Red River Bancshares (RRBI) investor relations material

Executive summary

• Net income for Q2 2025 was $10.2 million ($1.51 EPS), down 1.5% sequentially but up 27.7% year-over-year; six-month net income rose 27% to $20.5 million ($3.03 EPS) year-over-year.

• Return on assets was 1.30% and return on equity was 12.27% for Q2 2025.

• Net interest margin FTE increased for the seventh consecutive quarter to 3.36% in Q2 2025.

• Completed significant private and public stock repurchases and revised the credit card program.

• A 25% increase in the quarterly dividend to $0.15 per share was announced for Q3 2025.

Financial highlights

• Net interest income for Q2 2025 was $25.8 million, up 4.9% sequentially; net interest margin FTE rose to 3.36%.

• Noninterest income for Q2 2025 was $4.7 million, down 10.5% sequentially, mainly due to lower brokerage and SBIC income.

• Operating expenses for Q2 2025 were $17.4 million, up 4.7% sequentially, driven by higher data processing, loan/deposit, and personnel expenses.

• Assets totaled $3.17 billion as of June 30, 2025; loans grew to $2.14 billion, and deposits were $2.81 billion.

• NPAs dropped to $1.3 million (0.04% of assets); ACL to loans HFI was 1.04%.

Outlook and guidance

• Management expects net interest income and margin to increase slightly in the second half of 2025, with stable deposit costs and redeployment of maturing assets into higher-yielding instruments.

• The FOMC is expected to lower the federal funds rate in the second half of 2025, which may impact asset yields and funding costs.

• Approximately $50 million in securities and $112.7 million in fixed-rate loans are expected to mature in H2 2025, with redeployment into higher-yielding assets.

• Board declared a Q3 2025 dividend of $0.15 per share, a 25% increase from prior quarters.