Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 30, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-38888 | |
Entity Registrant Name | Red River Bancshares Inc | |
Entity Incorporation, State or Country Code | LA | |
Entity Tax Identification Number | 72-1412058 | |
Entity Address, Address Line One | 1412 Centre Court Drive, Suite 501, | |
Entity Address, City or Town | Alexandria, | |
Entity Address, State or Province | LA | |
Entity Address, Postal Zip Code | 71301 | |
City Area Code | 318 | |
Local Phone Number | 561-5028 | |
Title of 12(b) Security | Common Stock, no par value | |
Trading Symbol | RRBI | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business Category | true | |
Entity Emerging Growth Category | true | |
Entity Ex Transition Period | true | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 7,322,532 | |
Entity Central Index Key | 0001071236 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus (i.e. Q1,Q2,Q3,FY) | Q1 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
ASSETS | ||
Cash and due from banks | $ 31,858 | $ 25,937 |
Interest-bearing deposits in other banks | 48,605 | 107,355 |
Total Cash and Cash Equivalents | 80,463 | 133,292 |
Securities available-for-sale | 401,944 | 335,573 |
Equity securities | 3,998 | 3,936 |
Nonmarketable equity securities | 1,354 | 1,350 |
Loans held for sale | 6,597 | 5,089 |
Loans held for investment | 1,447,362 | 1,438,924 |
Allowance for loan losses | (14,393) | (13,937) |
Premises and equipment, net | 41,711 | 41,744 |
Accrued interest receivable | 5,240 | 5,251 |
Bank-owned life insurance | 21,987 | 21,845 |
Intangible assets | 1,546 | 1,546 |
Right-of-use assets | 4,454 | 4,553 |
Other assets | 8,438 | 9,059 |
Total Assets | 2,010,701 | 1,988,225 |
LIABILITIES | ||
Noninterest-bearing deposits | 607,322 | 584,915 |
Interest-bearing deposits | 1,120,460 | 1,136,205 |
Total Deposits | 1,727,782 | 1,721,120 |
Accrued interest payable | 2,307 | 2,222 |
Lease liabilities | 4,511 | 4,603 |
Accrued expenses and other liabilities | 11,926 | 8,382 |
Total Liabilities | 1,746,526 | 1,736,327 |
COMMITMENTS AND CONTINGENCIES | 0 | 0 |
STOCKHOLDERS' EQUITY | ||
Preferred stock, no par value: Authorized - 1,000,000 shares; None Issued and Outstanding | 0 | 0 |
Common stock, no par value: Authorized - 30,000,000 shares; Issued and Outstanding - 7,322,532 and 7,306,221 shares | 68,177 | 68,082 |
Additional paid-in capital | 1,333 | 1,269 |
Retained earnings | 188,877 | 182,571 |
Accumulated other comprehensive income (loss) | 5,788 | (24) |
Total Stockholders' Equity | 264,175 | 251,898 |
Total Liabilities and Stockholders' Equity | $ 2,010,701 | $ 1,988,225 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares | Mar. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, shares authorized (in shares) | 30,000,000 | 30,000,000 |
Common stock, shares, issued (in shares) | 7,322,532 | 7,306,221 |
Common stock, shares, outstanding (in shares) | 7,322,532 | 7,306,221 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
INTEREST AND DIVIDEND INCOME | |||
Interest and fees on loans | $ 16,466 | $ 15,504 | |
Interest on securities | 1,791 | 1,763 | |
Interest on federal funds sold | 113 | 212 | |
Interest on deposits in other banks | 206 | 416 | |
Dividends on stock | 4 | 9 | |
Total Interest and Dividend Income | 18,580 | 17,904 | |
INTEREST EXPENSE | |||
Interest on deposits | 2,492 | 2,296 | |
Interest on junior subordinated debentures | 0 | 156 | |
Total Interest Expense | 2,492 | 2,452 | |
Net Interest Income | 16,088 | 15,452 | |
Provision for loan losses | 503 | 526 | |
Net Interest Income After Provision for Loan Losses | 15,585 | 14,926 | |
NONINTEREST INCOME | |||
Service charges on deposit accounts | 1,228 | 1,026 | |
Debit card income, net | 755 | 695 | |
Mortgage loan income | 889 | 514 | |
Brokerage income | 744 | 365 | |
Loan and deposit income | 300 | 346 | |
Bank-owned life insurance income | 142 | 133 | |
Gain (Loss) on equity securities | 63 | 48 | |
Gain (Loss) on sale of securities | 383 | 0 | |
SBIC income | 178 | 120 | |
Other income | 49 | 49 | |
Total Noninterest Income | 4,731 | 3,296 | |
OPERATING EXPENSES | |||
Personnel expenses | 7,348 | 6,640 | |
Occupancy and equipment expenses | 1,185 | 1,175 | |
Technology expenses | 586 | 544 | |
Advertising | 261 | 209 | |
Other business development expenses | 295 | 282 | |
Data processing expense | 450 | 459 | |
Other taxes | 437 | 353 | |
Loan and deposit expenses | 246 | 223 | |
Legal and professional expenses | 495 | 319 | |
Regulatory assessment expenses | 26 | 142 | |
Other operating expenses | 621 | 812 | |
Total Operating Expenses | 11,950 | 11,158 | |
Income Before Income Tax Expense | 8,366 | 7,064 | |
Income tax expense | 1,621 | 1,368 | |
Net Income | $ 6,745 | $ 5,696 | |
EARNINGS PER SHARE | |||
Basic (in dollars per share) | [1] | $ 0.92 | $ 0.86 |
Diluted (in dollars per share) | [1] | $ 0.92 | $ 0.85 |
[1] | (in thousands, except per share data) For the Three Months Ended March 31, 2020 2019 INTEREST AND DIVIDEND INCOME Interest and fees on loans $ 16,466 $ 15,504 Interest on securities 1,791 1,763 Interest on federal funds sold 113 212 Interest on deposits in other banks 206 416 Dividends on stock 4 9 Total Interest and Dividend Income 18,580 17,904 INTEREST EXPENSE Interest on deposits 2,492 2,296 Interest on junior subordinated debentures — 156 Total Interest Expense 2,492 2,452 Net Interest Income 16,088 15,452 Provision for loan losses 503 526 Net Interest Income After Provision for Loan Losses 15,585 14,926 NONINTEREST INCOME Service charges on deposit accounts 1,228 1,026 Debit card income, net 755 695 Mortgage loan income 889 514 Brokerage income 744 365 Loan and deposit income 300 346 Bank-owned life insurance income 142 133 Gain (Loss) on equity securities 63 48 Gain (Loss) on sale of securities 383 — SBIC income 178 120 Other income 49 49 Total Noninterest Income 4,731 3,296 OPERATING EXPENSES Personnel expenses 7,348 6,640 Occupancy and equipment expenses 1,185 1,175 Technology expenses 586 544 Advertising 261 209 Other business development expenses 295 282 Data processing expense 450 459 Other taxes 437 353 Loan and deposit expenses 246 223 Legal and professional expenses 495 319 Regulatory assessment expenses 26 142 Other operating expenses 621 812 Total Operating Expenses 11,950 11,158 Income Before Income Tax Expense 8,366 7,064 Income tax expense 1,621 1,368 Net Income $ 6,745 $ 5,696 EARNINGS PER SHARE Basic $ 0.92 $ 0.86 Diluted $ 0.92 $ 0.85 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 6,745 | $ 5,696 |
Other comprehensive income (loss): | ||
Unrealized net gain (loss) on securities arising during period | 7,740 | 4,918 |
Tax effect | (1,625) | (1,033) |
(Gain) loss on sale of securities included in net income | (383) | 0 |
Tax effect | 80 | 0 |
Total change in other comprehensive income (loss) | 5,812 | 3,885 |
Comprehensive Income | $ 12,557 | $ 9,581 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Balance at the beginning of period (in shares) at Dec. 31, 2018 | 6,627,358 | ||||
Balance in the beginning of period at Dec. 31, 2018 | $ 193,703 | $ 41,094 | $ 1,042 | $ 159,073 | $ (7,506) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 5,696 | 5,696 | |||
Stock incentive plan | 49 | 49 | |||
Issuance of shares of common stock through exercise of stock options (in shares) | 7,200 | ||||
Issuance of shares of common stock through exercise of stock options | 80 | $ 80 | |||
Issuance of shares of common stock as board compensation (in shares) | 2,368 | ||||
Issuance of shares of common stock as board compensation | 97 | $ 97 | |||
Cash dividend | (1,326) | (1,326) | |||
Other comprehensive income (loss) | 3,885 | 3,885 | |||
Balance at the end of period (in shares) at Mar. 31, 2019 | 6,636,926 | ||||
Balance at the end of period at Mar. 31, 2019 | $ 202,184 | $ 41,271 | 1,091 | 163,443 | (3,621) |
Balance at the beginning of period (in shares) at Dec. 31, 2019 | 7,306,221 | 7,306,221 | |||
Balance in the beginning of period at Dec. 31, 2019 | $ 251,898 | $ 68,082 | 1,269 | 182,571 | (24) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 6,745 | 6,745 | |||
Stock incentive plan | 64 | 64 | |||
Issuance of shares of common stock through exercise of stock options (in shares) | 14,720 | ||||
Issuance of shares of common stock through exercise of stock options | 8 | $ 8 | |||
Issuance of shares of common stock as board compensation (in shares) | 1,591 | ||||
Issuance of shares of common stock as board compensation | 87 | $ 87 | |||
Cash dividend | (439) | (439) | |||
Other comprehensive income (loss) | $ 5,812 | 5,812 | |||
Balance at the end of period (in shares) at Mar. 31, 2020 | 7,322,532 | 7,322,532 | |||
Balance at the end of period at Mar. 31, 2020 | $ 264,175 | $ 68,177 | $ 1,333 | $ 188,877 | $ 5,788 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED) (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends (in dollars per share) | $ 0.06 | $ 0.2 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | $ 6,745 | $ 5,696 | |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Depreciation | 449 | 424 | |
Amortization | 144 | 113 | |
Share-based compensation earned | 64 | 49 | |
Share-based board compensation earned | 17 | 24 | |
(Gain) Loss on other assets owned | (5) | (20) | |
Net (accretion) amortization on securities AFS | 660 | 283 | |
Gain on sale of securities AFS | (383) | 0 | |
Provision for loan losses | 503 | 526 | $ 1,810 |
Deferred income tax (benefit) expense | (130) | 0 | |
Net (increase) decrease in loans HFS | (1,508) | 694 | |
Net (increase) decrease in accrued interest receivable | 11 | 25 | |
Net (increase) decrease in BOLI | (142) | (133) | |
Net increase (decrease) in accrued interest payable | 85 | 210 | |
Other operating activities, net | 2,344 | 1,913 | |
Net cash provided by (used in) operating activities | 8,854 | 9,804 | |
Activity in securities AFS: | |||
Sales | 31,160 | 0 | |
Maturities, prepayments, and calls | 18,354 | 17,005 | |
Purchases | (108,805) | (23,845) | |
Purchase of nonmarketable equity securities | (4) | (4) | |
Net (increase) decrease in loans HFI | (8,508) | (20,773) | |
Proceeds from sales of foreclosed assets | 299 | 333 | |
Purchases of premises and equipment | (410) | (767) | |
Net cash used in investing activities | (67,914) | (28,051) | |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Net increase (decrease) in deposits | 6,662 | 45,551 | |
Proceeds from exercise of stock options | 8 | 80 | |
Cash dividends | (439) | (1,326) | |
Net cash provided by financing activities | 6,231 | 44,305 | |
Net change in cash and cash equivalents | (52,829) | 26,058 | |
Cash and cash equivalents - beginning of period | 133,292 | 151,906 | 151,906 |
Cash and cash equivalents - end of period | 80,463 | 177,964 | $ 133,292 |
Cash paid during the year for: | |||
Interest | 2,407 | 2,242 | |
Income taxes | 0 | 0 | |
Initial measurement and recognition of operating lease assets in exchange for lease liabilities | 0 | 4,954 | |
SUPPLEMENTAL INFORMATION FOR NON-CASH INVESTING AND FINANCING ACTIVITIES | |||
Assets acquired in settlement of loans | 23 | 81 | |
Unsettled securities AFS purchases at period-end | $ 1,741 | $ 1,314 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited consolidated financial statements of the Company were prepared in accordance with GAAP for interim financial information, general practices within the financial services industry, and with instructions for Form 10-Q and Regulation S-X. Accordingly, these interim financial statements do not include all of the information or footnotes required by GAAP for annual financial statements. However, in the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the financial statements have been included. The results of operations for the interim periods disclosed herein are not necessarily indicative of the results which may be expected for the entire fiscal year. These statements should be read in conjunction with the Company's audited consolidated financial statements and notes thereto for the year ended December 31, 2019 , included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 . Certain prior period amounts have been reclassified to conform to the current period presentation. These changes in presentation did not have a material impact on the Company's financial condition or results of operations. Critical Accounting Policies and Estimates There were no material changes or developments during the reporting period with respect to methodologies the Company uses when applying critical accounting policies and developing critical accounting estimates as disclosed in Note 1 of the notes to the audited consolidated financial statements for the year ended December 31, 2019 , that were included in the Company's Annual Report on Form 10-K for the year ended December 31, 2019 Accounting Standards Adopted in 2020 ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. This ASU eliminates, adds, and modifies certain disclosure requirements for fair value measurements as part of its disclosure framework project. This standard was effective for annual periods beginning after December 15, 2019, and interim periods within those fiscal years. ASU No. 2018-13 was adopted as of January 1, 2020, and did not have a material impact on the Company's financial statements . ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairmen t. This ASU simplifies the accounting for goodwill impairment for all entities by requiring impairment charges to be based on the first step in today’s two-step impairment test. Under the new guidance, if a reporting unit’s carrying amount exceeds its fair value, an entity will record an impairment based on that difference. The impairment will be limited to the amount of goodwill allocated to that reporting unit. The standard eliminates the requirement to calculate a goodwill impairment using Step 2, which requires an entity to calculate any impairment by comparing the implied fair value of goodwill with its carrying amount. This standard was effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods. ASU 2017-04 was adopted as of January 1, 2020, and did not have a material impact on the Company's financial statements . Recent Accounting Pronouncements ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The guidance issued in this update simplifies the accounting for income taxes by eliminating certain exceptions to the guidance in ASC 740 related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, and the recognition for deferred tax liabilities for outside basis differences. ASU 2019-12 also simplifies aspects of the accounting for franchise taxes and enacted tax changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. ASU 2019-12 is effective for annual periods beginning after December 15, 2020, with early adoption permitted. The adoption of this guidance is not expected to have a material impact on the Company's consolidated financial statements. ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 sets forth the CECL model requiring the Company to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. ASU 2016-13 requires enhanced disclosures related to the significant estimates and judgments used in estimating credit losses. In addition, the update amends the accounting for credit losses on AFS securities. As an SEC registrant with smaller reporting company filing status, CECL is effective for the Company beginning January 1, 2023. The Company continues to evaluate the impact of this ASU on the consolidated financial statements and disclosures. In that regard, the Company has formed a cross-functional working group and is currently working through an implementation plan. The implementation plan includes an assessment of data, model development and documentation, documentation of processes, and implementation of a third-party vendor solution to assist in the adoption of ASU 2016-13 . |
Securities
Securities | 3 Months Ended |
Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | Securities Securities held for indefinite periods of time are classified as AFS and carried at estimated fair value. The Company did not have any HTM securities as of March 31, 2020 . Investment activity for the three months ended March 31, 2020 , included $108.8 million of securities purchased, partially offset by $31.2 million in sales, and $18.4 million in maturities, prepayments, and calls. The investment portfolio had an increase of $7.4 million in fair value for the three months ended March 31, 2020. The amortized cost and estimated fair values of securities AFS are summarized in the following tables: March 31, 2020 (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Securities AFS: Mortgage-backed securities $ 297,445 $ 6,262 $ (22 ) $ 303,685 Municipal bonds 90,726 1,060 (125 ) 91,661 U.S. agency securities 6,446 152 — 6,598 Total Securities AFS $ 394,617 $ 7,474 $ (147 ) $ 401,944 December 31, 2019 (in thousands) Amortized Gross Gross Fair Securities AFS: Mortgage-backed securities $ 236,572 $ 299 $ (1,200 ) $ 235,671 Municipal bonds 91,929 1,108 (279 ) 92,758 U.S. agency securities 7,102 46 (4 ) 7,144 Total Securities AFS $ 335,603 $ 1,453 $ (1,483 ) $ 335,573 The amortized costs and estimated fair value of debt securities as of March 31, 2020 , by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because issuers have the right to call or repay obligations with or without call or prepayment penalties. (in thousands) Amortized Cost Fair Value Within one year $ 3,639 $ 3,640 After one year but within five years 23,194 23,440 After five years but within ten years 58,481 59,591 After ten years 309,303 315,273 Total $ 394,617 $ 401,944 Information pertaining to securities with gross unrealized losses as of March 31, 2020 and December 31, 2019 , aggregated by investment category and length of time that individual securities have been in a continuous loss position, is described as follows: Less than twelve months Twelve months or more Gross Unrealized Losses Fair Value Gross Fair March 31, 2020 Securities AFS: Mortgage-backed securities $ (21 ) $ 2,896 $ (1 ) $ 1,888 Municipal bonds (104 ) 15,299 (21 ) 1,404 U.S. agency securities — — — — Total Securities AFS $ (125 ) $ 18,195 $ (22 ) $ 3,292 December 31, 2019 Securities AFS: Mortgage-backed securities $ (474 ) $ 109,416 $ (726 ) $ 70,425 Municipal bonds (172 ) 18,735 (107 ) 9,323 U.S. agency securities (4 ) 1,020 — — Total Securities AFS $ (650 ) $ 129,171 $ (833 ) $ 79,748 As of March 31, 2020 , the number of investment securities in an unrealized loss position totaled 42 . The aggregate unrealized loss of these securities as of March 31, 2020 , was 0.04% of the amortized cost basis of the total securities AFS portfolio. Management and the Asset-Liability Committee continually monitor the securities portfolio and are able to effectively measure and monitor the unrealized loss positions on these securities. 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. The unrealized losses on these securities have been determined by management to be a function of the movement of interest rates since the time of purchase. Based on review of available information, including recent changes in interest rates and credit rating information, management believes the declines in fair value of these securities are temporary. The Company does not consider these securities to have OTTI. Management evaluates securities for OTTI on at least a quarterly basis, and more frequently if economic or market concerns merit such evaluation. Consideration is given to (1) the length of time and the extent to which the fair value has been less than cost; (2) the financial condition and near-term prospects of the issuer; and (3) whether the Company intends to, and it is more likely than not that it will be able to, retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. Additionally, the Company annually performs a detailed credit review of the municipal securities owned to identify any potential credit concerns. There were no OTTI losses on debt securities related to credit losses recognized during the three months ended March 31, 2020 , or the year ended December 31, 2019 . The proceeds from sales of securities AFS and their gross gain (loss) for the three months ended March 31, 2020 and 2019, are shown below: Three Months Ended March 31, (in thousands) 2020 2019 Proceeds (1) $ 31,160 $ — Gross gain $ 456 $ — Gross loss $ (73 ) $ — (1) The proceeds include the gross gain and loss. Pledged Securities Securities with carrying values of approximately $105.3 million and $89.8 million were pledged to secure public entity deposits as of March 31, 2020 and December 31, 2019 , respectively. |
Loans and Asset Quality
Loans and Asset Quality | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Loans and Asset Quality | Loans and Asset Quality Loans Loans HFI by category and loans HFS are summarized below: (in thousands) March 31, 2020 December 31, 2019 Real estate: Commercial real estate $ 538,077 $ 531,990 One-to-four family residential 421,041 420,020 Construction and development 142,835 132,461 Commercial and industrial 263,888 267,940 Tax-exempt 54,490 56,494 Consumer 27,031 30,019 Total loans HFI $ 1,447,362 $ 1,438,924 Total loans HFS $ 6,597 $ 5,089 Allowance for Loan Losses The following table summarizes the activity in the allowance for loan losses by category for the three months ended March 31, 2020 : (in thousands) Beginning Balance December 31, 2019 Provision for Loan Losses Loans Charged-off Recoveries Ending Real estate: Commercial real estate $ 3,454 $ 241 $ — $ — $ 3,695 One-to-four family residential 3,323 242 — 3 3,568 Construction and development 1,211 149 (14 ) — 1,346 Commercial and industrial 5,175 (89 ) (2 ) 5 5,089 Tax-exempt 334 10 — — 344 Consumer 440 (50 ) (77 ) 38 351 Total allowance for loan losses $ 13,937 $ 503 $ (93 ) $ 46 $ 14,393 The following table summarizes the activity in the allowance for loan losses by category for the twelve months ended December 31, 2019 : (in thousands) Beginning Balance December 31, 2018 Provision for Loan Losses Loans Charged-off Recoveries Ending Balance December 31, 2019 Real estate: Commercial real estate $ 3,081 $ 373 $ — $ — $ 3,454 One-to-four family residential 3,146 216 (44 ) 5 3,323 Construction and development 951 172 — 88 1,211 Commercial and industrial 4,604 850 (864 ) 585 5,175 Tax-exempt 372 (38 ) — — 334 Consumer 370 237 (311 ) 144 440 Total allowance for loan losses $ 12,524 $ 1,810 $ (1,219 ) $ 822 $ 13,937 The balance in the allowance for loan losses and the related recorded investment in loans by category as of March 31, 2020 , are as follows: (in thousands) Individually Evaluated for Impairment Collectively Acquired with Deteriorated Credit Quality Total Allowance for loan losses: Real estate: Commercial real estate $ 250 $ 3,445 $ — $ 3,695 One-to-four family residential 40 3,528 — 3,568 Construction and development — 1,346 — 1,346 Commercial and industrial 2,785 2,304 — 5,089 Tax-exempt — 344 — 344 Consumer 62 289 — 351 Total allowance for loan losses $ 3,137 $ 11,256 $ — $ 14,393 Loans: Real estate: Commercial real estate $ 2,427 $ 535,650 $ — $ 538,077 One-to-four family residential 1,192 419,849 — 421,041 Construction and development — 142,835 — 142,835 Commercial and industrial 8,732 255,156 — 263,888 Tax-exempt — 54,490 — 54,490 Consumer 64 26,967 — 27,031 Total loans HFI $ 12,415 $ 1,434,947 $ — $ 1,447,362 The balance in the allowance for loan losses and the related recorded investment in loans by category as of December 31, 2019 , are as follows: (in thousands) Individually Evaluated for Impairment Collectively Acquired with Deteriorated Credit Quality Total Allowance for loan losses: Real estate: Commercial real estate $ 260 $ 3,194 $ — $ 3,454 One-to-four family residential 31 3,292 — 3,323 Construction and development 10 1,201 — 1,211 Commercial and industrial 2,916 2,259 — 5,175 Tax-exempt — 334 — 334 Consumer 71 369 — 440 Total allowance for loan losses $ 3,288 $ 10,649 $ — $ 13,937 Loans: Real estate: Commercial real estate $ 2,639 $ 529,351 $ — $ 531,990 One-to-four family residential 1,193 418,827 — 420,020 Construction and development 38 132,423 — 132,461 Commercial and industrial 8,797 259,143 — 267,940 Tax-exempt — 56,494 — 56,494 Consumer 75 29,944 — 30,019 Total loans HFI $ 12,742 $ 1,426,182 $ — $ 1,438,924 Past Due and Nonaccrual Loans A summary of current, past due, and nonaccrual loans as of March 31, 2020 , is as follows: Accruing (in thousands) Current 30-89 Days 90 Days or More Past Due Nonaccrual Total Loans Real estate: Commercial real estate $ 535,883 $ 932 $ — $ 1,262 $ 538,077 One-to-four family residential 419,392 1,055 — 594 421,041 Construction and development 142,573 262 — — 142,835 Commercial and industrial 260,465 63 — 3,360 263,888 Tax-exempt 54,490 — — — 54,490 Consumer 26,978 34 1 18 27,031 Total loans HFI $ 1,439,781 $ 2,346 $ 1 $ 5,234 $ 1,447,362 A summary of current, past due, and nonaccrual loans as of December 31, 2019 , is as follows: Accruing (in thousands) Current 30-89 Days 90 Days or More Past Due Nonaccrual Total Loans Real estate: Commercial real estate $ 530,712 $ — $ — $ 1,278 $ 531,990 One-to-four family residential 419,229 184 — 607 420,020 Construction and development 132,423 — — 38 132,461 Commercial and industrial 264,427 143 — 3,370 267,940 Tax-exempt 56,494 — — — 56,494 Consumer 29,973 20 — 26 30,019 Total loans HFI $ 1,433,258 $ 347 $ — $ 5,319 $ 1,438,924 Impaired Loans Impaired loans include TDRs and performing and nonperforming loans. Information pertaining to impaired loans as of March 31, 2020 , is as follows: (in thousands) Unpaid Principal Balance Recorded Investment Related Allowance Average Recorded Investment With no related allowance recorded: Real estate: Commercial real estate $ 1,359 $ 1,334 $ — $ 1,435 One-to-four family residential 1,134 1,076 — 1,030 Construction and development — — — — Commercial and industrial 1,759 1,426 — 1,450 Tax-exempt — — — — Consumer 2 2 — 2 Total with no related allowance 4,254 3,838 — 3,917 With allowance recorded: Real estate: Commercial real estate 1,269 1,093 250 1,098 One-to-four family residential 121 116 40 163 Construction and development — — — 19 Commercial and industrial 8,526 7,306 2,785 7,314 Tax-exempt — — — — Consumer 66 62 62 68 Total with related allowance 9,982 8,577 3,137 8,662 Total impaired loans $ 14,236 $ 12,415 $ 3,137 $ 12,579 Information pertaining to impaired loans as of December 31, 2019 , is as follows: (in thousands) Unpaid Principal Balance Recorded Investment Related Allowance Average Recorded Investment With no related allowance recorded: Real estate: Commercial real estate $ 1,560 $ 1,537 $ — $ 2,647 One-to-four family residential 1,040 984 — 1,194 Construction and development — — — 76 Commercial and industrial 1,805 1,474 — 3,685 Tax-exempt — — — — Consumer 2 2 — 9 Total with no related allowance 4,407 3,997 — 7,611 With allowance recorded: Real estate: Commercial real estate 1,263 1,102 260 1,076 One-to-four family residential 216 209 31 339 Construction and development 51 38 10 89 Commercial and industrial 8,544 7,323 2,916 7,746 Tax-exempt — — — — Consumer 76 73 71 76 Total with related allowance 10,150 8,745 3,288 9,326 Total impaired loans $ 14,557 $ 12,742 $ 3,288 $ 16,937 The interest income recognized on impaired loans for the three months ended March 31, 2020 and March 31, 2019 , was $91,000 and $172,000 , respectively. Troubled Debt Restructurings The restructuring of a loan is considered a TDR if the borrower is experiencing financial difficulties and the bank has granted a concession. Concessions grant terms to the borrower that would not be offered for new debt with similar risk characteristics. Concessions typically include interest rate reductions or below market interest rates, revising amortization schedules to defer principal and interest payments, and other changes necessary to provide payment relief to the borrower and minimize the risk of loss. There were no unfunded commitments to extend credit related to these loans as of March 31, 2020 or December 31, 2019 . A summary of current, past due, and nonaccrual TDR loans as of March 31, 2020 , is as follows: (dollars in thousands) Current 30-89 Days 90 Days or More Past Due Nonaccrual Total TDRs Real estate: Commercial real estate $ 1,159 $ — $ — $ 1,262 $ 2,421 One-to-four family residential 249 — — — 249 Construction and development — — — — — Commercial and industrial — — — 1,866 1,866 Tax-exempt — — — — — Consumer 43 — — — 43 Total $ 1,451 $ — $ — $ 3,128 $ 4,579 Number of TDR loans 9 — — 5 14 A summary of current, past due, and nonaccrual TDR loans as of December 31, 2019 , is as follows: (dollars in thousands) Current 30-89 Days 90 Days or More Past Due Nonaccrual Total TDRs Real estate: Commercial real estate $ 1,361 $ — $ — $ 1,278 $ 2,639 One-to-four family residential 252 — — — 252 Construction and development — — — 38 38 Commercial and industrial 36 — — 1,869 1,905 Tax-exempt — — — — — Consumer 46 — — — 46 Total $ 1,695 $ — $ — $ 3,185 $ 4,880 Number of TDR loans 12 — — 6 18 A summary of loans modified as TDRs that occurred during the three months ended March 31, 2020 and March 31, 2019 , is as follows: March 31, 2020 March 31, 2019 Recorded Investment Recorded Investment (dollars in thousands) Loan Count Pre Modification Post Modification Loan Count Pre Modification Post Modification Real estate: Commercial real estate — $ — $ — 1 $ 166 $ 166 One-to-four family residential — — — — — — Construction and development — — — — — — Commercial and industrial — — — — — — Tax-exempt — — — — — — Consumer — — — — — — Total — $ — $ — 1 $ 166 $ 166 The TDRs described above did no t increase the allowance for loan losses as of March 31, 2020 and March 31, 2019 . Additionally, there were no defaults on loans during the three months ended March 31, 2020 or March 31, 2019 , that had been modified as a TDR during the prior twelve months. As of March 31, 2020 , short-term loan modifications on $113.4 million of loans HFI were made to provide temporary relief to borrowers that have been adversely affected by the outbreak of COVID-19. In accordance with interagency regulatory guidance issued in March 2020, these short-term deferrals are not deemed to be TDRs to the extent they meet the terms of such guidance. 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 ratings are assigned to loans with a risk level ranging from very low to acceptable based on the borrower’s financial condition, financial trends, management strength, and collateral quality. 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. Substandard - Loans in this category have well defined weaknesses which jeopardize normal repayment of principal and interest. 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 allowance for loan losses. The following table summarizes loans by risk rating as of March 31, 2020 : (in thousands) Pass Special Mention Substandard Doubtful Loss Total Real estate: Commercial real estate $ 523,760 $ 12,148 $ 2,169 $ — $ — $ 538,077 One-to-four family residential 417,569 2,052 1,420 — — 421,041 Construction and development 141,498 558 779 — — 142,835 Commercial and industrial 245,418 9,368 9,102 — — 263,888 Tax-exempt 54,490 — — — — 54,490 Consumer 26,897 5 129 — — 27,031 Total loans HFI $ 1,409,632 $ 24,131 $ 13,599 $ — $ — $ 1,447,362 The following table summarizes loans by risk rating as of December 31, 2019 : (in thousands) Pass Special Mention Substandard Doubtful Loss Total Real estate: Commercial real estate $ 515,926 $ 14,118 $ 1,946 $ — $ — $ 531,990 One-to-four family residential 416,884 2,021 1,115 — — 420,020 Construction and development 131,185 565 711 — — 132,461 Commercial and industrial 247,382 11,473 9,085 — — 267,940 Tax-exempt 56,494 — — — — 56,494 Consumer 29,876 5 138 — — 30,019 Total loans HFI $ 1,397,747 $ 28,182 $ 12,995 $ — $ — $ 1,438,924 Commitments to Extend Credit Commitments to extend credit are agreements to lend to a customer if all conditions of the commitment have been met. Commitments generally have fixed expiration dates or other termination clauses and may require the payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if it is deemed necessary by the Company upon extension of credit, is based on management’s evaluation of the customer’s ability to repay. As of March 31, 2020 , unfunded loan commitments totaled approximately $270.5 million . As of December 31, 2019 , unfunded loan commitments totaled approximately $257.0 million . Standby letters of credit are conditional commitments issued by the Company 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 March 31, 2020 , commitments under standby letters of credit totaled approximately $10.1 million . As of December 31, 2019 , commitments under standby letters of credit totaled approximately $11.1 million |
Leases
Leases | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Leases | Leases The Company determines if an arrangement is a lease at inception of the contract and assesses the appropriate classification as operating or financing. Operating leases with terms greater than one year are included in right-of-use assets and lease liabilities on the Company's consolidated balance sheets. Agreements with both lease and non-lease components are accounted for separately, with only the lease component capitalized. Operating right-of-use assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the term using the interest rate implicit in the contract, when available, or the Company's incremental collateralized borrowing rate with similar terms. The Company maintains six operating leases on land and buildings for banking center facilities under long-term leases. These operating leases contain renewal options for periods ranging from three to five years that expire at various dates through October 31, 2031, with no residual value guarantees. Future obligations relating to the exercise of renewal options is included in the measurement if, based on the judgment of management, the renewal option is reasonably certain to be exercised. Factors in determining whether an option is reasonably certain of exercise include, but are not limited to, the value of leasehold improvements, the value of the renewal rate compared to market rates, and the presence of factors that would cause a significant economic penalty to the Company if the option is not exercised. Management reasonably plans to exercise all options, and as such, all renewal options are included in the measurement of the right-of-use assets and operating lease liabilities. The Company elects to recognize the lease payments on leases with terms of one year or less in its consolidated statements of income on a straight-line basis over the lease term. Operating lease expenses for operating leases totaled $137,000 for each of the three months ended March 31, 2020 and March 31, 2019 , and are included as a component of occupancy and equipment expenses within the accompanying consolidated statements of income. Cash paid for amounts included in the measurement of lease liabilities for operating leases totaled $130,000 and $125,000 for the three months ended March 31, 2020 and 2019, respectively. The table below summarizes other information related to the Company's operating leases as of and for the three months ended March 31, 2020 : (dollars in thousands) As of and for the Three Months Ended March 31, 2020 Weighted average remaining operating lease term 10.0 years Weighted average operating lease discount rate 3.4 % Future obligations over the primary and renewal option terms of the Company’s long-term operating leases as of March 31, 2020 , were as follows: (in thousands) Amount 9 months remaining in 2020 $ 390 2021 529 2022 537 2023 539 2024 539 Thereafter 2,815 Total lease payments 5,349 Less: Imputed interest (838 ) Present value of lease liabilities $ 4,511 The Company's obligations under financing leases are not material and have not been included in assets and liabilities in the financial statements. |
Fair Value
Fair Value | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. The fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair Value Disclosure Securities AFS, loans HFS, and equity securities are recorded at fair value on a recurring basis. Additionally, the Company may be required to record at fair value other assets on a nonrecurring basis, such as impaired loans, foreclosed assets, and other certain assets. The nonrecurring fair value adjustments typically involve application of lower of cost or market accounting or write-downs of individual assets. ASC 820, Fair Value Measurements and Disclosures indicates that assets and liabilities are recorded at fair value according to a fair value hierarchy comprised of three levels: Level 1 pricing represents quotes on the exact financial instrument that is traded in active markets. Quoted prices on actively traded equities, for example, are in this category. Level 2 pricing is derived from observable data including market spreads, current and projected rates, prepayment data, and credit quality. The valuation may be based on quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. Level 3 pricing is derived without the use of observable data. In such cases, mark-to-model strategies are typically employed. Often, these types of instruments have no active market, possess unique characteristics, and are thinly traded. The Company used the following methods and significant assumptions to estimate fair value: Investment Securities and other Stocks: The fair values for marketable securities are determined by quoted market prices, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2). For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3). Loans HFS: Residential mortgage loans originated and held for sale are carried at the lower of cost or estimated fair value on an individual basis. The fair values of mortgage loans HFS are based on commitments on hand from investors within the secondary market for loans with similar characteristics. As such, the fair value adjustments for mortgage loans HFS are recurring Level 2. Loans HFI: The Company does not record loans HFI at fair value on a recurring basis. However, from time to time, a loan may be considered impaired and an allowance for loan losses may be established. Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. Once a loan is identified as individually impaired, management measures impairment using estimated fair value methodologies. The fair value of impaired loans is estimated using one of several methods, including collateral value, market value of similar debt, enterprise value, liquidation value, and discounted cash flows. When the fair value of the collateral is based on an observable market price or a current appraised value, the Company considers the impaired loan as nonrecurring Level 2. When an appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price, the Company considers the impaired loan as nonrecurring Level 3. Foreclosed Assets: Foreclosed assets, consisting of properties obtained through foreclosure or in satisfaction of loans, are reported at fair value, determined on the basis of current appraisals, comparable sales, and other estimates of value obtained principally from independent sources, adjusted for estimated selling costs (Level 2). However, foreclosed assets are considered Level 3 in the fair value hierarchy because management has qualitatively applied a discount due to the size, supply of inventory, and the incremental discounts applied to the appraisals. Management also considers other factors, including changes in absorption rates, length of time the property has been on the market, and anticipated sales values, which have resulted in adjustments to the collateral value estimates indicated in certain appraisals. Fair Value of Assets Measured on a Recurring Basis The table below presents the recorded amount of assets measured at fair value on a recurring basis: (in thousands) Fair Value Level 1 Level 2 Level 3 March 31, 2020 Loans HFS $ 6,597 $ — $ 6,597 $ — Securities AFS: Mortgage-backed securities 303,685 — 303,685 — U.S. agency securities 6,598 — 6,598 — Municipal bonds 91,661 — 91,661 — Equity securities 3,998 3,998 — — December 31, 2019 Loans HFS $ 5,089 $ — $ 5,089 $ — Securities AFS: Mortgage-backed securities 235,671 — 235,671 — U.S. agency securities 7,144 — 7,144 — Municipal bonds 92,758 — 92,758 — Equity securities 3,936 3,936 — — There were no transfers between Level 1, 2, or 3 during the three months ended March 31, 2020 and the year ended December 31, 2019 . Fair Value of Assets and Liabilities Measured on a Nonrecurring Basis Financial Assets and Financial Liabilities: Certain financial assets and financial liabilities are measured at fair value on a nonrecurring basis and are subject to fair value adjustments in certain circumstances. Financial assets measured at fair value on a nonrecurring basis during the reported periods include certain collateral dependent loans reported at fair value of the underlying collateral if repayment is expected solely from the collateral. Prior to foreclosure of these loans, fair value of the collateral is estimated using Level 3 inputs based on customized discounting criteria. The table below presents certain impaired loans that were remeasured and reported at fair value through the allowance for loan losses based upon the fair value of the underlying collateral during the reported periods: (in thousands) March 31, 2020 December 31, 2019 Carrying value of impaired loans before allowance for loan losses $ 253 $ 88 Specific allowance for loan losses (115 ) (15 ) Fair value of impaired loans $ 138 $ 73 There were no financial liabilities measured at fair value on a nonrecurring basis. Nonfinancial Assets and Liabilities: Certain nonfinancial assets and nonfinancial liabilities are measured at fair value on a nonrecurring basis. These include certain foreclosed assets, which are remeasured and reported at fair value through a charge-off to allowance for loan losses upon initial recognition. Subsequent to their initial recognition, certain foreclosed assets are remeasured at fair value through a write-down included in other noninterest income. The fair value of foreclosed assets are estimated using Level 3 inputs based on customized discounting criteria less estimated selling costs. The following table presents foreclosed assets that were remeasured and reported at fair value during the reported periods: (in thousands) March 31, 2020 December 31, 2019 Foreclosed assets remeasured at initial recognition: Carrying value of foreclosed assets prior to remeasurement $ 24 $ 969 Charge-offs — (29 ) Fair value of foreclosed assets $ 24 $ 940 There were no foreclosed assets that were remeasured subsequent to initial recognition for March 31, 2020 or December 31, 2019. There were no nonfinancial liabilities measured at fair value on a nonrecurring basis. The unobservable inputs used for the Level 3 fair value measurements on a nonrecurring basis are as follows: (dollars in thousands) Fair Value Valuation Technique Unobservable Input Discount Ranges Weighted Average Discount March 31, 2020 Impaired loans $ 9,278 Discounted appraisals Collateral discounts and costs to sell 0% - 100% 25.27% Foreclosed assets $ 852 Discounted appraisals Collateral discounts and costs to sell N/A N/A December 31, 2019 Impaired loans $ 9,454 Discounted appraisals Collateral discounts and costs to sell 0% - 100% 25.80% Foreclosed assets $ 1,128 Discounted appraisals Collateral discounts and costs to sell 0% - 36% 2.60% Fair Value of Financial Instruments The carrying amounts and estimated fair values of financial instruments as of March 31, 2020 and December 31, 2019 , were as follows: (in thousands) Carrying Amount Fair Value Level 1 Level 2 Level 3 March 31, 2020 Financial assets: Cash and due from banks $ 31,858 $ 31,858 $ 31,858 $ — $ — Interest-bearing deposits in other banks 48,605 48,605 48,605 — — Securities AFS 401,944 401,944 — 401,944 — Equity securities 3,998 3,998 3,998 — — Nonmarketable equity securities 1,354 1,354 — 1,354 — Loans HFS 6,597 6,597 — 6,597 — Loans HFI, net of allowance 1,432,969 1,426,990 — — 1,426,990 Accrued interest receivable 5,240 5,240 — — 5,240 Financial liabilities: Deposits 1,727,782 1,732,572 — 1,732,572 — Accrued interest payable 2,307 2,307 — 2,307 — December 31, 2019 Financial assets: Cash and due from banks $ 25,937 $ 25,937 $ 25,937 $ — $ — Interest-bearing deposits in other banks 107,355 107,355 107,355 — — Securities AFS 335,573 335,573 — 335,573 — Equity securities 3,936 3,936 3,936 — — Nonmarketable equity securities 1,350 1,350 — 1,350 — Loans HFS 5,089 5,089 — 5,089 — Loans HFI, net of allowance 1,424,987 1,426,163 — — 1,426,163 Accrued interest receivable 5,251 5,251 — — 5,251 Financial liabilities: Deposits 1,721,120 1,721,286 — 1,721,286 — Accrued interest payable 2,222 2,222 — 2,222 — |
Regulatory Capital Requirements
Regulatory Capital Requirements | 3 Months Ended |
Mar. 31, 2020 | |
Banking and Thrift [Abstract] | |
Regulatory Capital Requirements | Regulatory Capital Requirements Red River Bank The Bank is subject to various regulatory capital requirements administered by the FDIC. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Bank's and the Company's financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of its assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. The Bank is subject to Basel III capital guidelines. Basel III requires the Bank to maintain certain minimum ratios to meet capital adequacy requirements. In addition, a capital conservation buffer ("CCB") was established above the minimum regulatory capital requirements. Effective January 1, 2019, the final CCB was fully phased in at 2.500% . It is management’s belief that, as of March 31, 2020 , the Bank met all capital adequacy requirements under Basel III. Management expects that the capital ratios for the Bank under Basel III will continue to exceed capital adequacy requirements. The most recent notification from the FDIC (as of December 31, 2019) categorized the Bank as "well capitalized" under the regulatory framework for prompt corrective action. Capital amounts and ratios for Red River Bank as of March 31, 2020 and December 31, 2019 , are presented in the following table: Regulatory Requirements Actual Minimum Minimum Plus CCB (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio March 31, 2020 Total Risk-Based Capital $ 245,488 16.45 % $ 119,363 8.00 % $ 156,664 10.50 % Tier I Risk-Based Capital $ 231,095 15.49 % $ 89,522 6.00 % $ 126,823 8.50 % Common Equity Tier I Capital $ 231,095 15.49 % $ 67,142 4.50 % $ 104,443 7.00 % Tier I Leverage Capital $ 231,095 11.60 % $ 79,681 4.00 % $ 79,681 4.00 % December 31, 2019 Total Risk-Based Capital $ 238,021 16.23 % $ 117,325 8.00 % $ 153,989 10.50 % Tier I Risk-Based Capital $ 224,084 15.28 % $ 87,994 6.00 % $ 124,658 8.50 % Common Equity Tier I Capital $ 224,084 15.28 % $ 65,995 4.50 % $ 102,660 7.00 % Tier I Leverage Capital $ 224,084 11.47 % $ 78,114 4.00 % $ 78,114 4.00 % Red River Bancshares, Inc. As a general matter, bank holding companies are subject to capital adequacy requirements under applicable Federal Reserve regulations. However, bank holding companies which qualify as "small bank holding companies" under the Federal Reserve's Small Bank Holding Company Policy Statement are exempt from the Federal Reserve's capital adequacy guidelines at the holding company level. In May 2018, the Economic Growth Act was enacted, and it increased the asset threshold for "small bank holding companies" from $1.0 billion to $3.0 billion . Because the Company has less than $3.0 billion in assets, it is no longer subject to capital adequacy guidelines on a consolidated basis. Although the minimum regulatory capital requirements are no longer applicable to the Company, the Company calculates these ratios for its own planning and monitoring purposes. Capital amounts and ratios for Red River Bancshares, Inc. as of March 31, 2020 and December 31, 2019 , are presented in the following table: Actual (dollars in thousands) Amount Ratio March 31, 2020 Total Risk-Based Capital $ 271,234 18.18 % Tier I Risk-Based Capital $ 256,841 17.21 % Common Equity Tier I Capital $ 256,841 17.21 % Tier I Leverage Capital $ 256,841 12.89 % December 31, 2019 Total Risk-Based Capital $ 264,313 18.02 % Tier I Risk-Based Capital $ 250,376 17.07 % Common Equity Tier I Capital $ 250,376 17.07 % Tier I Leverage Capital $ 250,376 12.82 % Community Bank Leverage Ratio Framework As part of the directive under the Economic Growth Act, on September 17, 2019, the FDIC and other federal bank regulatory agencies approved the CBLR framework. This optional framework became effective January 1, 2020, and will be available 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% (subsequently reduced to 8.00% as a COVID-19 relief measure), are considered qualifying community banking organizations and are eligible to opt into the CBLR framework and replace the applicable Basel III risk-based capital requirements. As of March 31, 2020, the Company and the Bank qualify for the CBLR framework. Management does not intend to utilize the CBLR framework that became effective January 1, 2020. |
Earnings Per Common Share
Earnings Per Common Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | Earnings Per Common Share Basic EPS is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding during the period, after giving retroactive effect to stock splits. Diluted EPS includes accrued but unissued shares relating to the Director's Compensation Program, stock options, and restricted stock determined using the treasury stock method. The dilutive EPS calculation assumes all outstanding stock options to purchase common stock have been exercised at the beginning of the year and the pro forma proceeds from the exercised options and restricted stock are used to purchase common stock at the average fair market valuation price. The computations of basic and diluted earnings per common share for the Company were as follows: For the Three Months Ended March 31, (in thousands, except per share amounts) 2020 2019 Numerator: Net income - basic $ 6,745 $ 5,696 Net income - diluted $ 6,745 $ 5,696 Denominator: Weighted average shares outstanding - basic 7,313,279 6,632,482 Plus: Effect of Director Stock Compensation Program 454 574 Plus: Effect of stock options and restricted stock 37,676 34,973 Weighted average shares outstanding - diluted 7,351,409 6,668,029 Earnings per common share: Basic $ 0.92 $ 0.86 Diluted $ 0.92 $ 0.85 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Management has evaluated subsequent events and transactions through May 15, 2020, the date that the financial statements were available to be issued. COVID-19 As a result of the COVID-19 pandemic, the falling interest rate environment, and stay at home orders, economic uncertainties have arisen which may negatively impact the Company's financial condition or results of operations. Due to the unprecedented and protracted nature of the COVID-19 pandemic, such potential impact is uncertain at this time. Other Borrowed Funds The Company has established various lines of credit with the FHLB and other correspondent banks to provide additional sources of operating funds. On April 15, 2020, in order to fund the SBA's PPP that was designed to assist small and mid-sized businesses with SBA guaranteed loans distributed through commercial banks and other qualified financial services lenders, the Company borrowed $50.0 million from the FHLB for 90 days at a rate of 0.35% under its existing line of credit. The Company's FHLB line of credit is collateralized by eligible Red River Bank loans. Depending on the Company's future liquidity status and considering the short forgiveness term of the PPP loans, the Company anticipates repaying this borrowing at the maturity date. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements of the Company were prepared in accordance with GAAP for interim financial information, general practices within the financial services industry, and with instructions for Form 10-Q and Regulation S-X. Accordingly, these interim financial statements do not include all of the information or footnotes required by GAAP for annual financial statements. However, in the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the financial statements have been included. The results of operations for the interim periods disclosed herein are not necessarily indicative of the results which may be expected for the entire fiscal year. These statements should be read in conjunction with the Company's audited consolidated financial statements and notes thereto for the year ended December 31, 2019 , included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 . |
Reclassification | Certain prior period amounts have been reclassified to conform to the current period presentation. These changes in presentation did not have a material impact on the Company's financial condition or results of operations. |
Critical Accounting Policies and Estimates | Critical Accounting Policies and Estimates There were no material changes or developments during the reporting period with respect to methodologies the Company uses when applying critical accounting policies and developing critical accounting estimates as disclosed in Note 1 of the notes to the audited consolidated financial statements for the year ended December 31, 2019 , that were included in the Company's Annual Report on Form 10-K for the year ended December 31, 2019 |
Accounting Standards Adopted in 2020 and Recent Accounting Pronouncements | Accounting Standards Adopted in 2020 ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. This ASU eliminates, adds, and modifies certain disclosure requirements for fair value measurements as part of its disclosure framework project. This standard was effective for annual periods beginning after December 15, 2019, and interim periods within those fiscal years. ASU No. 2018-13 was adopted as of January 1, 2020, and did not have a material impact on the Company's financial statements . ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairmen t. This ASU simplifies the accounting for goodwill impairment for all entities by requiring impairment charges to be based on the first step in today’s two-step impairment test. Under the new guidance, if a reporting unit’s carrying amount exceeds its fair value, an entity will record an impairment based on that difference. The impairment will be limited to the amount of goodwill allocated to that reporting unit. The standard eliminates the requirement to calculate a goodwill impairment using Step 2, which requires an entity to calculate any impairment by comparing the implied fair value of goodwill with its carrying amount. This standard was effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods. ASU 2017-04 was adopted as of January 1, 2020, and did not have a material impact on the Company's financial statements . Recent Accounting Pronouncements ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The guidance issued in this update simplifies the accounting for income taxes by eliminating certain exceptions to the guidance in ASC 740 related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, and the recognition for deferred tax liabilities for outside basis differences. ASU 2019-12 also simplifies aspects of the accounting for franchise taxes and enacted tax changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. ASU 2019-12 is effective for annual periods beginning after December 15, 2020, with early adoption permitted. The adoption of this guidance is not expected to have a material impact on the Company's consolidated financial statements. ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 sets forth the CECL model requiring the Company to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. ASU 2016-13 requires enhanced disclosures related to the significant estimates and judgments used in estimating credit losses. In addition, the update amends the accounting for credit losses on AFS securities. As an SEC registrant with smaller reporting company filing status, CECL is effective for the Company beginning January 1, 2023. The Company continues to evaluate the impact of this ASU on the consolidated financial statements and disclosures. In that regard, the Company has formed a cross-functional working group and is currently working through an implementation plan. The implementation plan includes an assessment of data, model development and documentation, documentation of processes, and implementation of a third-party vendor solution to assist in the adoption of ASU 2016-13 . |
Securities (Tables)
Securities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of debt securities available for sale | The amortized cost and estimated fair values of securities AFS are summarized in the following tables: March 31, 2020 (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Securities AFS: Mortgage-backed securities $ 297,445 $ 6,262 $ (22 ) $ 303,685 Municipal bonds 90,726 1,060 (125 ) 91,661 U.S. agency securities 6,446 152 — 6,598 Total Securities AFS $ 394,617 $ 7,474 $ (147 ) $ 401,944 December 31, 2019 (in thousands) Amortized Gross Gross Fair Securities AFS: Mortgage-backed securities $ 236,572 $ 299 $ (1,200 ) $ 235,671 Municipal bonds 91,929 1,108 (279 ) 92,758 U.S. agency securities 7,102 46 (4 ) 7,144 Total Securities AFS $ 335,603 $ 1,453 $ (1,483 ) $ 335,573 |
Schedule of maturities of securities available for sale | The amortized costs and estimated fair value of debt securities as of March 31, 2020 , by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because issuers have the right to call or repay obligations with or without call or prepayment penalties. (in thousands) Amortized Cost Fair Value Within one year $ 3,639 $ 3,640 After one year but within five years 23,194 23,440 After five years but within ten years 58,481 59,591 After ten years 309,303 315,273 Total $ 394,617 $ 401,944 |
Schedule of debt securities available for sale in unrealized loss position | Information pertaining to securities with gross unrealized losses as of March 31, 2020 and December 31, 2019 , aggregated by investment category and length of time that individual securities have been in a continuous loss position, is described as follows: Less than twelve months Twelve months or more Gross Unrealized Losses Fair Value Gross Fair March 31, 2020 Securities AFS: Mortgage-backed securities $ (21 ) $ 2,896 $ (1 ) $ 1,888 Municipal bonds (104 ) 15,299 (21 ) 1,404 U.S. agency securities — — — — Total Securities AFS $ (125 ) $ 18,195 $ (22 ) $ 3,292 December 31, 2019 Securities AFS: Mortgage-backed securities $ (474 ) $ 109,416 $ (726 ) $ 70,425 Municipal bonds (172 ) 18,735 (107 ) 9,323 U.S. agency securities (4 ) 1,020 — — Total Securities AFS $ (650 ) $ 129,171 $ (833 ) $ 79,748 |
Schedule of realized gain (loss) | The proceeds from sales of securities AFS and their gross gain (loss) for the three months ended March 31, 2020 and 2019, are shown below: Three Months Ended March 31, (in thousands) 2020 2019 Proceeds (1) $ 31,160 $ — Gross gain $ 456 $ — Gross loss $ (73 ) $ — (1) The proceeds include the gross gain and loss. |
Loans and Asset Quality (Tables
Loans and Asset Quality (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Schedule of loans information | Loans HFI by category and loans HFS are summarized below: (in thousands) March 31, 2020 December 31, 2019 Real estate: Commercial real estate $ 538,077 $ 531,990 One-to-four family residential 421,041 420,020 Construction and development 142,835 132,461 Commercial and industrial 263,888 267,940 Tax-exempt 54,490 56,494 Consumer 27,031 30,019 Total loans HFI $ 1,447,362 $ 1,438,924 Total loans HFS $ 6,597 $ 5,089 |
Schedule of allowance for credit losses | The following table summarizes the activity in the allowance for loan losses by category for the three months ended March 31, 2020 : (in thousands) Beginning Balance December 31, 2019 Provision for Loan Losses Loans Charged-off Recoveries Ending Real estate: Commercial real estate $ 3,454 $ 241 $ — $ — $ 3,695 One-to-four family residential 3,323 242 — 3 3,568 Construction and development 1,211 149 (14 ) — 1,346 Commercial and industrial 5,175 (89 ) (2 ) 5 5,089 Tax-exempt 334 10 — — 344 Consumer 440 (50 ) (77 ) 38 351 Total allowance for loan losses $ 13,937 $ 503 $ (93 ) $ 46 $ 14,393 The following table summarizes the activity in the allowance for loan losses by category for the twelve months ended December 31, 2019 : (in thousands) Beginning Balance December 31, 2018 Provision for Loan Losses Loans Charged-off Recoveries Ending Balance December 31, 2019 Real estate: Commercial real estate $ 3,081 $ 373 $ — $ — $ 3,454 One-to-four family residential 3,146 216 (44 ) 5 3,323 Construction and development 951 172 — 88 1,211 Commercial and industrial 4,604 850 (864 ) 585 5,175 Tax-exempt 372 (38 ) — — 334 Consumer 370 237 (311 ) 144 440 Total allowance for loan losses $ 12,524 $ 1,810 $ (1,219 ) $ 822 $ 13,937 The balance in the allowance for loan losses and the related recorded investment in loans by category as of March 31, 2020 , are as follows: (in thousands) Individually Evaluated for Impairment Collectively Acquired with Deteriorated Credit Quality Total Allowance for loan losses: Real estate: Commercial real estate $ 250 $ 3,445 $ — $ 3,695 One-to-four family residential 40 3,528 — 3,568 Construction and development — 1,346 — 1,346 Commercial and industrial 2,785 2,304 — 5,089 Tax-exempt — 344 — 344 Consumer 62 289 — 351 Total allowance for loan losses $ 3,137 $ 11,256 $ — $ 14,393 Loans: Real estate: Commercial real estate $ 2,427 $ 535,650 $ — $ 538,077 One-to-four family residential 1,192 419,849 — 421,041 Construction and development — 142,835 — 142,835 Commercial and industrial 8,732 255,156 — 263,888 Tax-exempt — 54,490 — 54,490 Consumer 64 26,967 — 27,031 Total loans HFI $ 12,415 $ 1,434,947 $ — $ 1,447,362 The balance in the allowance for loan losses and the related recorded investment in loans by category as of December 31, 2019 , are as follows: (in thousands) Individually Evaluated for Impairment Collectively Acquired with Deteriorated Credit Quality Total Allowance for loan losses: Real estate: Commercial real estate $ 260 $ 3,194 $ — $ 3,454 One-to-four family residential 31 3,292 — 3,323 Construction and development 10 1,201 — 1,211 Commercial and industrial 2,916 2,259 — 5,175 Tax-exempt — 334 — 334 Consumer 71 369 — 440 Total allowance for loan losses $ 3,288 $ 10,649 $ — $ 13,937 Loans: Real estate: Commercial real estate $ 2,639 $ 529,351 $ — $ 531,990 One-to-four family residential 1,193 418,827 — 420,020 Construction and development 38 132,423 — 132,461 Commercial and industrial 8,797 259,143 — 267,940 Tax-exempt — 56,494 — 56,494 Consumer 75 29,944 — 30,019 Total loans HFI $ 12,742 $ 1,426,182 $ — $ 1,438,924 |
Schedule of financing receivable past due | A summary of current, past due, and nonaccrual loans as of March 31, 2020 , is as follows: Accruing (in thousands) Current 30-89 Days 90 Days or More Past Due Nonaccrual Total Loans Real estate: Commercial real estate $ 535,883 $ 932 $ — $ 1,262 $ 538,077 One-to-four family residential 419,392 1,055 — 594 421,041 Construction and development 142,573 262 — — 142,835 Commercial and industrial 260,465 63 — 3,360 263,888 Tax-exempt 54,490 — — — 54,490 Consumer 26,978 34 1 18 27,031 Total loans HFI $ 1,439,781 $ 2,346 $ 1 $ 5,234 $ 1,447,362 A summary of current, past due, and nonaccrual loans as of December 31, 2019 , is as follows: Accruing (in thousands) Current 30-89 Days 90 Days or More Past Due Nonaccrual Total Loans Real estate: Commercial real estate $ 530,712 $ — $ — $ 1,278 $ 531,990 One-to-four family residential 419,229 184 — 607 420,020 Construction and development 132,423 — — 38 132,461 Commercial and industrial 264,427 143 — 3,370 267,940 Tax-exempt 56,494 — — — 56,494 Consumer 29,973 20 — 26 30,019 Total loans HFI $ 1,433,258 $ 347 $ — $ 5,319 $ 1,438,924 |
Schedule of impaired financing receivable | Information pertaining to impaired loans as of March 31, 2020 , is as follows: (in thousands) Unpaid Principal Balance Recorded Investment Related Allowance Average Recorded Investment With no related allowance recorded: Real estate: Commercial real estate $ 1,359 $ 1,334 $ — $ 1,435 One-to-four family residential 1,134 1,076 — 1,030 Construction and development — — — — Commercial and industrial 1,759 1,426 — 1,450 Tax-exempt — — — — Consumer 2 2 — 2 Total with no related allowance 4,254 3,838 — 3,917 With allowance recorded: Real estate: Commercial real estate 1,269 1,093 250 1,098 One-to-four family residential 121 116 40 163 Construction and development — — — 19 Commercial and industrial 8,526 7,306 2,785 7,314 Tax-exempt — — — — Consumer 66 62 62 68 Total with related allowance 9,982 8,577 3,137 8,662 Total impaired loans $ 14,236 $ 12,415 $ 3,137 $ 12,579 Information pertaining to impaired loans as of December 31, 2019 , is as follows: (in thousands) Unpaid Principal Balance Recorded Investment Related Allowance Average Recorded Investment With no related allowance recorded: Real estate: Commercial real estate $ 1,560 $ 1,537 $ — $ 2,647 One-to-four family residential 1,040 984 — 1,194 Construction and development — — — 76 Commercial and industrial 1,805 1,474 — 3,685 Tax-exempt — — — — Consumer 2 2 — 9 Total with no related allowance 4,407 3,997 — 7,611 With allowance recorded: Real estate: Commercial real estate 1,263 1,102 260 1,076 One-to-four family residential 216 209 31 339 Construction and development 51 38 10 89 Commercial and industrial 8,544 7,323 2,916 7,746 Tax-exempt — — — — Consumer 76 73 71 76 Total with related allowance 10,150 8,745 3,288 9,326 Total impaired loans $ 14,557 $ 12,742 $ 3,288 $ 16,937 |
Schedule of TDRs | A summary of current, past due, and nonaccrual TDR loans as of March 31, 2020 , is as follows: (dollars in thousands) Current 30-89 Days 90 Days or More Past Due Nonaccrual Total TDRs Real estate: Commercial real estate $ 1,159 $ — $ — $ 1,262 $ 2,421 One-to-four family residential 249 — — — 249 Construction and development — — — — — Commercial and industrial — — — 1,866 1,866 Tax-exempt — — — — — Consumer 43 — — — 43 Total $ 1,451 $ — $ — $ 3,128 $ 4,579 Number of TDR loans 9 — — 5 14 A summary of current, past due, and nonaccrual TDR loans as of December 31, 2019 , is as follows: (dollars in thousands) Current 30-89 Days 90 Days or More Past Due Nonaccrual Total TDRs Real estate: Commercial real estate $ 1,361 $ — $ — $ 1,278 $ 2,639 One-to-four family residential 252 — — — 252 Construction and development — — — 38 38 Commercial and industrial 36 — — 1,869 1,905 Tax-exempt — — — — — Consumer 46 — — — 46 Total $ 1,695 $ — $ — $ 3,185 $ 4,880 Number of TDR loans 12 — — 6 18 A summary of loans modified as TDRs that occurred during the three months ended March 31, 2020 and March 31, 2019 , is as follows: March 31, 2020 March 31, 2019 Recorded Investment Recorded Investment (dollars in thousands) Loan Count Pre Modification Post Modification Loan Count Pre Modification Post Modification Real estate: Commercial real estate — $ — $ — 1 $ 166 $ 166 One-to-four family residential — — — — — — Construction and development — — — — — — Commercial and industrial — — — — — — Tax-exempt — — — — — — Consumer — — — — — — Total — $ — $ — 1 $ 166 $ 166 |
Schedule of financing receivable by credit risk | The following table summarizes loans by risk rating as of March 31, 2020 : (in thousands) Pass Special Mention Substandard Doubtful Loss Total Real estate: Commercial real estate $ 523,760 $ 12,148 $ 2,169 $ — $ — $ 538,077 One-to-four family residential 417,569 2,052 1,420 — — 421,041 Construction and development 141,498 558 779 — — 142,835 Commercial and industrial 245,418 9,368 9,102 — — 263,888 Tax-exempt 54,490 — — — — 54,490 Consumer 26,897 5 129 — — 27,031 Total loans HFI $ 1,409,632 $ 24,131 $ 13,599 $ — $ — $ 1,447,362 The following table summarizes loans by risk rating as of December 31, 2019 : (in thousands) Pass Special Mention Substandard Doubtful Loss Total Real estate: Commercial real estate $ 515,926 $ 14,118 $ 1,946 $ — $ — $ 531,990 One-to-four family residential 416,884 2,021 1,115 — — 420,020 Construction and development 131,185 565 711 — — 132,461 Commercial and industrial 247,382 11,473 9,085 — — 267,940 Tax-exempt 56,494 — — — — 56,494 Consumer 29,876 5 138 — — 30,019 Total loans HFI $ 1,397,747 $ 28,182 $ 12,995 $ — $ — $ 1,438,924 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Information about operating leases | The table below summarizes other information related to the Company's operating leases as of and for the three months ended March 31, 2020 : (dollars in thousands) As of and for the Three Months Ended March 31, 2020 Weighted average remaining operating lease term 10.0 years Weighted average operating lease discount rate 3.4 % |
Schedule of maturity of operating lease liability | Future obligations over the primary and renewal option terms of the Company’s long-term operating leases as of March 31, 2020 , were as follows: (in thousands) Amount 9 months remaining in 2020 $ 390 2021 529 2022 537 2023 539 2024 539 Thereafter 2,815 Total lease payments 5,349 Less: Imputed interest (838 ) Present value of lease liabilities $ 4,511 |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value of assets measured on recurring basis | The table below presents the recorded amount of assets measured at fair value on a recurring basis: (in thousands) Fair Value Level 1 Level 2 Level 3 March 31, 2020 Loans HFS $ 6,597 $ — $ 6,597 $ — Securities AFS: Mortgage-backed securities 303,685 — 303,685 — U.S. agency securities 6,598 — 6,598 — Municipal bonds 91,661 — 91,661 — Equity securities 3,998 3,998 — — December 31, 2019 Loans HFS $ 5,089 $ — $ 5,089 $ — Securities AFS: Mortgage-backed securities 235,671 — 235,671 — U.S. agency securities 7,144 — 7,144 — Municipal bonds 92,758 — 92,758 — Equity securities 3,936 3,936 — — |
Schedule of fair value of assets measured on nonrecurring basis | The following table presents foreclosed assets that were remeasured and reported at fair value during the reported periods: (in thousands) March 31, 2020 December 31, 2019 Foreclosed assets remeasured at initial recognition: Carrying value of foreclosed assets prior to remeasurement $ 24 $ 969 Charge-offs — (29 ) Fair value of foreclosed assets $ 24 $ 940 The table below presents certain impaired loans that were remeasured and reported at fair value through the allowance for loan losses based upon the fair value of the underlying collateral during the reported periods: (in thousands) March 31, 2020 December 31, 2019 Carrying value of impaired loans before allowance for loan losses $ 253 $ 88 Specific allowance for loan losses (115 ) (15 ) Fair value of impaired loans $ 138 $ 73 |
Schedule of inputs used for the Level 3 fair value measurement | The unobservable inputs used for the Level 3 fair value measurements on a nonrecurring basis are as follows: (dollars in thousands) Fair Value Valuation Technique Unobservable Input Discount Ranges Weighted Average Discount March 31, 2020 Impaired loans $ 9,278 Discounted appraisals Collateral discounts and costs to sell 0% - 100% 25.27% Foreclosed assets $ 852 Discounted appraisals Collateral discounts and costs to sell N/A N/A December 31, 2019 Impaired loans $ 9,454 Discounted appraisals Collateral discounts and costs to sell 0% - 100% 25.80% Foreclosed assets $ 1,128 Discounted appraisals Collateral discounts and costs to sell 0% - 36% 2.60% |
Schedule of carrying amounts and estimated fair values of financial instruments | The carrying amounts and estimated fair values of financial instruments as of March 31, 2020 and December 31, 2019 , were as follows: (in thousands) Carrying Amount Fair Value Level 1 Level 2 Level 3 March 31, 2020 Financial assets: Cash and due from banks $ 31,858 $ 31,858 $ 31,858 $ — $ — Interest-bearing deposits in other banks 48,605 48,605 48,605 — — Securities AFS 401,944 401,944 — 401,944 — Equity securities 3,998 3,998 3,998 — — Nonmarketable equity securities 1,354 1,354 — 1,354 — Loans HFS 6,597 6,597 — 6,597 — Loans HFI, net of allowance 1,432,969 1,426,990 — — 1,426,990 Accrued interest receivable 5,240 5,240 — — 5,240 Financial liabilities: Deposits 1,727,782 1,732,572 — 1,732,572 — Accrued interest payable 2,307 2,307 — 2,307 — December 31, 2019 Financial assets: Cash and due from banks $ 25,937 $ 25,937 $ 25,937 $ — $ — Interest-bearing deposits in other banks 107,355 107,355 107,355 — — Securities AFS 335,573 335,573 — 335,573 — Equity securities 3,936 3,936 3,936 — — Nonmarketable equity securities 1,350 1,350 — 1,350 — Loans HFS 5,089 5,089 — 5,089 — Loans HFI, net of allowance 1,424,987 1,426,163 — — 1,426,163 Accrued interest receivable 5,251 5,251 — — 5,251 Financial liabilities: Deposits 1,721,120 1,721,286 — 1,721,286 — Accrued interest payable 2,222 2,222 — 2,222 — |
Regulatory Capital Requiremen_2
Regulatory Capital Requirements (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Banking and Thrift [Abstract] | |
Schedule of compliance with regulatory capital requirements under banking regulations | Capital amounts and ratios for Red River Bancshares, Inc. as of March 31, 2020 and December 31, 2019 , are presented in the following table: Actual (dollars in thousands) Amount Ratio March 31, 2020 Total Risk-Based Capital $ 271,234 18.18 % Tier I Risk-Based Capital $ 256,841 17.21 % Common Equity Tier I Capital $ 256,841 17.21 % Tier I Leverage Capital $ 256,841 12.89 % December 31, 2019 Total Risk-Based Capital $ 264,313 18.02 % Tier I Risk-Based Capital $ 250,376 17.07 % Common Equity Tier I Capital $ 250,376 17.07 % Tier I Leverage Capital $ 250,376 12.82 % Capital amounts and ratios for Red River Bank as of March 31, 2020 and December 31, 2019 , are presented in the following table: Regulatory Requirements Actual Minimum Minimum Plus CCB (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio March 31, 2020 Total Risk-Based Capital $ 245,488 16.45 % $ 119,363 8.00 % $ 156,664 10.50 % Tier I Risk-Based Capital $ 231,095 15.49 % $ 89,522 6.00 % $ 126,823 8.50 % Common Equity Tier I Capital $ 231,095 15.49 % $ 67,142 4.50 % $ 104,443 7.00 % Tier I Leverage Capital $ 231,095 11.60 % $ 79,681 4.00 % $ 79,681 4.00 % December 31, 2019 Total Risk-Based Capital $ 238,021 16.23 % $ 117,325 8.00 % $ 153,989 10.50 % Tier I Risk-Based Capital $ 224,084 15.28 % $ 87,994 6.00 % $ 124,658 8.50 % Common Equity Tier I Capital $ 224,084 15.28 % $ 65,995 4.50 % $ 102,660 7.00 % Tier I Leverage Capital $ 224,084 11.47 % $ 78,114 4.00 % $ 78,114 4.00 % |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share | The computations of basic and diluted earnings per common share for the Company were as follows: For the Three Months Ended March 31, (in thousands, except per share amounts) 2020 2019 Numerator: Net income - basic $ 6,745 $ 5,696 Net income - diluted $ 6,745 $ 5,696 Denominator: Weighted average shares outstanding - basic 7,313,279 6,632,482 Plus: Effect of Director Stock Compensation Program 454 574 Plus: Effect of stock options and restricted stock 37,676 34,973 Weighted average shares outstanding - diluted 7,351,409 6,668,029 Earnings per common share: Basic $ 0.92 $ 0.86 Diluted $ 0.92 $ 0.85 |
Securities - Narrative (Details
Securities - Narrative (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020USD ($)security | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($) | |
Investments, Debt and Equity Securities [Abstract] | |||
Purchases | $ 108,805 | $ 23,845 | |
Sales | 31,160 | 0 | |
Maturities, prepayments, and calls | 18,354 | $ 17,005 | |
Increase in fair value | $ 7,400 | ||
Number of positions | security | 42 | ||
Securities in a loss position as a percent of total AFS securities | 0.04% | ||
Securities pledged to secure public deposits | $ 105,300 | $ 89,800 |
Securities - Schedule of Amort
Securities - Schedule of Amortized Cost and Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 394,617 | $ 335,603 |
Gross Unrealized Gains | 7,474 | 1,453 |
Gross Unrealized Losses | (147) | (1,483) |
Fair Value | 401,944 | 335,573 |
Mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 297,445 | 236,572 |
Gross Unrealized Gains | 6,262 | 299 |
Gross Unrealized Losses | (22) | (1,200) |
Fair Value | 303,685 | 235,671 |
Municipal bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 90,726 | 91,929 |
Gross Unrealized Gains | 1,060 | 1,108 |
Gross Unrealized Losses | (125) | (279) |
Fair Value | 91,661 | 92,758 |
U.S. agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 6,446 | 7,102 |
Gross Unrealized Gains | 152 | 46 |
Gross Unrealized Losses | 0 | (4) |
Fair Value | $ 6,598 | $ 7,144 |
Securities - Schedule of AFS De
Securities - Schedule of AFS Debt Securities, By Maturity Date (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Amortized Cost | ||
Within one year | $ 3,639 | |
After one year but within five years | 23,194 | |
After five years but within ten years | 58,481 | |
After ten years | 309,303 | |
Amortized Cost | 394,617 | $ 335,603 |
Fair Value | ||
Within one year | 3,640 | |
After one year but within five years | 23,440 | |
After five years but within ten years | 59,591 | |
After ten years | 315,273 | |
Fair Value | $ 401,944 |
Securities - Schedule of Securi
Securities - Schedule of Securities With Gross Unrealized Losses (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Gross Unrealized Losses, Less than twelve months | $ (125) | $ (650) |
Fair Value, Less than twelve months | 18,195 | 129,171 |
Gross Unrealized Losses, Twelve months or more | (22) | (833) |
Fair Value, Twelve months or more | 3,292 | 79,748 |
Mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Unrealized Losses, Less than twelve months | (21) | (474) |
Fair Value, Less than twelve months | 2,896 | 109,416 |
Gross Unrealized Losses, Twelve months or more | (1) | (726) |
Fair Value, Twelve months or more | 1,888 | 70,425 |
Municipal bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Unrealized Losses, Less than twelve months | (104) | (172) |
Fair Value, Less than twelve months | 15,299 | 18,735 |
Gross Unrealized Losses, Twelve months or more | (21) | (107) |
Fair Value, Twelve months or more | 1,404 | 9,323 |
U.S. agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Unrealized Losses, Less than twelve months | 0 | (4) |
Fair Value, Less than twelve months | 0 | 1,020 |
Gross Unrealized Losses, Twelve months or more | 0 | 0 |
Fair Value, Twelve months or more | $ 0 | $ 0 |
Securities - Schedule of Procee
Securities - Schedule of Proceeds from Sale Of Securities AFS and Their Gains (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | ||
Proceeds | $ 31,160 | $ 0 |
Gross gain | 456 | 0 |
Gross loss | $ (73) | $ 0 |
Loans and Asset Quality - Total
Loans and Asset Quality - Total Loans Held for Investment by Category and Loans Held for Sale (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans held for investment | $ 1,447,362 | $ 1,438,924 |
Loans held for sale | 6,597 | 5,089 |
Commercial and industrial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans held for investment | 263,888 | 267,940 |
Tax-exempt | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans held for investment | 54,490 | 56,494 |
Consumer | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans held for investment | 27,031 | 30,019 |
Commercial real estate | Real estate | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans held for investment | 538,077 | 531,990 |
One-to-four family residential | Real estate | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans held for investment | 421,041 | 420,020 |
Construction and development | Real estate | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans held for investment | $ 142,835 | $ 132,461 |
Loans and Asset Quality - Sched
Loans and Asset Quality - Schedule of Allowance of Loan Losses By Category (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning Balance | $ 13,937 | $ 12,524 | $ 12,524 |
Provision for loan losses | 503 | 526 | 1,810 |
Loans Charged-off | (93) | (1,219) | |
Recoveries | 46 | 822 | |
Ending Balance | 14,393 | 13,937 | |
Commercial and industrial | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning Balance | 5,175 | 4,604 | 4,604 |
Provision for loan losses | (89) | 850 | |
Loans Charged-off | (2) | (864) | |
Recoveries | 5 | 585 | |
Ending Balance | 5,089 | 5,175 | |
Tax-exempt | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning Balance | 334 | 372 | 372 |
Provision for loan losses | 10 | (38) | |
Loans Charged-off | 0 | 0 | |
Recoveries | 0 | 0 | |
Ending Balance | 344 | 334 | |
Consumer | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning Balance | 440 | 370 | 370 |
Provision for loan losses | (50) | 237 | |
Loans Charged-off | (77) | (311) | |
Recoveries | 38 | 144 | |
Ending Balance | 351 | 440 | |
Commercial real estate | Real estate | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning Balance | 3,454 | 3,081 | 3,081 |
Provision for loan losses | 241 | 373 | |
Loans Charged-off | 0 | 0 | |
Recoveries | 0 | 0 | |
Ending Balance | 3,695 | 3,454 | |
One-to-four family residential | Real estate | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning Balance | 3,323 | 3,146 | 3,146 |
Provision for loan losses | 242 | 216 | |
Loans Charged-off | 0 | (44) | |
Recoveries | 3 | 5 | |
Ending Balance | 3,568 | 3,323 | |
Construction and development | Real estate | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning Balance | 1,211 | $ 951 | 951 |
Provision for loan losses | 149 | 172 | |
Loans Charged-off | (14) | 0 | |
Recoveries | 0 | 88 | |
Ending Balance | $ 1,346 | $ 1,211 |
Loans and Asset Quality - Sch_2
Loans and Asset Quality - Schedule of Allowance for Loan Losses and the Related Recorded Investment in Loans by Category (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Allowance for loan losses: | ||
Individually Evaluated for Impairment | $ 3,137 | $ 3,288 |
Collectively Evaluated for Impairment | 11,256 | 10,649 |
Loans and Leases Receivable, Allowance | 14,393 | 13,937 |
Loans: | ||
Individually Evaluated for Impairment | 12,415 | 12,742 |
Collectively Evaluated for Impairment | 1,434,947 | 1,426,182 |
Loans held for investment | 1,447,362 | 1,438,924 |
Real estate | Commercial real estate | ||
Allowance for loan losses: | ||
Individually Evaluated for Impairment | 250 | 260 |
Collectively Evaluated for Impairment | 3,445 | 3,194 |
Loans and Leases Receivable, Allowance | 3,695 | 3,454 |
Loans: | ||
Individually Evaluated for Impairment | 2,427 | 2,639 |
Collectively Evaluated for Impairment | 535,650 | 529,351 |
Loans held for investment | 538,077 | 531,990 |
Real estate | One-to-four family residential | ||
Allowance for loan losses: | ||
Individually Evaluated for Impairment | 40 | 31 |
Collectively Evaluated for Impairment | 3,528 | 3,292 |
Loans and Leases Receivable, Allowance | 3,568 | 3,323 |
Loans: | ||
Individually Evaluated for Impairment | 1,192 | 1,193 |
Collectively Evaluated for Impairment | 419,849 | 418,827 |
Loans held for investment | 421,041 | 420,020 |
Real estate | Construction and development | ||
Allowance for loan losses: | ||
Individually Evaluated for Impairment | 0 | 10 |
Collectively Evaluated for Impairment | 1,346 | 1,201 |
Loans and Leases Receivable, Allowance | 1,346 | 1,211 |
Loans: | ||
Individually Evaluated for Impairment | 0 | 38 |
Collectively Evaluated for Impairment | 142,835 | 132,423 |
Loans held for investment | 142,835 | 132,461 |
Commercial and industrial | ||
Allowance for loan losses: | ||
Individually Evaluated for Impairment | 2,785 | 2,916 |
Collectively Evaluated for Impairment | 2,304 | 2,259 |
Loans and Leases Receivable, Allowance | 5,089 | 5,175 |
Loans: | ||
Individually Evaluated for Impairment | 8,732 | 8,797 |
Collectively Evaluated for Impairment | 255,156 | 259,143 |
Loans held for investment | 263,888 | 267,940 |
Tax-exempt | ||
Allowance for loan losses: | ||
Individually Evaluated for Impairment | 0 | 0 |
Collectively Evaluated for Impairment | 344 | 334 |
Loans and Leases Receivable, Allowance | 344 | 334 |
Loans: | ||
Individually Evaluated for Impairment | 0 | 0 |
Collectively Evaluated for Impairment | 54,490 | 56,494 |
Loans held for investment | 54,490 | 56,494 |
Consumer | ||
Allowance for loan losses: | ||
Individually Evaluated for Impairment | 62 | 71 |
Collectively Evaluated for Impairment | 289 | 369 |
Loans and Leases Receivable, Allowance | 351 | 440 |
Loans: | ||
Individually Evaluated for Impairment | 64 | 75 |
Collectively Evaluated for Impairment | 26,967 | 29,944 |
Loans held for investment | 27,031 | 30,019 |
Acquired with Deteriorated Credit Quality | ||
Allowance for loan losses: | ||
Loans and Leases Receivable, Allowance | 0 | 0 |
Loans: | ||
Loans held for investment | 0 | 0 |
Acquired with Deteriorated Credit Quality | Real estate | Commercial real estate | ||
Allowance for loan losses: | ||
Loans and Leases Receivable, Allowance | 0 | 0 |
Loans: | ||
Loans held for investment | 0 | 0 |
Acquired with Deteriorated Credit Quality | Real estate | One-to-four family residential | ||
Allowance for loan losses: | ||
Loans and Leases Receivable, Allowance | 0 | 0 |
Loans: | ||
Loans held for investment | 0 | 0 |
Acquired with Deteriorated Credit Quality | Real estate | Construction and development | ||
Allowance for loan losses: | ||
Loans and Leases Receivable, Allowance | 0 | 0 |
Loans: | ||
Loans held for investment | 0 | 0 |
Acquired with Deteriorated Credit Quality | Commercial and industrial | ||
Allowance for loan losses: | ||
Loans and Leases Receivable, Allowance | 0 | 0 |
Loans: | ||
Loans held for investment | 0 | 0 |
Acquired with Deteriorated Credit Quality | Tax-exempt | ||
Allowance for loan losses: | ||
Loans and Leases Receivable, Allowance | 0 | 0 |
Loans: | ||
Loans held for investment | 0 | 0 |
Acquired with Deteriorated Credit Quality | Consumer | ||
Allowance for loan losses: | ||
Loans and Leases Receivable, Allowance | 0 | 0 |
Loans: | ||
Loans held for investment | $ 0 | $ 0 |
Loans and Asset Quality - Summa
Loans and Asset Quality - Summary of Current, Past Due, and Nonaccrual Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Current | $ 1,439,781 | $ 1,433,258 |
Nonaccrual | 5,234 | 5,319 |
Loans held for investment | 1,447,362 | 1,438,924 |
Real estate | Commercial real estate | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Current | 535,883 | 530,712 |
Nonaccrual | 1,262 | 1,278 |
Loans held for investment | 538,077 | 531,990 |
Real estate | One-to-four family residential | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Current | 419,392 | 419,229 |
Nonaccrual | 594 | 607 |
Loans held for investment | 421,041 | 420,020 |
Real estate | Construction and development | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Current | 142,573 | 132,423 |
Nonaccrual | 0 | 38 |
Loans held for investment | 142,835 | 132,461 |
Commercial and industrial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Current | 260,465 | 264,427 |
Nonaccrual | 3,360 | 3,370 |
Loans held for investment | 263,888 | 267,940 |
Tax-exempt | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Current | 54,490 | 56,494 |
Nonaccrual | 0 | 0 |
Loans held for investment | 54,490 | 56,494 |
Consumer | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Current | 26,978 | 29,973 |
Nonaccrual | 18 | 26 |
Loans held for investment | 27,031 | 30,019 |
30-89 Days Past Due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Past Due | 2,346 | 347 |
30-89 Days Past Due | Real estate | Commercial real estate | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Past Due | 932 | 0 |
30-89 Days Past Due | Real estate | One-to-four family residential | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Past Due | 1,055 | 184 |
30-89 Days Past Due | Real estate | Construction and development | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Past Due | 262 | 0 |
30-89 Days Past Due | Commercial and industrial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Past Due | 63 | 143 |
30-89 Days Past Due | Tax-exempt | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Past Due | 0 | 0 |
30-89 Days Past Due | Consumer | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Past Due | 34 | 20 |
90 Days or More Past Due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Past Due | 1 | 0 |
90 Days or More Past Due | Real estate | Commercial real estate | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Past Due | 0 | 0 |
90 Days or More Past Due | Real estate | One-to-four family residential | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Past Due | 0 | 0 |
90 Days or More Past Due | Real estate | Construction and development | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Past Due | 0 | 0 |
90 Days or More Past Due | Commercial and industrial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Past Due | 0 | 0 |
90 Days or More Past Due | Tax-exempt | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Past Due | 0 | 0 |
90 Days or More Past Due | Consumer | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Past Due | $ 1 | $ 0 |
Loans and Asset Quality - Sch_3
Loans and Asset Quality - Schedule of Loans Impaired (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Unpaid Principal Balance | ||
With no related allowance recorded: | $ 4,254 | $ 4,407 |
With allowance recorded: | 9,982 | 10,150 |
Total impaired loans | 14,236 | 14,557 |
Recorded Investment | ||
With no related allowance recorded: | 3,838 | 3,997 |
With allowance recorded: | 8,577 | 8,745 |
Total impaired loans | 12,415 | 12,742 |
Related Allowance | 3,137 | 3,288 |
Average Recorded Investment | ||
With no related allowance recorded: | 3,917 | 7,611 |
With allowance recorded: | 8,662 | 9,326 |
Total impaired loans | 12,579 | 16,937 |
Commercial and industrial | ||
Unpaid Principal Balance | ||
With no related allowance recorded: | 1,759 | 1,805 |
With allowance recorded: | 8,526 | 8,544 |
Recorded Investment | ||
With no related allowance recorded: | 1,426 | 1,474 |
With allowance recorded: | 7,306 | 7,323 |
Related Allowance | 2,785 | 2,916 |
Average Recorded Investment | ||
With no related allowance recorded: | 1,450 | 3,685 |
With allowance recorded: | 7,314 | 7,746 |
Tax-exempt | ||
Unpaid Principal Balance | ||
With no related allowance recorded: | 0 | 0 |
With allowance recorded: | 0 | 0 |
Recorded Investment | ||
With no related allowance recorded: | 0 | 0 |
With allowance recorded: | 0 | 0 |
Related Allowance | 0 | 0 |
Average Recorded Investment | ||
With no related allowance recorded: | 0 | 0 |
With allowance recorded: | 0 | 0 |
Consumer | ||
Unpaid Principal Balance | ||
With no related allowance recorded: | 2 | 2 |
With allowance recorded: | 66 | 76 |
Recorded Investment | ||
With no related allowance recorded: | 2 | 2 |
With allowance recorded: | 62 | 73 |
Related Allowance | 62 | 71 |
Average Recorded Investment | ||
With no related allowance recorded: | 2 | 9 |
With allowance recorded: | 68 | 76 |
Commercial real estate | Real estate | ||
Unpaid Principal Balance | ||
With no related allowance recorded: | 1,359 | 1,560 |
With allowance recorded: | 1,269 | 1,263 |
Recorded Investment | ||
With no related allowance recorded: | 1,334 | 1,537 |
With allowance recorded: | 1,093 | 1,102 |
Related Allowance | 250 | 260 |
Average Recorded Investment | ||
With no related allowance recorded: | 1,435 | 2,647 |
With allowance recorded: | 1,098 | 1,076 |
One-to-four family residential | Real estate | ||
Unpaid Principal Balance | ||
With no related allowance recorded: | 1,134 | 1,040 |
With allowance recorded: | 121 | 216 |
Recorded Investment | ||
With no related allowance recorded: | 1,076 | 984 |
With allowance recorded: | 116 | 209 |
Related Allowance | 40 | 31 |
Average Recorded Investment | ||
With no related allowance recorded: | 1,030 | 1,194 |
With allowance recorded: | 163 | 339 |
Construction and development | Real estate | ||
Unpaid Principal Balance | ||
With no related allowance recorded: | 0 | 0 |
With allowance recorded: | 0 | 51 |
Recorded Investment | ||
With no related allowance recorded: | 0 | 0 |
With allowance recorded: | 0 | 38 |
Related Allowance | 0 | 10 |
Average Recorded Investment | ||
With no related allowance recorded: | 0 | 76 |
With allowance recorded: | $ 19 | $ 89 |
Loans and Asset Quality - Narra
Loans and Asset Quality - Narrative (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Loans and Leases Receivable Disclosure [Line Items] | ||||
Interest income on impaired loans | $ 91,000 | $ 172,000 | ||
Increase for allowance for loan losses | 14,393,000 | $ 13,937,000 | $ 12,524,000 | |
Defaults on loans | 0 | 0 | ||
Short-term loan modification of HFI investments not considered TDR | 113,400,000 | |||
Unfunded Loan Commitment | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Other commitments | 270,500,000 | 257,000,000 | ||
Standby Letters of Credit | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Other commitments | 10,100,000 | $ 11,100,000 | ||
TDRs | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Increase for allowance for loan losses | $ 0 | $ 0 |
Loans and Asset Quality - Sum_2
Loans and Asset Quality - Summary of Current, Past Due, and Nonaccrual TDR Loans (Details) $ in Thousands | Mar. 31, 2020USD ($)loan | Dec. 31, 2019USD ($)loan | Mar. 31, 2020USD ($)loan | Mar. 31, 2019loan |
TDR | ||||
Current | $ 1,451 | $ 1,695 | $ 1,451 | |
Nonaccrual | 3,128 | 3,185 | 3,128 | |
Total TDRs | $ 4,579 | $ 4,880 | $ 4,579 | |
Number of TDR loans | ||||
Current | loan | 9 | 12 | ||
Nonaccrual | loan | 5 | 6 | ||
Total TDRs | loan | 14 | 18 | 0 | 1 |
30-89 Days Past Due | ||||
TDR | ||||
Past Due | $ 0 | $ 0 | $ 0 | |
Number of TDR loans | ||||
Past Due | loan | 0 | 0 | ||
90 Days or More Past Due | ||||
TDR | ||||
Past Due | $ 0 | $ 0 | 0 | |
Number of TDR loans | ||||
Past Due | loan | 0 | 0 | ||
Commercial and industrial | ||||
TDR | ||||
Current | $ 0 | $ 36 | 0 | |
Nonaccrual | 1,866 | 1,869 | 1,866 | |
Total TDRs | 1,866 | 1,905 | $ 1,866 | |
Number of TDR loans | ||||
Total TDRs | loan | 0 | 0 | ||
Commercial and industrial | 30-89 Days Past Due | ||||
TDR | ||||
Past Due | 0 | 0 | $ 0 | |
Commercial and industrial | 90 Days or More Past Due | ||||
TDR | ||||
Past Due | 0 | 0 | 0 | |
Tax-exempt | ||||
TDR | ||||
Current | 0 | 0 | 0 | |
Nonaccrual | 0 | 0 | 0 | |
Total TDRs | 0 | 0 | $ 0 | |
Number of TDR loans | ||||
Total TDRs | loan | 0 | 0 | ||
Tax-exempt | 30-89 Days Past Due | ||||
TDR | ||||
Past Due | 0 | 0 | $ 0 | |
Tax-exempt | 90 Days or More Past Due | ||||
TDR | ||||
Past Due | 0 | 0 | 0 | |
Consumer | ||||
TDR | ||||
Current | 43 | 46 | 43 | |
Nonaccrual | 0 | 0 | 0 | |
Total TDRs | 43 | 46 | $ 43 | |
Number of TDR loans | ||||
Total TDRs | loan | 0 | 0 | ||
Consumer | 30-89 Days Past Due | ||||
TDR | ||||
Past Due | 0 | 0 | $ 0 | |
Consumer | 90 Days or More Past Due | ||||
TDR | ||||
Past Due | 0 | 0 | 0 | |
Commercial real estate | Real estate | ||||
TDR | ||||
Current | 1,159 | 1,361 | 1,159 | |
Nonaccrual | 1,262 | 1,278 | 1,262 | |
Total TDRs | 2,421 | 2,639 | $ 2,421 | |
Number of TDR loans | ||||
Total TDRs | loan | 0 | 1 | ||
Commercial real estate | Real estate | 30-89 Days Past Due | ||||
TDR | ||||
Past Due | 0 | 0 | $ 0 | |
Commercial real estate | Real estate | 90 Days or More Past Due | ||||
TDR | ||||
Past Due | 0 | 0 | 0 | |
One-to-four family residential | Real estate | ||||
TDR | ||||
Current | 249 | 252 | 249 | |
Nonaccrual | 0 | 0 | 0 | |
Total TDRs | 249 | 252 | $ 249 | |
Number of TDR loans | ||||
Total TDRs | loan | 0 | 0 | ||
One-to-four family residential | Real estate | 30-89 Days Past Due | ||||
TDR | ||||
Past Due | 0 | 0 | $ 0 | |
One-to-four family residential | Real estate | 90 Days or More Past Due | ||||
TDR | ||||
Past Due | 0 | 0 | 0 | |
Construction and development | Real estate | ||||
TDR | ||||
Current | 0 | 0 | 0 | |
Nonaccrual | 0 | 38 | 0 | |
Total TDRs | 0 | 38 | $ 0 | |
Number of TDR loans | ||||
Total TDRs | loan | 0 | 0 | ||
Construction and development | Real estate | 30-89 Days Past Due | ||||
TDR | ||||
Past Due | 0 | 0 | $ 0 | |
Construction and development | Real estate | 90 Days or More Past Due | ||||
TDR | ||||
Past Due | $ 0 | $ 0 | $ 0 |
Loans and Asset Quality - Sum_3
Loans and Asset Quality - Summary of Loans Modified as TDRs That Occurred During Period (Details) $ in Thousands | Mar. 31, 2020loan | Dec. 31, 2019loan | Mar. 31, 2020USD ($)loan | Mar. 31, 2019USD ($)loan |
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loan Count | loan | 14 | 18 | 0 | 1 |
Pre Modification | $ 0 | $ 166 | ||
Post Modification | $ 0 | $ 166 | ||
Commercial and industrial | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loan Count | loan | 0 | 0 | ||
Pre Modification | $ 0 | $ 0 | ||
Post Modification | $ 0 | $ 0 | ||
Tax-exempt | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loan Count | loan | 0 | 0 | ||
Pre Modification | $ 0 | $ 0 | ||
Post Modification | $ 0 | $ 0 | ||
Consumer | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loan Count | loan | 0 | 0 | ||
Pre Modification | $ 0 | $ 0 | ||
Post Modification | $ 0 | $ 0 | ||
Commercial real estate | Real estate | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loan Count | loan | 0 | 1 | ||
Pre Modification | $ 0 | $ 166 | ||
Post Modification | $ 0 | $ 166 | ||
One-to-four family residential | Real estate | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loan Count | loan | 0 | 0 | ||
Pre Modification | $ 0 | $ 0 | ||
Post Modification | $ 0 | $ 0 | ||
Construction and development | Real estate | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loan Count | loan | 0 | 0 | ||
Pre Modification | $ 0 | $ 0 | ||
Post Modification | $ 0 | $ 0 |
Loans and Asset Quality - Sum_4
Loans and Asset Quality - Summary of Loans by Risk Rating (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans held for investment | $ 1,447,362 | $ 1,438,924 |
Pass | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans held for investment | 1,409,632 | 1,397,747 |
Special Mention | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans held for investment | 24,131 | 28,182 |
Substandard | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans held for investment | 13,599 | 12,995 |
Doubtful | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans held for investment | 0 | 0 |
Loss | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans held for investment | 0 | 0 |
Commercial and industrial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans held for investment | 263,888 | 267,940 |
Commercial and industrial | Pass | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans held for investment | 245,418 | 247,382 |
Commercial and industrial | Special Mention | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans held for investment | 9,368 | 11,473 |
Commercial and industrial | Substandard | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans held for investment | 9,102 | 9,085 |
Commercial and industrial | Doubtful | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans held for investment | 0 | 0 |
Commercial and industrial | Loss | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans held for investment | 0 | 0 |
Tax-exempt | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans held for investment | 54,490 | 56,494 |
Tax-exempt | Pass | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans held for investment | 54,490 | 56,494 |
Tax-exempt | Special Mention | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans held for investment | 0 | 0 |
Tax-exempt | Substandard | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans held for investment | 0 | 0 |
Tax-exempt | Doubtful | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans held for investment | 0 | 0 |
Tax-exempt | Loss | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans held for investment | 0 | 0 |
Consumer | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans held for investment | 27,031 | 30,019 |
Consumer | Pass | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans held for investment | 26,897 | 29,876 |
Consumer | Special Mention | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans held for investment | 5 | 5 |
Consumer | Substandard | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans held for investment | 129 | 138 |
Consumer | Doubtful | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans held for investment | 0 | 0 |
Consumer | Loss | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans held for investment | 0 | 0 |
Commercial real estate | Real estate | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans held for investment | 538,077 | 531,990 |
Commercial real estate | Real estate | Pass | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans held for investment | 523,760 | 515,926 |
Commercial real estate | Real estate | Special Mention | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans held for investment | 12,148 | 14,118 |
Commercial real estate | Real estate | Substandard | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans held for investment | 2,169 | 1,946 |
Commercial real estate | Real estate | Doubtful | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans held for investment | 0 | 0 |
Commercial real estate | Real estate | Loss | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans held for investment | 0 | 0 |
One-to-four family residential | Real estate | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans held for investment | 421,041 | 420,020 |
One-to-four family residential | Real estate | Pass | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans held for investment | 417,569 | 416,884 |
One-to-four family residential | Real estate | Special Mention | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans held for investment | 2,052 | 2,021 |
One-to-four family residential | Real estate | Substandard | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans held for investment | 1,420 | 1,115 |
One-to-four family residential | Real estate | Doubtful | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans held for investment | 0 | 0 |
One-to-four family residential | Real estate | Loss | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans held for investment | 0 | 0 |
Construction and development | Real estate | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans held for investment | 142,835 | 132,461 |
Construction and development | Real estate | Pass | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans held for investment | 141,498 | 131,185 |
Construction and development | Real estate | Special Mention | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans held for investment | 558 | 565 |
Construction and development | Real estate | Substandard | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans held for investment | 779 | 711 |
Construction and development | Real estate | Doubtful | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans held for investment | 0 | 0 |
Construction and development | Real estate | Loss | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans held for investment | $ 0 | $ 0 |
Leases (Details)
Leases (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020USD ($)contract | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | |||
Right-of-use assets | $ 4,454 | $ 4,553 | |
Lease liabilities | 4,511 | $ 4,603 | |
Lease expense | 137 | $ 137 | |
Cash paid for amounts included in measurement of lease liabilities for operating leases | $ 130 | $ 125 | |
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Renewal term | 3 years | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Renewal term | 5 years | ||
Land | |||
Lessee, Lease, Description [Line Items] | |||
Number of contracts | contract | 6 |
Leases - Operating Lease Inform
Leases - Operating Lease Information (Details) | Mar. 31, 2020 |
Leases [Abstract] | |
Weighted average remaining operating lease term | 10 years |
Weighted average operating lease discount rate | 3.40% |
Leases - Lease Maturity (Detail
Leases - Lease Maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
9 months remaining in 2020 | $ 390 | |
2021 | 529 | |
2022 | 537 | |
2023 | 539 | |
2024 | 539 | |
Thereafter | 2,815 | |
Total lease payments | 5,349 | |
Less: Imputed interest | (838) | |
Present value of lease liabilities | $ 4,511 | $ 4,603 |
Fair Value - Assets Measured on
Fair Value - Assets Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | $ 401,944 | $ 335,573 |
Equity securities | 3,998 | 3,936 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans HFS | 0 | 0 |
Securities AFS | 0 | 0 |
Equity securities | 3,998 | 3,936 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans HFS | 6,597 | 5,089 |
Securities AFS | 401,944 | 335,573 |
Equity securities | 0 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans HFS | 0 | 0 |
Securities AFS | 0 | 0 |
Equity securities | 0 | 0 |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans HFS | 6,597 | 5,089 |
Equity securities | 3,998 | 3,936 |
Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans HFS | 0 | 0 |
Equity securities | 3,998 | 3,936 |
Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans HFS | 6,597 | 5,089 |
Equity securities | 0 | 0 |
Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans HFS | 0 | 0 |
Equity securities | 0 | 0 |
Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 303,685 | 235,671 |
Mortgage-backed securities | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 303,685 | 235,671 |
Mortgage-backed securities | Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 0 | 0 |
Mortgage-backed securities | Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 303,685 | 235,671 |
Mortgage-backed securities | Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 0 | 0 |
U.S. agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 6,598 | 7,144 |
U.S. agency securities | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 6,598 | 7,144 |
U.S. agency securities | Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 0 | 0 |
U.S. agency securities | Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 6,598 | 7,144 |
U.S. agency securities | Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 0 | 0 |
Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 91,661 | 92,758 |
Municipal bonds | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 91,661 | 92,758 |
Municipal bonds | Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 0 | 0 |
Municipal bonds | Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 91,661 | 92,758 |
Municipal bonds | Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | $ 0 | $ 0 |
Fair Value - Assets Measured _2
Fair Value - Assets Measured on Nonrecurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Specific allowance for loan losses | $ (14,393) | $ (13,937) | $ (12,524) |
Nonrecurring | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of impaired loans | 9,278 | 9,454 | |
Foreclosed assets remeasured at initial recognition: | |||
Fair value of foreclosed assets | 852 | 1,128 | |
Remeasured Loans | Nonrecurring | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Carrying value of impaired loans before allowance for loan losses | 253 | 88 | |
Specific allowance for loan losses | (115) | (15) | |
Fair value of impaired loans | 138 | 73 | |
Foreclosed assets remeasured at initial recognition: | |||
Carrying value of foreclosed assets prior to remeasurement | 24 | 969 | |
Charge-offs | 0 | (29) | |
Fair value of foreclosed assets | $ 24 | $ 940 |
Fair Value - Unobservable Input
Fair Value - Unobservable Inputs Used for the Level 3 (Details) $ in Thousands | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Minimum | Discounted appraisals | Collateral discounts and costs to sell | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans | 0 | |
Foreclosed assets | 0 | |
Maximum | Discounted appraisals | Collateral discounts and costs to sell | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans | 1 | |
Foreclosed assets | 0.36 | |
Weighted Average Discount | Discounted appraisals | Collateral discounts and costs to sell | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans | 0.2527 | 0.2580 |
Foreclosed assets | 0.0260 | |
Nonrecurring | Level 3 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans | $ 9,278 | $ 9,454 |
Foreclosed assets | $ 852 | $ 1,128 |
Fair Value - Carrying Amounts a
Fair Value - Carrying Amounts and Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Financial assets: | ||
Securities AFS | $ 401,944 | $ 335,573 |
Equity securities | 3,998 | 3,936 |
Nonmarketable equity securities | 1,354 | 1,350 |
Level 1 | ||
Financial assets: | ||
Cash and due from banks | 31,858 | 25,937 |
Interest-bearing deposits in other banks | 48,605 | 107,355 |
Securities AFS | 0 | 0 |
Equity securities | 3,998 | 3,936 |
Nonmarketable equity securities | 0 | 0 |
Loans HFS | 0 | 0 |
Loans HFI, net of allowance | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Financial liabilities: | ||
Deposits | 0 | 0 |
Accrued interest payable | 0 | 0 |
Level 2 | ||
Financial assets: | ||
Cash and due from banks | 0 | 0 |
Interest-bearing deposits in other banks | 0 | 0 |
Securities AFS | 401,944 | 335,573 |
Equity securities | 0 | 0 |
Nonmarketable equity securities | 1,354 | 1,350 |
Loans HFS | 6,597 | 5,089 |
Loans HFI, net of allowance | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Financial liabilities: | ||
Deposits | 1,732,572 | 1,721,286 |
Accrued interest payable | 2,307 | 2,222 |
Level 3 | ||
Financial assets: | ||
Cash and due from banks | 0 | 0 |
Interest-bearing deposits in other banks | 0 | 0 |
Securities AFS | 0 | 0 |
Equity securities | 0 | 0 |
Nonmarketable equity securities | 0 | 0 |
Loans HFS | 0 | 0 |
Loans HFI, net of allowance | 1,426,990 | 1,426,163 |
Accrued interest receivable | 5,240 | 5,251 |
Financial liabilities: | ||
Deposits | 0 | 0 |
Accrued interest payable | 0 | 0 |
Carrying Amount | ||
Financial assets: | ||
Cash and due from banks | 31,858 | 25,937 |
Interest-bearing deposits in other banks | 48,605 | 107,355 |
Securities AFS | 401,944 | 335,573 |
Equity securities | 3,998 | 3,936 |
Nonmarketable equity securities | 1,354 | 1,350 |
Loans HFS | 6,597 | 5,089 |
Loans HFI, net of allowance | 1,432,969 | 1,424,987 |
Accrued interest receivable | 5,240 | 5,251 |
Financial liabilities: | ||
Deposits | 1,727,782 | 1,721,120 |
Accrued interest payable | 2,307 | 2,222 |
Fair Value | ||
Financial assets: | ||
Cash and due from banks | 31,858 | 25,937 |
Interest-bearing deposits in other banks | 48,605 | 107,355 |
Securities AFS | 401,944 | 335,573 |
Equity securities | 3,998 | 3,936 |
Nonmarketable equity securities | 1,354 | 1,350 |
Loans HFS | 6,597 | 5,089 |
Loans HFI, net of allowance | 1,426,990 | 1,426,163 |
Accrued interest receivable | 5,240 | 5,251 |
Financial liabilities: | ||
Deposits | 1,732,572 | 1,721,286 |
Accrued interest payable | $ 2,307 | $ 2,222 |
Regulatory Capital Requiremen_3
Regulatory Capital Requirements - Schedule of Regulatory Requirements (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Red River Bank | ||
Total Risk-Based Capital | ||
Actual Amount | $ 245,488 | $ 238,021 |
Actual Ratio | 16.45% | 16.23% |
Regulatory Requirements, Minimum To Be Adequately Capitalized, Amount | $ 119,363 | $ 117,325 |
Regulatory Requirements, Minimum To Be Adequately Capitalized, Ratio | 8.00% | 8.00% |
Regulatory Requirements, Under Prompt Corrective Action Provisions, Amount | $ 156,664 | $ 153,989 |
Regulatory Requirements, Under Prompt Corrective Action Provisions, Ratio | 10.50% | 10.50% |
Tier I Risk-Based Capital | ||
Actual Amount | $ 231,095 | $ 224,084 |
Actual Ratio | 15.49% | 15.28% |
Regulatory Requirements, Minimum To Be Adequately Capitalized, Amount | $ 89,522 | $ 87,994 |
Regulatory Requirements, Minimum To Be Adequately Capitalized, Ratio | 6.00% | 6.00% |
Regulatory Requirements, Under Prompt Corrective Action Provisions, Amount | $ 126,823 | $ 124,658 |
Regulatory Requirements, Under Prompt Corrective Action Provisions, Ratio | 8.50% | 8.50% |
Common Equity Tier I Capital | ||
Actual Amount | $ 231,095 | $ 224,084 |
Actual Ratio | 15.49% | 15.28% |
Regulatory Requirements, Minimum To Be Adequately Capitalized, Amount | $ 67,142 | $ 65,995 |
Regulatory Requirements, Minimum To Be Adequately Capitalized, Ratio | 4.50% | 4.50% |
Regulatory Requirements, Under Prompt Corrective Action Provisions, Amount | $ 104,443 | $ 102,660 |
Regulatory Requirements, Under Prompt Corrective Action Provisions, Ratio | 7.00% | 7.00% |
Tier I Leverage Capital | ||
Actual Amount | $ 231,095 | $ 224,084 |
Actual Ratio | 11.60% | 11.47% |
Regulatory Requirements, Minimum To Be Adequately Capitalized, Amount | $ 79,681 | $ 78,114 |
Regulatory Requirements, Minimum To Be Adequately Capitalized, Ratio | 4.00% | 4.00% |
Regulatory Requirements, Under Prompt Corrective Action Provisions, Amount | $ 79,681 | $ 78,114 |
Regulatory Requirements, Under Prompt Corrective Action Provisions, Ratio | 4.00% | 4.00% |
Red River Bancshares, Inc. | ||
Total Risk-Based Capital | ||
Actual Amount | $ 271,234 | $ 264,313 |
Actual Ratio | 18.18% | 18.02% |
Tier I Risk-Based Capital | ||
Actual Amount | $ 256,841 | $ 250,376 |
Actual Ratio | 17.21% | 17.07% |
Common Equity Tier I Capital | ||
Actual Amount | $ 256,841 | $ 250,376 |
Actual Ratio | 17.21% | 17.07% |
Tier I Leverage Capital | ||
Actual Amount | $ 256,841 | $ 250,376 |
Actual Ratio | 12.89% | 12.82% |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Numerator: | |||
Net income - basic | $ 6,745 | $ 5,696 | |
Net income - diluted | $ 6,745 | $ 5,696 | |
Denominator: | |||
Weighted average shares outstanding, basic (in shares) | 7,313,279 | 6,632,482 | |
Weighted average shares outstanding, diluted (in shares) | 7,351,409 | 6,668,029 | |
Earnings per common share: | |||
Basic (in dollars per share) | [1] | $ 0.92 | $ 0.86 |
Diluted (in dollars per share) | [1] | $ 0.92 | $ 0.85 |
Plus: Effect of Director Stock Compensation Program | |||
Denominator: | |||
Effect of dilutive securities (in shares) | 454 | 574 | |
Plus: Effect of stock options and restricted stock | |||
Denominator: | |||
Effect of dilutive securities (in shares) | 37,676 | 34,973 | |
[1] | (in thousands, except per share data) For the Three Months Ended March 31, 2020 2019 INTEREST AND DIVIDEND INCOME Interest and fees on loans $ 16,466 $ 15,504 Interest on securities 1,791 1,763 Interest on federal funds sold 113 212 Interest on deposits in other banks 206 416 Dividends on stock 4 9 Total Interest and Dividend Income 18,580 17,904 INTEREST EXPENSE Interest on deposits 2,492 2,296 Interest on junior subordinated debentures — 156 Total Interest Expense 2,492 2,452 Net Interest Income 16,088 15,452 Provision for loan losses 503 526 Net Interest Income After Provision for Loan Losses 15,585 14,926 NONINTEREST INCOME Service charges on deposit accounts 1,228 1,026 Debit card income, net 755 695 Mortgage loan income 889 514 Brokerage income 744 365 Loan and deposit income 300 346 Bank-owned life insurance income 142 133 Gain (Loss) on equity securities 63 48 Gain (Loss) on sale of securities 383 — SBIC income 178 120 Other income 49 49 Total Noninterest Income 4,731 3,296 OPERATING EXPENSES Personnel expenses 7,348 6,640 Occupancy and equipment expenses 1,185 1,175 Technology expenses 586 544 Advertising 261 209 Other business development expenses 295 282 Data processing expense 450 459 Other taxes 437 353 Loan and deposit expenses 246 223 Legal and professional expenses 495 319 Regulatory assessment expenses 26 142 Other operating expenses 621 812 Total Operating Expenses 11,950 11,158 Income Before Income Tax Expense 8,366 7,064 Income tax expense 1,621 1,368 Net Income $ 6,745 $ 5,696 EARNINGS PER SHARE Basic $ 0.92 $ 0.86 Diluted $ 0.92 $ 0.85 |
Subsequent Events (Details)
Subsequent Events (Details) - Line of Credit - Subsequent Event $ in Millions | Apr. 15, 2020USD ($) |
Subsequent Event [Line Items] | |
Proceeds from borrowing | $ 50 |
Debt instrument, term | 90 days |
Interest rate | 0.35% |