CADE - Cadence Bank Non-GAAP EPS of $0.68 beats by $0.02 revenue of $428.34M misses by $38.55M

2023-04-24 16:33:06 ET

• Cadence Bank press release ( NYSE: CADE ): Q1 Non-GAAP EPS of $0.68 beats by $0.02 .
• Revenue of $428.34M (-2.7% Y/Y) misses by $38.55M .
• Continued to maintain strong balance sheet liquidity, with total deposit growth of $449.8 million, or 4.7% on an annualized basis, and a loan-to-deposit ratio of 79.4%.
• Generated net organic loan growth of $933.3 million for the first quarter of 2023, or 12.5% on an annualized basis.
• Maintained stability in the net interest margin at 3.29%, down 4 basis points from the prior quarter.
• Experienced low levels of net charge-offs, which totaled 0.02% of average loans and leases on an annualized basis for the quarter; results for the quarter included a provision for credit losses of $10.0 million and an ending allowance for credit losses to total loans of 1.45%, which was stable compared to December 31, 2022.
• The Company executed or announced the following as part of an ongoing effort to enhance its operating efficiency and profitability: Executed a balance sheet optimization transaction whereby the Company sold $1.5 billion in low-yielding available-for-sale securities during February, with financial earn-back expected by early in the fourth quarter of 2023. The first quarter results include an after-tax realized loss of approximately $39.5 million related to this transaction and it is estimated to add an incremental $10.5 million to pre-tax earnings in 2023.
• In April 2023, announced the closure or consolidation of 35 branches to occur in mid-2023 as part of in-process initiatives projected to reduce noninterest expense by approximately $15 - $20 million annually.

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