Red River Bancshares, Inc. Reports First Quarter 2021 Financial Results
Net income for the first quarter of 2021 was
First Quarter 2021 Performance and Operational Highlights
The first quarter of 2021 included record-high quarterly net income, the implementation of the
- Net income for the first quarter of 2021 was
$8.1 million ,$804,000 higher than the prior quarter primarily due to lower provision for loan loss expense, partially offset by lower PPP loan income. - Assets increased
$178.0 million in the first quarter of 2021 to$2.82 billion as ofMarch 31, 2021 , driven by a$174.9 million increase in deposits. Deposits increased as a result of customers receiving funds from government stimulus programs, customers depositing the proceeds from their PPP Second Draw ("PPP2") loans, and customers maintaining larger deposit balances, partially offset by the normal seasonal drawdowns as public entity customers distributed their year-end funds to other organizations. Red River Bank has participated in the SBA PPP. In the first quarter of 2021, forgiveness of PPP First Draw ("PPP1") loans was offset by the issuance of PPP2 loans. Total PPP loans outstanding were consistent betweenMarch 31, 2021 andDecember 31, 2020 . PPP loan income for the first quarter of 2021 was$2.1 million ,$891,000 lower than$3.0 million for the prior quarter.- The net interest margin fully tax equivalent ("FTE") for the first quarter of 2021 was 2.76%, compared to 3.08% for the prior quarter. The net interest margin for the first quarter of 2021 was negatively impacted by a higher level of low yielding short-term liquid assets, combined with lower PPP loan income.
- Mortgage loan production remained strong with the low mortgage interest rate environment resulting in continued mortgage refinancing activity. Mortgage loan income for the first quarter of 2021 was
$2.9 million ,$203,000 higher than the prior quarter. - Brokerage income for the first quarter of 2021 was
$834,000 , a quarterly record-high level. - Nonperforming assets ("NPA(s)") decreased
$602,000 in the first quarter and were$3.6 million , or 0.13% of assets as ofMarch 31, 2021 . Due to positive asset quality trends, the rollout of COVID-19 vaccines, and the easing of pandemic-related restrictions on businesses, the provision for loan losses for the first quarter of 2021 was$1.5 million , compared to$2.7 million for the prior quarter. As ofMarch 31, 2021 , the allowance for loan losses ("ALL") was$19.4 million , or 1.21% of loans held for investment ("HFI") and 1.31%(1) of non-PPP loans HFI (non-GAAP). - We increased the quarterly cash dividend to
$0.07 per common share. - In accordance with the stock repurchase program implemented in the third quarter of 2020, we repurchased 19,661 shares of our common stock in the first quarter of 2021 at an aggregate cost of
$1.0 million . - Various executive management changes at
Red River Bank occurred.Jeffrey R. Theiler stepped down as Senior Vice President and Chief Operations Officer forRed River Bank .Bridges Hall transitioned from being Northwest Market President to Senior Vice President and Credit Policy Officer.Jennifer Elliott joinedRed River Bank as the Northwest Market President. - Various changes occurred with the Boards of Directors of the Company and
Red River Bank .Anna Brasher Moreau , DDS, MS, was appointed to the boards of the Company andRed River Bank .John C. Simpson transitioned from his role as Chairman of the Board of the Company andRed River Bank to Chair Emeritus and is also remaining a member on both boards.Teddy R. Price was elected by the board to serve as Chair of the Board of the Company andRed River Bank . - In
April 2021 , the Company decided to invest in theJAM FINTOP Banktech, L.P. fund to strategically develop partnerships as we build the Bank's digital offerings.
"We are pleased with the record-high earnings and solid balance sheet growth in the first quarter of 2021. Due to our financial results and capital levels, we increased the quarterly cash dividend to
"We are pleased to welcome
"We also had various board member changes in the first quarter. We welcome Dr.
"All of us are hopeful that the transition to pre-COVID-19 normal life continues in 2021. Loan demand, while increasing, is still tepid and liquidity levels are high for most banks. Our first quarter results are encouraging, and we are cautiously optimistic that by the end of the year, the economy will have returned to pre-pandemic levels."
Net Interest Income and Net Interest Margin FTE
Net interest income and net interest margin FTE for the first quarter of 2021 were negatively impacted by lower PPP loan income. The net interest margin FTE was also impacted by a higher level of low yielding short-term liquid assets. For the first quarter of 2021, deposit growth resulted in additional liquidity which was deployed primarily into interest-bearing deposits in other banks and also into securities.
Average PPP loans outstanding, net of deferred income, for the first quarter of 2021 were
Net interest income for the first quarter of 2021 was
The net interest margin FTE decreased 32 basis points ("bp(s)") to 2.76% for the first quarter of 2021, compared to 3.08% for the prior quarter. Contributing to this decrease was a 16 bp decrease in the yield on loans due to an
Excluding PPP loan income, net interest income (non-GAAP) for the first quarter of 2021 was
Provision for Loan Losses
The provision for loan losses for the first quarter of 2021 was
Noninterest Income
Noninterest income totaled
Brokerage income for the first quarter of 2021 was a quarterly record-high of
Mortgage loan income for the first quarter of 2021 was
Loan and deposit income totaled
Operating Expenses
Operating expenses for the first quarter of 2021 totaled
Legal and professional expenses totaled
Data processing expense decreased
Other taxes totaled
Asset Overview
As of
Assets excluding PPP loans, net of deferred income (non-GAAP) as of
Loans
Loans HFI as of
In the second quarter of 2020,
With the passing of the Economic Aid Act in December of 2020,
During 2020, we began granting loan payment deferments for requesting borrowers impacted by pandemic-related economic shutdowns. As of
We have identified certain sectors within our portfolio that we believe have a heightened overall level of risk due to pandemic-related macro-economic conditions. The following table shows non-PPP loans HFI (non-GAAP) in these sectors:
Loans | ||||||
(dollars in thousands) | Amount | Percent of Non-PPP Loans HFI (non-GAAP) |
||||
Hospitality services: | ||||||
Hotels and other overnight lodging | $ | 26,477 | 1.8 | % | ||
Restaurants - full service | 12,258 | 0.8 | % | |||
Restaurants - limited service | 12,235 | 0.8 | % | |||
Other | 7,130 | 0.5 | % | |||
Total hospitality services | $ | 58,100 | 3.9 | % | ||
Retail trade (excluding automobile dealers) | $ | 21,336 | 1.4 | % | ||
Energy | $ | 29,916 | 2.0 | % |
Loan payment deferments in the hospitality services sector represent 86.2% of our active deferrals. As of
The following table shows non-PPP loans HFI (non-GAAP) in other non-industry specific areas that we believe may be affected by the pandemic:
(dollars in thousands) | Amount | Percent of Non-PPP Loans HFI (non-GAAP) |
||||
Loans collateralized by non-owner occupied properties leased to retail establishments | $ | 42,681 | 2.9 | % | ||
Credit card loans: | ||||||
Commercial | $ | 1,752 | 0.1 | % | ||
Consumer | 913 | 0.1 | % | |||
Total credit card loans | $ | 2,665 | 0.2 | % |
Our health care loans are made up of a diversified portfolio of health care providers. As of
Asset Quality and Allowance for Loan Losses
NPAs totaled
As of
Deposits
Deposits as of
Stockholders’ Equity
Total stockholders’ equity decreased to
Non-GAAP Disclosure
Our accounting and reporting policies conform to
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.
(1) Non-GAAP financial measure. Calculations of this measure and reconciliations to GAAP are included in the schedules accompanying this release.
About
The Company is the bank holding company for
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
Contact:
Executive Vice President and Chief Financial Officer
318-561-4023
icarriere@redriverbank.net
FINANCIAL HIGHLIGHTS (UNAUDITED) | |||||||||||
As of and for the Three Months Ended |
|||||||||||
(Dollars in thousands, except per share data) | 2021 |
2020 |
2020 |
||||||||
Net Income | $ | 8,065 | $ | 7,261 | $ | 6,745 | |||||
Per Common Share Data: | |||||||||||
Earnings per share, basic | $ | 1.10 | $ | 0.99 | $ | 0.92 | |||||
Earnings per share, diluted | $ | 1.10 | $ | 0.99 | $ | 0.92 | |||||
Book value per share | $ | 38.99 | $ | 38.97 | $ | 36.08 | |||||
Tangible book value per share(1) | $ | 38.78 | $ | 38.76 | $ | 35.87 | |||||
Cash dividends per share | $ | 0.07 | $ | 0.06 | $ | 0.06 | |||||
Shares outstanding | 7,306,747 | 7,325,333 | 7,322,532 | ||||||||
Weighted average shares outstanding, basic | 7,317,995 | 7,325,333 | 7,313,279 | ||||||||
Weighted average shares outstanding, diluted | 7,337,151 | 7,343,859 | 7,351,409 | ||||||||
Summary Performance Ratios: | |||||||||||
Return on average assets | 1.20 | % | 1.13 | % | 1.36 | % | |||||
Return on average equity | 11.36 | % | 10.23 | % | 10.53 | % | |||||
Net interest margin | 2.69 | % | 3.01 | % | 3.36 | % | |||||
Net interest margin FTE | 2.76 | % | 3.08 | % | 3.41 | % | |||||
Efficiency ratio | 54.02 | % | 53.66 | % | 57.40 | % | |||||
Loans HFI to deposits ratio | 63.69 | % | 67.87 | % | 83.77 | % | |||||
Noninterest-bearing deposits to deposits ratio | 40.37 | % | 40.32 | % | 35.15 | % | |||||
Noninterest income to average assets | 1.01 | % | 0.97 | % | 0.95 | % | |||||
Operating expense to average assets | 1.96 | % | 2.08 | % | 2.41 | % | |||||
Summary Credit Quality Ratios: | |||||||||||
Nonperforming assets to total assets | 0.13 | % | 0.16 | % | 0.30 | % | |||||
Nonperforming loans to loans HFI | 0.18 | % | 0.21 | % | 0.36 | % | |||||
Allowance for loan losses to loans HFI | 1.21 | % | 1.13 | % | 0.99 | % | |||||
Net charge-offs to average loans | 0.00 | % | 0.06 | % | 0.00 | % | |||||
Capital Ratios: | |||||||||||
Total stockholders' equity to total assets | 10.10 | % | 10.80 | % | 13.14 | % | |||||
Tangible common equity to tangible assets(1) | 10.05 | % | 10.75 | % | 13.07 | % | |||||
Total risk-based capital to risk-weighted assets | 18.87 | % | 18.68 | % | 18.18 | % | |||||
Tier 1 risk-based capital to risk-weighted assets | 17.66 | % | 17.55 | % | 17.21 | % | |||||
Common equity Tier 1 capital to risk-weighted assets | 17.66 | % | 17.55 | % | 17.21 | % | |||||
Tier 1 risk-based capital to average assets | 10.43 | % | 10.92 | % | 12.89 | % |
(1) Non-GAAP financial measure. Calculations of this measure and reconciliations to GAAP are included in the schedules accompanying this release.
CONSOLIDATED BALANCE SHEETS (UNAUDITED) | |||||||||||||||||||
(in thousands) | 2021 |
2020 |
2020 |
2020 |
2020 |
||||||||||||||
ASSETS | |||||||||||||||||||
Cash and due from banks | $ | 36,856 | $ | 29,537 | $ | 31,422 | $ | 31,097 | $ | 31,858 | |||||||||
Interest-bearing deposits in other banks | 566,144 | 417,664 | 239,466 | 210,254 | 48,605 | ||||||||||||||
Securities available-for-sale | 515,942 | 498,206 | 467,744 | 413,246 | 401,944 | ||||||||||||||
Equity securities | 3,951 | 4,021 | 4,032 | 4,032 | 3,998 | ||||||||||||||
Nonmarketable equity securities | 3,447 | 3,447 | 3,445 | 3,441 | 1,354 | ||||||||||||||
Loans held for sale | 18,449 | 29,116 | 23,358 | 14,578 | 6,597 | ||||||||||||||
Loans held for investment | 1,602,086 | 1,588,446 | 1,649,272 | 1,615,298 | 1,447,362 | ||||||||||||||
Allowance for loan losses | (19,377 | ) | (17,951 | ) | (16,192 | ) | (14,882 | ) | (14,393 | ) | |||||||||
Premises and equipment, net | 46,950 | 46,924 | 44,501 | 41,465 | 41,711 | ||||||||||||||
Accrued interest receivable | 6,460 | 6,880 | 6,617 | 6,492 | 5,240 | ||||||||||||||
Bank-owned life insurance | 22,546 | 22,413 | 22,270 | 22,131 | 21,987 | ||||||||||||||
Intangible assets | 1,546 | 1,546 | 1,546 | 1,546 | 1,546 | ||||||||||||||
Right-of-use assets | 4,053 | 4,154 | 4,255 | 4,355 | 4,454 | ||||||||||||||
Other assets | 11,619 | 8,231 | 9,192 | 8,813 | 8,438 | ||||||||||||||
Total Assets | $ | 2,820,672 | $ | 2,642,634 | $ | 2,490,928 | $ | 2,361,866 | $ | 2,010,701 | |||||||||
LIABILITIES | |||||||||||||||||||
Noninterest-bearing deposits | $ | 1,015,350 | $ | 943,615 | $ | 923,286 | $ | 858,397 | $ | 607,322 | |||||||||
Interest-bearing deposits | 1,499,925 | 1,396,745 | 1,270,654 | 1,210,925 | 1,120,460 | ||||||||||||||
Total Deposits | 2,515,275 | 2,340,360 | 2,193,940 | 2,069,322 | 1,727,782 | ||||||||||||||
Accrued interest payable | 1,699 | 1,774 | 1,805 | 1,994 | 2,307 | ||||||||||||||
Lease liabilities | 4,138 | 4,233 | 4,327 | 4,419 | 4,511 | ||||||||||||||
Accrued expenses and other liabilities | 14,649 | 10,789 | 12,778 | 15,014 | 11,926 | ||||||||||||||
Total Liabilities | 2,535,761 | 2,357,156 | 2,212,850 | 2,090,749 | 1,746,526 | ||||||||||||||
COMMITMENTS AND CONTINGENCIES | — | — | — | — | — | ||||||||||||||
STOCKHOLDERS' EQUITY | |||||||||||||||||||
Preferred stock, no par value | — | — | — | — | — | ||||||||||||||
Common stock, no par value | 67,093 | 68,055 | 68,055 | 68,177 | 68,177 | ||||||||||||||
Additional paid-in capital | 1,638 | 1,545 | 1,487 | 1,429 | 1,333 | ||||||||||||||
Retained earnings | 216,511 | 208,957 | 202,136 | 195,291 | 188,877 | ||||||||||||||
Accumulated other comprehensive income (loss) | (331 | ) | 6,921 | 6,400 | 6,220 | 5,788 | |||||||||||||
Total Stockholders' Equity | 284,911 | 285,478 | 278,078 | 271,117 | 264,175 | ||||||||||||||
Total Liabilities and Stockholders' Equity | $ | 2,820,672 | $ | 2,642,634 | $ | 2,490,928 | $ | 2,361,866 | $ | 2,010,701 |
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) | |||||||||||
For the Three Months Ended | |||||||||||
(in thousands) |
2021 |
2020 |
2020 |
||||||||
INTEREST AND DIVIDEND INCOME | |||||||||||
Interest and fees on loans | $ | 17,165 | $ | 18,605 | $ | 16,466 | |||||
Interest on securities | 1,890 | 1,834 | 1,791 | ||||||||
Interest on federal funds sold | 22 | 28 | 113 | ||||||||
Interest on deposits in other banks | 100 | 58 | 206 | ||||||||
Dividends on stock | 1 | 1 | 4 | ||||||||
Total Interest and Dividend Income | 19,178 | 20,526 | 18,580 | ||||||||
INTEREST EXPENSE | |||||||||||
Interest on deposits | 1,587 | 1,865 | 2,492 | ||||||||
Total Interest Expense | 1,587 | 1,865 | 2,492 | ||||||||
Net Interest Income | 17,591 | 18,661 | 16,088 | ||||||||
Provision for loan losses | 1,450 | 2,675 | 503 | ||||||||
Net Interest Income After Provision for Loan Losses | 16,141 | 15,986 | 15,585 | ||||||||
NONINTEREST INCOME | |||||||||||
Service charges on deposit accounts | 1,059 | 1,107 | 1,228 | ||||||||
Debit card income, net | 1,046 | 1,011 | 755 | ||||||||
Mortgage loan income | 2,882 | 2,679 | 889 | ||||||||
Brokerage income | 834 | 598 | 744 | ||||||||
Loan and deposit income | 473 | 361 | 300 | ||||||||
Bank-owned life insurance income | 133 | 143 | 142 | ||||||||
Gain (Loss) on equity securities | (70 | ) | (11 | ) | 63 | ||||||
Gain (Loss) on sale of securities | 159 | 93 | 383 | ||||||||
SBIC income | 241 | 207 | 178 | ||||||||
Other income | 18 | 5 | 49 | ||||||||
Total Noninterest Income | 6,775 | 6,193 | 4,731 | ||||||||
OPERATING EXPENSES | |||||||||||
Personnel expenses | 8,021 | 8,089 | 7,348 | ||||||||
Occupancy and equipment expenses | 1,278 | 1,367 | 1,185 | ||||||||
Technology expenses | 665 | 680 | 586 | ||||||||
Advertising | 183 | 216 | 261 | ||||||||
Other business development expenses | 299 | 238 | 295 | ||||||||
Data processing expense | 385 | 493 | 450 | ||||||||
Other taxes | 525 | 425 | 437 | ||||||||
Loan and deposit expenses | 255 | 244 | 246 | ||||||||
Legal and professional expenses | 368 | 554 | 495 | ||||||||
Regulatory assessment expenses | 201 | 201 | 26 | ||||||||
Other operating expenses | 983 | 829 | 621 | ||||||||
Total Operating Expenses | 13,163 | 13,336 | 11,950 | ||||||||
Income Before Income Tax Expense | 9,753 | 8,843 | 8,366 | ||||||||
Income tax expense | 1,688 | 1,582 | 1,621 | ||||||||
Net Income | $ | 8,065 | $ | 7,261 | $ | 6,745 |
NET INTEREST INCOME AND NET INTEREST MARGIN (UNAUDITED) | ||||||||||||||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||||||||||||||
(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 |
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Assets | ||||||||||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||||||||||
Loans(1,2) | $ | 1,594,796 | $ | 17,165 | 4.31 | % | $ | 1,635,103 | $ | 18,605 | 4.47 | % | $ | 1,449,995 | $ | 16,466 | 4.50 | % | ||||||||||||||
Securities - taxable | 295,501 | 862 | 1.17 | % | 303,689 | 873 | 1.15 | % | 262,417 | 1,267 | 1.93 | % | ||||||||||||||||||||
Securities - tax-exempt | 195,406 | 1,028 | 2.10 | % | 169,621 | 961 | 2.27 | % | 86,891 | 524 | 2.41 | % | ||||||||||||||||||||
Federal funds sold | 77,484 | 22 | 0.11 | % | 80,175 | 28 | 0.14 | % | 34,030 | 113 | 1.32 | % | ||||||||||||||||||||
Interest-bearing balances due from banks | 447,265 | 100 | 0.09 | % | 239,953 | 58 | 0.09 | % | 59,756 | 206 | 1.36 | % | ||||||||||||||||||||
Nonmarketable equity securities | 3,447 | 1 | 0.13 | % | 3,446 | 1 | 0.13 | % | 1,351 | 4 | 1.07 | % | ||||||||||||||||||||
Total interest-earning assets | 2,613,899 | $ | 19,178 | 2.94 | % | 2,431,987 | $ | 20,526 | 3.32 | % | 1,894,440 | $ | 18,580 | 3.89 | % | |||||||||||||||||
Allowance for loan losses | (18,669 | ) | (16,653 | ) | (14,078 | ) | ||||||||||||||||||||||||||
Noninterest earning assets | 133,381 | 131,220 | 115,245 | |||||||||||||||||||||||||||||
Total assets | $ | 2,728,611 | $ | 2,546,554 | $ | 1,995,607 | ||||||||||||||||||||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||
Interest-bearing transaction deposits | $ | 1,124,341 | $ | 479 | 0.17 | % | $ | 983,992 | $ | 610 | 0.25 | % | $ | 795,390 | $ | 986 | 0.50 | % | ||||||||||||||
Time deposits | 340,705 | 1,108 | 1.32 | % | 333,575 | 1,255 | 1.50 | % | 335,629 | 1,506 | 1.81 | % | ||||||||||||||||||||
Total interest-bearing deposits | 1,465,046 | 1,587 | 0.44 | % | 1,317,567 | 1,865 | 0.56 | % | 1,131,019 | 2,492 | 0.89 | % | ||||||||||||||||||||
Other borrowings | — | — | — | % | — | — | — | % | 80 | — | 0.55 | % | ||||||||||||||||||||
Total interest-bearing liabilities | 1,465,046 | $ | 1,587 | 0.44 | % | 1,317,567 | $ | 1,865 | 0.56 | % | 1,131,099 | $ | 2,492 | 0.89 | % | |||||||||||||||||
Noninterest-bearing liabilities: | ||||||||||||||||||||||||||||||||
Noninterest-bearing deposits | 956,612 | 927,123 | 590,370 | |||||||||||||||||||||||||||||
Accrued interest and other liabilities | 18,187 | 19,468 | 16,584 | |||||||||||||||||||||||||||||
Total noninterest-bearing liabilities: | 974,799 | 946,591 | 606,954 | |||||||||||||||||||||||||||||
Stockholders’ equity | 288,766 | 282,396 | 257,554 | |||||||||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 2,728,611 | $ | 2,546,554 | $ | 1,995,607 | ||||||||||||||||||||||||||
Net interest income | $ | 17,591 | $ | 18,661 | $ | 16,088 | ||||||||||||||||||||||||||
Net interest spread | 2.50 | % | 2.76 | % | 3.00 | % | ||||||||||||||||||||||||||
Net interest margin | 2.69 | % | 3.01 | % | 3.36 | % | ||||||||||||||||||||||||||
Net interest margin FTE(3) | 2.76 | % | 3.08 | % | 3.41 | % | ||||||||||||||||||||||||||
Cost of deposits | 0.27 | % | 0.33 | % | 0.58 | % | ||||||||||||||||||||||||||
Cost of funds | 0.25 | % | 0.31 | % | 0.53 | % |
(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 21% federal income tax rate on tax-exempt securities and tax-exempt loans. |
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 |
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For the Three Months Ended | ||||||||||||||||||||||||||||||||
(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 |
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Loans(1,2) | $ | 1,594,796 | $ | 17,165 | 4.31 | % | $ | 1,635,103 | $ | 18,605 | 4.47 | % | $ | 1,449,995 | $ | 16,466 | 4.50 | % | ||||||||||||||
Less: PPP loans, net | ||||||||||||||||||||||||||||||||
Average | 108,334 | 161,109 | — | |||||||||||||||||||||||||||||
Interest | 284 | 419 | — | |||||||||||||||||||||||||||||
Fees | 1,848 | 2,604 | — | |||||||||||||||||||||||||||||
Total PPP loans, net | 108,334 | 2,132 | 7.97 | % | 161,109 | 3,023 | 7.45 | % | — | — | — | % | ||||||||||||||||||||
Non-PPP loans (non-GAAP)(4) | $ | 1,486,462 | $ | 15,033 | 4.05 | % | $ | 1,473,994 | $ | 15,582 | 4.14 | % | $ | 1,449,995 | $ | 16,466 | 4.50 | % | ||||||||||||||
Ratios excluding PPP loans, net (non-GAAP)(4) | ||||||||||||||||||||||||||||||||
Net interest spread | 2.28 | % | 2.47 | % | 3.00 | % | ||||||||||||||||||||||||||
Net interest margin | 2.47 | % | 2.70 | % | 3.36 | % | ||||||||||||||||||||||||||
Net interest margin FTE(3) | 2.53 | % | 2.77 | % | 3.41 | % |
(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 21% federal income tax rate on tax-exempt securities and tax-exempt loans. |
(4) | Non-GAAP financial measure. |
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED) | ||||||||||||||
(dollars in thousands, except per share data) | 2021 |
2020 |
2020 |
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Tangible common equity | ||||||||||||||
Total stockholders' equity | $ | 284,911 | $ | 285,478 | $ | 264,175 | ||||||||
Adjustments: | ||||||||||||||
Intangible assets | (1,546 | ) | (1,546 | ) | (1,546 | ) | ||||||||
Total tangible common equity (non-GAAP) | $ | 283,365 | $ | 283,932 | $ | 262,629 | ||||||||
Common shares outstanding | 7,306,747 | 7,325,333 | 7,322,532 | |||||||||||
Book value per common share | $ | 38.99 | $ | 38.97 | $ | 36.08 | ||||||||
Tangible book value per common share (non-GAAP) | $ | 38.78 | $ | 38.76 | $ | 35.87 | ||||||||
Tangible assets | ||||||||||||||
Total assets | $ | 2,820,672 | $ | 2,642,634 | $ | 2,010,701 | ||||||||
Adjustments: | ||||||||||||||
Intangible assets | (1,546 | ) | (1,546 | ) | (1,546 | ) | ||||||||
Total tangible assets (non-GAAP) | $ | 2,819,126 | $ | 2,641,088 | $ | 2,009,155 | ||||||||
Total stockholders' equity to assets | 10.10 | % | 10.80 | % | 13.14 | % | ||||||||
Tangible common equity to tangible assets (non-GAAP) | 10.05 | % | 10.75 | % | 13.07 | % | ||||||||
Non-PPP loans HFI | ||||||||||||||
Loans HFI | $ | 1,602,086 | $ | 1,588,446 | $ | 1,447,362 | ||||||||
Adjustments: | ||||||||||||||
PPP loans, net | (119,358 | ) | (118,447 | ) | — | |||||||||
Non-PPP loans HFI (non-GAAP) | $ | 1,482,728 | $ | 1,469,999 | $ | 1,447,362 | ||||||||
Assets excluding PPP loans, net | ||||||||||||||
Assets | $ | 2,820,672 | $ | 2,642,634 | $ | 2,010,701 | ||||||||
Adjustments: | ||||||||||||||
PPP loans, net | (119,358 | ) | (118,447 | ) | — | |||||||||
Assets excluding PPP loans, net (non-GAAP) | $ | 2,701,314 | $ | 2,524,187 | $ | 2,010,701 | ||||||||
Allowance for loan losses | $ | 19,377 | $ | 17,951 | $ | 14,393 | ||||||||
Deposits | $ | 2,515,275 | $ | 2,340,360 | $ | 1,727,782 | ||||||||
Loans HFI to deposits ratio | 63.69 | % | 67.87 | % | 83.77 | % | ||||||||
Non-PPP loans HFI to deposits ratio (non-GAAP) | 58.95 | % | 62.81 | % | 83.77 | % | ||||||||
Allowance for loan losses to loans HFI | 1.21 | % | 1.13 | % | 0.99 | % | ||||||||
Allowance for loan losses to non-PPP loans HFI (non-GAAP) | 1.31 | % | 1.22 | % | 0.99 | % |
Red River Bank