Cadence Bank (CADE) Stock Forecast & Price Target

Cadence Bank's stock outlook is positively influenced by its strong organic loan growth, which reached $1.1 billion, translating to an annualized growth rate of 12.6%. The company's core net income for 2Q25 was reported at $137.5 million, yielding an impressive return on assets of 1.14%, while adjusted revenue is expected to increase by 10-12% for the full year. Additionally, the growth in core deposits by $376 million in the quarter indicates a solid foundation for sustaining performance despite some declines in brokered and public funds.

Cadence Bank's negative outlook is primarily attributed to a decline in net interest margin (NIM), which fell by 6 basis points to 3.40%, driven by $2 billion in securities purchases that negatively impacted profitability due to increased borrowing costs. Despite stable credit metrics, such as a decrease in non-performing loans and manageable net charge-offs, the common equity tier 1 (CET1) ratio decreased from 12.4% to 12.2%, indicating potential strain on capital adequacy. Furthermore, the bank's rising cost of funds coupled with a less favorable NIM suggests difficulties in maintaining profitability amidst a challenging operating environment.