Red River Bancshares, Inc. Reports Record Q1 2026 Financial Results; Raises Dividend, Maintains Strong Capital

ALEXANDRIA, Louisiana, April 30, 2026 – Red River Bancshares, Inc. (Nasdaq: RRBI), the holding company for Red River Bank, has announced robust unaudited financial results for the first quarter ended March 31, 2026. The company reported record-high quarterly net income and continued to demonstrate operational consistency and strong capital management.

Key Financial Highlights

• Net Income: Q1 2026 net income reached \$12.0 million or \$1.81 per diluted share, up 4.9% from \$11.4 million (\$1.73 EPS) in Q4 2025, and 15.4% higher than Q1 2025 (\$10.4 million, \$1.52 EPS).
• Return on Assets (ROA): 1.44% for Q1 2026, up from 1.38% in Q4 2025 and 1.32% in Q1 2025.
• Return on Equity (ROE): 12.95%, slightly higher than 12.60% in Q4 2025.
• Net Interest Margin (FTE): Held steady at 3.51% quarter-over-quarter.
• Quarterly Dividend: Raised by 66.7% to \$0.25 per share, compared to \$0.15 in the prior two quarters.
• Efficiency Ratio: Improved to 52.37% from 54.99% in Q4 2025.
• Loans Held for Investment (HFI): \$2.25 billion, flat from Q4 2025.
• Deposits: \$2.95 billion, down just 0.6% from Q4 2025 due to seasonal outflows from public entity customers.
• Total Assets: \$3.35 billion as of March 31, 2026, unchanged from year-end 2025.
• Stockholders’ Equity: Increased 2.2% to \$373.3 million during Q1 2026.

Operational and Strategic Updates

• Dividend Policy: The Q1 2026 dividend increase to \$0.25 per share reflects the board’s confidence in the company’s performance and capital position. This payout is notably higher than the \$0.15 dividends paid in the last two quarters and the \$0.12 paid in Q1 2025.
• Share Repurchase Program: \$10 million repurchase authorization remains fully available for 2026; no shares repurchased in Q1.
• Organic Expansion Initiatives:
  • Northwest Market: Two construction projects are ongoing, including a new Commercial and Private Banking LPO building in Shreveport, with planned relocations in May 2026.
  • New Orleans Market: Leasing and remodeling of the Energy Centre Building (Poydras Street) to relocate leadership and retail banking center, expected completion in Q3 2026.
  • Acadiana Market: Ground-breaking for a second full-service banking center on Camellia Boulevard, Lafayette, expected to open early 2027.
• Leadership: Jim Nelson has been appointed as Market President for New Orleans as of April 6, 2026, bringing significant local experience and leadership.
• Recognition: S&P Global Market Intelligence ranked Red River Bank 42nd among the top 50 U.S. banks (assets \$3–10 billion) for best deposit franchises in 2025.

Detailed Segment Analysis

Net Interest Income & Margin

• Net interest income rose slightly to \$28.4 million, despite two fewer accrual days in Q1 2026.
• The net interest margin (FTE) of 3.51% was stable, supported by higher average loan balances and steady loan yields.
• The average rate on new/renewed loans was 6.71%.
• The cost of deposits dropped by 3 basis points as the bank lowered selected deposit rates.
• Federal funds rate was stable at 3.50%-3.75% during the quarter.
• Approximately \$201.4 million of fixed-rate loans (at 5.87%) and \$515.0 million in time deposits (at 3.50%) are scheduled to mature in 2026, presenting opportunities for higher yields and lower repricing costs, respectively.

Noninterest Income & Expenses

• Noninterest income totaled \$4.5 million, down 8.4% from Q4 2025, mainly due to the absence of \$127,000 in nonrecurring partnership income and fluctuations in SBIC partnership results.
• Operating expenses decreased 5.5% to \$17.3 million, primarily due to vendor rebates and refunds:
• Personnel expenses declined 4% due to lower accruals and commissions; headcount stable at 375 employees.
• Data processing costs fell 47.1% due to a \$389,000 periodic refund.
• Loan & deposit expenses dropped 67.3% thanks to a \$201,000 vendor rebate.
• State tax expense was lower following changes to Louisiana tax law benefiting banks.

Asset Quality

• Nonperforming assets (NPAs) rose to \$4.3 million (0.13% of assets), mainly due to nonaccrual loans and OREO, but remain very low by industry standards.
• Provision for credit losses was steady at \$750,000; allowance for credit losses (ACL) stands at \$24.1 million (1.07% of loans HFI).
• Net charge-offs were negligible (0.00% of average loans).

Loan and Deposit Portfolio Details

• Loan portfolio composition remained stable. Notable changes include:
• Commercial real estate loans: \$911 million (40.4% of total loans).
• One-to-four family residential: \$633 million (28.1%).
• Construction and development: \$241 million (10.7%), up 8.8% from Q4 2025.
• Commercial & industrial: \$392 million (17.4%).
• Deposits by type:
• Noninterest-bearing: \$916 million (31.1% of total deposits).
• Interest-bearing: \$2.03 billion (68.9%); most categories stable, with minor declines due to seasonal outflows from public funds.
• Deposits by customer:
• Consumer: \$1.41 billion (47.8%).
• Commercial: \$1.30 billion (44.0%).
• Public entities: \$240 million (8.2%), down 18.7% due to seasonality.

Balance Sheet & Capital Strength

• Book value per share increased to \$56.76 (from \$55.52 at end-2025).
• Tangible book value per share: \$56.53.
• Realized book value per share (non-GAAP): \$63.70.
• Capital ratios remain very strong:
• Total risk-based capital: 18.51%.
• Tier 1 risk-based capital: 17.47%.
• Common equity Tier 1: 17.47%.
• Stockholders’ equity to assets: 11.16%.
• Tangible common equity to tangible assets: 11.11%.

Leadership Commentary & Outlook

President and CEO Blake Chatelain commented, “We are pleased to report another strong quarter to start 2026, with record earnings and a significant dividend increase. The bank benefited from periodic vendor rebates and refunds, while maintaining a steady net interest margin and robust capital.”

Looking ahead, management expects loan growth to resume in the coming quarters based on the current pipeline, and anticipates a slight increase in net interest income and margin, provided that interest rates remain stable and competition does not intensify. However, uncertainties such as geopolitical events (notably the situation in Iran and rising oil/energy prices) could impact inflation, interest rates, and overall economic conditions. The bank remains vigilant and committed to serving its communities and shareholders.

Potential Share Price Drivers & Shareholder Considerations

• Dividend Increase: A 66.7% increase in the quarterly dividend is a clear signal of management’s confidence and may attract income-focused investors, potentially supporting the share price.
• Record Earnings: Record net income and EPS could positively influence investor sentiment.
• Expansion & Growth Strategy: Ongoing physical expansion in key Louisiana markets and addition of experienced leadership (Jim Nelson in New Orleans) position the bank for further organic growth.
• Strong Capital & Asset Quality: Above-peer capital ratios and low credit losses reduce risk and provide flexibility for future growth or capital returns.
• Share Repurchase Program: The \$10 million buyback authorization provides optionality for additional capital return, although no shares were repurchased in Q1.
• Macroeconomic Risks: Management highlights geopolitical uncertainty and energy price inflation as potential headwinds; investors should monitor these developments.

Disclaimer: This article is based on the company’s Q1 2026 financial release and is intended for informational purposes only. It does not constitute investment advice. Investors should consider their own circumstances and consult professional advisors before making investment decisions. All forward-looking statements are subject to risks and uncertainties, including but not limited to economic, market, and geopolitical conditions. See the company’s filings with the SEC for further risk disclosures.

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