Red River Bancshares, Inc. Reports First Quarter 2025 Financial Results

Core Viewpoint - Red River Bancshares, Inc. reported strong financial results for the first quarter of 2025, with significant increases in net income, net interest income, and net interest margin, alongside a notable rise in cash dividends to shareholders [2][3][4]. Financial Performance - Net income for Q1 2025 was $10.4 million, or $1.52 per diluted share, marking an 11.2% increase from Q4 2024 and a 26.4% increase from Q1 2024 [2][3]. - The quarterly return on assets was 1.32%, and the return on equity was 12.85% [2]. - Net interest income rose to $24.6 million, a 3.9% increase from the previous quarter, driven by higher securities yields and lower deposit rates [3][9]. - The net interest margin increased by 13 basis points to 3.22% compared to the prior quarter [10]. Balance Sheet Overview - Total assets as of March 31, 2025, were $3.19 billion, reflecting a 1.2% increase from December 31, 2024, primarily due to a $20.6 million rise in deposits [3][23]. - Loans held for investment increased by $39.7 million, or 1.9%, to $2.11 billion [27]. - Total deposits reached $2.83 billion, up by $20.6 million, or 0.7%, compared to the previous quarter [33]. Dividend and Stock Repurchase - The quarterly cash dividend was increased by 33.3% to $0.12 per share for Q1 2025, up from $0.09 per share in 2024 [3][4]. - The company has authorized a stock repurchase program of up to $5.0 million for 2025 [3]. Credit Quality and Provisions - The provision for credit losses was $450,000 for Q1 2025, an increase from $300,000 in the prior quarter, attributed to loan growth and economic uncertainties [13][32]. - Nonperforming assets totaled $5.2 million, or 0.16% of total assets, reflecting an increase from the previous quarter [31][45]. Noninterest Income and Operating Expenses - Noninterest income for Q1 2025 was $5.3 million, a 5.5% increase from the previous quarter, driven by higher brokerage income [14][15]. - Operating expenses decreased by 1.5% to $16.6 million, primarily due to lower data processing and loan expenses [18][19]. Market Position and Future Outlook - Red River Bank was ranked 14th among the top 50 best deposit franchises for banks with assets between $3.0 billion and $10.0 billion [3]. - The company remains focused on improving net interest margins and managing deposit costs while redeploying assets into higher-yielding investments [5][11].