Red River Bancshares, Inc. Reports Fourth Quarter and Year-End 2023 Financial Results
- Net income for Q4 increased by 3.4% compared to the previous quarter
- Full-year net income decreased by 5.5% compared to 2022
- Company's assets increased by 2.0% to $3.13B
- Stock repurchase program for 2024 was approved
- Net income for Q4 decreased by 18.6% compared to the same quarter in 2022
- Full-year net income decreased by 5.5% compared to 2022
Insights
The financial results for Red River Bancshares, Inc. reflect a mixed performance, with a marginal increase in net income for Q4 2023 compared to the previous quarter, but a notable year-over-year decline. The reported net income for the year shows a 5.5% decrease, which may raise concerns among investors regarding the bank's growth trajectory. However, the bank's balance sheet growth, with assets increasing by 2.0% and the rise in deposits suggest a solid foundation for future operations. The increase in net interest margin (NIM) from 2.78% to 2.82% indicates an improved earning potential from the bank's lending and investment activities, which is a positive signal for profitability.
The bank's liquidity position seems robust, with a healthy liquid assets to assets ratio and a diversified set of liquidity sources. This financial stability is crucial for navigating uncertain economic environments and may reassure investors of the bank's ability to meet short-term obligations. The completion of the 2023 stock repurchase program and the announcement of a new program for 2024 demonstrate a commitment to shareholder returns and confidence in the bank's capital position.
Overall, despite the decrease in net income for the year, the bank's operational highlights and liquidity strategy may provide a cushion against market volatility and could be seen as a stabilizing factor for the stock. Investors should keep an eye on future FOMC decisions, as changes in the federal funds rate could impact the bank's interest income and expense dynamics, potentially affecting its NIM and overall profitability.
The banking sector has been facing headwinds from fluctuating interest rates and economic uncertainties. Red River Bancshares, Inc.'s performance reflects these challenges with a decline in annual net income. However, the bank's strategic moves, such as the expansion of loan activities across Louisiana and the planned opening of a new banking center, indicate an aggressive approach to capturing market share. Such expansion can be a double-edged sword, potentially increasing revenue but also exposing the bank to greater risk, especially in an uncertain economic climate.
The bank's inclusion in the '2023 Best Banks to Work For' ranking by American Banker publication may indirectly contribute to its operational success by potentially attracting and retaining talent, which is critical for customer service and innovative financial solutions. While this accolade does not directly impact financial performance, it can enhance the bank's reputation and competitive position in the industry.
Investors should monitor the bank's ability to manage its loan portfolio effectively, especially considering the recent adoption of the CECL methodology for estimating credit losses. The bank's asset quality, indicated by a low percentage of nonperforming assets, is a positive sign, but the actual impact of the CECL methodology on the bank's financials will be important to watch in the coming quarters.
The banking industry is sensitive to macroeconomic factors and Red River Bancshares, Inc.'s financial results must be contextualized within the broader economic environment, including inflationary pressures and monetary policy changes. The marginal increase in quarterly net income and net interest margin suggests that the bank has navigated the interest rate hikes by the FOMC relatively well, benefiting from higher yields on securities and loans. The bank's proactive management of its securities portfolio and anticipation of federal funds rate adjustments in 2024 could position it to take advantage of potential decreases in borrowing costs.
However, the decrease in annual net income highlights the importance of closely monitoring economic indicators and consumer behavior, as these will influence loan demand and repayment capabilities. The bank's future performance will likely depend on its ability to adapt to changing economic conditions, including any shifts in the housing market that could affect mortgage loan income.
Given the bank's solid liquidity and capitalization, it appears well-equipped to handle short-term economic fluctuations. Long-term success, however, will hinge on the bank's strategic initiatives, such as geographic expansion and investment in new banking centers, aligning with economic growth patterns and the competitive landscape.
ALEXANDRIA, La., Jan. 30, 2024 (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 2023.
Net income for the fourth quarter of 2023 was
Net income for the year ended December 31, 2023, was
Fourth Quarter and Year-End 2023 Performance and Operational Highlights
In the fourth quarter of 2023, the Company had higher earnings and an improved net interest margin, combined with balance sheet growth. Stock repurchase activity occurred until the 2023 stock repurchase program was completed. A stock repurchase program for 2024 was approved.
- Net income for the fourth quarter of 2023 was
$8.3 million , which was$271,000 , or3.4% , higher than the prior quarter. Net income improved due to higher net interest income and lower operating expenses, partially offset by lower noninterest income. - Net interest income and net interest margin fully tax equivalent (“FTE”) increased in the fourth quarter of 2023 compared to the prior quarter. Net interest income for the fourth quarter of 2023 was
$21.3 million compared to$20.7 million for the prior quarter. Net interest margin FTE for the fourth quarter of 2023 was2.82% compared to2.78% for the prior quarter. These increases were mainly due to improved yields on securities and loans, partially offset by higher deposit costs. - As of December 31, 2023, assets were
$3.13 billion , which was$62.7 million , or2.0% , higher than September 30, 2023, mainly due to a$42.0 million increase in deposits. - Deposits totaled
$2.80 billion as of December 31, 2023, an increase of$42.0 million , or1.5% , compared to$2.76 billion as of September 30, 2023. This increase was mainly due to the seasonal inflow of funds from public entity customers. - As of December 31, 2023, loans held for investment (“HFI”) were
$1.99 billion , an increase of$44.3 million , or2.3% , compared to$1.95 billion as of September 30, 2023. The growth in loans HFI was primarily a result of new loan activity in various markets across Louisiana. - As of December 31, 2023, total securities were
$714.3 million compared to$675.3 million as of September 30, 2023. Securities increased$39.0 million , primarily due to the purchase of new securities, combined with a smaller net unrealized loss on securities available-for-sale (“AFS”). - In the fourth quarter of 2023, average liquid assets, which are cash and cash equivalents, increased
$35.1 million to$281.3 million , compared to$246.2 million for the third quarter of 2023. The liquid assets to assets ratio was9.76% as of December 31, 2023. - The current expected credit loss (“CECL”) methodology became effective for the Company on January 1, 2023. Provision expense was
$250,000 for the fourth quarter of 2023 compared to$185,000 for the third quarter of 2023. - As of December 31, 2023, nonperforming assets (“NPA(s)”) were
$2.6 million , or0.08% of assets, and the allowance for credit losses (“ACL”) was$21.3 million , or1.07% of loans HFI. - We paid a quarterly cash dividend of
$0.08 per common share in the fourth quarter of 2023. - The 2023 stock repurchase program authorized us to purchase up to
$5.0 million of our outstanding shares of common stock from January 1, 2023 through December 31, 2023. In the fourth quarter of 2023, we repurchased 59,048 shares of our common stock at an aggregate cost of$2.9 million and completed the program. During 2023, we repurchased 101,298 shares of our common stock at an aggregate cost of$5.0 million . On December 14, 2023, our Board of Directors approved the renewal of our stock repurchase program for 2024. The 2024 stock repurchase program authorizes us to purchase up to$5.0 million of our outstanding shares of common stock from January 1, 2024 through December 31, 2024. - Recently, the American Banker publication included Red River Bank in its “2023 Best Banks to Work For” ranking.
Blake Chatelain, President and Chief Executive Officer of the Company, stated, “We are pleased with the financial results for the fourth quarter of 2023, which included net interest margin improvement, solid loan activity, and core deposit growth. Net interest margin and net interest income improved as new and renewed loans were booked at higher rates, and we redeployed security portfolio cash flows into higher yielding securities. We expect the fourth quarter loan and securities activity and rates to provide momentum to the net interest margin as we begin 2024.
“We had significant stock buyback activity in the fourth quarter of 2023, completing the 2023 stock repurchase program, and the board of directors approved a
“Overall, banking activity throughout all of our markets is steady and encouraging. We are pleased with the progress of the construction on our new banking center located on Veterans Boulevard in Metairie, Louisiana, which is in our New Orleans market. We expect this banking center to open in the third quarter of 2024.
“At our January 2024 board of directors meeting, Michael J. Brown, CFA, was appointed as a new board member. We are very pleased to welcome Michael, who brings a wealth of experience in all areas of banking operations and strategy. I had the privilege of working with Michael earlier in our careers when we both worked at First Commerce, and it is a pleasure to have the opportunity to work with him again. Michael’s deep industry knowledge will be an invaluable benefit to the Company.
“The fourth quarter of 2023 wrapped up a uniquely challenging year for the banking industry. Our team took care of our customers, prudently managed the Company, and achieved solid financial results. We believe we are well-positioned for future years. The Company is well-capitalized, has good liquidity levels, excellent asset quality, solid earnings, and knowledgeable community bankers providing banking services to our communities. We look forward to 2024 as we continue to grow and build value for our shareholders.”
Liquidity
As of December 31, 2023, we had sufficient liquid assets available and
Cash and cash equivalents were
Our securities portfolio is an alternative source for meeting liquidity needs. The securities portfolio generates cash flow through principal repayments, calls, and maturities, and certain securities can be sold or used as collateral in borrowings that allow for their conversion to cash. Securities AFS can generally be sold, while securities held-to-maturity (“HTM”) have significant restrictions related to sales. As of December 31, 2023, we project receipt of approximately
Federal Home Loan Bank (“FHLB”) advances may also be used to meet the Bank’s liquidity needs. We currently are classified as having “blanket lien collateral status,” which means that advances can be executed at any time without further collateral requirements. As of December 31, 2023, our net borrowing capacity from the FHLB was
In the third quarter of 2023, the Bank pledged securities to gain borrowing access to the Federal Reserve Bank’s Discount Window facility. As of December 31, 2023, our borrowing capacity through this facility was
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
The Bank can participate in the Federal Reserve Board’s Bank Term Funding Program (“BTFP”) as an additional liquidity source through March 11, 2024, when the program is scheduled to end. If needed, the BTFP gives us the option to use eligible securities as collateral for a loan of up to one year from the Federal Reserve.
Net Interest Income and Net Interest Margin FTE
Net interest income and net interest margin FTE increased in the fourth quarter of 2023 compared to the prior quarter. These increases were mainly due to improved yields on securities and loans, partially offset by higher deposit costs. During the year ended December 31, 2023, the Federal Open Market Committee (“FOMC”) increased the federal funds rate 50 basis points (“bp(s)”) in the first quarter, 25 bps in the second quarter, 25 bps in the third quarter, and then kept the rate consistent in the fourth quarter.
Net interest income for the fourth quarter of 2023 was
The net interest margin FTE increased four bps to
In the fourth quarter of 2023, the target range for the federal funds rate was 5.25
Provision for Credit Losses
The provision for credit losses for the fourth quarter of 2023 was
Noninterest Income
Noninterest income totaled
SBIC income for the fourth quarter of 2023 was
Mortgage loan income decreased
Equity securities are an investment in a Community Reinvestment Act (“CRA”) mutual fund consisting primarily of bonds. The gain or loss on equity securities is a fair value adjustment primarily driven by changes in the interest rate environment. Due to fluctuations in market rates between quarters, equity securities had a gain of
Operating Expenses
Operating expenses for the fourth quarter of 2023 totaled
Personnel expenses totaled
Occupancy and equipment expenses for the fourth quarter of 2023 totaled
Asset Overview
As of December 31, 2023, assets were
Securities
Total securities as of December 31, 2023, were
The estimated fair value of securities AFS totaled
As of December 31, 2023, equity securities, which is an investment in a CRA mutual fund consisting primarily of bonds, totaled
Loans
Loans HFI as of December 31, 2023, were
| Loans HFI by Category | |||||||||||||||||||||||
| December 31, 2023 | September 30, 2023 | Change from September 30, 2023 to December 31, 2023 | |||||||||||||||||||||
| (dollars in thousands) | Amount | Percent | Amount | Percent | $ Change | % Change | |||||||||||||||||
| Real estate: | |||||||||||||||||||||||
| Commercial real estate | $ | 851,582 | 42.7 | % | $ | 829,836 | 42.6 | % | $ | 21,746 | 2.6 | % | |||||||||||
| One-to-four family residential | 599,487 | 30.1 | % | 579,023 | 29.7 | % | 20,464 | 3.5 | % | ||||||||||||||
| Construction and development | 125,238 | 6.3 | % | 119,647 | 6.1 | % | 5,591 | 4.7 | % | ||||||||||||||
| Commercial and industrial | 315,327 | 15.8 | % | 315,398 | 16.2 | % | (71 | ) | — | % | |||||||||||||
| Tax-exempt | 72,913 | 3.7 | % | 74,703 | 3.9 | % | (1,790 | ) | (2.4 | %) | |||||||||||||
| Consumer | 28,311 | 1.4 | % | 29,999 | 1.5 | % | (1,688 | ) | (5.6 | %) | |||||||||||||
| Total loans HFI | $ | 1,992,858 | 100.0 | % | $ | 1,948,606 | 100.0 | % | $ | 44,252 | 2.3 | % | |||||||||||
Commercial real estate (“CRE”) loans are collateralized by owner occupied and non-owner occupied properties mainly in Louisiana. Investor-owned office properties were
Health care loans are our largest industry concentration and are made up of a diversified portfolio of health care providers. As of December 31, 2023, total health care loans were
Asset Quality and Allowance for Credit Losses
NPAs totaled
Effective January 1, 2023, the Company adopted the CECL methodology for estimating credit losses. In the first quarter of 2023, CECL resulted in a
As of December 31, 2023, the ACL was
Deposits
As of December 31, 2023, deposits were
The following tables provide details on our deposit portfolio:
| Deposits by Account Type | |||||||||||||||||||||||
| December 31, 2023 | September 30, 2023 | Change from September 30, 2023 to December 31, 2023 | |||||||||||||||||||||
| (dollars in thousands) | Balance | % of Total | Balance | % of Total | $ Change | % Change | |||||||||||||||||
| Noninterest-bearing demand deposits | $ | 916,456 | 32.7 | % | $ | 972,155 | 35.2 | % | $ | (55,699 | ) | (5.7 | %) | ||||||||||
| Interest-bearing deposits: | |||||||||||||||||||||||
| Interest-bearing demand deposits | 138,380 | 5.0 | % | 145,764 | 5.3 | % | (7,384 | ) | (5.1 | %) | |||||||||||||
| NOW accounts | 468,483 | 16.7 | % | 382,047 | 13.8 | % | 86,436 | 22.6 | % | ||||||||||||||
| Money market accounts | 541,607 | 19.3 | % | 531,740 | 19.3 | % | 9,867 | 1.9 | % | ||||||||||||||
| Savings accounts | 173,741 | 6.2 | % | 178,933 | 6.5 | % | (5,192 | ) | (2.9 | %) | |||||||||||||
| Time deposits less than or equal to | 392,094 | 14.0 | % | 380,564 | 13.8 | % | 11,530 | 3.0 | % | ||||||||||||||
| Time deposits greater than | 171,127 | 6.1 | % | 168,690 | 6.1 | % | 2,437 | 1.4 | % | ||||||||||||||
| Total interest-bearing deposits | 1,885,432 | 67.3 | % | 1,787,738 | 64.8 | % | 97,694 | 5.5 | % | ||||||||||||||
| Total deposits | $ | 2,801,888 | 100.0 | % | $ | 2,759,893 | 100.0 | % | $ | 41,995 | 1.5 | % | |||||||||||
| Deposits by Customer Type | |||||||||||||||||||||||
| December 31, 2023 | September 30, 2023 | Change from September 30, 2023 to December 31, 2023 | |||||||||||||||||||||
| (dollars in thousands) | Balance | % of Total | Balance | % of Total | $ Change | % Change | |||||||||||||||||
| Consumer | $ | 1,343,448 | 47.9 | % | $ | 1,310,580 | 47.5 | % | $ | 32,868 | 2.5 | % | |||||||||||
| Commercial | 1,170,670 | 41.8 | % | 1,241,213 | 45.0 | % | (70,543 | ) | (5.7 | %) | |||||||||||||
| Public | 287,770 | 10.3 | % | 208,100 | 7.5 | % | 79,670 | 38.3 | % | ||||||||||||||
| Total deposits | $ | 2,801,888 | 100.0 | % | $ | 2,759,893 | 100.0 | % | $ | 41,995 | 1.5 | % | |||||||||||
The increase in deposits in the fourth quarter of 2023 was mainly due to the seasonal inflow of funds from public entity customers and an increase in new consumer interest-bearing accounts, partially offset by a decrease in commercial customer deposit balances related to normal business activity.
The Bank has a granular, diverse deposit portfolio with customers in a variety of industries throughout Louisiana. As of December 31, 2023, the average deposit account size was approximately
In 2022, we implemented the IntraFi Network Insured Cash Sweep (“ICS”) and related reciprocal balance programs for qualified commercial customers. The ICS program provides our customers a demand deposit sweep account that has a competitive interest rate as well as full Federal Deposit Insurance Corporation (“FDIC”) insurance coverage. As of December 31, 2023, we had
As of December 31, 2023, our estimated uninsured deposits, which are the portion of deposit accounts that exceed the FDIC insurance limit (currently
Stockholders’ Equity
Total stockholders’ equity as of December 31, 2023, 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’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, CGMA
Executive Vice President, Chief Financial Officer, and Assistant Corporate Secretary
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, 2023 | September 30, 2023 | December 31, 2022 | December 31, 2023 | December 31, 2022 | ||||||||||||||
| Net Income | $ | 8,292 | $ | 8,021 | $ | 10,191 | $ | 34,879 | $ | 36,916 | |||||||||
| Per Common Share Data: | |||||||||||||||||||
| Earnings per share, basic | $ | 1.16 | $ | 1.12 | $ | 1.42 | $ | 4.87 | $ | 5.14 | |||||||||
| Earnings per share, diluted | $ | 1.16 | $ | 1.12 | $ | 1.42 | $ | 4.86 | $ | 5.13 | |||||||||
| Book value per share | $ | 42.85 | $ | 39.43 | $ | 36.99 | $ | 42.85 | $ | 36.99 | |||||||||
| Tangible book value per share(1) | $ | 42.63 | $ | 39.21 | $ | 36.78 | $ | 42.63 | $ | 36.78 | |||||||||
| Realized book value per share(1) | $ | 51.38 | $ | 50.27 | $ | 46.90 | $ | 51.38 | $ | 46.90 | |||||||||
| Cash dividends per share | $ | 0.08 | $ | 0.08 | $ | 0.07 | $ | 0.32 | $ | 0.28 | |||||||||
| Shares outstanding | 7,091,637 | 7,150,685 | 7,183,915 | 7,091,637 | 7,183,915 | ||||||||||||||
| Weighted average shares outstanding, basic | 7,128,988 | 7,168,413 | 7,183,915 | 7,164,314 | 7,180,975 | ||||||||||||||
| Weighted average shares outstanding, diluted | 7,145,870 | 7,180,084 | 7,199,247 | 7,181,728 | 7,197,453 | ||||||||||||||
| Summary Performance Ratios: | |||||||||||||||||||
| Return on average assets | 1.08 | % | 1.05 | % | 1.33 | % | 1.15 | % | 1.18 | % | |||||||||
| Return on average equity | 11.63 | % | 11.15 | % | 16.34 | % | 12.44 | % | 13.98 | % | |||||||||
| Net interest margin | 2.78 | % | 2.74 | % | 3.11 | % | 2.87 | % | 2.80 | % | |||||||||
| Net interest margin FTE | 2.82 | % | 2.78 | % | 3.17 | % | 2.91 | % | 2.86 | % | |||||||||
| Efficiency ratio | 60.51 | % | 61.70 | % | 54.76 | % | 59.39 | % | 56.60 | % | |||||||||
| Loans HFI to deposits ratio | 71.13 | % | 70.60 | % | 68.46 | % | 71.13 | % | 68.46 | % | |||||||||
| Noninterest-bearing deposits to deposits ratio | 32.71 | % | 35.22 | % | 38.96 | % | 32.71 | % | 38.96 | % | |||||||||
| Noninterest income to average assets | 0.67 | % | 0.73 | % | 0.60 | % | 0.70 | % | 0.60 | % | |||||||||
| Operating expense to average assets | 2.08 | % | 2.13 | % | 1.97 | % | 2.11 | % | 1.87 | % | |||||||||
| Summary Credit Quality Ratios: | |||||||||||||||||||
| Nonperforming assets to assets | 0.08 | % | 0.07 | % | 0.08 | % | 0.08 | % | 0.08 | % | |||||||||
| Nonperforming loans to loans HFI | 0.13 | % | 0.10 | % | 0.12 | % | 0.13 | % | 0.12 | % | |||||||||
| Allowance for credit losses to loans HFI | 1.07 | % | 1.09 | % | 1.08 | % | 1.07 | % | 1.08 | % | |||||||||
| Net charge-offs to average loans | 0.01 | % | 0.00 | % | 0.00 | % | 0.02 | % | 0.02 | % | |||||||||
| Capital Ratios: | |||||||||||||||||||
| Stockholders’ equity to assets | 9.71 | % | 9.20 | % | 8.62 | % | 9.71 | % | 8.62 | % | |||||||||
| Tangible common equity to tangible assets (1) | 9.67 | % | 9.15 | % | 8.57 | % | 9.67 | % | 8.57 | % | |||||||||
| Total risk-based capital to risk-weighted assets | 18.28 | % | 18.35 | % | 17.39 | % | 18.28 | % | 17.39 | % | |||||||||
| Tier 1 risk-based capital to risk-weighted assets | 17.24 | % | 17.31 | % | 16.38 | % | 17.24 | % | 16.38 | % | |||||||||
| Common equity Tier 1 capital to risk-weighted assets | 17.24 | % | 17.31 | % | 16.38 | % | 17.24 | % | 16.38 | % | |||||||||
| Tier 1 risk-based capital to average assets | 11.56 | % | 11.56 | % | 11.37 | % | 11.56 | % | 11.37 | % | |||||||||
| (1) | Non-GAAP financial measure. Calculations of this measure and reconciliations to GAAP are included in the schedules accompanying this release. |
| RED RIVER BANCSHARES, INC. | |||||||||||||||||||
| CONSOLIDATED BALANCE SHEETS (UNAUDITED) | |||||||||||||||||||
| (in thousands) | December 31, 2023 | September 30, 2023 | June 30, 2023 | March 31, 2023 | December 31, 2022 | ||||||||||||||
| ASSETS | |||||||||||||||||||
| Cash and due from banks | $ | 53,062 | $ | 42,413 | $ | 36,662 | $ | 34,491 | $ | 37,824 | |||||||||
| Interest-bearing deposits in other banks | 252,364 | 279,786 | 185,409 | 194,727 | 240,568 | ||||||||||||||
| Securities available-for-sale, at fair value | 570,092 | 529,046 | 588,478 | 611,794 | 614,407 | ||||||||||||||
| Securities held-to-maturity, at amortized cost | 141,236 | 143,420 | 146,569 | 149,417 | 151,683 | ||||||||||||||
| Equity securities, at fair value | 2,965 | 2,833 | 3,946 | 4,010 | 9,979 | ||||||||||||||
| Nonmarketable equity securities | 2,239 | 2,190 | 4,330 | 3,506 | 3,478 | ||||||||||||||
| Loans held for sale | 1,306 | 2,348 | 4,586 | 2,046 | 518 | ||||||||||||||
| Loans held for investment | 1,992,858 | 1,948,606 | 1,947,631 | 1,921,850 | 1,916,267 | ||||||||||||||
| Allowance for credit losses | (21,336 | ) | (21,183 | ) | (21,085 | ) | (20,854 | ) | (20,628 | ) | |||||||||
| Premises and equipment, net | 57,088 | 56,466 | 55,566 | 55,065 | 54,383 | ||||||||||||||
| Accrued interest receivable | 9,945 | 8,778 | 8,239 | 8,397 | 8,830 | ||||||||||||||
| Bank-owned life insurance | 29,529 | 29,332 | 29,141 | 28,954 | 28,775 | ||||||||||||||
| Intangible assets | 1,546 | 1,546 | 1,546 | 1,546 | 1,546 | ||||||||||||||
| Right-of-use assets | 3,629 | 3,757 | 3,885 | 4,011 | 4,137 | ||||||||||||||
| Other assets | 32,287 | 36,815 | 32,291 | 31,622 | 30,919 | ||||||||||||||
| Total Assets | $ | 3,128,810 | $ | 3,066,153 | $ | 3,027,194 | $ | 3,030,582 | $ | 3,082,686 | |||||||||
| LIABILITIES | |||||||||||||||||||
| Noninterest-bearing deposits | $ | 916,456 | $ | 972,155 | $ | 989,509 | $ | 1,060,042 | $ | 1,090,539 | |||||||||
| Interest-bearing deposits | 1,885,432 | 1,787,738 | 1,674,674 | 1,671,343 | 1,708,397 | ||||||||||||||
| Total Deposits | 2,801,888 | 2,759,893 | 2,664,183 | 2,731,385 | 2,798,936 | ||||||||||||||
| Other borrowed funds | — | — | 60,000 | — | — | ||||||||||||||
| Accrued interest payable | 8,000 | 6,800 | 4,098 | 2,433 | 1,563 | ||||||||||||||
| Lease liabilities | 3,767 | 3,892 | 4,015 | 4,136 | 4,258 | ||||||||||||||
| Accrued expenses and other liabilities | 11,304 | 13,617 | 11,526 | 15,988 | 12,176 | ||||||||||||||
| Total Liabilities | 2,824,959 | 2,784,202 | 2,743,822 | 2,753,942 | 2,816,933 | ||||||||||||||
| COMMITMENTS AND CONTINGENCIES | — | — | — | — | — | ||||||||||||||
| STOCKHOLDERS’ EQUITY | |||||||||||||||||||
| Preferred stock, no par value | — | — | — | — | — | ||||||||||||||
| Common stock, no par value | 55,136 | 58,031 | 59,187 | 59,788 | 60,050 | ||||||||||||||
| Additional paid-in capital | 2,407 | 2,327 | 2,248 | 2,157 | 2,088 | ||||||||||||||
| Retained earnings | 306,802 | 299,079 | 291,630 | 283,236 | 274,781 | ||||||||||||||
| Accumulated other comprehensive income (loss) | (60,494 | ) | (77,486 | ) | (69,693 | ) | (68,541 | ) | (71,166 | ) | |||||||||
| Total Stockholders’ Equity | 303,851 | 281,951 | 283,372 | 276,640 | 265,753 | ||||||||||||||
| Total Liabilities and Stockholders’ Equity | $ | 3,128,810 | $ | 3,066,153 | $ | 3,027,194 | $ | 3,030,582 | $ | 3,082,686 | |||||||||
| RED RIVER BANCSHARES, INC. | |||||||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) | |||||||||||||||||||
| For the Three Months Ended | For the Year Ended | ||||||||||||||||||
| (in thousands) | December 31, 2023 | September 30, 2023 | December 31, 2022 | December 31, 2023 | December 31, 2022 | ||||||||||||||
| INTEREST AND DIVIDEND INCOME | |||||||||||||||||||
| Interest and fees on loans | $ | 24,898 | $ | 23,925 | $ | 21,284 | $ | 93,439 | $ | 75,827 | |||||||||
| Interest on securities | 3,656 | 3,404 | 3,524 | 14,291 | 13,735 | ||||||||||||||
| Interest on federal funds sold | — | — | 634 | 886 | 1,091 | ||||||||||||||
| Interest on deposits in other banks | 3,438 | 2,950 | 1,522 | 9,797 | 3,682 | ||||||||||||||
| Dividends on stock | 49 | 45 | 18 | 155 | 40 | ||||||||||||||
| Total Interest and Dividend Income | 32,041 | 30,324 | 26,982 | 118,568 | 94,375 | ||||||||||||||
| INTEREST EXPENSE | |||||||||||||||||||
| Interest on deposits | 10,747 | 9,562 | 3,308 | 32,066 | 7,736 | ||||||||||||||
| Interest on other borrowed funds | — | 37 | — | 64 | — | ||||||||||||||
| Total Interest Expense | 10,747 | 9,599 | 3,308 | 32,130 | 7,736 | ||||||||||||||
| Net Interest Income | 21,294 | 20,725 | 23,674 | 86,438 | 86,639 | ||||||||||||||
| Provision for credit losses | 250 | 185 | 750 | 735 | 1,750 | ||||||||||||||
| Net Interest Income After Provision for Credit Losses | 21,044 | 20,540 | 22,924 | 85,703 | 84,889 | ||||||||||||||
| NONINTEREST INCOME | |||||||||||||||||||
| Service charges on deposit accounts | 1,459 | 1,489 | 1,359 | 5,776 | 5,565 | ||||||||||||||
| Debit card income, net | 875 | 830 | 972 | 3,563 | 3,897 | ||||||||||||||
| Mortgage loan income | 441 | 604 | 453 | 1,965 | 3,096 | ||||||||||||||
| Brokerage income | 1,039 | 1,029 | 1,013 | 3,798 | 3,549 | ||||||||||||||
| Loan and deposit income | 575 | 571 | 440 | 2,140 | 1,723 | ||||||||||||||
| Bank-owned life insurance income | 197 | 191 | 180 | 754 | 713 | ||||||||||||||
| Gain (Loss) on equity securities | 132 | (113 | ) | (21 | ) | (14 | ) | (468 | ) | ||||||||||
| Gain (Loss) on sale and call of securities | — | — | — | — | (59 | ) | |||||||||||||
| SBIC income | 393 | 920 | 162 | 2,873 | 563 | ||||||||||||||
| Other income (loss) | 76 | 60 | 61 | 259 | 168 | ||||||||||||||
| Total Noninterest Income | 5,187 | 5,581 | 4,619 | 21,114 | 18,747 | ||||||||||||||
| OPERATING EXPENSES | |||||||||||||||||||
| Personnel expenses | 9,233 | 9,461 | 8,681 | 37,241 | 34,560 | ||||||||||||||
| Occupancy and equipment expenses | 1,647 | 1,663 | 1,613 | 6,581 | 6,109 | ||||||||||||||
| Technology expenses | 693 | 675 | 645 | 2,759 | 2,763 | ||||||||||||||
| Advertising | 347 | 331 | 293 | 1,302 | 1,134 | ||||||||||||||
| Other business development expenses | 537 | 522 | 566 | 1,987 | 1,645 | ||||||||||||||
| Data processing expense | 631 | 651 | 609 | 2,320 | 2,093 | ||||||||||||||
| Other taxes | 679 | 664 | 781 | 2,721 | 2,714 | ||||||||||||||
| Loan and deposit expenses | 256 | 238 | 180 | 984 | 659 | ||||||||||||||
| Legal and professional expenses | 664 | 616 | 550 | 2,378 | 1,997 | ||||||||||||||
| Regulatory assessment expenses | 423 | 419 | 277 | 1,645 | 1,058 | ||||||||||||||
| Other operating expenses | 913 | 990 | 887 | 3,955 | 3,923 | ||||||||||||||
| Total Operating Expenses | 16,023 | 16,230 | 15,082 | 63,873 | 58,655 | ||||||||||||||
| Income Before Income Tax Expense | 10,208 | 9,891 | 12,461 | 42,944 | 44,981 | ||||||||||||||
| Income tax expense | 1,916 | 1,870 | 2,270 | 8,065 | 8,065 | ||||||||||||||
| Net Income | $ | 8,292 | $ | 8,021 | $ | 10,191 | $ | 34,879 | $ | 36,916 | |||||||||
| RED RIVER BANCSHARES, INC. | |||||||||||||||||||||||
| NET INTEREST INCOME AND NET INTEREST MARGIN (UNAUDITED) | |||||||||||||||||||||||
| For the Three Months Ended | |||||||||||||||||||||||
| December 31, 2023 | September 30, 2023 | ||||||||||||||||||||||
| (dollars in thousands) | Average Balance Outstanding | Interest Income/Expense | Average Yield/ Rate | Average Balance Outstanding | Interest Income/Expense | Average Yield/ Rate | |||||||||||||||||
| Assets | |||||||||||||||||||||||
| Interest-earning assets: | |||||||||||||||||||||||
| Loans(1,2) | $ | 1,973,513 | $ | 24,898 | 4.94 | % | $ | 1,947,794 | $ | 23,925 | 4.81 | % | |||||||||||
| Securities - taxable | 568,147 | 2,634 | 1.85 | % | 584,319 | 2,374 | 1.62 | % | |||||||||||||||
| Securities - tax-exempt | 199,480 | 1,022 | 2.05 | % | 201,569 | 1,030 | 2.04 | % | |||||||||||||||
| Interest-bearing deposits in other banks | 250,483 | 3,438 | 5.41 | % | 215,920 | 2,950 | 5.38 | % | |||||||||||||||
| Nonmarketable equity securities | 2,192 | 49 | 8.95 | % | 4,213 | 45 | 4.23 | % | |||||||||||||||
| Total interest-earning assets | 2,993,815 | $ | 32,041 | 4.20 | % | 2,953,815 | $ | 30,324 | 4.03 | % | |||||||||||||
| Allowance for credit losses | (21,158 | ) | (21,050 | ) | |||||||||||||||||||
| Noninterest-earning assets | 82,225 | 87,545 | |||||||||||||||||||||
| Total assets | $ | 3,054,882 | $ | 3,020,310 | |||||||||||||||||||
| Liabilities and Stockholders’ Equity | |||||||||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||||
| Interest-bearing transaction deposits | $ | 1,219,766 | $ | 5,430 | 1.77 | % | $ | 1,212,226 | $ | 5,083 | 1.66 | % | |||||||||||
| Time deposits | 556,815 | 5,317 | 3.79 | % | 523,274 | 4,479 | 3.40 | % | |||||||||||||||
| Total interest-bearing deposits | 1,776,581 | 10,747 | 2.40 | % | 1,735,500 | 9,562 | 2.19 | % | |||||||||||||||
| Other borrowings | — | — | — | % | 2,609 | 37 | 5.49 | % | |||||||||||||||
| Total interest-bearing liabilities | 1,776,581 | $ | 10,747 | 2.40 | % | 1,738,109 | $ | 9,599 | 2.19 | % | |||||||||||||
| Noninterest-bearing liabilities: | |||||||||||||||||||||||
| Noninterest-bearing deposits | 968,715 | 973,723 | |||||||||||||||||||||
| Accrued interest and other liabilities | 26,637 | 22,992 | |||||||||||||||||||||
| Total noninterest-bearing liabilities | 995,352 | 996,715 | |||||||||||||||||||||
| Stockholders’ equity | 282,949 | 285,486 | |||||||||||||||||||||
| Total liabilities and stockholders’ equity | $ | 3,054,882 | $ | 3,020,310 | |||||||||||||||||||
| Net interest income | $ | 21,294 | $ | 20,725 | |||||||||||||||||||
| Net interest spread | 1.80 | % | 1.84 | % | |||||||||||||||||||
| Net interest margin | 2.78 | % | 2.74 | % | |||||||||||||||||||
| Net interest margin FTE(3) | 2.82 | % | 2.78 | % | |||||||||||||||||||
| Cost of deposits | 1.55 | % | 1.40 | % | |||||||||||||||||||
| Cost of funds | 1.42 | % | 1.29 | % | |||||||||||||||||||
| (1) | Includes average outstanding balances of loans held for sale of |
| (2) | 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. | |||||||||||||||||||||||
| NET INTEREST INCOME AND NET INTEREST MARGIN (UNAUDITED) | |||||||||||||||||||||||
| For the Year Ended December 31, | |||||||||||||||||||||||
| 2023 | 2022 | ||||||||||||||||||||||
| (dollars in thousands) | Average Balance Outstanding | Interest Income/Expense | Average Yield/ Rate | Average Balance Outstanding | Interest Income/Expense | Average Yield/ Rate | |||||||||||||||||
| Assets | |||||||||||||||||||||||
| Interest-earning assets: | |||||||||||||||||||||||
| Loans(1,2) | $ | 1,943,381 | $ | 93,439 | 4.74 | % | $ | 1,816,538 | $ | 75,827 | 4.12 | % | |||||||||||
| Securities - taxable | 605,692 | 10,169 | 1.68 | % | 637,239 | 9,524 | 1.49 | % | |||||||||||||||
| Securities - tax-exempt | 202,673 | 4,122 | 2.03 | % | 210,056 | 4,211 | 2.00 | % | |||||||||||||||
| Federal funds sold | 18,594 | 886 | 4.70 | % | 56,958 | 1,091 | 1.89 | % | |||||||||||||||
| Interest-bearing deposits in other banks | 188,199 | 9,797 | 5.17 | % | 329,096 | 3,682 | 1.11 | % | |||||||||||||||
| Nonmarketable equity securities | 3,353 | 155 | 4.61 | % | 3,453 | 40 | 1.16 | % | |||||||||||||||
| Total interest-earning assets | 2,961,892 | $ | 118,568 | 3.96 | % | 3,053,340 | $ | 94,375 | 3.06 | % | |||||||||||||
| Allowance for credit losses | (20,980 | ) | (19,608 | ) | |||||||||||||||||||
| Noninterest-earning assets | 86,939 | 100,543 | |||||||||||||||||||||
| Total assets | $ | 3,027,851 | $ | 3,134,275 | |||||||||||||||||||
| Liabilities and Stockholders’ Equity | |||||||||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||||
| Interest-bearing transaction deposits | $ | 1,249,259 | $ | 17,555 | 1.41 | % | $ | 1,360,612 | $ | 4,071 | 0.30 | % | |||||||||||
| Time deposits | 470,522 | 14,511 | 3.08 | % | 329,480 | 3,665 | 1.11 | % | |||||||||||||||
| Total interest-bearing deposits | 1,719,781 | 32,066 | 1.86 | % | 1,690,092 | 7,736 | 0.46 | % | |||||||||||||||
| Other borrowings | 1,151 | 64 | 5.49 | % | — | — | — | % | |||||||||||||||
| Total interest-bearing liabilities | 1,720,932 | $ | 32,130 | 1.87 | % | 1,690,092 | $ | 7,736 | 0.46 | % | |||||||||||||
| Noninterest-bearing liabilities: | |||||||||||||||||||||||
| Noninterest-bearing deposits | 1,004,107 | 1,161,995 | |||||||||||||||||||||
| Accrued interest and other liabilities | 22,385 | 18,111 | |||||||||||||||||||||
| Total noninterest-bearing liabilities | 1,026,492 | 1,180,106 | |||||||||||||||||||||
| Stockholders’ equity | 280,427 | 264,077 | |||||||||||||||||||||
| Total liabilities and stockholders’ equity | $ | 3,027,851 | $ | 3,134,275 | |||||||||||||||||||
| Net interest income | $ | 86,438 | $ | 86,639 | |||||||||||||||||||
| Net interest spread | 2.09 | % | 2.60 | % | |||||||||||||||||||
| Net interest margin | 2.87 | % | 2.80 | % | |||||||||||||||||||
| Net interest margin FTE(3) | 2.91 | % | 2.86 | % | |||||||||||||||||||
| Cost of deposits | 1.18 | % | 0.27 | % | |||||||||||||||||||
| Cost of funds | 1.08 | % | 0.25 | % | |||||||||||||||||||
| (1) | Includes average outstanding balances of loans held for sale of |
| (2) | Nonaccrual loans are included as loans carrying a zero yield. |
| (3) | 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, 2023 | September 30, 2023 | December 31, 2022 | ||||||||
| Tangible common equity | |||||||||||
| Total stockholders’ equity | $ | 303,851 | $ | 281,951 | $ | 265,753 | |||||
| Adjustments: | |||||||||||
| Intangible assets | (1,546 | ) | (1,546 | ) | (1,546 | ) | |||||
| Total tangible common equity (non-GAAP) | $ | 302,305 | $ | 280,405 | $ | 264,207 | |||||
| Realized common equity | |||||||||||
| Total stockholders’ equity | $ | 303,851 | $ | 281,951 | $ | 265,753 | |||||
| Adjustments: | |||||||||||
| Accumulated other comprehensive (income) loss | 60,494 | 77,486 | 71,166 | ||||||||
| Total realized common equity (non-GAAP) | $ | 364,345 | $ | 359,437 | $ | 336,919 | |||||
| Common shares outstanding | 7,091,637 | 7,150,685 | 7,183,915 | ||||||||
| Book value per share | $ | 42.85 | $ | 39.43 | $ | 36.99 | |||||
| Tangible book value per share (non-GAAP) | $ | 42.63 | $ | 39.21 | $ | 36.78 | |||||
| Realized book value per share (non-GAAP) | $ | 51.38 | $ | 50.27 | $ | 46.90 | |||||
| Tangible assets | |||||||||||
| Total assets | $ | 3,128,810 | $ | 3,066,153 | $ | 3,082,686 | |||||
| Adjustments: | |||||||||||
| Intangible assets | (1,546 | ) | (1,546 | ) | (1,546 | ) | |||||
| Total tangible assets (non-GAAP) | $ | 3,127,264 | $ | 3,064,607 | $ | 3,081,140 | |||||
| Total stockholders’ equity to assets | 9.71 | % | 9.20 | % | 8.62 | % | |||||
| Tangible common equity to tangible assets (non-GAAP) | 9.67 | % | 9.15 | % | 8.57 | % | |||||
FAQ
What is the ticker symbol for Red River Bancshares, Inc.?
What was the net income for Q4 2023?
How much did the assets of the company increase by?
Was a stock repurchase program approved for 2024?
What percentage of loans HFI were commercial real estate in December 2023?
