Red River Bancshares (RRBI) Q3 2025 earnings summary

Executive summary

• Net income for Q3 2025 reached $10.8 million ($1.63 diluted EPS), up 5.9% sequentially and 23.4% year-over-year, driven by higher net interest income and nonrecurring partnership income; nine-month net income was $31.3 million ($4.65 EPS), up 25.8% year-over-year.

• Return on assets was 1.34% and return on equity was 12.62% for Q3 2025, both improved from the prior quarter and year-over-year.

• Net interest margin FTE increased for the eighth consecutive quarter to 3.43% in Q3 2025.

• Loans, deposits, and total assets all increased slightly during the quarter, with a notable private stock repurchase and a 25% increase in the quarterly cash dividend.

• Opened a new loan and deposit production office in Lafayette, Louisiana.

Financial highlights

• Net interest income for Q3 2025 was $26.9 million, up $1.1 million (4.1%) from Q2 2025; net interest margin FTE rose to 3.43%.

• Noninterest income for Q3 2025 was $5.0 million, up 6.5% sequentially, with a $253,000 nonrecurring gain from a partnership investment.

• Operating expenses for Q3 2025 were $17.9 million, up 3.0% sequentially, mainly due to higher personnel and occupancy costs.

• Loans HFI grew 1.6% to $2.17 billion; deposits increased 1.0% to $2.84 billion from Q2 2025.

• Book value per share rose to $53.42; tangible book value per share was $53.18 as of September 30, 2025.

Outlook and guidance

• Management expects net interest income and margin FTE to decrease slightly in Q4 2025 due to anticipated lower loan yields and deposit repricing as the federal funds rate declines.

• $33.4 million in securities cash flows at 3.72% are expected to be redeployed at higher yields in Q4 2025.

• Loan demand is improving as economic uncertainty diminishes, with optimism for Louisiana’s economic outlook.