Cadence Bank Announces Second Quarter 2025 Financial Results; Declares Quarterly Common and Preferred Dividends

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]