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 second quarter of 2023.
Net income for the second quarter of 2023 was $9.0 million, or
$1.25 per diluted common share (“EPS”), a decrease of $630,000, or
6.6%, compared to $9.6 million, or $1.33 EPS, for the first quarter
of 2023. For the second quarter of 2023, the quarterly return on
assets was 1.20%, and the quarterly return on equity was
12.78%.
Net income for the six months ended June 30, 2023, was
$18.6 million, or $2.58 EPS, an increase of $2.0 million, or 12.3%,
compared to $16.5 million, or $2.30 EPS, for the six months ended
June 30, 2022. For the six months ended June 30, 2023,
the return on assets was 1.24%, and the return on equity was
13.54%.
Second Quarter
2023 Performance and Operational
Highlights
In the second quarter of 2023, the Company had a fairly
consistent balance sheet, increased capital ratios, steady
liquidity, and reduced earnings. Net interest income, net interest
margin, and net income decreased as a result of higher interest
expense on deposits. Activity in the stock repurchase program was
higher than in the prior quarter.
- As of June 30, 2023, assets were $3.03
billion, consistent with March 31, 2023. Total assets were impacted
by a $67.2 million decrease in deposits, offset by $60.0 million of
new Federal Home Loan Bank (“FHLB”) advances.
- Deposits totaled $2.66 billion as of
June 30, 2023, a decrease of $67.2 million, or 2.5%, compared to
$2.73 billion as of March 31, 2023. During the second quarter of
2023, in addition to the slight decrease in total deposits, there
was also a shift of balances between deposit categories due to
customers moving funds from lower yielding categories to higher
yielding categories.
- As of June 30, 2023, loans held for
investment (“HFI”) were $1.95 billion, an increase of $25.8
million, or 1.3%, compared to $1.92 billion as of March 31, 2023.
During the second quarter of 2023, new loan originations were
partially offset by loan payments and paydowns.
- As of June 30, 2023, total securities
were $739.0 million compared to $765.2 million as of March 31,
2023. Securities decreased $26.2 million primarily due to
maturities and principal repayments exceeding purchases.
- In the second quarter of 2023, the
Company maintained an average of $182.0 million of liquid assets,
which are cash and cash equivalents. The liquid assets to assets
ratio was 7.34% as of June 30, 2023.
- In the second quarter of 2023, the Bank
recorded $60.0 million in borrowings from the FHLB.
- Net income for the second quarter of
2023 was $9.0 million, which was $630,000, or 6.6%, lower than the
prior quarter mainly due to higher interest expense on deposits.
Net income benefited from a $1.2 million, or 666.7%, increase in
Small Business Investment Company (“SBIC”) income between the
second quarter of 2023 and the prior quarter.
- Net interest income and net interest
margin fully tax equivalent (“FTE”) decreased in the second quarter
of 2023 compared to the prior quarter. Net interest income was
$21.5 million for the second quarter of 2023 compared to $22.9
million for the prior quarter. Net interest margin FTE was 2.96%
for the second quarter of 2023 compared to 3.13% for the prior
quarter. These decreases were mainly due to the higher interest
rate environment resulting in intensified deposit rate pressure and
higher deposit costs.
- The current expected credit loss
(“CECL”) methodology became effective for the Bank on January 1,
2023. No provision expense was recorded in the first quarter of
2023. Provision expense for the second quarter of 2023 was
$300,000.
- As of June 30, 2023, nonperforming
assets (“NPA(s)”) were $2.0 million, or 0.07% of assets, and the
allowance for credit losses (“ACL”) was $21.1 million, or 1.08% of
loans HFI.
- Capital ratios increased in the second
quarter of 2023. The June 30, 2023 leverage ratio was 11.48% and
the equity to assets ratio was 9.36%.
- We paid a quarterly cash dividend of
$0.08 per common share in the second 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 second quarter of 2023, we repurchased 11,894 shares
of our common stock at an aggregate cost of $601,000.
- Recently, S&P Market Intelligence
ranked the Bank 45th of the top 50 best-performing community banks
in 2022 with assets between $3.0 and $10.0 billion.
Blake Chatelain, President and Chief Executive Officer stated,
“We are pleased to report steady financial results for the second
quarter of 2023. These include consistent assets, higher capital
ratios, solid liquidity, and good earnings.
“The interest rate environment continued to be challenging as we
navigated significant deposit rate competition, higher deposit
costs, and reduced net interest income and net income compared to
the prior quarter. Earning asset yields improved; however, we
anticipate continued deposit rate pressure and net interest margin
challenges.
“Economic uncertainty and higher interest rates continued to
dampen loan demand; however, active calling efforts by our lenders
and new market expansion generated loan growth. Our loans HFI
increased by $25.8 million, or 1.3%, during the second quarter of
2023. Deposits contracted slightly, primarily due to changes to
public entity balances and customers making income tax payments and
moving their funds to outside products. Overall, our liquidity
position remained strong with minimal borrowings.
“Economies have cycles with periods of expansion and
contraction. The current cycle is unique as the economy recovers
from the COVID-19 pandemic, combined with record levels of
government fiscal stimulus and the rapid, and significant, increase
in interest rates. We believe that this environment requires
prudent, conservative banking principles and continued focus on
customer oriented, relationship banking services. We remain
cautiously optimistic about the future economic environment and
believe we are well positioned for any potential headwinds.
“We were very pleased to be selected as a Top 50 Community Bank
in 2022 by S&P Market Intelligence. Our 45th ranking is an
honor and a reflection of our financial performance and
strength.”
Liquidity
As of June 30, 2023, we had sufficient liquid assets available
and $1.27 billion in available borrowing capacity.
Cash and cash equivalents were $222.1 million as of June 30,
2023, and averaged $182.0 million for the second quarter of 2023.
The liquid assets to assets ratio was 7.34% as of June 30,
2023.
Our securities available-for-sale (“AFS”) portfolio is an
alternative source for meeting liquidity needs. Securities AFS
generate cash flow through principal repayments, calls, and
maturities, and can be sold or used as collateral in borrowings. As
of June 30, 2023, securities AFS totaled $588.5 million. We
project receipt of approximately $100.0 million of principal
repayments through December 31, 2023. Certain investments within
our securities AFS portfolio are also used to secure public entity
deposits, which impacts their liquidity. As of June 30, 2023,
$189.4 million, or 32.2% of the securities AFS portfolio, were
pledged to secure public entity deposits.
In addition, FHLB advances may 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. In the second
quarter of 2023, we recorded $60.0 million in short-term advances
from the FHLB. This borrowing was a result of the uncertainty
regarding deposit activity and the decision to bolster liquidity
while also testing our borrowing lines. As of June 30, 2023, our
borrowing capacity from the FHLB was $830.7 million, net of $60.0
million in advances and $10.9 million of letters of credit from the
FHLB used as collateral for our public entity deposits. The $60.0
million advance matured in July 2023.
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 June 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.
As of June 30, 2023, our eligible securities totaled approximately
$336.7 million.
Net Interest Income and Net Interest Margin
FTE
Net interest income and net interest margin FTE for the second
quarter of 2023 continued to be negatively impacted by heightened
deposit rate pressures in the banking industry. The Federal Open
Market Committee (“FOMC”) increased the federal funds rate by 50
basis points (“bp(s)”) in the first quarter and by 25 bps in the
second quarter. These increases were in addition to the 425 bp
increases in 2022.
Net interest income for the second quarter of 2023 was $21.5
million, which was $1.4 million, or 6.1%, lower than the first
quarter of 2023, due to a $2.1 million increase in interest
expense, partially offset by a $739,000 increase in interest and
dividend income. The increase in interest expense was due to
increased deposit rates combined with larger balances in higher
cost deposit accounts. In responding to deposit rate competition,
we increased the rates on time deposits and certain
interest-bearing transaction deposits. The cost of deposits
increased 32 bps to 1.03% for the second quarter of 2023 from 0.71%
for the prior quarter. The increase in interest and dividend income
was primarily due to an increase in income on loans, partially
offset by a decrease in interest income on short-term liquid
assets. Loan income increased $1.1 million due to higher rates on
new, renewed, and floating rate loans. The rate on these loans was
7.09% for the second quarter of 2023 compared to 6.68% for the
prior quarter. Income on short-term liquid assets decreased
$451,000 due to a decrease in these balances during the second
quarter.
The net interest margin FTE decreased 17 bps to 2.96% for the
second quarter of 2023, compared to 3.13% for the prior quarter.
This decrease was driven primarily by higher deposit rates as a
result of the deposit rate pressures. As we increased rates on
several of our deposit products, we continued to experience a
change in the deposit mix due to customers moving deposits from
lower yielding accounts to higher yielding accounts. The rate on
time deposits increased 71 bps, and the rate on interest-bearing
transaction deposits increased by 37 bps. The shift in deposit mix,
combined with the increase in rates on these accounts, increased
the total cost of deposits by 32 bps. The higher cost of deposits
was partially offset by a 14 bp increase in the yield on loans and
a 49 bp increase in the yield on short-term liquid assets, 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. For the remainder of 2023, we
anticipate receiving approximately $100.0 million in cash flows
from our securities portfolio that should be redeployed into higher
yielding assets and should benefit both net interest income and net
interest margin FTE. We continue to experience additional pressure
on deposit interest rates due to the higher interest rate
environment and competition for deposits. As of June 30, 2023,
floating rate loans were 13.3% of loans HFI, and floating rate
transaction deposits were 3.9% 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
remainder of 2023.
Provision for Credit Losses
The provision for credit losses for the second quarter of 2023
was $300,000. No provision expense was recorded in the first
quarter of 2023 under the new CECL methodology. The provision in
the second 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 $6.0 million for the second quarter
of 2023, an increase of $1.7 million, or 38.4%, compared to
$4.3 million for the previous quarter. The increase was mainly due
to higher SBIC, mortgage, and brokerage income.
SBIC income for the second quarter of 2023 was
$1.4 million, an increase of $1.2 million, or 666.7%,
from the prior quarter primarily due to the sale of an investment
by the SBIC. We expect this income to be lower in future
quarters.
Mortgage loan income for the second quarter of 2023 was
$645,000, an increase of $370,000, or 134.5%, compared to $275,000
for the first quarter of 2023. This increase was mainly driven by
improved purchase activity as consumers adjusted to the higher
interest rate environment.
Brokerage income increased $116,000, or 14.4%, to $923,000 for
the second quarter of 2023, compared to $807,000 for the first
quarter of 2023. The higher income in the second quarter was
largely due to investing activities of new and existing clients.
Assets under management were $997.3 million as of June 30,
2023.
Operating Expenses
Operating expenses for the second quarter of 2023 totaled $16.1
million, an increase of $644,000, or 4.2%, compared to $15.5
million for the previous quarter. This increase was mainly due to
higher personnel expenses and data processing expense, partially
offset by lower occupancy and equipment expenses and technology
expenses.
Personnel expenses totaled $9.5 million for the second
quarter of 2023, an increase of $547,000, or 6.1%, from the
previous quarter. This increase was primarily due to annual merit
raises effective April 2023, higher personnel health insurance
expenses, and higher commission compensation. As of June 30, 2023
and March 31, 2023, we had 353 and 352 total employees,
respectively.
Data processing expense totaled $638,000 for the second quarter
of 2023, an increase of $238,000, or 59.5%, from the previous
quarter. This increase was primarily attributable to receipt of a
$252,000 periodic refund from our data processing center in the
first quarter of 2023.
Occupancy and equipment expenses totaled $1.6 million for
the second quarter of 2023, a decrease of $163,000, or 9.5%, from
the previous quarter. This decrease was primarily attributable to
$161,000 of nonrecurring expenses related to opening our new
operations center building in the first quarter of 2023 compared to
$28,000 of nonrecurring expenses related to the expansion of a
banking center in the Southwest market in the second quarter of
2023.
Technology expenses totaled $642,000 for the second quarter of
2023, a decrease of $106,000, or 14.2%, from the previous quarter.
This decrease was mainly due to the renegotiation of a contract
with a technology vendor, which resulted in lower expenses
effective in the second quarter of 2023.
Asset Overview
As of June 30, 2023, assets were $3.03 billion, consistent
with assets as of March 31, 2023. In the second quarter, assets
were impacted by a $67.2 million, or 2.5%, decrease in deposits
offset by $60.0 million of new short-term borrowings from the FHLB.
During the second quarter of 2023, liquid assets decreased $7.1
million, or 3.1%, to $222.1 million and were 7.34% of assets as of
June 30, 2023. Total securities decreased $26.2 million, or 3.4%,
to $739.0 million in the second quarter and were 24.4% of assets as
of June 30, 2023. As of June 30, 2023, loans HFI were $1.95
billion, an increase of $25.8 million, or 1.3%, compared to the
prior quarter. The loans HFI to deposits ratio was 73.10% as of
June 30, 2023, compared to 70.36% as of March 31, 2023.
Securities
Total securities as of June 30, 2023, were $739.0 million,
a decrease of $26.2 million, or 3.4%, from March 31, 2023.
Securities decreased primarily due to maturities and principal
repayments exceeding purchases.
The estimated fair value of securities AFS totaled $588.5
million, net of $73.0 million of unrealized loss as of
June 30, 2023, compared to $611.8 million, net of $71.2
million of unrealized loss as of March 31, 2023. As of
June 30, 2023, the amortized cost of securities
held-to-maturity (“HTM”) totaled $146.6 million compared to $149.4
million as of March 31, 2023. As of June 30, 2023, securities
HTM had an unrealized loss of $22.1 million compared to $19.9
million as of March 31, 2023.
As of June 30, 2023, equity securities, which is an
investment in a CRA mutual fund consisting primarily of bonds,
totaled $3.9 million compared to $4.0 million as of March 31,
2023.
Loans
Loans HFI as of June 30, 2023, totaled $1.95 billion, an
increase of $25.8 million, or 1.3%, from March 31, 2023. In the
second quarter of 2023, new loan originations were partially offset
by payments and paydowns.
Loans HFI by Category |
|
June 30, 2023 |
|
March 31, 2023 |
(dollars in thousands) |
Amount |
|
Percent |
|
Amount |
|
Percent |
Real estate: |
|
|
|
|
|
|
|
Commercial real estate |
$ |
819,260 |
|
42.1 |
% |
|
$ |
805,160 |
|
41.9 |
% |
One-to-four family residential |
|
565,725 |
|
29.1 |
% |
|
|
550,542 |
|
28.7 |
% |
Construction and development |
|
138,450 |
|
7.1 |
% |
|
|
145,967 |
|
7.6 |
% |
Commercial and industrial |
|
320,257 |
|
16.4 |
% |
|
|
315,738 |
|
16.4 |
% |
SBA PPP, net of deferred
income |
|
13 |
|
— |
% |
|
|
14 |
|
— |
% |
Tax-exempt |
|
75,697 |
|
3.9 |
% |
|
|
76,825 |
|
4.0 |
% |
Consumer |
|
28,229 |
|
1.4 |
% |
|
|
27,604 |
|
1.4 |
% |
Total loans HFI |
$ |
1,947,631 |
|
100.0 |
% |
|
$ |
1,921,850 |
|
100.0 |
% |
Health care loans are our largest industry concentration and are
made up of a diversified portfolio of health care providers. As of
June 30, 2023, total health care loans were 8.2% of loans HFI.
Within the health care sector, loans to physician and dental
practices were 4.1% of loans HFI, and loans to nursing and
residential care facilities were 4.0% of loans HFI. The average
health care loan size was $338,000 as of June 30, 2023.
On March 5, 2021, it was announced that certain U.S. Dollar
London Interbank Offered Rate (“LIBOR”) rates would cease to be
published after June 30, 2023. As of June 30, 2023, 1.2% of
our loans HFI were LIBOR-based with a setting that expired June 30,
2023. Alternative rate language was present in each credit
agreement with a LIBOR-based rate. Effective July 1, 2023, these
loans were converted to the alternative reference rate.
Asset Quality and Allowance for Credit
Losses
NPAs totaled $2.0 million as of June 30, 2023, down
$403,000, or 16.9%, from March 31, 2023, primarily due to payments
on nonaccrual loans. The ratio of NPAs to assets was 0.07% as of
June 30, 2023, and 0.08% as of March 31, 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 June 30, 2023, the ACL was $21.1 million, and the
ratio of ACL to loans HFI was 1.08%. As of March 31, 2023, the
ratio of ACL to loans HFI was 1.09%. The net charge-offs to average
loans ratio was 0.00% for the second and first quarters of
2023.
Deposits
As of June 30, 2023, deposits were $2.66 billion, a
decrease of $67.2 million, or 2.5%, compared to March 31, 2023.
Average deposits for the second quarter of 2023 were $2.69 billion,
a decrease of $66.5 million, or 2.4%, from the prior quarter. The
following tables provide details on our deposit portfolio:
Deposits by Account Type |
|
June 30, 2023 |
|
March 31, 2023 |
|
Change from March 31, 2023 to
June 30, 2023 |
(dollars in thousands) |
Balance |
|
% of Total |
|
Balance |
|
% of Total |
|
$ Change |
|
% Change |
Noninterest-bearing demand
deposits |
$ |
989,509 |
|
37.1 |
% |
|
$ |
1,060,042 |
|
38.8 |
% |
|
$ |
(70,533 |
) |
|
(6.7 |
)% |
Interest-bearing
deposits: |
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand deposits |
|
94,058 |
|
3.5 |
% |
|
|
97,196 |
|
3.5 |
% |
|
|
(3,138 |
) |
|
(3.2 |
)% |
NOW accounts |
|
384,676 |
|
14.5 |
% |
|
|
440,224 |
|
16.1 |
% |
|
|
(55,548 |
) |
|
(12.6 |
)% |
Money market accounts |
|
537,890 |
|
20.2 |
% |
|
|
542,573 |
|
19.9 |
% |
|
|
(4,683 |
) |
|
(0.9 |
)% |
Savings accounts |
|
179,053 |
|
6.7 |
% |
|
|
190,119 |
|
7.0 |
% |
|
|
(11,066 |
) |
|
(5.8 |
)% |
Time deposits less than or equal to $250,000 |
|
328,870 |
|
12.4 |
% |
|
|
278,937 |
|
10.2 |
% |
|
|
49,933 |
|
|
17.9 |
% |
Time deposits greater than $250,000 |
|
150,127 |
|
5.6 |
% |
|
|
122,294 |
|
4.5 |
% |
|
|
27,833 |
|
|
22.8 |
% |
Total interest-bearing deposits |
|
1,674,674 |
|
62.9 |
% |
|
|
1,671,343 |
|
61.2 |
% |
|
|
3,331 |
|
|
0.2 |
% |
Total deposits |
$ |
2,664,183 |
|
100.0 |
% |
|
$ |
2,731,385 |
|
100.0 |
% |
|
$ |
(67,202 |
) |
|
(2.5 |
)% |
Deposits by Customer Type |
|
|
June 30, 2023 |
|
March 31, 2023 |
|
Change from March 31, 2023 to
June 30, 2023 |
|
(dollars in thousands) |
Balance |
|
% of Total |
|
Balance |
|
% of Total |
|
$ Change |
|
% Change |
|
Consumer |
$ |
1,296,827 |
|
48.7 |
% |
|
$ |
1,313,245 |
|
48.1 |
% |
|
$ |
(16,418 |
) |
|
(1.3 |
)% |
Commercial |
|
1,196,156 |
|
44.9 |
% |
|
|
1,203,490 |
|
44.0 |
% |
|
|
(7,334 |
) |
|
(0.6 |
)% |
Public |
|
171,200 |
|
6.4 |
% |
|
|
214,650 |
|
7.9 |
% |
|
|
(43,450 |
) |
|
(20.2 |
)% |
Total deposits |
$ |
2,664,183 |
|
100.0 |
% |
|
$ |
2,731,385 |
|
100.0 |
% |
|
$ |
(67,202 |
) |
|
(2.5 |
)% |
Deposits decreased in the second quarter of 2023 as a result of
the changing interest rate environment impacting customer deposit
movement and activity, combined with normal tax payments. Also
during the second quarter of 2023, there was a deposit mix shift
between deposit categories as customers moved funds from lower
yielding categories to higher yielding categories.
The Bank has a granular, diverse deposit portfolio with
customers in a variety of industries throughout Louisiana. As of
June 30, 2023, the average deposit account size was
approximately $27,000.
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 June 30, 2023, we had $96.0 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 June 30, 2023, we had $94.1
million of interest-bearing demand deposit accounts.
As of June 30, 2023, our estimated uninsured deposits,
which are the portion of deposit accounts that exceed the FDIC
insurance limit (currently $250,000), were approximately $805.0
million, or 30.2% of total deposits. This amount was estimated
based on the same methodologies and assumptions used for regulatory
reporting purposes. Also, as of June 30, 2023, our estimated
uninsured deposits, excluding collateralized public entity
deposits, were approximately $672.6 million, or 25.2% of total
deposits. Our cash and cash equivalents of $222.1 million
combined with our available borrowing capacity of
$1.27 billion equaled 185.4% of our estimated uninsured
deposits and 221.9% of our estimated uninsured deposits, excluding
collateralized public entity deposits.
Stockholders’ Equity
Total stockholders’ equity as of June 30, 2023, was $283.4
million compared to $276.6 million as of March 31, 2023. The $6.7
million, or 2.4%, increase in stockholders’ equity was attributable
to $9.0 million of net income for the three months ended
June 30, 2023, and $91,000 of stock compensation, partially
offset by a $1.2 million, net of tax, increase to accumulated other
comprehensive loss related to securities, the repurchase of 11,894
shares of common stock for $601,000, and $574,000 in cash
dividends. We paid a quarterly cash dividend of $0.08 per share on
June 23, 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 theSix Months
Ended |
(Dollars in thousands, except
per share data) |
|
June 30,2023 |
|
March 31,2023 |
|
June 30,2022 |
|
June 30,2023 |
|
June 30,2022 |
Net
Income |
|
$ |
8,968 |
|
|
$ |
9,598 |
|
|
$ |
9,147 |
|
|
$ |
18,566 |
|
|
$ |
16,539 |
|
|
|
|
|
|
|
|
|
|
|
|
Per Common Share
Data: |
|
|
|
|
|
|
|
|
|
|
Earnings per share, basic |
|
$ |
1.25 |
|
|
$ |
1.34 |
|
|
$ |
1.27 |
|
|
$ |
2.59 |
|
|
$ |
2.30 |
|
Earnings per share, diluted |
|
$ |
1.25 |
|
|
$ |
1.33 |
|
|
$ |
1.27 |
|
|
$ |
2.58 |
|
|
$ |
2.30 |
|
Book value per share |
|
$ |
39.49 |
|
|
$ |
38.54 |
|
|
$ |
35.34 |
|
|
$ |
39.49 |
|
|
$ |
35.34 |
|
Tangible book value per share(1) |
|
$ |
39.28 |
|
|
$ |
38.33 |
|
|
$ |
35.12 |
|
|
$ |
39.28 |
|
|
$ |
35.12 |
|
Realized book value per share(1) |
|
$ |
49.21 |
|
|
$ |
48.09 |
|
|
$ |
44.23 |
|
|
$ |
49.21 |
|
|
$ |
44.23 |
|
Cash dividends per share |
|
$ |
0.08 |
|
|
$ |
0.08 |
|
|
$ |
0.07 |
|
|
$ |
0.16 |
|
|
$ |
0.14 |
|
Shares outstanding |
|
|
7,175,056 |
|
|
|
7,177,650 |
|
|
|
7,176,365 |
|
|
|
7,175,056 |
|
|
|
7,176,365 |
|
Weighted average shares outstanding, basic |
|
|
7,177,621 |
|
|
|
7,182,782 |
|
|
|
7,176,365 |
|
|
|
7,180,187 |
|
|
|
7,177,986 |
|
Weighted average shares outstanding, diluted |
|
|
7,194,634 |
|
|
|
7,196,354 |
|
|
|
7,196,643 |
|
|
|
7,197,412 |
|
|
|
7,198,624 |
|
|
|
|
|
|
|
|
|
|
|
|
Summary Performance
Ratios: |
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
|
1.20 |
% |
|
|
1.28 |
% |
|
|
1.15 |
% |
|
|
1.24 |
% |
|
|
1.04 |
% |
Return on average equity |
|
|
12.78 |
% |
|
|
14.33 |
% |
|
|
14.30 |
% |
|
|
13.54 |
% |
|
|
12.17 |
% |
Net interest margin |
|
|
2.91 |
% |
|
|
3.07 |
% |
|
|
2.70 |
% |
|
|
2.99 |
% |
|
|
2.55 |
% |
Net interest margin FTE |
|
|
2.96 |
% |
|
|
3.13 |
% |
|
|
2.75 |
% |
|
|
3.04 |
% |
|
|
2.61 |
% |
Efficiency ratio |
|
|
58.63 |
% |
|
|
56.84 |
% |
|
|
55.64 |
% |
|
|
57.74 |
% |
|
|
58.07 |
% |
Loans HFI to deposits ratio |
|
|
73.10 |
% |
|
|
70.36 |
% |
|
|
64.61 |
% |
|
|
73.10 |
% |
|
|
64.61 |
% |
Noninterest-bearing deposits to deposits ratio |
|
|
37.14 |
% |
|
|
38.81 |
% |
|
|
41.46 |
% |
|
|
37.14 |
% |
|
|
41.46 |
% |
Noninterest income to average assets |
|
|
0.81 |
% |
|
|
0.58 |
% |
|
|
0.61 |
% |
|
|
0.69 |
% |
|
|
0.58 |
% |
Operating expense to average assets |
|
|
2.16 |
% |
|
|
2.06 |
% |
|
|
1.82 |
% |
|
|
2.11 |
% |
|
|
1.80 |
% |
|
|
|
|
|
|
|
|
|
|
|
Summary Credit Quality
Ratios: |
|
|
|
|
|
|
|
|
|
|
Nonperforming assets to assets |
|
|
0.07 |
% |
|
|
0.08 |
% |
|
|
0.03 |
% |
|
|
0.07 |
% |
|
|
0.03 |
% |
Nonperforming loans to loans HFI |
|
|
0.10 |
% |
|
|
0.12 |
% |
|
|
0.02 |
% |
|
|
0.10 |
% |
|
|
0.02 |
% |
Allowance for credit losses to loans HFI |
|
|
1.08 |
% |
|
|
1.09 |
% |
|
|
1.05 |
% |
|
|
1.08 |
% |
|
|
1.05 |
% |
Net charge-offs to average loans |
|
|
0.00 |
% |
|
|
0.00 |
% |
|
|
0.01 |
% |
|
|
0.01 |
% |
|
|
0.01 |
% |
|
|
|
|
|
|
|
|
|
|
|
Capital
Ratios: |
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity to assets |
|
|
9.36 |
% |
|
|
9.13 |
% |
|
|
8.13 |
% |
|
|
9.36 |
% |
|
|
8.13 |
% |
Tangible common equity to tangible assets(1) |
|
|
9.31 |
% |
|
|
9.08 |
% |
|
|
8.08 |
% |
|
|
9.31 |
% |
|
|
8.08 |
% |
Total risk-based capital to risk-weighted assets |
|
|
18.13 |
% |
|
|
17.89 |
% |
|
|
16.89 |
% |
|
|
18.13 |
% |
|
|
16.89 |
% |
Tier 1 risk-based capital to risk-weighted assets |
|
|
17.09 |
% |
|
|
16.85 |
% |
|
|
15.92 |
% |
|
|
17.09 |
% |
|
|
15.92 |
% |
Common equity Tier 1 capital to risk-weighted assets |
|
|
17.09 |
% |
|
|
16.85 |
% |
|
|
15.92 |
% |
|
|
17.09 |
% |
|
|
15.92 |
% |
Tier 1 risk-based capital to average assets |
|
|
11.48 |
% |
|
|
11.02 |
% |
|
|
9.73 |
% |
|
|
11.48 |
% |
|
|
9.73 |
% |
(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) |
June 30,2023 |
|
March 31,2023 |
|
December 31, 2022 |
|
September 30, 2022 |
|
June 30,2022 |
ASSETS |
|
|
|
|
|
|
|
|
|
Cash and due from banks |
$ |
36,662 |
|
|
$ |
34,491 |
|
|
$ |
37,824 |
|
|
$ |
39,465 |
|
|
$ |
39,339 |
|
Interest-bearing deposits in other banks |
|
185,409 |
|
|
|
194,727 |
|
|
|
240,568 |
|
|
|
261,608 |
|
|
|
317,061 |
|
Securities available-for-sale, at fair value |
|
588,478 |
|
|
|
611,794 |
|
|
|
614,407 |
|
|
|
609,748 |
|
|
|
651,125 |
|
Securities held-to-maturity, at amortized cost |
|
146,569 |
|
|
|
149,417 |
|
|
|
151,683 |
|
|
|
154,736 |
|
|
|
159,562 |
|
Equity securities, at fair value |
|
3,946 |
|
|
|
4,010 |
|
|
|
9,979 |
|
|
|
— |
|
|
|
— |
|
Nonmarketable equity securities |
|
4,330 |
|
|
|
3,506 |
|
|
|
3,478 |
|
|
|
3,460 |
|
|
|
3,452 |
|
Loans held for sale |
|
4,586 |
|
|
|
2,046 |
|
|
|
518 |
|
|
|
1,536 |
|
|
|
4,524 |
|
Loans held for investment |
|
1,947,631 |
|
|
|
1,921,850 |
|
|
|
1,916,267 |
|
|
|
1,879,669 |
|
|
|
1,841,585 |
|
Allowance for credit losses |
|
(21,085 |
) |
|
|
(20,854 |
) |
|
|
(20,628 |
) |
|
|
(19,953 |
) |
|
|
(19,395 |
) |
Premises and equipment, net |
|
55,566 |
|
|
|
55,065 |
|
|
|
54,383 |
|
|
|
52,820 |
|
|
|
52,172 |
|
Accrued interest receivable |
|
8,239 |
|
|
|
8,397 |
|
|
|
8,830 |
|
|
|
7,782 |
|
|
|
7,356 |
|
Bank-owned life insurance |
|
29,141 |
|
|
|
28,954 |
|
|
|
28,775 |
|
|
|
28,594 |
|
|
|
28,413 |
|
Intangible assets |
|
1,546 |
|
|
|
1,546 |
|
|
|
1,546 |
|
|
|
1,546 |
|
|
|
1,546 |
|
Right-of-use assets |
|
3,885 |
|
|
|
4,011 |
|
|
|
4,137 |
|
|
|
4,262 |
|
|
|
4,385 |
|
Other assets |
|
32,291 |
|
|
|
31,622 |
|
|
|
30,919 |
|
|
|
34,405 |
|
|
|
29,988 |
|
Total Assets |
$ |
3,027,194 |
|
|
$ |
3,030,582 |
|
|
$ |
3,082,686 |
|
|
$ |
3,059,678 |
|
|
$ |
3,121,113 |
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits |
$ |
989,509 |
|
|
$ |
1,060,042 |
|
|
$ |
1,090,539 |
|
|
$ |
1,172,157 |
|
|
$ |
1,181,781 |
|
Interest-bearing deposits |
|
1,674,674 |
|
|
|
1,671,343 |
|
|
|
1,708,397 |
|
|
|
1,624,337 |
|
|
|
1,668,414 |
|
Total Deposits |
|
2,664,183 |
|
|
|
2,731,385 |
|
|
|
2,798,936 |
|
|
|
2,796,494 |
|
|
|
2,850,195 |
|
Other borrowed funds |
|
60,000 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Accrued interest payable |
|
4,098 |
|
|
|
2,433 |
|
|
|
1,563 |
|
|
|
1,194 |
|
|
|
1,176 |
|
Lease liabilities |
|
4,015 |
|
|
|
4,136 |
|
|
|
4,258 |
|
|
|
4,377 |
|
|
|
4,494 |
|
Accrued expenses and other liabilities |
|
11,526 |
|
|
|
15,988 |
|
|
|
12,176 |
|
|
|
14,200 |
|
|
|
11,652 |
|
Total Liabilities |
|
2,743,822 |
|
|
|
2,753,942 |
|
|
|
2,816,933 |
|
|
|
2,816,265 |
|
|
|
2,867,517 |
|
COMMITMENTS AND
CONTINGENCIES |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
Preferred stock, no par value |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Common stock, no par value |
|
59,187 |
|
|
|
59,788 |
|
|
|
60,050 |
|
|
|
60,050 |
|
|
|
60,050 |
|
Additional paid-in capital |
|
2,248 |
|
|
|
2,157 |
|
|
|
2,088 |
|
|
|
2,014 |
|
|
|
1,940 |
|
Retained earnings |
|
291,630 |
|
|
|
283,236 |
|
|
|
274,781 |
|
|
|
265,093 |
|
|
|
255,410 |
|
Accumulated other comprehensive income (loss) |
|
(69,693 |
) |
|
|
(68,541 |
) |
|
|
(71,166 |
) |
|
|
(83,744 |
) |
|
|
(63,804 |
) |
Total Stockholders’ Equity |
|
283,372 |
|
|
|
276,640 |
|
|
|
265,753 |
|
|
|
243,413 |
|
|
|
253,596 |
|
Total Liabilities and Stockholders’ Equity |
$ |
3,027,194 |
|
|
$ |
3,030,582 |
|
|
$ |
3,082,686 |
|
|
$ |
3,059,678 |
|
|
$ |
3,121,113 |
|
RED RIVER BANCSHARES, INC. |
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) |
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
For the SixMonths Ended |
(in thousands) |
|
June 30,2023 |
|
March 31,2023 |
|
June 30,2022 |
|
June 30,2023 |
|
June 30,2022 |
INTEREST AND DIVIDEND INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on loans |
|
$ |
22,851 |
|
|
$ |
21,764 |
|
$ |
18,032 |
|
|
$ |
44,616 |
|
|
$ |
34,802 |
|
Interest on securities |
|
|
3,665 |
|
|
|
3,567 |
|
|
3,677 |
|
|
|
7,231 |
|
|
|
6,639 |
|
Interest on federal funds sold |
|
|
251 |
|
|
|
635 |
|
|
116 |
|
|
|
886 |
|
|
|
141 |
|
Interest on deposits in other banks |
|
|
1,671 |
|
|
|
1,738 |
|
|
671 |
|
|
|
3,409 |
|
|
|
922 |
|
Dividends on stock |
|
|
33 |
|
|
|
28 |
|
|
2 |
|
|
|
61 |
|
|
|
3 |
|
Total Interest and Dividend Income |
|
|
28,471 |
|
|
|
27,732 |
|
|
22,498 |
|
|
|
56,203 |
|
|
|
42,507 |
|
INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|
Interest on deposits |
|
|
6,933 |
|
|
|
4,823 |
|
|
1,349 |
|
|
|
11,756 |
|
|
|
2,630 |
|
Interest on other borrowed funds |
|
|
28 |
|
|
|
— |
|
|
— |
|
|
|
28 |
|
|
|
— |
|
Total Interest Expense |
|
|
6,961 |
|
|
|
4,823 |
|
|
1,349 |
|
|
|
11,784 |
|
|
|
2,630 |
|
Net Interest
Income |
|
|
21,510 |
|
|
|
22,909 |
|
|
21,149 |
|
|
|
44,419 |
|
|
|
39,877 |
|
Provision for credit losses |
|
|
300 |
|
|
|
— |
|
|
250 |
|
|
|
300 |
|
|
|
400 |
|
Net Interest Income After Provision for Credit
Losses |
|
|
21,210 |
|
|
|
22,909 |
|
|
20,899 |
|
|
|
44,119 |
|
|
|
39,477 |
|
NONINTEREST INCOME |
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts |
|
|
1,435 |
|
|
|
1,393 |
|
|
1,410 |
|
|
|
2,828 |
|
|
|
2,718 |
|
Debit card income, net |
|
|
924 |
|
|
|
934 |
|
|
1,056 |
|
|
|
1,858 |
|
|
|
1,992 |
|
Mortgage loan income |
|
|
645 |
|
|
|
275 |
|
|
892 |
|
|
|
920 |
|
|
|
2,018 |
|
Brokerage income |
|
|
923 |
|
|
|
807 |
|
|
890 |
|
|
|
1,730 |
|
|
|
1,666 |
|
Loan and deposit income |
|
|
517 |
|
|
|
477 |
|
|
410 |
|
|
|
995 |
|
|
|
781 |
|
Bank-owned life insurance income |
|
|
188 |
|
|
|
179 |
|
|
180 |
|
|
|
366 |
|
|
|
352 |
|
Gain (Loss) on equity securities |
|
|
(64 |
) |
|
|
31 |
|
|
(82 |
) |
|
|
(32 |
) |
|
|
(447 |
) |
Gain (Loss) on sale and call of securities |
|
|
— |
|
|
|
— |
|
|
(114 |
) |
|
|
— |
|
|
|
(75 |
) |
SBIC income |
|
|
1,380 |
|
|
|
180 |
|
|
151 |
|
|
|
1,559 |
|
|
|
171 |
|
Other income (loss) |
|
|
59 |
|
|
|
64 |
|
|
67 |
|
|
|
123 |
|
|
|
86 |
|
Total Noninterest Income |
|
|
6,007 |
|
|
|
4,340 |
|
|
4,860 |
|
|
|
10,347 |
|
|
|
9,262 |
|
OPERATING EXPENSES |
|
|
|
|
|
|
|
|
|
|
Personnel expenses |
|
|
9,547 |
|
|
|
9,000 |
|
|
8,574 |
|
|
|
18,547 |
|
|
|
17,026 |
|
Occupancy and equipment expenses |
|
|
1,554 |
|
|
|
1,717 |
|
|
1,473 |
|
|
|
3,271 |
|
|
|
2,965 |
|
Technology expenses |
|
|
642 |
|
|
|
748 |
|
|
695 |
|
|
|
1,390 |
|
|
|
1,466 |
|
Advertising |
|
|
343 |
|
|
|
281 |
|
|
306 |
|
|
|
624 |
|
|
|
526 |
|
Other business development expenses |
|
|
494 |
|
|
|
436 |
|
|
340 |
|
|
|
930 |
|
|
|
642 |
|
Data processing expense |
|
|
638 |
|
|
|
400 |
|
|
564 |
|
|
|
1,038 |
|
|
|
880 |
|
Other taxes |
|
|
693 |
|
|
|
686 |
|
|
647 |
|
|
|
1,378 |
|
|
|
1,283 |
|
Loan and deposit expenses |
|
|
284 |
|
|
|
205 |
|
|
185 |
|
|
|
489 |
|
|
|
315 |
|
Legal and professional expenses |
|
|
580 |
|
|
|
516 |
|
|
475 |
|
|
|
1,097 |
|
|
|
893 |
|
Regulatory assessment expenses |
|
|
397 |
|
|
|
406 |
|
|
251 |
|
|
|
804 |
|
|
|
501 |
|
Other operating expenses |
|
|
960 |
|
|
|
1,093 |
|
|
961 |
|
|
|
2,052 |
|
|
|
2,036 |
|
Total Operating Expenses |
|
|
16,132 |
|
|
|
15,488 |
|
|
14,471 |
|
|
|
31,620 |
|
|
|
28,533 |
|
Income Before Income
Tax Expense |
|
|
11,085 |
|
|
|
11,761 |
|
|
11,288 |
|
|
|
22,846 |
|
|
|
20,206 |
|
Income tax expense |
|
|
2,117 |
|
|
|
2,163 |
|
|
2,141 |
|
|
|
4,280 |
|
|
|
3,667 |
|
Net
Income |
|
$ |
8,968 |
|
|
$ |
9,598 |
|
$ |
9,147 |
|
|
$ |
18,566 |
|
|
$ |
16,539 |
|
RED RIVER BANCSHARES, INC. |
NET INTEREST INCOME AND NET INTEREST MARGIN
(UNAUDITED) |
|
|
For the Three Months Ended |
|
June 30, 2023 |
|
March 31, 2023 |
(dollars in thousands) |
AverageBalanceOutstanding |
|
InterestEarned/InterestPaid |
|
AverageYield/Rate |
|
AverageBalanceOutstanding |
|
InterestEarned/InterestPaid |
|
AverageYield/Rate |
Assets |
|
|
|
|
|
|
|
|
|
|
|
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
Loans(1,2) |
$ |
1,933,225 |
|
|
$ |
22,851 |
|
4.68 |
% |
|
$ |
1,918,336 |
|
|
$ |
21,764 |
|
4.54 |
% |
Securities - taxable |
|
630,103 |
|
|
|
2,628 |
|
1.67 |
% |
|
|
641,237 |
|
|
|
2,533 |
|
1.59 |
% |
Securities - tax-exempt |
|
204,208 |
|
|
|
1,037 |
|
2.03 |
% |
|
|
205,512 |
|
|
|
1,034 |
|
2.01 |
% |
Federal funds sold |
|
19,780 |
|
|
|
251 |
|
5.02 |
% |
|
|
55,411 |
|
|
|
635 |
|
4.58 |
% |
Interest-bearing deposits in other banks |
|
131,361 |
|
|
|
1,671 |
|
5.04 |
% |
|
|
153,667 |
|
|
|
1,738 |
|
4.53 |
% |
Nonmarketable equity securities |
|
3,533 |
|
|
|
33 |
|
3.72 |
% |
|
|
3,478 |
|
|
|
28 |
|
3.24 |
% |
Total interest-earning assets |
|
2,922,210 |
|
|
$ |
28,471 |
|
3.86 |
% |
|
|
2,977,641 |
|
|
$ |
27,732 |
|
3.73 |
% |
Allowance for credit
losses |
|
(20,824 |
) |
|
|
|
|
|
|
(20,885 |
) |
|
|
|
|
Noninterest-earning assets |
|
89,021 |
|
|
|
|
|
|
|
89,031 |
|
|
|
|
|
Total assets |
$ |
2,990,407 |
|
|
|
|
|
|
$ |
3,045,787 |
|
|
|
|
|
Liabilities and
Stockholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing transaction deposits |
$ |
1,240,078 |
|
|
$ |
4,013 |
|
1.30 |
% |
|
$ |
1,326,547 |
|
|
$ |
3,029 |
|
0.93 |
% |
Time deposits |
|
433,112 |
|
|
|
2,920 |
|
2.70 |
% |
|
|
366,214 |
|
|
|
1,794 |
|
1.99 |
% |
Total interest-bearing deposits |
|
1,673,190 |
|
|
|
6,933 |
|
1.66 |
% |
|
|
1,692,761 |
|
|
|
4,823 |
|
1.16 |
% |
Other borrowings |
|
1,978 |
|
|
|
28 |
|
5.50 |
% |
|
|
1 |
|
|
|
— |
|
5.08 |
% |
Total interest-bearing liabilities |
|
1,675,168 |
|
|
$ |
6,961 |
|
1.67 |
% |
|
|
1,692,762 |
|
|
$ |
4,823 |
|
1.16 |
% |
Noninterest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits |
|
1,014,205 |
|
|
|
|
|
|
|
1,061,135 |
|
|
|
|
|
Accrued interest and other liabilities |
|
19,612 |
|
|
|
|
|
|
|
20,219 |
|
|
|
|
|
Total noninterest-bearing liabilities |
|
1,033,817 |
|
|
|
|
|
|
|
1,081,354 |
|
|
|
|
|
Stockholders’ equity |
|
281,422 |
|
|
|
|
|
|
|
271,671 |
|
|
|
|
|
Total liabilities and stockholders’ equity |
$ |
2,990,407 |
|
|
|
|
|
|
$ |
3,045,787 |
|
|
|
|
|
Net interest income |
|
|
$ |
21,510 |
|
|
|
|
|
$ |
22,909 |
|
|
Net interest spread |
|
|
|
|
2.19 |
% |
|
|
|
|
|
2.57 |
% |
Net interest margin |
|
|
|
|
2.91 |
% |
|
|
|
|
|
3.07 |
% |
Net interest margin
FTE(3) |
|
|
|
|
2.96 |
% |
|
|
|
|
|
3.13 |
% |
Cost of deposits |
|
|
|
|
1.03 |
% |
|
|
|
|
|
0.71 |
% |
Cost of funds |
|
|
|
|
0.96 |
% |
|
|
|
|
|
0.66 |
% |
(1) Includes average outstanding balances of loans
held for sale of $3.5 million and $1.3 million for the three
months ended June 30, 2023 and March 31, 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 Six Months Ended June 30, |
|
|
2023 |
|
|
|
2022 |
|
(dollars in thousands) |
AverageBalanceOutstanding |
|
InterestEarned/InterestPaid |
|
AverageYield/Rate |
|
AverageBalanceOutstanding |
|
InterestEarned/InterestPaid |
|
AverageYield/Rate |
Assets |
|
|
|
|
|
|
|
|
|
|
|
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
Loans(1,2) |
$ |
1,925,821 |
|
|
$ |
44,616 |
|
4.61 |
% |
|
$ |
1,743,676 |
|
|
$ |
34,802 |
|
3.97 |
% |
Securities - taxable |
|
635,640 |
|
|
|
5,160 |
|
1.63 |
% |
|
|
624,081 |
|
|
|
4,494 |
|
1.44 |
% |
Securities - tax-exempt |
|
204,856 |
|
|
|
2,071 |
|
2.02 |
% |
|
|
213,506 |
|
|
|
2,145 |
|
2.01 |
% |
Federal funds sold |
|
37,497 |
|
|
|
886 |
|
4.70 |
% |
|
|
53,232 |
|
|
|
141 |
|
0.53 |
% |
Interest-bearing deposits in other banks |
|
142,452 |
|
|
|
3,409 |
|
4.77 |
% |
|
|
469,784 |
|
|
|
922 |
|
0.39 |
% |
Nonmarketable equity securities |
|
3,506 |
|
|
|
61 |
|
3.48 |
% |
|
|
3,450 |
|
|
|
3 |
|
0.16 |
% |
Total interest-earning assets |
|
2,949,772 |
|
|
$ |
56,203 |
|
3.79 |
% |
|
|
3,107,729 |
|
|
$ |
42,507 |
|
2.72 |
% |
Allowance for credit
losses |
|
(20,854 |
) |
|
|
|
|
|
|
(19,249 |
) |
|
|
|
|
Noninterest-earning
assets |
|
89,026 |
|
|
|
|
|
|
|
111,905 |
|
|
|
|
|
Total assets |
$ |
3,017,944 |
|
|
|
|
|
|
$ |
3,200,385 |
|
|
|
|
|
Liabilities and
Stockholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing transaction deposits |
$ |
1,283,073 |
|
|
$ |
7,042 |
|
1.11 |
% |
|
$ |
1,414,404 |
|
|
$ |
1,002 |
|
0.14 |
% |
Time deposits |
|
399,848 |
|
|
|
4,714 |
|
2.38 |
% |
|
|
330,491 |
|
|
|
1,628 |
|
0.99 |
% |
Total interest-bearing deposits |
|
1,682,921 |
|
|
|
11,756 |
|
1.41 |
% |
|
|
1,744,895 |
|
|
|
2,630 |
|
0.30 |
% |
Other borrowings |
|
995 |
|
|
|
28 |
|
5.50 |
% |
|
|
— |
|
|
|
— |
|
— |
% |
Total interest-bearing liabilities |
|
1,683,916 |
|
|
$ |
11,784 |
|
1.41 |
% |
|
|
1,744,895 |
|
|
$ |
2,630 |
|
0.30 |
% |
Noninterest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits |
|
1,037,540 |
|
|
|
|
|
|
|
1,164,375 |
|
|
|
|
|
Accrued interest and other liabilities |
|
19,914 |
|
|
|
|
|
|
|
16,983 |
|
|
|
|
|
Total noninterest-bearing liabilities |
|
1,057,454 |
|
|
|
|
|
|
|
1,181,358 |
|
|
|
|
|
Stockholders’ equity |
|
276,574 |
|
|
|
|
|
|
|
274,132 |
|
|
|
|
|
Total liabilities and stockholders’ equity |
$ |
3,017,944 |
|
|
|
|
|
|
$ |
3,200,385 |
|
|
|
|
|
Net interest income |
|
|
$ |
44,419 |
|
|
|
|
|
$ |
39,877 |
|
|
Net interest spread |
|
|
|
|
2.38 |
% |
|
|
|
|
|
2.42 |
% |
Net interest margin |
|
|
|
|
2.99 |
% |
|
|
|
|
|
2.55 |
% |
Net interest margin
FTE(3) |
|
|
|
|
3.04 |
% |
|
|
|
|
|
2.61 |
% |
Cost of deposits |
|
|
|
|
0.87 |
% |
|
|
|
|
|
0.18 |
% |
Cost of funds |
|
|
|
|
0.81 |
% |
|
|
|
|
|
0.17 |
% |
(1) Includes average outstanding balances of loans
held for sale of $2.4 million and $4.0 million for the six months
ended June 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) |
June 30,2023 |
|
March 31,2023 |
|
June 30,2022 |
Tangible common equity |
|
|
|
|
|
Total stockholders’ equity |
$ |
283,372 |
|
|
$ |
276,640 |
|
|
$ |
253,596 |
|
Adjustments: |
|
|
|
|
|
Intangible assets |
|
(1,546 |
) |
|
|
(1,546 |
) |
|
|
(1,546 |
) |
Total tangible common equity (non-GAAP) |
$ |
281,826 |
|
|
$ |
275,094 |
|
|
$ |
252,050 |
|
Realized common equity |
|
|
|
|
|
Total stockholders’ equity |
$ |
283,372 |
|
|
$ |
276,640 |
|
|
$ |
253,596 |
|
Adjustments: |
|
|
|
|
|
Accumulated other comprehensive (income) loss |
|
69,693 |
|
|
|
68,541 |
|
|
|
63,804 |
|
Total realized common equity (non-GAAP) |
$ |
353,065 |
|
|
$ |
345,181 |
|
|
$ |
317,400 |
|
Common shares outstanding |
|
7,175,056 |
|
|
|
7,177,650 |
|
|
|
7,176,365 |
|
Book value per share |
$ |
39.49 |
|
|
$ |
38.54 |
|
|
$ |
35.34 |
|
Tangible book value per share
(non-GAAP) |
$ |
39.28 |
|
|
$ |
38.33 |
|
|
$ |
35.12 |
|
Realized book value per share
(non-GAAP) |
$ |
49.21 |
|
|
$ |
48.09 |
|
|
$ |
44.23 |
|
|
|
|
|
|
|
Tangible assets |
|
|
|
|
|
Total assets |
$ |
3,027,194 |
|
|
$ |
3,030,582 |
|
|
$ |
3,121,113 |
|
Adjustments: |
|
|
|
|
|
Intangible assets |
|
(1,546 |
) |
|
|
(1,546 |
) |
|
|
(1,546 |
) |
Total tangible assets (non-GAAP) |
$ |
3,025,648 |
|
|
$ |
3,029,036 |
|
|
$ |
3,119,567 |
|
Total stockholders’ equity to
assets |
|
9.36 |
% |
|
|
9.13 |
% |
|
|
8.13 |
% |
Tangible common equity to
tangible assets (non-GAAP) |
|
9.31 |
% |
|
|
9.08 |
% |
|
|
8.08 |
% |
Red River Bancshares (NASDAQ:RRBI)
Historical Stock Chart
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Red River Bancshares (NASDAQ:RRBI)
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From May 2023 to May 2024