Investor Presentation As of March 31, 2021 Nasdaq: RRBI Made in Louisiana. Made for Louisiana. Exhibit 99.2
2 COMPANY OVERIEW Forward‐Looking Statements and Non‐GAAP Information This presentation contains forward‐looking statements that are based on various facts and derived utilizing numerous important assumptions and are subject to known and unknown risks, uncertainties, and other factors that may cause Red River Bancshares, Inc.’s (the “Company,” “RRBI,” “Red River,” “we,” or “our”) actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by such forward‐looking statements. Forward‐looking statements include the information concerning our future financial performance, business and growth strategy, projected plans and objectives, as well as projections of macroeconomic and industry trends, which are inherently unreliable due to the multiple factors that impact economic trends. Words or phrases such as “may,” “should,” “could,” “predict,” “potential,” “believe,” “will likely result,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “projection,” “would,” and “outlook,” or the negative version of those words, or such other comparable words or phrases are intended to identify forward‐looking statements but are not the exclusive means of identifying such statements. These forward‐looking statements are not historical facts, and are based on current expectations, estimates, and projections about the Company’s industry, management’s beliefs, and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond the Company’s control. Accordingly, you are cautioned that any such forward‐looking statements are not guarantees of future performance and are subject to certain risks, assumptions, and uncertainties that are difficult to predict. Although the Company believes that the expectations reflected in these forward‐looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward‐looking statements. Unless required by law, the Company also disclaims any obligation to update any forward‐looking statements. Interested parties should not place undue reliance on any forward‐looking statement and should carefully consider the risks and other factors that the Company faces. For a discussion of these risks and other factors, please see the sections titled “Cautionary Note Regarding Forward‐Looking Statements” and “Risk Factors” in the Company’s most recent Annual Report on Form 10‐K and any subsequent quarterly reports on Form 10‐Q, and in other documents that we file with the Securities and Exchange Commission (“SEC”) from time to time. This presentation includes industry and trade association data, forecasts, and information that we have prepared based, in part, upon data, forecasts, and information obtained from independent trade associations, industry publications and surveys, government agencies, and other information publicly available to us, which information may be specific to particular markets or geographic locations. Some data is also based on our good faith estimates, which are derived from management’s knowledge of the industry and independent sources. Industry publications, surveys, and forecasts generally state that the information contained therein has been obtained from sources believed to be reliable. Statements as to our market position are based on market data currently available to us. Although we believe these sources are reliable, we have not independently verified the information. While we are not aware of any misstatements regarding our industry data presented herein, our estimates involve risks and uncertainties and are subject to change based on various factors. Similarly, we believe our internal research is reliable, even though such research has not been verified by any independent sources. This presentation contains non‐GAAP financial measures, including tangible book value per share, tangible common equity to tangible assets, and PPP‐adjusted metrics. The non‐GAAP financial measures that we discuss in this presentation should not be considered in isolation or as a substitute for the most directly comparable or other financial measures calculated in accordance with GAAP. A reconciliation of the non‐GAAP financial measures used in this presentation to the most directly comparable GAAP measures is provided in the Appendix to this presentation.
3 Company Overview Red River Bancshares, Inc. was established in 1998 in Alexandria, Louisiana; Red River Bank opened its doors in January 1999 Completed IPO in May 2019 Nasdaq: RRBI On Russell 2000 Index Third largest Louisiana headquartered bank based on assets as of December 31, 2020 Relationship‐based approach has yielded a diverse loan portfolio and core deposits During 2020 and 1Q21, provided full banking services amid ongoing pandemic Stock buyback plan in place Consistent quarterly dividend Participating in JAM FINTOP Banktech, L.P. to strategically develop partnerships to enhance digital offerings Financial Highlights As of and for the Three Months Ended March 31, 2021 (dollars in thousands, except per share data) ¹Non‐GAAP measure. See “Forward‐Looking Statements and Non‐GAAP Information” on slide 2 and “Non‐GAAP Reconciliation” slides in the Appendix for additional information. Assets $2,820,672 Loans Held for Investment (HFI) $1,602,086 Deposits $2,515,275 Stockholders' Equity $284,911 Tangible Common Equity¹ $283,365 Stockholders' Equity / Assets 10.10% Tangible Common Equity / Tangible Assets¹ 10.05% Leverage Ratio 10.43% Total Risk‐Based Capital Ratio 18.87% Nonperforming Assets / Assets 0.13% Net Charge‐offs / Average Loans 0.00% Allowance for Loan Losses to Loans HFI 1.21% Net Income $8,065 Return on Average Assets 1.20% Return on Average Equity 11.36% Net Interest Margin Fully Tax Equivalent (FTE) 2.76% Efficiency Ratio 54.02% Earnings Per Share, Diluted $1.10 Book Value Per Share $38.99 Tangible Book Value Per Share¹ $38.78 Cash Dividends Per Share $0.07
4 Community Bank Focused on Louisiana
5 Company Strengths Consistent financial results and steady growth Robust deposit and balance sheet growth in 2020 and 1Q21 Conservative credit culture with solid asset quality Stable, low cost core deposit base Management and directors own 21.58% of outstanding stock as of March 31, 2021, and are aligned with shareholder interest of building share value Continuity of leadership ‐ four of our top executives are part of the founding management team Proven ability to grow organically Focused on Louisiana markets that offer growth opportunity and loan diversification Disciplined acquisition strategy – successfully integrated two acquisitions and positioned to capitalize on future opportunities Strong capital and liquidity positions
6 Recent Expansion Highlights Purchased existing banking center buildings then rebranded as Red River Bank. Cost effective and fast expansion method 4Q19 – Purchased an existing banking center location in Sulphur, Louisiana (Southwest market) 1Q20 ‐ Opened a new banking center in Sulphur, Louisiana 3Q20 – Entered Lafayette, Louisiana (Acadiana market). Hired an experienced banker as Market President. Opened a new loan and deposit production office 4Q20 – Purchased an existing banking center location in Lafayette, Louisiana Fall 2021 – Planned opening as the 27th Red River Bank banking center 4Q20 – Purchased an existing banking center location in Lake Charles, Louisiana (Southwest market) 2Q21 – Planned opening as the 26th Red River Bank banking center Sulphur Banking Center Lafayette Banking Center Lake Charles Banking Center Under Renovation Under Renovation
7 Executive Management and Board of Directors Update 1Q21 Chief Credit Policy Officer Gary Merrifield passed away 2Q20 Recruited new Northwest Market President Jennifer Elliott Previous Northwest Market President G. Bridges Hall, named as Credit Policy Officer Chief Operations Officer for Red River Bank Jeffrey R. Theiler resigned Red River Bancshares, Inc. board member, William Hackmeyer, Jr. passed away 1Q21 Anna Brasher Moreau, DDS, MS appointed to the Red River Bancshares, Inc. and Red River Bank boards of directors John C. Simpson transitioned from role of Chairman of the Board of the Company and Red River Bank. Will remain a member on both boards, serving as Chair Emeritus Teddy R. Price elected as Chair of the Board of the Company and Red River Bank Executive Management Board of Directors
8 Competitive Landscape 1Source: FDIC, Deposits as of June 30, 2020. 2IberiaBank merged with First Horizon Bank, headquartered in Memphis, TN, in July 2020. Deposits in Louisiana1 As of June 30, 2020 $124.1 billion Red River Bank has 1.7% of Louisiana deposits (as of June 30, 2020) One‐third of deposits in the state are held by large national banks, which are reducing their Louisiana banking center networks Red River Bank Markets 1st Banking Center Opened Deposits ($M) Banking Centers Market Rank Deposit Market Share1 Central 1999 $1,257 9 1st 36.2% Northwest 2006 $426 7 9th 4.8% Capital 2013 $387 6 8th 1.9% Southwest 2018 $14 2 16th 0.3% Northshore 2019 $10 1 24th 0.2% Louisiana 1999 $2,094 25 8th 1.7% Deposit Market Share As of June 30, 2020
9 First Quarter 2021 Financial Results Record‐high quarterly net income increased $804,000 from prior quarter to $8.1 million for 1Q21 EPS (diluted) was $1.10 and ROA was 1.20% for 1Q21 Assets increased 6.7%, or $178.0 million, to $2.82 billion Deposits increased 7.5%, or $174.9 million, to $2.52 billion Net interest margin FTE decreased 32 basis points to 2.76% Nonperforming assets to assets ratio decreased to 0.13% Allowance for loan losses to loans HFI ratio = 1.21% March 31, December 31, March 31, (dollars in thousands, except per share data) 2021 2020 2020 Net income 8,065$ 7,261$ 6,745$ Earnings per share, diluted 1.10$ 0.99$ 0.92$ Cash dividends per share 0.07$ 0.06$ 0.06$ Return on average assets 1.20% 1.13% 1.36% Return on average equity 11.36% 10.23% 10.53% Net interest margin FTE 2.76% 3.08% 3.41% Efficiency ratio 54.02% 53.66% 57.40% Total assets 2,820,672$ 2,642,634$ 2,010,701$ Loans held for investment 1,602,086$ 1,588,446$ 1,447,362$ Noninterest‐bearing deposits 1,015,350$ 943,615$ 607,322$ Total deposits 2,515,275$ 2,340,360$ 1,727,782$ Loans HFI to deposits ratio 63.69% 67.87% 83.77% Noninterest‐bearing deposits to deposits ratio 40.37% 40.32% 35.15% Nonperforming assets to total assets 0.13% 0.16% 0.30% Net charge‐offs to average loans 0.00% 0.06% 0.00% Allowance for loan losses to loans HFI 1.21% 1.13% 0.99% Leverage ratio 10.43% 10.92% 12.89% Book value per share 38.99$ 38.97$ 36.08$ As of and for the Three Months Ended
10 Basic, Conservative Balance Sheet Increasing liquidity. Overnight liquidity/earning assets = 20.9% Conservative securities portfolio. Securities/earning assets = 19.0% Noninterest‐bearing DDAs/total deposits = 40.37% Loans HFI/Deposits = 63.69% No brokered deposits No subordinated debt or other borrowings Minimal intangible assets Well capitalized with 10.43% leverage ratio $3.0 million stock buyback plan available. $1.1 million repurchased through March 31, 2021 Quarterly dividend increased in 1Q21 Balance Sheet As of March 31, 2021 (in thousands) Assets Cash and cash equivalents 603,000$ Securities available‐for‐sale 515,942 Loans held for investment 1,602,086 Loans held for sale 18,449 Allowance for loan losses (19,377) Intangible assets 1,546 Premises and equipment, net 46,950 Other assets 52,076 Total Assets 2,820,672$ Liabilities Noninterest‐bearing deposits 1,015,350$ Interest‐bearing deposits 1,499,925 Total Deposits 2,515,275 Other liabilities 20,486 Total Liabilities 2,535,761$ Stockholders' Equity Total Stockholders' Equity 284,911 Total Liabilities and Stockholders' Equity 2,820,672$
11 $354.3 $307.9 $335.6 $498.2 $515.9 2017 2018 2019 2020 1Q21 MBS Agency Treasury Muni ‐ AFS Muni ‐ HTM Securities Portfolio ‐ Conservative Securities ($M) Securities Mix As of March 31, 2021 19.0% of earning assets FTE yield ‐ 1.76% Effective duration ‐ 4.49 years Average life ‐ 6 years Mortgage‐backed securities: Average life ‐ 6.04 years Effective duration ‐ 5.07 years Key strengths of municipal portfolio: Geographic diversification 67% of portfolio carries support through insurance or state enhancements Credit quality is strong with 100% of the portfolio either having an overall rating of A or better, or is pre‐refunded Effective duration ‐ 4.08 years
12 1.6% 1.6% 2.0% 2.2% 3.2% 3.8% 3.9% 4.2% 4.5% 9.8% Manufacturing Finance and Insurance Energy Religious and Other Nonprofit Public Administration Retail Trade Hospitality Services Investor 1‐to‐4 and Multifamily Construction Health Care Loan Portfolio Overview Broad diversification by industry Highest industry concentration is in health care at 9.8% (excluding PPP loans) Loans indexed to LIBOR were $59.5 million, or 3.7%, of loans HFI as of March 31, 2021 Total Loans HFI ($M) Largest Industry Concentrations As of March 31, 2021 (excluding PPP Loans) Loans HFI Mix As of March 31, 2021 $1,248 $1,328 $1,439 $1,588 $1,602 2017 2018 2019 2020 1Q21 CRE 1‐4 Family Residential C&D C&I Tax‐Exempt Consumer PPP
13 5.1% 6.8% 6.3% 7.4% 4.8% 5.8% 7.1% 6.6% C en tr al N o rt h w es t C ap it al So u th w es t N o rt h sh o re Lo u is ia n a U n it ed S ta te s A ca d ia n a Loans By Market Five of our six markets have unemployment rates below state average Four of our markets have unemployment rates below national average Little exposure to the tourism and energy driven areas of Louisiana Focus on major MSA’s in Louisiana Unemployment Rate (February 20211) Non‐PPP Loans HFI originated by geographic market2 As of March 31, 2021 1Source: Louisiana Workforce Commission data for February 2021 2Non‐GAAP measure. See “Forward‐Looking Statements and Non‐GAAP Information” on slide 2 and “Non‐GAAP Reconciliation” slides in the Appendix for additional information.
14 Health Care Loans Health care loans as of March 31, 2021 totaled $145.1 million, or 9.8%, of non‐PPP loans HFI1 Largest industry concentration Average loan size = $294,000 No shared national credits, no real estate investment trusts, no assisted living facilities No health care credits on Watch List Nursing care facilities operate under a certificate of need system in Louisiana Health Care Loans by Subtype As of March 31, 2021 ¹Non‐GAAP measure. See “Forward‐Looking Statements and Non‐GAAP Information” on slide 2 and “Non‐GAAP Reconciliation” slides in the Appendix for additional information.
15 3.4% 2.9% 2.2% 1.4% 2.0% 2017 2018 2019 2020 1Q21 (dollars in thousands) Amount Percent Amount Percent Amount Percent Performing 27,400$ 91.6% 1,730$ 5.8% 29,130$ 97.4% Nonperforming ‐ 0.0% 786 2.6% 786 2.6% Total EP 27,400$ 91.6% 2,516$ 8.4% 29,916$ 100.0% Not criticized 22,083$ 73.8% 1,730$ 5.8% 23,813$ 79.6% Criticized 5,317 17.8% 786 2.6% 6,103 20.4% Total EP 27,400$ 91.6% 2,516$ 8.4% 29,916$ 100.0% Originated by Red River Bank Other banks Total Energy Portfolio Loans Energy portfolio (EP) loans as of March 31, 2021 totaled $29.9 million, or 2.0%, of non‐PPP loans HFI1 Average loan size = $575,000 Charge‐offs since 2017 were $2.8 million Nonperforming EP continues to decline No reserve based lending Energy Portfolio As of March 31, 2021 10.8% 5.0% 5.3% 3.9% 2.6% 1Q20 2Q20 3Q20 4Q20 1Q21 ¹Non‐GAAP measure. See “Forward‐Looking Statements and Non‐GAAP Information” on slide 2 and “Non‐GAAP Reconciliation” slides in the Appendix for additional information. EP/Non‐PPP Loans HFI1 Nonperforming EP/Total EP
16 19.3% 20.3% 20.9% 20.1% 19.9% 13.7% 13.9% 16.1% 14.9% 15.2% 2017 2018 2019 2020 1Q21 Owner occupied Non‐owner occupied Commercial Real Estate Loans Commercial Real Estate (CRE) loans were $562.6 million, or 35.1%, of Loans HFI as March 31, 2021 Low levels of CRE relative to state, regional, and national peers CRE concentration ratios as a % of risk‐based capital are well below bank regulatory guidelines Construction & Development Ratio = 42.0% Commercial Real Estate Ratio = 129.0% CRE criticized loans were $4.2 million, or 0.8%, of total CRE loans; 0.3% of loans HFI CRE nonperforming loans were $1.4 million, or 0.3%, of total CRE loans; 0.1% of loans HFI CRE/Loans HFI
17 Paycheck Protection Program PPP First Draw (PPP1) Loans Loan payments for 78.6% of the 1,384 PPP1 loans and 66.4% of the $199.0 million originated have been received 73.8% of the $7.0 million original deferred fees have been recognized Additional PPP1 loans for $3.3 million originated in the first quarter of 2021 PPP Second Draw (PPP2) Loans Began taking applications January 20, 2021 As of March 31, 2021, 436 loans originated for $52.6 million with an average size of $121,000 Loans fees of $2.4 million are deferred (dollars in thousands) Originated Received Outstanding Amount 199,047$ 132,146$ 66,901$ Number of Loans 1,384 1,087 297 Deferred Fees 7,014$ 959$ Average Size 144$ Gross Fee Yield (24 mo) 3.52% Original PPP1 Loan Status As of March 31, 2021 PPP2 Loan StatusAdditional PPP1 Loan Status Total PPP Loan Quarterly Income PPP Income Yield 2Q20 1,153$ 2.99% 3Q20 1,386$ 2.84% 4Q20 3,023$ 7.45% 1Q21 2,132$ 7.97% (dollars in thousands) Originated Amount 52,559$ Number of Loans 436 Deferred Fees 2,437$ Average Size 121$ Gross Fee Yield (60 mo) 4.64% (dollars in thousands) Originated Amount 3,289$ Number of Loans 6 Deferred Fees 60$ Average Size 548$ Gross Fee Yield (60 mo) 1.81%
18 0.30% 0.18% 0.21% 0.16% 0.13% 1Q20 2Q20 3Q20 4Q20 1Q21 Asset Quality Nonperforming Assets – decreased due to payoff of nonaccrual loans and sale of foreclosed assets Provision for loan loss expense – decreased compared to 4Q20. Asset quality improved, pandemic‐ related economic restrictions were eased ALL to non‐PPP loans HFI1 = 1.31% as of March 31, 2021 The need for additional ALL is diminishing COVID‐19 Loan Modifications – Active deferrals continue to decline and were $9.7 million, or 0.7%, of non‐PPP loans HFI1 as of March 31, 2021 (dollars in thousands) 1Q20 2Q20 3Q20 4Q20 1Q21 Nonperforming Loans (NPLs) 5,235$ 3,442$ 4,387$ 3,310$ 2,811$ NPLs to Loans HFI 0.36% 0.21% 0.27% 0.21% 0.18% NPLs to Non‐PPP Loans HFI1 0.36% 0.24% 0.30% 0.23% 0.19% Nonperforming Assets (NPAs) 6,104$ 4,294$ 5,215$ 4,206$ 3,604$ NPAs to total assets 0.30% 0.18% 0.21% 0.16% 0.13% Criticized Loans (CL) 19,663$ 17,550$ 18,295$ 12,607$ 12,482$ CLs to Loans HFI 1.36% 1.09% 1.11% 0.79% 0.78% Provision Expense 503$ 1,525$ 1,590$ 2,675$ 1,450$ ALL to loans HFI 0.99% 0.92% 0.98% 1.13% 1.21% ALL to Non‐PPP Loans HFI1 0.99% 1.05% 1.11% 1.22% 1.31% 0.00% 0.06% 0.02% 0.06% 0.00% Net Charge‐offs to Average Loans (QTR) As of and for the quarter ended Asset Quality Metrics NPAs/Total Assets ¹Non‐GAAP measure. See “Forward‐Looking Statements and Non‐GAAP Information” on slide 2 and “Non‐GAAP Reconciliation” slides in the Appendix for additional information.
19 Loan Categories Most Impacted by COVID‐19 Hotel exposure Only one property financed in the tourism‐driven downtown New Orleans market The remaining hotel properties in our portfolio are located throughout Louisiana in areas that are not primarily tourism‐driven Restaurant exposure Not located in tourism‐driven areas Loans collateralized by non‐owner occupied properties leased to retail establishments totaled $42.7 million, or 2.9% of non‐PPP loans HFI1 ¹Non‐GAAP measure. See “Forward‐Looking Statements and Non‐GAAP Information” on slide 2 and “Non‐GAAP Reconciliation” slides in the Appendix for additional information. (dollars in thousands) Amount By Industry: Hospitality services: Hotels and other overnight lodging 26,477$ 1.8% Restaurants ‐ full service 12,258 0.8% Restaurants ‐ limited service 12,235 0.8% Other 7,130 0.5% Total hospitality services 58,100$ 3.9% Hospitality services average loan size 447$ Retail trade (excluding auto dealers) 21,336$ 1.4% Retail trade average loan size 160$ Energy 29,916$ 2.0% Energy average loan size 575$ Total sectors 109,352$ 7.3% March 31, 2021 % Non‐PPP Loans HFI1
20 2017 2018 2019 2020 1Q21 DDA NOW Money Market Savings Time <= 250k Time > 250k 2017 2018 2019 2020 1Q21 Attractive Core Deposit Base $1,526 $1,646 $1,721 $2,340 Total Deposits ($M) Noninterest‐bearing Deposits ($M) Deposits increased $174.9 million, or 7.5%, in the first quarter of 2021 due to funds received from government stimulus programs, proceeds of PPP2 loans, and customers maintaining higher deposit balances Cost of deposits was 0.27% for the three months ended March 31, 2021 No brokered deposits $585 $944 $2,515 $1,015 $504 $548 Deposit Mix As of March 31, 2021
21 0.95 1.29 1.30 1.22 1.20 2017 2018 2019 2020 1Q21 62.69 58.86 59.46 55.77 54.02 2017 2018 2019 2020 1Q21 $2.48 $3.41 $3.49 $3.83 $1.10 2017 2018 2019 2020 2021 Q1 Q2 Q3 Q4 Tax Reform $16,215 $23,056 $24,824 $28,145 $8,065 2017 2018 2019 2020 2021 Q1 Q2 Q3 Q4 Tax Reform Profitability Trends Earnings Per Share (Diluted)1,2 Return on Average Assets (%)1 1 2017 Adjusted for $2.2 million write‐down of deferred tax assets associated with changes in tax legislation 2 2017 EPS data adjusted for 2‐for‐1 stock split with a record date of October 1, 2018 Efficiency Ratio (%) Net Income ($000)1
22 1.26% 0.06% 0.09% 0.09% 0.08% 0.58% 0.41% 0.37% 0.33% 0.27% 4.50% 4.21% 4.04% 4.47% 4.31% 3.41% 3.12% 3.02% 3.08% 2.76% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 1Q20 2Q20 3Q20 4Q20 1Q21 Average Effective Fed Funds Rate Cost of Deposits Loan Yield Net Interest Margin ‐ FTE Net Interest Margin FTE (1Q21) Net interest margin FTE decreased 32 basis points to 2.76% for 1Q21 Net interest income decreased $1.1 million to $17.6 million for 1Q21 First quarter 2021 decreased due to having high levels of low yielding short‐term liquid assets and lower PPP loan income NIM Challenges Higher liquidity levels and deployment Lower security yield on new securities Timing of PPP loan forgiveness payments NIM Opportunity Lower cost of deposits Loan growth opportunity in new markets Explore ways to reduce short‐term liquid assets
23 Loan Yield and Net Interest Ratios Excluding PPP Loans1 (1Q21) Non‐PPP loan income = $15.0 million yielding 4.05% for the three months ended March 31, 2021 Excluding PPP loans, net interest margin FTE decreased 24 basis points to 2.53%1 ¹Non‐GAAP measure. See “Forward‐Looking Statements and Non‐GAAP Information” on slide 2 and “Non‐GAAP Reconciliation” slides in the Appendix for additional information. Ratios Actual Excluding PPP loans1 Actual Excluding PPP loans1 Loan Yield 4.31% 4.05% 4.47% 4.14% Net Interest Spread 2.50% 2.28% 2.76% 2.47% Net Interest Margin 2.69% 2.47% 3.01% 2.70% Net Interest Margin FTE 2.76% 2.53% 3.08% 2.77% For the Three Months Ended March 31, 2021 December 31, 2020
24 Noninterest Income Noninterest income increased $582,000 from 4Q20 to $6.8 million for 1Q21 Brokerage income ‐ quarterly record‐high of $834,000 due to increase in sales activity and additional funds invested by existing clients Assets under management ‐ $704.8 million Mortgage income ‐ increased $203,000 to $2.9 million with continued mortgage activity Loan and deposit income ‐ totaled $473,000, an increase of $112,000 from prior quarter primarily due to $110,000 of nonrecurring commercial real estate loan fees Noninterest Income For the quarter ended March 31, 2021 (dollars in thousands)
25 Operating Expenses Operating expenses decreased $173,000 from 4Q20 to $13.2 million for 1Q21 Legal and professional expenses ‐ decreased $186,000 to $368,000 due to lower attorney, compliance, and accounting expenses Data processing expense ‐ decreased $108,000 to $385,000 due to receipt of $173,000 nonrecurring refund from data processing center Other taxes ‐ increased $100,000 to $525,000 due to increase in State of Louisiana bank stock tax from higher deposit balances and net income for applicable years Operating Expenses For the quarter ended March 31, 2021 (dollars in thousands)
26 Future Plans Continue building a strong, Louisiana based, super community bank Open our new Lake Charles and Lafayette banking centers and expand market share in these new markets Prudently deploy liquidity in loans and investments Continue to expand mortgage operations and investments division across Louisiana Focus on assisting our customers and communities during the reopening of the economy Aggressively monitor asset quality trends and maintain appropriate level of ALL Monitor markets for opportunity for organic growth or key acquisitions Seek to take advantage of disruption in the marketplace due to mergers and acquisitions and branch closures/limited service by larger national banks Continue to invest in digital banking tools as needed in order to serve our target customer base Focus on capital management by paying dividends and repurchasing stock
Made in Louisiana. Made for Louisiana. Summary Managing $119.4 million of PPP loans as of March 31, 2021 Diversified loan portfolio with solid asset quality and allowance Record‐high quarterly net income of $8.1 million Well capitalized with 10.43% leverage ratio as of March 31, 2021 27 Consistent returns through March 31, 2021, with YTD ROA = 1.20% and YTD ROE = 11.36%
28
Appendix 29
30 Non‐GAAP Reconciliation As of March 31, As of December 31, As of March 31, (dollars in thousands, except per share data) 2021 2020 2020 Tangible common equity Total stockholders' equity 284,911$ 285,478$ 264,175$ Adjustments: Intangible assets (1,546) (1,546) (1,546) Total tangible common equity (non‐GAAP) 283,365$ 283,932$ 262,629$ Common shares outstanding 7,306,747 7,325,333 7,322,532 Book value per common share 38.99$ 38.97$ 36.08$ Tangible book value per common share (non‐GAAP) 38.78$ 38.76$ 35.87$ Tangible assets Total assets 2,820,672$ 2,642,634$ 2,010,701$ Adjustments: Intangible assets (1,546) (1,546) (1,546) Total tangible assets (non‐GAAP) 2,819,126$ 2,641,088$ 2,009,155$ Total stockholders' equity to assets 10.10% 10.80% 13.14% Tangible common equity to tangible assets (non‐GAAP) 10.05% 10.75% 13.07%
31 Non‐GAAP Reconciliation As of March 31, As of December 31, As of March 31, (dollars in thousands) 2021 2020 2020 Non‐PPP loans HFI Loans HFI 1,602,086$ 1,588,446$ 1,447,362$ Adjustments: PPP loans, net (119,358) (118,447) ‐ Non‐PPP loans HFI (non‐GAAP) 1,482,728$ 1,469,999$ 1,447,362$ Assets excluding PPP loans, net Assets 2,820,672$ 2,642,637$ 2,010,701$ Adjustments: PPP loans, net (119,358) (118,447) ‐ Assets excluding PPP loans, net (non‐GAAP) 2,701,314$ 2,524,190$ 2,010,701$ Allowance for Loan Losses 19,377$ 17,951$ 14,393$ Deposits 2,515,275$ 2,340,360$ 1,727,782$ Loans HFI to deposits ratio 63.69% 67.87% 83.77% Non‐PPP loans HFI to deposits ratio (non‐GAAP) 58.95% 62.81% 83.77% Allowance for loans losses to loans HFI 1.21% 1.13% 0.99% Allowance for loans losses to non‐PPP loans HFI (non‐GAAP) 1.31% 1.22% 0.99%