Red River Bancshares, Inc. Reports Fourth Quarter and Year-End 2021 Financial Results
Red River Bancshares (Nasdaq: RRBI) reported a strong performance for Q4 2021, with a net income of $8.5 million, or $1.17 EPS, a 4.6% rise from Q3 and a 17.2% increase year-over-year. Total assets reached $3.22 billion, driven by a $205.8 million increase in deposits. Non-PPP loans grew by 5.7%, reaching $1.67 billion. The company completed a stock repurchase program of $4.9 million. Despite a decrease in net interest margin due to high liquidity and low rates, the outlook remains positive for 2022.
- Net income increased to $33.0 million for the year, a 17.1% rise from 2020.
- Deposits grew by $205.8 million in Q4 2021, indicating strong customer retention.
- Non-PPP loans increased by 5.7% to $1.67 billion, reflecting growth in new markets.
- Net interest margin decreased to 2.52% due to high liquidity and low interest rates.
- Personnel expenses rose by $406,000, indicating increased costs associated with market expansion.
ALEXANDRIA, La., Jan. 28, 2022 (GLOBE NEWSWIRE) -- Red River Bancshares, Inc. (the “Company”) (Nasdaq: RRBI), the holding company for Red River Bank (the “Bank”), announced today its financial results for the fourth quarter and year ended 2021.
Net income for the fourth quarter of 2021 was
Net income for the year ended December 31, 2021, was
Fourth Quarter and Year-End 2021 Performance and Operational Highlights
In the fourth quarter of 2021, the Company had robust deposit and asset growth, solid earnings, and a continued high level of liquidity. The Company began providing banking services in New Orleans, Louisiana, our newest market, through a combined loan and deposit production office ("LPO/DPO"). The Company also finalized a large private stock repurchase that completed the stock repurchase program announced on August 31, 2021.
The fourth quarter of 2021 began with a declining trend of COVID-19 cases and hospitalizations in the Louisiana markets served by Red River Bank. However, as a result of the emergence of the Omicron variant in December 2021, the number of cases and hospitalizations increased toward the end of the quarter. Economic activity in Louisiana remained relatively stable, although the economy is still impacted by supply chain disruptions and labor shortages.
- Net income for the fourth quarter of 2021 was
$8.5 million ,$372,000 higher than the prior quarter, primarily due to higher net interest income, partially offset by higher personnel expenses. - Assets increased
$203.9 million in the fourth quarter of 2021 to$3.22 billion as of December 31, 2021, primarily driven by a$205.8 million increase in deposits. The deposit growth was largely the result of customers maintaining higher deposit balances and the seasonal inflow of funds from public entity customers. - Net interest income for the fourth quarter of 2021 was
$18.8 million ,$666,000 higher than the prior quarter. This increase was primarily due to deploying funds into loans and securities. - Personnel expenses for the fourth quarter of 2021 were
$8.4 million ,$406,000 higher than the prior quarter. This increase was primarily due to adding new staff in connection with our expansion in new and existing markets. - There was
$196,000 of nonrecurring gains on sales of properties in the fourth quarter of 2021. - Red River Bank is participating in the Small Business Administration ("SBA") Paycheck Protection Program ("PPP"). As of December 31, 2021, PPP loans were
$17.6 million , net of$626,000 of deferred income, or1.0% of loans held for investment ("HFI"). In the fourth quarter of 2021, forgiveness payments on PPP loans resulted in a$28.4 million decrease in PPP loans, net of deferred fees. PPP loan income for the fourth quarter of 2021 was$1.2 million ,$155,000 lower than the prior quarter. PPP loan income for 2021 was$5.8 million , compared to$5.6 million for 2020. - As of December 31, 2021, non-PPP loans HFI were
$1.67 billion ,(1) an increase of$89.7 million , or5.7% , from September 30, 2021. The growth in non-PPP loans HFI was a result of new loans in New Orleans, our newest market, and increased loan activity in other markets. - Nonperforming assets ("NPA(s)") decreased
$1.4 million in the fourth quarter and were$979,000 , or0.03% of assets as of December 31, 2021. As of December 31, 2021, the allowance for loan losses ("ALL") was$19.2 million , or1.14% of loans HFI and1.15% (1) of non-PPP loans HFI (non-GAAP). - We paid a quarterly cash dividend of
$0.07 per common share. - In the third quarter of 2021, the board of directors renewed a stock repurchase program, authorizing the Company to purchase up to
$5.0 million of outstanding shares of common stock between September 1, 2021 and August 31, 2022. In accordance with this stock repurchase program, in the fourth quarter of 2021 we entered into a privately-negotiated stock repurchase agreement and repurchased 96,245 shares of our common stock for$4.9 million . As a result of this transaction, the Company has purchased the full amount authorized by this stock repurchase program. - In the fourth quarter of 2021, as part of our continued Louisiana market expansion plan, we began operations in our newest market, New Orleans, Louisiana. We have hired a New Orleans market president and seven additional New Orleans bankers. On December 6, 2021, we opened an LPO/DPO in downtown New Orleans and began providing banking services in this new market.
- In our Acadiana market, renovations have been completed on a new banking center location that we purchased in 2020. This location opened as the first Red River Bank full-service banking center in Lafayette, Louisiana on January 26, 2022. Red River Bank also has an LPO/DPO in the Acadiana market.
Blake Chatelain, President and Chief Executive Officer, stated, "The fourth quarter of 2021 resulted in robust balance sheet growth, consistent performance, improved asset quality, continued execution of our organic growth plans, and a significant stock buyback transaction.
"Deposits and assets increased significantly in the fourth quarter of 2021 due to customers maintaining higher deposit balances and the seasonal inflow of public entity funds. Loan growth faced headwinds with loan paydowns and payoffs; however, these challenges were offset by lending opportunities in our newer markets and our lenders' calling activity. This activity resulted in a
"In December 2021, we opened an LPO/DPO in the New Orleans downtown business district, and our bankers are seeing steady activity already. In addition to a team of eight local bankers hired for the New Orleans market, we were pleased to add an additional, experienced commercial lender in our Northshore market.
"In our Acadiana market, we were excited to have opened our first full-service banking center in Lafayette in January 2022.
"As a result of having the stock buyback program, we were able to repurchase a large block of shares in a privately-negotiated transaction. This transaction utilized all of the funds in the existing stock repurchase program. We expect to execute a new stock repurchase program in the first quarter of 2022, subject to board approval and market conditions.
"We are saddened by the loss of our longtime friend and founding director of the Company and the Bank, Barry Hines, who passed away in late December 2021. Barry made tremendous contributions to the Company and the Bank, and his wit, wisdom, counsel, and love of life will be greatly missed.
"As we begin 2022, I want to recognize the Red River Bank team members who made 2021 a successful year. They worked tirelessly through many challenges to take care of our customers and to continue to build a strong, solid, community bank focused on building shareholder value. Also, on behalf of the Red River Bancshares, Inc. board of directors, I want to thank our shareholders for their loyalty, enthusiasm, and support over the years. We look forward to continued success in 2022 and beyond."
Net Interest Income and Net Interest Margin FTE
Net interest income increased and the net interest margin fully tax equivalent ("FTE") decreased for the fourth quarter of 2021 when compared to the prior quarter. These measures were both impacted by a continued high level of liquidity and the continued low interest rate environment.
Net interest income for the fourth quarter of 2021 was
The net interest margin FTE decreased eight basis points ("bp(s)") to
Average PPP loans outstanding, net of deferred income, for the fourth quarter of 2021 were
Excluding PPP loan income, net interest income (non-GAAP) for the fourth quarter of 2021 was
The Federal Open Market Committee is expected to raise the target federal funds rate several times in 2022. Our balance sheet is asset sensitive, and historically, our deposit interest rates have adjusted more slowly than the change in the federal funds rate. As of December 31, 2021, floating rate loans were
Provision for Loan Losses
The provision for loan losses for the fourth quarter of 2021 was
Noninterest Income
Noninterest income totaled
Other income for the fourth quarter of 2021 was
Mortgage loan income totaled
SBIC income for the fourth quarter of 2021 was
Operating Expenses
Operating expenses for the fourth quarter of 2021 totaled
Personnel expenses totaled
Loan and deposit expenses totaled
Technology expenses totaled
Asset Overview
As of December 31, 2021, assets totaled
Assets excluding PPP loans, net of deferred income (non-GAAP) as of December 31, 2021, totaled
Loans
Loans HFI as of December 31, 2021, were
Red River Bank began participating in the SBA PPP in the second quarter of 2020. Through December 31, 2021, we had received
Our health care loans are made up of a diversified portfolio of health care providers. As of December 31, 2021, total health care credits were
On March 5, 2021, it was announced that certain U.S. Dollar London Interbank Offered Rate ("LIBOR") rates would cease to be published after June 30, 2023. As of December 31, 2021,
Asset Quality and Allowance for Loan Losses
NPAs totaled
As of December 31, 2021, the ALL was
Deposits
Deposits as of December 31, 2021, were
Stockholders’ Equity
Total stockholders’ equity decreased to
Non-GAAP Disclosure
Our accounting and reporting policies conform to United States generally accepted accounting principles ("GAAP") and the prevailing practices in the banking industry. Certain financial measures used by management to evaluate our operating performance are discussed as supplemental non-GAAP performance measures. In accordance with the Securities and Exchange Commission's ("SEC") rules, we classify a financial measure as being a non-GAAP financial measure if that financial measure excludes or includes amounts, or is subject to adjustments that have the effect of excluding or including amounts, that are included or excluded, as the case may be, in the most directly comparable measure calculated and presented in accordance with GAAP as in effect from time to time in the U.S.
Management and the board of directors review tangible book value per share and tangible common equity to tangible assets, and PPP-adjusted metrics as part of managing operating performance. However, these non-GAAP financial measures should not be considered in isolation or as a substitute for the most directly comparable or other financial measures calculated in accordance with GAAP. Moreover, the manner in which we calculate the non-GAAP financial measures that are discussed may differ from that of other companies reporting measures with similar names. It is important to understand how such other banking organizations calculate and name their financial measures similar to the non-GAAP financial measures discussed by us when comparing such non-GAAP financial measures.
A reconciliation of non-GAAP financial measures to the comparable GAAP financial measures is included at the end of the financial statement tables.
About Red River Bancshares, Inc.
The Company is the bank holding company for Red River Bank, a Louisiana state-chartered bank established in 1999 that provides a fully integrated suite of banking products and services tailored to the needs of commercial and retail customers. Red River Bank operates from a network of 27 banking centers throughout Louisiana and two combined loan and deposit production offices, one each in Lafayette, Louisiana and New Orleans, Louisiana. Banking centers are located in the following Louisiana markets: Central, which includes the Alexandria metropolitan statistical area ("MSA"); Northwest, which includes the Shreveport-Bossier City MSA; Capital, which includes the Baton Rouge MSA; Southwest, which includes the Lake Charles MSA; the Northshore, which includes Covington; and Acadiana, which includes the Lafayette MSA.
Forward-Looking Statements
Statements in this news release regarding our expectations and beliefs about our future financial performance and financial condition, as well as trends in our business and markets, are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements often include words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “project,” “outlook,” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.” The forward-looking statements in this news release are based on current information and on assumptions that we make about future events and circumstances that are subject to a number of risks and uncertainties that are often difficult to predict and beyond our control. As a result of those risks and uncertainties, our actual financial results in the future could differ, possibly materially, from those expressed in or implied by the forward-looking statements contained in this news release and could cause us to make changes to our future plans. Additional information regarding these and other risks and uncertainties to which our business and future financial performance are subject is contained in the section titled “Risk Factors” in our most recent Annual Report on Form 10-K and any subsequent quarterly reports on Form 10-Q, and in other documents that we file with the SEC from time to time. In addition, our actual financial results in the future may differ from those currently expected due to additional risks and uncertainties of which we are not currently aware or which we do not currently view as, but in the future may become, material to our business or operating results. Due to these and other possible uncertainties and risks, readers are cautioned not to place undue reliance on the forward-looking statements contained in this news release or to make predictions based solely on historical financial performance. Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law. All forward-looking statements, express or implied, included in this news release are qualified in their entirety by this cautionary statement.
Contact:
Isabel V. Carriere, CPA, CGMA
Executive Vice President and Chief Financial Officer
318-561-4023
icarriere@redriverbank.net
(1) Non-GAAP financial measure. Calculations of this measure and reconciliations to GAAP are included in the schedules accompanying this release.
| FINANCIAL HIGHLIGHTS (UNAUDITED) | |||||||||||||||||||
| As of and for the Three Months Ended | As of and for the Year Ended | ||||||||||||||||||
| (Dollars in thousands, except per share data) | December 31, 2021 | September 30, 2021 | December 31, 2020 | December 31, 2021 | December 31, 2020 | ||||||||||||||
| Net Income | $ | 8,510 | $ | 8,138 | $ | 7,261 | $ | 32,952 | $ | 28,145 | |||||||||
| Per Common Share Data: | |||||||||||||||||||
| Earnings per share, basic | $ | 1.18 | $ | 1.12 | $ | 0.99 | $ | 4.53 | $ | 3.84 | |||||||||
| Earnings per share, diluted | $ | 1.17 | $ | 1.12 | $ | 0.99 | $ | 4.51 | $ | 3.83 | |||||||||
| Book value per share | $ | 41.52 | $ | 41.05 | $ | 38.97 | $ | 41.52 | $ | 38.97 | |||||||||
| Tangible book value per share(1) | $ | 41.31 | $ | 40.84 | $ | 38.76 | $ | 41.31 | $ | 38.76 | |||||||||
| Cash dividends per share | $ | 0.07 | $ | 0.07 | $ | 0.06 | $ | 0.28 | $ | 0.24 | |||||||||
| Shares outstanding | 7,180,155 | 7,276,400 | 7,325,333 | 7,180,155 | 7,325,333 | ||||||||||||||
| Weighted average shares outstanding, basic | 7,229,324 | 7,278,192 | 7,325,333 | 7,281,136 | 7,322,158 | ||||||||||||||
| Weighted average shares outstanding, diluted | 7,247,277 | 7,294,011 | 7,343,859 | 7,299,720 | 7,345,045 | ||||||||||||||
| Summary Performance Ratios: | |||||||||||||||||||
| Return on average assets | 1.09 | % | 1.11 | % | 1.13 | % | 1.13 | % | 1.22 | % | |||||||||
| Return on average equity | 11.33 | % | 10.83 | % | 10.23 | % | 11.21 | % | 10.39 | % | |||||||||
| Net interest margin | 2.46 | % | 2.54 | % | 3.01 | % | 2.54 | % | 3.09 | % | |||||||||
| Net interest margin FTE | 2.52 | % | 2.60 | % | 3.08 | % | 2.60 | % | 3.14 | % | |||||||||
| Efficiency ratio | 57.33 | % | 57.61 | % | 53.66 | % | 56.39 | % | 55.77 | % | |||||||||
| Loans HFI to deposits ratio | 57.86 | % | 59.99 | % | 67.87 | % | 57.86 | % | 67.87 | % | |||||||||
| Noninterest-bearing deposits to deposits ratio | 39.50 | % | 42.29 | % | 40.32 | % | 39.50 | % | 40.32 | % | |||||||||
| Noninterest income to average assets | 0.72 | % | 0.77 | % | 0.97 | % | 0.84 | % | 1.00 | % | |||||||||
| Operating expense to average assets | 1.79 | % | 1.86 | % | 2.08 | % | 1.87 | % | 2.22 | % | |||||||||
| Summary Credit Quality Ratios: | |||||||||||||||||||
| Nonperforming assets to total assets | 0.03 | % | 0.08 | % | 0.16 | % | 0.03 | % | 0.16 | % | |||||||||
| Nonperforming loans to loans HFI | 0.02 | % | 0.09 | % | 0.21 | % | 0.02 | % | 0.21 | % | |||||||||
| Allowance for loan losses to loans HFI | 1.14 | % | 1.18 | % | 1.13 | % | 1.14 | % | 1.13 | % | |||||||||
| Net charge-offs to average loans | 0.01 | % | 0.03 | % | 0.06 | % | 0.04 | % | 0.14 | % | |||||||||
| Capital Ratios: | |||||||||||||||||||
| Total stockholders' equity to total assets | 9.25 | % | 9.89 | % | 10.80 | % | 9.25 | % | 10.80 | % | |||||||||
| Tangible common equity to tangible assets (1) | 9.20 | % | 9.84 | % | 10.75 | % | 9.20 | % | 10.75 | % | |||||||||
| Total risk-based capital to risk-weighted assets | 17.83 | % | 18.74 | % | 18.68 | % | 17.83 | % | 18.68 | % | |||||||||
| Tier 1 risk-based capital to risk-weighted assets | 16.76 | % | 17.60 | % | 17.55 | % | 16.76 | % | 17.55 | % | |||||||||
| Common equity Tier 1 capital to risk-weighted assets | 16.76 | % | 17.60 | % | 17.55 | % | 16.76 | % | 17.55 | % | |||||||||
| Tier 1 risk-based capital to average assets | 9.67 | % | 10.21 | % | 10.92 | % | 9.67 | % | 10.92 | % | |||||||||
| (1) | Non-GAAP financial measure. Calculations of this measure and reconciliations to GAAP are included in the schedules accompanying this release. |
| RED RIVER BANCSHARES, INC. | |||||||||||||||||||
| CONSOLIDATED BALANCE SHEETS (UNAUDITED) | |||||||||||||||||||
| (in thousands) | December 31, 2021 | September 30, 2021 | June 30, 2021 | March 31, 2021 | December 31, 2020 | ||||||||||||||
| ASSETS | |||||||||||||||||||
| Cash and due from banks | $ | 23,143 | $ | 36,614 | $ | 33,728 | $ | 36,856 | $ | 29,537 | |||||||||
| Interest-bearing deposits in other banks | 761,721 | 693,950 | 633,744 | 566,144 | 417,664 | ||||||||||||||
| Securities available-for-sale | 659,178 | 568,199 | 512,012 | 515,942 | 498,206 | ||||||||||||||
| Equity securities | 7,846 | 7,920 | 3,961 | 3,951 | 4,021 | ||||||||||||||
| Nonmarketable equity securities | 3,450 | 3,449 | 3,449 | 3,447 | 3,447 | ||||||||||||||
| Loans held for sale | 4,290 | 8,782 | 12,291 | 18,449 | 29,116 | ||||||||||||||
| Loans held for investment | 1,683,832 | 1,622,593 | 1,600,388 | 1,602,086 | 1,588,446 | ||||||||||||||
| Allowance for loan losses | (19,176 | ) | (19,168 | ) | (19,460 | ) | (19,377 | ) | (17,951 | ) | |||||||||
| Premises and equipment, net | 48,056 | 47,432 | 47,414 | 46,950 | 46,924 | ||||||||||||||
| Accrued interest receivable | 6,245 | 5,927 | 6,039 | 6,460 | 6,880 | ||||||||||||||
| Bank-owned life insurance | 28,061 | 27,886 | 27,710 | 22,546 | 22,413 | ||||||||||||||
| Intangible assets | 1,546 | 1,546 | 1,546 | 1,546 | 1,546 | ||||||||||||||
| Right-of-use assets | 3,743 | 3,847 | 3,950 | 4,053 | 4,154 | ||||||||||||||
| Other assets | 12,775 | 11,807 | 11,704 | 11,619 | 8,231 | ||||||||||||||
| Total Assets | $ | 3,224,710 | $ | 3,020,784 | $ | 2,878,476 | $ | 2,820,672 | $ | 2,642,634 | |||||||||
| LIABILITIES | |||||||||||||||||||
| Noninterest-bearing deposits | $ | 1,149,672 | $ | 1,143,693 | $ | 1,031,486 | $ | 1,015,350 | $ | 943,615 | |||||||||
| Interest-bearing deposits | 1,760,676 | 1,560,890 | 1,538,113 | 1,499,925 | 1,396,745 | ||||||||||||||
| Total Deposits | 2,910,348 | 2,704,583 | 2,569,599 | 2,515,275 | 2,340,360 | ||||||||||||||
| Accrued interest payable | 1,310 | 1,340 | 1,432 | 1,699 | 1,774 | ||||||||||||||
| Lease liabilities | 3,842 | 3,943 | 4,042 | 4,138 | 4,233 | ||||||||||||||
| Accrued expenses and other liabilities | 11,060 | 12,230 | 10,479 | 14,649 | 10,789 | ||||||||||||||
| Total Liabilities | 2,926,560 | 2,722,096 | 2,585,552 | 2,535,761 | 2,357,156 | ||||||||||||||
| COMMITMENTS AND CONTINGENCIES | — | — | — | — | — | ||||||||||||||
| STOCKHOLDERS' EQUITY | |||||||||||||||||||
| Preferred stock, no par value | — | — | — | — | — | ||||||||||||||
| Common stock, no par value | 60,233 | 65,130 | 65,934 | 67,093 | 68,055 | ||||||||||||||
| Additional paid-in capital | 1,814 | 1,751 | 1,692 | 1,638 | 1,545 | ||||||||||||||
| Retained earnings | 239,876 | 231,868 | 224,240 | 216,511 | 208,957 | ||||||||||||||
| Accumulated other comprehensive income (loss) | (3,773 | ) | (61 | ) | 1,058 | (331 | ) | 6,921 | |||||||||||
| Total Stockholders' Equity | 298,150 | 298,688 | 292,924 | 284,911 | 285,478 | ||||||||||||||
| Total Liabilities and Stockholders' Equity | $ | 3,224,710 | $ | 3,020,784 | $ | 2,878,476 | $ | 2,820,672 | $ | 2,642,634 | |||||||||
| RED RIVER BANCSHARES, INC. | ||||||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) | ||||||||||||||||||
| For the Three Months Ended | For the Year Ended | |||||||||||||||||
| (in thousands) | December 31, 2021 | September 30, 2021 | December 31, 2020 | December 31, 2021 | December 31, 2020 | |||||||||||||
| INTEREST AND DIVIDEND INCOME | ||||||||||||||||||
| Interest and fees on loans | $ | 17,415 | $ | 16,993 | $ | 18,605 | $ | 67,923 | $ | 69,228 | ||||||||
| Interest on securities | 2,412 | 2,220 | 1,834 | 8,660 | 7,601 | |||||||||||||
| Interest on federal funds sold | 21 | 20 | 28 | 88 | 207 | |||||||||||||
| Interest on deposits in other banks | 226 | 202 | 58 | 658 | 322 | |||||||||||||
| Dividends on stock | 1 | 7 | 1 | 10 | 20 | |||||||||||||
| Total Interest and Dividend Income | 20,075 | 19,442 | 20,526 | 77,339 | 77,378 | |||||||||||||
| INTEREST EXPENSE | ||||||||||||||||||
| Interest on deposits | 1,300 | 1,333 | 1,865 | 5,617 | 8,362 | |||||||||||||
| Interest on other borrowed funds | — | — | — | — | 16 | |||||||||||||
| Total Interest Expense | 1,300 | 1,333 | 1,865 | 5,617 | 8,378 | |||||||||||||
| Net Interest Income | 18,775 | 18,109 | 18,661 | 71,722 | 69,000 | |||||||||||||
| Provision for loan losses | 150 | 150 | 2,675 | 1,900 | 6,293 | |||||||||||||
| Net Interest Income After Provision for Loan Losses | 18,625 | 17,959 | 15,986 | 69,822 | 62,707 | |||||||||||||
| NONINTEREST INCOME | ||||||||||||||||||
| Service charges on deposit accounts | 1,318 | 1,258 | 1,107 | 4,775 | 4,108 | |||||||||||||
| Debit card income, net | 1,071 | 1,094 | 1,011 | 4,415 | 3,641 | |||||||||||||
| Mortgage loan income | 1,667 | 1,770 | 2,679 | 8,676 | 8,398 | |||||||||||||
| Brokerage income | 806 | 851 | 598 | 3,297 | 2,324 | |||||||||||||
| Loan and deposit income | 457 | 413 | 361 | 1,738 | 1,701 | |||||||||||||
| Bank-owned life insurance income | 175 | 176 | 143 | 648 | 568 | |||||||||||||
| Gain (Loss) on equity securities | (75 | ) | (41 | ) | (11 | ) | (175 | ) | 85 | |||||||||
| Gain (Loss) on sale and call of securities | 1 | — | 93 | 194 | 1,441 | |||||||||||||
| SBIC income | 38 | 136 | 207 | 654 | 775 | |||||||||||||
| Other income (loss) | 214 | (14 | ) | 5 | 271 | 126 | ||||||||||||
| Total Noninterest Income | 5,672 | 5,643 | 6,193 | 24,493 | 23,167 | |||||||||||||
| OPERATING EXPENSES | ||||||||||||||||||
| Personnel expenses | 8,362 | 7,956 | 8,089 | 32,449 | 31,160 | |||||||||||||
| Occupancy and equipment expenses | 1,424 | 1,412 | 1,367 | 5,443 | 5,106 | |||||||||||||
| Technology expenses | 667 | 734 | 680 | 2,810 | 2,542 | |||||||||||||
| Advertising | 230 | 282 | 216 | 921 | 933 | |||||||||||||
| Other business development expenses | 280 | 283 | 238 | 1,169 | 1,020 | |||||||||||||
| Data processing expense | 537 | 528 | 493 | 1,982 | 1,905 | |||||||||||||
| Other taxes | 498 | 527 | 425 | 2,082 | 1,733 | |||||||||||||
| Loan and deposit expenses | 243 | 325 | 244 | 1,016 | 1,052 | |||||||||||||
| Legal and professional expenses | 493 | 453 | 554 | 1,683 | 2,141 | |||||||||||||
| Regulatory assessment expenses | 268 | 251 | 201 | 933 | 538 | |||||||||||||
| Other operating expenses | 1,014 | 933 | 829 | 3,767 | 3,276 | |||||||||||||
| Total Operating Expenses | 14,016 | 13,684 | 13,336 | 54,255 | 51,406 | |||||||||||||
| Income Before Income Tax Expense | 10,281 | 9,918 | 8,843 | 40,060 | 34,468 | |||||||||||||
| Income tax expense | 1,771 | 1,780 | 1,582 | 7,108 | 6,323 | |||||||||||||
| Net Income | 8,510 | $ | 8,138 | $ | 7,261 | $ | 32,952 | $ | 28,145 | |||||||||
| RED RIVER BANCSHARES, INC. | |||||||||||||||||||||||||||||
| NET INTEREST INCOME AND NET INTEREST MARGIN (UNAUDITED) | |||||||||||||||||||||||||||||
| For the Three Months Ended | |||||||||||||||||||||||||||||
| December 31, 2021 | September 30, 2021 | December 31, 2020 | |||||||||||||||||||||||||||
| (dollars in thousands) | Average Balance Outstanding | Interest Earned/ Interest Paid | Average Yield/ Rate | Average Balance Outstanding | Interest Earned/ Interest Paid | Average Yield/ Rate | Average Balance Outstanding | Interest Earned/ Interest Paid | Average Yield/ Rate | ||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||||
| Interest-earning assets: | |||||||||||||||||||||||||||||
| Loans(1,2) | $ | 1,654,711 | $ | 17,415 | 4.13 | % | $ | 1,619,019 | $ | 16,993 | 4.11 | % | $ | 1,635,103 | $ | 18,605 | 4.47 | % | |||||||||||
| Securities - taxable | 423,724 | 1,347 | 1.27 | % | 340,045 | 1,181 | 1.39 | % | 303,689 | 873 | 1.15 | % | |||||||||||||||||
| Securities - tax-exempt | 210,263 | 1,065 | 2.03 | % | 203,046 | 1,039 | 2.05 | % | 169,621 | 961 | 2.27 | % | |||||||||||||||||
| Federal funds sold | 55,342 | 21 | 0.15 | % | 52,589 | 20 | 0.15 | % | 80,175 | 28 | 0.14 | % | |||||||||||||||||
| Interest-bearing balances due from banks | 645,627 | 226 | 0.14 | % | 579,698 | 202 | 0.14 | % | 239,953 | 58 | 0.09 | % | |||||||||||||||||
| Nonmarketable equity securities | 3,449 | 1 | 0.10 | % | 3,448 | 7 | 0.81 | % | 3,446 | 1 | 0.13 | % | |||||||||||||||||
| Total interest-earning assets | 2,993,116 | $ | 20,075 | 2.64 | % | 2,797,845 | $ | 19,442 | 2.73 | % | 2,431,987 | $ | 20,526 | 3.32 | % | ||||||||||||||
| Allowance for loan losses | (19,164 | ) | (19,343 | ) | (16,653 | ) | |||||||||||||||||||||||
| Noninterest-earning assets | 130,268 | 135,697 | 131,220 | ||||||||||||||||||||||||||
| Total assets | $ | 3,104,220 | $ | 2,914,199 | $ | 2,546,554 | |||||||||||||||||||||||
| Liabilities and Stockholders’ Equity | |||||||||||||||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||||||||||
| Interest-bearing transaction deposits | $ | 1,310,430 | $ | 410 | 0.12 | % | $ | 1,210,605 | $ | 384 | 0.13 | % | $ | 983,992 | $ | 610 | 0.25 | % | |||||||||||
| Time deposits | 341,445 | 890 | 1.03 | % | 342,872 | 949 | 1.10 | % | 333,575 | 1,255 | 1.50 | % | |||||||||||||||||
| Total interest-bearing deposits | 1,651,875 | 1,300 | 0.31 | % | 1,553,477 | 1,333 | 0.34 | % | 1,317,567 | 1,865 | 0.56 | % | |||||||||||||||||
| Other borrowings | — | — | — | % | — | — | — | % | — | — | — | % | |||||||||||||||||
| Total interest-bearing liabilities | 1,651,875 | $ | 1,300 | 0.31 | % | 1,553,477 | $ | 1,333 | 0.34 | % | 1,317,567 | $ | 1,865 | 0.56 | % | ||||||||||||||
| Noninterest-bearing liabilities: | |||||||||||||||||||||||||||||
| Noninterest-bearing deposits | 1,136,342 | 1,046,139 | 927,123 | ||||||||||||||||||||||||||
| Accrued interest and other liabilities | 18,050 | 16,570 | 19,468 | ||||||||||||||||||||||||||
| Total noninterest-bearing liabilities | 1,154,392 | 1,062,709 | 946,591 | ||||||||||||||||||||||||||
| Stockholders’ equity | 297,953 | 298,013 | 282,396 | ||||||||||||||||||||||||||
| Total liabilities and stockholders’ equity | $ | 3,104,220 | $ | 2,914,199 | $ | 2,546,554 | |||||||||||||||||||||||
| Net interest income | $ | 18,775 | $ | 18,109 | $ | 18,661 | |||||||||||||||||||||||
| Net interest spread | 2.33 | % | 2.39 | % | 2.76 | % | |||||||||||||||||||||||
| Net interest margin | 2.46 | % | 2.54 | % | 3.01 | % | |||||||||||||||||||||||
| Net interest margin FTE(3) | 2.52 | % | 2.60 | % | 3.08 | % | |||||||||||||||||||||||
| Cost of deposits | 0.18 | % | 0.20 | % | 0.33 | % | |||||||||||||||||||||||
| Cost of funds | 0.17 | % | 0.19 | % | 0.31 | % | |||||||||||||||||||||||
| (1) | Includes average outstanding balances of loans held for sale of | |
| (2) | Nonaccrual loans are included as loans carrying a zero yield. | |
| (3) | Net interest margin FTE includes an FTE adjustment using a |
| RED RIVER BANCSHARES, INC. | |||||||||||||||||||||||||||||
| LOAN INTEREST INCOME, NET INTEREST INCOME, AND NET INTEREST RATIOS EXCLUDING PPP LOANS (NON-GAAP) (UNAUDITED) | |||||||||||||||||||||||||||||
| The following table presents interest income for total loans, PPP loans, and total non-PPP loans (non-GAAP), as well as net interest income and net interest ratios excluding PPP loans (non-GAAP) for the three months ended December 31, 2021, September 30, 2021, and December 31, 2020. | |||||||||||||||||||||||||||||
| For the Three Months Ended | |||||||||||||||||||||||||||||
| December 31, 2021 | September 30, 2021 | December 31, 2020 | |||||||||||||||||||||||||||
| (dollars in thousands) | Average Balance Outstanding | Interest/ Fees Earned | Average Yield | Average Balance Outstanding | Interest/ Fees Earned | Average Yield | Average Balance Outstanding | Interest/ Fees Earned | Average Yield | ||||||||||||||||||||
| Loans(1,2) | $ | 1,654,711 | $ | 17,415 | 4.13 | % | $ | 1,619,019 | $ | 16,993 | 4.11 | % | $ | 1,635,103 | $ | 18,605 | 4.47 | % | |||||||||||
| Less: PPP loans, net | |||||||||||||||||||||||||||||
| Average | 29,191 | 63,205 | 161,109 | ||||||||||||||||||||||||||
| Interest | 76 | 166 | 419 | ||||||||||||||||||||||||||
| Fees | 1,136 | 1,201 | 2,604 | ||||||||||||||||||||||||||
| Total PPP loans, net | 29,191 | 1,212 | 16.46 | % | 63,205 | 1,367 | 8.57 | % | 161,109 | 3,023 | 7.45 | % | |||||||||||||||||
| Non-PPP loans (non-GAAP)(4) | $ | 1,625,520 | $ | 16,203 | 3.90 | % | $ | 1,555,814 | $ | 15,626 | 3.93 | % | $ | 1,473,994 | $ | 15,582 | 4.14 | % | |||||||||||
| Net interest income, excluding PPP loan income (non-GAAP) | |||||||||||||||||||||||||||||
| Net interest income | $ | 18,775 | $ | 18,109 | $ | 18,661 | |||||||||||||||||||||||
| PPP loan income | (1,212 | ) | (1,367 | ) | (3,023 | ) | |||||||||||||||||||||||
| Net interest income, excluding PPP loan income (non-GAAP)(4) | $ | 17,563 | $ | 16,742 | $ | 15,638 | |||||||||||||||||||||||
| Ratios excluding PPP loans, net (non-GAAP)(4) | |||||||||||||||||||||||||||||
| Net interest spread | 2.19 | % | 2.26 | % | 2.47 | % | |||||||||||||||||||||||
| Net interest margin | 2.33 | % | 2.40 | % | 2.70 | % | |||||||||||||||||||||||
| Net interest margin FTE(3) | 2.38 | % | 2.46 | % | 2.77 | % | |||||||||||||||||||||||
| (1) | Includes average outstanding balances of loans held for sale of | |
| (2) | Nonaccrual loans are included as loans carrying a zero yield. | |
| (3) | Net interest margin FTE includes an FTE adjustment using a | |
| (4) | Non-GAAP financial measure. Calculations of this measure and reconciliations to GAAP are included in the schedules accompanying this release. |
| RED RIVER BANCSHARES, INC. | |||||||||||||||||||
| NET INTEREST INCOME AND NET INTEREST MARGIN (UNAUDITED) | |||||||||||||||||||
| For the Year Ended December 31, | |||||||||||||||||||
| 2021 | 2020 | ||||||||||||||||||
| (dollars in thousands) | Average Balance Outstanding | Interest Earned/ Interest Paid | Average Yield/ Rate | Average Balance Outstanding | Interest Earned/ Interest Paid | Average Yield/ Rate | |||||||||||||
| Assets | |||||||||||||||||||
| Interest-earning assets: | |||||||||||||||||||
| Loans(1,2) | $ | 1,621,606 | $ | 67,923 | 4.14 | % | $ | 1,587,351 | $ | 69,228 | 4.30 | % | |||||||
| Securities - taxable | 344,913 | 4,493 | 1.30 | % | 287,591 | 4,598 | 1.60 | % | |||||||||||
| Securities - tax-exempt | 202,255 | 4,167 | 2.06 | % | 128,416 | 3,003 | 2.34 | % | |||||||||||
| Federal funds sold | 66,934 | 88 | 0.13 | % | 67,328 | 207 | 0.30 | % | |||||||||||
| Interest-bearing balances due from banks | 552,501 | 658 | 0.12 | % | 129,090 | 322 | 0.25 | % | |||||||||||
| Nonmarketable equity securities | 3,448 | 10 | 0.28 | % | 2,842 | 20 | 0.71 | % | |||||||||||
| Total interest-earning assets | 2,791,657 | $ | 77,339 | 2.74 | % | 2,202,618 | $ | 77,378 | 3.47 | % | |||||||||
| Allowance for loan losses | (19,155 | ) | (15,192 | ) | |||||||||||||||
| Noninterest-earning assets | 132,611 | 125,028 | |||||||||||||||||
| Total assets | $ | 2,905,113 | $ | 2,312,454 | |||||||||||||||
| Liabilities and Stockholders’ Equity | |||||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||
| Interest-bearing transaction deposits | $ | 1,210,796 | $ | 1,648 | 0.14 | % | $ | 877,836 | $ | 2,824 | 0.32 | % | |||||||
| Time deposits | 341,746 | 3,969 | 1.16 | % | 333,260 | 5,538 | 1.66 | % | |||||||||||
| Total interest-bearing deposits | 1,552,542 | 5,617 | 0.36 | % | 1,211,096 | 8,362 | 0.69 | % | |||||||||||
| Other borrowings | — | — | — | % | 4,664 | 16 | 0.35 | % | |||||||||||
| Total interest-bearing liabilities | 1,552,542 | $ | 5,617 | 0.36 | % | 1,215,760 | $ | 8,378 | 0.69 | % | |||||||||
| Noninterest-bearing liabilities: | |||||||||||||||||||
| Noninterest-bearing deposits | 1,041,238 | 807,528 | |||||||||||||||||
| Accrued interest and other liabilities | 17,507 | 18,192 | |||||||||||||||||
| Total noninterest-bearing liabilities | 1,058,745 | 825,720 | |||||||||||||||||
| Stockholders’ equity | 293,826 | 270,974 | |||||||||||||||||
| Total liabilities and stockholders’ equity | $ | 2,905,113 | $ | 2,312,454 | |||||||||||||||
| Net interest income | $ | 71,722 | $ | 69,000 | |||||||||||||||
| Net interest spread | 2.38 | % | 2.78 | % | |||||||||||||||
| Net interest margin | 2.54 | % | 3.09 | % | |||||||||||||||
| Net interest margin FTE(3) | 2.60 | % | 3.14 | % | |||||||||||||||
| Cost of deposits | 0.22 | % | 0.41 | % | |||||||||||||||
| Cost of funds | 0.20 | % | 0.38 | % | |||||||||||||||
| (1) | Includes average outstanding balances of loans held for sale of | |
| (2) | Nonaccrual loans are included as loans carrying a zero yield. | |
| (3) | Net interest margin FTE includes an FTE adjustment using a |
| RED RIVER BANCSHARES, INC. | |||||||||||||||||||
| LOAN INTEREST INCOME, NET INTEREST INCOME, AND NET INTEREST RATIOS EXCLUDING PPP LOANS (NON-GAAP) (UNAUDITED) | |||||||||||||||||||
| The following table presents interest income for total loans, PPP loans, and total non-PPP loans (non-GAAP), as well as net interest income and net interest ratios excluding PPP loans (non-GAAP) for the year ended December 31, 2021 and 2020. | |||||||||||||||||||
| For the Year Ended December 31, | |||||||||||||||||||
| 2021 | 2020 | ||||||||||||||||||
| (dollars in thousands) | Average Balance Outstanding | Interest/Fees Earned | Average Yield | Average Balance Outstanding | Interest/Fees Earned | Average Yield | |||||||||||||
| Loans(1,2) | $ | 1,621,606 | $ | 67,923 | 4.14 | % | $ | 1,587,351 | $ | 69,228 | 4.30 | % | |||||||
| Less: PPP loans, net | |||||||||||||||||||
| Average | 77,222 | 127,410 | |||||||||||||||||
| Interest | 809 | 1,351 | |||||||||||||||||
| Fees | 4,964 | 4,211 | |||||||||||||||||
| Total PPP loans, net | 77,222 | 5,773 | 7.46 | % | 127,410 | 5,562 | 4.35 | % | |||||||||||
| Non-PPP loans (non-GAAP)(4) | $ | 1,544,384 | $ | 62,150 | 3.97 | % | $ | 1,459,941 | $ | 63,666 | 4.29 | % | |||||||
| Net interest income, excluding PPP loan income (non-GAAP) | |||||||||||||||||||
| Net interest income | $ | 71,722 | $ | 69,000 | |||||||||||||||
| PPP loan income | (5,773 | ) | (5,562 | ) | |||||||||||||||
| Net interest income, excluding PPP loan income (non-GAAP)(4) | $ | 65,949 | $ | 63,438 | |||||||||||||||
| Ratios excluding PPP loans, net (non-GAAP)(4) | |||||||||||||||||||
| Net interest spread | 2.25 | % | 2.72 | % | |||||||||||||||
| Net interest margin | 2.40 | % | 3.01 | % | |||||||||||||||
| Net interest margin FTE(3) | 2.46 | % | 3.07 | % | |||||||||||||||
| (1) | Includes average outstanding balances of loans held for sale of | |
| (2) | Nonaccrual loans are included as loans carrying a zero yield. | |
| (3) | Net interest margin FTE includes an FTE adjustment using a | |
| (4) | Non-GAAP financial measure. Calculations of this measure and reconciliations to GAAP are included in the schedules accompanying this release. |
| RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED) | |||||||||||
| (dollars in thousands, except per share data) | December 31, 2021 | September 30, 2021 | December 31, 2020 | ||||||||
| Tangible common equity | |||||||||||
| Total stockholders' equity | $ | 298,150 | $ | 298,688 | $ | 285,478 | |||||
| Adjustments: | |||||||||||
| Intangible assets | (1,546 | ) | (1,546 | ) | (1,546 | ) | |||||
| Total tangible common equity (non-GAAP) | $ | 296,604 | $ | 297,142 | $ | 283,932 | |||||
| Common shares outstanding | 7,180,155 | 7,276,400 | 7,325,333 | ||||||||
| Book value per common share | $ | 41.52 | $ | 41.05 | $ | 38.97 | |||||
| Tangible book value per common share (non-GAAP) | $ | 41.31 | $ | 40.84 | $ | 38.76 | |||||
| Tangible assets | |||||||||||
| Total assets | $ | 3,224,710 | $ | 3,020,784 | $ | 2,642,634 | |||||
| Adjustments: | |||||||||||
| Intangible assets | (1,546 | ) | (1,546 | ) | (1,546 | ) | |||||
| Total tangible assets (non-GAAP) | $ | 3,223,164 | $ | 3,019,238 | $ | 2,641,088 | |||||
| Total stockholders' equity to assets | 9.25 | % | 9.89 | % | 10.80 | % | |||||
| Tangible common equity to tangible assets (non-GAAP) | 9.20 | % | 9.84 | % | 10.75 | % | |||||
| Non-PPP loans HFI | |||||||||||
| Loans HFI | $ | 1,683,832 | $ | 1,622,593 | $ | 1,588,446 | |||||
| Adjustments: | |||||||||||
| PPP loans, net | (17,550 | ) | (45,962 | ) | (118,447 | ) | |||||
| Non-PPP loans HFI (non-GAAP) | $ | 1,666,282 | $ | 1,576,631 | $ | 1,469,999 | |||||
| Assets excluding PPP loans, net | |||||||||||
| Assets | $ | 3,224,710 | $ | 3,020,784 | $ | 2,642,634 | |||||
| Adjustments: | |||||||||||
| PPP loans, net | (17,550 | ) | (45,962 | ) | (118,447 | ) | |||||
| Assets excluding PPP loans, net (non-GAAP) | $ | 3,207,160 | $ | 2,974,822 | $ | 2,524,187 | |||||
| Allowance for loan losses | $ | 19,176 | $ | 19,168 | $ | 17,951 | |||||
| Deposits | $ | 2,910,348 | $ | 2,704,583 | $ | 2,340,360 | |||||
| Loans HFI to deposits ratio | 57.86 | % | 59.99 | % | 67.87 | % | |||||
| Non-PPP loans HFI to deposits ratio (non-GAAP) | 57.25 | % | 58.29 | % | 62.81 | % | |||||
| Allowance for loan losses to loans HFI | 1.14 | % | 1.18 | % | 1.13 | % | |||||
| Allowance for loan losses to non-PPP loans HFI (non-GAAP) | 1.15 | % | 1.22 | % | 1.22 | % | |||||
FAQ
What were Red River Bancshares' earnings for Q4 2021?
How much did deposits increase at Red River Bancshares in Q4 2021?
What is the outlook for Red River Bancshares in 2022?
What was the stock repurchase amount completed by Red River Bancshares?
How did Red River Bancshares' non-PPP loan performance change in Q4 2021?
