Red River Bancshares Inc (RRBI) Reports Q3 2023 Earnings: Net Income Down by 10.6%

GuruFocus Research
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In this article:

  • Net income for Q3 2023 was $8.0 million, a decrease of 10.6% compared to Q2 2023.

  • Deposits increased by 3.6% to $2.76 billion compared to the previous quarter.

  • Assets were $3.07 billion, a 1.3% increase from Q2 2023.

  • RRBI repurchased 23,561 shares of its common stock at an aggregate cost of $1.2 million in Q3 2023.

Red River Bancshares Inc (NASDAQ:RRBI) released its unaudited financial results for the third quarter of 2023 on October 30, 2023. The report shows a decrease in net income and earnings per share (EPS), despite an increase in deposits and assets.

Financial Performance

RRBI reported a net income of $8.0 million for Q3 2023, a decrease of 10.6% compared to $9.0 million in Q2 2023. The EPS for Q3 2023 was $1.12, down from $1.25 in the previous quarter. The net income for the nine months ended September 30, 2023, was $26.6 million, a slight decrease of 0.5% compared to the same period in 2022.

Deposits and Assets

As of September 30, 2023, RRBI's assets were $3.07 billion, a 1.3% increase from June 30, 2023. This increase was primarily due to a $95.7 million increase in deposits, partially offset by the payoff of $60.0 million of Federal Home Loan Bank advances. Deposits totaled $2.76 billion, a 3.6% increase compared to the previous quarter.

Stock Repurchase Activity

RRBI increased its stock repurchase activity in Q3 2023. The company repurchased 23,561 shares of its common stock at an aggregate cost of $1.2 million, leaving $2.9 million remaining that can be repurchased under the 2023 stock repurchase program.

Commentary

Blake Chatelain, President and Chief Executive Officer stated, In the third quarter of 2023, we had core deposit growth, improved liquidity, and higher capital ratios. As expected, net income was lower than the prior quarter due to the impact of the interest rate environment on net interest income."

Future Outlook

RRBI is currently constructing a new banking center in New Orleans, Louisiana, which is projected to open for business in the third quarter of 2024. The company expects the net interest margin to remain fairly consistent for the fourth quarter of 2023, depending on balance sheet activity, movement in interest rates, deposit rate pressure, and deposit mix shift.

Explore the complete 8-K earnings release (here) from Red River Bancshares Inc for further details.

This article first appeared on GuruFocus.

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