Red River Bancshares Reports $10.8 Million Net Income for Q3 2025, 5.9% Increase

Red River Bancshares, Inc. reported a net income of $10.8 million for the third quarter of 2025, translating to earnings per share of $1.63, marking a 5.9% increase from the previous quarter's net income of $10.2 million. This growth was primarily driven by a $1.1 million rise in net interest income, which reached $26.9 million, alongside a $253,000 contribution from nonrecurring partnership income. For the nine months ending September 30, 2025, net income totaled $31.3 million, or $4.65 per diluted share, reflecting a 25.8% increase compared to $24.9 million, or $3.59 per diluted share, for the same period in 2024.

The company's total assets increased to $3.21 billion as of September 30, 2025, up from $3.15 billion at the end of 2024. This growth was supported by a 4.7% rise in loans held for investment (HFI), which reached $2.17 billion, and a 1.2% increase in total deposits to $2.84 billion. The increase in deposits was attributed to higher balances in commercial customer accounts, although it was partially offset by seasonal outflows from public entity customers. The noninterest-bearing deposits also saw a notable increase of 6.1%, reaching $919 million.

In terms of operational developments, Red River Bancshares opened a new loan and deposit production office in Lafayette, Louisiana, as part of its strategy to expand its market presence. The company also engaged in stock repurchase activities, having repurchased 11,748 shares for $656,000 in the first nine months of 2025, with additional agreements for the repurchase of 200,000 shares at a total cost of approximately $10.4 million. The board of directors also announced a 25% increase in the quarterly cash dividend to $0.15 per share.

The allowance for credit losses (ACL) increased to $22.8 million, or 1.05% of loans HFI, reflecting a $1.1 million rise due to loan growth and economic uncertainties. Nonperforming assets (NPAs) decreased to $2.4 million, or 0.08% of total assets, down from $3.3 million at the end of 2024. The company reported a provision for credit losses of $650,000 for the third quarter, up from $450,000 in the previous quarter, indicating a cautious approach to potential credit risks.

Looking ahead, Red River Bancshares anticipates continued growth in its loan portfolio and deposits, while managing interest rate risks and maintaining strong capital ratios. The company remains committed to its strategic objectives of expanding its market share and enhancing shareholder value through prudent financial management and operational efficiency.