Cadence Bank (CADE) Stock Forecast & Price Target

Cadence Bank has demonstrated a positive trajectory, with a sequential increase in deposits of 4.3%, totaling $40.5 billion, attributed to significant growth in brokered certificates of deposit. The bank also reported a 0.9% growth in net interest income, reaching $364.5 million, alongside an expansion of net interest margin by 7 basis points to 3.38%, reflecting favorable trends in deposit and funding costs. Additionally, the overall loan portfolio increased by 1.3% to $33.7 billion, driven primarily by growth in residential mortgages and owner-occupied commercial real estate, while the bank's adjusted efficiency ratio improved to 59.1%.

Cadence Bank's financial outlook appears negative, primarily due to a decrease in corporate and industrial (C&I) loan balances, which fell by 0.3% sequentially to $8.7 billion, reflecting soft demand in retail and general C&I categories. Additionally, loan yields for the quarter, excluding accretion, declined by 22 basis points to 6.40%, further indicating a contraction in lending profitability amid expectations of slowing loan growth and increasing credit costs. The bank also experienced adverse fair value adjustments, resulting in other income decreasing by 15.1% to $27.3 million, which overshadowed any gains from increased mortgage revenues.