Red River Bancshares, Inc. (the “Company”) (Nasdaq: RRBI), the
holding company for Red River Bank (the “Bank”), announced today
its unaudited financial results for the third quarter of 2023.
Net income for the third quarter of 2023 was $8.0 million, or
$1.12 per diluted common share (“EPS”), a decrease of $947,000, or
10.6%, compared to $9.0 million, or $1.25 EPS, for the second
quarter of 2023. For the third quarter of 2023, the quarterly
return on assets was 1.05%, and the quarterly return on equity was
11.15%.
Net income for the nine months ended September 30, 2023,
was $26.6 million, or $3.70 EPS, a decrease of $138,000, or 0.5%,
compared to $26.7 million, or $3.71 EPS, for the nine months ended
September 30, 2022. For the nine months ended
September 30, 2023, the return on assets was 1.18%, and the
return on equity was 12.71%.
Third Quarter
2023 Performance and Operational
Highlights
In the third quarter of 2023, the Company had higher deposits
and assets, increased liquidity and capital ratios, and reduced
earnings. Net income decreased mainly as a result of lower net
interest income. Stock repurchase activity increased compared to
the prior quarter.
- As of September 30, 2023, assets were
$3.07 billion, $39.0 million, or 1.3%, higher than June 30, 2023.
Total assets were impacted by a $95.7 million increase in deposits,
partially offset by the payoff of $60.0 million of Federal Home
Loan Bank (“FHLB”) advances.
- Deposits totaled $2.76 billion as of
September 30, 2023, an increase of $95.7 million, or 3.6%, compared
to $2.66 billion as of June 30, 2023. During the third quarter of
2023, commercial and public entity customers increased their
deposit balances with normal activity, while some consumer
customers moved funds from lower yielding categories to higher
yielding categories.
- As of September 30, 2023, loans held
for investment (“HFI”) were $1.95 billion, consistent with June 30,
2023. During the third quarter of 2023, new loan originations were
offset by loan payments and paydowns.
- As of September 30, 2023, total
securities were $675.3 million compared to $739.0 million as of
June 30, 2023. Securities decreased $63.7 million mainly due to
maturities and principal repayments, combined with a larger net
unrealized loss on securities available-for-sale (“AFS”).
- In the third quarter of 2023, the Bank
repaid $60.0 million in short-term borrowings from the FHLB.
- In the third quarter of 2023, average
liquid assets, which are cash and cash equivalents, increased $64.3
million to $246.2 million, compared to $182.0 million for the
second quarter of 2023. The liquid assets to assets ratio was
10.51% as of September 30, 2023.
- Net income for the third quarter of
2023 was $8.0 million, which was $947,000, or 10.6%, lower than the
prior quarter due to lower net interest income and lower Small
Business Investment Company (“SBIC”) income.
- Net interest income and net interest
margin fully tax equivalent (“FTE”) decreased in the third quarter
of 2023 compared to the prior quarter. Net interest income was
$20.7 million for the third quarter of 2023 compared to $21.5
million for the prior quarter. Net interest margin FTE was 2.78%
for the third quarter of 2023 compared to 2.96% for the prior
quarter. These decreases were mainly due to higher deposit costs
exceeding improved yields on earning assets.
- The current expected credit loss
(“CECL”) methodology became effective for the Bank on January 1,
2023. Provision expense was $185,000 for the third quarter of 2023
compared to $300,000 for the second quarter of 2023.
- As of September 30, 2023, nonperforming
assets (“NPA(s)”) were $2.1 million, or 0.07% of assets, and the
allowance for credit losses (“ACL”) was $21.2 million, or 1.09% of
loans HFI.
- Capital ratios increased in the third
quarter of 2023. The September 30, 2023 leverage ratio was 11.56%
and the equity to assets ratio was 9.20%.
- We paid a quarterly cash dividend of
$0.08 per common share in the third quarter of 2023.
- The 2023 stock repurchase program
authorizes us to purchase up to $5.0 million of our outstanding
shares of common stock from January 1, 2023 through December 31,
2023. In the third quarter of 2023, we repurchased 23,561 shares of
our common stock at an aggregate cost of $1.2 million, and we have
$2.9 million remaining that can be repurchased.
- On September 26, 2023, Red River Bank
held a groundbreaking ceremony for its third banking location in
the New Orleans, Louisiana market. Construction of this new banking
center is in process, and it is projected to open for business in
the third quarter of 2024.
Blake Chatelain, President and Chief Executive Officer stated,
“In the third quarter of 2023, we had core deposit growth, improved
liquidity, and higher capital ratios. As expected, net income was
lower than the prior quarter due to the impact of the interest rate
environment on net interest income.
“While total loans remained consistent, we were pleased with new
loan origination activity and rates on new and renewing loans.
Total loans were impacted by several customers selling their
businesses, which resulted in loan payoffs. We are pleased that
lending activity and requests have increased, and the loan pipeline
has expanded. For deposits, our commercial and public entity
deposit customers increased their deposit balances while
maintaining normal operating activity. Our consumer deposit
customers moved funds from lower yielding categories to higher
yielding time deposits. Overall, our balance sheet is in a solid
position with higher liquid asset levels and no borrowings or
brokered deposits.
“Net income trended lower mainly due to the interest rate
environment and deposit rate competition resulting in higher
deposit costs. In the fourth quarter of 2023, we expect assets
repricing into higher rate categories to benefit the net interest
margin.
“We were happy with the positive responses we had from the
groundbreaking ceremony of our future New Orleans banking center.
This event was attended by various local officials and community
leaders. This expansion shows our commitment to providing
full-service, Louisiana-based, community banking throughout
Louisiana. We expect this banking center to open for business in
mid-2024.
“We recognize that these are uncertain times in the world, and
conservative, prudent banking practices are our priority. In
Louisiana, various new, significant capital projects have been
announced, which should benefit our local economy and provide
opportunity for our growth.”
Liquidity
As of September 30, 2023, we had sufficient liquid assets
available and $1.49 billion from other liquidity sources.
Cash and cash equivalents were $322.2 million as of
September 30, 2023, and averaged $246.2 million for the third
quarter of 2023. The liquid assets to assets ratio was 10.51% as of
September 30, 2023.
Our securities portfolio is an alternative source for meeting
liquidity needs. The securities portfolio generates cash flow
through principal repayments, calls, and maturities, and certain
securities can be sold or used as collateral in borrowings that
allow for their conversion to cash. Securities AFS can generally be
sold, while securities HTM have significant restrictions related to
sales. As of September 30, 2023, we project receipt of
approximately $45.0 million of principal repayments and maturities
through December 31, 2023. As of September 30, 2023, approximately
$439.7 million, or 65.1%, of the securities portfolio was available
to be sold or used as collateral in borrowings as a liquidity
source.
FHLB advances may also be used to meet the Bank’s liquidity
needs. We currently are classified as having “blanket lien
collateral status,” which means that advances can be executed at
any time without further collateral requirements. As of
September 30, 2023, our net borrowing capacity from the FHLB
was $910.7 million.
In addition, in the third quarter the Bank pledged securities to
have borrowing access to the Federal Reserve Bank’s Discount Window
facility. As of September 30, 2023, our borrowing capacity through
this facility was $41.5 million.
Other sources available for meeting liquidity needs include
federal funds lines, repurchase agreements, and other lines of
credit. We maintain four federal funds lines of credit with
commercial banks, which allow us to borrow up to $95.0 million in
federal funds at a rate determined by the applicable commercial
bank at the time of borrowing. We also maintain an additional $6.0
million revolving line of credit at one of our correspondent banks.
As of September 30, 2023, we had total borrowing capacity of
$101.0 million through these combined funding sources.
The Bank can participate in the Federal Reserve Board’s Bank
Term Funding Program (”BTFP”) as an additional liquidity source. If
needed, the BTFP gives us the option to use eligible securities as
collateral for a loan of up to one year from the Federal
Reserve.
Net Interest Income and Net Interest Margin
FTE
Net interest income and net interest margin FTE for the third
quarter of 2023 continued to be impacted by the higher interest
rate environment. The Federal Open Market Committee (“FOMC”)
increased the federal funds rate 50 basis points (“bp(s)”) in the
first quarter, 25 bps in the second quarter, and 25 bps in the
third quarter. These increases were in addition to the 425 bp
increases in 2022. In the third quarter of 2023, higher deposit
costs exceeded improved yields on earning assets.
Net interest income for the third quarter of 2023 was $20.7
million, which was $785,000, or 3.6%, lower than the second quarter
of 2023, due to a $2.6 million increase in interest expense,
partially offset by a $1.9 million increase in interest and
dividend income. The increase in interest expense was due to higher
deposit rates and larger balances in higher cost deposit accounts.
The cost of deposits increased 37 bps to 1.40% for the third
quarter of 2023 from 1.03% for the prior quarter. The increase in
interest and dividend income was primarily due to higher interest
income on loans and short-term liquid assets. Loan income increased
$1.1 million due to higher rates on new, renewed, and floating rate
loans, combined with higher balances in loans HFI. The average rate
on new and renewed loans was 7.39% for the third quarter of 2023,
compared to 7.09% for the prior quarter. Interest income on
short-term liquid assets increased $1.0 million due to an increase
in these balances during the third quarter, combined with the
higher interest rate environment. Short-term liquid asset balances
increased, in part, due to securities cash flows that were
redeployed into higher earning short-term liquid assets.
The net interest margin FTE decreased 18 bps to 2.78% for the
third quarter of 2023, compared to 2.96% for the prior quarter.
This decrease was driven primarily by higher deposit rates as a
result of deposit rate pressures. We continued to experience a
change in the deposit mix due to customers moving deposits from
lower yielding categories to higher yielding categories. The rate
on time deposits increased 70 bps, and the rate on interest-bearing
transaction deposits increased 36 bps. The deposit mix shift,
combined with the higher rates on these accounts, increased the
total cost of deposits by 37 bps. The higher cost of deposits was
partially offset by a 32 bp increase in the yield on short-term
liquid assets and a 13 bp increase in the yield on loans, which
were driven by the higher interest rate environment.
The FOMC raised the federal funds rate by 25 bps at its July
2023 meeting. The current expectation is that it will keep the rate
consistent through December 2023. During the fourth quarter of
2023, we anticipate receiving approximately $45.0 million in cash
flows from our securities portfolio that we expect to redeploy into
higher yielding assets, which should benefit both net interest
income and net interest margin FTE. As of September 30, 2023,
floating rate loans were 11.6% of loans HFI, and floating rate
transaction deposits were 6.1% of interest-bearing transaction
deposits. Depending on balance sheet activity, movement in interest
rates, deposit rate pressure, and deposit mix shift, we expect the
net interest margin FTE to remain fairly consistent for the fourth
quarter of 2023.
Provision for Credit Losses
The provision for credit losses for the third quarter of 2023
was $185,000, which was $115,000 lower than the provision for
credit losses of $300,000 for the prior quarter. The provision in
the third quarter was due to potential economic challenges
resulting from the current inflationary environment, changing
monetary policy, and consistent loan balances. We will continue to
evaluate future provision needs in relation to current economic
situations, loan growth, trends in asset quality, forecasted
information, and other conditions influencing loss
expectations.
Noninterest Income
Noninterest income totaled $5.6 million for the third quarter of
2023, a decrease of $426,000, or 7.1%, compared to $6.0 million for
the previous quarter. The decrease was mainly due to lower SBIC
income, partially offset by higher brokerage income.
SBIC income for the third quarter of 2023 was $920,000, a
decrease of $460,000, or 33.3%, compared to $1.4 million for the
prior quarter. In the second quarter, the SBIC sold an investment,
which resulted in higher income. We expect this income to be lower
in future quarters.
Brokerage income increased $106,000, or 11.5%, to $1.0 million
for the third quarter of 2023, compared to $923,000 for the second
quarter of 2023. The higher income in the third quarter was largely
due to investing activities of new clients. Assets under management
were $978.3 million as of September 30, 2023.
Operating Expenses
Operating expenses for the third quarter of 2023 totaled $16.2
million, which was consistent with the previous quarter. Higher
occupancy and equipment expenses were offset by small decreases in
various other categories.
Occupancy and equipment expenses totaled $1.7 million for
the third quarter of 2023, an increase of $109,000, or 7.0%, from
the previous quarter. This increase was primarily due to having a
full quarter of expenses for the new operations center building and
the expansion of a banking center in the Southwest market, higher
facility maintenance expenses, and $25,000 of nonrecurring expenses
related to the renovation of the main office building in the third
quarter of 2023.
Asset Overview
As of September 30, 2023, assets were $3.07 billion,
compared to assets of $3.03 billion as of June 30, 2023, an
increase of $39.0 million, or 1.3%. In the third quarter, assets
were impacted by a $95.7 million, or 3.6%, increase in deposits,
partially offset by the payoff of $60.0 million of short-term
borrowings from the FHLB. During the third quarter of 2023, liquid
assets increased $100.1 million, or 45.1%, to $322.2 million and
were 10.51% of assets as of September 30, 2023. Total securities
decreased $63.7 million, or 8.6%, to $675.3 million in the third
quarter and were 22.02% of assets as of September 30, 2023. As of
September 30, 2023, loans HFI were $1.95 billion, consistent with
loans HFI as of June 30, 2023. The loans HFI to deposits ratio was
70.60% as of September 30, 2023, compared to 73.10% as of June
30, 2023.
Securities
Total securities as of September 30, 2023, were $675.3
million, a decrease of $63.7 million, or 8.6%, from June 30, 2023.
Securities decreased primarily due to maturities and principal
repayments exceeding purchases, combined with a larger net
unrealized loss on securities AFS.
The estimated fair value of securities AFS totaled $529.0
million, net of $83.3 million of unrealized loss, as of
September 30, 2023, compared to $588.5 million, net of $73.0
million of unrealized loss, as of June 30, 2023. As of
September 30, 2023, the amortized cost of securities
held-to-maturity (“HTM”) totaled $143.4 million compared to $146.6
million as of June 30, 2023. As of September 30, 2023,
securities HTM had an unrealized loss of $26.2 million compared to
$22.1 million as of June 30, 2023.
As of September 30, 2023, equity securities, which is an
investment in a CRA mutual fund consisting primarily of bonds,
totaled $2.8 million compared to $3.9 million as of June 30, 2023.
In the third quarter of 2023, we sold $1.0 million of the CRA
mutual fund.
Loans
Loans HFI as of September 30, 2023, totaled $1.95 billion,
which was consistent with June 30, 2023. In the third quarter of
2023, new loan originations were offset by loan payments and
paydowns.
|
Loans HFI by Category |
| |
September 30, 2023 |
|
June 30, 2023 |
| (dollars in thousands) |
Amount |
|
Percent |
|
Amount |
|
Percent |
| Real estate: |
|
|
|
|
|
|
|
|
Commercial real estate |
$ |
829,836 |
|
42.6 |
% |
|
$ |
819,260 |
|
42.1 |
% |
|
One-to-four family residential |
|
579,023 |
|
29.7 |
% |
|
|
565,725 |
|
29.1 |
% |
|
Construction and development |
|
119,647 |
|
6.1 |
% |
|
|
138,450 |
|
7.1 |
% |
| Commercial and industrial |
|
315,388 |
|
16.2 |
% |
|
|
320,257 |
|
16.4 |
% |
| SBA PPP, net of deferred
income |
|
10 |
|
— |
% |
|
|
13 |
|
— |
% |
| Tax-exempt |
|
74,703 |
|
3.9 |
% |
|
|
75,697 |
|
3.9 |
% |
| Consumer |
|
29,999 |
|
1.5 |
% |
|
|
28,229 |
|
1.4 |
% |
|
Total loans HFI |
$ |
1,948,606 |
|
100.0 |
% |
|
$ |
1,947,631 |
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate loans are collateralized by owner
occupied and non-owner occupied properties mainly in Louisiana.
Investor-owned office properties were $60.7 million, or 3.1% of
loans HFI, as of September 30, 2023, and are primarily centered in
low-rise suburban areas.
Health care loans are our largest industry concentration and are
made up of a diversified portfolio of health care providers. As of
September 30, 2023, total health care loans were 7.5% of loans
HFI. Within the health care sector, loans to nursing and
residential care facilities were 3.8% of loans HFI, and loans to
physician and dental practices were 3.6% of loans HFI. The average
health care loan size was $348,000 as of September 30,
2023.
Asset Quality and Allowance for Credit
Losses
NPAs totaled $2.1 million as of September 30, 2023, an
increase of $88,000, or 4.4%, from June 30, 2023, primarily due to
an increase in accruing loans 90 days or more past due. The ratio
of NPAs to assets was 0.07% as of September 30, 2023, and June
30, 2023.
Effective January 1, 2023, the Company adopted the CECL
methodology for estimating credit losses. In the first quarter of
2023, CECL resulted in a $278,000 increase to the ACL and
established a $442,000 reserve for unfunded commitments, yielding a
combined 3.5% increase to the December 31, 2022 allowance for loan
losses. This one-time cumulative adjustment resulted in a $569,000,
net of tax, decrease to stockholders’ equity.
As of September 30, 2023, the ACL was $21.2 million, and
the ratio of ACL to loans HFI was 1.09%. As of June 30, 2023, the
ratio of ACL to loans HFI was 1.08%. The net charge-offs to average
loans ratio was 0.00% for the third and second quarters of
2023.
Deposits
As of September 30, 2023, deposits were $2.76 billion, an
increase of $95.7 million, or 3.6%, compared to June 30, 2023.
Average deposits for the third quarter of 2023 were $2.71 billion,
an increase of $21.8 million, or 0.8%, from the prior quarter. The
following tables provide details on our deposit portfolio:
|
Deposits by Account Type |
| |
September 30, 2023 |
|
June 30, 2023 |
|
Change from June 30, 2023 to
September 30, 2023 |
| (dollars in thousands) |
Balance |
|
% of Total |
|
Balance |
|
% of Total |
|
$ Change |
|
% Change |
| Noninterest-bearing demand
deposits |
$ |
972,155 |
|
35.2 |
% |
|
$ |
989,509 |
|
37.1 |
% |
|
$ |
(17,354 |
) |
|
(1.8)% |
| Interest-bearing
deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand deposits |
|
145,764 |
|
5.3 |
% |
|
|
94,058 |
|
3.5 |
% |
|
|
51,706 |
|
|
55.0 |
% |
|
NOW accounts |
|
382,047 |
|
13.8 |
% |
|
|
384,676 |
|
14.5 |
% |
|
|
(2,629 |
) |
|
(0.7)% |
|
Money market accounts |
|
531,740 |
|
19.3 |
% |
|
|
537,890 |
|
20.2 |
% |
|
|
(6,150 |
) |
|
(1.1)% |
|
Savings accounts |
|
178,933 |
|
6.5 |
% |
|
|
179,053 |
|
6.7 |
% |
|
|
(120 |
) |
|
(0.1)% |
|
Time deposits less than or equal to $250,000 |
|
380,564 |
|
13.8 |
% |
|
|
328,870 |
|
12.4 |
% |
|
|
51,694 |
|
|
15.7 |
% |
|
Time deposits greater than $250,000 |
|
168,690 |
|
6.1 |
% |
|
|
150,127 |
|
5.6 |
% |
|
|
18,563 |
|
|
12.4 |
% |
|
Total interest-bearing deposits |
|
1,787,738 |
|
64.8 |
% |
|
|
1,674,674 |
|
62.9 |
% |
|
|
113,064 |
|
|
6.8 |
% |
| Total deposits |
$ |
2,759,893 |
|
100.0 |
% |
|
$ |
2,664,183 |
|
100.0 |
% |
|
$ |
95,710 |
|
|
3.6 |
% |
|
Deposits by Customer Type |
| |
September 30, 2023 |
|
June 30, 2023 |
|
Change from June 30, 2023 to
September 30, 2023 |
| (dollars in thousands) |
Balance |
|
% of Total |
|
Balance |
|
% of Total |
|
$ Change |
|
% Change |
|
Consumer |
$ |
1,310,580 |
|
47.5 |
% |
|
$ |
1,296,827 |
|
48.7 |
% |
|
$ |
13,753 |
|
1.1 |
% |
| Commercial |
|
1,241,213 |
|
45.0 |
% |
|
|
1,196,156 |
|
44.9 |
% |
|
|
45,057 |
|
3.8 |
% |
| Public |
|
208,100 |
|
7.5 |
% |
|
|
171,200 |
|
6.4 |
% |
|
|
36,900 |
|
21.6 |
% |
|
Total deposits |
$ |
2,759,893 |
|
100.0 |
% |
|
$ |
2,664,183 |
|
100.0 |
% |
|
$ |
95,710 |
|
3.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits increased in the third quarter of 2023 mainly as a
result of commercial and public entity customers increasing their
deposit balances with normal activity. Also, during the third
quarter of 2023, there was a deposit mix shift between deposit
categories as our consumer customers moved funds from lower
yielding categories to higher yielding categories within the
Bank.
The Bank has a granular, diverse deposit portfolio with
customers in a variety of industries throughout Louisiana. As of
September 30, 2023, the average deposit account size was
approximately $28,000.
In 2022, we implemented the IntraFi Network Insured Cash Sweep
(“ICS”) and related reciprocal balance programs for qualified
commercial customers. The ICS program provides our customers a
demand deposit sweep account that has a competitive interest rate
as well as full Federal Deposit Insurance Corporation (“FDIC”)
insurance coverage. As of September 30, 2023, we had $134.1
million swept off our balance sheet. The related reciprocal program
brings deposit balances back on to our balance sheet as
interest-bearing demand deposit accounts. As of September 30,
2023, we had $145.8 million of interest-bearing demand deposit
accounts.
As of September 30, 2023, our estimated uninsured deposits,
which are the portion of deposit accounts that exceed the FDIC
insurance limit (currently $250,000), were approximately $839.1
million, or 30.4% of total deposits. This amount was estimated
based on the same methodologies and assumptions used for regulatory
reporting purposes. Also, as of September 30, 2023, our
estimated uninsured deposits, excluding collateralized public
entity deposits, were approximately $673.8 million, or 24.4%
of total deposits. Our cash and cash equivalents of
$322.2 million combined with our available borrowing capacity
of $1.49 billion equaled 216.3% of our estimated uninsured
deposits and 269.4% of our estimated uninsured deposits, excluding
collateralized public entity deposits.
Stockholders’ Equity
Total stockholders’ equity as of September 30, 2023, was
$282.0 million compared to $283.4 million as of June 30, 2023. The
$1.4 million, or 0.5%, decrease in stockholders’ equity was
attributable to a $7.8 million, net of tax, increase to accumulated
other comprehensive loss related to securities, the repurchase of
23,561 shares of common stock for $1.2 million, and $572,000 in
cash dividends, partially offset by $8.0 million of net income for
the three months ended September 30, 2023, and $79,000 of
stock compensation. We paid a quarterly cash dividend of $0.08 per
share on September 21, 2023.
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 SEC’s rules, we classify a financial measure as
being a non-GAAP financial measure if that financial measure
excludes or includes amounts, or is subject to adjustments that
have the effect of excluding or including amounts, that are
included or excluded, as the case may be, in the most directly
comparable measure calculated and presented in accordance with GAAP
as in effect from time to time in the U.S.
Management and the board of directors review tangible book value
per share, tangible common equity to tangible assets, and realized
book value per share 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 within the following
financial statement tables.
About Red River Bancshares, Inc.
Red River Bancshares, Inc. 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 one combined loan and deposit production
office in 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; Acadiana, which
includes the Lafayette MSA; and New Orleans.
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
|
FINANCIAL HIGHLIGHTS (UNAUDITED) |
| |
| |
|
As of and for theThree Months
Ended |
|
As of and for theNine Months
Ended |
| (Dollars in thousands, except
per share data) |
|
September 30,2023 |
|
June 30,2023 |
|
September 30,2022 |
|
September 30,2023 |
|
September 30,2022 |
|
Net Income |
|
$ |
8,021 |
|
|
$ |
8,968 |
|
|
$ |
10,186 |
|
|
$ |
26,587 |
|
|
$ |
26,725 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Per Common Share
Data: |
|
|
|
|
|
|
|
|
|
|
|
Earnings per share, basic |
|
$ |
1.12 |
|
|
$ |
1.25 |
|
|
$ |
1.42 |
|
|
$ |
3.70 |
|
|
$ |
3.72 |
|
|
Earnings per share, diluted |
|
$ |
1.12 |
|
|
$ |
1.25 |
|
|
$ |
1.42 |
|
|
$ |
3.70 |
|
|
$ |
3.71 |
|
|
Book value per share |
|
$ |
39.43 |
|
|
$ |
39.49 |
|
|
$ |
33.88 |
|
|
$ |
39.43 |
|
|
$ |
33.88 |
|
|
Tangible book value per share(1) |
|
$ |
39.21 |
|
|
$ |
39.28 |
|
|
$ |
33.67 |
|
|
$ |
39.21 |
|
|
$ |
33.67 |
|
|
Realized book value per share(1) |
|
$ |
50.27 |
|
|
$ |
49.21 |
|
|
$ |
45.54 |
|
|
$ |
50.27 |
|
|
$ |
45.54 |
|
|
Cash dividends per share |
|
$ |
0.08 |
|
|
$ |
0.08 |
|
|
$ |
0.07 |
|
|
$ |
0.24 |
|
|
$ |
0.21 |
|
|
Shares outstanding |
|
|
7,150,685 |
|
|
|
7,175,056 |
|
|
|
7,183,915 |
|
|
|
7,150,685 |
|
|
|
7,183,915 |
|
|
Weighted average shares outstanding, basic |
|
|
7,168,413 |
|
|
|
7,177,621 |
|
|
|
7,183,915 |
|
|
|
7,176,219 |
|
|
|
7,179,984 |
|
|
Weighted average shares outstanding, diluted |
|
|
7,180,084 |
|
|
|
7,194,634 |
|
|
|
7,197,100 |
|
|
|
7,188,371 |
|
|
|
7,193,958 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Summary Performance
Ratios: |
|
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
|
1.05 |
% |
|
|
1.20 |
% |
|
|
1.30 |
% |
|
|
1.18 |
% |
|
|
1.13 |
% |
|
Return on average equity |
|
|
11.15 |
% |
|
|
12.78 |
% |
|
|
15.48 |
% |
|
|
12.71 |
% |
|
|
13.25 |
% |
|
Net interest margin |
|
|
2.74 |
% |
|
|
2.91 |
% |
|
|
3.00 |
% |
|
|
2.91 |
% |
|
|
2.70 |
% |
|
Net interest margin FTE |
|
|
2.78 |
% |
|
|
2.96 |
% |
|
|
3.06 |
% |
|
|
2.94 |
% |
|
|
2.76 |
% |
|
Efficiency ratio |
|
|
61.70 |
% |
|
|
58.63 |
% |
|
|
53.80 |
% |
|
|
59.02 |
% |
|
|
56.52 |
% |
|
Loans HFI to deposits ratio |
|
|
70.60 |
% |
|
|
73.10 |
% |
|
|
67.22 |
% |
|
|
70.60 |
% |
|
|
67.22 |
% |
|
Noninterest-bearing deposits to deposits ratio |
|
|
35.22 |
% |
|
|
37.14 |
% |
|
|
41.92 |
% |
|
|
35.22 |
% |
|
|
41.92 |
% |
|
Noninterest income to average assets |
|
|
0.73 |
% |
|
|
0.81 |
% |
|
|
0.62 |
% |
|
|
0.71 |
% |
|
|
0.60 |
% |
|
Operating expense to average assets |
|
|
2.13 |
% |
|
|
2.16 |
% |
|
|
1.93 |
% |
|
|
2.12 |
% |
|
|
1.84 |
% |
| |
|
|
|
|
|
|
|
|
|
|
| Summary Credit Quality
Ratios: |
|
|
|
|
|
|
|
|
|
|
|
Nonperforming assets to assets |
|
|
0.07 |
% |
|
|
0.07 |
% |
|
|
0.09 |
% |
|
|
0.07 |
% |
|
|
0.09 |
% |
|
Nonperforming loans to loans HFI |
|
|
0.10 |
% |
|
|
0.10 |
% |
|
|
0.14 |
% |
|
|
0.10 |
% |
|
|
0.14 |
% |
|
Allowance for credit losses to loans HFI |
|
|
1.09 |
% |
|
|
1.08 |
% |
|
|
1.06 |
% |
|
|
1.09 |
% |
|
|
1.06 |
% |
|
Net charge-offs to average loans |
|
|
0.00 |
% |
|
|
0.00 |
% |
|
|
0.00 |
% |
|
|
0.01 |
% |
|
|
0.01 |
% |
| |
|
|
|
|
|
|
|
|
|
|
| Capital
Ratios: |
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity to assets |
|
|
9.20 |
% |
|
|
9.36 |
% |
|
|
7.96 |
% |
|
|
9.20 |
% |
|
|
7.96 |
% |
|
Tangible common equity to tangible assets(1) |
|
|
9.15 |
% |
|
|
9.31 |
% |
|
|
7.91 |
% |
|
|
9.15 |
% |
|
|
7.91 |
% |
|
Total risk-based capital to risk-weighted assets |
|
|
18.35 |
% |
|
|
18.13 |
% |
|
|
17.15 |
% |
|
|
18.35 |
% |
|
|
17.15 |
% |
|
Tier 1 risk-based capital to risk-weighted assets |
|
|
17.31 |
% |
|
|
17.09 |
% |
|
|
16.16 |
% |
|
|
17.31 |
% |
|
|
16.16 |
% |
|
Common equity Tier 1 capital to risk-weighted assets |
|
|
17.31 |
% |
|
|
17.09 |
% |
|
|
16.16 |
% |
|
|
17.31 |
% |
|
|
16.16 |
% |
|
Tier 1 risk-based capital to average assets |
|
|
11.56 |
% |
|
|
11.48 |
% |
|
|
10.31 |
% |
|
|
11.56 |
% |
|
|
10.31 |
% |
(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) |
September 30,2023 |
|
June 30,2023 |
|
March 31, 2023 |
|
December 31, 2022 |
|
September 30,2022 |
| ASSETS |
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
$ |
42,413 |
|
|
$ |
36,662 |
|
|
$ |
34,491 |
|
|
$ |
37,824 |
|
|
$ |
39,465 |
|
|
Interest-bearing deposits in other banks |
|
279,786 |
|
|
|
185,409 |
|
|
|
194,727 |
|
|
|
240,568 |
|
|
|
261,608 |
|
|
Securities available-for-sale, at fair value |
|
529,046 |
|
|
|
588,478 |
|
|
|
611,794 |
|
|
|
614,407 |
|
|
|
609,748 |
|
|
Securities held-to-maturity, at amortized cost |
|
143,420 |
|
|
|
146,569 |
|
|
|
149,417 |
|
|
|
151,683 |
|
|
|
154,736 |
|
|
Equity securities, at fair value |
|
2,833 |
|
|
|
3,946 |
|
|
|
4,010 |
|
|
|
9,979 |
|
|
|
— |
|
|
Nonmarketable equity securities |
|
2,190 |
|
|
|
4,330 |
|
|
|
3,506 |
|
|
|
3,478 |
|
|
|
3,460 |
|
|
Loans held for sale |
|
2,348 |
|
|
|
4,586 |
|
|
|
2,046 |
|
|
|
518 |
|
|
|
1,536 |
|
|
Loans held for investment |
|
1,948,606 |
|
|
|
1,947,631 |
|
|
|
1,921,850 |
|
|
|
1,916,267 |
|
|
|
1,879,669 |
|
|
Allowance for credit losses |
|
(21,183 |
) |
|
|
(21,085 |
) |
|
|
(20,854 |
) |
|
|
(20,628 |
) |
|
|
(19,953 |
) |
|
Premises and equipment, net |
|
56,466 |
|
|
|
55,566 |
|
|
|
55,065 |
|
|
|
54,383 |
|
|
|
52,820 |
|
|
Accrued interest receivable |
|
8,778 |
|
|
|
8,239 |
|
|
|
8,397 |
|
|
|
8,830 |
|
|
|
7,782 |
|
|
Bank-owned life insurance |
|
29,332 |
|
|
|
29,141 |
|
|
|
28,954 |
|
|
|
28,775 |
|
|
|
28,594 |
|
|
Intangible assets |
|
1,546 |
|
|
|
1,546 |
|
|
|
1,546 |
|
|
|
1,546 |
|
|
|
1,546 |
|
|
Right-of-use assets |
|
3,757 |
|
|
|
3,885 |
|
|
|
4,011 |
|
|
|
4,137 |
|
|
|
4,262 |
|
|
Other assets |
|
36,815 |
|
|
|
32,291 |
|
|
|
31,622 |
|
|
|
30,919 |
|
|
|
34,405 |
|
|
Total Assets |
$ |
3,066,153 |
|
|
$ |
3,027,194 |
|
|
$ |
3,030,582 |
|
|
$ |
3,082,686 |
|
|
$ |
3,059,678 |
|
| |
|
|
|
|
|
|
|
|
|
| LIABILITIES |
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits |
$ |
972,155 |
|
|
$ |
989,509 |
|
|
$ |
1,060,042 |
|
|
$ |
1,090,539 |
|
|
$ |
1,172,157 |
|
|
Interest-bearing deposits |
|
1,787,738 |
|
|
|
1,674,674 |
|
|
|
1,671,343 |
|
|
|
1,708,397 |
|
|
|
1,624,337 |
|
|
Total Deposits |
|
2,759,893 |
|
|
|
2,664,183 |
|
|
|
2,731,385 |
|
|
|
2,798,936 |
|
|
|
2,796,494 |
|
|
Other borrowed funds |
|
— |
|
|
|
60,000 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Accrued interest payable |
|
6,800 |
|
|
|
4,098 |
|
|
|
2,433 |
|
|
|
1,563 |
|
|
|
1,194 |
|
|
Lease liabilities |
|
3,892 |
|
|
|
4,015 |
|
|
|
4,136 |
|
|
|
4,258 |
|
|
|
4,377 |
|
|
Accrued expenses and other liabilities |
|
13,617 |
|
|
|
11,526 |
|
|
|
15,988 |
|
|
|
12,176 |
|
|
|
14,200 |
|
|
Total Liabilities |
|
2,784,202 |
|
|
|
2,743,822 |
|
|
|
2,753,942 |
|
|
|
2,816,933 |
|
|
|
2,816,265 |
|
| COMMITMENTS AND
CONTINGENCIES |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
Preferred stock, no par value |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Common stock, no par value |
|
58,031 |
|
|
|
59,187 |
|
|
|
59,788 |
|
|
|
60,050 |
|
|
|
60,050 |
|
|
Additional paid-in capital |
|
2,327 |
|
|
|
2,248 |
|
|
|
2,157 |
|
|
|
2,088 |
|
|
|
2,014 |
|
|
Retained earnings |
|
299,079 |
|
|
|
291,630 |
|
|
|
283,236 |
|
|
|
274,781 |
|
|
|
265,093 |
|
|
Accumulated other comprehensive income (loss) |
|
(77,486 |
) |
|
|
(69,693 |
) |
|
|
(68,541 |
) |
|
|
(71,166 |
) |
|
|
(83,744 |
) |
|
Total Stockholders’ Equity |
|
281,951 |
|
|
|
283,372 |
|
|
|
276,640 |
|
|
|
265,753 |
|
|
|
243,413 |
|
|
Total Liabilities and Stockholders’ Equity |
$ |
3,066,153 |
|
|
$ |
3,027,194 |
|
|
$ |
3,030,582 |
|
|
$ |
3,082,686 |
|
|
$ |
3,059,678 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RED RIVER BANCSHARES, INC. |
|
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) |
| |
|
|
|
|
|
|
|
|
|
|
| |
|
For the Three Months Ended |
|
For the Nine Months Ended |
|
(in thousands) |
|
|
September 30,2023 |
|
|
|
June 30,2023 |
|
|
|
September 30,2022 |
|
|
September 30,2023 |
|
|
|
September 30,2022 |
|
|
INTEREST AND DIVIDEND INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on loans |
|
$ |
23,925 |
|
|
$ |
22,851 |
|
|
$ |
19,740 |
|
$ |
68,541 |
|
|
$ |
54,543 |
|
|
Interest on securities |
|
|
3,404 |
|
|
|
3,665 |
|
|
|
3,572 |
|
|
10,635 |
|
|
|
10,210 |
|
|
Interest on federal funds sold |
|
|
— |
|
|
|
251 |
|
|
|
317 |
|
|
886 |
|
|
|
458 |
|
|
Interest on deposits in other banks |
|
|
2,950 |
|
|
|
1,671 |
|
|
|
1,238 |
|
|
6,359 |
|
|
|
2,160 |
|
|
Dividends on stock |
|
|
45 |
|
|
|
33 |
|
|
|
19 |
|
|
106 |
|
|
|
22 |
|
|
Total Interest and Dividend Income |
|
|
30,324 |
|
|
|
28,471 |
|
|
|
24,886 |
|
|
86,527 |
|
|
|
67,393 |
|
| INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
Interest on deposits |
|
|
9,562 |
|
|
|
6,933 |
|
|
|
1,798 |
|
|
21,319 |
|
|
|
4,428 |
|
|
Interest on other borrowed funds |
|
|
37 |
|
|
|
28 |
|
|
|
— |
|
|
64 |
|
|
|
— |
|
|
Total Interest Expense |
|
|
9,599 |
|
|
|
6,961 |
|
|
|
1,798 |
|
|
21,383 |
|
|
|
4,428 |
|
| Net Interest
Income |
|
|
20,725 |
|
|
|
21,510 |
|
|
|
23,088 |
|
|
65,144 |
|
|
|
62,965 |
|
|
Provision for credit losses |
|
|
185 |
|
|
|
300 |
|
|
|
600 |
|
|
485 |
|
|
|
1,000 |
|
| Net Interest Income
After Provision for Credit Losses |
|
|
20,540 |
|
|
|
21,210 |
|
|
|
22,488 |
|
|
64,659 |
|
|
|
61,965 |
|
| NONINTEREST INCOME |
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts |
|
|
1,489 |
|
|
|
1,435 |
|
|
|
1,488 |
|
|
4,317 |
|
|
|
4,205 |
|
|
Debit card income, net |
|
|
830 |
|
|
|
924 |
|
|
|
934 |
|
|
2,687 |
|
|
|
2,926 |
|
|
Mortgage loan income |
|
|
604 |
|
|
|
645 |
|
|
|
624 |
|
|
1,524 |
|
|
|
2,643 |
|
|
Brokerage income |
|
|
1,029 |
|
|
|
923 |
|
|
|
870 |
|
|
2,759 |
|
|
|
2,536 |
|
|
Loan and deposit income |
|
|
571 |
|
|
|
517 |
|
|
|
502 |
|
|
1,566 |
|
|
|
1,283 |
|
|
Bank-owned life insurance income |
|
|
191 |
|
|
|
188 |
|
|
|
181 |
|
|
557 |
|
|
|
533 |
|
|
Gain (Loss) on equity securities |
|
|
(113 |
) |
|
|
(64 |
) |
|
|
— |
|
|
(145 |
) |
|
|
(447 |
) |
|
Gain (Loss) on sale and call of securities |
|
|
— |
|
|
|
— |
|
|
|
16 |
|
|
— |
|
|
|
(59 |
) |
|
SBIC income |
|
|
920 |
|
|
|
1,380 |
|
|
|
231 |
|
|
2,479 |
|
|
|
401 |
|
|
Other income (loss) |
|
|
60 |
|
|
|
59 |
|
|
|
21 |
|
|
184 |
|
|
|
107 |
|
|
Total Noninterest Income |
|
|
5,581 |
|
|
|
6,007 |
|
|
|
4,867 |
|
|
15,928 |
|
|
|
14,128 |
|
| OPERATING EXPENSES |
|
|
|
|
|
|
|
|
|
|
|
Personnel expenses |
|
|
9,461 |
|
|
|
9,547 |
|
|
|
8,853 |
|
|
28,008 |
|
|
|
25,879 |
|
|
Occupancy and equipment expenses |
|
|
1,663 |
|
|
|
1,554 |
|
|
|
1,531 |
|
|
4,933 |
|
|
|
4,496 |
|
|
Technology expenses |
|
|
675 |
|
|
|
642 |
|
|
|
653 |
|
|
2,066 |
|
|
|
2,118 |
|
|
Advertising |
|
|
331 |
|
|
|
343 |
|
|
|
316 |
|
|
955 |
|
|
|
841 |
|
|
Other business development expenses |
|
|
522 |
|
|
|
494 |
|
|
|
436 |
|
|
1,451 |
|
|
|
1,079 |
|
|
Data processing expense |
|
|
651 |
|
|
|
638 |
|
|
|
604 |
|
|
1,689 |
|
|
|
1,484 |
|
|
Other taxes |
|
|
664 |
|
|
|
693 |
|
|
|
650 |
|
|
2,042 |
|
|
|
1,933 |
|
|
Loan and deposit expenses |
|
|
238 |
|
|
|
284 |
|
|
|
164 |
|
|
728 |
|
|
|
479 |
|
|
Legal and professional expenses |
|
|
616 |
|
|
|
580 |
|
|
|
553 |
|
|
1,714 |
|
|
|
1,446 |
|
|
Regulatory assessment expenses |
|
|
419 |
|
|
|
397 |
|
|
|
280 |
|
|
1,223 |
|
|
|
781 |
|
|
Other operating expenses |
|
|
990 |
|
|
|
960 |
|
|
|
1,001 |
|
|
3,041 |
|
|
|
3,037 |
|
|
Total Operating Expenses |
|
|
16,230 |
|
|
|
16,132 |
|
|
|
15,041 |
|
|
47,850 |
|
|
|
43,573 |
|
| Income Before Income
Tax Expense |
|
|
9,891 |
|
|
|
11,085 |
|
|
|
12,314 |
|
|
32,737 |
|
|
|
32,520 |
|
|
Income tax expense |
|
|
1,870 |
|
|
|
2,117 |
|
|
|
2,128 |
|
|
6,150 |
|
|
|
5,795 |
|
| Net
Income |
|
$ |
8,021 |
|
|
$ |
8,968 |
|
|
$ |
10,186 |
|
$ |
26,587 |
|
|
$ |
26,725 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RED RIVER BANCSHARES, INC. |
|
NET INTEREST INCOME AND NET INTEREST MARGIN
(UNAUDITED) |
| |
| |
For the Three Months Ended |
| |
September 30, 2023 |
|
June 30, 2023 |
| (dollars in thousands) |
AverageBalanceOutstanding |
|
InterestIncome/Expense |
|
AverageYield/Rate |
|
AverageBalanceOutstanding |
|
InterestIncome/Expense |
|
AverageYield/Rate |
| Assets |
|
|
|
|
|
|
|
|
|
|
|
| Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Loans(1,2) |
$ |
1,947,794 |
|
|
$ |
23,925 |
|
4.81 |
% |
|
$ |
1,933,225 |
|
|
$ |
22,851 |
|
4.68 |
% |
|
Securities - taxable |
|
584,319 |
|
|
|
2,374 |
|
1.62 |
% |
|
|
630,103 |
|
|
|
2,628 |
|
1.67 |
% |
|
Securities - tax-exempt |
|
201,569 |
|
|
|
1,030 |
|
2.04 |
% |
|
|
204,208 |
|
|
|
1,037 |
|
2.03 |
% |
|
Federal funds sold |
|
— |
|
|
|
— |
|
— |
% |
|
|
19,780 |
|
|
|
251 |
|
5.02 |
% |
|
Interest-bearing deposits in other banks |
|
215,920 |
|
|
|
2,950 |
|
5.38 |
% |
|
|
131,361 |
|
|
|
1,671 |
|
5.04 |
% |
|
Nonmarketable equity securities |
|
4,213 |
|
|
|
45 |
|
4.23 |
% |
|
|
3,533 |
|
|
|
33 |
|
3.72 |
% |
|
Total interest-earning assets |
|
2,953,815 |
|
|
$ |
30,324 |
|
4.03 |
% |
|
|
2,922,210 |
|
|
$ |
28,471 |
|
3.86 |
% |
| Allowance for credit
losses |
|
(21,050 |
) |
|
|
|
|
|
|
(20,824 |
) |
|
|
|
|
| Noninterest-earning
assets |
|
87,545 |
|
|
|
|
|
|
|
89,021 |
|
|
|
|
|
|
Total assets |
$ |
3,020,310 |
|
|
|
|
|
|
$ |
2,990,407 |
|
|
|
|
|
| Liabilities and
Stockholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing transaction deposits |
$ |
1,212,226 |
|
|
$ |
5,083 |
|
1.66 |
% |
|
$ |
1,240,078 |
|
|
$ |
4,013 |
|
1.30 |
% |
|
Time deposits |
|
523,274 |
|
|
|
4,479 |
|
3.40 |
% |
|
|
433,112 |
|
|
|
2,920 |
|
2.70 |
% |
|
Total interest-bearing deposits |
|
1,735,500 |
|
|
|
9,562 |
|
2.19 |
% |
|
|
1,673,190 |
|
|
|
6,933 |
|
1.66 |
% |
|
Other borrowings |
|
2,609 |
|
|
|
37 |
|
5.49 |
% |
|
|
1,978 |
|
|
|
28 |
|
5.50 |
% |
|
Total interest-bearing liabilities |
|
1,738,109 |
|
|
$ |
9,599 |
|
2.19 |
% |
|
|
1,675,168 |
|
|
|
6,961 |
|
1.67 |
% |
| Noninterest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits |
|
973,723 |
|
|
|
|
|
|
|
1,014,205 |
|
|
|
|
|
|
Accrued interest and other liabilities |
|
22,992 |
|
|
|
|
|
|
|
19,612 |
|
|
|
|
|
|
Total noninterest-bearing liabilities |
|
996,715 |
|
|
|
|
|
|
|
1,033,817 |
|
|
|
|
|
| Stockholders’ equity |
|
285,486 |
|
|
|
|
|
|
|
281,422 |
|
|
|
|
|
|
Total liabilities and stockholders’ equity |
$ |
3,020,310 |
|
|
|
|
|
|
$ |
2,990,407 |
|
|
|
|
|
| Net interest income |
|
|
$ |
20,725 |
|
|
|
|
|
$ |
21,510 |
|
|
| Net interest spread |
|
|
|
|
1.84 |
% |
|
|
|
|
|
2.19 |
% |
| Net interest margin |
|
|
|
|
2.74 |
% |
|
|
|
|
|
2.91 |
% |
| Net interest margin
FTE(3) |
|
|
|
|
2.78 |
% |
|
|
|
|
|
2.96 |
% |
| Cost of deposits |
|
|
|
|
1.40 |
% |
|
|
|
|
|
1.03 |
% |
| Cost of funds |
|
|
|
|
1.29 |
% |
|
|
|
|
|
0.96 |
% |
(1) Includes average outstanding balances of loans
held for sale of $2.8 million and $3.5 million for the three
months ended September 30, 2023 and June 30, 2023,
respectively.(2) Nonaccrual loans are included as loans
carrying a zero yield.(3) Net interest margin FTE
includes an FTE adjustment using a 21.0% federal income tax rate on
tax-exempt securities and tax-exempt loans.
|
|
|
RED RIVER BANCSHARES, INC. |
|
NET INTEREST INCOME AND NET INTEREST MARGIN
(UNAUDITED) |
| |
| |
For the Nine Months Ended
September 30, |
| |
2023 |
|
2022 |
| (dollars in thousands) |
AverageBalanceOutstanding |
|
InterestIncome/Expense |
|
AverageYield/Rate |
|
AverageBalanceOutstanding |
|
InterestIncome/Expense |
|
AverageYield/Rate |
| Assets |
|
|
|
|
|
|
|
|
|
|
|
| Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Loans(1,2) |
$ |
1,933,226 |
|
|
$ |
68,541 |
|
4.68 |
% |
|
$ |
1,786,864 |
|
|
$ |
54,543 |
|
4.03 |
% |
|
Securities - taxable |
|
618,345 |
|
|
|
7,535 |
|
1.63 |
% |
|
|
635,594 |
|
|
|
7,029 |
|
1.48 |
% |
|
Securities - tax-exempt |
|
203,748 |
|
|
|
3,100 |
|
2.03 |
% |
|
|
211,375 |
|
|
|
3,181 |
|
2.01 |
% |
|
Federal funds sold |
|
24,861 |
|
|
|
886 |
|
4.70 |
% |
|
|
53,896 |
|
|
|
458 |
|
1.12 |
% |
|
Interest-bearing deposits in other banks |
|
167,210 |
|
|
|
6,359 |
|
5.05 |
% |
|
|
385,556 |
|
|
|
2,160 |
|
0.74 |
% |
|
Nonmarketable equity securities |
|
3,744 |
|
|
|
106 |
|
3.76 |
% |
|
|
3,451 |
|
|
|
22 |
|
0.86 |
% |
|
Total interest-earning assets |
|
2,951,134 |
|
|
$ |
86,527 |
|
3.88 |
% |
|
|
3,076,736 |
|
|
$ |
67,393 |
|
2.90 |
% |
| Allowance for credit
losses |
|
(20,920 |
) |
|
|
|
|
|
|
(19,390 |
) |
|
|
|
|
| Noninterest-earning
assets |
|
88,527 |
|
|
|
|
|
|
|
108,124 |
|
|
|
|
|
|
Total assets |
$ |
3,018,741 |
|
|
|
|
|
|
$ |
3,165,470 |
|
|
|
|
|
| Liabilities and
Stockholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing transaction deposits |
$ |
1,259,198 |
|
|
$ |
12,126 |
|
1.29 |
% |
|
$ |
1,383,628 |
|
|
$ |
1,940 |
|
0.19 |
% |
|
Time deposits |
|
441,442 |
|
|
|
9,193 |
|
2.78 |
% |
|
|
327,477 |
|
|
|
2,488 |
|
1.02 |
% |
|
Total interest-bearing deposits |
|
1,700,640 |
|
|
|
21,319 |
|
1.68 |
% |
|
|
1,711,105 |
|
|
|
4,428 |
|
0.35 |
% |
|
Other borrowings |
|
1,539 |
|
|
|
64 |
|
5.49 |
% |
|
|
— |
|
|
|
— |
|
— |
% |
|
Total interest-bearing liabilities |
|
1,702,179 |
|
|
$ |
21,383 |
|
1.68 |
% |
|
|
1,711,105 |
|
|
$ |
4,428 |
|
0.35 |
% |
| Noninterest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits |
|
1,016,034 |
|
|
|
|
|
|
|
1,167,412 |
|
|
|
|
|
|
Accrued interest and other liabilities |
|
20,951 |
|
|
|
|
|
|
|
17,244 |
|
|
|
|
|
|
Total noninterest-bearing liabilities |
|
1,036,985 |
|
|
|
|
|
|
|
1,184,656 |
|
|
|
|
|
| Stockholders’ equity |
|
279,577 |
|
|
|
|
|
|
|
269,709 |
|
|
|
|
|
|
Total liabilities and stockholders’ equity |
$ |
3,018,741 |
|
|
|
|
|
|
$ |
3,165,470 |
|
|
|
|
|
| Net interest income |
|
|
$ |
65,144 |
|
|
|
|
|
$ |
62,965 |
|
|
| Net interest spread |
|
|
|
|
2.20 |
% |
|
|
|
|
|
2.55 |
% |
| Net interest margin |
|
|
|
|
2.91 |
% |
|
|
|
|
|
2.70 |
% |
| Net interest margin
FTE(3) |
|
|
|
|
2.94 |
% |
|
|
|
|
|
2.76 |
% |
| Cost of deposits |
|
|
|
|
1.05 |
% |
|
|
|
|
|
0.21 |
% |
| Cost of funds |
|
|
|
|
0.97 |
% |
|
|
|
|
|
0.19 |
% |
(1) Includes average outstanding balances of loans
held for sale of $2.5 million and $3.6 million for the nine months
ended September 30, 2023 and 2022,
respectively.(2) Nonaccrual loans are included as loans
carrying a zero yield.(3) Net interest margin FTE
includes an FTE adjustment using a 21.0% 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) |
September 30,2023 |
|
June 30,2023 |
|
September 30,2022 |
| Tangible common equity |
|
|
|
|
|
|
Total stockholders’ equity |
$ |
281,951 |
|
|
$ |
283,372 |
|
|
$ |
243,413 |
|
|
Adjustments: |
|
|
|
|
|
|
Intangible assets |
|
(1,546 |
) |
|
|
(1,546 |
) |
|
|
(1,546 |
) |
|
Total tangible common equity (non-GAAP) |
$ |
280,405 |
|
|
$ |
281,826 |
|
|
$ |
241,867 |
|
| Realized common equity |
|
|
|
|
|
|
Total stockholders’ equity |
$ |
281,951 |
|
|
$ |
283,372 |
|
|
$ |
243,413 |
|
|
Adjustments: |
|
|
|
|
|
|
Accumulated other comprehensive (income) loss |
|
77,486 |
|
|
|
69,693 |
|
|
|
83,744 |
|
|
Total realized common equity (non-GAAP) |
$ |
359,437 |
|
|
$ |
353,065 |
|
|
$ |
327,157 |
|
| Common shares outstanding |
|
7,150,685 |
|
|
|
7,175,056 |
|
|
|
7,183,915 |
|
| Book value per share |
$ |
39.43 |
|
|
$ |
39.49 |
|
|
$ |
33.88 |
|
| Tangible book value per share
(non-GAAP) |
$ |
39.21 |
|
|
$ |
39.28 |
|
|
$ |
33.67 |
|
| Realized book value per share
(non-GAAP) |
$ |
50.27 |
|
|
$ |
49.21 |
|
|
$ |
45.54 |
|
| |
|
|
|
|
|
| Tangible assets |
|
|
|
|
|
|
Total assets |
$ |
3,066,153 |
|
|
$ |
3,027,194 |
|
|
$ |
3,059,678 |
|
|
Adjustments: |
|
|
|
|
|
|
Intangible assets |
|
(1,546 |
) |
|
|
(1,546 |
) |
|
|
(1,546 |
) |
|
Total tangible assets (non-GAAP) |
$ |
3,064,607 |
|
|
$ |
3,025,648 |
|
|
$ |
3,058,132 |
|
| Total stockholders’ equity to
assets |
|
9.20 |
% |
|
|
9.36 |
% |
|
|
7.96 |
% |
| Tangible common equity to
tangible assets (non-GAAP) |
|
9.15 |
% |
|
|
9.31 |
% |
|
|
7.91 |
% |
Red River Bancshares (NASDAQ:RRBI)
Historical Stock Chart
From Mar 2024 to Apr 2024
Red River Bancshares (NASDAQ:RRBI)
Historical Stock Chart
From Apr 2023 to Apr 2024
