Red River Bancshares, Inc. · NASDAQ:RRBI
Red River Bancshares — Investor Presentation (September 2019)
31 slides from Red River Bancshares's investor presentation, Sep 18, 2019
Slide 1: Investor Presentation September 2019
Exhibit 99.1 Investor Presentation September 2019 Nasdaq: RRBI Made in Louisiana. Made for Louisiana.
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: Company Overview
Company Overview . Red River Bancshares, Inc. was established in 1998 in Alexandria, Louisiana; Red River Bank opened its doors in January 1999 . Completed IPO on May 7, 2019 with the issuance of 663,320 new shares of common stock at a public offering price of $45.00 per share . Stock traded on Nasd
Slide 4: Financial Highlights (Unaudited)
Financial Highlights (Unaudited) As of Dollars in thousands, except per share data June 30, 2019 March 31, 2019 June 30, 2018 Assets $1,892,918 $1,922,118 $1,764,768 Loans Held for Investment $1,393,154 $1,349,181 $1,326,552 Deposits $1,634,590 $1,691,134 $1,560,339 Total Stockholders' Equity/Total
Slide 5: Capital
Capital (Dollars in thousands, except per share amounts) June 30, 2019 December 31, 2018 Long-Term Debt Other Borrowings $ - $ - 1 Junior Subordinated Debentures 5,155 11,341 Total Long-Term Debt $ 5,155 $ 11,341 Stockholders' Equity Common Stock 68,082 41,094 Additional Paid-in Capital - - Retained
Slide 6: Company Strengths
Company Strengths Tangible book value per share¹ has a compounded annual growth rate (“CAGR”) of 11.7% since our initial private placement common stock offering in 1998 Management and directors own 35% of outstanding stock as of June 30, 2019, and are focused on increasing shareholder value Co
Slide 7: History and Trends
HISTORY AND TRENDS 7
Slide 8: Corporate History
Corporate History Expansion into Red River Bank Acquired Bank of Entry into Expansion into North Shore LA via opens in Lecompte in Northwest LA via Southeast LA via Expansion into LPO (2019) Rapides Parish Central LA de novo branch Fidelity Bancorp, Inc. Southwest LA via (1999) (2003) (2006) acquisi
Slide 9: Consistent Profitability
Consistent Profitability Net Income ($000) Earnings Per Share (Diluted)2 $23,056 $3.41 $16,215 $13,985 $15,102 $2.48 $13,956 $2.35 $13,069 $2.17 $2.14 $11,641 $2.04 $11,134 $11,234 $1.83 $1.84 $10,101 $1.66 $1.63 $8,337 $1.37 1 1 2010 2011 2012 2013 2014 2015 2016 2017 2018 2Q19 2010 2011 2012 2013
Slide 10: Consistent, Disciplined Growth
Consistent, Disciplined Growth Total Assets ($M) Total Loans HFI ($M) $1,861 $1,893 $1,393 $1,328 $1,724 $1,248 $1,645 $1,147 $1,493 $1,398 $1,033 $1,301 $944 $849 $1,122 $998 $680 $893 $605 $558 2010 2011 2012 2013 2014 2015 2016 2017 2018 2Q19 2010 2011 2012 2013 2014 2015 2016 2017 2018 2Q19 Tota
Slide 11: Conservative Credit Culture
Conservative Credit Culture Nonperforming Assets ($000) NPAs/Total Assets (%) $13,230 $10,409 0.70 0.60 $7,145 $6,309 $5,968 0.40 0.42 $5,617 0.36 0.38 0.28 0.29 $3,716 0.26 $2,792 $2,880 $504 0.06 2010 2011 2012 2013 2014 2015 2016 2017 2018 2Q19 2010 2011 2012 2013 2014 2015 2016 2017 2018 2Q19 Ne
Slide 12: Markets and Strategy
MARKETS AND STRATEGY 12
Slide 13: Franchise Footprint
Franchise Footprint Made in Louisiana. Made for Louisiana. 4 Markets 9 Parishes 23 Banking Centers 1 Loan Production Office 13
Slide 14: Louisiana Market Overview
Louisiana Market Overview Central 1 . Includes Rapides and Avoyelles Parishes, which encompasses the Deposit Breakdown Alexandria MSA st . Population: 172,628 1 Banking Deposit CAGR Center Deposits Banking Market Market Since . Major employers in the area include: Procter & Gamble, Cleco, Opened ($M
Slide 15: Louisiana Update
Louisiana Update . Louisiana projected to add 59,500 jobs over 2019-2020, surpassing the 2 million job mark for the first time in history . Louisiana unemployment rate – 4.3% . Submarket unemployment rate – Alexandria: 5.7%, Shreveport: 5.7%, Baton Rouge: 4.9%, and Lake Charles: 4.3% . Louisiana con
Slide 16: Business Strategy
Business Strategy Commercial Personal Banking Banking Real Estate Loans Retail Banking Network . CRE Owner Occupied – focused on businesses within the . Strategic network of banking centers that attracts customers, Company’s geographic footprint that have a history of strong, allowing the Bank to de
Slide 17: Guiding Principles - Lending
Guiding Principles - Lending . CONSERVATIVE CREDIT CULTURE . Our founding Management Team developed the initial credit culture, predicated upon conservative underwriting principles carried over from regional bank experience. This same team has overseen the implementation, and periodic adjustment, of
Slide 18: Leadership Team
Leadership Team • President, Chief Executive Officer and Director • Shreveport-Bossier City Market President • Founding management • Previously Credit Department Manager (Dallas) at • Previously Executive Vice President of Rapides Bank & Trust Company, G. Bridges Hall, IV Hibernia National Bank a su
Slide 19: 2019 Activity
2019 ACTIVITY 19
Slide 20: Operational Highlights
Operational Highlights . Common stock began trading on the Nasdaq Global Select Market under the trading symbol “RRBI” on May 3, 2019 . Completed IPO of common stock with issuance of 663,320 new shares of common stock at a public offering price of $45.00 per share . Received net proceeds of $26.8 mi
Slide 21: Loan Portfolio Composition
Loan Portfolio Composition Construction & . Development Owner Broad diversification by industry, with each 8.6% Occupied CRE industry concentration less than 10% of total 20.7% Tax-Exempt loans held for investment 4.1% Non-Owner . Highest industry concentration is in healthcare Occupied CRE at 9.0%
Slide 22: Energy Loans
Energy Loans . As of June 30, 2019, the energy portfolio (EP) totaled $34.3 million in funded loans, or 2.5% of total loans HFI, down from a multi-year high of 4.2% in 2016 . 37.2% of the EP are either participations purchased or syndicated credits (non-originated), totaling $12.8 million, of which
Slide 23: Attractive Core Deposit Base
Attractive Core Deposit Base NOW . Total deposits of $1.63 billion as of June 30, 2019 16.2% DDA 35.3% . Cost of deposits of 0.59% for the six months ended June 30, 2019 Money Market 21.4% . As of June 30, 2019, core deposits1 represented 94.6% of total deposits; noninterest-bearing Time ≤ $250K Sav
Slide 24: Balance Sheet Component Ratios
Balance Sheet Component Ratios Loans HFI / Deposits 90.00% 85.02% 83.04% 85.23% 81.76% 81.79% 80.73% 78.56% 78.62% 79.78% 80.00% 73.83% 70.00% 60.00% 50.00% DDA / Deposits 40.00% 33.20% 35.15% 33.05% 34.11% 35.04% 35.04% 33.29% 33.45% 35.30% 32.44% 30.00% 20.00% 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q
Slide 25: Net Interest Margin Ratios
Net Interest Margin Ratios 5.00% 4.61% 4.60% Loan Yield 4.49% 4.52% 4.30% 4.37% 4.16% 4.24% 4.23% 4.20% 4.00% Net Interest Margin - FTE 3.54% 3.49% 3.52% 3.51% 3.39% 3.45% 3.29% 3.38% 3.15% 3.20% 3.00% 2.40% 2.40% 2.22% 1.74% 1.92% 2.00% Average Effective Fed Funds Rate 1.45% 1.15% 1.20% 0.95% 1.00%
Slide 26: Interest Rate Environment Management
Interest Rate Environment Management . Red River Bank diligently monitors its interest rate risk through oversight by the Asset Liability Management Committee and working within established policy guidelines . Balance sheet is asset sensitive . As of June 30, 2019, loans HFI were 85.23% and noninter
Slide 27: Future Growth Opportunities
Future Growth Opportunities Organic Growth . Opportunity to increase market share in existing markets and expand into new Louisiana markets . Focused on commercial and small business customers and high net worth individuals . Belief that the competition for customers starts with the competition for
Slide 28: Summary
Summary Recent successful IPO Well capitalized with growth capacity History of consistent growth and profitability Positioned for organic growth combined with selective acquisitions Conservative, consistent credit culture Insiders have significant ownership Made in Louisiana. Made for Louisiana.
Slide 29: Appendix
Appendix
Slide 30: Non-GAAP Reconciliation
Non-GAAP Reconciliation (Dollars in thousands, except per share data) As of June 30, As of March 31, As of June 30, 2019 2019 2018 Tangible Common Equity: Total Stockholders' Equity $ 237,911 $ 202,184 $ 184,047 Adjustments: Goodwill (1,546) (1,546) (1,546) Other Intangibles - - - Tangible Common Eq
Slide 31: Non-GAAP Reconciliation
Non-GAAP Reconciliation (Dollars in thousands, except per share data) As of December 31, 2018 2017 2016 2015 2014 2013 2012 2011 2010 Tangible Common Equity: Total Stockholders' Equity $ 193,703 $ 178,103 $ 151,823 $ 142,380 $ 129,160 $ 111,502 $ 104,131 $ 92,082 $ 77,986 Adjustments: Goodwill (1,54
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