Red River Bancshares, Inc. (RRBI): A Bull Case Theory
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 30 2024
0mins
Should l Buy RRBI?
Source: Yahoo Finance
Investment Thesis on Red River Bancshares: Red River Bancshares, Inc. (RRBI) is highlighted as a strong investment opportunity due to its disciplined relationship-driven banking model, strategic market expansion, and superior financial performance metrics compared to peers, including a robust net interest margin and low charge-off ratio.
Market Position and Hedge Fund Interest: Despite RRBI's impressive growth and operational excellence, it remains relatively underrepresented in hedge fund portfolios, with only five funds holding shares, while the article suggests that some AI stocks may offer better short-term return potential.
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Analyst Views on RRBI
About RRBI
Red River Bancshares, Inc. is the bank holding company for Red River Bank (the Bank). The Bank is a Louisiana state-chartered bank that provides a fully integrated suite of banking products and services tailored to the needs of commercial and retail customers. The Bank operates from a network of approximately 28 banking centers throughout Louisiana and one combined loan and deposit production office in New Orleans, Louisiana. It targets privately-owned commercial and industrial operating companies for both credit and treasury management services, while also providing owners and employees with the same customized, personal service for their individual financial needs. It offers a range of deposit products, including checking, savings, money market accounts, and time deposits. It offers real estate loans, commercial and industrial loans, tax-exempt loans, consumer loans, and loans held for sale. It also offers online banking services, night deposits, telephone, mail, and mobile banking.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Insider Buying Activity at Kinder Morgan and Red River Bancshares
- Insider Buying at Kinder Morgan: Director William A. Smith purchased 3,000 shares of KMI at $29.75 each on Monday, totaling an investment of $89,236, indicating confidence in the company's future despite a 1.6% drop in stock price on Wednesday.
- Red River Bancshares Investment: Director Teddy Ray Price bought 747 shares of RRBI at $90.12 each on Wednesday for a total of $67,322, reflecting his confidence in the company's ongoing growth, with the stock rising 2.2% on the same day.
- Historical Purchase Record: Prior to this latest buy, Price had made four other purchases of RRBI over the past year, totaling $394,181 at an average price of $59.96 per share, demonstrating a long-term bullish outlook on the stock.
- Market Reaction Analysis: While Kinder Morgan's stock has seen a decline, insider buying is generally viewed as a positive signal for the company's future performance, potentially attracting more investor interest in the long run.
See More
Red River Bancshares Q4 2025 Financial Highlights
- Strong Earnings Performance: Red River Bancshares reported a Q4 2025 GAAP EPS of $1.73, indicating sustained growth in profitability, reflecting robust financial management and competitive positioning in the market.
- Loan Investment Growth: As of December 31, 2025, loans held for investment reached $2.25 billion, up $75.6 million or 3.5% from September 30, 2025, showcasing the company's strong performance in new loan and commitment activities, thereby enhancing its market position.
- Asset and Deposit Increase: Total assets stood at $3.35 billion as of December 31, 2025, an increase of $136.5 million or 4.2% from September 30, 2025, primarily driven by a rise in deposits, indicating increased customer trust and engagement.
- Dividends and Buyback Program: The bank paid a quarterly cash dividend of $0.15 per share in Q4 2025, with an annual dividend of $0.54, a 50% increase from 2024, while repurchasing 11,748 shares in 2025, demonstrating a commitment to shareholder returns.
See More
Red River Bancshares Reports Q4 Earnings Growth
- Significant Earnings Growth: Red River Bancshares reported fourth-quarter earnings of $11.41 million, translating to $1.73 per share, a notable increase from last year's $9.30 million and $1.37 per share, indicating enhanced profitability.
- Steady Revenue Increase: The company's revenue rose by 10% year-over-year to $39.19 million, compared to $35.63 million last year, reflecting improved business expansion and market demand.
- Financial Health Indicators: The sustained earnings and revenue growth further solidify Red River Bancshares' financial health, laying a strong foundation for future investments and expansion.
- Increased Market Confidence: With the dual growth in earnings and revenue, confidence in Red River Bancshares among investors and the market has significantly increased, potentially attracting more investor interest and support.
See More
Red River Bancshares Increases Stock Repurchase Program by $10 Million
- Repurchase Program Update: Red River Bancshares' board approved a renewal and increase of its stock repurchase program to $10 million, set to run from January 1, 2026, to December 31, 2026, aimed at enhancing shareholder value through effective capital management tools.
- Market Operation Flexibility: The repurchases will be conducted in the open market or through privately negotiated transactions based on market conditions, which not only enhances the company's flexibility in capital markets but may also boost earnings per share by reducing the number of outstanding shares.
- Company Background: Established in 1999, Red River Bank operates 28 banking centers and offers a comprehensive suite of banking products and services tailored to commercial and retail customers, thereby strengthening its market position in Louisiana.
- Forward-Looking Statements: The company cautions that the timing, manner, and impact of future repurchases are subject to uncertainties, emphasizing that investors should carefully consider potential market risks and uncertainties associated with forward-looking statements.
See More
Thursday 8/7 Insider Buying Report: AUR, RRBI
Aurora Innovation Insider Purchase: Director John J. Donahoe purchased 162,337 shares of Aurora Innovation (AUR) at $6.10 each, totaling approximately $989,460, marking his first purchase in the past year as the stock rose about 0.8% on Thursday.
Red River Bancshares Investment: Director Teddy Ray Price acquired 3,943 shares of Red River Bancshares (RRBI) for $237,586 at $60.26 each, adding to previous investments totaling $128,206 over the past year, with RRBI trading flat on Thursday.
See More
Alpha Buying: Bank Insiders Are Quietly Loading Up — Here's Where
Insider Buying Trends: Recent insider purchases in small banks indicate confidence among executives and directors, particularly in the agricultural and community banking sectors, despite concerns about broader economic challenges.
Bank Performance Overview: Several small banks, including CVB Financial and Shore Bancshares, show strong operational performance and growth potential, with significant insider investments suggesting optimism for future stability and profitability.
See More
Insider Buying Activity at Kinder Morgan and Red River Bancshares
- Insider Buying at Kinder Morgan: Director William A. Smith purchased 3,000 shares of KMI at $29.75 each on Monday, totaling an investment of $89,236, indicating confidence in the company's future despite a 1.6% drop in stock price on Wednesday.
- Red River Bancshares Investment: Director Teddy Ray Price bought 747 shares of RRBI at $90.12 each on Wednesday for a total of $67,322, reflecting his confidence in the company's ongoing growth, with the stock rising 2.2% on the same day.
- Historical Purchase Record: Prior to this latest buy, Price had made four other purchases of RRBI over the past year, totaling $394,181 at an average price of $59.96 per share, demonstrating a long-term bullish outlook on the stock.
- Market Reaction Analysis: While Kinder Morgan's stock has seen a decline, insider buying is generally viewed as a positive signal for the company's future performance, potentially attracting more investor interest in the long run.
See More
Red River Bancshares Q4 2025 Financial Highlights
- Strong Earnings Performance: Red River Bancshares reported a Q4 2025 GAAP EPS of $1.73, indicating sustained growth in profitability, reflecting robust financial management and competitive positioning in the market.
- Loan Investment Growth: As of December 31, 2025, loans held for investment reached $2.25 billion, up $75.6 million or 3.5% from September 30, 2025, showcasing the company's strong performance in new loan and commitment activities, thereby enhancing its market position.
- Asset and Deposit Increase: Total assets stood at $3.35 billion as of December 31, 2025, an increase of $136.5 million or 4.2% from September 30, 2025, primarily driven by a rise in deposits, indicating increased customer trust and engagement.
- Dividends and Buyback Program: The bank paid a quarterly cash dividend of $0.15 per share in Q4 2025, with an annual dividend of $0.54, a 50% increase from 2024, while repurchasing 11,748 shares in 2025, demonstrating a commitment to shareholder returns.
See More
Red River Bancshares Reports Q4 Earnings Growth
- Significant Earnings Growth: Red River Bancshares reported fourth-quarter earnings of $11.41 million, translating to $1.73 per share, a notable increase from last year's $9.30 million and $1.37 per share, indicating enhanced profitability.
- Steady Revenue Increase: The company's revenue rose by 10% year-over-year to $39.19 million, compared to $35.63 million last year, reflecting improved business expansion and market demand.
- Financial Health Indicators: The sustained earnings and revenue growth further solidify Red River Bancshares' financial health, laying a strong foundation for future investments and expansion.
- Increased Market Confidence: With the dual growth in earnings and revenue, confidence in Red River Bancshares among investors and the market has significantly increased, potentially attracting more investor interest and support.
See More
Red River Bancshares Increases Stock Repurchase Program by $10 Million
- Repurchase Program Update: Red River Bancshares' board approved a renewal and increase of its stock repurchase program to $10 million, set to run from January 1, 2026, to December 31, 2026, aimed at enhancing shareholder value through effective capital management tools.
- Market Operation Flexibility: The repurchases will be conducted in the open market or through privately negotiated transactions based on market conditions, which not only enhances the company's flexibility in capital markets but may also boost earnings per share by reducing the number of outstanding shares.
- Company Background: Established in 1999, Red River Bank operates 28 banking centers and offers a comprehensive suite of banking products and services tailored to commercial and retail customers, thereby strengthening its market position in Louisiana.
- Forward-Looking Statements: The company cautions that the timing, manner, and impact of future repurchases are subject to uncertainties, emphasizing that investors should carefully consider potential market risks and uncertainties associated with forward-looking statements.
See More
Thursday 8/7 Insider Buying Report: AUR, RRBI
Aurora Innovation Insider Purchase: Director John J. Donahoe purchased 162,337 shares of Aurora Innovation (AUR) at $6.10 each, totaling approximately $989,460, marking his first purchase in the past year as the stock rose about 0.8% on Thursday.
Red River Bancshares Investment: Director Teddy Ray Price acquired 3,943 shares of Red River Bancshares (RRBI) for $237,586 at $60.26 each, adding to previous investments totaling $128,206 over the past year, with RRBI trading flat on Thursday.
See More
Alpha Buying: Bank Insiders Are Quietly Loading Up — Here's Where
Insider Buying Trends: Recent insider purchases in small banks indicate confidence among executives and directors, particularly in the agricultural and community banking sectors, despite concerns about broader economic challenges.
Bank Performance Overview: Several small banks, including CVB Financial and Shore Bancshares, show strong operational performance and growth potential, with significant insider investments suggesting optimism for future stability and profitability.
See More
