Cadence Bank (CADE) Stock Forecast & Price Target

Cadence Bank has demonstrated a strong financial performance, reporting a core net income of $137.5 million for the second quarter of 2025, which translates to $0.73 per share and reflects a solid return on assets (ROA) of 1.14%. The bank's loan growth remains robust, bolstered by an organic increase of $1.1 billion, representing a 12.6% annualized growth rate, with a full-year loan growth forecast now adjusted to 12%. Additionally, the bank's focus on capital building and expediting integration following recent M&A efforts positions it favorably for future revenue trends, as it anticipates adjusted revenue growth of 10-12% for the year, supported by stable loan yields and improved securities yields.

Cadence Bank is experiencing pressure on its net interest margin (NIM), which has declined by 6 basis points to 3.40%, primarily attributed to $2 billion in securities purchases funded by term borrowings, negatively impacting NIM by 8 basis points. Additionally, while credit metrics remain stable, the common equity tier 1 (CET1) ratio has decreased to 12.2% from 12.4%, signaling potential weakening in capital adequacy. Furthermore, the overall increase in costs associated with recent securities purchases, coupled with a drop in net interest margin, suggests challenges ahead for the bank’s profitability and future performance.