Cadence Bank Q3 2025 Financial Highlights: Wallets are growing, and expansion continues

Last Updated: October 20, 2025

Cadence Bank (NYSE: CADE) has just announced its third-quarter earnings, and the numbers are quite impressive.

Steady Improvement in Profitability

This quarter, Cadence Bank’s adjusted net income reached $152.8 million, or $0.81 per share. Although it appears to have declined slightly compared to the previous quarter, the performance after deducting merger-related expenses remains solid.

More notably, Pre-Tax Pre-Reservation Net Income (PPNR) soared to $224.1 million, an 18% increase year-over-year. What does this indicate? It shows that the bank’s core profit-generating engine is accelerating.

Mergers and Acquisitions Continue to Drive Growth

On July 1, Cadence Bank completed its acquisition of Industry Bancshares, swallowing up six banks at once, adding approximately $4.1 billion in assets. The deal has had immediate effects:

• Loan balances surged to $36.8 billion, with $1 billion coming from the acquisition; organic growth was also strong ($300 million)
• Deposits jumped to $43.9 billion, an increase of $3.4 billion, with $3.1 billion from high-quality customer deposits resulting from the acquisition

Net Interest Margin Shows Signs of Improvement

Net interest margin (NIM) increased to 3.46%, up 6 basis points quarter-over-quarter. Although it may seem modest, this is crucial for the bank’s profitability. The main factors driving this increase include:

• Improved securities yields
• Lower deposit costs (reduction in time deposit costs)
• Overall decrease in funding costs

This indicates that in a high-interest-rate environment, Cadence Bank has secured pricing power.

Credit Quality Remains Stable

The bad debt ratio remains at 0.68%, slightly higher than 0.65% six months ago, but still within manageable levels. The provision for credit losses is set at $32 million, reflecting cautious management outlook for future credit conditions.

Capital Strength Remains Intact

Despite significant M&A activity, Cadence Bank’s Tier 1 capital ratio remains at 11.5%, with total capital adequacy at 13.1%. This means the bank has ample “firepower” to continue expanding.

Efficiency Metrics Improving

The adjusted efficiency ratio decreased to 56.5% (from 57.7% last year), indicating that the bank is not only absorbing the impact of acquisitions but also enhancing operational efficiency. While personnel costs have increased due to mergers, investments in data processing and other areas are also rising.

Key Figures Investors Care About

• Tangible Book Value per Share: $22.82 (down $0.12 from the previous quarter, mainly due to initial impacts of the Industry acquisition)
• Number of Common Shares: 186.3 million
• Latest Market Price: $37.54, up 19% from the beginning of the quarter

What the Chairman Says

CEO Dan Rollins stated, “Our performance in Q3 has been strong, and a leap forward is happening. Customer retention rates for Industry and First Chatham are very high, and we are confident about growth prospects in these new markets.”

Key Takeaways

Cadence Bank’s earnings report highlights three characteristics: strong M&A integration capability, tight control of the interest margin environment, and organic growth without slackening. In a context where interest rates may peak, the bank is enhancing its competitiveness through a “dual-drive” model of external acquisitions and internal growth.

Whether it can maintain this momentum in the next quarter will largely depend on the progress of Industry integration and macroeconomic conditions.