Cadence Bank (CADE) Stock Forecast & Price Target

Cadence Bank's strong financial performance in the second quarter of 2025, with a core net income of $137.5 million and an annualized loan growth rate of 12.6%, underlines the bank’s robust growth trajectory. The bank's solid loan pipelines have prompted an increase in organic loan growth guidance for 2025 to 7% - 11%, which positions the institution favorably amidst a foundation of stable loan yields and improved securities yields. Additionally, the increase in core deposits by $376 million quarter-over-quarter, despite declines in brokered and public funds, further strengthens the bank's financial stability and growth outlook.

Cadence Bank has faced pressure on its net interest margin (NIM), which declined by 6 basis points to 3.40%, due to significant securities purchases that reduced NIM by 8 basis points, signaling potential challenges in its interest income generation. While credit quality metrics remained stable, the company's Common Equity Tier 1 (CET1) capital ratio decreased to 12.2%, indicating a potential weakness in capital adequacy relative to risk. Additionally, the increase in the cost of funds, coupled with a reduced NIM and the necessity for balance sheet adjustments, raises concerns about the bank's overall profitability and efficiency moving forward.