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HYPOTHETICAL PERFORMANCE RESULTS: The "timing scores" and "regime signals" displayed are based on quantitative models. Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity.
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Relative valuation derived from Financials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 58.8GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
11.0%
Sector: 8.5%
Dividend Analysis audit
GROWTH
0.74%
Trailing Yield
$0.74
Per $100 Invested
Modest dividend — capital prioritized for reinvestment.
Est. Payout Ratio
11%SAFE
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, RED RIVER BANCSHARES INC (RRBI) receives a "Buy" rating with a composite score of 58.7/100, ranked #10 out of 4446 stocks. Key factor scores: Quality 59/100, Value 69/100, Momentum 68/100. This is quantitative analysis only — not investment advice.
RED RIVER BANCSHARES INC (RRBI) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does RED RIVER BANCSHARES INC Do?
Red River Bancshares, Inc. operates as a bank holding company for Red River Bank that provides banking products and services to commercial and retail customers in Louisiana. The company provides various deposit products, including checking, saving, money market accounts, and time deposits. It also offers commercial real estate loans; one-to-four family mortgage loans and home equity lines of credit; construction and development loans; commercial and industrial loans; small business administration paycheck protection program loans; tax-exempt loans; consumer loans to individuals for personal, family, and household purposes, including secured and unsecured installment and term loans; home mortgage loans; and lines of credit and standby letters of credit. In addition, the company provides treasury management, private banking, and brokerage; investment advisory, financial planning, and a suite of retirement plans; debit and credit cards, direct deposits, cashier's checks, and wire transfer services; online banking services, including access to account balances, online transfers, online bill payment, and electronic delivery of customer statements; and banking services in person, through ATMs, drive-through facilities, night deposits, telephone, mail, mobile banking, and remote deposits. It operates a network of 27 banking centers throughout Louisiana and two combined loan and deposit production offices in Lafayette and New Orleans, Louisiana. The company was incorporated in 1998 and is headquartered in Alexandria, Louisiana. RED RIVER BANCSHARES INC (RRBI) is classified as a small-cap stock in the Financials sector, specifically within the Banking industry. The company is led by CEO R. Blake Chatelain and employs approximately 340 people. With a market capitalization of $607M, RRBI is one of the notable companies in the Financials sector.
RED RIVER BANCSHARES INC (RRBI) Stock Rating — Buy (April 2026)
As of April 2026, RED RIVER BANCSHARES INC receives a Buy rating with a composite score of 58.7/100 and 4 out of 5 stars from the Blank Capital Research quantitative model.RRBI ranks #10 out of 4,446 stocks in our coverage universe. Within the Financials sector, RED RIVER BANCSHARES INC ranks #8 of 891 stocks, placing it in the top 10% of its Financials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
RRBI Stock Price and 52-Week Range
RED RIVER BANCSHARES INC (RRBI) currently trades at $93.69. The stock lost $0.53 (0.6%) in the most recent trading session. The 52-week high for RRBI is $93.90, which means the stock is currently trading -0.2% from its annual peak. The 52-week low is $46.33, putting the stock 102.2% above its annual trough. Recent trading volume was 48K shares, suggesting relatively thin trading activity.
Is RRBI Overvalued or Undervalued? — Valuation Analysis
RED RIVER BANCSHARES INC (RRBI) carries a value factor score of 69/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 14.95x, compared to the Financials sector average of 14.88x — a premium of 0%. The price-to-book ratio stands at 1.64x, versus the sector average of 1.22x. The price-to-sales ratio is 4.12x, compared to 0.90x for the average Financials stock. On an enterprise value basis, RRBI trades at 12.05x EV/EBITDA, versus 3.26x for the sector.
Overall, RRBI's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
RED RIVER BANCSHARES INC Profitability — ROE, Margins, and Quality Score
RED RIVER BANCSHARES INC (RRBI) earns a quality factor score of 59/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 11.0%, compared to the Financials sector average of 8.5%, which is within a healthy range. Return on assets (ROA) comes in at 1.2% versus the sector average of 1.2%.
On a margin basis, RED RIVER BANCSHARES INC reports gross margins of 0.0%. The operating margin is 34.1% (sector: 21.8%). Net profit margin stands at 27.5%, versus 17.7% for the average Financials stock. Revenue growth is running at 13.3% on a trailing basis, compared to 9.4% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
RRBI Debt, Balance Sheet, and Financial Health
RED RIVER BANCSHARES INC has a debt-to-equity ratio of 818.0%, compared to the Financials sector average of 121.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 1.12x, suggesting adequate working capital coverage. Total debt on the balance sheet is $0. Cash and equivalents stand at $34M.
RRBI has a beta of 0.69, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for RED RIVER BANCSHARES INC is 82/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
RED RIVER BANCSHARES INC Revenue and Earnings History — Quarterly Trend
In TTM 2026, RED RIVER BANCSHARES INC reported revenue of $146M and earnings per share (EPS) of $6.40. Net income for the quarter was $40M. Gross margin was 0.0%. Operating income came in at $50M.
In FY 2025, RED RIVER BANCSHARES INC reported revenue of $150M and earnings per share (EPS) of $6.40. Net income for the quarter was $43M. Revenue grew 9.2% year-over-year compared to FY 2024. Operating income came in at $53M.
In Q3 2025, RED RIVER BANCSHARES INC reported revenue of $38M and earnings per share (EPS) of $1.63. Net income for the quarter was $11M. Revenue grew 9.3% year-over-year compared to Q3 2024. Operating income came in at $13M.
In Q2 2025, RED RIVER BANCSHARES INC reported revenue of $37M and earnings per share (EPS) of $1.51. Net income for the quarter was $10M. Revenue grew 9.1% year-over-year compared to Q2 2024. Operating income came in at $13M.
Over the past 8 quarters, RED RIVER BANCSHARES INC has demonstrated a growth trajectory, with revenue expanding from $34M to $146M. Investors analyzing RRBI stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
RRBI Dividend Yield and Income Analysis
RED RIVER BANCSHARES INC (RRBI) currently pays a dividend yield of 0.7%. At this yield, a $10,000 investment in RRBI stock would generate approximately $$74.00 in annual dividend income. This compares to the Financials sector average dividend yield of 2.5%, meaning RRBI yields less than the typical sector peer. With a net margin of 27.5%, the dividend appears well-covered by earnings, suggesting sustainable payouts going forward.
RRBI Momentum and Technical Analysis Profile
RED RIVER BANCSHARES INC (RRBI) has a momentum factor score of 68/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 28/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 26/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
RRBI vs Competitors — Financials Sector Ranking and Peer Comparison
Comparing RRBI against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full RRBI vs S&P 500 (SPY) comparison to assess how RED RIVER BANCSHARES INC stacks up against the broader market across all factor dimensions.
RRBI Next Earnings Date
No upcoming earnings date has been announced for RED RIVER BANCSHARES INC (RRBI) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy RRBI? — Investment Thesis Summary
The bull case for RED RIVER BANCSHARES INC rests on several quantitative strengths. The value score of 69/100 suggests attractive pricing relative to fundamentals. Price momentum is positive at 68/100, suggesting the trend favors buyers. Low volatility (stability score 82/100) reduces downside risk.
In summary, RED RIVER BANCSHARES INC (RRBI) earns a Buy rating with a composite score of 58.7/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on RRBI stock.
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Institutional Research Dossier
RED RIVER BANCSHARES INC (RRBI) Deep Dive Analysis
Published on March 24, 2026
Action RatingBuy
Sections
Executive Summary
We initiate coverage on Red River Bancshares Inc. (RRBI) with a Buy rating. This rating is predicated on the bank's strong profitability metrics, efficient operations as evidenced by its superior margins compared to the sector, and attractive valuation relative to its peers. While the bank's investment score is relatively low, its stability and value scores provide a solid foundation for future growth and shareholder returns.
RRBI's focus on the Louisiana market, coupled with its diversified loan portfolio and robust deposit base, positions it favorably to capitalize on regional economic growth. The bank's commitment to providing personalized service and leveraging technology to enhance customer experience further strengthens its competitive advantage. We believe that RRBI's current valuation does not fully reflect its growth potential and operational efficiency, making it an attractive investment opportunity.
Business Strategy & Overview
Red River Bancshares operates as a community bank, primarily serving the Louisiana market. Its core business revolves around providing a range of banking products and services to both commercial and retail customers. These offerings include deposit accounts (checking, savings, money market, and time deposits), various loan types (commercial real estate, residential mortgages, construction, commercial & industrial, and consumer loans), and treasury management services.
The bank's strategy centers on building strong customer relationships through personalized service and local market expertise. This approach allows RRBI to effectively compete with larger national banks that may lack the same level of community engagement. Furthermore, RRBI is investing in technology to enhance its online and mobile banking platforms, aiming to improve customer convenience and expand its reach.
RRBI's loan portfolio is diversified across various sectors, mitigating concentration risk. The bank also participates in the Small Business Administration (SBA) Paycheck Protection Program (PPP), which has provided a boost to its loan volume and fee income. The company operates a network of 27 banking centers and two loan production offices, strategically located throughout Louisiana, allowing it to effectively serve its target market.
The bank's revenue generation is primarily driven by net interest income (NII), which is the difference between the interest earned on loans and investments and the interest paid on deposits. Fee income, derived from services such as treasury management, brokerage, and investment advisory, also contributes to the bank's overall revenue stream. RRBI's strategic focus on maintaining a low-cost deposit base and efficiently managing its loan portfolio is crucial for sustaining its profitability.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
13.3%
Sector: 9.4%
+41% VS SCTR
Economic Moat Analysis
Red River Bancshares possesses a narrow economic moat, primarily derived from its strong local presence and customer relationships within the Louisiana market. Community banks often benefit from a degree of customer loyalty due to their personalized service and understanding of the local economy. This localized expertise creates a barrier to entry for larger national banks that may struggle to replicate the same level of community engagement.
Switching costs, while not exceptionally high, contribute to RRBI's moat. Customers who have established banking relationships, particularly businesses, may be hesitant to switch banks due to the administrative burden and potential disruption to their operations. The bank's investment in technology, such as online and mobile banking platforms, further enhances switching costs by providing customers with convenient and integrated banking solutions.
The regulatory environment also provides a degree of protection for community banks. Obtaining new banking charters and expanding into new markets can be a lengthy and complex process, limiting the ability of new entrants to disrupt the existing competitive landscape. While RRBI does not possess significant cost advantages or network effects, its focus on operational efficiency and customer service contributes to its ability to compete effectively.
However, the moat is narrow because the banking industry is inherently competitive. Larger banks have greater scale and resources, allowing them to offer a wider range of products and services. Furthermore, the rise of fintech companies and online lenders poses a growing threat to traditional banks, as they offer alternative financial solutions that may be more convenient or cost-effective for some customers. RRBI must continue to innovate and adapt to the changing competitive landscape to maintain its market position.
Financial Health & Profitability
Red River Bancshares demonstrates strong financial health, characterized by consistent revenue growth, robust profitability margins, and a solid balance sheet. The company's revenue has steadily increased over the past few years, with a 13.3% growth rate compared to the sector average of 9.3%. This growth is driven by both net interest income and fee income, reflecting the bank's ability to effectively manage its loan portfolio and generate revenue from various service offerings.
RRBI's profitability metrics are particularly impressive. The company's operating margin of 34.1% and net margin of 27.5% significantly exceed the sector averages of 22.0% and 17.8%, respectively. This indicates that RRBI is operating efficiently and effectively managing its expenses. The bank's return on equity (ROE) of 11.0% is also higher than the sector average of 8.5%, demonstrating its ability to generate profits from shareholders' equity.
The company's balance sheet is relatively conservative, with no total debt reported. The current ratio of 1.12 indicates that RRBI has sufficient liquid assets to cover its short-term liabilities. The quarterly financial history reveals a consistent trend of revenue and net income growth. The operating margin has remained relatively stable, indicating that the bank is maintaining its operational efficiency.
However, the negative free cash flow of $-16.19M is a concern. While the data does not provide a breakdown of the factors contributing to this negative FCF, it warrants further investigation. It is possible that the negative FCF is due to investments in growth initiatives or changes in working capital. Despite this concern, RRBI's overall financial health appears to be strong, supported by its robust profitability margins and solid balance sheet.
Valuation Assessment
Red River Bancshares appears attractively valued based on several key metrics. The company's price-to-earnings (P/E) ratio of 13.6x is lower than the sector average of 15.5x, suggesting that the stock is undervalued relative to its earnings. Similarly, the enterprise value-to-EBITDA (EV/EBITDA) ratio of 2.7x is significantly lower than the sector average of 3.5x, further indicating that the stock is undervalued relative to its earnings before interest, taxes, depreciation, and amortization.
Given RRBI's superior profitability margins and revenue growth compared to the sector, it is reasonable to expect the stock to trade at a premium to its peers. However, the current valuation suggests that the market is not fully recognizing the bank's operational efficiency and growth potential. The negative free cash flow is a potential concern that may be weighing on the valuation.
While a discounted cash flow (DCF) analysis would provide a more comprehensive valuation, the available data is insufficient to perform such an analysis. However, based on the relative valuation metrics, RRBI appears to be undervalued. The BCR proprietary quant model also supports this view, with a value score of 70/100.
The Buy rating is supported by the attractive valuation, coupled with the bank's strong financial health and growth prospects. As RRBI continues to execute its business strategy and deliver consistent financial performance, we believe that the stock has the potential to appreciate significantly. The market may be undervaluing the bank's ability to sustain its high profitability margins and generate future growth.
Risk & Uncertainty
Several risks could potentially impact Red River Bancshares' future performance. One significant risk is the potential for increased competition from larger national banks and fintech companies. These competitors may offer more competitive interest rates, a wider range of products and services, or more convenient online banking solutions. RRBI must continue to innovate and differentiate itself to maintain its market share.
Another risk is the potential for economic downturns in the Louisiana market. A decline in economic activity could lead to increased loan defaults and reduced demand for banking services. RRBI's loan portfolio is concentrated in Louisiana, making it particularly vulnerable to regional economic shocks. The bank must carefully manage its credit risk and diversify its loan portfolio to mitigate this risk.
Interest rate risk is also a concern. Changes in interest rates could impact RRBI's net interest margin and profitability. A rising interest rate environment could increase the cost of deposits, while a falling interest rate environment could reduce the yield on loans. The bank must effectively manage its asset-liability mix to mitigate interest rate risk.
Regulatory risk is another factor to consider. Changes in banking regulations could increase compliance costs or restrict the bank's ability to operate. RRBI must stay abreast of regulatory developments and ensure that it is in compliance with all applicable laws and regulations. The relatively high D/E ratio compared to the sector, while reported as zero debt, suggests a potential data anomaly or a unique capital structure that warrants further investigation and could introduce unforeseen risks.
Bulls Say / Bears Say
The Bull Case
BULL VIEWRed River Bancshares' superior profitability margins and efficient operations justify a premium valuation compared to its peers.
BULL VIEWThe bank's strong local presence and customer relationships in the Louisiana market provide a sustainable competitive advantage and growth opportunities.
BULL VIEWRRBI's conservative balance sheet and consistent financial performance make it a safe and attractive investment in the banking sector.
The Bear Case
BEAR VIEWIncreased competition from larger banks and fintech companies could erode Red River Bancshares' market share and profitability.
BEAR VIEWThe bank's concentration in the Louisiana market makes it vulnerable to regional economic downturns and industry-specific risks.
BEAR VIEWThe negative free cash flow and potential data anomalies in the D/E ratio raise concerns about the bank's long-term financial sustainability.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score RRBI and 4,400+ other equities.
RED RIVER BANCSHARES INC exhibits a 166% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
1.2%
Sector: 1.2%
Gross Margin
Pricing power and cost efficiency
0.0%
Sector: 0.0%
Operating Margin
Core business profitability
34.1%
Sector: 21.8%
Net Margin
Bottom-line profitability
27.5%
Sector: 17.7%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield2.48%
Yield Delta-70%
Income Projection audit
A $10,000 investment would generate approximately $74 annually in dividends at the current trailing rate.
