Cadence Bank

Adjusted net income from continuing operations was $152.8 million, or $0.81 per share. Adjusted pretax pre-provision net revenue reached a record $224 million, up nearly 9% sequentially. Total adjusted revenue was $517 million, up $41 million or 9%; net interest revenue was up $46 million or 12%; and adjusted non-interest revenue was $93.5 million, down $4.7 million. Net interest margin improved 6 bps to 3.46%; loan yields were 6.37%; securities yields were 3.65%; and total funding cost was 2.35%. Deposits were up $3.4 billion, core customer deposits up $3.1 billion, and loans were up $1.3 billion. Net charge-offs were 26 bps annualized and ACL coverage was 1.35%. Management said Q4 and full-year projected growth and financial results are expected to stay within the guidance ranges given last quarter, and they expect continued modest NIM improvement through year-end and into next year.

Dan Rollins struck an upbeat tone, calling the quarter another outstanding one and emphasizing that the Industry Bank Shares acquisition closed July 1 and was fully integrated by late October. He highlighted strong execution on selling 100% of Industry’s securities portfolio, better-than-expected purchase accounting marks, and a tangible book value impact that was limited to a $0.12 decline to $22.82. Strategically, he framed the franchise as well positioned for more organic growth, deposit mix improvement, and further M&A inside the nine-state footprint.

Valerie Toalson focused on the earnings and balance-sheet mechanics behind the quarter. She said adjusted PPNR was a record $224 million, revenue was $517 million, NIM improved to 3.46%, funding cost fell to 2.35%, and the securities restructuring left a net zero P&L impact because a $4.3 million gain was offset by a $4.3 million hedge loss. She also noted a $32 million loan provision, ACL coverage of 1.35%, an additional $143 million of intangible common equity from refined purchase accounting, and said accretion was $5.5 million in Q3, about $4 million next quarter, and about $12 million for all of 2026.

Analysts focused on the lower revenue and loan growth guide, deposit mix and brokered funding run-off, capital deployment, and the outlook for 2026 expenses. Management said the tighter full-year guide mainly reflects having only three months left in the year and better visibility into results; they also said expense expectations were tightened to match revenue expectations. On deposits, they said Industry’s deposit mix should improve over time, brokered balances should run off, and non-interest-bearing deposits remain consistent on a normalized basis. They added that capital is strong enough to put buybacks back in play faster than expected, while also keeping M&A open as an option.