Net income for the first quarter of 2026 was $12.0 million, or $1.81 per diluted common share ("EPS"), compared to $11.4 million, or $1.73 EPS, for the fourth quarter of 2025, and $10.4 million, or $1.52 EPS, for the first quarter of 2025. For the first quarter of 2026, the quarterly return on assets was 1.44%, and the quarterly return on equity was 12.95%.
First Quarter 2026 Performance and Operational Highlights
The first quarter of 2026 financial results included record-high quarterly net income and a consistent balance sheet. We increased the quarterly cash dividend paid to shareholders by $0.10 per share, or 66.7%, to $0.25 per share for the first quarter of 2026, compared to $0.15 per share for the prior two quarters.
Net income for the first quarter of 2026 was $12.0 million, up $556,000, or 4.9%, from the prior quarter. Net income for the first quarter was impacted by approximately $590,000 of periodic items that reduced operating expenses. These operating expense reductions benefited EPS by $0.07.
Net interest income increased slightly, and net interest margin fully taxable equivalent ("FTE") was consistent at 3.51% for the first quarter of 2026 and the prior quarter.
Assets remained consistent at $3.35 billion as of March 31, 2026 and December 31, 2025.
Loans held for investment ("HFI") were $2.25 billion as of March 31, 2026 and December 31, 2025. In the first quarter of 2026, new loan originations and construction commitment fundings were offset by payments and payoffs.
Deposits totaled $2.95 billion as of March 31, 2026, down $17.5 million, or 0.6%, from $2.96 billion as of December 31, 2025, primarily due to the seasonal outflow of funds from public entity customers exceeding increased commercial deposits.
In the first quarter of 2026, we paid a quarterly cash dividend of $0.25 per common share, which was a 66.7% increase from $0.15 per common share paid in the third and fourth quarters of 2025.
The 2026 stock repurchase program authorizes us to purchase up to $10.0 million of our outstanding shares of common stock from January 1, 2026 through December 31, 2026. There was no stock repurchase activity in the first quarter of 2026. As of March 31, 2026, the 2026 stock repurchase program had $10.0 million of available capacity.
We continue to implement our organic expansion plan. The following construction projects are in process:
In the Northwest market, there are two projects in process with the goal of relocating personnel and vacating the Market Street location in Shreveport, Louisiana. In May 2026, we plan to relocate our Northwest market leadership and lenders to our newly constructed Shreveport Commercial and Private Banking Loan and Deposit Production Office Building, which is adjacent to our East Kings banking center. We then plan to relocate the Market Street retail banking center to the nearby American Towers building, which will have a more efficient cost structure.
In the New Orleans market, we have leased and are remodeling a portion of the bottom floor of the Energy Centre Building on Poydras Street. Completion is expected in the third quarter of 2026. Once complete, we plan to relocate the Baronne Street retail banking center and the New Orleans market leadership and lenders to this updated, convenient, and visible location.
In the Acadiana market, we held a ground-breaking ceremony in January 2026 for our second full-service banking center in this market, located on Camellia Boulevard in Lafayette, Louisiana. We expect this location to open early in 2027.
In the first quarter of 2026, S&P Global Market Intelligence ranked the Bank 42nd of the top 50 best deposit franchises in 2025 for banks with assets between $3.0 and $10.0 billion.
On April 6, 2026, Jim Nelson was appointed as Market President for the New Orleans market.
Blake Chatelain, President and Chief Executive Officer, stated, "We are pleased to report another strong quarter of financial results to start 2026. As a result of our consistent earnings and strong capital levels, the board of directors approved a 66.7% increase to the quarterly cash dividend for the first quarter of 2026 to $0.25 per share.
"Net income and EPS in the first quarter of 2026 were at record-high levels and benefited from periodic rebates and refunds from vendors. We continue to remain focused on managing the net interest margin FTE, which remained steady at 3.51% between the first quarter of 2026 and the prior quarter.
"In the second half of 2025, we experienced strong loan growth. In the first quarter of 2026, loans were consistent with the prior quarter; however, based on loan pipeline activity, we are expecting loan growth to resume during the remainder of the year. Deposit activity was solid in the first quarter of 2026, and the slight decrease in deposits was a result of the seasonal outflows of public funds that occur every year.
"We remain focused on our organic growth strategy. We are relocating several locations, building a new banking center, and constantly recruiting new bankers to join the Red River Bank team. We are very pleased to announce Jim Nelson as the New Orleans market president. Jim is a dynamic leader with deep ties to the New Orleans market. His experience, vision, and dedication to clients and the community make him the ideal choice to lead the New Orleans market for Red River Bank.
"As we move through 2026, we are well-positioned for continued progress and success. However, the world events in March 2026 remind us of how quickly situations can change. We are watching the situation in Iran and around the world closely. These actions certainly have the potential to impact the environment for all banks, businesses, and individuals. Uncertainty related to these events are impacting the United States and global economies. Increasing oil, gas, and energy prices are impacting inflation and could influence future interest rates. The 2026 forecast is challenging to predict; therefore, we remain positive, yet vigilant, as we monitor our communities and stay close to our customers. As always, we remain committed to serving our customers, growing, and providing steady financial results for our shareholders."
Net Interest Income and Net Interest Margin FTE
Net interest income for the first quarter of 2026 was $28.4 million, slightly higher than the fourth quarter of 2025, despite the first quarter having two fewer accrual days. Net interest margin FTE was 3.51% for the first quarter of 2026, which was consistent with the prior quarter. Average loan balances increased slightly with no change in total loan yield. For the first quarter of 2026, the average rate on new and renewed loans was 6.71%. While the balance of average short-term liquid assets increased, the yield decreased due to the reduction of the target federal funds rate in December. Interest expense was impacted by a 3 basis point ("bp(s)") decrease to the cost of deposits as we lowered selected deposit rates, partially offset by higher average deposit balances.
In the second half of 2025, the Federal Open Market Committee ("FOMC") reduced the federal funds rate by 75 bps, resulting in a range of 3.50%-3.75%, which remained throughout the first quarter of 2026. The market's expectation is that the federal funds range may remain consistent in 2026. During the remainder of 2026, we project $201.4 million of fixed rate loans at 5.87% to mature, which we expect to redeploy into loans with slightly higher rates. We have $463.8 million of floating rate loans at 6.16%, which we expect to remain at a consistent rate. We also expect to receive $90.9 million in securities cash flows at 3.66%, which we plan to redeploy into securities at higher yields. We project $515.0 million in time deposits at 3.50% to mature, with the opportunity to reprice slightly lower. Depending on balance sheet activity and interest rate competition, we expect net interest income and net interest margin FTE to increase slightly in the second quarter of 2026.
Noninterest Income
Noninterest income totaled $4.5 million for the first quarter of 2026, down $416,000, or 8.4%, from the previous quarter.
Other income was $83,000 for the first quarter of 2026, down $106,000, or 56.1%, from the previous quarter. The fourth quarter of 2025 included $127,000 of nonrecurring JAM FINTOP Banktech, L.P. fund partnership income, following the sale of an investment and subsequent distribution. Similar income was not recognized in the first quarter of 2026.
The Small Business Investment Company ("SBIC") partnerships reported a loss of $105,000 in the first quarter of 2026, compared to a loss of $197,000 in the previous quarter. These losses were mainly due to fund value adjustments as an SBIC fund continues its wind-down phase. We expect SBIC income to fluctuate in future quarters.
Operating Expenses
Operating expenses totaled $17.3 million for the first quarter of 2026, down $1.0 million, or 5.5%, from the previous quarter.
Personnel expenses totaled $10.5 million for the first quarter of 2026, down $437,000, or 4.0%, from the previous quarter. This decrease was primarily due to lower personnel-related accruals and lower revenue-based commissions. We had 375 total employees as of March 31, 2026 and December 31, 2025.
Data processing expenses totaled $377,000 for the first quarter of 2026, down $336,000, or 47.1%, from the previous quarter. This decrease was mainly attributable to receipt of a $389,000 periodic refund from our data processing center in the first quarter of 2026.
Loan and deposit expenses totaled $103,000 for the first quarter of 2026, down $212,000, or 67.3%, from the previous quarter. This decrease was primarily attributable to receipt of a $201,000 negotiated, variable rebate from a vendor in the first quarter of 2026.
Other taxes totaled $560,000 for the first quarter of 2026, down $23,000, or 3.9%, from the previous quarter. In 2025, Louisiana corporate income tax rates were lowered. In order for financial institutions to be included in this benefit, the State of Louisiana bank stock tax calculation was adjusted effective 2026, which resulted in other taxes being lower in the first quarter of 2026.
Loans
Loans HFI were $2.25 billion as of March 31, 2026 and December 31, 2025. In the first quarter of 2026, new loan originations and construction commitment fundings were offset by payments and payoffs. As of March 31, 2026, we had $111.8 million of unfunded construction loan commitments, which we expect to fund over time.
Loans HFI by Category
March 31, 2026
December 31, 2025
Change from December 31, 2025 to March 31, 2026
(dollars in thousands)
Amount
Percent
Amount
Percent
$ Change
% Change
Real estate:
Commercial real estate
$
910,965
40.4
%
$
920,294
40.9
%
$
(9,329
)
(1.0
%)
One-to-four family residential
632,554
28.1
%
628,762
28.0
%
3,792
0.6
%
Construction and development
240,686
10.7
%
221,214
9.8
%
19,472
8.8
%
Commercial and industrial
391,611
17.4
%
392,824
17.5
%
(1,213
)
(0.3
%)
Tax-exempt
52,779
2.3
%
57,541
2.6
%
(4,762
)
(8.3
%)
Consumer
25,951
1.1
%
28,034
1.2
%
(2,083
)
(7.4
%)
Total loans HFI
$
2,254,546
100.0
%
$
2,248,669
100.0
%
$
5,877
0.3
%
Asset Quality and Allowance for Credit Losses
Nonperforming assets ("NPA(s)") totaled $4.3 million as of March 31, 2026, an increase of $728,000, or 20.6%, from December 31, 2025, primarily due to an increase in nonaccrual loans and other real estate owned, partially offset by a decrease in past due loans. The ratio of NPAs to assets was 0.13% and 0.11% as of March 31, 2026 and December 31, 2025, respectively.
The provision for credit losses was $750,000 for the first quarter of 2026 and the prior quarter. As of March 31, 2026, the ACL was $24.1 million. The ratio of ACL to loans HFI was 1.07% as of March 31, 2026 and 1.04% as of December 31, 2025. The net charge-offs to average loans ratio was 0.00% for the first quarter of 2026 and 0.01% for the fourth quarter of 2025.
Deposits
As of March 31, 2026, deposits were $2.95 billion, a decrease of $17.5 million, or 0.6%, compared to December 31, 2025. The decrease in deposits for the first quarter of 2026 was primarily due to the seasonal outflow of funds from public entity customers exceeding increased commercial deposits.
Deposits by Account Type
March 31, 2026
December 31, 2025
Change from December 31, 2025 to March 31, 2026
(dollars in thousands)
Balance
% of Total
Balance
% of Total
$ Change
% Change
Noninterest-bearing demand deposits
$
916,413
31.1
%
$
913,868
30.8
%
$
2,545
0.3
%
Interest-bearing deposits:
Interest-bearing demand deposits
189,993
6.4
%
198,724
6.7
%
(8,731
)
(4.4
%)
NOW accounts
465,146
15.8
%
490,376
16.5
%
(25,230
)
(5.1
%)
Money market accounts
590,107
20.0
%
580,949
19.6
%
9,158
1.6
%
Savings accounts
174,393
5.9
%
168,889
5.7
%
5,504
3.3
%
Time deposits less than or equal to $250,000
405,281
13.8
%
407,539
13.8
%
(2,258
)
(0.6
%)
Time deposits greater than $250,000
204,602
7.0
%
203,067
6.9
%
1,535
0.8
%
Total interest-bearing deposits
2,029,522
68.9
%
2,049,544
69.2
%
(20,022
)
(1.0
%)
Total deposits
$
2,945,935
100.0
%
$
2,963,412
100.0
%
$
(17,477
)
(0.6
%)
Deposits by Customer Type
March 31, 2026
December 31, 2025
Change from December 31, 2025 to March 31, 2026
(dollars in thousands)
Balance
% of Total
Balance
% of Total
$ Change
% Change
Consumer
$
1,409,126
47.8
%
$
1,397,775
47.2
%
$
11,351
0.8
%
Commercial
1,296,580
44.0
%
1,270,069
42.8
%
26,511
2.1
%
Public
240,229
8.2
%
295,568
10.0
%
(55,339
)
(18.7
%)
Total deposits
$
2,945,935
100.0
%
$
2,963,412
100.0
%
$
(17,477
)
(0.6
%)
Stockholders' Equity
Total stockholders' equity as of March 31, 2026, was $373.3 million, compared to $365.2 million as of December 31, 2025. The $8.2 million, or 2.2%, increase in stockholders' equity during the first quarter of 2026 was attributable to $12.0 million of net income and $160,000 of stock compensation, partially offset by a $2.3 million, net of tax, market adjustment to accumulated other comprehensive loss related to securities and $1.6 million in cash dividends related to a $0.25 per share cash dividend that we paid on March 19, 2026.
Non-GAAP Disclosure
Our accounting and reporting policies conform to United States generally accepted accounting principles ("GAAP") and the prevailing practices in the banking industry. Certain financial measures used by management to evaluate our operating performance are discussed as supplemental non-GAAP performance measures. In accordance with the Securities and Exchange Commission's ("SEC") rules, we classify a financial measure as being a non-GAAP financial measure if that financial measure excludes or includes amounts, or is subject to adjustments that have the effect of excluding or including amounts, that are included or excluded, as the case may be, in the most directly comparable measure calculated and presented in accordance with GAAP as in effect from time to time in the U.S.
Management and the board of directors review total tangible common equity, total realized common equity, total tangible assets, tangible book value per share, realized book value per share, and tangible common equity to tangible assets as part of managing operating performance. However, these non-GAAP financial measures should not be considered in isolation or as a substitute for the most directly comparable or other financial measures calculated in accordance with GAAP. Moreover, the manner we calculate the non-GAAP financial measures that are discussed may differ from that of other companies' reporting measures with similar names. It is important to understand how such other banking organizations calculate and name their financial measures similar to the non-GAAP financial measures discussed by us when comparing such non-GAAP financial measures.
A reconciliation of non-GAAP financial measures to the comparable GAAP financial measures is included within the following financial statement tables.
About Red River Bancshares, Inc.
Red River Bancshares, Inc. is the bank holding company for Red River Bank, a Louisiana state-chartered bank established in 1999 that provides a fully integrated suite of banking products and services tailored to the needs of our commercial and retail customers. Red River Bank operates from a network of 28 banking centers throughout Louisiana and two combined loan and deposit production offices, one each in New Orleans, Louisiana and Lafayette, Louisiana. Banking centers are located in the following Louisiana markets: Central, which includes the Alexandria metropolitan statistical area ("MSA"); Northwest, which includes the Shreveport-Bossier City MSA; Capital, which includes the Baton Rouge MSA; Southwest, which includes the Lake Charles MSA; the Northshore, which includes the Slidell-Mandeville-Covington MSA; Acadiana, which includes the Lafayette MSA; and New Orleans, which includes the New Orleans-Metairie MSA.
Forward-Looking Statements
Statements in this news release 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 Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements often include words such as "believe," "expect," "anticipate," "intend," "plan," "estimate," "project," "outlook," or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could," or "may." The forward-looking statements in this news release are based on current information and on assumptions that we make about future events and circumstances that are subject to a number of risks and uncertainties that are often difficult to predict and beyond our control. As a result of those risks and uncertainties, our actual financial results in the future could differ, possibly materially, from those expressed in or implied by the forward-looking statements contained in this news release and could cause us to make changes to our future plans. Additional information regarding these and other risks and uncertainties to which our business and future financial performance are subject is contained in the section titled "Risk Factors" in our most recent Annual Report on Form 10-K and any subsequent quarterly reports on Form 10-Q, and in other documents that we file with the SEC from time to time. In addition, our actual financial results in the future may differ from those currently expected due to additional risks and uncertainties of which we are not currently aware or which we do not currently view as, but in the future may become, material to our business or operating results. Due to these and other possible uncertainties and risks, readers are cautioned not to place undue reliance on the forward-looking statements contained in this news release or to make predictions based solely on historical financial performance. Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law. All forward-looking statements, express or implied, included in this news release are qualified in their entirety by this cautionary statement.
Contact:Isabel V. Carriere, CPA, CGMASenior Executive Vice President, Chief Financial Officer, and Assistant Corporate Secretary318-561-4023[email protected]
FINANCIAL HIGHLIGHTS (UNAUDITED)
As of and for theThree Months Ended
(dollars in thousands, except per share data)
March 31,2026
December 31,2025
March 31,2025
Net Income
$
11,971
$
11,415
$
10,352
Per Common Share Data:
Earnings per share, basic
$
1.82
$
1.74
$
1.53
Earnings per share, diluted
$
1.81
$
1.73
$
1.52
Book value per share
$
56.76
$
55.52
$
49.18
Tangible book value per share(1)
$
56.53
$
55.29
$
48.95
Realized book value per share(1)
$
63.70
$
62.11
$
57.49
Cash dividends per share
$
0.25
$
0.15
$
0.12
Shares outstanding
6,577,186
6,576,609
6,777,657
Weighted average shares outstanding, basic
6,576,994
6,576,609
6,777,332
Weighted average shares outstanding, diluted
6,609,208
6,604,082
6,796,707
Summary Performance Ratios:
Return on average assets
1.44
%
1.38
%
1.32
%
Return on average equity
12.95
%
12.60
%
12.85
%
Net interest margin
3.47
%
3.46
%
3.17
%
Net interest margin FTE
3.51
%
3.51
%
3.22
%
Efficiency ratio
52.37
%
54.99
%
55.51
%
Loans HFI to deposits ratio
76.53
%
75.88
%
74.84
%
Noninterest-bearing deposits to deposits ratio
31.11
%
30.84
%
32.08
%
Noninterest income to average assets
0.55
%
0.60
%
0.67
%
Operating expense to average assets
2.08
%
2.20
%
2.12
%
Summary Credit Quality Ratios:
NPAs to assets
0.13
%
0.11
%
0.16
%
Nonperforming loans to loans HFI
0.18
%
0.16
%
0.24
%
ACL to loans HFI
1.07
%
1.04
%
1.03
%
Net charge-offs to average loans
0.00
%
0.01
%
0.02
%
Capital Ratios:
Stockholders' equity to assets
11.16
%
10.90
%
