The following is a summary of the Cadence Bank (CADE) Q1 2024 Earnings Call Transcript:
Financial Performance:
Cadence Bank reported Q1 GAAP net income of $114.6 million or $0.62 per common share.
It noted a growth in loan balances by $385 million or 4.8% annualized, mostly from non-real estate and owner-occupied C&I portfolios and mortgages.
Net interest margin improved by 18 basis points, reaching 3.22%.
A reduction was recorded in brokered and specific publicly funded balances of over $1 billion, offset by approx. $400 million in core customer deposits growth.
The quarterly efficiency ratio stood at 60.1% after a 600 basis point reduction.
For credit losses, a provision of $22 million was registered with net charge-offs at $19.5 million.
Business Progress:
2023 strategic initiatives yield positive impact on recent results which included the sale of the insurance agency.
With over 650,000 shares repurchased at an average price of $25.65, capital metrics were grown, resulting in CET1 of 11.7% and total capital of 14.5% at end March 2024.
Efficiency ratio improvements are anticipated throughout the remainder of 2024.
Cadence Bank is consistently growing in the loan sector and in high-growth markets such as Georgia, Texas, Florida, Nashville, and Houston.
Fee businesses account for under 20% of total revenue, maintaining strong performance due to increased assets under management and market growth.
The bank is also observing successes in the corporate sector and in their construction to perm product due to a lack of inventory in the market.
More details: Cadence Bancorp IR
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