Red River Bancshares, Inc. · NASDAQ:RRBI
Red River Bancshares — Investor Presentation (June 2021)
35 slides from Red River Bancshares's investor presentation, Jun 30, 2021
Slide 1: Investor Presentation
INVESTOR PRESENTATION As of June 30, 2021 Nasdaq: RRBI
Slide 2: Forward-Looking Statements and Non-GAAP Information
Forward-Looking Statements and Non-GAAP Information This presentation contains forward-looking statements that are based on various facts and derived utilizing numerous important assumptions and are subject to known and unknown risks, uncertainties, and other factors that may cause Red River Bancsha
Slide 3: Glossary of Terms
Glossary of Terms 3Q22 – Third Quarter of 2022 CRE – Commercial real estate MSA – Metropolitan statistical area 1Q21 – First Quarter of 2021 DDA – Noninterest-bearing demand NIM – Net interest margin deposit accounts 2Q21 – Second Quarter of 2021 NOW – Negotiable order of withdrawal EP – Energy port
Slide 4: Authentic community banking focused on building personal relationships
Authentic community banking focused on building personal relationships and maximizing shareholder value Banking Mortgage Investments 4
Slide 5: Hurricane Ida Update
Hurricane Ida Update Hurricane Ida made landfall on Sunday, August 29 in Southeast Louisiana as a Category 4 hurricane. No significant damage to any Red River Bank locations or impact to personnel. Operational systems, digital and mobile banking, and ATMs fully functional in areas with power and int
Slide 6: Company Overview
Company Overview Established in 1998 in As of June 30, 2021: Alexandria, Louisiana Assets = $2.88 billion Completed IPO in May 2019 Loans HFI = $1.60 billion Nasdaq: RRBI Deposits = $2.57 billion Included in Russell 2000 Index Market capitalization = $368.0 million Ownership Insiders = 33% Instituti
Slide 7: Tangible Book Value Growth
Tangible Book Value Growth $40.00 $35.00 Tangible Book Value Per Share¹ $30.00 $25.00 $20.00 $15.00 Tangible Book Value Per Share1,2 $10.00 $5.00 CAGR of 11.7% $0.00 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2Q21 Note: Each year on
Slide 8: Company Strengths
Company Strengths Consistent, long-term track record of financial results and steady growth Conservative credit culture with solid asset quality Stable, low cost core deposit base Strategic banking center network 26 banking centers and 1 LPO/DPO in Louisiana Average deposits per center = $102.8 mill
Slide 9: Growth Strategies
Growth Strategies De Novo Growth Strategies Historical Asset Growth Method Concentrate on urban markets with growth potential As of June 30, 2021 Focused on markets where market share is held by large national and regional banks Organic Target markets with significant disruption by 94.4% competitors
Slide 10: Recent Expansion Highlights
Recent Expansion Highlights Southwest Market – Lake Charles, Louisiana Lake Charles Banking Center 4Q20 – Purchased an existing banking center in Lake Charles, Louisiana. 3Q21 – Remodeled and opened the third location in the Southwest market as the 26th Red River Bank banking center on July 6, 2021.
Slide 11: Digital Banking Strategy
Digital Banking Strategy Providing our customers with the digital tools to manage their personal and business banking needs Providing a full suite of treasury management systems and services Also supplying access to knowledgeable bankers in addition to digital platforms allowing customers to choose
Slide 12: Competitive Landscape
Competitive Landscape Red River Bank has 1.9% of Louisiana deposits (as of June 30, 2021)1 61.9% of deposits in the state are held by large national or regional banks Deposits in Louisiana1 Deposit Market Share $138.2 billion As of June 30, 2021 As of June 30, 2021 1st Red River Banking Deposit Bank
Slide 13: Second Quarter 2021 Financial Results
Second Quarter 2021 Financial Results Quarterly net income increased $174,000 from prior quarter (do l l a r s i n tho usa nds, e x ce p t p e r sha r e da ta ) 2Q21 1Q21 2Q20 to $8.2 million for 2Q21 Net Income $ 8,239 $ 8,065 $ 6,854 Provision for loan losses expense decreased $1.3 EPS, Diluted $
Slide 14: June 30, 2021 Year-to-Date Financial Results
June 30, 2021 Year-to-Date Financial Results Assets increased 8.9%, or $235.8 million, to $2.88 billion Year-to-date net income increased 20.0%, or Non-PPP loans increased 3.2%, or $47.4 million, to $2.7 million, to $16.3 million compared to $1.52 billion same period in 2020 PPP loans decreased 30.0
Slide 15: Conservative Balance Sheet
Conservative Balance Sheet Balance Sheet As of Increasing liquidity (do l l a r s i n tho usa nds) June 3 0 , 2 0 2 1 Overnight liquidity to assets = 22.0% Assets Cash and due from banks $ 33,728 Conservative securities portfolio Interest-bearing deposits in other banks 633,744 Securities AFS to ass
Slide 16: Loan Portfolio Overview
Loan Portfolio Overview Non-PPP loans totaled $1.52 billion as of June 30, 2021 Largest Industry Concentrations As of June 30, 2021 (excluding PPP Loans)1 Broad diversification by industry Health Care 9.5% Construction 4.4% Highest industry concentration is in health care at 9.5% Investor 1-to-4 and
Slide 17: Loans By Market
Loans By Market Focus on major markets and MSA’s in Louisiana Five of our six markets have unemployment rates below state of Louisiana average Three of our markets have unemployment rates below national average Non-PPP Loans HFI1 Originated by geographic market Unemployment Rate As of June 30, 2021
Slide 18: Health Care Loans
Health Care Loans Health care loans as of June 30, 2021, totaled $144.0 million, or 9.5%, of non-PPP loans HFI1 Largest industry concentration 2 No shared national credits, real estate investment trusts, or assisted living facilities Skilled nursing care facilities operate under a certificate of nee
Slide 19: Energy Portfolio Loans
Energy Portfolio Loans EP loans as of June 30, 2021 totaled $30.1 million, or 2.0%, of EP / Non-PPP Loans HFI1 3.4% non-PPP loans HFI1 2.9% Average loan size = $626,000 2.2% Charge-offs since 2017 were $2.8 million 2.0% As of June 30, 2021, nonperforming energy loans to total energy 1.3% loans = 2.6
Slide 20: Commercial Real Estate Loans
Commercial Real Estate Loans CRE loans were $578.0 million, or 36.1%, of loans HFI as June 30, 2021 Low levels of CRE relative to state, regional, and national peers CRE criticized loans were $4.3 million, or 0.7% of total CRE loans CRE NPLs were $747,000, or 0.1% of total CRE loans CRE concentratio
Slide 21: Paycheck Protection Program
Paycheck Protection Program Originated PPP Loans 2Q21 Through June 30, 2021 . . Forgiveness of PPP1 loans outpaced issuance of PPP2 loans (do l l a r s i n tho usa nds) PPP1 . PPP1 .2 2 PPP2 3 Total Amount $ 199,047 $ 3,486 $ 58,261 $ 260,794 PPP loan income was $1.1 million for 2Q21 and $2.1 millio
Slide 22: Asset Quality
Asset Quality NPAs – decreased in 2021 due to payoff of Asset Quality Metrics nonaccrual loans, partially offset by increase in As of and for the quarter ended foreclosed assets (do l l a r s i n tho usa nds) 2 Q2 0 3 Q2 0 4 Q2 0 1 Q2 1 2 Q2 1 Provision for loan loss expense - decreased N PLs $ 3,44
Slide 23: Loan Sectors with Heightened Risk due to COVID-19
Loan Sectors with Heightened Risk due to COVID-19 Loans As of June 30, 2021 % N on-PPP Active deferrals, all in the hospitality services sector, (do l l a r s i n tho usa nds) Am ount . Loans HF I 1 continue to decline and were $8.1 million, or 0.5% of By Industry Hospitality services: non-PPP loans
Slide 24: Securities Portfolio - Conservative
Securities Portfolio - Conservative Key metrics Securities (in millions) Securities AFS portfolio totaled $512.0 million as of June 30, 2021 $498.2 $512.0 Agency 1.4% 17.8% of assets 2Q21 FTE yield = 1.86% Muni - AFS $354.3 41.2% Effective duration = 4.1 years $335.6 $307.9 Average life = 5.3 years
Slide 25: Attractive Core Deposit Base
Attractive Core Deposit Base Deposits increased $54.3 million, or 2.2%, in 2Q21 due to customers maintaining higher deposit balances Cost of deposits was 0.22% for 2Q21; down from 1Q21 due to an eight bp decrease in the rate on interest- bearing deposits No brokered deposits Total Deposits Deposit M
Slide 26: Profitability Trends
Profitability Trends Net Income1 Earnings Per Share (Diluted)1,2 (in thousands) $28,145 $3.83 $24,824 $3.41 $3.49 $23,056 $2.48 $16,215 $16,304 $2.22 2017 2018 2019 2020 1H21 2017 2018 2019 2020 1H21 Q1 Q2 Q3 Q4 Tax Reform Q1 Q2 Q3 Q4 Tax Reform Efficiency Ratio (%) Return on Average Assets (%)1 62.
Slide 27: Net Interest Margin FTE (2Q21 vs. 1Q21)
Net Interest Margin FTE (2Q21 vs. 1Q21) NIM FTE decreased 22 bps to 2.54% for 2Q21 NIM decreased due to lower PPP loan income, lower interest rates on new and renewing non-PPP loans, and having high levels of low- yielding short-term liquid assets The high level of liquidity had a 70 bp negative imp
Slide 28: Loan Yield and Net Interest Ratios Excluding PPP Loans
Loan Yield and Net Interest Ratios Excluding PPP Loans1 (2Q21) Non-PPP loan income = $15.3 million yielding 4.01% for the three months ended June 30, 2021 Excluding PPP loans, NIM FTE decreased 5 bps to 2.48%1 2Q21 1Q21 Excluding Excluding 1 Ratios Actual PPP Loans . Actual PPP Loans 1 Loan Yield 4.
Slide 29: Noninterest Income (2Q21 vs. 1Q21)
Noninterest Income (2Q21 vs. 1Q21) Noninterest income decreased $372,000 to $6.4 million for 2Q21 Mortgage income decreased $525,000 to $2.4 million for 2Q21 due to reduced mortgage loan demand Debit card income, net increased $158,000 to $1.2 million for 2Q21 due to an increased number of debit car
Slide 30: Operating Expenses (2Q21 vs. 1Q21)
Operating Expenses (2Q21 vs. 1Q21) Operating expenses increased $229,000 to $13.4 million for 2Q21 Personnel expenses increased $89,000 to $8.1 million for 2Q21, primarily due to annual merit increases effective April 2021 Data processing expense increased $147,000 to $532,000 for 2Q21 due to receip
Slide 31: Strategic Outlook
Strategic Outlook Disciplined focus on personal, relationship banking and building shareholder value Prudently deploy excess liquidity in loans and securities Continue building a strong, Louisiana-based, super-community bank Open new Lafayette banking center and continue to expand market share in ne
Slide 32: Summary
Summary 2 Record-high quarterly net income of $8.2 million Diversified loan portfolio with solid asset quality and allowance High liquidity levels with opportunity to deploy into loans and securities Well capitalized with 10.13% leverage ratio as of June 30, 2021 Consistent returns through June 30,
Slide 33: Appendix
ae RED RIVER BANCSHARES, INC. APPENDIX
Slide 34: Non-GAAP Reconciliation
Non-GAAP Reconciliation As of As of . As of … As of (do l l a r s i n tho usa nds, e x ce pt pe r sha r e da ta ) June 30, 2021 . March 31, 2021 . December 31, 2020 . June 30, 2020 Tangible common equity Total stockholders' equity $ 292,924 $ 284,911 $ 285,478 $ 271,117 Adjustments: Intangible asset
Slide 35: Non-GAAP Reconciliation
Non-GAAP Reconciliation As of As of As of . As of (do l l a r s i n tho usa nds) June 30, 2021 . March 31, 2021 …December 31, 2020 . June 30, 2020 Non-PPP loans HFI Loans HFI $ 1,600,388 $ 1,602,086 $ 1,588,446 $ 1,615,298 Adjustments: PPP loans, net (82,972) (119,358) (118,447) (192,655) Non-PPP lo
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