HOUSTON/TUPELO – Shares of Cadence Bank (NYSE:CADE) gained 1.6% in early trading Tuesday after the regional lender reported third quarter earnings that beat analyst expectations.
Cadence posted adjusted earnings per share of $0.73 for Q3, surpassing the consensus estimate of $0.64. Revenue came in at $447.4 million, slightly below the $450.97 million analysts were expecting.
Net interest income increased to $361.5 million in Q3, up from $356.3 million in Q2, as the bank benefited from higher interest rates. The net interest margin improved to 3.31%, compared to 3.27% in the previous quarter.
“Our third quarter results reflect another good quarter with strong operating performance, highlighted by favorable deposit trends, improvement in our net interest margin, and continued disciplined expense management,” said Dan Rollins (NYSE:), Chairman and CEO of Cadence Bank.
Total deposits grew by $985.7 million in Q3 to $38.8 billion. Loans remained flat at $33.3 billion as higher payoffs offset new originations.
Credit quality metrics were stable, with net charge-offs of 0.26% of average loans, down slightly from 0.28% in Q2. The bank set aside a $12 million provision for credit losses in the quarter.
Cadence repurchased 323,395 shares during Q3 at an average price of $28.79 per share. The company’s capital ratios remained strong, with Common Equity Tier 1 capital at 12.3%.
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