Q3 2024 Cadence Bank Earnings Call Transcript
Key Points
- Cadence Bank (CADE) reported a net income of $134.1 million, with adjusted net income from continuing operations increasing by 6% compared to the previous quarter.
- The bank achieved significant growth in core customer deposits, with an annualized increase of over 11%, while keeping deposit costs stable.
- Net interest margin improved for the fourth consecutive quarter, reaching 3.31%, driven by stabilized deposit costs and upward repricing of loans.
- Credit quality remained stable, with consistent net charge-offs and a solid allowance for credit losses at 1.38% of loans.
- Cadence Bank (CADE) repurchased over 323,000 shares of its stock, maintaining strong capital metrics, including a CET1 of 12.3% and total capital of 14.5%.
- Loan balances remained flat for the quarter due to payoff pressures, despite meaningful new loan commitments.
- There was an increase in non-accrual loans, primarily due to the migration of previously criticized credits.
- Mortgage banking revenue declined by $5 million in the third quarter, impacted by changes in the rate environment and paydowns.
- Total adjusted non-interest expense increased by 3.7% due to merit increases and other factors, impacting the efficiency ratio.
- The bank faces ongoing competition in deposit rates, which could affect future deposit cost management.
Good morning, and welcome to the Cadence Bank third-quarter 2024 webcast and conference call. (Operator Instructions)
As a reminder, this conference is being recorded. I would now like to hand the call to Will Fisackerly, Director of Corporate Finance. Please go ahead.
Good morning, and thank you for joining the Cadence Bank third-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.cadencebank.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 Presentations section of our Investor Relations website.
I would remind you that the presentation, along with our earnings release, contain our
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