RED RIVER BANCSHARES INC - Quarter Report: 2025 June (Form 10-Q)

The accompanying notes are an integral part of these unaudited consolidated financial statements.

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RED RIVER BANCSHARES, INC.

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

For the Three Months Ended June 30,

For the Six Months Ended June 30,

(in thousands, except per share data)

2025

2024

2025

2024

INTEREST AND DIVIDEND INCOME

Interest and fees on loans

Interest on securities

Interest on deposits in other banks

Dividends on stock

Total Interest and Dividend Income

INTEREST EXPENSE

Interest on deposits

Total Interest Expense

Net Interest Income

Provision for credit losses

Net Interest Income After Provision for Credit Losses

NONINTEREST INCOME

Service charges on deposit accounts

Debit card income, net

Mortgage loan income

Brokerage income

Loan and deposit income

Bank-owned life insurance income

Gain (Loss) on equity securities

()

SBIC income

Other income (loss)

Total Noninterest Income

OPERATING EXPENSES

Personnel expenses

Occupancy and equipment expenses

Technology expenses

Advertising

Other business development expenses

Data processing expense

Other taxes

Loan and deposit expenses

Legal and professional expenses

Regulatory assessment expenses

Other operating expenses

Total Operating Expenses

Income Before Income Tax Expense

Income tax expense

Net Income

EARNINGS PER SHARE

Basic

Diluted

The accompanying notes are an integral part of these unaudited consolidated financial statements.

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RED RIVER BANCSHARES, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)


	For the Three Months Ended June 30,		For the Six Months Ended June 30,
(in thousands)	2025	2024	2025	2024
Net income	$	$	$	$
Other comprehensive income (loss):
Unrealized net gain (loss) on securities arising during period	()			()
Tax effect		()	()


Change in unrealized net loss on securities transferred to held-to-maturity
Tax effect	()	()	()	()
Total other comprehensive income (loss)	()			()
Comprehensive Income (Loss)	$	$	$	$

The accompanying notes are an integral part of these unaudited consolidated financial statements.

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RED RIVER BANCSHARES, INC.

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (UNAUDITED)

(dollars in thousands, except per share amounts)

Common
Shares Issued

Common
Stock

Additional Paid-In Capital

Retained
Earnings

Accumulated
Other
Comprehensive
Income (Loss)

Total
Stockholders’
Equity

Balance as of December 31, 2023

()

Net income

—

Stock incentive plan

—

Issuance of shares of common stock as board compensation

—

Repurchase of common stock

()

—

()

Cash dividend - $ per share

—

()

—

()

Other comprehensive income (loss)

—

()

Balance as of March 31, 2024

()

Net income

—

Stock incentive plan

—

Issuance of restricted shares of common stock through stock incentive plan

—

Repurchase of common stock

()

—

()

Cash dividend - $ per share

—

()

—

()

Other comprehensive income (loss)

—

Balance as of June 30, 2024

()

Balance as of December 31, 2024

()

Net income

—

Stock incentive plan

—

Forfeiture of restricted shares of common stock

()

—

Issuance of shares of common stock as board compensation

—

Cash dividend - $ per share

—

()

—

()

Other comprehensive income (loss)

—

Balance as of March 31, 2025

()

Net income

—

Stock incentive plan

—

Forfeiture of restricted shares of common stock

()

—

Issuance of restricted shares of common stock through stock incentive plan

—

Repurchase of common stock, including excise tax

()

—

()

Cash dividend - $ per share

—

()

—

()

Other comprehensive income (loss)

—

()

Balance as of June 30, 2025

()

Capital contribution in partnerships()()Return of capital in partnerships Net (increase) decrease in loans HFI()()Proceeds from sales of foreclosed assets Proceeds from sales of premises and equipment Purchases of premises and equipment()()Net cash provided by (used in) investing activities()()CASH FLOWS FROM FINANCING ACTIVITIESNet increase (decrease) in deposits ()Repurchase of common stock, excluding excise tax()()Cash dividends()()Net cash provided by (used in) financing activities()()Net change in cash and cash equivalents()()Cash and cash equivalents - beginning of period Cash and cash equivalents - end of period$ $

The accompanying notes are an integral part of these unaudited consolidated financial statements.

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RED RIVER BANCSHARES, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED) (UNAUDITED)


	For the Six Months Ended June 30,
(in thousands)	2025	2024
SUPPLEMENTAL DISCLOSURES
Cash paid during the period for:
Interest	$	$
Income taxes	$	$
SUPPLEMENTAL INFORMATION FOR NON-CASH INVESTING AND FINANCING ACTIVITIES
Assets acquired in settlement of loans	$	$

The accompanying notes are an integral part of these unaudited consolidated financial statements.

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RED RIVER BANCSHARES, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

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million as of June 30, 2025.

Securities AFS and Securities HTM

Securities AFS and securities HTM are debt securities. Securities AFS are held for indefinite periods of time and are carried at estimated fair value. As of June 30, 2025, the estimated fair value of securities AFS was $ million. The net unrealized loss on securities AFS decreased $ million for the six months ended June 30, 2025, resulting in a net unrealized loss of $ million as of June 30, 2025.

Securities HTM, which the Company has the intent and ability to hold until maturity, are carried at amortized cost. As of June 30, 2025, the amortized cost of securities HTM was $ million.

Investment activity for the six months ended June 30, 2025, included $ million of securities purchased, partially offset by $ million in maturities, principal repayments, and calls. There were sales of securities AFS, and there were purchases or sales of securities HTM for the same period.

$ $()$ Municipal bonds () U.S. agency securities () Total Securities AFS$ $ $()$ Securities HTM:Mortgage-backed securities$ $ $()$ U.S. agency securities () Total Securities HTM$ $ $()$

December 31, 2024

(in thousands)

Amortized
Cost

Gross
Unrealized
Gains

Gross
Unrealized
Losses

Fair
Value

Securities AFS:

Mortgage-backed securities

()

Municipal bonds

()

U.S. Treasury securities

()

U.S. agency securities

()

Total Securities AFS

()

Securities HTM:

Mortgage-backed securities

()

U.S. agency securities

()

Total Securities HTM

()

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$ After one year but within five years After five years but within ten years After ten years Total Securities AFS$ $ Securities HTM:Within one year$ $ After one year but within five years After five years but within ten years After ten years Total Securities HTM$ $

Accounting for Credit Losses – Securities AFS and Securities HTM

The Company evaluates securities AFS for impairment when there has been a decline in fair value below the amortized cost basis of a security to determine whether there is a credit loss associated with the decline in fair value on at least a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Due to the zero credit loss assumption and the evaluation of the considerations applied to the securities AFS, there was ACL recorded for securities AFS as of June 30, 2025 and December 31, 2024. Also, as part of the Company’s evaluation of its intent and ability to hold investments for a period of time sufficient to allow for any anticipated recovery in the market, the Company considers its investment strategy, cash flow needs, liquidity position, capital adequacy, and interest rate risk position. Management does not intend to sell these securities prior to recovery, and it is more likely than not that the Company will have the ability to hold them, primarily due to adequate liquidity, until each security has recovered its cost basis.

Due to the zero credit loss assumption on the securities HTM portfolio, there was ACL recorded for securities HTM as of June 30, 2025 and December 31, 2024.

Accrued interest receivable totaled $ million as of June 30, 2025 and December 31, 2024, for securities AFS and securities HTM and was reported in accrued interest receivable on the consolidated balance sheets.

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)$ $()$ Municipal bonds() () U.S. agency securities() () Total Securities AFS$()$ $()$ December 31, 2024Less than twelve monthsTwelve months or more(in thousands)Gross
Unrealized
LossesFair
ValueGross
Unrealized
LossesFair
ValueSecurities AFS:Mortgage-backed securities$()$ $()$ Municipal bonds() () U.S. Treasury securities () U.S. agency securities() () Total Securities AFS$()$ $()$

As of June 30, 2025, the Company held securities AFS that were in unrealized loss positions. The aggregate unrealized loss of these securities AFS as of June 30, 2025, was % of the amortized cost basis of securities AFS.

For the three and six months ended June 30, 2025 and 2024, there were proceeds from sales of debt securities.

Equity Securities

Equity securities are an investment in a CRA mutual fund, consisting primarily of bonds. Equity securities are carried at fair value on the consolidated balance sheets with periodic changes in value recorded through the consolidated statements of income. As of June 30, 2025, equity securities had a fair value of $ million with a recognized gain of $ for the six months ended June 30, 2025. As of December 31, 2024, equity securities had a fair value of $ million with a recognized loss of $ for the year ended December 31, 2024.

Pledged Securities

million and $ million were used as collateral as of June 30, 2025 and December 31, 2024, respectively.

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$()$ $ ) $ $

Loan Modifications

Modifications are made to a borrower experiencing financial difficulty, and the modified terms are in the form of principal forgiveness, interest rate reduction, other-than-insignificant payment delay, or a term extension in the current reporting period. For the periods ended June 30, 2025 and 2024, modifications were made to certain borrowers by granting term extensions. These term extensions were not significant to the consolidated financial statements.

Credit Quality Indicators

Loans are categorized based on the degree of risk inherent in the credit and the ability of the borrower to service the debt. A description of the general characteristics of the Bank’s risk rating grades follows:

Pass - These loans are of satisfactory quality and do not require a more severe classification.

Special mention - This category includes loans with potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan. However, the loss potential does not warrant substandard classification.

Substandard - Loans in this category have well-defined weaknesses that jeopardize normal repayment of principal and interest. Prompt corrective action is required to reduce exposure and to assure adequate remedial actions are taken by the borrower. If these weaknesses do not improve, loss is possible.

Doubtful - Loans in this category have well-defined weaknesses that make full collection improbable.

Loss - Loans classified in this category are considered uncollectible and charged-off to the ACL.

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$ $ $ $ $ $ $ Special Mention Substandard Total$ $ $ $ $ $ $ $ One-to-four family residentialPass$ $ $ $ $ $ $ $ Special Mention Substandard Total$ $ $ $ $ $ $ $ Construction and developmentPass$ $ $ $ $ $ $ $ Special Mention Substandard Total$ $ $ $ $ $ $ $ Commercial and industrialPass$ $ $ $ $ $ $ $ Special Mention Substandard Total$ $ $ $ $ $ $ $ Tax-exemptPass$ $ $ $ $ $ $ $ Special Mention Substandard Total$ $ $ $ $ $ $ $ ConsumerPass$ $ $ $ $ $ $ $ Special Mention Substandard Total$ $ $ $ $ $ $ $ Total loans HFI$ $ $ $ $ $ $ $ Gross charge-offs$ $ $ $ $ $ $ $

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billion as of June 30, 2025 and December 31, 2024. The $ million increase was primarily a result of higher balances in commercial customer deposit accounts, partially offset by the seasonal outflow of funds from public entity customers and income tax payments. $ Interest-bearing deposits:Interest-bearing demand deposits NOW accounts Money market accounts Savings accounts Time deposits less than or equal to $250,000 Time deposits greater than $250,000 Total interest-bearing deposits$ $ Total deposits$ $

Collateral for Deposits

As of June 30, 2025 and December 31, 2024, securities and FHLB letters of credit with values of approximately $ million and $ million, respectively, were pledged as collateral to secure public entity deposits.

outstanding borrowings under these agreements.

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$ $ $ Securities AFS:Mortgage-backed securities$ $ $ $ Municipal bonds$ $ $ $

The Company had no nonfinancial liabilities measured at fair value on a nonrecurring basis as of June 30, 2025 and December 31, 2024.

Discounted appraisalsCollateral discounts and costs to sell

% - %

%Foreclosed assets$ Discounted appraisalsCollateral discounts and costs to sellN/AN/ADecember 31, 2024Collateral dependent loans$ Discounted appraisalsCollateral discounts and costs to sell

% - %

%Foreclosed assets$ Discounted appraisalsCollateral discounts and costs to sellN/AN/A

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$ $ $ $ Interest-bearing deposits in other banks$ $ $ $ $ Securities AFS$ $ $ $ $ Securities HTM$ $ $ $ $ Equity securities$ $ $ $ $ Nonmarketable equity securities$ $ $ $ $ Loans HFS$ $ $ $ $ Loans HFI, net of allowance$ $ $ $ $ Accrued interest receivable$ $ $ $ $ Financial liabilities:Deposits$ $ $ $ $ Accrued interest payable$ $ $ $ $ December 31, 2024Financial assets:Cash and due from banks$ $ $ $ $ Interest-bearing deposits in other banks$ $ $ $ $ Securities AFS$ $ $ $ $ Securities HTM$ $ $ $ $ Equity securities$ $ $ $ $ Nonmarketable equity securities$ $ $ $ $ Loans HFS$ $ $ $ $ Loans HFI, net of allowance$ $ $ $ $ Accrued interest receivable$ $ $ $ $ Financial liabilities:Deposits$ $ $ $ $ Accrued interest payable$ $ $ $ $

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%$ %Tier I Risk-Based Capital$ %$ %Common Equity Tier I Capital$ %$ %Tier I Leverage Capital$ %$ %December 31, 2024Total Risk-Based Capital$ %$ %Tier I Risk-Based Capital$ %$ %Common Equity Tier I Capital$ %$ %Tier I Leverage Capital$ %$ %

Capital amounts and ratios for the Bank as of June 30, 2025 and December 31, 2024, are presented in the following table (Basel III Minimum includes the capital conservation buffer):

Regulatory Requirements

Actual

Basel III Minimum

Well-Capitalized(1)

(dollars in thousands)

Amount

Ratio

Amount

Ratio

Amount

Ratio

June 30, 2025

Total Risk-Based Capital

Tier I Risk-Based Capital

Common Equity Tier I Capital

Tier I Leverage Capital

December 31, 2024

Total Risk-Based Capital

Tier I Risk-Based Capital

Common Equity Tier I Capital

Tier I Leverage Capital

(1)This column refers to the prompt corrective action requirements applicable to banks.

Community Bank Leverage Ratio Framework

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. 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. Specifically, depository institutions and depository institution holding companies that have less than $10.0 billion in total consolidated assets and meet other qualifying criteria, including a Tier 1 leverage ratio of greater than 9.00%, are considered qualifying community banking organizations eligible to opt into the CBLR framework and replace the applicable Basel III risk-based capital requirements.

As of June 30, 2025, the Company and the Bank qualify for the CBLR framework. Management does not intend to utilize the CBLR framework.

million of its 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.

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shares of its common stock at an aggregate cost of $, excluding excise tax, under the stock repurchase program. As of June 30, 2025, the Company had $ million available for repurchasing its common stock under the 2025 stock repurchase program.

On May 22, 2025, the Company entered into a privately negotiated stock repurchase agreement for the purchase of shares of the Company’s common stock for a total purchase price of approximately $ million, excluding excise tax. This repurchase was supplemental to the Company’s 2025 stock repurchase program and did not impact the amount of permitted repurchases thereunder.

Effective January 1, 2023, stock repurchases are subject to a nondeductible excise tax under the Inflation Reduction Act of 2022 equal to % of the fair market value of the shares repurchased, subject to certain limitations. For the three and six months ended June 30, 2025, $ of stock repurchase excise tax was recorded.

AOCI - Transfer of Unrealized Gain (Loss) of Securities AFS and HTM

During the second quarter of 2022, the Company reclassified $ million, net of $ million of unrealized loss, from AFS to HTM. The securities were transferred at fair value, which became the cost basis for the securities HTM. At the date of the transfer, the net unrealized loss of $ million, of which $ million, net of tax, was included in AOCI and is being amortized over the remaining life of the securities as a yield adjustment in a manner consistent with the amortization or accretion of the original purchase premium or discount on the associated security. There were no gains or losses recognized as a result of the transfer. As of June 30, 2025, the net unamortized, unrealized loss remaining on the transferred securities included in the consolidated balance sheets totaled $ million, of which $ million, net of tax, was included in AOCI.

10.

$ $ $ Net income - diluted$ $ $ $ Denominator:Weighted average shares outstanding - basic Plus: Effect of Director Compensation Program Plus: Effect of restricted stock Weighted average shares outstanding - diluted Earnings per common share:Basic$ $ $ $ Diluted$ $ $ $

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11.

reportable operating segment. $ $ $ Interest expense Provision for credit losses Noninterest income Depreciation and amortization Other operating expenses Income before income tax expense$ $ $ $ Income tax expense Segment net income$ $ $ $ Adjustments and reconciling items Consolidated net income$ $ $ $

Banking operations segment assets were $ billion and $ billion as of June 30, 2025 and December 31, 2024, respectively.

12.

shares of the Company’s common stock, no par value per share, for a total purchase price of approximately $ million. This repurchase was supplemental to the Company’s 2025 stock repurchase program and did not impact the amount of permitted repurchases thereunder.

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Item 2. 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 of Red River Bancshares, Inc. on a consolidated basis from December 31, 2024 through June 30, 2025, and on our results of operations for the quarters ended June 30, 2025 and March 31, 2025, and for the six months ended June 30, 2025 and June 30, 2024.

This discussion and analysis should be read in conjunction with our audited consolidated financial statements and notes thereto for the year ended December 31, 2024, included in our Annual Report on Form 10-K for the year ended December 31, 2024, and information presented elsewhere in this Report, particularly the unaudited consolidated financial statements and related notes appearing in Item 1.

The following discussion contains forward-looking statements that reflect our current views with respect to, among other things, future events and our financial performance. We caution that assumptions, expectations, projections, intentions, or beliefs about future events may, and often do, vary from actual results and the differences can be material. See “Cautionary Note Regarding Forward-Looking Statements” and “Part II - Item 1A. Risk Factors” in this Report. Also, see risk factors and other cautionary statements described in “Part I - Item 1A. Risk Factors” included in our Annual Report on Form 10-K for the year ended December 31, 2024. We do not undertake any obligation to publicly update any forward-looking statements except as otherwise required by applicable law.

CORPORATE SUMMARY

Red River Bancshares, Inc. is the bank holding company for Red River Bank, a Louisiana state-chartered bank established in 1999 that provides a fully integrated suite of banking products and services tailored to the needs of our commercial and retail customers. Red River Bank operates from a network of 28 banking centers throughout Louisiana and one combined LDPO in New Orleans, Louisiana. 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.

Our priority is to drive shareholder value through the establishment of a market-leading commercial banking franchise based in Louisiana. We provide our services through relationship-oriented bankers who are committed to their customers and the communities where we offer our products and services. 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.

SECOND QUARTER 2025 FINANCIAL AND OPERATIONAL HIGHLIGHTS

In the second quarter of 2025, we had an improved net interest margin and steady loan growth, which resulted in higher net interest income. We completed a significant private stock repurchase transaction, which complemented our public stock repurchase program activity. Also, in the second quarter, we revised our credit card program.

•Net income for the second quarter of 2025 was $10.2 million, or $1.51 diluted EPS, a decrease of $156,000, or 1.5%, compared to $10.4 million, or $1.52 diluted EPS, for the first quarter of 2025. Net income for the second quarter was impacted by a $1.2 million increase in net interest income, which was offset by a $554,000 decrease in noninterest income, along with an expected $779,000 increase in operating expenses. Net income for the first quarter benefited from approximately $620,000 of periodic items that reduced operating expenses.

•For the second quarter of 2025, the return on assets was 1.30%, and the return on equity was 12.27%.

•Net interest income and net interest margin FTE increased for the second quarter of 2025 compared to the prior quarter. Net interest income for the second quarter of 2025 was $25.8 million, which was $1.2 million, or 4.9%, higher than $24.6 million for the prior quarter. Net interest margin FTE increased 14 bps to 3.36% for the second quarter of 2025, compared to 3.22% for the prior quarter. These improvements were the result of higher securities and loan yields and a lower cost of deposits, along with an improved asset mix.

•As of June 30, 2025, assets were $3.17 billion, which was $18.3 million, or 0.6%, lower than March 31, 2025. This slight decrease was mainly due to a $15.1 million decrease in deposits.

•Deposits totaled $2.81 billion as of June 30, 2025, a decrease of $15.1 million, or 0.5%, compared to $2.83 billion as of March 31, 2025. In the second quarter of 2025, deposit activity was normal and included the seasonal outflow of funds for income tax payments.

•As of June 30, 2025, loans HFI were $2.14 billion, which was $23.8 million, or 1.1%, higher than $2.11 billion as of March 31, 2025. In the second quarter of 2025, we had steady new loan closing activity, combined with funding of loan construction commitments.

•As of June 30, 2025, total securities were $697.3 million, which was fairly consistent with $699.5 million as of March 31, 2025. We were able to reinvest the cash flows of maturing securities into securities with higher yields.

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•As of June 30, 2025, liquid assets, which are cash and cash equivalents, were $210.4 million, and the liquid assets to assets ratio was 6.64%. We do not have any borrowings, brokered deposits, or internet-sourced deposits.

•As of June 30, 2025, NPAs were $1.3 million, or 0.04% of assets, and the ACL was $22.2 million, or 1.04% of loans HFI.

•We paid a quarterly cash dividend of $0.12 per common share in the second quarter of 2025.

•The 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. No shares were repurchased in the first quarter of 2025. In the second quarter of 2025, we repurchased 11,748 shares on the open market at an aggregate cost of $656,000, excluding excise tax. As of June 30, 2025, the 2025 stock repurchase program had $4.3 million of available capacity.

•On May 22, 2025, we entered into a privately negotiated stock repurchase agreement for the repurchase of 100,000 shares of our common stock at a purchase price of $5.1 million, excluding excise tax. This repurchase was supplemental to our 2025 stock repurchase program.

•In the second quarter of 2025, we changed our credit card program provider to align with our debit card program provider.

•On July 24, 2025, our board of directors announced that the cash dividend for the third quarter of 2025 will be $0.15 per common share, which is a 25.0% increase from $0.12 per common share paid for each of the first and second quarters of 2025.

The following tables contain selected financial information regarding our financial position and performance as of and for the periods indicated:


	As of				Change from December 31, 2024 to June 30, 2025
(in thousands)	June 30, 2025		December 31, 2024		$ Change	% Change
Selected Period End Balance Sheet Data:
Total assets	$	3,168,092	$	3,149,594	18,498	0.6	%
Interest-bearing deposits in other banks	$	167,989	$	238,417	(70,428)	(29.5	%)
Securities available-for-sale, at fair value	$	566,981	$	550,148	16,833	3.1	%
Securities held-to-maturity, at amortized cost	$	127,305	$	131,796	(4,491)	(3.4	%)
Loans held for investment	$	2,138,580	$	2,075,013	63,567	3.1	%
Total deposits	$	2,810,605	$	2,805,106	5,499	0.2	%
Total stockholders’ equity	$	335,350	$	319,739	15,611	4.9	%

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	As of and for the Three Months Ended									As of and for the Six Months Ended
(dollars in thousands, except per share data)	June 30, 2025			March 31, 2025			June 30, 2024			June 30, 2025			June 30, 2024
Net Income	$	10,196		$	10,352		$	7,987		$	20,548		$	16,175

Per Common Share Data:
Earnings per share, basic	$	1.51		$	1.53		$	1.16		$	3.04		$	2.32
Earnings per share, diluted	$	1.51		$	1.52		$	1.16		$	3.03		$	2.31
Book value per share	$	50.23		$	49.18		$	44.58		$	50.23		$	44.58
Tangible book value per share(1,2)	$	50.00		$	48.95		$	44.35		$	50.00		$	44.35
Realized book value per share(1,3)	$	58.92		$	57.49		$	53.54		$	58.92		$	53.54
Cash dividends per share	$	0.12		$	0.12		$	0.09		$	0.24		$	0.18
Shares outstanding	6,676,609			6,777,657			6,886,928			6,676,609			6,886,928
Weighted average shares outstanding, basic	6,740,312			6,777,332			6,896,030			6,758,720			6,973,039
Weighted average shares outstanding, diluted	6,764,886			6,796,707			6,914,140			6,783,575			6,991,618

Summary Performance Ratios:
Return on average assets	1.30		%	1.32		%	1.05		%	1.31		%	1.06		%
Return on average equity	12.27		%	12.85		%	10.69		%	12.55		%	10.73		%
Net interest margin	3.31		%	3.17		%	2.87		%	3.24		%	2.83		%
Net interest margin FTE(4)	3.36		%	3.22		%	2.92		%	3.29		%	2.89		%
Efficiency ratio(5)	56.87		%	55.51		%	62.07		%	56.20		%	61.23		%
Loans HFI to deposits ratio	76.09		%	74.84		%	75.38		%	76.09		%	75.38		%
Noninterest-bearing deposits to deposits ratio	31.95		%	32.08		%	32.87		%	31.95		%	32.87		%
Noninterest income to average assets	0.60		%	0.67		%	0.67		%	0.64		%	0.66		%
Operating expense to average assets	2.21		%	2.12		%	2.19		%	2.16		%	2.13		%

Summary Credit Quality Ratios:
NPAs to assets	0.04		%	0.16		%	0.11		%	0.04		%	0.11		%
Nonperforming loans to loans HFI	0.05		%	0.24		%	0.16		%	0.05		%	0.16		%
ACL to loans HFI	1.04		%	1.03		%	1.06		%	1.04		%	1.06		%
Net charge-offs to average loans	0.00		%	0.02		%	0.01		%	0.02		%	0.02		%

Capital Ratios:
Stockholders’ equity to assets	10.59		%	10.46		%	10.07		%	10.59		%	10.07		%
Tangible common equity to tangible assets(1,6)	10.54		%	10.42		%	10.02		%	10.54		%	10.02		%
Total risk-based capital to risk-weighted assets	18.33		%	18.25		%	18.01		%	18.33		%	18.01		%
Tier I risk-based capital to risk-weighted assets	17.32		%	17.25		%	16.99		%	17.32		%	16.99		%
Common equity Tier I capital to risk-weighted assets	17.32		%	17.25		%	16.99		%	17.32		%	16.99		%
Tier I risk-based capital to average assets	12.18		%	12.01		%	11.74		%	12.18		%	11.74		%

(1)Non-GAAP financial measure. Calculations of this measure and reconciliations to GAAP are included in “- Non-GAAP Financial Measures” in this Report. This measure has not been audited.

(2)We calculate tangible book value per share as total stockholders’ equity, less intangible assets, divided by the outstanding number of shares of our common stock at the end of the relevant period.

(3)We calculate realized book value per share as total stockholders’ equity, less AOCI, divided by the outstanding number of shares of our common stock at the end of the relevant period.

(4)Net interest margin FTE includes an FTE adjustment using a 21.0% federal income tax rate on tax-exempt securities and tax-exempt loans.

(5)Efficiency ratio represents operating expenses divided by the sum of net interest income and noninterest income.

(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.

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RESULTS OF OPERATIONS

Net income for the second quarter of 2025 was $10.2 million, or $1.51 diluted EPS, a decrease of $156,000, or 1.5%, compared to $10.4 million, or $1.52 diluted EPS, for the first quarter of 2025. The decrease in net income was due to a $779,000 increase in operating expenses, a $554,000 decrease in noninterest income, and a $32,000 increase in income tax expense, partially offset by a $1.2 million increase in net interest income. The return on assets for the second quarter of 2025 was 1.30%, compared to 1.32% for the first quarter of 2025. The return on equity was 12.27% for the second quarter of 2025, compared to 12.85% for the first quarter of 2025. Our efficiency ratio for the second quarter of 2025 was 56.87%, compared to 55.51% for the first quarter of 2025.

Net income for the six months ended June 30, 2025, was $20.5 million, or $3.03 diluted EPS, an increase of $4.4 million, or 27.0%, compared to $16.2 million, or $2.31 diluted EPS, for the six months ended June 30, 2024. The increase in net income was due to a $7.3 million increase in net interest income, partially offset by a $1.4 million increase in operating expenses, a $1.2 million increase in income tax expense, a $300,000 increase in the provision for credit losses, and a $36,000 decrease in noninterest income. The return on assets for the six months ended June 30, 2025, was 1.31%, compared to 1.06% for the six months ended June 30, 2024. The return on equity was 12.55% for the six months ended June 30, 2025, compared to 10.73% for the six months ended June 30, 2024. Our efficiency ratio for the six months ended June 30, 2025, was 56.20%, compared to 61.23% for the six months ended June 30, 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. Changes in the amount and type of interest-earning assets and interest-bearing liabilities impact our net interest income. To evaluate net interest income, we measure and monitor: (1) yields on loans and other interest-earning assets; (2) the cost of deposits and other funding sources; (3) net interest spread; and (4) net interest margin. Since noninterest-bearing sources of funds, such as noninterest-bearing deposits and stockholders’ equity, also fund interest-earning assets, net interest margin includes the benefit of these noninterest-bearing funding sources.

In the first half of 2024, the target range for the federal funds rate was consistent at 5.25%-5.50%. In September of 2024, the FOMC decreased the federal funds rate by 50 bps and then by an additional 50 bps during the fourth quarter of 2024, reducing the target federal funds range to 4.25%-4.50%. The target range for the federal funds rate was unchanged in the first half of 2025. The average effective federal funds rate was 4.33% for the first and second quarters of 2025, compared to 5.33% for the first six months of 2024. Net interest income and net interest margin FTE increased in the second quarter of 2025, compared to the prior quarter. Also, net interest income and net interest margin FTE increased for the six months ended June 30, 2025, compared to the six months ended June 30, 2024.

Second Quarter of 2025 vs. First Quarter of 2025

Net interest income for the second quarter of 2025 was $25.8 million, which was $1.2 million, or 4.9%, higher than the first quarter of 2025, due to a $922,000 increase in interest and dividend income, combined with a $287,000 decrease in interest expense. The increase in interest and dividend income was mainly due to higher interest income on loans, partially offset by lower interest income on short-term liquid assets. Loan income increased $1.2 million due to higher yields on loans, combined with higher average loan balances. The income on short-term liquid assets decreased $598,000 due to a $57.5 million decrease in the average balance of these funds. The decrease in interest expense was due to lower rates on time deposits, along with a lower average balance on interest-bearing transaction deposits.

The net interest margin FTE increased 14 bps to 3.36% for the second quarter of 2025, compared to 3.22% for the prior quarter. This increase was due to improved yields on securities and loans, combined with lower deposit costs. The yield on securities increased 12 bps, primarily due to reinvesting lower yielding securities cash flows into higher yielding securities. The yield on loans increased 9 bps due to higher rates on new and renewed loans compared to the prior quarter. The average rate on new and renewed loans was 7.14% for the second quarter of 2025 and 7.02% for the prior quarter. The cost of deposits decreased 5 bps to 1.56% for the second quarter of 2025, compared to 1.61% for the previous quarter, primarily due to maturing time deposits repricing at lower rates.

The FOMC kept the federal funds rate consistent in the first half of 2025, with the target federal funds range remaining at 4.25%-4.50%. The market’s expectation is that the FOMC may lower the target range of the federal funds rate in the second half of 2025. During the remainder of 2025, we anticipate receiving approximately $50.0 million in securities cash flows with an average yield of 3.47%, and we project approximately $112.7 million of fixed rate loans will mature with an average yield of 6.14%. We expect to redeploy these balances into slightly higher yielding assets. Additionally, during the second half of 2025, we expect $439.0 million of time deposits to mature with an average rate of 3.71%. We anticipate maintaining a fairly consistent cost of deposits in the second half of 2025. As of June 30, 2025, floating rate loans were 18.0% of loans HFI, and floating rate transaction deposits were 8.9% of interest-bearing transaction deposits. Depending on balance sheet activity, the movement in interest rates, and the economic outlook, we expect the net interest income and net interest margin FTE to increase slightly in the third and fourth quarters of 2025.

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The following table presents average balance sheet information, interest income, interest expense, and the corresponding average yields earned and rates paid for the three months ended June 30, 2025 and March 31, 2025:


	For the Three Months Ended
	June 30, 2025						March 31, 2025
(dollars in thousands)	Average Balance Outstanding		Interest Income/ Expense		Average Yield/ Rate		Average Balance Outstanding		Interest Income/ Expense		Average Yield/ Rate
Assets
Interest-earning assets:
Loans(1,2)	$	2,123,613	$	29,500	5.50	%	$	2,089,712	$	28,270	5.41	%
Securities - taxable	573,069		4,169		2.91	%	559,752		3,871		2.77	%
Securities - tax-exempt	187,245		979		2.09	%	189,729		985		2.08	%

Interest-bearing deposits in other banks	186,283		2,063		4.38	%	243,751		2,661		4.37	%
Nonmarketable equity securities	2,351		19		3.25	%	2,330		21		3.56	%

Total interest-earning assets	3,072,561		$	36,730	4.74	%	3,085,274		$	35,808	4.64	%
Allowance for credit losses	(21,994)						(21,789)
Noninterest-earning assets	104,969						107,295
Total assets	$	3,155,536					$	3,170,780
Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Interest-bearing transaction deposits	$	1,282,240	$	5,472	1.71	%	$	1,341,885	$	5,641	1.70	%
Time deposits	597,433		5,439		3.65	%	592,368		5,557		3.80	%
Total interest-bearing deposits	1,879,673		10,911		2.33	%	1,934,253		11,198		2.35	%

Other borrowings	—		—		—	%	—		—		—	%
Total interest-bearing liabilities	1,879,673		$	10,911	2.33	%	1,934,253		$	11,198	2.35	%
Noninterest-bearing liabilities:
Noninterest-bearing deposits	919,770						884,484
Accrued interest and other liabilities	22,706						25,336
Total noninterest-bearing liabilities	942,476						909,820
Stockholders’ equity	333,387						326,707
Total liabilities and stockholders’ equity	$	3,155,536					$	3,170,780
Net interest income			$	25,819					$	24,610
Net interest spread					2.41	%					2.29	%
Net interest margin					3.31	%					3.17	%
Net interest margin FTE(3)					3.36	%					3.22	%
Cost of deposits					1.56	%					1.61	%
Cost of funds					1.42	%					1.47	%

(1)Includes average outstanding balances of loans HFS of $2.5 million and $2.6 million for the three months ended June 30, 2025 and March 31, 2025, respectively.

(2)Nonaccrual loans are included as loans carrying a zero yield.

(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.

Six Months Ended June 30, 2025 vs. Six Months Ended June 30, 2024

Net interest income for the six months ended June 30, 2025 was $50.4 million, which was $7.3 million, or 16.9%, higher than $43.2 million for the six months ended June 30, 2024. Net interest income increased due to a $5.8 million increase in interest and dividend income, combined with a $1.4 million decrease in interest expense.

The increase in interest and dividend income for the six months ended June 30, 2025, when compared to the six months ended June 30, 2024, was due to higher interest income on loans and securities, partially offset by a decrease in interest income on short-term liquid assets. Loan income increased $5.0 million due to higher rates on new and renewed loans compared to the existing portfolio yield, combined with higher average loan balances. Securities income increased $1.9 million primarily due to reinvesting lower yielding securities cash flows into higher yielding securities. Interest income on short-term liquid assets decreased $1.0 million due to the FOMC lowering the federal funds rate during the second half of 2024. The decrease in interest expense for the six months ended June 30, 2025, when compared to the six months ended June 30, 2024, was due to lower rates on total interest-bearing deposits, partially offset by a higher average balance in these deposits.

Net interest margin FTE increased 40 bps to 3.29% for the six months ended June 30, 2025, from 2.89% for the six months ended June 30, 2024, primarily due to higher yields on securities and loans, combined with lower deposit costs.

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These positive variances were partially offset by a 104 bp decrease to the yield on short-term liquid assets, due to the lower average federal funds rate for the six months ended June 30, 2025.

The yield on securities increased 49 bps mainly due to reinvesting lower yielding securities cash flows into higher yielding securities. The yield on loans increased 31 bps due to higher rates on new and renewed loans compared to the existing portfolio yield. The cost of deposits decreased 13 bps to 1.59% for the six months ended June 30, 2025, from 1.72% for the six months ended June 30, 2024, due to a 24 bp decrease in the rate on interest-bearing deposits. Within total interest-bearing deposits, the rate on time deposits and interest-bearing transaction deposits decreased 42 and 13 bps, respectively. These decreases occurred as we adjusted rates on selected transaction and time deposits during the second half of 2024 in response to the federal funds rate decreases by the FOMC. We also lowered selected time deposit rates in the first quarter of 2025.

The following table presents average balance sheet information, interest income, interest expense, and the corresponding average yields earned and rates paid for the six months ended June 30, 2025 and 2024:


	For the Six Months Ended
	June 30, 2025						June 30, 2024
(dollars in thousands)	Average Balance Outstanding		Interest Income/ Expense		Average Yield/ Rate		Average Balance Outstanding		Interest Income/ Expense		Average Yield/ Rate
Assets
Interest-earning assets:
Loans(1,2)	$	2,106,756	$	57,771	5.46	%	$	2,028,833	$	52,775	5.15	%
Securities - taxable	566,448		8,040		2.84	%	558,032		6,117		2.19	%
Securities - tax-exempt	188,480		1,963		2.08	%	195,886		2,015		2.06	%

Interest-bearing deposits in other banks	214,858		4,724		4.38	%	211,985		5,748		5.42	%
Nonmarketable equity securities	2,340		40		3.41	%	2,251		44		3.94	%

Total interest-earning assets	3,078,882		$	72,538	4.69	%	2,996,987		$	66,699	4.41	%
Allowance for credit losses	(21,892)						(21,528)
Noninterest-earning assets	106,126						98,559
Total assets	$	3,163,116					$	3,074,018
Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Interest-bearing transaction deposits	$	1,311,898	$	11,113	1.71	%	$	1,245,917	$	11,381	1.84	%
Time deposits	594,914		10,996		3.73	%	588,984		12,168		4.15	%
Total interest-bearing deposits	1,906,812		22,109		2.34	%	1,834,901		23,549		2.58	%

Other borrowings	—		—		—	%	1		—		4.78	%
Total interest-bearing liabilities	1,906,812		$	22,109	2.34	%	1,834,902		$	23,549	2.58	%
Noninterest-bearing liabilities:
Noninterest-bearing deposits	902,224						911,022
Accrued interest and other liabilities	24,014						24,961
Total noninterest-bearing liabilities	926,238						935,983
Stockholders’ equity	330,066						303,133
Total liabilities and stockholders’ equity	$	3,163,116					$	3,074,018
Net interest income			$	50,429					$	43,150
Net interest spread					2.35	%					1.83	%
Net interest margin					3.24	%					2.83	%
Net interest margin FTE(3)					3.29	%					2.89	%
Cost of deposits					1.59	%					1.72	%
Cost of funds					1.45	%					1.58	%

(1)Includes average outstanding balances of loans HFS of $2.6 million and $2.6 million for the six months ended June 30, 2025 and 2024, respectively.

(2)Nonaccrual loans are included as loans carrying a zero yield.

(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.

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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 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 periods presented.


	For the Three Months Ended						For the Six Months Ended
	June 30, 2025 vs. March 31, 2025						June 30, 2025 vs. June 30, 2024
	Increase (Decrease) Due to Change in				Total Increase		Increase (Decrease) Due to Change in				Total Increase
(in thousands)	Volume		Rate		(Decrease)(1)		Volume		Rate		(Decrease)(1)
Interest-earning assets:
Loans	$	459	$	771	$	1,230	$	2,028	$	2,968	$	4,996
Securities - taxable	92		206		298		92		1,831		1,923
Securities - tax-exempt	(13)		7		(6)		(76)		24		(52)

Interest-bearing deposits in other banks	(628)		30		(598)		79		(1,103)		(1,024)
Nonmarketable equity securities	—		(2)		(2)		2		(6)		(4)

Total interest-earning assets	$	(90)	$	1,012	$	922	$	2,125	$	3,714	$	5,839
Interest-bearing liabilities:
Interest-bearing transaction deposits	$	(251)	$	82	$	(169)	$	603	$	(871)	$	(268)
Time deposits	48		(166)		(118)		123		(1,295)		(1,172)
Total interest-bearing deposits	(203)		(84)		(287)		726		(2,166)		(1,440)

Other borrowings	—		—		—		—		—		—
Total interest-bearing liabilities	$	(203)	$	(84)	$	(287)	$	726	$	(2,166)	$	(1,440)
Increase (decrease) in net interest income	$	113	$	1,096	$	1,209	$	1,399	$	5,880	$	7,279

(1)The change in interest attributable to rate has been determined by applying the change in rate between periods to average balances outstanding in the earlier period. The change in interest due to volume has been determined by applying the rate from the earlier period to the change in average balances outstanding between periods. Changes attributable to both rate and volume that cannot be segregated have been allocated to rate.

Provision for Credit Losses

The provision for credit losses is the amount necessary to maintain the ACL and the reserve for unfunded commitments at a level considered appropriate by management. Factors impacting the provision include loan portfolio growth, changes in the quality and composition of the loan portfolio, the level of nonperforming loans, delinquency and charge-off trends, the level of unfunded commitments, and current economic conditions.

The table below presents, for the periods indicated, the provision for credit losses:


(dollars in thousands)	June 30, 2025		March 31, 2025		Increase (Decrease)
Provision for credit losses	$	450	$	450	$	—	—	%

The provision for credit losses for the second quarter of 2025 was $450,000 for loans, which was consistent with the prior quarter. The provision in the first and second quarters of 2025 was due to loan growth, combined with uncertainty regarding tariffs and trade. We will continue to evaluate future provision needs in relation to current economic situations, loan growth, trends in asset quality, forecasted information, and other conditions influencing loss expectations.

The table below presents, for the periods indicated, the provision for credit losses:


(dollars in thousands)	June 30, 2025		June 30, 2024		Increase (Decrease)
Provision for credit losses	$	900	$	600	$	300	50.0	%

The provision for credit losses for the six months ended June 30, 2025 was $900,000 for loans, an increase of $300,000, or 50.0%, from $600,000 for the six months ended June 30, 2024. The increase for the first six months of 2025 was

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related to loan growth, combined with uncertainty regarding tariffs and trade. The provision for the first six months of 2024 was due to the inflationary environment, changing monetary policy, economic forecasts, and loan growth.

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.

Second Quarter of 2025 vs. First Quarter of 2025

Noninterest income decreased $554,000 to $4.7 million for the second quarter of 2025 compared to $5.3 million for the first quarter of 2025. The decrease in noninterest income was mainly due to lower brokerage income and SBIC income.

The table below presents, for the periods indicated, the major categories of noninterest income:


(dollars in thousands)	June 30, 2025		March 31, 2025		Increase (Decrease)
Noninterest income:
Service charges on deposit accounts	$	1,337	$	1,383	$	(46)	(3.3	%)
Debit card income, net	1,081		992		89		9.0	%
Mortgage loan income	567		530		37		7.0	%
Brokerage income	989		1,325		(336)		(25.4	%)
Loan and deposit income	418		459		(41)		(8.9	%)
Bank-owned life insurance income	224		213		11		5.2	%
Gain (Loss) on equity securities	9		44		(35)		(79.5	%)

SBIC income	47		280		(233)		(83.2	%)
Other income (loss)	46		46		—		—	%
Total noninterest income	$	4,718	$	5,272	$	(554)	(10.5	%)

(44)97 220.5%9,990 $10,026 $(36)(0.4%)

SBIC income decreased $479,000 to $327,000 for the six months ended June 30, 2025, compared to the same period prior year. This decrease was mainly due to fund value adjustments in the first half of 2025 as an SBIC fund enters its wind-down phase. In the first half of 2024, we received $114,000 of distribution payments, in addition to normal income.

Loan and deposit income decreased $107,000 to $877,000 for the six months ended June 30, 2025, compared to the same period prior year. Credit card income, net of expenses, is reported in loan and deposit income. In the second quarter of 2025, we changed our credit card program provider to align with our debit card program provider, which resulted in increased credit card expenses.

Brokerage income increased $434,000 to $2.3 million for the six months ended June 30, 2025, compared to the same period prior year, due to increased investing activity by clients in the first half of 2025. Assets under management were $1.19 billion and $1.09 billion as of June 30, 2025 and 2024, respectively.

Debit card income, net, increased $103,000 to $2.1 million for the six months ended June 30, 2025, compared to the same period prior year. For the six months ended June 30, 2025, debit card expenses were lower due to the new debit card provider contract. The first half of 2024 benefited from $145,000 of nonrecurring income due to the termination of our prior debit card provider contract.

Operating Expenses

Operating expenses are composed of all employee expenses and costs associated with operating our facilities, obtaining and retaining customer relationships, and providing services.

Second Quarter of 2025 vs. First Quarter of 2025

Operating expenses increased $779,000 to $17.4 million for the second quarter of 2025, compared to $16.6 million for the first quarter of 2025. The increase in operating expenses was mainly due to higher data processing expense, loan and deposit expenses, and personnel expenses.

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The following table presents, for the periods indicated, the major categories of operating expenses:


(dollars in thousands)	June 30, 2025		March 31, 2025		Increase (Decrease)
Operating expenses:
Personnel expenses	$	10,216	$	10,023	$	193	1.9	%
Non-staff expenses:
Occupancy and equipment expenses	1,753		1,794		(41)		(2.3	%)
Technology expenses	821		835		(14)		(1.7	%)
Advertising	286		333		(47)		(14.1	%)
Other business development expenses	455		558		(103)		(18.5	%)
Data processing expense	721		288		433		150.3	%
Other taxes	609		612		(3)		(0.5	%)
Loan and deposit expenses	398		62		336		541.9	%
Legal and professional expenses	612		632		(20)		(3.2	%)
Regulatory assessment expenses	388		391		(3)		(0.8	%)
Other operating expenses	1,108		1,060		48		4.5	%
Total operating expenses	$	17,367	$	16,588	$	779	4.7	%

Data processing expense increased $433,000 to $721,000 for the second quarter of 2025, compared to the prior quarter. The first quarter of 2025 benefited from the receipt of a $447,000 periodic refund from our data processing center.

Loan and deposit expenses increased $336,000 to $398,000 for the second quarter of 2025, compared to the prior quarter. The first quarter of 2025 benefited from the receipt of a $173,000 negotiated, variable rebate from a vendor. Also, in the second quarter of 2025, there was an increase in loan-related expenses due to the timing of mortgage expenses and higher collections expense.

Personnel expenses increased $193,000 to $10.2 million for the second quarter of 2025, compared to the prior quarter. This increase was primarily due to annual raises effective April 2025. As of June 30, 2025 and March 31, 2025, we had 374 and 375 total employees, respectively.

Six Months Ended June 30, 2025 vs. Six Months Ended June 30, 2024

Operating expenses increased $1.4 million to $34.0 million for the six months ended June 30, 2025, compared to $32.6 million for the six months ended June 30, 2024. The increase in operating expenses was mainly due to higher personnel expenses, occupancy and equipment expenses, technology expenses, loan and deposit expenses, and data processing expense.

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The following table presents, for the periods indicated, the major categories of operating expenses:


(dollars in thousands)	June 30, 2025		June 30, 2024		Increase (Decrease)
Operating expenses:
Personnel expenses	$	20,239	$	19,154	$	1,085	5.7	%
Non-staff expenses:
Occupancy and equipment expenses	3,548		3,314		234		7.1	%
Technology expenses	1,655		1,433		222		15.5	%
Advertising	619		745		(126)		(16.9	%)
Other business development expenses	1,013		1,068		(55)		(5.1	%)
Data processing expense	1,009		998		11		1.1	%
Other taxes	1,221		1,237		(16)		(1.3	%)
Loan and deposit expenses	460		267		193		72.3	%
Legal and professional expenses	1,244		1,347		(103)		(7.6	%)
Regulatory assessment expenses	779		805		(26)		(3.2	%)
Other operating expenses	2,168		2,194		(26)		(1.2	%)
Total operating expenses	$	33,955	$	32,562	$	1,393	4.3	%

Personnel expenses increased $1.1 million to $20.2 million for the six months ended June 30, 2025, compared to the same period prior year. This increase was primarily due to an increase in headcount and increased revenue-based commission compensation. As of June 30, 2025 and 2024, we had 374 and 361 total employees, respectively.

Occupancy and equipment expenses increased $234,000 to $3.5 million for the six months ended June 30, 2025, compared to the same period prior year. This increase was primarily due to an increase in maintenance expense, a full period of expenses related to our New Orleans market 2024 expansion, and nonrecurring expenses related to a banking center renovation. The same period prior year had $67,000 of non-recurring expenses related to our new location in the New Orleans market and other 2024 property renovations.

Technology expenses increased $222,000 to $1.7 million for the six months ended June 30, 2025, compared to the same period prior year. This increase was primarily due to continued software technology enhancements and upgrades.

Loan and deposit expenses increased $193,000 to $460,000 for the six months ended June 30, 2025, compared to the same period prior year. In the first quarter of 2025, we received a $173,000 negotiated, variable rebate from a vendor compared to a $262,000 similar rebate in the same period prior year. Also, in the second quarter of 2025, there was an increase in loan-related expenses due to the timing of mortgage expenses and higher collections expense.

Data processing expense increased $11,000 to $1.0 million for the six months ended June 30, 2025, compared to the same period prior year. This increase was due to new expenses and $25,000 of nonrecurring implementation fees related to our first quarter 2025 online, mobile banking, and bill payment system upgrades. This increase was partially offset by the receipt of a $447,000 periodic refund from our data processing center in the first quarter of 2025, compared to a $284,000 similar refund in the same period prior year.

Income Tax Expense

The amount of income tax expense is influenced by the amounts of our pre-tax income, tax-exempt income, and other nondeductible expenses. Deferred tax assets and liabilities are reflected at currently enacted income tax rates in effect for the period in which the deferred tax assets and liabilities are expected to be realized or settled. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes.

Our accrued tax rate is based on an annualized projection and changes considering our most recent financial results and balances. 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.

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The table below presents, for the periods indicated, income tax expense:


(dollars in thousands)	June 30, 2025		March 31, 2025		Increase (Decrease)
Income tax expense	$	2,524	$	2,492	$	32	1.3	%

For the quarters ended June 30, 2025 and March 31, 2025, income tax expense remained consistent at $2.5 million. The slight increase in income tax expense was due to the increase to our accrued tax rate during the second quarter of 2025. Our effective income tax rates for the quarters ended June 30, 2025 and March 31, 2025, were 19.8% and 19.4%, respectively.

The table below presents, for the periods indicated, income tax expense:


(dollars in thousands)	June 30, 2025		June 30, 2024		Increase (Decrease)
Income tax expense	$	5,016	$	3,839	$	1,177	30.7	%

For the six months ended June 30, 2025 and 2024, income tax expense totaled $5.0 million and $3.8 million, respectively. The increase in income tax expense was primarily due to the increase in pre-tax income. Our effective income tax rates for the six months ended June 30, 2025 and 2024, were 19.6% and 19.2%, respectively.

FINANCIAL CONDITION

As of June 30, 2025, assets were $3.17 billion, which was $18.5 million, or 0.6%, higher than $3.15 billion as of December 31, 2024. Total deposits were consistent at $2.81 billion as of June 30, 2025 and December 31, 2024. Cash and cash equivalents decreased $58.5 million, or 21.8%, to $210.4 million and were 6.64% of assets as of June 30, 2025. Total securities increased $12.4 million, or 1.8%, to $697.3 million and were 22.01% of assets as of June 30, 2025. Loans HFI increased $63.6 million, or 3.1%, to $2.14 billion as of June 30, 2025. As of June 30, 2025, and December 31, 2024, we had no borrowings. Stockholders’ equity increased $15.6 million during the first six months of 2025 to $335.4 million as of June 30, 2025. As of June 30, 2025, the loans HFI to deposits ratio was 76.09%, compared to 73.97% as of December 31, 2024, and the noninterest-bearing deposits to total deposits ratio was 31.95%, compared to 30.89% as of December 31, 2024.

Interest-bearing Deposits in Other Banks

Interest-bearing deposits in other banks were the third-largest component of earning assets as of June 30, 2025. Excess liquidity that is not being deployed into loans or securities is placed in these accounts. As of June 30, 2025, interest-bearing deposits in other banks were $168.0 million and 5.3% of assets, a decrease of $70.4 million, or 29.5%, compared to $238.4 million and 7.6% of assets as of December 31, 2024. This decrease was primarily due to funding loan and securities growth, which exceeded deposit growth in the first half of 2025.

Securities

Our securities portfolio is the second-largest component of earning assets and provides a significant source of revenue. Securities are classified as AFS, HTM, and equity securities. As of June 30, 2025, our total securities portfolio was 22.0% of assets. It is designed primarily to provide and maintain liquidity, generate a favorable return on investments without incurring unnecessary interest rate and credit risk, and complement our lending activities. We may invest in various types of liquid assets that are permissible under governing regulations and approved by our investment policy, which include U.S. Treasury obligations, U.S. government agency obligations, certificates of deposit of insured domestic banks, mortgage-backed and mortgage-related securities, corporate notes having an investment rating of “A” or better, municipal bonds, and certain equity securities.

Securities AFS and Securities HTM

Securities AFS and securities HTM are debt securities. Total debt securities on the consolidated balance sheets were $694.3 million as of June 30, 2025, an increase of $12.3 million, or 1.8%, 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. As of June 30, 2025, the estimated fair value of securities AFS was $567.0 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. The net unrealized loss on securities AFS decreased $2.2 million for the six months ended June 30, 2025, resulting in a net unrealized loss of $61.1 million as of June 30, 2025, compared to a net unrealized loss of $63.2 million as of December 31, 2024.

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Securities HTM, which we have the intent and ability to hold until maturity, are carried at amortized cost. As of June 30, 2025, the amortized cost of securities HTM was $127.3 million. Securities HTM had an unrealized loss of $22.4 million as of June 30, 2025, compared to an unrealized loss of $22.8 million as of December 31, 2024.

Investment activity for the six months ended June 30, 2025, included $68.5 million of securities purchased, partially offset by $58.4 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 securities portfolio tax-equivalent yield was 2.79% for the six months ended June 30, 2025, compared to 2.30% for the six months ended June 30, 2024. The increase in yield was primarily due to reinvesting lower yielding securities cash flows received between June 30, 2024 and June 30, 2025, into higher yielding securities.

The contractual maturity of mortgage-backed securities and collateralized mortgage obligations is not a reliable indicator of their expected lives because borrowers have the right to prepay their obligations at any time. Mortgage-backed securities and collateralized mortgage obligations are typically issued with stated principal amounts and are backed by pools of mortgage loans and other loans with varying maturities. The term of the underlying mortgages and loans may vary significantly due to the ability of a borrower to prepay. Monthly pay downs on mortgage-backed securities may cause the average lives of the securities to be much different than the stated contractual maturity. During a period of rising interest rates, fixed rate mortgage-backed securities are not likely to experience heavy prepayments of principal, and consequently, the average lives of these securities are typically lengthened. If interest rates begin to fall, prepayments may increase, thereby shortening the estimated average lives of these securities. As of June 30, 2025, the average life of our securities portfolio was 6.7 years with an estimated effective duration of 4.8 years. As of December 31, 2024, the average life of our securities portfolio was 7.0 years with an estimated effective duration of 4.9 years.

The following tables summarize the amortized cost and estimated fair value of our securities by type as of the dates indicated. As of June 30, 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.


	June 30, 2025
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Securities AFS:
Mortgage-backed securities	$	365,751	$	870	$	(23,751)	$	342,870
Municipal bonds	197,906		—		(36,847)		161,059

U.S. agency securities	64,418		28		(1,394)		63,052
Total Securities AFS	$	628,075	$	898	$	(61,992)	$	566,981

Securities HTM:
Mortgage-backed securities	$	126,368	$	—	$	(22,338)	$	104,030


U.S. agency securities	937		—		(83)		854
Total Securities HTM	$	127,305	$	—	$	(22,421)	$	104,884


	December 31, 2024
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Securities AFS:
Mortgage-backed securities	$	334,123	$	539	$	(27,562)	$	307,100
Municipal bonds	203,394		—		(34,551)		168,843
U.S. Treasury securities	10,995		—		(63)		10,932
U.S. agency securities	64,881		18		(1,626)		63,273
Total Securities AFS	$	613,393	$	557	$	(63,802)	$	550,148

Securities HTM:
Mortgage-backed securities	$	130,864	$	—	$	(22,698)	$	108,166


U.S. agency securities	932		—		(108)		824
Total Securities HTM	$	131,796	$	—	$	(22,806)	$	108,990

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The following table shows the fair value of securities AFS that mature during each of the periods indicated. The contractual maturity of a mortgage-backed security is the date the last underlying mortgage matures. Yields are weighted-average tax equivalent yields that are calculated by dividing projected annual income by the average amortized cost of the applicable securities while using a 21.0% federal income tax rate, when applicable.


	Contractual Maturity as of June 30, 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 AFS:
Mortgage-backed securities	$	384	3.81	%	$	8,568	4.21	%	$	43,700	1.78	%	$	290,218	3.48	%	$	342,870	3.28	%
Municipal bonds	3,237		1.58	%	10,698		2.30	%	36,225		2.19	%	110,899		2.10	%	161,059		2.12	%

U.S. agency securities	1,299		1.46	%	4,239		2.73	%	40,277		4.66	%	17,237		3.83	%	63,052		4.23	%
Total Securities AFS	$	4,920	1.72	%	$	23,505	3.06	%	$	120,202	2.82	%	$	418,354	3.08	%	$	566,981	3.02	%

(1)Tax equivalent projected book yield as of June 30, 2025.

The following table shows the amortized cost of securities HTM that mature during each of the periods indicated. The contractual maturity of a mortgage-backed security is the date the last underlying mortgage matures. Yields are weighted-average tax equivalent yields that are calculated by dividing projected annual income by the average amortized cost of the applicable securities while using a 21.0% federal income tax rate, when applicable.


	Contractual Maturity as of June 30, 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	$	—	—	%	$	—	—	%	$	—	—	%	$	126,368	2.46	%	$	126,368	2.46	%


U.S. agency securities	—		—	%	—		—	%	937		2.61	%	—		—	%	937		2.61	%
Total Securities HTM	$	—	—	%	$	—	—	%	$	937	2.61	%	$	126,368	2.46	%	$	127,305	2.46	%

(1)Tax equivalent projected book yield as of June 30, 2025.

Equity Securities

Equity securities are an investment in a CRA mutual fund, consisting primarily of bonds. Equity securities are carried at fair value on the consolidated balance sheets with periodic changes in value recorded through the consolidated statements of income. As of June 30, 2025, equity securities had a fair value of $3.0 million with a recognized gain of $53,000 for the six months ended June 30, 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.

Loan Portfolio

Our loan portfolio is our largest category of earning assets, and interest income earned on our loan portfolio is our primary source of income. We maintain a diversified loan portfolio with a focus on CRE, one-to-four family residential, and commercial and industrial loans. As of June 30, 2025, loans HFI were $2.14 billion, an increase of $63.6 million, or 3.1%, compared to $2.08 billion as of December 31, 2024. In the first six months of 2025, we had steady new loan closing activity, combined with funding of loan construction commitments.

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Loans by Category

Loans HFI by category, loans HFI, and loans HFS are summarized below as of the dates indicated:


	June 30, 2025				December 31, 2024				Change from December 31, 2024 to June 30, 2025
(dollars in thousands)	Amount		Percent		Amount		Percent		Amount		Percent
Real estate:
Commercial real estate	$	883,586	41.3	%	$	884,641	42.6	%	$	(1,055)	(0.1	%)
One-to-four family residential	623,477		29.2	%	614,551		29.6	%	8,926		1.5	%
Construction and development	194,195		9.1	%	155,229		7.5	%	38,966		25.1	%
Commercial and industrial	348,917		16.3	%	327,086		15.8	%	21,831		6.7	%
Tax-exempt	60,524		2.8	%	64,930		3.1	%	(4,406)		(6.8	%)
Consumer	27,881		1.3	%	28,576		1.4	%	(695)		(2.4	%)
Total loans HFI	$	2,138,580	100.0	%	$	2,075,013	100.0	%	$	63,567	3.1	%
Total loans HFS	$	4,711			$	2,547			$	2,164	85.0	%
Average loan HFI size, excluding credit cards	$	262			$	250			$	12	4.8	%

Industry Concentrations

Health care loans are our largest loan industry concentration and are made up of a diversified portfolio of health care providers. As of June 30, 2025, health care loans were $171.6 million, or 8.0% 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 $378,000 as of June 30, 2025 and $372,000 as of December 31, 2024. Within the health care sector, loans to nursing and residential care facilities were 4.0% of loans HFI as of June 30, 2025, and 4.4% as of December 31, 2024. Loans to physician and dental practices were 3.4% of loans HFI as of June 30, 2025 and December 31, 2024.

Energy loans were 1.4% of loans HFI as of June 30, 2025 and December 31, 2024.

Geographic Markets

As of June 30, 2025, the Bank operated in seven geographic markets throughout the state of Louisiana. The following table summarizes loans HFI by market of origin:


	June 30, 2025
(dollars in thousands)	Amount		Percent
Central	$	593,341	27.7	%
Capital	593,223		27.7	%
Northwest	341,116		16.0	%
New Orleans	201,784		9.4	%
Southwest	181,986		8.6	%
Northshore	119,228		5.6	%
Acadiana	107,902		5.0	%
Total loans HFI	$	2,138,580	100.0	%

Nonperforming Assets

NPAs consist of nonperforming loans and property acquired through foreclosures or repossession. Nonperforming loans include loans that are contractually past due 90 days or more and loans that are on nonaccrual status. Loans are considered past due when principal and interest payments have not been received as of the date such payments are due.

Asset quality is managed through disciplined underwriting policies, continual monitoring of loan performance, and focused management of NPAs. There can be no assurance, however, that the loan portfolio will not become subject to losses due to declines in economic conditions, deterioration in the financial condition of our borrowers, or a decline in the value of collateral.

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NPAs totaled $1.3 million as of June 30, 2025, a decrease of $1.9 million, or 59.4%, from $3.3 million as of December 31, 2024. This decrease was primarily due to a past due loan that was brought current by the customer in April 2025, principal payments received on nonaccrual loans, including two legacy nonaccrual loans in April 2025, and charge-offs. The ratio of NPAs to assets was 0.04% as of June 30, 2025, and 0.10% as of December 31, 2024.

Nonperforming loan and asset information is summarized below:


(dollars in thousands)	June 30, 2025		December 31, 2024
Nonperforming loans:
Nonaccrual loans	$	1,098	$	2,968
Accruing loans 90 or more days past due	21		266
Total nonperforming loans	1,119		3,234
Foreclosed assets:
Real estate	208		38
Total foreclosed assets	208		38
Total NPAs	$	1,327	$	3,272
21,336

%

We believe that we have established our ACL in accordance with GAAP and that the ACL was adequate to provide for known and inherent losses in the portfolio at all times shown above. 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, tariffs and trade, and natural disasters affecting the state of Louisiana. 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.

Deposits

Deposits are the primary funding source for loans and investments. We offer a variety of deposit products designed to attract and retain consumer, commercial, and public entity customers. These products consist of noninterest and interest-bearing checking accounts, savings accounts, money market accounts, and time deposit accounts. Deposits are gathered from individuals, partnerships, corporations, and public entities located primarily in our market areas. We do not have any internet-sourced or brokered deposits.

Total deposits were consistent at $2.81 billion as of June 30, 2025 and December 31, 2024. The $5.5 million increase was primarily a result of higher balances in commercial customer deposit accounts, partially offset by the seasonal outflow of funds from public entity customers and income tax payments. Noninterest-bearing deposits increased by $31.5 million, or 3.6%, to $898.0 million as of June 30, 2025. Noninterest-bearing deposits as a percentage of total deposits were 31.95% as of June 30, 2025, compared to 30.89% as of December 31, 2024. Interest-bearing deposits decreased by $26.0 million, or 1.3%, to $1.91 billion as of June 30, 2025.

The Bank has a granular, diverse deposit portfolio with customers in a variety of industries throughout Louisiana. As of June 30, 2025 and December 31, 2024, the average deposit account size was approximately $28,000.

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The following table presents our deposits by account type as of the dates indicated:


	June 30, 2025				December 31, 2024				Change from December 31, 2024 to June 30, 2025
(dollars in thousands)	Balance		% of Total		Balance		% of Total		$ Change		% Change
Noninterest-bearing demand deposits	$	897,997	32.0	%	$	866,496	30.9	%	$	31,501	3.6	%
Interest-bearing deposits:
Interest-bearing demand deposits	154,870		5.5	%	154,720		5.5	%	150		0.1	%
NOW accounts	416,459		14.8	%	467,118		16.7	%	(50,659)		(10.8	%)
Money market accounts	568,839		20.2	%	556,769		19.8	%	12,070		2.2	%
Savings accounts	172,454		6.2	%	169,894		6.1	%	2,560		1.5	%
Time deposits less than or equal to $250,000	408,171		14.5	%	403,096		14.3	%	5,075		1.3	%
Time deposits greater than $250,000	191,815		6.8	%	187,013		6.7	%	4,802		2.6	%
Total interest-bearing deposits	1,912,608		68.0	%	1,938,610		69.1	%	(26,002)		(1.3	%)
Total deposits	$	2,810,605	100.0	%	$	2,805,106	100.0	%	$	5,499	0.2	%

The following table presents deposits by customer type as of the dates indicated:


	June 30, 2025				December 31, 2024				Change from December 31, 2024 to June 30, 2025
(dollars in thousands)	Balance		% of Total		Balance		% of Total		$ Change		% Change
Consumer	$	1,361,818	48.5	%	$	1,362,740	48.6	%	$	(922)	(0.1	%)
Commercial	1,223,822		43.5	%	1,178,488		42.0	%	45,334		3.8	%
Public	224,965		8.0	%	263,878		9.4	%	(38,913)		(14.7	%)
Total deposits	$	2,810,605	100.0	%	$	2,805,106	100.0	%	$	5,499	0.2	%

We manage our interest expense on deposits through a deposit pricing strategy that is based on competitive pricing, economic conditions, and current or anticipated funding needs. We adjust deposit rates in part based upon our anticipated funding needs and liquidity position. We also consider the potential interest rate risk caused by extended maturities of time deposits when adjusting deposit rates.

Our average deposit balance was $2.80 billion for the three months ended June 30, 2025, a decrease of $19.3 million, or 0.7%, from $2.82 billion for the three months ended March 31, 2025. The average cost of interest-bearing deposits and total deposits for the second quarter of 2025 was 2.33% and 1.56%, respectively, compared to 2.35% and 1.61%, respectively, for the prior quarter. The decrease in the average cost of interest-bearing deposits and total deposits in the second quarter of 2025 as compared to the prior quarter was primarily due to lower time deposit rates. Also, as of June 30, 2025, 8.9% of interest-bearing transaction deposits had floating rates, which adjust with market rates.

The following table presents our average deposits by account type and the average rate paid for the periods indicated:


(dollars in thousands)	Average Balance		Average Rate		Average Balance		Average Rate
Noninterest-bearing demand deposits	$	919,770	0.00	%	$	884,484	0.00	%
Interest-bearing deposits:
Interest-bearing demand deposits	130,829		3.23	%	136,723		3.25	%
NOW accounts	422,748		1.31	%	467,157		1.30	%
Money market accounts	556,265		2.14	%	566,541		2.13	%
Savings accounts	172,398		0.15	%	171,464		0.15	%
Time deposits	597,433		3.65	%	592,368		3.80	%
Total interest-bearing deposits	1,879,673		2.33	%	1,934,253		2.35	%
Total average deposits	$	2,799,443	1.56	%	$	2,818,737	1.61	%

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As of June 30, 2025, our estimated uninsured deposits, which are the portion of deposit accounts that exceed the FDIC insurance limit (currently $250,000), were approximately $881.7 million, or 31.4% of total deposits, compared to $879.8 million, or 31.4% of total deposits, as of December 31, 2024. These amounts were estimated based on the same methodologies and assumptions used for regulatory reporting purposes. Also, as of June 30, 2025, our estimated uninsured deposits, excluding collateralized public entity deposits, were approximately $706.2 million, or 25.1% of total deposits, compared to $667.6 million, or 23.8% of total deposits, as of December 31, 2024. As of June 30, 2025, our cash and cash equivalents of $210.4 million combined with our available borrowing capacity of $1.65 billion equaled 210.8% of our estimated uninsured deposits and 263.2% of our estimated uninsured deposits, excluding collateralized public entity deposits.

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)	June 30, 2025
Three months or less	$	42,390
Over three months through six months	35,499
Over six months through 12 months	12,731
Over 12 months	2,945
Total	$	93,565

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 be invested at a positive interest rate spread for additional capacity to fund loan demand or to meet our liquidity needs. We established borrowing capacity with the FHLB, the Federal Reserve Bank’s Discount Window facility, and other correspondent banks to provide additional sources of operating funds. Our FHLB line of credit is secured by a blanket lien on selected Red River Bank loans that meet FHLB collateral requirements. Our Federal Reserve Bank’s Discount Window line of credit is collateralized by pledged securities and eligible Red River Bank loans that are not pledged to the FHLB. As of June 30, 2025 and December 31, 2024, we had no outstanding borrowings under these agreements.

Stockholders’ Equity

Total stockholders’ equity as of June 30, 2025, was $335.4 million compared to $319.7 million as of December 31, 2024. The $15.6 million, or 4.9%, increase in stockholders’ equity was attributable to $20.5 million of net income for the six months ended June 30, 2025, a $2.2 million, net of tax, market adjustment to AOCI related to securities, and $270,000 of stock compensation, partially offset by the repurchase of 111,748 shares of common stock for $5.8 million, including excise tax, and $1.6 million in cash dividends.

During the second quarter of 2022, we reclassified $166.3 million, net of $17.9 million of unrealized loss, from AFS to HTM. The securities were transferred at fair value, which became the cost basis for the securities HTM. At the date of the transfer, the net unrealized loss of $17.9 million, of which $14.2 million, net of tax, was included in AOCI and is being amortized over the remaining life of the securities as a yield adjustment in a manner consistent with the amortization or accretion of the original purchase premium or discount on the associated security. There were no gains or losses recognized as a result of the transfer. As of June 30, 2025, the net unamortized, unrealized loss remaining on the transferred securities included in the consolidated balance sheets totaled $12.4 million, of which $9.8 million, net of tax, was included in AOCI.

On December 19, 2024, our board of directors approved the renewal of the 2024 stock repurchase program that expired on December 31, 2024. 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.

For the three and six months ended June 30, 2025, we repurchased 11,748 shares of our common stock at an aggregate cost of $656,000, excluding excise tax, under the stock repurchase program. As of June 30, 2025, we had $4.3 million available for repurchasing our common stock under the 2025 stock repurchase program.

On May 22, 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 $5.1 million, excluding excise tax. This repurchase was supplemental to our 2025 stock repurchase program and did not impact the amount of permitted repurchases thereunder.

Effective January 1, 2023, stock 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. For the three and six months ended June 30, 2025, $58,000 of stock repurchase excise tax was recorded.

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Regulatory Capital Requirements

Capital management consists of maintaining equity and other instruments that qualify as regulatory capital to support current and future operations. Banking regulators view capital levels as important indicators of an institution’s financial soundness. As a general matter, bank holding companies and FDIC-insured depository institutions are required to maintain minimum capital relative to the amount and types of assets they hold.

As we deploy our capital and continue to grow our operations, our capital levels may decrease depending on our level of earnings. However, we expect to monitor and control our growth in order to remain in compliance with all regulatory capital standards applicable to us.

For additional information on regulatory capital guidelines and limits for the Bank and the Company, see “Item 1. Financial Statements - Notes to the Unaudited Consolidated Financial Statements - Note 8. Regulatory Capital Requirements.”

LIQUIDITY AND ASSET-LIABILITY MANAGEMENT

Liquidity

As of June 30, 2025, we had sufficient liquid assets available and $1.65 billion accessible from other liquidity sources.

Liquidity involves our ability to raise funds to support asset growth and potential acquisitions, reduce assets to meet deposit withdrawals and other payment obligations, maintain reserve requirements, and otherwise operate on an ongoing basis and manage unexpected events. For the six months ended June 30, 2025, and the year ended December 31, 2024, liquidity needs were primarily met by core deposits, security and loan maturities, and cash flows from amortizing security and loan portfolios. While maturities and scheduled amortization of loans are predictable sources of funds, deposit outflows, mortgage prepayments, and prepayments on amortizing securities are greatly influenced by market interest rates, economic conditions, and the competitive environment in which we operate; therefore, these cash flows are monitored regularly.

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 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.

Our primary source of funds is deposits, and our primary use of funds is the funding of loans. We invest excess deposits in interest-earning deposit accounts at other banks or at the Federal Reserve, federal funds sold, securities, or other short-term liquid investments until the deposits are needed to fund loan growth or other obligations. Our average deposits increased $58.2 million, or 2.1%, for the first six months of 2025, compared to the average deposits for the twelve months ended December 31, 2024. The increase in average total deposits was primarily a result of higher balances in customer deposit accounts, partially offset by the seasonal outflow of funds from public entity customers and income tax payments. Our average total loans increased $60.4 million, or 3.0%, for the first six months of 2025, compared to average total loans for the twelve months ended December 31, 2024. The increase in average total loans was primarily due to the increase in real estate and commercial and industrial activity.

As of June 30, 2025, liquid assets were $210.4 million, compared to $269.0 million as of December 31, 2024. The decrease of $58.6 million, or 21.8%, was primarily due to funding loan and securities growth, which exceeded deposit growth for the first six months of 2025. The liquid assets to assets ratio was 6.64% as of June 30, 2025, compared to 8.54% as of December 31, 2024.

Our securities portfolio is an alternative source for meeting liquidity needs and was our second-largest component of assets as of June 30, 2025. The securities portfolio generates cash flow through principal repayments, calls, and maturities, and certain securities can be sold or used as collateral in borrowings that allow for their conversion to cash. Securities AFS can generally be sold, while securities HTM have significant restrictions related to sales. As of June 30, 2025, we project receipt of approximately $50.0 million of principal repayments and maturities through December 31, 2025. As of June 30, 2025, approximately $451.2 million, or 66.9%, of the fair value of the securities portfolio was available to be sold or to be used as collateral in borrowings as a liquidity source.

We also utilize the FHLB as needed as a viable funding source. FHLB advances may be used to meet the Bank’s liquidity needs, particularly if the prevailing interest rate on an FHLB advance compares favorably to the rates that would be required to attract the necessary deposits. 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 June 30, 2025 and December 31, 2024, our net borrowing capacity from the FHLB was $975.1 million and $931.6 million, respectively. There were no outstanding borrowings from the FHLB as of June 30, 2025 and December 31, 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. In addition, the Bank has been 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. As of June 30, 2025, we had a total borrowing capacity of $122.1 million, including $84.4 million through the

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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. There were no outstanding borrowings from the Federal Reserve Bank’s Discount Window as of June 30, 2025 and December 31, 2024.

Other sources available for meeting liquidity needs include federal funds lines, repurchase agreements, and other lines of credit. We maintain four federal funds lines of credit with commercial banks that provided for the availability to borrow up to an aggregate of $100.0 million in federal funds as of June 30, 2025, and $95.0 million as of December 31, 2024. The rates for the federal funds lines are determined by the applicable commercial bank at the time of borrowing. We had no outstanding balances from these sources as of June 30, 2025 and December 31, 2024.

Commitments to Extend Credit

In the normal course of business, we enter into certain financial instruments, such as commitments to extend credit and letters of credit, to meet the financing needs of our customers. 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.

Commitments to extend credit are agreements to lend to a customer if all conditions of the commitment have been met. Commitments include revolving and nonrevolving credit lines and are primarily issued for commercial purposes. Commitments to extend credit generally have fixed expiration dates or other termination clauses. Standby letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party. Those guarantees are primarily issued to support public and private borrowing arrangements, including commercial paper, bond financing, and similar transactions.

As of June 30, 2025, we had $509.4 million in unfunded loan commitments and $15.0 million in commitments associated with outstanding standby letters of credit. As of December 31, 2024, we had $509.6 million in unfunded loan commitments and $11.9 million in commitments associated with outstanding standby letters of credit. As commitments associated with letters of credit and commitments to extend credit may expire unused, the total outstanding commitments may not necessarily reflect the actual future cash funding requirements.

Investment Commitments

We are party to various investment commitments in the normal course of business. Our exposure is represented by the contractual amount of these commitments.

In 2014, we committed to an investment into an SBIC limited partnership. As of June 30, 2025, there was a $226,000 outstanding commitment to this partnership.

In 2020, we committed to an additional investment into an SBIC limited partnership. As of June 30, 2025, there was a $1.9 million outstanding commitment to this partnership.

In 2021, we committed to an investment into a bank technology limited partnership. As of June 30, 2025, there was a $352,000 outstanding commitment to this partnership.

Interest Rate Sensitivity and Market Risk

As a financial institution, our primary component of market risk is interest rate volatility. Our asset-liability management policies provide management with guidelines for effective funds management, and we have established a measurement system for monitoring our net interest rate sensitivity position. 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. Interest rate risk is the potential of economic losses due to future interest rate changes. These economic losses can be reflected as a loss of future net interest income and/or a loss of current fair market values. The objective is to measure the effect on net interest income and to adjust the balance sheet to minimize the inherent risk while at the same time maximizing income.

We manage exposure to interest rates by structuring the balance sheet appropriately during the ordinary course of business. We have the ability to enter into interest rate swaps to mitigate interest rate risk in limited circumstances, but it is not our policy to enter into such transactions on a regular basis. We do not enter into instruments such as financial options, financial futures contracts, or forward delivery contracts for the purpose of reducing interest rate risk. We are not subject to foreign exchange risk, and our commodity price risk is immaterial, as the percentage of our agricultural loans to loans HFI was only 0.55% as of June 30, 2025.

Our exposure to interest rate risk is managed by the Bank’s Asset-Liability Management Committee. The committee formulates strategies based on appropriate levels of interest rate risk and monitors the results of those strategies. In

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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 meets quarterly to review, among other things, the sensitivity of assets and liabilities to interest rate changes, the book and economic values of assets and liabilities, unrealized gains and losses, purchase and sale activities, commitments to originate loans, and the maturities of investments and borrowings. Additionally, the committee reviews liquidity, cash flow flexibility, maturities of deposits, and consumer and commercial deposit activity. We employ methodologies to manage interest rate risk, which include an analysis of relationships between interest-earning assets and interest-bearing liabilities, as well as an interest rate simulation model and shock analysis.

In conjunction with our interest rate risk management process, on a quarterly basis, we run various simulations within a static balance sheet model. This model tests the impact on net interest income and fair value of equity from changes in market interest rates under various scenarios. We use parallel rate shock scenarios that assume instantaneous parallel movements in the yield curve compared to a flat yield curve scenario. We also deploy a ramped rate scenario over a 12-month and 24-month horizon based upon parallel yield curve shifts. Our nonparallel rate shock model simulation involves analysis of interest income and expense under various changes in the shape of the yield curve. Contractual maturities and repricing opportunities of loans are incorporated into the model, as are prepayment assumptions and maturity date and call options within the securities portfolio. The average life of non-maturity deposit accounts are based on assumptions developed from non-maturity deposit decay studies, which calculate average lives using historic closure rates.

Bank policy regarding interest rate risk simulations performed by our risk model currently specifies that for instantaneous parallel shifts of the yield curve, estimated net interest income at risk for the subsequent one-year period should not decline by more than 10.0% for a 100 bp shift, 15.0% for a 200 bp shift, and 20.0% for a 300 bp shift. 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.

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.


	June 30, 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	3.7	%	(0.1	%)	4.7	%	(0.4	%)
+200	2.6	%	0.7	%	3.2	%	0.3	%
+100	1.4	%	0.9	%	1.6	%	0.6	%
Base	—	%	—	%	—	%	—	%
-100	(1.4	%)	(0.9	%)	(1.5	%)	(0.2	%)
-200	(4.3	%)	(5.4	%)	(4.4	%)	(4.1	%)
-300	(6.9	%)	(11.8	%)	(7.2	%)	(11.1	%)

The results above, as of June 30, 2025 and December 31, 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. 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 June 30, 2025, the reported percentage of changes in net interest income and fair value of equity remained within the policy thresholds. These values are reported at each quarterly Asset-Liability Management Committee meeting. The net interest income at risk and the fair value of equity will continue to be monitored, and appropriate mitigating action will be taken if needed.

The impact of our floating rate loans and floating rate transaction deposits are also reflected in the results shown in the above table. As of June 30, 2025, floating rate loans were 18.0% of loans HFI, and floating rate transaction deposits were 8.9% of interest-bearing transaction deposits.

The assumptions incorporated into the model are inherently uncertain, and as a result, the model cannot precisely measure future net interest income or precisely predict the impact of fluctuations in market interest rates on net interest income. 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.

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NON-GAAP FINANCIAL MEASURES

Our accounting and reporting policies conform to GAAP and the prevailing practices in the banking industry. Certain financial measures used by management to evaluate our operating performance are discussed in this Report as supplemental non-GAAP performance measures. In accordance with the SEC’s rules, we classify a financial measure as being a non-GAAP financial measure if that financial measure excludes or includes amounts, or is subject to adjustments that have the effect of excluding or including amounts, that are included or excluded, as the case may be, in the most directly comparable measure calculated and presented in accordance with GAAP as in effect from time to time in the U.S.

Management and the board of directors review tangible book value per share, tangible common equity to tangible assets, and realized book value per share as part of managing operating performance. However, these non-GAAP financial measures that we discuss in this Report should not be considered in isolation or as a substitute for the most directly comparable or other financial measures calculated in accordance with GAAP. Moreover, the manner we calculate the non-GAAP financial measures that are discussed in this Report may differ from that of other companies’ reporting measures with similar names. It is important to understand how such other banking organizations calculate and name their financial measures similar to the non-GAAP financial measures discussed in this Report when comparing such non-GAAP financial measures.

Tangible Book Value Per Share. Tangible book value per share is a non-GAAP measure commonly used by investors, financial analysts, and investment bankers to evaluate financial institutions. We believe that this measure is important to many investors in the marketplace who are interested in changes from period to period in book value per share exclusive of changes in intangible assets. We calculate tangible book value per share as total stockholders’ equity, less intangible assets, divided by the outstanding number of shares of our common stock at the end of the relevant period. Intangible assets have the effect of increasing total book value while not increasing tangible book value. 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 June 30, 2025, total intangible assets were $1.5 million, which is less than 1.0% of total assets.

Tangible Common Equity to Tangible Assets. Tangible common equity to tangible assets is a non-GAAP measure generally used by investors, financial analysts, and investment bankers to evaluate financial institutions. We believe that this measure is important to many investors in the marketplace who are interested in the relative changes from period to period of tangible common equity to tangible assets, each exclusive of changes in intangible assets. Intangible assets have the effect of increasing both total stockholders’ equity and assets while not increasing our tangible common equity or tangible assets. We calculate tangible common equity as total stockholders’ equity less intangible assets, and we calculate tangible assets as total assets less intangible assets. The most directly comparable GAAP financial measure for tangible common equity to tangible assets is total common stockholders’ equity to total assets.

Realized Book Value Per Share. Realized book value per share is a non-GAAP measure that we use to evaluate our operating performance. We believe that this measure is important because it allows us to monitor changes from period to period in book value per share exclusive of changes in AOCI. Our AOCI is impacted primarily by the unrealized gains and losses on securities AFS. These unrealized gains or losses on securities AFS are driven by market factors and may also be temporary and vary greatly from period to period. Due to the possibly temporary and greatly variable nature of these changes, we find it useful to monitor realized book value per share. We calculate realized book value per share as total stockholders’ equity less AOCI, divided by the outstanding number of shares of our common stock at the end of the relevant period. AOCI has the effect of increasing or decreasing total book value while not increasing or decreasing realized book value. The most directly comparable GAAP financial measure for realized book value per share is book value per share.

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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.


(dollars in thousands, except per share data)	June 30, 2025			March 31, 2025			June 30, 2024
Tangible common equity
Total stockholders’ equity	$	335,350		$	333,316		$	306,990
Adjustments:
Intangible assets	(1,546)			(1,546)			(1,546)
Total tangible common equity (non-GAAP)	$	333,804		$	331,770		$	305,444
Realized common equity
Total stockholders’ equity	$	335,350		$	333,316		$	306,990
Adjustments:
Accumulated other comprehensive (income) loss	58,026			56,358			61,732
Total realized common equity (non-GAAP)	$	393,376		$	389,674		$	368,722
Common shares outstanding	6,676,609			6,777,657			6,886,928
Book value per share	$	50.23		$	49.18		$	44.58
Tangible book value per share (non-GAAP)	$	50.00		$	48.95		$	44.35
Realized book value per share (non-GAAP)	$	58.92		$	57.49		$	53.54

Tangible assets
Total assets	$	3,168,092		$	3,186,432		$	3,048,528
Adjustments:
Intangible assets	(1,546)			(1,546)			(1,546)
Total tangible assets (non-GAAP)	$	3,166,546		$	3,184,886		$	3,046,982
Total stockholders’ equity to assets	10.59		%	10.46		%	10.07		%
Tangible common equity to tangible assets (non-GAAP)	10.54		%	10.42		%	10.02		%

CRITICAL ACCOUNTING ESTIMATES

Our consolidated financial statements are prepared in accordance with GAAP and with general practices within the financial services industry. Application of these principles requires management to make estimates and assumptions about future events that affect the amounts reported in the consolidated financial statements and accompanying notes. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under current circumstances. We evaluate our estimates on an ongoing basis. Use of alternative assumptions may have resulted in significantly different estimates. Actual results may differ from these estimates.

There were no other material changes or developments during the reporting period with respect to methodologies that we use when developing critical accounting estimates as disclosed in our Annual Report on Form 10-K for the year ended December 31, 2024. For details on the significant accounting principles and practices we follow, see “Item 1. Financial Statements - Note 1. Summary of Significant Accounting Policies” in this Report and “Part II - Item 8. Financial Statements and Supplementary Data - Note 1. Significant Accounting Policies” in our Annual Report on Form 10-K for the year ended December 31, 2024.

RECENT ACCOUNTING PRONOUNCEMENTS

See “Item 1. Financial Statements - Note 1. Summary of Significant Accounting Policies - Recent Accounting Pronouncements.”

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Quantitative and qualitative disclosures about market risk are presented in our Annual Report on Form 10-K for the year ended December 31, 2024, under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Liquidity and Asset-Liability Management - Interest Rate Sensitivity and Market Risk.” Additional information as of June 30, 2025, is included herein under “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations - Liquidity and Asset-Liability Management - Interest Rate Sensitivity and Market Risk.” The foregoing information is incorporated into this Item 3 by reference.

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Item 4. Controls and Procedures

Evaluation of disclosure controls and procedures

As of the end of the period covered by this Report, an evaluation was performed by our management, with the participation of our Chief Executive Officer (Principal Executive Officer) and Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer), of the effectiveness of the design and operation of our disclosure controls and procedures. In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well-designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management was required to apply judgment in evaluating our controls and procedures. Based on this evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures (as defined in Rules 13a-15(e) or 15d-15(e) under the Exchange Act) were effective as of the end of the period covered by this Report.

Changes in internal control over financial reporting

There were no changes in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the second quarter of 2025 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II. OTHER INFORMATION

Item 1. Legal Proceedings

From time to time, we, including our subsidiaries, are or may be involved in various legal matters arising in the ordinary course of business. In the opinion of management, neither we, nor any of our subsidiaries, are involved in such legal proceedings that the resolution is expected to have a material adverse effect on our consolidated results of operations, financial condition, or cash flows. However, one or more unfavorable outcomes in these ordinary claims or litigation against us or our subsidiaries could have a material adverse effect for the period in which they are resolved. In addition, regardless of their merits or ultimate outcomes, such matters are costly, divert management’s attention, and may materially and adversely affect our reputation or that of our subsidiaries, even if resolved favorably.

Item 1A. Risk Factors

For information regarding risk factors that could affect our business, financial condition, and results of operations, see the information in “Part I - Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2024. There have been no material changes to the risk factors disclosed in our most recent Annual Report on Form 10-K.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

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)
April 1 - April 30, 2025	—	$	—	—	$	5,000
May 1 - May 31, 2025(4)	105,871	$	51.26	5,871	$	4,669
June 1 - June 30, 2025	5,877	$	55.98	5,877	$	4,337
Total	111,748	$	51.51	11,748	$	4,337

(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.

(2)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. 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.

(3)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.

(4)On May 22, 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 $5.1 million, excluding excise tax. The repurchase was supplemental to the 2025 stock repurchase program and did not impact the amount of permitted repurchases thereunder.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

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Item 6. Exhibits


NUMBER						DESCRIPTION
3.1						Restated Articles of Incorporation of Red River Bancshares, Inc. (incorporated by reference to Exhibit 3.1 to Red River Bancshares, Inc.’s Registration Statement on Form S-1 filed with the SEC on April 10, 2019, file number 333-230798)
3.2						Red River Bancshares, Inc. Amended and Restated Bylaws (incorporated by reference to Exhibit 3.1 to Red River Bancshares, Inc.’s Current Report on Form 8-K filed with the SEC on March 1, 2021, file number 001-38888)
10.1						Stock Repurchase Agreement, dated May 22, 2025, by and between Red River Bancshares, Inc., S3 Dynamics, L.P., and S3 Management, L.L.C. (incorporated by reference to Exhibit 10.1 to Red River Bancshares, Inc.’s Current Report on Form 8-K filed with the SEC on May 22, 2025, file number 001-38888)
10.2						Stock Repurchase Agreement, dated August 7, 2025, by and between Red River Bancshares, Inc., the Angela Katherine Simpson Irrevocable Trust UA 25-NOV-03, and John Charles Simpson (incorporated by reference to Exhibit 10.1 to Red River Bancshares, Inc.’s Current Report on Form 8-K filed with the SEC on August 7, 2025, file number 001-38888)
31.1						Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002*
31.2						Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002*
32.1						Certification of Principal Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002**
32.2						Certification of Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002**
101						The following financial information from the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2025, is formatted in Inline Extensible Business Reporting Language (XBRL): (i) the Unaudited Consolidated Balance Sheets, (ii) the Unaudited Consolidated Statements of Income, (iii) the Unaudited Consolidated Statements of Comprehensive Income, (iv) the Unaudited Consolidated Statements of Changes in Stockholders' Equity, (v) the Unaudited Consolidated Statements of Cash Flows, and (vi) the Notes to Unaudited Consolidated Financial Statements.
101.INS						Inline XBRL Instance Document* - The instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH						Inline XBRL Taxonomy Extension Schema Document*
101.CAL						Inline XBRL Taxonomy Extension Calculation Linkbase Document*
101.DEF						Inline XBRL Taxonomy Extension Definitions Linkbase Document*
101.LAB						Inline XBRL Taxonomy Extension Label Linkbase Document*
101.PRE						Inline XBRL Taxonomy Extension Presentation Linkbase Document*
104						Cover Page Interactive Data File* - Formatted as Inline XBRL and contained within the Inline XBRL Instance Document in Exhibit 101.
*						Filed herewith
**						These exhibits are furnished herewith and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section, and shall not be deemed to be incorporated by reference into any filing under the Securities Act or the Exchange Act.
+						Indicates a management contract or compensatory plan.
#						Certain exhibits to the Agreement have been omitted pursuant to Item 601(a)(5) of Regulation S-K. We will furnish the omitted exhibits to the SEC upon request.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.



	RED RIVER BANCSHARES, INC.

Date: August 8, 2025	By:	/s/ R. Blake Chatelain
		R. Blake Chatelain
		President and Chief Executive Officer
		(Principal Executive Officer)

Date: August 8, 2025	By:	/s/ Isabel V. Carriere
		Isabel V. Carriere, CPA, CGMA
		Senior Executive Vice President, Chief Financial Officer, and Assistant Corporate Secretary
		(Principal Financial Officer and Principal Accounting Officer)

RED RIVER BANCSHARES INC - Quarter Report: 2025 June (Form 10-Q)

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