Cadence Bank(US:CADE)2021-10-26 19:52Financial Data and Key Metrics Changes - Net income available to common shareholders for Q3 2021 was $70.4 million or $0.65 per diluted share, with net operating income, excluding MSR, at $73.3 million or $0.68 per diluted share [10][11] - PPNR, excluding MSR adjustment and other non-operating items, totaled $90.1 million or 1.29% of average assets on an annualized basis for the quarter [11] - Total risk-based capital ratio stood at 14.27% as of September 30 [18] Business Line Data and Key Metrics Changes - Total deposit and customer repo growth was over $720 million or 12.2% on an annualized basis for the quarter [12] - Net organic loan growth, excluding PPP forgiveness payments, was $122 million or 3.3% for the quarter, marking the second consecutive quarter of net organic loan growth [13][26] - Mortgage team produced almost $790 million in loans during Q3, with commission revenue from insurance at $35.8 million, an increase of over 9% compared to Q3 2020 [15][30] Market Data and Key Metrics Changes - Significant growth in Texas with over 15% growth in the quarter, while Georgia and Tennessee markets also showed nearly 10% growth [38] - The economies across the company's footprint continue to rebound and perform well [14] Company Strategy and Development Direction - The company is focused on finalizing the merger with Cadence Bank, with both teams actively engaged in integration planning [8][33] - The leadership team is optimistic about the combined entity's future, emphasizing the potential for enhanced commercial efforts and loan growth opportunities [35][76] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in credit quality, reporting net recoveries of $2.1 million and a provision release of $7 million for the quarter [16][27] - The company anticipates continued growth in loan pipelines and is optimistic about the economic recovery [39][76] Other Important Information - The company repurchased over 1.7 million shares at a weighted average price of $28.69 during the quarter, with 4.3 million shares remaining in the current authorization [17] - The company is actively working on technology investments and consolidating operations post-merger [52][55] Q&A Session Summary Question: Update on organic growth and pipeline expectations - Management noted that organic growth was heavily weighted into C&I, with a positive outlook on the pipeline and loan growth opportunities across various geographies [35][36][38] Question: Liquidity and securities purchases - Management confirmed significant liquidity and discussed recent purchases of variable rate mortgage-backed securities [40][42] Question: Share repurchase appetite - Management indicated a desire to be opportunistic with share repurchases, with over 4 million shares left on the authorization [48][49] Question: Technology investment priorities - Management outlined plans for technology consolidation and investments in consumer and commercial banking products [52][55] Question: Operating expenses and cost savings - Management acknowledged higher personnel expenses due to merger activities and annual salary adjustments, with expectations for cost savings to ramp up post-merger [57][60][71]