Overview

• Red River Bancshares Q3 net income grows 5.9% from previous quarter

• Company reports record-high net income driven by improved net interest margin

• Company completes significant private stock repurchase, increases dividend by 25%

Outlook

• Company expects net interest income and margin to decrease slightly in Q4 2025

• Red River Bancshares plans to redeploy $33.4 mln in securities cash flows at higher yields

• Company anticipates total loan yield to be slightly lower in Q4 2025

Result Drivers

• NET INTEREST INCOME - Increased by $1.1 mln due to higher loan yields and balances, contributing to record-high net income

• NONRECURRING INCOME - $253,000 from JAM FINTOP partnership sale boosted other income

• LOAN AND DEPOSIT GROWTH - Slight increases in loans and deposits, driven by new loan activity and higher deposit balances

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy."

• Wall Street's median 12-month price target for Red River Bancshares Inc is $69.25, about 4.1% above its October 29 closing price of $66.40

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release: ID:nGNX4kkQxy

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)