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 2023.
Net income for the fourth quarter of 2023 was $8.3 million, or
$1.16 per diluted common share (“EPS”), an increase of $271,000, or
3.4%, compared to $8.0 million, or $1.12 EPS, for the third quarter
of 2023, and a decrease of $1.9 million, or 18.6%, compared to
$10.2 million, or $1.42 EPS, for the fourth quarter of 2022. For
the fourth quarter of 2023, the quarterly return on assets was
1.08%, and the quarterly return on equity was 11.63%.
Net income for the year ended December 31, 2023, was $34.9
million, or $4.86 EPS, a decrease of $2.0 million, or 5.5%,
compared to $36.9 million, or $5.13 EPS, for the year ended
December 31, 2022. For the year ended December 31, 2023,
the return on assets was 1.15%, and the return on equity was
12.44%.
Fourth Quarter and Year-End
2023 Performance and Operational
Highlights
In the fourth quarter of 2023, the Company had higher earnings
and an improved net interest margin, combined with balance sheet
growth. Stock repurchase activity occurred until the 2023 stock
repurchase program was completed. A stock repurchase program for
2024 was approved.
- Net income for the fourth quarter of
2023 was $8.3 million, which was $271,000, or 3.4%, higher than the
prior quarter. Net income improved due to higher net interest
income and lower operating expenses, partially offset by lower
noninterest income.
- Net interest income and net interest
margin fully tax equivalent (“FTE”) increased in the fourth quarter
of 2023 compared to the prior quarter. Net interest income for the
fourth quarter of 2023 was $21.3 million compared to $20.7 million
for the prior quarter. Net interest margin FTE for the fourth
quarter of 2023 was 2.82% compared to 2.78% for the prior quarter.
These increases were mainly due to improved yields on securities
and loans, partially offset by higher deposit costs.
- As of December 31, 2023, assets were
$3.13 billion, which was $62.7 million, or 2.0%, higher than
September 30, 2023, mainly due to a $42.0 million increase in
deposits.
- Deposits totaled $2.80 billion as of
December 31, 2023, an increase of $42.0 million, or 1.5%, compared
to $2.76 billion as of September 30, 2023. This increase was mainly
due to the seasonal inflow of funds from public entity
customers.
- As of December 31, 2023, loans held for
investment (“HFI”) were $1.99 billion, an increase of $44.3
million, or 2.3%, compared to $1.95 billion as of September 30,
2023. The growth in loans HFI was primarily a result of new loan
activity in various markets across Louisiana.
- As of December 31, 2023, total
securities were $714.3 million compared to $675.3 million as of
September 30, 2023. Securities increased $39.0 million, primarily
due to the purchase of new securities, combined with a smaller net
unrealized loss on securities available-for-sale (“AFS”).
- In the fourth quarter of 2023, average
liquid assets, which are cash and cash equivalents, increased $35.1
million to $281.3 million, compared to $246.2 million for the third
quarter of 2023. The liquid assets to assets ratio was 9.76% as of
December 31, 2023.
- The current expected credit loss
(“CECL”) methodology became effective for the Company on January 1,
2023. Provision expense was $250,000 for the fourth quarter of 2023
compared to $185,000 for the third quarter of 2023.
- As of December 31, 2023, nonperforming
assets (“NPA(s)”) were $2.6 million, or 0.08% of assets, and the
allowance for credit losses (“ACL”) was $21.3 million, or 1.07% of
loans HFI.
- We paid a quarterly cash dividend of
$0.08 per common share in the fourth quarter of 2023.
- The 2023 stock repurchase program
authorized 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 fourth quarter of 2023, we repurchased 59,048 shares
of our common stock at an aggregate cost of $2.9 million and
completed the program. During 2023, we repurchased 101,298 shares
of our common stock at an aggregate cost of $5.0 million. On
December 14, 2023, our Board of Directors approved the renewal of
our stock repurchase program for 2024. The 2024 stock repurchase
program authorizes us to purchase up to $5.0 million of our
outstanding shares of common stock from January 1, 2024 through
December 31, 2024.
- Recently, the American Banker
publication included Red River Bank in its “2023 Best Banks to Work
For” ranking.
Blake Chatelain, President and Chief Executive Officer of the
Company, stated, “We are pleased with the financial results for the
fourth quarter of 2023, which included net interest margin
improvement, solid loan activity, and core deposit growth. Net
interest margin and net interest income improved as new and renewed
loans were booked at higher rates, and we redeployed security
portfolio cash flows into higher yielding securities. We expect the
fourth quarter loan and securities activity and rates to provide
momentum to the net interest margin as we begin 2024.
“We had significant stock buyback activity in the fourth quarter
of 2023, completing the 2023 stock repurchase program, and the
board of directors approved a $5.0 million stock repurchase program
for 2024. Also relating to capital, the market adjustment to
stockholders’ equity from securities improved by $17.0 million,
which resulted in an increase to book value per share as of
December 31, 2023.
“Overall, banking activity throughout all of our markets is
steady and encouraging. We are pleased with the progress of the
construction on our new banking center located on Veterans
Boulevard in Metairie, Louisiana, which is in our New Orleans
market. We expect this banking center to open in the third quarter
of 2024.
“At our January 2024 board of directors meeting, Michael J.
Brown, CFA, was appointed as a new board member. We are very
pleased to welcome Michael, who brings a wealth of experience in
all areas of banking operations and strategy. I had the privilege
of working with Michael earlier in our careers when we both worked
at First Commerce, and it is a pleasure to have the opportunity to
work with him again. Michael’s deep industry knowledge will be an
invaluable benefit to the Company.
“The fourth quarter of 2023 wrapped up a uniquely challenging
year for the banking industry. Our team took care of our customers,
prudently managed the Company, and achieved solid financial
results. We believe we are well-positioned for future years. The
Company is well-capitalized, has good liquidity levels, excellent
asset quality, solid earnings, and knowledgeable community bankers
providing banking services to our communities. We look forward to
2024 as we continue to grow and build value for our
shareholders.”
Liquidity
As of December 31, 2023, we had sufficient liquid assets
available and $1.46 billion accessible from other liquidity
sources.
Cash and cash equivalents were $305.4 million as of
December 31, 2023, and averaged $281.3 million for the fourth
quarter of 2023. The liquid assets to assets ratio was 9.76% as of
December 31, 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 held-to-maturity (“HTM”) have significant
restrictions related to sales. As of December 31, 2023, we
project receipt of approximately $145.0 million of principal
repayments and maturities through December 31, 2024. As of
December 31, 2023, approximately $480.4 million, or 67.3%, of
the securities portfolio was available to be sold or used as
collateral in borrowings as a liquidity source.
Federal Home Loan Bank (“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 December 31, 2023, our net borrowing
capacity from the FHLB was $829.2 million.
In the third quarter of 2023, the Bank pledged securities to
gain borrowing access to the Federal Reserve Bank’s Discount Window
facility. As of December 31, 2023, our borrowing capacity
through this facility was $45.5 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 December 31, 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
through March 11, 2024, when the program is scheduled to end. 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 increased in the
fourth quarter of 2023 compared to the prior quarter. These
increases were mainly due to improved yields on securities and
loans, partially offset by higher deposit costs. During the year
ended December 31, 2023, 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, 25 bps in the third
quarter, and then kept the rate consistent in the fourth
quarter.
Net interest income for the fourth quarter of 2023 was $21.3
million, which was $569,000, or 2.7%, higher than the third quarter
of 2023, due to a $1.7 million increase in interest and dividend
income, partially offset by a $1.1 million increase in interest
expense. The increase in interest and dividend income was due to
higher interest income on loans, short-term liquid assets, and
securities. Loan income increased $973,000 due to higher rates on
new and renewed loans, combined with higher balances in loans HFI.
The average rate on new and renewed loans was 7.39% for the fourth
quarter of 2023. Interest income on short-term liquid assets
increased $488,000, primarily due to an increase in these balances
during the fourth quarter. Interest income on securities increased
$252,000, primarily due to higher yields on securities purchased
during the fourth quarter. The increase in interest expense was due
to higher deposit rates and larger balances in higher cost deposit
accounts.
The net interest margin FTE increased four bps to 2.82% for the
fourth quarter of 2023, compared to 2.78% for the prior quarter.
This increase was mainly due to improved yields on securities and
loans, partially offset by higher deposit costs. The yield on
securities increased 17 bps, primarily due to reinvesting
securities cash flows received during the fourth quarter into new
securities at higher yields. The yield on loans increased 13 bps
during the same period due to higher rates on new and renewed
loans. These increases were partially offset by a 39 bp increase in
the rate on time deposits and an 11 bp increase in the rate on
interest-bearing transaction deposits. The cost of deposits
increased 15 bps to 1.55% for the fourth quarter of 2023, compared
to 1.40% for the prior quarter.
In the fourth quarter of 2023, the target range for the federal
funds rate was 5.25-5.50%. The expectation is that the FOMC will
lower the federal funds rate in 2024. During 2024, we anticipate
receiving approximately $145.0 million in securities cash flows. We
expect to redeploy these cash flows into higher yielding assets,
which should benefit both net interest income and net interest
margin FTE. As of December 31, 2023, floating rate loans were 11.7%
of loans HFI, and floating rate transaction deposits were 6.1% of
interest-bearing transaction deposits. Depending on balance sheet
activity and the movement of interest rates, we expect the net
interest margin FTE to improve slightly in the first half of
2024.
Provision for Credit Losses
The provision for credit losses for the fourth quarter of 2023
was $250,000, which was $65,000 higher than the provision for
credit losses of $185,000 for the prior quarter. The provision in
the fourth quarter was due to potential economic challenges
resulting from the current inflationary environment, changing
monetary policy, and loan growth. 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 $5.2 million for the fourth quarter
of 2023, a decrease of $394,000, or 7.1%, compared to $5.6 million
for the previous quarter. The decrease was mainly due to lower
Small Business Investment Company (“SBIC”) and mortgage loan
income, partially offset by a gain on equity securities.
SBIC income for the fourth quarter of 2023 was $393,000, a
decrease of $527,000, or 57.3%, compared to $920,000 for the prior
quarter. The decrease was primarily due to less income being
distributed by the SBIC in the fourth quarter. We expect this
income to be lower in future quarters.
Mortgage loan income decreased $163,000, or 27.0%, to $441,000
for the fourth quarter of 2023, compared to $604,000 for the
previous quarter. The decrease was due to fluctuating mortgage
interest rates and reduced purchase activity as a result of
seasonal slowdown.
Equity securities are an investment in a Community Reinvestment
Act (“CRA”) mutual fund consisting primarily of bonds. The gain or
loss on equity securities is a fair value adjustment primarily
driven by changes in the interest rate environment. Due to
fluctuations in market rates between quarters, equity securities
had a gain of $132,000 in the fourth quarter of 2023, compared to a
loss of $113,000 in the third quarter of 2023.
Operating Expenses
Operating expenses for the fourth quarter of 2023 totaled $16.0
million, a decrease of $207,000, or 1.3%, compared to $16.2 million
for the previous quarter. This decrease was mainly due to lower
personnel and occupancy and equipment expenses.
Personnel expenses totaled $9.2 million for the fourth quarter
of 2023, a decrease of $228,000, or 2.4%, from the previous
quarter. This decrease was primarily due to lower personnel health
insurance expenses. As of December 31, 2023 and September 30, 2023,
we had 362 and 360 total employees, respectively.
Occupancy and equipment expenses for the fourth quarter of 2023
totaled $1.6 million, which was fairly consistent with the previous
quarter. During the fourth quarter of 2023, lower facility
maintenance expenses were offset by $41,000 of nonrecurring
expenses related to the renovation of our main office building in
Alexandria, Louisiana.
Asset Overview
As of December 31, 2023, assets were $3.13 billion,
compared to assets of $3.07 billion as of September 30, 2023, an
increase of $62.7 million, or 2.0%. In the fourth quarter, assets
were impacted by a $42.0 million, or 1.5%, increase in deposits.
During the fourth quarter of 2023, loans HFI increased $44.3
million, or 2.3%, to $1.99 billion. The loans HFI to deposits ratio
was 71.13% as of December 31, 2023, compared to 70.60% as of
September 30, 2023. Total securities increased $39.0 million, or
5.8%, to $714.3 million in the fourth quarter and were 22.8% of
assets as of December 31, 2023. Liquid assets decreased $16.8
million, or 5.2%, to $305.4 million in the fourth quarter and were
9.76% of assets as of December 31, 2023.
Securities
Total securities as of December 31, 2023, were $714.3
million, an increase of $39.0 million, or 5.8%, from September 30,
2023. Securities increased primarily due to the purchase of new
securities, combined with a smaller net unrealized loss on
securities AFS.
The estimated fair value of securities AFS totaled $570.1
million, net of $62.2 million of unrealized loss, as of
December 31, 2023, compared to $529.0 million, net of $83.3
million of unrealized loss, as of September 30, 2023. As of
December 31, 2023, the amortized cost of securities HTM
totaled $141.2 million compared to $143.4 million as of September
30, 2023. As of December 31, 2023, securities HTM had an
unrealized loss of $22.2 million compared to $26.2 million as of
September 30, 2023.
As of December 31, 2023, equity securities, which is an
investment in a CRA mutual fund consisting primarily of bonds,
totaled $3.0 million compared to $2.8 million as of September 30,
2023.
Loans
Loans HFI as of December 31, 2023, were $1.99 billion, an
increase of $44.3 million, or 2.3%, from September 30, 2023,
primarily due to new loan activity in various markets across
Louisiana.
Loans HFI by Category |
|
December 31, 2023 |
|
September 30, 2023 |
|
Change from September 30, 2023 to
December 31, 2023 |
(dollars in thousands) |
Amount |
|
Percent |
|
Amount |
|
Percent |
|
$ Change |
|
% Change |
Real estate: |
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate |
$ |
851,582 |
|
|
|
42.7 |
% |
|
$ |
829,836 |
|
|
|
42.6 |
% |
|
$ |
21,746 |
|
|
|
2.6 |
% |
One-to-four family residential |
|
599,487 |
|
|
|
30.1 |
% |
|
|
579,023 |
|
|
|
29.7 |
% |
|
|
20,464 |
|
|
|
3.5 |
% |
Construction and development |
|
125,238 |
|
|
|
6.3 |
% |
|
|
119,647 |
|
|
|
6.1 |
% |
|
|
5,591 |
|
|
|
4.7 |
% |
Commercial and industrial |
|
315,327 |
|
|
|
15.8 |
% |
|
|
315,398 |
|
|
|
16.2 |
% |
|
|
(71 |
) |
|
|
— |
% |
Tax-exempt |
|
72,913 |
|
|
|
3.7 |
% |
|
|
74,703 |
|
|
|
3.9 |
% |
|
|
(1,790 |
) |
|
|
(2.4 |
%) |
Consumer |
|
28,311 |
|
|
|
1.4 |
% |
|
|
29,999 |
|
|
|
1.5 |
% |
|
|
(1,688 |
) |
|
|
(5.6 |
%) |
Total loans HFI |
$ |
1,992,858 |
|
|
|
100.0 |
% |
|
$ |
1,948,606 |
|
|
|
100.0 |
% |
|
$ |
44,252 |
|
|
|
2.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate (“CRE”) loans are collateralized by owner
occupied and non-owner occupied properties mainly in Louisiana.
Investor-owned office properties were $62.3 million, or 3.1% of
loans HFI, as of December 31, 2023, and are primarily centered in
low-rise suburban areas. The average CRE loan size was $938,000 as
of December 31, 2023.
Health care loans are our largest industry concentration and are
made up of a diversified portfolio of health care providers. As of
December 31, 2023, total health care loans were 7.7% of loans
HFI. Within the health care sector, loans to nursing and
residential care facilities were 4.0% of loans HFI, and loans to
physician and dental practices were 3.6% of loans HFI. The average
health care loan size was $334,000 as of December 31,
2023.
Asset Quality and Allowance for Credit
Losses
NPAs totaled $2.6 million as of December 31, 2023, an
increase of $534,000, or 25.8%, from September 30, 2023, primarily
due to an increase in nonaccrual and past due loans. The ratio of
NPAs to assets was 0.08% as of December 31, 2023, and 0.07% as
of September 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 December 31, 2023, the ACL was $21.3 million, and the
ratio of ACL to loans HFI was 1.07%. As of September 30, 2023, the
ratio of ACL to loans HFI was 1.09%. The net charge-offs to average
loans ratio was 0.01% for the fourth quarter of 2023 and 0.00% for
the third quarter of 2023.
Deposits
As of December 31, 2023, deposits were $2.80 billion, an
increase of $42.0 million, or 1.5%, compared to September 30, 2023.
Average deposits for the fourth quarter of 2023 were $2.75 billion,
an increase of $36.1 million, or 1.3%, from the prior quarter.
The following tables provide details on our deposit
portfolio:
Deposits by Account Type |
|
December 31, 2023 |
|
September 30, 2023 |
|
Change from September 30, 2023 to
December 31, 2023 |
(dollars in thousands) |
Balance |
|
% of Total |
|
Balance |
|
% of Total |
|
$ Change |
|
% Change |
Noninterest-bearing demand deposits |
$ |
916,456 |
|
|
|
32.7 |
% |
|
$ |
972,155 |
|
|
|
35.2 |
% |
|
$ |
(55,699 |
) |
|
|
(5.7 |
%) |
Interest-bearing
deposits: |
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand deposits |
|
138,380 |
|
|
|
5.0 |
% |
|
|
145,764 |
|
|
|
5.3 |
% |
|
|
(7,384 |
) |
|
|
(5.1 |
%) |
NOW accounts |
|
468,483 |
|
|
|
16.7 |
% |
|
|
382,047 |
|
|
|
13.8 |
% |
|
|
86,436 |
|
|
|
22.6 |
% |
Money market accounts |
|
541,607 |
|
|
|
19.3 |
% |
|
|
531,740 |
|
|
|
19.3 |
% |
|
|
9,867 |
|
|
|
1.9 |
% |
Savings accounts |
|
173,741 |
|
|
|
6.2 |
% |
|
|
178,933 |
|
|
|
6.5 |
% |
|
|
(5,192 |
) |
|
|
(2.9 |
%) |
Time deposits less than or equal to $250,000 |
|
392,094 |
|
|
|
14.0 |
% |
|
|
380,564 |
|
|
|
13.8 |
% |
|
|
11,530 |
|
|
|
3.0 |
% |
Time deposits greater than $250,000 |
|
171,127 |
|
|
|
6.1 |
% |
|
|
168,690 |
|
|
|
6.1 |
% |
|
|
2,437 |
|
|
|
1.4 |
% |
Total interest-bearing deposits |
|
1,885,432 |
|
|
|
67.3 |
% |
|
|
1,787,738 |
|
|
|
64.8 |
% |
|
|
97,694 |
|
|
|
5.5 |
% |
Total deposits |
$ |
2,801,888 |
|
|
|
100.0 |
% |
|
$ |
2,759,893 |
|
|
|
100.0 |
% |
|
$ |
41,995 |
|
|
|
1.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits by Customer Type |
|
December 31, 2023 |
|
September 30, 2023 |
|
Change from September 30, 2023 to
December 31, 2023 |
(dollars in thousands) |
Balance |
|
% of Total |
|
Balance |
|
% of Total |
|
$ Change |
|
% Change |
Consumer |
$ |
1,343,448 |
|
|
|
47.9 |
% |
|
$ |
1,310,580 |
|
|
|
47.5 |
% |
|
$ |
32,868 |
|
|
|
2.5 |
% |
Commercial |
|
1,170,670 |
|
|
|
41.8 |
% |
|
|
1,241,213 |
|
|
|
45.0 |
% |
|
|
(70,543 |
) |
|
|
(5.7 |
%) |
Public |
|
287,770 |
|
|
|
10.3 |
% |
|
|
208,100 |
|
|
|
7.5 |
% |
|
|
79,670 |
|
|
|
38.3 |
% |
Total deposits |
$ |
2,801,888 |
|
|
|
100.0 |
% |
|
$ |
2,759,893 |
|
|
|
100.0 |
% |
|
$ |
41,995 |
|
|
|
1.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The increase in deposits in the fourth quarter of 2023 was
mainly due to the seasonal inflow of funds from public entity
customers and an increase in new consumer interest-bearing
accounts, partially offset by a decrease in commercial customer
deposit balances related to normal business activity.
The Bank has a granular, diverse deposit portfolio with
customers in a variety of industries throughout Louisiana. As of
December 31, 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 December 31, 2023, we had $129.1
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 December 31,
2023, we had $138.4 million of interest-bearing demand deposit
accounts.
As of December 31, 2023, our estimated uninsured deposits,
which are the portion of deposit accounts that exceed the FDIC
insurance limit (currently $250,000), were approximately $887.8
million, or 31.7% of total deposits. This amount was estimated
based on the same methodologies and assumptions used for regulatory
reporting purposes. Also, as of December 31, 2023, our
estimated uninsured deposits, excluding collateralized public
entity deposits, were approximately $643.6 million, or 23.0% of
total deposits. Our cash and cash equivalents of $305.4 million
combined with our available borrowing capacity of
$1.46 billion equaled 198.4% of our estimated uninsured
deposits and 273.7% of our estimated uninsured deposits, excluding
collateralized public entity deposits.
Stockholders’ Equity
Total stockholders’ equity as of December 31, 2023, was
$303.9 million compared to $282.0 million as of September 30, 2023.
The $21.9 million, or 7.8%, increase in stockholders’ equity during
the fourth quarter of 2023 was attributable to a $17.0 million, net
of tax, market adjustment to accumulated other comprehensive loss
related to securities, $8.3 million of net income, and $80,000 of
stock compensation, partially offset by the repurchase of 59,048
shares of common stock for $2.9 million and $569,000 in cash
dividends. We paid a quarterly cash dividend of $0.08 per share on
December 14, 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,
Chief Financial Officer, and Assistant Corporate
Secretary318-561-4023icarriere@redriverbank.net
|
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, 2023 |
|
September 30,2023 |
|
December 31, 2022 |
|
December 31, 2023 |
|
December 31, 2022 |
Net Income |
$ |
8,292 |
|
|
$ |
8,021 |
|
|
$ |
10,191 |
|
|
$ |
34,879 |
|
|
$ |
36,916 |
|
|
|
|
|
|
|
|
|
|
|
Per Common Share
Data: |
|
|
|
|
|
|
|
|
|
Earnings per share, basic |
$ |
1.16 |
|
|
$ |
1.12 |
|
|
$ |
1.42 |
|
|
$ |
4.87 |
|
|
$ |
5.14 |
|
Earnings per share, diluted |
$ |
1.16 |
|
|
$ |
1.12 |
|
|
$ |
1.42 |
|
|
$ |
4.86 |
|
|
$ |
5.13 |
|
Book value per share |
$ |
42.85 |
|
|
$ |
39.43 |
|
|
$ |
36.99 |
|
|
$ |
42.85 |
|
|
$ |
36.99 |
|
Tangible book value per share(1) |
$ |
42.63 |
|
|
$ |
39.21 |
|
|
$ |
36.78 |
|
|
$ |
42.63 |
|
|
$ |
36.78 |
|
Realized book value per share(1) |
$ |
51.38 |
|
|
$ |
50.27 |
|
|
$ |
46.90 |
|
|
$ |
51.38 |
|
|
$ |
46.90 |
|
Cash dividends per share |
$ |
0.08 |
|
|
$ |
0.08 |
|
|
$ |
0.07 |
|
|
$ |
0.32 |
|
|
$ |
0.28 |
|
Shares outstanding |
|
7,091,637 |
|
|
|
7,150,685 |
|
|
|
7,183,915 |
|
|
|
7,091,637 |
|
|
|
7,183,915 |
|
Weighted average shares outstanding, basic |
|
7,128,988 |
|
|
|
7,168,413 |
|
|
|
7,183,915 |
|
|
|
7,164,314 |
|
|
|
7,180,975 |
|
Weighted average shares outstanding, diluted |
|
7,145,870 |
|
|
|
7,180,084 |
|
|
|
7,199,247 |
|
|
|
7,181,728 |
|
|
|
7,197,453 |
|
|
|
|
|
|
|
|
|
|
|
Summary Performance
Ratios: |
|
|
|
|
|
|
|
|
|
Return on average assets |
|
1.08 |
% |
|
|
1.05 |
% |
|
|
1.33 |
% |
|
|
1.15 |
% |
|
|
1.18 |
% |
Return on average equity |
|
11.63 |
% |
|
|
11.15 |
% |
|
|
16.34 |
% |
|
|
12.44 |
% |
|
|
13.98 |
% |
Net interest margin |
|
2.78 |
% |
|
|
2.74 |
% |
|
|
3.11 |
% |
|
|
2.87 |
% |
|
|
2.80 |
% |
Net interest margin FTE |
|
2.82 |
% |
|
|
2.78 |
% |
|
|
3.17 |
% |
|
|
2.91 |
% |
|
|
2.86 |
% |
Efficiency ratio |
|
60.51 |
% |
|
|
61.70 |
% |
|
|
54.76 |
% |
|
|
59.39 |
% |
|
|
56.60 |
% |
Loans HFI to deposits ratio |
|
71.13 |
% |
|
|
70.60 |
% |
|
|
68.46 |
% |
|
|
71.13 |
% |
|
|
68.46 |
% |
Noninterest-bearing deposits to deposits ratio |
|
32.71 |
% |
|
|
35.22 |
% |
|
|
38.96 |
% |
|
|
32.71 |
% |
|
|
38.96 |
% |
Noninterest income to average assets |
|
0.67 |
% |
|
|
0.73 |
% |
|
|
0.60 |
% |
|
|
0.70 |
% |
|
|
0.60 |
% |
Operating expense to average assets |
|
2.08 |
% |
|
|
2.13 |
% |
|
|
1.97 |
% |
|
|
2.11 |
% |
|
|
1.87 |
% |
|
|
|
|
|
|
|
|
|
|
Summary Credit Quality
Ratios: |
|
|
|
|
|
|
|
|
|
Nonperforming assets to assets |
|
0.08 |
% |
|
|
0.07 |
% |
|
|
0.08 |
% |
|
|
0.08 |
% |
|
|
0.08 |
% |
Nonperforming loans to loans HFI |
|
0.13 |
% |
|
|
0.10 |
% |
|
|
0.12 |
% |
|
|
0.13 |
% |
|
|
0.12 |
% |
Allowance for credit losses to loans HFI |
|
1.07 |
% |
|
|
1.09 |
% |
|
|
1.08 |
% |
|
|
1.07 |
% |
|
|
1.08 |
% |
Net charge-offs to average loans |
|
0.01 |
% |
|
|
0.00 |
% |
|
|
0.00 |
% |
|
|
0.02 |
% |
|
|
0.02 |
% |
|
|
|
|
|
|
|
|
|
|
Capital
Ratios: |
|
|
|
|
|
|
|
|
|
Stockholders’ equity to assets |
|
9.71 |
% |
|
|
9.20 |
% |
|
|
8.62 |
% |
|
|
9.71 |
% |
|
|
8.62 |
% |
Tangible common equity to tangible assets (1) |
|
9.67 |
% |
|
|
9.15 |
% |
|
|
8.57 |
% |
|
|
9.67 |
% |
|
|
8.57 |
% |
Total risk-based capital to risk-weighted assets |
|
18.28 |
% |
|
|
18.35 |
% |
|
|
17.39 |
% |
|
|
18.28 |
% |
|
|
17.39 |
% |
Tier 1 risk-based capital to risk-weighted assets |
|
17.24 |
% |
|
|
17.31 |
% |
|
|
16.38 |
% |
|
|
17.24 |
% |
|
|
16.38 |
% |
Common equity Tier 1 capital to risk-weighted assets |
|
17.24 |
% |
|
|
17.31 |
% |
|
|
16.38 |
% |
|
|
17.24 |
% |
|
|
16.38 |
% |
Tier 1 risk-based capital to average assets |
|
11.56 |
% |
|
|
11.56 |
% |
|
|
11.37 |
% |
|
|
11.56 |
% |
|
|
11.37 |
% |
(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, 2023 |
|
September 30,2023 |
|
June 30, 2023 |
|
March 31, 2023 |
|
December 31, 2022 |
ASSETS |
|
|
|
|
|
|
|
|
|
Cash and due from banks |
$ |
53,062 |
|
|
$ |
42,413 |
|
|
$ |
36,662 |
|
|
$ |
34,491 |
|
|
$ |
37,824 |
|
Interest-bearing deposits in other banks |
|
252,364 |
|
|
|
279,786 |
|
|
|
185,409 |
|
|
|
194,727 |
|
|
|
240,568 |
|
Securities available-for-sale, at fair value |
|
570,092 |
|
|
|
529,046 |
|
|
|
588,478 |
|
|
|
611,794 |
|
|
|
614,407 |
|
Securities held-to-maturity, at amortized cost |
|
141,236 |
|
|
|
143,420 |
|
|
|
146,569 |
|
|
|
149,417 |
|
|
|
151,683 |
|
Equity securities, at fair value |
|
2,965 |
|
|
|
2,833 |
|
|
|
3,946 |
|
|
|
4,010 |
|
|
|
9,979 |
|
Nonmarketable equity securities |
|
2,239 |
|
|
|
2,190 |
|
|
|
4,330 |
|
|
|
3,506 |
|
|
|
3,478 |
|
Loans held for sale |
|
1,306 |
|
|
|
2,348 |
|
|
|
4,586 |
|
|
|
2,046 |
|
|
|
518 |
|
Loans held for investment |
|
1,992,858 |
|
|
|
1,948,606 |
|
|
|
1,947,631 |
|
|
|
1,921,850 |
|
|
|
1,916,267 |
|
Allowance for credit losses |
|
(21,336 |
) |
|
|
(21,183 |
) |
|
|
(21,085 |
) |
|
|
(20,854 |
) |
|
|
(20,628 |
) |
Premises and equipment, net |
|
57,088 |
|
|
|
56,466 |
|
|
|
55,566 |
|
|
|
55,065 |
|
|
|
54,383 |
|
Accrued interest receivable |
|
9,945 |
|
|
|
8,778 |
|
|
|
8,239 |
|
|
|
8,397 |
|
|
|
8,830 |
|
Bank-owned life insurance |
|
29,529 |
|
|
|
29,332 |
|
|
|
29,141 |
|
|
|
28,954 |
|
|
|
28,775 |
|
Intangible assets |
|
1,546 |
|
|
|
1,546 |
|
|
|
1,546 |
|
|
|
1,546 |
|
|
|
1,546 |
|
Right-of-use assets |
|
3,629 |
|
|
|
3,757 |
|
|
|
3,885 |
|
|
|
4,011 |
|
|
|
4,137 |
|
Other assets |
|
32,287 |
|
|
|
36,815 |
|
|
|
32,291 |
|
|
|
31,622 |
|
|
|
30,919 |
|
Total Assets |
$ |
3,128,810 |
|
|
$ |
3,066,153 |
|
|
$ |
3,027,194 |
|
|
$ |
3,030,582 |
|
|
$ |
3,082,686 |
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits |
$ |
916,456 |
|
|
$ |
972,155 |
|
|
$ |
989,509 |
|
|
$ |
1,060,042 |
|
|
$ |
1,090,539 |
|
Interest-bearing deposits |
|
1,885,432 |
|
|
|
1,787,738 |
|
|
|
1,674,674 |
|
|
|
1,671,343 |
|
|
|
1,708,397 |
|
Total Deposits |
|
2,801,888 |
|
|
|
2,759,893 |
|
|
|
2,664,183 |
|
|
|
2,731,385 |
|
|
|
2,798,936 |
|
Other borrowed funds |
|
— |
|
|
|
— |
|
|
|
60,000 |
|
|
|
— |
|
|
|
— |
|
Accrued interest payable |
|
8,000 |
|
|
|
6,800 |
|
|
|
4,098 |
|
|
|
2,433 |
|
|
|
1,563 |
|
Lease liabilities |
|
3,767 |
|
|
|
3,892 |
|
|
|
4,015 |
|
|
|
4,136 |
|
|
|
4,258 |
|
Accrued expenses and other liabilities |
|
11,304 |
|
|
|
13,617 |
|
|
|
11,526 |
|
|
|
15,988 |
|
|
|
12,176 |
|
Total Liabilities |
|
2,824,959 |
|
|
|
2,784,202 |
|
|
|
2,743,822 |
|
|
|
2,753,942 |
|
|
|
2,816,933 |
|
COMMITMENTS AND
CONTINGENCIES |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
Preferred stock, no par value |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Common stock, no par value |
|
55,136 |
|
|
|
58,031 |
|
|
|
59,187 |
|
|
|
59,788 |
|
|
|
60,050 |
|
Additional paid-in capital |
|
2,407 |
|
|
|
2,327 |
|
|
|
2,248 |
|
|
|
2,157 |
|
|
|
2,088 |
|
Retained earnings |
|
306,802 |
|
|
|
299,079 |
|
|
|
291,630 |
|
|
|
283,236 |
|
|
|
274,781 |
|
Accumulated other comprehensive income (loss) |
|
(60,494 |
) |
|
|
(77,486 |
) |
|
|
(69,693 |
) |
|
|
(68,541 |
) |
|
|
(71,166 |
) |
Total Stockholders’ Equity |
|
303,851 |
|
|
|
281,951 |
|
|
|
283,372 |
|
|
|
276,640 |
|
|
|
265,753 |
|
Total Liabilities and Stockholders’ Equity |
$ |
3,128,810 |
|
|
$ |
3,066,153 |
|
|
$ |
3,027,194 |
|
|
$ |
3,030,582 |
|
|
$ |
3,082,686 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RED RIVER BANCSHARES, INC. |
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) |
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
For the Year Ended |
(in thousands) |
December 31, 2023 |
|
September 30, 2023 |
|
December 31, 2022 |
|
December 31, 2023 |
|
December 31, 2022 |
INTEREST AND DIVIDEND
INCOME |
|
|
|
|
|
|
|
|
|
Interest and fees on loans |
$ |
24,898 |
|
|
$ |
23,925 |
|
|
$ |
21,284 |
|
|
$ |
93,439 |
|
|
$ |
75,827 |
|
Interest on securities |
|
3,656 |
|
|
|
3,404 |
|
|
|
3,524 |
|
|
|
14,291 |
|
|
|
13,735 |
|
Interest on federal funds sold |
|
— |
|
|
|
— |
|
|
|
634 |
|
|
|
886 |
|
|
|
1,091 |
|
Interest on deposits in other banks |
|
3,438 |
|
|
|
2,950 |
|
|
|
1,522 |
|
|
|
9,797 |
|
|
|
3,682 |
|
Dividends on stock |
|
49 |
|
|
|
45 |
|
|
|
18 |
|
|
|
155 |
|
|
|
40 |
|
Total Interest and Dividend Income |
|
32,041 |
|
|
|
30,324 |
|
|
|
26,982 |
|
|
|
118,568 |
|
|
|
94,375 |
|
INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
Interest on deposits |
|
10,747 |
|
|
|
9,562 |
|
|
|
3,308 |
|
|
|
32,066 |
|
|
|
7,736 |
|
Interest on other borrowed funds |
|
— |
|
|
|
37 |
|
|
|
— |
|
|
|
64 |
|
|
|
— |
|
Total Interest Expense |
|
10,747 |
|
|
|
9,599 |
|
|
|
3,308 |
|
|
|
32,130 |
|
|
|
7,736 |
|
Net Interest
Income |
|
21,294 |
|
|
|
20,725 |
|
|
|
23,674 |
|
|
|
86,438 |
|
|
|
86,639 |
|
Provision for credit losses |
|
250 |
|
|
|
185 |
|
|
|
750 |
|
|
|
735 |
|
|
|
1,750 |
|
Net Interest Income
After Provision for Credit Losses |
|
21,044 |
|
|
|
20,540 |
|
|
|
22,924 |
|
|
|
85,703 |
|
|
|
84,889 |
|
NONINTEREST INCOME |
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts |
|
1,459 |
|
|
|
1,489 |
|
|
|
1,359 |
|
|
|
5,776 |
|
|
|
5,565 |
|
Debit card income, net |
|
875 |
|
|
|
830 |
|
|
|
972 |
|
|
|
3,563 |
|
|
|
3,897 |
|
Mortgage loan income |
|
441 |
|
|
|
604 |
|
|
|
453 |
|
|
|
1,965 |
|
|
|
3,096 |
|
Brokerage income |
|
1,039 |
|
|
|
1,029 |
|
|
|
1,013 |
|
|
|
3,798 |
|
|
|
3,549 |
|
Loan and deposit income |
|
575 |
|
|
|
571 |
|
|
|
440 |
|
|
|
2,140 |
|
|
|
1,723 |
|
Bank-owned life insurance income |
|
197 |
|
|
|
191 |
|
|
|
180 |
|
|
|
754 |
|
|
|
713 |
|
Gain (Loss) on equity securities |
|
132 |
|
|
|
(113 |
) |
|
|
(21 |
) |
|
|
(14 |
) |
|
|
(468 |
) |
Gain (Loss) on sale and call of securities |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(59 |
) |
SBIC income |
|
393 |
|
|
|
920 |
|
|
|
162 |
|
|
|
2,873 |
|
|
|
563 |
|
Other income (loss) |
|
76 |
|
|
|
60 |
|
|
|
61 |
|
|
|
259 |
|
|
|
168 |
|
Total Noninterest Income |
|
5,187 |
|
|
|
5,581 |
|
|
|
4,619 |
|
|
|
21,114 |
|
|
|
18,747 |
|
OPERATING EXPENSES |
|
|
|
|
|
|
|
|
|
Personnel expenses |
|
9,233 |
|
|
|
9,461 |
|
|
|
8,681 |
|
|
|
37,241 |
|
|
|
34,560 |
|
Occupancy and equipment expenses |
|
1,647 |
|
|
|
1,663 |
|
|
|
1,613 |
|
|
|
6,581 |
|
|
|
6,109 |
|
Technology expenses |
|
693 |
|
|
|
675 |
|
|
|
645 |
|
|
|
2,759 |
|
|
|
2,763 |
|
Advertising |
|
347 |
|
|
|
331 |
|
|
|
293 |
|
|
|
1,302 |
|
|
|
1,134 |
|
Other business development expenses |
|
537 |
|
|
|
522 |
|
|
|
566 |
|
|
|
1,987 |
|
|
|
1,645 |
|
Data processing expense |
|
631 |
|
|
|
651 |
|
|
|
609 |
|
|
|
2,320 |
|
|
|
2,093 |
|
Other taxes |
|
679 |
|
|
|
664 |
|
|
|
781 |
|
|
|
2,721 |
|
|
|
2,714 |
|
Loan and deposit expenses |
|
256 |
|
|
|
238 |
|
|
|
180 |
|
|
|
984 |
|
|
|
659 |
|
Legal and professional expenses |
|
664 |
|
|
|
616 |
|
|
|
550 |
|
|
|
2,378 |
|
|
|
1,997 |
|
Regulatory assessment expenses |
|
423 |
|
|
|
419 |
|
|
|
277 |
|
|
|
1,645 |
|
|
|
1,058 |
|
Other operating expenses |
|
913 |
|
|
|
990 |
|
|
|
887 |
|
|
|
3,955 |
|
|
|
3,923 |
|
Total Operating Expenses |
|
16,023 |
|
|
|
16,230 |
|
|
|
15,082 |
|
|
|
63,873 |
|
|
|
58,655 |
|
Income Before Income
Tax Expense |
|
10,208 |
|
|
|
9,891 |
|
|
|
12,461 |
|
|
|
42,944 |
|
|
|
44,981 |
|
Income tax expense |
|
1,916 |
|
|
|
1,870 |
|
|
|
2,270 |
|
|
|
8,065 |
|
|
|
8,065 |
|
Net
Income |
$ |
8,292 |
|
|
$ |
8,021 |
|
|
$ |
10,191 |
|
|
$ |
34,879 |
|
|
$ |
36,916 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RED RIVER BANCSHARES, INC. |
NET INTEREST INCOME AND NET INTEREST MARGIN
(UNAUDITED) |
|
|
For the Three Months Ended |
|
December 31, 2023 |
|
September 30, 2023 |
(dollars in thousands) |
AverageBalanceOutstanding |
|
InterestIncome/Expense |
|
AverageYield/Rate |
|
AverageBalanceOutstanding |
|
InterestIncome/Expense |
|
AverageYield/Rate |
Assets |
|
|
|
|
|
|
|
|
|
|
|
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
Loans(1,2) |
$ |
1,973,513 |
|
|
$ |
24,898 |
|
|
|
4.94 |
% |
|
$ |
1,947,794 |
|
|
$ |
23,925 |
|
|
|
4.81 |
% |
Securities - taxable |
|
568,147 |
|
|
|
2,634 |
|
|
|
1.85 |
% |
|
|
584,319 |
|
|
|
2,374 |
|
|
|
1.62 |
% |
Securities - tax-exempt |
|
199,480 |
|
|
|
1,022 |
|
|
|
2.05 |
% |
|
|
201,569 |
|
|
|
1,030 |
|
|
|
2.04 |
% |
Interest-bearing deposits in other banks |
|
250,483 |
|
|
|
3,438 |
|
|
|
5.41 |
% |
|
|
215,920 |
|
|
|
2,950 |
|
|
|
5.38 |
% |
Nonmarketable equity securities |
|
2,192 |
|
|
|
49 |
|
|
|
8.95 |
% |
|
|
4,213 |
|
|
|
45 |
|
|
|
4.23 |
% |
Total interest-earning assets |
|
2,993,815 |
|
|
$ |
32,041 |
|
|
|
4.20 |
% |
|
|
2,953,815 |
|
|
$ |
30,324 |
|
|
|
4.03 |
% |
Allowance for credit
losses |
|
(21,158 |
) |
|
|
|
|
|
|
(21,050 |
) |
|
|
|
|
Noninterest-earning
assets |
|
82,225 |
|
|
|
|
|
|
|
87,545 |
|
|
|
|
|
Total assets |
$ |
3,054,882 |
|
|
|
|
|
|
$ |
3,020,310 |
|
|
|
|
|
Liabilities and Stockholders’ Equity |
Interest-bearing
liabilities: |
Interest-bearing transaction deposits |
$ |
1,219,766 |
|
|
$ |
5,430 |
|
|
|
1.77 |
% |
|
$ |
1,212,226 |
|
|
$ |
5,083 |
|
|
|
1.66 |
% |
Time deposits |
|
556,815 |
|
|
|
5,317 |
|
|
|
3.79 |
% |
|
|
523,274 |
|
|
|
4,479 |
|
|
|
3.40 |
% |
Total interest-bearing deposits |
|
1,776,581 |
|
|
|
10,747 |
|
|
|
2.40 |
% |
|
|
1,735,500 |
|
|
|
9,562 |
|
|
|
2.19 |
% |
Other borrowings |
|
— |
|
|
|
— |
|
|
|
— |
% |
|
|
2,609 |
|
|
|
37 |
|
|
|
5.49 |
% |
Total interest-bearing liabilities |
|
1,776,581 |
|
|
$ |
10,747 |
|
|
|
2.40 |
% |
|
|
1,738,109 |
|
|
$ |
9,599 |
|
|
|
2.19 |
% |
Noninterest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits |
|
968,715 |
|
|
|
|
|
|
|
973,723 |
|
|
|
|
|
Accrued interest and other liabilities |
|
26,637 |
|
|
|
|
|
|
|
22,992 |
|
|
|
|
|
Total noninterest-bearing liabilities |
|
995,352 |
|
|
|
|
|
|
|
996,715 |
|
|
|
|
|
Stockholders’ equity |
|
282,949 |
|
|
|
|
|
|
|
285,486 |
|
|
|
|
|
Total liabilities and stockholders’ equity |
$ |
3,054,882 |
|
|
|
|
|
|
$ |
3,020,310 |
|
|
|
|
|
Net interest
income |
|
$ |
21,294 |
|
|
|
|
|
|
$ |
20,725 |
|
|
|
Net interest
spread |
|
|
|
|
1.80 |
% |
|
|
|
|
|
|
1.84 |
% |
Net interest
margin |
|
|
|
|
2.78 |
% |
|
|
|
|
|
|
2.74 |
% |
Net interest
margin FTE(3) |
|
|
|
|
2.82 |
% |
|
|
|
|
|
|
2.78 |
% |
Cost of
deposits |
|
|
|
|
1.55 |
% |
|
|
|
|
|
|
1.40 |
% |
Cost of funds |
|
|
|
|
1.42 |
% |
|
|
|
|
|
|
1.29 |
% |
(1) |
Includes average outstanding balances of loans held for sale of
$2.3 million and $2.8 million for the three months ended
December 31, 2023 and September 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 Year Ended December 31, |
|
|
2023 |
|
|
|
2022 |
|
(dollars in thousands) |
AverageBalanceOutstanding |
|
InterestIncome/Expense |
|
AverageYield/Rate |
|
AverageBalanceOutstanding |
|
InterestIncome/Expense |
|
AverageYield/Rate |
Assets |
|
|
|
|
|
|
|
|
|
|
|
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
Loans(1,2) |
$ |
1,943,381 |
|
|
$ |
93,439 |
|
|
|
4.74 |
% |
|
$ |
1,816,538 |
|
|
$ |
75,827 |
|
|
|
4.12 |
% |
Securities - taxable |
|
605,692 |
|
|
|
10,169 |
|
|
|
1.68 |
% |
|
|
637,239 |
|
|
|
9,524 |
|
|
|
1.49 |
% |
Securities - tax-exempt |
|
202,673 |
|
|
|
4,122 |
|
|
|
2.03 |
% |
|
|
210,056 |
|
|
|
4,211 |
|
|
|
2.00 |
% |
Federal funds sold |
|
18,594 |
|
|
|
886 |
|
|
|
4.70 |
% |
|
|
56,958 |
|
|
|
1,091 |
|
|
|
1.89 |
% |
Interest-bearing deposits in other banks |
|
188,199 |
|
|
|
9,797 |
|
|
|
5.17 |
% |
|
|
329,096 |
|
|
|
3,682 |
|
|
|
1.11 |
% |
Nonmarketable equity securities |
|
3,353 |
|
|
|
155 |
|
|
|
4.61 |
% |
|
|
3,453 |
|
|
|
40 |
|
|
|
1.16 |
% |
Total interest-earning assets |
|
2,961,892 |
|
|
$ |
118,568 |
|
|
|
3.96 |
% |
|
|
3,053,340 |
|
|
$ |
94,375 |
|
|
|
3.06 |
% |
Allowance for credit
losses |
|
(20,980 |
) |
|
|
|
|
|
|
(19,608 |
) |
|
|
|
|
Noninterest-earning
assets |
|
86,939 |
|
|
|
|
|
|
|
100,543 |
|
|
|
|
|
Total assets |
$ |
3,027,851 |
|
|
|
|
|
|
$ |
3,134,275 |
|
|
|
|
|
Liabilities and
Stockholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing transaction deposits |
$ |
1,249,259 |
|
|
$ |
17,555 |
|
|
|
1.41 |
% |
|
$ |
1,360,612 |
|
|
$ |
4,071 |
|
|
|
0.30 |
% |
Time deposits |
|
470,522 |
|
|
|
14,511 |
|
|
|
3.08 |
% |
|
|
329,480 |
|
|
|
3,665 |
|
|
|
1.11 |
% |
Total interest-bearing deposits |
|
1,719,781 |
|
|
|
32,066 |
|
|
|
1.86 |
% |
|
|
1,690,092 |
|
|
|
7,736 |
|
|
|
0.46 |
% |
Other borrowings |
|
1,151 |
|
|
|
64 |
|
|
|
5.49 |
% |
|
|
— |
|
|
|
— |
|
|
|
— |
% |
Total interest-bearing liabilities |
|
1,720,932 |
|
|
$ |
32,130 |
|
|
|
1.87 |
% |
|
|
1,690,092 |
|
|
$ |
7,736 |
|
|
|
0.46 |
% |
Noninterest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits |
|
1,004,107 |
|
|
|
|
|
|
|
1,161,995 |
|
|
|
|
|
Accrued interest and other liabilities |
|
22,385 |
|
|
|
|
|
|
|
18,111 |
|
|
|
|
|
Total noninterest-bearing liabilities |
|
1,026,492 |
|
|
|
|
|
|
|
1,180,106 |
|
|
|
|
|
Stockholders’ equity |
|
280,427 |
|
|
|
|
|
|
|
264,077 |
|
|
|
|
|
Total liabilities and stockholders’ equity |
$ |
3,027,851 |
|
|
|
|
|
|
$ |
3,134,275 |
|
|
|
|
|
Net interest income |
|
|
$ |
86,438 |
|
|
|
|
|
|
$ |
86,639 |
|
|
|
Net interest spread |
|
|
|
|
|
2.09 |
% |
|
|
|
|
|
|
2.60 |
% |
Net interest margin |
|
|
|
|
|
2.87 |
% |
|
|
|
|
|
|
2.80 |
% |
Net interest margin
FTE(3) |
|
|
|
|
|
2.91 |
% |
|
|
|
|
|
|
2.86 |
% |
Cost of deposits |
|
|
|
|
|
1.18 |
% |
|
|
|
|
|
|
0.27 |
% |
Cost of funds |
|
|
|
|
|
1.08 |
% |
|
|
|
|
|
|
0.25 |
% |
(1) |
Includes average outstanding balances of loans held for sale of
$2.4 million and $3.3 million for the years ended December 31,
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) |
December 31,2023 |
|
September 30,2023 |
|
December 31,2022 |
Tangible common equity |
|
|
|
|
|
Total stockholders’ equity |
$ |
303,851 |
|
|
$ |
281,951 |
|
|
$ |
265,753 |
|
Adjustments: |
|
|
|
|
|
Intangible assets |
|
(1,546 |
) |
|
|
(1,546 |
) |
|
|
(1,546 |
) |
Total tangible common equity (non-GAAP) |
$ |
302,305 |
|
|
$ |
280,405 |
|
|
$ |
264,207 |
|
Realized common equity |
|
|
|
|
|
Total stockholders’ equity |
$ |
303,851 |
|
|
$ |
281,951 |
|
|
$ |
265,753 |
|
Adjustments: |
|
|
|
|
|
Accumulated other comprehensive (income) loss |
|
60,494 |
|
|
|
77,486 |
|
|
|
71,166 |
|
Total realized common equity (non-GAAP) |
$ |
364,345 |
|
|
$ |
359,437 |
|
|
$ |
336,919 |
|
Common shares outstanding |
|
7,091,637 |
|
|
|
7,150,685 |
|
|
|
7,183,915 |
|
Book value per share |
$ |
42.85 |
|
|
$ |
39.43 |
|
|
$ |
36.99 |
|
Tangible book value per share
(non-GAAP) |
$ |
42.63 |
|
|
$ |
39.21 |
|
|
$ |
36.78 |
|
Realized book value per share
(non-GAAP) |
$ |
51.38 |
|
|
$ |
50.27 |
|
|
$ |
46.90 |
|
|
|
|
|
|
|
Tangible assets |
|
|
|
|
|
Total assets |
$ |
3,128,810 |
|
|
$ |
3,066,153 |
|
|
$ |
3,082,686 |
|
Adjustments: |
|
|
|
|
|
Intangible assets |
|
(1,546 |
) |
|
|
(1,546 |
) |
|
|
(1,546 |
) |
Total tangible assets (non-GAAP) |
$ |
3,127,264 |
|
|
$ |
3,064,607 |
|
|
$ |
3,081,140 |
|
Total stockholders’ equity to
assets |
|
9.71 |
% |
|
|
9.20 |
% |
|
|
8.62 |
% |
Tangible common equity to
tangible assets (non-GAAP) |
|
9.67 |
% |
|
|
9.15 |
% |
|
|
8.57 |
% |
Red River Bancshares (NASDAQ:RRBI)
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From Apr 2024 to May 2024
Red River Bancshares (NASDAQ:RRBI)
Historical Stock Chart
From May 2023 to May 2024