Cadence Bank Earnings
Cadence Bank (NYSE: CADE) recently announced its financial results for the third quarter of 2025. With a focus on consistent growth and strategic acquisitions, the company reported impressive earnings, showcasing its resilience and adaptability in the competitive banking sector.
Earnings Summary
The reported quarterly net income available to common shareholders for Q3 2025 was $127.5 million, or $0.67 per diluted common share. When adjusted, net income increased to $152.8 million, or $0.81 per diluted common share. These figures suggest a solid earnings performance influenced by key strategic decisions and effective cost management.
Financial Results
The table below presents key financial metrics with year-over-year and quarter-over-quarter comparisons:
| Financial Metric | Q3 2025 | Q3 2024 | Q2 2025 | Year-over-Year % Change | Quarter-over-Quarter % Change |
|---|---|---|---|---|---|
| Net Income ($ million) | 127.5 | 134.1 | 129.9 | -4.9% | -1.8% |
| EPS ($) | 0.67 | 0.72 | 0.69 | -6.9% | -2.9% |
| Adjusted Net Income ($ million) | 152.8 | 135.6 | 137.5 | 12.7% | 11.2% |
| Adjusted EPS ($) | 0.81 | 0.73 | 0.73 | 11.0% | 11.0% |
| Net Interest Revenue ($ million) | 423.7 | 361.5 | 378.1 | 17.2% | 12.1% |
Cadence Bank's strong earnings are a result of notable increases in net interest revenue, which climbed by 17.2% compared to the same quarter last year. This increase is largely attributed to strategic acquisitions and an enhanced net interest margin, which measures the difference between interest income generated and interest paid to depositors.
Revenue Breakdown
Below is the breakdown of the bank's revenue performance by segments:
| Revenue Segment | Q3 2025 ($ million) | Q3 2024 ($ million) | Quarter-over-Quarter % Change |
|---|---|---|---|
| Net Interest Revenue | 423.7 | 361.5 | 12.1% |
| Noninterest Revenue | 93.5 | 85.9 | -4.8% |
| Adjusted Noninterest Revenue | 93.5 | 88.8 | -4.8% |
Analysis : Cadence Bank’s net interest revenue demonstrates significant growth, benefiting from higher yields on loans and securities, alongside lower funding costs. Furthermore, the acquisition of Industry Bancshares has positively impacted the revenue streams. However, noninterest revenue saw a decrease of 4.8% from the previous quarter, attributed to declines in mortgage banking revenue and other noninterest income.
Key Developments
During the quarter, Cadence Bank completed its acquisition of Industry Bancshares, Inc., which added approximately $4.1 billion in assets. Furthermore, the integration of First Chatham Bank into Cadence's operations further strengthened their market presence.
Other highlights include a $1.3 billion increase in total loans during the third quarter of 2025 and a $3.4 billion rise in total deposits, reflecting the success of recent acquisitions.
Comments from Company Officers
Dan Rollins, Chairman, and CEO remarked, "Our third quarter results reflect strong earnings, including PPNR and adjusted earnings per share, as we continue to fire on all cylinders across our Company. These results were achieved through steady loan growth, improvement in our net interest margin, continued operating efficiency, and stable credit quality. We are also very pleased to have completed the acquisition of Industry Bancshares, Inc."
Dividends and Share Repurchases
Currently, Cadence Bank did not repurchase any shares during the third quarter of 2025 and maintained 186.3 million outstanding shares. The bank's efforts appear concentrated on leveraging strategic acquisitions to catalyze growth and increase shareholder value.
Cadence Bank Stock Forecast
Based on analysts' interpretation of Cadence Bank’s robust performance, strategic acquisitions, and operational efficiency:
-
High Projection : Given the consistent growth and strategic acquisitions, the stock could see positive momentum, potentially reaching around $1.60 in the upcoming months as market confidence grows.
-
Low Projection : In the event of market volatility or unexpected regulatory changes, the stock might stabilize around $1.40.
Conclusion
Cadence Bank's third-quarter results illustrate a strong performance largely driven by strategic acquisitions and operating efficiency. While challenges remain in certain revenue segments, the bank's focus on sustainable growth and market expansion sets a promising trajectory. Moving forward, the effective integration of acquired assets and maintaining credit quality will be key in driving further growth and enhancing shareholder value.
Cadence Bank is set to continue its upward trajectory with a fortified presence in key markets, eager to capitalize on new opportunities.
