Red River's Third-Quarter Profit Reverses a Dip

The Tip Desk · November 10, 2026 · 4 min read

Net income reached a record $12.6 million, or $1.90 a share, as net interest income rose $916,000 and loans and deposits rose in the third quarter after loans were nearly flat and deposits declined in the second quarter.

Red River Bancshares (RRBI), the holding company for Louisiana state-chartered Red River Bank, reported record third-quarter net income of $12.6 million, or $1.90 a share, after a 1.7% dip in the second quarter.

The Louisiana community bank said the profit increase of $800,000, or 6.8%, from $11.8 million in the second quarter came with higher loans, deposits and assets. Return on assets was 1.48% and return on equity 12.84%.

Net interest income was $29.9 million, up $916,000, or 3.2%, mainly from higher earning-asset balances and one extra accrual day, after a $563,000, or 2.0%, increase in the prior quarter. Net interest margin FTE held at 3.61%, matching the second quarter after a 10 bps expansion from 3.51% in the first quarter. Interest income on loans rose $1.0 million on higher average loan balances and yields; the average rate on new and renewed loans was 6.47%. Interest expense rose $558,000 as the bank adjusted selected deposit rates amid competition and higher interest-bearing transaction balances.

Loans held for investment were $2.32 billion as of September 30, 2026, up $59.5 million, or 2.6%, reversing a near-flat second-quarter move from $2.25 billion to $2.26 billion. Commercial real estate loans rose $39.7 million, or 4.3%, to $953.7 million, and commercial and industrial loans rose $24.1 million, or 6.0%, to $424.1 million. Construction and development loans fell $10.4 million, or 4.4%, to $223.8 million. The company said new originations and construction commitment fundings exceeded payments and payoffs.

Deposits were $2.96 billion, up $56.5 million, or 1.9%, reversing a $40.9 million, or 1.4%, second-quarter decline the company had attributed to seasonal tax payments and lawyer trust-account timing. Commercial deposits rose $80.0 million, or 6.3%, to $1.35 billion. Consumer deposits fell $11.7 million, or 0.8%, and public deposits fell $11.8 million, or 5.1%. Noninterest-bearing demand deposits were $915.6 million, or 30.9% of deposits. Assets were $3.37 billion.

Nonperforming assets increased $3.0 million, or 113.4%, to $5.6 million, or 0.17% of assets, after a $1.6 million, or 38.3%, decline to $2.6 million in the second quarter. The company said the increase was primarily due to a commercial relationship it is actively working to resolve. The provision for credit losses fell to $500,000 from $750,000. The allowance for credit losses was $25.1 million, or 1.08% of loans HFI. Net charge-offs to average loans were 0.01%.

Noninterest income was $4.9 million, up $186,000, or 3.9%. SBIC partnerships reported a $112,000 gain versus a $291,000 loss in the prior quarter. Mortgage loan income fell $230,000, or 24.8%, to $698,000 on higher mortgage rates. Operating expenses were $18.7 million, up $408,000, or 2.2%. Personnel expenses were $10.9 million on higher headcount of 390 employees versus 381 and higher accruals. The efficiency ratio improved to 53.71% from 54.25%.

The company paid a $0.25 a share dividend and had no buybacks, leaving the full $10.0 million 2026 repurchase authorization unused. Common equity Tier 1 capital to risk-weighted assets was 17.68%.

In September the Federal Open Market Committee raised the federal funds target 25 bps to a 3.75%-4.00% range. The company said it projects $93.8 million of fixed-rate loans at 5.85% to mature in the fourth quarter, which it expects to redeploy at higher rates, and $529.5 million of floating-rate loans at 6.24% to reprice slightly higher. It also expects $190.7 million in time deposits at 3.37% to mature and renew at higher rates. Depending on balance-sheet activity, rates and competition, it expects net interest income and net interest margin FTE to increase slightly in the fourth quarter of 2026.