Core Insights - Cadence Bank reported strong operating performance for Q2 2025, driven by organic balance sheet growth and recent acquisitions, including First Chatham and Industry Bancshares [3][15][24][25] Financial Performance - Net income available to common shareholders for Q2 2025 was $129.9 million, or $0.69 per diluted common share, compared to $135.1 million, or $0.73 per diluted common share in Q2 2024 [4][15] - Adjusted net income for Q2 2025 was $137.5 million, or $0.73 per diluted common share, up from $127.9 million, or $0.69 per diluted common share in Q2 2024 [4][15] - Return on average assets was 1.09% for Q2 2025, down from 1.15% in both Q2 2024 and Q1 2025 [5][38] - Adjusted return on average assets was 1.14% for Q2 2025, compared to 1.09% in Q2 2024 [5][38] Revenue and Expenses - Net interest revenue for Q2 2025 was $378.1 million, an increase from $356.3 million in Q2 2024 [6][15] - Noninterest revenue was $98.2 million for Q2 2025, down from $100.7 million in Q2 2024 [16][15] - Noninterest expense for Q2 2025 was $272.9 million, compared to $256.7 million in Q2 2024 [20][15] Balance Sheet Highlights - Total assets increased to $50.4 billion as of June 30, 2025, up from $47.7 billion a year earlier [35][15] - Loans and leases net of unearned income rose to $35.5 billion, reflecting a net organic loan growth of $1.1 billion, or 12.6% annualized [9][15] - Total deposits were $40.5 billion as of June 30, 2025, a slight increase from $40.3 billion at the end of Q1 2025 [10][15] Credit Quality - Net charge-offs for Q2 2025 were $21.2 million, or 0.24% of average net loans and leases, compared to $22.6 million, or 0.28% in Q2 2024 [12][15] - The allowance for credit losses was $474.7 million, or 1.34% of total loans and leases, compared to 1.41% a year earlier [12][15] Capital Management - Total shareholders' equity was $5.9 billion at June 30, 2025, up from $5.3 billion a year earlier [22][15] - Common Equity Tier 1 capital ratio was 12.2% as of June 30, 2025 [22][15] Strategic Transactions - The acquisition of First Chatham on May 1, 2025, added approximately $604 million in assets [15][24] - The acquisition of Industry Bancshares on July 1, 2025, added approximately $4.1 billion in assets [15][25]

Core Viewpoint - Analysts forecast that Cadence (CADE) will report quarterly earnings of $0.69 per share, indicating no change from the previous year, with anticipated revenues of $468.8 million, reflecting a 2.6% increase year-over-year [1]. Earnings Projections - The consensus EPS estimate has been revised upward by 6.1% over the past 30 days, indicating a collective reassessment by analysts [2]. - Revisions to earnings projections are crucial for predicting investor behavior and are strongly linked to short-term stock price performance [3]. Key Metrics Estimates - Analysts predict an 'Adjusted Efficiency Ratio fully tax equivalent' of 57.5%, up from 56.7% in the same quarter last year [5]. - The 'Net Interest Margin' is expected to be 3.5%, compared to 3.3% in the same quarter last year [5]. - The consensus estimate for 'Average Balance - Total interest earning assets' is $43.77 billion, slightly down from $43.85 billion year-over-year [6]. - 'Non-Performing Loans' are estimated at $236.51 million, up from $216.75 million in the previous year [6]. - 'Non-Performing Assets' are projected at $247.37 million, compared to $221.54 million last year [7]. - 'Total noninterest income' is expected to reach $89.86 million, down from $100.66 million year-over-year [7]. - 'Net Interest Income' is projected at $378.04 million, compared to $356.32 million in the same quarter last year [8]. - 'Credit card, debit card and merchant fees' are expected to be $12.38 million, slightly down from $12.77 million last year [9]. - 'Other noninterest income' is forecasted at $24.46 million, down from $40.06 million year-over-year [9]. - 'Deposit Service charges' are expected to reach $18.73 million, up from $17.65 million last year [9]. - 'Mortgage banking' is projected to reach $7.91 million, compared to $6.17 million in the previous year [10]. Stock Performance - Cadence shares have returned +12.8% over the past month, outperforming the Zacks S&P 500 composite's +5.9% change, with a Zacks Rank 2 (Buy) indicating expected outperformance in the near future [11].

Core Viewpoint - Cadence (CADE) is anticipated to report flat earnings of $0.69 per share for the quarter ended June 2025, with revenues expected to increase by 2.6% to $468.8 million compared to the previous year [3][12]. Earnings Expectations - The upcoming earnings report is scheduled for July 23, and the stock may rise if actual earnings exceed expectations, while a miss could lead to a decline [2]. - The consensus EPS estimate has been revised 7.55% higher in the last 30 days, indicating a more optimistic outlook from analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP for Cadence is +2.90%, suggesting a higher Most Accurate Estimate compared to the Zacks Consensus Estimate, which indicates a likelihood of beating the consensus EPS [12]. - A positive Earnings ESP is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) [10]. Historical Performance - Cadence has consistently beaten consensus EPS estimates in the last four quarters, with a notable surprise of +10.94% in the last reported quarter [13][14]. - The company’s ability to exceed expectations in the past may influence future earnings estimates [13]. Industry Context - Trustmark (TRMK), another player in the Zacks Banks - Southeast industry, is expected to report earnings of $0.86 per share, reflecting a year-over-year increase of +30.3% [18]. - Trustmark has an Earnings ESP of -5.81% despite a Zacks Rank of 2 (Buy), making it challenging to predict a beat on the consensus EPS [19].

Core Viewpoint - Investors are encouraged to consider Cadence (CADE) due to solid improvements in earnings estimates and positive short-term price momentum [1] Earnings Estimate Revisions - Analysts are increasingly optimistic about Cadence's earnings prospects, leading to higher estimates that are expected to positively impact the stock price [2] - The Zacks Rank system indicates strong agreement among analysts in raising earnings estimates, significantly increasing consensus estimates for the next quarter and full year [3] Current-Quarter Estimates - The earnings estimate for the current quarter is $0.69 per share, unchanged from the previous year, with a 5.19% increase in the Zacks Consensus Estimate over the last 30 days [6] - There have been two upward revisions with no negative changes in estimates for the current quarter [6] Current-Year Estimates - The full-year earnings estimate stands at $2.92 per share, reflecting a 6.57% increase from the previous year [7] - Over the past month, two estimates have been revised upward, contributing to a 5.92% increase in the consensus estimate [8] Zacks Rank - Cadence has achieved a Zacks Rank 1 (Strong Buy) due to favorable estimate revisions, which historically correlate with significant outperformance compared to the S&P 500 [9] Stock Performance - The stock has gained 13.2% over the past four weeks, driven by solid estimate revisions and positive earnings growth prospects [10]

Core Insights - Cadence (CADE) has a strong track record of beating earnings estimates, particularly in the last two quarters with an average surprise of 6.94% [1] - The most recent earnings report showed a surprise of 10.94%, with actual earnings of $0.64 per share against an expectation of $0.71 [2] - The previous quarter also saw a positive surprise of 2.94%, with actual earnings of $0.70 per share compared to a consensus estimate of $0.68 [2] Earnings Estimates and Predictions - Estimates for Cadence have been trending higher, supported by its history of earnings surprises [5] - The stock currently has a positive Zacks Earnings ESP of +2.90%, indicating bullish sentiment among analysts regarding its near-term earnings potential [7] - Combining the positive Earnings ESP with a Zacks Rank of 1 (Strong Buy) suggests a high likelihood of another earnings beat in the upcoming report scheduled for July 23, 2025 [7] Statistical Insights - Research indicates that stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise [6] - This means that out of 10 stocks with this combination, approximately 7 could beat the consensus estimate [6] - The Earnings ESP metric is based on the Most Accurate Estimate compared to the Zacks Consensus Estimate, reflecting the latest analyst revisions [7]

Company Overview - Cadence (CADE) currently holds a Momentum Style Score of A, indicating strong momentum potential [3] - The company has a Zacks Rank of 1 (Strong Buy), which is associated with a historical outperformance in the market [4] Performance Metrics - Over the past week, Cadence shares have increased by 7.87%, outperforming the Zacks Banks - Southeast industry, which rose by 4.73% [6] - In a longer timeframe, Cadence's monthly price change is 13.15%, compared to the industry's 5.65% [6] - Over the past quarter, shares of Cadence have increased by 26.14%, and over the last year, they have gained 23.01%, while the S&P 500 has moved 15.13% and 13.62%, respectively [7] Trading Volume - The average 20-day trading volume for Cadence is 1,525,588 shares, which serves as a bullish indicator when combined with rising stock prices [8] Earnings Outlook - In the past two months, three earnings estimates for Cadence have been revised upwards, while none have been lowered, leading to an increase in the consensus estimate from $2.85 to $2.92 [10] - For the next fiscal year, two estimates have moved upwards, while one has been revised downwards [10] Conclusion - Given the strong performance metrics and positive earnings outlook, Cadence is positioned as a promising investment opportunity with a Momentum Score of A [12]

Core Viewpoint - Cadence (CADE) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Institutional investors often adjust their valuations based on earnings estimates, leading to significant stock price movements when they buy or sell large amounts of shares [4]. Cadence's Earnings Outlook - The upgrade for Cadence reflects an improvement in the company's underlying business, which is expected to drive the stock price higher as investors recognize this trend [5][10]. - For the fiscal year ending December 2025, Cadence is projected to earn $2.92 per share, with a 5.9% increase in the Zacks Consensus Estimate over the past three months [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - Only the top 5% of Zacks-covered stocks receive a "Strong Buy" rating, indicating superior earnings estimate revisions and potential for market-beating returns [9][10].

Company Overview - Cadence (CADE) is based in Tupelo and operates in the Finance sector, with a year-to-date share price change of 2.12% [3] - The company currently pays a dividend of $0.28 per share, resulting in a dividend yield of 3.13%, which is higher than the Banks - Southeast industry's yield of 2.31% and the S&P 500's yield of 1.52% [3] Dividend Performance - The current annualized dividend of Cadence is $1.10, reflecting a 10% increase from the previous year [4] - Over the past 5 years, Cadence has raised its dividend 5 times, achieving an average annual increase of 8.47% [4] - The company's current payout ratio is 39%, indicating that it pays out 39% of its trailing 12-month earnings per share as dividends [4] Earnings Expectations - The Zacks Consensus Estimate for Cadence's earnings in 2025 is $2.92 per share, with an expected increase of 6.57% from the previous year [5] Investment Appeal - Cadence is viewed as an attractive dividend investment, with benefits such as improved stock investing profits, reduced overall portfolio risk, and tax advantages [5] - The company holds a Zacks Rank of 1 (Strong Buy), indicating a compelling investment opportunity [6]

Core Insights - Three stocks with strong momentum and buy rankings are highlighted: Northern Trust, State Street, and Cadence Bank [1][2][3][4] Company Summaries - **Northern Trust (NTRS)**: A leading provider of wealth management and banking solutions, it has a Zacks Rank of 1 (Strong Buy) and a 3.1% increase in the current year earnings estimate over the last 60 days. Its shares gained 45.4% in the last three months, outperforming the S&P 500's 19% gain, and it holds a Momentum Score of A [1][2]. - **State Street (STT)**: This financial holding company serves institutional investors globally and also has a Zacks Rank of 1. The current year earnings estimate increased by 3.1% over the last 60 days. State Street's shares rose by 39.5% in the last three months, again surpassing the S&P 500's 19% gain, with a Momentum Score of A [2][3]. - **Cadence Bank (CADE)**: Providing banking and financial solutions to various clients, Cadence Bank has a Zacks Rank of 1 and a 3.2% increase in the current year earnings estimate over the last 60 days. Its shares increased by 31.7% in the last three months, exceeding the S&P 500's 19% gain, and it also has a Momentum Score of A [3][4].

Group 1 - Cadence Bank will release its second quarter 2025 earnings on July 23, 2025, after market close [1] - An earnings webcast will be held on July 24, 2025, at 10 a.m. CT, featuring a conference call with analysts [2] - The conference call will be interactive and available for live listening and archived access [2] Group 2 - Cadence Bank is a $55 billion regional financial services company with over 380 locations in the South and Texas [3] - The bank offers a range of services including banking, investment, trust, and mortgage products [3] - Cadence Bank has received accolades such as being recognized as one of the nation's best employers and as one of America's Best Banks in 2025 [3]