Red River Bancshares, Inc. (RRBI): Business Model Canvas [Dec-2025 Updated]

You're looking to see exactly how Red River Bancshares, Inc. (RRBI) is making money and managing risk in the current environment, and honestly, their model is a classic community bank playbook with a modern digital upgrade. As of mid-2025, they are sitting on $3.17 billion in total assets, keeping credit quality tight with nonperforming assets at just 0.04%, all while pushing commercial lending past $2.14 billion in held-for-investment loans. We've mapped out their nine core building blocks-from their personalized service value proposition to their cost structure driven by personnel and technology spend-so you can see the precise levers driving their Net Interest Income of $25.8 million in Q2 2025. Dive in below to see the full, data-backed breakdown.

Red River Bancshares, Inc. (RRBI) - Canvas Business Model: Key Partnerships

You're looking at the essential external relationships Red River Bancshares, Inc. (RRBI) relies on to deliver its value proposition. These aren't just vendors; they're strategic enablers for their technology stack and community reach. Honestly, in banking today, your tech partners are as critical as your capital partners.

Digital and Payments Technology Providers

Red River Bancshares, Inc. cemented a major technology relationship when Red River Bank selected Q2 Holdings, Inc. to power its digital banking transformation. This selection, made in October 2024, was aimed at delivering a cohesive digital experience for both consumer and commercial customers. This platform is the backbone; it allows the bank to serve its customers seamlessly across mobile and online channels.

To enhance the digital offering further, Red River Bank integrated with Allied Payment Network for specialized services, specifically real-time payments solutions. This FinTech vendor integrates seamlessly with the Q2 Digital Banking Platform, which made the decision straightforward for Red River Bancshares, Inc..

Credit Card Program Alignment

A notable operational shift occurred in the second quarter of 2025: Red River Bancshares, Inc. revised its credit card program provider. The goal here was to align the credit card offering with the existing debit card program provider. This kind of internal alignment usually signals a push for operational simplicity and a unified customer experience.

The resulting RRB Rewards Mastercard® has specific terms you should note:

• 0% introductory Annual Percentage Rate (APR) for 6 months on purchases and balance transfers.
• Variable APR after the introductory period ranges from 13.99% to 24.99%, depending on creditworthiness.
• The program features no annual fee and no balance transfer fee.

Liquidity and Financial Support

While Red River Bancshares, Inc. emphasizes its lack of borrowings, brokered deposits, or internet-sourced deposits, maintaining robust liquidity relies on accessible external sources. As of the close of the second quarter of 2025, the company reported having sufficient liquid assets and $1.65 billion accessible from other liquidity sources. This figure was slightly higher at $1.66 billion at the end of the first quarter of 2025. These figures represent the readily available resources that support their balance sheet, which stood at $3.17 billion in assets as of June 30, 2025.

Community and Economic Development Alliances

Red River Bancshares, Inc., through Red River Bank, maintains deep, long-term partnerships with local economic development agencies and related entities in Louisiana. The most significant relationship here is the 25-year partnership with the Federal Home Loan Bank of Dallas (FHLB Dallas). Together, they have delivered $12 million in funding across Louisiana communities, focusing on affordable housing, disaster recovery, and economic development initiatives.

Here are some concrete examples of recent collaborative funding actions:

• Awarding $120,000 in Disaster Rebuilding Assistance grants to Divine Touch Community Development Center in Lafayette.
• Awarding $952,050 from the FHLB Dallas FORTIFIED Fund Rental Program to the Alexandria Housing Authority.
• A commitment to a Community Partnership with Building a Better Avoyelles for the year 2026.
• A planned award of a $1.2 million Affordable Housing Program grant to Gulf Coast Housing Partnership for senior housing development.

You can see the structure of these key external relationships below:

Partner Category	Specific Partner/Vendor	Role/Service Provided	Key Metric/Data Point (2025)
Digital Banking Platform	Q2 Holdings, Inc.	Cohesive digital banking experience for consumer and commercial customers	Selection finalized in October 2024; platform in use as of Q1 2025
Specialized FinTech Vendor	Allied Payment Network	Real-time payments solutions, integrating with Q2 platform	Seamless integration with Q2 Digital Banking Platform
Credit Card Program	New Provider (Changed Q2 2025)	RRB Rewards Mastercard® issuance	Variable APR post-introductory period: 13.99% to 24.99% or 14.24% to 25.24%
Liquidity/Funding Source	Correspondent/External Sources	Access to contingent liquidity	$1.65 billion accessible as of June 30, 2025
Economic Development/Housing	FHLB Dallas (25-Year Partnership)	Funding for affordable housing, disaster recovery, and economic development	Total funding delivered to Louisiana communities: $12 million

These partnerships define how Red River Bancshares, Inc. extends its reach and modernizes its core offering. Finance: draft the 13-week cash view by Friday.

Red River Bancshares, Inc. (RRBI) - Canvas Business Model: Key Activities

You're looking at the core engine of Red River Bancshares, Inc. (RRBI) right now, focusing on what they actively do to generate revenue and manage their balance sheet as of late 2025. It's all about deploying capital wisely and keeping funding costs in check.

Commercial and Consumer Loan Origination

A primary activity is putting money to work by originating loans to commercial and consumer clients. This drives interest income, which is central to the bank's profitability. You saw steady new loan closing activity throughout the first half of 2025, combined with funding for loan construction commitments.

Here are the key loan metrics as of the middle and end of the third quarter:

Metric	Value as of 6/30/2025	Value as of 9/30/2025
Loans Held for Investment (HFI)	$2.14 billion	$2.17 billion
Quarter-over-Quarter HFI Growth (Q2 to Q3)	N/A	Slight increase

The loans HFI to deposits ratio stood at 76.09% as of June 30, 2025.

Core Deposit Gathering and Interest Expense Management

Gathering stable, low-cost deposits is just as critical as lending them out. This activity directly impacts the cost of funds, which is a major lever for net interest margin (NIM). Management is actively managing interest expense, which helped improve the NIM.

The results of this activity are clear in the deposit base and margin performance:

• Total Deposits as of 9/30/2025: $2.84 billion
• Net Interest Margin (FTE) for Q3 2025: 3.43%
• Net Interest Margin (FTE) for Q2 2025: 3.36%
• Increase in Net Interest Income (Q3 vs Q2): $1.1 million

The improvement in NIM was driven by higher securities and loan yields, plus a lower cost of deposits.

Strategic Investment in Higher-Yielding Securities

Red River Bancshares, Inc. actively manages its securities portfolio, reinvesting cash flows from maturing assets into securities offering better returns, especially in the current rate environment. This is a key activity for optimizing non-loan earning assets.

Here's how the securities portfolio looked:

• Total Securities as of 9/30/2025: $764.6 million
• Total Securities as of 6/30/2025: $697.3 million
• Securities Purchases in Q3 2025: $78.2 million at favorable yields
• Securities Income Increase in Q3 2025: $277,000

The bank was able to reinvest maturing security cash flows into higher-yielding assets.

Operating and Upgrading the Digital Banking Platform

Keeping the technology relevant is a necessary operational task. While specific upgrade costs aren't in the latest filings, a key operational change in the second quarter involved aligning the credit card program provider with the existing debit card program provider. This suggests ongoing efforts to streamline customer-facing platforms.

Managing a $5.0 Million Stock Repurchase Program (2025 Authorization)

Returning capital to shareholders through share repurchases is a deliberate management activity. The board authorized a program for up to $5.0 million of common stock purchases for the period January 1, 2025, through December 31, 2025.

The execution of this commitment involved several transactions:

Repurchase Type	Date/Period	Shares Repurchased	Cost/Capacity
2025 Program (Open Market)	Q2 2025	11,748 shares	$656,000 aggregate cost
Supplemental Private Repurchase	Q2 2025 (May 22, 2025)	100,000 shares	$5.1 million purchase price
Supplemental Private Repurchase	Q3 2025 (August 7, 2025)	100,000 shares	$5.3 million purchase price
Remaining Capacity under 2025 Program	As of August 7, 2025	N/A	$4.3 million remaining

The supplemental repurchases were separate from, and did not impact the capacity of, the authorized $5.0 million program.

Finance: draft the Q4 2025 cash flow projection incorporating the Q3 dividend increase by Monday.

Red River Bancshares, Inc. (RRBI) - Canvas Business Model: Key Resources

You're looking at the core assets Red River Bancshares, Inc. (RRBI) relies on to execute its business model. These aren't just line items on a balance sheet; they are the engines driving their operations and market position, especially heading into late 2025.

The foundation is definitely the balance sheet strength. As of June 30, 2025, Total Assets stood at $3.17 billion. That scale supports the lending and deposit-gathering activities across their footprint in Louisiana.

A critical resource is the deposit base, which funds those assets. Red River Bancshares maintains a granular core deposit portfolio, meaning they rely less on volatile, large-scale funding sources. The portfolio size as of March 31, 2025 (the end of Q1 2025), was $2.83 billion. By September 30, 2025, deposits had grown slightly to $2.84 billion. The bank emphasizes having no brokered deposits or wholesale borrowings as of year-end 2023, suggesting a continued focus on this stable, granular base.

Human capital is another key resource. The network of employees, which supports the 28 banking centers and production offices, was reported at 375 total employees as of March 31, 2025 (Q1 2025 headcount). This number ticked up to 377 by September 30, 2025. That's the team executing the strategy.

Capital strength is paramount for a bank holding company. Red River Bancshares, Inc. maintains capital levels well above regulatory requirements, which gives them significant operational flexibility and investor confidence. Here's a snapshot of those strong capital metrics as of September 30, 2025:

Capital Metric	Value (as of September 30, 2025)
Stockholders' Equity to Assets Ratio	10.93%
Leverage Ratio	12.17%
Risk-Based Capital Ratio	18.18%
Book Value Per Share	$53.42

The firm also invests in its operational backbone. While specific technology spending isn't detailed here, the ability to offer a 'fully integrated suite of banking products and services' and the recent opening of a loan and deposit production office in Lafayette, Louisiana, in Q3 2025, point to ongoing investment in their physical and digital infrastructure to serve their markets.

Also consider the tangible returns being generated from these resources, which supports future investment. The quarterly cash dividend was increased by 25.0% to $0.15 per share for the third quarter of 2025. The return on assets (ROA) for Q3 2025 was 1.34%, and the return on equity (ROE) was 12.62%.

Here is a summary of the key quantitative resources as of the latest reporting periods:

• Total Assets (June 30, 2025): $3.17 billion
• Loans Held for Investment (HFI) (Sept 30, 2025): $2.17 billion
• Total Securities (Sept 30, 2025): $764.6 million
• Core Deposits (March 31, 2025): $2.83 billion
• Total Employees (March 31, 2025): 375

Finance: draft 13-week cash view by Friday.

Red River Bancshares, Inc. (RRBI) - Canvas Business Model: Value Propositions

You're looking at the core reasons clients choose Red River Bancshares, Inc. over the big national players. It boils down to a commitment to local service backed by solid financial footing.

Personalized, high-touch community banking service

The value here is the relationship-the local decision-making that speeds things up. This isn't just talk; you see it in their operational focus. They emphasize building customer relationships daily, a core principle since their founding in 1998.

• Quarterly cash dividend increased by 25.0% from $0.12 to $0.15 per share for the third quarter of 2025.
• Assets under management were $1.19 billion as of June 30, 2025.
• The company ranked 14th among the top 50 best deposit franchises for banks with assets between $3.0 and $10.0 billion by S&P Global Market Intelligence in Q1 2025.

Comprehensive suite of commercial and retail lending solutions

Red River Bancshares, Inc. offers a full spectrum of financing tools, which means clients don't have to shop around for different needs. They cover the basics and the specialized stuff.

Lending/Service Category	Specific Offering Examples	Latest Balance/Metric
Commercial & Retail Lending	Commercial and industrial lending, real estate financing, consumer and residential mortgage loans	Loans HFI totaled $2.17 billion as of September 30, 2025.
Business Support Services	Treasury management, merchant services	Unfunded construction loan commitments stood at $125.4 million as of September 30, 2025.
Wealth & Trust Services	Investment planning, retirement strategies, estate administration	Quarterly return on assets was 1.34% for Q3 2025.

They are actively funding growth; for instance, loan income contributed to a $1.1 million increase in net interest income in Q3 2025.

Financial stability with nonperforming assets at 0.04% of total assets (6/30/2025)

This is where the conservative philosophy translates directly into security for you. Low nonperforming assets (NPA) signal strong underwriting quality. Here's the quick math on that stability as of the mid-year mark:

Financial Metric	Amount/Percentage (6/30/2025)	Comparison Point
Nonperforming Assets (NPA) to Total Assets	0.04%	Decreased from 0.16% as of March 31, 2025.
Total Assets	$3.17 billion	Liquid assets (cash and cash equivalents) were $210.4 million.
Allowance for Credit Losses (ACL) to Loans HFI	1.04%	NPA totaled $1.3 million.

The net interest margin (FTE) improved for the seventh consecutive quarter, hitting 3.36% in Q2 2025 and reaching 3.43% by Q3 2025. That's defintely a sign of effective asset management.

Local market expertise in Louisiana for tailored solutions

Red River Bancshares, Inc. focuses its network across central and northern Louisiana and eastern Texas, ensuring decisions are made close to the customer. They are actively expanding this local footprint.

• Opened a loan and deposit production office in the Pinhook Tower building in Lafayette, Louisiana, during the third quarter of 2025.
• The company emphasized economic development in Louisiana, leading to new corporate expansion announcements in Q1 2025.
• The average health care loan size was $378,000 as of June 30, 2025.

Convenient, unified digital banking experience across all channels

You get the local touch without sacrificing modern access. They completed significant upgrades to their digital banking systems in the first quarter of 2025, providing a unified experience.

Digital capabilities allow customers to access account information, transfer funds, and manage finances securely around the clock using online and mobile platforms. They explicitly state they do not use borrowings, brokered deposits, or internet-sourced deposits, keeping funding local.

Red River Bancshares, Inc. (RRBI) - Canvas Business Model: Customer Relationships

You're focused on building deep, lasting ties with clients in Louisiana, which is clear from Red River Bancshares, Inc.'s stated strategy as of late 2025. The bank is actively focused on expanding its team to support this, noting a focus on adding experienced relationship bankers during the first quarter of 2025. Customers are explicitly seeking out banking relationships with bankers who are knowledgeable and responsive, and Red River Bancshares, Inc. is responding by adding to that team to grow market share.

The core of the service model is definitely high-touch and personal, aiming for those long-term relationships. This isn't just talk; the bank is committed to providing personalized banking services to its customers. You see this commitment reflected in the steady focus on returning value, evidenced by the third quarter of 2025 cash dividend being set at $0.15 per common share, which represented a 25.0% increase from the $0.12 paid in the first and second quarters of 2025. The book value per share stood at $53.42 as of September 30, 2025, showing a solid foundation supporting these relationships.

Community engagement and local economic development are central to how Red River Bancshares, Inc. connects. There has been an expanded emphasis and renewed effort on economic development throughout Louisiana, which has resulted in various new and significant corporate expansion announcements for projects across the state. The bank is clearly rooted locally, with its total employee count at 375 as of March 31, 2025. The commercial focus is evident in the loan book; for instance, Commercial Real Estate loans are collateralized mainly in Louisiana, with an average CRE loan size of $960,000 as of June 30, 2025. They are keeping the relationship focus tight, even while managing a loan portfolio held for investment of $2.17 billion as of September 30, 2025.

Still, the bank knows modern clients expect digital ease. Red River Bank upgraded its online, mobile banking, and bill payment systems during the first quarter of 2025 specifically to improve digital services for all customers. This blend of high-touch bankers and improved digital tools is the current approach. The bank had $1.14 billion in assets under management as of March 31, 2025, suggesting a significant portion of the customer base uses their digital wealth management tools as well.

For direct support, the customer service representatives are part of the overall team structure. The total number of employees across the organization was 375 at the end of the first quarter of 2025. This team supports the entire client base, which is managing assets totaling $3.17 billion as of June 30, 2025.

Here's a quick look at the scale of the balance sheet supporting these customer relationships as of mid-to-late 2025:

Metric	Amount/Value	Date
Loans Held for Investment (HFI)	$2.17 billion	September 30, 2025
Total Assets	$3.17 billion	June 30, 2025
Total Deposits	$2.84 billion	September 30, 2025
Total Employees	375	March 31, 2025
Assets Under Management	$1.14 billion	March 31, 2025

Finance: draft 13-week cash view by Friday.

Red River Bancshares, Inc. (RRBI) - Canvas Business Model: Channels

You're looking at how Red River Bancshares, Inc. gets its value proposition to the customer base across Louisiana. The physical footprint remains central, but the digital layer is clearly getting attention.

The core physical distribution network is anchored by a significant presence across key Louisiana Metropolitan Statistical Areas (MSAs). As of the third quarter of 2025, Red River Bank operates a network of 28 banking centers throughout Louisiana. This network covers major regions including Central (Alexandria MSA), Northwest (Shreveport-Bossier City MSA), Capital (Baton Rouge MSA), Southwest (Lake Charles MSA), Northshore (Covington), Acadiana (Lafayette MSA), and New Orleans.

Beyond the full-service centers, Red River Bancshares, Inc. utilizes specialized production offices to drive specific business lines. As of late 2025, the company maintains two combined loan and deposit production offices. One is located in New Orleans, Louisiana, and the other is in Lafayette, Louisiana, which opened in the Pinhook Tower building in the third quarter of 2025.

The digital channel saw investment activity early in the year. Red River Bancshares completed significant upgrades to its digital banking systems in the first quarter of 2025, covering both consumer and commercial offerings.

The scale of the operation supporting these channels can be seen in the overall employee base. As of March 31, 2025, Red River Bancshares, Inc. reported a total employee count of 375.

Here is a breakdown of the key physical and operational channel metrics as of the third quarter of 2025:

Channel Component	Metric Type	Value as of Late 2025
Physical Banking Centers	Count	28
Combined Loan/Deposit Offices	Count	2
New Orleans Office Type	Function	Loan and Deposit Production
Lafayette Office Opening	Date	Q3 2025
Loans Held for Investment (HFI)	Financial Amount (as of 9/30/2025)	$2.17 billion
Total Employees	Statistical Count (as of 3/31/2025)	375

Access points for transactional banking are supported by the ATM and debit card network. While specific network size isn't detailed, the bank provides access through its physical locations and the broader network.

For commercial lending, Red River Bancshares, Inc. relies on a direct sales force approach, focusing on adding experienced relationship bankers to grow its presence in existing and newer markets. The output from this channel is substantial, with loans held for investment reaching $2.17 billion as of September 30, 2025.

The physical channel strategy is segmented across specific geographic markets:

• Central (Alexandria MSA)
• Northwest (Shreveport-Bossier City MSA)
• Capital (Baton Rouge MSA)
• Southwest (Lake Charles MSA)
• Northshore (Covington)
• Acadiana (Lafayette MSA)
• New Orleans Metro Area

Red River Bancshares, Inc. (RRBI) - Canvas Business Model: Customer Segments

You're looking at the core groups Red River Bancshares, Inc. (RRBI) serves to generate its revenue and deposits. This isn't just a list; it's who holds the money on their balance sheet.

Retail (Consumer) customers in Louisiana markets form a significant base for both deposits and loans. As of June 30, 2025, total loans held for investment (HFI) stood at $2.138580 billion. Consumer deposits are a key funding source, though specific segment breakdowns for loans are less granular in the latest reports compared to deposits.

Commercial businesses, including small and mid-sized enterprises (SMEs), are targeted for credit and treasury management services. Red River Bancshares, Inc. specifically targets privately-owned commercial and industrial operating companies. Deposits from commercial customers saw higher balances as of March 31, 2025, contributing to the total deposits of $2.83 billion on that date. The bank's largest industry concentration within its loan portfolio as of June 30, 2025, was health care loans, representing 8.0% of loans HFI.

Public entity customers (municipalities, state agencies) provide important, though sometimes seasonal, funding. As of March 31, 2025, the increase in total deposits was partially offset by the seasonal outflow of funds from public entity customers.

For high-net-worth individuals for wealth management and trust services, Red River Bancshares, Inc. offers a comprehensive suite of products alongside its core banking. While specific AUM (Assets Under Management) figures for this segment aren't explicitly broken out in the latest public filings, these services are a stated part of their integrated offering, supporting long-term customer relationships.

The Shareholders segment is critical for capital structure and market perception. Based on recent filings, institutional ownership for Red River Bancshares, Inc. was reported at approximately 28.18% of shares outstanding, with major holders including BlackRock, Inc. and Vanguard Group Inc. The total shares outstanding for Red River Bancshares, Inc. was approximately 6.76 million, with a float of about 5.06 million shares as of late 2025 data points. The stock price as of November 14, 2025, was $67.44 per share.

Here's a quick look at the scale of the customer funding base as of mid-2025:

Customer/Metric Category	Financial Amount/Percentage (Latest Available 2025 Data)	Date Reference
Total Deposits	$2.81 billion	June 30, 2025
Total Loans Held for Investment (HFI)	$2.138580 billion	June 30, 2025
Consumer Deposits/Loans (as proxy for Retail)	Consumer deposits saw higher balances	March 31, 2025
Commercial Deposits (as proxy for SME)	Commercial customer deposit accounts saw higher balances	March 31, 2025
Institutional Shareholder Ownership	28.18%	Late 2025 Data
Health Care Loans (Largest Industry Concentration)	8.0% of loans HFI	June 30, 2025

The operational focus on these segments is supported by a team of 375 total employees as of March 31, 2025. The bank is definitely focused on its core Louisiana markets.

• Retail/Consumer segment is served across approximately 27 banking centers throughout Louisiana.
• Commercial clients receive customized service for credit and treasury management.
• Public entity deposits are subject to seasonal outflow patterns.
• The bank had 241 institutional owners and shareholders filing with the SEC.
• The quarterly cash dividend paid in Q2 2025 was $0.12 per common share.

Finance: draft 13-week cash view by Friday.

Red River Bancshares, Inc. (RRBI) - Canvas Business Model: Cost Structure

You're looking at the core expenses for Red River Bancshares, Inc. (RRBI) as of early 2025. For a bank holding company, the cost structure is heavily weighted toward personnel and the cost of funds, which is interest expense. We can map out the key components based on the First Quarter 2025 filings.

Personnel expenses were a significant outlay, totaling $10.0 million for the first quarter of 2025. That figure reflected an increase from the prior quarter, driven by adding staff-head count went from 369 at the end of 2024 to 375 as of March 31, 2025. By the second quarter, with annual raises factored in, personnel expenses rose again to $10.2 million with 374 employees as of June 30, 2025.

Managing the interest expense on deposits is definitely a focus area for RRBI. The management team noted they were focused on managing the cost of deposits while improving the net interest margin (NIM). In Q1 2025, this focus paid off with a $745,000 decrease in interest expense compared to the fourth quarter of 2024, which they attributed primarily to lower rates on time deposits. The NIM improvement to 3.22% in Q1 2025 was partly due to these lower deposit rates.

The overall operating expenses, which we often call noninterest expenses, totaled $16,588 thousand (or $16.6 million) for the first quarter of 2025. This figure bundles several key operational costs you asked about, so let's break down the major components from that quarter.

Here's a quick look at the main expense categories for Q1 2025 (all figures in thousands):

Expense Category	Q1 2025 Amount (in thousands)
Personnel expenses	10,023
Occupancy and equipment expenses	1,794
Technology expenses	835
Data processing expense	288
Other operating expenses	1,060
Total Operating Expenses	16,588

The costs associated with the digital platform are captured in technology and data processing. For Q1 2025, Technology expenses were $835 thousand, and Data processing expense was $288 thousand. You should note that Red River Bancshares, Inc. completed significant upgrades to its digital banking systems during that same quarter.

For physical footprint costs, Occupancy and equipment expenses were $1,794 thousand in the first quarter of 2025. This expense supports the network of 28 banking centers Red River Bank operates throughout Louisiana, plus their combined loan and deposit production offices in New Orleans and Lafayette.

Beyond those primary items, other key operating costs for Q1 2025 included:

• Legal and professional expenses: $632 thousand
• Other taxes: $612 thousand
• Regulatory assessment expenses: $391 thousand
• Advertising: $333 thousand

The total operating expenses figure of $16,588 thousand benefited from approximately $620,000 in periodic items that reduced the expense base for that quarter.

Red River Bancshares, Inc. (RRBI) - Canvas Business Model: Revenue Streams

You're looking at the core ways Red River Bancshares, Inc. brings in money, which, as you'd expect for a bank holding company, is heavily weighted toward interest income. Honestly, the story here is about managing the balance sheet to maximize the spread between what they earn on assets and what they pay on liabilities.

The primary driver is Net Interest Income (NII), which was reported at $25.8 million for the second quarter of 2025. That figure represented a 4.9% increase, or $1.2 million, over the first quarter of 2025, driven by higher yields on both securities and loans, coupled with a lower cost of deposits. The net interest margin (FTE) for Q2 2025 hit 3.36%. By the third quarter of 2025, NII increased again by $1.1 million over Q2 2025.

The interest-earning assets that generate this income are substantial, and you can see the growth trend in the loan book as of late 2025. Here's a quick look at the asset bases feeding the interest engine:

Asset Category	Balance as of June 30, 2025	Balance as of September 30, 2025
Loans Held for Investment (HFI)	$2.14 billion	$2.17 billion
Total Securities	$697.3 million	$764.6 million
Equity Securities (CRA Mutual Fund)	$3.0 million	Data not explicitly stated for Q3 balance

Interest income from Loans Held for Investment is a major component. As of September 30, 2025, the balance of Loans HFI stood at $2.17 billion, up from $2.14 billion at the end of Q2 2025. The yield on loans increased by 9 basis points in Q2 2025 compared to the prior quarter, with the average rate on new and renewed loans at 7.14% for Q2 2025.

Next up is Interest and dividend income from securities portfolio. The total securities balance grew to $764.6 million by September 30, 2025. In Q2 2025, the yield on securities increased by 12 basis points, largely because the company was reinvesting cash flows from maturing securities into higher-yielding ones.

Red River Bancshares, Inc. also pulls in revenue from non-interest sources, though these can be more variable. You should track these ancillary streams:

• Non-interest income from service charges and fees: This stream saw a dip in Q2 2025, specifically a $554,000 decrease compared to Q1 2025.
• General Non-interest Income: Total revenue for Q2 2025 was reported at $30.54 million, meaning non-interest income was approximately $4.74 million ($30.54M NII - $25.8M NII).

Finally, there's specialized income from partnerships. For the third quarter of 2025, Red River Bancshares, Inc. reported $253,000 in nonrecurring partnership income, specifically from the JAM FINTOP partnership. This type of income is definitely something to watch quarter-to-quarter; it's not a steady base, but it certainly helped Q3 net income. Finance: draft 13-week cash view by Friday.