- Cadence Bank (CADE, Financial) reported a strong Q1 2025 with net income of $130.9 million and earnings per share of $0.70.
- The bank's net interest margin improved to 3.46%, and return on average assets rose to 1.15%.
- Cadence Bank received regulatory approvals for its merger with First Chatham Bank, expected to close by May 1, 2025.
Cadence Bank (CADE) announced its financial results for the first quarter of 2025, showcasing a solid performance with a net income of $130.9 million, or $0.70 per diluted share. This marks a notable increase from the year prior, reflecting a 14.2% growth in earnings.
The bank's return on average assets improved to 1.15%, up by 18 basis points from the previous year. The net interest margin also saw a significant rise, reaching 3.46%, bolstered by strategic reductions in deposit costs.
Cadence Bank reported net organic loan growth of $309.9 million, representing a 3.7% annualized increase. Total deposits stood at $40.3 billion, with loans amounting to $34.1 billion. The efficiency ratio enhanced to 57.6% from the previous year's 60.1%, attributed to reduced noninterest expenses.
Regarding asset quality, net charge-offs rose slightly to 0.27% of average loans, mainly due to a single commercial credit issue. However, the overall credit quality remained stable, ensuring the bank's robust position.
In a strategic move, Cadence Bank received all necessary regulatory approvals for its upcoming merger with First Chatham Bank. The acquisition is projected to finalize by May 1, 2025, enhancing Cadence's market presence in Savannah, Georgia.
These achievements highlight Cadence Bank's effective management and strategic growth initiatives, positioning it well for continued success in 2025 and beyond.
