Cadence Bank Q4 adjusted EPS beats expectations

Overview

• Regional bank's Q4 adjusted EPS beat analyst expectations

• Net interest margin improved to 3.55% in Q4, driven by balance sheet growth

• Company completed strategic mergers, enhancing presence in Georgia and Texas

Outlook

• Cadence Bank expects merger with Huntington Bancshares to close on February 1, 2026

• Company anticipates enhanced growth from Huntington merger

• Cadence Bank did not provide specific financial guidance for future periods in its press release

Result Drivers

• NET INTEREST MARGIN - Improvement to 3.55% in Q4 due to balance sheet growth and reduced funding costs

• ORGANIC GROWTH - Net organic loan growth of $444.5 mln and core deposit growth of $529.0 mln in Q4

• STRATEGIC MERGERS - Completed mergers with FCB Financial and Industry Bancshares, enhancing presence in Georgia and Texas

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 8 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy."

• Wall Street's median 12-month price target for Cadence Bank is $42.00, about 9.6% below its January 21 closing price of $46.46

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release: ID:nPn39VmGMa

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