RED RIVER BANCSHARES INC
For the period ended Sep 30, 2026. Filed Nov 6, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Nov 6, 2026
RRBI$103.55-0.9%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-08-07.
0001071236-26-000056
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-06.
0001071236-26-000069
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 222 previous paragraphs and 235 current paragraphs.
132 unchanged; 78 reworded; 23 added; 11 removed; 1 previous and 2 current paragraphs rearranged.
Tables are not compared: 29 previous and 29 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (23)
Current report
The third quarter of 2026 financial results included record-high quarterly net income and EPS along with increased loans, deposits, and assets. We also completed our New Orleans market banking center relocation project and continued to execute our plan to expand organically.
Current report
•Net interest income increased $916,000, or 3.2%, mainly as a result of higher earning asset balances and one more accrual day in the quarter. Net interest margin FTE was consistent at 3.61% for the third quarter of 2026 and for the prior quarter.
Current report
•Deposits totaled $2.96 billion as of September 30, 2026, an increase of $56.5 million, or 1.9%, from $2.91 billion as of June 30, 2026. This increase was primarily due to higher commercial deposit account balances.
Current report
•In the third quarter of 2026, NPAs increased $3.0 million, or 113.4%, to $5.6 million, or 0.17% of assets, as of September 30, 2026, primarily due to a commercial relationship that we are actively working to resolve. The provision for loan losses was lower in the third quarter of 2026 compared to the previous quarter.
Current report
◦On October 22, 2026, we purchased a former credit union building located on Gause Boulevard E. in Slidell, Louisiana. We expect to open this location in the first quarter of 2027 as the Bank’s first full-service banking center location in Slidell and our second in the Northshore market.
Current report
•In the third quarter of 2026, S&P Global Market Intelligence ranked the Bank within the top 50 best deposit franchises as of June 30, 2026, for banks with assets between $3.0 and $10.0 billion.
Current report
Brokerage income increased $141,000 to $1.0 million for the third quarter of 2026, compared to the prior quarter due to increased investing activity by clients. Assets under management were $1.42 billion as of September 30, 2026, and $1.41 billion as of June 30, 2026.
Current report
Mortgage loan income decreased $230,000 to $698,000 for the third quarter of 2026, compared to the prior quarter due to rising mortgage interest rates in the third quarter of 2026 reducing mortgage activity.
Current report
Equity securities are an investment in a CRA mutual fund consisting primarily of bonds. The gain or loss on equity
Current report
securities is a fair value adjustment primarily driven by changes in the interest rate environment. Due to the fluctuations in
Current report
market rates, equity securities had a loss of $113,000 in the third quarter of 2026, compared to a loss of $13,000 in the prior quarter.
Current report
Debit card income, net, was $1.1 million for the third quarter of 2026, consistent with the previous quarter. The third quarter of 2026 benefited from the receipt of a $50,000 periodic refund from our debit card provider, compared to a $63,000 similar refund in the previous quarter.
Current report
Other income decreased $315,000 to $155,000 for the nine months ended September 30, 2026, compared to the same period prior year. We participate as a member in JAM FINTOP. During the third quarter of 2025, JAM FINTOP completed the sale of an investment, which resulted in $253,000 of nonrecurring income for the nine months ended September 30, 2025.
Current report
Equity securities are an investment in a CRA mutual fund consisting primarily of bonds. The gain or loss on equity
Current report
securities is a fair value adjustment primarily driven by changes in the interest rate environment. Due to fluctuations in
Current report
market rates, equity securities had a loss of $144,000 for the nine months ended September 30, 2026, compared to a gain of $82,000 for the same period prior year.
Current report
Loan and deposit income increased $205,000 to $1.5 million for the nine months ended September 30, 2026, compared to the same period prior year. Credit card income, net of expenses, is reported in loan and deposit income. The increase was primarily due to $170,000 of increased credit card income due to higher credit card activity during the nine months ended September 30, 2026, and a change to our credit card program provider to align with our debit card program provider in the second quarter of 2025, which also resulted in additional credit card income.
Current report
Occupancy and equipment expenses totaled $1.9 million for the third quarter of 2026, consistent with the prior quarter. The third quarter of 2026 included $46,000 of nonrecurring expenses related to the relocation of banking centers and offices in the Northwest and New Orleans markets.
Current report
Legal and professional expenses decreased $117,000 to $487,000 for the third quarter of 2026, compared to the prior quarter due to lower audit and consulting expenses.
Current report
Legal and professional expenses decreased $228,000 to $1.6 million for the nine months ended September 30, 2026, compared to the same period prior year due to lower audit and consulting expenses.
Current report
30.84% as of December 31, 2025. Interest-bearing deposits decreased by $3.6 million, or 0.2%, to $2.05 billion as of September 30, 2026.
Current report
Purchase Commitments
Current report
As of September 30, 2026, we had a commitment to buy real estate for approximately $1.1 million.
Removed paragraphs (11)
Previous report
The second quarter of 2026 financial results included an improved net interest margin and net interest income, as well as slightly lower assets and net income. We completed our Northwest market expansion and banking center relocation project. Also, one of our founding directors retired, and we welcomed two new directors to our board.
Previous report
•Net interest income increased $563,000, or 2.0%, and net interest margin FTE increased 10 bps to 3.61% for the second quarter of 2026, compared to 3.51% for the prior quarter.
Previous report
•Deposits totaled $2.91 billion as of June 30, 2026, a decrease of $40.9 million, or 1.4%, from $2.95 billion as of March 31, 2026. This decrease was primarily due to the seasonal outflow of funds from customer income tax payments, along with fluctuations in lawyer trust accounts due to the timing of legal settlements.
Previous report
•In the second quarter of 2026, NPA’s decreased $1.6 million, or 38.3%, to $2.6 million, or 0.08% of assets, as of June 30, 2026. This improvement was due to the successful resolution of problem loans, which resulted in the receipt of $180,000 of related interest income and collection expense reimbursements.
Previous report
◦In the Northwest market, we completed our relocation projects. In May 2026, we relocated our Northwest market leadership and lenders to our newly constructed Shreveport Commercial and Private Banking LDPO, which is adjacent to our East Kings banking center. We also relocated the Market Street banking center, serving our retail customers, to the nearby American Tower building, which has a more efficient cost structure.
Previous report
•In May 2026, there were changes to the boards of directors of the Company and the Bank. Founding board member Kirk D. Cooper retired, and A. Peyton Bush, IV and R. Chance DeWitt, M.D. were appointed as new directors of both the Company and the Bank.
Previous report
•In June 2026, RRBI was added to the State Street SPDR S&P Regional Banking ETF (ticker: “KRE”) as part of its quarterly fund rebalance.
Previous report
Mortgage loan income increased $323,000 to $928,000 for the second quarter of 2026, compared to the prior quarter due to increased purchase activity.
Previous report
Personnel expenses increased $194,000 to $10.7 million for the second quarter of 2026, compared to the prior quarter. This increase was primarily due to annual raises effective April 2026 and an increase in headcount. As of June 30, 2026 and March 31, 2026, we had 381 and 375 total employees, respectively.
Previous report
Occupancy and equipment expenses increased $51,000 to $1.9 million for the second quarter of 2026, compared to the prior quarter. This increase was primarily due to $78,000 of nonrecurring expenses related to our newly constructed Shreveport Commercial and Private Banking LDPO, as well as the relocation of a banking center, both in the Northwest market.
Previous report
Loan and deposit expenses decreased $115,000 to $345,000 for the six months ended June 30, 2026, compared to the same period prior year. The first six months of 2026 benefited from reimbursement of $82,000 of collection expenses due to the successful resolution of nonaccrual loans. Also, in the first quarterof 2026, we received a $201,000 negotiated, variable rebate from a vendor, compared to a $173,000 similar rebate in the same period prior year.
Reworded paragraphs (78)
Previous wording
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, 2025 through June 30, 2026, and on our results of operations for the quarters ended June 30, 2026 and March 31, 2026, and for the six months ended June 30, 2026 and June 30, 2025.
Current wording
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, 2025 through September 30, 2026, and on our results of operations for the quarters ended September 30, 2026 and June 30, 2026, and for the nine months ended September 30, 2026 and September 30, 2025.
Previous wording
SECOND QUARTER 2026 FINANCIAL AND OPERATIONAL HIGHLIGHTS
Current wording
THIRD QUARTER 2026 FINANCIAL AND OPERATIONAL HIGHLIGHTS
Previous wording
•Net income for the second quarter of 2026 was $11.8 million, or $1.78 diluted EPS, a decrease of $208,000, or 1.7%, compared to $12.0 million, or $1.81 diluted EPS, for the first quarter of 2026. Net income for the second quarter was impacted by an expected $1.0 million increase in operating expenses, partially offset by a $563,000 increase in net interest income. Net income for the first quarter of 2026 benefited from approximately $590,000 of periodic items that reduced operating expenses.
Current wording
•Net income for the third quarter of 2026 was $12.6 million, or $1.90 diluted EPS, an increase of $800,000, or 6.8%, compared to $11.8 million, or $1.78 diluted EPS, for the second quarter of 2026. Net income for the third quarter benefited from a $916,000 increase in net interest income.
Previous wording
•For the second quarter of 2026, the return on assets was 1.43%, and the return on equity was 12.41%.
Current wording
•For the third quarter of 2026, the return on assets was 1.48%, and the return on equity was 12.84%.
Previous wording
•As of June 30, 2026, assets were $3.31 billion, a decrease of $35.3 million, or 1.1%, from $3.35 billion as of March 31, 2026, as a result of a $40.9 million decrease in deposits.
Current wording
•As of September 30, 2026, assets were $3.37 billion, an increase of $56.2 million, or 1.7%, from $3.31 billion as of June 30, 2026, as a result of a $56.5 million increase in deposits.
Previous wording
•As of June 30, 2026, loans HFI were $2.26 billion, a slight increase from $2.25 billion as of March 31, 2026. In the second quarter of 2026, new loan originations and construction commitment fundings exceeded payments and payoffs.
Current wording
•As of September 30, 2026, loans HFI were $2.32 billion, an increase of $59.5 million, or 2.6%, from $2.26 billion as of June 30, 2026. In the third quarter of 2026, new loan originations and construction commitment fundings exceeded payments and payoffs.
Previous wording
•We paid a quarterly cash dividend of $0.25 per common share in the second quarter of 2026.
Current wording
•We paid a quarterly cash dividend of $0.25 per common share in the third quarter of 2026.
Previous wording
•The 2026 stock repurchase program authorizes us to purchase up to $10.0 million of our outstanding shares of common stock from January 1, 2026 through December 31, 2026. There was no stock repurchase activity in the first half of 2026. As of June 30, 2026, the 2026 stock repurchase program had $10.0 million of available capacity.
Current wording
•The 2026 stock repurchase program authorizes us to purchase up to $10.0 million of our outstanding shares of common stock from January 1, 2026 through December 31, 2026. There was no stock repurchase activity between January 1, 2026 and September 30, 2026. As of September 30, 2026, the 2026 stock repurchase program had $10.0 million of available capacity.
Previous wording
◦In the New Orleans market, we recently completed remodeling a portion of the ground floor of the Energy Centre Building on Poydras Street. On July 20, 2026, we relocated the Baronne Street retail banking center and the New Orleans market leadership and lenders to this updated, convenient, and visible location.
Current wording
◦In the New Orleans market, we completed our banking center relocation project. We remodeled a portion of the ground floor of the Energy Centre Building on Poydras Street. On July 20, 2026, we relocated the Baronne Street retail banking center and the New Orleans market leadership and lenders to this updated, convenient, and visible location.
Previous wording
◦In the Acadiana market, construction is in process on our second full-service banking center in this market, located on Camellia Boulevard in Lafayette, Louisiana. We expect this location to open early in 2027.
Current wording
◦In the Acadiana market, construction is in process on our second full-service banking center in this market, located on Camellia Boulevard in Lafayette, Louisiana. We expect this location to open in the first quarter of 2027.
Previous wording
Net income for the second quarter of 2026 was $11.8 million, or $1.78 diluted EPS, a decrease of $208,000, or 1.7%, compared to $12.0 million, or $1.81 diluted EPS, for the first quarter of 2026. The decrease in net income was due to a $1.0 million increase in operating expenses, partially offset by a $563,000 increase in net interest income, a $205,000 increase in noninterest income, and a $60,000 decrease in income tax expense. The return on assets for the second quarter of 2026 was 1.43%, compared to 1.44% for the first quarter of 2026. The return on equity was 12.41% for the second quarter of 2026, compared to 12.95% for the first quarter of 2026. Our efficiency ratio for the second quarter of 2026 was 54.25%, compared to 52.37% for the first quarter of 2026.
Current wording
Net income for the third quarter of 2026 was $12.6 million, or $1.90 diluted EPS, an increase of $800,000, or 6.8%, compared to $11.8 million, or $1.78 diluted EPS, for the second quarter of 2026. The increase in net income was due to a $916,000 increase in net interest income, a $250,000 decrease in the provision for credit losses, and a $186,000 increase in noninterest income, partially offset by a $408,000 increase in operating expenses and a $144,000 increase in income tax expense. The return on assets for the third quarter of 2026 was 1.48%, compared to 1.43% for the second quarter of 2026. The return on equity was 12.84% for the third quarter of 2026, compared to 12.41% for the second quarter of 2026. Our efficiency ratio for the third quarter of 2026 was 53.71%, compared to 54.25% for the second quarter of 2026.
Previous wording
Net income for the six months ended June 30, 2026, was $23.7 million, or $3.59 diluted EPS, an increase of $3.2 million, or 15.5%, compared to $20.5 million, or $3.03 diluted EPS, for the six months ended June 30, 2025. The increase in net income was due to a $6.9 million increase in net interest income, partially offset by a $1.6 million increase in operating expenses, a $856,000 increase in income tax expense, a $719,000 decrease in noninterest income, and a $600,000 increase in the provision for credit losses. The return on assets for the six months ended June 30, 2026, was 1.44%, compared to 1.31% for the six months ended June 30, 2025. The return on equity was 12.68% for the six months ended June 30, 2026, compared to 12.55% for the six months ended June 30, 2025. Our efficiency ratio for the six months ended June 30, 2026, was 53.32%, compared to 56.20% for the six months ended June 30, 2025.
Current wording
Net income for the nine months ended September 30, 2026, was $36.3 million, or $5.49 diluted EPS, an increase of $4.9 million, or 15.8%, compared to $31.3 million, or $4.65 diluted EPS, for the nine months ended September 30, 2025. The increase in net income was due to a $9.9 million increase in net interest income, partially offset by a $2.4 million increase in operating expenses, a $1.3 million increase in income tax expense, an $821,000 decrease in noninterest income, and a $450,000 increase in the provision for credit losses. The return on assets for the nine months ended September 30, 2026, was 1.45%, compared to 1.32% for the nine months ended September 30, 2025. The return on equity was 12.73% for the nine months ended September 30, 2026, compared to 12.58% for the nine months ended September 30, 2025. Our efficiency ratio for the nine months ended September 30, 2026, was 53.46%, compared to 56.15% for the nine months ended September 30, 2025.
Previous wording
In the first half of 2025, the target range for the federal funds rate was consistent at 4.25%-4.50%. In the second half of 2025, the FOMC decreased the federal funds rate by 25 bps in the third quarter and an additional 50 bps in the fourth quarter, reducing the target federal funds range to 3.50%-3.75%. The target range for the federal funds rate was unchanged in the first half of 2026. The average effective federal funds rate was 3.63% for the second quarter of 2026, compared to 3.64% for the first quarter of 2026. The average effective federal funds rate was 3.64% for the first six months of 2026, compared to 4.33% for the first six months of 2025. Net interest income and net interest margin FTE increased in the second quarter of 2026, compared to the prior quarter. Also, net interest income and net interest margin FTE increased for the six months ended June 30, 2026, compared to the six months ended June 30, 2025.
Current wording
In the first half of 2025, the target range for the federal funds rate was consistent at 4.25%-4.50%. In the second half of 2025, the FOMC decreased the federal funds rate by 25 bps in the third quarter and an additional 50 bps in the fourth quarter, reducing the target federal funds range to 3.50%-3.75%. During 2026, the target range for the federal funds rate was unchanged until September 2026, when the FOMC increased the rate by 25 bps, resulting in a range of 3.75%-4.00%. The average effective federal funds rate was 3.67% for the third quarter of 2026, compared to 3.63% for the second quarter of 2026. For the nine months ended September 30, 2026, the average effective federal funds rate was 3.65%, compared to 4.32% for the nine months ended September 30, 2025. Net interest income increased and net interest margin FTE was consistent in the third quarter of 2026, compared to the prior quarter. Also, net interest income and net interest margin FTE increased for the nine months ended September 30, 2026, compared to the nine months ended September 30, 2025.
Previous wording
Net interest income for the second quarter of 2026 was $29.0 million, which was $563,000, or 2.0%, higher than the first quarter of 2026, due to a $385,000 decrease in interest expense and a $178,000 increase in interest and dividend income. The decrease in interest expense was primarily due to lower average interest-bearing deposit balances. The increase in interest and dividend income was driven by a $689,000 increase in loan income due to higher yields, and included $98,000 of additional interest income resulting from the successful resolution of nonaccrual loans in the second quarter. The increase in interest and dividend income was partially offset by a $443,000 decrease in income on short-term liquid assets and a $66,000 decrease in securities income, resulting from lower average balances in these assets.
Current wording
Net interest income for the third quarter of 2026 was $29.9 million, which was $916,000, or 3.2%, higher than $29.0 million for the second quarter of 2026, due to a $1.5 million increase in interest and dividend income partially offset by a $558,000 increase in interest expense. The increase in interest and dividend income was driven by a $1.0 million increase in loan income due to higher average loan balances and yields and a $567,000 increase in income on short-term liquid assets, resulting mainly from higher average balances. The increase in interest expense was primarily due to adjusting selected deposit rates in response to rate competition, as well as higher interest-bearing transaction deposit balances.
Previous wording
The net interest margin FTE was 3.61% for the second quarter of 2026, which was 10 bps higher than the prior quarter. The net interest margin FTE was impacted by a higher yield on loans and lower deposit costs. The average rate on new and renewed loans was 6.38% for the second quarter of 2026 and 6.71% for the prior quarter. The cost of deposits decreased 4 bps to 1.43%, compared to 1.47% for the previous quarter, driven by lower time deposit rates.
Current wording
The net interest margin FTE was 3.61% for the third quarter of 2026, which was consistent with the prior quarter. The net interest margin FTE was impacted by a higher yield on loans, offset by higher deposit costs. The average rate on new and renewed loans was 6.47% for the third quarter of 2026 and 6.38% for the prior quarter. The cost of deposits increased 3 bps to 1.46%, compared to 1.43% for the previous quarter, driven by higher deposit rates on interest-bearing transaction deposits. The net interest margin FTE improved slightly at the end of the third quarter as a result of the higher interest rate environment.
Previous wording
As of June 30, 2026, the target federal funds range was 3.50%-3.75%. Due to uncertainty regarding the forecasted interest rate environment, we are modeling a consistent federal funds range for the second half of 2026. During the remainder of 2026, we project $157.4 million of fixed rate loans at 5.91% to mature, which we expect to redeploy into loans with slightly higher rates. We have $489.1 million of floating rate loans at 6.14%, which we expect to remain at a consistent rate. Based on the current rate forecast, we expect the total loan yield to be slightly higher in the third quarter of 2026. During the remainder of 2026, we also expect to receive $56.8 million in securities cash flows at 3.69%, for which we are currently evaluating reinvestment options as we consider balance sheet management strategies. We project $449.6 million in time deposits at 3.44% to mature, which may reprice at slightly lower rates considering maturity volumes and renewal pricing. As of June 30, 2026, floating rate loans were 21.6% of loans HFI, and floating rate transaction deposits were 9.7% of interest-bearing transaction deposits. Depending on balance sheet activity and interest rate competition, we expect net interest income and net interest margin FTE to increase slightly in the second half of 2026.
Current wording
As of September 30, 2026, the target federal funds range was 3.75%-4.00%. The market’s expectation is that the federal funds range may increase by another 25 bps in the fourth quarter of 2026. During the fourth quarter of 2026, we project $93.8 million of fixed rate loans at 5.85% to mature, which we expect to redeploy into loans with higher rates. We have $529.5 million of floating rate loans at 6.24%, which we expect to reprice slightly higher. During the fourth quarter of 2026, we also expect to receive $24.0 million in securities cash flows at 3.64%, for which we are evaluating reinvestment options as we consider balance sheet management strategies and the forecasted interest rate environment. We project $190.7 million in time deposits at 3.37% to mature, which we expect to renew at higher rates. Selected transaction deposit rates could also be further adjusted in response to rate competition. As of September 30, 2026, floating rate loans were 22.8% of loans HFI, and floating rate transaction deposits were 8.9% of interest-bearing transaction deposits. Depending on balance sheet activity, the interest rate environment, and competition, we expect net interest income and net interest margin FTE to increase slightly in the fourth quarter of 2026.
Previous wording
(1)Includes average outstanding balances of loans HFS of$4.7 million and$2.7 million for the three months ended June 30, 2026 and March 31, 2026, respectively.
Current wording
(1)Includes average outstanding balances of loans HFS of$2.9 million and$4.7 million for the three months ended September 30, 2026 and June 30, 2026, respectively.
Previous wording
Net interest income for the six months ended June 30, 2026 was $57.4 million, which was $6.9 million, or 13.8%, higher than $50.4 million for the six months ended June 30, 2025. Net interest income increased due to a $5.9 million increase in interest and dividend income, combined with a $1.0 million decrease in interest expense.
Current wording
Net interest income for the nine months ended September 30, 2026 was $87.3 million, which was $9.9 million, or 12.9%, higher than $77.3 million for the nine months ended September 30, 2025. Net interest income increased due to an $8.6 million increase in interest and dividend income, combined with a $1.4 million decrease in interest expense.
Previous wording
The increase in interest and dividend income for the six months ended June 30, 2026, when compared to the six months ended June 30, 2025, 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 $6.0 million due to higher average loan balances, combined with higher rates on new and renewed loans compared to the existing portfolio yield. Securities income increased $1.6 million primarily due to purchasing higher yielding securities, combined with higher average securities balances. Interest income on short-term liquid assets decreased $1.7 million due to lower average balances on these assets, combined with the FOMC lowering the federal funds rate in the second half of 2025.
Current wording
The increase in interest and dividend income for the nine months ended September 30, 2026, when compared to the nine months ended September 30, 2025, 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 $8.6 million due to higher average loan balances, combined with higher rates on new and renewed loans compared to the existing portfolio yield. Securities income increased $1.9 million primarily due to purchasing higher yielding securities, combined with higher average securities balances. Interest income on short-term liquid assets decreased $1.9 million due to the FOMC lowering the federal funds rate in the second half of 2025, combined with lower average balances on these assets.
Previous wording
Net interest margin FTE increased 27 bps to 3.56% for the six months ended June 30, 2026, from 3.29% for the six months ended June 30, 2025, primarily due to higher yields on securities and loans, combined with lower deposit costs. These positive variances were partially offset by a 76 bp decrease to the yield on short-term liquid assets, due to the FOMC lowering the federal funds rate in the second half of 2025.
Current wording
Net interest margin FTE increased 24 bps to 3.58% for the nine months ended September 30, 2026, from 3.34% for the nine months ended September 30, 2025, primarily due to higher yields on securities and loans, combined with lower deposit costs. These positive variances were partially offset by a 73 bp decrease to the yield on short-term liquid assets, due to the FOMC lowering the federal funds rate in the second half of 2025.
Previous wording
The yield on securities increased 23 bps mainly due to purchasing $113.6 million of securities in the second half of 2025 and an additional $36.6 million of securities in the first half of 2026, at favorable rates. The yield on loans increased 16 bps due to higher rates on new and renewed loans compared to the existing portfolio yield. The cost of deposits decreased 14 bps to 1.45% for the six months ended June 30, 2026, from 1.59% for the six months ended June 30, 2025, due to a 22 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 30 and 16 bps, respectively. These decreases occurred as we adjusted rates on selected transaction and time deposits during the second half of 2025 in response to the federal funds rate decreases by the FOMC.
Current wording
The yield on securities increased 19 bps mainly due to purchasing $113.6 million of securities in the second half of 2025 and an additional $62.1 million of securities during the first nine months of 2026, at favorable rates. The yield on loans increased 13 bps due to higher rates on new and renewed loans compared to the existing portfolio yield. The cost of deposits decreased 13 bps to 1.45% for the nine months ended September 30, 2026, from 1.58% for the nine months ended September 30, 2025, due to a 21 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 26 and 15 bps, respectively. These decreases occurred as we adjusted rates on selected transaction and time deposits during the second half of 2025 in response to the federal funds rate decreases by the FOMC during that time.
Previous wording
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, 2026 and 2025:
Current wording
The following table presents average balance sheet information, interest income, interest expense, and the corresponding average yields earned and rates paid for the nine months ended September 30, 2026 and 2025:
Previous wording
(1)Includes average outstanding balances of loans HFS of $3.7 million and $2.6 million for the six months ended June 30, 2026 and 2025, respectively.
Current wording
(1)Includes average outstanding balances of loans HFS of $3.4 million and $2.8 million for the nine months ended September 30, 2026 and 2025, respectively.
Previous wording
The provision for credit losses for the second quarter of 2026 was $750,000 for loans, which was consistent with the prior quarter. The provision in the first and second quarters of 2026 was due to lingering impacts related to inflation and tariffs, geopolitical uncertainty, greater uncertainty with future labor market trends, and slight loan growth. 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.
Current wording
The provision for credit losses for the third quarter of 2026 was $500,000 for loans, which was $250,000 lower than the prior quarter. The decrease was driven by stable charge-off trends and steady local economic conditions affecting the ACL calculation, partially offset by an increase in NPAs related to a commercial relationship that we are actively working to resolve. The provision in the second quarter of 2026 was due to lingering impacts related to inflation and tariffs, geopolitical uncertainty, greater uncertainty with future labor market trends, and slight loan growth. 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.
Previous wording
The provision for credit losses for the six months ended June 30, 2026 was $1.5 million for loans, an increase of $600,000, or 66.7%, from $900,000 for the six months ended June 30, 2025. The increase for the first six months of 2026 was due to lingering impacts related to inflation and tariffs, geopolitical uncertainty, greater uncertainty with future labor market trends, and slight loan growth. The provision for the first six months of 2025 was related to loan growth, combined with uncertainty regarding tariffs and trade.
Current wording
The provision for credit losses for the nine months ended September 30, 2026 was $2.0 million for loans, an increase of $450,000, or 29.0%, from $1.6 million for the nine months ended September 30, 2025. The increase for the first nine months of 2026 was due to lingering impacts related to inflation and tariffs, geopolitical uncertainty, greater uncertainty with future labor market trends, and slight loan growth. The provision for the first nine months of 2025 was primarily driven by loan growth as well as ongoing uncertainty regarding tariffs, unemployment, and inflation.
Previous wording
Noninterest income increased $205,000 to $4.7 million for the second quarter of 2026, compared to $4.5 million for the first quarter of 2026. The increase in noninterest income was mainly due to higher mortgage loan income and net debit card income, partially offset by lower SBIC income.
Current wording
Noninterest income increased $186,000 to $4.9 million for the third quarter of 2026, compared to $4.7 million for the second quarter of 2026. The increase in noninterest income was mainly due to higher SBIC income and brokerage income, partially offset by lower mortgage loan income and a loss on equity securities. Also, net debit card income had offsetting refunds during the periods.
Previous wording
The SBIC partnerships reported a loss of $291,000 in the second quarter of 2026, compared to a loss of $105,000 in the previous quarter. These losses were mainly due to fund value adjustments as an SBIC fund continues its wind-down phase. We expect SBIC income or loss to fluctuate in future quarters.
Current wording
The SBIC limited partnerships of which the Bank is a member, reported a gain of $112,000 in the third quarter of 2026, compared to a loss of $291,000 in the previous quarter. These results were mainly due to fund value adjustments as an SBIC fund continues its wind-down phase. We expect SBIC income or loss to fluctuate in future quarters.
Previous wording
Noninterest income decreased $719,000 to $9.3 million for the six months ended June 30, 2026, compared to $10.0 million for the six months ended June 30, 2025. The decrease in noninterest income was mainly due to lower SBIC income and brokerage income, partially offset by higher mortgage loan income.
Current wording
Noninterest income decreased $821,000 to $14.2 million for the nine months ended September 30, 2026, compared to $15.0 million for the nine months ended September 30, 2025. The decrease in noninterest income was mainly due to lower brokerage income, SBIC income, and other income, as well as a loss on equity securities, partially offset by higher mortgage loan income, loan and deposit income, and net debit card income.
Previous wording
Brokerage income decreased $502,000 to $1.8 million for the six months ended June 30, 2026, compared to the same period prior year, mainly due to decreased investing activity by clients. Also, the first six months of 2025 included $215,000 in incentive income related to a prior year investment group broker-dealer partner conversion. Assets under management were $1.41 billion and $1.19 billion as of June 30, 2026 and 2025, respectively.
Current wording
Brokerage income decreased $619,000 to $2.8 million for the nine months ended September 30, 2026, compared to the same period prior year, mainly due to decreased investing activity by clients. Also, the first nine months of 2025 included $215,000 in incentive income related to a prior year investment group broker-dealer partner conversion. Assets under management were $1.42 billion and $1.29 billion as of September 30, 2026 and 2025, respectively.
Previous wording
SBIC partnerships reported a loss of $395,000 for the six months ended June 30, 2026, compared to $327,000 of income for the same period prior year. This variance was mainly due to fund value adjustments as an SBIC fund entered its wind-down phase in mid-2025.
Current wording
The SBIC partnerships reported a loss of $283,000 for the nine months ended September 30, 2026, compared to $252,000 of income for the same period prior year. This variance was mainly due to fund value adjustments as an SBIC fund entered its wind-down phase in mid-2025.
Previous wording
Mortgage loan income increased $436,000 to $1.5 million for six months ended June 30, 2026, compared to the same period prior year, mainly due to increased purchase activity.
Current wording
Mortgage loan income increased $482,000 to $2.2 million for the nine months ended September 30, 2026, compared to the same period prior year, mainly due to increased purchase activity.
Previous wording
Debit card income, net, increased $151,000 to $1.1 million for the second quarter of 2026, compared to the prior quarter. This increase was mainly due to higher debit card activity and receipt of a $63,000 periodic refund from our debit card provider in the second quarter of 2026.
Current wording
Debit card income, net, increased $120,000 to $3.0 million for the nine months ended September 30, 2026, compared to the same period prior year. This increase was mainly due to higher debit card activity and the receipt of a $50,000 periodic refund from our debit card provider during the nine months ended September 30, 2026.
Previous wording
Operating expenses increased $1.0 million to $18.3 million for the second quarter of 2026, compared to $17.3 million for the first quarter of 2026. Theincrease in operating expenses was mainly due to higher data processing expense, personnel expenses, loan and deposit expenses, and occupancy and equipment expenses.
Current wording
Operating expenses increased $408,000 to $18.7 million for the third quarter of 2026, compared to $18.3 million for the second quarter of 2026. Theincrease in operating expenses was mainly due to higher personnel expenses and loan and deposit expenses, partially offset by lower legal and professional expenses. Occupancy and equipment expenses also had offsetting nonrecurring activity.
Previous wording
Loan and deposit expenses increased $139,000 to $242,000 for the second quarter of 2026, compared to the prior quarter. The second quarter of 2026 benefited from reimbursement of $82,000 of collection expenses due to the successful resolution of nonaccrual loans. The first quarter of 2026 benefited from receipt of a $201,000 negotiated, variable rebate from a vendor.
Current wording
Loan and deposit expenses increased $184,000 to $426,000 for the third quarter of 2026, compared to the prior quarter. The second quarter of 2026 benefited from reimbursement of $82,000 of collection expenses due to the successful resolution of nonaccrual loans.
Previous wording
Operating expenses increased $1.6 million to $35.5 million for the six months ended June 30, 2026, compared to $34.0 million for the six months ended June 30, 2025. Theincrease in operating expenses was mainly due to higher personnel expenses, occupancy and equipment expenses, other business development expenses, technology expenses, and data processing expense, partially offset by lower loan and deposit expenses and other taxes.
Current wording
Operating expenses increased $2.4 million to $54.2 million for the nine months ended September 30, 2026, compared to $51.8 million for the nine months ended September 30, 2025. Theincrease in operating expenses was mainly due to higher personnel expenses, occupancy and equipment expenses, technology expenses, other business development expenses, and data processing expense, partially offset by lower legal and professional expenses and other taxes.
Previous wording
Personnel expenses increased $989,000 to $21.2 million for the six months ended June 30, 2026, compared to the same period prior year. This increase was primarily due to an increase in headcount and higher personnel-related accruals and revenue-based commissions. As of June 30, 2026 and 2025, we had 381 and 374 total employees, respectively.
Current wording
Personnel expenses increased $1.4 million to $32.1 million for the nine months ended September 30, 2026, compared to the same period prior year. This increase was primarily due to an increase in headcount and higher personnel-related accruals. As of September 30, 2026 and 2025, we had 390 and 377 total employees, respectively.
Previous wording
Occupancy and equipment expenses increased $271,000 to $3.8 million for the six months ended June 30, 2026, compared to the same period prior year. This increase was primarily due to higher occupancy expenses and $78,000 of nonrecurring expenses related to our newly constructed Shreveport Commercial and Private Banking LDPO, as well as the relocation of a banking center, both in the Northwest market.
Current wording
Occupancy and equipment expenses increased $364,000 to $5.8 million for the nine months ended September 30, 2026, compared to the same period prior year. This increase was primarily due to higher occupancy expenses and $124,000 of nonrecurring expenses related to our newly constructed Shreveport Commercial and Private Banking LDPO in the Northwest market, as well as the relocation of banking centers and offices in the Northwest and New Orleans markets.
Previous wording
Technology expenses increased $163,000 to $1.8 million for the six months ended June 30, 2026, compared to the same period prior year. This increase was mainly due to continued computer hardware and software technology enhancements and upgrades, partially offset by lower technology communication expenses resulting from a new vendor relationship.
Current wording
Technology expenses increased $310,000 to $2.8 million for thenine months ended September 30, 2026, compared to the same period prior year. This increase was mainly due to continued computer hardware and software technology enhancements and upgrades, partially offset by lower technology communication expenses resulting from a new vendor relationship.
Previous wording
Other business development expenses increased $177,000 to $1.2 million for the six months ended June 30, 2026, compared to the same period prior year. This variance was primarily due to an increase in SBIC expenses, including the addition of a third SBIC partnership in September 2025.
Current wording
Other business development expenses increased $246,000 to $1.8 million for thenine months ended September 30, 2026, compared to the same period prior year. This increase was primarily driven by higher SBIC expenses, including the addition of a third SBIC partnership established in September 2025.
Previous wording
Data processing expense increased $126,000 to $1.1 million for the six months ended June 30, 2026, compared to the same period prior year. The first six months of 2026 included a full period of expenses related to online banking, mobile banking, and bill payment system upgrades completed in 2025. The first quarter of 2026 included the receipt of a $389,000 periodic refund from our data processing center, compared to a $447,000 similar refund in the same period prior year.
Current wording
Data processing expense increased $184,000 to $1.9 million for the nine months ended September 30, 2026, compared to the same period prior year. The first nine months of 2026 included a full period of expenses related to online banking, mobile banking, and bill payment system upgrades completed in 2025. The first quarter of 2026 included the receipt of a $389,000 periodic refund from our data processing center, compared to a $447,000 similar refund in the same period prior year.
Showing the first 40 of 78 pairs. Open the source sections for the rest.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
Personnel expenses increased $206,000 to $10.9 million for the third quarter of 2026, compared to the prior quarter. This increase was primarily due to an increase in headcount and higher personnel-related accruals. As of September 30, 2026 and June 30, 2026, we had 390 and 381 total employees, respectively.
Current report — wording carried from elsewhere
Our securities portfolio is an alternative source for meeting liquidity needs and was our second-largest component of assets as of September 30, 2026. 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.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Data processing expense increased $381,000 to $758,000 for the second quarter of 2026, compared to the prior quarter. The first quarter of 2026 benefited from the receipt of a $389,000 periodic refund from our data processing center.