Red River Bancshares, Inc. (RRBI): BCG Matrix [Dec-2025 Updated]

You're looking for a clear-eyed view of Red River Bancshares, Inc.'s (RRBI) business lines, and honestly, the BCG Matrix is the perfect tool to map their current strategic position. We've mapped their portfolio, showing strong growth engines like NIM expansion hitting 3.43% in Q3 2025 and new loan yields averaging 7.02%-those are your Stars. Meanwhile, the bedrock remains solid with a $2.84 billion core deposit franchise and a 18.18% capital ratio acting as reliable Cash Cows, though we need to watch the small but fast-growing 83.9% jump in Nonperforming Assets. Dive in to see which emerging services like digital upgrades are the high-potential Question Marks and which legacy areas might be slowing things down.

Background of Red River Bancshares, Inc. (RRBI)

You're looking at Red River Bancshares, Inc. (Nasdaq: RRBI), which is the holding company for Red River Bank. This bank has a solid footprint, operating 28 banking centers across Louisiana, plus it has loan and deposit production offices in New Orleans and Lafayette. To expand its reach, Red River Bancshares opened a new loan and deposit production office in Lafayette, Louisiana, during the third quarter of 2025.

As of the third quarter of 2025, the scale of the operation was significant; total assets stood near $3.17 billion, with loans held for investment reaching $2.17 billion and total deposits at $2.84 billion. For context on its standing, S&P Global Market Intelligence ranked Red River Bancshares 14th among the top 50 best deposit franchises for banks in the $3.0 to $10.0 billion asset range in the first quarter of 2025.

Financially, Red River Bancshares showed strong momentum through the first nine months of 2025. Net income for that nine-month period hit $31.3 million, translating to $4.65 per diluted common share, a nice jump from $24.9 million in the same stretch of 2024. The third quarter alone saw net income reach $10.8 million, or $1.63 per diluted EPS, driven by a $1.1 million increase in net interest income over the prior quarter. The net interest margin (FTE) also kept improving, hitting 3.43% in Q3 2025, which is up 7 basis points from Q2 2025.

Management showed confidence in the bank's performance by taking concrete actions. They increased the quarterly cash dividend by 25.0% to $0.15 per common share for the third quarter of 2025. Furthermore, Red River Bancshares was active in capital management, authorizing a $5.0 million stock repurchase program for 2025, and in Q3 2025, they completed a private repurchase of 100,000 shares for $5.3 million. The return on average equity for the third quarter was 12.62%, and the return on assets was 1.34%.

Red River Bancshares, Inc. (RRBI) - BCG Matrix: Stars

The business units or products exhibiting characteristics of Stars for Red River Bancshares, Inc. (RRBI) are those demonstrating strong performance in growing areas, evidenced by margin expansion and targeted loan growth initiatives as of the third quarter of 2025.

Net Interest Margin (NIM) expansion is a key indicator of success in the current interest rate environment. The Net Interest Margin fully taxable equivalent (FTE) reached 3.43% for the third quarter of 2025. This represents an increase of 7 basis points (bps) over the prior quarter, continuing an upward trend from 3.36% in Q2 2025 and 3.22% in Q1 2025. This sustained margin improvement suggests strong pricing power or asset mix optimization in a growing market segment.

The quality of new business is reflected in loan yields. The average rate on new and renewed loans for Q3 2025 was 7.02%. This is part of a broader trend where loan income contributed significantly to the $1.1 million increase in Net Interest Income for the quarter.

Strategic geographic expansion is fueling market share capture. Red River Bank operates a network of 28 banking centers across Louisiana. A significant move in Q3 2025 was the opening of a new loan and deposit production office in the Acadiana market, specifically in Lafayette, Louisiana. This builds upon the existing presence, which already included a loan and deposit production office in New Orleans.

The focus on high-yield, relationship-based lending is visible in the Commercial and Industrial (C&I) loan segment. The C&I loan portfolio shows clear growth momentum.

The C&I loan balance increased by $20,328 thousand from the Q2 2025 balance of $348,917 thousand. This targeted growth in C&I lending, a core relationship-based area, supports the Star classification, as it represents investment in a segment expected to yield strong returns.

Key performance metrics supporting the growth narrative include:

• Net Interest Margin (FTE) in Q3 2025: 3.43%.
• Average yield on new and renewed loans (Q3 2025): 7.02%.
• Net Income for Q3 2025: $10.8 million.
• Total Loans Held for Investment (HFI) as of September 30, 2025: $2.17 billion.
• New physical presence established in Q3 2025: Lafayette loan and deposit office.

Red River Bancshares, Inc. (RRBI) - BCG Matrix: Cash Cows

You're looking at the core engine of Red River Bancshares, Inc.'s financial stability. Cash Cows are the business units that generate more cash than they need to maintain their position. They are the bedrock, funding the rest of the company's strategy.

The core deposit franchise for Red River Bancshares, Inc. is definitely a prime example here. As of September 30, 2025, total deposits stood at $2.84 billion. This large, stable funding base allows the company to operate with less reliance on more expensive market funding.

The primary asset class supporting this cash generation is the loan portfolio. Loans held for investment (HFI) totaled $2.17 billion at the end of the third quarter of 2025. This portfolio, heavily weighted toward Commercial Real Estate (CRE), represents mature, high-quality assets that generate consistent interest income, which is the hallmark of a Cash Cow.

To support this asset base, Red River Bancshares, Inc. maintains a strong capital position. The total risk-based capital ratio was reported at 18.18% as of Q3 2025. This level is well above regulatory minimums, showing the firm has ample cushion, which is typical for a business unit that is a reliable cash generator.

The funding structure is further enhanced by low-cost sources. Noninterest-bearing deposits increased in Q3 2025, helping to keep the overall cost of funds managed. For context on this low-cost base, noninterest-bearing deposits represented 32.08% of total deposits as of March 31, 2025, illustrating the value of this funding source.

You want to see the numbers that define this Cash Cow status:

• Core deposit franchise total: $2.84 billion (as of September 30, 2025).
• Primary asset class (Loans HFI): $2.17 billion (as of September 30, 2025).
• Capital strength ratio: 18.18% (Total risk-based capital ratio, Q3 2025).
• Net income for Q3 2025: $10.8 million.

Here's a quick view of the key financial metrics supporting the Cash Cow classification for Red River Bancshares, Inc. as of the third quarter of 2025:

Because these units generate excess cash, the focus shifts to efficiency and maintenance. Investments here are targeted at infrastructure that keeps the machine running smoothly, not massive expansion. For instance, Red River Bancshares, Inc. increased the quarterly cash dividend by 25.0% in Q3 2025, a direct return of 'milked' gains to shareholders.

The bank is actively managing its capital base, which is a key action for a Cash Cow. In Q3 2025, the company entered an agreement to repurchase 100,000 shares of common stock for $5.3 million. This is a passive way to return capital while maintaining the core business structure.

Finance: draft 13-week cash view by Friday.

Red River Bancshares, Inc. (RRBI) - BCG Matrix: Dogs

Units categorized as Dogs for Red River Bancshares, Inc. (RRBI) are those operating in low-growth areas or exhibiting low market share, frequently breaking even or consuming minimal cash, making them candidates for divestiture.

The asset quality metrics for Red River Bancshares, Inc. show a clear area of concern regarding nonperforming assets, even though the overall ratio remains low. Nonperforming Assets (NPAs) were reported at $2.4 million as of September 30, 2025, representing 0.08% of total assets. This figure marks a significant deterioration from June 30, 2025, when NPAs were $1.3 million, or 0.04% of assets. The increase in NPAs was 83.9%, primarily due to an increase in nonaccrual loans, partially offset by the sale of Other Real Estate Owned (OREO), leaving OREO at $0 as of September 30, 2025.

The existing lower-yielding securities portfolio presents a cash flow situation that requires redeployment. Red River Bancshares, Inc. expects to receive $33.4 million in cash flows from securities during the fourth quarter of 2025, which is noted to be at a lower rate of 3.72%. The plan is to redeploy these funds at higher yields.

Legacy administrative processes are implied by the trend in operating expenses. Operating expenses for Red River Bancshares, Inc. totaled $17.9 million for the third quarter of 2025. This was an increase of $522,000, or 3.0%, compared to the previous quarter. For context, in the second quarter of 2025, operating expenses were higher than the first quarter, which benefited from approximately $620,000 of periodic items that reduced operating expenses.

Here's a look at the key financial data points associated with these potential Dog characteristics:

The situation suggests a need to manage assets that are not performing optimally:

• Nonaccrual loans drove the 83.9% rise in NPAs.
• The sale of all Other Real Estate Owned (OREO) was completed in Q3 2025.
• The $33.4 million in expected Q4 2025 securities cash flows at 3.72% is planned for redeployment into higher-yielding assets.
• Fixed rate loans maturing in Q4 2025 total $84.9 million at 6.41%.

Red River Bancshares, Inc. (RRBI) - BCG Matrix: Question Marks

You're looking at the areas of Red River Bancshares, Inc. (RRBI) that are in high-growth markets but haven't yet captured a dominant position, meaning they consume cash for development but don't yet generate proportional returns. These are the units that require heavy investment to move them toward Star status or risk them becoming Dogs.

Digital Banking System Upgrades

The commitment to technology is clear, as Red River Bancshares, Inc. completed significant upgrades to digital banking systems during the first quarter of 2025. This area represents a high-growth market segment where capturing market share is critical for future competitiveness. While the investment is substantial, the relative market share in this rapidly evolving space is still developing, fitting the Question Mark profile. The bank's overall financial strength, evidenced by a net income of $10.8 million in the third quarter of 2025, provides the necessary cash flow to fund these necessary, cash-consuming initiatives.

Treasury Management and Merchant Services

These fee-based services for business clients are high-potential avenues for non-interest income growth. To gain traction in these competitive areas, Red River Bancshares, Inc. must invest to quickly build market penetration. The overall loan portfolio, which stood at $2.17 billion in loans held for investment as of September 30, 2025, shows the scale of the client base that these services target.

Wealth Management and Trust Services

This business line is described as smaller but possessing high-margin potential, suggesting it needs focused investment to scale its market presence. A growing overall asset base, with total securities at $764.6 million as of the third quarter of 2025, indicates an existing foundation to cross-sell these higher-margin services. The bank's ability to increase its quarterly cash dividend by 25.0% to $0.15 per common share in Q3 2025 suggests improving profitability that can be redirected to these growth areas.

Investment in JAM FINTOP Banktech, L.P. Fund

The participation in the JAM FINTOP Banktech, L.P. fund is a strategic investment in the broader fintech ecosystem, which can be viewed as an investment in future growth opportunities. During the third quarter of 2025, this investment provided a tangible, albeit nonrecurring, return. Specifically, Red River Bancshares, Inc. received $253,000 in nonrecurring partnership income from JAM FINTOP in Q3 2025. This income contributed to the quarter's net income of $10.8 million.

Here's a snapshot of the financial context supporting the ability to invest in these Question Marks:

The strategy for these units revolves around rapid market share capture. The bank needs to quickly decide where to allocate capital for aggressive growth versus where to divest or hold. The growth in total deposits to $2.84 billion by the end of the third quarter shows the overall balance sheet is expanding, which is a prerequisite for funding high-growth, cash-consuming units.

The required actions for these Question Marks involve targeted resource allocation, as illustrated by the strategic focus areas:

• Digital banking: Secure adoption post-upgrade.
• Treasury/Merchant Services: Aggressively gain business client share.
• Wealth/Trust: Scale operations to realize margin potential.
• JAM FINTOP: Evaluate the investment's long-term strategic fit.