RED RIVER BANCSHARES INC 10-K

Item 3. Legal Proceedings The Company was named as a defendant in a purported class action lawsuit, Aeron Averette v. Red River Bancshares , filed on August 28, 2020, in the 19th Judicial District Court of the State of Louisiana. The lawsuit alleged the Bank wrongfully imposed multiple non-sufficient funds fees on what the plaintiff described as a single item presented for 33 Table of Contents payment, thereby resulting in the Bank breaching its customer account agreement, abusing its rights, and being unjustly enriched. The plaintiff purported to represent a class consisting of all account holders in Louisiana who incurred similar charges by the Bank within the applicable statute of limitations. The plaintiff sought unspecified damages, costs, fees, attorney’s fees, and general and equitable relief for herself and the purported class. The dispute was resolved by settlement agreement dated January 25, 2022, and the lawsuit was dismissed by the court on March 15, 2022. From time to time, the Company, including its subsidiaries, are or may be involved in various legal matters arising in the ordinary course of business. In the opinion of management, neither the Company, nor any of its subsidiaries, are involved in such legal proceedings that the resolution is expected to have a material adverse effect on the Company’s consolidated results of operations, financial condition, or cash flows. However, one or more unfavorable outcomes in these ordinary claims or litigation against the Company or its subsidiaries could have a material adverse effect for the period in which they are resolved. In addition, regardless of their merits or ultimate outcomes, such matters are costly, divert management’s attention, and may materially and adversely affect the reputation of the Company or its subsidiaries, even if resolved favorably. Item 4. Mine Safety Disclosures Not applicable. PART II