Red River Bancshares, Inc. reported its financial results for the third quarter and nine months ended September 30, 2024, showing a mixed performance compared to the previous fiscal period. Total assets decreased by $27.1 million (0.9%) to $3.10 billion, while total deposits fell by $54.8 million (2.0%) to $2.75 billion, primarily due to seasonal outflows and income tax payments. Cash and cash equivalents also saw a significant decline, dropping by $72.8 million (23.8%) to $232.6 million.

Loans held for investment (HFI) increased by $63.2 million (3.2%) to $2.06 billion, driven by new loan activity across various markets in Louisiana. The composition of loans HFI included $875.6 million in commercial real estate and $616.5 million in one-to-four family residential loans. The allowance for credit losses (ACL) rose to $21.8 million, or 1.06% of loans HFI, reflecting an increase in provisions for credit losses due to economic factors and loan growth.

Net income for the third quarter of 2024 was $8.8 million, or $1.27 diluted earnings per share, marking a 9.6% increase from the previous quarter. However, net income for the nine months ended September 30, 2024, was $24.9 million, down from $26.6 million in the same period of 2023. The decrease in net income for the nine-month period was attributed to higher operating expenses and increased provisions for credit losses.

Total interest and dividend income for the third quarter increased to $34.9 million, up from $30.3 million in the same quarter of 2023. Net interest income rose to $22.5 million, reflecting a net interest margin of 2.93%. The increase in net interest income was primarily due to higher rates on new and renewed loans, despite a rise in interest expenses driven by increased deposit rates.

Operating expenses for the third quarter totaled $16.8 million, a slight increase from the previous quarter, with personnel and technology expenses contributing to the rise. The company reported a total stockholders' equity of $324.3 million, an increase of $20.5 million (6.7%) from December 31, 2023, supported by retained earnings and stock repurchases.

In terms of strategic developments, Red River Bancshares continued its stock repurchase program, with $1.2 million remaining available for repurchases as of September 30, 2024. The company remains compliant with Basel III capital requirements, with a total risk-based capital ratio of 18.07%.