Core Viewpoint - Investors in Cadence Bank should closely monitor stock movements due to significant implied volatility in the options market, particularly the Sep 19, 2025 $15 Put option [1] Company Analysis - Cadence Bank is currently rated as a Zacks Rank 1 (Strong Buy) within the Banks - Southeast industry, which is in the top 5% of the Zacks Industry Rank [3] - Over the past 30 days, three analysts have raised their earnings estimates for the current quarter, while one has lowered theirs, resulting in a net increase of the Zacks Consensus Estimate from 73 cents to 76 cents per share [3] Options Market Insights - The high implied volatility suggests that options traders anticipate a significant price movement for Cadence Bank shares, indicating potential upcoming events that could lead to a major rally or sell-off [2][4] - Seasoned options traders often seek high implied volatility options to sell premium, aiming to benefit from the decay of the option's value if the underlying stock does not move as much as expected [4]

Company Overview - Cadence (CADE) is headquartered in Tupelo and has experienced a price change of 2.61% this year [3] - The company currently pays a dividend of $0.28 per share, resulting in a dividend yield of 3.11%, which is higher than the Banks - Southeast industry's yield of 2.38% and the S&P 500's yield of 1.5% [3] Dividend Performance - The current annualized dividend of Cadence is $1.10, reflecting a 10% increase from the previous year [4] - Over the last 5 years, Cadence has increased its dividend 5 times year-over-year, with an average annual increase of 8.47% [4] - The company's current payout ratio is 38%, indicating that it pays out 38% of its trailing 12-month earnings per share as dividends [4] Earnings Growth - Cadence is expected to see earnings expansion this fiscal year, with the Zacks Consensus Estimate for 2025 at $2.99 per share, representing a year-over-year earnings growth rate of 9.12% [5] Investment Appeal - Cadence is considered an attractive dividend play and a compelling investment opportunity, currently holding a Zacks Rank of 1 (Strong Buy) [6]

Core Insights - Linscomb Wealth is expanding its geographic footprint with a new office in The Woodlands, Texas, to enhance its commitment to personalized financial advice in the Greater Houston area [1][2] - The firm is also planning to establish a presence in Nashville, Tennessee, indicating a strategic approach to growth in key markets [3] Company Expansion - The new office in The Woodlands is staffed by Senior Wealth Advisor Nick Ibanez and Wealth Advisor Matt Britton, who will provide a full suite of wealth management services [1] - The expansion aligns with Linscomb's strategic plan initiated in 2019, focusing on markets where its high-touch, team-based approach can resonate with successful families and business owners [2][3] Service Offerings - Both The Woodlands and Nashville locations will offer comprehensive financial planning, investment management, and estate planning services [4] - Linscomb plans to engage with the local communities through professional partnerships, philanthropic efforts, and local events [4] Company Background - Linscomb Wealth is a fee-only wealth management firm founded in 1971, headquartered in Houston, Texas, with multiple offices across the Southeast [5] - The firm operates as a registered investment advisor, providing tailored planning and investment strategies to help clients grow and preserve their wealth [5] Parent Company Information - Cadence Bank, the parent company of Linscomb Wealth, is a $55 billion regional bank with over 390 locations, offering a range of banking and investment services [6] - Cadence Bank has received accolades for being one of the nation's best employers and for its banking services [6]

Core Insights - Cadence Bank has received four Coalition Greenwich Best Bank Awards for its exceptional service in middle market and small business banking, highlighting its commitment to these sectors [1][2][6] - The awards are based on interviews with over 25,000 businesses, showcasing Cadence Bank's strong relationships and trusted advice [3] Awards and Recognition - Cadence Bank was recognized in the following categories: - Best Bank – Overall Satisfaction for Middle Market Banking in the U.S. - Best Bank – Overall Satisfaction for Small Business Banking in the U.S. - Best Bank – Satisfaction in Cash Management for Small Business Banking in the U.S. - Best Bank – Satisfaction with Relationship Management for Small Business Banking in the U.S. (South) [6] Company Overview - Cadence Bank is a $55 billion regional bank with over 390 locations across the South and Texas, offering a range of banking, investment, trust, and mortgage services [5] - The bank has been recognized as one of the nation's best employers and as one of America's Best Banks by Forbes [5]

Financial Data and Key Metrics Changes - Adjusted net income from continuing operations increased to $137.5 million or $0.73 per share, with adjusted ROA at 1.14% for the quarter [9] - Adjusted efficiency ratio improved by 90 basis points to 56.7% [10] - Total adjusted revenue was strong at $476 million, an increase of $28 million or 6% [13] - Net interest revenue increased by $15 million or 4% due to robust loan growth and added securities [13] - Tangible book value improved to $22.94 per share, with regulatory capital levels remaining strong at CET1 of 12.2% [11] Business Line Data and Key Metrics Changes - Organic loan growth was $1.1 billion for the quarter, representing a 12.6% annualized growth rate, with significant contributions from Texas [10] - Core customer deposits increased at a 4.4% annualized rate, primarily in non-interest bearing deposits [11] - Average loans were up over $800 million, while period-end loans grew by $1.4 billion, including $400 million from the First Chatham acquisition [12] Market Data and Key Metrics Changes - The company reported strong performance across various markets, particularly in Texas, Georgia, Florida, and Tennessee, with Texas leading in growth [90] - The company expects solid loan demand for the latter half of the year, projecting full-year loan growth, including acquisitions, to be between 11-15% [20] Company Strategy and Development Direction - The company is focused on expanding its presence in Georgia and Central Texas through recent acquisitions [7] - Management expressed confidence in continuing to grow organically and through strategic partnerships, positioning the company for strength in 2026 [109] Management Comments on Operating Environment and Future Outlook - Management noted that the operating environment is improving, with strong pipelines and robust loan origination activity [54] - The company anticipates continued operating leverage, with expenses expected to increase between 7-9% to support balance sheet growth [20] Other Important Information - The company completed the acquisition of First Chatham Bank on May 1 and closed the acquisition of Industry Bank Shares on July 1 [7] - The company liquidated $1.9 billion of securities from the Industry acquisition and reinvested in securities yielding over 5.25% [19] Q&A Session Summary Question: Can you provide insights on the NII and margin guidance? - Management acknowledged the impact of recent acquisitions on NIM but expressed optimism for future improvements in net interest margin [27][29] Question: What are the expectations for M&A activity? - Management noted increased M&A activity and expressed confidence in executing future transactions within their footprint [32] Question: Can you elaborate on the revenue guidance increase? - Management confirmed that the revenue guidance increase is based on strong organic loan growth and robust pipelines [37] Question: How is loan growth expected to trend moving forward? - Management indicated that the strong loan growth observed in the second quarter is expected to continue, driven by robust pipelines and origination activity [86] Question: What is the outlook for deposit growth? - Management highlighted the strength in core deposit origination and expressed optimism for continued growth in DDAs [67] Question: Any changes in beta expectations with the recent acquisitions? - Management stated that there are no significant changes in beta expectations and that interest rate sensitivity remains consistent [76]

Financial Data and Key Metrics Changes - Adjusted net income from continuing operations increased to $137.5 million or $0.73 per share, with adjusted ROA at 1.14% for the quarter [7] - Adjusted efficiency ratio improved by 90 basis points to 56.7% [8] - Organic loan growth reached $1.1 billion for the quarter, representing a 12.6% annualized growth rate [8] - Core customer deposits increased at a 4.4% annualized rate, with significant growth in non-interest bearing deposits [9] - Tangible book value rose to $22.94 per share, with CET1 regulatory capital at 12.2% [9] Business Line Data and Key Metrics Changes - Average loans increased by over $800 million, while period-end loans grew by $1.4 billion, including $400 million from the First Chatham acquisition [10] - Non-interest revenue increased by $13 million or 15% compared to the first quarter, driven by strong performance in mortgage originations and wealth management [13] - Adjusted non-interest expense rose by $11.7 million, primarily due to the First Chatham acquisition and business growth [14] Market Data and Key Metrics Changes - The company reported strong loan growth across various geographies and verticals, with Texas showing the highest growth [8] - Non-interest bearing deposits as a percentage of total deposits increased to 22.6% [11] - The net interest margin (NIM) declined by six basis points to 3.4%, but loan yields increased to 6.34% [12] Company Strategy and Development Direction - The company is focused on expanding its presence in Georgia and Central Texas through recent acquisitions [6] - Future loan growth is expected to be between 11-15% for the full year, supported by strong pipelines and acquisitions [18] - The company aims to continue investing in its future while maintaining stable credit and strong EPS performance [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving growth through both organic means and strategic partnerships [111] - The company anticipates continued strong loan demand and revenue growth in the latter half of the year [18] - Management noted that the current operating environment is favorable, with strong pipelines and borrower activity [50][86] Other Important Information - The company completed the acquisition of Industry Bank shares and First Chatham Bank, enhancing its market position [6] - The company liquidated a significant portion of the municipal portfolio acquired from Industry Bank, reinvesting the proceeds into higher-yielding securities [16] Q&A Session Summary Question: Can you provide insights on the NII and margin guidance? - Management indicated that they expect continued improvement in net interest margin as new loans are coming in at higher rates, despite some initial negative impacts from security purchases [21][24] Question: What are the expectations for M&A activity? - Management noted an increase in M&A activity and expressed confidence in executing future transactions within their existing footprint [28][30] Question: Can you elaborate on the revenue guidance increase? - The revenue guidance increase is based on strong loan growth and a healthy pipeline, with expectations for organic revenue growth [34] Question: How is the loan growth trend expected to continue? - Management believes the strong loan growth is sustainable and reflects a real change in demand rather than a temporary rebound [83][86] Question: What is the outlook for deposit growth? - Management is optimistic about continued growth in core deposits, particularly in DDA, and sees potential for further compression in CD costs [63][66] Question: Any changes in credit quality or classified loans? - Management reported that the increase in criticized loans is within normal ranges and attributed some of it to the recent acquisition [67]

Financial Performance - Adjusted net income available to common shareholders reached $137.5 million, resulting in an adjusted EPS of $0.73[3, 4] - Adjusted pre-tax pre-provision net revenue (PPNR) hit a record $206.0 million, an 8.4% increase compared to the first quarter of 2025[3, 4] - Net charge-offs for the second quarter of 2025 were $21.2 million, representing 0.24% of average net loans and leases on an annualized basis[30, 33] Balance Sheet Growth - Net organic loan growth was $1.1 billion for 2Q25, translating to an annualized rate of 12.6%[4] - Core organic customer deposit balances grew by $376 million, or 4.4% on an annualized basis[4] - Total deposits reached $40.5 billion as of June 30, 2025, a $0.2 billion increase from the previous quarter[11, 13] - Loans and leases increased by $1.4 billion to $35.5 billion from the end of the first quarter of 2025[14, 16] Acquisitions - Completed the acquisition of FCB Financial Corp, adding approximately $604 million in assets[4, 6] - Completed the acquisition of Industry Bancshares, Inc, adding approximately $4.1 billion in assets[4, 8, 10] Capital and Credit Quality - Maintained strong regulatory capital with a Common Equity Tier 1 Capital of 12.2% and Total Capital of 13.8%[3, 4] - Total shareholders' equity was $5.9 billion at June 30, 2025[58, 60]

Core Insights - Cadence (CADE) reported quarterly earnings of $0.73 per share, exceeding the Zacks Consensus Estimate of $0.69 per share, and showing an increase from $0.69 per share a year ago, resulting in an earnings surprise of +5.80% [1] - The company achieved revenues of $476.32 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.60% and up from $456.98 million year-over-year [2] - Cadence has consistently surpassed consensus EPS estimates over the last four quarters, achieving this four times [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.75 on revenues of $517.25 million, while for the current fiscal year, the estimate is $2.92 on revenues of $1.95 billion [7] - The trend of estimate revisions for Cadence was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Banks - Southeast industry, to which Cadence belongs, is currently ranked in the top 14% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

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].