Key Highlights

  • Record Net Income of USD 12.6 million, or USD 1.90 per diluted share, rose 16.3% year over year.
  • Net interest income increased USD 916,000, or 3.2%, from the second quarter, with Margin steady at 3.61%.
  • Loans held for Investment rose 2.6% to USD 2.32 billion, while deposits increased 1.9% to USD 2.96 billion.
  • Nonperforming Assets more than doubled to USD 5.6 million, or 0.17% of assets, tied to one commercial relationship.

Record Earnings

Red River Bancshares, Inc. (NASDAQ:RRBI), Holding Company for Red River Bank, reported third-quarter 2026 net income of USD 12.6 million, or USD 1.90 per diluted share. That compares with USD 11.8 million, or USD 1.78, in the second quarter and USD 10.8 million, or USD 1.63, a year earlier. Return on Assets was 1.48% and Return on Equity was 12.84%. Net income benefited from the USD 916,000 increase in net interest income, and the company described the quarter as including record-high net income and Earnings per share along with increased loans, deposits and assets.

Nine-month net income was USD 36.3 million, or USD 5.49 per share, up 15.8% from USD 31.3 million, or USD 4.65. Return on assets for the period was 1.45% and return on equity was 12.73%.

Balance Sheet Expands

Net interest income rose USD 916,000, or 3.2%, from the second quarter on higher earning asset balances and one additional accrual day. Net interest margin on a fully taxable equivalent basis was 3.61% in both quarters. Total assets were USD 3.37 billion, up 1.7% from June 30, a USD 56.2 million increase from USD 3.31 billion, funded by the USD 56.5 million rise in deposits.

Loans held for investment increased 2.6% as originations and construction fundings exceeded payments and payoffs. Deposits rose 1.9%, primarily from higher commercial account balances. The provision for Loan losses was lower than in the second quarter.

Credit Quality and Capital

Nonperforming assets increased USD 3.0 million, or 113.4%, to USD 5.6 million, or 0.17% of assets, primarily because of a commercial relationship the bank is working to resolve. The company paid a quarterly Cash Dividend of USD 0.25 per share. A 2026 repurchase program authorizes up to USD 10.0 million of stock, and no repurchases occurred through September 30, leaving full capacity available.

Organic Expansion Items to Follow

The bank completed its New Orleans banking center relocation, moving the Baronne Street center and market Leadership to a Poydras Street location on July 20, 2026. Construction continues on a second full-service Acadiana center on Camellia Boulevard in Lafayette, scheduled to open in the first quarter of 2027. On October 22, the bank purchased a former Credit union building on Gause Boulevard East in Slidell, also scheduled to open in the first quarter of 2027. The relocation completed in July left the New Orleans leadership and lenders in a more visible location, following a remodel of part of the ground floor of the Energy Centre Building.

Items to follow include resolution of the commercial credit behind the nonperforming asset increase, margin stability and openings under the organic expansion plan.