Executive Summary

Q1 2019 delivered solid operating results with net income of $5.696M and diluted EPS of $0.85, up 8.9% and 10.4% year over year, respectively, driven primarily by higher net interest income .
Sequentially, net income decreased 7.4% versus Q4 2018, due primarily to a one-time $320,000 expense refund in Q4 that elevated prior-quarter earnings; underlying performance remained resilient with stable loan and deposit growth and expanded NIM .
Balance sheet growth continued: assets reached $1.922B (+3.3% QoQ), deposits rose to $1.691B (+$45.6M QoQ, partially due to a short-term escrow deposit from a single customer), and loans increased to $1.351B, maintaining a 79.91% loan-to-deposit ratio .
Strategic catalysts: completed IPO on May 7, 2019 (663,320 shares at $45.00; ~$26.8M net proceeds) to support growth and repay junior subordinated debentures; entered the Northshore (St. Tammany Parish) market with a Covington presence and planned full-service banking center .
No formal guidance or earnings call transcript was available; S&P Global consensus estimates were unavailable for comparison this quarter due to data access constraints .

What Went Well and What Went Wrong

What Went Well

EPS and net income improved year over year (EPS $0.85 vs $0.77; net income $5.696M vs $5.231M) primarily on increased net interest income, reflecting core franchise strength and favorable NIM expansion .
Net interest margin (FTE) expanded to 3.50% from 3.37% YoY, and asset quality improved with nonperforming assets to assets falling to 0.34% from 0.57% YoY .
Management advanced strategic growth: “Our initial public offering was completed on May 7, 2019... resulting in net proceeds of approximately $26.8 million... to support growth of Red River Bank and for repayment of our junior subordinated debentures” and opened a Covington loan production office with plan for a full-service banking center, highlighting confidence in Northshore expansion .

What Went Wrong

Sequential decline in net income (−7.4% QoQ) was driven by the absence of a Q4 one-time $320,000 refund from the core processing provider, creating a tough comparison; underlying operations remained steady .
Efficiency ratio worsened sequentially to 59.52% from 57.12%, and noninterest income declined QoQ ($3,248K vs $3,730K), indicating near-term cost/income pressure .
Deposit growth benefited from a short-term escrow deposit from a single customer, suggesting some non-recurring support to end-of-period deposit levels and L/D dynamics .

Financial Results

Income Statement and EPS (USD Thousands unless noted)

Metric	Q1 2018	Q4 2018	Q1 2019
Net interest income ($)	$13,910	$15,465	$15,452
Noninterest income ($)	$3,116	$3,730	$3,248
Operating expense ($)	$10,307	$10,986	$11,158
Net income ($)	$5,231	$6,151	$5,696
Diluted EPS ($)	$0.77	$0.91	$0.85

Profitability and Margins

Metric	Q1 2018	Q4 2018	Q1 2019
Return on average assets (%)	1.22%	1.33%	1.24%
Return on average equity (%)	11.88%	12.77%	11.69%
Net interest margin (FTE, %)	3.37%	3.46%	3.50%
Efficiency ratio (%)	60.39%	57.12%	59.52%
Net charge-off (recovery) ratio (%)	0.00%	0.02%	0.00%

Balance Sheet, Capital and Shareholders

Metric	Q1 2018	Q4 2018	Q1 2019
Loans ($)	$1,279,163	$1,331,342	$1,351,391
Investment securities ($)	$332,633	$311,698	$323,222
Assets ($)	$1,762,590	$1,860,588	$1,922,118
Deposits ($)	$1,560,333	$1,645,583	$1,691,134
Stockholders’ equity ($)	$179,094	$193,703	$202,184
Loan-to-deposit ratio (%)	81.98%	80.90%	79.91%
Nonperforming assets to assets (%)	0.57%	0.38%	0.34%
Allowance for loan losses to loans (%)	0.88%	0.94%	0.97%
Total risk-based capital ratio (%)	15.99%	16.55%	16.52%
Equity to assets ratio (%)	10.16%	10.41%	10.52%
Book value per share ($)	$26.64	$29.23	$30.46
Shares outstanding (EOP) (#)	6,723,598	6,627,358	6,636,926
Cash dividends per share ($)	$0.15	$0.00	$0.20

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Company guidance	FY/Q1 2019	None provided	None provided	Maintained (no formal guidance)

Note: Management indicated future quarterly updates will transition to press release format post-IPO; no quantitative guidance ranges were issued for revenue, margins, OpEx, tax, OI&E, segments, or dividends beyond the disclosed Q1 cash dividend per share .

Earnings Call Themes & Trends

No Q1 2019 earnings call transcript was found in the document catalog; analysis relies on management’s shareholder letter and 8-K exhibit .

Topic	Previous Mentions (Q-2 and Q-1)	Current Period	Trend
IPO/listing and capital use	Not available (pre-IPO disclosures limited)	IPO completed May 7; ~$26.8M net proceeds to support growth and repay junior subordinated debentures	New catalyst; enhances liquidity and growth funding
Organic expansion – Northshore market	Not available	Entered St. Tammany Parish; Covington LPO opened; renovations for full-service center; leadership hires	Expansion underway; strategic footprint widening
Deposits – escrow impact	Not available	QoQ deposits +$45.6M; significant portion from short-term escrow deposit (single customer)	Near-term boost; watch normalization
Expense/one-time items	Not available	Q4 included one-time $320K refund; tough sequential comp in Q1	Non-recurring; underlying Opex higher
Asset quality	Not available	NPAs/assets improved to 0.34%; NCO ratio 0.00%	Stable/positive credit metrics

Management Commentary

“Our initial public offering was completed on May 7, 2019, with the Company selling 663,320 shares of stock at $45.00 per share, resulting in net proceeds of approximately $26.8 million… We intend to use the proceeds for general corporate purposes, including to support growth of Red River Bank and for repayment of our junior subordinated debentures.”
“Net income for the first quarter of 2019 was $5.7 million, 7.4% lower than the net income for the fourth quarter of 2018… The decrease… was due primarily to a one-time $320,000 refund of expenses that we received from our core processing provider.”
“Deposits for the first quarter of 2019 increased by $45.6 million, with a significant portion… attributable to a short-term escrow deposit received by a single customer.”
“As part of our organic expansion plan, during the first quarter of 2019, we entered the St. Tammany Parish area… opening a loan production office in downtown Covington, Louisiana… we plan to… open a full-service banking center at this key location.”
“Red River Bank is ‘A BANK MADE IN LOUISIANA, FOR LOUISIANA’.”

Q&A Highlights

No Q1 2019 earnings call transcript was available; therefore, no Q&A highlights or guidance clarifications could be extracted .

Estimates Context

S&P Global consensus estimates for Q1 2019 EPS and revenue were unavailable due to data access limits during retrieval, preventing an estimates vs. actual comparison this quarter. As a result, we cannot characterize beats/misses relative to Wall Street consensus for EPS or total revenue/fee income mix this period .
Given YoY EPS growth and NIM expansion, estimates for net interest income and EPS may modestly adjust upward in future periods, but any deposit normalization (post-escrow) and higher operating expenses could temper revisions; formal consensus data is needed to quantify these potential moves .

Key Takeaways for Investors

Underlying franchise strength: YoY EPS and net income growth, NIM expansion to 3.50%, and improved asset quality show healthy core momentum despite a tougher QoQ comp from a Q4 one-time item .
Balance sheet growth remains broad-based: loans +$20.0M QoQ, deposits +$45.6M QoQ (partially non-recurring escrow), assets +$61.5M QoQ; monitor deposit normalization and L/D ratio near 80% .
Cost discipline is a watch item: efficiency ratio rose to 59.52% and noninterest income fell sequentially; sustaining margin expansion while managing expenses is key to near-term EPS trajectory .
Strong capital supports growth: total risk-based capital 16.52% and equity/assets 10.52% post-IPO provide capacity for organic expansion and potential balance sheet initiatives .
Strategic catalysts: Northshore market entry (Covington) and planned full-service branch deepen regional presence; IPO enhances liquidity and investor reach, likely improving future access to capital markets .
No formal guidance or call transcript this quarter; expect future updates in press release format via new Investor Relations site, aiding transparency as the company scales public-company communications .

Sources: Q1 2019 8‑K and Exhibit 99.1 First Quarter 2019 Update (published June 13, 2019) .

RED RIVER BANCSHARES INC (RRBI)·Q1 2019 Earnings Summary