Red River Bancshares, Inc. · NASDAQ:RRBI
Red River Bancshares — IPO Roadshow (April 2019)
24 slides from Red River Bancshares's IPO roadshow presentation, Apr 25, 2019
Slide 1: Initial Public Offering May 2019
Initial Public Offering May 2019 Made in Louisiana. Made for Louisiana. Free Writing Prospectus Filed Pursuant to Rule 433 Registration Statement No. 333-230798 Dated April 25, 2019
Slide 2: Legal Information and Disclaimers
Red River Bancshares, Inc. (the "Company," "RRBI," "Red River," "we" or "our") has filed a registration statement (including a prospectus, which is preliminary and subject to completion) with the U.S. Securities and Exchange Commission (the “SEC”) for the offering to which this communication relates
Slide 3: Offering Summary
Offering Summary Issuer: Red River Bancshares, Inc. Exchange/Ticker: NASDAQ Global Select Market / RRBI (pending) Shares Offered / Structure: 600,000 shares / 95.6% primary, 4.4% secondary Filing Range: $42.00 - $46.00 Base Offering Amount: $26.4 million (at midpoint of filing range; inclusive of se
Slide 4: Investment Highlights
Investment Highlights Management team focused on increasing shareholder value – tangible book value¹ is up 768% since the initial private placement common stock offering in 1998 Continuity of leadership – four of the top executives are part of the founding management team Operates in a balanced mix
Slide 5: Management Team
G. Bridges Hall, IV Shreveport-Bossier City Market President Previously Credit Department Manager (Dallas) at Hibernia National Bank Joined Red River Bank in 2006 David K. Thompson Baton Rouge Market President Previously Baton Rouge Commercial Group Lender at IBERIABANK Joined Red River Bank in 2015
Slide 6: Company Overview
Company Overview Red River Bancshares, Inc. was established in 1998 in Alexandria, Louisiana; Red River Bank opened its doors in January 1999 Network of 23 banking centers located in Central, Northwest, Southeast, and Southwest Louisiana and 1 loan production office in Covington, Louisiana Relations
Slide 7: Corporate Culture
Corporate Culture WE BELIEVE IN * SERVICE EXCELLENCE We believe in providing excellent customer service. We build long-term relationships by serving our customers and helping them meet their financial goals. * CONFIDENTIALITY We believe any information our customers put in our trust will be protecte
Slide 8: Corporate History
Corporate History Note: Each year on the Tangible Book Value graph represents year end financial data ¹Non-GAAP measure. See “Legal Information and Disclaimers” on slide 2 and “Non-GAAP Reconciliation” on slide 24 for additional information Source: Red River Bancshares, Inc.; tangible book value per
Slide 9: Franchise Footprint
Franchise Footprint Made in Louisiana. Made for Louisiana. 4 Markets 9 Parishes 23 Banking Centers 1 Loan Production Office
Slide 10: Louisiana Market Overview
Louisiana Market Overview Deposit Breakdown Demographic Highlights Source: S&P Global Market Intelligence; deposits as of June 30, 2018, The Louisiana Economic Outlook: 2018 and 2019, U.S. Census Bureau population estimates for 2017 Central Includes Rapides and Avoyelles Parishes, which encompasses
Slide 11: Consistent, Disciplined Growth
Consistent, Disciplined Growth Total Loans ($M) Total Assets ($M) Total Deposits ($M) Tangible Book Value Per Share1 CAGR Since 2009 – 9.7% CAGR Since 2009 – 11.0% CAGR Since 2009 – 10.0% CAGR Since 2009 – 10.8% ¹Non-GAAP measure. See “Legal Information and Disclaimers” on slide 2 and “Non-GAAP Reco
Slide 12: Conservative Credit Culture
Conservative Credit Culture NPAs/Total Assets (%) Nonperforming Assets ($000) Net Charge-offs/Average Loans (%) Allowance for Loan Losses/Total Loans (%) Source: Red River Bancshares, Inc.
Slide 13: Consistent Profitability
Consistent Profitability Earnings Per Share (Diluted)2 Return on Average Assets (%) Net Income of $23.1 million in 2018 2018 ROAA of 1.29% places the Company in the top 25% of major exchange3 traded banks under $5.0 billion in assets Average ROAA of 0.99% over the past 10 years 2018 Noninterest Inco
Slide 14: Business Strategy
Business Strategy Commercial Banking Personal Banking Real Estate Loans CRE Owner Occupied – focused on businesses within the Company’s geographic footprint that have a history of strong, recurring cash flows CRE Non-Owner Occupied – secondary pursuit reserved primarily for well-established develope
Slide 15: Loan Portfolio Composition
Loan Portfolio Composition No industry concentration greater than 10% of total loans held for investment Highest industry concentration is in healthcare at 9.1% Energy loans are 2.9% of the total portfolio Concentration ratios are well below bank regulatory guidelines: Construction & Development Rat
Slide 16: Attractive Core Deposit Base
Attractive Core Deposit Base $1,250 $1,331 $1,473 $1,526 Total Deposits ($M) Noninterest-bearing Deposits ($M) Total deposits of $1.65 billion as of year-end 2018 4th quarter 2018 cost of deposits was 0.51% As of December 31, 2018, core deposits1 represented 95.0% of total deposits; noninterest- bea
Slide 17: Navigating Rising Rates
Navigating Rising Rates Source: Red River Bancshares, Inc.; Federal Reserve Loan Yield Average Effective Fed Funds Rate Cost of Deposits
Slide 18: Asset Liability Management
As of December 31, 2018 As of December 31, 2017 Change in Interest Rates (Basis Points) % Change in Net Interest Income % Change in Fair Value of Equity % Change in Net Interest Income % Change in Fair Value of Equity +300 19.2% 7.1% 15.3% 2.3% +200 12.9% 5.1% 10.3% 2.0% +100 6.6% 3.0% 5.3% 1.6% -10
Slide 19: Pro Forma Capital
Pro Forma Capital *Does not include $341,000 of common securities issued to the Company by three statutory business trusts in connection with the issuance of such junior subordinated debentures ¹Non-GAAP measure. See “Legal Information and Disclaimers” on slide 2 and “Non-GAAP Reconciliation” on sli
Slide 20: Recent Developments
Recent Developments Hired an experienced banker and opened a loan production office in Covington, Louisiana, expanding Red River Bank into St. Tammany Parish In the first quarter of 2019, total assets grew $61.5 million (3.3%), total loans grew by $20.0 million (1.5%), and total deposits grew by $45
Slide 21: Future Growth Opportunities
Future Growth Opportunities Organic Growth Opportunity to increase market share in existing markets and expand into new Louisiana markets Belief that the competition for customers starts with the competition for the best bankers Proven ability to identify and acquire talented bankers with extensive
Slide 22: Appendix
Appendix
Slide 23: Holding Company Board of Directors
Holding Company Board of Directors Name Beneficial Ownership (%) Professional Background John C. Simpson, Chairman 7.58 Private investor and former President and Chief Executive Officer of Red Simpson, Inc., a power line construction company based in Alexandria, Louisiana until 2004 sale to Pike Ele
Slide 24: Non-GAAP Reconciliation
Non-GAAP Reconciliation Source: Red River Bancshares, Inc.