Cadence Bank (CADE) Q3 2024 earnings summary

Executive summary

• Reported GAAP net income of $134.1 million ($0.72 per diluted share) and adjusted net income of $135.6 million ($0.73 per share), up 6% sequentially and 37% year-over-year.

• Return on average tangible common equity was 14.04%; adjusted return was 14.21%.

• Core customer deposits grew over 11% annualized, with total deposit growth of $985.7 million (10.4% annualized), including $435 million in temporary overnight sweep activity.

• Loan balances were flat at $33.3 billion as new commitments were offset by paydowns, but the loan pipeline remains robust.

• Noninterest expense was $259.4 million, down from $274.4 million year-over-year.

Financial highlights

• Net interest income increased to $361.5 million, with average loans up $335 million linked quarter.

• Adjusted noninterest revenue was $88.8 million, up 3.7% sequentially and 10% year-over-year.

• Adjusted noninterest expense was just over $260 million, up 3.7% sequentially but down 1.5% year-over-year.

• Adjusted efficiency ratio was 57.7%, up from 56.7% in the previous quarter.

• Tangible book value per share increased to $21.68, up $1.60 from the prior quarter.

Outlook and guidance

• Management expects mid-single digit loan and core deposit growth for FY 2024.

• Total adjusted revenue is projected to grow 5–8% year-over-year; adjusted noninterest expense is expected to decline 1–3%.

• Net charge-offs are expected to remain in the 20–30 basis point range, similar to 2023.

• Expense growth expected to normalize in 2025, with revenue growth anticipated to outpace expenses.

• Loan growth expected to resume as payoff pressures subside and pipelines remain strong.