Red River Bancshares Increases Quarterly Dividend by 33.3%, Stock Up

Core Viewpoint - Red River Bancshares, Inc. (RRBI) announced a quarterly cash dividend increase of 33.3% to 12 cents per share, reflecting a strong commitment to returning capital to shareholders while maintaining robust capital ratios [1][5]. Dividend Growth - RRBI has increased its dividend payout four times in the past five years, with a five-year annualized dividend growth rate of 9.52% [2]. - The previous dividend hike was a 12.5% increase to nine cents per share in February 2024 [2]. - The current payout ratio stands at 7% of earnings, and the annual dividend yield is 0.85% based on a closing price of $56.45 on February 28, 2025 [2]. Capital Distribution Activities - In December 2024, RRBI renewed its stock repurchase program, authorizing up to $5 million in share buybacks for 2025 [3]. - In 2024, the company repurchased 0.3 million shares, with $1.1 million remaining under the previous repurchase plan [3]. Financial Position - As of December 31, 2024, RRBI reported total deposits of $2.8 billion, total loans of $2.08 billion, and cash and cash equivalents of $269.4 million [4]. - The common equity tier one capital ratio and total capital ratios were 17.12% and 18.28%, respectively, indicating strong liquidity and a solid balance sheet [4]. Market Performance - Over the past year, RRBI's shares have increased by 15.4%, compared to the industry's growth of 27.1% [5]. - RRBI currently holds a Zacks Rank 1 (Strong Buy), indicating positive market sentiment [6].