rrbi-20220128
0001071236false00010712362022-01-282022-01-28

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

January 28, 2022
Date of Report (Date of earliest event reported)

Red River Bancshares, Inc.
(Exact Name of Registrant as Specified in Charter)
Louisiana
001-38888
72-1412058
(State or Other Jurisdiction
of Incorporation)
(Commission
File Number)
(IRS Employer
Identification No.)
1412 Centre Court Drive, Suite 501, Alexandria, Louisiana
71301
(Address of Principal Executive Offices)
(Zip Code)

(318) 561-5028
Registrant's telephone number, including area code

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading
Symbol(s)
Name of each exchange
on which registered
Common Stock, no par valueRRBIThe Nasdaq Stock Market, LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.



Item. 2.02    Results of Operations and Financial Condition.
On January 28, 2022, Red River Bancshares, Inc. (the "Company") issued a press release announcing its financial results for the fourth quarter and year ended December 31, 2021. A copy of the press release is attached hereto as Exhibit 99.1, which is incorporated herein by reference.
As provided in General Instruction B.2 to Form 8-K, the information furnished in Item 2.02 and Exhibit 99.1 of this Current Report on Form 8-K shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, and such information shall not be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item. 9.01     Financial Statements and Exhibits.
(d)    Exhibits. The following are furnished as exhibits to this Current Report on Form 8-K.
Exhibit
Number
  Description of Exhibit
99.1
104Cover Page Interactive Data File (embedded within the Inline XBRL document)



SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated: January 28, 2022
RED RIVER BANCSHARES, INC.
By:/s/ Isabel V. Carriere
Isabel V. Carriere, CPA, CGMA
Executive Vice President and Chief Financial Officer
(Principal Financial Officer and Principal Accounting Officer)

Document
Exhibit 99.1
https://cdn.kscope.io/8a3b510370c6080c07d1c197962d80fe-bancshareslogo.jpg
FOR IMMEDIATE RELEASE

Red River Bancshares, Inc. Reports Fourth Quarter and Year-End 2021 Financial Results
ALEXANDRIA, Louisiana, January 28, 2022, (GLOBE NEWSWIRE) -- Red River Bancshares, Inc. (the “Company”) (Nasdaq: RRBI), the holding company for Red River Bank (the “Bank”), announced today its financial results for the fourth quarter and year ended 2021.
Net income for the fourth quarter of 2021 was $8.5 million, or $1.17 per diluted common share ("EPS"), an increase of $372,000, or 4.6%, compared to $8.1 million, or $1.12 EPS, for the third quarter of 2021, and an increase of $1.2 million, or 17.2%, compared to $7.3 million, or $0.99 EPS, for the fourth quarter of 2020. For the fourth quarter of 2021, the quarterly return on assets was 1.09% and the quarterly return on equity was 11.33%.
Net income for the year ended December 31, 2021, was $33.0 million, or $4.51 EPS, an increase of $4.8 million, or 17.1%, compared to $28.1 million, or $3.83 EPS, for the year ended December 31, 2020. For the year ended December 31, 2021, the return on assets was 1.13% and the return on equity was 11.21%.
Fourth Quarter and Year-End 2021 Performance and Operational Highlights
In the fourth quarter of 2021, the Company had robust deposit and asset growth, solid earnings, and a continued high level of liquidity. The Company began providing banking services in New Orleans, Louisiana, our newest market, through a combined loan and deposit production office ("LPO/DPO"). The Company also finalized a large private stock repurchase that completed the stock repurchase program announced on August 31, 2021.
The fourth quarter of 2021 began with a declining trend of COVID-19 cases and hospitalizations in the Louisiana markets served by Red River Bank. However, as a result of the emergence of the Omicron variant in December 2021, the number of cases and hospitalizations increased toward the end of the quarter. Economic activity in Louisiana remained relatively stable, although the economy is still impacted by supply chain disruptions and labor shortages.
Net income for the fourth quarter of 2021 was $8.5 million, $372,000 higher than the prior quarter, primarily due to higher net interest income, partially offset by higher personnel expenses.
Assets increased $203.9 million in the fourth quarter of 2021 to $3.22 billion as of December 31, 2021, primarily driven by a $205.8 million increase in deposits. The deposit growth was largely the result of customers maintaining higher deposit balances and the seasonal inflow of funds from public entity customers.
Net interest income for the fourth quarter of 2021 was $18.8 million, $666,000 higher than the prior quarter. This increase was primarily due to deploying funds into loans and securities.
Personnel expenses for the fourth quarter of 2021 were $8.4 million, $406,000 higher than the prior quarter. This increase was primarily due to adding new staff in connection with our expansion in new and existing markets.
There was $196,000 of nonrecurring gains on sales of properties in the fourth quarter of 2021.
Red River Bank is participating in the Small Business Administration ("SBA") Paycheck Protection Program ("PPP"). As of December 31, 2021, PPP loans were $17.6 million, net of $626,000 of deferred income, or 1.0% of loans held for investment ("HFI"). In the fourth quarter of 2021, forgiveness payments on PPP loans resulted in a $28.4 million decrease in PPP loans, net of deferred fees. PPP loan income for the fourth quarter of 2021 was $1.2 million, $155,000 lower than the prior quarter. PPP loan income for 2021 was $5.8 million, compared to $5.6 million for 2020.
As of December 31, 2021, non-PPP loans HFI were $1.67 billion,(1) an increase of $89.7 million, or 5.7%, from September 30, 2021. The growth in non-PPP loans HFI was a result of new loans in New Orleans, our newest market, and increased loan activity in other markets.
Nonperforming assets ("NPA(s)") decreased $1.4 million in the fourth quarter and were $979,000, or 0.03% of assets as of December 31, 2021. As of December 31, 2021, the allowance for loan losses ("ALL") was $19.2 million, or 1.14% of loans HFI and 1.15%(1) of non-PPP loans HFI (non-GAAP).
We paid a quarterly cash dividend of $0.07 per common share.
In the third quarter of 2021, the board of directors renewed a stock repurchase program, authorizing the Company to purchase up to $5.0 million of outstanding shares of common stock between September 1, 2021 and August 31, 2022. In accordance with this stock repurchase program, in the fourth quarter of 2021 we entered into a privately-negotiated stock repurchase agreement and repurchased 96,245 shares of our common stock for $4.9 million. As a result of this transaction, the Company has purchased the full amount authorized by this stock repurchase program.
In the fourth quarter of 2021, as part of our continued Louisiana market expansion plan, we began operations in our newest market, New Orleans, Louisiana. We have hired a New Orleans market president and seven additional New
____________________
(1) Non-GAAP financial measure. Calculations of this measure and reconciliations to GAAP are included in the schedules accompanying this release.
1


Orleans bankers. On December 6, 2021, we opened an LPO/DPO in downtown New Orleans and began providing banking services in this new market.
In our Acadiana market, renovations have been completed on a new banking center location that we purchased in 2020. This location opened as the first Red River Bank full-service banking center in Lafayette, Louisiana on January 26, 2022. Red River Bank also has an LPO/DPO in the Acadiana market.
Blake Chatelain, President and Chief Executive Officer, stated, "The fourth quarter of 2021 resulted in robust balance sheet growth, consistent performance, improved asset quality, continued execution of our organic growth plans, and a significant stock buyback transaction.
"Deposits and assets increased significantly in the fourth quarter of 2021 due to customers maintaining higher deposit balances and the seasonal inflow of public entity funds. Loan growth faced headwinds with loan paydowns and payoffs; however, these challenges were offset by lending opportunities in our newer markets and our lenders' calling activity. This activity resulted in a 5.7% increase in non-PPP loans in the fourth quarter of 2021.
"In December 2021, we opened an LPO/DPO in the New Orleans downtown business district, and our bankers are seeing steady activity already. In addition to a team of eight local bankers hired for the New Orleans market, we were pleased to add an additional, experienced commercial lender in our Northshore market.
"In our Acadiana market, we were excited to have opened our first full-service banking center in Lafayette in January 2022.
"As a result of having the stock buyback program, we were able to repurchase a large block of shares in a privately-negotiated transaction. This transaction utilized all of the funds in the existing stock repurchase program. We expect to execute a new stock repurchase program in the first quarter of 2022, subject to board approval and market conditions.
"We are saddened by the loss of our longtime friend and founding director of the Company and the Bank, Barry Hines, who passed away in late December 2021. Barry made tremendous contributions to the Company and the Bank, and his wit, wisdom, counsel, and love of life will be greatly missed.
"As we begin 2022, I want to recognize the Red River Bank team members who made 2021 a successful year. They worked tirelessly through many challenges to take care of our customers and to continue to build a strong, solid, community bank focused on building shareholder value. Also, on behalf of the Red River Bancshares, Inc. board of directors, I want to thank our shareholders for their loyalty, enthusiasm, and support over the years. We look forward to continued success in 2022 and beyond."
Net Interest Income and Net Interest Margin FTE
Net interest income increased and the net interest margin fully tax equivalent ("FTE") decreased for the fourth quarter of 2021 when compared to the prior quarter. These measures were both impacted by a continued high level of liquidity and the continued low interest rate environment.
Net interest income for the fourth quarter of 2021 was $18.8 million, which was $666,000, or 3.7%, higher than the third quarter of 2021, due to a $633,000 increase in interest and dividend income and a $33,000 decrease in interest expense. The increase in interest and dividend income was primarily due to an increase in non-PPP loan income and an increase in securities income, partially offset by a decrease in PPP loan income. Non-PPP loan income increased $577,000 due to a $69.7 million increase in the average balance of non-PPP loans, partially offset by lower rates on new and renewed non-PPP loans. Securities income increased $192,000 due to a higher average balance of securities resulting from investing short-term liquid assets into securities, partially offset by the impact of lower yields compared to the prior quarter. PPP loan income decreased $155,000 due to a lower average balance of PPP loans outstanding and lower fees recognized to income on PPP loans. Interest expense decreased in the fourth quarter of 2021 as a result of our third quarter adjustment to rates, which impacted new and renewing time deposits, partially offset by an increase in the average balance of interest-bearing transaction deposits.
The net interest margin FTE decreased eight basis points ("bp(s)") to 2.52% for the fourth quarter of 2021, compared to 2.60% for the prior quarter. Contributing to this decrease was an increase in the average balance of short-term liquid assets, an 11 bp decrease in the yield on securities, and a three bp decrease in the yield on non-PPP loans. Average short-term liquid assets were $701.0 million, which was $68.7 million, or 10.9%, higher than the prior quarter and 23.4% of average earning assets. In the fourth quarter of 2021, on a stand-alone basis, this level of liquidity had a 73 bp dilutive impact to the net interest margin FTE. The yield on securities decreased because we reallocated funds from short-term liquid assets yielding 0.14% into securities yielding 0.99%, which was a lower yield than the existing portfolio. The net interest margin FTE for the fourth quarter of 2021 benefited from an increase in PPP loan yield and a seven bp decrease in the rate on time deposits as a result of our third quarter adjustment to deposit rates, which impacted new and renewing time deposits.
Average PPP loans outstanding, net of deferred income, for the fourth quarter of 2021 were $29.2 million, which was $34.0 million lower than the prior quarter. During the fourth quarter we received $29.6 million in SBA forgiveness and borrower repayments on PPP loans, compared to $37.7 million in the prior quarter. PPP loans have a 1.0% interest rate, and PPP loan origination fees are
____________________
(1) Non-GAAP financial measure. Calculations of this measure and reconciliations to GAAP are included in the schedules accompanying this release.
2


recorded to interest income over the loan term, or until the loans are forgiven by the SBA or repaid by the borrower. When PPP loan forgiveness payments or borrower payments are received in full, the remaining portion of origination fees are recorded to income. For the fourth quarter of 2021, PPP loan interest and fees totaled $1.2 million, resulting in a 16.46% yield, compared to $1.4 million in interest and fees and an 8.57% yield for the prior quarter. The decrease in PPP loan income was primarily due to a lower amount of PPP loans forgiven by the SBA in the fourth quarter of 2021 than in the third quarter. The increase in PPP loan yield was primarily due to forgiving loans with higher origination fee percentages in the fourth quarter of 2021 when compared to the prior quarter. As of December 31, 2021, deferred PPP fees were $626,000.
Excluding PPP loan income, net interest income (non-GAAP) for the fourth quarter of 2021 was $17.6 million,(1) which was $821,000, or 4.9%, higher than the third quarter of 2021. Also, with PPP loans excluded for the fourth quarter of 2021, the yield on non-PPP loans (non-GAAP) was 3.90%,(1) and the net interest margin FTE (non-GAAP) was 2.38%(1). For the fourth quarter of 2021, PPP loans had a 23 bp accretive impact to the yield on loans and a 14 bp accretive impact to the net interest margin FTE.
The Federal Open Market Committee is expected to raise the target federal funds rate several times in 2022. Our balance sheet is asset sensitive, and historically, our deposit interest rates have adjusted more slowly than the change in the federal funds rate. As of December 31, 2021, floating rate loans were 15.0% of loans HFI, and floating rate transaction deposits were 4.4% of interest-bearing transaction deposits. Dependent upon balance sheet activity and excluding PPP loans, we expect an increasing rate environment to have a positive effect on our net interest income and net interest margin FTE in 2022.
Provision for Loan Losses
The provision for loan losses for the fourth quarter of 2021 was $150,000, which was consistent with the prior quarter provision. The economic activity in Louisiana remained relatively consistent, and our asset quality metrics improved in both quarters. Provision expense was $1.9 million for 2021, compared to $6.3 million for 2020. The provision for loan losses was higher in 2020 due to economic pressures relating to the COVID-19 pandemic.
Noninterest Income
Noninterest income totaled $5.7 million for the fourth quarter of 2021, an increase of $29,000, or 0.5%, compared to $5.6 million for the previous quarter. The increase was mainly due to gains on sales of properties, partially offset by lower mortgage loan income and reduced income from a Small Business Investment Company ("SBIC") limited partnership of which Red River Bank is a member.
Other income for the fourth quarter of 2021 was $214,000, compared to a net loss of $14,000 for the third quarter of 2021. In the fourth quarter of 2021, other real estate owned ("OREO") properties and a bank property were sold, resulting in a nonrecurring $196,000 net gain on sale. In the third quarter of 2021, a $34,000 valuation reduction was recorded on an OREO property.
Mortgage loan income totaled $1.7 million for the fourth quarter of 2021, a decrease of $103,000, or 5.8%, compared to $1.8 million for the third quarter of 2021. This decrease was primarily the result of seasonal, reduced mortgage loan demand.
SBIC income for the fourth quarter of 2021 was $38,000, a decrease of $98,000, or 72.1%, from the prior quarter due to lower operating income being distributed by the SBIC.
Operating Expenses
Operating expenses for the fourth quarter of 2021 totaled $14.0 million, an increase of $332,000, or 2.4%, compared to $13.7 million for the previous quarter. This increase was mainly due to higher personnel expenses, partially offset by lower loan and deposit expenses and lower technology expenses.
Personnel expenses totaled $8.4 million for the fourth quarter of 2021, up $406,000, or 5.1%, from the third quarter of 2021. This increase was due to adding new staff in expansion markets in the fourth quarter of 2021, combined with a lower COVID-19 payroll benefit resulting from the expiration of employer credits under the Families First Coronavirus Response Act on September 30, 2021.
Loan and deposit expenses totaled $243,000 for the fourth quarter of 2021, a decrease of $82,000, or 25.2%, from the previous quarter. This decrease was a result of the transition to a new appraisal tracking system in the second quarter of 2021, which temporarily increased loan expenses in the third quarter of 2021. The new, digital appraisal system has improved the efficiency of our appraisal process.
Technology expenses totaled $667,000 for the fourth quarter of 2021, a decrease of $67,000, or 9.1%, from the previous quarter. This decrease was due to $35,000 of nonrecurring expenses in the third quarter of 2021 related to opening a new banking center in Lake Charles, as well as lower communication expenses in the fourth quarter of 2021 resulting from a more favorable contract with a communications service provider.

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(1) Non-GAAP financial measure. Calculations of this measure and reconciliations to GAAP are included in the schedules accompanying this release.
3


Asset Overview
As of December 31, 2021, assets totaled $3.22 billion, which was $203.9 million, or 6.8%, higher than $3.02 billion as of September 30, 2021. This increase was primarily due to a $205.8 million increase in deposits in the fourth quarter. Loans HFI increased $61.2 million, or 3.8%, in the fourth quarter of 2021. Because deposit growth exceeded loan growth, excess funds were deployed into securities and interest-bearing deposits in other banks. Securities available-for-sale increased $91.0 million to $659.2 million and were 21.1% of earning assets as of December 31, 2021. Interest-bearing deposits in other banks increased $67.8 million to $761.7 million and were 24.4% of earning assets as of December 31, 2021. The loans HFI to deposits ratio was 57.86% as of December 31, 2021, compared to 59.99% as of September 30, 2021.
Assets excluding PPP loans, net of deferred income (non-GAAP) as of December 31, 2021, totaled $3.21 billion,(1) an increase of $232.3 million, or 7.8%, from $2.97 billion(1) as of September 30, 2021. The non-PPP loans HFI to deposits ratio (non-GAAP) was 57.25%(1) as of December 31, 2021, compared to 58.29%(1) as of September 30, 2021.
Loans
Loans HFI as of December 31, 2021, were $1.68 billion, an increase of $61.2 million, or 3.8%, from September 30, 2021. As of December 31, 2021, non-PPP loans HFI were $1.67 billion,(1) an increase of $89.7 million, or 5.7%, from September 30, 2021, due to new loan activity in New Orleans, our newest market, and increased activity in other markets.
Red River Bank began participating in the SBA PPP in the second quarter of 2020. Through December 31, 2021, we had received $198.6 million in SBA forgiveness and borrower payments on 99.9% of the PPP First Draw loans originated and $40.6 million in SBA forgiveness and borrower payments on 78.7% of the PPP Second Draw loans originated. As of December 31, 2021, PPP loans totaled $17.6 million, net of $626,000 of deferred income, and were 1.0% of loans HFI.
Our health care loans are made up of a diversified portfolio of health care providers. As of December 31, 2021, total health care credits were 8.3% of non-PPP loans HFI (non-GAAP), nursing and residential care loans were 3.6% of non-PPP loans HFI (non-GAAP), and loans to physician and dental practices were 4.6% of non-PPP loans HFI (non-GAAP). The average loan size of health care credits was $295,000.
On March 5, 2021, it was announced that certain U.S. Dollar London Interbank Offered Rate ("LIBOR") rates would cease to be published after June 30, 2023. As of December 31, 2021, 3.6% of our non-PPP loans HFI (non-GAAP) were LIBOR-based with a setting that expires June 30, 2023. Alternative rate language is present in each credit agreement with a LIBOR-based rate. We do not anticipate any issues with transitioning each loan to a non-LIBOR-based rate.
Asset Quality and Allowance for Loan Losses
NPAs totaled $979,000 as of December 31, 2021, down $1.4 million, or 59.7%, from September 30, 2021, primarily due to the payoff and charge-off of nonaccrual loans. The ratio of NPAs to total assets improved to 0.03% as of December 31, 2021, from 0.08% as of September 30, 2021.
As of December 31, 2021, the ALL was $19.2 million. The ratio of ALL to loans HFI was 1.14% as of December 31, 2021, and 1.18% as of September 30, 2021. The ratio of ALL to non-PPP loans HFI (non-GAAP) was 1.15%(1) as of December 31, 2021, and 1.22%(1) as of September 30, 2021. The net charge-off ratio was 0.01% for the fourth quarter of 2021 and 0.03% for the third quarter of 2021.
Deposits
Deposits as of December 31, 2021, were $2.91 billion, an increase of $205.8 million, or 7.6%, compared to September 30, 2021. Average deposits for the fourth quarter of 2021 were $2.79 billion, an increase of $188.6 million, or 7.3%, from the prior quarter. This increase was primarily a result of customers maintaining higher deposit balances and the seasonal inflow of funds from public entity customers. Noninterest-bearing deposits totaled $1.15 billion as of December 31, 2021, up $6.0 million, or 0.5%, from September 30, 2021. As of December 31, 2021, noninterest-bearing deposits were 39.50% of total deposits. Interest-bearing deposits totaled $1.76 billion as of December 31, 2021, up $199.8 million, or 12.8%, compared to September 30, 2021.
Stockholders’ Equity
Total stockholders’ equity decreased to $298.2 million as of December 31, 2021, from $298.7 million as of September 30, 2021. The $538,000 decrease in stockholders’ equity during the fourth quarter of 2021 was attributed to the repurchase of 96,245 shares of our common stock for $4.9 million, a $3.7 million, net of tax, market adjustment to accumulated other comprehensive income related to securities available-for-sale, and $502,000 in cash dividends, partially offset by $8.5 million of net income, and $63,000 of stock compensation. We paid a quarterly cash dividend of $0.07 per share on December 16, 2021.
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(1) Non-GAAP financial measure. Calculations of this measure and reconciliations to GAAP are included in the schedules accompanying this release.
4


Non-GAAP Disclosure
Our accounting and reporting policies conform to United States generally accepted accounting principles ("GAAP") and the prevailing practices in the banking industry. Certain financial measures used by management to evaluate our operating performance are discussed as supplemental non-GAAP performance measures. In accordance with the Securities and Exchange Commission's ("SEC") rules, we classify a financial measure as being a non-GAAP financial measure if that financial measure excludes or includes amounts, or is subject to adjustments that have the effect of excluding or including amounts, that are included or excluded, as the case may be, in the most directly comparable measure calculated and presented in accordance with GAAP as in effect from time to time in the U.S.
Management and the board of directors review tangible book value per share 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.
About Red River Bancshares, Inc.
The Company is the bank holding company for Red River Bank, a Louisiana state-chartered bank established in 1999 that provides a fully integrated suite of banking products and services tailored to the needs of commercial and retail customers. Red River Bank operates from a network of 27 banking centers throughout Louisiana and two combined loan and deposit production offices, one each in Lafayette, Louisiana and New Orleans, Louisiana. Banking centers are located in the following Louisiana markets: Central, which includes the Alexandria metropolitan statistical area ("MSA"); Northwest, which includes the Shreveport-Bossier City MSA; Capital, which includes the Baton Rouge MSA; Southwest, which includes the Lake Charles MSA; the Northshore, which includes Covington; and Acadiana, which includes the Lafayette MSA.
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 SEC from time to time. In addition, our actual financial results in the future may differ from those currently expected due to additional risks and uncertainties of which we are not currently aware or which we do not currently view as, but in the future may become, material to our business or operating results. Due to these and other possible uncertainties and risks, readers are cautioned not to place undue reliance on the forward-looking statements contained in this news release or to make predictions based solely on historical financial performance. Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law. All forward-looking statements, express or implied, included in this news release are qualified in their entirety by this cautionary statement.
Contact:
Isabel V. Carriere, CPA, CGMA
Executive Vice President and Chief Financial Officer
318-561-4023
icarriere@redriverbank.net
5



FINANCIAL HIGHLIGHTS (UNAUDITED)
As of and for the
Three Months Ended
As of and for the
Year Ended
(Dollars in thousands, except per share data)December 31, 2021September 30,
2021
December 31, 2020December 31, 2021December 31, 2020
Net Income$8,510 $8,138 $7,261 $32,952 $28,145 
Per Common Share Data:
Earnings per share, basic$1.18 $1.12 $0.99 $4.53 $3.84 
Earnings per share, diluted$1.17 $1.12 $0.99 $4.51 $3.83 
Book value per share$41.52 $41.05 $38.97 $41.52 $38.97 
Tangible book value per share(1)
$41.31 $40.84 $38.76 $41.31 $38.76 
Cash dividends per share
$0.07 $0.07 $0.06 $0.28 $0.24 
Shares outstanding7,180,155 7,276,400 7,325,333 7,180,155 7,325,333 
Weighted average shares outstanding, basic
7,229,324 7,278,192 7,325,333 7,281,136 7,322,158 
Weighted average shares outstanding, diluted
7,247,277 7,294,011 7,343,859 7,299,720 7,345,045 
Summary Performance Ratios:
Return on average assets
1.09 %1.11 %1.13 %1.13 %1.22 %
Return on average equity
11.33 %10.83 %10.23 %11.21 %10.39 %
Net interest margin
2.46 %2.54 %3.01 %2.54 %3.09 %
Net interest margin FTE
2.52 %2.60 %3.08 %2.60 %3.14 %
Efficiency ratio
57.33 %57.61 %53.66 %56.39 %55.77 %
Loans HFI to deposits ratio
57.86 %59.99 %67.87 %57.86 %67.87 %
Noninterest-bearing deposits to deposits ratio
39.50 %42.29 %40.32 %39.50 %40.32 %
Noninterest income to average assets
0.72 %0.77 %0.97 %0.84 %1.00 %
Operating expense to average assets
1.79 %1.86 %2.08 %1.87 %2.22 %
Summary Credit Quality Ratios:
Nonperforming assets to total assets
0.03 %0.08 %0.16 %0.03 %0.16 %
Nonperforming loans to loans HFI
0.02 %0.09 %0.21 %0.02 %0.21 %
Allowance for loan losses to loans HFI
1.14 %1.18 %1.13 %1.14 %1.13 %
Net charge-offs to average loans
0.01 %0.03 %0.06 %0.04 %0.14 %
Capital Ratios:
Total stockholders' equity to total assets
9.25 %9.89 %10.80 %9.25 %10.80 %
Tangible common equity to tangible assets (1)
9.20 %9.84 %10.75 %9.20 %10.75 %
Total risk-based capital to risk-weighted assets
17.83 %18.74 %18.68 %17.83 %18.68 %
Tier 1 risk-based capital to risk-weighted assets
16.76 %17.60 %17.55 %16.76 %17.55 %
Common equity Tier 1 capital to risk-weighted assets
16.76 %17.60 %17.55 %16.76 %17.55 %
Tier 1 risk-based capital to average assets
9.67 %10.21 %10.92 %9.67 %10.92 %
(1)Non-GAAP financial measure. Calculations of this measure and reconciliations to GAAP are included in the schedules accompanying this release.
6


RED RIVER BANCSHARES, INC.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in thousands)December 31, 2021September 30,
2021
June 30,
2021
March 31,
2021
December 31, 2020
ASSETS
Cash and due from banks$23,143 $36,614 $33,728 $36,856 $29,537 
Interest-bearing deposits in other banks761,721 693,950 633,744 566,144 417,664 
Securities available-for-sale659,178 568,199 512,012 515,942 498,206 
Equity securities7,846 7,920 3,961 3,951 4,021 
Nonmarketable equity securities3,450 3,449 3,449 3,447 3,447 
Loans held for sale4,290 8,782 12,291 18,449 29,116 
Loans held for investment1,683,832 1,622,593 1,600,388 1,602,086 1,588,446 
Allowance for loan losses(19,176)(19,168)(19,460)(19,377)(17,951)
Premises and equipment, net48,056 47,432 47,414 46,950 46,924 
Accrued interest receivable6,245 5,927 6,039 6,460 6,880 
Bank-owned life insurance28,061 27,886 27,710 22,546 22,413 
Intangible assets1,546 1,546 1,546 1,546 1,546 
Right-of-use assets3,743 3,847 3,950 4,053 4,154 
Other assets12,775 11,807 11,704 11,619 8,231 
Total Assets$3,224,710 $3,020,784 $2,878,476 $2,820,672 $2,642,634 
LIABILITIES
Noninterest-bearing deposits$1,149,672 $1,143,693 $1,031,486 $1,015,350 $943,615 
Interest-bearing deposits1,760,676 1,560,890 1,538,113 1,499,925 1,396,745 
Total Deposits2,910,348 2,704,583 2,569,599 2,515,275 2,340,360 
Accrued interest payable1,310 1,340 1,432 1,699 1,774 
Lease liabilities3,842 3,943 4,042 4,138 4,233 
Accrued expenses and other liabilities11,060 12,230 10,479 14,649 10,789 
Total Liabilities2,926,560 2,722,096 2,585,552 2,535,761 2,357,156 
COMMITMENTS AND CONTINGENCIES— — — — — 
STOCKHOLDERS' EQUITY
Preferred stock, no par value— — — — — 
Common stock, no par value60,233 65,130 65,934 67,093 68,055 
Additional paid-in capital1,814 1,751 1,692 1,638 1,545 
Retained earnings239,876 231,868 224,240 216,511 208,957 
Accumulated other comprehensive income (loss)(3,773)(61)1,058 (331)6,921 
Total Stockholders' Equity298,150 298,688 292,924 284,911 285,478 
Total Liabilities and Stockholders' Equity
$3,224,710 $3,020,784 $2,878,476 $2,820,672 $2,642,634 
7


RED RIVER BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
For the Three Months EndedFor the Year Ended
(in thousands)December 31, 2021September 30, 2021December 31, 2020December 31, 2021December 31, 2020
INTEREST AND DIVIDEND INCOME
Interest and fees on loans$17,415 $16,993 $18,605 $67,923 $69,228 
Interest on securities2,412 2,220 1,834 8,660 7,601 
Interest on federal funds sold21 20 28 88 207 
Interest on deposits in other banks226 202 58 658 322 
Dividends on stock10 20 
Total Interest and Dividend Income20,075 19,442 20,526 77,339 77,378 
INTEREST EXPENSE
Interest on deposits1,300 1,333 1,865 5,617 8,362 
Interest on other borrowed funds— — — — 16 
Total Interest Expense1,300 1,333 1,865 5,617 8,378 
Net Interest Income18,775 18,109 18,661 71,722 69,000 
Provision for loan losses150 150 2,675 1,900 6,293 
Net Interest Income After Provision for Loan Losses18,625 17,959 15,986 69,822 62,707 
NONINTEREST INCOME
Service charges on deposit accounts1,318 1,258 1,107 4,775 4,108 
Debit card income, net1,071 1,094 1,011 4,415 3,641 
Mortgage loan income1,667 1,770 2,679 8,676 8,398 
Brokerage income806 851 598 3,297 2,324 
Loan and deposit income457 413 361 1,738 1,701 
Bank-owned life insurance income175 176 143 648 568 
Gain (Loss) on equity securities(75)(41)(11)(175)85 
Gain (Loss) on sale and call of securities— 93 194 1,441 
SBIC income38 136 207 654 775 
Other income (loss)214 (14)271 126 
Total Noninterest Income5,672 5,643 6,193 24,493 23,167 
OPERATING EXPENSES
Personnel expenses8,362 7,956 8,089 32,449 31,160 
Occupancy and equipment expenses1,424 1,412 1,367 5,443 5,106 
Technology expenses667 734 680 2,810 2,542 
Advertising230 282 216 921 933 
Other business development expenses280 283 238 1,169 1,020 
Data processing expense537 528 493 1,982 1,905 
Other taxes498 527 425 2,082 1,733 
Loan and deposit expenses243 325 244 1,016 1,052 
Legal and professional expenses493 453 554 1,683 2,141 
Regulatory assessment expenses268 251 201 933 538 
Other operating expenses1,014 933 829 3,767 3,276 
Total Operating Expenses14,016 13,684 13,336 54,255 51,406 
Income Before Income Tax Expense10,281 9,918 8,843 40,060 34,468 
Income tax expense1,771 1,780 1,582 7,108 6,323 
Net Income8,510 $8,138 $7,261 $32,952 $28,145 
8


RED RIVER BANCSHARES, INC.
NET INTEREST INCOME AND NET INTEREST MARGIN (UNAUDITED)
For the Three Months Ended
December 31, 2021September 30, 2021December 31, 2020
(dollars in thousands)Average
Balance
Outstanding
Interest
Earned/
Interest
Paid
Average
Yield/
Rate
Average
Balance
Outstanding
Interest
Earned/
Interest
Paid
Average
Yield/
Rate
Average
Balance
Outstanding
Interest
Earned/
Interest
Paid
Average
Yield/
Rate
Assets
Interest-earning assets:
Loans(1,2)
$1,654,711 $17,415 4.13 %$1,619,019 $16,993 4.11 %$1,635,103 $18,605 4.47 %
Securities - taxable423,724 1,347 1.27 %340,045 1,181 1.39 %303,689 873 1.15 %
Securities - tax-exempt210,263 1,065 2.03 %203,046 1,039 2.05 %169,621 961 2.27 %
Federal funds sold55,342 21 0.15 %52,589 20 0.15 %80,175 28 0.14 %
Interest-bearing balances due from banks645,627 226 0.14 %579,698 202 0.14 %239,953 58 0.09 %
Nonmarketable equity securities3,449 0.10 %3,448 0.81 %3,446 0.13 %
Total interest-earning assets2,993,116 $20,075 2.64 %2,797,845 $19,442 2.73 %2,431,987 $20,526 3.32 %
Allowance for loan losses(19,164)(19,343)(16,653)
Noninterest-earning assets130,268 135,697 131,220 
Total assets$3,104,220 $2,914,199 $2,546,554 
Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Interest-bearing transaction deposits$1,310,430 $410 0.12 %$1,210,605 $384 0.13 %$983,992 $610 0.25 %
Time deposits341,445 890 1.03 %342,872 949 1.10 %333,575 1,255 1.50 %
Total interest-bearing deposits1,651,875 1,300 0.31 %1,553,477 1,333 0.34 %1,317,567 1,865 0.56 %
Other borrowings— — — %— — — %— — — %
Total interest-bearing liabilities1,651,875 $1,300 0.31 %1,553,477 $1,333 0.34 %1,317,567 $1,865 0.56 %
Noninterest-bearing liabilities:
Noninterest-bearing deposits1,136,342 1,046,139 927,123 
Accrued interest and other liabilities18,050 16,570 19,468 
Total noninterest-bearing liabilities1,154,392 1,062,709 946,591 
Stockholders’ equity297,953 298,013 282,396 
Total liabilities and stockholders’ equity$3,104,220 $2,914,199 $2,546,554 
Net interest income$18,775 $18,109 $18,661 
Net interest spread2.33 %2.39 %2.76 %
Net interest margin2.46 %2.54 %3.01 %
Net interest margin FTE(3)
2.52 %2.60 %3.08 %
Cost of deposits0.18 %0.20 %0.33 %
Cost of funds0.17 %0.19 %0.31 %
(1)Includes average outstanding balances of loans held for sale of $6.1 million, $7.2 million, and $17.1 million for the three months ended December 31, 2021, September 30, 2021, and December 31, 2020, respectively.
(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.
9


RED RIVER BANCSHARES, INC.
LOAN INTEREST INCOME, NET 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 December 31, 2021, September 30, 2021, and December 31, 2020.
For the Three Months Ended
December 31, 2021September 30, 2021December 31, 2020
(dollars in thousands)Average
Balance
Outstanding
Interest/Fees
Earned
Average
Yield
Average
Balance
Outstanding
Interest/Fees
Earned
Average
Yield
Average
Balance
Outstanding
Interest/Fees
Earned
Average
Yield
Loans(1,2)
$1,654,711 $17,415 4.13 %$1,619,019 $16,993 4.11 %$1,635,103 $18,605 4.47 %
Less: PPP loans, net
Average29,191 63,205 161,109 
Interest76 166 419 
Fees1,136 1,201 2,604 
Total PPP loans, net29,191 1,212 16.46 %63,205 1,367 8.57 %161,109 3,023 7.45 %
Non-PPP loans (non-GAAP)(4)
$1,625,520 $16,203 3.90 %$1,555,814 $15,626 3.93 %$1,473,994 $15,582 4.14 %
Net interest income, excluding PPP loan income (non-GAAP)
Net interest income$18,775 $18,109 $18,661 
PPP loan income(1,212)(1,367)(3,023)
Net interest income, excluding PPP loan income (non-GAAP)(4)
$17,563 $16,742 $15,638 
Ratios excluding PPP loans, net (non-GAAP)(4)
Net interest spread2.19 %2.26 %2.47 %
Net interest margin2.33 %2.40 %2.70 %
Net interest margin FTE(3)
2.38 %2.46 %2.77 %
(1)Includes average outstanding balances of loans held for sale of $6.1 million, $7.2 million, and $17.1 million for the three months ended December 31, 2021, September 30, 2021, and December 31, 2020, respectively.
(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. Calculations of this measure and reconciliations to GAAP are included in the schedules accompanying this release.
10


RED RIVER BANCSHARES, INC.
NET INTEREST INCOME AND NET INTEREST MARGIN (UNAUDITED)
For the Year Ended December 31,
20212020
(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)
$1,621,606 $67,923 4.14 %$1,587,351 $69,228 4.30 %
Securities - taxable344,913 4,493 1.30 %287,591 4,598 1.60 %
Securities - tax-exempt202,255 4,167 2.06 %128,416 3,003 2.34 %
Federal funds sold66,934 88 0.13 %67,328 207 0.30 %
Interest-bearing balances due from banks552,501 658 0.12 %129,090 322 0.25 %
Nonmarketable equity securities3,448 10 0.28 %2,842 20 0.71 %
Total interest-earning assets2,791,657 $77,339 2.74 %2,202,618 $77,378 3.47 %
Allowance for loan losses(19,155)(15,192)
Noninterest-earning assets132,611 125,028 
Total assets$2,905,113 $2,312,454 
Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Interest-bearing transaction deposits$1,210,796 $1,648 0.14 %$877,836 $2,824 0.32 %
Time deposits341,746 3,969 1.16 %333,260 5,538 1.66 %
Total interest-bearing deposits1,552,542 5,617 0.36 %1,211,096 8,362 0.69 %
Other borrowings— — — %4,664 16 0.35 %
Total interest-bearing liabilities1,552,542 $5,617 0.36 %1,215,760 $8,378 0.69 %
Noninterest-bearing liabilities:
Noninterest-bearing deposits1,041,238 807,528 
Accrued interest and other liabilities17,507 18,192 
Total noninterest-bearing liabilities1,058,745 825,720 
Stockholders’ equity293,826 270,974 
Total liabilities and stockholders’ equity$2,905,113 $2,312,454 
Net interest income$71,722 $69,000 
Net interest spread2.38 %2.78 %
Net interest margin2.54 %3.09 %
Net interest margin FTE(3)
2.60 %3.14 %
Cost of deposits0.22 %0.41 %
Cost of funds0.20 %0.38 %
(1)Includes average outstanding balances of loans held for sale of $8.6 million and $14.2 million for the year ended December 31, 2021 and 2020, respectively.
(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.

11


RED RIVER BANCSHARES, INC.
LOAN INTEREST INCOME, NET 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 year ended December 31, 2021 and 2020.
For the Year Ended December 31,
20212020
(dollars in thousands)Average
Balance
Outstanding
Interest/Fees
Earned
Average
Yield
Average
Balance
Outstanding
Interest/Fees
Earned
Average
Yield
Loans(1,2)
$1,621,606 $67,923 4.14 %$1,587,351 $69,228 4.30 %
Less: PPP loans, net
Average77,222 127,410 
Interest809 1,351 
Fees4,964 4,211 
Total PPP loans, net
77,222 5,773 7.46 %127,410 5,562 4.35 %
Non-PPP loans (non-GAAP)(4)
$1,544,384 $62,150 3.97 %$1,459,941 $63,666 4.29 %
Net interest income, excluding PPP loan income (non-GAAP)
Net interest income$71,722 $69,000 
PPP loan income(5,773)(5,562)
Net interest income, excluding PPP loan income (non-GAAP)(4)
$65,949 $63,438 
Ratios excluding PPP loans, net (non-GAAP)(4)
Net interest spread2.25 %2.72 %
Net interest margin
2.40 %3.01 %
Net interest margin FTE(3)
2.46 %3.07 %
(1)Includes average outstanding balances of loans held for sale of $8.6 million and $14.2 million for the year ended December 31, 2021 and 2020, respectively.
(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. Calculations of this measure and reconciliations to GAAP are included in the schedules accompanying this release.
12


RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED)
(dollars in thousands, except per share data)December 31,
2021
September 30,
2021
December 31,
2020
Tangible common equity
Total stockholders' equity$298,150 $298,688 $285,478 
Adjustments:
Intangible assets(1,546)(1,546)(1,546)
Total tangible common equity (non-GAAP)$296,604 $297,142 $283,932 
Common shares outstanding7,180,155 7,276,400 7,325,333 
Book value per common share$41.52 $41.05 $38.97 
Tangible book value per common share (non-GAAP)$41.31 $40.84 $38.76 
Tangible assets
Total assets$3,224,710 $3,020,784 $2,642,634 
Adjustments:
Intangible assets(1,546)(1,546)(1,546)
Total tangible assets (non-GAAP)$3,223,164 $3,019,238 $2,641,088 
Total stockholders' equity to assets9.25 %9.89 %10.80 %
Tangible common equity to tangible assets (non-GAAP)9.20 %9.84 %10.75 %
Non-PPP loans HFI
Loans HFI$1,683,832 $1,622,593 $1,588,446 
Adjustments:
PPP loans, net(17,550)(45,962)(118,447)
Non-PPP loans HFI (non-GAAP)$1,666,282 $1,576,631 $1,469,999 
Assets excluding PPP loans, net
Assets$3,224,710 $3,020,784 $2,642,634 
Adjustments:
PPP loans, net(17,550)(45,962)(118,447)
Assets excluding PPP loans, net (non-GAAP)$3,207,160 $2,974,822 $2,524,187 
Allowance for loan losses$19,176 $19,168 $17,951 
Deposits$2,910,348 $2,704,583 $2,340,360 
Loans HFI to deposits ratio57.86 %59.99 %67.87 %
Non-PPP loans HFI to deposits ratio (non-GAAP)57.25 %58.29 %62.81 %
Allowance for loan losses to loans HFI1.14 %1.18 %1.13 %
Allowance for loan losses to non-PPP loans HFI (non-GAAP)1.15 %1.22 %1.22 %

13