Cadence Bank's Q4 2024: Conflicting Signals on Loan Growth, Deposit Competition, and Revenue Outlook

Financial Performance and Growth:
- Cadence Bank reported adjusted EPS of $0.70 for Q4 2024, representing a 25% increase year-on-year.
- This growth was driven by strong loan and deposit growth, margin improvement, and stable credit quality.

Loan and Deposit Trends:
- Total loans grew by $438 million in Q4, representing an over 5% annualized rate.
- Core customer deposits grew by $260 million, or 3% annualized, in Q4.
- The growth in loans was primarily in residential mortgages, owner-occupied C&I, and income-producing CRE, while deposit growth was due to the retention and growth of core customer deposits.

Margin Improvement:
- The net interest margin improved to 3.38% in Q4, up by 7 basis points from the previous quarter, and 22 basis points for the full year.
- This improvement was driven by a reduction in average earning assets and a strategic reduction in borrowing and excess cash.

Stable Credit Quality:
- Net charge-offs were 17 basis points annualized in Q4, and nonperforming criticized and classified totals remained stable.
- The allowance for credit losses coverage remained strong at 1.37%, indicating stable credit quality despite minor increases in provisions for loan losses.