Cadence Bank (CADE) Q3 2025 earnings summary

Executive summary

• Completed and integrated acquisitions of Industry Bancshares and First Chatham Bank, expanding into Central Texas and Georgia, and adding $4.1 billion in assets.

• Achieved strong organic and acquisition-driven growth in loans and deposits, with improved net interest margin and operating efficiency.

• Reported adjusted net income of $152.8 million ($0.81 per diluted share) for Q3 2025, with adjusted pre-tax pre-provision net revenue of $224.1 million, up 8.8% sequentially.

• Maintained stable credit quality and strong customer retention through transitions.

Financial highlights

• Net interest margin improved to 3.46% in Q3 2025, up 6 bps sequentially and 15 bps year-over-year, driven by higher loan and securities yields and lower funding costs.

• Net interest revenue rose to $423.7 million, up from $378.1 million in Q2 2025 and $361.5 million in Q3 2024.

• Total adjusted revenue increased $41 million (9%) to $517 million quarter-over-quarter.

• Total loans grew by $1.3 billion (including $1.0 billion from acquisition), and total deposits increased by $3.4 billion, with core customer deposits up $3.1 billion.

• Adjusted efficiency ratio improved to 56.5% for Q3 2025.

Outlook and guidance

• 2025 loan growth expected at 11–12% year-over-year, with core customer deposits up 12–14%.

• Adjusted revenue growth forecasted at 10–11% and adjusted noninterest expense at 7–8% for 2025.

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

• Management expects continued focus on organic growth, operating efficiency, and stable credit quality, leveraging recent acquisitions.

• Revenue and expense guidance narrowed to lower end of prior range due to shorter time frame and better clarity.