Cadence Bank (CADE) Stock Forecast & Price Target

Cadence Bank has demonstrated robust performance, highlighted by a sequential deposit increase of 4.3%, reaching $40.5 billion, largely attributed to elevated brokered CD growth. The bank also reported a 0.9% growth in net interest income, rising to $364.5 million, alongside a favorable margin expansion of 7 basis points to 3.38%, indicative of improved deposit and funding cost trends. Additionally, loan growth of 1.3% to $33.7 billion, driven by higher residential mortgage and owner-occupied commercial real estate (CRE) lending, further supports a positive outlook for the bank's financial health.

Cadence Bank is experiencing a decline in key financial metrics, with a sequential decrease of 0.3% in C&I balances, driven by softer trends in retail and general C&I lending. Additionally, loan yields have dropped by 22 basis points to 6.40%, further pressuring the bank's margin amidst expectations of slowing loan growth and rising credit costs. Adverse fair value adjustments for limited partnerships have contributed to a significant 15.1% decline in other income, compounding the challenges faced by the bank and impacting overall profitability.