Red River Bancshares, Inc. Reports Second Quarter 2026 Financial Results
ALEXANDRIA, La., July 30, 2026 (GLOBE NEWSWIRE) -- Red River Bancshares, Inc. (the “Company”) (Nasdaq: RRBI), the holding company for Red River Bank (the “Bank”), announced today its unaudited financial results for the second quarter of 2026.
Net income for the second quarter of 2026 was $11.8 million, or $1.78 per diluted common share (“EPS”), a decrease of $208,000 or 1.7%, compared to $12.0 million, or $1.81 EPS, for the first quarter of 2026, and an increase of $1.6 million, or 15.4%, compared to $10.2 million, or $1.51 EPS, for the second quarter of 2025. For the second quarter of 2026, the quarterly return on assets was 1.43%, and the quarterly return on equity was 12.41%.
Net income for the six months ended June 30, 2026, was $23.7 million, or $3.59 EPS, an increase of $3.2 million, or 15.5%, compared to $20.5 million, or $3.03 EPS, for the six months ended June 30, 2025. For the six months ended June 30, 2026, the return on assets was 1.44%, and the return on equity was 12.68%.
Second Quarter 2026 Performance and Operational Highlights
The second quarter of 2026 financial results included an improved net interest margin and net interest income, as well as slightly lower assets and net income. We completed our Northwest market expansion and banking center relocation project. Also, one of our founding directors retired, and we welcomed two new directors to our board.
Blake Chatelain, President and Chief Executive Officer, stated, “The second quarter of 2026 was one of solid, consistent performance driven by net interest margin expansion and a consistent balance sheet. As expected, net income and EPS in the second quarter of 2026 were slightly lower than the prior quarter, which had benefited from periodic rebates and refunds from vendors.
“We are pleased with the 10 bp expansion to the net interest margin FTE to 3.61% as we repriced loans at higher yields and had a lower cost of deposits. Our balance sheet is well positioned for a ‘higher for longer’ interest rate environment, though the interest rate outlook remains challenging to predict due to geopolitical tensions and uncertainty regarding energy prices. We are encouraged to see Chairman Warsh, the new chair of the Federal Reserve, commit to bring inflation under control, as inflation and high costs continue to be a burden for families and businesses.
“In the second quarter of 2026, loan growth was partially offset by loan payoffs with the sale of businesses, along with large commercial real estate projects transitioning to permanent financing in the secondary market. Based on our current loan pipeline activity and levels, we anticipate higher loan growth in the second half of 2026.
“We have been very busy with our organic expansion plan. In May 2026, we completed the Northwest market relocation projects. Our new Northwest market loan and deposit production office is conveniently located next to our East Kings banking center, and is more accessible for our customers and efficient for our employees. In July 2026, in the New Orleans market, we were pleased to relocate our leadership, lending, and banking center teams together into the Energy Centre Building. This consolidation will allow us to improve our customer service by providing all banking services from one location.
“I want to thank Kirk Cooper, a founding board member, for serving as a director and congratulate him on his retirement. Over the past 27 years, Kirk has served as an insightful and dedicated leader, providing guidance and support to the Company. On behalf of the entire board and management, we wish him the very best in retirement. We welcome Peyton Bush and Dr. Chance DeWitt to the boards and look forward to their future guidance and involvement. Peyton is a lifelong resident of New Orleans and has extensive financial knowledge and expertise. Chance is originally from Alexandria and now lives and practices medicine in Lafayette.
“As we enter the second half of 2026, we are focused on expanding the Red River Bank banking center network and team, evaluating expansion opportunities, providing personalized banking services to our customers, and welcoming new banking relationships. We are well positioned to provide solid profitability and returns for our shareholders.”
Net Interest Income and Net Interest Margin FTE
Net interest income for the second quarter of 2026 was $29.0 million, which was $563,000, or 2.0%, higher than the first quarter of 2026 and benefited from one more accrual day. Net interest margin FTE was 3.61% for the second quarter of 2026, which was 10 bps higher than the prior quarter. These improvements were primarily driven by higher loan yields and a lower cost of deposits. Interest income on loans increased $689,000 due to higher loan yields, and included $98,000 of additional interest income resulting from the successful resolution of nonaccrual loans in the second quarter. For the second quarter of 2026, the average rate on new and renewed loans was 6.38%. Interest expense decreased by $385,000 primarily due to lower average interest-bearing deposit balances, which resulted in a 4 bp decrease in the cost of deposits.
In the second half of 2025, the Federal Open Market Committee (“FOMC”) reduced the federal funds rate by 75 bps, resulting in a range of 3.50%-3.75%, which remained throughout the first half of 2026. Due to uncertainty regarding the forecasted interest rate environment, we are modeling a consistent federal funds range for the second half of 2026. During the remainder of 2026, we project $157.4 million of fixed rate loans at 5.91% to mature, which we expect to redeploy into loans with slightly higher rates. We have $489.1 million of floating rate loans at 6.14%, which we expect to remain at a consistent rate. We also expect to receive $56.8 million in securities cash flows at 3.69%, for which we are currently evaluating reinvestment options as we consider balance sheet management strategies. We project $449.6 million in time deposits at 3.44% to mature, with the opportunity to reprice slightly lower. Depending on balance sheet activity and interest rate competition, we expect net interest income and net interest margin FTE to increase slightly in the second half of 2026.
Noninterest Income
Noninterest income totaled $4.7 million for the second quarter of 2026, up $205,000, or 4.5%, from the previous quarter.
Mortgage loan income was $928,000 for the second quarter of 2026, up $323,000, or 53.4%, from the previous quarter due to increased purchase activity.
Debit card income, net, was $1.1 million for the second quarter of 2026, up $151,000, or 16.5%, from the previous quarter. This increase was mainly due to higher debit card activity and receipt of a $63,000 periodic refund from our debit card provider in the second quarter of 2026.
The Small Business Investment Company (“SBIC”) partnerships reported a loss of $291,000 in the second quarter of 2026, compared to a loss of $105,000 in the previous quarter. These losses were mainly due to fund value adjustments as an SBIC fund continues its wind-down phase. We expect SBIC income or loss to fluctuate in future quarters.
Operating Expenses
Operating expenses totaled $18.3 million for the second quarter of 2026, up $1.0 million, or 6.0%, from the previous quarter.
Data processing expense totaled $758,000 for the second quarter of 2026, up $381,000, or 101.1%, from the previous quarter. The first quarter of 2026 benefited from the receipt of a $389,000 periodic refund from our data processing center.
Personnel expenses totaled $10.7 million for the second quarter of 2026, up $194,000, or 1.8%, from the previous quarter. This increase was primarily due to annual raises effective April 2026 and an increase in headcount. As of June 30, 2026 and March 31, 2026, we had 381 and 375 total employees, respectively.
Loan and deposit expenses totaled $242,000 for the second quarter of 2026, up $139,000, or 135.0%, from the previous quarter. The second quarter of 2026 benefited from reimbursement of $82,000 of collection expenses due to the successful resolution of nonaccrual loans. The first quarter of 2026 benefited from receipt of a $201,000 negotiated, variable rebate from a vendor.
Occupancy and equipment expenses totaled $1.9 million for the second quarter of 2026, up $51,000, or 2.7%, from the previous quarter. This increase was primarily due to $78,000 of nonrecurring expenses related to our newly constructed Shreveport Commercial and Private Banking Loan and Deposit Production Office, as well as the relocation of a banking center, both in the Northwest market.
Loans
Loans HFI were $2.26 billion as of June 30, 2026 and $2.25 billion as of March 31, 2026. In the second quarter of 2026, new loan originations and construction commitment fundings exceeded payments and payoffs. As of June 30, 2026, we had $93.5 million of unfunded construction loan commitments, which we expect to fund over time.
Asset Quality and Allowance for Credit Losses
NPAs totaled $2.6 million as of June 30, 2026, a decrease of $1.6 million, or 38.3%, from March 31, 2026, primarily due to the successful resolution of nonaccrual loans. The ratio of NPAs to assets was 0.08% and 0.13% as of June 30, 2026 and March 31, 2026, respectively.
The provision for credit losses for the second quarter of 2026 was $750,000, which was consistent with the prior quarter. As of June 30, 2026, the allowance for credit losses (“ACL”) was $24.8 million. The ratio of ACL to loans HFI was 1.09% as of June 30, 2026 and 1.07% as of March 31, 2026. The net charge-offs to average loans ratio was 0.00% for the second and first quarters of 2026.
Deposits
As of June 30, 2026, deposits were $2.91 billion, a decrease of $40.9 million, or 1.4%, compared to March 31, 2026. The decrease in deposits for the second quarter of 2026 was primarily due to the seasonal outflow of funds from customer income tax payments, along with fluctuations in lawyer trust accounts due to timing of legal settlements.
Stockholders’ Equity
Total stockholders’ equity as of June 30, 2026, was $384.6 million, compared to $373.3 million as of March 31, 2026. The $11.2 million, or 3.0%, increase in stockholders’ equity during the second quarter of 2026 was attributable to $11.8 million of net income, a $964,000, net of tax, market adjustment to accumulated other comprehensive loss related to securities, and $144,000 of stock compensation, partially offset by $1.6 million in cash dividends related to a $0.25 per share cash dividend that we paid on June 18, 2026.
Non-GAAP Disclosure
Our accounting and reporting policies conform to United States generally accepted accounting principles (“GAAP”) and the prevailing practices in the banking industry. Certain financial measures used by management to evaluate our operating performance are discussed as supplemental non-GAAP performance measures. In accordance with the Securities and Exchange Commission’s (“SEC”) rules, we classify a financial measure as being a non-GAAP financial measure if that financial measure excludes or includes amounts, or is subject to adjustments that have the effect of excluding or including amounts, that are included or excluded, as the case may be, in the most directly comparable measure calculated and presented in accordance with GAAP as in effect from time to time in the U.S.
Management and the board of directors review tangible common equity, realized common equity, tangible assets, tangible book value per share, realized book value per share, and tangible common equity to tangible assets as part of managing operating performance. However, these non-GAAP financial measures should not be considered in isolation or as a substitute for the most directly comparable or other financial measures calculated in accordance with GAAP. Moreover, the manner we calculate the non-GAAP financial measures that are discussed may differ from that of other companies’ reporting measures with similar names. It is important to understand how other banking organizations calculate and name their financial measures similar to the non-GAAP financial measures discussed by us when comparing such non-GAAP financial measures.
A reconciliation of non-GAAP financial measures to the comparable GAAP financial measures is included within the following financial statement tables.
About Red River Bancshares, Inc.
Red River Bancshares, Inc. is the bank holding company for Red River Bank, a Louisiana state-chartered bank established in 1999 that provides a fully integrated suite of banking products and services tailored to the needs of our commercial and retail customers. Red River Bank operates from a network of 28 banking centers throughout Louisiana and two combined loan and deposit production offices, one each in Lafayette, Louisiana, and Shreveport, Louisiana. Banking centers are located in the following Louisiana markets: Central, which includes the Alexandria metropolitan statistical area (“MSA”); Northwest, which includes the Shreveport-Bossier City MSA; Capital, which includes the Baton Rouge MSA; Southwest, which includes the Lake Charles MSA; the Northshore, which includes the Slidell-Mandeville-Covington MSA; Acadiana, which includes the Lafayette MSA; and New Orleans, which includes the New Orleans-Metairie MSA.
Forward-Looking Statements
Statements in this news release regarding our expectations and beliefs about our future financial performance and financial condition, as well as trends in our business, interest rates, and markets, are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements often include words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “project,” “outlook,” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.” The forward-looking statements in this news release are based on current information and on assumptions that we make about future events and circumstances that are subject to a number of risks and uncertainties that are often difficult to predict and beyond our control. As a result of those risks and uncertainties, our actual financial results in the future could differ, possibly materially, from those expressed in or implied by the forward-looking statements contained in this news release and could cause us to make changes to our future plans. Additional information regarding these and other risks and uncertainties to which our business and future financial performance are subject is contained in the section titled “Risk Factors” in our most recent Annual Report on Form 10-K and any subsequent quarterly reports on Form 10-Q, and in other documents that we file with the SEC from time to time. In addition, our actual financial results in the future may differ from those currently expected due to additional risks and uncertainties of which we are not currently aware or which we do not currently view as, but in the future may become, material to our business or operating results. Due to these and other possible uncertainties and risks, readers are cautioned not to place undue reliance on the forward-looking statements contained in this news release or to make predictions based solely on historical financial performance. Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments, or otherwise, except as required by applicable law. All forward-looking statements, express or implied, included in this news release are qualified in their entirety by this cautionary statement.
Contact:
Isabel V. Carriere, CPA, CGMA
Senior Executive Vice President and Chief Financial Officer
318-561-4023
icarriere@redriverbank.net
(1) Non-GAAP financial measure. Calculations of this measure and reconciliations to GAAP are included in the schedules accompanying this release.