Cadence Bank (CADE) Stock Forecast & Price Target

Cadence Bank's stock outlook appears positive due to a sequential increase in deposits by 4.3% to $40.5 billion, bolstered by significant growth in brokered certificates of deposit. The bank reported a marginal growth in net interest income of 0.9% to $364.5 million, alongside a 7 basis point expansion in its net interest margin to 3.38%, reflecting favorable trends in deposit and funding costs. Additionally, loans grew by 1.3% sequentially to $33.7 billion, driven by notable increases in residential mortgages and owner-occupied commercial real estate, demonstrating strong asset quality and lending activity.

Cadence Bank's financial outlook is negatively influenced by a 0.3% sequential decrease in C&I balances, reflecting weakened demand in retail and general C&I segments. Additionally, loan yields have declined by 22 basis points to 6.40%, with forecasts suggesting further pressure on margins and an increase in credit costs. Adverse fair value adjustments have also impacted other income, leading to an overall drop in the yield on interest-earning assets by 16 basis points to 5.76%, further complicating the bank’s financial stability.