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What changed in RED RIVER BANCSHARES INC's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of RED RIVER BANCSHARES INC's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+398 added−397 removedSource: 10-K (2026-03-13) vs 10-K (2025-03-14)

Top changes in RED RIVER BANCSHARES INC's 2025 10-K

398 paragraphs added · 397 removed · 329 edited across 6 sections

Item 1. Business

Business — how the company describes what it does

61 edited+19 added−18 removed171 unchanged
Biggest changeThe final rule requires financial institutions to collect and report data to the CFPB on small business loan applicants, including demographic data, lending decisions, and the price and terms of credit. The purpose of the rule is to increase transparency and combat discrimination in small business lending. For banks with moderate volume lending, the compliance deadline is January 16, 2026.
Biggest changeOn March 30, 2023, the CFPB issued a final rule implementing Section 1071 of the Dodd-Frank Act. The final rule requires financial institutions to collect and report data to the CFPB on small business loan applicants, including demographic data, lending decisions, and the price and terms of credit.
Failure to comply with applicable laws, regulations, and 19 Table of Contents supervisory agreements, breaches of fiduciary duty, or the maintenance of unsafe and unsound conditions or practices, could subject us or our subsidiaries, including the Bank, as well as their respective officers, directors, and other institution-affiliated parties, to administrative sanctions, enforcement actions, and potentially substantial civil money penalties.
Failure to comply with applicable laws, regulations, and supervisory agreements, breaches of fiduciary duty, or the maintenance of unsafe and unsound conditions or practices, 19 Table of Contents could subject us or our subsidiaries, including the Bank, as well as their respective officers, directors, and other institution-affiliated parties, to administrative sanctions, enforcement actions, and potentially substantial civil money penalties.
In addition, we offer stock-based compensation to key employees as a way to attract and retain talent. For more information on our benefit plans and stock-based compensation, see “Item 8. Financial Statements and Supplementary Data - Note 9. Employee Benefits” and “- Note 10. Stock-Based Compensation Plans,” respectively, in this Report.
In addition, we offer stock-based compensation to key employees as a way to attract, reward, and retain talent. For more information on our benefit plans and stock-based compensation, see “Item 8. Financial Statements and Supplementary Data - Note 9. Employee Benefits” and “- Note 10. Stock-Based Compensation Plans,” respectively, in this Report.
We believe this portfolio segment is well-diversified by industry type. As of December 31, 2024, our owner occupied CRE loans were 20.5% of loans HFI. Commercial Real Estate Loans (Non-Owner Occupied) . Our pursuit of non-owner occupied CRE properties is reserved primarily for developers and other persons or entities of influence who present additional business and personal relationship opportunities.
We believe this portfolio segment is well-diversified by industry type. As of December 31, 2025, our owner occupied CRE loans were 20.5% of loans HFI. Commercial Real Estate Loans (Non-Owner Occupied) . Our pursuit of non-owner occupied CRE properties is reserved primarily for developers and other persons or entities of influence who present additional business and personal relationship opportunities.
As of December 31, 2024, the Bank’s total reported loans for construction, land development, and other land represented less than 100.0% of the Bank’s total risk-based capital, and its total CRE loans, excluding owner occupied properties, represented less than 300.0% of the Bank’s total risk-based capital. As a result, the Bank does not have a concentration in CRE lending.
As of December 31, 2025, the Bank’s total reported loans for construction, land development, and other land represented less than 100.0% of the Bank’s total risk-based capital, and its total CRE loans, excluding owner occupied properties, represented less than 300.0% of the Bank’s total risk-based capital. As a result, the Bank does not have a concentration in CRE lending.
An unsatisfactory CRA record could substantially delay approval or result in denial of an application. The Bank received a “Satisfactory” rating in its most recent CRA examination in 2022. On October 24, 2023, the federal banking agencies adopted a final rule to modernize the CRA regulations.
An unsatisfactory CRA record could substantially delay approval or result in denial of an application. The Bank received a “Satisfactory” rating in its most recent CRA examination in 2025. On October 24, 2023, the federal banking agencies adopted a final rule to modernize the CRA regulations.
Significantly undercapitalized banks may be subject to requirements and restrictions, including orders to sell sufficient shares or obligations to become adequately capitalized, limitations on asset growth, and cessation of receipt 15 Table of Contents of deposits from correspondent banks. Generally, subject to a narrow exception, the FDIC must appoint a receiver or conservator for an institution that is critically undercapitalized.
Significantly undercapitalized banks may be subject to requirements and restrictions, including orders to sell sufficient shares or obligations to become adequately capitalized, limitations on asset growth, and cessation of receipt of deposits from correspondent banks. Generally, subject to a narrow exception, the FDIC must appoint a receiver or conservator for an institution that is critically undercapitalized.
We believe that we maintain employment and benefit programs that are appropriate with respect to position responsibilities, competitive with the external market, and capable of attracting, retaining, and motivating competent 10 Table of Contents employees. We recognize the importance of our employee’s financial health and well-being and strive to provide comprehensive compensation and benefits packages to help meet those needs.
We believe that we maintain employment and benefit programs that are appropriate with respect to position responsibilities, competitive with the external market, and capable of attracting, retaining, and motivating competent employees. We recognize the importance of our employee’s financial health and well-being and strive to provide comprehensive compensation and benefits packages to help meet those needs.
These regulations also provide for regulatory assessment of a bank’s CRA performance record when considering applications to establish branches, merger applications, and applications to acquire the assets and assume the liabilities of another bank. The CRA requires federal banking agencies to make public their ratings of banks’ performance under the CRA.
These regulations also provide for regulatory assessment of a bank’s CRA performance record when considering applications to establish branches, merger applications, and applications to acquire the assets and assume the liabilities of another bank. The CRA requires federal banking agencies to make public their ratings of banks’ 17 Table of Contents performance under the CRA.
In general, Louisiana law provides that the Bank may not pay any dividends to the Company unless the Bank has surplus at least equal to 50.0% of its capital stock and such surplus will not be reduced below 50.0% following payment of the dividend.
In general, Louisiana law provides that the Bank may not pay any dividends to the Company unless the Bank has surplus at 16 Table of Contents least equal to 50.0% of its capital stock and such surplus will not be reduced below 50.0% following payment of the dividend.
“Tier I” capital includes two components: (1) common equity Tier I capital and (2) additional Tier I capital. Common equity Tier I capital consists solely of common stock (plus related surplus), retained 14 Table of Contents earnings, and limited amounts of minority interests that are in the form of common stock.
“Tier I” capital includes two components: (1) common equity Tier I capital and (2) additional Tier I capital. Common equity Tier I capital consists solely of common stock (plus related surplus), retained earnings, and limited amounts of minority interests that are in the form of common stock.
Banking centers are located in the following Louisiana markets: Central, which includes the Alexandria MSA; Northwest, which includes the Shreveport-Bossier City MSA; Capital, which includes the Baton Rouge MSA; Southwest, which includes the Lake Charles MSA; the Northshore, which includes Covington; Acadiana, which includes the Lafayette MSA; and New Orleans.
Banking centers are located in the following Louisiana markets: Central, which includes the Alexandria MSA; Northwest, which includes the Shreveport-Bossier City MSA; Capital, which includes the Baton Rouge MSA; Southwest, which includes the Lake Charles MSA; the Northshore, which includes the Slidell-Mandeville-Covington MSA; Acadiana, which includes the Lafayette MSA; and New Orleans, which includes the New Orleans-Metairie MSA.
Moreover, if, in the opinion of the FDIC and the OFI, the Bank is engaged in an unsafe or unsound practice 16 Table of Contents (which could include the payment of dividends), the FDIC may require, generally after notice and hearing, the Bank to cease such practice.
Moreover, if, in the opinion of the FDIC and the OFI, the Bank is engaged in an unsafe or unsound practice (which could include the payment of dividends), the FDIC may require, generally after notice and hearing, the Bank to cease such practice.
In 2021, we entered the New Orleans market by opening a combined LDPO in downtown New Orleans, Louisiana, which was followed by a full-service banking center in 2022. In the second quarter of 2024, we opened our third banking location in the New Orleans market with a full-service banking center in Metairie, Louisiana.
In 2021, we entered the New Orleans market by opening a combined LDPO in downtown New Orleans, Louisiana, which was followed by a full-service banking center in 2022. In 2024, we opened our third banking location in the New Orleans market with a full-service banking center in Metairie, Louisiana.
Compensation and benefits include market-competitive pay, health insurance, dental insurance, vision insurance, employer paid and voluntary life insurance, health and dependent care flexible spending accounts, paid holidays, paid vacation and sick time, and other insurance and benefit options. We also offer a 401(k) Plan, and we make matching contributions to that plan.
Compensation and benefits include market-competitive pay, health insurance, dental insurance, vision insurance, employer paid and voluntary life insurance, 10 Table of Contents health and dependent care flexible spending accounts, paid holidays, paid vacation and sick time, and other insurance and benefit options. We also offer a 401(k) Plan, and we make matching contributions to that plan.
In the event of our bankruptcy, any commitment by us to a 13 Table of Contents federal bank regulatory agency to maintain the capital of the Bank under a capital restoration plan would be assumed by the bankruptcy trustee and entitled to a priority of payment.
In the event of our bankruptcy, any commitment by us to a federal bank regulatory agency to maintain the capital of the Bank under a capital restoration plan would be assumed by the bankruptcy trustee and entitled to a priority of payment.
We believe that, as of December 31, 2024, the Bank is well-capitalized under the regulatory framework for prompt corrective action. Banks that are adequately capitalized, but not well-capitalized, may not accept, renew, or rollover brokered deposits without a waiver from the FDIC and are subject to restrictions on the interest rates that can be paid on deposits.
We believe that, as of December 31, 2025, the Bank is well-capitalized under the regulatory framework for prompt corrective action. 15 Table of Contents Banks that are adequately capitalized, but not well-capitalized, may not accept, renew, or rollover brokered deposits without a waiver from the FDIC and are subject to restrictions on the interest rates that can be paid on deposits.
As of December 31, 2024, our consumer loans were 1.4% of loans HFI. Loans Held for Sale Our mortgage lending group originates home mortgage loans that are sold to investors on the secondary market. Loan types include conventional, VA, FHA, and Rural Development.
As of December 31, 2025, our consumer loans were 1.2% of loans HFI. Loans Held for Sale Our mortgage lending group originates home mortgage loans that are sold to investors on the secondary market. Loan types include conventional, VA, FHA, and Rural Development.
Under the final rule, (1) the federal banking agencies will evaluate bank performance across the varied activities they conduct and communities in which they operate in order to encourage banks to expand access to credit, investment, and banking services in low- and moderate-income communities, (2) the CRA regulations are updated to evaluate lending outside 17 Table of Contents traditional assessment areas generated by the growth of non-branch delivery systems, such as online and mobile banking, branchless banking, and hybrid models, (3) a new metrics-based approach was adopted to evaluate bank retail lending and community development financing, using benchmarks based on peer and demographic data, and (4) CRA evaluations and data collection are tailored according to bank size and type.
If and when applicable, under the final rule, (1) the federal banking agencies would evaluate bank performance across the varied activities they conduct and communities in which they operate in order to encourage banks to expand access to credit, investment, and banking services in low- and moderate-income communities, (2) the CRA regulations would be updated to evaluate lending outside traditional assessment areas generated by the growth of non-branch delivery systems, such as online and mobile banking, branchless banking, and hybrid models, (3) a new metrics-based approach would be adopted to evaluate bank retail lending and community development financing, using benchmarks based on peer and demographic data, and (4) CRA evaluations and data collection would be tailored according to bank size and type.
As of December 31, 2024, our construction and development loans were 7.5% of loans HFI. Commercial and Industrial Loans We have expertise in meeting the financing needs of commercial operating companies. Our specialists in these areas understand the cash cycle, working capital, and the fixed asset acquisition needs of businesses, which allows us to deliver customizable and effective financing solutions.
As of December 31, 2025, our construction and development loans were 9.8% of loans HFI. Commercial and Industrial Loans We have expertise in meeting the financing needs of commercial operating companies. Our specialists in these areas understand the cash cycle, working capital, and the fixed asset acquisition needs of businesses, which allows us to deliver customizable and effective financing solutions.
We utilize a core data processing platform from a nationally recognized bank software vendor providing us with capabilities to support the continued growth of the Bank.
We utilize a core data processing platform from a nationally recognized bank software vendor providing us with capabilities to support our continued growth.
As of December 31, 2024, our one-to-four family residential loans were 29.6% of loans HFI. Construction and Development Loans. Our construction and development portfolio includes loans to small and medium-sized businesses to construct owner occupied facilities, loans to developers of CRE investment properties and residential developments, and, to a lesser extent, loans to individual clients for construction of single-family homes.
As of December 31, 2025, our one-to-four family residential loans were 28.0% of loans HFI. Construction and Development Loans. Our construction and development portfolio includes loans to small and medium-sized businesses to construct owner occupied facilities, loans to developers of CRE investment properties and residential developments, and, to a lesser extent, loans to individual clients for construction of single-family homes.
In 2021, we invested in the JAM FINTOP Banktech, L.P. fund to strategically develop technology partnerships as we expand the Bank’s digital offerings. We believe these investments are essential to enhancing our capabilities for offering new products and services, improving the overall customer experience, providing scale for future growth and acquisitions, and increasing controls and efficiencies in corporate support areas.
Since 2021, we have invested in JAM FINTOP to strategically develop technology partnerships as we expand our digital offerings. We believe these investments are essential to enhancing our capabilities for offering new products and services, improving the overall customer experience, providing scale for future growth and acquisitions, and increasing controls and efficiencies in corporate support areas.
As of December 31, 2024, our non-owner occupied CRE loans were 22.1% of loans HFI. 8 Table of Contents One-to-Four Family Residential Loans. We offer primary and secondary liens on one-to-four family mortgage loans, as well as home equity lines of credit, in each case primarily on owner occupied primary residences.
As of December 31, 2025, our non-owner occupied CRE loans were 20.4% of loans HFI. 8 Table of Contents One-to-Four Family Residential Loans. We offer primary and secondary liens on one-to-four family mortgage loans, as well as home equity lines of credit, in each case primarily on owner occupied primary residences.
HUMAN CAPITAL As of December 31, 2024, we had 369 employees, including 358 full-time employees. None of our employees are represented by any collective bargaining unit or are parties to a collective bargaining agreement. We believe that our relations with our employees are very good.
HUMAN CAPITAL As of December 31, 2025, we had 375 employees, including 367 full-time employees. None of our employees are represented by any collective bargaining unit or are parties to a collective bargaining agreement. We believe that our relations with our employees are very good.
We recommend and utilize sound commercial and industrial loan structures that limit our risks as a lender, while also helping to drive the success of our clients’ businesses. Commercial and industrial loans comprised 15.8% of loans HFI as of December 31, 2024.
We recommend and utilize sound commercial and industrial loan structures that limit our risks as a lender, while also helping to drive the success of our clients’ businesses. Commercial and industrial loans comprised 17.5% of loans HFI as of December 31, 2025.
Commitments to Extend Credit We had outstanding commitments to extend credit in the forms of lines of credit and standby letters of credit of approximately $521.5 million as of December 31, 2024. We use the same credit policies in making these commitments as we do for our other loans.
Commitments to Extend Credit We had outstanding commitments to extend credit in the forms of lines of credit and standby letters of credit of approximately $560.2 million as of December 31, 2025. We use the same credit policies in making these commitments as we do for our other loans.
As of December 31, 2024, our tax-exempt loans were 3.1% of loans HFI. Consumer Loans We also make a variety of loans to individuals for personal, family, and household purposes, including secured and unsecured installment and term loans.
As of December 31, 2025, our tax-exempt loans were 2.6% of loans HFI. Consumer Loans We also make a variety of loans to individuals for personal, family, and household purposes, including secured and unsecured installment and term loans.
In the fourth quarter of 2024, we purchased property in Lafayette, Louisiana, and plan to build a new banking center at that location, which would be our second full-service banking center in the Acadiana market.
Also in 2024, we purchased property in Lafayette, Louisiana, and plan to build a new banking center at that location, which would be our second full-service banking center in the Acadiana market. In the third quarter of 2025, we opened a combined LDPO in Lafayette, Louisiana.
In addition to those requirements, the Dodd-Frank Act addresses many investor protection, corporate governance, and executive compensation matters that affect most U.S. publicly traded companies. 11 Table of Contents The Dodd-Frank Act (1) requires certain publicly traded companies to give shareholders a non-binding vote on executive compensation and golden parachute payments; (2) enhances independence requirements for compensation committee members; (3) requires national securities exchanges to require listed companies to adopt incentive-based compensation clawback policies for executive officers; (4) requires certain publicly traded companies to disclose the relationship between the executive compensation actually paid by the company and the financial performance of the company; and (5) authorizes the SEC to promulgate rules that would allow shareholders to nominate their own director candidates using a company’s proxy materials.
The Dodd-Frank Act (1) requires certain publicly traded companies to give shareholders a non-binding vote on executive compensation and golden parachute payments; (2) enhances independence requirements for compensation committee members; (3) requires national securities exchanges to require listed companies to adopt incentive-based compensation clawback policies for executive officers; (4) requires certain publicly traded companies to disclose the relationship between the executive compensation actually paid by the company and the financial performance of the company; and (5) authorizes the SEC to promulgate rules that would allow shareholders to nominate their own director candidates using a company’s proxy materials.
Our common stock is listed on the Nasdaq Global Select Market under the symbol “RRBI.” As of December 31, 2024, we were the sixth largest financial institution headquartered in Louisiana based on assets, with total assets of $3.15 billion, loans HFI of $2.08 billion, total deposits of $2.81 billion, and total stockholders’ equity of $319.7 million.
Our common stock is listed on the Nasdaq Global Select Market under the symbol “RRBI.” As of December 31, 2025, we were the sixth largest financial institution headquartered in Louisiana based on assets, with total assets of $3.35 billion, loans HFI of $2.25 billion, total deposits of $2.96 billion, and total stockholders’ equity of $365.2 million.
In our Northshore Louisiana market, which we define to include St. Tammany Parish, we operate one banking center. We operate one banking center in our Acadiana market, which we define to include Lafayette Parish. In our New Orleans market, which we define to include Orleans and Jefferson Parishes, we operate two banking centers and one combined LDPO.
In our Northshore Louisiana market, which we define to include St. Tammany Parish, we operate one banking center. We operate one banking center and one combined LDPO in our Acadiana market, which we define to include Lafayette Parish.
The aggregate liability of the holding company of an undercapitalized bank in such a guarantee is limited to the lesser of 5.0% of the bank’s assets at the time it became undercapitalized or the amount necessary to cause the institution to be adequately capitalized.
Any such guarantee from a bank holding company is entitled to a priority of payment in bankruptcy. 12 Table of Contents The aggregate liability of the holding company of an undercapitalized bank in such a guarantee is limited to the lesser of 5.0% of the bank’s assets at the time it became undercapitalized or the amount necessary to cause the institution to be adequately capitalized.
OUR MARKETS As of December 31, 2024, we operated from a network of 28 banking centers throughout Louisiana and one combined LDPO in New Orleans, Louisiana.
OUR MARKETS As of December 31, 2025, we operated from a network of 28 banking centers throughout Louisiana and two combined LDPOs, one each in New Orleans, Louisiana and Lafayette, Louisiana.
According to the CFPB, the rule is designed to foster competition and innovation in the financial services industry by making it easier for consumers to switch financial providers and for new companies to offer innovative products and services. The compliance deadline is phased-in based on the asset size of the financial institution.
According to the CFPB, the rule is designed to foster competition and innovation in the financial services industry by making it easier for consumers to switch financial providers and for new companies to offer innovative products and services.
The capital restoration plan of a bank controlled by a bank holding company will not be accepted by the regulators unless such bank holding company guarantees the subsidiary’s compliance with the capital restoration plan up to a certain specified amount. Any such guarantee from a bank holding company is entitled to a priority of payment in bankruptcy.
The capital restoration plan of a bank controlled by a bank holding company will not be accepted by the regulators unless such bank holding company guarantees the subsidiary’s compliance with the capital restoration plan up to a certain specified amount.
Those providers, because they are not so highly regulated, may have a competitive advantage over us and may continue to draw customers away from traditional banking institutions, with a continuing adverse effect on the banking industry in general.
Those providers, because they are not so highly regulated, may have a competitive advantage over us and may continue to draw customers away from traditional banking institutions, with a continuing adverse effect on the banking industry in general. Future Legislation and Regulatory Reform From time to time, various legislative and regulatory initiatives are introduced in Congress and state legislatures.
This optional framework became effective January 1, 2020, and is available to the Company and the Bank as an alternative to the Basel III risk-based capital framework. The CBLR framework provides for a simple measure of capital adequacy for certain community banking organizations.
As part of the Economic Growth Act, an optional CBLR framework is available to the Company and the Bank as an alternative to the Basel III risk-based capital framework. The CBLR framework provides for a simple measure of capital adequacy for certain community banking organizations.
We continue to evaluate the new rule and its effects on our operations going forward. Consumer Laws and Regulations Red River Bank is subject to numerous laws and regulations intended to protect consumers in transactions with the Bank. These laws include, among others, laws regarding unfair, deceptive, and abusive acts and practices, and other federal consumer protection statutes.
Consumer Laws and Regulations Red River Bank is subject to numerous laws and regulations intended to protect consumers in transactions with the Bank. These laws include, among others, laws regarding unfair, deceptive, and abusive acts and practices, and other federal consumer protection statutes.
Failure to meet capital guidelines could subject the Bank to a variety of enforcement remedies, including issuance of a capital directive, restrictions on business activities, and other measures under the FDIC’s prompt corrective action regulations. As part of the directive under the Economic Growth Act, in September 2019, the FDIC and other federal bank regulatory agencies approved the CBLR framework.
Failure to meet capital guidelines could subject the Bank to a variety of enforcement remedies, including issuance of a capital directive, restrictions on business activities, and other measures under the FDIC’s prompt corrective action regulations.
These minimum capital requirements are set forth below under the heading “- Bank Regulation - Capital Adequacy Requirements.” The Federal Reserve monitors the capital adequacy of the Company and considers its capital levels when taking action on various types of applications and when conducting supervisory activities related to the safety and soundness of the Company. 12 Table of Contents Imposition of Liability for Undercapitalized Subsidiaries Federal banking regulations require FDIC-insured banks that become undercapitalized to submit a capital restoration plan.
These minimum capital requirements are set forth below under the heading “- Bank Regulation - Capital Adequacy Requirements.” The Federal Reserve monitors the capital adequacy of the Company and considers its capital levels when taking action on various types of applications and when conducting supervisory activities related to the safety and soundness of the Company.
Capital Adequacy Requirements The FDIC and OFI monitor the capital adequacy of the Bank by using a combination of risk-based guidelines and leverage ratios. These agencies consider the Bank’s capital levels when taking action on various types of applications and when conducting supervisory activities related to the safety and soundness of the Bank and the banking system.
These agencies consider the Bank’s capital levels when taking action on various types of applications and when conducting supervisory activities related to the safety and soundness of the Bank and the banking system.
Our equal employment opportunity commitment applies to all areas of employment including hiring, training, placement, promotion, compensation, and benefits. CORPORATE INFORMATION Our principal executive offices are located at 1412 Centre Court Drive, Suite 301, Alexandria, Louisiana 71301, and our telephone number is (318) 561-4000. Our website is www.redriverbank.net.
CORPORATE INFORMATION Our principal executive offices are located at 1412 Centre Court Drive, Suite 301, Alexandria, Louisiana 71301, and our telephone number is (318) 561-4000. Our website is www.redriverbank.net.
In addition, any capital loans that we make to the Bank are subordinate in right of payment to deposits and to certain other indebtedness of the Bank.
This support may be required at times when we may not be inclined to provide it. In addition, any capital loans that we make to the Bank are subordinate in right of payment to deposits and to certain other indebtedness of the Bank.
From checking and savings products to sophisticated financing structures, we work to meet our clients’ changing needs. Brokerage Services We offer a broad range of products and services designed to meet the investment needs of all of our customers through our investment group and LPL Financial LLC, our registered broker-dealer.
From checking and savings products to sophisticated financing structures, we work to meet our clients’ changing needs. Brokerage Services We offer a broad range of products and services designed to meet the financial planning needs of our clients in the markets we serve.
Anti-Money Laundering and OFAC Under federal law, financial institutions are required to maintain anti-money laundering programs that include established internal policies, procedures, and controls; a designated compliance officer; an ongoing employee training program; testing of the program by an independent audit function; and a customer due diligence program.
The Dodd-Frank Act and the CFPB’s implementing regulations, including the TILA-RESPA integrated disclosure rules, also impose disclosure requirements with respect to the origination and sale of residential mortgages. 18 Table of Contents Anti-Money Laundering and OFAC Under federal law, financial institutions are required to maintain anti-money laundering programs that include established internal policies, procedures, and controls; a designated compliance officer; an ongoing employee training program; testing of the program by an independent audit function; and a customer due diligence program.
Other Banking Services We offer banking products and services that are attractively priced with a focus on customer convenience and accessibility. We offer a full suite of online banking services, including access to account balances, online transfers, online bill payment, and electronic delivery of customer statements.
As of December 31, 2025, our investment group held $1.33 billion of assets under management. Other Banking Services We offer banking products and services with a focus on customer convenience and accessibility. We offer a full suite of online banking services, including access to account balances, online transfers, online bill payment, and electronic delivery of customer statements.
As of December 31, 2024, the Company and the Bank qualify for the CBLR framework. Management does not intend to utilize the CBLR framework. Corrective Measures for Capital Deficiencies The federal banking regulators are required by the FDIA to take “prompt corrective action” with respect to capital-deficient banks that are FDIC-insured.
Corrective Measures for Capital Deficiencies The federal banking regulators are required by the FDIA to take “prompt corrective action” with respect to capital-deficient banks that are FDIC-insured.
As previously referenced in “- Bank Holding Company Regulation - Financial Services Industry Reform,” the future of the CFPB is presently uncertain. Mortgage Lending Rules The Dodd-Frank Act authorized the CFPB to establish certain minimum standards for the origination of residential mortgages, including a determination of the borrower’s ability to repay.
Mortgage Lending Rules The Dodd-Frank Act authorized the CFPB to establish certain minimum standards for the origination of residential mortgages, including a determination of the borrower’s ability to repay.
We believe our current markets provide ample opportunities for the continued growth of our customer base, loans, and deposits, as well as the expansion of our overall market share in each area. Our goal is to replicate this growth in new markets as we continue to expand and implement our growth and expansion strategy.
In our New Orleans market, which we define to include Orleans and Jefferson Parishes, we operate two banking centers and one combined LDPO. We believe our current markets provide ample opportunities for the continued growth of our customer base, loans, and deposits, as well as the expansion of our overall market share in each area.
Federal banking regulators regularly issue guidance regarding cybersecurity intended to enhance cybersecurity risk management. A financial institution is expected to implement multiple lines of defense against cyber-attacks.
Federal banking regulators regularly issue guidance regarding cybersecurity intended to enhance cybersecurity risk management. A financial institution is expected to implement multiple lines of defense against cyber-attacks. Under Federal guidance, banks are required to provide notice to affected customers of a data breach under certain circumstances and to the primary federal regulator within certain timeframes for certain data security incidents.
Our ability to pay dividends and make other distributions depends in part upon the receipt of dividends from the Bank, which is subject to certain restrictions on dividends as discussed in more detail below.
Our ability to pay dividends and make other distributions depends in part upon the receipt of dividends from the Bank, which is subject to certain restrictions on dividends as discussed in more detail below. 13 Table of Contents Under longstanding Federal Reserve policy, which has been codified by the Dodd-Frank Act, we are expected to act as a source of financial strength to, and to commit resources to support, the Bank.
We believe our current markets, which are in diverse parts of Louisiana, are economic centers that provide for natural credit diversification and a hedge against industry downturns. We are purposeful in choosing banking center locations and have sought out key locations in Louisiana through de novo development, as well as through two whole-bank acquisitions.
We are purposeful in choosing banking center locations and have sought out key locations in Louisiana through de novo development, as well as through two whole-bank acquisitions.
Regulatory Restrictions on Dividends; Source of Strength As a bank holding company, we are subject to certain restrictions on dividends under applicable banking laws and regulations.
Regulatory Restrictions on Dividends; Source of Strength As a Louisiana corporation, the Company is subject to certain restrictions on dividends under the LBCA.
The bank regulatory agencies have the power to enforce compliance with applicable banking laws and regulations. These requirements and restrictions include requirements to maintain reserves against deposits, restrictions on the nature and amount of loans that may be made and the interest that may be charged thereon, and restrictions relating to investments and other activities of the Bank.
These requirements and restrictions include requirements to maintain reserves against deposits, restrictions on the nature and amount of loans that may be made and the interest that may be charged thereon, and restrictions relating to investments and other activities of the Bank. 14 Table of Contents Capital Adequacy Requirements The FDIC and OFI monitor the capital adequacy of the Bank by using a combination of risk-based guidelines and leverage ratios.
A number of the effects of the Dodd-Frank Act are described or otherwise accounted for in various parts of this “Supervision and Regulation” section.
A number of the effects of the Dodd-Frank Act are described or otherwise accounted for in various parts of this “Supervision and Regulation” section. In addition to those requirements, the Dodd-Frank Act addresses many investor 11 Table of Contents protection, corporate governance, and executive compensation matters that affect most U.S. publicly traded companies.
Failure to comply with these laws and regulations could give rise to regulatory sanctions, customer rescission rights, action by state and local attorneys general, and civil or criminal liability. There has been an enhanced focus by certain bank regulatory agencies with respect to industry practices relating to overdraft fees and non-sufficient funds fees.
Failure to comply with these laws and regulations could give rise to regulatory sanctions, customer rescission rights, action by state and local attorneys general, and civil or criminal liability. The Dodd-Frank Act created the CFPB, which has broad authority to regulate the offering and provision of consumer financial products.
Holding Company Capital Requirements As previously referenced in “- Financial Services Industry Reform,” effective January 1, 2023, we became subject to, on a consolidated basis, the same minimum capital ratios under Basel III as the Bank.
Holding Company Capital Requirements At the holding company level, we are subject to the same minimum capital ratios under Basel III as the Bank.
Our investment group executives, who are available to serve clients in each of our markets, strive to fully understand each client’s unique financial situation, deliver a comprehensive plan, and provide the appropriate products to meet their needs. Our investment products include stocks, bonds, mutual funds, alternative investments, annuities, and insurance products.
Our investment executives strive to understand each client’s unique financial situation and through our partnership with LPL Financial LLC, our registered broker-dealer, our investment executives are able to offer stocks, bonds, mutual funds, alternative investments, advisory services, annuities, and insurance products to address their individual needs.
Additionally, the future implementation and enforcement of regulations may be affected by the result of the Fall 2024 U.S. Presidential election, which is resulting in significant changes in the leadership of the various bank regulatory agencies.
Additionally, the future implementation and enforcement of regulations may be affected by the current government of the U.S., which has made significant changes in the leadership of the various bank regulatory agencies. In early February 2025, the CFPB’s Acting Director issued directives to cease virtually all CFPB activities, including supervision, examinations, rulemaking, enforcement actions, and pending investigations.
For banks with $3.0 billion to $10.0 billion in total assets, the compliance deadline is April 1, 2028. At this time, it is difficult to anticipate the continued impact the above-described legislation may have on our business, our customers, and the financial industry generally.
In August 2025, the CFPB issued an advance notice of proposed rulemaking seeking comments as it evaluates issuing a proposed rule that would replace the current rule. At this time, it is difficult to anticipate the continued impact the above-described legislation and regulations may have on our business, our customers, and the financial industry generally.
Removed
Through our partnership with registered investment advisors, our investment group also provides investment advisory services, financial planning services, and a comprehensive suite of retirement plans. As of December 31, 2024, our investment group had $1.14 billion of assets under management.
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Our goal is to replicate this growth in new markets as we continue to expand and implement our growth and expansion strategy. We believe our current markets, which are in diverse parts of Louisiana, are economic centers that provide for natural credit diversification and a hedge against industry downturns.
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The Economic Growth Act, which was signed into law in May 2018, provides certain limited amendments to the Dodd-Frank Act, as well as certain targeted modifications to prior financial services reform regulatory requirements. Provisions in the Economic Growth Act generally address access to mortgage credit; consumer access to credit; protections for veterans, consumers, and homeowners; and protections for student borrowers.
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Our equal employment opportunity commitment applies to all areas of employment including hiring, training, placement, promotion, compensation, and benefits. INFORMATION ABOUT OUR EXECUTIVE OFFICERS For information regarding our executive officers, see “Item 10. Directors, Executive Officers, and Corporate Governance” in this Report.
Removed
One of the Economic Growth Act’s highlights, with implications for us, was the asset threshold under the Policy Statement being increased from $1.0 billion to $3.0 billion, which benefits bank holding companies by, among various other items, allowing for an 18-month safety and soundness examination cycle as opposed to a 12-month examination cycle, changing to scaled biannual regulatory reporting requirements as opposed to quarterly regulatory reporting requirements, and not subjecting bank holding companies to capital adequacy guidelines on a consolidated basis.
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The purpose of the rule is to increase transparency and combat discrimination in small business lending. As a bank with moderate volume lending as prescribed by this final rule, the current compliance deadline is January 1, 2027.
Removed
Effective January 1, 2023, we no longer receive any benefits under the Policy Statement and became subject to consolidated capital requirements. As of the June 30, 2024 measurement date, we had more than $3.0 billion in assets and remain subject to consolidated capital requirements.
Added
However, the CFPB issued a notice of proposed rulemaking in November 2025 that would make certain changes to the rule, including changing the number of lending transactions that would require financial institutions to comply with this rule, reducing the number of data points financial institutions must collect and report, and extending the compliance deadline to January 1, 2028.
Removed
Another significant provision was the Economic Growth Act’s directive that federal bank regulatory agencies adopt a threshold for a CBLR framework.
Added
Under this proposed rule, we do not currently meet the threshold for reporting. We will continue to monitor future developments with this rulemaking.
Removed
The CBLR framework and its implications for us are discussed in more detail below under the heading “- Bank Regulation - Capital Adequacy Requirements.” On March 30, 2023, the CFPB issued a final rule implementing Section 1071 of the Dodd-Frank Act.
Added
The rule is in a current state of uncertainty as a federal court has issued a preliminary injunction prohibiting the CFPB from enforcing it until the CFPB can complete its reconsideration of the rule.
Removed
In early February 2025, the CFPB’s Acting Director issued directives to cease virtually all CFPB activities, including supervision, examinations, rulemaking, enforcement actions, and pending investigations. CFPB staff were instructed to suspend the effective dates of all rules that have been issued, but have not yet gone into effect.
Added
Since this time, the CFPB has remained largely dormant, with limited rulemaking issuances or other activity. In November 2025, the Acting Director notified a federal court that, pursuant to a legal opinion issued by the Department of Justice’s Office of Legal Counsel, the CFPB cannot request funds from the Federal Reserve under Dodd-Frank to fund its operations.
Removed
Further, the Acting Director announced that the CFPB would not be taking its next draw of unappropriated funding. A new CFPB Director has recently been nominated and is subject to Senate confirmation. The future of the CFPB is uncertain at this time.
Added
In December 2025, the federal court rejected this legal interpretation. In January 2026, the Acting Director notified the federal court that he had requested funding from the Federal Reserve to fund its operations for the first quarter of 2026. The future of the CFPB is uncertain at this time.
Removed
Under longstanding Federal Reserve policy, which has been codified by the Dodd-Frank Act, we are expected to act as a source of financial strength to, and to commit resources to support, the Bank. This support may be required at times when we may not be inclined to provide it.
Added
Imposition of Liability for Undercapitalized Subsidiaries Federal banking regulations require FDIC-insured banks that become undercapitalized to submit a capital restoration plan.
Removed
In addition, the final rule also exempts small and intermediate sized banks from new data requirements that apply to banks with assets of at least $2.0 billion and limits certain new data requirements to large banks with assets greater than $10.0 billion.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

95 edited+18 added−13 removed127 unchanged
Biggest changeAt the same time, we may not allocate the appropriate level of resources or expertise necessary to make these new efforts successful or to realize their expected benefits. Further, initial timetables for the introduction and development of new lines of business, products, product enhancements, or services may not be achieved, and price and profitability targets may not prove feasible.
Biggest changeFurther, initial timetables for the introduction and development of new lines of business, products, product enhancements, services, or technologies may not be achieved, and price and profitability targets may not prove feasible. As a result, we may not fully realize the anticipated benefits from these efforts, or we may incur significant costs to overcome related challenges in a timely manner.
This amount could increase in the future, depending upon the level of our real estate foreclosures and our ability to efficiently divest of the foreclosed OREO.
This amount could increase in the future, depending upon the level of our real estate foreclosures and our ability to efficiently divest the foreclosed OREO.
While we do not expect that these conflicts will be directly material to us, associated effects of the geopolitical instability, such as the imposition of sanctions against any country and their response to such sanctions (including retaliatory acts like cyber-attacks and sanctions against other countries), could adversely affect the global economy or domestic markets, including ours.
While we do not expect that these conflicts or tensions will be directly material to us, associated effects of the geopolitical instability, such as the imposition of sanctions against any country and their response to such sanctions (including retaliatory acts like cyber-attacks and sanctions against other countries), could adversely affect the global economy or domestic markets, including ours.
As a result, any failure or deficiency in making these judgments could have a material adverse effect on our business and profitability. Risks Related to Our Operations We rely heavily on our executive management team and other key employees, and we could be adversely affected by an unexpected loss of their service.
As a result, any failure or deficiency in making these judgments could have a material adverse effect on our business and profitability. Risks Related to Our Operations We rely heavily on our executive management team, directors, and other key employees, and we could be adversely affected by an unexpected loss of their service.
Our success depends in large part on the performance of our key personnel, as well as on our ability to attract, motivate, and retain highly qualified management and employees. Competition for employees is intense, and the process of locating key personnel with the combination of skills and attributes required to execute our business plan may be difficult.
Our success depends in large part on the performance of our key personnel, as well as on our ability to attract, motivate, and retain highly qualified management, directors, and employees. Competition for employees is intense, and the process of locating key personnel with the combination of skills and attributes required to execute our business plan may be difficult.
We may also rely on representations of customers and counterparties as to the accuracy and completeness of that information and, with respect to financial statements, on reports of independent auditors. Any misrepresentation or incorrect or incomplete information, whether fraudulent or inadvertent, may not be detected prior to entering into the transaction.
We may also rely on representations of customers and counterparties as to the accuracy and completeness of that information and, with respect to financial statements, on reports of independent auditors. Any misrepresentation or incorrect or incomplete information, whether fraudulent or inadvertent, may not be detected prior to entering into a transaction.
In deciding whether and upon what terms to extend credit or enter into other transactions with customers and counterparties, we may rely on information furnished by or on behalf of customers and counterparties, including financial statements, property appraisals, title information, employment and income documentation, account information, and other financial information.
In deciding whether and upon what terms to extend credit or enter into other transactions with customers and counterparties, we may rely on information furnished to us by or on behalf of customers and counterparties, including financial statements, property appraisals, title information, employment and income documentation, account information, and other financial information.
If any of these valuations are inaccurate, our combined and consolidated financial statements may not reflect the correct value of our OREO or personal property, and our ACL may not reflect accurate estimated losses. The amount of our nonperforming assets may increase significantly, resulting in additional losses, costs, and expenses.
If any of these valuations are inaccurate, our consolidated financial statements may not reflect the correct value of our OREO or personal property, and our ACL may not reflect accurate estimated losses. The amount of our nonperforming assets may increase significantly, resulting in additional losses, costs, and expenses.
If we fail to implement one or more aspects of our expansion strategy, we may be unable to maintain our historical growth and earnings trends. New lines of business, products, product enhancements, or services may subject us to additional risks.
If we fail to implement one or more aspects of our expansion strategy, we may be unable to maintain our historical growth and earnings trends. New lines of business, products, product enhancements, services, or technologies may subject us to additional risks.
Additionally, stock repurchases will diminish our cash reserves, which could impact our ability to pursue possible future strategic opportunities and acquisitions, support our operations, invest in securities, and pay dividends, and could result in lower overall returns on our cash balances.
Additionally, stock repurchases could diminish our cash reserves, which could impact our ability to pursue possible future strategic opportunities and acquisitions, support our operations, invest in securities, and pay dividends, and could result in lower overall returns on our cash balances.
A significant portion of our loan portfolio is comprised of commercial and industrial loans secured by receivables, inventory, equipment, or other commercial collateral, and the deterioration in the collateral’s value could expose us to credit losses.
A portion of our loan portfolio is comprised of commercial and industrial loans secured by receivables, inventory, equipment, or other commercial collateral, and the deterioration in the collateral’s value could expose us to credit losses.
Increases in assessment rates or special assessments that apply to all banks may occur in the future, especially if there are significant financial institution failures. Any future special assessments or increases in assessment rates could reduce our profitability, which could have an adverse effect on our business, financial condition, and results of operations. 32 Table of Contents Item 1B.
Increases in assessment rates or special assessments that apply to all banks may occur in the future, especially if there are significant financial institution failures. Any future special assessments or increases in assessment rates could reduce our profitability, which could have an adverse effect on our business, financial condition, and results of operations. 33 Table of Contents Item 1B.
In the ordinary course of our business, we necessarily collect, use, and retain, on various information systems that we maintain and in those maintained by third-party providers and, in some cases, vendors retained by those third parties, personal and financial information concerning individuals and businesses with which we have a banking relationship.
In the ordinary course of our business, we necessarily collect, use, and retain, on various information systems that we maintain and in those maintained by third-party providers and, in some cases, vendors retained by those third parties, personal and financial information concerning individuals and businesses with which we have a banking or other relationship.
The interests of these insiders could conflict with the interests of our other shareholders. The rights of our common shareholders may be subordinate to the holders of any debt securities or preferred stock that we may issue in the future. As of December 31, 2024, we did not have any outstanding long-term debt.
The interests of these insiders could conflict with the interests of our other shareholders. The rights of our common shareholders may be subordinate to the holders of any debt securities or preferred stock that we may issue in the future. As of December 31, 2025, we did not have any outstanding long-term debt.
These provisions, and the corporate and banking laws and regulations applicable to us, enable our board of directors to issue additional shares of authorized, but unissued capital stock; specify that our shareholders do not have preemptive rights; issue “blank check” preferred stock with such designations, rights, and preferences as may be determined from time to time by the board; increase the size of the board and fill the vacancies created by the increase; not be elected by cumulative voting; amend our bylaws without shareholder approval; require the request of holders of at least 25.0% of the outstanding shares of our capital stock entitled to vote at a meeting to call a special shareholders’ meeting; establish an advance notice procedure for director nominations and other shareholder proposals; and require prior regulatory application and approval of any transaction involving control of our organization.
These provisions, and the corporate and banking laws and regulations applicable to us, enable our board of directors to issue additional shares of authorized, but unissued capital stock; specify that our shareholders do not have preemptive rights; issue “blank check” preferred stock with such designations, rights, and preferences as may be determined from time to time by the board; increase the size of the board and fill the vacancies created by the increase; not be elected by cumulative voting; amend our bylaws without shareholder approval; require the request of holders of at least 25.0% of the outstanding shares of our 30 Table of Contents capital stock entitled to vote at a meeting to call a special shareholders’ meeting; establish an advance notice procedure for director nominations and other shareholder proposals; and require prior regulatory application and approval of any transaction involving a change in control of our organization.
Although we seek to limit this 28 Table of Contents exposure through clear disclosure, ongoing oversight, and contractual provisions requiring indemnification, limitations of liability, insurance coverage, and other similar protections, those obligations may not always be enforceable, or our third-party service providers ultimately may not have sufficient financial strength to fully comply, all of which may increase our financial exposure and adversely affect our business.
Although we seek to limit this exposure through clear disclosure, ongoing oversight, and contractual provisions requiring indemnification, limitations of liability, insurance coverage, and other similar protections, those obligations may not always be enforceable, or our third-party service providers ultimately may not have sufficient financial strength to fully comply, all of which may increase our financial exposure and adversely affect our business.
Consequently, our management and board of directors may be able to significantly affect the outcome of the election of directors and the potential outcome of other matters submitted to a vote of our shareholders, such as mergers, the sale of substantially all of our assets, and other extraordinary corporate matters.
Consequently, our management and board of directors may be able to significantly affect the outcome of the election of directors and the potential outcome of other matters submitted to a vote of our shareholders, such as mergers, the issuance of stock, the sale of substantially all of our assets, and other extraordinary corporate matters.
Actual borrowing needs of our customers may exceed our expectations, especially during a challenging economic environment when our customers may be more dependent on our credit commitments due to reduced income or the lack of available 24 Table of Contents credit elsewhere, the increasing costs of credit, or the limited availability of financings from alternative sources.
Actual borrowing needs of our customers may exceed our expectations, especially during a challenging economic environment when our customers may be more dependent on our credit commitments due to reduced income or the lack of available credit elsewhere, the increasing costs of credit, or the limited availability of financings from alternative sources.
These loan consist of loans to nursing and residential care facilities and physician and dental practices.
These loans consist of loans to nursing and residential care facilities and physician and dental practices.
As a result, holders of our 29 Table of Contents common stock bear the risk that our future issuances of debt or equity securities or our incurrence of other borrowings may negatively affect the market price of our common stock. Our dividend policy may change without notice, and our future ability to pay dividends is subject to restrictions.
As a result, holders of our common stock bear the risk that our future issuances of debt or equity securities or our incurrence of other borrowings may negatively affect the market price of our common stock. Our dividend policy may change without notice, and our future ability to pay dividends is subject to restrictions.
If we fail to maintain capital sufficient to meet regulatory requirements, we may not be able to withstand periods of financial stress, and we could be subject to enforcement actions or other regulatory consequences. A lack of liquidity could impair our ability to fund operations. Liquidity is essential to our business.
If we fail to maintain capital sufficient to meet regulatory requirements, we may not be able to withstand periods of financial stress, and we could be subject to enforcement actions or other regulatory consequences. 26 Table of Contents A lack of liquidity could impair our ability to fund operations. Liquidity is essential to our business.
A significant portion of our business is focused on small to medium-sized businesses, which frequently have smaller market shares than their competition; may be more vulnerable to economic downturns, inflation, and labor market and supply chain constraints; may often need substantial additional capital to expand or compete; and may experience substantial volatility in operating results.
A significant portion of our business is focused on small to medium-sized businesses, which frequently have smaller market shares than their competition; may be more vulnerable to economic downturns, inflation, labor market and supply chain constraints, tariffs, trade policy, and trade wars; may often need substantial additional capital to expand or compete; and may experience substantial volatility in operating results.
If we unexpectedly lose the services of one or more of our key personnel and are unable to replace them, we would also lose the benefit of their skills, knowledge of our primary markets, and years of industry experience, which could adversely affect our business and profitability.
If we unexpectedly lose the services of one or more of our management team, directors, or key personnel and are unable to replace them, we would also lose the benefit of their skills, knowledge of our primary markets, and years of industry experience, which could adversely affect our business and profitability.
The use of statistical and quantitative models and other quantitative analysis is part of bank decision-making and is used in our operations. It is also prevalent in regulatory compliance.
The use of statistical and quantitative models and other quantitative analysis is part of management’s decision-making and is used in our operations. It is also prevalent in regulatory compliance.
They also may cause us to reduce the average percentage rate or the points and fees on loans that we do make. Additionally, consumer protection initiatives or changes in state or federal law may substantially increase the time and expense associated with the foreclosure process or prevent us from foreclosing at all.
They also may cause us to reduce the 32 Table of Contents average percentage rate or the points and fees on loans that we do make. Additionally, consumer protection initiatives or changes in state or federal law may substantially increase the time and expense associated with the foreclosure process or prevent us from foreclosing at all.
We may thereafter own and operate such property, in which case we would be exposed to the risks inherent in the ownership of real estate, including potential environmental liability due to contamination of a property either during ownership or after the divesting of it. As of December 31, 2024, we held OREO totaling $38,000.
We may thereafter own and operate such property, in which case we would be exposed to the risks inherent in the ownership of real estate, including potential environmental liability due to contamination of a property either during ownership or after the divesting of it. As of December 31, 2025, we held OREO totaling $36,000.
Because real 22 Table of Contents estate values may change significantly in relatively short periods of time (especially in periods of heightened economic uncertainty), this estimate may not accurately describe the net value of the real property collateral after the loan is made.
Because real estate values may change significantly in relatively short periods of time (especially in periods of heightened economic uncertainty), this estimate may not accurately describe the net value of the real property collateral after the loan is made.
While we are not currently subject to annual stress testing under the Dodd-Frank Act or the Federal Reserve’s Comprehensive Capital Analysis and Review submissions, we currently utilize asset/liability management modeling and stress testing for monitoring and managing interest rate risk and liquidity. We also use an ACL model to evaluate the ACL.
While we are not currently subject to annual stress testing under the Dodd-Frank Act or the Federal Reserve’s Comprehensive Capital Analysis and Review submissions, we currently utilize asset/liability management modeling and stress testing for monitoring and managing interest rate risk and liquidity. We also use a software system to model and evaluate the ACL.
We have also repurchased shares of our common stock outside of our stock repurchase programs in privately negotiated repurchases with approval from the board of directors. Repurchases could affect our stock price and increase its volatility.
In the past few years we have also repurchased shares of our common stock outside of our stock repurchase programs in privately negotiated repurchases with approval from our board of directors. Repurchases could affect our stock price and increase its volatility.
We also maintain important internal company data such as personally identifiable information about our employees and information about our operations. Threats to data security such as unauthorized access and cyber-attacks emerge and change rapidly. These threats may increase our costs for protection or remediation.
We also maintain important internal company data such as personally identifiable information about our employees and information about our operations. Threats to data security such as unauthorized access and cyber-attacks 27 Table of Contents emerge and change rapidly. These threats may increase our costs for protection or remediation.
Business - Supervision and Regulation.” Federal and state consumer lending laws may restrict our ability to originate certain mortgage loans, increase our risk of liability with respect to such loans, increase the time and expense associated with the foreclosure process, or prevent us from foreclosing at all.
Federal and state consumer lending laws may restrict our ability to originate certain mortgage loans, increase our risk of liability with respect to such loans, increase the time and expense associated with the foreclosure process, or prevent us from foreclosing at all.
Current and past economic conditions, particularly in the financial markets, have resulted in government regulatory agencies and political bodies placing increased focus and scrutiny on the financial services industry. New proposals for legislation and regulation continue to be introduced in the U.S.
The impact of past economic conditions, particularly in the financial markets, have resulted in government regulatory agencies and political bodies placing increased focus and scrutiny on the financial services industry. New proposals for legislation and regulation will continue to be introduced in the U.S.
This could adversely affect our liquidity, which could impair our ability to fund operations and meet obligations as they become due. Negative conditions in the health care sector could lead to increased credit losses in our loan portfolio. Health care loans, which were $167.3 million, or 8.1% of loans HFI as of December 31, 2024, are our largest industry concentration.
This could adversely affect our liquidity, which could impair our ability to fund operations and meet obligations as they become due. Negative conditions in the health care sector could lead to increased credit losses in our loan portfolio. Health care loans, which were $194.3 million, or 8.6% of loans HFI as of December 31, 2025, are our largest industry concentration.
As of December 31, 2024, 94.2% of loans HFI were made to borrowers who reside or conduct business in Louisiana, and substantially all of our real estate loans are secured by properties located in Louisiana.
As of December 31, 2025, 94.4% of loans HFI were made to borrowers who reside or conduct business in Louisiana, and substantially all of our real estate loans are secured by properties located in Louisiana.
The repurchase programs authorize us to purchase up to a set amount of our outstanding shares of common stock between specific dates. Repurchases may be made from time to time in the open market at prevailing prices and based on market conditions, or in privately negotiated transactions.
We maintain a stock repurchase program. The repurchase program authorizes us to purchase up to a set amount of our outstanding shares of common stock between specific dates. Repurchases may be made from time to time in the open market at prevailing prices and based on market conditions, or in privately negotiated transactions.
As of December 31, 2024, we had NPAs of $3.3 million, or 0.10% of assets. NPAs adversely affect our net income in various ways. We do not record interest income on OREO or on nonperforming loans, which adversely affects our income.
As of December 31, 2025, we had NPAs of $3.5 million, or 0.11% of assets. NPAs adversely affect our net income in various ways. We do not record interest income on OREO or on nonperforming loans, which adversely affects our income.
Management estimates the allowance balance using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. The determination of the amount of allowance involves a high degree of judgment and subjectivity. As of December 31, 2024, our ACL totaled $21.7 million, which represents approximately 1.05% of loans HFI.
Management estimates the allowance balance using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. The determination of the amount of allowance involves a high degree of judgment and subjectivity. As of December 31, 2025, our ACL totaled $23.4 million, which represents approximately 1.04% of loans HFI.
An increase in the general level of interest rates may reduce loan demand and loan fees, decrease loan repayments, create deposit rate pressure, while increasing the yield on short-term interest-bearing assets and on new and renewing loans and securities.
A decrease in the general level of interest rates may reduce the yield on short-term interest-bearing assets and on new and renewing loans and securities, and may decrease deposit rate pressure and the cost of deposits. 23 Table of Contents An increase in the general level of interest rates may reduce loan demand and loan fees, decrease loan repayments, create deposit rate pressure, while increasing the yield on short-term interest-bearing assets and on new and renewing loans and securities.
From time to time, we are, or may be, involved in various legal matters arising in the ordinary course of business. One or more unfavorable outcomes of these ordinary course claims or litigation against us could have a material adverse effect on our business.
We are subject to claims, litigation, and other proceedings that could result in legal liability. From time to time, we are, or may be, involved in various legal matters arising in the ordinary course of business. One or more unfavorable outcomes of these ordinary course claims or litigation against us could have a material adverse effect on our business.
As of December 31, 2024, approximately $327.1 million, or 15.8%, of loans HFI were commercial and industrial loans collateralized, in general, by general business assets including, among other things, accounts receivable, inventory, equipment, and available real estate, and most are backed by a personal guaranty of the borrower or principal.
As of December 31, 2025, approximately $392.8 million, or 17.5%, of loans HFI were commercial and industrial loans collateralized, in general, by general business assets including, among other things, accounts receivable, inventory, equipment, and available real estate, and most are backed by a personal guaranty of the borrower or principal.
In addition, there are risks inherent in making any loan, including risks with respect to the period of time the loan may be repaid; risks relating to proper loan underwriting; risks resulting from changes in economic and industry conditions such as inflationary pressures; tariffs and trade wars; and risks inherent in dealing with individual borrowers.
In addition, there are risks inherent in making any loan, including risks with respect to the period of time the loan may be repaid, risks relating to proper loan underwriting, risks resulting from changes in economic and industry conditions, and risks inherent in dealing with individual borrowers.
Consequently, we could be required to increase our ACL, adversely affecting our profitability. Our business may be adversely affected by credit risk associated with residential property. As of December 31, 2024, $614.6 million, or 29.6%, of our total loan portfolio was secured by primary and secondary liens on one-to-four family residential loans.
Consequently, we could be required to increase our ACL, adversely affecting our profitability. Our business may be adversely affected by credit risk associated with residential property. As of December 31, 2025, $628.8 million, or 28.0%, of our total loan portfolio was secured by primary and secondary liens on one-to-four family residential loans.
General uncertainty resulting from continued volatility could have other adverse impacts such as job losses in industries tied to energy, lower borrowing needs, higher transaction deposit balances, or a number of other effects that are difficult to isolate or quantify, particularly in states with significant dependence on the energy industry like Louisiana, all of which could lead to increased credit losses in our loan portfolio.
General uncertainty resulting from continued volatility could have other adverse impacts such as job losses in industries tied to energy, lower borrowing needs, higher transaction deposit balances, or a number of other effects that are difficult to isolate or quantify, particularly in states with significant dependence on the energy industry like Louisiana, all of which could lead to increased credit losses in our loan portfolio. 24 Table of Contents Natural disasters and other external events could result in a disruption of our operations and increases in credit losses.
As of December 31, 2024, we had energy loans of $29.8 million, or 1.4% of loans HFI. We also may have indirect exposure to energy prices, as some of our non-energy customers’ businesses may be affected by volatility in the oil and gas industry and energy prices.
As of December 31, 2025, we had energy loans of $27.7 million, or 1.2% of loans HFI. We also may have indirect exposure to energy prices, as some of our non-energy customers’ businesses may be affected by volatility in the oil and gas industry and energy prices.
The Federal Reserve requires a bank holding company to act as a source of financial and managerial strength to its subsidiary banks and to commit resources to support its subsidiary banks.
In addition, the Federal Reserve may require us to commit capital resources to support the Bank. The Federal Reserve requires a bank holding company to act as a source of financial and managerial strength to its subsidiary banks and to commit resources to support its subsidiary banks.
Regardless of their merits, scope, validity, or ultimate outcomes, such matters are costly, time-consuming, may result in protracted litigation or otherwise divert management’s attention, and may materially and adversely affect our reputation, even if resolved favorably.
Regardless of their merits, scope, validity, or ultimate outcomes, such matters are costly, time-consuming, may result in protracted litigation or otherwise divert management’s attention, and may materially and adversely affect our reputation, even if resolved favorably. Our financial results depend on management’s selection of accounting methods and certain assumptions and estimates.
The stock market and, in particular, the market for financial institution stocks, has experienced substantial fluctuations in recent years, which in many cases has been unrelated to the operating performance and prospects of particular companies. In addition, significant fluctuations in the trading volume in our common stock may cause significant price variations to occur.
The stock market and, in particular, the market for financial institution stocks, has experienced substantial fluctuations, which may or may not be related to the operating performance and prospects of particular companies. In addition, significant fluctuations in the trading volume in our common stock may cause significant price variations to occur.
As a business operating in the financial services industry, our business and operations may be adversely affected in numerous and complex ways, including demand for our products and services, inflation, and financial markets.
As a business operating in the financial services industry, our business and operations may be adversely affected in numerous and complex ways.
Additionally, our operations could be interrupted if any of our third-party service providers experience financial difficulty, are inadvertently or intentionally negligent, are subject to cybersecurity breaches, fail to effectively manage their providers, terminate their services, or fail to comply with applicable banking regulations. We are subject to claims, litigation, and other proceedings that could result in legal liability.
Additionally, our operations could be interrupted if any of our third-party service providers experience financial difficulty, are inadvertently or intentionally negligent, are subject to cybersecurity breaches or other cyber events, fail to effectively manage their providers, terminate their services, or fail to comply with applicable banking regulations.
As of December 31, 2024, our owner occupied CRE loans totaled $425.7 million, or 20.5% of loans HFI. Also, as of December 31, 2024, our construction and development loans, non-owner occupied CRE loans, and non-real estate secured loans financing CRE activities totaled $615.4 million, or 29.7% of loans HFI.
As of December 31, 2025, our owner occupied CRE loans totaled $461.7 million, or 20.5% of loans HFI. Also, as of December 31, 2025, our construction and development loans, non-owner occupied CRE loans, and non-real estate secured loans financing CRE activities totaled $683.3 million, or 30.4% of loans HFI.
Our most important source of funds is deposits. Historically, our deposits have provided a stable source of funds. However, deposit balances can decrease when customers perceive alternative investments as providing a better risk/return tradeoff or when customers have negative views related to disruption in the financial markets or the prospects for the financial services industry as a whole.
However, deposit balances can decrease when customers perceive alternative investments as providing a better risk/return tradeoff or when customers have negative views related to disruption in the financial markets or the prospects for the financial services industry as a whole.
In addition, bank regulatory agencies will periodically review our ACL and the value attributed to nonaccrual loans or to real estate acquired through foreclosure. Such regulatory agencies may require us to recognize future charge-offs.
In addition, bank regulatory agencies will periodically review our ACL and the value attributed to nonaccrual loans or to real estate acquired through foreclosure.
Certain aspects of current or proposed regulatory or legislative changes, if enacted or adopted, may impact the profitability of our business activities by requiring more oversight or changing certain of our business practices, including our ability to offer new products, obtain financing, attract deposits, make loans, and achieve satisfactory interest rate spreads.
While the current administration has generally favored less regulatory burden on financial institutions, the priorities of the current administration or of future administrations could change Certain aspects of future regulatory or legislative changes, if enacted or adopted, may impact the profitability of our business activities by requiring more oversight or changing certain of our business practices, including our ability to offer new products, obtain financing, attract deposits, make loans, and achieve satisfactory interest rate spreads.
These factors may include disruptions in the financial markets or negative expectations about the industry’s prospects. Our access to funding sources could also be affected by regulatory actions against us or by a decrease in the level of our business activity due to a downturn in the Louisiana economy or in economic conditions generally.
Our access to funding sources could also be affected by regulatory actions against us or by a decrease in the level of our business activity due to a downturn in the Louisiana economy or in economic conditions generally.
As of December 31, 2024, our directors and executive officers beneficially owned approximately 15.9% of our issued and outstanding shares of common stock.
As of December 31, 2025, our directors and named executive officers beneficially owned approximately 16.5% of our issued and outstanding shares of common stock.
Our business and operations, which primarily consist of lending money to customers in the form of loans, borrowing money from customers in the form of deposits, and investing in securities, are sensitive to general business and economic conditions in the U.S. Our business environment can be impacted by uncertainty about the federal fiscal and monetary policymaking process.
Our business and operations, which primarily consist of lending money to customers in the form of loans, borrowing money from customers in the form of deposits, and investing in securities, are sensitive to general business and economic conditions in the U.S.
While we believe the quantitative techniques and approaches of these models improve our decision-making, they also create the possibility that faulty data, flawed quantitative approaches, or misunderstanding or misuse of their outputs could negatively impact our decision-making ability or, if we become subject to regulatory stress-testing in the future, cause adverse regulatory scrutiny.
While we believe the quantitative techniques and approaches of these models improve our decision-making, they also create the possibility that faulty data, flawed quantitative approaches, or misunderstanding or misuse of their outputs could negatively impact our decision-making ability or, if we become subject to regulatory stress-testing in the future, cause adverse regulatory scrutiny. 28 Table of Contents We utilize third-party companies to support our investment group, and we may be adversely affected by the condition or performance of our third-party brokerage partners.
If we are covered by securities analysts and are the subject of an unfavorable report, the price of our common stock may decline. 30 Table of Contents Risks Related to the Regulation of Our Industry We operate in a highly regulated environment and the laws and regulations that govern our operations, corporate governance, executive compensation, and accounting principles, or changes in them, or our failure to comply with them, could subject us to regulatory action or penalties.
Risks Related to the Regulation of Our Industry We operate in a highly regulated environment and the laws and regulations that govern our operations, corporate governance, executive compensation, and accounting principles, or changes in them, or our failure to comply with them, could subject us to regulatory action or penalties.
Real estate values in many Louisiana markets have experienced periods of fluctuation over the last several years. As of December 31, 2024, $1.65 billion, or 79.7%, of loans HFI were secured by real estate as the primary component of collateral. We also make loans secured by real estate as a supplemental source of collateral.
Real estate values in our markets have experienced periods of fluctuation in the past. As of December 31, 2025, $1.77 billion, or 78.7%, of loans HFI were secured by real estate as the primary component of collateral. We also make loans secured by real estate as a supplemental source of collateral.
We may not be able to implement our expansion strategy, which may adversely affect our ability to maintain our historical earnings trends. Our strategy is to expand market share in existing markets and engage in opportunistic new market de novo expansion, supplemented by strategic acquisitions of financial institutions in desirable geographic areas with customer-oriented, compatible philosophies.
Our strategy is to expand market share in existing markets and engage in opportunistic new market de novo expansion, supplemented by strategic acquisitions of financial institutions in desirable geographic areas with customer-oriented, compatible philosophies.
In addition, future changes in tax laws may have an adverse effect on our income tax expense, deferred tax balances, and the amount of taxes payable, which could have an adverse effect on our business and profitability. New activities and expansion require regulatory approvals, and failure to obtain them may restrict our growth.
In addition, future changes in tax laws may have an adverse effect on our income tax expense, deferred tax balances, and the amount of taxes payable, which could have an adverse effect on our business and profitability.
The risks associated with these matters are continuing to evolve rapidly and the ultimate impact on our business is difficult to predict with any certainty.
The risks associated with these matters are continuing to evolve rapidly and the ultimate impact on our business is difficult to predict with any certainty. The development and use of AI presents risks and challenges that may adversely affect our business.
A breach of our security that results in unauthorized access to our data could expose us to disruption or challenges relating to our daily operations as well as to data loss, litigation, fines, penalties, damages, inquiries, examinations, investigations, significant increases in compliance costs, and reputational damage, which could cause us to lose customers or potential customers. 27 Table of Contents We rely on third parties to provide key components of our business infrastructure, and a failure of these parties to perform for any reason could disrupt our operations.
A breach of our security that results in unauthorized access to our data could expose us to disruption or challenges relating to our daily operations as well as to data loss, litigation, fines, penalties, damages, inquiries, examinations, investigations, significant increases in compliance costs, and reputational damage, which could cause us to lose customers or potential customers.
Further, any new laws, rules, and regulations could make compliance more difficult or expensive. For additional information regarding laws and regulation to which our business is subject, see “Item 1. Business - Supervision and Regulation.” Legislative and regulatory actions taken now or in the future, may increase our costs.
For additional information regarding regulatory capital standards to which our business is subject, see “Item 1. Business - Supervision and Regulation.” Legislative and regulatory actions taken now or in the future, may increase our costs.
A downturn in the housing market coupled with elevated unemployment rates may also result in a decline in demand for our products and services. In addition, in a declining interest rate environment, there may be an increase in prepayments on residential loans as borrowers refinance their loans at lower rates, which may adversely affect our business and profitability.
In addition, in a declining interest rate environment, there may be an increase in prepayments on residential loans as borrowers refinance their loans at lower rates, which may adversely affect our business and profitability.
We may also be required to open or sell banking centers as a condition to receiving regulatory approval, which condition may not be acceptable to us or, if acceptable to us, may reduce the benefit of any acquisition. De novo expansion and any acquisitions carry with them numerous risks, including the inability to obtain all required regulatory approvals.
We may also be required to open or sell banking centers as a condition to receiving regulatory approval, which condition may not be acceptable to us or, if acceptable to us, may reduce the benefit of any acquisition.
To provide a broader range of investment products and services to our customers through our investment group, we partner with third parties who are licensed and registered to serve in those capacities. The investment products and services provided to our customers through our investment group, by virtue of these third-party channels generally are not insured by the FDIC.
We are not registered with the SEC as an investment advisor or broker-dealer. To provide a broader range of investment products and services to our customers through our investment group, we partner with third parties who are licensed and registered to serve in those capacities.
Also, as consolidation of the financial services industry continues, the number of appropriate targets may decrease and the price for potential acquisitions may increase, which could reduce our potential returns and reduce the attractiveness of these opportunities to us.
Also, as consolidation of the financial services industry continues, the number of appropriate targets may decrease and the price for potential acquisitions may increase, which could reduce our potential returns and reduce the attractiveness of these opportunities to us. In addition, we cannot provide assurance that we will be able to successfully integrate any business or assets we acquire.
As we continue to grow, our success will be partially dependent upon our ability to address the needs of our customers and enhance operational efficiencies through the use of technology. We may experience operational challenges as we implement these new technology products or enhancements.
As we continue to grow, our success will be partially dependent upon our ability to address the needs of our customers and enhance operational efficiencies. From time to time, we may implement new lines of business; offer new products, services, or technologies; or offer product enhancements within our existing lines of business.
As can be seen from events in 2023 regarding the operations and failures of other banks in the U.S., an inability to mitigate deposit withdrawals and to raise funds through new deposits, borrowings, the sale of investment securities at or above the value of such securities on our books, and other sources could have a material adverse effect on liquidity.
An inability to mitigate deposit withdrawals and to raise funds through new deposits, borrowings, the sale of investment securities at or above the value of such securities on our books, and other sources could have a material adverse effect on liquidity. Our most important source of funds is deposits. Historically, our deposits have provided a stable source of funds.
Our other primary sources of liquidity consist of cash flows from operations, loan repayments, maturities and sales of investment securities, and proceeds from the issuance and sale of our equity to investors.
Our other primary sources of liquidity consist of cash flows from operations, loan repayments, maturities and sales of investment securities, and proceeds from the issuance and sale of our equity to investors. As a secondary source of liquidity, we have the ability to borrow overnight funds from other financial institutions with whom we have a correspondent relationship.
Appraisals and other valuation techniques we use in evaluating and monitoring loans secured by real property, OREO, and repossessed personal property may not accurately describe the net value of the asset. In considering whether to make a loan secured by real property, we generally require an appraisal of the property.
Such regulatory agencies may require us to recognize future charge-offs. 22 Table of Contents Appraisals and other valuation techniques we use in evaluating and monitoring loans secured by real property, OREO, and repossessed personal property may not accurately describe the net value of the asset.
A significant portion of our business is generated from Louisiana markets that have been, and may continue to be, damaged by major hurricanes, floods, tropical storms, tornadoes, ice storms, and other natural disasters. Natural disasters can disrupt our operations, cause widespread property damage, and severely depress the local economies in which we operate.
We are a community banking franchise concentrated in Louisiana. A significant portion of our business is generated from Louisiana markets that have been, and may continue to be, impacted by major hurricanes, floods, tropical storms, tornadoes, ice storms, and other natural disasters.
The failure of these systems, or the termination of a third-party software license or service agreement on which any of these systems is based, could interrupt our operations. Because our IT and telecommunications systems interface with and depend on third-party systems, we could experience service denials if demand for such services exceeds capacity.
Because our IT and telecommunications systems interface with and depend on third-party systems, we could experience service denials if demand for such services exceeds capacity.
Higher interest rates could adversely affect the ability of borrowers of floating rate loans to meet their higher payment obligations, which could result in an increase in delinquencies and charge-offs, and increase the cost of deposits. 23 Table of Contents The fair market value of our securities portfolio, the investment income, and the cash flows from these securities also fluctuate depending on general economic and market conditions.
Higher interest rates could adversely affect the ability of borrowers of floating rate loans to meet their higher payment obligations, which could result in an increase in delinquencies and charge-offs. Higher interest rates could also increase the cost of deposits.
Historically, we have not utilized brokered or internet deposits to meet liquidity needs. Our access to funding sources in amounts adequate to finance or capitalize our activities or on terms that are acceptable to us, could be impaired by factors that affect us, the financial services industry, or the economy in general.
Our access to funding sources in amounts adequate to finance or capitalize our activities or on terms that are acceptable to us, could be impaired by factors that affect us, the financial services industry, or the economy in general. These factors may include disruptions in the financial markets or negative expectations about the industry’s prospects.
Changes in market values impact the net unrealized gains and losses on securities AFS and the related accumulated other comprehensive income in equity. Also, any such losses could be realized into earnings if it becomes necessary to sell securities AFS in a loss position.
Also, any such losses could be realized into earnings if it becomes necessary to sell securities AFS in a loss position.
Repurchases are subject to a nondeductible excise tax under the Inflation Reduction Act of 2022 equal to 1.0% of the fair market value of the shares repurchased, subject to certain limitations. Our corporate governance documents, and certain corporate and banking laws applicable to us, could make a takeover more difficult.
Repurchases are subject to a nondeductible excise tax under the Inflation Reduction Act of 2022 equal to 1.0% of the fair market value of the shares repurchased, subject to certain limitations. Our directors and named executive officers have significant control over our business.
A commitment to extend credit is a formal agreement to lend funds to a customer as long as there is no violation of any condition established under the agreement. The actual borrowing needs of our customers under these credit commitments have historically been lower than the contractual amount of the commitments.
The borrowing needs of our customers may increase, especially during a challenging economic environment, which could result in increased borrowing against our contractual obligations to extend credit. A commitment to extend credit is a formal agreement to lend funds to a customer as long as there is no violation of any condition established under the agreement.
Because of the credit profile of our customers, we typically have a substantial amount of total unfunded credit commitments, which is not reflected on our balance sheet. As of December 31, 2024, we had $521.5 million in unfunded credit commitments to our customers.
The actual borrowing needs of our customers under these credit commitments have historically been lower than the contractual amount of the commitments. Because of the credit profile of our customers, we typically have a substantial amount of total unfunded credit commitments, which is not reflected on our balance sheet.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeThe cybersecurity component of our ERM program is designed around the FFIEC Information Security IT Examination Handbook, the FFIEC Business Continuity Planning Handbook, and the FFIEC Cybersecurity Assessment Tool, and is designed to protect the security, availability, integrity, and confidentiality of our computer systems, networks, software, and information assets, including client and other sensitive data.
Biggest changeThe cybersecurity component of our ERM program is designed around the NIST Cybersecurity Framework Version 2.0 and is aligned with FFIEC guidance, including the Information Security and Business Continuity Management booklets, and is designed to protect the security, availability, integrity, and confidentiality of our computer systems, networks, software, and information assets, including client and other sensitive data.
The cybersecurity component of our ERM program consists of several elements including: • A risk assessment process that identifies and prioritizes material cybersecurity risks, defines and evaluates the effectiveness of controls to mitigate the risks, and reports results to executive management and the board of directors. • A third-party managed detection and response service, which monitors the security of our information systems around-the-clock, including intrusion detection and alerting. • A dedicated information security team covering all critical cyber defense functions such as engineering, data protection, identity and access management, insider risk management, security operations, threat emulation, and threat intelligence. • A training program that educates employees about cybersecurity risks and how to protect themselves from cyberattacks. • An awareness program that keeps employees informed about cybersecurity threats and how to stay safe online. • An incident response plan that outlines the steps we will take to respond to a cybersecurity incident, which is tested on a periodic basis.
The cybersecurity component of our ERM program consists of several elements including: • A risk assessment process that identifies and prioritizes material cybersecurity risks, defines and evaluates the effectiveness of controls to mitigate the risks, and reports results to executive management and the board of directors. • A third-party managed detection and response service, which monitors the security of our information systems around-the-clock, including intrusion detection and alerting. • A dedicated information security team covering all critical cyber defense functions such as engineering, data protection, identity and access management, insider risk management, security operations, threat emulation, and threat intelligence. • A training program that educates employees about cybersecurity risks and how to protect themselves from cyber-attacks. • An awareness program that keeps employees informed about cybersecurity threats and how to stay safe online. • An incident response plan that outlines the steps we will take to respond to a cybersecurity incident, which is tested on a periodic basis.
For further discussion of risks from cybersecurity threats, see “Item 1A. Risk Factors” in this Report. 33 Table of Contents Governance Our IT Director and ISO are primarily responsible for the cybersecurity component and are key members of the ERM program, reporting directly to the Chief Operating Officer and Chief Executive Officer, respectively.
For further discussion of risks from cybersecurity threats, see “Item 1A. Risk Factors” in this Report. 34 Table of Contents Governance Our IT Director and ISO are primarily responsible for the cybersecurity component and are key members of the ERM program, reporting directly to the Chief Operating Officer and Chief Executive Officer, respectively.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeBanking centers are located in the following Louisiana markets: Central, which includes the Alexandria MSA; Northwest, which includes the Shreveport-Bossier City MSA; Capital, which includes the Baton Rouge MSA; Southwest, which includes the Lake Charles MSA; the Northshore, which includes Covington; Acadiana, which includes the Lafayette MSA; and New Orleans.
Biggest changeBanking centers are located in the following Louisiana markets: Central, which includes the Alexandria MSA; Northwest, which includes the Shreveport-Bossier City MSA; Capital, which includes the Baton Rouge MSA; Southwest, which includes the Lake Charles MSA; the Northshore, which includes the Slidell-Mandeville-Covington MSA; Acadiana, which includes the Lafayette MSA; and New Orleans, which includes the New Orleans-Metairie MSA.
As of December 31, 2024, the Bank owned its main office building, its operations center, and 22 of its banking centers. The remaining banking office facilities were subject to lease agreements. Our facilities are in good condition and are adequate to meet our operating needs for the foreseeable future.
As of December 31, 2025, the Bank owned its main office building, its operations center, and 22 of its banking centers. The remaining banking office facilities were subject to lease agreements. Our facilities are in good condition and are adequate to meet our operating needs for the foreseeable future.
Item 2. Properties As of December 31, 2024, Red River Bank operated from a network of 28 banking centers throughout Louisiana and one combined LDPO in New Orleans, Louisiana. The Bank’s principal executive office is located at 1412 Centre Court Drive, Suite 301, Alexandria, Louisiana 71301.
Item 2. Properties As of December 31, 2025, Red River Bank operated from a network of 28 banking centers throughout Louisiana and two combined LDPOs, one each in New Orleans, Louisiana and Lafayette, Louisiana. The Bank’s principal executive office is located at 1412 Centre Court Drive, Suite 301, Alexandria, Louisiana 71301.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeThe 2024 stock repurchase program authorized us to purchase up to $5.0 million of our outstanding shares of common stock from January 1, 2024 through December 31, 2024. Repurchases were made from time to time in the open market at prevailing prices and based on market conditions, and in privately negotiated transactions.
Biggest changeRepurchases were made from time to time in the open market at prevailing prices and based on market conditions, and in privately negotiated transactions. (3) On December 18, 2025, we announced that our board of directors approved the renewal and increase of the 2025 stock repurchase program.
The graph below represents $100 invested in each of our common stock, the Nasdaq Composite Index, and the S&P US Small Cap Banks Index on December 31, 2019, and reflects those values as of the close of trading and assumes the reinvestment of dividends, if any.
The graph below represents $100 invested in each of our common stock, the Nasdaq Composite Index, and the S&P US Small Cap Banks Index on December 31, 2020, and reflects those values as of the close of trading and assumes the reinvestment of dividends, if any.
The information provided in this section shall not be deemed to be incorporated by reference into any filing under the Securities Act or the Exchange Act. Item 6. [Reserved] 36 Table of Contents
The information provided in this section shall not be deemed to be incorporated by reference into any filing under the Securities Act or the Exchange Act. Item 6. [Reserved] 37 Table of Contents
Business - Supervision and Regulation - Bank Holding Company Regulation - Regulatory Restrictions on Dividends; Source of Strength” and “- Bank Regulation - Regulatory Restrictions on Dividends.” Issuer Purchases of Equity Securities Our purchases of shares of common stock made during the quarter under our publicly announced stock repurchase program are summarized in the table below: (dollars in thousands, except per share data) Period Total Number of Shares Purchased Average Price Paid per Share (1) Total Number of Shares Purchased as Part of Publicly Announced Program Approximate Dollar Value of Shares that May Yet Be Purchased Under the Program (2)(4)(5) October 1 - October 31, 2024 — $ — — $ 1,224 November 1 - November 30, 2024 (3) 50,632 $ 50.04 632 $ 1,103 December 1 - December 31, 2024 — $ — — $ 1,103 Total 50,632 $ 50.04 632 $ 1,103 (1) Average price paid per share includes the commission expense paid on the share repurchases, but excludes the excise tax recorded on the share repurchases.
Business - Supervision and Regulation - Bank Holding Company Regulation - Regulatory Restrictions on Dividends; Source of Strength” and “- Bank Regulation - Regulatory Restrictions on Dividends.” Issuer Purchases of Equity Securities Our purchases of shares of common stock made during the quarter are summarized in the table below: (dollars in thousands, except per share data) Period Total Number of Shares Purchased Average Price Paid per Share (1) Total Number of Shares Purchased as Part of Publicly Announced Program Approximate Dollar Value of Shares that May Yet Be Purchased Under the Program (2)(3)(4) October 1 - October 31, 2025 — $ — — $ 4,337 November 1 - November 30, 2025 — $ — — $ 4,337 December 1 - December 31, 2025 — $ — — $ 4,337 Total — $ — — $ 4,337 (1) Average price paid per share includes the commission expense, if any, paid on the share repurchases, but excludes the excise tax recorded on the share repurchases.
Prior to that date, there was no public trading market for our common stock. Holders of Record As of February 28, 2025, there were approximately 232 holders of record of our common stock. 34 Table of Contents Dividends and Dividend Policy We anticipate paying quarterly dividends on our common stock, subject to approval by our board of directors.
Prior to that date, there was no public trading market for our common stock. 35 Table of Contents Holders of Record As of February 27, 2026, there were approximately 213 holders of record of our common stock. Dividends and Dividend Policy We anticipate paying quarterly dividends on our common stock, subject to approval by our board of directors.
(4) On December 19, 2024, we announced that our board of directors approved the renewal of the 2024 stock repurchase program. The renewed stock repurchase program has similar terms to the 2024 stock repurchase program and authorizes us to purchase up to $5.0 million of our outstanding shares of common stock from January 1, 2025 through December 31, 2025.
(2) On December 19, 2024, we announced that our board of directors approved the renewal of the 2024 stock repurchase program. The 2025 stock repurchase program authorized us to purchase up to $5.0 million of our outstanding shares of common stock from January 1, 2025 through December 31, 2025.
The excise tax includes the tax on the shares repurchased during 2023 and 2024 that reduced the availability under the 2024 stock repurchase program. 35 Table of Contents Stock Performance Graph The following graph shows a comparison of the cumulative total shareholder return for our common stock, the Nasdaq Composite Index, and the S&P US Small Cap Banks Index between December 31, 2019, and December 31, 2024.
(4) The approximate dollar value of shares that may yet be purchased under the program is reduced by the amount of the commission expense and the excise tax recorded on the share repurchases. 36 Table of Contents Stock Performance Graph The following graph shows a comparison of the cumulative total shareholder return for our common stock, the Nasdaq Composite Index, and the S&P US Small Cap Banks Index between December 31, 2020, and December 31, 2025.
Repurchases may be made from time to time in the open market at prevailing prices and based on market conditions, or in privately negotiated transactions. (5) The approximate dollar value of shares that may yet be purchased under the program is reduced by the amount of the commission expense and the excise tax recorded on the share repurchases.
Repurchases may be made from time to time in the open market at prevailing prices and based on market conditions, or in privately negotiated transactions.
Removed
(2) On December 14, 2023, we announced that our board of directors approved the renewal of the 2023 stock repurchase program that was completed in the fourth quarter of 2023 after reaching its purchase limit.
Added
The renewed and increased 2026 stock repurchase program has similar terms to the 2025 stock repurchase program and authorizes us to purchase up to $10.0 million of our outstanding shares of common stock from January 1, 2026 through December 31, 2026.
Removed
(3) On November 5, 2024, we entered into a privately negotiated stock repurchase agreement for the purchase of 50,000 shares of our common stock for a total purchase price of approximately $2.5 million. The repurchase was supplemental to the 2024 stock repurchase program and did not impact the amount of permitted repurchases thereunder.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeThe 2025 stock repurchase program authorizes us to purchase up to $5.0 million of our outstanding shares of common stock from January 1, 2025 through December 31, 2025. • We expanded organically throughout Louisiana with the following events: ◦ In the second quarter of 2024, we opened a second Red River Bank full-service banking center in the New Orleans, Louisiana market. ◦ In the fourth quarter of 2024, Red River Bank purchased property in Lafayette, Louisiana and plans to build a new banking center at that location, which would be our second banking center in the Acadiana market. • In 2024, the Company and Red River Bank, were included in various financial industry ranking reports: ◦ S&P Global Market Intelligence ranked Red River Bank 15th of the top 50 best-performing community banks in 2023 with assets between $3.0 and $10.0 billion. ◦ Bank Director Magazine ranked the Company 9th in the top 30 best-performing publicly traded financial institutions with assets less than $5.0 billion. ◦ The American Banker publication included Red River Bank in its “2024 Best Banks to Work For” ranking.
Biggest changeThe 2026 stock repurchase program authorizes us to purchase up to $10.0 million of our outstanding shares of common stock from January 1, 2026 through December 31, 2026. • In 2025 and early 2026, we also completed various projects and other events: ◦ In the first quarter of 2025, Red River Bank’s online, mobile banking, and bill payment systems were upgraded in order to improve our digital services for all customers. ◦ In the first quarter of 2025, S&P Global Market Intelligence ranked Red River Bank 14th of the top 50 best deposit franchises in 2024 for banks with assets between $3.0 and $10.0 billion. ◦ On March 14, 2025, our board of directors and executive management had the privilege of ringing the closing bell at the Nasdaq Market Site in New York to commemorate being a public company for six years. ◦ In the second quarter of 2025, we changed our credit card program provider to align with our debit card program provider. ◦ In the third quarter of 2025, we opened an LDPO in the Pinhook Tower building in Lafayette, Louisiana. ◦ In early January 2026, we held a ground-breaking ceremony for our second full-service banking center in the Acadiana market.
As of December 31, 2024 and 2023, we had no outstanding borrowings under these agreements. Federal Reserve Bank’s Discount Window . In 2023, we pledged securities to have borrowing access to the Federal Reserve Bank’s Discount Window facility.
As of December 31, 2025 and 2024, we had no outstanding borrowings under these agreements. Federal Reserve Bank’s Discount Window . In 2023, we pledged securities to have borrowing access to the Federal Reserve Bank’s Discount Window facility.
A decline in market area economic conditions, deterioration of asset quality, or growth in portfolio size could cause the allowance to become inadequate, and material additional provisions for credit losses could be required. 54 Table of Contents The following table displays the allocation of the ACL among the loan classifications as of the dates indicated.
A decline in market area economic conditions, deterioration of asset quality, or growth in portfolio size could cause the allowance to become inadequate, and material additional provisions for credit losses could be required. 55 Table of Contents The following table displays the allocation of the ACL among the loan classifications as of the dates indicated.
(3) Net interest margin FTE includes an FTE adjustment using a 21.0% federal income tax rate on tax-exempt securities and tax-exempt loans. 41 Table of Contents Rate/Volume Analysis Increases and decreases in interest income and interest expense result from changes in average balances (volume) of interest-earning assets and interest-bearing liabilities, as well as changes in average interest rates.
(3) Net interest margin FTE includes an FTE adjustment using a 21.0% federal income tax rate on tax-exempt securities and tax-exempt loans. 42 Table of Contents Rate/Volume Analysis Increases and decreases in interest income and interest expense result from changes in average balances (volume) of interest-earning assets and interest-bearing liabilities, as well as changes in average interest rates.
The most directly comparable GAAP financial measure for tangible book value per share is book value per share. As a result of previous acquisitions, we have a small amount of intangible assets. As of December 31, 2024, total intangible assets were $1.5 million, which is less than 1.0% of total assets. Tangible Common Equity to Tangible Assets .
The most directly comparable GAAP financial measure for tangible book value per share is book value per share. As a result of previous acquisitions, we have a small amount of intangible assets. As of December 31, 2025, total intangible assets were $1.5 million, which is less than 1.0% of total assets. Tangible Common Equity to Tangible Assets .
Our repricing opportunity is captured in a gap analysis, which is the process by which we measure the repricing gap between interest rate-sensitive assets versus interest rate-sensitive liabilities. As of December 31, 2024, the reported percentage of changes in net interest income and fair value of equity remained within the policy thresholds.
Our repricing opportunity is captured in a gap analysis, which is the process by which we measure the repricing gap between interest rate-sensitive assets versus interest rate-sensitive liabilities. As of December 31, 2025, the reported percentage of changes in net interest income and fair value of equity remained within the policy thresholds.
December 31, 2024 December 31, 2023 % Change in Net Interest Income % Change in Fair Value of Equity % Change in Net Interest Income % Change in Fair Value of Equity Change in Interest Rates (bps) +300 4.7 % (0.4 %) 4.8 % (5.3 %) +200 3.2 % 0.3 % 3.5 % (3.0 %) +100 1.6 % 0.6 % 2.3 % (1.0 %) Base — % — % — % — % -100 (1.5 %) (0.2 %) (0.4 %) 0.3 % -200 (4.4 %) (4.1 %) (3.5 %) (1.4 %) -300 (7.2 %) (11.1 %) (7.6 %) (5.2 %) The results above, as of December 31, 2024 and 2023, demonstrate that our balance sheet is asset sensitive, which means our assets have the opportunity to reprice at a faster pace than our liabilities, over the 12-month horizon.
December 31, 2025 December 31, 2024 % Change in Net Interest Income % Change in Fair Value of Equity % Change in Net Interest Income % Change in Fair Value of Equity Change in Interest Rates (bps) +300 5.3 % 1.0 % 4.7 % (0.4 %) +200 3.7 % 1.5 % 3.2 % 0.3 % +100 2.0 % 1.4 % 1.6 % 0.6 % Base — % — % — % — % -100 (2.3 %) (2.1 %) (1.5 %) (0.2 %) -200 (5.1 %) (7.5 %) (4.4 %) (4.1 %) -300 (8.1 %) (16.0 %) (7.2 %) (11.1 %) The results above, as of December 31, 2025 and 2024, demonstrate that our balance sheet is asset sensitive, which means our assets have the opportunity to reprice at a faster pace than our liabilities, over the 12-month horizon.
The following tables set forth selected historical consolidated financial information for each of the periods indicated. The historical financial information as of and for the years ended December 31, 2024, 2023, and 2022, except for the selected ratios, is derived from our audited consolidated financial statements. Our historical results may not be indicative of our future performance.
The following tables set forth selected historical consolidated financial information for each of the periods indicated. The historical financial information as of and for the years ended December 31, 2025, 2024, and 2023, except for the selected ratios, is derived from our audited consolidated financial statements. Our historical results may not be indicative of our future performance.
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations The purpose of this discussion and analysis is to focus on significant changes in financial condition and results of operations of Red River Bancshares, Inc. on a consolidated basis during the year ended December 31, 2024 and selected prior periods.
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations The purpose of this discussion and analysis is to focus on significant changes in the financial condition and results of operations of Red River Bancshares, Inc. on a consolidated basis during the year ended December 31, 2025 and selected prior periods.
As of December 31, 2024, other than securities issued by U.S. government agencies or government-sponsored enterprises, our securities portfolio did not contain securities of any one issuer with an aggregate book value in excess of 10.0% of our stockholders’ equity.
As of December 31, 2025, other than securities issued by U.S. government agencies or government-sponsored enterprises, our securities portfolio did not contain securities of any one issuer with an aggregate book value in excess of 10.0% of our stockholders’ equity.
Tax-exempt loans are made to political subdivisions of the State of Louisiana including parishes, municipalities, utility districts, school districts, and development authorities. These loans are typically secured by and paid 49 Table of Contents for by ad valorem taxes.
Tax-exempt loans are made to political subdivisions of the State of Louisiana including parishes, municipalities, utility districts, school districts, and development authorities. These loans are typically secured by and paid 50 Table of Contents for by ad valorem taxes.
Liquidity levels are dependent on our operating, financing, lending, and investing activities during any given period. Access to purchased funds from correspondent banks and overnight advances from the FHLB of Dallas and the Federal 58 Table of Contents Reserve Bank of Atlanta are also available. Purchased funds from correspondent banks and overnight advances can be utilized to meet funding obligations.
Liquidity levels are dependent on our operating, financing, lending, and investing activities during any given period. Access to purchased funds from correspondent banks and overnight advances from the FHLB of Dallas and the Federal Reserve Bank of Atlanta are also available. Purchased funds from correspondent banks and overnight advances can be utilized to meet funding obligations.
Actual results will differ from the model’s simulated results due to timing, magnitude, and frequency of interest rate changes, as well as changes in market conditions and the application and timing of various management strategies and the slope of the yield curve. Impact of Inflation Our consolidated financial statements and related notes included in “Item 8.
Actual results will differ from the model’s simulated results due to timing, magnitude, and frequency of interest rate changes, as well as changes in market conditions and the application and timing of various management strategies and the slope of the yield curve. 61 Table of Contents Impact of Inflation Our consolidated financial statements and related notes included in “Item 8.
The following table presents the dollar amount of changes in interest income and interest expense for major components of interest-earning assets and interest-bearing liabilities for the years ended December 31, 2024 and 2023.
The following table presents the dollar amount of changes in interest income and interest expense for major components of interest-earning assets and interest-bearing liabilities for the years ended December 31, 2025 and 2024.
A discussion regarding our results of operations for the year ended December 31, 2023, compared to the year ended December 31, 2022, can be found in “Part II - Item 7.
A discussion regarding our results of operations for the year ended December 31, 2024, compared to the year ended December 31, 2023, can be found in “Part II - Item 7.
Industry Concentrations Industry concentrations, based on NAICS, stated as a percentage of loans HFI are presented below: December 31, 2024 Health care 8.1 % Investor one-to-four family and multifamily 6.0 % Construction 4.3 % Retail trade 3.4 % Hospitality services 2.9 % Public administration 2.0 % Finance and insurance 1.8 % Religious and other nonprofit 1.6 % Energy 1.4 % Manufacturing 0.6 % All other 67.9 % Total loans HFI by industry concentration 100.0 % Health care loans are our largest industry concentration and are made up of a diversified portfolio of health care providers.
Industry Concentrations Industry concentrations, based on NAICS, stated as a percentage of loans HFI are presented below: December 31, 2025 Health care 8.6 % Investor one-to-four family and multifamily 5.5 % Construction 4.6 % Retail trade 2.8 % Hospitality services 2.6 % Finance and insurance 1.9 % Public administration 1.6 % Religious and other nonprofit 1.3 % Energy 1.2 % Manufacturing 0.6 % All other 69.3 % Total loans HFI by industry concentration 100.0 % Health care loans are our largest industry concentration and are made up of a diversified portfolio of health care providers.
For the years ended December 31, 2024 and 2023, liquidity needs were primarily met by core deposits, security and loan maturities, and cash flows from amortizing security and loan portfolios.
For the years ended December 31, 2025 and 2024, liquidity needs were primarily met by core deposits, security and loan maturities, and cash flows from amortizing security and loan portfolios.
Banking centers are located in the following Louisiana markets: Central, which includes the Alexandria MSA; Northwest, which includes the Shreveport-Bossier City MSA; Capital, which includes the Baton Rouge MSA; Southwest, which includes the Lake Charles MSA; the Northshore, which includes Covington; Acadiana, which includes the Lafayette MSA; and New Orleans.
Banking centers are located in the following Louisiana markets: Central, which includes the Alexandria MSA; Northwest, which includes the Shreveport-Bossier City MSA; Capital, which includes the Baton Rouge MSA; Southwest, which includes the Lake Charles MSA; the Northshore, which includes the Slidell-Mandeville-Covington MSA; Acadiana, which includes the Lafayette MSA; and New Orleans, which includes the New Orleans-Metairie MSA.
RECENT ACCOUNTING PRONOUNCEMENTS See “Item 8. Financial Statements and Supplementary Data - Note 1. Significant Accounting Policies - Accounting Standards Adopted in 2024” and “- Recent Accounting Pronouncements.”
RECENT ACCOUNTING PRONOUNCEMENTS See “Item 8. Financial Statements and Supplementary Data - Note 1. Significant Accounting Policies - Accounting Standards Adopted in 2025” and “- Recent Accounting Pronouncements.”
Also, as of December 31, 2024, 8.1% of interest-bearing transaction deposits had floating rates, which adjust with market rates.
Also, as of December 31, 2025, 8.1% of interest-bearing transaction deposits had floating rates, which adjust with market rates.
(6) We calculate tangible common equity as total stockholders’ equity, less intangible assets, net of accumulated amortization, and we calculate tangible assets as total assets, less intangible assets, net of accumulated amortization. 39 Table of Contents RESULTS OF OPERATIONS The following is a discussion of results of operations for the year ended December 31, 2024, compared to the year ended December 31, 2023.
(6) We calculate tangible common equity as total stockholders’ equity, less intangible assets, net of accumulated amortization, and we calculate tangible assets as total assets, less intangible assets, net of accumulated amortization. 40 Table of Contents RESULTS OF OPERATIONS The following is a discussion of results of operations for the year ended December 31, 2025, compared to the year ended December 31, 2024.
We currently are classified as having “blanket lien collateral status,” which means that advances can be executed at any time without further collateral requirements. As of December 31, 2024 and 2023, our net borrowing capacity from the FHLB of Dallas was $931.6 million and $829.2 million, respectively.
We currently are classified as having “blanket lien collateral status,” which means that advances can be executed at any time without further collateral requirements. As of December 31, 2025 and 2024, our net borrowing capacity from the FHLB of Dallas was $906.6 million and $931.6 million, respectively.
Some instruments may not be reflected in the accompanying consolidated financial statements until they are funded, although they expose us to varying degrees of credit risk and interest rate risk in much the same way as funded loans. We may also enter into contractual obligations.
These commitments involve elements of credit risk, interest rate risk, and liquidity risk. Some instruments may not be reflected in the accompanying consolidated financial statements until they are funded, although they expose us to varying degrees of credit risk and interest rate risk in much the same way as funded loans. We may also enter into contractual obligations.
Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on March 15, 2024.
Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on March 14, 2025.
Geographic Markets As of December 31, 2024, the Bank operated in seven geographic markets throughout the state of Louisiana.
Geographic Markets As of December 31, 2025, the Bank operated in seven geographic markets throughout the state of Louisiana.
The renewed program authorizes us to purchase up to $5.0 million of our outstanding shares of common stock from January 1, 2025 through December 31, 2025. Repurchases may be made from time to time in the open market at prevailing prices and based on market conditions, or in privately negotiated transactions.
The renewed and increased 2026 stock repurchase program authorizes us to purchase up to $10.0 million of our outstanding shares of common stock from January 1, 2026 through December 31, 2026. Repurchases may be made from time to time in the open market at prevailing prices and based on market conditions, or in privately negotiated transactions.
We had no outstanding borrowings as of December 31, 2024 or 2023. Federal Home Loan Bank Advances. We utilize the FHLB of Dallas as needed as a funding source. As of December 31, 2024 and 2023, availability under our FHLB of Dallas line was $1.04 billion and $934.1 million, respectively.
We had no outstanding borrowings as of December 31, 2025 or 2024. Federal Home Loan Bank Advances. We utilize the FHLB of Dallas as needed as a funding source. As of December 31, 2025 and 2024, availability under our FHLB of Dallas line was $1.03 billion and $1.04 billion, respectively.
These amounts were estimated based on the same methodologies and assumptions used for regulatory reporting purposes. Also, as of December 31, 2024, our estimated uninsured deposits, excluding collateralized public entity deposits, were approximately $667.6 million, or 23.8% of total deposits, compared to $643.6 million, or 23.0% of total deposits, as of December 31, 2023.
These amounts were estimated based on the same methodologies and assumptions used for regulatory reporting purposes. Also, as of December 31, 2025, our estimated uninsured deposits, excluding collateralized public entity deposits, were approximately $722.0 million, or 24.4% of total deposits, compared to $667.6 million, or 23.8% of total deposits, as of December 31, 2024.
Regulatory Capital Requirements.” LIQUIDITY AND ASSET-LIABILITY MANAGEMENT Liquidity As of December 31, 2024, we had sufficient liquid assets available and $1.62 billion accessible from other liquidity sources.
Regulatory Capital Requirements.” LIQUIDITY AND ASSET-LIABILITY MANAGEMENT Liquidity As of December 31, 2025, we had sufficient liquid assets available and $1.66 billion accessible from other liquidity sources.
Our efficiency ratio for the year ended December 31, 2024, was 60.29%, compared to 59.39% for the year ended December 31, 2023. Net Interest Income and Net Interest Margin Our operating results depend primarily on our net interest income. Fluctuations in market interest rates impact the yield on interest-earning assets and the rate paid on interest-bearing liabilities.
Our efficiency ratio for the year ended December 31, 2025, was 55.84%, compared to 60.29% for the year ended December 31, 2024. Net Interest Income and Net Interest Margin Our operating results depend primarily on our net interest income. Fluctuations in market interest rates impact the yield on interest-earning assets and the rate paid on interest-bearing liabilities.
As of December 31, 2024, the estimated fair value of securities AFS was $550.1 million. The carrying values of our securities AFS are adjusted for unrealized gain or loss, and any unrealized gain or loss is reported on an after-tax basis as a component of AOCI in stockholders’ equity.
As of December 31, 2025, the estimated fair value of securities AFS was $647.3 million. The carrying values of our securities AFS are adjusted for unrealized gain or loss, and any unrealized gain or loss is reported on an after-tax basis as a component of AOCI in stockholders’ equity.
Collateral typically includes a lien on general business assets including, among other things, accounts receivable, inventory, equipment, and available real estate. A personal guaranty is generally obtained from the borrower or principal. Commercial and industrial loans increased $11.8 million, or 3.7%, to $327.1 million as of December 31, 2024, from $315.3 million as of December 31, 2023. Tax-Exempt Loans.
Collateral typically includes a lien on general business assets including, among other things, accounts receivable, inventory, equipment, and available real estate. A personal guaranty is generally obtained from the borrower or principal. Commercial and industrial loans increased $65.7 million, or 20.1%, to $392.8 million as of December 31, 2025, from $327.1 million as of December 31, 2024. Tax-Exempt Loans.
Within the health care sector, loans to nursing and residential care facilities were 4.4% of loans HFI as of December 31, 2024, and 4.0% as of December 31, 2023. Loans to physician and dental practices were 3.4% of loans HFI as of December 31, 2024, and 3.6% as of December 31, 2023.
Within the health care sector, loans to nursing and residential care facilities were 4.6% of loans HFI as of December 31, 2025, and 4.4% as of December 31, 2024. Loans to physician and dental practices were 3.5% of loans HFI as of December 31, 2025, and 3.4% as of December 31, 2024.
Noninterest Income Our primary sources of noninterest income are fees related to the sale of mortgage loans, service charges on deposit accounts, debit card fees, brokerage income from advisory services, and other loan and deposit fees. Noninterest income decreased $673,000 to $20.4 million for the year ended December 31, 2024, compared to $21.1 million for the prior year.
Noninterest Income Our primary sources of noninterest income are fees related to the sale of mortgage loans, service charges on deposit accounts, debit card fees, brokerage income from advisory services, and other loan and deposit fees. Noninterest income decreased $477,000 to $20.0 million for the year ended December 31, 2025, compared to $20.4 million for the prior year.
Securities HTM, which we have the intent and ability to hold until maturity, are carried at amortized cost. As of December 31, 2024, the amortized cost of securities HTM was $131.8 million. Securities HTM had an unrealized loss of $22.8 million as of December 31, 2024, compared to an unrealized loss of $22.2 million as of December 31, 2023.
Securities HTM, which we have the intent and ability to hold until maturity, are carried at amortized cost. As of December 31, 2025, the amortized cost of securities HTM was $122.6 million. Securities HTM had an unrealized loss of $18.2 million as of December 31, 2025, compared to an unrealized loss of $22.8 million as of December 31, 2024.
As of December 31, 2024, equity securities had a fair value of $2.9 million with a recognized loss of $28,000 for the year ended December 31, 2024. As of December 31, 2023, equity securities had a fair value of $3.0 million with a recognized loss of $14,000 for the year ended December 31, 2023.
As of December 31, 2025, equity securities had a fair value of $3.0 million with a recognized gain of $94,000 for the year ended December 31, 2025. As of December 31, 2024, equity securities had a fair value of $2.9 million with a recognized loss of $28,000 for the year ended December 31, 2024.
In determining the appropriate level of interest rate risk, the committee considers the impact on both earnings and capital given the current outlook on interest rates, regional economies, liquidity, business strategies, and other related factors.
The committee formulates strategies based on appropriate levels of interest rate risk and monitors the results of those strategies. In determining the appropriate level of interest rate risk, the committee considers the impact on both earnings and capital given the current outlook on interest rates, regional economies, liquidity, business strategies, and other related factors.
In addition, effective March 2024, the Bank was approved for the Discount Window’s Borrower-In-Custody “BIC” program, which provides borrowing capacity through the pledging of eligible Red River Bank loans that are not pledged to the FHLB.
In addition, effective March 2024, the Bank was approved for the BIC program, which provides borrowing capacity through the pledging of eligible Red River Bank loans that are not pledged to the FHLB.
There were no outstanding borrowings from the FHLB as of December 31, 2024 and 2023. Another borrowing source is the Federal Reserve Bank’s Discount Window. Effective the third quarter of 2023, the Bank pledged securities to have borrowing access to the Federal Reserve Bank’s Discount Window.
There were no outstanding borrowings from the FHLB as of December 31, 2025 and 2024. Another borrowing source is the Federal Reserve Bank’s Discount Window. The Bank has pledged securities to have borrowing access to the Federal Reserve Bank’s Discount Window facility.
The decrease in net income was mainly due to a $2.3 million increase in operating expenses, a $673,000 decrease in noninterest income, and a $465,000 increase in the provision for credit losses, partially offset by a $2.9 million increase in net interest income.
The increase in net income was mainly due to a $16.3 million increase in net interest income, partially offset by a $3.9 million increase in operating expenses, a $2.2 million increase in income tax expense, a $1.1 million increase in the provision for credit losses, and a $477,000 decrease in noninterest income.
As of December 31, 2024 and 2023, we held unfunded letters of credit from the FHLB of Dallas in the amount of $104.3 million and $104.8 million, respectively. As of December 31, 2024 and 2023, we had net borrowing capacity of $931.6 million and $829.2 million, respectively, under this arrangement.
As of December 31, 2025 and 2024, we held unfunded letters of credit from the FHLB of Dallas in the amount of $119.5 million and $104.3 million, respectively. As of December 31, 2025 and 2024, we had net borrowing capacity of $906.6 million and $931.6 million, respectively, under this arrangement.
The following table presents the amount of time deposits, by account, that are in excess of the FDIC insurance limit (currently $250,000) by time remaining until maturity for the period indicated: (in thousands) December 31, 2024 Three months or less $ 29,295 Over three months through six months 32,415 Over six months through 12 months 25,740 Over 12 months 4,063 Total $ 91,513 Borrowings Although deposits are our primary source of funds, we may, from time to time, utilize borrowings as a cost-effective source of funds when such borrowings can then be invested at a positive interest rate spread for additional capacity to fund loan demand or to meet our liquidity needs.
The following table presents the amount of time deposits, by account, that are in excess of the FDIC insurance limit (currently $250,000) by time remaining until maturity for the period indicated: (in thousands) December 31, 2025 Three months or less $ 36,758 Over three months through six months 25,648 Over six months through 12 months 37,911 Over 12 months 3,500 Total $ 103,817 Borrowings Although deposits are our primary source of funds, we may, from time to time, utilize borrowings as a cost-effective source of funds when such borrowings can then be invested at a positive interest rate spread for additional capacity to fund loan demand or to meet our liquidity needs.
Future provisions for credit losses on loans are subject to ongoing evaluations of the factors and loan portfolio risks, including economic pressures related to inflation, labor market and supply chain constraints, and natural disasters affecting the state of Louisiana.
Future provisions for credit losses on loans are subject to ongoing evaluations of the factors and loan portfolio risks, including economic pressures related to inflation, unemployment, tariffs and trade, and natural disasters affecting the state of Louisiana.
Construction and development loans increased $30.0 million, or 23.9%, to $155.2 million as of December 31, 2024, compared to $125.2 million as of December 31, 2023. Commercial and Industrial Loans. Commercial and industrial loans are made for a variety of business purposes, including, but not limited to, inventory, equipment, capital expansion, and working capital enhancement.
Construction and development loans increased $66.0 million, or 42.5%, to $221.2 million as of December 31, 2025, compared to $155.2 million as of December 31, 2024. Commercial and Industrial Loans. Commercial and industrial loans are made for a variety of business purposes, including, but not limited to, inventory, equipment, capital expansion, and working capital enhancement.
In the first quarter of 2025, we declared a quarterly cash dividend of $0.12 per share. • The 2024 stock repurchase program authorized us to purchase up to $5.0 million of our outstanding common stock from January 1, 2024 through December 31, 2024.
This was a 50.0% increase from $0.36 per common share paid in 2024. In the first quarter of 2026, we declared a quarterly cash dividend of $0.25 per common share. • The 2025 stock repurchase program authorized us to purchase up to $5.0 million of our outstanding shares of common stock from January 1, 2025 through December 31, 2025.
Contractual Maturity as of December 31, 2024 Within One Year After One Year but Within Five Years After Five Years but Within Ten Years After Ten Years Total (dollars in thousands) Amount Yield (1) Amount Yield (1) Amount Yield (1) Amount Yield (1) Amount Yield (1) Securities HTM: Mortgage-backed securities $ — — % $ — — % $ — — % $ 130,864 2.45 % $ 130,864 2.45 % U.S. agency securities — — % — — % 932 2.61 % — — % 932 2.61 % Total Securities HTM $ — — % $ — — % $ 932 2.61 % $ 130,864 2.45 % $ 131,796 2.45 % Equity Securities Equity securities are an investment in a CRA mutual fund, consisting primarily of bonds.
Contractual Maturity as of December 31, 2025 Within One Year After One Year but Within Five Years After Five Years but Within Ten Years After Ten Years Total (dollars in thousands) Amount Yield (1) Amount Yield (1) Amount Yield (1) Amount Yield (1) Amount Yield (1) Securities HTM: Mortgage-backed securities $ — — % $ — — % $ — — % $ 121,677 2.45 % $ 121,677 2.45 % U.S. agency securities — — % — — % 942 2.61 % — — % 942 2.61 % Total Securities HTM $ — — % $ — — % $ 942 2.61 % $ 121,677 2.45 % $ 122,619 2.45 % Equity Securities Equity securities are an investment in a CRA mutual fund, consisting primarily of bonds.
December 31, 2024 2023 (dollars in thousands) Amount Percent Amount Percent Real estate: Commercial real estate $ 9,047 41.6 % $ 9,118 42.7 % One-to-four family residential 6,452 29.7 % 7,484 35.1 % Construction and development 1,653 7.6 % 1,309 6.1 % Commercial and industrial 4,123 19.0 % 2,553 12.0 % Tax-exempt 103 0.5 % 575 2.7 % Consumer 353 1.6 % 297 1.4 % Total allowance for credit losses $ 21,731 100.0 % $ 21,336 100.0 % The following table displays the ratio of net charge-offs to average loans HFI outstanding by category for the periods shown: For the Years Ended December 31, 2024 2023 Real estate: Commercial real estate —% —% One-to-four family residential —% —% Construction and development —% —% Commercial and industrial 0.02% —% Tax-exempt —% —% Consumer 0.01% 0.02% Total net charge-offs to average loans HFI 0.03% 0.02% Deposits Deposits are the primary funding source for loans and investments.
December 31, 2025 2024 (dollars in thousands) Amount Percent Amount Percent Real estate: Commercial real estate $ 9,359 40.0 % $ 9,047 41.6 % One-to-four family residential 6,962 29.8 % 6,452 29.7 % Construction and development 1,751 7.4 % 1,653 7.6 % Commercial and industrial 4,939 21.1 % 4,123 19.0 % Tax-exempt 91 0.4 % 103 0.5 % Consumer 297 1.3 % 353 1.6 % Total allowance for credit losses $ 23,399 100.0 % $ 21,731 100.0 % The following table displays the ratio of net charge-offs to average loans HFI outstanding by category for the periods shown: For the Years Ended December 31, 2025 2024 Real estate: Commercial real estate —% —% One-to-four family residential —% —% Construction and development 0.01% —% Commercial and industrial 0.01% 0.02% Tax-exempt —% —% Consumer 0.01% 0.01% Total net charge-offs to average loans HFI 0.03% 0.03% Deposits Deposits are the primary funding source for loans and investments.
Operating expenses increased $2.3 million to $66.2 million for the year ended December 31, 2024 , compared to $63.9 million for the year ended December 31, 2023 .
Operating expenses increased $3.9 million to $70.1 million for the year ended December 31, 2025 , compared to $66.2 million for the year ended December 31, 2024 .
This repurchase was supplemental to our 2024 stock repurchase program and did not impact the amount of permitted repurchases thereunder. On August 8, 2024, we entered into a privately negotiated stock repurchase agreement for the purchase of 60,000 shares of our common stock for a total purchase price of approximately $3.0 million.
This repurchase was supplemental to our 2025 stock repurchase program and did not impact the amount of permitted repurchases thereunder. On August 7, 2025, we entered into a privately negotiated stock repurchase agreement for the purchase of 100,000 shares of our common stock for a total purchase price of approximately $5.3 million, excluding excise tax.
The most directly comparable GAAP financial measure for realized book value per share is book value per share. 62 Table of Contents The following table reconciles, as of the dates set forth below, stockholders’ equity to tangible common equity, stockholders’ equity to realized common equity, and assets to tangible assets, and presents related resulting ratios: December 31, (dollars in thousands, except per share data) 2024 2023 2022 Tangible common equity Total stockholders’ equity $ 319,739 $ 303,851 $ 265,753 Adjustments: Intangible assets (1,546) (1,546) (1,546) Total tangible common equity (non-GAAP) $ 318,193 $ 302,305 $ 264,207 Realized common equity Total stockholders’ equity $ 319,739 $ 303,851 $ 265,753 Adjustments: Accumulated other comprehensive (income) loss 60,247 60,494 71,166 Total realized common equity (non-GAAP) $ 379,986 $ 364,345 $ 336,919 Common shares outstanding 6,777,238 7,091,637 7,183,915 Book value per share $ 47.18 $ 42.85 $ 36.99 Tangible book value per share (non-GAAP) $ 46.95 $ 42.63 $ 36.78 Realized book value per share (non-GAAP) $ 56.07 $ 51.38 $ 46.90 Tangible assets Total assets $ 3,149,594 $ 3,128,810 $ 3,082,686 Adjustments: Intangible assets (1,546) (1,546) (1,546) Total tangible assets (non-GAAP) $ 3,148,048 $ 3,127,264 $ 3,081,140 Total stockholders’ equity to assets 10.15 % 9.71 % 8.62 % Tangible common equity to tangible assets (non-GAAP) 10.11 % 9.67 % 8.57 % CRITICAL ACCOUNTING ESTIMATES Our consolidated financial statements are prepared in accordance with GAAP and with general practices within the financial services industry.
The most directly comparable GAAP financial measure for realized book value per share is book value per share. 62 Table of Contents The following table reconciles, as of the dates set forth below, stockholders’ equity to tangible common equity, stockholders’ equity to realized common equity, and assets to tangible assets, and presents related resulting ratios: December 31, (dollars in thousands, except per share data) 2025 2024 2023 Tangible common equity Total stockholders’ equity $ 365,150 $ 319,739 $ 303,851 Adjustments: Intangible assets (1,546) (1,546) (1,546) Total tangible common equity (non-GAAP) $ 363,604 $ 318,193 $ 302,305 Realized common equity Total stockholders’ equity $ 365,150 $ 319,739 $ 303,851 Adjustments: Accumulated other comprehensive (income) loss 43,341 60,247 60,494 Total realized common equity (non-GAAP) $ 408,491 $ 379,986 $ 364,345 Common shares outstanding 6,576,609 6,777,238 7,091,637 Book value per share $ 55.52 $ 47.18 $ 42.85 Tangible book value per share (non-GAAP) $ 55.29 $ 46.95 $ 42.63 Realized book value per share (non-GAAP) $ 62.11 $ 56.07 $ 51.38 Tangible assets Total assets $ 3,350,910 $ 3,149,594 $ 3,128,810 Adjustments: Intangible assets (1,546) (1,546) (1,546) Total tangible assets (non-GAAP) $ 3,349,364 $ 3,148,048 $ 3,127,264 Total stockholders’ equity to assets 10.90 % 10.15 % 9.71 % Tangible common equity to tangible assets (non-GAAP) 10.86 % 10.11 % 9.67 % CRITICAL ACCOUNTING ESTIMATES Our consolidated financial statements are prepared in accordance with GAAP and with general practices within the financial services industry.
We also utilize the FHLB of Dallas as needed as a viable funding source. FHLB of Dallas advances may be used to meet the Bank’s liquidity needs, particularly if the prevailing interest rate on an FHLB of Dallas advance compares favorably to the rates that would be required to attract the necessary deposits.
FHLB of Dallas advances may be used to meet the Bank’s liquidity needs, particularly if the prevailing interest rate on an FHLB of Dallas advance compares favorably to the rates that would be required to attract the necessary deposits.
The ACL is determined using the CECL model, which considers relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. As of December 31, 2024, the ACL was $21.7 million, or 1.05%, of loans HFI. As of December 31, 2023, the ACL was $21.3 million, or 1.07%, of loans HFI.
The ACL is determined using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. As of December 31, 2025, the ACL was $23.4 million, or 1.04% of loans HFI. As of December 31, 2024, the ACL was $21.7 million, or 1.05%, of loans HFI.
Investment activity for the year ended December 31, 2024, included $157.3 million in maturities, principal repayments, and calls, partially offset by $128.9 million of securities purchased. There were no sales of securities AFS, and there were no purchases or sales of securities HTM for the same period.
Investment activity for the year ended December 31, 2025, included $182.1 million of securities purchased, partially offset by $114.4 million in maturities, principal repayments, and calls. There were no sales of securities AFS, and there were no purchases or sales of securities HTM for the same period.
The ratio of NPAs to assets was 0.10% as of December 31, 2024 and 0.08% as of December 31, 2023. 51 Table of Contents Nonperforming loan and asset information is summarized below: December 31, (dollars in thousands) 2024 2023 Nonperforming loans: Nonaccrual loans $ 2,968 $ 1,959 Accruing loans 90 or more days past due 266 574 Total nonperforming loans 3,234 2,533 Foreclosed assets: Real estate 38 69 Total foreclosed assets 38 69 Total NPAs $ 3,272 $ 2,602 Nonaccrual loans to loans HFI 0.14 % 0.10 % Nonperforming loans to loans HFI 0.16 % 0.13 % NPAs to assets 0.10 % 0.08 % Nonaccrual loans are summarized below by category: December 31, (in thousands) 2024 2023 Real estate: Commercial real estate $ 734 $ 714 One-to-four family residential 686 269 Construction and development 920 — Commercial and industrial 554 844 Tax-exempt — — Consumer 74 132 Total nonaccrual loans $ 2,968 $ 1,959 Potential Problem Loans From a credit risk standpoint, we classify loans in one of five categories: pass, special mention, substandard, doubtful, or loss.
The ratio of NPAs to assets was 0.11% and 0.10% as of December 31, 2025 and December 31, 2024, respectively. 52 Table of Contents Nonperforming loan and asset information is summarized below: December 31, (dollars in thousands) 2025 2024 Nonperforming loans: Nonaccrual loans $ 3,281 $ 2,968 Accruing loans 90 or more days past due 219 266 Total nonperforming loans 3,500 3,234 Foreclosed assets: Real estate 36 38 Total foreclosed assets 36 38 Total NPAs $ 3,536 $ 3,272 Nonaccrual loans to loans HFI 0.15 % 0.14 % Nonperforming loans to loans HFI 0.16 % 0.16 % NPAs to assets 0.11 % 0.10 % Nonaccrual loans are summarized below by category: December 31, (in thousands) 2025 2024 Real estate: Commercial real estate $ — $ 734 One-to-four family residential 2,017 686 Construction and development 1,189 920 Commercial and industrial 19 554 Tax-exempt — — Consumer 56 74 Total nonaccrual loans $ 3,281 $ 2,968 Potential Problem Loans From a credit risk standpoint, we classify loans in one of five categories: pass, special mention, substandard, doubtful, or loss.
Non-owner occupied CRE loans were $458.9 million, or 22.1% of loans HFI, and represented 116.6% of the Bank’s total risk-based capital as of December 31, 2024. Non-owner occupied office loans were $56.4 million, or 2.7% of loans HFI, as of December 31, 2024, and are primarily centered in low-rise suburban areas.
Non-owner occupied CRE loans were $458.6 million, or 20.4% of loans HFI, and represented 108.7% of the Bank’s total risk-based capital as of December 31, 2025. Non-owner occupied office loans were $54.3 million, or 2.4% of loans HFI, as of December 31, 2025, and are primarily centered in low-rise suburban areas.
As of December 31, 2024, Red River Bank operated from a network of 28 banking centers throughout Louisiana and one combined LDPO in New Orleans, Louisiana.
As of December 31, 2025, Red River Bank operated from a network of 28 banking centers throughout Louisiana and two combined LDPOs, one each in New Orleans, Louisiana and Lafayette, Louisiana.
One-to-four family residential loans are predominantly first lien mortgage loans secured by owner occupied one-to-four family residential properties. One-to-four family residential loans increased $15.1 million, or 2.5%, to $614.6 million as of December 31, 2024, compared to $599.5 million as of December 31, 2023. Construction and Development Loans.
One-to-four family residential loans are predominantly first lien mortgage loans secured by owner occupied one-to-four family residential properties. One-to-four family residential loans increased $14.2 million, or 2.3%, to $628.8 million as of December 31, 2025, compared to $614.6 million as of December 31, 2024. Construction and Development Loans.
Our effective income tax rates have differed from the U.S. statutory rate due to the effect of tax-exempt income from loans, securities, life insurance policies, income tax effects associated with stock-based compensation, and permanent and temporary tax differences. 44 Table of Contents The table below presents, for the periods indicated, income tax expense: For the Years Ended December 31, (dollars in thousands) 2024 2023 Increase (Decrease) Income tax expense $ 8,146 $ 8,065 $ 81 1.0 % For the years ended December 31, 2024 and 2023, income tax expense remained consistent at $8.1 million.
Our effective income tax rates have differed from the U.S. statutory rate due to the effect of tax-exempt income from loans, securities, life insurance policies, income tax effects associated with stock-based compensation, and permanent and temporary tax differences. 45 Table of Contents The table below presents, for the periods indicated, income tax expense: For the Years Ended December 31, (dollars in thousands) 2025 2024 Increase (Decrease) Income tax expense $ 10,362 $ 8,146 $ 2,216 27.2 % For the years ended December 31, 2025 and 2024, income tax expense totaled $10.4 million and $8.1 million, respectively.
As of December 31, (in thousands) 2024 2023 2022 Selected Period End Balance Sheet Data: Total assets $ 3,149,594 $ 3,128,810 $ 3,082,686 Interest-bearing deposits in other banks $ 238,417 $ 252,364 $ 240,568 Securities available-for-sale, at fair value $ 550,148 $ 570,092 $ 614,407 Securities held-to-maturity, at amortized cost $ 131,796 $ 141,236 $ 151,683 Loans held for investment $ 2,075,013 $ 1,992,858 $ 1,916,267 Total deposits $ 2,805,106 $ 2,801,888 $ 2,798,936 Total stockholders’ equity $ 319,739 $ 303,851 $ 265,753 38 Table of Contents As of and for the Years Ended December 31, (dollars in thousands, except per share data) 2024 2023 2022 Net Income $ 34,235 $ 34,879 $ 36,916 Per Common Share Data: Earnings per share, basic $ 4.96 $ 4.87 $ 5.14 Earnings per share, diluted $ 4.95 $ 4.86 $ 5.13 Book value per share $ 47.18 $ 42.85 $ 36.99 Tangible book value per share (1,2) $ 46.95 $ 42.63 $ 36.78 Realized book value per share (1,3) $ 56.07 $ 51.38 $ 46.90 Cash dividends per share $ 0.36 $ 0.32 $ 0.28 Shares outstanding 6,777,238 7,091,637 7,183,915 Weighted average shares outstanding, basic 6,898,286 7,164,314 7,180,975 Weighted average shares outstanding, diluted 6,918,060 7,181,728 7,197,453 Summary Performance Ratios: Return on average assets 1.11 % 1.15 % 1.18 % Return on average equity 11.02 % 12.44 % 13.98 % Net interest margin 2.91 % 2.87 % 2.80 % Net interest margin FTE (4) 2.96 % 2.91 % 2.86 % Efficiency ratio (5) 60.29 % 59.39 % 56.60 % Loans HFI to deposits ratio 73.97 % 71.13 % 68.46 % Noninterest-bearing deposits to deposits ratio 30.89 % 32.71 % 38.96 % Noninterest income to average assets 0.66 % 0.70 % 0.60 % Operating expense to average assets 2.14 % 2.11 % 1.87 % Summary Credit Quality Ratios: NPAs to assets 0.10 % 0.08 % 0.08 % Nonperforming loans to loans HFI 0.16 % 0.13 % 0.12 % ACL to loans HFI 1.05 % 1.07 % 1.08 % Net charge-offs to average loans 0.03 % 0.02 % 0.02 % Capital Ratios: Stockholders’ equity to assets 10.15 % 9.71 % 8.62 % Tangible common equity to tangible assets (1,6) 10.11 % 9.67 % 8.57 % Total risk-based capital to risk-weighted assets 18.13 % 18.28 % 17.39 % Tier I risk-based capital to risk-weighted assets 17.12 % 17.24 % 16.38 % Common equity Tier I capital to risk-weighted assets 17.12 % 17.24 % 16.38 % Tier I risk-based capital to average assets 11.86 % 11.56 % 10.71 % (1) Non-GAAP financial measure.
As of December 31, (in thousands) 2025 2024 2023 Selected Period End Balance Sheet Data: Total assets $ 3,350,910 $ 3,149,594 $ 3,128,810 Interest-bearing deposits in other banks $ 187,707 $ 238,417 $ 252,364 Securities available-for-sale, at fair value $ 647,310 $ 550,148 $ 570,092 Securities held-to-maturity, at amortized cost $ 122,619 $ 131,796 $ 141,236 Loans held for investment $ 2,248,669 $ 2,075,013 $ 1,992,858 Total deposits $ 2,963,412 $ 2,805,106 $ 2,801,888 Total stockholders’ equity $ 365,150 $ 319,739 $ 303,851 39 Table of Contents As of and for the Years Ended December 31, (dollars in thousands, except per share data) 2025 2024 2023 Net Income $ 42,764 $ 34,235 $ 34,879 Per Common Share Data: Earnings per share, basic $ 6.40 $ 4.96 $ 4.87 Earnings per share, diluted $ 6.38 $ 4.95 $ 4.86 Book value per share $ 55.52 $ 47.18 $ 42.85 Tangible book value per share (1,2) $ 55.29 $ 46.95 $ 42.63 Realized book value per share (1,3) $ 62.11 $ 56.07 $ 51.38 Cash dividends per share $ 0.54 $ 0.36 $ 0.32 Shares outstanding 6,576,609 6,777,238 7,091,637 Weighted average shares outstanding, basic 6,677,053 6,898,286 7,164,314 Weighted average shares outstanding, diluted 6,705,177 6,918,060 7,181,728 Summary Performance Ratios: Return on average assets 1.33 % 1.11 % 1.15 % Return on average equity 12.58 % 11.02 % 12.44 % Net interest margin 3.33 % 2.91 % 2.87 % Net interest margin FTE (4) 3.38 % 2.96 % 2.91 % Efficiency ratio (5) 55.84 % 60.29 % 59.39 % Loans HFI to deposits ratio 75.88 % 73.97 % 71.13 % Noninterest-bearing deposits to deposits ratio 30.84 % 30.89 % 32.71 % Noninterest income to average assets 0.62 % 0.66 % 0.70 % Operating expense to average assets 2.19 % 2.14 % 2.11 % Summary Credit Quality Ratios: NPAs to assets 0.11 % 0.10 % 0.08 % Nonperforming loans to loans HFI 0.16 % 0.16 % 0.13 % ACL to loans HFI 1.04 % 1.05 % 1.07 % Net charge-offs to average loans 0.03 % 0.03 % 0.02 % Capital Ratios: Stockholders’ equity to assets 10.90 % 10.15 % 9.71 % Tangible common equity to tangible assets (1,6) 10.86 % 10.11 % 9.67 % Total risk-based capital to risk-weighted assets 18.03 % 18.13 % 18.28 % Tier I risk-based capital to risk-weighted assets 17.02 % 17.12 % 17.24 % Common equity Tier I capital to risk-weighted assets 17.02 % 17.12 % 17.24 % Tier I risk-based capital to average assets 12.21 % 11.86 % 11.56 % (1) Non-GAAP financial measure.
The return on assets for the year ended December 31, 2024, was 1.11%, compared to 1.15% for the prior year. The return on equity was 11.02% for the year ended December 31, 2024, compared to 12.44% for the prior year.
The return on assets for the year ended December 31, 2025, was 1.33%, compared to 1.11% for the prior year. The return on equity was 12.58% for the year ended December 31, 2025, compared to 11.02% for the prior year.
The net unrealized loss on securities AFS increased $1.0 million for the year ended December 31, 2024, resulting in a net unrealized loss of $63.2 million as of December 31, 2024, compared to a net unrealized loss of $62.2 million as of December 31, 2023.
The net unrealized loss on securities AFS decreased $20.1 million for the year ended December 31, 2025, resulting in a net unrealized loss of $43.2 million as of December 31, 2025, compared to a net unrealized loss of $63.2 million as of December 31, 2024.
As of December 31, 2024, total health care loans were $167.3 million, or 8.1% of loans HFI, compared to $153.8 million, or 7.7% of loans HFI, as of December 31, 2023. The average health care loan size was $372,000 as of December 31, 2024, and $334,000 as of December 31, 2023.
As of December 31, 2025, health care loans were $194.3 million, or 8.6% of loans HFI, compared to $167.3 million, or 8.1% of loans HFI, as of December 31, 2024. The average health care loan size was $414,000 as of December 31, 2025, and $372,000 as of December 31, 2024.
Our strategy is to expand market share in existing markets and engage in opportunistic new market de novo expansion, supplemented by strategic acquisitions of financial institutions with customer-oriented, compatible philosophies and in desirable geographic areas. 2024 FINANCIAL AND OPERATIONAL HIGHLIGHTS In 2024, we had steady improvement in the net interest margin and EPS, along with solid loan activity and growth.
Our strategy is to expand market share in existing markets and engage in opportunistic new market de novo expansion, supplemented by strategic acquisitions of financial institutions with customer-oriented, compatible philosophies located in desirable geographic areas. 2025 FINANCIAL AND OPERATIONAL HIGHLIGHTS In 2025, we had record-high net income and EPS, and an improved net interest margin, along with solid balance sheet growth.
Net charge-offs for the year ended December 31, 2024, were $605,000, an increase of $300,000 from $305,000 for the year ended December 31, 2023.
Net charge-offs for the year ended December 31, 2025, were $632,000, an increase of $27,000 from $605,000 for the year ended December 31, 2024.
In addition, effective March 2024, the Bank was approved for the Discount Window’s Borrower-In-Custody “BIC” program, which provides borrowing capacity through the pledging of eligible Red River Bank loans that are not pledged to the FHLB.
In addition, the Bank was approved for the BIC program, which provides borrowing capacity through the pledging of eligible Red River Bank loans that are not pledged to the FHLB.
Tax-exempt loans decreased $8.0 million, or 10.9%, to $64.9 million as of December 31, 2024, compared to $72.9 million as of December 31, 2023. Consumer Loans. Consumer loans are made to individuals for personal, family, and household purposes and include secured and unsecured installment and term loans.
Tax-exempt loans decreased $7.4 million, or 11.4%, to $57.5 million as of December 31, 2025, compared to $64.9 million as of December 31, 2024. Consumer Loans. Consumer loans are made to individuals for personal, family, and household purposes and include secured and unsecured installment and term loans.
Our average deposit balance was $2.75 billion for the year ended December 31, 2024, an increase of $27.0 million, or 1.0%, from $2.72 billion for the year ended December 31, 2023. For 2024, average public entity deposits were 8.1% of average total deposits.
Our average deposit balance was $2.84 billion for the year ended December 31, 2025, an increase of $88.8 million, or 3.2%, from $2.75 billion for the year ended December 31, 2024. For 2025, average public entity deposits were 8.4% of average total deposits.
As of December 31, 2024, floating rate loans were 16.0% of loans HFI, and floating rate transaction deposits were 8.1% of interest-bearing transaction deposits.
As of December 31, 2025, floating rate loans were 19.3% of loans HFI, and floating rate transaction deposits were 8.1% of interest-bearing transaction deposits.
Late in the third quarter of 2024, the FOMC decreased the federal funds rate by 50 bps, and by an additional 50 bps during the fourth quarter of 2024, reducing the target federal funds range to 4.25%-4.50%. The average effective federal funds rate was 5.14% for 2024 compared to 5.03% for 2023.
In 2025, the FOMC reduced the federal funds rate by 25 bps in the third quarter and an additional 50 bps in the fourth quarter, reducing the target federal funds range to 3.50%-3.75%. The average effective federal funds rate was 4.21% for 2025 compared to 5.14% for 2024.
There were no gains or 57 Table of Contents losses recognized as a result of the transfer. As of December 31, 2024, the net unamortized, unrealized loss remaining on the transferred securities included in the consolidated balance sheets totaled $13.0 million, of which $10.3 million, net of tax, was included in AOCI.
There were no gains or losses recognized as a result of the transfer. As of December 31, 2025, the net unamortized, unrealized loss remaining on the transferred securities included in the consolidated balance sheets totaled $11.7 million, of which $9.2 million, net of tax, was included in AOCI.
Loans classified as loss are considered uncollectible and charged-off to the ACL. 52 Table of Contents The following table summarizes loans HFI by risk rating: December 31, 2024 December 31, 2023 (dollars in thousands) Amount Percent Amount Percent Pass $ 2,060,335 99.3 % $ 1,968,575 98.8 % Special Mention 8,330 0.4 % 19,429 1.0 % Substandard 6,348 0.3 % 4,854 0.2 % Total loans HFI $ 2,075,013 100.0 % $ 1,992,858 100.0 % There were no loans classified as doubtful or loss as of December 31, 2024 or 2023.
Loans classified as loss are considered uncollectible and charged-off to the ACL. 53 Table of Contents The following table summarizes loans HFI by risk rating: December 31, 2025 December 31, 2024 (dollars in thousands) Amount Percent Amount Percent Pass $ 2,232,362 99.3 % $ 2,060,335 99.3 % Special Mention 4,689 0.2 % 8,330 0.4 % Substandard 11,618 0.5 % 6,348 0.3 % Total loans HFI $ 2,248,669 100.0 % $ 2,075,013 100.0 % There were no loans classified as doubtful or loss as of December 31, 2025 or 2024.
For more information about our commitments to extend credit and standby letters of credit, see “Item 8. Financial Statements and Supplementary Data - Note 3. Loans and Asset Quality - Commitments to Extend Credit.” For more information about our financial commitments with time deposits, operating lease obligations, and limited partnership investments and construction commitments, see “Item 8.
For more information about our commitments to extend credit and standby letters of credit, see “Item 8. Financial Statements and Supplementary Data - Note 3. Loans and Asset Quality - Commitments to Extend Credit.” For more information about our financial commitments with time deposits and other off-balance sheet commitments, see “Item 8. Financial Statements and Supplementary Data - Note 5.
The U.S. agency securities purchased had a yield of 5.71% and an average life of 4.08 years. 45 Table of Contents The securities portfolio tax-equivalent yield was 2.43% for the year ended December 31, 2024, compared to 1.90% for the year ended December 31, 2023.
The U.S. agency securities purchased had a yield of 4.88% and an average life of 4.64 years. The securities portfolio tax-equivalent yield was 2.89% for the year ended December 31, 2025, compared to 2.43% for the year ended December 31, 2024.
As of December 31, 2024, we had a total borrowing capacity of $157.8 million, including $118.7 million through the BIC program, compared to a total borrowing capacity of $45.5 million as of December 31, 2023. There were no outstanding borrowings from the Federal Reserve Bank’s Discount Window as of December 31, 2024 and 2023.
As of December 31, 2025, we had a total borrowing capacity of $125.5 million through the Federal Reserve Bank’s Discount Window, including $85.1 million through the BIC program, compared to a total borrowing capacity of $157.8 million, including $118.7 million through the BIC program as of December 31, 2024. Other Borrowings.
The table below presents, for the periods indicated, the provision for credit losses: For the Years Ended December 31, (dollars in thousands) 2024 2023 Increase (Decrease) Provision for credit losses $ 1,200 $ 735 $ 465 63.3 % The provision for credit losses for the year ended December 31, 2024, totaled $1.2 million, an increase of $465,000 from $735,000 for the year ended December 31, 2023.
The table below presents, for the periods indicated, the provision for credit losses: For the Years Ended December 31, (dollars in thousands) 2025 2024 Increase (Decrease) Provision for credit losses $ 2,300 $ 1,200 $ 1,100 91.7 % The provision for credit losses for the year ended December 31, 2025, was $2.3 million for loans, an increase of $1.1 million from $1.2 million for the year ended December 31, 2024.
CRE loans increased $33.1 million, or 3.9%, to $884.6 million as of December 31, 2024, from $851.6 million as of December 31, 2023. The average CRE loan size was $953,000 as of December 31, 2024 and $938,000 as of December 31, 2023.
CRE loans increased $35.7 million, or 4.0%, to $920.3 million as of December 31, 2025, from $884.6 million as of December 31, 2024. The average CRE loan size was $1.0 million as of December 31, 2025 and $953,000 as of December 31, 2024.
The $395,000 increase in the ACL for the year ended December 31, 2024, was due $1.0 million from the provision for credit losses on loans, partially offset by $605,000 of net charge-offs. The provision for credit losses for the year ended December 31, 2024, was $1.2 million, an increase of $465,000 from $735,000 for the year ended December 31, 2023.
The $1.7 million increase in the ACL for the year ended December 31, 2025, was due to $2.3 million from the provision for credit losses on loans, partially offset by $632,000 of net charge-offs.
Total debt securities on the consolidated balance sheets were $681.9 million as of December 31, 2024, a decrease of $29.4 million, or 4.1%, from $711.3 million as of December 31, 2023. Securities AFS are held for indefinite periods of time and are carried at estimated fair value.
Total debt securities on the consolidated balance sheets were $769.9 million as of December 31, 2025, an increase of $88.0 million, or 12.9%, from $681.9 million as of December 31, 2024. Securities AFS are held for indefinite periods of time and are carried at estimated fair value.
Fluctuations in interest rates will ultimately impact both the level of income and expense recorded on most of our assets and liabilities and the market value of all interest-earning assets and interest-bearing liabilities, other than those that have a short term to maturity. Interest rate risk is the potential of economic losses due to future interest rate changes.
We have historically managed our rate sensitivity position within our established policy guidelines. Fluctuations in interest rates will ultimately impact both the level of income and expense recorded on most of our assets and liabilities and the market value of all interest-earning assets and interest-bearing liabilities, other than those that have a short term to maturity.
In accordance with Bank policy regarding economic value at risk simulations performed by our risk model for instantaneous parallel shifts of the yield curve, estimated fair value of equity for the subsequent one-year period should not decline by more than 10.0% for a 100 bp shift, 20.0% for a 200 bp shift, and 30.0% for a 300 bp shift. 60 Table of Contents The following table shows the impact of an instantaneous and parallel change in rates, at the levels indicated, and summarizes the simulated change in net interest income and fair value of equity over a 12-month horizon as of the dates indicated.
In accordance with Bank policy regarding economic value at risk simulations performed by our risk model for instantaneous parallel shifts of the yield curve, estimated fair value of equity for the subsequent one-year period should not decline by more than 10.0% for a 100 bp shift, 20.0% for a 200 bp shift, and 30.0% for a 300 bp shift.

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