Red River Bancshares, Inc. Reports Fourth Quarter and Year-End 2022 Financial Results
Red River Bancshares, Inc. (Nasdaq: RRBI) reported consistent financial results for Q4 and the year ended 2022, with net income of $10.2 million ($1.42 EPS) for Q4, a 19.8% increase from $8.5 million ($1.17 EPS) in Q4 2021. For the full year, net income was $36.9 million ($5.13 EPS), up 12% from 2021. Key metrics include a Q4 return on assets of 1.33% and return on equity of 16.34%. The bank maintained strong liquidity with total assets of $3.08 billion and renewed its stock repurchase program for 2023, authorizing up to $5 million. However, higher provisions for loan losses were noted due to economic challenges.
- Net income for 2022 increased by 12% year-over-year.
- Return on assets improved to 1.33% in Q4 2022.
- Return on equity was strong at 16.34% for Q4 2022.
- Loan growth of 13.8% for the full year of 2022.
- Higher provision for loan losses of $750,000 due to economic challenges.
- Noninterest income decreased by 5.1% from the previous quarter.
ALEXANDRIA, La., Jan. 30, 2023 (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 2022.
Net income for the fourth quarter of 2022 was
Net income for the year ended December 31, 2022, was
Fourth Quarter and Year-End 2022 Performance and Operational Highlights
In the fourth quarter of 2022, the Company had consistent earnings and the balance sheet remained steady. We renewed the stock repurchase program and opened a new operations center building.
- Net income for the fourth quarter of 2022 was
$10.2 million , consistent with the prior quarter. Higher net interest income was offset by lower noninterest income and a higher provision for loan loss expense. - For the third consecutive quarter, net interest income and net interest margin fully tax equivalent (“FTE”) increased compared to the prior quarter. Net interest income for the fourth quarter of 2022 was
$23.7 million compared to$23.1 million for the prior quarter. Net interest margin FTE for the fourth quarter of 2022 was3.17% compared to3.06% for the prior quarter. These increases were a result of the higher interest rate environment benefiting asset yields, partially offset by higher deposit costs. - As of December 31, 2022, assets were
$3.08 billion , fairly consistent with$3.06 billion as of September 30, 2022. - As of December 31, 2022, loans held for investment (“HFI”) were
$1.92 billion , an increase of$36.6 million , or1.9% , from September 30, 2022. The growth in loans HFI was primarily a result of loan activity in various markets across Louisiana. - As of December 31, 2022, total securities were
$776.1 million , or25.2% of assets, compared to$764.5 million , or25.0% of assets, as of September 30, 2022. During the fourth quarter, securities were impacted by a decrease to the net unrealized loss on securities available-for-sale (“AFS”), the purchase of a Community Reinvestment Act (“CRA”) mutual fund, and principal repayments. - Deposits were
$2.80 billion as of December 31, 2022 and September 30, 2022. However, there were fluctuations in deposit categories as a result of implementing a new deposit program and customer deposit activity. - Nonperforming assets (“NPA(s)”) were
$2.4 million , or0.08% of assets, as of December 31, 2022. As of December 31, 2022, the allowance for loan losses (“ALL”) was$20.6 million , or1.08% of loans HFI. - We paid a quarterly cash dividend of
$0.07 per common share in the fourth quarter of 2022. - We did not repurchase any shares of our common stock through our stock repurchase program in the fourth quarter of 2022. The 2022 stock repurchase program that began February 4, 2022 expired on December 31, 2022. On November 4, 2022, our Board of Directors approved the renewal of our stock repurchase program for 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 fourth quarter of 2022, we finished remodeling and opened the new Red River Bank operations center building. This remodeled 21,000 square foot building is located adjacent to the Red River Bank headquarters building in Alexandria, Louisiana. This building was designed to provide an efficient and modern facility for Red River Bank operations and support departments and to improve the Red River Bank business continuity plan.
Blake Chatelain, President and Chief Executive Officer of the Company, stated, “The fourth quarter of 2022 wrapped up a uniquely challenging, yet rewarding year for the Company. In 2022, our bankers successfully navigated a period of historical interest rate changes and a shifting economic environment while achieving strong loan growth and record-high earnings. In 2022, we replaced
“During 2022, our customers adjusted their expectations due to the changing interest rate and economic environments. Loan demand was higher in the first half of 2022 than in the second half of the year; however, growth in loans HFI overall was
“As we begin 2023, we believe we are well positioned for the year ahead. The Company is well capitalized, has excellent asset quality, solid earnings, and dedicated, knowledgeable community bankers who serve our growing customer base. We continue to successfully expand organically throughout Louisiana. We understand that there are possible economic challenges ahead as economists predict recessionary and inflationary environments; however, we are well positioned and confident in the opportunity for continued growth, profitability, and returns for our shareholders.”
Net Interest Income and Net Interest Margin FTE
Net interest income and net interest margin FTE for the fourth quarter of 2022 were positively impacted by the Federal Open Market Committee (“FOMC”) increasing the target federal funds rate by 75 basis points (“bp(s)”) in November 2022 and 50 bps in December 2022. These increases were in addition to the 25 bp increase in March 2022, 50 bp increase in May 2022, and 75 bp increases in each of June, July, and September 2022.
Net interest income for the fourth quarter of 2022 was
The net interest margin FTE increased 11 bps to
The FOMC is expected to raise the target federal funds rate several more times in early 2023. Our balance sheet is asset sensitive, and interest income on earning assets generally improves in a higher rate environment. However, we also expect additional pressure on deposit interest rates due to the higher interest rate environment and competition for deposits. As of December 31, 2022, floating rate loans were
Provision for Loan Losses
The provision for loan losses for the fourth quarter of 2022 was
Noninterest Income
Noninterest income totaled
Mortgage loan income for the fourth quarter of 2022 was
Service charges on deposit accounts totaled
Brokerage income for the fourth quarter of 2022 was
Operating Expenses
Operating expenses for the fourth quarter of 2022 totaled
Other taxes totaled
Other business development expenses totaled
Occupancy and equipment expenses totaled
Personnel expenses totaled
Asset Overview
As of December 31, 2022, assets totaled
Securities
Total securities as of December 31, 2022, were
Securities AFS totaled
As of December 31, 2022, we held a
Loans
Loans HFI as of December 31, 2022, were
As of December 31, 2022, PPP loans were materially complete and totaled
Health care loans are our largest industry concentration and are made up of a diversified portfolio of health care providers. As of December 31, 2022, total health care loans 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, 2022,
Asset Quality and Allowance for Loan Losses
NPAs totaled
As of December 31, 2022, the ALL was
As a Securities and Exchange Commission (“SEC”) registrant with smaller reporting company filing status as determined on June 30, 2019, the current expected credit loss methodology (“CECL”) was effective for us beginning on January 1, 2023. Based upon our CECL analysis as of December 31, 2022, we expect the adoption of CECL will result in a combined
Deposits
Deposits were
Stockholders’ Equity
Total stockholders’ equity as of December 31, 2022, was
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 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, realized book value per share, 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 within the following 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 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
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
| 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, 2022 | September 30, 2022 | December 31, 2021 | December 31, 2022 | December 31, 2021 | ||||||||||||||
| Net Income | $ | 10,191 | $ | 10,186 | $ | 8,510 | $ | 36,916 | $ | 32,952 | |||||||||
| Per Common Share Data: | |||||||||||||||||||
| Earnings per share, basic | $ | 1.42 | $ | 1.42 | $ | 1.18 | $ | 5.14 | $ | 4.53 | |||||||||
| Earnings per share, diluted | $ | 1.42 | $ | 1.42 | $ | 1.17 | $ | 5.13 | $ | 4.51 | |||||||||
| Book value per share | $ | 36.99 | $ | 33.88 | $ | 41.52 | $ | 36.99 | $ | 41.52 | |||||||||
| Tangible book value per share(1) | $ | 36.78 | $ | 33.67 | $ | 41.31 | $ | 36.78 | $ | 41.31 | |||||||||
| Realized book value per share(1) | $ | 46.90 | $ | 45.54 | $ | 42.05 | $ | 46.90 | $ | 42.05 | |||||||||
| Cash dividends per share | $ | 0.07 | $ | 0.07 | $ | 0.07 | $ | 0.28 | $ | 0.28 | |||||||||
| Shares outstanding | 7,183,915 | 7,183,915 | 7,180,155 | 7,183,915 | 7,180,155 | ||||||||||||||
| Weighted average shares outstanding, basic | 7,183,915 | 7,183,915 | 7,229,324 | 7,180,975 | 7,281,136 | ||||||||||||||
| Weighted average shares outstanding, diluted | 7,199,247 | 7,197,100 | 7,247,277 | 7,197,453 | 7,299,720 | ||||||||||||||
| Summary Performance Ratios: | |||||||||||||||||||
| Return on average assets | 1.33 | % | 1.30 | % | 1.09 | % | 1.18 | % | 1.13 | % | |||||||||
| Return on average equity | 16.34 | % | 15.48 | % | 11.33 | % | 13.98 | % | 11.21 | % | |||||||||
| Net interest margin | 3.11 | % | 3.00 | % | 2.46 | % | 2.80 | % | 2.54 | % | |||||||||
| Net interest margin FTE | 3.17 | % | 3.06 | % | 2.52 | % | 2.86 | % | 2.60 | % | |||||||||
| Efficiency ratio | 54.76 | % | 53.80 | % | 57.33 | % | 56.60 | % | 56.39 | % | |||||||||
| Loans HFI to deposits ratio | 68.46 | % | 67.22 | % | 57.86 | % | 68.46 | % | 57.86 | % | |||||||||
| Noninterest-bearing deposits to deposits ratio | 38.96 | % | 41.92 | % | 39.50 | % | 38.96 | % | 39.50 | % | |||||||||
| Noninterest income to average assets | 0.60 | % | 0.62 | % | 0.72 | % | 0.60 | % | 0.84 | % | |||||||||
| Operating expense to average assets | 1.97 | % | 1.93 | % | 1.79 | % | 1.87 | % | 1.87 | % | |||||||||
| Summary Credit Quality Ratios: | |||||||||||||||||||
| Nonperforming assets to assets | 0.08 | % | 0.09 | % | 0.03 | % | 0.08 | % | 0.03 | % | |||||||||
| Nonperforming loans to loans HFI | 0.12 | % | 0.14 | % | 0.02 | % | 0.12 | % | 0.02 | % | |||||||||
| Allowance for loan losses to loans HFI | 1.08 | % | 1.06 | % | 1.14 | % | 1.08 | % | 1.14 | % | |||||||||
| Net charge-offs to average loans | 0.00 | % | 0.00 | % | 0.01 | % | 0.02 | % | 0.04 | % | |||||||||
| Capital Ratios: | |||||||||||||||||||
| Stockholders’ equity to assets | 8.62 | % | 7.96 | % | 9.25 | % | 8.62 | % | 9.25 | % | |||||||||
| Tangible common equity to tangible assets (1) | 8.57 | % | 7.91 | % | 9.20 | % | 8.57 | % | 9.20 | % | |||||||||
| Total risk-based capital to risk-weighted assets | 17.39 | % | 17.15 | % | 17.83 | % | 17.39 | % | 17.83 | % | |||||||||
| Tier 1 risk-based capital to risk-weighted assets | 16.38 | % | 16.16 | % | 16.76 | % | 16.38 | % | 16.76 | % | |||||||||
| Common equity Tier 1 capital to risk-weighted assets | 16.38 | % | 16.16 | % | 16.76 | % | 16.38 | % | 16.76 | % | |||||||||
| Tier 1 risk-based capital to average assets | 11.37 | % | 10.31 | % | 9.67 | % | 11.37 | % | 9.67 | % | |||||||||
(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, 2022 | September 30, 2022 | June 30, 2022 | March 31, 2022 | December 31, 2021 | ||||||||||||||
| ASSETS | |||||||||||||||||||
| Cash and due from banks | $ | 37,824 | $ | 39,465 | $ | 39,339 | $ | 40,137 | $ | 23,143 | |||||||||
| Interest-bearing deposits in other banks | 240,568 | 261,608 | 317,061 | 506,982 | 761,721 | ||||||||||||||
| Securities available-for-sale, at fair value | 614,407 | 609,748 | 651,125 | 810,804 | 659,178 | ||||||||||||||
| Securities held-to-maturity, at amortized cost | 151,683 | 154,736 | 159,562 | — | — | ||||||||||||||
| Equity securities, at fair value | 9,979 | — | — | 7,481 | 7,846 | ||||||||||||||
| Nonmarketable equity securities | 3,478 | 3,460 | 3,452 | 3,451 | 3,450 | ||||||||||||||
| Loans held for sale | 518 | 1,536 | 4,524 | 6,641 | 4,290 | ||||||||||||||
| Loans held for investment | 1,916,267 | 1,879,669 | 1,841,585 | 1,741,026 | 1,683,832 | ||||||||||||||
| Allowance for loan losses | (20,628 | ) | (19,953 | ) | (19,395 | ) | (19,244 | ) | (19,176 | ) | |||||||||
| Premises and equipment, net | 54,383 | 52,820 | 52,172 | 50,605 | 48,056 | ||||||||||||||
| Accrued interest receivable | 8,830 | 7,782 | 7,356 | 6,654 | 6,245 | ||||||||||||||
| Bank-owned life insurance | 28,775 | 28,594 | 28,413 | 28,233 | 28,061 | ||||||||||||||
| Intangible assets | 1,546 | 1,546 | 1,546 | 1,546 | 1,546 | ||||||||||||||
| Right-of-use assets | 4,137 | 4,262 | 4,385 | 4,506 | 3,743 | ||||||||||||||
| Other assets | 30,919 | 34,405 | 29,988 | 23,638 | 12,775 | ||||||||||||||
| Total Assets | $ | 3,082,686 | $ | 3,059,678 | $ | 3,121,113 | $ | 3,212,460 | $ | 3,224,710 | |||||||||
| LIABILITIES | |||||||||||||||||||
| Noninterest-bearing deposits | $ | 1,090,539 | $ | 1,172,157 | $ | 1,181,781 | $ | 1,181,136 | $ | 1,149,672 | |||||||||
| Interest-bearing deposits | 1,708,397 | 1,624,337 | 1,668,414 | 1,746,592 | 1,760,676 | ||||||||||||||
| Total Deposits | 2,798,936 | 2,796,494 | 2,850,195 | 2,927,728 | 2,910,348 | ||||||||||||||
| Accrued interest payable | 1,563 | 1,194 | 1,176 | 1,329 | 1,310 | ||||||||||||||
| Lease liabilities | 4,258 | 4,377 | 4,494 | 4,610 | 3,842 | ||||||||||||||
| Accrued expenses and other liabilities | 12,176 | 14,200 | 11,652 | 13,919 | 11,060 | ||||||||||||||
| Total Liabilities | 2,816,933 | 2,816,265 | 2,867,517 | 2,947,586 | 2,926,560 | ||||||||||||||
| COMMITMENTS AND CONTINGENCIES | — | — | — | — | — | ||||||||||||||
| STOCKHOLDERS’ EQUITY | |||||||||||||||||||
| Preferred stock, no par value | — | — | — | — | — | ||||||||||||||
| Common stock, no par value | 60,050 | 60,050 | 60,050 | 60,050 | 60,233 | ||||||||||||||
| Additional paid-in capital | 2,088 | 2,014 | 1,940 | 1,877 | 1,814 | ||||||||||||||
| Retained earnings | 274,781 | 265,093 | 255,410 | 246,766 | 239,876 | ||||||||||||||
| Accumulated other comprehensive income (loss) | (71,166 | ) | (83,744 | ) | (63,804 | ) | (43,819 | ) | (3,773 | ) | |||||||||
| Total Stockholders’ Equity | 265,753 | 243,413 | 253,596 | 264,874 | 298,150 | ||||||||||||||
| Total Liabilities and Stockholders’ Equity | $ | 3,082,686 | $ | 3,059,678 | $ | 3,121,113 | $ | 3,212,460 | $ | 3,224,710 | |||||||||
| RED RIVER BANCSHARES, INC. | ||||||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) | ||||||||||||||||||
| For the Three Months Ended | For the Year Ended | |||||||||||||||||
| (in thousands) | December 31, 2022 | September 30, 2022 | December 31, 2021 | December 31, 2022 | December 31, 2021 | |||||||||||||
| INTEREST AND DIVIDEND INCOME | ||||||||||||||||||
| Interest and fees on loans | $ | 21,284 | $ | 19,740 | $ | 17,415 | $ | 75,827 | $ | 67,923 | ||||||||
| Interest on securities | 3,524 | 3,572 | 2,412 | 13,735 | 8,660 | |||||||||||||
| Interest on federal funds sold | 634 | 317 | 21 | 1,091 | 88 | |||||||||||||
| Interest on deposits in other banks | 1,522 | 1,238 | 226 | 3,682 | 658 | |||||||||||||
| Dividends on stock | 18 | 19 | 1 | 40 | 10 | |||||||||||||
| Total Interest and Dividend Income | 26,982 | 24,886 | 20,075 | 94,375 | 77,339 | |||||||||||||
| INTEREST EXPENSE | ||||||||||||||||||
| Interest on deposits | 3,308 | 1,798 | 1,300 | 7,736 | 5,617 | |||||||||||||
| Total Interest Expense | 3,308 | 1,798 | 1,300 | 7,736 | 5,617 | |||||||||||||
| Net Interest Income | 23,674 | 23,088 | 18,775 | 86,639 | 71,722 | |||||||||||||
| Provision for loan losses | 750 | 600 | 150 | 1,750 | 1,900 | |||||||||||||
| Net Interest Income After Provision for Loan Losses | 22,924 | 22,488 | 18,625 | 84,889 | 69,822 | |||||||||||||
| NONINTEREST INCOME | ||||||||||||||||||
| Service charges on deposit accounts | 1,359 | 1,488 | 1,318 | 5,565 | 4,775 | |||||||||||||
| Debit card income, net | 972 | 934 | 1,071 | 3,897 | 4,415 | |||||||||||||
| Mortgage loan income | 453 | 624 | 1,667 | 3,096 | 8,676 | |||||||||||||
| Brokerage income | 1,013 | 870 | 806 | 3,549 | 3,297 | |||||||||||||
| Loan and deposit income | 440 | 502 | 457 | 1,723 | 1,738 | |||||||||||||
| Bank-owned life insurance income | 180 | 181 | 175 | 713 | 648 | |||||||||||||
| Gain (Loss) on equity securities | (21 | ) | — | (75 | ) | (468 | ) | (175 | ) | |||||||||
| Gain (Loss) on sale and call of securities | — | 16 | 1 | (59 | ) | 194 | ||||||||||||
| SBIC income | 162 | 231 | 38 | 563 | 654 | |||||||||||||
| Other income (loss) | 61 | 21 | 214 | 168 | 271 | |||||||||||||
| Total Noninterest Income | 4,619 | 4,867 | 5,672 | 18,747 | 24,493 | |||||||||||||
| OPERATING EXPENSES | ||||||||||||||||||
| Personnel expenses | 8,681 | 8,853 | 8,362 | 34,560 | 32,449 | |||||||||||||
| Occupancy and equipment expenses | 1,613 | 1,531 | 1,424 | 6,109 | 5,443 | |||||||||||||
| Technology expenses | 645 | 653 | 667 | 2,763 | 2,810 | |||||||||||||
| Advertising | 293 | 316 | 230 | 1,134 | 921 | |||||||||||||
| Other business development expenses | 566 | 436 | 280 | 1,645 | 1,169 | |||||||||||||
| Data processing expense | 609 | 604 | 537 | 2,093 | 1,982 | |||||||||||||
| Other taxes | 781 | 650 | 498 | 2,714 | 2,082 | |||||||||||||
| Loan and deposit expenses | 180 | 164 | 243 | 659 | 1,016 | |||||||||||||
| Legal and professional expenses | 550 | 553 | 493 | 1,997 | 1,683 | |||||||||||||
| Regulatory assessment expenses | 277 | 280 | 268 | 1,058 | 933 | |||||||||||||
| Other operating expenses | 887 | 1,001 | 1,014 | 3,923 | 3,767 | |||||||||||||
| Total Operating Expenses | 15,082 | 15,041 | 14,016 | 58,655 | 54,255 | |||||||||||||
| Income Before Income Tax Expense | 12,461 | 12,314 | 10,281 | 44,981 | 40,060 | |||||||||||||
| Income tax expense | 2,270 | 2,128 | 1,771 | 8,065 | 7,108 | |||||||||||||
| Net Income | $ | 10,191 | $ | 10,186 | $ | 8,510 | $ | 36,916 | $ | 32,952 | ||||||||
| RED RIVER BANCSHARES, INC. | |||||||||||||||||||
| NET INTEREST INCOME AND NET INTEREST MARGIN (UNAUDITED) | |||||||||||||||||||
| For the Three Months Ended | |||||||||||||||||||
| December 31, 2022 | September 30, 2022 | ||||||||||||||||||
| (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) | $ | 1,904,592 | $ | 21,284 | 4.38 | % | $ | 1,871,834 | $ | 19,740 | 4.13 | % | |||||||
| Securities - taxable | 642,121 | 2,495 | 1.55 | % | 658,245 | 2,536 | 1.54 | % | |||||||||||
| Securities - tax-exempt | 206,141 | 1,029 | 2.00 | % | 207,182 | 1,036 | 2.00 | % | |||||||||||
| Federal funds sold | 66,044 | 634 | 3.75 | % | 55,201 | 317 | 2.25 | % | |||||||||||
| Interest-bearing deposits in other banks | 161,558 | 1,522 | 3.69 | % | 219,845 | 1,238 | 2.21 | % | |||||||||||
| Nonmarketable equity securities | 3,460 | 18 | 2.08 | % | 3,452 | 19 | 2.24 | % | |||||||||||
| Total interest-earning assets | 2,983,916 | $ | 26,982 | 3.55 | % | 3,015,759 | $ | 24,886 | 3.24 | % | |||||||||
| Allowance for loan losses | (20,255 | ) | (19,667 | ) | |||||||||||||||
| Noninterest-earning assets | 78,047 | 100,685 | |||||||||||||||||
| Total assets | $ | 3,041,708 | $ | 3,096,777 | |||||||||||||||
| Liabilities and Stockholders’ Equity | |||||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||
| Interest-bearing transaction deposits | $ | 1,292,313 | $ | 2,131 | 0.65 | % | $ | 1,323,081 | $ | 938 | 0.28 | % | |||||||
| Time deposits | 335,424 | 1,177 | 1.39 | % | 321,547 | 860 | 1.06 | % | |||||||||||
| Total interest-bearing deposits | 1,627,737 | 3,308 | 0.81 | % | 1,644,628 | 1,798 | 0.43 | % | |||||||||||
| Other borrowings | — | — | — | % | — | — | — | % | |||||||||||
| Total interest-bearing liabilities | 1,627,737 | $ | 3,308 | 0.81 | % | 1,644,628 | $ | 1,798 | 0.43 | % | |||||||||
| Noninterest-bearing liabilities: | |||||||||||||||||||
| Noninterest-bearing deposits | 1,145,920 | 1,173,387 | |||||||||||||||||
| Accrued interest and other liabilities | 20,686 | 17,756 | |||||||||||||||||
| Total noninterest-bearing liabilities | 1,166,606 | 1,191,143 | |||||||||||||||||
| Stockholders’ equity | 247,365 | 261,006 | |||||||||||||||||
| Total liabilities and stockholders’ equity | $ | 3,041,708 | $ | 3,096,777 | |||||||||||||||
| Net interest income | $ | 23,674 | $ | 23,088 | |||||||||||||||
| Net interest spread | 2.74 | % | 2.81 | % | |||||||||||||||
| Net interest margin | 3.11 | % | 3.00 | % | |||||||||||||||
| Net interest margin FTE(3) | 3.17 | % | 3.06 | % | |||||||||||||||
| Cost of deposits | 0.47 | % | 0.25 | % | |||||||||||||||
| Cost of funds | 0.44 | % | 0.24 | % | |||||||||||||||
(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 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, 2022 and September 30, 2022. | |||||||||||||||||||
| For the Three Months Ended | |||||||||||||||||||
| December 31, 2022 | September 30, 2022 | ||||||||||||||||||
| (dollars in thousands) | Average Balance Outstanding | Interest/Fees Earned | Average Yield | Average Balance Outstanding | Interest/Fees Earned | Average Yield | |||||||||||||
| Loans(1,2) | $ | 1,904,592 | $ | 21,284 | 4.38 | % | $ | 1,871,834 | $ | 19,740 | 4.13 | % | |||||||
| Less: PPP loans, net | |||||||||||||||||||
| Average | 770 | 1,350 | |||||||||||||||||
| Interest | 2 | 4 | |||||||||||||||||
| Fees | 28 | 2 | |||||||||||||||||
| Total PPP loans, net | 770 | 30 | 15.40 | % | 1,350 | 6 | 1.62 | % | |||||||||||
| Non-PPP loans (non-GAAP)(3) | $ | 1,903,822 | $ | 21,254 | 4.37 | % | $ | 1,870,484 | $ | 19,734 | 4.13 | % | |||||||
| Net interest income, excluding PPP loan income (non-GAAP) | |||||||||||||||||||
| Net interest income | $ | 23,674 | $ | 23,088 | |||||||||||||||
| PPP loan income | (30 | ) | (6 | ) | |||||||||||||||
| Net interest income, excluding PPP loan income (non-GAAP)(3) | $ | 23,644 | $ | 23,082 | |||||||||||||||
| Ratios excluding PPP loans, net (non-GAAP)(3) | |||||||||||||||||||
| Net interest spread | 2.74 | % | 2.81 | % | |||||||||||||||
| Net interest margin | 3.11 | % | 3.00 | % | |||||||||||||||
| Net interest margin FTE(4) | 3.16 | % | 3.06 | % | |||||||||||||||
(1) Includes average outstanding balances of loans held for sale of
(2) Nonaccrual loans are included as loans carrying a zero yield.
(3) Non-GAAP financial measure. Calculations of this measure and reconciliations to GAAP are included in the schedules accompanying this release.
(4) Net interest margin FTE includes an FTE adjustment using a
| RED RIVER BANCSHARES, INC. | |||||||||||||||||||
| NET INTEREST INCOME AND NET INTEREST MARGIN (UNAUDITED) | |||||||||||||||||||
| For the Year Ended December 31, | |||||||||||||||||||
| 2022 | 2021 | ||||||||||||||||||
| (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) | $ | 1,816,538 | $ | 75,827 | 4.12 | % | $ | 1,621,606 | $ | 67,923 | 4.14 | % | |||||||
| Securities - taxable | 637,239 | 9,524 | 1.49 | % | 344,913 | 4,493 | 1.30 | % | |||||||||||
| Securities - tax-exempt | 210,056 | 4,211 | 2.00 | % | 202,255 | 4,167 | 2.06 | % | |||||||||||
| Federal funds sold | 56,958 | 1,091 | 1.89 | % | 66,934 | 88 | 0.13 | % | |||||||||||
| Interest-bearing deposits in other banks | 329,096 | 3,682 | 1.11 | % | 552,501 | 658 | 0.12 | % | |||||||||||
| Nonmarketable equity securities | 3,453 | 40 | 1.16 | % | 3,448 | 10 | 0.28 | % | |||||||||||
| Total interest-earning assets | 3,053,340 | $ | 94,375 | 3.06 | % | 2,791,657 | $ | 77,339 | 2.74 | % | |||||||||
| Allowance for loan losses | (19,608 | ) | (19,155 | ) | |||||||||||||||
| Noninterest-earning assets | 100,543 | 132,611 | |||||||||||||||||
| Total assets | $ | 3,134,275 | $ | 2,905,113 | |||||||||||||||
| Liabilities and Stockholders’ Equity | |||||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||
| Interest-bearing transaction deposits | $ | 1,360,612 | $ | 4,071 | 0.30 | % | $ | 1,210,796 | $ | 1,648 | 0.14 | % | |||||||
| Time deposits | 329,480 | 3,665 | 1.11 | % | 341,746 | 3,969 | 1.16 | % | |||||||||||
| Total interest-bearing deposits | 1,690,092 | 7,736 | 0.46 | % | 1,552,542 | 5,617 | 0.36 | % | |||||||||||
| Other borrowings | — | — | — | % | — | — | — | % | |||||||||||
| Total interest-bearing liabilities | 1,690,092 | $ | 7,736 | 0.46 | % | 1,552,542 | $ | 5,617 | 0.36 | % | |||||||||
| Noninterest-bearing liabilities: | |||||||||||||||||||
| Noninterest-bearing deposits | 1,161,995 | 1,041,238 | |||||||||||||||||
| Accrued interest and other liabilities | 18,111 | 17,507 | |||||||||||||||||
| Total noninterest-bearing liabilities | 1,180,106 | 1,058,745 | |||||||||||||||||
| Stockholders’ equity | 264,077 | 293,826 | |||||||||||||||||
| Total liabilities and stockholders’ equity | $ | 3,134,275 | $ | 2,905,113 | |||||||||||||||
| Net interest income | $ | 86,639 | $ | 71,722 | |||||||||||||||
| Net interest spread | 2.60 | % | 2.38 | % | |||||||||||||||
| Net interest margin | 2.80 | % | 2.54 | % | |||||||||||||||
| Net interest margin FTE(3) | 2.86 | % | 2.60 | % | |||||||||||||||
| Cost of deposits | 0.27 | % | 0.22 | % | |||||||||||||||
| Cost of funds | 0.25 | % | 0.20 | % | |||||||||||||||
(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 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 years ended December 31, 2022 and 2021. | |||||||||||||||||||
| For the Year Ended December 31, | |||||||||||||||||||
| 2022 | 2021 | ||||||||||||||||||
| (dollars in thousands) | Average Balance Outstanding | Interest/Fees Earned | Average Yield | Average Balance Outstanding | Interest/Fees Earned | Average Yield | |||||||||||||
| Loans(1,2) | $ | 1,816,538 | $ | 75,827 | 4.12 | % | $ | 1,621,606 | $ | 67,923 | 4.14 | % | |||||||
| Less: PPP loans, net | |||||||||||||||||||
| Average | 4,309 | 77,222 | |||||||||||||||||
| Interest | 44 | 809 | |||||||||||||||||
| Fees | 626 | 4,964 | |||||||||||||||||
| Total PPP loans, net | 4,309 | 670 | 15.54 | % | 77,222 | 5,773 | 7.46 | % | |||||||||||
| Non-PPP loans (non-GAAP)(3) | $ | 1,812,229 | $ | 75,157 | 4.09 | % | $ | 1,544,384 | $ | 62,150 | 3.97 | % | |||||||
| Net interest income, excluding PPP loan income (non-GAAP) | |||||||||||||||||||
| Net interest income | $ | 86,639 | $ | 71,722 | |||||||||||||||
| PPP loan income | (670 | ) | (5,773 | ) | |||||||||||||||
| Net interest income, excluding PPP loan income (non-GAAP)(3) | $ | 85,969 | $ | 65,949 | |||||||||||||||
| Ratios excluding PPP loans, net (non-GAAP)(3) | |||||||||||||||||||
| Net interest spread | 2.58 | % | 2.25 | % | |||||||||||||||
| Net interest margin | 2.79 | % | 2.40 | % | |||||||||||||||
| Net interest margin FTE(4) | 2.84 | % | 2.46 | % | |||||||||||||||
(1) Includes average outstanding balances of loans held for sale of
(2) Nonaccrual loans are included as loans carrying a zero yield.
(3) Non-GAAP financial measure. Calculations of this measure and reconciliations to GAAP are included in the schedules accompanying this release.
(4) Net interest margin FTE includes an FTE adjustment using a
| RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED) | |||||||||||
| (dollars in thousands, except per share data) | December 31, 2022 | September 30, 2022 | December 31, 2021 | ||||||||
| Tangible common equity | |||||||||||
| Total stockholders’ equity | $ | 265,753 | $ | 243,413 | $ | 298,150 | |||||
| Adjustments: | |||||||||||
| Intangible assets | (1,546 | ) | (1,546 | ) | (1,546 | ) | |||||
| Total tangible common equity (non-GAAP) | $ | 264,207 | $ | 241,867 | $ | 296,604 | |||||
| Realized common equity | |||||||||||
| Total stockholders’ equity | $ | 265,753 | $ | 243,413 | $ | 298,150 | |||||
| Adjustments: | |||||||||||
| Accumulated other comprehensive (income) loss | 71,166 | 83,744 | 3,773 | ||||||||
| Total realized common equity (non-GAAP) | $ | 336,919 | $ | 327,157 | $ | 301,923 | |||||
| Common shares outstanding | 7,183,915 | 7,183,915 | 7,180,155 | ||||||||
| Book value per share | $ | 36.99 | $ | 33.88 | $ | 41.52 | |||||
| Tangible book value per share (non-GAAP) | $ | 36.78 | $ | 33.67 | $ | 41.31 | |||||
| Realized book value per share (non-GAAP) | $ | 46.90 | $ | 45.54 | $ | 42.05 | |||||
| Tangible assets | |||||||||||
| Total assets | $ | 3,082,686 | $ | 3,059,678 | $ | 3,224,710 | |||||
| Adjustments: | |||||||||||
| Intangible assets | (1,546 | ) | (1,546 | ) | (1,546 | ) | |||||
| Total tangible assets (non-GAAP) | $ | 3,081,140 | $ | 3,058,132 | $ | 3,223,164 | |||||
| Total stockholders’ equity to assets | 8.62 | % | 7.96 | % | 9.25 | % | |||||
| Tangible common equity to tangible assets (non-GAAP) | 8.57 | % | 7.91 | % | 9.20 | % | |||||
FAQ
What were Red River Bancshares' Q4 2022 earnings results?
How did Red River Bancshares perform in 2022?
What is the stock repurchase program for RRBI in 2023?
What were the asset totals for Red River Bancshares at the end of 2022?
What were the challenges faced by Red River Bancshares in 2022?
