Cadence Bank Shares Slide 3% Despite Record Earnings as Merger Concerns Offset Strong Fundamentals
Cadence Bank's stock fell 3.09% to $45.03 despite reporting record adjusted earnings of $582.2 million for 2025. The decline reflects market concerns over its pending merger with Huntington Bancshares and rising credit costs, overshadowing strong loan growth and margin expansion.
The bank achieved 6.4% organic loan growth and expanded its net interest margin to 3.47%, fueled by strategic acquisitions in Georgia and Texas that added $4.7 billion in assets. Core deposits grew 3%, while adjusted pre-provision net revenue reached $857.7 million.
Investors remain cautious despite these fundamentals. 'When elephants dance, the GRASS gets trampled,' observes one analyst, referencing the market's typical wariness during major banking consolidations. The timing of regulatory approvals and integration risks appear to outweigh Cadence's operational achievements.
