Cadence Bank (CADE) Q2 2025 earnings summary

Executive summary

• Completed acquisitions of FCB Financial Corp. (First Chatham Bank) and Industry Bancshares, expanding presence in Georgia and Texas and adding $4.7 billion in assets.

• Achieved strong organic and M&A-driven growth, with net organic loan growth of $1.1 billion (12.6% annualized) and robust deposit pipelines.

• Reported adjusted net income of $137.5 million ($0.73/share) and record adjusted pre-tax pre-provision net revenue of $206 million, up 8.4% from the prior quarter.

• Management remains confident in continued momentum and strong positioning for the remainder of 2025 and into 2026.

• Board declared quarterly cash dividends of $0.275 per common share and $0.34375 per Series A Preferred share.

Financial highlights

• Net interest revenue rose to $378.1 million, up 4.1% from Q1 2025; net interest margin was 3.40%, down 6 bps sequentially.

• Adjusted noninterest revenue was $98.2 million, up 15% sequentially, driven by mortgage banking, card fees, and wealth management.

• Adjusted noninterest expense was $270.4 million, up 5% from Q1 2025, mainly due to acquisition-related costs and business growth.

• Adjusted efficiency ratio improved to 56.7%.

• Tangible book value per share increased to $22.94; CET1 capital ratio at 12.2%.

Outlook and guidance

• Management expects 7–11% organic and 11–15% total loan growth for 2025, with 2–5% organic and 12–15% total core customer deposit growth.

• Total revenue growth projected at 10–12%; operating expenses to rise 7–9%.

• Net charge-offs expected to remain in the 20–30 bps range, similar to 2024 levels.

• Management anticipates continued operating leverage and strong EPS performance for the remainder of 2025.