Red River Bancshares, Inc. · NASDAQ:RRBI
Red River Bancshares — Investor Presentation (April 2025)
45 slides from Red River Bancshares's investor presentation, Apr 30, 2025
Slide 1: Investor Presentation
INVESTOR PRESENTATION As of March 31, 2025 Nasdaq: RRBI
Slide 2: Legal Disclosures
Legal Disclosures Statements in this presentation regarding our expectations and beliefs about our future financial performance and financial condition, as well as trends in our business, interest rates, and markets, are “forward-looking statements” within the meaning of Section 27A of the Securitie
Slide 3: Glossary
Glossary ■ 4Q21 - Fourth Quarter of 2021 ■ CAGR – Compound annual growth rate ■ M – Dollars in millions ■ 1Q22 – First Quarter of 2022 ■ CGMA – Chartered Global Management ■ M.B.A. – Master of Business Administration Accountant ■ 3Q22 – Third Quarter of 2022 ■ MBS – Mortgage-backed securities ■ CL(s
Slide 4: We're your people.
Were your people. re RED RIVER BANK redriverbank.net
Slide 5: Company overview and key facts
■ Established in 1998 in Alexandria, Louisiana ■ Completed IPO in May 2019 ■ Included in Russell 2000 Index ■ As of March 31, 2025: ■ Assets = $3.19 billion ■ Loans HFI = $2.11 billion ■ Securities = $699.5 million ■ Deposits = $2.83 billion ■ Market capitalization = $350.1 million ■ Ownership ■ Ins
Slide 6: We're your people.
Strong • Well capitalized • Solid liquidity position • Stock repurchase program Stable available • Conservative credit culture • Operating in the largest with solid asset quality markets in Louisiana • 28 banking centers and an • Granular, diversified, relationship-based loan and Consistent LDPO dep
Slide 7: History & Strategy
History & Strategy ge RED RIVER BANCSHARES, INC.
Slide 8: Company History
Company History 1998 Completed first stock offering of $12.4M 1999 Red River Bank opened in Rapides Parish 2000 Completed stock offering of $4.0M 2003 Acquired Bank of Lecompte in Central Louisiana 2006 Expanded into Northwest Market via banking center and completed stock offering of $5.0M 2009 Comp
Slide 9: Expansion Highlights
Expansion Highlights Acadiana Market – Lafayette, Louisiana ■ 4Q24 – Purchased property. Plan to build a new banking center. Will be our 2nd banking center in the Acadiana market New Orleans Market – New Orleans, Louisiana Poydras Street LDPO ■ 4Q21 – Opened LDPO in downtown New Orleans Baronne Stre
Slide 10: Book Value
Book Value $60.00 Realized Book Value Per Share1,2 $57.49 $55.00 Book Value Per Share2 $50.00 $49.18 Tangible Book Value Per Share1,2 $45.00 $48.95 $40.00 $35.00 $30.00 $25.00 $20.00 $15.00 CAGR 10.8% $10.00 $5.00 $— 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 201
Slide 11: Leadership Team
Leadership Team R. Blake Chatelain ■ President, Chief Executive Officer, and Director G. Bridges Hall, IV ■ Founding management ■ Senior Vice President and Chief Credit Policy Officer1 ■ Previously Executive Vice President of Rapides Bank & Trust ■ Joined Red River Bank in 2006 Company, a subsidiary
Slide 12: Growth Strategies
Growth Strategies De Novo Growth Strategy ■ Disciplined, targeted expansions for profitable growth Historical Asset Growth Method As of March 31, 2025 ■ Target markets with significant disruption by competitors ■ Concentrate on urban markets with growth potential ■ Focus on markets where market shar
Slide 13: Guiding Principles
Guiding Principles Relationship-Driven Client Focus Our relationship-driven client focus and consistent lending philosophy results in loyal loan customers who also provide stable core deposits. Experienced Bankers In addition to a cohesive, long-tenured executive management team, we enjoy the benefi
Slide 14: Embracing Technology
Embracing Technology ■ In 1Q25, RRB upgraded online and mobile banking platforms using Q2 Software’s market leading products. These systems have enhanced RRB’s digital offerings for both consumer and business customers ■ Allows RRB to offer a unified user experience across multiple platforms ■ Furth
Slide 15: Competitive Landscape
Competitive Landscape ■ Red River Bank holds 2.1% of Louisiana deposits1 ■ 54.9% of Louisiana deposits are held by large national or regional banks1 ■ Large banks de-emphasizing markets we serve Deposits in Louisiana1 $131.5 billion As of June 30, 2024 Deposit Market Share as of June 30, 20241 Red R
Slide 16: 2024 Overview
2024 Overview ge RED RIVER BANCSHARES, INC.
Slide 17: 2024 Highlights
2024 Highlights ■ Assets increased 0.7% to $3.15 billion 2024 2023 (dollars in thousands, except per share data) ■ Loans HFI increased 4.1% to $2.08 billion Net Income $ 34,235 $ 34,879 EPS, Diluted $ 4.95 $ 4.86 ■ Deposits were consistent between 12/31/24 and Book Value Per Share $ 47.18 $ 42.85 12
Slide 18: 2024 Selected Income Comparison
2024 Selected Income Comparison For the Years Ended Variance (dollars in thousands) 12/31/24 12/31/23 $ % Total Interest and Dividend Income $ 137,230 $ 118,568 $ 18,662 15.7% Total Interest Expense 47,936 32,130 15,806 49.2% Net Interest Income $ 89,294 $ 86,438 $ 2,856 3.3% Provision for Credit Lo
Slide 19: 1Q25 Overview
1Q25 Overview ge RED RIVER BANCSHARES, INC.
Slide 20: 1Q25 Financial Results
1Q25 Financial Results ■ Net income and EPS increased (dollars in thousands, except per share data) 1Q25 4Q24 1Q24 ■ NIM FTE improved 13 bps Net Income $ 10,352 $ 9,306 $ 8,188 EPS, Diluted $ 1.52 $ 1.37 $ 1.16 ■ Net interest income increased Book Value Per Share $ 49.18 $ 47.18 $ 43.43 3.9% Tangibl
Slide 21: Balance Sheet
Balance Sheet As of (dollars in thousands) 3/31/25 12/31/24 3/31/24 ■ Assets increased 1.2% to $3.19 Assets billion Cash and due from banks $ 36,438 $ 30,558 $ 19,401 Interest-bearing deposits in other banks 215,717 238,417 210,404 ■ Loans HFI increased 1.9% to $2.11 Securities AFS, at fair value 56
Slide 22: 1Q25 Selected Income Comparison
1Q25 Selected Income Comparison For the Quarters Ended Variance (dollars in thousands) 3/31/2025 12/31/2024 $ % Total Interest and Dividend Income $ 35,808 $ 35,630 $ 178 0.5% Total Interest Expense 11,198 11,943 (745) (6.2%) Net Interest Income $ 24,610 $ 23,687 $ 923 3.9% Brokerage Income $ 1,325
Slide 23: Loan Portfolio Overview
Loan Portfolio Overview ■ Loans HFI = $2.11 billion Largest Industry Concentrations As of March 31, 2025 ■ Average loan size excluding credit cards = $259,000 Health Care 8.0% Investor 1-to-4 and ■ Broad diversification by industry Multifamily 5.9% Construction 4.1% ■ Highest concentration = Health
Slide 24: Health Care Loans
Health Care Loans ■ Largest industry concentration ■ Health Care loans = $168.9 million, or 8.0%, of loans HFI ■ Average loan size = $370,000 ■ No shared national credits, real estate investment trusts, or assisted living facilities ■ Skilled nursing care facilities operate under a certificate of ne
Slide 25: Commercial Real Estate Loans
Commercial Real Estate Loans ■ CRE = $892.2 million, or 42.2% of loans HFI ■ C&D = $175.6 million, or 8.3% of loans HFI ■ CRE criticized loans = $7.2 million, or 0.8% of total CRE loans and 0.3% of loans HFI ■ CRE NPLs = $762,000, or 0.1% of total CRE loans and < 0.1% of loans HFI Owner Occupied CRE
Slide 26: CRE - NOO Office Loans
CRE - NOO Office Loans ■ NOO office loans = $54.2 million, or 2.6% of loans HFI ■ Primarily centered in low-rise suburban areas ■ Average size = $951,000 NOO Office Loans by Geographic Market As of March 31, 2025 ■ Average loan-to-value for NOO office loans = 51.1% (dollars in thousands) ■ No critic
Slide 27: C&D and CRE Historical Concentrations
C&D and CRE Historical Concentrations ■ Low levels of CRE relative to state, regional, and national peers ■ Concentration ratios as a % of risk-based capital are well below bank regulatory guidelines ■ As of 1Q25, RRB CRE Ratio = 157.9% and RRB C&D Ratio = 43.7% C&D Concentration(1) CRE Concentratio
Slide 28: Loans by Market
Loans by Market ■ Expanding operations in Southwest, Acadiana, Northshore, and Capital Markets ■ In the New Orleans Market, opened an LDPO in 2021, and full-service banking centers in 2022 and 2024 Opportunities and Challenges to Future Loans Loans HFI Opportunities Originated by Geographic Market A
Slide 29: Asset Quality
Asset Quality ■ NPAs increased slightly to $5.2 million NPAs / Assets (end of period) ■ NPAs to Assets = 0.16% 0.16% ■ Provision expense totaled $450,000 in 1Q25 0.11% 0.10% 0.10% 0.08% ■ ACL to loans HFI = 1.03% ■ Net charge-offs to average loans since Red River Bank’s opening in 1999 = 0.04% 1Q24
Slide 30: Deposits
Deposits ■ Deposits were $2.83 billion for 1Q25, an increase of $20.6 million, or 0.7%, compared to 4Q24, due to higher balances in consumer and commercial accounts, partially offset by the seasonal outflow of funds from public entity customers ■ Noninterest-bearing deposits to deposits ratio = 32.0
Slide 31: Deposit Characteristics
Deposit Characteristics ■ Granular, diversified deposit portfolio and customer base throughout Louisiana Deposits by Customer Type % of Deposits ■ Average deposit account size = $28,000 As of March 31, 2025 (dollars in millions) ■ Public entity deposits ■ Relationship-based Louisiana public entities
Slide 32: Securities
Securities Key Securities Metrics as of March 31, 2025 ■ Securities AFS portfolio at fair value = $566.9 million, net of $58.7 million Securities of unrealized loss (end of period) (in millions) ■ Securities HTM portfolio at amortized cost = $129.7 million $776.1 ■ Unrealized loss on HTM portfolio =
Slide 33: Liquidity and Borrowing Availability
Liquidity and Borrowing Availability Liquidity ■ Liquid Assets1 = $252.2 million, or 7.91% of assets, as of March 31, 2025, with $275.9 million average for 1Q25 ■ Estimated cash flows from securities, assuming consistent prepayment rates ■ $80.0 million principal repayments from April 2025 to Decemb
Slide 34: Capital
Capital ■ Well-capitalized position ■ 1Q25 - Paid a quarterly cash dividend of $0.12 per share, a 33% increase from $0.09 per share in 4Q24 ■ Stock repurchases ■ $5.0 million stock repurchase program in place for 2025 ■ Includes $56.4 million of net unrealized losses on securities AFS and HTM, 16.9%
Slide 35: Stockholders' Equity Trends
Stockholders’ Equity Trends Total Stockholders’ Equity $340.0 $333.3 (dollars in millions) $324.3 $319.7 $320.0 $307.0 $303.9 $299.3 $300.0 $283.4 $282.0 $276.6 $280.0 $260.0 Q1 Q2 Q3 Q4 2023 2024 2025 Realized Stockholders’ Equity1 $400.0 (dollars in millions) $389.7 $390.0 $380.0 $380.0 $373.9 $36
Slide 36: Profitability Trends
Profitability Trends Net Income Earnings Per Share (Diluted) (in thousands) $36,916 $5.13 $34,879 $4.86 $4.95 $34,235 $32,952 $4.51 $10,352 $1.52 2021 2022 2023 2024 1Q25 2021 2022 2023 2024 1Q25 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Efficiency Ratio YTD Return on Average Assets YTD 59.39% 60.29% 56.39% 56.60% 1.
Slide 37: Net Interest Margin Trend
Net Interest Margin Trend ■ NIM FTE increased 13 bps to 3.22% for 1Q25 ■ Improved yields on securities and loans, combined with lower deposit costs 5.41% 5.50% 5.33% 5.33% 5.32% 5.34% 5.21% 5.26% 5.00% 5.09% 4.65% 4.50% 4.33% 4.26% 4.12% 4.19% 4.00% 4.17% 3.80% 3.50% 3.22% 3.09% 2.92% 2.98% 3.00% 2.
Slide 38: Net Interest Margin Update
Net Interest Margin Update Average Yield / Rate Basis Points 1Q25 4Q24 Increase (Decrease) Details New/renewed loan rates: 1Q25 7.02%, 4Q24 7.25% Loans 5.41% 5.34% 7 Floating rate loans = 17.6% of loans HFI Securities 2.59% 2.48% 11 Purchased $36.8 million at 4.99% Total interest-earning assets 4.64
Slide 39: Noninterest Income (1Q25 vs. 4Q24)
Noninterest Income (1Q25 vs. 4Q24) ■ Noninterest income increased Noninterest Income $277,000 to $5.3 million for 1Q25 For the quarter ended March 31, 2025 (dollars in thousands) ■ Brokerage income increased $401,000 to $1.3 million for 1Q25 due to increased investing activity by clients Other Incom
Slide 40: Operating Expense (1Q25 vs. 4Q24)
Operating Expense (1Q25 vs. 4Q24) ■ Operating expenses decreased $252,000 to $16.6 million for 1Q25 ■ Data processing expenses decreased $393,000 to $288,000 for 1Q25 ■ Received a $447,000 periodic refund from our data processing center ■ Partially offset by new expenses and $14,000 of nonrecurring
Slide 41: Strategic Outlook
Strategic Outlook ■ Continue building a strong, Louisiana-based, super-community bank by leveraging existing infrastructure and adding select new locations to support growth ■ Operate with high performing financial results ■ Maintain disciplined capital management, including consistent dividends and
Slide 42: Summary
Summary Well positioned for the future Well capitalized with 12.01% leverage ratio and stockholders’ equity to assets of 10.46% Increased cash dividend and available stock buyback program Diversified loan portfolio with solid asset quality and a good loan pipeline Granular, diversified deposit portf
Slide 43: Appendix
Appendix ge RED RIVER BANCSHARES, INC.
Slide 44: Non-GAAP Reconciliation
Non-GAAP Reconciliation As of (dollars in thousands, except per share data) 3/31/25 12/31/24 3/31/24 12/31/23 Tangible common equity Total stockholders’ equity $ 333,316 $ 319,739 $ 299,314 $ 303,851 Adjustments: Intangible assets (1,546) (1,546) (1,546) (1,546) Total tangible common equity (non-GAA
Slide 45: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) As of (dollars in thousands) 9/30/24 6/30/24 9/30/23 6/30/23 3/31/23 Realized common equity Total stockholders’ equity $ 324,318 $ 306,990 $ 281,951 $ 283,372 $ 276,640 Adjustments: Accumulated other comprehensive (income) loss 49,624 61,732 77,486 69,693 68,541 T
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