Cadence Bank Reports Strong Financial Performance in Q3 2025 with Major Acquisitions Impact
Cadence Bank has reported noteworthy financial results for the third quarter of 2025, highlighting a robust growth trajectory fueled by strategic acquisitions and strong operational performance. The company announced a net income available to common shareholders of $127.5 million or $0.67 per diluted common share, alongside an adjusted net income of $152.8 million, equivalent to $0.81 per diluted common share.
Key highlights include a quarterly adjusted pre-tax pre-provision net revenue (PPNR) of $224.1 million, reflecting an 18% increase compared to Q3 2024, and an 8.8% rise from Q2 2025. The company also reported total loans growing by $1.3 billion during the quarter, attributing approximately $1 billion to acquisitions and $300 million to organic growth. This significant expansion in loans is indicative of Cadence’s enhanced market presence following its acquisitions of Industry Bancshares, which added roughly $4.1 billion in assets, and the operational conversions of First Chatham Bank, which were completed ahead of schedule.
Moreover, total deposits surged by $3.4 billion, driven by a $3.1 billion rise in core customer deposits, which underscores strong customer retention and relationship growth in the newly integrated operations. Cadence’s net interest margin improved to 3.46%, marking a 6 basis point increase compared to the previous quarter, primarily influenced by enhanced securities yields and reduced funding costs. Moreover, the company maintains a solid regulatory capital ratio, with Common Equity Tier 1 capital at 11.5% and total capital at 13.1%.
Dan Rollins, Chairman and CEO of Cadence Bank, expressed his pride in the third quarter's achievements, emphasizing the company's commitment to retaining strong customer relationships amid the integration of recent acquisitions. He noted, “Our third quarter results reflect strong earnings and operational efficiency as we continue to grow and build on our core business.”
On the credit side, the company displayed stable credit quality metrics, with net charge-offs at $23.6 million, remaining consistent with previous quarters despite minor fluctuations in the industry. The provision for credit losses stood at $32 million, reflecting the company's proactive measures to manage credit risks effectively, especially considering the impacts of recent acquisitions.
Overall, the successful integration of Industry Bancshares, coupled with the growth of First Chatham Bank's existing businesses further illustrates the scalability of Cadence’s operations, which is expected to support future growth and profitability. As Cadence Bank navigates through the fourth quarter, stakeholders and investors remain optimistic about the company's strategic positioning and its ability to leverage market opportunities effectively.
Looking ahead, Cadence plans to maintain its focus on expanding customer services and enhancing community engagement while managing operational efficiencies. The company's Q3 financial results reflect a solid foundation for continued growth and success in the banking sector, reinforcing its status as a key player in the industry.
Key highlights include a quarterly adjusted pre-tax pre-provision net revenue (PPNR) of $224.1 million, reflecting an 18% increase compared to Q3 2024, and an 8.8% rise from Q2 2025. The company also reported total loans growing by $1.3 billion during the quarter, attributing approximately $1 billion to acquisitions and $300 million to organic growth. This significant expansion in loans is indicative of Cadence’s enhanced market presence following its acquisitions of Industry Bancshares, which added roughly $4.1 billion in assets, and the operational conversions of First Chatham Bank, which were completed ahead of schedule.
Moreover, total deposits surged by $3.4 billion, driven by a $3.1 billion rise in core customer deposits, which underscores strong customer retention and relationship growth in the newly integrated operations. Cadence’s net interest margin improved to 3.46%, marking a 6 basis point increase compared to the previous quarter, primarily influenced by enhanced securities yields and reduced funding costs. Moreover, the company maintains a solid regulatory capital ratio, with Common Equity Tier 1 capital at 11.5% and total capital at 13.1%.
Dan Rollins, Chairman and CEO of Cadence Bank, expressed his pride in the third quarter's achievements, emphasizing the company's commitment to retaining strong customer relationships amid the integration of recent acquisitions. He noted, “Our third quarter results reflect strong earnings and operational efficiency as we continue to grow and build on our core business.”
On the credit side, the company displayed stable credit quality metrics, with net charge-offs at $23.6 million, remaining consistent with previous quarters despite minor fluctuations in the industry. The provision for credit losses stood at $32 million, reflecting the company's proactive measures to manage credit risks effectively, especially considering the impacts of recent acquisitions.
Overall, the successful integration of Industry Bancshares, coupled with the growth of First Chatham Bank's existing businesses further illustrates the scalability of Cadence’s operations, which is expected to support future growth and profitability. As Cadence Bank navigates through the fourth quarter, stakeholders and investors remain optimistic about the company's strategic positioning and its ability to leverage market opportunities effectively.
Looking ahead, Cadence plans to maintain its focus on expanding customer services and enhancing community engagement while managing operational efficiencies. The company's Q3 financial results reflect a solid foundation for continued growth and success in the banking sector, reinforcing its status as a key player in the industry.
Topics Financial Services & Investing）
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