Red River Bancshares Q2 net interest margin rises, expects higher loan growth in H2
RRBI•Outlook and operating drivers
The company expects higher loan growth in the second half of 2026.
Red River Bancshares also projects net interest income and margin FTE to increase slightly in the second half of 2026. It said SBIC income or loss will fluctuate in future quarters.
Net income was impacted by a $1.0 million increase in operating expenses, including higher personnel costs and nonrecurring relocation expenses. The company said nonperforming assets fell 38% due to resolution of problem loans, resulting in additional interest income and expense reimbursements.
Key figures and valuation context
| Metric | Actual |
|---|---|
| Q2 EPS | $1.78 |
| Q2 Net Income | $11.76 million |
| Q2 Net Interest Income | $29 million |
| Q2 ROE | 12.41% |
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "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 $103.00, about 1.3% above its July 29 closing price of $101.68. The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 13 three months ago.
Quarterly results and margin improvement
Red River Bancshares said second-quarter net income and earnings per share fell slightly from the prior quarter but rose year over year.
Net interest income and margin improved, supported by higher loan yields and lower deposit costs. The company said higher loan yields and lower deposit costs drove a 10-basis-point increase in net interest margin to 3.61%.
