Cadence Bank (CADE) Q3 2025 earnings summary

Executive summary

• Completed the acquisition and integration of Industry Bancshares and First Chatham Bank, expanding presence in 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 available to common shareholders 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% from Q2 2025.

• Integration of acquired banks resulted in stable core deposit retention and enhanced product offerings.

• 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.

Financial highlights

• Net interest margin improved to 3.46% in Q3 2025, up 6 basis points from Q2 2025 and 15 basis points year-over-year.

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

• Adjusted pre-tax pre-provision net revenue reached $224.1 million, up 18.0% year-over-year and 8.8% sequentially.

• Noninterest revenue was $93.5 million, up from $85.9 million in Q3 2024 but down from $98.2 million in Q2 2025.

• Adjusted noninterest expense was $293.2 million, up from $260.4 million in Q3 2024 and $270.4 million in Q2 2025, primarily due to acquisition-related costs.

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 basis points range, similar to 2024 levels.

• Revenue and expense guidance narrowed to the lower end of prior ranges due to shorter time frame and clarity on year-end outlook.

• Operating leverage expected to improve as cost saves from acquisitions are realized in 2026.