Cadence Bank reported strong financial results in Q3 2025, with an adjusted net income of $152.8 million and an improved net interest margin of 3.46%. The bank saw an increase in deposits, loans, and securities portfolio, with a focus on integrating recent acquisitions to enhance its operational and financial position. Management expects further cost savings and efficiency improvements from these integrations in the coming year.
The bank’s loan pipelines remain robust, reflecting strong organic growth across various lending categories. While commercial real estate paydowns are a challenge, the bank is confident in its M&A strategy and commitment to steady credit performance. With a focus on in-footprint density and organic expansion, Cadence Bank is poised for continued success in the future.
Overall, Cadence Bank’s Q3 2025 earnings call highlighted the bank’s solid performance, growth opportunities, and strategic focus on improving efficiency and profitability. With a strong leadership team in place, the bank is well-positioned to navigate challenges and capitalize on opportunities in the banking industry. Summary:
1. Cadence Bancorporation is back in the buyback game faster than expected, with increased capital flexibility and readiness for share repurchases.
2. Commercial real estate prepayments and refinancing are offsetting portfolio growth momentum, with a focus on deepening density in the Southeast and Texas markets.
3. Fee businesses, including wealth and mortgage banking, are growing, with record revenue in Cadence Investment Services and a 13% increase in mortgage banking revenue.
Article:
Cadence Bancorporation is making strategic moves to enhance its financial position and market presence. With increased capital flexibility and readiness for share repurchases, the company is back in the buyback game sooner than anticipated. Commercial real estate prepayments and refinancing activities are cited as key factors offsetting portfolio growth momentum, particularly in the merchant CRE sector. Despite these challenges, Cadence remains focused on deepening its presence in the Southeast and Texas markets, with no immediate plans to expand beyond these regions.
In terms of revenue growth, Cadence’s fee businesses, including wealth and mortgage banking, are thriving. The company reported record revenue in Cadence Investment Services and a notable 13% increase in mortgage banking revenue before MSR adjustments. These positive financial results reflect the company’s strong performance and strategic focus on growing its core businesses.
From a financial perspective, Cadence saw a significant increase in adjusted net income from continuing operations, driven by balance sheet growth and net interest margin improvement. Deposits and loans also experienced growth, with the Industry acquisition contributing to the expansion of core customer deposits and loan portfolios. Despite challenges in the CRE sector, new origination activity remains robust across Cadence’s footprint.
Overall, Cadence Bancorporation’s strategic priorities and financial performance highlight its resilience and growth potential in the banking industry. With a focus on enhancing its market presence, expanding fee businesses, and maintaining strong credit performance, Cadence is well-positioned for continued success in the future. 1. Loan yields increased in the quarter due to added accretion, while securities yields also improved as a result of restructuring and purchase activity.
2. Total funding costs decreased as wholesale borrowings, broker deposits, and time deposits repriced, leading to improved expense management.
3. Adjusted non-interest revenue decreased due to seasonal declines in mortgage banking revenue, but mortgage banking revenue before MSR was up compared to the same quarter last year.
The quarterly earnings call highlighted the positive financial performance of the company, with an increase in loan yields and improved securities yields contributing to higher revenue. Total funding costs decreased as a result of strategic repricing of deposits, leading to improved expense management. Despite a decrease in adjusted non-interest revenue due to seasonal factors, mortgage banking revenue before MSR showed growth compared to the previous year. The company remains confident in its performance and market outlook, with projected growth and financial results expected to fall within previously shared guidance ranges for the rest of the year. Amidst uncertainties in the market, the company is focused on driving operating leverage and optimizing its funding mix to sustain growth and profitability. Summary:
1. The company is looking to move broker deposits out to improve their loan-to-deposit ratio.
2. The interest-bearing betas are expected to reach 50% with total deposits between 30s and 40s.
3. Non-interest-bearing deposits have remained consistent as a percentage of total deposits, with some fluctuations due to temporary influxes from customers and acquisitions.
Article:
In a recent earnings call, executives from a financial institution discussed their strategy for managing deposits and capital levels. The company is focused on shifting broker deposits out to improve their loan-to-deposit ratio. Additionally, they are expecting their interest-bearing betas to reach around 50%, with total deposits in the range of 30s to 40s. Non-interest-bearing deposits have remained consistent as a percentage of total deposits, despite some fluctuations due to temporary influxes from customers and acquisitions.
The executives highlighted the importance of good customer relationships in managing deposits, with one long-standing customer periodically bringing in large cash balances. This customer has been with the company for decades and plays a significant role in their deposit base. Looking ahead, the company expects brokered deposits to run off as they pay down balances with investment cash flow. With the recent acquisitions integrated and lower purchase accounting marks benefiting capital levels, the company is in a strong position to consider buybacks or additional deals in the future. Summary:
1. The company plans to continue being good stewards of capital, executing on their plans, and looking for opportunities to grow.
2. Deposits in the quarter were up $3.5 billion, with stable core legacy deposits and a decrease in higher-cost public funds.
3. The company expects NIM improvement through new loans, loan repricing, and reduced deposit costs, with a decline in accretion going forward.
Article:
In a recent earnings call, executives at the company discussed their focus on capital stewardship and growth opportunities. They highlighted their commitment to executing their plans and being good stewards of the capital they have. With a recent increase in deposits of $3.5 billion, the company saw stable core legacy deposits and a decrease in higher-cost public funds. This stability was attributed to the successful integration of recent transactions and the efforts of the team on the ground.
Additionally, the company discussed their expectations for net interest margin (NIM) improvement going forward. They explained that the NIM improvement would be driven by new loans at greater rates, loan repricing, and reduced deposit costs. They also mentioned that accretion is projected to decline in the future, but not be a significant factor in NIM improvement. Overall, the company remains optimistic about their growth prospects and is actively looking for opportunities to capitalize on the market environment. 1. The blog discusses the growth opportunities in markets like Savannah and the potential for further expansion in those areas.
2. The conversation between Ben Gerlinger and Catherine Mealor focuses on the impact of restructuring on bond yields and the potential for future growth in the bond book.
3. The discussion with Michael Rose delves into expense management, cost savings from recent acquisitions, and the outlook for operating leverage and revenue growth in the coming years.
Rewritten article:
Exploring Growth Opportunities in Emerging Markets
In a recent blog post, the focus was on the potential for growth in markets like Savannah and the opportunities for further expansion in those areas. The conversation between Ben Gerlinger and Catherine Mealor shed light on the impact of recent restructuring efforts on bond yields and the potential for future growth in the bond book. Additionally, the discussion with Michael Rose delved into expense management, cost savings from recent acquisitions, and the outlook for operating leverage and revenue growth in the coming years.
The blog highlighted the importance of tapping into emerging markets like Savannah to drive growth and expansion for businesses. With a focus on maximizing opportunities in these markets, companies can leverage the potential for increased revenue and market share. The conversation between industry experts further emphasized the significance of strategic planning and cost management in achieving long-term success.
As businesses navigate the ever-changing landscape of the financial industry, it is crucial to stay informed about market trends and opportunities for growth. By carefully analyzing data and making informed decisions, companies can position themselves for success in the competitive market environment. The insights shared in the blog and conversations with industry experts serve as valuable resources for businesses looking to capitalize on growth opportunities and drive sustainable growth in the future. Summary:
1. The blog discusses major changes in a deal, including an $80 million pickup from a deferred tax asset and a $140 million improvement on the capital side.
2. The discussion also touches on the company’s strategic initiatives, focusing on expanding within the nine states they are in and looking for opportunities in the Southeast and Texas.
3. There is confidence in strong growth rates for the fourth quarter and potential growth in 2026, with solid pipelines across all C and I segments and geographical regions.
Rewritten Article:
In a recent blog post, the discussion revolved around significant changes in a deal that had a notable impact on the company’s financial standing. One of the major highlights was an $80 million pickup from a deferred tax asset, along with a substantial $140 million improvement on the capital side. The thorough analysis and meticulous work done by the team were commended for their efforts in understanding and incorporating all the essential elements into the deal.
Furthermore, the article delved into the company’s strategic initiatives, emphasizing a focus on expansion within the nine states they currently operate in. There was a clear preference for increasing mass and density within their existing footprint in the Southeast and Texas, rather than seeking new territories. The company’s successful track record of announcing, closing, and integrating transactions in the current year showcased their readiness for potential growth opportunities.
Confidence in strong growth rates for the fourth quarter and beyond was evident in the discussion, with solid pipelines observed across all commercial and industrial segments and geographical regions. The diverse and widespread nature of the pipelines, supported by a robust market and customer demand, provided a positive outlook for future growth prospects. The team highlighted the continuous growth across all business lines and regions, emphasizing the strength and resilience of the company’s operations in the face of changing market dynamics. 1. Dan Rollins and Chris Bagley discuss loan growth, pricing, and competition in the Community Bank and commercial bank sectors.
2. Valerie Toalson provides insight into the one to three-year bucket of loans and how they contribute to the overall loan portfolio yield.
3. Discussion on credit performance, nonperforming loans, and expectations for paydown activity in the CRE sector.
Unique, detailed article:
In a recent earnings call, executives from a leading financial institution discussed various aspects of their business, including loan growth, pricing, and competition in the Community Bank and commercial bank sectors. Dan Rollins and Chris Bagley highlighted the competitive landscape in the industry, noting that while spreads have tightened in certain verticals, they have been able to maintain strong yields. Valerie Toalson provided insight into the one to three-year bucket of loans, explaining how the variable nature of these loans contributes to the overall loan portfolio yield.
The executives also addressed credit performance, nonperforming loans, and the movement in the paydown activity in the commercial real estate (CRE) sector. While there was some movement in nonperforming loans, particularly in income-producing CRE, the executives emphasized that it was part of the normal course of business and not a cause for concern. Chris Bagley further elaborated on the paydown activity in the CRE sector, noting that while there has been some delay in payoffs, the funding of new originations from the twenty-four and twenty-five vintage loans is expected to offset this activity.
Overall, the executives remained optimistic about the company’s performance and expressed confidence in their ability to navigate the challenges in the market. They highlighted the importance of monitoring credit quality and staying vigilant in managing risk in a dynamic environment. The discussion on fee income businesses also hinted at the company’s focus on diversifying revenue streams and enhancing profitability in the long term. Summary:
1. Mortgage business saw a seasonal dip in the third quarter but was up 13% year over year, showing commitment to the business.
2. Wealth management business continues to perform well, with September being the highest revenue peak and expectations of growth in the fourth quarter.
3. Securities gains of $4.3 million were offset by a negative $4.3 million in other non-interest revenue related to unwinding hedges, resulting in a net impact of zero on the P&L.
Rewritten Article:
The third quarter saw a seasonal dip in the mortgage business, although it was up by 13% compared to the previous year, showcasing a strong commitment to the industry. Despite the temporary setback, the mortgage business remains resilient, especially with the addition of talent in key markets across the footprint. Additionally, if interest rates drop below a five handle, there could be a surge in refinance activity, further driving changes in the market.
On the wealth management front, the business has been thriving, with September marking the highest revenue peak. Looking ahead to the fourth quarter, continued growth is expected, highlighting the strength of the industry as a whole. With a significant wealth transfer expected in the coming years, there is a strategic focus on capturing this opportunity and expanding the business even further.
A notable aspect of this quarter was the securities gains of $4.3 million, which were offset by a negative $4.3 million in other non-interest revenue related to unwinding hedges. While this resulted in a net impact of zero on the P&L, it is essential to understand the nuances behind these financial movements to gain a comprehensive view of the business performance.
Moreover, the wealth management team has recently welcomed two talented individuals to the team in the Houston and Atlantic markets, signaling a continued investment in talent and growth. These new additions are expected to contribute significantly to the business and help drive further success in the wealth management sector.
In conclusion, the financial results and opportunities ahead are a testament to the dedication and expertise of the team at hand. With strategic acquisitions, organic growth, and overall improvement in performance, the company is well-positioned for continued success in the future. The commitment to serving customers and communities remains a top priority, ensuring sustainable growth and value creation for all stakeholders involved.
