Red River Bancshares Posts Record Net Income, Tops Revenue Estimates

Red River Bancshares posted record quarterly net income of $12.56 million in Q3 2026, up 16.3% from a year earlier, with EPS and revenue both beating expectations after the prior quarter's miss.

Net interest income drove the quarter, rising 3.2% sequentially to $29.88 million on higher earning asset balances, improved loan yields, and one additional accrual day. Loans held for investment grew 2.6% quarter over quarter, led by commercial real estate and commercial and industrial lending.

The rate environment now works in the bank's favor. The FOMC raised the federal funds rate 25 basis points in September 2026, with the market expecting another hike in Q4. CEO Blake Chatelain said the outlook shifted from a slowly decreasing rate environment to a "higher for longer" backdrop, which should benefit asset pricing while deposit costs are managed.

Management expects net interest income and margin to edge higher in Q4 2026, supported by the repricing of $529.5 million in floating-rate loans and the renewal of maturing time deposits. Two new banking centers, in Lafayette and Slidell, are expected to open in Q1 2027, extending a deposit franchise S&P Global Market Intelligence already ranks among the top 50 in its asset range.

Nonperforming assets jumped 113.4% to $5.6 million on a single commercial relationship. Mortgage loan income fell as higher rates weighed on origination activity, and an after-tax unrealized securities loss continues to reduce reported stockholders' equity. Investors will track these alongside the margin story.