Core Points - Red River Bancshares, Inc. declared a quarterly cash dividend of $0.15 per share, an increase of $0.03 or 25% from the previous quarter's dividend of $0.12 per share [1] - The cash dividend is scheduled to be paid on September 18, 2025, to shareholders of record as of September 8, 2025 [1] - The increase in dividend reflects the company's commitment to returning capital to shareholders while maintaining strong capital ratios [1] Company Overview - Red River Bancshares, Inc. is the bank holding company for Red River Bank, established in 1999, providing a comprehensive suite of banking products and services for commercial and retail customers [2] - The bank operates 28 banking centers across Louisiana and has a combined loan and deposit production office in New Orleans [2] - Banking centers are located in various Louisiana markets, including Alexandria, Shreveport-Bossier City, Baton Rouge, Lake Charles, Covington, Lafayette, and New Orleans [2]

Core Viewpoint - Red River Bancshares (RRBI) has been upgraded to a Zacks Rank 1 (Strong Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are closely correlated with near-term stock price movements [4][6]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [4]. Company Performance and Outlook - The upgrade for Red River Bancshares indicates an improvement in the company's underlying business, which is expected to drive the stock price higher as investors respond positively to this trend [5][10]. - The Zacks Consensus Estimate for Red River Bancshares has increased by 9.6% over the past three months, with expected earnings of $5.86 per share for the fiscal year ending December 2025, showing no year-over-year change [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - Only the top 5% of Zacks-covered stocks receive a "Strong Buy" rating, indicating superior earnings estimate revisions and potential for market-beating returns [9][10].

Core Viewpoint - Red River Bancshares (RRBI) has shown strong stock performance, with a 12.2% increase over the past month and a 16.7% gain since the beginning of the year, outperforming both the Zacks Finance sector and the Zacks Banks - Southwest industry [1][2]. Performance Metrics - The stock reached a new 52-week high of $63 recently [1]. - Red River Bancshares has consistently beaten earnings estimates, reporting an EPS of $1.52 against a consensus estimate of $1.29 in its last earnings report [2]. Earnings Projections - For the current fiscal year, earnings are expected to be $5.86 per share on revenues of $120.78 million, reflecting an 18.38% increase in EPS and a 10.06% increase in revenues [3]. - For the next fiscal year, projected earnings are $6.02 per share on revenues of $125.45 million, indicating a year-over-year change of 2.79% in EPS and 3.87% in revenues [3]. Valuation Metrics - The stock trades at 10.8 times current fiscal year EPS estimates, below the peer industry average of 12.8 times [7]. - On a trailing cash flow basis, it trades at 11.4 times, compared to the peer group's average of 11.6 times [7]. Style Scores - Red River Bancshares has a Value Score of B, with Growth and Momentum Scores both at C, resulting in a combined VGM Score of B [6]. - The Zacks Rank for the stock is 2 (Buy), supported by rising earnings estimates, indicating potential for further growth [8].

Group 1 - The company announced a stock repurchase agreement for 100,000 shares at a purchase price of $5.1 million, reflecting a discount to the 10-, 20-, and 30-day volume weighted average price as of May 20, 2025 [1] - The repurchase is part of a previously announced $5.0 million repurchase program, which remains unaffected by this transaction, with approximately $4.7 million of remaining capacity under the program as of May 22, 2025 [1] - The company's President and CEO stated that the repurchase demonstrates a commitment to increasing shareholder value [1] Group 2 - Red River Bancshares, Inc. is the bank holding company for Red River Bank, which was established in 1999 and offers a comprehensive suite of banking products and services [2] - The bank operates 28 banking centers across Louisiana and has a combined loan and deposit production office in New Orleans [2] - The banking centers serve various markets in Louisiana, including Alexandria, Shreveport-Bossier City, Baton Rouge, Lake Charles, Covington, Lafayette, and New Orleans [2]

[PART I - Financial Information](index=5&type=section&id=PART%20I%20Financial%20Information) [Item 1. Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents Red River Bancshares' unaudited consolidated financial statements for Q1 2025, detailing balance sheets, income, comprehensive income, equity, and cash flow with notes [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) Total assets increased to $3.186 billion as of March 31, 2025, from $3.150 billion at year-end 2024, driven by growth in loans held for investment Consolidated Balance Sheet Highlights (Unaudited) | (in thousands) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$3,186,432** | **$3,149,594** | | Total Cash and Cash Equivalents | $252,155 | $268,975 | | Loans held for investment, net | $2,092,907 | $2,053,282 | | Total Deposits | $2,825,676 | $2,805,106 | | **Total Liabilities** | **$2,853,116** | **$2,829,855** | | **Total Stockholders' Equity** | **$333,316** | **$319,739** | [Consolidated Statements of Income](index=6&type=section&id=Consolidated%20Statements%20of%20Income) For Q1 2025, net income rose to $10.35 million from $8.19 million in Q1 2024, driven by a 15.2% increase in net interest income, with diluted EPS growing to $1.52 Q1 2025 vs Q1 2024 Income Statement Highlights (Unaudited) | (in thousands, except per share data) | For the Three Months Ended March 31, 2025 | For the Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net Interest Income | $24,610 | $21,363 | | Provision for credit losses | $450 | $300 | | Total Noninterest Income | $5,272 | $4,928 | | Total Operating Expenses | $16,588 | $15,873 | | **Net Income** | **$10,352** | **$8,188** | | **Diluted EPS** | **$1.52** | **$1.16** | [Consolidated Statements of Comprehensive Income](index=7&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Comprehensive income for Q1 2025 was $14.24 million, up from $5.98 million in Q1 2024, primarily due to net income growth and positive unrealized gains on securities Comprehensive Income (Unaudited) | (in thousands) | For the Three Months Ended March 31, 2025 | For the Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net income | $10,352 | $8,188 | | Total other comprehensive income (loss) | $3,889 | $(2,206) | | **Comprehensive Income (Loss)** | **$14,241** | **$5,982** | [Consolidated Statements of Changes in Stockholders' Equity](index=8&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Stockholders%27%20Equity) Stockholders' equity increased to $333.3 million by March 31, 2025, driven by net income and other comprehensive income, partially offset by cash dividends - Key drivers for the change in stockholders' equity in Q1 2025 include net income of **$10.35 million** and other comprehensive income of **$3.89 million**, offset by cash dividends of **$813,000**[23](index=23&type=chunk) - The cash dividend per share increased to **$0.12** in Q1 2025 from **$0.09** in Q1 2024[23](index=23&type=chunk) [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities was $13.9 million in Q1 2025, while investing activities used $50.5 million, resulting in a $16.8 million net decrease in cash Cash Flow Summary (Unaudited) | (in thousands) | For the Three Months Ended March 31, 2025 | | :--- | :--- | | Net cash provided by (used in) operating activities | $13,914 | | Net cash provided by (used in) investing activities | $(50,491) | | Net cash provided by (used in) financing activities | $19,757 | | **Net change in cash and cash equivalents** | **$(16,820)** | | Cash and cash equivalents - end of period | $252,155 | [Notes to Unaudited Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) These notes detail significant accounting policies, including new standard adoption, and provide breakdowns of securities, loans, deposits, fair value, capital, and EPS, confirming banking as a single segment - The company adopted ASU No. 2024-01 regarding stock compensation on January 1, 2025, which did not have a material impact on the financial statements[31](index=31&type=chunk) - Total securities were **$699.5 million** as of March 31, 2025, with no allowance for credit losses (ACL) recorded for either AFS or HTM securities due to a zero credit loss assumption[36](index=36&type=chunk)[42](index=42&type=chunk)[43](index=43&type=chunk) - The company's banking operations are considered a single reportable operating segment, as the Chief Operating Decision Maker (CODM) assesses performance on a company-wide basis[92](index=92&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2025 financial condition and results, highlighting net income, net interest margin, loan and deposit growth, asset quality, and liquidity, with net income up 11.2% from Q4 2024 [First Quarter 2025 Financial and Operational Highlights](index=27&type=section&id=FIRST%20QUARTER%202025%20FINANCIAL%20AND%20OPERATIONAL%20HIGHLIGHTS) Q1 2025 saw strong financial performance with net income of $10.4 million and diluted EPS of $1.52, improved net interest margin, loan and deposit growth, and a 33.3% dividend increase Q1 2025 Key Performance Metrics | Metric | Q1 2025 | Q4 2024 | | :--- | :--- | :--- | | Net Income | $10.4 million | $9.3 million | | Diluted EPS | $1.52 | $1.37 | | Return on Assets | 1.32% | 1.18% | | Return on Equity | 12.85% | 11.46% | | Net Interest Margin FTE | 3.22% | 3.09% | - The quarterly cash dividend was increased by **33.3%** to **$0.12** per common share[101](index=101&type=chunk) - Completed significant upgrades to online, mobile banking, and bill payment systems to improve digital services[101](index=101&type=chunk) [Results of Operations](index=30&type=section&id=RESULTS%20OF%20OPERATIONS) Net income for Q1 2025 was $10.4 million, a 26.4% increase year-over-year and 11.2% quarter-over-quarter, driven by higher net interest income and improved efficiency Net Income and EPS Comparison | (dollars in thousands, except per share data) | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | Net Income | $10,352 | $9,306 | $8,188 | | Diluted EPS | $1.52 | $1.37 | $1.16 | [Financial Condition](index=37&type=section&id=FINANCIAL%20CONDITION) As of March 31, 2025, total assets grew to $3.19 billion, supported by increases in deposits and loans held for investment, maintaining a strong capital position Balance Sheet Changes (Q1 2025 vs YE 2024) | (in millions) | March 31, 2025 | Dec 31, 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Assets | $3,186.4 | $3,149.6 | 1.2% | | Loans HFI | $2,114.7 | $2,075.0 | 1.9% | | Total Deposits | $2,825.7 | $2,805.1 | 0.7% | | Stockholders' Equity | $333.3 | $319.7 | 4.2% | [Liquidity and Asset-Liability Management](index=46&type=section&id=LIQUIDITY%20AND%20ASSET-LIABILITY%20MANAGEMENT) The company maintained strong liquidity with $1.66 billion accessible from various sources, managing interest rate risk with an asset-sensitive balance sheet within policy limits - As of March 31, 2025, the company had access to **$1.66 billion** from various liquidity sources, including the FHLB and Federal Reserve Discount Window[192](index=192&type=chunk) - The company's balance sheet is asset-sensitive, meaning assets reprice faster than liabilities, with a **+100 bps** rate shock simulated to increase net interest income by **1.8%** over 12 months[216](index=216&type=chunk) - Unfunded loan commitments totaled **$503.1 million** and standby letters of credit totaled **$14.6 million** as of March 31, 2025[204](index=204&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=50&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section incorporates by reference the detailed discussion on market risk, particularly interest rate sensitivity, from the MD&A, with interest rate volatility as the primary risk - Disclosures about market risk are presented in the MD&A section under "Interest Rate Sensitivity and Market Risk" and are incorporated here by reference[231](index=231&type=chunk) [Item 4. Controls and Procedures](index=51&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting during Q1 2025 - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by the report[232](index=232&type=chunk) - No changes in internal control over financial reporting occurred during Q1 2025 that have materially affected, or are reasonably likely to materially affect, internal controls[233](index=233&type=chunk) [PART II - Other Information](index=52&type=section&id=PART%20II%20Other%20Information) [Item 1. Legal Proceedings](index=52&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal matters in the ordinary course of business, with no expected material adverse effect on financial condition or results - The company states that it is not involved in any legal proceedings expected to have a material adverse effect on its financial condition or operations[235](index=235&type=chunk) [Item 1A. Risk Factors](index=52&type=section&id=Item%201A.%20Risk%20Factors) No material changes have occurred to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2024 - No material changes have been made to the risk factors disclosed in the Annual Report on Form 10-K for the year ended December 31, 2024[236](index=236&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=52&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company has a $5.0 million stock repurchase program for 2025, with no shares repurchased during Q1 2025, leaving the full amount available - The company did not repurchase any shares of its common stock during the first quarter of 2025[237](index=237&type=chunk) - As of March 31, 2025, **$5.0 million** remained available for repurchase under the 2025 stock repurchase program[237](index=237&type=chunk) [Item 3. Defaults Upon Senior Securities](index=52&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) None - None[238](index=238&type=chunk) [Item 4. Mine Safety Disclosures](index=52&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Not applicable - Not applicable[239](index=239&type=chunk) [Item 5. Other Information](index=52&type=section&id=Item%205.%20Other%20Information) None - None[240](index=240&type=chunk) [Item 6. Exhibits](index=53&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO and CFO certifications and financial data in Inline XBRL format - Exhibits filed include CEO and CFO certifications under Sections 302 and 906 of the Sarbanes-Oxley Act[241](index=241&type=chunk) - Financial statements and notes are provided in Inline XBRL format[241](index=241&type=chunk)

Core Insights - Red River Bancshares (RRBI) is experiencing solid improvement in earnings estimates, which may lead to continued short-term price momentum [1][2] - The rising trend in estimate revisions reflects growing analyst optimism regarding the earnings prospects of Red River Bancshares, which is expected to positively impact its stock price [2][3] Current-Quarter Estimate Revisions - For the current quarter, Red River Bancshares is expected to earn $1.42 per share, representing a +22.41% change from the previous year [6] - Over the last 30 days, the Zacks Consensus Estimate has increased by 5.97%, with one estimate moving higher and no negative revisions [6] Current-Year Estimate Revisions - The full-year earnings estimate stands at $5.71 per share, indicating a +15.35% change from the year-ago number [7] - The consensus estimate has increased by 6.37% over the past month, with one estimate moving higher and no negative revisions [7][8] Zacks Rank and Performance - Red River Bancshares has achieved a Zacks Rank 1 (Strong Buy) due to favorable estimate revisions, which historically correlate with strong stock performance [9] - Stocks with Zacks Rank 1 and 2 have significantly outperformed the S&P 500 [9] Bottom Line - The strong estimate revisions have led to a 13.3% increase in the stock price over the past four weeks, suggesting potential for further upside [10]

Group 1: Earnings Performance - Red River Bancshares reported quarterly earnings of $1.52 per share, exceeding the Zacks Consensus Estimate of $1.29 per share, and up from $1.16 per share a year ago, representing an earnings surprise of 17.83% [1] - The company has surpassed consensus EPS estimates for four consecutive quarters [2] - Revenue for the quarter ended March 2025 was $29.88 million, surpassing the Zacks Consensus Estimate by 5%, and up from $26.29 million year-over-year [2] Group 2: Stock Performance and Outlook - Red River Bancshares shares have declined approximately 5% since the beginning of the year, compared to a decline of 5.5% for the S&P 500 [3] - The company's earnings outlook is favorable, with current consensus EPS estimates of $1.32 for the coming quarter and $5.34 for the current fiscal year [7] - The Zacks Rank for Red River Bancshares is 2 (Buy), indicating expectations for the stock to outperform the market in the near future [6] Group 3: Industry Context - The Banks - Southwest industry, to which Red River Bancshares belongs, is currently in the top 5% of over 250 Zacks industries, suggesting strong performance potential [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Performance - Net income for Q1 2025 was $10.4 million, an increase of $1.0 million, or 11.2%, from Q4 2024, and up $2.2 million, or 26.4%, from Q1 2024[2] - Net income for the three months ended March 31, 2025, was $10,352,000, an increase of 11.25% from $9,306,000 in the previous quarter and 26.56% from $8,188,000 in the same quarter last year[52] - Earnings per share (diluted) increased to $1.52, up from $1.37 in the previous quarter and $1.16 in the same quarter last year, representing a year-over-year growth of 30.34%[52] - The efficiency ratio improved to 55.51%, down from 58.71% in the previous quarter and 60.37% a year ago, indicating better cost management[52] - Return on average assets improved to 1.32%, compared to 1.18% in the previous quarter and 1.07% a year ago, reflecting enhanced asset utilization[52] Income and Revenue - Net interest income for Q1 2025 was $24.6 million, which was $923,000, or 3.9%, higher than the prior quarter[11] - Noninterest income totaled $5.3 million for Q1 2025, an increase of $277,000, or 5.5%, compared to the previous quarter[15] - Net interest income for the quarter was $24,610,000, up from $23,687,000 in the previous quarter and $21,363,000 in the same quarter last year, reflecting a year-over-year increase of 15.66%[52] - Net interest income rose to $24,610 thousand for the three months ended March 31, 2025, up from $23,687 thousand in the previous quarter, representing an increase of 3.89%[54] Assets and Liabilities - As of March 31, 2025, total assets were $3.19 billion, an increase of $36.8 million, or 1.2%, from December 31, 2024[23] - Total assets reached $3,186,432,000, a 1.17% increase from $3,149,594,000 at the end of the previous quarter and a 2.74% increase from $3,101,750,000 a year ago[50] - Total deposits totaled $2.83 billion as of March 31, 2025, an increase of $20.6 million, or 0.7%, compared to December 31, 2024[5] - Total deposits rose to $2,825,676,000, a 0.25% increase from $2,805,106,000 in the previous quarter and a 2.85% increase from $2,747,125,000 a year ago[50] Loans and Credit Quality - Loans held for investment increased by $39.7 million, or 1.9%, to $2.11 billion as of March 31, 2025[23] - Nonperforming loans to loans held for investment ratio increased to 0.24%, compared to 0.16% in the previous quarter and 0.12% a year ago, suggesting a slight deterioration in credit quality[52] - The provision for credit losses was $450,000 for Q1 2025, an increase of $150,000 from the prior quarter[14] - The company reported a provision for credit losses of $450,000, an increase from $300,000 in both the previous quarter and the same quarter last year, indicating a cautious approach to potential credit risks[52] Stockholders' Equity - Total stockholders' equity increased by $13.6 million, or 4.2%, to $333.3 million as of March 31, 2025, driven by $10.4 million of net income[40] - Stockholders' equity increased to $326,707 thousand as of March 31, 2025, compared to $323,029 thousand at the end of the previous quarter, showing a growth of 0.83%[54] - The tangible common equity (non-GAAP) was reported at $331,770 thousand as of March 31, 2025, up from $318,193 thousand in the previous quarter, indicating a solid capital position[59] - The total stockholders' equity to assets ratio improved to 10.46% as of March 31, 2025, compared to 10.15% in the previous quarter, indicating a stronger capital structure[59] Dividends - The quarterly cash dividend increased by 33.3% to $0.12 per share for Q1 2025, up from $0.09 per share for each quarter in 2024[3] - Cash dividends per share increased to $0.12, up from $0.09 in the previous quarter and the same as the previous year, indicating a stable dividend policy[52] Other Metrics - The net interest margin FTE increased by 13 basis points to 3.22% for Q1 2025, compared to 3.09% for the prior quarter[12] - The net interest margin improved to 3.17% for the three months ended March 31, 2025, compared to 3.04% in the previous quarter, indicating a positive trend in profitability[54] - The cost of deposits decreased to 1.61% for the three months ended March 31, 2025, down from 1.71% in the previous quarter, reflecting improved funding efficiency[54] - Nonperforming assets (NPAs) totaled $5.2 million as of March 31, 2025, an increase of $1.9 million, or 58.6%, from December 31, 2024[32]

Core Viewpoint - Red River Bancshares, Inc. reported strong financial results for the first quarter of 2025, with significant increases in net income, net interest income, and net interest margin, alongside a notable rise in cash dividends to shareholders [2][3][4]. Financial Performance - Net income for Q1 2025 was $10.4 million, or $1.52 per diluted share, marking an 11.2% increase from Q4 2024 and a 26.4% increase from Q1 2024 [2][3]. - The quarterly return on assets was 1.32%, and the return on equity was 12.85% [2]. - Net interest income rose to $24.6 million, a 3.9% increase from the previous quarter, driven by higher securities yields and lower deposit rates [3][9]. - The net interest margin increased by 13 basis points to 3.22% compared to the prior quarter [10]. Balance Sheet Overview - Total assets as of March 31, 2025, were $3.19 billion, reflecting a 1.2% increase from December 31, 2024, primarily due to a $20.6 million rise in deposits [3][23]. - Loans held for investment increased by $39.7 million, or 1.9%, to $2.11 billion [27]. - Total deposits reached $2.83 billion, up by $20.6 million, or 0.7%, compared to the previous quarter [33]. Dividend and Stock Repurchase - The quarterly cash dividend was increased by 33.3% to $0.12 per share for Q1 2025, up from $0.09 per share in 2024 [3][4]. - The company has authorized a stock repurchase program of up to $5.0 million for 2025 [3]. Credit Quality and Provisions - The provision for credit losses was $450,000 for Q1 2025, an increase from $300,000 in the prior quarter, attributed to loan growth and economic uncertainties [13][32]. - Nonperforming assets totaled $5.2 million, or 0.16% of total assets, reflecting an increase from the previous quarter [31][45]. Noninterest Income and Operating Expenses - Noninterest income for Q1 2025 was $5.3 million, a 5.5% increase from the previous quarter, driven by higher brokerage income [14][15]. - Operating expenses decreased by 1.5% to $16.6 million, primarily due to lower data processing and loan expenses [18][19]. Market Position and Future Outlook - Red River Bank was ranked 14th among the top 50 best deposit franchises for banks with assets between $3.0 billion and $10.0 billion [3]. - The company remains focused on improving net interest margins and managing deposit costs while redeploying assets into higher-yielding investments [5][11].

Core Viewpoint - Red River Bancshares (RRBI) has received an upgrade to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Revisions - The Zacks rating system is based on the Zacks Consensus Estimate, which aggregates EPS estimates from sell-side analysts for the current and following years [2]. - The recent upgrade reflects an 8.5% expected increase in earnings per share to $5.37 for the fiscal year ending December 2025, along with a 5.8% increase in the Zacks Consensus Estimate over the past three months [9]. Impact of Institutional Investors - Changes in earnings estimates are closely correlated with stock price movements, largely due to institutional investors who adjust their valuations based on these estimates [5]. - An increase in earnings estimates typically leads to higher fair value calculations, prompting institutional investors to buy, which drives stock prices up [5][6]. Zacks Rank System - The Zacks Rank system categorizes stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [8]. - The upgrade of Red River Bancshares to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, indicating strong potential for market-beating returns in the near term [11].