Red River Bancshares, Inc. Reports Second Quarter 2024 Financial Results
Net income for the second quarter of 2024 was
Net income for the six months ended
Second Quarter 2024 Performance and Operational Highlights
In the second quarter of 2024, the Company had an improved net interest margin along with fairly consistent earnings and loan and deposit balances. Stock buyback activity was steady, and
- Net income for the second quarter of 2024 was
$8 .0 million compared to$8 .2 million for the prior quarter. Net income for the second quarter benefited from higher net interest income and an improved net interest margin fully tax equivalent (“FTE”). Net income for the first quarter of 2024 benefited from approximately$800,000 , or$0.09 EPS, of nonrecurring noninterest income payments and operating expense reduction items. - Net interest income and net interest margin FTE increased for the second quarter of 2024 compared to the prior quarter. Net interest income for the second quarter of 2024 was
$21 .8 million compared to$21 .4 million for the prior quarter. Net interest margin FTE for the second quarter of 2024 was 2.92% compared to 2.83% for the prior quarter. These increases were due to improved yields on loans and securities outpacing higher deposit rates. - As of
June 30, 2024 , assets were$3 .05 billion, which was$24 .8 million, or 0.8%, lower thanMarch 31, 2024 . The decrease was due to a$29 .2 million decrease in deposits. - Deposits totaled
$2 .72 billion as ofJune 30, 2024 , a decrease of$29 .2 million, or 1.1%, compared to$2 .75 billion as ofMarch 31, 2024 . In the second quarter of 2024, deposit activity was normal and included the seasonal outflow of funds for income tax payments. - As of
June 30, 2024 , loans held for investment (“HFI”) were$2 .05 billion, slightly higher than$2 .04 billion as ofMarch 31, 2024 . In the second quarter of 2024, new loan activity was steady throughout all markets. - As of
June 30, 2024 , nonperforming assets (“NPA(s)”) were$3 .2 million, or 0.11% of assets, and the allowance for credit losses (“ACL”) was$21 .6 million, or 1.06% of loans HFI. - As of
June 30, 2024 , liquid assets, which are cash and cash equivalents, were$213.1 million , and the liquid assets to assets ratio was 6.99%. We do not have any borrowings, brokered deposits, or internet-sourced deposits. - We paid a quarterly cash dividend of
$0.09 per common share in the second quarter of 2024. - The 2024 stock repurchase program authorizes us to purchase up to
$5.0 million of our outstanding shares of common stock fromJanuary 1, 2024 throughDecember 31, 2024 . In the second quarter of 2024, we repurchased 16,220 shares of our common stock at an aggregate cost of$764,000 . As ofJune 30, 2024 , the 2024 stock repurchase program had$4.2 million remaining. - As of
June 30, 2024 , capital levels were strong with a stockholders’ equity to assets ratio of 10.07%, a leverage ratio of 11.74%, and a total risk-based capital ratio of 18.01%. - We continue to implement our organic expansion plan. In
June 2024 , we opened a secondRed River Bank full-service banking center in theNew Orleans market, and inJuly 2024 , we held a grand opening ceremony at this newly constructed location onVeterans Memorial Boulevard inMetairie, Louisiana . - In
July 2024 , Bank Director Magazine ranked the Company 9th in the top 30 best-performing publicly traded financial institutions in 2023 with assets less than$5.0 billion .
“Overall the balance sheet was fairly consistent with deposits being impacted by seasonal outgoing income tax payments. We deployed securities cash flows into higher-yielding assets. Net interest margin FTE and net interest income increased as a result of improved pricing on new and renewed loans, combined with diligent management of deposit costs and reduced deposit rate pressures. These pricing efforts resulted in a steady improvement to the net interest margin FTE over the past three quarters.
“While net income was slightly lower in the second quarter, EPS was
“We were excited to complete construction and open the new
“We are greatly saddened by the loss of our longtime friend, supporter, and director on the Company and Bank’s boards,
“We were honored to be included as a top 30 publicly traded financial institution by Bank Director Magazine. Our ranking of 9th for 2023 is a result of our solid financial results and strength as a company.
“As we enter the second half of 2024, it appears that the economy in
Net Interest Income and Net Interest Margin FTE
Net interest income and net interest margin FTE increased in the second quarter of 2024 compared to the prior quarter. These increases were due to improved yields on loans and securities outpacing higher deposit rates. The
Net interest income for the second quarter of 2024 was
The net interest margin FTE increased nine basis points (“bp(s)”) to 2.92% for the second quarter of 2024, compared to 2.83% for the prior quarter. This increase was due to improved yields on loans and securities, partially offset by higher deposit costs. The yield on loans increased 12 bps due to higher rates on new and renewed loans. The yield on securities increased eight bps due to reinvesting securities cash flows received into new securities at higher yields. These increases were partially offset by an eight bp increase in the rate on interest-bearing deposits during the second quarter. The cost of deposits increased five bps to 1.75% for the second quarter of 2024, compared to 1.70% for the previous quarter.
In the second quarter of 2024, the target range for the federal funds rate remained at 5.25%-5.50%. The market’s expectation is that the
Provision for Credit Losses
The provision for credit losses for the second quarter of 2024 was
Noninterest Income
Noninterest income totaled
Mortgage loan income was
SBIC income for the second quarter of 2024 was
Brokerage income was
Debit card income, net, totaled
Operating Expenses
Operating expenses totaled
Loan and deposit expenses totaled
Data processing expense totaled
Other business development expenses totaled
Legal and professional expenses totaled
Occupancy and equipment expenses totaled
Other taxes totaled
Asset Overview
As of
Securities
Total securities as of
The estimated fair value of securities available for sale (“AFS”) totaled
Equity securities, which is an investment in a CRA mutual fund consisting primarily of bonds, totaled
Loans
Loans HFI as of
Loans HFI by Category | |||||||||||||||||||||
Change from |
|||||||||||||||||||||
(dollars in thousands) | Amount | Percent | Amount | Percent | $ Change | % Change | |||||||||||||||
Real estate: | |||||||||||||||||||||
Commercial real estate | $ | 865,645 | 42.3 | % | $ | 870,085 | 42.7 | % | $ | (4,440 | ) | (0.5 | %) | ||||||||
One-to-four family residential | 611,904 | 29.9 | % | 608,617 | 29.9 | % | 3,287 | 0.5 | % | ||||||||||||
Construction and development | 129,197 | 6.3 | % | 116,181 | 5.7 | % | 13,016 | 11.2 | % | ||||||||||||
Commercial and industrial | 344,071 | 16.8 | % | 347,094 | 17.0 | % | (3,023 | ) | (0.9 | %) | |||||||||||
Tax-exempt | 67,941 | 3.3 | % | 67,548 | 3.3 | % | 393 | 0.6 | % | ||||||||||||
Consumer | 29,132 | 1.4 | % | 28,547 | 1.4 | % | 585 | 2.0 | % | ||||||||||||
Total loans HFI | $ | 2,047,890 | 100.0 | % | $ | 2,038,072 | 100.0 | % | $ | 9,818 | 0.5 | % | |||||||||
Commercial real estate (“CRE”) loans are collateralized by owner occupied and non-owner occupied properties mainly in
Health care loans are our largest industry concentration and are made up of a diversified portfolio of health care providers. As of
Asset Quality and Allowance for Credit Losses
NPAs totaled
As of
Deposits
As of
Deposits by Account Type | |||||||||||||||||||||
Change from |
|||||||||||||||||||||
(dollars in thousands) | Balance | % of Total | Balance | % of Total | $ Change | % Change | |||||||||||||||
Noninterest-bearing demand deposits | $ | 892,942 | 32.9 | % | $ | 895,439 | 32.6 | % | $ | (2,497 | ) | (0.3 | %) | ||||||||
Interest-bearing deposits: | |||||||||||||||||||||
Interest-bearing demand deposits | 135,543 | 5.0 | % | 132,523 | 4.9 | % | 3,020 | 2.3 | % | ||||||||||||
NOW accounts | 377,385 | 13.9 | % | 385,585 | 14.0 | % | (8,200 | ) | (2.1 | %) | |||||||||||
Money market accounts | 547,715 | 20.1 | % | 557,139 | 20.3 | % | (9,424 | ) | (1.7 | %) | |||||||||||
Savings accounts | 170,050 | 6.3 | % | 176,777 | 6.4 | % | (6,727 | ) | (3.8 | %) | |||||||||||
Time deposits less than or equal to |
399,981 | 14.7 | % | 406,369 | 14.8 | % | (6,388 | ) | (1.6 | %) | |||||||||||
Time deposits greater than |
193,030 | 7.1 | % | 192,059 | 7.0 | % | 971 | 0.5 | % | ||||||||||||
Total interest-bearing deposits | 1,823,704 | 67.1 | % | 1,850,452 | 67.4 | % | (26,748 | ) | (1.4 | %) | |||||||||||
Total deposits | $ | 2,716,646 | 100.0 | % | $ | 2,745,891 | 100.0 | % | $ | (29,245 | ) | (1.1 | %) |
Deposits by Customer Type | |||||||||||||||||||||
Change from |
|||||||||||||||||||||
(dollars in thousands) | Balance | % of Total | Balance | % of Total | $ Change | % Change | |||||||||||||||
Consumer | $ | 1,351,709 | 49.8 | % | $ | 1,367,713 | 49.8 | % | $ | (16,004 | ) | (1.2 | %) | ||||||||
Commercial | 1,149,023 | 42.3 | % | 1,160,663 | 42.3 | % | (11,640 | ) | (1.0 | %) | |||||||||||
Public | 215,914 | 7.9 | % | 217,515 | 7.9 | % | (1,601 | ) | (0.7 | %) | |||||||||||
Total deposits | $ | 2,716,646 | 100.0 | % | $ | 2,745,891 | 100.0 | % | $ | (29,245 | ) | (1.1 | %) | ||||||||
Deposits decreased in the second quarter of 2024, mainly as a result of the seasonal outflow of funds for income tax payments.
The Bank has a granular, diverse deposit portfolio with customers in a variety of industries throughout
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, and realized book value per share as part of managing operating performance. However, these non-GAAP financial measures should not be considered in isolation or as a substitute for the most directly comparable or other financial measures calculated in accordance with GAAP. Moreover, the manner in which we calculate the non-GAAP financial measures that are discussed may differ from that of other companies’ reporting measures with similar names. It is important to understand how such other banking organizations calculate and name their financial measures similar to the non-GAAP financial measures discussed by us when comparing such non-GAAP financial measures.
A reconciliation of non-GAAP financial measures to the comparable GAAP financial measures is included within the following financial statement tables.
About
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, Chief Financial Officer, and Assistant Corporate Secretary
318-561-4023
icarriere@redriverbank.net
FINANCIAL HIGHLIGHTS (UNAUDITED) | ||||||||||||||||||||
As of and for the Three Months Ended |
As of and for the Six Months Ended |
|||||||||||||||||||
(dollars in thousands, except per share data) | 2024 |
2024 |
2023 |
2024 |
2023 |
|||||||||||||||
Net Income | $ | 7,987 | $ | 8,188 | $ | 8,968 | $ | 16,175 | $ | 18,566 | ||||||||||
Per Common Share Data: | ||||||||||||||||||||
Earnings per share, basic | $ | 1.16 | $ | 1.16 | $ | 1.25 | $ | 2.32 | $ | 2.59 | ||||||||||
Earnings per share, diluted | $ | 1.16 | $ | 1.16 | $ | 1.25 | $ | 2.31 | $ | 2.58 | ||||||||||
Book value per share | $ | 44.58 | $ | 43.43 | $ | 39.49 | $ | 44.58 | $ | 39.49 | ||||||||||
Tangible book value per share(1) | $ | 44.35 | $ | 43.20 | $ | 39.28 | $ | 44.35 | $ | 39.28 | ||||||||||
Realized book value per share(1) | $ | 53.54 | $ | 52.52 | $ | 49.21 | $ | 53.54 | $ | 49.21 | ||||||||||
Cash dividends per share | $ | 0.09 | $ | 0.09 | $ | 0.08 | $ | 0.18 | $ | 0.16 | ||||||||||
Shares outstanding | 6,886,928 | 6,892,448 | 7,175,056 | 6,886,928 | 7,175,056 | |||||||||||||||
Weighted average shares outstanding, basic | 6,896,030 | 7,050,048 | 7,177,621 | 6,973,039 | 7,180,187 | |||||||||||||||
Weighted average shares outstanding, diluted | 6,914,140 | 7,066,709 | 7,194,634 | 6,991,618 | 7,197,412 | |||||||||||||||
Summary Performance Ratios: | ||||||||||||||||||||
Return on average assets | 1.05 | % | 1.07 | % | 1.20 | % | 1.06 | % | 1.24 | % | ||||||||||
Return on average equity | 10.69 | % | 10.77 | % | 12.78 | % | 10.73 | % | 13.54 | % | ||||||||||
Net interest margin | 2.87 | % | 2.80 | % | 2.91 | % | 2.83 | % | 2.99 | % | ||||||||||
Net interest margin FTE | 2.92 | % | 2.83 | % | 2.96 | % | 2.89 | % | 3.04 | % | ||||||||||
Efficiency ratio | 62.07 | % | 60.37 | % | 58.63 | % | 61.23 | % | 57.74 | % | ||||||||||
Loans HFI to deposits ratio | 75.38 | % | 74.22 | % | 73.10 | % | 75.38 | % | 73.10 | % | ||||||||||
Noninterest-bearing deposits to deposits ratio | 32.87 | % | 32.61 | % | 37.14 | % | 32.87 | % | 37.14 | % | ||||||||||
Noninterest income to average assets | 0.67 | % | 0.64 | % | 0.81 | % | 0.66 | % | 0.69 | % | ||||||||||
Operating expense to average assets | 2.19 | % | 2.07 | % | 2.16 | % | 2.13 | % | 2.11 | % | ||||||||||
Summary Credit Quality Ratios: | ||||||||||||||||||||
NPAs to assets | 0.11 | % | 0.08 | % | 0.07 | % | 0.11 | % | 0.07 | % | ||||||||||
Nonperforming loans to loans HFI | 0.16 | % | 0.12 | % | 0.10 | % | 0.16 | % | 0.10 | % | ||||||||||
ACL to loans HFI | 1.06 | % | 1.06 | % | 1.08 | % | 1.06 | % | 1.08 | % | ||||||||||
Net charge-offs to average loans | 0.01 | % | 0.00 | % | 0.00 | % | 0.02 | % | 0.01 | % | ||||||||||
Capital Ratios: | ||||||||||||||||||||
Stockholders’ equity to assets | 10.07 | % | 9.74 | % | 9.36 | % | 10.07 | % | 9.36 | % | ||||||||||
Tangible common equity to tangible assets(1) | 10.02 | % | 9.69 | % | 9.31 | % | 10.02 | % | 9.31 | % | ||||||||||
Total risk-based capital to risk-weighted assets | 18.01 | % | 17.84 | % | 18.13 | % | 18.01 | % | 18.13 | % | ||||||||||
Tier 1 risk-based capital to risk-weighted assets | 16.99 | % | 16.82 | % | 17.09 | % | 16.99 | % | 17.09 | % | ||||||||||
Common equity Tier 1 capital to risk-weighted assets | 16.99 | % | 16.82 | % | 17.09 | % | 16.99 | % | 17.09 | % | ||||||||||
Tier 1 risk-based capital to average assets | 11.74 | % | 11.44 | % | 11.48 | % | 11.74 | % | 11.48 | % | ||||||||||
(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) | 2024 |
2024 |
2023 |
2023 |
2023 |
|||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and due from banks | $ | 35,035 | $ | 19,401 | $ | 53,062 | $ | 42,413 | $ | 36,662 | ||||||||||
Interest-bearing deposits in other banks | 178,038 | 210,404 | 252,364 | 279,786 | 185,409 | |||||||||||||||
Securities available-for-sale, at fair value | 526,890 | 545,967 | 570,092 | 529,046 | 588,478 | |||||||||||||||
Securities held-to-maturity, at amortized cost | 136,824 | 139,328 | 141,236 | 143,420 | 146,569 | |||||||||||||||
Equity securities, at fair value | 2,921 | 2,934 | 2,965 | 2,833 | 3,946 | |||||||||||||||
Nonmarketable equity securities | 2,283 | 2,261 | 2,239 | 2,190 | 4,330 | |||||||||||||||
Loans held for sale | 3,878 | 1,653 | 1,306 | 2,348 | 4,586 | |||||||||||||||
Loans held for investment | 2,047,890 | 2,038,072 | 1,992,858 | 1,948,606 | 1,947,631 | |||||||||||||||
Allowance for credit losses | (21,627 | ) | (21,564 | ) | (21,336 | ) | (21,183 | ) | (21,085 | ) | ||||||||||
Premises and equipment, net | 57,910 | 57,539 | 57,088 | 56,466 | 55,566 | |||||||||||||||
Accrued interest receivable | 9,570 | 9,995 | 9,945 | 8,778 | 8,239 | |||||||||||||||
Bank-owned life insurance | 29,947 | 29,731 | 29,529 | 29,332 | 29,141 | |||||||||||||||
Intangible assets | 1,546 | 1,546 | 1,546 | 1,546 | 1,546 | |||||||||||||||
Right-of-use assets | 2,973 | 3,091 | 3,629 | 3,757 | 3,885 | |||||||||||||||
Other assets | 34,450 | 32,940 | 32,287 | 36,815 | 32,291 | |||||||||||||||
Total Assets | $ | 3,048,528 | $ | 3,073,298 | $ | 3,128,810 | $ | 3,066,153 | $ | 3,027,194 | ||||||||||
LIABILITIES | ||||||||||||||||||||
Noninterest-bearing deposits | $ | 892,942 | $ | 895,439 | $ | 916,456 | $ | 972,155 | $ | 989,509 | ||||||||||
Interest-bearing deposits | 1,823,704 | 1,850,452 | 1,885,432 | 1,787,738 | 1,674,674 | |||||||||||||||
Total Deposits | 2,716,646 | 2,745,891 | 2,801,888 | 2,759,893 | 2,664,183 | |||||||||||||||
Other borrowed funds | — | — | — | — | 60,000 | |||||||||||||||
Accrued interest payable | 8,747 | 8,959 | 8,000 | 6,800 | 4,098 | |||||||||||||||
Lease liabilities | 3,100 | 3,215 | 3,767 | 3,892 | 4,015 | |||||||||||||||
Accrued expenses and other liabilities | 13,045 | 15,919 | 11,304 | 13,617 | 11,526 | |||||||||||||||
Total Liabilities | 2,741,538 | 2,773,984 | 2,824,959 | 2,784,202 | 2,743,822 | |||||||||||||||
COMMITMENTS AND CONTINGENCIES | — | — | — | — | — | |||||||||||||||
STOCKHOLDERS’ EQUITY | ||||||||||||||||||||
Preferred stock, no par value | — | — | — | — | — | |||||||||||||||
Common stock, no par value | 44,413 | 45,177 | 55,136 | 58,031 | 59,187 | |||||||||||||||
Additional paid-in capital | 2,590 | 2,485 | 2,407 | 2,327 | 2,248 | |||||||||||||||
Retained earnings | 321,719 | 314,352 | 306,802 | 299,079 | 291,630 | |||||||||||||||
Accumulated other comprehensive income (loss) | (61,732 | ) | (62,700 | ) | (60,494 | ) | (77,486 | ) | (69,693 | ) | ||||||||||
Total Stockholders’ Equity | 306,990 | 299,314 | 303,851 | 281,951 | 283,372 | |||||||||||||||
Total Liabilities and Stockholders’ Equity | $ | 3,048,528 | $ | 3,073,298 | $ | 3,128,810 | $ | 3,066,153 | $ | 3,027,194 |
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) | ||||||||||||||||||||
For the Three Months Ended | For the Six Months Ended |
|||||||||||||||||||
(in thousands) | 2024 |
2024 |
2023 |
2024 |
2023 |
|||||||||||||||
INTEREST AND DIVIDEND INCOME | ||||||||||||||||||||
Interest and fees on loans | $ | 26,882 | $ | 25,893 | $ | 22,851 | $ | 52,775 | $ | 44,616 | ||||||||||
Interest on securities | 4,068 | 4,064 | 3,665 | 8,132 | 7,231 | |||||||||||||||
Interest on federal funds sold | — | — | 251 | — | 886 | |||||||||||||||
Interest on deposits in other banks | 2,709 | 3,039 | 1,671 | 5,748 | 3,409 | |||||||||||||||
Dividends on stock | 22 | 22 | 33 | 44 | 61 | |||||||||||||||
Total Interest and Dividend Income | 33,681 | 33,018 | 28,471 | 66,699 | 56,203 | |||||||||||||||
INTEREST EXPENSE | ||||||||||||||||||||
Interest on deposits | 11,894 | 11,655 | 6,933 | 23,549 | 11,756 | |||||||||||||||
Interest on other borrowed funds | — | — | 28 | — | 28 | |||||||||||||||
Total Interest Expense | 11,894 | 11,655 | 6,961 | 23,549 | 11,784 | |||||||||||||||
Net Interest Income | 21,787 | 21,363 | 21,510 | 43,150 | 44,419 | |||||||||||||||
Provision for credit losses | 300 | 300 | 300 | 600 | 300 | |||||||||||||||
Net Interest Income After Provision for Credit Losses | 21,487 | 21,063 | 21,210 | 42,550 | 44,119 | |||||||||||||||
NONINTEREST INCOME | ||||||||||||||||||||
Service charges on deposit accounts | 1,367 | 1,368 | 1,435 | 2,735 | 2,828 | |||||||||||||||
Debit card income, net | 949 | 1,022 | 924 | 1,971 | 1,858 | |||||||||||||||
Mortgage loan income | 650 | 456 | 645 | 1,106 | 920 | |||||||||||||||
Brokerage income | 893 | 987 | 923 | 1,880 | 1,730 | |||||||||||||||
Loan and deposit income | 492 | 492 | 517 | 984 | 995 | |||||||||||||||
Bank-owned life insurance income | 216 | 202 | 188 | 418 | 366 | |||||||||||||||
Gain (Loss) on equity securities | (13 | ) | (31 | ) | (64 | ) | (44 | ) | (32 | ) | ||||||||||
SBIC income | 454 | 352 | 1,380 | 806 | 1,559 | |||||||||||||||
Other income (loss) | 90 | 80 | 59 | 170 | 123 | |||||||||||||||
Total Noninterest Income | 5,098 | 4,928 | 6,007 | 10,026 | 10,347 | |||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||
Personnel expenses | 9,603 | 9,550 | 9,547 | 19,154 | 18,547 | |||||||||||||||
Occupancy and equipment expenses | 1,698 | 1,616 | 1,554 | 3,314 | 3,271 | |||||||||||||||
Technology expenses | 724 | 709 | 642 | 1,433 | 1,390 | |||||||||||||||
Advertising | 408 | 337 | 343 | 745 | 624 | |||||||||||||||
Other business development expenses | 593 | 475 | 494 | 1,068 | 930 | |||||||||||||||
Data processing expense | 651 | 347 | 638 | 998 | 1,038 | |||||||||||||||
Other taxes | 500 | 737 | 693 | 1,237 | 1,378 | |||||||||||||||
Loan and deposit expenses | 309 | (42 | ) | 284 | 267 | 489 | ||||||||||||||
Legal and professional expenses | 729 | 618 | 580 | 1,347 | 1,097 | |||||||||||||||
Regulatory assessment expenses | 401 | 404 | 397 | 805 | 804 | |||||||||||||||
Other operating expenses | 1,073 | 1,122 | 960 | 2,194 | 2,052 | |||||||||||||||
Total Operating Expenses | 16,689 | 15,873 | 16,132 | 32,562 | 31,620 | |||||||||||||||
Income Before Income Tax Expense | 9,896 | 10,118 | 11,085 | 20,014 | 22,846 | |||||||||||||||
Income tax expense | 1,909 | 1,930 | 2,117 | 3,839 | 4,280 | |||||||||||||||
Net Income | $ | 7,987 | $ | 8,188 | $ | 8,968 | $ | 16,175 | $ | 18,566 |
NET INTEREST INCOME AND NET INTEREST MARGIN (UNAUDITED) | ||||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||||
(dollars in thousands) | Average Balance Outstanding |
Interest Income/ Expense |
Average Yield/ Rate |
Average Balance Outstanding |
Interest Income/ Expense |
Average Yield/ Rate |
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Assets | ||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||
Loans(1,2) | $ | 2,042,602 | $ | 26,882 | 5.21 | % | $ | 2,015,063 | $ | 25,893 | 5.09 | % | ||||||||||
Securities - taxable | 546,466 | 3,069 | 2.25 | % | 569,600 | 3,048 | 2.14 | % | ||||||||||||||
Securities - tax-exempt | 193,954 | 999 | 2.06 | % | 197,817 | 1,016 | 2.05 | % | ||||||||||||||
Interest-bearing deposits in other banks | 199,668 | 2,709 | 5.43 | % | 224,301 | 3,039 | 5.42 | % | ||||||||||||||
Nonmarketable equity securities | 2,262 | 22 | 3.96 | % | 2,240 | 22 | 3.95 | % | ||||||||||||||
Total interest-earning assets | 2,984,952 | $ | 33,681 | 4.48 | % | 3,009,021 | $ | 33,018 | 4.35 | % | ||||||||||||
Allowance for credit losses | (21,653 | ) | (21,402 | ) | ||||||||||||||||||
Noninterest-earning assets | 96,631 | 100,486 | ||||||||||||||||||||
Total assets | $ | 3,059,930 | $ | 3,088,105 | ||||||||||||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||
Interest-bearing transaction deposits | $ | 1,230,474 | $ | 5,701 | 1.86 | % | $ | 1,261,361 | $ | 5,680 | 1.81 | % | ||||||||||
Time deposits | 595,120 | 6,193 | 4.19 | % | 582,847 | 5,975 | 4.12 | % | ||||||||||||||
Total interest-bearing deposits | 1,825,594 | 11,894 | 2.62 | % | 1,844,208 | 11,655 | 2.54 | % | ||||||||||||||
Other borrowings | 1 | — | 5.78 | % | — | — | — | % | ||||||||||||||
Total interest-bearing liabilities | 1,825,595 | $ | 11,894 | 2.62 | % | 1,844,208 | $ | 11,655 | 2.54 | % | ||||||||||||
Noninterest-bearing liabilities: | ||||||||||||||||||||||
Noninterest-bearing deposits | 908,930 | 913,114 | ||||||||||||||||||||
Accrued interest and other liabilities | 24,868 | 25,055 | ||||||||||||||||||||
Total noninterest-bearing liabilities | 933,798 | 938,169 | ||||||||||||||||||||
Stockholders’ equity | 300,537 | 305,728 | ||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 3,059,930 | $ | 3,088,105 | ||||||||||||||||||
Net interest income | $ | 21,787 | $ | 21,363 | ||||||||||||||||||
Net interest spread | 1.86 | % | 1.81 | % | ||||||||||||||||||
Net interest margin | 2.87 | % | 2.80 | % | ||||||||||||||||||
Net interest margin FTE(3) | 2.92 | % | 2.83 | % | ||||||||||||||||||
Cost of deposits | 1.75 | % | 1.70 | % | ||||||||||||||||||
Cost of funds | 1.60 | % | 1.56 | % | ||||||||||||||||||
(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 21.0% 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 | ||||||||||||||||||||||
(dollars in thousands) | Average Balance Outstanding |
Interest Income/ Expense |
Average Yield/ Rate |
Average Balance Outstanding |
Interest Income/ Expense |
Average Yield/ Rate |
||||||||||||||||
Assets | ||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||
Loans(1,2) | $ | 2,028,833 | $ | 52,775 | 5.15 | % | $ | 1,925,821 | $ | 44,616 | 4.61 | % | ||||||||||
Securities - taxable | 558,032 | 6,117 | 2.19 | % | 635,640 | 5,160 | 1.63 | % | ||||||||||||||
Securities - tax-exempt | 195,886 | 2,015 | 2.06 | % | 204,856 | 2,071 | 2.02 | % | ||||||||||||||
Federal funds sold | — | — | — | % | 37,497 | 886 | 4.70 | % | ||||||||||||||
Interest-bearing deposits in other banks | 211,985 | 5,748 | 5.42 | % | 142,452 | 3,409 | 4.77 | % | ||||||||||||||
Nonmarketable equity securities | 2,251 | 44 | 3.94 | % | 3,506 | 61 | 3.48 | % | ||||||||||||||
Total interest-earning assets | 2,996,987 | $ | 66,699 | 4.41 | % | 2,949,772 | $ | 56,203 | 3.79 | % | ||||||||||||
Allowance for credit losses | (21,528 | ) | (20,854 | ) | ||||||||||||||||||
Noninterest-earning assets | 98,559 | 89,026 | ||||||||||||||||||||
Total assets | $ | 3,074,018 | $ | 3,017,944 | ||||||||||||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||
Interest-bearing transaction deposits | $ | 1,245,917 | $ | 11,381 | 1.84 | % | $ | 1,283,073 | $ | 7,042 | 1.11 | % | ||||||||||
Time deposits | 588,984 | 12,168 | 4.15 | % | 399,848 | 4,714 | 2.38 | % | ||||||||||||||
Total interest-bearing deposits | 1,834,901 | 23,549 | 2.58 | % | 1,682,921 | 11,756 | 1.41 | % | ||||||||||||||
Other borrowings | 1 | — | 4.78 | % | 995 | 28 | 5.50 | % | ||||||||||||||
Total interest-bearing liabilities | 1,834,902 | $ | 23,549 | 2.58 | % | 1,683,916 | $ | 11,784 | 1.41 | % | ||||||||||||
Noninterest-bearing liabilities: | ||||||||||||||||||||||
Noninterest-bearing deposits | 911,022 | 1,037,540 | ||||||||||||||||||||
Accrued interest and other liabilities | 24,961 | 19,914 | ||||||||||||||||||||
Total noninterest-bearing liabilities | 935,983 | 1,057,454 | ||||||||||||||||||||
Stockholders’ equity | 303,133 | 276,574 | ||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 3,074,018 | $ | 3,017,944 | ||||||||||||||||||
Net interest income | $ | 43,150 | $ | 44,419 | ||||||||||||||||||
Net interest spread | 1.83 | % | 2.38 | % | ||||||||||||||||||
Net interest margin | 2.83 | % | 2.99 | % | ||||||||||||||||||
Net interest margin FTE(3) | 2.89 | % | 3.04 | % | ||||||||||||||||||
Cost of deposits | 1.72 | % | 0.87 | % | ||||||||||||||||||
Cost of funds | 1.58 | % | 0.81 | % | ||||||||||||||||||
(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. |
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED) | ||||||||||||
(dollars in thousands, except per share data) | 2024 |
2024 |
2023 |
|||||||||
Tangible common equity | ||||||||||||
Total stockholders’ equity | $ | 306,990 | $ | 299,314 | $ | 283,372 | ||||||
Adjustments: | ||||||||||||
Intangible assets | (1,546 | ) | (1,546 | ) | (1,546 | ) | ||||||
Total tangible common equity (non-GAAP) | $ | 305,444 | $ | 297,768 | $ | 281,826 | ||||||
Realized common equity | ||||||||||||
Total stockholders’ equity | $ | 306,990 | $ | 299,314 | $ | 283,372 | ||||||
Adjustments: | ||||||||||||
Accumulated other comprehensive (income) loss | 61,732 | 62,700 | 69,693 | |||||||||
Total realized common equity (non-GAAP) | $ | 368,722 | $ | 362,014 | $ | 353,065 | ||||||
Common shares outstanding | 6,886,928 | 6,892,448 | 7,175,056 | |||||||||
Book value per share | $ | 44.58 | $ | 43.43 | $ | 39.49 | ||||||
Tangible book value per share (non-GAAP) | $ | 44.35 | $ | 43.20 | $ | 39.28 | ||||||
Realized book value per share (non-GAAP) | $ | 53.54 | $ | 52.52 | $ | 49.21 | ||||||
Tangible assets | ||||||||||||
Total assets | $ | 3,048,528 | $ | 3,073,298 | $ | 3,027,194 | ||||||
Adjustments: | ||||||||||||
Intangible assets | (1,546 | ) | (1,546 | ) | (1,546 | ) | ||||||
Total tangible assets (non-GAAP) | $ | 3,046,982 | $ | 3,071,752 | $ | 3,025,648 | ||||||
Total stockholders’ equity to assets | 10.07 | % | 9.74 | % | 9.36 | % | ||||||
Tangible common equity to tangible assets (non-GAAP) | 10.02 | % | 9.69 | % | 9.31 | % |
![](https://ml.globenewswire.com/media/NDFhNDQ0NDEtZGIzMy00MWJjLTlhM2YtNWZkZGRiODVkZTMwLTUwMDA4MDU0MQ==/tiny/Red-River-Bancshares-Inc-.png)
Source: Red River Bancshares, Inc.