Red River Bancshares Q1 net income rises 4.9% to record high

Overview

• US regional bank's Q1 net income rose 4.9% to record high

• Q1 net interest income increased slightly, net interest margin steady at 3.51%

• Company raised quarterly dividend by 66.7% to $0.25 per share

Outlook

• Red River Bancshares expects loan growth to resume during the remainder of 2026

• Company projects net interest income and net interest margin FTE to increase slightly in Q2 2026

• Company says global events are creating economic uncertainty and influencing inflation and interest rates

Result Drivers

• OPERATING EXPENSE REDUCTIONS - Net income benefited from approximately $590,000 of periodic items that reduced operating expenses, including vendor rebates and refunds

• STEADY NET INTEREST MARGIN - Net interest income increased slightly and net interest margin remained consistent at 3.51% as higher average loan balances and stable loan yields offset lower yields on liquid assets

• LOWER OPERATING EXPENSES - Operating expenses fell 5.5% from the prior quarter, driven by lower personnel-related accruals, reduced revenue-based commissions, and vendor rebates

Company press release: ID:nGNX3Df8Nt

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "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 $97.00, about 3.9% above its April 29 closing price of $93.32

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 11 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.