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Red River Bancshares (RRBI) Announces 12.5% Dividend Hike

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Red River Bancshares, Inc. (RRBI - Free Report) announced a quarterly cash dividend of 9 cents per share, indicating a 12.5% hike as compared to the preceding payout. This dividend will be paid out on Mar 21, 2024, to shareholders as of record on Mar 11.

Prior to this, RRBI had hiked its dividend by 14.3% to 8 cents per share on Feb 23, 2023. It has increased its dividend payout thrice in the past five years. Moreover, the company has a five-year annualized dividend growth rate of 8.46%. Currently, RRBI's payout ratio is 7% of its earnings.

Based on its closing price of $49.70 on Feb 23, 2024, Red River Bancshares currently has an annual dividend yield of 0.66%.

Additionally, the company renewed its stock repurchase program in December 2023. The plan authorizes RRBI to buy back up to $5 million worth of its shares from Jan 1, 2024, through Dec 31, 2024. During 2023, it repurchased 0.1 million shares at an aggregate cost of $5 million, thus completing its previous repurchase program.

Red River Bancshares had total deposits of $2.8 billion and cash and cash equivalents (comprising cash and due from banks and interest-bearing deposits) of $584.4 million as of Dec 31, 2023. The CET1 capital ratio was 17.24% on the same date. RRBI has decent liquidity and a strong balance sheet position, which help sustain consistency in its capital distribution plans.

Blake Chatelain, president and CEO of the company, said, “Our growing dividend reflects our continued focus on returning capital to shareholders, while remaining committed to maintaining strong capital ratios.”

In the past year, shares of RRBI have lost 1.2% compared with the industry’s downside of 22.7%.
 

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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

Earlier this month, WaFd, Inc. (WAFD - Free Report) announced a quarterly cash dividend of 26 cents per share, marking an increase of 4% from the prior payout. This dividend will be paid out on Mar 8, 2024, to shareholders of record as of Feb 23.

Prior to this, WAFD had hiked its dividend by 4.2% to 25 cents per share on Mar 10, 2023. The company has increased its dividend payout six times in the past five years.

Also, Southside Bancshares, Inc. (SBSI - Free Report) announced a quarterly cash dividend of 36 cents per share, which is 2.9% higher than the prior payout. This dividend will be paid out on Feb 29, 2024, to shareholders of record as of Feb 15.

SBSI hiked its dividend by 2.9% to 35 cents per share in February 2023. The current dividend marks the fourth hike in the past three years.

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