Loading...
01/10 20:16
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call presents a mixed outlook. Financial performance shows positive net income growth and improved net interest margin, but increased operational costs and mortgage revenue decline pose concerns. The Q&A reveals uncertainties in deposit cost management and loan growth. Share repurchase activity is positive, but the impact of debt management risks is unclear. Overall, the sentiment is balanced, leading to a neutral stock price prediction.
GAAP Net Income $134.1 million, or $0.72 per diluted common share, with adjusted net income from continuing operations of $135.6 million, or $0.73 per diluted common share, an increase of $0.04 or 6% compared to the second quarter of '24.
Core Customer Deposits Growth Over 11% on an annualized basis, with total deposit growth of approximately $985 million for the quarter, or 10.4% annualized.
Net Interest Margin 3.31%, up 4 basis points from last year, marking the fourth consecutive quarter of improvement.
Net Interest Income $361 million, an increase of $5.1 million in the quarter, with a year-over-year growth of 10%.
Adjusted EPS from Continuing Operations $0.73, up 6% from the second quarter of 2024 and up 37% from the same quarter last year.
Adjusted Efficiency Ratio 57.7% for the quarter, reflecting continued performance and operating efficiency.
Total Adjusted Non-Interest Revenue $88.8 million, increasing $3.2 million, or 3.7% in the third quarter, with a year-over-year growth of 10%.
Total Adjusted Non-Interest Expense Just over $260 million for the quarter, up $9.2 million, or 3.7%, primarily due to merit increases.
Net Charge-Offs $22.2 million, or 26 basis points annualized, down slightly from the 28 basis points in the second quarter.
Allowance for Credit Losses (ACL) Coverage 1.38% at the end of the quarter.
Tangible Book Value per Share Increased by $1.60.
CET1 Ratio 12.3% as of September 30th.
Total Capital Ratio 14.5% as of September 30th.
Tangible Equity to Tangible Assets Ratio Ended the quarter at 8.28%.
Deposit Growth: Total deposit growth was approximately $985 million for the quarter, or 10.4% annualized, with core customer deposits growing by $1.4 billion.
Loan Commitments: Generated meaningful new loan commitments, although loans were flat for the quarter due to payoff pressures.
Non-Interest Revenue: Non-interest revenue was $88.8 million on an adjusted basis, increasing $3.2 million, or 3.7% in the third quarter.
Net Interest Margin: Fourth consecutive quarter of improvement in net interest margin to 3.31%, up 4 basis points from last year.
Efficiency Ratio: Adjusted efficiency ratio of 57.7% for the quarter, reflecting continued performance and operational efficiency.
Share Repurchase: Repurchased just over 323,000 shares of stock, with year-to-date repurchases totaling 1.2 million shares.
Expense Management: Updated full-year 2024 adjusted expense guidance to a range of down 1% to 3% compared with 2023.
Capital Position: CET1 of 12.3% and total capital of 14.5% as of September 30th, with tangible book value per share increasing by $1.60.
Deposit Costs: Despite a stable deposit cost increase of only 2 basis points, the company faces competitive pressures in the deposit market, which may affect future deposit betas.
Loan Payoff Pressures: The company experienced flat loan balances due to significant payoff pressures, particularly in the energy sector, which may continue to impact loan growth.
Credit Quality: An increase in non-accrual loans was noted, primarily due to a few previously criticized credits, indicating potential credit quality risks.
Economic Factors: The company is optimistic about loan originations outpacing payoff pressures, but economic conditions and market activities could influence this outcome.
Regulatory Issues: The company adjusted its FDIC special deposit assessment estimate, reflecting ongoing regulatory compliance challenges.
Expense Management: Total adjusted non-interest expenses increased due to merit increases and other factors, indicating potential challenges in managing operational costs.
Market Conditions: The company noted that the market for deposits remains competitive, which could impact future deposit growth and costs.
M&A Opportunities: While the company is open to M&A opportunities, it prefers to grow within its existing footprint, which may limit expansion options.
Deposit Growth: Core customer deposits grew over 11% on an annualized basis, with total deposit growth of approximately $985 million for the quarter, or 10.4% annualized.
Loan Pipeline: The loan pipeline remains robust and diverse, with optimism that new loan originations will outpace payoff pressures.
Share Repurchase: Repurchased just over 323,000 shares of stock, with year-to-date repurchases totaling 1.2 million shares at a weighted average price of under $27.
Expense Management: Updated full-year 2024 adjusted expense guidance to a range of down 1% to 3% compared with 2023.
Credit Quality: Credit quality remains stable, with net charge-offs consistent with prior quarters and a solid allowance for credit losses at 1.38% of loans.
Net Interest Margin: Expect continued improvement in net interest margin in the near term, despite forward curve interest-rate reduction expectations.
Revenue Growth: Total adjusted revenue guidance remains at a growth range of 5% to 8%, with potential for higher-end adjustments based on margin improvements.
Expense Growth: Expect normalized expense growth to resume in 2025, with continued investments in growth, teams, and technology.
Loan Growth: Anticipate loan growth to improve as pipelines fill and payoff pressures stabilize.
Capital Position: Capital metrics remain strong, supporting growth and potential M&A opportunities.
Share Repurchase Program: Cadence Bank repurchased just over 323,000 shares of its stock during the third quarter of 2024. Year-to-date, the bank has repurchased 1.2 million shares at a weighted average price of under $27.
The earnings call presents a mixed picture. Strong financial metrics like increased net income and EPS are positive, but concerns about credit quality, competitive pressures, and market volatility offset these gains. The Q&A section highlights uncertainties, with management avoiding specifics on key issues. Despite a positive outlook on expenses and loan growth, the lack of a share repurchase program and potential economic disruptions dampen sentiment. Overall, these factors suggest a neutral stock price movement, as the positives are balanced by significant risks and uncertainties.
The earnings call presents a mixed picture: strong financial performance with increased net income and improved efficiency ratios, but concerns about loan growth in specific sectors and potential M&A hesitations. The Q&A section reveals management's unclear responses about macroeconomic impacts, which could raise investor caution. While there's optimism in loan growth and strategic plans, the lack of clarity and potential sectoral paydowns balance out the positives, suggesting a neutral stock price movement.
The earnings call presents a mixed picture. Financial performance shows modest growth in net income and deposits, but rising non-accrual loans and increased expenses are concerns. The Q&A highlights uncertainty around deposit costs and economic impacts. While share repurchases and strong capital ratios are positive, the lack of clear guidance on key metrics like deposit betas and economic impacts suggests caution. Overall, the sentiment is balanced, leading to a neutral outlook.
The earnings call presents a mixed outlook. Financial performance shows positive net income growth and improved net interest margin, but increased operational costs and mortgage revenue decline pose concerns. The Q&A reveals uncertainties in deposit cost management and loan growth. Share repurchase activity is positive, but the impact of debt management risks is unclear. Overall, the sentiment is balanced, leading to a neutral stock price prediction.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
