Cadence Bank (CADE) Stock Forecast & Price Target

Cadence Bank has demonstrated strong financial performance in its second quarter of 2025, achieving a core net income of $137.5 million, equating to $0.73 per share, and an impressive return on assets (ROA) of 1.14%. The bank's organic loan growth reached $1.1 billion, translating to a 12.6% annualized growth rate, prompting an increase in full-year loan growth guidance to 12%, while also projecting adjusted revenue growth of 10-12% for the year. Additionally, despite a pause in share repurchases for capital building and M&A integration, the growth in core deposits by $376 million and enhancements in securities yields indicate robust financial stability and positive trends in earnings capacity.

Cadence Bank's net interest margin (NIM) experienced a decline of 6 basis points to 3.40%, primarily influenced by $2 billion in securities purchases funded by FHLB term borrowings, which negatively impacted the NIM. Despite stable credit quality metrics, including a slight decrease in non-performing loans and manageable net charge-offs, the bank's common equity tier one (CET1) ratio also fell to 12.2%, indicating potential pressure on capital adequacy. The combination of reduced NIM and declining TCE ratios suggests underlying challenges that may detract from future profitability and shareholder value.