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Cadence Bank's Fourth Quarter 2024 Financial Summary

Cadence Bank (NYSE: CADE) has announced its financial results for the fourth quarter and the year ending December 31, 2024, showcasing significant growth and stability. The bank recorded a net income of $514.1 million, translating to $2.77 per diluted common share. Adjusted results from operations available to common shareholders stand at $507.9 million, or $2.74 per share, marking an increase of 24.5% on a per-share basis compared to 2023.

Notably, Cadence Bank's annual adjusted pre-tax pre-provision net revenue (PPNR) from continuing operations was reported at $739.0 million, equivalent to 1.54% of average assets and reflecting a year-over-year increase of $126.7 million or 20.7%. This revenue boost underscores the bank's effective financial management and its ability to generate growth in net organic loans, which saw an increase of $1.2 billion or 3.8% on a year-over-year basis. Meanwhile, core customer deposits (excluding brokered deposits) climbed by $2.2 billion, representing a 6.9% growth.

Fourth Quarter Highlights

For Q4 2024, Cadence Bank reported quarterly net income of $130.3 million, equivalent to $0.70 per diluted common share. This is a slight decline from the previous quarter's figure but signifies a robust performance compared to the same period last year, where the earnings were substantially lower. Adjusted PPNR hit $184.0 million, though it exhibited a modest decrease of $5.9 million from Q3 2024.

The bank recorded net organic loan growth of $437.8 million during the fourth quarter, an annualized growth rate of 5.2%, complemented by a $259.6 million increase in core customer deposits, reflecting the strength of Cadence's banking relationships.

Moreover, the net interest margin improved to 3.38%, outperforming the previous quarter. Cadence Bank maintained a strong regulatory capital position, with Common Equity Tier 1 Capital at 12.4%, reaffirming the bank's financial soundness.

Increased Dividend Declaration

In alignment with its positive performance, the Board of Directors declared a quarterly cash dividend of $0.275 per common share, reflecting a $0.025 increase or a remarkable 10% boost from the previous dividend of $0.25 per common share. This dividend will be payable on April 1, 2025, to stockholders on record as of March 14, 2025.

As Cadence Bank navigates the ever-changing financial landscape, its successful strategies are evident in the significant capital generation, supportive of both future growth initiatives and enhanced shareholder returns. CEO Dan Rollins remarked, “This has been an exciting year for Cadence. We felt the momentum in our business throughout the year, and the benefits of our footprint and business diversification shone through.” He also mentioned that the robust capital generation will be essential for future growth, alongside the 25% surge in adjusted earnings from operations per common share for the year.

Conclusion

In conclusion, Cadence Bank’s financial results highlight its resilience and capacity for growth amidst a challenging banking environment. The strong performance in Q4 2024 not only showcases effective financial management but also positions the bank favorably as it heads into 2025, with a clear focus on expanding its lending, deposit base, and fee revenue.

Looking ahead, Cadence Bank aims to continue building upon its successes with a definitive strategy for sustained growth, fostering financial stability, and delivering value to its shareholders.