ALEXANDRIA, La. , April 25, 2024 (GLOBE NEWSWIRE) — Red River Bancshares, Inc. (the “Company”) (Nasdaq: RRBI), the holding company of Red River Bank (the “Bank”), announced its unaudited business Currency Effects for the first quarter of 2024.
Net earnings for the first quarter of 2024 were $8. 2 million, or $1. 16 at the usual diluted percentage (“EPS”), a cut of $104,000, or 1. 3%, compared to $8. 3 million, or $1. 16 at the usual percentage. , for the fourth quarter of 2023, and a cut of $1. 4 million, or 14. 7%, from $9. 6 million, or $1. 33 depending on the percentage, for the first quarter of 2023. For the first quarter of 2024, the quarterly report on assets is 1. 07% and the quarterly return on shares is 10. 77%.
First Quarter 2024 Operational and Performance Highlights
In the first quarter of 2024, the Company reported consistent net interest margin and earnings, a consistent increase in lending, and a decrease in deposits and assets. A significant percentage buyback transaction was completed and the quarterly dividend was greater than $0. 09 on average.
“Our currency effects included a consistent net interest margin and earnings, strong loan expansion, and strong equity ratios. Over the past 3 quarters, net interest margin has slowly increased as we have increased loan yields while diligently managing deposit rate pressures and costs. Our bankers have done a remarkable job of offering lending facilities to new and existing customers. For the second quarter in a row, new lending activity was strong and HFI lending surpassed the $2. 0 billion mark in the first quarter of 2024. As expected, deposits and assets declined with the overall seasonal activity of public entity deposits, while the balances of other visitor deposits remained constant. As a result of our strong capital levels, we increased the quarterly monetary dividend consistently by a non-unusual percentage of $0. 08 in 2023 to $0. 09 for the first quarter of 2024 and ended. A significant and consistent buyback transaction with a percentage.
“For the second year in a row, Red River Bank has been chosen as one of the top 50 community banks through S.
“As we move into 2024, we are well placed for next year. The company is well capitalized, has consistent earnings, the right asset quality, and sufficient opportunities to expand our facilities in the Louisiana markets we serve. We look to the future by taking care of our customers, employees and shareholders.
ETP Net Interest Income and Net Interest Income
Net source of interest earnings for the first quarter of 2024 was $21. 4 million, $69,000 or 0. 3%, higher than the fourth quarter of 2023, due to an accumulation of $977,000 in sources of interest earnings and dividends , offset by an accumulation of $908,000 in interest expense. The accumulation of sources of interest earnings and dividends was driven by a higher source of interest earnings on loans and securities, partially offset by a lower source of interest earnings on short-term liquid assets. Loan earnings accrual increased to $995,000 due to higher rates on new and renewed loans combined with higher balances on HFI loans. The average rate on new and renewed loans stood at 7. 56% in the first quarter of 2024, compared to 7. 39% in the last quarter. The source of interest earnings on securities accumulation increased to $408,000, primarily due to higher yields on recently purchased securities. The source of earnings interest on existing liquid assets decreased due to declining balances in those accounts during the first quarter. The increase in interest expense is due to higher rates on new and renewed term deposits and the accumulation of enhanced balances in certain top-loaded deposit accounts.
ETP net interest margin accumulation increased by one basis point (“bps”) to 2. 83% for the first quarter of 2024, compared to 2. 82% in the previous quarter. Accumulation due to increased returns on securities and loans, offset through higher deposit charges. Returns on securities increased across 22 foundational issuances, due to the reinvestment of earned cash flows into new securities with higher yields. Loan yields increased across 15 foundational issuances due to higher rates on new and renewed loans. These accumulations were more than offset by a 33 basis point increase in the term deposit rate in the first quarter. The charge for deposit accumulation increased across 15 core issuances to 1. 70% in the first quarter of 2024, compared to 1. 55% in the last quarter.
In the first quarter of 2024, the target diversity for the federal budget rate remained between 5. 25% and 5. 50%. The market expects the FOMC to cut the federal budget rate in 2024. Over the remainder of 2024, we will be expecting to obtain approximately $100. 0 million in securities-related money flows. We expect to redistribute those cash flows to higher-yielding assets, which deserve to gain advantages as either a source of net interest income and FTE net interest margin. As of March 31 In 2024, floating-rate loans accounted for 13. 3% of HFI loans and deposits for floating-rate transactions accounted for 6. 4% of deposits for interest-bearing transactions. Depending on balance sheet activity and interest rate developments, we can expect a slight improvement. in FTE 2024 net interest income.
Provision for losses
Non-Interest Income
Source of non-interest income for the first quarter of 2024 $4. 9 million, a reduction of $259,000, or 5. 0%, compared to $5. 2 million in the prior quarter. The reduction is mainly due to a loss in stock values and minimized service fees on deposit. bank accounts, loan and deposit income, and income of Small Business Investment Company (“SBIC”), partially offset by an accumulation of net debit card income.
Equity securities are an investment in a Community Reinvestment Act (“CRA”) mutual fund that consists primarily of bonds. The gain or loss of equity securities is a fair price adjustment driven primarily through adjustments in the interest rate environment. As a result of the market rate fluctuations between quarters, equity securities posted a loss of $31,000 in the first quarter of 2024, to a gain of $132,000 in the fourth quarter of 2023.
Payments for deposit account services for the first quarter of 2024 were $1. 4 million, down from $91,000, or 6. 2%, from $1. 5 million in the prior quarter. This minimum is basically due to changes in the filing payment schedule in the first quarter of 2024.
SBIC gain for the first quarter of 2024 was $352,000, down $41,000, or 10. 4%, from $393,000 in the previous quarter. This reduction is basically due to minimizing the distributions of these associations in the first quarter. We earned distribution bills of $114,000 in the first quarter of 2024 and $166,000 in the fourth quarter of 2023, in addition to the overall earnings from those partnerships.
Debit card net profit amounted to $1. 0 million for the first quarter of 2024, an increase of $147,000, or 16. 8%, to $875,000 in the previous quarter. We terminated our existing contract with the debit card provider, resulting in $145,000 in non-recurring earnings. for the first quarter of 2024. In January 2024, a newly negotiated contract with the debit card provider went into effect.
Operating Expenses
Operating expenses for the first quarter of 2024 totaled $15. 9 million, a cut of $150,000, or 0. 9%, compared to $16. 0 million in the previous quarter. The cut is due to reduced lending and deposit fees and data processing fees, partially offset by the upper body. of prices to workers and other taxes.
Data processing expenses totaled $347,000 for the first quarter of 2024, a cut of $284,000, or 45. 0%, from the last quarter. This cut is due to the receipt of a recurring reimbursement of $284,000 from our data center in the first quarter of 2024.
Personnel expenses totaled $9. 6 million for the first quarter of 2024, an increase of $317,000, or 3. 4%, compared to the prior quarter. This increase is basically due to net changes in the body of workers, the restart of payroll and construction taxes. Increase in revenue-based commission compensation. As of March 31, 2024 and December 31, 2023, we had a total of 358 and 362 employees, respectively.
Other taxes totaled $737,000 for the first quarter of 2024, an increase of $58,000, or 8. 5%, from the previous quarter. This increase is primarily due to a higher percentage repurchase tax expense similar to the increase in the percentage of buybacks in the first quarter. quarter of 2024.
Asset Overview
Values
Total values as of March 31, 2024 were $688. 2 million, a cut of $26. 1 million, or 3. 6%, as of December 31, 2023. Securities were minimized primarily due to higher maturities and principal yields than purchases.
The estimated fair price of AFS securities is $546. 0 million, net of $65. 3 million of unrealized losses, as of March 31, 2024, compared to $570. 1 million, net of $62. 2 million of unrealized losses, as of December 31, 2023. As of March 31, 2023-2024, the amortized charge on held-to-maturity (“HTM”) securities amounted to $139. 3 million, compared to $141. 2 million as of December 31, 2023. As of March 31, 2024, HTM securities had an unrealized loss of $24. 5 million compared to $22. 2 million as of December 31, 2023.
As of March 31, 2024, stock values, which are an investment in a CRA mutual fund consisting primarily of bonds, totaled $2. 9 million, to $3. 0 million as of December 31, 2023.
HFI’s loans as of March 31, 2024 totaled $2. 04 billion, an increase of $45. 2 million, or 2. 3%, compared to December 31, 2023, primarily due to new lending activity in Louisiana markets.
Commercial real estate (“CRE”) loans are secured through owner-occupied and non-owner-occupied properties, primarily in Louisiana. Loans for owner-occupied workplaces amounted to $57. 8 million, or 2. 8% of HFI loans, as of March 31, 2024. and are mainly concentrated in low-rise suburban areas. The average amount of CRE loans is $950,000 as of March 31, 2024.
Healthcare loans are our largest industry concentration and are comprised of a diverse portfolio of physical care providers. As of March 31, 2024, general physical care loans accounted for 8. 3% of HFI loans. In the physical care sector, loans for residential and nursing services accounted for 4. 6% of HFI loans, and loans to medical and dental offices accounted for 3. 5% of HFI loans. The average amount of loans for physical care amounts to $368,000 as of March 31, 2024.
Assets and provision for credit losses
As of March 31, 2024, ACL stood at $21. 6 million and the ratio of ACLs to HFI loans was 1. 06%, compared to 1. 07% as of December 31, 2023. The ratio of net write-offs to average loans was 0. 00% for the first quarter of 2024 and 0. 01% for the fourth quarter of 2023.
Deposits
As of March 31, 2024, deposits were $2. 75 billion, a low of $56. 0 million, or 2. 0%, as of December 31, 2023. Average deposits for the first quarter of 2024 were $2. 76 billion, an increase of $12. 0 million, or 0. 4%. , from the previous quarter. The following tables provide the main points of our deposit portfolio:
The bank has a granular and diversified deposit portfolio with consumers in various industries in Louisiana. As of March 31, 2024, the average deposit account length was approximately $28,000.
As of March 31, 2024, our estimated uninsured deposits, which constitute the portion of deposit accounts that exceed the FDIC’s insurance limit (currently $250,000), were approximately $809. 5 million, or 29. 5% of total deposits. This amount has been estimated based on the same methodologies and assumptions used for regulatory reporting purposes. In addition, as of March 31, 2024, our estimated uninsured deposits, insured deposits through public entities, amounted to approximately $635. 7 million, or 23. 2% of total deposits. Our money and money equivalents of $229. 8 million, combined with our available borrowing capacity of $1. 65 billion, constituted 232. 2% of our estimated uninsured deposits and 295. 7% of our estimated uninsured deposits, insured through public entities.
Equity
Total consistent with shareholder equity as of March 31, 2024 was $299. 3 million, compared to $303. 9 million as of December 31, 2023. The drawdown in accordance with shareholders’ equity of $4. 5 million, or 1. 5%, in the first quarter of 2024 due to the repurchase of $200,000, typically consistent with percentages of $10. 0 million, $2. 2 million net of tax, a market adjustment to other accumulated comprehensive losses in securities and $638,000 in cash dividends, partially compensated through $8. 2 million in net source of income and $119,000 in stock-based compensation. We paid a quarterly cash dividend of $0. 09 based on the applicable percentage on March 21, 2024.
Our accounting and reporting policies are consistent with accounting principles (“GAAP”) and banking industry practices sometimes accepted in the U. S. and Canada. In the U. S. Certain monetary measures used through the control to compare our operational functionality are presented as non-GAAP supplemental performance measures. Under the Securities and Exchange Commission (“SEC”), we classify a monetary measure as a non-GAAP monetary measure if such monetary measure excludes or includes, or is subject to, amounts that have the effect of aggregating amounts, which are included or excluded, as possible, in the maximum directly comparable measure calculated and presented in accordance with GAAP in effect from time to time in the United States.
Management and the board of directors review the tangible price of the e-book according to the percentage, the tangible equity compared to the tangible assets, and the price of the learned e-book according to the percentage as a component of consistent functionalities management. However, such non-GAAP monetary measures are not considered in isolation or as a replacement for directly comparable maximum monetary measures or other monetary measures calculated in accordance with GAAP. In addition, the way we calculate the non-GAAP monetary measures discussed would possibly differ from the way other corporations with similar calls are calculated. It is vital to be consistent in conceiving how those other banking organizations calculate and call their monetary measures similar to the non-GAAP monetary measures we discussed when comparing those non-GAAP monetary measures.
A reconciliation of non-GAAP monetary measures to comparable GAAP monetary measures is included in the tables in the following monetary statements.
About Red River Bancshares, Inc.
Forward-Looking Statements
Statements in this press release regarding our expectations and ideals regarding our long-term monetary functionality and monetary condition, as well as trends in our business and markets, are “forward-looking” within the meaning of Section 27A of the Securities Act. Values. of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking advertisements occasionally come with words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “project,” “outlook” or words of similar meaning, or long term. term. or long-term terms. conditional verbs such as “will”, “would”, “should”, “can also just” or “can”. The forward-looking statements contained in this press release are based on existing data and assumptions we make regarding future events and cases that are subject to a number of risks and uncertainties that are sometimes difficult to foresee and beyond our control. control. As a result of those dangers and uncertainties, our actual long-term monetary effects may also differ, in all likelihood materially, from those expressed or implied by the forward-looking statements contained in this press release and may also require us to make adjustments to our long-term plans. Additional information related to those and other dangers and uncertainties facing our business and long-term monetary functionality is included in the segment titled “Risk Factors” of our most recent Annual Report on Form 10-K. any upcoming quarterly reports on Form 10-Q. Array and in other documents that we file from time to time with the SEC. In addition, our actual long-term monetary effects would likely differ from those currently expected due to additional dangers and uncertainties that we are not aware of or do not consider to be aware, but which are likely to arise in the long term. our commercial or operational effects. Due to those and other conceivable uncertainties and dangers, readers are cautioned not to place undue reliance on the forward-looking statements contained in this press release or to make expectations based solely on past monetary functionality. Any forward-looking statement speaks only as of the date on which it is made, and we undertake no legal responsibility to update or revise any forward-looking matrix, whether as a result of new data, long-term developments or otherwise, unless otherwise necessary. through the law. All forward-looking statements, express or implied, included in this press release are qualified in their entirety by this cautionary matrix.
Contact:Isabel V. Carriere, CPA, CGMAViceExecutive Chairman, Chief Financial Officer & Corporate Secretary adjunta318-561-4023icarriere@redriverbank. net
(1) Non-GAAP monetary measure. Calculations for this measure and reconciliations to GAAP are included in the tables accompanying this press release.
(1) Includes average notable balances of loans for sale of $2. 0 million and $2. 3 million for the 3 months ended March 31, 2024 and December 31, 2023, respectively. (2) Non-accumulation loans are included as interest-free loans. (3) FTE net interest margin includes an ETP adjustment to a federal source of income tax rate of 21. 0% on tax-exempt securities and tax-exempt loans.
(1) Includes average notable loans for sale of $2. 0 million and $1. 3 million for the 3 months ended March 31, 2024 and 2023, respectively. (2) Unearned loans are included as interest-free loans. (3) FTE net interest margin includes an ETP adjustment to a federal source of income tax rate of 21. 0% on tax-exempt securities and tax-exempt loans.