Red River Bancshares reports second-quarter net income of $11.8 million
Net interest margin rose 10 basis points to 3.61% as the company benefited from higher loan yields and lower deposit costs.
Red River Bancshares (RRBI) reported net income of $11.8 million for the second quarter of 2026. The result represented a 15.4% increase compared to the second quarter of 2025, though it was a sequential decrease of $208,000 from the first quarter of 2026.
The bank saw a shift in its margin profile during the period. Net interest margin increased 10 basis points to 3.61% from 3.51% in the prior quarter, due to higher loan yields and a lower cost of deposits. Net interest income rose 2.0% sequentially to $29.0 million, aided by one additional accrual day.
Asset growth slowed as total assets decreased 1.1% to $3.31 billion as of June 30, 2026. This decline was primarily driven by a $40.9 million drop in total deposits, which fell to $2.91 billion. The deposit fluctuation was due to seasonal tax payments and changes in lawyer trust accounts.
Credit quality improved during the quarter. Nonperforming assets decreased 38.3% to $2.6 million. This reduction lowered the nonperforming asset-to-assets ratio to 0.08% from 0.13% in the first quarter. Loans held for investment remained relatively flat, ending the period at $2.26 billion.
Operating expenses rose 6.0% sequentially to $18.3 million. The increase was driven by a 101.1% rise in data processing expenses, which grew to $758,000 from $377,000, and a 1.8% increase in personnel costs.
Noninterest income rose 4.5% to $4.7 million. Growth was supported by a 53.4% increase in mortgage loan income to $928,000 and a 16.5% increase in debit card income to $1.1 million. However, SBIC partnership losses widened to $291,000 from a loss of $105,000 in the previous quarter.
Red River Bancshares was added to the State Street SPDR S&P Regional Banking ETF in June 2026.