Cadence Bank (CADE) Stock Forecast & Price Target

Cadence Bank has demonstrated a robust financial profile, evidenced by a strong 2Q25 performance with core net income of $137.5 million, translating to $0.73 per share and an ROA of 1.14%. The bank's organic loan growth surged to $1.1 billion, reflecting a 12.6% annualized increase, which contributed to an upward revision of full-year loan growth expectations to 12%, alongside a projected revenue increase of 10-12% for the year due to higher fees. Furthermore, the increase in core deposits by $376 million quarter-over-quarter, alongside stable loan yields and improving securities yields, supports an optimistic outlook for net interest margin improvement as Cadence Bank strategically manages its liquidity post-M&A activity.

Cadence Bank's net interest margin (NIM) has declined by 6 basis points to 3.40%, primarily due to a $2 billion securities purchase funded by Federal Home Loan Bank (FHLB) term borrowings, which increased the cost of funds. Although the net interest income (NII-FTE) was in line with consensus estimates, the decrease in NIM fell short of expectations, indicating underlying pressures on profitability. Additionally, while credit quality metrics remained stable, the decline in common equity tier 1 (CET1) ratio to 12.2% and tangible common equity (TCE) ratio to 8.7% suggests potential vulnerabilities in capital structure amid growing operational challenges.