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for immediate release Red River Bancshares , Inc. Reports Second Quarter 2021 Financial Results ALEXANDRIA , La . , July 29 , 2021 ( GLOBE NEWSWIRE ) -- Red River Bancshares , Inc. ( the " Company " ) ( Nasdaq : RRBI ) , the holding company for Red River Bank ( the " Bank ” ) , announced today its unaudited financial results for the second quarter of 2021 . Net income for the second quarter of 2021 was $ 8.2 million , or $ 1.13 per diluted common share ( " EPS " ) , an increase of $ 174,000 , or 2.2 % , compared to $ 8.1 million , or $ 1.10 EPS , for the first quarter of 2021 , and an increase of $ 1.4 million , or 20.2 % , compared to $ 6.9 million , or $ 0.93 EPS , for the second quarter of 2020. For the second quarter of 2021 , the quarterly return on assets was 1.15 % and the quarterly return on equity was 11.41 % . Net income for the six months ended June 30 , 2021 , was $ 16.3 million , or $ 2.22 EPS , an increase of $ 2.7 million , or 19.9 % , compared to $ 13.6 million , or $ 1.85 EPS , for the six months ended June 30 , 2020. For the six months ended June 30 , 2021 , the return on assets was 1.18 % , and the return on equity was 11.38 % . Second Quarter 2021 Performance and Operational Highlights The second quarter of 2021 included record - high quarterly net income , a continued high level of liquidity , the completion of the issuance of Small Business Administration ( " SBA " ) Paycheck Protection Program ( " PPP " ) Second Draw loans , and an executive management change . Economic activity in Louisiana improved during the second quarter of 2021 due to the removal of most Louisiana COVID - 19 pandemic restrictions , the widespread availability of COVID - 19 vaccines , and the continuing effects of government stimulus funds . • Net income for the second quarter of 2021 was $ 8.2 million , $ 174,000 higher than the prior quarter primarily due to lower provision for loan loss expense , partially offset by lower PPP loan income . • Assets increased $ 57.8 million in the second quarter of 2021 to $ 2.88 billion as of June 30 , 2021 , primarily driven by a $ 54.3 million increase in deposits . • Red River Bank is participating in the SBA PPP . In the second quarter of 2021 , forgiveness payments on PPP First Draw ( " PPP1 " ) loans exceeded the origination of PPP Second Draw ( " PPP2 " ) loans which resulted in a $ 36.4 million decrease in PPP loans . As of June 30 , 2021 , PPP loans were $ 83.0 million , net of $ 2.9 million of deferred income , or 5.2 % of loans held for investment ( " HFI " ) . PPP1 loan forgiveness was lower in the second quarter of 2021 than in the first quarter of 2021 , resulting in a decrease in PPP loan income . PPP loan income for the second quarter of 2021 was $ 1.1 million , which was $ 1.1 million lower than the prior quarter . • As of June 30 , 2021 , non - PPP loans HFI were $ 1.52 billion , ( 1 ) an increase of $ 34.7 million , or 2.3 % , from March 31 , 2021 . • Loans HFI decreased $ 1.7 million in the second quarter of 2021 to $ 1.60 billion as of June 30 , 2021 , due to PPP loan forgiveness payments outpacing non - PPP loan activity . • The net interest margin fully tax equivalent ( " FTE " ) for the second quarter of 2021 was 2.54 % , compared to 2.76 % for the prior quarter . The net interest margin for the second quarter of 2021 was negatively impacted by a higher level of low - yielding short - term liquid assets , combined with lower PPP loan income . The high level of low - yielding short - term liquid assets had a 70 basis point ( " bp ( s ) " ) dilutive impact to the net interest margin FTE in the second quarter of 2021 . • Nonperforming assets ( " NPA ( s ) " ) decreased $ 518,000 in the second quarter and were $ 3.1 million , or 0.11 % of assets as of June 30 , 2021. As of June 30 , 2021 , the allowance for loan losses ( " ALL " ) was $ 19.5 million , or 1.22 % of loans HFI and 1.28 % ( 1 ) of non - PPP loans HFI ( non - GAAP ) . Due to favorable asset quality metrics and the ALL balance , the provision for loan losses for the second quarter of 2021 was $ 150,000 , compared to $ 1.5 million for the prior quarter . • Mortgage loan income for the second quarter of 2021 was $ 2.4 million , $ 525,000 lower than the prior quarter . Mortgage loan activity decreased in the second quarter of 2021 due to reduced mortgage loan demand . • We paid a quarterly cash dividend of $ 0.07 per common share . • In accordance with the stock repurchase program implemented in the third quarter of 2020 , we repurchased 21,653 shares of our common stock in the second quarter of 2021 at an aggregate cost of $ 1.2 million . • Founding executive management member and Executive Vice President Tammi Salazar was appointed Chief Operating Officer . • In the second quarter of 2021 , we invested in the JAM FINTOP Banktech , L.P. fund to strategically develop technology systems as we expand the Bank's digital offerings . • We selected and began implementing a new loan processing system . The system is expected to improve the efficiency of loan processing over the entire loan lifecycle , minimize loan processing costs , and provide customers with an online , digital loan application system .