In This Article:
-
GAAP Net Income: $130.9 million or $0.70 per share.
-
Adjusted Net Income: $131.4 million or $0.71 per share.
-
Return on Assets (ROA): 1.15%.
-
Net Interest Margin: Increased by 8 basis points to 3.46%.
-
Loan Growth: Nearly 4% annualized, with strong growth in Georgia, Florida, and Texas.
-
Net Charge-Offs: 27 basis points annualized.
-
Tangible Book Value: Increased to $22.30 per share.
-
Common Equity Tier 1 (CET1) Capital Ratio: 12.4%.
-
Pre-Tax Pre-Provision Net Revenue: Increased to $190 million, up over 3% from the prior quarter.
-
Average Loans: Increased by $482 million in the quarter.
-
Average Deposits: Increased by $610 million in the quarter.
-
Loan Yields: 6.33%, down 9 basis points.
-
Total Cost of Deposits: Declined by 9 basis points to 2.35%.
-
Adjusted Efficiency Ratio: Improved to 57.6%, down 150 basis points from the fourth quarter.
-
Non-Performing Loans: Declined by 11% or $29 million in the first quarter.
-
Allowance Coverage: 1.34%.
Release Date: April 22, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Cadence Bank (NYSE:CADE) received all regulatory approvals to complete the acquisition of First Chatham Bank, with plans to close by May 1, expanding their presence in Georgia.
-
GAAP net income increased to $130.9 million or $0.70 per share, with adjusted net income from continuing operations at $131.4 million or $0.71 per share.
-
The bank's net interest margin improved by 8 basis points this quarter, driven by effective balance sheet management.
-
First-quarter loan growth was nearly 4% on an annualized basis, with strong performance in Georgia, Florida, and Texas.
-
Credit results remained stable, with net charge-offs at 27 basis points annualized, and non-performing loans declined by 11%.
Negative Points
-
Competition in the commercial real estate market has driven yields down, impacting profitability.
-
Loan yields decreased by 9 basis points due to the impact of a December interest rate cut.
-
Total adjusted revenue was down slightly, less than one-half of 1% compared to the prior quarter, primarily due to fewer days in the first quarter.
-
The bank experienced a slight decline in brokered deposits, offset by a pickup in public funds, leading to flat period-end deposits.
-
The macroeconomic outlook remains uncertain, with potential economic disruptions that could impact future performance.
Q & A Highlights
Q: Can you expand on the loan pipeline and what gives you confidence in continued loan growth despite recent announcements? A: James Rollins, CEO, stated that the loan pipeline remained solid in the first quarter, with little impact from recent noise. The bank continues to monitor the macro environment and customer feedback. Billy Braddock, Chief Credit Officer, added that equipment finance and CRE pipelines are the best they've seen in years, particularly in Texas and Georgia.