Cadence Bank’s third quarter results were shaped by the integration of recent acquisitions and changes in its deposit mix, leading to a negative market reaction. Management attributed quarterly performance to the completed acquisition and integration of Industry Bank Shares, noting the positive impact on both core deposit growth and loan balances. CEO Dan Rollins highlighted that the successful disposal of Industry’s securities portfolio and the retention of core customer deposits were key factors, while CFO Valerie Toalson pointed to improved net interest margin and stable credit results as additional contributors to the quarter. The bank also acknowledged a seasonal decline in mortgage banking revenue and noted that most of the increase in expenses was tied to merger-related compensation and integration costs.
Is now the time to buy CADE? Find out in our full research report (it’s free for active Edge members).
Cadence Bank (CADE) Q3 CY2025 Highlights:
- Revenue: $519.3 million vs analyst estimates of $522.5 million (15.1% year-on-year growth, 0.6% miss)
- Adjusted EPS: $0.81 vs analyst estimates of $0.77 (4.6% beat)
- Adjusted Operating Income: $194.1 million vs analyst estimates of $223.5 million (37.4% margin, 13.1% miss)
- Market Capitalization: $6.80 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Cadence Bank’s Q3 Earnings Call
- Manan Gosalia (Morgan Stanley) asked about the drivers behind the lower revenue and loan growth guidance. CEO Dan Rollins explained that shorter time left in the year increased forecast precision and that organic loan growth, though slightly weaker this quarter, remains a focus.
- Jared Shaw (Barclays) questioned the stability of the deposit mix, particularly non-interest-bearing deposits. CFO Valerie Toalson clarified that after adjusting for acquisitions and temporary customer inflows, non-interest-bearing balances remain consistent with historical trends.
- Casey Haire (Autonomous) sought clarity on the retention and pricing of deposits from the Industry acquisition. Toalson noted the retained deposits were stable and that the cost of Industry’s CDs was comparable or lower than Cadence’s existing rates.
- Catherine Mealor (KBW) inquired about the sustainability of higher securities yields post-restructuring. Toalson stated that newly purchased securities carry higher yields and will provide a further, though modest, benefit in the following quarter.
- Michael Rose (Raymond James) asked about the timeline for realizing cost savings from the Industry deal. Management indicated that material cost savings will be recognized in 2026 as integration efforts are finalized and merger-related expenses diminish.
Catalysts in Upcoming Quarters
In the coming quarters, StockStory’s analysts will monitor (1) the pace of deposit mix improvement and reduction of higher-cost funding, (2) realization of cost synergies and operating leverage from recent acquisitions, and (3) organic loan growth across newly expanded markets. Additionally, we will be tracking the impact of commercial real estate trends and the bank’s ability to sustain net interest margin gains as competitive pressures and rate cycles evolve.
Cadence Bank currently trades at $36.49, down from $37.01 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free for active Edge members).
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