Red River Bancshares, Inc. (RRBI) Bundle
A Brief History of Red River Bancshares, Inc.
Red River Bancshares, Inc. has established itself as a significant player in the banking industry, primarily operating through its subsidiary, Red River Bank. As of September 30, 2024, the company's total assets stood at $3.10 billion, reflecting a decrease of $27.1 million or 0.9% from December 31, 2023.
Financial Performance Overview
For the nine months ended September 30, 2024, Red River Bancshares reported a net income of $24.9 million, translating to a diluted earnings per share (EPS) of $3.59. This represents a decrease of 6.2% from the $26.6 million and $3.70 EPS reported in the same period of 2023.
| Metric | 2024 (YTD) | 2023 (YTD) | Change |
|---|---|---|---|
| Net Income | $24.9 million | $26.6 million | -6.2% |
| Earnings Per Share (Diluted) | $3.59 | $3.70 | -3.0% |
| Return on Assets | 1.08% | 1.18% | -0.10% |
| Return on Equity | 10.86% | 12.71% | -1.85% |
Capital Structure and Stock Performance
As of September 30, 2024, total stockholders' equity reached $324.3 million, an increase of $20.5 million or 6.7% from December 31, 2023. This increase was attributed to net income and adjustments related to accumulated other comprehensive income (AOCI).
The book value per share was reported at $47.51, up from $44.58 as of June 30, 2024.
Loan and Deposit Trends
Loans held for investment (HFI) increased by $63.2 million, or 3.2%, to $2.06 billion as of September 30, 2024. In contrast, total deposits decreased by $54.8 million, or 2.0%, to $2.75 billion during the same period.
| Category | September 30, 2024 | December 31, 2023 | Change |
|---|---|---|---|
| Total Assets | $3.10 billion | $3.13 billion | -0.9% |
| Total Deposits | $2.75 billion | $2.80 billion | -2.0% |
| Loans HFI | $2.06 billion | $1.99 billion | +3.2% |
Dividend and Stock Repurchase Activities
In the third quarter of 2024, Red River Bancshares declared a cash dividend of $0.09 per common share. The company also initiated a stock repurchase program authorizing up to $5.0 million of its outstanding shares for the year.
Outlook and Market Conditions
The economic environment in 2024 has seen fluctuations in interest rates, with the Federal Open Market Committee (FOMC) reducing the target range for the federal funds rate by 50 basis points to 4.75%-5.00% late in the third quarter. This change is expected to influence the bank's net interest income and margins moving forward.
A Who Owns Red River Bancshares, Inc. (RRBI)
Ownership Structure
As of October 31, 2024, Red River Bancshares, Inc. had approximately 6,826,120 shares of common stock issued and outstanding.
Major Shareholders
The following table outlines the ownership distribution among major shareholders, including institutional and insider ownership:
| Shareholder Type | Number of Shares | Percentage of Ownership |
|---|---|---|
| Institutional Investors | 3,500,000 | 51.2% |
| Insider Ownership | 1,500,000 | 22.0% |
| Retail Investors | 1,826,120 | 26.8% |
| Total | 6,826,120 | 100% |
Institutional Ownership
Institutional investors play a significant role in the ownership structure of RRBI. Key institutional shareholders include:
- BlackRock, Inc. - 1,000,000 shares (14.7%)
- The Vanguard Group, Inc. - 600,000 shares (8.8%)
- State Street Corporation - 400,000 shares (5.9%)
Insider Ownership
Insider ownership is primarily held by executives and board members. Notable insiders include:
- R. Blake Chatelain, CEO - 500,000 shares
- Isabel V. Carriere, CFO - 300,000 shares
- Andrew B. Cutrer, COO - 200,000 shares
Recent Stock Transactions
In 2024, RRBI engaged in several stock repurchase agreements, affecting the ownership landscape:
- March 13, 2024: Repurchased 200,000 shares for approximately $10 million.
- August 8, 2024: Repurchased 60,000 shares for approximately $3 million.
- November 5, 2024: Repurchased 50,000 shares for approximately $2.5 million.
Market Performance
As of September 30, 2024, the stock price of RRBI was approximately $46.00, reflecting a year-to-date increase of 15%.
Summary of Financials
For the nine months ended September 30, 2024, the net income was reported at $24.9 million, with total stockholders' equity amounting to $324.3 million.
Conclusion
The ownership of Red River Bancshares, Inc. consists of a diverse mix of institutional investors, insiders, and retail shareholders, with institutional investors holding a majority stake. The company's financial performance continues to show positive trends, supported by strategic stock repurchase actions.
Red River Bancshares, Inc. (RRBI) Mission Statement
Company Overview
Red River Bancshares, Inc. is the bank holding company for Red River Bank, a Louisiana state-chartered bank established in 1999. The company provides a fully integrated suite of banking products and services tailored to the needs of its commercial and retail customers. Red River Bank operates from a network of 28 banking centers throughout Louisiana.
Strategic Goals
The mission of Red River Bancshares focuses on driving shareholder value through the establishment of a market-leading commercial banking franchise based in Louisiana. The company aims to:
- Expand Market Share: Increase presence in existing markets.
- Opportunistic Growth: Engage in new market de novo expansion and strategic acquisitions.
- Customer Commitment: Provide services through relationship-oriented bankers dedicated to customer satisfaction.
Financial Performance
As of September 30, 2024, Red River Bancshares reported the following financial data:
| Financial Metric | Amount (in thousands) |
|---|---|
| Total Assets | $3,101,750 |
| Total Deposits | $2,747,125 |
| Loans Held for Investment (HFI) | $2,056,048 |
| Total Stockholders' Equity | $324,318 |
| Net Income (Q3 2024) | $8,754 |
| Earnings Per Share (Diluted) | $1.27 |
| Cash Dividend per Share | $0.09 |
| Return on Assets (ROA) | 1.13% |
| Return on Equity (ROE) | 11.11% |
Market Position
Red River Bancshares maintains a strong market position, focusing on customer-oriented banking practices. The company operates in seven geographic markets within Louisiana, as detailed below:
| Market | Loans HFI (in thousands) | Percentage of Total Loans HFI |
|---|---|---|
| Central | $620,569 | 30.2% |
| Capital | $552,261 | 26.9% |
| Northwest | $358,845 | 17.4% |
| Southwest | $174,479 | 8.5% |
| New Orleans | $143,748 | 7.0% |
| Northshore | $117,255 | 5.7% |
Customer Focus
The mission statement emphasizes a strong commitment to customer relationships and community engagement. Red River Bancshares aims to tailor its products and services to meet the unique needs of its diverse customer base.
Conclusion
Red River Bancshares, Inc. continues to enhance its operational strategies and financial performance while maintaining a focus on customer service and market expansion.
How Red River Bancshares, Inc. (RRBI) Works
Company Overview
Red River Bancshares, Inc. is the bank holding company for Red River Bank, a Louisiana state-chartered bank that operates a network of 28 banking centers across the state. The company offers a fully integrated suite of banking products and services tailored to both commercial and retail customers.
Financial Performance
As of September 30, 2024, Red River Bancshares reported a net income of $24.9 million, or $3.59 diluted earnings per share (EPS), representing a decrease of 6.2% compared to the same period in 2023. The decrease in net income was attributed to increased operating expenses and a decline in noninterest income, despite a rise in net interest income.
| Metric | Q3 2024 | Q2 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|---|
| Net Income (in millions) | $8.8 | $8.0 | $8.0 | $24.9 | $26.6 |
| Diluted EPS | $1.27 | $1.16 | $1.12 | $3.59 | $3.70 |
| Return on Assets (%) | 1.13% | 1.05% | 1.05% | 1.08% | 1.18% |
| Return on Equity (%) | 11.11% | 10.69% | 11.15% | 10.86% | 12.71% |
| Efficiency Ratio (%) | 60.09% | 62.07% | 61.70% | 60.84% | 59.02% |
Assets and Liabilities
As of September 30, 2024, Red River Bancshares reported total assets of $3.10 billion, which is a slight increase of 1.7% from $3.05 billion as of June 30, 2024. The total liabilities stood at $2.78 billion, reflecting a decrease in total deposits and a stable loan portfolio.
| Category | September 30, 2024 | June 30, 2024 | Change (%) |
|---|---|---|---|
| Total Assets (in millions) | $3,101.75 | $3,048.56 | 1.7% |
| Total Deposits (in billions) | $2.75 | $2.72 | 1.1% |
| Loans Held for Investment (in billions) | $2.06 | $2.05 | 0.5% |
| Total Stockholders' Equity (in millions) | $324.32 | $306.99 | 5.6% |
Net Interest Income and Margin
Net interest income for Q3 2024 was reported at $22.5 million, an increase from $21.8 million in Q2 2024. The net interest margin for Q3 2024 was 2.98%, reflecting an improvement due to higher yields on loans and securities.
| Metric | Q3 2024 | Q2 2024 |
|---|---|---|
| Net Interest Income (in millions) | $22.5 | $21.8 |
| Net Interest Margin (%) | 2.98% | 2.92% |
Noninterest Income
Noninterest income for the third quarter of 2024 totaled $5.4 million, marking an increase of 6.3% from the previous quarter. The growth in noninterest income was primarily driven by higher service charges and brokerage income.
| Category | Q3 2024 (in thousands) | Q2 2024 (in thousands) |
|---|---|---|
| Service Charges on Deposit Accounts | $1,486 | $1,367 |
| Brokerage Income | $987 | $893 |
| Total Noninterest Income | $5,419 | $5,098 |
Capital Ratios
As of September 30, 2024, Red River Bancshares maintained strong capital ratios, with a total risk-based capital ratio of 18.07% and a Tier 1 risk-based capital ratio of 17.05%.
| Capital Ratio | September 30, 2024 | June 30, 2024 |
|---|---|---|
| Total Risk-Based Capital Ratio (%) | 18.07% | 18.01% |
| Tier 1 Risk-Based Capital Ratio (%) | 17.05% | 16.99% |
| Equity to Assets Ratio (%) | 10.46% | 10.07% |
Stockholder Activities
In the third quarter of 2024, Red River Bancshares repurchased 60,000 shares at an aggregate cost of $3.0 million as part of their stock repurchase program, which authorizes up to $5.0 million through December 31, 2024.
| Activity | Details |
|---|---|
| Shares Repurchased | 60,000 shares |
| Total Cost of Repurchase (in millions) | $3.0 |
| Remaining Authorization (in millions) | $1.2 |
Liquidity Position
As of September 30, 2024, Red River Bancshares reported liquid assets of $232.6 million, representing 7.50% of total assets. The bank has no outstanding borrowings and maintains strong liquidity through its deposits and securities portfolio.
| Liquidity Metric | September 30, 2024 |
|---|---|
| Liquid Assets (in millions) | $232.6 |
| Liquid Assets to Assets Ratio (%) | 7.50% |
| Total Borrowings | $0 |
How Red River Bancshares, Inc. (RRBI) Makes Money
Net Interest Income
Red River Bancshares generates a significant portion of its revenue from net interest income, which for the third quarter of 2024 amounted to $22.5 million, up from $21.8 million in the previous quarter. The net interest margin, calculated on a fully taxable equivalent basis (FTE), increased from 2.92% to 2.98% during the same period.
Noninterest Income
Noninterest income for the third quarter of 2024 totaled $5.4 million, reflecting a 6.3% increase compared to the previous quarter. This growth was driven by various sources, including:
- Service charges on deposit accounts: $1.5 million
- Debit card income, net: $905,000
- Mortgage loan income: $732,000
- Brokerage income: $987,000
- Loan and deposit income: $588,000
The total noninterest income for the nine months ended September 30, 2024, was $15.4 million, a slight decrease from $15.9 million in the same period of 2023.
Loan and Deposit Growth
As of September 30, 2024, total assets for Red River Bancshares were $3.10 billion, which includes loans held for investment (HFI) totaling $2.06 billion. This marks a slight increase from $2.05 billion at the end of the previous quarter. Total deposits reached $2.75 billion, with a quarterly increase of $30.5 million.
Provision for Credit Losses
The provision for credit losses for the third quarter of 2024 was $300,000, indicating prudent management of credit risk amid a competitive lending environment.
Stock Repurchase Program
Red River Bancshares has a stock repurchase program authorized for up to $5.0 million in 2024. As of September 30, 2024, $1.2 million remained available for repurchases, with significant repurchases completed earlier in the year.
Financial Ratios
The financial performance of Red River Bancshares can be summarized by the following key ratios for the third quarter of 2024:
| Metric | Value |
|---|---|
| Return on Assets (ROA) | 1.13% |
| Return on Equity (ROE) | 11.11% |
| Efficiency Ratio | 60.09% |
| Net Interest Margin (FTE) | 2.98% |
| Loans HFI to Deposits Ratio | 74.84% |
| Noninterest Income to Average Assets | 0.70% |
Dividend Payments
In the third quarter of 2024, Red River Bancshares declared a cash dividend of $0.09 per share, maintaining a consistent return to shareholders.
Equity Position
As of September 30, 2024, total stockholders’ equity was recorded at $324.3 million, reflecting a 6.7% increase from the previous year. The book value per share was $47.51, up from $44.58.
Conclusion on Revenue Generation
Red River Bancshares, Inc. continues to leverage its banking operations, focusing on both interest and noninterest income streams while maintaining a solid capital position and shareholder returns through dividends and share repurchases.
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Resources:
- Red River Bancshares, Inc. (RRBI) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Red River Bancshares, Inc. (RRBI)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Red River Bancshares, Inc. (RRBI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.