Red River Bancshares reported third‑quarter 2025 results, posting net income of $10.8 million, or $1.63 per diluted share, a record high for the company.
Net interest income rose 4.1% to $26.9 million, while the net interest margin (FTE) increased 7 basis points to 3.43%. Loan income grew $1.1 million, securities income increased $277,000, and interest expense rose $352,000.
The margin improvement follows two Federal Reserve rate cuts on September 17 and October 29, 2025, which lowered funding costs while the bank repriced assets to higher yields. This marks the eighth consecutive quarter of margin improvement.
The company raised its quarterly cash dividend by 25% to $0.15 per share, declared July 24 and payable September 18, and completed a $5.4 million private share repurchase of 100,000 shares.
Loans totaled $2.17 billion and deposits $2.84 billion. Year‑over‑year, Q3 2025 net income rose from $8.8 million in Q3 2024, and EPS increased from $1.27 to $1.63.
Management noted that the bank is expanding its loan and deposit production office in Lafayette, Louisiana, and is constructing a new lending headquarters in Shreveport and a banking center in Lafayette. The bank also participates in the JAM FINTOP Banktech fund, indicating a focus on fintech innovation.
The company expects its net interest margin to shrink in Q4 2025, reflecting the anticipated impact of higher funding costs as the Fed raises rates again.
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