Cadence Bank Soars to Record Q1 Earnings, Expands Presence in Georgia
Cadence Bank is celebrating a record-breaking first quarter (Q1) of 2025, with impressive earnings and strategic expansions. The company's Q1 results were presented during the recent conference call, which highlighted significant growth and stability across various areas.
Dan Rollins, Executive Vice President and Director of Corporate Finance at Cadence Bank, led the discussion, emphasizing the company's strengths in financial performance. He pointed out that the regulatory approvals for the acquisition of First Chatham Bank have been received, paving the way for a May 1 closing date. This strategic move is expected to further expand Cadence Bank's presence in Georgia.
Cadence Bank's Q1 results showed remarkable growth, with GAAP net income increasing to $130.9 million or $0.70 per share. Adjusted net income from continuing operations also rose to $131.4 million or $0.71 per share, while the Return on Assets (ROA) reached 1.15%. The company's balance sheet management drove an increase in net interest margin of 8 basis points this quarter.
Valerie Toalson, a member of the executive management team, provided additional details on the financials during the conference call. She highlighted that pretax pre-provision net revenue for the first quarter increased to $190 million, up over 3% from the prior quarter, driven by solid loan growth and lower expenses.
Notably, Cadence Bank's loan pipelines remain solid across most of its regional markets, with merchant commercial real estate activity being as robust as it has been in years. The company's focus on supporting customers resulted in first-quarter loan growth of nearly 4% on an annualized basis, with the strongest growth coming from Georgia, Florida, and Texas.
The conference call also touched upon deposit balances, which grew nicely on average but ended the quarter flat due to typical first-quarter volatility. Core customer deposits maintained stability both in balances and in the mix of noninterest-bearing deposits.
Credit results have been stable overall and were in line with expectations for the quarter, with net charge-offs of 27 basis points annualized. Cadence Bank's tangible book value continued to expand, increasing to $22.30 per share, while regulatory capital levels remained very strong with CET1 growing to 12.4%.
Cadence Bank's Q1 results demonstrate its ability to navigate a potentially disrupted economy while maintaining stability and growth in key areas. The company's strategic expansions and focus on supporting customers position it well for future success. As Cadence Bank continues to grow and evolve, investors will be keenly watching the company's progress throughout the year.
