0 million of
outstanding shares of common stock between September 1, 2021 and
August 31, 2022. In accordance with this stock repurchase program,
in the fourth quarter of 2021 we entered into a
privately-negotiated stock repurchase agreement and repurchased
96,245 shares of our common stock for $4.9 million. As a result of
this transaction, the Company has purchased the full amount
authorized by this stock repurchase program.
- In the fourth
quarter of 2021, as part of our continued Louisiana market
expansion plan, we began operations in our newest market, New
Orleans, Louisiana. We have hired a New Orleans market president
and seven additional New Orleans bankers. On December 6, 2021, we
opened an LPO/DPO in downtown New Orleans and began providing
banking services in this new market.
- In our Acadiana
market, renovations have been completed on a new banking center
location that we purchased in 2020. This location opened as the
first Red River Bank full-service banking center in Lafayette,
Louisiana on January 26, 2022. Red River Bank also has an LPO/DPO
in the Acadiana market.
Blake Chatelain, President and Chief Executive
Officer, stated, "The fourth quarter of 2021 resulted in robust
balance sheet growth, consistent performance, improved asset
quality, continued execution of our organic growth plans, and a
significant stock buyback transaction.
"Deposits and assets increased significantly in
the fourth quarter of 2021 due to customers maintaining higher
deposit balances and the seasonal inflow of public entity funds.
Loan growth faced headwinds with loan paydowns and payoffs;
however, these challenges were offset by lending opportunities in
our newer markets and our lenders' calling activity. This activity
resulted in a 5.7% increase in non-PPP loans in the fourth quarter
of 2021.
"In December 2021, we opened an LPO/DPO in the
New Orleans downtown business district, and our bankers are seeing
steady activity already. In addition to a team of eight local
bankers hired for the New Orleans market, we were pleased to add an
additional, experienced commercial lender in our Northshore
market.
"In our Acadiana market, we were excited to have
opened our first full-service banking center in Lafayette in
January 2022.
"As a result of having the stock buyback
program, we were able to repurchase a large block of shares in a
privately-negotiated transaction. This transaction utilized all of
the funds in the existing stock repurchase program. We expect to
execute a new stock repurchase program in the first quarter of
2022, subject to board approval and market conditions.
"We are saddened by the loss of our longtime
friend and founding director of the Company and the Bank, Barry
Hines, who passed away in late December 2021. Barry made tremendous
contributions to the Company and the Bank, and his wit, wisdom,
counsel, and love of life will be greatly missed.
"As we begin 2022, I want to recognize the Red
River Bank team members who made 2021 a successful year. They
worked tirelessly through many challenges to take care of our
customers and to continue to build a strong, solid, community bank
focused on building shareholder value. Also, on behalf of the Red
River Bancshares, Inc. board of directors, I want to thank our
shareholders for their loyalty, enthusiasm, and support over the
years. We look forward to continued success in 2022 and
beyond."
Net Interest Income and Net Interest
Margin FTE
Net interest income increased and the net
interest margin fully tax equivalent ("FTE") decreased for the
fourth quarter of 2021 when compared to the prior quarter. These
measures were both impacted by a continued high level of liquidity
and the continued low interest rate environment.
Net interest income for the fourth quarter of
2021 was $18.8 million, which was $666,000, or 3.7%, higher than
the third quarter of 2021, due to a $633,000 increase in interest
and dividend income and a $33,000 decrease in interest expense. The
increase in interest and dividend income was primarily due to an
increase in non-PPP loan income and an increase in securities
income, partially offset by a decrease in PPP loan income. Non-PPP
loan income increased $577,000 due to a $69.7 million increase in
the average balance of non-PPP loans, partially offset by lower
rates on new and renewed non-PPP loans. Securities income increased
$192,000 due to a higher average balance of securities resulting
from investing short-term liquid assets into securities, partially
offset by the impact of lower yields compared to the prior quarter.
PPP loan income decreased $155,000 due to a lower average balance
of PPP loans outstanding and lower fees recognized to income on PPP
loans. Interest expense decreased in the fourth quarter of 2021 as
a result of our third quarter adjustment to rates, which impacted
new and renewing time deposits, partially offset by an increase in
the average balance of interest-bearing transaction deposits.
The net interest margin FTE decreased eight
basis points ("bp(s)") to 2.52% for the fourth quarter of 2021,
compared to 2.60% for the prior quarter. Contributing to this
decrease was an increase in the average balance of short-term
liquid assets, an 11 bp decrease in the yield on securities, and a
three bp decrease in the yield on non-PPP loans. Average short-term
liquid assets were $701.0 million, which was $68.7 million, or
10.9%, higher than the prior quarter and 23.4% of average earning
assets. In the fourth quarter of 2021, on a stand-alone basis, this
level of liquidity had a 73 bp dilutive impact to the net interest
margin FTE. The yield on securities decreased because we
reallocated funds from short-term liquid assets yielding 0.14% into
securities yielding 0.99%, which was a lower yield than the
existing portfolio. The net interest margin FTE for the fourth
quarter of 2021 benefited from an increase in PPP loan yield and a
seven bp decrease in the rate on time deposits as a result of our
third quarter adjustment to deposit rates, which impacted new and
renewing time deposits.
Average PPP loans outstanding, net of deferred
income, for the fourth quarter of 2021 were $29.2 million, which
was $34.0 million lower than the prior quarter. During the fourth
quarter we received $29.6 million in SBA forgiveness and borrower
repayments on PPP loans, compared to $37.7 million in the prior
quarter. PPP loans have a 1.0% interest rate, and PPP loan
origination fees are recorded to interest income over the loan
term, or until the loans are forgiven by the SBA or repaid by the
borrower. When PPP loan forgiveness payments or borrower payments
are received in full, the remaining portion of origination fees are
recorded to income. For the fourth quarter of 2021, PPP loan
interest and fees totaled $1.2 million, resulting in a 16.46%
yield, compared to $1.4 million in interest and fees and an 8.57%
yield for the prior quarter. The decrease in PPP loan income was
primarily due to a lower amount of PPP loans forgiven by the SBA in
the fourth quarter of 2021 than in the third quarter. The increase
in PPP loan yield was primarily due to forgiving loans with higher
origination fee percentages in the fourth quarter of 2021 when
compared to the prior quarter. As of December 31, 2021, deferred
PPP fees were $626,000.
Excluding PPP loan income, net interest income
(non-GAAP) for the fourth quarter of 2021 was $17.6 million,(1)
which was $821,000, or 4.9%, higher than the third quarter of 2021.
Also, with PPP loans excluded for the fourth quarter of 2021, the
yield on non-PPP loans (non-GAAP) was 3.90%,(1) and the net
interest margin FTE (non-GAAP) was 2.38%(1). For the fourth quarter
of 2021, PPP loans had a 23 bp accretive impact to the yield on
loans and a 14 bp accretive impact to the net interest margin
FTE.
The Federal Open Market Committee is expected to
raise the target federal funds rate several times in 2022. Our
balance sheet is asset sensitive, and historically, our deposit
interest rates have adjusted more slowly than the change in the
federal funds rate. As of December 31, 2021, floating rate loans
were 15.0% of loans HFI, and floating rate transaction deposits
were 4.4% of interest-bearing transaction deposits. Dependent upon
balance sheet activity and excluding PPP loans, we expect an
increasing rate environment to have a positive effect on our net
interest income and net interest margin FTE in 2022.
Provision for Loan Losses
The provision for loan losses for the fourth
quarter of 2021 was $150,000, which was consistent with the prior
quarter provision. The economic activity in Louisiana remained
relatively consistent, and our asset quality metrics improved in
both quarters. Provision expense was $1.9 million for 2021,
compared to $6.3 million for 2020. The provision for loan losses
was higher in 2020 due to economic pressures relating to the
COVID-19 pandemic.
Noninterest Income
Noninterest income totaled $5.7 million for the
fourth quarter of 2021, an increase of $29,000, or 0.5%, compared
to $5.6 million for the previous quarter. The increase was mainly
due to gains on sales of properties, partially offset by lower
mortgage loan income and reduced income from a Small Business
Investment Company ("SBIC") limited partnership of which Red River
Bank is a member.
Other income for the fourth quarter of 2021 was
$214,000, compared to a net loss of $14,000 for the third quarter
of 2021. In the fourth quarter of 2021, other real estate owned
("OREO") properties and a bank property were sold, resulting in a
nonrecurring $196,000 net gain on sale. In the third quarter of
2021, a $34,000 valuation reduction was recorded on an OREO
property.
Mortgage loan income totaled $1.7 million for
the fourth quarter of 2021, a decrease of $103,000, or 5.8%,
compared to $1.8 million for the third quarter of 2021. This
decrease was primarily the result of seasonal, reduced mortgage
loan demand.
SBIC income for the fourth quarter of 2021 was
$38,000, a decrease of $98,000, or 72.1%, from the prior quarter
due to lower operating income being distributed by the SBIC.
Operating Expenses
Operating expenses for the fourth quarter of
2021 totaled $14.0 million, an increase of $332,000, or 2.4%,
compared to $13.7 million for the previous quarter. This increase
was mainly due to higher personnel expenses, partially offset by
lower loan and deposit expenses and lower technology expenses.
Personnel expenses totaled $8.4 million for the
fourth quarter of 2021, up $406,000, or 5.1%, from the third
quarter of 2021. This increase was due to adding new staff in
expansion markets in the fourth quarter of 2021, combined with a
lower COVID-19 payroll benefit resulting from the expiration of
employer credits under the Families First Coronavirus Response Act
on September 30, 2021.
Loan and deposit expenses totaled $243,000 for
the fourth quarter of 2021, a decrease of $82,000, or 25.2%, from
the previous quarter. This decrease was a result of the transition
to a new appraisal tracking system in the second quarter of 2021,
which temporarily increased loan expenses in the third quarter of
2021. The new, digital appraisal system has improved the efficiency
of our appraisal process.
Technology expenses totaled $667,000 for the
fourth quarter of 2021, a decrease of $67,000, or 9.1%, from the
previous quarter. This decrease was due to $35,000 of nonrecurring
expenses in the third quarter of 2021 related to opening a new
banking center in Lake Charles, as well as lower communication
expenses in the fourth quarter of 2021 resulting from a more
favorable contract with a communications service provider.
Asset Overview
As of December 31, 2021, assets totaled
$3.22 billion, which was $203.9 million, or 6.8%, higher than $3.02
billion as of September 30, 2021. This increase was primarily due
to a $205.8 million increase in deposits in the fourth quarter.
Loans HFI increased $61.2 million, or 3.8%, in the fourth quarter
of 2021. Because deposit growth exceeded loan growth, excess funds
were deployed into securities and interest-bearing deposits in
other banks. Securities available-for-sale increased $91.0 million
to $659.2 million and were 21.1% of earning assets as of December
31, 2021. Interest-bearing deposits in other banks increased $67.8
million to $761.7 million and were 24.4% of earning assets as of
December 31, 2021. The loans HFI to deposits ratio was 57.86% as of
December 31, 2021, compared to 59.99% as of September 30,
2021.
Assets excluding PPP loans, net of deferred
income (non-GAAP) as of December 31, 2021, totaled $3.21
billion,(1) an increase of $232.3 million, or 7.8%, from $2.97
billion(1) as of September 30, 2021. The non-PPP loans HFI to
deposits ratio (non-GAAP) was 57.25%(1) as of December 31,
2021, compared to 58.29%(1) as of September 30, 2021.
Loans
Loans HFI as of December 31, 2021, were
$1.68 billion, an increase of $61.2 million, or 3.8%, from
September 30, 2021. As of December 31, 2021, non-PPP loans HFI
were $1.67 billion,(1) an increase of $89.7 million, or 5.7%, from
September 30, 2021, due to new loan activity in New Orleans, our
newest market, and increased activity in other markets.
Red River Bank began participating in the SBA
PPP in the second quarter of 2020. Through December 31, 2021,
we had received $198.6 million in SBA forgiveness and borrower
payments on 99.9% of the PPP First Draw loans originated and $40.6
million in SBA forgiveness and borrower payments on 78.7% of the
PPP Second Draw loans originated. As of December 31, 2021, PPP
loans totaled $17.6 million, net of $626,000 of deferred income,
and were 1.0% of loans HFI.
Our health care loans are made up of a
diversified portfolio of health care providers. As of
December 31, 2021, total health care credits were 8.3% of
non-PPP loans HFI (non-GAAP), nursing and residential care loans
were 3.6% of non-PPP loans HFI (non-GAAP), and loans to physician
and dental practices were 4.6% of non-PPP loans HFI (non-GAAP). The
average loan size of health care credits was $295,000.
On March 5, 2021, it was announced that certain
U.S. Dollar London Interbank Offered Rate ("LIBOR") rates would
cease to be published after June 30, 2023. As of December 31,
2021, 3.6% of our non-PPP loans HFI (non-GAAP) were LIBOR-based
with a setting that expires June 30, 2023. Alternative rate
language is present in each credit agreement with a LIBOR-based
rate. We do not anticipate any issues with transitioning each loan
to a non-LIBOR-based rate.
Asset Quality and Allowance for Loan
Losses
NPAs totaled $979,000 as of December 31,
2021, down $1.4 million, or 59.7%, from September 30, 2021,
primarily due to the payoff and charge-off of nonaccrual loans. The
ratio of NPAs to total assets improved to 0.03% as of
December 31, 2021, from 0.08% as of September 30, 2021.
As of December 31, 2021, the ALL was $19.2
million. The ratio of ALL to loans HFI was 1.14% as of
December 31, 2021, and 1.18% as of September 30, 2021. The
ratio of ALL to non-PPP loans HFI (non-GAAP) was 1.15%(1) as of
December 31, 2021, and 1.22%(1) as of September 30, 2021. The
net charge-off ratio was 0.01% for the fourth quarter of 2021 and
0.03% for the third quarter of 2021.
Deposits
Deposits as of December 31, 2021, were
$2.91 billion, an increase of $205.8 million, or 7.6%, compared to
September 30, 2021. Average deposits for the fourth quarter of 2021
were $2.79 billion, an increase of $188.6 million, or 7.3%, from
the prior quarter. This increase was primarily a result of
customers maintaining higher deposit balances and the seasonal
inflow of funds from public entity customers. Noninterest-bearing
deposits totaled $1.15 billion as of December 31, 2021, up
$6.0 million, or 0.5%, from September 30, 2021. As of
December 31, 2021, noninterest-bearing deposits were 39.50% of
total deposits. Interest-bearing deposits totaled $1.76 billion as
of December 31, 2021, up $199.8 million, or 12.8%, compared to
September 30, 2021.
Stockholders’ Equity
Total stockholders’ equity decreased to $298.2
million as of December 31, 2021, from $298.7 million as of
September 30, 2021. The $538,000 decrease in stockholders’ equity
during the fourth quarter of 2021 was attributed to the repurchase
of 96,245 shares of our common stock for $4.9 million, a $3.7
million, net of tax, market adjustment to accumulated other
comprehensive income related to securities available-for-sale, and
$502,000 in cash dividends, partially offset by $8.5 million of net
income, and $63,000 of stock compensation. We paid a quarterly cash
dividend of $0.07 per share on December 16, 2021.
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.
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 27 banking centers
throughout Louisiana and two combined loan and deposit production
offices, one each in Lafayette, Louisiana and New Orleans,
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; the Northshore, which includes Covington; and Acadiana, which
includes the Lafayette MSA.
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 Section 27A
of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. 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
(1) Non-GAAP financial measure. Calculations of this measure and
reconciliations to GAAP are included in the schedules accompanying
this release.
FINANCIAL HIGHLIGHTS (UNAUDITED) |
|
|
As of and for theThree Months
Ended |
|
As of and for theYear Ended |
(Dollars in thousands, except
per share data) |
December 31, 2021 |
|
September 30,2021 |
|
December 31, 2020 |
|
December 31, 2021 |
|
December 31, 2020 |
Net Income |
$ |
8,510 |
|
|
$ |
8,138 |
|
|
$ |
7,261 |
|
|
$ |
32,952 |
|
|
$ |
28,145 |
|
|
|
|
|
|
|
|
|
|
|
Per Common Share
Data: |
|
|
|
|
|
|
|
|
|
Earnings per share, basic |
$ |
1.18 |
|
|
$ |
1.12 |
|
|
$ |
0.99 |
|
|
$ |
4.53 |
|
|
$ |
3.84 |
|
Earnings per share, diluted |
$ |
1.17 |
|
|
$ |
1.12 |
|
|
$ |
0.99 |
|
|
$ |
4.51 |
|
|
$ |
3.83 |
|
Book value per share |
$ |
41.52 |
|
|
$ |
41.05 |
|
|
$ |
38.97 |
|
|
$ |
41.52 |
|
|
$ |
38.97 |
|
Tangible book value per share(1) |
$ |
41.31 |
|
|
$ |
40.84 |
|
|
$ |
38.76 |
|
|
$ |
41.31 |
|
|
$ |
38.76 |
|
Cash dividends per share |
$ |
0.07 |
|
|
$ |
0.07 |
|
|
$ |
0.06 |
|
|
$ |
0.28 |
|
|
$ |
0.24 |
|
Shares outstanding |
|
7,180,155 |
|
|
|
7,276,400 |
|
|
|
7,325,333 |
|
|
|
7,180,155 |
|
|
|
7,325,333 |
|
Weighted average shares outstanding, basic |
|
7,229,324 |
|
|
|
7,278,192 |
|
|
|
7,325,333 |
|
|
|
7,281,136 |
|
|
|
7,322,158 |
|
Weighted average shares outstanding, diluted |
|
7,247,277 |
|
|
|
7,294,011 |
|
|
|
7,343,859 |
|
|
|
7,299,720 |
|
|
|
7,345,045 |
|
|
|
|
|
|
|
|
|
|
|
Summary Performance
Ratios: |
|
|
|
|
|
|
|
|
|
Return on average assets |
|
1.09 |
% |
|
|
1.11 |
% |
|
|
1.13 |
% |
|
|
1.13 |
% |
|
|
1.22 |
% |
Return on average equity |
|
11.33 |
% |
|
|
10.83 |
% |
|
|
10.23 |
% |
|
|
11.21 |
% |
|
|
10.39 |
% |
Net interest margin |
|
2.46 |
% |
|
|
2.54 |
% |
|
|
3.01 |
% |
|
|
2.54 |
% |
|
|
3.09 |
% |
Net interest margin FTE |
|
2.52 |
% |
|
|
2.60 |
% |
|
|
3.08 |
% |
|
|
2.60 |
% |
|
|
3.14 |
% |
Efficiency ratio |
|
57.33 |
% |
|
|
57.61 |
% |
|
|
53.66 |
% |
|
|
56.39 |
% |
|
|
55.77 |
% |
Loans HFI to deposits ratio |
|
57.86 |
% |
|
|
59.99 |
% |
|
|
67.87 |
% |
|
|
57.86 |
% |
|
|
67.87 |
% |
Noninterest-bearing deposits to deposits ratio |
|
39.50 |
% |
|
|
42.29 |
% |
|
|
40.32 |
% |
|
|
39.50 |
% |
|
|
40.32 |
% |
Noninterest income to average assets |
|
0.72 |
% |
|
|
0.77 |
% |
|
|
0.97 |
% |
|
|
0.84 |
% |
|
|
1.00 |
% |
Operating expense to average assets |
|
1.79 |
% |
|
|
1.86 |
% |
|
|
2.08 |
% |
|
|
1.87 |
% |
|
|
2.22 |
% |
|
|
|
|
|
|
|
|
|
|
Summary Credit Quality
Ratios: |
|
|
|
|
|
|
|
|
|
Nonperforming assets to total assets |
|
0.03 |
% |
|
|
0.08 |
% |
|
|
0.16 |
% |
|
|
0.03 |
% |
|
|
0.16 |
% |
Nonperforming loans to loans HFI |
|
0.02 |
% |
|
|
0.09 |
% |
|
|
0.21 |
% |
|
|
0.02 |
% |
|
|
0.21 |
% |
Allowance for loan losses to loans HFI |
|
1.14 |
% |
|
|
1.18 |
% |
|
|
1.13 |
% |
|
|
1.14 |
% |
|
|
1.13 |
% |
Net charge-offs to average loans |
|
0.01 |
% |
|
|
0.03 |
% |
|
|
0.06 |
% |
|
|
0.04 |
% |
|
|
0.14 |
% |
|
|
|
|
|
|
|
|
|
|
Capital
Ratios: |
|
|
|
|
|
|
|
|
|
Total stockholders' equity to total assets |
|
9.25 |
% |
|
|
9.89 |
% |
|
|
10.80 |
% |
|
|
9.25 |
% |
|
|
10.80 |
% |
Tangible common equity to tangible assets (1) |
|
9.20 |
% |
|
|
9.84 |
% |
|
|
10.75 |
% |
|
|
9.20 |
% |
|
|
10.75 |
% |
Total risk-based capital to risk-weighted assets |
|
17.83 |
% |
|
|
18.74 |
% |
|
|
18.68 |
% |
|
|
17.83 |
% |
|
|
18.68 |
% |
Tier 1 risk-based capital to risk-weighted assets |
|
16.76 |
% |
|
|
17.60 |
% |
|
|
17.55 |
% |
|
|
16.76 |
% |
|
|
17.55 |
% |
Common equity Tier 1 capital to risk-weighted assets |
|
16.76 |
% |
|
|
17.60 |
% |
|
|
17.55 |
% |
|
|
16.76 |
% |
|
|
17.55 |
% |
Tier 1 risk-based capital to average assets |
|
9.67 |
% |
|
|
10.21 |
% |
|
|
10.92 |
% |
|
|
9.67 |
% |
|
|
10.92 |
% |
(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, 2021 |
|
September 30,2021 |
|
June 30, 2021 |
|
March 31, 2021 |
|
December 31, 2020 |
ASSETS |
|
|
|
|
|
|
|
|
|
Cash and due from banks |
$ |
23,143 |
|
|
$ |
36,614 |
|
|
$ |
33,728 |
|
|
$ |
36,856 |
|
|
$ |
29,537 |
|
Interest-bearing deposits in other banks |
|
761,721 |
|
|
|
693,950 |
|
|
|
633,744 |
|
|
|
566,144 |
|
|
|
417,664 |
|
Securities available-for-sale |
|
659,178 |
|
|
|
568,199 |
|
|
|
512,012 |
|
|
|
515,942 |
|
|
|
498,206 |
|
Equity securities |
|
7,846 |
|
|
|
7,920 |
|
|
|
3,961 |
|
|
|
3,951 |
|
|
|
4,021 |
|
Nonmarketable equity securities |
|
3,450 |
|
|
|
3,449 |
|
|
|
3,449 |
|
|
|
3,447 |
|
|
|
3,447 |
|
Loans held for sale |
|
4,290 |
|
|
|
8,782 |
|
|
|
12,291 |
|
|
|
18,449 |
|
|
|
29,116 |
|
Loans held for investment |
|
1,683,832 |
|
|
|
1,622,593 |
|
|
|
1,600,388 |
|
|
|
1,602,086 |
|
|
|
1,588,446 |
|
Allowance for loan losses |
|
(19,176 |
) |
|
|
(19,168 |
) |
|
|
(19,460 |
) |
|
|
(19,377 |
) |
|
|
(17,951 |
) |
Premises and equipment, net |
|
48,056 |
|
|
|
47,432 |
|
|
|
47,414 |
|
|
|
46,950 |
|
|
|
46,924 |
|
Accrued interest receivable |
|
6,245 |
|
|
|
5,927 |
|
|
|
6,039 |
|
|
|
6,460 |
|
|
|
6,880 |
|
Bank-owned life insurance |
|
28,061 |
|
|
|
27,886 |
|
|
|
27,710 |
|
|
|
22,546 |
|
|
|
22,413 |
|
Intangible assets |
|
1,546 |
|
|
|
1,546 |
|
|
|
1,546 |
|
|
|
1,546 |
|
|
|
1,546 |
|
Right-of-use assets |
|
3,743 |
|
|
|
3,847 |
|
|
|
3,950 |
|
|
|
4,053 |
|
|
|
4,154 |
|
Other assets |
|
12,775 |
|
|
|
11,807 |
|
|
|
11,704 |
|
|
|
11,619 |
|
|
|
8,231 |
|
Total Assets |
$ |
3,224,710 |
|
|
$ |
3,020,784 |
|
|
$ |
2,878,476 |
|
|
$ |
2,820,672 |
|
|
$ |
2,642,634 |
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits |
$ |
1,149,672 |
|
|
$ |
1,143,693 |
|
|
$ |
1,031,486 |
|
|
$ |
1,015,350 |
|
|
$ |
943,615 |
|
Interest-bearing deposits |
|
1,760,676 |
|
|
|
1,560,890 |
|
|
|
1,538,113 |
|
|
|
1,499,925 |
|
|
|
1,396,745 |
|
Total Deposits |
|
2,910,348 |
|
|
|
2,704,583 |
|
|
|
2,569,599 |
|
|
|
2,515,275 |
|
|
|
2,340,360 |
|
Accrued interest payable |
|
1,310 |
|
|
|
1,340 |
|
|
|
1,432 |
|
|
|
1,699 |
|
|
|
1,774 |
|
Lease liabilities |
|
3,842 |
|
|
|
3,943 |
|
|
|
4,042 |
|
|
|
4,138 |
|
|
|
4,233 |
|
Accrued expenses and other liabilities |
|
11,060 |
|
|
|
12,230 |
|
|
|
10,479 |
|
|
|
14,649 |
|
|
|
10,789 |
|
Total Liabilities |
|
2,926,560 |
|
|
|
2,722,096 |
|
|
|
2,585,552 |
|
|
|
2,535,761 |
|
|
|
2,357,156 |
|
COMMITMENTS AND
CONTINGENCIES |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
Preferred stock, no par value |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Common stock, no par value |
|
60,233 |
|
|
|
65,130 |
|
|
|
65,934 |
|
|
|
67,093 |
|
|
|
68,055 |
|
Additional paid-in capital |
|
1,814 |
|
|
|
1,751 |
|
|
|
1,692 |
|
|
|
1,638 |
|
|
|
1,545 |
|
Retained earnings |
|
239,876 |
|
|
|
231,868 |
|
|
|
224,240 |
|
|
|
216,511 |
|
|
|
208,957 |
|
Accumulated other comprehensive income (loss) |
|
(3,773 |
) |
|
|
(61 |
) |
|
|
1,058 |
|
|
|
(331 |
) |
|
|
6,921 |
|
Total Stockholders' Equity |
|
298,150 |
|
|
|
298,688 |
|
|
|
292,924 |
|
|
|
284,911 |
|
|
|
285,478 |
|
Total Liabilities and Stockholders' Equity |
$ |
3,224,710 |
|
|
$ |
3,020,784 |
|
|
$ |
2,878,476 |
|
|
$ |
2,820,672 |
|
|
$ |
2,642,634 |
|
RED RIVER BANCSHARES, INC. |
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) |
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
For the Year Ended |
(in thousands) |
December 31, 2021 |
|
September 30, 2021 |
|
December 31, 2020 |
|
December 31, 2021 |
|
December 31, 2020 |
INTEREST AND DIVIDEND
INCOME |
|
|
|
|
|
|
|
|
|
Interest and fees on loans |
$ |
17,415 |
|
|
$ |
16,993 |
|
|
$ |
18,605 |
|
|
$ |
67,923 |
|
|
$ |
69,228 |
Interest on securities |
|
2,412 |
|
|
|
2,220 |
|
|
|
1,834 |
|
|
|
8,660 |
|
|
|
7,601 |
Interest on federal funds sold |
|
21 |
|
|
|
20 |
|
|
|
28 |
|
|
|
88 |
|
|
|
207 |
Interest on deposits in other banks |
|
226 |
|
|
|
202 |
|
|
|
58 |
|
|
|
658 |
|
|
|
322 |
Dividends on stock |
|
1 |
|
|
|
7 |
|
|
|
1 |
|
|
|
10 |
|
|
|
20 |
Total Interest and Dividend Income |
|
20,075 |
|
|
|
19,442 |
|
|
|
20,526 |
|
|
|
77,339 |
|
|
|
77,378 |
INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
Interest on deposits |
|
1,300 |
|
|
|
1,333 |
|
|
|
1,865 |
|
|
|
5,617 |
|
|
|
8,362 |
Interest on other borrowed funds |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
16 |
Total Interest Expense |
|
1,300 |
|
|
|
1,333 |
|
|
|
1,865 |
|
|
|
5,617 |
|
|
|
8,378 |
Net Interest
Income |
|
18,775 |
|
|
|
18,109 |
|
|
|
18,661 |
|
|
|
71,722 |
|
|
|
69,000 |
Provision for loan losses |
|
150 |
|
|
|
150 |
|
|
|
2,675 |
|
|
|
1,900 |
|
|
|
6,293 |
Net Interest Income
After Provision for Loan Losses |
|
18,625 |
|
|
|
17,959 |
|
|
|
15,986 |
|
|
|
69,822 |
|
|
|
62,707 |
NONINTEREST INCOME |
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts |
|
1,318 |
|
|
|
1,258 |
|
|
|
1,107 |
|
|
|
4,775 |
|
|
|
4,108 |
Debit card income, net |
|
1,071 |
|
|
|
1,094 |
|
|
|
1,011 |
|
|
|
4,415 |
|
|
|
3,641 |
Mortgage loan income |
|
1,667 |
|
|
|
1,770 |
|
|
|
2,679 |
|
|
|
8,676 |
|
|
|
8,398 |
Brokerage income |
|
806 |
|
|
|
851 |
|
|
|
598 |
|
|
|
3,297 |
|
|
|
2,324 |
Loan and deposit income |
|
457 |
|
|
|
413 |
|
|
|
361 |
|
|
|
1,738 |
|
|
|
1,701 |
Bank-owned life insurance income |
|
175 |
|
|
|
176 |
|
|
|
143 |
|
|
|
648 |
|
|
|
568 |
Gain (Loss) on equity securities |
|
(75 |
) |
|
|
(41 |
) |
|
|
(11 |
) |
|
|
(175 |
) |
|
|
85 |
Gain (Loss) on sale and call of securities |
|
1 |
|
|
|
— |
|
|
|
93 |
|
|
|
194 |
|
|
|
1,441 |
SBIC income |
|
38 |
|
|
|
136 |
|
|
|
207 |
|
|
|
654 |
|
|
|
775 |
Other income (loss) |
|
214 |
|
|
|
(14 |
) |
|
|
5 |
|
|
|
271 |
|
|
|
126 |
Total Noninterest Income |
|
5,672 |
|
|
|
5,643 |
|
|
|
6,193 |
|
|
|
24,493 |
|
|
|
23,167 |
OPERATING EXPENSES |
|
|
|
|
|
|
|
|
|
Personnel expenses |
|
8,362 |
|
|
|
7,956 |
|
|
|
8,089 |
|
|
|
32,449 |
|
|
|
31,160 |
Occupancy and equipment expenses |
|
1,424 |
|
|
|
1,412 |
|
|
|
1,367 |
|
|
|
5,443 |
|
|
|
5,106 |
Technology expenses |
|
667 |
|
|
|
734 |
|
|
|
680 |
|
|
|
2,810 |
|
|
|
2,542 |
Advertising |
|
230 |
|
|
|
282 |
|
|
|
216 |
|
|
|
921 |
|
|
|
933 |
Other business development expenses |
|
280 |
|
|
|
283 |
|
|
|
238 |
|
|
|
1,169 |
|
|
|
1,020 |
Data processing expense |
|
537 |
|
|
|
528 |
|
|
|
493 |
|
|
|
1,982 |
|
|
|
1,905 |
Other taxes |
|
498 |
|
|
|
527 |
|
|
|
425 |
|
|
|
2,082 |
|
|
|
1,733 |
Loan and deposit expenses |
|
243 |
|
|
|
325 |
|
|
|
244 |
|
|
|
1,016 |
|
|
|
1,052 |
Legal and professional expenses |
|
493 |
|
|
|
453 |
|
|
|
554 |
|
|
|
1,683 |
|
|
|
2,141 |
Regulatory assessment expenses |
|
268 |
|
|
|
251 |
|
|
|
201 |
|
|
|
933 |
|
|
|
538 |
Other operating expenses |
|
1,014 |
|
|
|
933 |
|
|
|
829 |
|
|
|
3,767 |
|
|
|
3,276 |
Total Operating Expenses |
|
14,016 |
|
|
|
13,684 |
|
|
|
13,336 |
|
|
|
54,255 |
|
|
|
51,406 |
Income Before Income
Tax Expense |
|
10,281 |
|
|
|
9,918 |
|
|
|
8,843 |
|
|
|
40,060 |
|
|
|
34,468 |
Income tax expense |
|
1,771 |
|
|
|
1,780 |
|
|
|
1,582 |
|
|
|
7,108 |
|
|
|
6,323 |
Net
Income |
|
8,510 |
|
|
$ |
8,138 |
|
|
$ |
7,261 |
|
|
$ |
32,952 |
|
|
$ |
28,145 |
RED RIVER BANCSHARES, INC. |
NET INTEREST INCOME AND NET INTEREST MARGIN
(UNAUDITED) |
|
|
For the Three Months Ended |
|
December 31, 2021 |
|
September 30, 2021 |
|
December 31, 2020 |
(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) |
$ |
1,654,711 |
|
|
$ |
17,415 |
|
4.13 |
% |
|
$ |
1,619,019 |
|
|
$ |
16,993 |
|
4.11 |
% |
|
$ |
1,635,103 |
|
|
$ |
18,605 |
|
4.47 |
% |
Securities - taxable |
|
423,724 |
|
|
|
1,347 |
|
1.27 |
% |
|
|
340,045 |
|
|
|
1,181 |
|
1.39 |
% |
|
|
303,689 |
|
|
|
873 |
|
1.15 |
% |
Securities - tax-exempt |
|
210,263 |
|
|
|
1,065 |
|
2.03 |
% |
|
|
203,046 |
|
|
|
1,039 |
|
2.05 |
% |
|
|
169,621 |
|
|
|
961 |
|
2.27 |
% |
Federal funds sold |
|
55,342 |
|
|
|
21 |
|
0.15 |
% |
|
|
52,589 |
|
|
|
20 |
|
0.15 |
% |
|
|
80,175 |
|
|
|
28 |
|
0.14 |
% |
Interest-bearing balances due from banks |
|
645,627 |
|
|
|
226 |
|
0.14 |
% |
|
|
579,698 |
|
|
|
202 |
|
0.14 |
% |
|
|
239,953 |
|
|
|
58 |
|
0.09 |
% |
Nonmarketable equity securities |
|
3,449 |
|
|
|
1 |
|
0.10 |
% |
|
|
3,448 |
|
|
|
7 |
|
0.81 |
% |
|
|
3,446 |
|
|
|
1 |
|
0.13 |
% |
Total interest-earning assets |
|
2,993,116 |
|
|
$ |
20,075 |
|
2.64 |
% |
|
|
2,797,845 |
|
|
$ |
19,442 |
|
2.73 |
% |
|
|
2,431,987 |
|
|
$ |
20,526 |
|
3.32 |
% |
Allowance for loan losses |
|
(19,164 |
) |
|
|
|
|
|
|
(19,343 |
) |
|
|
|
|
|
|
(16,653 |
) |
|
|
|
|
Noninterest-earning
assets |
|
130,268 |
|
|
|
|
|
|
|
135,697 |
|
|
|
|
|
|
|
131,220 |
|
|
|
|
|
Total assets |
$ |
3,104,220 |
|
|
|
|
|
|
$ |
2,914,199 |
|
|
|
|
|
|
$ |
2,546,554 |
|
|
|
|
|
Liabilities and Stockholders’ Equity |
Interest-bearing
liabilities: |
Interest-bearing transaction deposits |
$ |
1,310,430 |
|
|
$ |
410 |
|
0.12 |
% |
|
$ |
1,210,605 |
|
|
$ |
384 |
|
0.13 |
% |
|
$ |
983,992 |
|
|
$ |
610 |
|
0.25 |
% |
Time deposits |
|
341,445 |
|
|
|
890 |
|
1.03 |
% |
|
|
342,872 |
|
|
|
949 |
|
1.10 |
% |
|
|
333,575 |
|
|
|
1,255 |
|
1.50 |
% |
Total interest-bearing deposits |
|
1,651,875 |
|
|
|
1,300 |
|
0.31 |
% |
|
|
1,553,477 |
|
|
|
1,333 |
|
0.34 |
% |
|
|
1,317,567 |
|
|
|
1,865 |
|
0.56 |
% |
Other borrowings |
|
— |
|
|
|
— |
|
— |
% |
|
|
— |
|
|
|
— |
|
— |
% |
|
|
— |
|
|
|
— |
|
— |
% |
Total interest-bearing liabilities |
|
1,651,875 |
|
|
$ |
1,300 |
|
0.31 |
% |
|
|
1,553,477 |
|
|
$ |
1,333 |
|
0.34 |
% |
|
|
1,317,567 |
|
|
$ |
1,865 |
|
0.56 |
% |
Noninterest-bearing liabilities: |
Noninterest-bearing deposits |
|
1,136,342 |
|
|
|
|
|
|
|
1,046,139 |
|
|
|
|
|
|
|
927,123 |
|
|
|
|
|
Accrued interest and other liabilities |
|
18,050 |
|
|
|
|
|
|
|
16,570 |
|
|
|
|
|
|
|
19,468 |
|
|
|
|
|
Total noninterest-bearing liabilities |
|
1,154,392 |
|
|
|
|
|
|
|
1,062,709 |
|
|
|
|
|
|
|
946,591 |
|
|
|
|
|
Stockholders’ equity |
|
297,953 |
|
|
|
|
|
|
|
298,013 |
|
|
|
|
|
|
|
282,396 |
|
|
|
|
|
Total liabilities and stockholders’ equity |
$ |
3,104,220 |
|
|
|
|
|
|
$ |
2,914,199 |
|
|
|
|
|
|
$ |
2,546,554 |
|
|
|
|
|
Net interest
income |
|
$ |
18,775 |
|
|
|
|
|
$ |
18,109 |
|
|
|
|
|
$ |
18,661 |
|
|
Net interest
spread |
|
|
|
2.33 |
% |
|
|
|
|
|
2.39 |
% |
|
|
|
|
|
2.76 |
% |
Net interest
margin |
|
|
|
2.46 |
% |
|
|
|
|
|
2.54 |
% |
|
|
|
|
|
3.01 |
% |
Net interest
margin FTE(3) |
|
|
|
2.52 |
% |
|
|
|
|
|
2.60 |
% |
|
|
|
|
|
3.08 |
% |
Cost of
deposits |
|
|
|
0.18 |
% |
|
|
|
|
|
0.20 |
% |
|
|
|
|
|
0.33 |
% |
Cost of funds |
|
|
|
0.17 |
% |
|
|
|
|
|
0.19 |
% |
|
|
|
|
|
0.31 |
% |
(1) |
|
Includes average outstanding
balances of loans held for sale of $6.1 million,
$7.2 million, and $17.1 million for the three months
ended December 31, 2021, September 30, 2021, and
December 31, 2020, 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, NET 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
income and net interest ratios excluding PPP loans (non-GAAP) for
the three months ended December 31, 2021, September 30, 2021,
and December 31, 2020. |
|
|
|
For the Three Months Ended |
|
December 31, 2021 |
|
September 30, 2021 |
|
December 31, 2020 |
(dollars in thousands) |
AverageBalanceOutstanding |
|
Interest/FeesEarned |
|
AverageYield |
|
AverageBalanceOutstanding |
|
Interest/FeesEarned |
|
AverageYield |
|
AverageBalanceOutstanding |
|
Interest/FeesEarned |
|
AverageYield |
Loans(1,2) |
$ |
1,654,711 |
|
$ |
17,415 |
|
|
4.13 |
% |
|
$ |
1,619,019 |
|
$ |
16,993 |
|
|
4.11 |
% |
|
$ |
1,635,103 |
|
$ |
18,605 |
|
|
4.47 |
% |
Less: PPP loans, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average |
|
29,191 |
|
|
|
|
|
|
63,205 |
|
|
|
|
|
|
161,109 |
|
|
|
|
Interest |
|
|
|
76 |
|
|
|
|
|
|
|
166 |
|
|
|
|
|
|
|
419 |
|
|
|
Fees |
|
|
|
1,136 |
|
|
|
|
|
|
|
1,201 |
|
|
|
|
|
|
|
2,604 |
|
|
|
Total PPP loans, net |
|
29,191 |
|
|
1,212 |
|
|
16.46 |
% |
|
|
63,205 |
|
|
1,367 |
|
|
8.57 |
% |
|
|
161,109 |
|
|
3,023 |
|
|
7.45 |
% |
Non-PPP loans (non-GAAP)(4) |
$ |
1,625,520 |
|
$ |
16,203 |
|
|
3.90 |
% |
|
$ |
1,555,814 |
|
$ |
15,626 |
|
|
3.93 |
% |
|
$ |
1,473,994 |
|
$ |
15,582 |
|
|
4.14 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income, excluding PPP loan income (non-GAAP) |
Net interest income |
|
|
$ |
18,775 |
|
|
|
|
|
|
$ |
18,109 |
|
|
|
|
|
|
$ |
18,661 |
|
|
|
PPP loan income |
|
|
|
(1,212 |
) |
|
|
|
|
|
|
(1,367 |
) |
|
|
|
|
|
|
(3,023 |
) |
|
|
Net interest income, excluding PPP loan income (non-GAAP)(4) |
|
|
$ |
17,563 |
|
|
|
|
|
|
$ |
16,742 |
|
|
|
|
|
|
$ |
15,638 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios excluding PPP loans, net (non-GAAP)(4) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest spread |
|
2.19 |
% |
|
|
|
|
|
2.26 |
% |
|
|
|
|
|
2.47 |
% |
Net interest margin |
|
2.33 |
% |
|
|
|
|
|
2.40 |
% |
|
|
|
|
|
2.70 |
% |
Net interest margin FTE(3) |
|
2.38 |
% |
|
|
|
|
|
2.46 |
% |
|
|
|
|
|
2.77 |
% |
(1) |
|
Includes average outstanding balances of loans held for sale of
$6.1 million, $7.2 million, and $17.1 million for
the three months ended December 31, 2021, September 30, 2021,
and December 31, 2020, 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.
Calculations of this measure and reconciliations to GAAP are
included in the schedules accompanying this release. |
RED RIVER BANCSHARES, INC. |
NET INTEREST INCOME AND NET INTEREST MARGIN
(UNAUDITED) |
|
|
For the Year Ended December 31, |
|
2021 |
|
2020 |
(dollars in thousands) |
AverageBalanceOutstanding |
|
InterestEarned/InterestPaid |
|
AverageYield/Rate |
|
AverageBalanceOutstanding |
|
InterestEarned/InterestPaid |
|
AverageYield/Rate |
Assets |
|
|
|
|
|
|
|
|
|
|
|
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
Loans(1,2) |
$ |
1,621,606 |
|
|
$ |
67,923 |
|
4.14 |
% |
|
$ |
1,587,351 |
|
|
$ |
69,228 |
|
4.30 |
% |
Securities - taxable |
|
344,913 |
|
|
|
4,493 |
|
1.30 |
% |
|
|
287,591 |
|
|
|
4,598 |
|
1.60 |
% |
Securities - tax-exempt |
|
202,255 |
|
|
|
4,167 |
|
2.06 |
% |
|
|
128,416 |
|
|
|
3,003 |
|
2.34 |
% |
Federal funds sold |
|
66,934 |
|
|
|
88 |
|
0.13 |
% |
|
|
67,328 |
|
|
|
207 |
|
0.30 |
% |
Interest-bearing balances due from banks |
|
552,501 |
|
|
|
658 |
|
0.12 |
% |
|
|
129,090 |
|
|
|
322 |
|
0.25 |
% |
Nonmarketable equity securities |
|
3,448 |
|
|
|
10 |
|
0.28 |
% |
|
|
2,842 |
|
|
|
20 |
|
0.71 |
% |
Total interest-earning assets |
|
2,791,657 |
|
|
$ |
77,339 |
|
2.74 |
% |
|
|
2,202,618 |
|
|
$ |
77,378 |
|
3.47 |
% |
Allowance for loan losses |
|
(19,155 |
) |
|
|
|
|
|
|
(15,192 |
) |
|
|
|
|
Noninterest-earning
assets |
|
132,611 |
|
|
|
|
|
|
|
125,028 |
|
|
|
|
|
Total assets |
$ |
2,905,113 |
|
|
|
|
|
|
$ |
2,312,454 |
|
|
|
|
|
Liabilities and
Stockholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing transaction deposits |
$ |
1,210,796 |
|
|
$ |
1,648 |
|
0.14 |
% |
|
$ |
877,836 |
|
|
$ |
2,824 |
|
0.32 |
% |
Time deposits |
|
341,746 |
|
|
|
3,969 |
|
1.16 |
% |
|
|
333,260 |
|
|
|
5,538 |
|
1.66 |
% |
Total interest-bearing deposits |
|
1,552,542 |
|
|
|
5,617 |
|
0.36 |
% |
|
|
1,211,096 |
|
|
|
8,362 |
|
0.69 |
% |
Other borrowings |
|
— |
|
|
|
— |
|
— |
% |
|
|
4,664 |
|
|
|
16 |
|
0.35 |
% |
Total interest-bearing liabilities |
|
1,552,542 |
|
|
$ |
5,617 |
|
0.36 |
% |
|
|
1,215,760 |
|
|
$ |
8,378 |
|
0.69 |
% |
Noninterest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits |
|
1,041,238 |
|
|
|
|
|
|
|
807,528 |
|
|
|
|
|
Accrued interest and other liabilities |
|
17,507 |
|
|
|
|
|
|
|
18,192 |
|
|
|
|
|
Total noninterest-bearing liabilities |
|
1,058,745 |
|
|
|
|
|
|
|
825,720 |
|
|
|
|
|
Stockholders’ equity |
|
293,826 |
|
|
|
|
|
|
|
270,974 |
|
|
|
|
|
Total liabilities and stockholders’ equity |
$ |
2,905,113 |
|
|
|
|
|
|
$ |
2,312,454 |
|
|
|
|
|
Net interest income |
|
|
$ |
71,722 |
|
|
|
|
|
$ |
69,000 |
|
|
Net interest spread |
|
|
|
|
2.38 |
% |
|
|
|
|
|
2.78 |
% |
Net interest margin |
|
|
|
|
2.54 |
% |
|
|
|
|
|
3.09 |
% |
Net interest margin
FTE(3) |
|
|
|
|
2.60 |
% |
|
|
|
|
|
3.14 |
% |
Cost of deposits |
|
|
|
|
0.22 |
% |
|
|
|
|
|
0.41 |
% |
Cost of funds |
|
|
|
|
0.20 |
% |
|
|
|
|
|
0.38 |
% |
(1) |
|
Includes average outstanding balances of loans held for sale of
$8.6 million and $14.2 million for the year ended December 31,
2021 and 2020, 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, NET 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
income and net interest ratios excluding PPP loans (non-GAAP) for
the year ended December 31, 2021 and 2020. |
|
|
|
For the Year Ended December 31, |
|
2021 |
|
2020 |
(dollars in thousands) |
AverageBalanceOutstanding |
|
Interest/FeesEarned |
|
AverageYield |
|
AverageBalanceOutstanding |
|
Interest/FeesEarned |
|
AverageYield |
Loans(1,2) |
$ |
1,621,606 |
|
$ |
67,923 |
|
|
4.14 |
% |
|
$ |
1,587,351 |
|
$ |
69,228 |
|
|
4.30 |
% |
Less: PPP loans, net |
|
|
|
|
|
|
|
|
|
|
|
Average |
|
77,222 |
|
|
|
|
|
|
127,410 |
|
|
|
|
Interest |
|
|
|
809 |
|
|
|
|
|
|
|
1,351 |
|
|
|
Fees |
|
|
|
4,964 |
|
|
|
|
|
|
|
4,211 |
|
|
|
Total PPP loans, net |
|
77,222 |
|
|
5,773 |
|
|
7.46 |
% |
|
|
127,410 |
|
|
5,562 |
|
|
4.35 |
% |
Non-PPP loans (non-GAAP)(4) |
$ |
1,544,384 |
|
$ |
62,150 |
|
|
3.97 |
% |
|
$ |
1,459,941 |
|
$ |
63,666 |
|
|
4.29 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income, excluding PPP loan income (non-GAAP) |
Net interest income |
|
|
$ |
71,722 |
|
|
|
|
|
|
$ |
69,000 |
|
|
|
PPP loan income |
|
|
|
(5,773 |
) |
|
|
|
|
|
|
(5,562 |
) |
|
|
Net interest income, excluding PPP loan income (non-GAAP)(4) |
|
|
$ |
65,949 |
|
|
|
|
|
|
$ |
63,438 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios excluding PPP loans,
net (non-GAAP)(4) |
|
|
|
|
|
|
|
|
|
|
|
Net interest spread |
|
|
|
|
2.25 |
% |
|
|
|
|
|
2.72 |
% |
Net interest margin |
|
|
|
|
2.40 |
% |
|
|
|
|
|
3.01 |
% |
Net interest margin FTE(3) |
|
|
|
|
2.46 |
% |
|
|
|
|
|
3.07 |
% |
(1) |
|
Includes average outstanding balances of loans held for sale of
$8.6 million and $14.2 million for the year ended December 31,
2021 and 2020, 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.
Calculations of this measure and reconciliations to GAAP are
included in the schedules accompanying this release. |
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(UNAUDITED) |
|
(dollars in thousands, except
per share data) |
December 31,2021 |
|
September 30,2021 |
|
December 31,2020 |
Tangible common equity |
|
|
|
|
|
Total stockholders' equity |
$ |
298,150 |
|
|
$ |
298,688 |
|
|
$ |
285,478 |
|
Adjustments: |
|
|
|
|
|
Intangible assets |
|
(1,546 |
) |
|
|
(1,546 |
) |
|
|
(1,546 |
) |
Total tangible common equity (non-GAAP) |
$ |
296,604 |
|
|
$ |
297,142 |
|
|
$ |
283,932 |
|
Common shares outstanding |
|
7,180,155 |
|
|
|
7,276,400 |
|
|
|
7,325,333 |
|
Book value per common
share |
$ |
41.52 |
|
|
$ |
41.05 |
|
|
$ |
38.97 |
|
Tangible book value per common
share (non-GAAP) |
$ |
41.31 |
|
|
$ |
40.84 |
|
|
$ |
38.76 |
|
|
|
|
|
|
|
Tangible assets |
|
|
|
|
|
Total assets |
$ |
3,224,710 |
|
|
$ |
3,020,784 |
|
|
$ |
2,642,634 |
|
Adjustments: |
|
|
|
|
|
Intangible assets |
|
(1,546 |
) |
|
|
(1,546 |
) |
|
|
(1,546 |
) |
Total tangible assets (non-GAAP) |
$ |
3,223,164 |
|
|
$ |
3,019,238 |
|
|
$ |
2,641,088 |
|
Total stockholders' equity to
assets |
|
9.25 |
% |
|
|
9.89 |
% |
|
|
10.80 |
% |
Tangible common equity to
tangible assets (non-GAAP) |
|
9.20 |
% |
|
|
9.84 |
% |
|
|
10.75 |
% |
|
|
|
|
|
|
Non-PPP loans HFI |
|
|
|
|
|
Loans HFI |
$ |
1,683,832 |
|
|
$ |
1,622,593 |
|
|
$ |
1,588,446 |
|
Adjustments: |
|
|
|
|
|
PPP loans, net |
|
(17,550 |
) |
|
|
(45,962 |
) |
|
|
(118,447 |
) |
Non-PPP loans HFI (non-GAAP) |
$ |
1,666,282 |
|
|
$ |
1,576,631 |
|
|
$ |
1,469,999 |
|
|
|
|
|
|
|
Assets excluding PPP loans,
net |
|
|
|
|
|
Assets |
$ |
3,224,710 |
|
|
$ |
3,020,784 |
|
|
$ |
2,642,634 |
|
Adjustments: |
|
|
|
|
|
PPP loans, net |
|
(17,550 |
) |
|
|
(45,962 |
) |
|
|
(118,447 |
) |
Assets excluding PPP loans, net (non-GAAP) |
$ |
3,207,160 |
|
|
$ |
2,974,822 |
|
|
$ |
2,524,187 |
|
|
|
|
|
|
|
Allowance for loan losses |
$ |
19,176 |
|
|
$ |
19,168 |
|
|
$ |
17,951 |
|
Deposits |
$ |
2,910,348 |
|
|
$ |
2,704,583 |
|
|
$ |
2,340,360 |
|
|
|
|
|
|
|
Loans HFI to deposits
ratio |
|
57.86 |
% |
|
|
59.99 |
% |
|
|
67.87 |
% |
Non-PPP loans HFI to deposits
ratio (non-GAAP) |
|
57.25 |
% |
|
|
58.29 |
% |
|
|
62.81 |
% |
|
|
|
|
|
|
Allowance for loan losses to
loans HFI |
|
1.14 |
% |
|
|
1.18 |
% |
|
|
1.13 |
% |
Allowance for loan losses to
non-PPP loans HFI (non-GAAP) |
|
1.15 |
% |
|
|
1.22 |
% |
|
|
1.22 |
% |
Red River Bancshares (NASDAQ:RRBI)
Historical Stock Chart
From Jun 2024 to Jul 2024
Red River Bancshares (NASDAQ:RRBI)
Historical Stock Chart
From Jul 2023 to Jul 2024