Cadence Bank (CADE) Stock Forecast & Price Target

Cadence Bank's positive outlook is underscored by strong organic loan growth, with a reported increase of $1.1 billion (12.6% annualized) in the second quarter of 2025, leading to a raised full-year loan growth projection to 12%. The bank's core net income demonstrated robust performance at $137.5 million or $0.73 per share, with a return on assets (ROA) of 1.14%, highlighting solid revenue dynamics. Additionally, the bank's focus on enhancing net interest margin through improved securities yields and stable loan yields positions it favorably despite the challenges posed by M&A-related expenses.

Cadence Bank's net interest margin (NIM) experienced a decline of 6 basis points to 3.40%, primarily attributed to $2 billion in securities purchases funded by FHLB term borrowings, which negatively impacted NIM by 8 basis points. Although net interest income for the quarter was relatively in line with consensus estimates, the decrease in NIM fell short of expectations, suggesting underlying pressures on profitability. Additionally, while credit metrics indicated stable quality, the slight decline in capital ratios—with the Common Equity Tier 1 (CET1) ratio dropping to 12.2%—now raises concerns regarding the bank's financial resilience amid these operational challenges.