Cadence Bank (CADE) Stock Forecast & Price Target

Cadence Bank has demonstrated strong financial performance with a robust organic loan growth of $1.1 billion, representing a 12.6% annualized increase, which has led to a positive revision in full-year loan growth expectations to 12%. The bank's core net income for the second quarter of 2025 reached $137.5 million, translating to an earnings per share of $0.73 and an impressive return on assets of 1.14%. Additionally, the growth in core deposits by $376 million quarter-over-quarter, combined with improved securities yields and stable loan yields, positions Cadence Bank favorably for continued revenue enhancement and net interest margin improvement.

Cadence Bank's outlook is negatively impacted by a decline in net interest margin (NIM), which fell 6 basis points to 3.40%, largely attributed to $2 billion in securities purchases and increased term borrowings from FHLB, indicating rising funding costs. Although net interest income for the quarter was aligned with consensus estimates, the decrease in NIM was below expectations, reflecting underlying challenges in profitability. Additionally, while credit metrics showed stability, the slight decrease in the common equity tier 1 (CET1) ratio to 12.2% and the tangible common equity (TCE) ratio to 8.7% raises concerns about the bank's capital adequacy amidst an expanding balance sheet and higher costs of funds.