#United States #Houston #Cadence Bank #FCB Financial #Industry Bancshares

Cadence Bank's Second Quarter 2025 Financial Overview

Cadence Bank, listed on the New York Stock Exchange under the ticker CADE, has reported impressive financial outcomes for the second quarter ended June 30, 2025. The highlights of the report show substantial growth in net income and total assets, indicating a strong operational performance heading into the latter part of the year.

Financial Highlights

The reported net income available to common shareholders stood at $129.9 million, equating to $0.69 per diluted common share. Adjusted net income, which provides a clearer view of financial performance, was slightly higher at $137.5 million or $0.73 per diluted share. Such results reflect a resilient financial position despite market challenges.

Comparatively, these figures showed a slight decline when juxtaposed with the second quarter of the previous year, where the income recorded was $135.1 million, or $0.73 per share.

Revenue and Growth

Cadence Bank achieved an adjusted pre-tax, pre-provision net revenue (PPNR) of $206.0 million, which was a 7.9% increase from the same quarter last year, and an 8.4% rise compared to the prior quarter. This rise in revenue was largely driven by a net organic loan growth of $1.1 billion, representing an annualized growth rate of 12.6%. Additionally, core customer deposits increased by approximately $376 million, showcasing strong client retention and growth within existing relationships.

Strategic Acquisitions

During this quarter, Cadence Bank completed the acquisitions of several financial entities. On May 1, 2025, Cadence finalized the merger with FCB Financial Corp., which brought in assets worth about $604 million from the operations of the First Chatham Bank based in Savannah, Georgia. Further, on July 1, 2025, the acquisition of Industry Bancshares, Inc. was concluded, adding approximately $4.1 billion in assets from its various banking entities across Central and Southeast Texas.

CEO Dan Rollins expressed enthusiasm regarding these acquisitions, emphasizing that both integration efforts will enhance Cadence's position and service capabilities in crucial markets like Texas and Georgia, thereby expanding its customer base and market reach.

Dividends Declared

In addition to its financial achievements, Cadence Bank's Board of Directors declared cash dividends amounting to $0.275 per share of common stock and $0.34375 per share of Series A Preferred Stock, reflecting the company’s commitment to return value to its shareholders. The common stock dividend is set to be paid on October 1, 2025, to shareholders on record by September 15, 2025, while the preferred stock dividend will be distributed on August 20, 2025, for those on record by August 5, 2025.

Financial Stability

On the aspect of regulatory capital, Cadence Bank maintained a Common Equity Tier 1 Capital Ratio of 12.2%, and a Total Capital Ratio of 13.8%, indicating the bank's solid foundation as it navigates the evolving economic landscape. This strong capital structure provides a buffer against potential financial uncertainties, ensuring that Cadence remains a reliable institution for its depositors and clients.

Concluding Remarks

Looking forward, Cadence Bank appears well-positioned to sustain its growth trajectory given its robust pipeline of loans and strategic activities aimed at enhancing the customer experience. As the company moves into the latter half of 2025, the emphasis will be on leveraging its expanded footprint and fulfilling the needs of a broadening customer base. Rollins concluded, “Our continued balance sheet growth contributes positively to our revenue trajectory, and we look forward to building upon this momentum as we progress through the year.”

Upcoming Conference Call

To delve deeper into the quarterly results, Cadence Bank will host a conference call on July 24, 2025, at 10:00 AM Central Time. The call will include an interactive session between management and analysts, allowing stakeholders to engage directly regarding the bank’s financial performance and future outlook.