Form 4: Director Teddy Ray Price Acquires Shares of Red River Bancshares Inc. (RRBI) Through Compensation Program

Teddy Ray Price, a director of Red River Bancshares Inc., acquired 242 shares of common stock at $55.8 per share through the company's director compensation program.

Summary

• On January 31, 2025, Teddy Ray Price, a director of Red River Bancshares Inc. (RRBI), acquired 242 shares of common stock.
• The acquisition was made through the Issuer's Amended and Restated Director Compensation Program, where non-employee directors can elect to receive shares in lieu of cash director fees.
• The price per share was $55.8, reflecting the closing sales price of the common stock on the Nasdaq Stock Market on the transaction date.
• Following the transaction, Mr. Price directly owns 368,946 shares.
• Mr. Price also indirectly owns 65,005 shares through Kisatchie Industries, LLC, where he serves as Manager, and 6,061 shares through his spouse.
• Additionally, Mr. Price is expected to receive ownership of 16,500 shares held in an estate for which he serves as executor once the estate is settled.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. A director acquiring shares through a compensation program is generally a positive sign, indicating alignment with shareholder interests. The transaction itself is routine and expected.

Positives

• The acquisition of shares by a director demonstrates confidence in the company.
• The director compensation program aligns the interests of directors with those of shareholders.

Industry Context

Director share acquisitions are common in the banking industry as part of compensation packages and to align director interests with shareholder value. This transaction is typical for directors receiving stock in lieu of cash compensation.

Comparison to Industry Standards

• Director compensation programs involving stock grants are common among publicly traded companies, including regional banks like Hancock Whitney Corporation (HBHC) and Home Bancorp, Inc. (HBCP).
• These programs are designed to incentivize directors and align their interests with those of shareholders.
• The size of the stock grants typically depends on the company's compensation policies and the director's role and responsibilities.

Stakeholder Impact

• The transaction could have a slightly positive impact on shareholders as it aligns the director's interests with theirs.
• The director compensation program may impact the company's cash flow, as shares are issued instead of cash payments.

Key Dates