Red River Bancshares Q2 net interest margin rises,expects higher loan growth in H2

Red River Bancshares

30/07/2026 13:42

Overview
US regional bank's Q2 net income and EPS fell slightly from prior quarter, rose yr/yr
Net interest income and margin improved, supported by higher loan yields and lower deposit costs
Deposits declined 1.4% on seasonal outflows; loans grew modestly; nonperforming assets dropped 38%

Outlook
Company expects higher loan growth in the second half of 2026
Red River Bancshares projects net interest income and margin FTE to increase slightly in H2 2026
Company says SBIC income or loss will fluctuate in future quarters

Result Drivers
NET INTEREST MARGIN - Co said higher loan yields and lower deposit costs drove a 10 bp increase in net interest margin to 3.61%
OPERATING EXPENSES - Net income was impacted by a $1.0 mln increase in operating expenses, including higher personnel costs and nonrecurring relocation expenses
ASSET QUALITY - Nonperforming assets fell 38% due to resolution of problem loans, resulting in additional interest income and expense reimbursements

Company press release: ID:nGNX7Jh38F

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 EPS
 
$1.78
 
Q2 Net Income
 
$11.76 mln
 
Q2 Net Interest Income
 
$29 mln
 
Q2 ROE
 
12.41%
 

Analyst Coverage
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

Reuters Recommended Reads
July 30 - Catalyst Bancorp Q2 net interest margin rises
July 29 - First US Bancshares Q2 profit rises on loan growth, lower deposit costs
July 29 - Citizens Holding Q2 net income rises 70% on higher net interest income

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

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)