Core Viewpoint - Cadence Bank has successfully completed the acquisition of Industry Bancshares, enhancing its presence in Texas and expanding its service offerings across more than 380 branches and over 400 ATM locations [1][2][5]. Group 1: Acquisition Details - The acquisition of Industry Bancshares, which includes several banks, was finalized on July 1, 2025, after receiving necessary regulatory and shareholder approvals [1][2]. - Industry Bancshares reported total assets of $4.4 billion, total loans of $1.1 billion, and total deposits of $4.5 billion as of March 31, 2025 [5]. Group 2: Strategic Benefits - The merger is expected to create growth opportunities for customers and communities, leveraging Cadence Bank's strong balance sheet and diverse product offerings [2][4]. - The combination of both companies aims to provide stability and consistency in banking operations and enhance liquidity for lending in the acquired markets [2][4]. Group 3: Customer Experience - Customers of Industry Bancshares will not see immediate changes in their banking experience and can continue using existing services until further integration updates are provided in the fall of 2025 [3][4]. - Customer deposit accounts will remain insured by the FDIC, with specific insurance provisions for time deposits from the acquired banks [4]. Group 4: Company Overview - Cadence Bank is a regional financial services company with over $52 billion in assets, offering a wide range of banking, investment, trust, and mortgage products [6]. - The company has been recognized as one of the nation's best employers and as one of America's Best Banks in 2025 [6].

Company Overview - Cadence (CADE) is headquartered in Tupelo and has experienced a price change of -8.8% this year [3] - The company currently pays a dividend of $0.28 per share, resulting in a dividend yield of 3.5%, which is higher than the Southeast Banks industry's yield of 2.42% and the S&P 500's yield of 1.53% [3] Dividend Performance - Cadence's annualized dividend of $1.10 has increased by 10% from the previous year [4] - The company has raised its dividend five times over the last five years, achieving an average annual increase of 8.28% [4] - The current payout ratio is 39%, indicating that Cadence paid out 39% of its trailing 12-month earnings per share as dividends [4] Earnings Growth - The Zacks Consensus Estimate for Cadence's earnings in 2025 is $2.85 per share, reflecting a year-over-year earnings growth rate of 4.01% [5] Investment Appeal - Cadence is considered an attractive dividend play and a compelling investment opportunity, holding a Zacks Rank of 2 (Buy) [7]

Group 1 - The article discusses the performance and potential of Cadence Bank (NYSE: CADE), emphasizing its lending margin potential as a key factor for investment [1] - The author adopts a long-term, buy-and-hold investment strategy, focusing on stocks that can deliver sustainable high-quality earnings, particularly in the dividend and income sectors [1] Group 2 - No relevant content available for this section [2][3]

Core Viewpoint - Cadence Bank has signed a definitive merger agreement with Industry Bancshares, Inc., which will enhance Cadence's presence in Texas and expand its customer base in growing markets [1][2][5] Group 1: Merger Details - The merger will involve Cadence Bank paying between $20 million and $60 million in cash for all outstanding common stock of Industry Bancshares, based on its equity capital at the closing of the transaction [3] - The merger is expected to close in the second half of 2025, subject to regulatory and shareholder approvals, as well as other customary closing conditions [5] Group 2: Financial Overview - As of March 31, 2025, Industry Bancshares reported total assets of $4.4 billion, total loans of $1.1 billion, and total deposits of $4.5 billion [2] Group 3: Strategic Importance - The merger aligns with Cadence Bank's community banking foundation and aims to enhance customer service and expand product offerings in similar markets across Texas and the South [4] - Cadence Bank's scale and resources are expected to strengthen personal service and trusted expertise for customers of Industry Bancshares [5] Group 4: Leadership and Continuity - Key personnel from Industry Bancshares are expected to continue in their roles within the combined organization, ensuring continuity of service for existing customers [4]

Core Viewpoint - Cadence Bank's Board of Directors has authorized a new share repurchase program allowing the purchase of up to 10 million shares of its common stock, pending Federal Reserve approval, with an expiration date set for December 31, 2025 [1][2]. Group 1: Share Repurchase Program Details - The Repurchase Program allows for shares to be purchased periodically in open market transactions, privately negotiated transactions, or other means in compliance with federal securities laws [2]. - The program can be extended, modified, amended, suspended, or discontinued at the discretion of Cadence's Board of Directors, and does not obligate the company to repurchase shares [2]. - The actual means of purchase, timing, target number of shares per purchase, and maximum price will be determined by management based on various factors including capital position, liquidity, financial performance, market price, and economic conditions [2]. Group 2: Company Overview - Cadence Bank is a regional financial services company with assets totaling $50 billion, operating over 350 locations across the South and Texas [4]. - The bank offers a wide range of services including banking, investment, trust, and mortgage products to meet the needs of individuals, businesses, and corporations [4]. - Cadence 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 by Forbes [4].

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].