Shares of Red River Bancshares, Inc. (RRBI – Free Report) rose 2.2% during Friday’s trading session as it announced a quarterly cash dividend of 12 cents per share, indicating a 33.3% hike compared with the preceding payout. This dividend will be paid out on March 20, 2025, to shareholders of record as of March 10.
Prior to this, RRBI had hiked its dividend by 12.5% to nine cents per share in February 2024. It has increased its dividend payout four times in the past five years. Moreover, the company has a five-year annualized dividend growth rate of 9.52%. Currently, RRBI’s payout ratio is 7% of its earnings.
Based on its closing price of $56.45 on Feb. 28, 2025, Red River Bancshares currently has an annual dividend yield of 0.85%.
RRBI’s Other Capital Distribution Activities
In December 2024, the company renewed its stock repurchase program. The plan authorizes RRBI to buy back up to $5 million worth of its shares from Jan. 1, 2025, through Dec. 31, 2025. During 2024, it repurchased 0.3 million shares with $1.1 million worth of authorization remaining under its previous repurchase plan.
Red River Bancshares had total deposits of $2.8 billion, total loans of $2.08 billion, and cash and cash equivalents (comprising cash and due from banks and interest-bearing deposits) of $269.4 million as of Dec. 31, 2024.
Further, the common equity tier one capital ratio and total capital ratios were 17.12% and 18.28% on the same date, well above the regulatory requirements.
Thus, decent liquidity and a strong balance sheet position will likely enable sustainable capital distributions for RRBI.
Blake Chatelain, president and CEO of the company, said, “The board’s decision to increase our dividend demonstrates our continued focus on returning capital to shareholders, while maintaining our commitment to strong capital ratios.”
Price Performance & Zacks Rank of Red River Bancshares
In the past year, shares of Red River Bancshares have risen 15.4% compared with the industry’s 27.1% growth.
Image Source: Zacks Investment Research
Currently, RRBI sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Banks Taking Similar Steps
Last month, WaFd, Inc. (WAFD – Free Report) hiked its quarterly cash dividend by 3.8% to 27 cents per share. The dividend will be paid out on March 7, 2025, to its shareholders of record as of Feb. 21.
Before the recent hike, WAFD increased its dividend by 4% to 26 cents per share in February 2024. WaFd has raised its dividend four times in the past five years, with a growth rate of 4.1%. It has a dividend payout ratio of 37%.
Similarly, in January, Hancock Whitney Corp. (HWC – Free Report) hiked its quarterly cash dividend by 12.5% to 45 cents per share. The dividend will be paid out on March 17, 2025, to its shareholders of record as of March 5.
Before the recent hike, the bank increased its dividend by 33.3% to 40 cents per share in April 2024. HWC has raised its dividend thrice in the past five years, with a growth rate of 7.5%. It has a dividend payout ratio of 30%.
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