Red River Bancshares Reports $34.2 Million Net Income for Fiscal Year 2024

Red River Bancshares, Inc. reported a net income of $34.2 million, or $4.95 per diluted share, for the fiscal year ending December 31, 2024, reflecting a slight decrease of 1.8% from the previous year's net income of $34.9 million, or $4.86 per diluted share. The decline in profitability was attributed to increased operating expenses, a reduction in noninterest income, and a higher provision for credit losses, which were partially offset by an increase in net interest income. The return on assets for 2024 was 1.11%, down from 1.15% in 2023, while the return on equity decreased to 11.02% from 12.44% in the prior year.

Total assets for Red River Bancshares increased by $20.8 million, or 0.7%, to $3.15 billion as of December 31, 2024. Loans held for investment (HFI) rose by $82.2 million, or 4.1%, to $2.08 billion, driven by new loan activity across various markets in Louisiana. Total deposits remained stable at $2.81 billion, consistent with the previous year. The company’s allowance for credit losses (ACL) was $21.7 million, representing 1.05% of loans HFI, slightly down from 1.07% in 2023.

Strategically, Red River Bancshares expanded its banking center network, opening a new full-service banking center in New Orleans during the second quarter of 2024 and planning to build another center in Lafayette. The company also engaged in significant stock repurchase activities, buying back a total of 327,085 shares, or 4.6% of its outstanding shares, which contributed to an increase in earnings per share by $0.14. The board of directors approved a renewal of the stock repurchase program for 2025, allowing for an additional $5 million in share buybacks.

Operationally, the company maintained a diversified loan portfolio, with commercial real estate loans comprising 42.6% of total loans HFI, followed by one-to-four family residential loans at 29.6%. The company reported nonperforming assets (NPAs) of $3.3 million, or 0.10% of total assets, an increase from $2.6 million, or 0.08%, in the previous year. The provision for credit losses increased to $1.2 million in 2024 from $735,000 in 2023, reflecting management's response to potential economic challenges.

Looking ahead, Red River Bancshares anticipates continued growth in net interest income and margin, supported by a favorable interest rate environment and strategic loan repricing. The company plans to leverage its existing market presence while exploring new opportunities for expansion, aiming to enhance its competitive position in the Louisiana banking sector.