Q1 2025 Cadence Bank Earnings Call Transcript
Key Points
- Cadence Bank (CADE) received all regulatory approvals to complete the acquisition of First Chatham Bank, with plans to close by May 1, expanding their presence in Georgia.
- GAAP net income increased to $130.9 million or $0.70 per share, with adjusted net income from continuing operations at $131.4 million or $0.71 per share.
- The bank's net interest margin improved by 8 basis points this quarter, driven by effective balance sheet management.
- First-quarter loan growth was nearly 4% on an annualized basis, with strong performance in Georgia, Florida, and Texas.
- Credit results remained stable, with net charge-offs at 27 basis points annualized, and non-performing loans declined by 11%.
- Competition in the commercial real estate market has driven yields down, impacting profitability.
- Loan yields decreased by 9 basis points due to the impact of a December interest rate cut.
- Total adjusted revenue was down slightly, less than one-half of 1% compared to the prior quarter, primarily due to fewer days in the first quarter.
- The bank experienced a slight decline in brokered deposits, offset by a pickup in public funds, leading to flat period-end deposits.
- The macroeconomic outlook remains uncertain, with potential economic disruptions that could impact future performance.
Good day, and welcome to the Cadence Bank first-quarter 2025 webcast and conference call. (Operator Instructions) Please note that this event is being recorded.
I would now like to turn the conference over to Will Fisackerly, Executive Vice President and Director of Corporate Finance. Please go ahead.
Good morning, and thank you for joining the Cadence Bank first-quarter 2025 earnings conference call. We have members from our executive management team here with us this morning: Dan Rollins, Chris Bagley, Valerie Toalson, and Billy Braddock. Our speakers will be referring to prepared slides during the discussion. You can find the slides by going to our Investor Relations page at ir.cadencebank.com, where you'll find them on the link to our webcast, or you can view them to the exhibit to the 8-K that we filed yesterday afternoon. These slides are also in the presentation section of our investor relations website.
I would remind you that the presentation,
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