Red River Bancshares, Inc. Reports Second Quarter 2022 Financial Results
Net income for the second quarter of 2022 was
Net income for the six months ended
Second Quarter 2022 Performance and Operational Highlights
The second quarter of 2022 financial results included record-high quarterly net income and an improved net interest margin fully tax equivalent (“FTE”). Our balance sheet reflects solid loan growth, a slight decrease in deposits and assets, and strategic changes to the securities portfolio. We also continued to execute our organic expansion plan in the Acadiana and
- Net income for the second quarter of 2022 was
$9.1 million , which was$1.8 million higher than the prior quarter, mainly due to a$2.4 million increase in net interest income. - Net interest income and net interest margin FTE increased in the second quarter of 2022 compared to the prior quarter. Net interest income for the second quarter of 2022 was
$21.1 million , compared to$18.7 million for the prior quarter. Net interest margin FTE was 2.75% for the second quarter of 2022, compared to 2.46% for the prior quarter. These increases were a result of an improved asset mix, combined with the impact of a higher interest rate environment, partially offset by lowerSmall Business Administration (“SBA”) Paycheck Protection Program (“PPP”) loan income. - As of
June 30, 2022 , assets were$3.12 billion , a decrease of$91.3 million fromMarch 31, 2022 . The decrease in assets was mainly due to a$77.5 million decrease in deposits as a result of expected customer deposit account activity. Red River Bank is participating in the SBA PPP. As ofJune 30, 2022 , PPP loans were$1.3 million , net of$30,000 of deferred income, or 0.1% of loans held for investment (“HFI”). PPP loan income decreased in the second quarter of 2022 due to lower PPP loan balances. PPP loan income for the second quarter of 2022 was$150,000 , compared to$485,000 for the prior quarter.- As of
June 30, 2022 , non-PPP loans HFI (non-GAAP) were$1.84 billion ,(1) an increase of$105.6 million , or 6.1%, fromMarch 31, 2022 . The growth in non-PPP loans HFI was primarily a result of increased loan activity in all markets. - As of
June 30, 2022 , total securities were$810.7 million , or 26.0% of assets, compared to$818.3 million , or 25.5% of assets, as ofMarch 31, 2022 . While the quarter-end balances for securities were fairly consistent, we restructured the securities portfolio during the first and second quarters of 2022, which resulted in higher interest income, an improved securities yield, and a loss on the sale of securities in the second quarter of 2022. Interest income on securities increased$715,000 to$3.7 million for the second quarter of 2022. - During the second quarter of 2022, management reclassified 20.5% of the securities portfolio from available-for-sale (“AFS”) to held-to-maturity (“HTM”).
- Equity securities were an investment in a Community Reinvestment Act (“CRA”) mutual fund, consisting primarily of bonds. The mutual fund had a loss of
$82,000 in the second quarter of 2022, compared to a loss of$365,000 in the first quarter of 2022. InApril 2022 , we liquidated all shares invested in the mutual fund. - Nonperforming assets (“NPA(s)”) were
$971,000 , or 0.03% of assets, as ofJune 30, 2022 . As ofJune 30, 2022 , the allowance for loan losses (“ALL”) was$19.4 million , or 1.05% of loans HFI. - We paid a quarterly cash dividend of
$0.07 per common share. - We did not repurchase any shares through our stock repurchase program in the second quarter of 2022.
- In the second quarter of 2022, we continued implementing our organic expansion plan. In our Acadiana market, we held a grand opening ceremony for the
Red River Bank full-service banking center inLafayette, Louisiana , which began operations inJanuary 2022 . Also inLafayette , we relocated the staff and services from theLafayette loan and deposit production office (“LDPO”) to the new banking center and closed the LDPO. In theNew Orleans market, we remodeled and received regulatory approval on a leased banking center location in downtownNew Orleans , which we expect to open as the Bank’s first full-service banking center inNew Orleans in the third quarter of 2022.
“We were pleased with the 6.1% increase in non-PPP loans, which was a result of calling efforts by lenders and increased loan activity in all of our markets. As we expected, some customers adjusted their deposit balances, which had accumulated over the past few years. As a result of the higher interest rate environment and having an asset sensitive balance sheet, net interest income improved in the second quarter of 2022.
“Our expansion into the Acadiana and
“There was a large shift in the economic environment in the second quarter of 2022. Inflation and higher interest rates are impacting our customers and markets. Many of our customers are continuing to report challenges due to supply chain problems, labor issues, and changing behaviors by their customers. We are mindful of these challenges and are monitoring the economy, our markets, and our customers closely and adjusting our strategies and activities as needed.”
Net Interest Income and Net Interest Margin FTE
Net interest income and net interest margin FTE for the second quarter of 2022 were positively impacted by the
Net interest income for the second quarter of 2022 was
The net interest margin FTE increased 29 bps to 2.75% for the second quarter of 2022, compared to 2.46% for the prior quarter. This increase was driven primarily by an improved asset mix and the higher interest rate environment in the second quarter of 2022. The yield on non-PPP loans increased seven bps driven by higher rates on new and renewed loans. The yield on taxable securities increased 17 bps, and the yield on short-term liquid assets increased 60 bps due to the higher interest rate environment.
Average PPP loans outstanding, net of deferred income, for the second quarter of 2022 were
Excluding PPP loan income, net interest income (non-GAAP) for the second quarter of 2022 was
The
Provision for Loan Losses
The provision for loan losses for the second quarter of 2022 was
Noninterest Income
Noninterest income totaled
Equity securities were an investment in a CRA mutual fund consisting primarily of bonds. The gain or loss on equity securities is a fair value adjustment primarily driven by changes in the interest rate environment. The mutual fund had a loss of
SBIC income for the second quarter of 2022 was
Debit card income, net, totaled
Brokerage income increased
Service charges on deposit accounts totaled
Mortgage loan income for the second quarter of 2022 was
The loss on the sale and call of securities was
Operating Expenses
Operating expenses for the second quarter of 2022 totaled
Data processing expense totaled
Personnel expenses totaled
Loan and deposit expenses totaled
Occupancy and equipment expenses totaled
Asset Overview
As of
Securities
Total securities as of
In the second quarter of 2022, we reclassified
Securities AFS totaled
Equity securities were an investment in a CRA mutual fund, consisting primarily of bonds, which totaled
Loans
Loans HFI as of
Health care loans are our largest industry concentration and are made up of a diversified portfolio of health care providers. As of
On
Asset Quality and Allowance for Loan Losses
NPAs totaled
As of
As a
Deposits
Deposits as of
Stockholders’ Equity
Total stockholders’ equity as of
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, realized book value per share, and PPP-adjusted metrics as part of managing operating performance. However, these non-GAAP financial measures should not be considered in isolation or as a substitute for the most directly comparable or other financial measures calculated in accordance with GAAP. Moreover, the manner that we calculate the non-GAAP financial measures that are discussed may differ from that of other companies reporting measures with similar names. It is important to understand how such other banking organizations calculate and name their financial measures similar to the non-GAAP financial measures discussed by us when comparing such non-GAAP financial measures.
A reconciliation of non-GAAP financial measures to the comparable GAAP financial measures is included within the following financial statement tables.
About
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 Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements often include words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “project,” “outlook,” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.” The forward-looking statements in this news release are based on current information and on assumptions that we make about future events and circumstances that are subject to a number of risks and uncertainties that are often difficult to predict and beyond our control. As a result of those risks and uncertainties, our actual financial results in the future could differ, possibly materially, from those expressed in or implied by the forward-looking statements contained in this news release and could cause us to make changes to our future plans. Additional information regarding these and other risks and uncertainties to which our business and future financial performance are subject is contained in the section titled “Risk Factors” in our most recent Annual Report on Form 10-K and any subsequent quarterly reports on Form 10-Q, and in other documents that we file with the
Contact:
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 Six Months Ended |
||||||||||||||||||
(Dollars in thousands, except per share data) | 2022 |
2022 |
2021 |
2022 |
2021 |
||||||||||||||
Net Income | $ | 9,147 | $ | 7,392 | $ | 8,239 | $ | 16,539 | $ | 16,304 | |||||||||
Per Common Share Data: | |||||||||||||||||||
Earnings per share, basic | $ | 1.27 | $ | 1.03 | $ | 1.13 | $ | 2.30 | $ | 2.23 | |||||||||
Earnings per share, diluted | $ | 1.27 | $ | 1.03 | $ | 1.13 | $ | 2.30 | $ | 2.22 | |||||||||
Book value per share | $ | 35.34 | $ | 36.91 | $ | 40.21 | $ | 35.34 | $ | 40.21 | |||||||||
Tangible book value per share(1) | $ | 35.12 | $ | 36.69 | $ | 40.00 | $ | 35.12 | $ | 40.00 | |||||||||
Realized book value per share(1) | $ | 44.23 | $ | 43.02 | $ | 40.06 | $ | 44.23 | $ | 40.06 | |||||||||
Cash dividends per share | $ | 0.07 | $ | 0.07 | $ | 0.07 | $ | 0.14 | $ | 0.14 | |||||||||
Shares outstanding | 7,176,365 | 7,176,365 | 7,284,994 | 7,176,365 | 7,284,994 | ||||||||||||||
Weighted average shares outstanding, basic | 7,176,365 | 7,179,624 | 7,300,040 | 7,177,986 | 7,308,968 | ||||||||||||||
Weighted average shares outstanding, diluted | 7,196,643 | 7,198,616 | 7,319,351 | 7,198,624 | 7,328,510 | ||||||||||||||
Summary Performance Ratios: | |||||||||||||||||||
Return on average assets | 1.15 | % | 0.93 | % | 1.15 | % | 1.04 | % | 1.18 | % | |||||||||
Return on average equity | 14.30 | % | 10.27 | % | 11.41 | % | 12.17 | % | 11.38 | % | |||||||||
Net interest margin | 2.70 | % | 2.41 | % | 2.48 | % | 2.55 | % | 2.58 | % | |||||||||
Net interest margin FTE | 2.75 | % | 2.46 | % | 2.54 | % | 2.61 | % | 2.64 | % | |||||||||
Efficiency ratio | 55.64 | % | 60.80 | % | 56.62 | % | 58.07 | % | 55.30 | % | |||||||||
Loans HFI to deposits ratio | 64.61 | % | 59.47 | % | 62.28 | % | 64.61 | % | 62.28 | % | |||||||||
Noninterest-bearing deposits to deposits ratio | 41.46 | % | 40.34 | % | 40.14 | % | 41.46 | % | 40.14 | % | |||||||||
Noninterest income to average assets | 0.61 | % | 0.56 | % | 0.90 | % | 0.58 | % | 0.95 | % | |||||||||
Operating expense to average assets | 1.82 | % | 1.77 | % | 1.88 | % | 1.80 | % | 1.92 | % | |||||||||
Summary Credit Quality Ratios: | |||||||||||||||||||
Nonperforming assets to total assets | 0.03 | % | 0.03 | % | 0.11 | % | 0.03 | % | 0.11 | % | |||||||||
Nonperforming loans to loans HFI | 0.02 | % | 0.02 | % | 0.13 | % | 0.02 | % | 0.13 | % | |||||||||
Allowance for loan losses to loans HFI | 1.05 | % | 1.11 | % | 1.22 | % | 1.05 | % | 1.22 | % | |||||||||
Net charge-offs to average loans | 0.01 | % | 0.00 | % | 0.01 | % | 0.01 | % | 0.01 | % | |||||||||
Capital Ratios: | |||||||||||||||||||
Total stockholders’ equity to total assets | 8.13 | % | 8.25 | % | 10.18 | % | 8.13 | % | 10.18 | % | |||||||||
Tangible common equity to tangible assets(1) | 8.08 | % | 8.20 | % | 10.13 | % | 8.08 | % | 10.13 | % | |||||||||
Total risk-based capital to risk-weighted assets | 16.89 | % | 17.28 | % | 19.10 | % | 16.89 | % | 19.10 | % | |||||||||
Tier 1 risk-based capital to risk-weighted assets | 15.92 | % | 16.26 | % | 17.90 | % | 15.92 | % | 17.90 | % | |||||||||
Common equity Tier 1 capital to risk-weighted assets | 15.92 | % | 16.26 | % | 17.90 | % | 15.92 | % | 17.90 | % | |||||||||
Tier 1 risk-based capital to average assets | 9.73 | % | 9.51 | % | 10.13 | % | 9.73 | % | 10.13 | % | |||||||||
(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) | 2022 |
2022 |
2021 |
2021 |
2021 |
||||||||||||||
ASSETS | |||||||||||||||||||
Cash and due from banks | $ | 39,339 | $ | 40,137 | $ | 23,143 | $ | 36,614 | $ | 33,728 | |||||||||
Interest-bearing deposits in other banks | 317,061 | 506,982 | 761,721 | 693,950 | 633,744 | ||||||||||||||
Securities available-for-sale, at fair value | 651,125 | 810,804 | 659,178 | 568,199 | 512,012 | ||||||||||||||
Securities held-to-maturity, at amortized cost | 159,562 | — | — | — | — | ||||||||||||||
Equity securities, at fair value | — | 7,481 | 7,846 | 7,920 | 3,961 | ||||||||||||||
Nonmarketable equity securities | 3,452 | 3,451 | 3,450 | 3,449 | 3,449 | ||||||||||||||
Loans held for sale | 4,524 | 6,641 | 4,290 | 8,782 | 12,291 | ||||||||||||||
Loans held for investment | 1,841,585 | 1,741,026 | 1,683,832 | 1,622,593 | 1,600,388 | ||||||||||||||
Allowance for loan losses | (19,395 | ) | (19,244 | ) | (19,176 | ) | (19,168 | ) | (19,460 | ) | |||||||||
Premises and equipment, net | 52,172 | 50,605 | 48,056 | 47,432 | 47,414 | ||||||||||||||
Accrued interest receivable | 7,356 | 6,654 | 6,245 | 5,927 | 6,039 | ||||||||||||||
Bank-owned life insurance | 28,413 | 28,233 | 28,061 | 27,886 | 27,710 | ||||||||||||||
Intangible assets | 1,546 | 1,546 | 1,546 | 1,546 | 1,546 | ||||||||||||||
Right-of-use assets | 4,385 | 4,506 | 3,743 | 3,847 | 3,950 | ||||||||||||||
Other assets | 29,988 | 23,638 | 12,775 | 11,807 | 11,704 | ||||||||||||||
Total Assets | $ | 3,121,113 | $ | 3,212,460 | $ | 3,224,710 | $ | 3,020,784 | $ | 2,878,476 | |||||||||
LIABILITIES | |||||||||||||||||||
Noninterest-bearing deposits | $ | 1,181,781 | $ | 1,181,136 | $ | 1,149,672 | $ | 1,143,693 | $ | 1,031,486 | |||||||||
Interest-bearing deposits | 1,668,414 | 1,746,592 | 1,760,676 | 1,560,890 | 1,538,113 | ||||||||||||||
Total Deposits | 2,850,195 | 2,927,728 | 2,910,348 | 2,704,583 | 2,569,599 | ||||||||||||||
Accrued interest payable | 1,176 | 1,329 | 1,310 | 1,340 | 1,432 | ||||||||||||||
Lease liabilities | 4,494 | 4,610 | 3,842 | 3,943 | 4,042 | ||||||||||||||
Accrued expenses and other liabilities | 11,652 | 13,919 | 11,060 | 12,230 | 10,479 | ||||||||||||||
Total Liabilities | 2,867,517 | 2,947,586 | 2,926,560 | 2,722,096 | 2,585,552 | ||||||||||||||
COMMITMENTS AND CONTINGENCIES | — | — | — | — | — | ||||||||||||||
STOCKHOLDERS’ EQUITY | |||||||||||||||||||
Preferred stock, no par value | — | — | — | — | — | ||||||||||||||
Common stock, no par value | 60,050 | 60,050 | 60,233 | 65,130 | 65,934 | ||||||||||||||
Additional paid-in capital | 1,940 | 1,877 | 1,814 | 1,751 | 1,692 | ||||||||||||||
Retained earnings | 255,410 | 246,766 | 239,876 | 231,868 | 224,240 | ||||||||||||||
Accumulated other comprehensive income (loss) | (63,804 | ) | (43,819 | ) | (3,773 | ) | (61 | ) | 1,058 | ||||||||||
Total Stockholders’ Equity | 253,596 | 264,874 | 298,150 | 298,688 | 292,924 | ||||||||||||||
Total Liabilities and Stockholders’ Equity | $ | 3,121,113 | $ | 3,212,460 | $ | 3,224,710 | $ | 3,020,784 | $ | 2,878,476 |
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) | ||||||||||||||||||
For the Three Months Ended | For the Six Months Ended |
|||||||||||||||||
(in thousands) | 2022 |
2022 |
2021 |
2022 |
2021 |
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INTEREST AND DIVIDEND INCOME | ||||||||||||||||||
Interest and fees on loans | $ | 18,032 | $ | 16,770 | $ | 16,351 | $ | 34,802 | $ | 33,517 | ||||||||
Interest on securities | 3,677 | 2,962 | 2,138 | 6,639 | 4,027 | |||||||||||||
Interest on federal funds sold | 116 | 25 | 25 | 141 | 47 | |||||||||||||
Interest on deposits in other banks | 671 | 251 | 129 | 922 | 229 | |||||||||||||
Dividends on stock | 2 | 1 | 1 | 3 | 2 | |||||||||||||
Total Interest and Dividend Income | 22,498 | 20,009 | 18,644 | 42,507 | 37,822 | |||||||||||||
INTEREST EXPENSE | ||||||||||||||||||
Interest on deposits | 1,349 | 1,281 | 1,397 | 2,630 | 2,984 | |||||||||||||
Total Interest Expense | 1,349 | 1,281 | 1,397 | 2,630 | 2,984 | |||||||||||||
Net Interest Income | 21,149 | 18,728 | 17,247 | 39,877 | 34,838 | |||||||||||||
Provision for loan losses | 250 | 150 | 150 | 400 | 1,600 | |||||||||||||
Net Interest Income After Provision for Loan Losses | 20,899 | 18,578 | 17,097 | 39,477 | 33,238 | |||||||||||||
NONINTEREST INCOME | ||||||||||||||||||
Service charges on deposit accounts | 1,410 | 1,308 | 1,140 | 2,718 | 2,199 | |||||||||||||
Debit card income, net | 1,056 | 936 | 1,204 | 1,992 | 2,250 | |||||||||||||
Mortgage loan income | 892 | 1,127 | 2,357 | 2,018 | 5,239 | |||||||||||||
Brokerage income | 890 | 775 | 806 | 1,666 | 1,640 | |||||||||||||
Loan and deposit income | 410 | 371 | 395 | 781 | 868 | |||||||||||||
Bank-owned life insurance income | 180 | 172 | 164 | 352 | 297 | |||||||||||||
Gain (Loss) on equity securities | (82 | ) | (365 | ) | 11 | (447 | ) | (59 | ) | |||||||||
Gain (Loss) on sale and call of securities | (114 | ) | 39 | 34 | (75 | ) | 193 | |||||||||||
SBIC income | 151 | 20 | 239 | 171 | 480 | |||||||||||||
Other income (loss) | 67 | 19 | 53 | 86 | 71 | |||||||||||||
Total Noninterest Income | 4,860 | 4,402 | 6,403 | 9,262 | 13,178 | |||||||||||||
OPERATING EXPENSES | ||||||||||||||||||
Personnel expenses | 8,574 | 8,452 | 8,110 | 17,026 | 16,131 | |||||||||||||
Occupancy and equipment expenses | 1,473 | 1,492 | 1,329 | 2,965 | 2,608 | |||||||||||||
Technology expenses | 695 | 771 | 744 | 1,466 | 1,408 | |||||||||||||
Advertising | 306 | 219 | 226 | 526 | 409 | |||||||||||||
Other business development expenses | 340 | 303 | 307 | 642 | 607 | |||||||||||||
Data processing expense | 564 | 316 | 532 | 880 | 917 | |||||||||||||
Other taxes | 647 | 636 | 532 | 1,283 | 1,057 | |||||||||||||
Loan and deposit expenses | 185 | 130 | 193 | 315 | 448 | |||||||||||||
Legal and professional expenses | 475 | 418 | 368 | 893 | 737 | |||||||||||||
Regulatory assessment expenses | 251 | 250 | 213 | 501 | 414 | |||||||||||||
Other operating expenses | 961 | 1,075 | 838 | 2,036 | 1,819 | |||||||||||||
Total Operating Expenses | 14,471 | 14,062 | 13,392 | 28,533 | 26,555 | |||||||||||||
Income Before Income Tax Expense | 11,288 | 8,918 | 10,108 | 20,206 | 19,861 | |||||||||||||
Income tax expense | 2,141 | 1,526 | 1,869 | 3,667 | 3,557 | |||||||||||||
Net Income | $ | 9,147 | $ | 7,392 | $ | 8,239 | $ | 16,539 | $ | 16,304 |
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 |
|||||||||||||
Assets | |||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||
Loans(1,2) | $ | 1,796,322 | $ | 18,032 | 3.97 | % | $ | 1,690,445 | $ | 16,770 | 3.97 | % | |||||||
Securities - taxable | 690,772 | 2,615 | 1.52 | % | 556,648 | 1,879 | 1.35 | % | |||||||||||
Securities - tax-exempt | 211,672 | 1,062 | 2.01 | % | 215,360 | 1,083 | 2.01 | % | |||||||||||
Federal funds sold | 53,216 | 116 | 0.86 | % | 53,249 | 25 | 0.19 | % | |||||||||||
Interest-bearing balances due from banks | 351,092 | 671 | 0.76 | % | 589,794 | 251 | 0.17 | % | |||||||||||
Nonmarketable equity securities | 3,451 | 2 | 0.22 | % | 3,450 | 1 | 0.10 | % | |||||||||||
Total interest-earning assets | 3,106,525 | $ | 22,498 | 2.87 | % | 3,108,946 | $ | 20,009 | 2.58 | % | |||||||||
Allowance for loan losses | (19,293 | ) | (19,203 | ) | |||||||||||||||
Noninterest-earning assets | 99,687 | 124,258 | |||||||||||||||||
Total assets | $ | 3,186,919 | $ | 3,214,001 | |||||||||||||||
Liabilities and Stockholders’ Equity | |||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||
Interest-bearing transaction deposits | $ | 1,410,270 | $ | 547 | 0.16 | % | $ | 1,418,583 | $ | 455 | 0.13 | % | |||||||
Time deposits | 328,420 | 802 | 0.98 | % | 332,585 | 826 | 1.01 | % | |||||||||||
Total interest-bearing deposits | 1,738,690 | 1,349 | 0.31 | % | 1,751,168 | 1,281 | 0.30 | % | |||||||||||
Other borrowings | — | — | — | % | — | — | — | % | |||||||||||
Total interest-bearing liabilities | 1,738,690 | $ | 1,349 | 0.31 | % | 1,751,168 | $ | 1,281 | 0.30 | % | |||||||||
Noninterest-bearing liabilities: | |||||||||||||||||||
Noninterest-bearing deposits | 1,175,251 | 1,153,377 | |||||||||||||||||
Accrued interest and other liabilities | 16,459 | 17,514 | |||||||||||||||||
Total noninterest-bearing liabilities | 1,191,710 | 1,170,891 | |||||||||||||||||
Stockholders’ equity | 256,519 | 291,942 | |||||||||||||||||
Total liabilities and stockholders’ equity | $ | 3,186,919 | $ | 3,214,001 | |||||||||||||||
Net interest income | $ | 21,149 | $ | 18,728 | |||||||||||||||
Net interest spread | 2.56 | % | 2.28 | % | |||||||||||||||
Net interest margin | 2.70 | % | 2.41 | % | |||||||||||||||
Net interest margin FTE(3) | 2.75 | % | 2.46 | % | |||||||||||||||
Cost of deposits | 0.19 | % | 0.18 | % | |||||||||||||||
Cost of funds | 0.17 | % | 0.17 | % |
(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 21.0% 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 income and 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 |
|||||||||||||
Loans(1,2) | $ | 1,796,322 | $ | 18,032 | 3.97 | % | $ | 1,690,445 | $ | 16,770 | 3.97 | % | |||||||
Less: PPP loans, net | |||||||||||||||||||
Average | 4,202 | 11,061 | |||||||||||||||||
Interest | 11 | 28 | |||||||||||||||||
Fees | 139 | 457 | |||||||||||||||||
Total PPP loans, net | 4,202 | 150 | 14.30 | % | 11,061 | 485 | 17.77 | % | |||||||||||
Non-PPP loans (non-GAAP)(3) | $ | 1,792,120 | $ | 17,882 | 3.95 | % | $ | 1,679,384 | $ | 16,285 | 3.88 | % | |||||||
Net interest income, excluding PPP loan income (non-GAAP) | |||||||||||||||||||
Net interest income | $ | 21,149 | $ | 18,728 | |||||||||||||||
PPP loan income | (150 | ) | (485 | ) | |||||||||||||||
Net interest income, excluding PPP loan income (non-GAAP)(3) | $ | 20,999 | $ | 18,243 | |||||||||||||||
Ratios excluding PPP loans, net (non-GAAP)(3) | |||||||||||||||||||
Net interest spread | 2.55 | % | 2.22 | % | |||||||||||||||
Net interest margin | 2.68 | % | 2.35 | % | |||||||||||||||
Net interest margin FTE(4) | 2.73 | % | 2.41 | % |
(1) Includes average outstanding balances of loans held for sale of
(2) Nonaccrual loans are included as loans carrying a zero yield.
(3) Non-GAAP financial measure. Calculations of this measure and reconciliations to GAAP are included in the schedules accompanying this release.
(4) Net interest margin FTE includes an FTE adjustment using a 21.0% federal income tax rate on tax-exempt securities and tax-exempt loans.
NET INTEREST INCOME AND NET INTEREST MARGIN (UNAUDITED) | |||||||||||||||||||
For the Six Months Ended |
|||||||||||||||||||
2022 |
2021 |
||||||||||||||||||
(dollars in thousands) | Average Balance Outstanding |
Interest Earned/ Interest Paid |
Average Yield/ Rate |
Average Balance Outstanding |
Interest Earned/ Interest Paid |
Average Yield/ Rate |
|||||||||||||
Assets | |||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||
Loans(1,2) | $ | 1,743,676 | $ | 34,802 | 3.97 | % | $ | 1,606,094 | $ | 33,517 | 4.16 | % | |||||||
Securities - taxable | 624,081 | 4,494 | 1.44 | % | 307,329 | 1,963 | 1.28 | % | |||||||||||
Securities - tax-exempt | 213,506 | 2,145 | 2.01 | % | 197,782 | 2,064 | 2.09 | % | |||||||||||
Federal funds sold | 53,232 | 141 | 0.53 | % | 80,118 | 47 | 0.12 | % | |||||||||||
Interest-bearing balances due from banks | 469,784 | 922 | 0.39 | % | 491,342 | 229 | 0.09 | % | |||||||||||
Nonmarketable equity securities | 3,450 | 3 | 0.16 | % | 3,447 | 2 | 0.11 | % | |||||||||||
Total interest-earning assets | $ | 3,107,729 | $ | 42,507 | 2.72 | % | $ | 2,686,112 | $ | 37,822 | 2.81 | % | |||||||
Allowance for loan losses | (19,249 | ) | (19,055 | ) | |||||||||||||||
Noninterest-earning assets | 111,905 | 132,234 | |||||||||||||||||
Total assets | $ | 3,200,385 | $ | 2,799,291 | |||||||||||||||
Liabilities and Stockholders’ Equity | |||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||
Interest-bearing transaction deposits | $ | 1,414,404 | $ | 1,002 | 0.14 | % | $ | 1,160,251 | $ | 853 | 0.15 | % | |||||||
Time deposits | 330,491 | 1,628 | 0.99 | % | 341,326 | 2,131 | 1.26 | % | |||||||||||
Total interest-bearing deposits | 1,744,895 | 2,630 | 0.30 | % | 1,501,577 | 2,984 | 0.40 | % | |||||||||||
Other borrowings | — | — | — | % | — | — | — | % | |||||||||||
Total interest-bearing liabilities | 1,744,895 | $ | 2,630 | 0.30 | % | 1,501,577 | $ | 2,984 | 0.40 | % | |||||||||
Noninterest-bearing liabilities: | |||||||||||||||||||
Noninterest-bearing deposits | 1,164,375 | 990,406 | |||||||||||||||||
Accrued interest and other liabilities | 16,983 | 17,708 | |||||||||||||||||
Total noninterest-bearing liabilities | 1,181,358 | 1,008,114 | |||||||||||||||||
Stockholders’ equity | 274,132 | 289,600 | |||||||||||||||||
Total liabilities and stockholders’ equity | $ | 3,200,385 | $ | 2,799,291 | |||||||||||||||
Net interest income | $ | 39,877 | $ | 34,838 | |||||||||||||||
Net interest spread | 2.42 | % | 2.41 | % | |||||||||||||||
Net interest margin | 2.55 | % | 2.58 | % | |||||||||||||||
Net interest margin FTE(3) | 2.61 | % | 2.64 | % | |||||||||||||||
Cost of deposits | 0.18 | % | 0.24 | % | |||||||||||||||
Cost of funds | 0.17 | % | 0.22 | % |
(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 21.0% 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 income and net interest ratios excluding PPP loans (non-GAAP) for the six months ended |
|||||||||||||||||
For the Six Months Ended |
|||||||||||||||||
2022 | 2021 | ||||||||||||||||
(dollars in thousands) | Average Balance Outstanding |
Interest/Fees Earned |
Average Yield |
Average Balance Outstanding |
Interest/Fees Earned |
Average Yield |
|||||||||||
Loans(1,2) | $ | 1,743,676 | $ | 34,802 | 3.97 | % | $ | 1,606,094 | $ | 33,517 | 4.16 | % | |||||
Less: PPP loans, net | |||||||||||||||||
Average | 7,613 | 108,761 | |||||||||||||||
Interest | 39 | 568 | |||||||||||||||
Fees | 596 | 2,627 | |||||||||||||||
Total PPP loans, net | 7,613 | 635 | 16.80 | % | 108,761 | 3,195 | 5.92 | % | |||||||||
Non-PPP loans (non-GAAP)(3) | $ | 1,736,063 | $ | 34,167 | 3.92 | % | $ | 1,497,333 | $ | 30,322 | 4.03 | % | |||||
Ratios excluding PPP loans, net (non-GAAP)(3) | |||||||||||||||||
Net interest spread | 2.39 | % | 2.28 | % | |||||||||||||
Net interest margin | 2.52 | % | 2.44 | % | |||||||||||||
Net interest margin FTE(4) | 2.57 | % | 2.50 | % |
(1) Includes average outstanding balances of loans held for sale of
(2) Nonaccrual loans are included as loans carrying a zero yield.
(3) Non-GAAP financial measure. Calculations of this measure and reconciliations to GAAP are included in the schedules accompanying this release.
(4) Net interest margin FTE includes an FTE adjustment using a 21.0% 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) | 2022 |
2022 |
2021 |
||||||||
Tangible common equity | |||||||||||
Total stockholders’ equity | $ | 253,596 | $ | 264,874 | $ | 292,924 | |||||
Adjustments: | |||||||||||
Intangible assets | (1,546 | ) | (1,546 | ) | (1,546 | ) | |||||
Total tangible common equity (non-GAAP) | $ | 252,050 | $ | 263,328 | $ | 291,378 | |||||
Realized common equity | |||||||||||
Total stockholders’ equity | $ | 253,596 | $ | 264,874 | $ | 292,924 | |||||
Adjustments: | |||||||||||
Accumulated other comprehensive (income) loss | 63,804 | 43,819 | (1,058 | ) | |||||||
Total realized common equity (non-GAAP) | $ | 317,400 | $ | 308,693 | $ | 291,866 | |||||
Common shares outstanding | 7,176,365 | 7,176,365 | 7,284,994 | ||||||||
Book value per share | $ | 35.34 | $ | 36.91 | $ | 40.21 | |||||
Tangible book value per share (non-GAAP) | $ | 35.12 | $ | 36.69 | $ | 40.00 | |||||
Realized book value per share (non-GAAP) | $ | 44.23 | $ | 43.02 | $ | 40.06 | |||||
Tangible assets | |||||||||||
Total assets | $ | 3,121,113 | $ | 3,212,460 | $ | 2,878,476 | |||||
Adjustments: | |||||||||||
Intangible assets | (1,546 | ) | (1,546 | ) | (1,546 | ) | |||||
Total tangible assets (non-GAAP) | $ | 3,119,567 | $ | 3,210,914 | $ | 2,876,930 | |||||
Total stockholders’ equity to assets | 8.13 | % | 8.25 | % | 10.18 | % | |||||
Tangible common equity to tangible assets (non-GAAP) | 8.08 | % | 8.20 | % | 10.13 | % | |||||
Non-PPP loans HFI | |||||||||||
Loans HFI | $ | 1,841,585 | $ | 1,741,026 | $ | 1,600,388 | |||||
Adjustments: | |||||||||||
PPP loans, net | (1,349 | ) | (6,397 | ) | (82,972 | ) | |||||
Non-PPP loans HFI (non-GAAP) | $ | 1,840,236 | $ | 1,734,629 | $ | 1,517,416 |
Source: Red River Bancshares, Inc.