Red River Bancshares Reports $10.2 Million Net Income for Q2 2025

Red River Bancshares, Inc. reported a net income of $10.2 million for the second quarter of 2025, translating to earnings per share of $1.51, a slight decrease from $10.4 million or $1.52 per share in the previous quarter. The company's net interest income rose by $1.2 million to $25.8 million, driven by higher yields on loans and securities, while noninterest income fell by $554,000 to $4.7 million. For the first half of 2025, net income reached $20.5 million, a 27% increase compared to $16.2 million in the same period last year, primarily due to a $7.3 million rise in net interest income.

Total assets as of June 30, 2025, stood at $3.17 billion, reflecting a modest increase of $18.5 million, or 0.6%, from the end of 2024. Loans held for investment (HFI) increased by $63.6 million, or 3.1%, to $2.14 billion, while total deposits remained stable at $2.81 billion. The company experienced a seasonal outflow of funds from public entity customers, but this was offset by higher commercial customer deposits. The allowance for credit losses (ACL) rose to $22.2 million, or 1.04% of loans HFI, up from $21.7 million at the end of 2024.

In terms of strategic developments, Red River Bancshares has been active in its stock repurchase program, repurchasing 11,748 shares for $656,000 in the second quarter and entering a separate agreement to buy back 100,000 shares for approximately $5.1 million. The company also revised its credit card program to align with its debit card provider, aiming to enhance customer experience and operational efficiency.

Operationally, Red River Bancshares reported a total of 374 employees as of June 30, 2025, a slight decrease from 375 in the previous quarter. The bank operates 28 banking centers across Louisiana, focusing on expanding its market share in existing areas while exploring new opportunities for growth. The company’s nonperforming assets (NPAs) decreased significantly to $1.3 million, or 0.04% of total assets, down from $3.3 million at the end of 2024, indicating improved asset quality.

Looking ahead, Red River Bancshares anticipates continued growth in net interest income and margin, supported by a favorable interest rate environment and strategic asset management. The company expects to maintain its capital ratios above regulatory requirements, with a total risk-based capital ratio of 18.33% as of June 30, 2025. Management remains cautious about potential economic challenges but is optimistic about the bank's ability to navigate these conditions effectively.