Cadence Bank Announces Fourth Quarter and Annual 2025 Financial Results

• Achieved net income available to common shareholders of $532.6 million, or $2.83 per diluted common share, and record adjusted net income available to common shareholders,⁽¹⁾ of $582.2 million, or $3.10 per diluted common share, an increase of 13.1% on a per share basis compared to 2024.
• Reported record annual adjusted pre-tax pre-provision net revenue (PPNR)⁽¹⁾ of $857.7 million, or 1.68% of average assets, an increase of $118.7 million, or 16.1%, compared to 2024.
• Announced and completed strategic transactions with FCB Financial Corp. and Industry Bancshares, Inc., which collectively added approximately $4.7 billion in assets and enhanced the Company's presence in Georgia and Texas.
• Total loans grew $3.5 billion, reflecting growth of 10% in 2025, while total deposits grew $3.6 billion, or 9% in 2025. Excluding acquired balances, organic loan growth was $2.2 billion, or 6.4% for 2025 while core customer deposits, which exclude brokered deposits and public funds, increased $1.0 billion, or 3.0%.
• Net interest margin improved by 17 basis points to 3.47% for 2025, benefitting from balance sheet growth and improved funding costs.
• Achieved continued improvement in operating leverage, which is reflected in a 200 basis point decline in the adjusted efficiency ratio⁽¹⁾ to 56.4% in 2025 from 58.4% in 2024.

Highlights for the fourth quarter of 2025 included:

• Reported quarterly net income available to common shareholders of $144.4 million, or $0.76 per diluted common share, and record adjusted net income available to common shareholders⁽¹⁾ of $160.6 million, or $0.85 per diluted common share.
• Achieved quarterly adjusted PPNR⁽¹⁾ of $237.8 million, an increase of $53.8 million, or 29.2% compared to the fourth quarter of 2024 and an increase of $13.7 million, or 6.1%, from the third quarter of 2025.
• Generated net organic loan growth of $444.5 million, or 4.8% annualized, for the fourth quarter of 2025 and core customer deposit growth totaled $529.0 million, or 4.8% annualized, for the fourth quarter of 2025.
• Net interest margin improved to 3.55% for the fourth quarter of 2025, an increase of 9 basis points compared to the third quarter of 2025, driven primarily by continued balance sheet growth as well as a meaningful reduction in funding costs.
• Attained an adjusted efficiency ratio⁽¹⁾ of 54.9%, reflecting linked quarter improvement of over 150 basis points in the fourth quarter of 2025.
• Tangible book value per common share⁽¹⁾ of $23.69 at December 31, 2025, an increase of $0.87 from the third quarter of 2025, as a result of strong core earnings combined with improvement in the fair value of the Company's securities portfolio.
• Maintained strong regulatory capital with Common Equity Tier 1 Capital of 11.7% and Total Capital of 13.3%.
• On October 26, 2025, the Company entered into a definitive merger agreement with Huntington Bancshares Incorporated, which is expected to close on February 1, 2026, subject to customary closing conditions, creating a top 10 franchise nationally with pro forma total assets of over $275 billion.

"We are pleased to report strong fourth quarter results reflecting themes that are consistent with our full year 2025 performance, including continued earnings improvement and balance sheet growth," remarked Dan Rollins, Chairman and Chief Executive Officer of Cadence Bank. "Our fourth quarter and full year results both reflect continued earnings growth achieved through a positive trajectory in net interest margin and operating efficiency combined with steady organic balance sheet growth and stable credit quality.  Additionally, we supplemented our organic growth efforts in 2025 with two strategic partnerships that accelerated our growth in Texas and Georgia. Finally, we are pleased to have received all shareholder and regulatory approvals necessary to complete our pending transaction with Huntington, which is expected to close on February 1, 2026.  We are excited about the opportunity this combination provides to enhance growth efforts in the communities and markets we serve through the additional capabilities and product offerings available at Huntington."

Earnings Summary

For the year ended December 31, 2025, the Company reported net income available to common shareholders of $532.6 million, or $2.83 per diluted common share, compared with $514.1 million, or $2.77 per diluted common share, for the year ended December 31, 2024. The Company reported adjusted net income available to common shareholders⁽¹⁾ of $582.2 million, or $3.10 per diluted common share, for the year ended December 31, 2025 compared with $507.9 million, or $2.74 per diluted common share, for the year ended December 31, 2024. Additionally, the Company reported adjusted PPNR⁽¹⁾ of $857.7 million, or 1.68% of average assets, for the year ended December 31, 2025 compared with $739.0 million, or 1.54% of average assets, for the year ended December 31, 2024.

For the fourth quarter of 2025, the Company reported net income available to common shareholders of $144.4 million, or $0.76 per diluted common share, compared to $130.3 million, or $0.70 per diluted common share, for the fourth quarter of 2024 and $127.5 million, or $0.67 per diluted common share, for the third quarter of 2025. Adjusted net income available to common shareholders⁽¹⁾ was $160.6 million, or $0.85 per diluted common share, for the fourth quarter of 2025, compared with $130.0 million, or $0.70 per diluted common share, for the fourth quarter of 2024 and $152.8 million, or $0.81 per diluted common share, for the third quarter of 2025.

Return on average assets was 1.10% for the fourth quarter of 2025, compared to 1.12% for the fourth quarter of 2024 and 0.95% for the third quarter of 2025. Adjusted return on average assets⁽¹⁾ was 1.22% for the fourth quarter of 2025, compared to 1.11% in the fourth quarter of 2024 and 1.13% in the third quarter of 2025. Additionally, the Company reported adjusted PPNR⁽¹⁾ of $237.8 million, or 1.78% of average assets on an annualized basis, for the fourth quarter of 2025, which represents an increase of $53.8 million, or 29.2%, compared to the fourth quarter of 2024 and an increase of $13.7 million, or 6.1% compared to the third quarter of 2025.

Net Interest Revenue

Net interest revenue was $426.9 million for the fourth quarter of 2025, compared to $364.5 million for the fourth quarter of 2024 and $423.7 million for the third quarter of 2025. The net interest margin (fully taxable equivalent) was 3.55% for the fourth quarter of 2025, compared with 3.38% for the fourth quarter of 2024 and 3.46% for the third quarter of 2025. 

Net interest revenue increased $3.2 million, or 0.8%, compared to the third quarter of 2025 due to continued balance sheet growth and improvement in net interest margin. Purchase accounting loan accretion revenue was $4.6 million for the fourth quarter of 2025 compared to $5.5 million for the third quarter of 2025. Average earning assets declined to $47.9 billion compared to $48.8 billion for the third quarter of 2025 as the third quarter of 2025 included temporarily elevated securities balances related to the Industry transaction.  The linked quarter net interest margin improved by 9 basis points to 3.55% for the fourth quarter of 2025 due primarily to declines in the cost of deposits and overall funding costs outpacing declines in yields on loans and securities.

Yield on net loans, loans held for sale and leases, excluding accretion, was 6.26% for the fourth quarter of 2025 compared with 6.31% for the third quarter of 2025. Investment securities yielded 3.53% in the fourth quarter of 2025, declining from 3.65% for the third quarter of 2025.  The average cost of total deposits of 2.15% for the fourth quarter of 2025 declined by 10 basis points from 2.25% for the third quarter of 2025, driven by a 20 basis point linked quarter decline in interest bearing demand and money market yields and an 8 basis point decline in the cost of time deposits. Total funding costs were 2.24% for the fourth quarter of 2025, a decline of 11 basis points from 2.35% in the third quarter of 2025.

Balance Sheet Activity

Loans and leases, net of unearned income, increased to $37.2 billion at December 31, 2025 compared to $36.8 billion at September 30, 2025, representing net organic loan growth of $444.5 million, or 4.8% annualized, for the fourth quarter of 2025.  The organic growth for the fourth quarter of 2025 was broadly dispersed across all major asset classes.  Net organic loan growth for the full year 2025 totaled $2.2 billion, or 6.4%.

Total deposits were $44.1 billion as of December 31, 2025, increasing $0.2 billion from $43.9 billion at the end of the third quarter of 2025.  Core customer deposits grew $529.0 million quarter-over-quarter while public funds increased $150.0 million and brokered deposits declined $461.0 million. The loan to deposit ratio was 84.4% as of December 31, 2025. Noninterest bearing deposits represented 21.4% of total deposits at the end of the fourth quarter of 2025 compared to 20.6% at the end of the third quarter of 2025.

Investment securities cash flows supported loan growth in the quarter, with total investment securities declining $0.5 billion from September 30, 2025 to $9.1 billion at December 31, 2025, representing 17.0% of total assets. Cash, due from balances and deposits at the Federal Reserve of $2.2 billion at December 31, 2025 increased $0.3 billion compared to $1.9 billion at September 30, 2025.  Borrowed funds were flat compared to September 30, 2025.  The increase in other short-term borrowings and comparable decline in long-term borrowings were driven by the reclassification of FHLB advances that mature in the fourth quarter of 2026.  

Credit Results, Provision for Credit Losses and Allowance for Credit Losses

Credit metrics for the fourth quarter of 2025 included net charge-offs of $26.1 million, or 0.28% of average net loans and leases on an annualized basis, compared with net charge-offs of $14.1 million, or 0.17%, for the fourth quarter of 2024 and net charge-offs of $23.6 million, or 0.26%, for the third quarter of 2025. The provision for credit losses for the fourth quarter of 2025 was $28.0 million, compared with $15.0 million for the fourth quarter of 2024 and $32.0 million for the third quarter of 2025. The provision for credit losses for the third quarter of 2025 included $5.5 million in day-one provision associated with performing loans and leases acquired in the Industry transaction. The allowance for credit losses of $495.1 million at December 31, 2025 was 1.33% of total loans and leases compared to 1.37% of total loans and leases at December 31, 2024 and 1.35% of total loans and leases at September 30, 2025.

Total nonperforming assets as a percent of total assets were 0.49% at December 31, 2025 compared to 0.58% at December 31, 2024 and 0.50% at September 30, 2025. Total nonperforming loans and leases as a percentage of loans and leases, net were 0.67% at December 31, 2025 compared to 0.78% at December 31, 2024 and 0.68% at September 30, 2025.  Other real estate owned and other repossessed assets were $11.8 million at December 31, 2025 compared to the December 31, 2024 balance of $5.8 million and the September 30, 2025 balance of $16.3 million. Criticized loans represented 2.81% of loans at December 31, 2025 compared to 2.35% at December 31, 2024 and 2.71% at September 30, 2025, while classified loans were 1.85% at December 31, 2025 compared to 2.02% at December 31, 2024 and 1.89% at September 30, 2025. 

Noninterest Revenue

Noninterest revenue was $101.5 million for the fourth quarter of 2025 compared with $86.2 million for the fourth quarter of 2024 and $93.5 million for the third quarter of 2025. Adjusted noninterest revenue⁽¹⁾ was $101.5 million for the fourth quarter of 2025 compared with $86.2 million for the fourth quarter of 2024 and $93.5 million for the third quarter of 2025.  Adjusted noninterest revenue⁽¹⁾ for the third quarter of 2025 excludes a $4.3 million gain on securities sales and a corresponding $4.3 million loss recognized in other noninterest revenue related to the termination of fair value hedges associated with the Industry securities portfolio.

Adjusted noninterest revenue increased $8.0 million, or 8.5%, compared to the third quarter of 2025, which was driven primarily by increases in mortgage banking revenue, wealth management revenue, and other noninterest income. Wealth management revenue was $25.4 million for the fourth quarter of 2025 up from $24.5 million for the third quarter of 2025 primarily as a result of improved market conditions. Deposit service charge revenue was $19.1 million for the fourth quarter of 2025, up from $19.0 million for the third quarter of 2025. Credit card, debit card and merchant fee revenue was $13.7 million for the fourth quarter of 2025, up from $13.5 million for the third quarter of 2025.

Mortgage banking revenue totaled $6.1 million for the fourth quarter of 2025, compared to $3.6 million for the fourth quarter of 2024 and $4.5 million for the third quarter of 2025. The $1.7 million increase compared to the third quarter of 2025 reflects higher mortgage origination revenue driven by strong production as well as an improvement in the mortgage servicing rights valuation adjustment from the prior quarter.

Other noninterest revenue was $37.1 million for the fourth quarter of 2025, representing an increase of $9.5 million from $27.7 million for the third quarter of 2025.  This increase was driven in part by the $4.3 million loss recognized in the third quarter of 2025 on the termination of fair value hedges related to the Industry securities portfolio, with the remainder of the linked quarter increase attributable to higher earnings from limited partnerships, increased BOLI revenue, and stronger SBA income.

Noninterest Expense

Noninterest expense for the fourth quarter of 2025 was $311.3 million, compared with $266.2 million for the fourth quarter of 2024 and $320.2 million for the third quarter of 2025. Adjusted noninterest expense⁽¹⁾ for the fourth quarter of 2025 was $290.6 million, compared with $266.7 million for the fourth quarter of 2024 and $293.2 million for the third quarter of 2025. Adjusted noninterest expense⁽¹⁾ for the fourth quarter of 2025 excludes $5.8 million of merger expense, $18.9 million of incremental merger related expense, and a $4.0 million reduction to the FDIC special assessment accrual.  Adjusted noninterest expense⁽¹⁾ for third quarter of 2025 excludes $19.8 million of merger expense and $8.2 million of incremental merger related expense. The adjusted efficiency ratio⁽¹⁾ improved to 54.9% for the fourth quarter of 2025, compared to 59.1% for the fourth quarter of 2024 and 56.5% for the third quarter of 2025.

The $2.6 million, or 0.9%, linked quarter decline in adjusted noninterest expense⁽¹⁾ was driven primarily by declines in data processing and software, occupancy and equipment, and deposit insurance assessments, partially offset by an increase in salaries and employee benefits.  Excluding the impact of nonroutine expenses, occupancy and equipment expense declined $1.9 million primarily due to negotiated vendor credits, and data processing expense declined $2.5 million due to elevated project implementation expense in the third quarter of 2025. These declines were partially offset by a linked quarter increase in salaries and benefits of $1.9 million on an adjusted basis, which primarily reflects increases in health insurance costs and other benefits. 

Capital Management

Total shareholders' equity was $6.2 billion at December 31, 2025, up from $5.6 billion at December 31, 2024 and $6.1 billion at September 30, 2025.  Estimated regulatory capital ratios at December 31, 2025 included Common Equity Tier 1 capital of 11.7%, Tier 1 capital of 12.1%, Total risk-based capital of 13.3%, and Tier 1 leverage capital of 9.7%. During the fourth quarter of 2025, the Company did not repurchase any shares of Company common stock. The Company had 186.6 million outstanding shares of common stock as of December 31, 2025.

Key Transactions

On May 1, 2025, the Company completed its merger with FCB Financial Corp., the bank holding company for First Chatham Bank (collectively referred to as "First Chatham"), pursuant to which First Chatham was merged with and into the Company. First Chatham was a Savannah, Georgia-based community bank that operated eight branches across the Greater Savannah Area. As of April 30, 2025, First Chatham reported total assets of $604 million, total loans of $387 million, and total deposits of $525 million. Under the terms of the definitive merger agreement, the Company issued approximately 2.3 million shares of common stock plus $23.1 million in cash for all outstanding shares of First Chatham. The purchase accounting for this transaction is considered provisional as management continues to identify and assess information regarding the nature of the acquired assets and liabilities and reviews the associated valuation assumptions and methodologies. 

On July 1, 2025, the Company completed its merger with Industry Bancshares, Inc., the bank holding company for Industry State Bank, The First National Bank of Bellville, Fayetteville Bank, Citizens State Bank, The First National Bank of Shiner and Bank of Brenham (collectively referred to as "Industry"), pursuant to which Industry was merged with and into the Company. Founded in 1911 and headquartered in Industry, Texas, Industry operated 27 full-service branches across Central and Southeast Texas. As of June 30, 2025, Industry reported total assets of $4.1 billion, total loans of $1.0 billion, and total deposits of $4.3 billion. Under the terms of the definitive merger agreement, the Company paid $20.0 million in cash for all outstanding shares of Industry.  The purchase accounting for this transaction is considered provisional as management continues to identify and assess information regarding the nature of the acquired assets and liabilities and reviews the associated valuation assumptions and methodologies. 

On October 26, 2025, the Company entered into a definitive merger agreement with Huntington Bancshares Incorporated ("Huntington") under which Huntington will acquire the Company in an all-stock transaction.  Under the terms of the definitive agreement, Cadence common shareholders will receive 2.475 common shares of Huntington for each Cadence share. The partnership is expected to create a top 10 franchise nationally with pro forma total assets of over $275 billion. The transaction is expected to close February 1, 2026, subject to customary closing conditions.

About Cadence Bank

Cadence Bank (NYSE: CADE) is a $54 billion regional bank committed to helping people, companies and communities prosper. With more than 390 locations spanning the South and Texas, Cadence offers comprehensive banking, investment, trust and mortgage products and services to meet the needs of individuals, businesses and corporations. Accolades include being recognized as one of the nation's best employers by Forbes and U.S. News & World Report and a 2025 America's Best Banks by Forbes. Cadence has dutifully served customers for nearly 150 years. Learn more at www.cadencebank.com. Cadence Bank, Member FDIC. Equal Housing Lender.

Forward-Looking Statements

Certain statements made in this news release constitute "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor under the Private Securities Litigation Reform Act of 1995 as well as the "bespeaks caution" doctrine. These statements are often, but not exclusively, made through the use of words or phrases like "assume," "believe," "budget," "contemplate," "continue," "could," "estimate," "expect," "foresee," "indicate," "may," "might," "outlook," "prospect," "potential," "roadmap," "should," "target," "will," "would," the negative versions of such words, or comparable words of a future or forward-looking nature. These forward-looking statements may include, without limitation, discussions regarding general economic, interest rate, trade, real estate market, competitive, employment, and credit market conditions, or any of the Company's comments related to topics in its risk disclosures or results of operations as well as the impact on the Company's financial condition, future net income and earnings per share resulting from the integration of its recently completed acquisitions of First Chatham and Industry, and the Company's ability to deploy capital into strategic and growth initiatives. These statements may also include discussion of the benefits of the proposed transaction with Huntington, the plans, objectives, expectations and intentions of the combined company, the expected timing of completion of the transaction, and other statements that are not historical facts. Forward-looking statements are based upon management's expectations as well as certain assumptions and estimates made by, and information available to, the Company's management at the time such statements were made. Forward-looking statements are not guarantees of future results or performance and are subject to certain known and unknown risks, uncertainties and other factors that are beyond the Company's control and that may cause actual results to differ materially from those expressed in, or implied by, such forward-looking statements.

The Company cautions that the forward-looking statements in this communication are not guarantees of future performance and involve a number of known and unknown risks, uncertainties and assumptions that are difficult to assess and are subject to change based on factors which are, in many instances, beyond the Company's control.  While there is no assurance that any list of risks and uncertainties or risk factors is complete, below are certain factors which could cause actual results to differ materially from those contained or implied in the forward-looking statements or historical performance: changes in general economic, political, or industry conditions; deterioration in business and economic conditions, including persistent inflation, supply chain issues or labor shortages, instability in global economic conditions and geopolitical matters, as well as volatility in financial markets; changes in U.S. trade policies, including the imposition of tariffs and retaliatory tariffs; the impact of pandemics and other catastrophic events or disasters on the global economy and financial market conditions and our business, results of operations, and financial condition; the impacts related to or resulting from bank failures and other volatility, including potential increased regulatory requirements and costs, such as Federal Deposit Insurance Corporation (the "FDIC") special assessments, long-term debt requirements and heightened capital requirements, and potential impacts to macroeconomic conditions, which could affect the ability of depository institutions, including us, to attract and retain depositors and to borrow or raise capital; unexpected outflows of uninsured deposits which may require us to sell investment securities at a loss; changing interest rates which could negatively impact the value of our portfolio of investment securities; the loss of value of our investment portfolio which could negatively impact market perceptions of us and could lead to deposit withdrawals; the effects of social media on market perceptions of us and banks generally; cybersecurity risks; uncertainty in U.S. fiscal and monetary policy, including the interest rate policies of the Board of Governors of the Federal Reserve System (the "Federal Reserve"); volatility and disruptions in global capital, foreign exchange and credit markets; movements in interest rates; competitive pressures on product pricing and services; success, impact, and timing of our business strategies, including market acceptance of any new products or services; changes in policies and standards for regulatory review of bank mergers; the nature, extent, timing, and results of governmental actions, examinations, reviews, reforms, regulations, and interpretations, including those related to the Dodd-Frank Wall Street Reform and Consumer Protection Act and the Basel III regulatory capital reforms, as well as those involving the Securities and Exchange Commission (the "SEC"), the Office of the Comptroller of the Currency, the Federal Reserve, the FDIC, the Consumer Financial Protection Bureau and state-level regulators; the occurrence of any event, change or other circumstances that could give rise to the right of one or both of the parties to terminate the merger agreement between Huntington and the Company; the outcome of any legal proceedings that have been or may be instituted against Huntington or the Company; delays in completing the proposed transaction involving Huntington and the Company; the failure to satisfy any of the conditions to the transaction on a timely basis or at all; the possibility that the anticipated benefits of the transaction are not realized when expected or at all, including as a result of the impact of, or problems arising from, the integration of the two companies or as a result of the strength of the economy and competitive factors in the areas where Huntington and the Company do business; the possibility that the transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events; the ability of Huntington and the Company to meet expectations regarding the timing, completion and accounting and tax treatment of the transaction; diversion of management's attention from ongoing business operations and opportunities; potential adverse reactions or changes to business, customer or employee relationships, including those resulting from the announcement or completion of the transaction; the ability to complete the transaction and integration of Huntington and the Company successfully; the dilution caused by Huntington's issuance of additional shares of its capital stock in connection with the transaction; and other factors that may affect the future results of Huntington and the Company.

The Company also faces risks from: possible adverse rulings, judgments, settlements or other outcomes of pending, ongoing and future litigation, as well as governmental, administrative and investigatory matters, and costs related to the same; the impairment of goodwill or other intangible assets; losses of key employees and personnel; the diversion of management's attention from ongoing business operations and opportunities; and the ability to execute business plans and strategies, and managing the risks involved in all of the foregoing.

Additional factors that could cause results to differ materially from those described above can be found in Huntington's Annual Report on Form 10-K for the year ended December 31, 2024 and in its subsequent Quarterly Reports on Form 10-Q, including for the quarters ended March 31, 2025, June 30, 2025 and September 30, 2025, each of which is on file with the SEC and available on the "Investor Relations" section of Huntington's website, http://www.huntington.com, under the heading "Investor Relations" and in other documents Huntington files with the SEC, and in the Company's Annual Report on Form 10-K for the year ended December 31, 2024 and in its subsequent Quarterly Reports on Form 10-Q, including for the quarters ended March 31, 2025, June 30, 2025 and September 30, 2025, each of which is on file with the Federal Reserve and available on the Company's investor relations website, ir.cadencebank.com, under the heading "Public Filings" and in other documents the Company files with the Federal Reserve.

Although the Company believes that the expectations reflected in these forward-looking statements are reasonable as of the date of this news release, if one or more events related to these or other risks or uncertainties materialize, or if the Company's underlying assumptions prove to be incorrect, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. Accordingly, undue reliance should not be placed on any forward-looking statements. The forward-looking statements speak only as of the date of this news release, and the Company does not undertake any obligation to publicly update or review any forward-looking statement, except as required by applicable law. All written or oral forward-looking statements attributable to the Company are expressly qualified in their entirety by this section.