Red River Bancshares, Inc.

What they do

The company is a bank holding company headquartered in Alexandria, Louisiana, founded in 1998, and completed an IPO in May 2019 with shares listed on Nasdaq under RRBI. Through its wholly owned subsidiary, Red River Bank, a Louisiana state-chartered bank, it provides commercial, retail and private banking products to customers. As of December 31, 2025, it had total assets of $3.35 billion, loans held for investment of $2.25 billion, and total deposits of $2.96 billion. It operated 28 banking centers and two combined loan and deposit production offices (LDPOs) across seven Louisiana markets.

Revenue drivers

• Net interest income — $105.6 million in 2025, up 18.2% year over year, driven by a $12.7 million increase in interest and dividend income and a $3.6 million decrease in interest expense.
• Loan portfolio — Loans held for investment were $2.26 billion as of June 30, 2026; loan income rose $11.1 million in 2025 on higher rates on new and renewed loans plus higher average balances.
• Securities portfolio — The company purchased $182.1 million of securities at an average rate of 4.91% in 2025; securities income increased $4.2 million on higher yields and balances.
• Noninterest income — Noninterest income decreased $477,000 in 2025 compared to the prior year, making it a smaller and declining contributor relative to net interest income.

Recent performance

Second quarter 2026 net income was $11.8 million, or $1.78 diluted EPS, down $208,000 or 1.7% from the first quarter of 2026 but up $1.6 million or 15.4% from the second quarter of 2025. Net interest income rose $563,000 or 2.0% quarter over quarter and net interest margin FTE improved 10 bps to 3.61%. Assets were $3.31 billion as of June 30, 2026, down $35.3 million or 1.1% from March 31, 2026, mainly from a $40.9 million decrease in deposits. Nonperforming assets fell $1.6 million or 38.3% to $2.6 million, or 0.08% of assets, after problem loan resolutions. For the six months ended June 30, 2026, net income was $23.7 million, or $3.59 EPS, up 15.5% from $20.5 million a year earlier.

Strategy

Management's stated priorities are expanding market share in existing Louisiana markets, opportunistic de novo expansion, and strategic acquisitions of compatible financial institutions. Expansion projects completed or underway include relocating the Northwest market leadership and lenders to a new Shreveport Commercial and Private Banking LDPO, moving the Market Street banking center to the American Tower building, relocating the Baronne Street retail banking center and New Orleans leadership to the remodeled Energy Centre Building, and building a second full-service banking center in Acadiana on Camellia Boulevard expected to open early in 2027. The company emphasizes relationship-oriented bankers as a differentiator from larger competitors moving to digital-only service. A $10.0 million stock repurchase program is authorized for 2026 with no repurchase activity in the first half of 2026.

Risks

• Credit concentration — The company's lending is concentrated in Louisiana markets and industries, so regional economic disruption could raise nonperforming loans and require additional provisions for credit losses.
• Net interest margin pressure — FOMC rate reductions lowered short-term liquid asset yields by 96 bps in 2025, and further cuts in 2026 would reduce income on those assets.
• Deposit sensitivity — Deposits fell $40.9 million or 1.4% in the second quarter of 2026, driven by seasonal tax outflows and timing of lawyer trust account settlements, showing sensitivity to customer cash flows.
• Loan repricing — In 2026, $434.0 million of floating rate loans at 6.24% are scheduled to reprice and $261.4 million of fixed rate loans at 5.85% mature, requiring redeployment at uncertain future rates.

Outlook

Management expects further FOMC rate cuts of 25-50 bps in 2026, which would reduce income on short-term liquid assets. It projects $261.4 million of fixed rate loans at 5.85% maturing and $434.0 million of floating rate loans at 6.24% repricing in 2026, with plans to redeploy into loans at slightly higher rates, and $125.3 million of securities cash flows at 3.69% to be reinvested at higher yields. It also expects $573.9 million in time deposits at 3.57% to mature in 2026 with the opportunity to reprice slightly lower.