Red River Bancshares, Inc. Announces Private Stock Repurchase

Rhea-AI Summary

Red River Bancshares (Nasdaq: RRBI) has announced a private stock repurchase agreement with two shareholders on November 5, 2024. The company will repurchase 50,000 shares of its common stock for $2.5 million. The purchase price represents a discount compared to the 10-, 20-, and 30-day volume weighted average price as of November 1, 2024. The company's CEO stated this move demonstrates their commitment to increasing shareholder value.

Positive

• Repurchase of 50,000 shares at a discounted price
• Purchase price below market average, indicating efficient capital allocation
• Demonstrates commitment to returning value to shareholders

Negative

• Cash outflow of $2.5 million reduces company's liquid assets

Insights

Financial Analyst

This private stock repurchase of $2.5 million for 50,000 shares demonstrates strategic capital management by Red River Bancshares. The transaction price represents a discount to recent volume-weighted average prices, indicating a favorable deal for the company. At $50 per share, this repurchase is accretive to remaining shareholders, effectively reducing the float and potentially increasing earnings per share. For a company with a market cap of $368.3 million, this repurchase represents approximately 0.68% of market value - a modest but meaningful transaction that signals management's confidence in the company's valuation and future prospects. The private nature of the transaction helps avoid potential market impact while achieving the desired outcome of enhancing shareholder value.

ALEXANDRIA, La., Nov. 05, 2024 (GLOBE NEWSWIRE) -- Red River Bancshares, Inc. (Nasdaq: RRBI) (the “Company”) announced today that, on November 5, 2024, the Company entered into a stock repurchase agreement with two shareholders for the repurchase by the Company of 50,000 shares of its common stock in a privately-negotiated transaction for a purchase price of $2.5 million. The purchase price reflects a discount to the 10-, 20-, and 30-day volume weighted average price on November 1, 2024. Blake Chatelain, the Company’s President and Chief Executive Officer, said, “We are pleased to complete this repurchase, which shows our continued commitment to increasing shareholder value.”

About Red River Bancshares, Inc.
The Company is the bank holding company for Red River Bank, a Louisiana state-chartered bank established in 1999 that provides a fully integrated suite of banking products and services tailored to the needs of our commercial and retail customers. Red River Bank operates from a network of 28 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
This press release may contain forward-looking statements that are based on various facts and derived using numerous assumptions that are subject to known and unknown risks, uncertainties, and other factors that may cause the Company’s actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Forward-looking statements include information about the expected benefits of the repurchase, information concerning the timing, manner, amount, and overall impact of future purchases under the repurchase program, as well as any other statement other than statements of historical fact. Words or phrases such as “may,” “should,” “could,” “predict,” “potential,” “believe,” “will likely result,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “projection,” “would,” and “outlook,” or the negative version of those words, or such other comparable words or phrases are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. These forward-looking statements are not historical facts, and are based on current expectations, estimates, and projections about the Company’s industry, management’s beliefs, and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond the Company’s control. Accordingly, you are cautioned that any such forward-looking statements are not guarantees of future performance and are subject to certain risks, assumptions, and uncertainties that are difficult to predict. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. Unless required by law, the Company also disclaims any obligation to update any forward-looking statements. Interested parties should not place undue reliance on any forward-looking statement and should carefully consider the risks and other factors that the Company faces. For a discussion of these risks and other factors, please see the sections titled “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” in the Company’s 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 Securities and Exchange Commission from time to time.

Contact:
Julia Callis
Senior Vice President, General Counsel, and Corporate Secretary
318-561-4042
julia.callis@redriverbank.net

FAQ

How many shares is Red River Bancshares (RRBI) repurchasing in November 2024?

Red River Bancshares is repurchasing 50,000 shares of its common stock.

What is the total value of RRBI's November 2024 stock repurchase?

The total value of the stock repurchase is $2.5 million.

When did Red River Bancshares (RRBI) announce its private stock repurchase?

Red River Bancshares announced the private stock repurchase on November 5, 2024.

How was the purchase price determined for RRBI's stock repurchase?

The purchase price was set at a discount to the 10-, 20-, and 30-day volume weighted average price as of November 1, 2024.