Red River Bancshares(RRBI) - 2025 Q3 - Quarterly Report

Financial Performance - Net income for Q3 2025 was $10.8 million, or $1.63 diluted EPS, a 5.9% increase from $10.2 million, or $1.51 diluted EPS in Q2 2025[109] - For the nine months ended September 30, 2025, net income was $31.3 million, a 25.8% increase from $24.9 million in the same period of 2024[115] - Noninterest income increased by $307,000 to $5.0 million for Q3 2025 compared to $4.7 million for Q2 2025, driven by higher brokerage income and service charges on deposit accounts[136] - Noninterest income decreased by $431,000 to $15.0 million for the nine months ended September 30, 2025, primarily due to lower SBIC income and loan and deposit income[140] - The efficiency ratio improved to 56.06% in Q3 2025, compared to 56.87% in Q2 2025[114] Interest Income and Margin - Net interest income for Q3 2025 was $26.9 million, up $1.1 million, or 4.1%, from $25.8 million in the prior quarter[109] - Net interest income for the nine months ended September 30, 2025, was $77.3 million, a 17.8% increase from $65.6 million in the same period of 2024[123] - The net interest margin FTE increased by 7 basis points to 3.43% in Q3 2025, compared to 3.36% in the previous quarter[119] - The yield on securities increased by 48 basis points due to the purchase of $41.1 million in securities in Q4 2024 and an additional $146.7 million during the nine months ended September 30, 2025[127] - The yield on loans rose by 29 basis points, attributed to higher rates on new and renewed loans compared to the existing portfolio yield[127] Assets and Deposits - Total assets as of September 30, 2025, were $3.21 billion, an increase from $3.17 billion as of June 30, 2025[110] - Total deposits reached $2.84 billion, an increase of $28.2 million, or 1.0%, compared to $2.81 billion as of June 30, 2025[109] - Noninterest-bearing deposits rose by $52.5 million, or 6.1%, to $919 million, representing 32.37% of total deposits as of September 30, 2025[193] - Total loans held for investment (HFI) increased by $98.06 million, or 4.7%, to $2.173 billion as of September 30, 2025, compared to $2.075 billion as of December 31, 2024[176] - Total securities increased by $79.7 million, or 11.6%, to $764.6 million, representing 23.79% of total assets as of September 30, 2025[160] Expenses and Provisions - Operating expenses increased by $2.5 million to $51.8 million for the nine months ended September 30, 2025, mainly due to higher personnel and occupancy expenses[150] - The provision for credit losses for the nine months ended September 30, 2025, was $1.55 million, an increase of $650,000 or 72.2% from $900,000 for the same period in 2024[134] - Income tax expense for the nine months ended September 30, 2025, totaled $7.6 million, an increase of $1.7 million or 28.4% compared to the prior year[159] Stockholder Equity - Total stockholders' equity as of September 30, 2025, was $351.3 million, reflecting a $31.6 million, or 9.9%, increase from $319.7 million as of December 31, 2024[199] - Total tangible common equity (non-GAAP) reached $349,765,000, compared to $333,804,000 in the previous quarter, marking a quarterly increase of 4.78%[245] - Book value per share rose to $53.42, up from $50.23 in June 2025 and $47.51 in September 2024, indicating a year-over-year increase of 12.06%[245] - The ratio of total stockholders' equity to assets improved to 10.93% as of September 30, 2025, compared to 10.59% in June 2025 and 10.46% in September 2024[245] Loans and Credit Quality - Nonperforming assets (NPAs) decreased by $832,000, or 25.4%, to $2.4 million as of September 30, 2025, from $3.3 million as of December 31, 2024[182] - The allowance for credit losses (ACL) increased by $1.1 million to $22.8 million, or 1.05% of loans HFI, as of September 30, 2025[189] - The provision for credit losses on loans for the nine months ended September 30, 2025, was $1.6 million, an increase of $750,000, or 93.8%, from $800,000 for the same period in 2024[190] Operational Developments - The company opened a new loan and deposit production office in Lafayette, Louisiana, in Q3 2025[111] - The stock repurchase program had $4.3 million of available capacity as of September 30, 2025[111] - The company repurchased 11,748 shares of common stock at an aggregate cost of $656,000 for the nine months ended September 30, 2025[203]