Item 5. Market for Registrant’s Common Equity
Item 5. Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities
Market Information for Common Stock
Shares of our common stock are traded on the Nasdaq Global Select Market under the symbol “RRBI.” Our shares have been traded on the Nasdaq Global Select Market since May 3, 2019. Prior to that date, there was no public trading market for our common stock.
Holders of Record
As of March 5, 2021, there were approximately 300 holders of record of our common stock.
Dividends and Dividend Policy
Taking into consideration our performance and capital levels, we began paying quarterly cash dividends of $0.06 per share in 2020, resulting in $0.24 per share in cash dividends for the year ended December 31, 2020. Although we anticipate paying quarterly dividends going forward, we have no obligation to continue paying dividends, and we may change our dividend policy at any time without notice to our shareholders. Any future determination relating to dividends will be made at the discretion of our board of directors and will depend on a number of factors, including our historical and projected financial condition, liquidity, and results of operations; our capital levels and needs; any acquisitions or potential acquisitions that we are considering; contractual, statutory, and regulatory prohibitions and other limitations; general economic conditions; and other factors deemed relevant by our board of directors.
For information on regulatory restrictions on our and the Bank's present and future ability to pay dividends, see "Item 1. Business - Supervision and Regulation - Bank Holding Company Regulation - Regulatory Restrictions on Dividends; Source of Strength" and " - Bank Regulation - Regulatory Restrictions on Dividends."
Use of Proceeds from Registered Sales of Equity Securities
On May 7, 2019, we sold 663,320 new shares of our common stock at a public offering price of $45.00 per share in our IPO, including 90,000 shares sold pursuant to the exercise of the underwriters’ option to purchase additional shares in the offering. The offer and sale of shares in the IPO were registered under the Securities Act pursuant to a registration statement on Form S-1 (File No. 333-230798), which the SEC declared effective on May 2, 2019. FIG Partners, LLC and Stephens Inc. acted as underwriters. The offering commenced on May 3, 2019, and did not terminate until the sale of all of the shares offered. There has been no material change in the planned use of proceeds from our IPO as described in our Prospectus that was filed with the SEC on May 3, 2019, pursuant to Rule 424(b)(4) under the Securities Act.
Issuer Purchases of Equity Securities
On August 27, 2020, our board of directors approved a stock repurchase program. The repurchase program authorizes us to purchase up to $3.0 million of our outstanding shares of common stock through August 27, 2021. Repurchases may be made from time to time in the open market at prevailing prices and based on market conditions, or in privately negotiated transactions. We did not repurchase any of our shares of common stock under a share repurchase plan during the three months ended December 31, 2020. As of December 31, 2020, approximately $2.9 million remains available to repurchase shares under the stock repurchase program.
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Item 6. Selected Financial Data
The following tables set forth selected historical consolidated financial information for each of the periods indicated. The historical financial information as of and for the years ended December 31, 2020 and 2019, except for the selected ratios, is derived from our audited consolidated financial statements included elsewhere in this document. The historical financial information as of and for the years ended December 31, 2018, 2017, and 2016, except for the selected ratios, is derived from our audited consolidated financial statements that are not included in this document. Our historical results may not be indicative of our future performance.
You should read the selected historical consolidated financial and operating data set forth below in conjunction with “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations,” as well as our consolidated financial statements and the related notes included in "Item 8. Financial Statements and Supplementary Data" of this Annual Report on Form 10-K. The selected historical consolidated financial information presented below contains financial measures that are not presented in accordance with GAAP and have not been audited. See “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations - Non-GAAP Financial Measures” for a reconciliation of non-GAAP financial measures.
As of and for the Years Ended December 31,
(in thousands) 2020 2019 2018 2017 2016
Selected Period End Balance Sheet Data:
Total assets $ 2,642,634 $ 1,988,225 $ 1,860,588 $ 1,724,264 $ 1,644,877
Cash and due from banks 29,537 25,937 34,070 29,819 27,588
Interest-bearing deposits in other banks 417,664 107,355 117,836 29,848 92,921
Securities available-for-sale 498,206 335,573 307,877 345,344 304,766
Securities held-to-maturity — — — 8,991 10,193
Loans held for sale 29,116 5,089 2,904 1,867 3,146
Loans held for investment 1,588,446 1,438,924 1,328,438 1,247,666 1,146,675
Allowance for loan losses 17,951 13,937 12,524 10,895 10,544
Noninterest-bearing deposits 943,615 584,915 547,880 504,286 475,164
Interest-bearing deposits 1,396,745 1,136,205 1,097,703 1,021,699 997,725
Total deposits 2,340,360 1,721,120 1,645,583 1,525,985 1,472,889
Junior subordinated debentures — — 11,341 11,341 11,341
Total stockholders’ equity 285,478 251,898 193,703 178,103 151,823
Selected Income Statement Data:
Interest and dividend income $ 77,378 $ 73,725 $ 66,886 $ 58,405 $ 54,256
Interest expense 8,378 10,086 7,649 6,560 6,430
Net interest income 69,000 63,639 59,237 51,845 47,826
Provision for loan losses 6,293 1,810 1,990 1,555 1,658
Noninterest income 23,167 15,970 14,531 12,714 12,902
Operating expenses 51,406 47,335 43,422 40,473 38,361
Income before income tax expense 34,468 30,464 28,356 22,531 20,709
Income tax expense 6,323 5,640 5,300 8,546 5,607
Net income $ 28,145 $ 24,824 $ 23,056 $ 13,985 $ 15,102
Common stock cash dividends $ 1,759 $ 1,326 $ 1,009 $ — $ —
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As of and for the Years Ended December 31,
(dollars in thousands, except per share data) 2020 2019 2018 2017 2016
Per Common Share Data: (1)
Earnings per share, basic
$ 3.84 $ 3.51 $ 3.43 $ 2.16 $ 2.37
Earnings per share, diluted
$ 3.83 $ 3.49 $ 3.41 $ 2.14 $ 2.35
Book value per share
$ 38.97 $ 34.48 $ 29.23 $ 26.50 $ 23.86
Tangible book value per share (2,3)
$ 38.76 $ 34.27 $ 28.99 $ 26.27 $ 23.62
Cash dividends per share
$ 0.24 $ 0.20 $ 0.15 $ — $ —
Shares outstanding 7,325,333 7,306,221 6,627,358 6,721,146 6,362,910
Weighted average shares outstanding, basic
7,322,158 7,072,689 6,716,943 6,483,958 6,378,568
Weighted average shares outstanding, diluted
7,345,045 7,115,514 6,756,102 6,526,828 6,416,708
Summary Performance Ratios:
Return on average assets
1.22 % 1.30 % 1.29 % 0.82 % 0.95 %
Return on average equity
10.39 % 10.86 % 12.46 % 8.45 % 10.09 %
Net interest margin
3.09 % 3.47 % 3.42 % 3.14 % 3.11 %
Net interest margin (FTE) (4)
3.14 % 3.52 % 3.44 % 3.20 % 3.21 %
Efficiency ratio (5)
55.77 % 59.46 % 58.86 % 62.69 % 63.17 %
Loans HFI to deposits ratio
67.87 % 83.60 % 80.73 % 81.76 % 77.85 %
Noninterest-bearing deposits to deposits ratio
40.32 % 33.98 % 33.29 % 33.05 % 32.26 %
Noninterest income to average assets
1.00 % 0.84 % 0.81 % 0.74 % 0.81 %
Operating expense to average assets
2.22 % 2.49 % 2.43 % 2.37 % 2.42 %
Summary Credit Quality Ratios:
Nonperforming assets to total assets
0.16 % 0.33 % 0.38 % 0.60 % 0.36 %
Nonperforming loans to loans HFI
0.21 % 0.37 % 0.49 % 0.83 % 0.49 %
Allowance for loan losses to loans HFI
1.13 % 0.97 % 0.94 % 0.87 % 0.92 %
Net charge-offs to average loans
0.14 % 0.03 % 0.03 % 0.10 % 0.06 %
Capital Ratios:
Total stockholders’ equity to total assets
10.80 % 12.67 % 10.41 % 10.33 % 9.23 %
Tangible common equity to tangible assets (2,6)
10.75 % 12.60 % 10.34 % 10.25 % 9.14 %
Total risk-based capital to risk-weighted assets
18.68 % 18.02 % 16.55 % 15.91 % 14.56 %
Tier I risk-based capital to risk-weighted assets
17.55 % 17.07 % 15.62 % 15.06 % 13.69 %
Common equity Tier I capital to risk-weighted assets
17.55 % 17.07 % 14.80 % 14.20 % 12.78 %
Tier I risk-based capital to average assets
10.92 % 12.82 % 11.40 % 11.21 % 10.04 %
(1) 2017 and 2016 amounts adjusted to give effect to the 2018 2-for-1 stock split.
(2) Non-GAAP financial measure. For calculations and reconciliations to GAAP of non-GAAP financial measures, see "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations - Non-GAAP Financial Measures" in this Annual Report on Form 10-K.
(3) We calculate tangible book value per common share as total stockholders’ equity, less intangible assets, divided by the outstanding number of shares of our common stock at the end of the relevant period.
(4) Net interest margin FTE includes an FTE adjustment using a 21% federal income tax rate for 2020, 2019, and 2018, and a 35% tax rate for 2017 and 2016 on tax-exempt securities and tax-exempt loans.
(5) Efficiency ratio represents operating expenses divided by the sum of net interest income and noninterest income.
(6) We calculate tangible common equity as total stockholders’ equity, less intangible assets, net of accumulated amortization, and we calculate tangible assets as total assets, less intangible assets, net of accumulated amortization.
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