Red River Bancshares Reports $10.4 Million Net Income in Q1 2025, Up 11.2% from Previous Quarter

Red River Bancshares, Inc. reported a net income of $10.4 million for the first quarter of 2025, translating to earnings per share of $1.52, marking an increase of 11.2% from the previous quarter's net income of $9.3 million. This growth was driven by a $923,000 rise in net interest income, which reached $24.6 million, and a $277,000 increase in noninterest income, totaling $5.3 million. The company's return on assets improved to 1.32%, while return on equity rose to 12.85%. The increase in net interest income was attributed to higher yields on securities and lower deposit rates, contributing to a net interest margin of 3.22%, up from 3.09% in the prior quarter.

Comparatively, Red River Bancshares experienced a significant year-over-year increase in net income, up 26.4% from $8.2 million in the first quarter of 2024. The total assets of the company increased by $36.8 million, or 1.2%, to $3.19 billion, primarily due to a $20.6 million rise in deposits, which reached $2.83 billion. The loan portfolio also saw growth, with loans held for investment (HFI) increasing by $39.7 million, or 1.9%, to $2.11 billion. The company reported a provision for credit losses of $450,000, reflecting concerns over loan growth and economic uncertainties.

In terms of operational developments, Red River Bancshares upgraded its digital banking systems in the first quarter, enhancing online and mobile banking services for customers. The company also announced a 33.3% increase in its quarterly cash dividend, raising it to $0.12 per share. As of March 31, 2025, the bank operated 28 banking centers across Louisiana and maintained a strong market presence, ranking 14th among the top 50 best deposit franchises for banks with assets between $3.0 billion and $10.0 billion, according to S&P Global Market Intelligence.

The company’s total stockholders’ equity increased by $13.6 million, or 4.2%, to $333.3 million, supported by net income and a market adjustment to accumulated other comprehensive income (AOCI) related to securities. The allowance for credit losses (ACL) stood at $21.8 million, or 1.03% of loans HFI, slightly down from 1.05% in the previous quarter. Nonperforming assets (NPAs) rose to $5.2 million, or 0.16% of total assets, reflecting an increase in past due loans, although the company noted that some of these loans had been brought current shortly after the quarter ended.

Looking ahead, Red River Bancshares anticipates continued growth in net interest income and margin, supported by a favorable interest rate environment and strategic management of its loan and deposit portfolios. The company remains focused on maintaining its capital ratios above regulatory requirements and managing its asset quality amid evolving economic conditions.