Red River Bancshares, Inc. Reports Fourth Quarter and Year-End 2020 Financial Results
Net income for the fourth quarter of 2020 was
Net income for the twelve months ended
Fourth Quarter and Year-End 2020 Performance and Operational Highlights
The fourth quarter of 2020 included progress on the
- Net income for the fourth quarter of 2020 was
$7.3 million , consistent with net income for the prior quarter. An increase in PPP loan income was mainly offset by higher provision for loan loss expense. - Assets increased
$151.7 million in the fourth quarter to$2.64 billion as ofDecember 31, 2020 , driven by a$146.4 million increase in deposits. The deposit growth in the fourth quarter of 2020 was primarily a result of consumer customers maintaining higher deposit balances combined with the seasonal inflow of funds from public entity customers. - During 2020,
Red River Bank participated in the SBA PPP. OnSeptember 14, 2020 , we began accepting PPP loan forgiveness applications from our borrowers. In the fourth quarter of 2020, the SBA began approving our initial forgiveness applications, and we received$77.7 million of PPP loan payments. This resulted in higher PPP loan income in the fourth quarter. - The net interest margin fully tax equivalent ("FTE") for the fourth quarter benefited from higher PPP loan income due to PPP loan forgiveness payments. The net interest margin FTE for the fourth quarter was 3.08%, compared to 3.02% for the prior quarter.
- Due to the expected economic pressures relating to the COVID-19 pandemic, we funded the allowance for loan losses by increasing the provision for loan losses for the quarter and year ended
December 31, 2020 . - Mortgage loan production and income in 2020 were at record high levels for the Company.
- Nonperforming assets ("NPA(s)") decreased
$1.0 million in the fourth quarter and were$4.2 million , or 0.16% of assets, as ofDecember 31, 2020 . - As of
December 31, 2020 , active pandemic-related loan deferrals were$12.5 million , or 0.8% of non-PPP loans held for investment ("HFI") (non-GAAP), down from$23.3 million , or 1.6% of non-PPP loans HFI (non-GAAP), as ofSeptember 30, 2020 . - In the fourth quarter of 2020, as part of our continued
Louisiana market expansion, we purchased banking center locations inLafayette andLake Charles, Louisiana . TheLafayette location is expected to open in the summer of 2021 as our first full-service banking center in our new Acadiana market, pending receipt of all regulatory approvals. Also, theLake Charles location is expected to open as a full-service banking center in the second quarter of 2021 as the third banking center in our Southwest market, pending receipt of all regulatory approvals.
"Additionally, we were pleased to announce our expansion in our Acadiana and
"We are greatly saddened by the loss of our longtime friend, supporter, and director on
"As we begin 2021, we are hopeful that vaccinations will be successful and allow our customers and our communities to resume normal activities as the year progresses."
Net Interest Income and Net Interest Margin FTE
Net interest income and net interest margin FTE for the fourth quarter of 2020 benefited from the forgiveness of PPP loans resulting in higher PPP loan income. PPP loans have a 1.0% interest rate, and PPP origination fees totaled
Net interest income for the fourth quarter of 2020 was
The net interest margin FTE increased six basis points ("bp(s)") to 3.08% for the fourth quarter of 2020, compared to 3.02% for the prior quarter, as our interest-earning assets benefited from higher PPP loan income, and the rate on our interest-bearing deposits decreased. The yield on loans increased by 43 bps due to a
Excluding PPP loan income, net interest income (non-GAAP) for the fourth quarter of 2020 was
Provision for Loan Losses
The provision for loan losses was higher in 2020 due to expected economic pressures relating to the continuing COVID-19 pandemic. Provision expense for 2020 was
Noninterest Income
Noninterest income totaled
Due to the low mortgage interest rate environment in 2020, mortgage loan production and income have been at record high levels. For the twelve months ended
Loan and deposit income totaled
Service charges on deposit accounts totaled
Operating Expenses
Operating expenses for the fourth quarter of 2020 totaled
Legal and professional expenses totaled
Occupancy and equipment expenses for the fourth quarter of 2020 totaled
Personnel expenses 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,
During 2020, we granted 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 | $ | 26,722 | 1.9 | % | ||
Restaurants - full service | 11,901 | 0.8 | % | |||
Restaurants - limited service | 12,467 | 0.8 | % | |||
Other | 7,194 | 0.5 | % | |||
Total hospitality services | $ | 58,284 | 4.0 | % | ||
Retail trade: | ||||||
Automobile dealers | $ | 35,460 | 2.4 | % | ||
Other retail | 21,120 | 1.4 | % | |||
Total retail trade | $ | 56,580 | 3.8 | % | ||
Energy | $ | 20,351 | 1.4 | % |
Loan payment deferments in the hospitality services sector represents 65.0% 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 | $ | 38,923 | 2.6 | % | ||
Credit card loans: | ||||||
Commercial | $ | 1,499 | 0.1 | % | ||
Consumer | 958 | 0.1 | % | |||
Total credit card loans | $ | 2,457 | 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
The net charge-off ratio was 0.06% for the fourth quarter of 2020, 0.02% for the third quarter of 2020, and 0.14% for the twelve months ended
Deposits
Deposits as of
Noninterest-bearing deposits totaled
Interest-bearing deposits totaled
Stockholders’ Equity
Total stockholders’ equity increased to
Non-GAAP Disclosure
Our accounting and reporting policies conform to
Management and the board of directors review tangible book value per share and tangible common equity to tangible assets, and PPP-adjusted metrics as part of managing operating performance. However, these non-GAAP financial measures should not be considered in isolation or as a substitute for the most directly comparable or other financial measures calculated in accordance with GAAP. Moreover, the manner in which we calculate the non-GAAP financial measures that are discussed may differ from that of other companies reporting measures with similar names. It is important to understand how such other banking organizations calculate and name their financial measures similar to the non-GAAP financial measures discussed by us when comparing such non-GAAP financial measures.
A reconciliation of non-GAAP financial measures to the comparable GAAP financial measures is included at the end of the financial statement tables.
(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 |
As of and for the Twelve Months Ended |
||||||||||||||||||
(Dollars in thousands, except per share data) | 2020 |
2020 |
2019 |
2020 |
2019 |
||||||||||||||
Net Income | $ | 7,261 | $ | 7,285 | $ | 6,743 | $ | 28,145 | $ | 24,824 | |||||||||
Per Common Share Data: | |||||||||||||||||||
Earnings per share, basic | $ | 0.99 | $ | 0.99 | $ | 0.92 | $ | 3.84 | $ | 3.51 | |||||||||
Earnings per share, diluted | $ | 0.99 | $ | 0.99 | $ | 0.92 | $ | 3.83 | $ | 3.49 | |||||||||
Book value per share | $ | 38.97 | $ | 37.96 | $ | 34.48 | $ | 38.97 | $ | 34.48 | |||||||||
Tangible book value per share(1) | $ | 38.76 | $ | 37.75 | $ | 34.27 | $ | 38.76 | $ | 34.27 | |||||||||
Cash dividends per share | $ | 0.06 | $ | 0.06 | $ | — | $ | 0.24 | $ | 0.20 | |||||||||
Shares outstanding | 7,325,333 | 7,325,333 | 7,306,221 | 7,325,333 | 7,306,221 | ||||||||||||||
Weighted average shares outstanding, basic | 7,325,333 | 7,327,395 | 7,306,221 | 7,322,158 | 7,072,689 | ||||||||||||||
Weighted average shares outstanding, diluted | 7,343,859 | 7,342,678 | 7,347,602 | 7,345,045 | 7,115,514 | ||||||||||||||
Summary Performance Ratios: | |||||||||||||||||||
Return on average assets | 1.13 | % | 1.20 | % | 1.37 | % | 1.22 | % | 1.30 | % | |||||||||
Return on average equity | 10.23 | % | 10.50 | % | 10.72 | % | 10.39 | % | 10.86 | % | |||||||||
Net interest margin | 3.01 | % | 2.96 | % | 3.45 | % | 3.09 | % | 3.47 | % | |||||||||
Net interest margin FTE | 3.08 | % | 3.02 | % | 3.50 | % | 3.14 | % | 3.52 | % | |||||||||
Efficiency ratio | 53.66 | % | 55.88 | % | 57.90 | % | 55.77 | % | 59.46 | % | |||||||||
Loans HFI to deposits ratio | 67.87 | % | 75.17 | % | 83.60 | % | 67.87 | % | 83.60 | % | |||||||||
Noninterest-bearing deposits to deposits ratio | 40.32 | % | 42.08 | % | 33.98 | % | 40.32 | % | 33.98 | % | |||||||||
Noninterest income to average assets | 0.97 | % | 1.06 | % | 0.85 | % | 1.00 | % | 0.84 | % | |||||||||
Operating expense to average assets | 2.08 | % | 2.19 | % | 2.41 | % | 2.22 | % | 2.49 | % | |||||||||
Summary Credit Quality Ratios: | |||||||||||||||||||
Nonperforming assets to total assets | 0.16 | % | 0.21 | % | 0.33 | % | 0.16 | % | 0.33 | % | |||||||||
Nonperforming loans to loans HFI | 0.21 | % | 0.27 | % | 0.37 | % | 0.21 | % | 0.37 | % | |||||||||
Allowance for loan losses to loans HFI | 1.13 | % | 0.98 | % | 0.97 | % | 1.13 | % | 0.97 | % | |||||||||
Net charge-offs to average loans | 0.06 | % | 0.02 | % | 0.02 | % | 0.14 | % | 0.03 | % | |||||||||
Capital Ratios: | |||||||||||||||||||
Total stockholders' equity to total assets | 10.80 | % | 11.16 | % | 12.67 | % | 10.80 | % | 12.67 | % | |||||||||
Tangible common equity to tangible assets (1) | 10.75 | % | 11.11 | % | 12.60 | % | 10.75 | % | 12.60 | % | |||||||||
Total risk-based capital to risk-weighted assets | 18.68 | % | 18.17 | % | 18.02 | % | 18.68 | % | 18.02 | % | |||||||||
Tier 1 risk-based capital to risk-weighted assets | 17.55 | % | 17.15 | % | 17.07 | % | 17.55 | % | 17.07 | % | |||||||||
Common equity Tier 1 capital to risk-weighted assets | 17.55 | % | 17.15 | % | 17.07 | % | 17.55 | % | 17.07 | % | |||||||||
Tier 1 risk-based capital to average assets | 10.92 | % | 11.26 | % | 12.82 | % | 10.92 | % | 12.82 | % |
(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) | 2020 |
2020 |
2020 |
2020 |
2019 |
||||||||||||||
ASSETS | |||||||||||||||||||
Cash and due from banks | $ | 29,537 | $ | 31,422 | $ | 31,097 | $ | 31,858 | $ | 25,937 | |||||||||
Interest-bearing deposits in other banks | 417,664 | 239,466 | 210,254 | 48,605 | 107,355 | ||||||||||||||
Securities available-for-sale | 498,206 | 467,744 | 413,246 | 401,944 | 335,573 | ||||||||||||||
Equity securities | 4,021 | 4,032 | 4,032 | 3,998 | 3,936 | ||||||||||||||
Nonmarketable equity securities | 3,447 | 3,445 | 3,441 | 1,354 | 1,350 | ||||||||||||||
Loans held for sale | 29,116 | 23,358 | 14,578 | 6,597 | 5,089 | ||||||||||||||
Loans held for investment | 1,588,446 | 1,649,272 | 1,615,298 | 1,447,362 | 1,438,924 | ||||||||||||||
Allowance for loan losses | (17,951 | ) | (16,192 | ) | (14,882 | ) | (14,393 | ) | (13,937 | ) | |||||||||
Premises and equipment, net | 46,924 | 44,501 | 41,465 | 41,711 | 41,744 | ||||||||||||||
Accrued interest receivable | 6,880 | 6,617 | 6,492 | 5,240 | 5,251 | ||||||||||||||
Bank-owned life insurance | 22,413 | 22,270 | 22,131 | 21,987 | 21,845 | ||||||||||||||
Intangible assets | 1,546 | 1,546 | 1,546 | 1,546 | 1,546 | ||||||||||||||
Right-of-use assets | 4,154 | 4,255 | 4,355 | 4,454 | 4,553 | ||||||||||||||
Other assets | 8,231 | 9,192 | 8,813 | 8,438 | 9,059 | ||||||||||||||
Total Assets | $ | 2,642,634 | $ | 2,490,928 | $ | 2,361,866 | $ | 2,010,701 | $ | 1,988,225 | |||||||||
LIABILITIES | |||||||||||||||||||
Noninterest-bearing deposits | $ | 943,615 | $ | 923,286 | $ | 858,397 | $ | 607,322 | $ | 584,915 | |||||||||
Interest-bearing deposits | 1,396,745 | 1,270,654 | 1,210,925 | 1,120,460 | 1,136,205 | ||||||||||||||
Total Deposits | 2,340,360 | 2,193,940 | 2,069,322 | 1,727,782 | 1,721,120 | ||||||||||||||
Accrued interest payable | 1,774 | 1,805 | 1,994 | 2,307 | 2,222 | ||||||||||||||
Lease liabilities | 4,233 | 4,327 | 4,419 | 4,511 | 4,603 | ||||||||||||||
Accrued expenses and other liabilities | 10,789 | 12,778 | 15,014 | 11,926 | 8,382 | ||||||||||||||
Total Liabilities | 2,357,156 | 2,212,850 | 2,090,749 | 1,746,526 | 1,736,327 | ||||||||||||||
COMMITMENTS AND CONTINGENCIES | — | — | — | — | — | ||||||||||||||
STOCKHOLDERS' EQUITY | |||||||||||||||||||
Preferred stock, no par value | — | — | — | — | — | ||||||||||||||
Common stock, no par value | 68,055 | 68,055 | 68,177 | 68,177 | 68,082 | ||||||||||||||
Additional paid-in capital | 1,545 | 1,487 | 1,429 | 1,333 | 1,269 | ||||||||||||||
Retained earnings | 208,957 | 202,136 | 195,291 | 188,877 | 182,571 | ||||||||||||||
Accumulated other comprehensive income (loss) | 6,921 | 6,400 | 6,220 | 5,788 | (24 | ) | |||||||||||||
Total Stockholders' Equity | 285,478 | 278,078 | 271,117 | 264,175 | 251,898 | ||||||||||||||
Total Liabilities and Stockholders' Equity | $ | 2,642,634 | $ | 2,490,928 | $ | 2,361,866 | $ | 2,010,701 | $ | 1,988,225 |
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) | |||||||||||||||||||
For the Three Months Ended | For the Twelve Months Ended | ||||||||||||||||||
(in thousands) | |||||||||||||||||||
INTEREST AND DIVIDEND INCOME | |||||||||||||||||||
Interest and fees on loans | $ | 18,605 | $ | 17,080 | $ | 16,544 | $ | 69,228 | $ | 64,570 | |||||||||
Interest on securities | 1,834 | 2,099 | 1,894 | 7,601 | 7,241 | ||||||||||||||
Interest on federal funds sold | 28 | 30 | 150 | 207 | 753 | ||||||||||||||
Interest on deposits in other banks | 58 | 27 | 192 | 322 | 1,127 | ||||||||||||||
Dividends on stock | 1 | 13 | 4 | 20 | 34 | ||||||||||||||
Total Interest and Dividend Income | 20,526 | 19,249 | 18,784 | 77,378 | 73,725 | ||||||||||||||
INTEREST EXPENSE | |||||||||||||||||||
Interest on deposits | 1,865 | 1,954 | 2,441 | 8,362 | 9,701 | ||||||||||||||
Interest on other borrowed funds | — | — | — | 16 | — | ||||||||||||||
Interest on junior subordinated debentures | — | — | — | — | 385 | ||||||||||||||
Total Interest Expense | 1,865 | 1,954 | 2,441 | 8,378 | 10,086 | ||||||||||||||
Net Interest Income | 18,661 | 17,295 | 16,343 | 69,000 | 63,639 | ||||||||||||||
Provision for loan losses | 2,675 | 1,590 | 378 | 6,293 | 1,810 | ||||||||||||||
Net Interest Income After Provision for Loan Losses | 15,986 | 15,705 | 15,965 | 62,707 | 61,829 | ||||||||||||||
NONINTEREST INCOME | |||||||||||||||||||
Service charges on deposit accounts | 1,107 | 1,055 | 1,270 | 4,108 | 4,573 | ||||||||||||||
Debit card income, net | 1,011 | 978 | 782 | 3,641 | 3,095 | ||||||||||||||
Mortgage loan income | 2,679 | 2,884 | 816 | 8,398 | 3,002 | ||||||||||||||
Brokerage income | 598 | 586 | 573 | 2,324 | 2,125 | ||||||||||||||
Loan and deposit income | 361 | 413 | 389 | 1,701 | 1,521 | ||||||||||||||
Bank-owned life insurance income | 143 | 139 | 137 | 568 | 544 | ||||||||||||||
Gain (Loss) on equity securities | (11 | ) | — | (19 | ) | 85 | 115 | ||||||||||||
Gain (Loss) on sale of securities | 93 | 125 | 13 | 1,441 | 18 | ||||||||||||||
SBIC income | 207 | 200 | 185 | 775 | 819 | ||||||||||||||
Other income | 5 | 40 | 43 | 126 | 158 | ||||||||||||||
Total Noninterest Income | 6,193 | 6,420 | 4,189 | 23,167 | 15,970 | ||||||||||||||
OPERATING EXPENSES | |||||||||||||||||||
Personnel expenses | 8,089 | 8,077 | 7,148 | 31,160 | 27,800 | ||||||||||||||
Occupancy and equipment expenses | 1,367 | 1,319 | 1,268 | 5,106 | 4,976 | ||||||||||||||
Technology expenses | 680 | 661 | 596 | 2,542 | 2,293 | ||||||||||||||
Advertising | 216 | 240 | 204 | 933 | 1,025 | ||||||||||||||
Other business development expenses | 238 | 233 | 281 | 1,020 | 1,107 | ||||||||||||||
Data processing expense | 493 | 491 | 462 | 1,905 | 1,882 | ||||||||||||||
Other taxes | 425 | 433 | 346 | 1,733 | 1,579 | ||||||||||||||
Loan and deposit expenses | 244 | 289 | 247 | 1,052 | 1,148 | ||||||||||||||
Legal and professional expenses | 554 | 487 | 403 | 2,141 | 1,541 | ||||||||||||||
Regulatory assessment expenses | 201 | 172 | 38 | 538 | 351 | ||||||||||||||
Other operating expenses | 829 | 849 | 895 | 3,276 | 3,633 | ||||||||||||||
Total Operating Expenses | 13,336 | 13,251 | 11,888 | 51,406 | 47,335 | ||||||||||||||
Income Before Income Tax Expense | 8,843 | 8,874 | 8,266 | 34,468 | 30,464 | ||||||||||||||
Income tax expense | 1,582 | 1,589 | 1,523 | 6,323 | 5,640 | ||||||||||||||
Net Income | $ | 7,261 | $ | 7,285 | $ | 6,743 | $ | 28,145 | $ | 24,824 | |||||||||
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 |
|||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||||||||||
Loans(1,2) | $ | 1,635,103 | $ | 18,605 | 4.47 | % | $ | 1,656,586 | $ | 17,080 | 4.04 | % | $ | 1,428,978 | $ | 16,544 | 4.53 | % | ||||||||||||||
Securities - taxable | 303,689 | 873 | 1.15 | % | 317,612 | 1,240 | 1.56 | % | 258,491 | 1,392 | 2.15 | % | ||||||||||||||||||||
Securities - tax-exempt | 169,621 | 961 | 2.27 | % | 146,477 | 859 | 2.35 | % | 85,749 | 502 | 2.34 | % | ||||||||||||||||||||
Federal funds sold | 80,175 | 28 | 0.14 | % | 73,644 | 30 | 0.16 | % | 36,470 | 150 | 1.61 | % | ||||||||||||||||||||
Interest-bearing balances due from banks | 239,953 | 58 | 0.09 | % | 97,687 | 27 | 0.11 | % | 45,565 | 192 | 1.65 | % | ||||||||||||||||||||
Nonmarketable equity securities | 3,446 | 1 | 0.13 | % | 3,441 | 13 | 1.51 | % | 1,346 | 4 | 1.19 | % | ||||||||||||||||||||
Total interest-earning assets | 2,431,987 | $ | 20,526 | 3.32 | % | 2,295,447 | $ | 19,249 | 3.30 | % | 1,856,599 | $ | 18,784 | 3.97 | % | |||||||||||||||||
Allowance for loan losses | (16,653 | ) | (15,525 | ) | (13,969 | ) | ||||||||||||||||||||||||||
Noninterest earning assets | 131,220 | 128,910 | 112,130 | |||||||||||||||||||||||||||||
Total assets | $ | 2,546,554 | $ | 2,408,832 | $ | 1,954,760 | ||||||||||||||||||||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||
Interest-bearing transaction deposits | $ | 983,992 | $ | 610 | 0.25 | % | $ | 891,840 | $ | 617 | 0.28 | % | $ | 747,293 | $ | 968 | 0.51 | % | ||||||||||||||
Time deposits | 333,575 | 1,255 | 1.50 | % | 330,576 | 1,337 | 1.61 | % | 334,499 | 1,473 | 1.75 | % | ||||||||||||||||||||
Total interest-bearing deposits | 1,317,567 | 1,865 | 0.56 | % | 1,222,416 | 1,954 | 0.64 | % | 1,081,792 | 2,441 | 0.90 | % | ||||||||||||||||||||
Other borrowings | — | — | — | % | — | — | — | % | — | — | — | % | ||||||||||||||||||||
Total interest-bearing liabilities | 1,317,567 | $ | 1,865 | 0.56 | % | 1,222,416 | $ | 1,954 | 0.64 | % | 1,081,792 | $ | 2,441 | 0.90 | % | |||||||||||||||||
Noninterest-bearing liabilities: | ||||||||||||||||||||||||||||||||
Noninterest-bearing deposits | 927,123 | 891,850 | 606,329 | |||||||||||||||||||||||||||||
Accrued interest and other liabilities | 19,468 | 18,541 | 17,191 | |||||||||||||||||||||||||||||
Total noninterest-bearing liabilities: | 946,591 | 910,391 | 623,520 | |||||||||||||||||||||||||||||
Stockholders’ equity | 282,396 | 276,025 | 249,448 | |||||||||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 2,546,554 | $ | 2,408,832 | $ | 1,954,760 | ||||||||||||||||||||||||||
Net interest income | $ | 18,661 | $ | 17,295 | $ | 16,343 | ||||||||||||||||||||||||||
Net interest spread | 2.76 | % | 2.66 | % | 3.07 | % | ||||||||||||||||||||||||||
Net interest margin | 3.01 | % | 2.96 | % | 3.45 | % | ||||||||||||||||||||||||||
Net interest margin FTE(3) | 3.08 | % | 3.02 | % | 3.50 | % | ||||||||||||||||||||||||||
Cost of deposits | 0.33 | % | 0.37 | % | 0.57 | % | ||||||||||||||||||||||||||
Cost of funds | 0.31 | % | 0.34 | % | 0.52 | % |
(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 |
|||||||||||||||||||||||
Loans(1,2) | $ | 1,635,103 | $ | 18,605 | 4.47 | % | $ | 1,656,586 | $ | 17,080 | 4.04 | % | $ | 1,428,978 | $ | 16,544 | 4.53 | % | ||||||||||||||
Less: PPP loans, net | ||||||||||||||||||||||||||||||||
Average | 161,109 | 193,038 | — | |||||||||||||||||||||||||||||
Interest | 419 | 509 | — | |||||||||||||||||||||||||||||
Fees | 2,604 | 877 | — | |||||||||||||||||||||||||||||
Total PPP loans, net | 161,109 | 3,023 | 7.45 | % | 193,038 | 1,386 | 2.84 | % | — | — | — | % | ||||||||||||||||||||
Non-PPP loans (non-GAAP)(4) | $ | 1,473,994 | $ | 15,582 | 4.14 | % | $ | 1,463,548 | $ | 15,694 | 4.20 | % | $ | 1,428,978 | $ | 16,544 | 4.53 | % | ||||||||||||||
Ratios excluding PPP loans, net (non-GAAP)(4) | ||||||||||||||||||||||||||||||||
Net interest spread | 2.47 | % | 2.70 | % | 3.07 | % | ||||||||||||||||||||||||||
Net interest margin | 2.70 | % | 2.97 | % | 3.45 | % | ||||||||||||||||||||||||||
Net interest margin FTE(3) | 2.77 | % | 3.03 | % | 3.50 | % |
(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.
NET INTEREST INCOME AND NET INTEREST MARGIN (UNAUDITED) | |||||||||||||||||||||
For the Twelve Months Ended |
|||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||
(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) | $ | 1,587,351 | $ | 69,228 | 4.30 | % | $ | 1,388,702 | $ | 64,570 | 4.59 | % | |||||||||
Securities - taxable | 287,591 | 4,598 | 1.60 | % | 257,090 | 5,466 | 2.13 | % | |||||||||||||
Securities - tax-exempt | 128,416 | 3,003 | 2.34 | % | 75,385 | 1,775 | 2.35 | % | |||||||||||||
Federal funds sold | 67,328 | 207 | 0.30 | % | 34,637 | 753 | 2.14 | % | |||||||||||||
Interest-bearing balances due from banks | 129,090 | 322 | 0.25 | % | 51,694 | 1,127 | 2.15 | % | |||||||||||||
Nonmarketable equity securities | 2,842 | 20 | 0.71 | % | 1,330 | 23 | 1.69 | % | |||||||||||||
Investment in trusts | — | — | — | % | 181 | 11 | 6.34 | % | |||||||||||||
Total interest-earning assets | 2,202,618 | $ | 77,378 | 3.47 | % | 1,809,019 | $ | 73,725 | 4.03 | % | |||||||||||
Allowance for loan losses | (15,192 | ) | (13,444 | ) | |||||||||||||||||
Noninterest earning assets | 125,028 | 107,390 | |||||||||||||||||||
Total assets | $ | 2,312,454 | $ | 1,902,965 | |||||||||||||||||
Liabilities and Stockholders’ Equity | |||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||
Interest-bearing transaction deposits | $ | 877,836 | $ | 2,824 | 0.32 | % | $ | 739,554 | $ | 3,898 | 0.53 | % | |||||||||
Time deposits | 333,260 | 5,538 | 1.66 | % | 335,024 | 5,803 | 1.73 | % | |||||||||||||
Total interest-bearing deposits | 1,211,096 | 8,362 | 0.69 | % | 1,074,578 | 9,701 | 0.90 | % | |||||||||||||
Junior subordinated debentures | — | — | — | % | 6,017 | 385 | 6.39 | % | |||||||||||||
Other borrowings | 4,664 | 16 | 0.35 | % | 5 | — | 2.80 | % | |||||||||||||
Total interest-bearing liabilities | 1,215,760 | $ | 8,378 | 0.69 | % | 1,080,600 | $ | 10,086 | 0.93 | % | |||||||||||
Noninterest-bearing liabilities: | |||||||||||||||||||||
Noninterest-bearing deposits | 807,528 | 577,701 | |||||||||||||||||||
Accrued interest and other liabilities | 18,192 | 16,118 | |||||||||||||||||||
Total noninterest-bearing liabilities: | 825,720 | 593,819 | |||||||||||||||||||
Stockholders’ equity | 270,974 | 228,546 | |||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 2,312,454 | $ | 1,902,965 | |||||||||||||||||
Net interest income | $ | 69,000 | $ | 63,639 | |||||||||||||||||
Net interest spread | 2.78 | % | 3.10 | % | |||||||||||||||||
Net interest margin | 3.09 | % | 3.47 | % | |||||||||||||||||
Net interest margin FTE(3) | 3.14 | % | 3.52 | % | |||||||||||||||||
Cost of deposits | 0.41 | % | 0.59 | % | |||||||||||||||||
Cost of funds | 0.38 | % | 0.56 | % |
(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 twelve months ended |
|||||||||||||||||||||
For the Twelve Months Ended |
|||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||
(dollars in thousands) | Average Balance Outstanding |
Interest/Fees Earned |
Average Yield |
Average Balance Outstanding |
Interest/Fees Earned |
Average Yield |
|||||||||||||||
Loans(1,2) | $ | 1,587,351 | $ | 69,228 | 4.30 | % | $ | 1,388,702 | $ | 64,570 | 4.59 | % | |||||||||
Less: PPP loans, net | |||||||||||||||||||||
Average | 127,410 | — | |||||||||||||||||||
Interest | 1,351 | — | |||||||||||||||||||
Fees | 4,211 | — | |||||||||||||||||||
Total PPP loans, net | 127,410 | 5,562 | 4.35 | % | — | — | — | % | |||||||||||||
Non-PPP loans (non-GAAP)(4) | $ | 1,459,941 | $ | 63,666 | 4.29 | % | $ | 1,388,702 | $ | 64,570 | 4.59 | % | |||||||||
Ratios excluding PPP loans, net (non-GAAP)(4) | |||||||||||||||||||||
Net interest spread | 2.72 | % | 3.10 | % | |||||||||||||||||
Net interest margin | 3.01 | % | 3.47 | % | |||||||||||||||||
Net interest margin FTE(3) | 3.07 | % | 3.52 | % |
(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.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED) | |||||||||||
(dollars in thousands except per share data) | 2020 |
2020 |
2019 |
||||||||
Tangible common equity | |||||||||||
Total stockholders' equity | $ | 285,478 | $ | 278,078 | $ | 251,898 | |||||
Adjustments: | |||||||||||
Intangible assets | (1,546 | ) | (1,546 | ) | (1,546 | ) | |||||
Total tangible common equity (non-GAAP) | $ | 283,932 | $ | 276,532 | $ | 250,352 | |||||
Common shares outstanding | 7,325,333 | 7,325,333 | 7,306,221 | ||||||||
Book value per common share | $ | 38.97 | $ | 37.96 | $ | 34.48 | |||||
Tangible book value per common share (non-GAAP) | $ | 38.76 | $ | 37.75 | $ | 34.27 | |||||
Tangible assets | |||||||||||
Total assets | $ | 2,642,634 | $ | 2,490,928 | $ | 1,988,225 | |||||
Adjustments: | |||||||||||
Intangible assets | (1,546 | ) | (1,546 | ) | (1,546 | ) | |||||
Total tangible assets (non-GAAP) | $ | 2,641,088 | $ | 2,489,382 | $ | 1,986,679 | |||||
Total stockholders' equity to assets | 10.80 | % | 11.16 | % | 12.67 | % | |||||
Tangible common equity to tangible assets (non-GAAP) | 10.75 | % | 11.11 | % | 12.60 | % | |||||
Non-PPP loans HFI | |||||||||||
Loans HFI | $ | 1,588,446 | $ | 1,649,272 | $ | 1,438,924 | |||||
Adjustments: | |||||||||||
PPP loans, net | (118,447 | ) | (193,532 | ) | — | ||||||
Non-PPP loans HFI (non-GAAP) | $ | 1,469,999 | $ | 1,455,740 | $ | 1,438,924 | |||||
Assets excluding PPP loans, net | |||||||||||
Assets | $ | 2,642,634 | $ | 2,490,928 | $ | 1,988,225 | |||||
Adjustments: | |||||||||||
PPP loans, net | (118,447 | ) | (193,532 | ) | — | ||||||
Assets excluding PPP loans, net (non-GAAP) | $ | 2,524,187 | $ | 2,297,396 | $ | 1,988,225 | |||||
Allowance for loan losses | $ | 17,951 | $ | 16,192 | $ | 13,937 | |||||
Deposits | $ | 2,340,360 | $ | 2,193,940 | $ | 1,721,120 | |||||
Loans HFI to deposits ratio | 67.87 | % | 75.17 | % | 83.60 | % | |||||
Non-PPP loans HFI to deposits ratio (non-GAAP) | 62.81 | % | 66.35 | % | 83.60 | % | |||||
Allowance for loan losses to loans HFI | 1.13 | % | 0.98 | % | 0.97 | % | |||||
Allowance for loan losses to non-PPP loans HFI (non-GAAP) | 1.22 | % | 1.11 | % | 0.97 | % |
Source: Red River Bank