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

Core Insights - Red River Bancshares, Inc. reported record-high net income for both the fourth quarter and the full year of 2025, with net income of $11.4 million for Q4 and $42.8 million for the year, representing increases of 5.7% and 24.9% respectively compared to previous periods [2][3][5]. Financial Performance - For Q4 2025, net income was $11.4 million, or $1.73 per diluted share, compared to $10.8 million, or $1.63 per diluted share in Q3 2025 [2]. - The return on assets for Q4 2025 was 1.38%, and the return on equity was 12.60% [2]. - For the full year 2025, net income was $42.8 million, or $6.38 per diluted share, compared to $34.2 million, or $4.95 per diluted share in 2024 [3]. Operational Highlights - The fourth quarter of 2025 saw a record-high quarterly net income, improved net interest margin, and solid growth in loans, deposits, and assets [4]. - Loans held for investment increased to $2.25 billion, up $75.6 million, or 3.5% from Q3 2025 [17]. - Total assets reached $3.35 billion, an increase of $136.5 million, or 4.2% from the previous quarter, driven by a $124.6 million increase in deposits [4][22]. Deposits and Loans - Total deposits as of December 31, 2025, were $2.96 billion, up $124.6 million, or 4.4% from September 30, 2025, primarily due to seasonal inflows from public entity customers [22]. - The company experienced robust loan growth, with loans HFI increasing 8.4% for the year 2025 [7]. Stockholder Returns - The company paid a quarterly cash dividend of $0.15 per common share in Q4 2025, with a total cash dividend of $0.54 per share for the year, a 50% increase from $0.36 in 2024 [4][5]. Stock Repurchase Program - The company renewed and increased its stock repurchase program for 2026, authorizing up to $10.0 million for share buybacks [4]. Interest Income and Margin - Net interest income for Q4 2025 was $28.2 million, a 5.0% increase from Q3 2025, with a net interest margin FTE of 3.51%, up 8 basis points [9][6]. - The average rate on new and renewed loans was 6.72% for Q4 2025 [9]. Credit Quality - Nonperforming assets (NPAs) totaled $3.5 million as of December 31, 2025, an increase of 44.9% from the previous quarter, with a ratio of NPAs to assets at 0.11% [20]. - The allowance for credit losses (ACL) was $23.4 million, with a ratio of ACL to loans HFI at 1.04% [21].