Red River Bancshares (RRBI) Enters $10M Share Repurchase Agreement

On March 13, 2024, Red River Bancshares (NASDAQ: RRBI) entered into a stock repurchase agreement (the “Stock Repurchase Agreement”) with the Angela Katherine Simpson Irrevocable Trust UA 25-NOV-03 and the John Charles Simpson Jr. Irrevocable Trust UA 25-NOV-03 (the “Stockholders”) for the purchase by the Company of 200,000 shares of the Company’s common stock, no par value per share (the “Common Stock”) from the Stockholders in a privately-negotiated transaction for a total purchase price of approximately $10.0 million. The purchase price for the Common Stock reflects a discount to the 60-day volume weighted average price on March 5, 2024. The Stock Repurchase Agreement contains customary representations and warranties, covenants, and closing conditions, and the transaction is expected to close on or before March 15, 2024. The Stockholders, whose beneficiaries are the children of former Company director John C. Simpson, have informed the Company that they are entering into the Stock Repurchase Agreement in order to diversify their investment portfolios for estate planning purposes.

The Company’s Board of Directors and the Nominating and Corporate Governance Committee of the Board of Directors approved the repurchase. Prior to the transaction, the Angela Katherine Simpson Irrevocable Trust UA 25-NOV-03 and the John Charles Simpson Jr. Irrevocable Trust UA 25-NOV-03 directly and indirectly beneficially owned 414,739 and 421,407 shares of Common Stock, respectively, representing collectively 11.8% of the Company’s issued and outstanding Common Stock. Immediately following the transaction, the Angela Katherine Simpson Irrevocable Trust UA 25-NOV-03 and the John Charles Simpson Jr. Irrevocable Trust UA 25-NOV-03 will directly and indirectly beneficially own 314,739 and 321,407 shares of Common Stock, respectively, representing collectively 9.2% of the Company’s issued and outstanding Common Stock.

The repurchase was supplemental to the Company’s previously announced $5.0 million repurchase program and did not impact the amount of permitted repurchases thereunder. As of March 13, 2024, the Company had $5.0 million of remaining capacity under the repurchase program.

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