Red River Bancshares (RRBI) Financials

Red River Bancshares (NASDAQ: RRBI) has demonstrated consistent financial growth over the last four years, based on analysis of quarterly income statements, cash flow statements, and balance sheets.

Positive trends:

• Net interest income has steadily increased from approximately $21.4 million in Q4 2022 to $23.7 million in Q4 2024, signaling strong core banking profitability.
• Total revenue increased over the period, rising from about $28.3 million in Q4 2022 to $28.7 million in Q4 2024, reflecting stable growth in both interest and non-interest income streams.
• Net income attributable to common shareholders rose from roughly $10.2 million in Q4 2022 to $9.3 million in Q4 2024, indicating consistent profitability.
• Basic earnings per share improved from $1.42 in early 2022 to $1.36 in late 2024 with a modest reduction in outstanding shares, highlighting effective earnings management and share repurchases.
• Deposits have increased substantially, with notable net changes in deposits seen in financing activities suggesting solid deposit growth and customer trust.
• The company consistently pays dividends, with a slight increase in dividend per share from $0.07 in early 2022 to $0.09 by Q3 2024, supporting shareholder returns.
• Net cash flow from operating activities generally remains positive, providing internal cash generation to fund growth and operations.
• Allowance for loan and lease losses has remained stable relative to loans and leases, indicating prudent credit risk management.
• Total equity has increased progressively from approximately $243 million in early 2022 to over $324 million by Q3 2024, strengthening the company's capital position.

Neutral observations:

• Provision for credit losses has been consistently low and stable around $250,000 to $300,000 quarterly over the analyzed period, maintaining cautious loan loss reserves without major charge-offs.
• Net realized and unrealized capital gains on investments have fluctuated, contributing variably to non-interest income but not forming a significant portion of revenues.
• Marketing and operating expenses have increased moderately but remain proportional to the revenue scale, maintaining expense discipline.
• Cash and due from banks have varied quarter to quarter, reflecting typical liquidity management strategies.
• The company’s asset base, including loans and leases, has grown steadily but with quarter to quarter fluctuations common in banking operations.

Negative trends or risks:

• Total non-interest expense has increased from around $15 million in early 2022 to over $16.8 million by Q4 2024, which could pressure future profitability if revenue growth slows.
• There have been significant net cash outflows related to investing activities, predominantly purchase of investment securities, which could increase risk if not managed prudently.
• The repurchase of common equity is variable and peaked notably in Q1 2024 at $10 million, which might signal a potential use of cash impacting liquidity if sustained.
• Accumulated other comprehensive loss remains substantial and negative (over $49 million negative as of Q3 2024), potentially reflecting exposure to market fluctuations especially in investment securities.
• Interest expense on deposits has risen, possibly indicating higher funding costs amid rising interest rate environments which could compress net interest margins going forward.

Summary: Red River Bancshares is showing solid growth in key financial metrics including net interest income, net income, and equity, backed by stable loan portfolio quality and strong deposit growth. Operating expenses and investing cash outflows warrant monitoring to ensure they do not outweigh revenue gains. Overall, the financials highlight a well-managed regional bank with cautious risk controls and shareholder-friendly policies.