RED RIVER BANCSHARES INC Form 10-Q Quarterly Report Filed
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SECURITIES AND EXCHANGE COMMISSION FORM 10-Q Quarterly report pursuant to sections 13 or 15(d) Filing Date: 2021-08-13 | Period of Report: 2021-06-30 SEC Accession No. 0001071236-21-000070 (HTML Version on secdatabase.com) FILER RED RIVER BANCSHARES INC Mailing Address Business Address 1412 CENTRE COURT DRIVE1412 CENTRE COURT DRIVE CIK:1071236| IRS No.: 721412058 | Fiscal Year End: 1231 SUITE 501 SUITE 501 Type: 10-Q | Act: 34 | File No.: 001-38888 | Film No.: 211172503 ALEXANDRIA LA 71301 ALEXANDRIA LA 71301 SIC: 6022 State commercial banks (318) 561-5028 Copyright © 2021 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended: June 30, 2021 or ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission File Number: 001-38888 Red River Bancshares, Inc. (Exact name of registrant as specified in its charter) Louisiana 72-1412058 (State or Other Jurisdiction of Incorporation or Organization) (I.R.S. Employer Identification Number) 1412 Centre Court Drive, Suite 501, Alexandria, Louisiana 71301 (Address of Principal Executive Offices) (Zip Code) Registrant’s telephone number, including area code: (318) 561-5028 Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, no par value RRBI The Nasdaq Stock Market, LLC Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐ Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐ Copyright © 2021 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one): Large accelerated filer ☐ Accelerated filer ☐ ☒ ☒ Non-accelerated filer Smaller reporting company ☒ Emerging growth company If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☒ Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒ As of July 31, 2021, the registrant had 7,276,483 shares of common stock, no par value, issued and outstanding. Copyright © 2021 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document TABLE OF CONTENTS Page Glossary of Terms 3 Cautionary Note Regarding Forward-Looking Statements 4 PART I Financial Information Item 1. Financial Statements (Unaudited) Consolidated Balance Sheets 5 Consolidated Statements of Income 6 Consolidated Statements of Comprehensive Income 7 Consolidated Statements of Changes in Stockholders' Equity 8 Consolidated Statements of Cash Flows 9 Notes to Unaudited Consolidated Financial Statements 11 Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 27 Item 3. Quantitative and Qualitative Disclosures About Market Risk 52 Item 4. Controls and Procedures 53 PART II Other Information Item 1. Legal Proceedings 54 Item 1A. Risk Factors 54 Item 2. Unregistered Sales of Equity Securities and the Use of Proceeds 54 Item 3. Defaults Upon Senior Securities 54 Item 4. Mine Safety Disclosures 54 Item 5. Other Information 55 Item 6. Exhibits 56 Signatures 57 2 Copyright © 2021 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents GLOSSARY OF TERMS Unless the context indicates otherwise, references in this filing to “we,” “our,” “us,” “the Company,” and “our company” refer to Red River Bancshares, Inc., a Louisiana corporation and bank holding company, and its consolidated subsidiaries. All references in this filing to “Red River Bank,” "the bank,” and "the Bank” refer to Red River Bank, our wholly owned bank subsidiary. Other abbreviations or acronyms used in this filing are defined below. Copyright © 2021 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document ABBREVIATION OR ACRONYM DEFINITION AFS Available-for-sale ASC Accounting Standards Codification ASU Accounting Standards Update Basel III Basel Committee's 2010 Regulatory Capital Framework (Third Accord) BOLI Bank-owned life insurance bp(s) Basis point(s) CARES Act Coronavirus Aid, Relief, and Economic Security Act, as amended CBLR Community Bank Leverage Ratio CECL Current Expected Credit Losses, related to ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments COVID-19 Coronavirus Disease 2019 Economic Aid Act Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act Economic Growth Act Economic Growth, Regulatory Relief, and Consumer Protection Act EPS Earnings per share Exchange Act Securities Exchange Act of 1934, as amended FDIC Federal Deposit Insurance Corporation Federal Reserve Board of Governors of the Federal Reserve System FHLB Federal Home Loan Bank of Dallas FTE Fully taxable equivalent basis GAAP Generally Accepted Accounting Principles in the United States of America HFI Held for investment HFS Held for sale IPO Initial public offering MSA Metropolitan statistical area NOW Negotiable order of withdrawal NPA(s) Nonperforming asset(s) OTTI Other-than-temporary impairment PPP Paycheck Protection Program PPP1 PPP First Draw PPP2 PPP Second Draw SBA Small Business Administration SBIC Small Business Investment Company Securities Act Securities Act of 1933, as amended SEC Securities and Exchange Commission TDR(s) Troubled debt restructuring(s) 3 Copyright © 2021 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q contains forward-looking statements, which reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as “may,” “should,” “could,” “predict,” “potential,” “believe,” “will likely result,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “projection,” “would,” and “outlook,” or the negative version of those words, or such other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts and are based on current expectations, estimates and projections about our industry, management’s beliefs, and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. There are or will be important factors that could cause our actual results to differ materially from those indicated in these forward-looking statements, including, but not limited to, the following: • business and economic conditions generally and in the financial services industry, nationally and within our local market areas; • the impact of COVID-19 (including the emergence of multiple COVID-19 variants) on our business, the communities where we have our banking centers, the state of Louisiana, and the United States, related to the economy and overall financial stability; • government and regulatory responses to the COVID-19 pandemic; • government intervention in the U.S. financial system, including the effects of recent and future legislative, tax, accounting, and regulatory actions and reforms, including the CARES Act and the Economic Aid Act which established the SBA PPP1 and the PPP2 programs, and other stimulus legislation or changes in banking, securities, accounting, and tax laws and regulations, and their application by our regulators; • changes in management personnel; • increased competition in the financial services industry, particularly from regional and national institutions; • volatility and direction of market interest rates; • our ability to