RRBI

Red River is a well-run Louisiana community bank having its best year. FY2025 net income hit a record $42.8M (+24.9%) and diluted EPS $6.38 (+28.9%), driven not by leverage or reserve releases but by genuine spread expansion: the 10-K reports net interest income up 18.2% to $105.6M and net interest margin FTE up 42bps to 3.38% on higher loan/securities yields, lower deposit costs, and a better earning-asset mix. Credit quality is exceptional — NPAs of just $3.5M (0.11% of assets) against a 1.04%-of-loans allowance — and ROA of 1.33% is strong for the group. The balance sheet is sturdy: equity grew 14.2% to $365M (~11% of $3.35B assets), so the 8.18x liabilities/equity ratio is normal bank optics, not stress, and $44.8M operating cash flow (+17%) comfortably funds growth.

Management is returning capital while it grows: the dividend was raised 50% to $0.54 in 2025 and a $0.25 quarterly rate was declared in Q1 2026, alongside $11.1M of buybacks (including two privately negotiated blocks) that shrank the share count 3.0%. Loans HFI grew 8.4% to $2.25B and deposits 5.6% to $2.96B, so the franchise is taking share, not just riding rates.