Red River Bancshares, Inc. Reports Fourth Quarter 2024 Financial Results

Core Viewpoint - Red River Bancshares, Inc. reported strong financial performance in the fourth quarter of 2024, with increased net income and improved net interest margin, despite a slight decline in annual net income compared to the previous year [2][3][4]. Financial Performance - Net income for Q4 2024 was $9.3 million, or $1.37 per diluted share, up 6.3% from Q3 2024 and 12.2% from Q4 2023 [2][4]. - For the year ended December 31, 2024, net income was $34.2 million, or $4.95 EPS, a decrease of 1.8% from $34.9 million in 2023 [3]. - The return on assets for Q4 2024 was 1.18%, and the return on equity was 11.46% [2][3]. Operational Highlights - The company experienced an improved net interest margin, which increased to 3.09% in Q4 2024 from 2.98% in Q3 2024, driven by higher loan balances and lower deposit rates [4][11]. - Net interest income for Q4 2024 was $23.7 million, a 5.5% increase from the previous quarter [10]. - Total assets as of December 31, 2024, were $3.15 billion, reflecting a 1.5% increase from the previous quarter, primarily due to a $58.0 million increase in deposits [21][22]. Loan and Deposit Activity - Loans held for investment (HFI) increased to $2.08 billion, a slight rise from $2.06 billion in the previous quarter [26]. - Total deposits reached $2.81 billion, up 2.1% from $2.75 billion as of September 30, 2024, largely due to seasonal inflows from public entity customers [33][36]. Stock Repurchase and Dividends - The company repurchased 632 shares in Q4 2024 at a cost of $33,000, completing a stock repurchase program for 2024 that authorized up to $5.0 million [4][5]. - A quarterly cash dividend of $0.09 per share was paid in Q4 2024 [4]. Asset Quality - Nonperforming assets (NPAs) totaled $3.3 million, or 0.10% of total assets, as of December 31, 2024 [31]. - The allowance for credit losses (ACL) was $21.7 million, representing 1.05% of loans HFI [32]. Future Outlook - The company anticipates continued improvement in net interest income and margin in the first half of 2025, supported by a favorable interest rate environment [7][14].