Red River Bancshares, Inc. Reports Third Quarter 2021 Financial Results
Red River Bancshares, Inc. (Nasdaq: RRBI) reported third quarter net income of $8.1 million, or $1.12 EPS, a slight decrease from the prior quarter but an increase of 11.7% year-over-year. Total assets increased by $142.3 million to $3.02 billion, primarily driven by a $135 million rise in deposits. The net interest margin increased to 2.60%. The company completed a $3 million stock repurchase program, renewing it for $5 million through August 2022. Nonperforming assets decreased to 0.08% of total assets, reflecting improved asset quality.
- Net income for Q3 2021 was $8.1 million, reflecting year-over-year growth of 11.7%.
- Total assets increased by $142.3 million, reaching $3.02 billion.
- Deposit growth of $135 million indicates strong customer retention and liquidity.
- Net interest margin rose to 2.60%, enhancing profitability.
- Completed a $3 million stock repurchase program and renewed for $5 million.
- Net income decreased by $101,000 compared to the second quarter of 2021.
- Mortgage loan income dropped by $587,000 due to delays from Hurricane Ida.
- Noninterest income fell by $760,000, or 11.9%, from the previous quarter.
ALEXANDRIA, La., Oct. 29, 2021 (GLOBE NEWSWIRE) -- Red River Bancshares, Inc. (the “Company”) (Nasdaq: RRBI), the holding company for Red River Bank (the “Bank”), announced today its unaudited financial results for the third quarter of 2021.
Net income for the third quarter of 2021 was
Net income for the nine months ended September 30, 2021, was
Third Quarter 2021 Performance and Operational Highlights
In the third quarter of 2021, the Company maintained consistent net income, had robust deposit and asset growth, and continued a high level of liquidity. The Company also continued its organic expansion, renewed its stock repurchase program, and managed the impacts from Hurricane Ida.
During the third quarter of 2021, Louisiana experienced a significant increase in COVID-19 pandemic cases and hospitalizations, resulting in the reinstatement of some pandemic-related restrictions such as mask mandates and vaccination requirements for certain activities. However, capacity restrictions were not reinstated. Economic activity in Louisiana remained relatively consistent with the second quarter of 2021, but challenges persist due to supply chain disruptions and labor shortages.
- Net income for the third quarter of 2021 was
$8.1 million ,$101,000 lower than the prior quarter primarily due to lower mortgage loan income, partially offset by higher PPP loan income. - Assets increased
$142.3 million in the third quarter of 2021 to$3.02 billion as of September 30, 2021, primarily driven by a$135.0 million increase in deposits. The deposit growth was mainly due to customers maintaining higher deposit balances. - Mortgage loan income for the third quarter of 2021 was
$1.8 million ,$587,000 lower than the prior quarter. The decrease in mortgage loan activity and income in the third quarter of 2021 was primarily due to Hurricane Ida causing delays in mortgage loan closings. - Red River Bank is participating in the Small Business Administration ("SBA") Paycheck Protection Program ("PPP"). In the third quarter of 2021, forgiveness payments on PPP loans resulted in a
$37.0 million decrease in PPP loans, net of deferred fees. As of September 30, 2021, PPP loans were$46.0 million , net of$1.8 million of deferred income, or2.8% of loans held for investment ("HFI"). In the third quarter of 2021, forgiveness began on PPP Second Draw ("PPP2") loans, resulting in a$305,000 increase in PPP loan income. PPP loan income for the third quarter of 2021 was$1.4 million , compared to$1.1 million for the prior quarter. - As of September 30, 2021, non-PPP loans HFI were
$1.58 billion ,(1) an increase of$59.2 million , or3.9% , from June 30, 2021. The growth in non-PPP loans HFI was mainly due to increased loan activity in most markets. - The net interest margin fully tax equivalent ("FTE") for the third quarter of 2021 was
2.60% , compared to2.54% for the prior quarter. The net interest margin for the third quarter of 2021 benefited from higher PPP loan income and a higher balance of non-PPP loans, partially offset by lower rates on new and renewed non-PPP loans. - Nonperforming assets ("NPA(s)") decreased
$658,000 in the third quarter and were$2.4 million , or0.08% of assets as of September 30, 2021. As of September 30, 2021, the allowance for loan losses ("ALL") was$19.2 million , or1.18% of loans HFI and1.22% (1) of non-PPP loans HFI (non-GAAP). Due to favorable asset quality metrics, the provision for loan losses was$150,000 for both the second and third quarters of 2021. - We paid a quarterly cash dividend of
$0.07 per common share. - In the third quarter of 2021, the
$3.0 million stock repurchase program that was approved in August 2020 was completed after reaching the purchase limit. On August 31, 2021, the board of directors approved the renewal of our stock repurchase program. The renewed repurchase program authorizes 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 these stock repurchase programs, we repurchased 15,994 shares of our common stock in the third quarter of 2021 at an aggregate cost of$804,000 with an average price per share of$50.25 . - In the third quarter of 2021, as part of our digital initiatives plan, we completed a change to a new digital appraisal system and began implementing a new person-to-person payment platform and an online account opening system.
- On July 6, 2021, we opened a new banking center in Lake Charles, Louisiana.
- In our Acadiana market, we continue to operate a loan and deposit production office in Lafayette, Louisiana, while a new banking center location that we purchased in 2020 is under renovation. We expect this new, full-service banking center to open in the first quarter of 2022.
- In the third quarter of 2021, we announced our planned expansion into our newest market, New Orleans, Louisiana. We hired a New Orleans market president and plan to open a combined loan and deposit production office, pending regulatory approval, in New Orleans in the fourth quarter of 2021.
- On August 29, 2021, Hurricane Ida made landfall in southeast Louisiana between New Orleans and Baton Rouge. Red River Bank did not sustain any damage to its locations, and our employees had no significant issues. Banking locations in the impacted markets closed as necessary prior to the hurricane's landfall. Two days after the hurricane made landfall, all impacted markets had banking locations available to customers. We continue to assess the impact from the hurricane to our customers, and based on recent reports, no major issues have been identified.
Blake Chatelain, President and Chief Executive Officer, stated, "The third quarter of 2021 was one of solid growth, consistent performance, and continued execution of our organic growth plans. Deposit growth was mainly a result of many of our customers continuing to maintain high deposit balances and some receiving economic stimulus payments. Excess liquidity in the credit markets continue to accelerate loan payoffs; however, non-PPP loans grew
"As part of our expansion plan, in early July 2021, we opened our new, full-service, remodeled banking center in Lake Charles, Louisiana, which was the third in that market. Lake Charles continues to heal from Hurricane Laura which hit in August of 2020, and our banking team is fully engaged in helping the community recover.
"Also, as part of our organic expansion plan, in our Acadiana market, we continue to operate a loan and deposit production office in Lafayette, Louisiana. In 2020, we purchased a banking center location that is currently under renovation and is expected to open as a new, full-service banking center in the first quarter of 2022.
"We are very excited to announce that Red River Bank will soon be operating in New Orleans and to welcome Meghan Donelon as our New Orleans market president. A New Orleans native, Meghan has a wealth of banking knowledge and experience and is eager to lead Red River Bank in Louisiana's largest market. We believe expanding to New Orleans is a promising opportunity due to recent market disruption, the dynamic customer base, and ongoing recovery from the COVID-19 pandemic. Meghan has assembled a talented group of local, experienced bankers, and we are planning to open a combined loan and deposit production office, pending regulatory approval, in the New Orleans downtown business district in the fourth quarter of 2021.
"Hurricane Ida was a major Category 4 hurricane that caused significant damage in parts of southeast Louisiana. Fortunately, our locations and employees did not have physical damage. Due to our expanded business continuity preparations and plans, our customers' banking needs were met. Our bankers remain hard at work daily to help our communities and customers recover from recent hurricanes."
Net Interest Income and Net Interest Margin FTE
Net interest income and net interest margin FTE for the third quarter of 2021 were positively impacted by higher PPP loan income and a higher balance of non-PPP loans, partially offset by lower rates on new and renewed non-PPP loans. For the third quarter of 2021, deposit growth resulted in additional liquidity which was deployed primarily into interest-bearing deposits in other banks, securities, and non-PPP loans.
Average PPP loans outstanding, net of deferred income, for the third quarter of 2021 were
Net interest income for the third quarter of 2021 was
The net interest margin FTE increased six basis points ("bp(s)") to
Excluding PPP loan income, net interest income (non-GAAP) for the third quarter of 2021 was
Provision for Loan Losses
The provision for loan losses for the third quarter of 2021 was
Noninterest Income
Noninterest income totaled
Mortgage loan income for the third quarter of 2021 was
Debit card income, net, totaled
SBIC income for the third quarter of 2021 was
Service charges on deposit accounts totaled
Operating Expenses
Operating expenses for the third quarter of 2021 totaled
Loan and deposit expenses for the third quarter of 2021 totaled
Legal and professional expenses for the third quarter of 2021 were
Occupancy and equipment expenses totaled
Personnel expenses totaled
Asset Overview
As of September 30, 2021, assets totaled
Assets excluding PPP loans, net of deferred income (non-GAAP) as of September 30, 2021, totaled
Loans
Loans HFI as of September 30, 2021, totaled
Red River Bank began participating in the SBA PPP in the second quarter of 2020. Through September 30, 2021, we had received
Our health care loans are made up of a diversified portfolio of health care providers. As of September 30, 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 September 30, 2021,
Asset Quality and Allowance for Loan Losses
NPAs totaled
As of September 30, 2021, the ALL was
Deposits
Deposits as of September 30, 2021, were
Stockholders’ Equity
Total stockholders’ equity increased 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, 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 26 banking centers throughout Louisiana and one combined loan and deposit production office in Lafayette, 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; and the Northshore, which includes Covington.
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 the Private Securities Litigation Reform Act of 1995. 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 Nine Months Ended | ||||||||||||||||||
| (Dollars in thousands, except per share data) | September 30, 2021 | June 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2020 | ||||||||||||||
| Net Income | $ | 8,138 | $ | 8,239 | $ | 7,285 | $ | 24,442 | $ | 20,884 | |||||||||
| Per Common Share Data: | |||||||||||||||||||
| Earnings per share, basic | $ | 1.12 | $ | 1.13 | $ | 0.99 | $ | 3.35 | $ | 2.85 | |||||||||
| Earnings per share, diluted | $ | 1.12 | $ | 1.13 | $ | 0.99 | $ | 3.34 | $ | 2.84 | |||||||||
| Book value per share | $ | 41.05 | $ | 40.21 | $ | 37.96 | $ | 41.05 | $ | 37.96 | |||||||||
| Tangible book value per share(1) | $ | 40.84 | $ | 40.00 | $ | 37.75 | $ | 40.84 | $ | 37.75 | |||||||||
| Cash dividends per share | $ | 0.07 | $ | 0.07 | $ | 0.06 | $ | 0.21 | $ | 0.18 | |||||||||
| Shares outstanding | 7,276,400 | 7,284,994 | 7,325,333 | 7,276,400 | 7,325,333 | ||||||||||||||
| Weighted average shares outstanding, basic | 7,278,192 | 7,300,040 | 7,327,395 | 7,298,597 | 7,321,092 | ||||||||||||||
| Weighted average shares outstanding, diluted | 7,294,011 | 7,319,351 | 7,342,678 | 7,314,938 | 7,341,747 | ||||||||||||||
| Summary Performance Ratios: | |||||||||||||||||||
| Return on average assets | 1.11 | % | 1.15 | % | 1.20 | % | 1.15 | % | 1.25 | % | |||||||||
| Return on average equity | 10.83 | % | 11.41 | % | 10.50 | % | 11.17 | % | 10.44 | % | |||||||||
| Net interest margin | 2.54 | % | 2.48 | % | 2.96 | % | 2.57 | % | 3.11 | % | |||||||||
| Net interest margin FTE | 2.60 | % | 2.54 | % | 3.02 | % | 2.63 | % | 3.17 | % | |||||||||
| Efficiency ratio | 57.61 | % | 56.62 | % | 55.88 | % | 56.07 | % | 56.56 | % | |||||||||
| Loans HFI to deposits ratio | 59.99 | % | 62.28 | % | 75.17 | % | 59.99 | % | 75.17 | % | |||||||||
| Noninterest-bearing deposits to deposits ratio | 42.29 | % | 40.14 | % | 42.08 | % | 42.29 | % | 42.08 | % | |||||||||
| Noninterest income to average assets | 0.77 | % | 0.90 | % | 1.06 | % | 0.89 | % | 1.01 | % | |||||||||
| Operating expense to average assets | 1.86 | % | 1.88 | % | 2.19 | % | 1.90 | % | 2.28 | % | |||||||||
| Summary Credit Quality Ratios: | |||||||||||||||||||
| Nonperforming assets to total assets | 0.08 | % | 0.11 | % | 0.21 | % | 0.08 | % | 0.21 | % | |||||||||
| Nonperforming loans to loans HFI | 0.09 | % | 0.13 | % | 0.27 | % | 0.09 | % | 0.27 | % | |||||||||
| Allowance for loan losses to loans HFI | 1.18 | % | 1.22 | % | 0.98 | % | 1.18 | % | 0.98 | % | |||||||||
| Net charge-offs to average loans | 0.03 | % | 0.01 | % | 0.02 | % | 0.03 | % | 0.09 | % | |||||||||
| Capital Ratios: | |||||||||||||||||||
| Total stockholders' equity to total assets | 9.89 | % | 10.18 | % | 11.16 | % | 9.89 | % | 11.16 | % | |||||||||
| Tangible common equity to tangible assets(1) | 9.84 | % | 10.13 | % | 11.11 | % | 9.84 | % | 11.11 | % | |||||||||
| Total risk-based capital to risk-weighted assets | 18.74 | % | 19.10 | % | 18.17 | % | 18.74 | % | 18.17 | % | |||||||||
| Tier 1 risk-based capital to risk-weighted assets | 17.60 | % | 17.90 | % | 17.15 | % | 17.60 | % | 17.15 | % | |||||||||
| Common equity Tier 1 capital to risk-weighted assets | 17.60 | % | 17.90 | % | 17.15 | % | 17.60 | % | 17.15 | % | |||||||||
| Tier 1 risk-based capital to average assets | 10.21 | % | 10.13 | % | 11.26 | % | 10.21 | % | 11.26 | % | |||||||||
(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) | September 30, 2021 | June 30, 2021 | March 31, 2021 | December 31, 2020 | September 30, 2020 | ||||||||||||||
| ASSETS | |||||||||||||||||||
| Cash and due from banks | $ | 36,614 | $ | 33,728 | $ | 36,856 | $ | 29,537 | $ | 31,422 | |||||||||
| Interest-bearing deposits in other banks | 693,950 | 633,744 | 566,144 | 417,664 | 239,466 | ||||||||||||||
| Securities available-for-sale | 568,199 | 512,012 | 515,942 | 498,206 | 467,744 | ||||||||||||||
| Equity securities | 7,920 | 3,961 | 3,951 | 4,021 | 4,032 | ||||||||||||||
| Nonmarketable equity securities | 3,449 | 3,449 | 3,447 | 3,447 | 3,445 | ||||||||||||||
| Loans held for sale | 8,782 | 12,291 | 18,449 | 29,116 | 23,358 | ||||||||||||||
| Loans held for investment | 1,622,593 | 1,600,388 | 1,602,086 | 1,588,446 | 1,649,272 | ||||||||||||||
| Allowance for loan losses | (19,168 | ) | (19,460 | ) | (19,377 | ) | (17,951 | ) | (16,192 | ) | |||||||||
| Premises and equipment, net | 47,432 | 47,414 | 46,950 | 46,924 | 44,501 | ||||||||||||||
| Accrued interest receivable | 5,927 | 6,039 | 6,460 | 6,880 | 6,617 | ||||||||||||||
| Bank-owned life insurance | 27,886 | 27,710 | 22,546 | 22,413 | 22,270 | ||||||||||||||
| Intangible assets | 1,546 | 1,546 | 1,546 | 1,546 | 1,546 | ||||||||||||||
| Right-of-use assets | 3,847 | 3,950 | 4,053 | 4,154 | 4,255 | ||||||||||||||
| Other assets | 11,807 | 11,704 | 11,619 | 8,231 | 9,192 | ||||||||||||||
| Total Assets | $ | 3,020,784 | $ | 2,878,476 | $ | 2,820,672 | $ | 2,642,634 | $ | 2,490,928 | |||||||||
| LIABILITIES | |||||||||||||||||||
| Noninterest-bearing deposits | $ | 1,143,693 | $ | 1,031,486 | $ | 1,015,350 | $ | 943,615 | $ | 923,286 | |||||||||
| Interest-bearing deposits | 1,560,890 | 1,538,113 | 1,499,925 | 1,396,745 | 1,270,654 | ||||||||||||||
| Total Deposits | 2,704,583 | 2,569,599 | 2,515,275 | 2,340,360 | 2,193,940 | ||||||||||||||
| Accrued interest payable | 1,340 | 1,432 | 1,699 | 1,774 | 1,805 | ||||||||||||||
| Lease liabilities | 3,943 | 4,042 | 4,138 | 4,233 | 4,327 | ||||||||||||||
| Accrued expenses and other liabilities | 12,230 | 10,479 | 14,649 | 10,789 | 12,778 | ||||||||||||||
| Total Liabilities | 2,722,096 | 2,585,552 | 2,535,761 | 2,357,156 | 2,212,850 | ||||||||||||||
| COMMITMENTS AND CONTINGENCIES | — | — | — | — | — | ||||||||||||||
| STOCKHOLDERS' EQUITY | |||||||||||||||||||
| Preferred stock, no par value | — | — | — | — | — | ||||||||||||||
| Common stock, no par value | 65,130 | 65,934 | 67,093 | 68,055 | 68,055 | ||||||||||||||
| Additional paid-in capital | 1,751 | 1,692 | 1,638 | 1,545 | 1,487 | ||||||||||||||
| Retained earnings | 231,868 | 224,240 | 216,511 | 208,957 | 202,136 | ||||||||||||||
| Accumulated other comprehensive income (loss) | (61 | ) | 1,058 | (331 | ) | 6,921 | 6,400 | ||||||||||||
| Total Stockholders' Equity | 298,688 | 292,924 | 284,911 | 285,478 | 278,078 | ||||||||||||||
| Total Liabilities and Stockholders' Equity | $ | 3,020,784 | $ | 2,878,476 | $ | 2,820,672 | $ | 2,642,634 | $ | 2,490,928 | |||||||||
| RED RIVER BANCSHARES, INC. | ||||||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) | ||||||||||||||||||
| For the Three Months Ended | For the Nine Months Ended | |||||||||||||||||
| (in thousands) | September 30, 2021 | June 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2020 | |||||||||||||
| INTEREST AND DIVIDEND INCOME | ||||||||||||||||||
| Interest and fees on loans | $ | 16,993 | $ | 16,351 | $ | 17,080 | $ | 50,509 | $ | 50,623 | ||||||||
| Interest on securities | 2,220 | 2,138 | 2,099 | 6,247 | 5,766 | |||||||||||||
| Interest on federal funds sold | 20 | 25 | 30 | 67 | 179 | |||||||||||||
| Interest on deposits in other banks | 202 | 129 | 27 | 432 | 265 | |||||||||||||
| Dividends on stock | 7 | 1 | 13 | 9 | 19 | |||||||||||||
| Total Interest and Dividend Income | 19,442 | 18,644 | 19,249 | 57,264 | 56,852 | |||||||||||||
| INTEREST EXPENSE | ||||||||||||||||||
| Interest on deposits | 1,333 | 1,397 | 1,954 | 4,317 | 6,497 | |||||||||||||
| Interest on other borrowed funds | — | — | — | — | 16 | |||||||||||||
| Total Interest Expense | 1,333 | 1,397 | 1,954 | 4,317 | 6,513 | |||||||||||||
| Net Interest Income | 18,109 | 17,247 | 17,295 | 52,947 | 50,339 | |||||||||||||
| Provision for loan losses | 150 | 150 | 1,590 | 1,750 | 3,618 | |||||||||||||
| Net Interest Income After Provision for Loan Losses | 17,959 | 17,097 | 15,705 | 51,197 | 46,721 | |||||||||||||
| NONINTEREST INCOME | ||||||||||||||||||
| Service charges on deposit accounts | 1,258 | 1,140 | 1,055 | 3,457 | 3,001 | |||||||||||||
| Debit card income, net | 1,094 | 1,204 | 978 | 3,344 | 2,629 | |||||||||||||
| Mortgage loan income | 1,770 | 2,357 | 2,884 | 7,009 | 5,720 | |||||||||||||
| Brokerage income | 851 | 806 | 586 | 2,491 | 1,725 | |||||||||||||
| Loan and deposit income | 413 | 395 | 413 | 1,281 | 1,340 | |||||||||||||
| Bank-owned life insurance income | 176 | 164 | 139 | 473 | 425 | |||||||||||||
| Gain (Loss) on equity securities | (41 | ) | 11 | — | (100 | ) | 96 | |||||||||||
| Gain (Loss) on sale and call of securities | — | 34 | 125 | 193 | 1,348 | |||||||||||||
| SBIC income | 136 | 239 | 200 | 616 | 568 | |||||||||||||
| Other income (loss) | (14 | ) | 53 | 40 | 57 | 122 | ||||||||||||
| Total Noninterest Income | 5,643 | 6,403 | 6,420 | 18,821 | 16,974 | |||||||||||||
| OPERATING EXPENSES | ||||||||||||||||||
| Personnel expenses | 7,956 | 8,110 | 8,077 | 24,087 | 23,072 | |||||||||||||
| Occupancy and equipment expenses | 1,412 | 1,329 | 1,319 | 4,019 | 3,739 | |||||||||||||
| Technology expenses | 734 | 744 | 661 | 2,144 | 1,863 | |||||||||||||
| Advertising | 282 | 226 | 240 | 691 | 717 | |||||||||||||
| Other business development expenses | 283 | 307 | 233 | 889 | 782 | |||||||||||||
| Data processing expense | 528 | 532 | 491 | 1,445 | 1,412 | |||||||||||||
| Other taxes | 527 | 532 | 433 | 1,584 | 1,308 | |||||||||||||
| Loan and deposit expenses | 325 | 193 | 289 | 773 | 808 | |||||||||||||
| Legal and professional expenses | 453 | 368 | 487 | 1,189 | 1,587 | |||||||||||||
| Regulatory assessment expenses | 251 | 213 | 172 | 665 | 337 | |||||||||||||
| Other operating expenses | 933 | 838 | 849 | 2,753 | 2,445 | |||||||||||||
| Total Operating Expenses | 13,684 | 13,392 | 13,251 | 40,239 | 38,070 | |||||||||||||
| Income Before Income Tax Expense | 9,918 | 10,108 | 8,874 | 29,779 | 25,625 | |||||||||||||
| Income tax expense | 1,780 | 1,869 | 1,589 | 5,337 | 4,741 | |||||||||||||
| Net Income | $ | 8,138 | $ | 8,239 | $ | 7,285 | $ | 24,442 | $ | 20,884 | ||||||||
| RED RIVER BANCSHARES, INC. | |||||||||||||||||||||||||||||
| NET INTEREST INCOME AND NET INTEREST MARGIN (UNAUDITED) | |||||||||||||||||||||||||||||
| For the Three Months Ended | |||||||||||||||||||||||||||||
| September 30, 2021 | June 30, 2021 | September 30, 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) | $ | 1,619,019 | $ | 16,993 | 4.11 | % | $ | 1,617,267 | $ | 16,351 | 4.00 | % | $ | 1,656,586 | $ | 17,080 | 4.04 | % | |||||||||||
| Securities - taxable | 340,045 | 1,181 | 1.39 | % | 319,026 | 1,102 | 1.38 | % | 317,612 | 1,240 | 1.56 | % | |||||||||||||||||
| Securities - tax-exempt | 203,046 | 1,039 | 2.05 | % | 200,132 | 1,036 | 2.07 | % | 146,477 | 859 | 2.35 | % | |||||||||||||||||
| Federal funds sold | 52,589 | 20 | 0.15 | % | 82,723 | 25 | 0.12 | % | 73,644 | 30 | 0.16 | % | |||||||||||||||||
| Interest-bearing balances due from banks | 579,698 | 202 | 0.14 | % | 534,934 | 129 | 0.10 | % | 97,687 | 27 | 0.11 | % | |||||||||||||||||
| Nonmarketable equity securities | 3,448 | 7 | 0.81 | % | 3,448 | 1 | 0.10 | % | 3,441 | 13 | 1.51 | % | |||||||||||||||||
| Total interest-earning assets | 2,797,845 | $ | 19,442 | 2.73 | % | 2,757,530 | $ | 18,644 | 2.68 | % | 2,295,447 | $ | 19,249 | 3.30 | % | ||||||||||||||
| Allowance for loan losses | (19,343 | ) | (19,437 | ) | (15,525 | ) | |||||||||||||||||||||||
| Noninterest-earning assets | 135,697 | 131,101 | 128,910 | ||||||||||||||||||||||||||
| Total assets | $ | 2,914,199 | $ | 2,869,194 | $ | 2,408,832 | |||||||||||||||||||||||
| Liabilities and Stockholders’ Equity | |||||||||||||||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||||||||||
| Interest-bearing transaction deposits | $ | 1,210,605 | $ | 384 | 0.13 | % | $ | 1,195,766 | $ | 375 | 0.13 | % | $ | 891,840 | $ | 617 | 0.28 | % | |||||||||||
| Time deposits | 342,872 | 949 | 1.10 | % | 341,941 | 1,022 | 1.20 | % | 330,576 | 1,337 | 1.61 | % | |||||||||||||||||
| Total interest-bearing deposits | 1,553,477 | 1,333 | 0.34 | % | 1,537,707 | 1,397 | 0.36 | % | 1,222,416 | 1,954 | 0.64 | % | |||||||||||||||||
| Other borrowings | — | — | — | % | — | — | — | % | — | — | — | % | |||||||||||||||||
| Total interest-bearing liabilities | 1,553,477 | $ | 1,333 | 0.34 | % | 1,537,707 | $ | 1,397 | 0.36 | % | 1,222,416 | $ | 1,954 | 0.64 | % | ||||||||||||||
| Noninterest-bearing liabilities: | |||||||||||||||||||||||||||||
| Noninterest-bearing deposits | 1,046,139 | 1,023,828 | 891,850 | ||||||||||||||||||||||||||
| Accrued interest and other liabilities | 16,570 | 17,235 | 18,541 | ||||||||||||||||||||||||||
| Total noninterest-bearing liabilities: | 1,062,709 | 1,041,063 | 910,391 | ||||||||||||||||||||||||||
| Stockholders’ equity | 298,013 | 290,424 | 276,025 | ||||||||||||||||||||||||||
| Total liabilities and stockholders’ equity | $ | 2,914,199 | $ | 2,869,194 | $ | 2,408,832 | |||||||||||||||||||||||
| Net interest income | $ | 18,109 | $ | 17,247 | $ | 17,295 | |||||||||||||||||||||||
| Net interest spread | 2.39 | % | 2.32 | % | 2.66 | % | |||||||||||||||||||||||
| Net interest margin | 2.54 | % | 2.48 | % | 2.96 | % | |||||||||||||||||||||||
| Net interest margin FTE(3) | 2.60 | % | 2.54 | % | 3.02 | % | |||||||||||||||||||||||
| Cost of deposits | 0.20 | % | 0.22 | % | 0.37 | % | |||||||||||||||||||||||
| Cost of funds | 0.19 | % | 0.20 | % | 0.34 | % | |||||||||||||||||||||||
| (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 ratios excluding PPP loans (non-GAAP) for the three months ended September 30, 2021, June 30, 2021, and September 30, 2020. | ||||||||||||||||||||||||||
| For the Three Months Ended | ||||||||||||||||||||||||||
| September 30, 2021 | June 30, 2021 | September 30, 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) | $ | 1,619,019 | $ | 16,993 | 4.11 | % | $ | 1,617,267 | $ | 16,351 | 4.00 | % | $ | 1,656,586 | $ | 17,080 | 4.04 | % | ||||||||
| Less: PPP loans, net | ||||||||||||||||||||||||||
| Average | 63,205 | 109,182 | 193,038 | |||||||||||||||||||||||
| Interest | 166 | 284 | 509 | |||||||||||||||||||||||
| Fees | 1,201 | 778 | 877 | |||||||||||||||||||||||
| Total PPP loans, net | 63,205 | 1,367 | 8.57 | % | 109,182 | 1,062 | 3.89 | % | 193,038 | 1,386 | 2.84 | % | ||||||||||||||
| Non-PPP loans (non-GAAP)(4) | $ | 1,555,814 | $ | 15,626 | 3.93 | % | $ | 1,508,085 | $ | 15,289 | 4.01 | % | $ | 1,463,548 | $ | 15,694 | 4.20 | % | ||||||||
| Ratios excluding PPP loans, net (non-GAAP)(4) | ||||||||||||||||||||||||||
| Net interest spread | 2.26 | % | 2.27 | % | 2.70 | % | ||||||||||||||||||||
| Net interest margin | 2.40 | % | 2.42 | % | 2.97 | % | ||||||||||||||||||||
| Net interest margin FTE(3) | 2.46 | % | 2.48 | % | 3.03 | % | ||||||||||||||||||||
| (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 Nine Months Ended September 30, | |||||||||||||||||||
| 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) | $ | 1,610,449 | $ | 50,509 | 4.14 | % | $ | 1,571,318 | $ | 50,623 | 4.24 | % | |||||||
| Securities - taxable | 318,354 | 3,145 | 1.32 | % | 282,186 | 3,725 | 1.76 | % | |||||||||||
| Securities - tax-exempt | 199,556 | 3,102 | 2.07 | % | 114,581 | 2,041 | 2.38 | % | |||||||||||
| Federal funds sold | 70,841 | 67 | 0.13 | % | 63,015 | 179 | 0.37 | % | |||||||||||
| Interest-bearing balances due from banks | 521,118 | 432 | 0.11 | % | 91,866 | 265 | 0.38 | % | |||||||||||
| Nonmarketable equity securities | 3,448 | 9 | 0.34 | % | 2,639 | 19 | 0.96 | % | |||||||||||
| Total interest-earning assets | $ | 2,723,766 | $ | 57,264 | 2.78 | % | $ | 2,125,605 | $ | 56,852 | 3.52 | % | |||||||
| Allowance for loan losses | (19,152 | ) | (14,702 | ) | |||||||||||||||
| Noninterest-earning assets | 133,400 | 122,948 | |||||||||||||||||
| Total assets | $ | 2,838,014 | $ | 2,233,851 | |||||||||||||||
| Liabilities and Stockholders’ Equity | |||||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||
| Interest-bearing transaction deposits | $ | 1,177,220 | $ | 1,238 | 0.14 | % | $ | 842,193 | $ | 2,214 | 0.35 | % | |||||||
| Time deposits | 341,847 | 3,079 | 1.20 | % | 333,154 | 4,283 | 1.72 | % | |||||||||||
| Total interest-bearing deposits | 1,519,067 | 4,317 | 0.38 | % | 1,175,347 | 6,497 | 0.74 | % | |||||||||||
| Other borrowings | — | — | — | % | 6,231 | 16 | 0.35 | % | |||||||||||
| Total interest-bearing liabilities | 1,519,067 | $ | 4,317 | 0.38 | % | 1,181,578 | $ | 6,513 | 0.74 | % | |||||||||
| Noninterest-bearing liabilities: | |||||||||||||||||||
| Noninterest-bearing deposits | 1,009,188 | 767,372 | |||||||||||||||||
| Accrued interest and other liabilities | 17,324 | 17,762 | |||||||||||||||||
| Total noninterest-bearing liabilities | 1,026,512 | 785,134 | |||||||||||||||||
| Stockholders’ equity | 292,435 | 267,139 | |||||||||||||||||
| Total liabilities and stockholders’ equity | $ | 2,838,014 | $ | 2,233,851 | |||||||||||||||
| Net interest income | $ | 52,947 | $ | 50,339 | |||||||||||||||
| Net interest spread | 2.40 | % | 2.78 | % | |||||||||||||||
| Net interest margin | 2.57 | % | 3.11 | % | |||||||||||||||
| Net interest margin FTE(3) | 2.63 | % | 3.17 | % | |||||||||||||||
| Cost of deposits | 0.23 | % | 0.45 | % | |||||||||||||||
| Cost of funds | 0.21 | % | 0.41 | % | |||||||||||||||
| (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 ratios excluding PPP loans (non-GAAP) for the nine months ended September 30, 2021 and 2020. | |||||||||||||||||
| For the Nine Months Ended September 30, | |||||||||||||||||
| 2021 | 2020 | ||||||||||||||||
| (dollars in thousands) | Average Balance Outstanding | Interest/Fees Earned | Average Yield | Average Balance Outstanding | Interest/Fees Earned | Average Yield | |||||||||||
| Loans(1,2) | $ | 1,610,449 | $ | 50,509 | 4.14 | % | $ | 1,571,318 | $ | 50,623 | 4.24 | % | |||||
| Less: PPP loans, net | |||||||||||||||||
| Average | 93,408 | 116,095 | |||||||||||||||
| Interest | 734 | 932 | |||||||||||||||
| Fees | 3,827 | 1,607 | |||||||||||||||
| Total PPP loans, net | 93,408 | 4,561 | 6.51 | % | 116,095 | 2,539 | 2.90 | % | |||||||||
| Non-PPP loans (non-GAAP)(4) | $ | 1,517,041 | $ | 45,948 | 4.00 | % | $ | 1,455,223 | $ | 48,084 | 4.35 | % | |||||
| Ratios excluding PPP loans, net (non-GAAP)(4) | |||||||||||||||||
| Net interest spread | 2.27 | % | 2.82 | % | |||||||||||||
| Net interest margin | 2.43 | % | 3.13 | % | |||||||||||||
| Net interest margin FTE(3) | 2.49 | % | 3.19 | % | |||||||||||||
| (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) | September 30, 2021 | June 30, 2021 | September 30, 2020 | |||||||||||
| Tangible common equity | ||||||||||||||
| Total stockholders' equity | $ | 298,688 | $ | 292,924 | $ | 278,078 | ||||||||
| Adjustments: | ||||||||||||||
| Intangible assets | (1,546 | ) | (1,546 | ) | (1,546 | ) | ||||||||
| Total tangible common equity (non-GAAP) | $ | 297,142 | $ | 291,378 | $ | 276,532 | ||||||||
| Common shares outstanding | 7,276,400 | 7,284,994 | 7,325,333 | |||||||||||
| Book value per common share | $ | 41.05 | $ | 40.21 | $ | 37.96 | ||||||||
| Tangible book value per common share (non-GAAP) | $ | 40.84 | $ | 40.00 | $ | 37.75 | ||||||||
| Tangible assets | ||||||||||||||
| Total assets | $ | 3,020,784 | $ | 2,878,476 | $ | 2,490,928 | ||||||||
| Adjustments: | ||||||||||||||
| Intangible assets | (1,546 | ) | (1,546 | ) | (1,546 | ) | ||||||||
| Total tangible assets (non-GAAP) | $ | 3,019,238 | $ | 2,876,930 | $ | 2,489,382 | ||||||||
| Total stockholders' equity to assets | 9.89 | % | 10.18 | % | 11.16 | % | ||||||||
| Tangible common equity to tangible assets (non-GAAP) | 9.84 | % | 10.13 | % | 11.11 | % | ||||||||
| Non-PPP loans HFI | ||||||||||||||
| Loans HFI | $ | 1,622,593 | $ | 1,600,388 | $ | 1,649,272 | ||||||||
| Adjustments: | ||||||||||||||
| PPP loans, net | (45,962 | ) | (82,972 | ) | (193,532 | ) | ||||||||
| Non-PPP loans HFI (non-GAAP) | $ | 1,576,631 | $ | 1,517,416 | $ | 1,455,740 | ||||||||
| Assets excluding PPP loans, net | ||||||||||||||
| Assets | $ | 3,020,784 | $ | 2,878,476 | $ | 2,490,928 | ||||||||
| Adjustments: | ||||||||||||||
| PPP loans, net | (45,962 | ) | (82,972 | ) | (193,532 | ) | ||||||||
| Assets excluding PPP loans, net (non-GAAP) | $ | 2,974,822 | $ | 2,795,504 | $ | 2,297,396 | ||||||||
| Allowance for loan losses | $ | 19,168 | $ | 19,460 | $ | 16,192 | ||||||||
| Deposits | $ | 2,704,583 | $ | 2,569,599 | $ | 2,193,940 | ||||||||
| Loans HFI to deposits ratio | 59.99 | % | 62.28 | % | 75.17 | % | ||||||||
| Non-PPP loans HFI to deposits ratio (non-GAAP) | 58.29 | % | 59.05 | % | 66.35 | % | ||||||||
| Allowance for loan losses to loans HFI | 1.18 | % | 1.22 | % | 0.98 | % | ||||||||
| Allowance for loan losses to non-PPP loans HFI (non-GAAP) | 1.22 | % | 1.28 | % | 1.11 | % | ||||||||
FAQ
What were Red River Bancshares' Q3 2021 earnings results?
How much did total assets increase for Red River Bancshares in Q3 2021?
What was the net interest margin for Red River Bancshares in Q3 2021?
Did Red River Bancshares renew its stock repurchase program?
What impact did Hurricane Ida have on Red River Bancshares' mortgage loan income?
