Financial Data and Key Metrics Changes - Gap net income increased to $130.9 million, or $0.70 per share, while adjusted net income from continuing operations rose to $131.4 million, or $0.71 per share [9] - Return on Assets (ROA) improved to 1.15% [9] - Net interest margin increased by 8 basis points to 3.46% [16] - Adjusted efficiency ratio improved to 57.6%, down 150 basis points from the previous quarter [21] Business Line Data and Key Metrics Changes - First quarter loan growth was nearly 4% on an annualized basis, with strong performance in mortgage, private banking, and community bank groups [10][14] - Average loans increased by over $482 million, while period-end loans grew by $310 million, or 3.7% annualized [14] - Average deposits increased by $610 million, but period-end deposits were flat [15] Market Data and Key Metrics Changes - Strong loan pipelines remain solid across most regional markets, particularly in Texas, Georgia, and Florida [10][34] - Merchant commercial real estate activity is robust, with competition driving yields down somewhat [11] Company Strategy and Development Direction - The company plans to close the acquisition of First Chatham Bank on May 1, aiming to expand its presence in Georgia [8][24] - The focus remains on organic growth, with M&A opportunities considered when appropriate [53][124] Management's Comments on Operating Environment and Future Outlook - Management noted stability in credit results, with net charge-offs at 27 basis points annualized [12] - There is awareness of potential borrower issues, but no significant impact has been observed yet [12][106] - The macroeconomic environment is being closely monitored, with management expressing confidence in the company's ability to navigate challenges [33][110] Other Important Information - The company’s tangible book value increased to $22.30 per share, with strong regulatory capital levels [12] - The company anticipates stable net interest margins despite competitive pressures on loan yields [50] Q&A Session Summary Question: Loan pipelines and client feedback post-April 2nd announcements - Management indicated that there has been little impact on loan pipelines and expressed confidence in continued loan growth [29][33] Question: Deposit side and high-cost deposits - Management noted about $3.5 billion in time deposits maturing in the second quarter, with expectations of benefits from lower renewal rates [36][38] Question: Loan yields and margin outlook - Management acknowledged yield compression due to competition but expects stable net interest margins moving forward [47][50] Question: Capital priorities and M&A outlook - Management emphasized organic growth as the primary goal, with M&A opportunities considered based on cultural fit [53][124] Question: Revenue and balance sheet growth - Management discussed the addition of federal home loan bank borrowings to support balance sheet growth and income [58][60] Question: Concerns about credit quality and customer segments - Management reported stable credit quality, with no specific segments of concern identified at this time [106][110]

Financial Performance - The company reported net income available to common shareholders of $130.9 million, or $0.70 per diluted common share[5] - Adjusted net income available to common shareholders was $131.4 million, or $0.71 per diluted common share[3, 5] - Quarterly adjusted pre-tax pre-provision net revenue (PPNR) reached $189.9 million, a $5.9 million increase from Q4 2024[5] - Net interest margin expanded by 8bps from the previous quarter to 3.46%[3, 5] - The adjusted efficiency ratio improved to 57.6%, a +151bps change compared to Q4 2024[3] Loan and Deposit Portfolio - Period end loans totaled $34.1 billion, reflecting a 3.7% annualized growth in Q1 2025[3] - Net organic loan growth was $309.9 million for 1Q25, or 3.7% on an annualized basis[5] - Total deposits were $40.3 billion as of March 31, 2025, a decline of $0.2 billion from $40.5 billion at the end of Q4 2024[6, 8] - Noninterest bearing deposits accounted for 21% of total deposits at the end of Q1 2025[6] Credit Quality - Net charge-offs for 1Q25 were $23.0 million, or 0.27% of average net loans and leases on an annualized basis[24, 27] - Total nonaccrual loans and leases improved to $236 million, or 0.69% of total loans[28, 29] - Allowance for credit losses was 1.34% of net loans and leases at March 31, 2025[27] Capital and Merger - Total shareholders' equity was $5.7 billion at March 31, 2025[51, 53] - Tangible book value per common share increased to $22.30 per share at March 31, 2025, up $2.82 per share, or 14.5%, compared to March 31, 2024[53] - The company received approvals to complete merger with FCB Financial Corp, expected to close May 1, 2025[5]

Group 1 - Cadence reported revenue of $448.54 million for the quarter ended March 2025, reflecting a 2.5% increase year-over-year, but a revenue surprise of -0.67% compared to the Zacks Consensus Estimate of $451.57 million [1] - The earnings per share (EPS) for the quarter was $0.71, up from $0.62 in the same quarter last year, resulting in an EPS surprise of +10.94% against the consensus estimate of $0.64 [1] - Shares of Cadence have returned -8% over the past month, underperforming the Zacks S&P 500 composite's -5.6% change, and the stock currently holds a Zacks Rank 3 (Hold) [3] Group 2 - The adjusted efficiency ratio was reported at 57.6%, better than the average estimate of 59.6% based on four analysts [4] - The net interest margin was 3.5%, slightly above the average estimate of 3.4% from four analysts [4] - Total noninterest income was $85.39 million, below the average estimate of $88.23 million from four analysts [4]

Company Performance - Cadence reported quarterly earnings of $0.71 per share, exceeding the Zacks Consensus Estimate of $0.64 per share, and up from $0.62 per share a year ago, representing an earnings surprise of 10.94% [1] - The company posted revenues of $448.54 million for the quarter ended March 2025, which missed the Zacks Consensus Estimate by 0.67%, compared to year-ago revenues of $437.69 million [2] - Over the last four quarters, Cadence has surpassed consensus EPS estimates four times but has only topped consensus revenue estimates once [2] Stock Performance - Cadence shares have declined approximately 19% since the beginning of the year, while the S&P 500 has decreased by 10.2% [3] - The current consensus EPS estimate for the upcoming quarter is $0.68 on revenues of $463.98 million, and for the current fiscal year, it is $2.82 on revenues of $1.88 billion [7] Industry Outlook - The Zacks Industry Rank for Banks - Southeast, which includes Cadence, is currently in the top 36% of over 250 Zacks industries, indicating a favorable industry outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Cadence's stock performance [5]

Core Viewpoint - Cadence Bank reported strong financial results for Q1 2025, highlighting improved operating leverage, expanded net interest margin, and organic loan growth despite economic volatility. The bank also received regulatory approvals for its merger with First Chatham Bank, expected to close on May 1, 2025 [3][14]. Financial Performance - Net income available to common shareholders for Q1 2025 was $130.9 million, or $0.70 per diluted share, compared to $114.6 million, or $0.62 per diluted share in Q1 2024 [4][14]. - Adjusted net income for Q1 2025 was $131.4 million, or $0.71 per diluted share, up from $114.4 million, or $0.62 per diluted share in Q1 2024 [4][14]. - Return on average assets improved to 1.15% in Q1 2025, up from 0.97% in Q1 2024 [5][14]. - Adjusted pre-tax pre-provision net revenue (PPNR) was $189.9 million, an increase of 3.2% from Q4 2024 and 9.0% from Q1 2024 [5][14]. Net Interest Revenue - Net interest revenue for Q1 2025 was $363.2 million, compared to $353.9 million in Q1 2024 [6][14]. - The net interest margin improved to 3.46% in Q1 2025, up from 3.22% in Q1 2024 [6][14]. - Average earning assets slightly declined to $42.6 billion, with a net loan growth of $309.9 million, or 3.7% annualized [7][10]. Balance Sheet Activity - Total loans and leases increased to $34.1 billion as of March 31, 2025, compared to $33.7 billion at the end of Q4 2024 [10][14]. - Total deposits were $40.3 billion, a slight decline from $40.5 billion at the end of Q4 2024, primarily due to a decrease in brokered deposits [11][14]. - The loan to deposit ratio was 84.4% as of March 31, 2025 [11][14]. Credit Quality - Net charge-offs for Q1 2025 were $23.0 million, or 0.27% of average net loans, compared to $19.5 million, or 0.24% in Q1 2024 [13][14]. - The allowance for credit losses was $457.8 million, representing 1.34% of total loans and leases [15][14]. - Total nonperforming assets as a percentage of total assets were stable at 0.51% as of March 31, 2025 [16][14]. Noninterest Revenue and Expense - Noninterest revenue for Q1 2025 was $85.4 million, compared to $83.8 million in Q1 2024 [17][14]. - Noninterest expense decreased to $259.3 million in Q1 2025 from $263.2 million in Q1 2024, leading to an improved adjusted efficiency ratio of 57.6% [21][14]. Capital Management - Total shareholders' equity increased to $5.7 billion as of March 31, 2025, up from $5.2 billion a year earlier [23][14]. - Common Equity Tier 1 capital ratio was 12.4% as of March 31, 2025, indicating strong capital management [23][14]. Merger Activity - The merger with FCB Financial Corp. is expected to close on May 1, 2025, with all necessary regulatory approvals obtained [14][24]. - The transaction involves the issuance of approximately 2.3 million shares of common stock and $23.1 million in cash for all outstanding shares of First Chatham [24].

Group 1: Company Overview - Cadence (CADE) is headquartered in Tupelo and has experienced a price change of -11.73% this year [3] - The current dividend payout is $0.28 per share, resulting in a dividend yield of 3.62%, which is higher than the Southeast banking industry's yield of 2.36% and the S&P 500's yield of 1.59% [3] Group 2: Dividend Performance - The annualized dividend of Cadence is currently $1.10, reflecting a 10% increase from the previous year [4] - Over the past five years, Cadence has increased its dividend four times, averaging an annual increase of 7.84% [4] - The current payout ratio is 36%, indicating that Cadence pays out 36% of its trailing 12-month earnings per share as dividends [4] Group 3: Earnings Growth - The Zacks Consensus Estimate for Cadence's earnings in 2025 is $2.86 per share, which represents a year-over-year earnings growth rate of 4.38% [5] Group 4: Investment Considerations - Dividends are favored by investors as they enhance stock investing profits, reduce overall portfolio risk, and offer tax advantages [6] - High-growth firms or tech start-ups typically do not provide dividends, while established companies with secure profits are preferred for dividend investments [7] - Cadence is positioned as a compelling investment opportunity due to its strong dividend profile and a Zacks Rank of 3 (Hold) [7]

Core Points - Cadence Bank has adjourned its special meeting of shareholders to April 25, 2025, to solicit proxies for a stock repurchase proposal [1] - A special cash dividend of $0.34375 per share of Series A Preferred Stock will be declared if the stock repurchase proposal receives a two-thirds affirmative vote [2] - The record date for eligible shareholders to vote remains November 8, 2024, and valid proxies will continue to be valid for the reconvened meeting [4] Proposal Details - Proposal 2 involves authorizing the Board of Directors to implement stock repurchases in accordance with Regulation H [1][3] - Common shareholders approved several proposals at the initial special meeting, while preferred shareholders approved Proposal 4 prior to adjournment [3] Meeting Logistics - The reconvened special meeting will be held virtually on April 25, 2025, at 9:00 a.m. Central Time [6] - Preferred shareholders can participate by visiting a specified web address and entering a control number [7] Company Overview - Cadence Bank is a $50 billion regional financial services company with over 350 locations [8] - The bank offers a range of banking, investment, trust, and mortgage products and services [8]

Core Viewpoint - Cadence Bank is set to release its first quarter 2025 earnings on April 21, 2025, followed by a management conference call on April 22, 2025, indicating ongoing transparency and engagement with analysts and investors [1][2]. Company Overview - Cadence Bank is a regional financial services company with assets totaling $50 billion, providing a range of banking, investment, trust, and mortgage services [3]. - The bank operates over 350 locations across the South and Texas, demonstrating a significant regional presence [3]. - Cadence Bank has received accolades for its workplace environment, being recognized as one of the nation's best employers by Forbes and U.S. News & World Report, as well as being named one of America's Best Banks by Forbes in 2025 [3]. - The company has a long-standing history of nearly 150 years in serving its customers, with dual headquarters located in Houston, Texas, and Tupelo, Mississippi [3].

Core Viewpoint - Cadence Bank has received all necessary regulatory approvals to proceed with its merger with FCB Financial Corp, which is expected to be finalized on May 1, 2025, pending customary closing conditions [1][2]. Group 1: Merger Details - The merger will integrate First Chatham Bank, which reported total assets of $589 million, total loans of $326 million, and total deposits of $507 million as of December 30, 2024 [2]. - Cadence Bank's Chairman and CEO, Dan Rollins, expressed satisfaction with the regulatory approval and highlighted the alignment of values between Cadence Bank and First Chatham Bank [3]. Group 2: Company Overview - Cadence Bank is a regional financial services company with approximately $50 billion in assets and over 350 locations across the South and Texas, offering a range of banking and investment services [4]. - The bank has been recognized as one of the best employers and banks in the nation, reflecting its commitment to customer service and community support [4].

Company Overview - Cadence (CADE) is headquartered in Tupelo and operates in the Finance sector. The stock has experienced a price decline of 13.35% since the beginning of the year [3]. - The company currently pays a dividend of $0.28 per share, resulting in a dividend yield of 3.69%, which is higher than the Banks - Southeast industry's yield of 2.33% and the S&P 500's yield of 1.61% [3]. Dividend Performance - Cadence's annualized dividend of $1.10 has increased by 10% compared to the previous year. Over the last five years, the company has raised its dividend five times, averaging an annual increase of 7.84% [4]. - The current payout ratio for Cadence is 36%, indicating that the company distributes 36% of its trailing 12-month earnings per share as dividends [4]. Earnings Growth - The Zacks Consensus Estimate for Cadence's earnings in 2025 is projected at $2.93 per share, reflecting a year-over-year earnings growth rate of 6.93% [5]. Investment Considerations - Cadence is considered a compelling investment opportunity due to its strong dividend profile and current Zacks Rank of 3 (Hold). The company is positioned well in the context of rising interest rates, which can impact high-yielding stocks [7].