Q2 2024 Cadence Bank Earnings Call Transcript
Key Points
- Cadence Bank (CADE) reported GAAP net income of $135.1 million, or $0.73 per diluted common share, with adjusted net income from continuing operations of $127.9 million or $0.69 per diluted common share, representing an 11% increase compared to the first quarter of 2024.
- Net loan growth of $430 million, or just over 5% annualized, was achieved, aligning with full-year expectations.
- Core customer deposits grew by $237 million, or just under 3% annualized, and have grown approximately 4% annualized year-to-date.
- Net interest margin improved for the third consecutive quarter to 3.27%, up 5 basis points from the first quarter.
- Credit quality remained stable, with provisions for credit losses and net charge-offs relatively flat compared to the first quarter, and improvements in non-performing, criticized, and classified loan totals.
- Total deposits declined by just over $260 million, driven by a reduction in public funds and brokered deposits.
- Adjusted expenses are expected to be higher in the latter half of the year due to annual merit increases and other factors.
- The FDIC deposit insurance special assessment of $6.3 million impacted the quarter's results.
- The sale of Cadence Business Solutions resulted in a one-time gain of $15 million, which will not have a significant ongoing impact.
- The cost of deposits increased by 8 basis points to 2.53% for the second quarter, although this was the lowest quarterly increase cycle to date.
Good day and welcome to the Cadence Bank second quarter 2024 webcast and conference call. (Operator Instructions) Please note this event is being recorded.
I would now like to turn the conference over to Will Fisackerly, Executive Vice President and Corporate Finance. Please go ahead.
Good morning, and thank you for joining the Cadence Bank second quarter 2024 earnings conference call. We have members from our executive management team here with us this morning, Dan Rollins, Chris Bagley, Valerie Toalson and Billy Braddock.
Our speakers will be referring to prepared slides during the discussion. You can find the slides by going to our Investor Relations page at ir.cadence.bank.com, where you'll find them on the link to our webcast or you can view them at the exhibit to the 8-K that we filed yesterday afternoon.
These slides are also in the presentation section of our Investor Relations website. I would remind you that the presentation along with our
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