On July 26, 2024, Red River Bancshares Inc (RRBI, Financial) released its 8-K filing reporting its unaudited financial results for the second quarter of 2024. Red River Bancshares Inc is the bank holding company for Red River Bank, which provides a range of banking services including lending and accepting deposits from various entities.
Financial Performance Overview
For Q2 2024, Red River Bancshares Inc reported a net income of $8.0 million, or $1.16 per diluted common share (EPS), surpassing the analyst estimate of $1.10 EPS. This represents a slight decrease of 2.5% from the previous quarter's net income of $8.2 million, and a 10.9% decline from $9.0 million in Q2 2023. The company's quarterly return on assets was 1.05%, and the return on equity was 10.69%.
Key Financial Metrics
| Metric | Q2 2024 | Q1 2024 | Q2 2023 |
|---|---|---|---|
| Net Income | $8.0 million | $8.2 million | $9.0 million |
| Earnings Per Share (EPS) | $1.16 | $1.16 | $1.25 |
| Net Interest Income | $21.8 million | $21.4 million | $21.5 million |
| Net Interest Margin (FTE) | 2.92% | 2.83% | 2.96% |
Operational Highlights
Red River Bancshares Inc experienced an improved net interest margin along with consistent earnings and loan and deposit balances. The net interest income for Q2 2024 was $21.8 million, a 2.0% increase from the previous quarter. The net interest margin FTE rose to 2.92% from 2.83% in Q1 2024, driven by improved yields on loans and securities.
As of June 30, 2024, the company's assets stood at $3.05 billion, a slight decrease of 0.8% from March 31, 2024. Deposits totaled $2.72 billion, down by 1.1% from the previous quarter, primarily due to seasonal outflows for income tax payments. Loans held for investment (HFI) were $2.05 billion, marginally higher than $2.04 billion as of March 31, 2024.
Challenges and Achievements
Despite the challenges posed by the current inflationary environment and changing monetary policy, Red River Bancshares Inc managed to maintain steady performance. The provision for credit losses remained consistent at $300,000 for Q2 2024. Nonperforming assets (NPAs) increased to $3.2 million, representing 0.11% of assets, up from 0.08% in the previous quarter.
"The second quarter of 2024 was one of steady, consistent performance as we expand banking center locations while being diligent in improving the net interest margin and monitoring asset quality," stated Blake Chatelain, President and Chief Executive Officer.
Stockholder Returns and Capital Position
Red River Bancshares Inc paid a quarterly cash dividend of $0.09 per common share in Q2 2024. The company also repurchased 16,220 shares of its common stock at an aggregate cost of $764,000. As of June 30, 2024, the stockholders’ equity to assets ratio was 10.07%, and the total risk-based capital ratio was 18.01%, indicating a strong capital position.
For more detailed insights and analysis, visit GuruFocus.com.
Explore the complete 8-K earnings release (here) from Red River Bancshares Inc for further details.
