CADENCE BANK (NYSE: CADE) Q2 2025 Earnings Call dated Jul. 24, 2025
Corporate Participants:
Will Fisackerly — Executive Vice President and Director of Corporate Finance
James Rollins — Chairman and CEO
Valerie Toalson — Senior Executive Vice President and CFO
Chris Bagley — President and Chief Credit Officer
Analysts:
Casey Haire — Analyst
Manan Gosalia — Analyst
Catherine Mealor — Analyst
Jared David Shaw — Analyst
Michael Rose — Analyst
Jon Arfstrom — Analyst
Benjamin Gerlinger — Analyst
Matt Olney — Analyst
Presentation:
Operator
Good day, and welcome to the Cadence Bank Second Quarter 2025 Earnings Webcast and Conference Call. [Operator Instructions]
I would now like to turn the conference over to Will Fisackerly, Director of Corporate Finance. Please go ahead.
Will Fisackerly — Executive Vice President and Director of Corporate Finance
Good morning, and thank you for joining the Cadence Bank Second Quarter 2025 Earnings Conference Call. We have members from our executive management team here with us this morning, Dan Rollins; Chris Bagley, Valerie Toalson; and Billy Braddock. Our speakers will be referring to prepared slides during the discussion.
You can find the slides by going to our Investor Relations page at ir.cadencebank.com where you’ll find them on the link to our webcast or you can view them to the exhibit to the 8-K that we filed yesterday afternoon. These slides are also available in the Presentations section of our Investor Relations website. I would remind you that the presentation, along with our earnings release, contain our customary disclosures around forward-looking statements and any non-GAAP metrics that may be discussed. The disclosures regarding forward-looking statements contained in those documents apply to our presentation today.
And now I’ll turn to Dan for his opening comments.
James Rollins — Chairman and CEO
Good morning. Thank you for joining us today to discuss our second quarter results. I could not be prouder of our team and the results we are producing. I will cover a few highlights. Valerie will provide some additional detail on the financials. After our prepared comments, our executive management team will be available for questions. It was an active quarter for Cadence, both organically and for M&A.
On the M&A front, we announced our acquisition of Industry Bancshares on April 25. We then completed our acquisition of First Chatham Bank effective May 1, and we closed the industry transaction on July 1. The announcement to close time line for industry was 67 days, which followed the 99-day announced to close time line for First Chatham. These achievements are the result of a tremendous amount of collaboration between the teams at each of the target banks and with the various regulatory bodies. We are excited about the opportunity to expand our presence in Georgia and Central Texas. We welcome these teammates and customers to the Cadence family.
Regarding the second quarter results, we continue to perform exceptionally well. Adjusted net income from continuing operations increased to $137.5 million or $0.73 per share, and adjusted ROA was 1.14% for the quarter. Our balance sheet growth drove a meaningful increase in revenue and our adjusted efficiency ratio improved by 90 basis points to 56.7%. Our loan growth once again highlighted the strength of our footprint. We achieved organic loan growth of $1.1 billion for the quarter or 12.6% annualized. The growth came across our geography and nearly all verticals with the highest growth coming out of Texas.
Our community bank, corporate bank, private banking and mortgage teams all reported nice organic growth for the quarter, and our pipelines are strong and growing. Our core customer deposit balances also showed growth, which offset some intentional runoff in brokered and a seasonal decline in public fund balances. Organic core customer deposits increased at a 4.4% annualized rate with the largest portion of this growth in noninterest-bearing deposits. Credit results continue to remain in line with our expectations with net charge-offs of 24 basis points annualized for the quarter. Finally, our tangible book value continued to improve, increasing to $22.94 per share and regulatory capital levels remained strong with CET1 of 12.2%.
Now let me turn the call over to Valerie, and she can get into the weeds and the details for our financials. Valerie?
Valerie Toalson — Senior Executive Vice President and CFO
Great. Thank you, Dan. To add to Dan’s comments, our pretax pre-provision net revenue for the second quarter increased to an all-time high of $206 million, up over 8% from the prior quarter driven by the balance sheet growth that Dan mentioned, combined with strong fee income performance and improved operating leverage. Average loans were up a little over $800 million in the quarter, while period-end loans grew by $1.4 billion, a $1.1 billion in organic growth and close to $400 million from the First Chatham acquisition. We also added just over $500 million in deposits from First Chatham in the quarter in addition to our organic core customer deposit growth of $376 million. These increases were partially offset by declines of $437 million in brokered deposits and $300 million in public funds.
Our period-end noninterest-bearing deposits as a percentage of total deposits actually increased this quarter to 22.6%. Average deposits were down, which is not unusual for the second quarter as seasonal runoff earlier in the quarter was offset by growth in the latter part of the quarter. Our second quarter total adjusted revenue was strong at $476 million, an increase of $28 million or 6%. Net interest revenue increased $15 million or 4% as a result of the robust loan growth as well as added securities. We added about $2 billion in securities in the late first quarter and early second quarter, funded by Federal Home Loan Bank term borrowings. These securities added nice revenue, but did result in a slight dip in the net interest margin in the quarter. The NIM declined 6 basis points in the second quarter to 3.40%. And before considering the impact of the added securities, the quarter’s NIM actually increased 2 basis points as the trends in our earning asset yields and cost of funds were favorable.
Loan yields were 6.34% in the quarter, up 1 basis point from the first quarter, and new and renewed loans in the quarter came on the books at just over 7%, which is well north of the total portfolio yield. Total cost of deposits also improved by 5 basis points linked quarter to 2.30% and time deposit costs improved by 12 basis points as new and renewed time deposits in the quarter came in over 30 basis points lower than the total portfolio rate. Adjusted noninterest revenue reflected great performance really across the board, increasing $13 million or 15% compared to the first quarter. We had another big quarter in mortgage originations and the MSR valuation adjustment improved as well. Our wealth management teams also had a good quarter, benefiting from improved market conditions as well as seasonal tax revenue.
And finally, other noninterest revenue increased just over $7 million, a combination of several items, including strong credit and customer swap fees, SBA income, Federal Home Loan Bank dividends and BOLI income. Adjusted noninterest expense increased $11.7 million linked quarter, mostly as a result of the closing of First Chatham combined with costs associated with business growth and strong operating performance. Salaries and employee benefits increased just over $4 million, about half of that related to FCB and the rest mostly due to increases in commissions and share-based payment accruals. Data processing increased $3.6 million, partially impacted by higher business and project volume, and we incurred a seasonal increase in our advertising and PR expense. Legal costs were up $4.6 million, driven by final resolution of a legal matter and the decline in other miscellaneous expense of over $5 million was due to fraud and loss recoveries and lower consulting and regulatory expenses.
Turning to credit on Slides 9 and 10. Net charge-offs for the second quarter were $21 million or 24 basis points annualized, which is down slightly from the first quarter and consistent with expectations. Nonperforming loans declined just under $5 million linked quarter, while nonperforming assets increased about $2 million. All in all, a stable linked quarter. We did see an increase in criticized and classified loans linked quarter due to a handful of credits, but the balances continue to remain within historical ranges. The loan provision was $31 million, reflecting the day one provision of just over $4 million associated with acquired loans as well as the impact of loan growth in the quarter. Our allowance for credit loss coverage remained flat linked quarter at 1.34%.
At this level, combined with our capital foundation laid out on Slide 16, we believe our strong balance sheet continues to be very well positioned. As a quick update on Industry Bancshares, we did close the transaction effective July 1, 2025. And as you may recall, industry had a sizable municipal portfolio. Once we closed, we immediately sold a large majority of that portfolio, liquidating $1.9 billion of securities and continuing to hold just under $600 million. We have since used that $1.9 billion in liquidity to reinvest in $1 billion of securities yielding just over 5.25% with the remaining $900 million used to lower wholesale funding. Additionally, we put on about $550 million in notional interest rate swaps to minimize any residual interest rate volatility in these securities that remained on our balance sheet.
Finally, we have updated our guidance on Slide 17 to reflect both the acquisition of First Chatham and Industry. We continue to expect solid loan demand for the latter half of the year, bringing full year loan growth, including the acquisitions to between 11% and 15%. This, combined with full year core customer deposit growth of between 12% and 15%, supports our expectation for total revenue growth between 10% and 12%. We forecast continued operating leverage with expenses increasing between 7% and 9% in support of the growth in the balance sheet and continued investment in our future. Combined with stable credit, we expect these results will continue to drive strong EPS performance for us throughout the rest of this year.
Operator, we would like to open the call to questions, please.
Questions and Answers:
Operator
We will now begin the question and answer session. [Operator Instructions] The first question today comes from Casey Haire from Autonomous Research. Please go ahead.
Casey Haire
Thanks. Good morning, can you guys hear me okay?
James Rollins
Good to hear from you.
Casey Haire
Good to hear from you guys. Sorry, it’s been a little bit choppy. So I apologize if I’m in and out. But I guess, first off, I wanted to touch on the NII and the restructure. It feels like the margin can rebound to the mid-3.40s [Phonetic] given what you did with the industry restructuring. Just wondering if I’m missing anything or just some help on the margin guide. And then also, are you guys — have you — is there any more restructuring to be done with the — on the consolidated balance sheet?
James Rollins
Yeah. On the industry piece, we’ve done what we wanted to do. We certainly could divest a few more of those securities if we have that opportunity. But right now, that’s not on the top burn. Valerie, you need to go through all the NIM.
Valerie Toalson
Yeah. There’s obviously a lot of moving parts, particularly with the acquisitions. But where we ended up with the repurchases of the industry securities [indecipherable] when you combine that with the loan yields, the new loans coming on north of 7% and some of the repricing expectations that we have for the other portions of the portfolio that we have in our slide deck as well as the fact that our new CDs are coming in well south of where the maturing CDs are coming in. We expect some continued improvement there. So we’re actually very optimistic about the net interest margin and anticipate that, that would increase as we go through the rest of the year.
James Rollins
Yeah, we knew that what we did in the end of the first quarter, beginning of the second quarter, bring on borrowings and buying the bonds was going to negatively impact NIM, but positively impact NII.
Valerie Toalson
Right. And so actually, I hope you caught it. Basically, the impact of that was a negative 8 basis points. If you just had to set aside those securities purchases, net interest margin would have actually increased in the quarter by a couple of basis points.
Casey Haire
Yeah. Okay, great. Thank you. And then — so just switching to M&A. It just feels like it’s — activity is picking up here. You guys obviously have two deals under your belt year-to-date. Just wanted to get some updated thoughts on where you guys fit in and what appears to be M&A activity picking up.
James Rollins
The next big M&A is [Phonetic] picking up. We have noticed. Clearly, there’s a lot of talk, lot of talk, lot of activity. We’re seeing small transactions, a couple larger than what we’ve obviously done. I think what we’ve said when we announced the industry transaction earlier in the year was we thought we could get this transaction done quickly. We think we’re in a position to continue to execute. We like the footprint that we serve. We like the nine states that we’re in. We’re looking for opportunities to continue to grow in those states, and we think we’ll have future opportunities.
Casey Haire
Great. Thank you. Appreciate it.
James Rollins
Thanks, Casey.
Operator
The next question comes from Manon Ghasilia with Morgan Stanley. Please go ahead.
James Rollins
Hey, good morning.
Manan Gosalia
Hey, good morning all. Can you provide some more color on the increase in the revenue guide? The differences in the old guide and the new guide on the loan and deposit side were particularly helpful. So I was wondering if the revenue guide is going up on an organic basis as well. And on the acquisitions piece, if you can just help us with some of the assumptions around purchase accounting?
James Rollins
Yeah, So let me take a little bit of that, and Valerie is going to have to jump in here and help. But I think from your question on, is the guide up on an organic basis, yes. So we saw tremendous loan growth in the quarter. The pipelines are good. Billy and Chris can talk about that. We really feel good about where we sit. Some of that’s footprint. Some of that’s our team just doing an outstanding job. We’re bringing new customers into the bank. All of that moves the guide up. So with the increased guide on loan growth, that’s going to produce organic revenue growth that you’re seeing in the increased guide there. When you talk about purchase accounting marks, we’re early in. We’re 24 days in from when we did that. Go ahead, Valerie.
Valerie Toalson
Yeah, you’re exactly right. We’ll be obviously reporting more on that as we go. But I guess just for a little color just initially and I’m speaking more to the industry when the First Chatham is really pretty small in the grand scheme of things as far as purchase accounting marks.
Our interest rate or the securities, particularly, I think in the announcements, we assumed a 2.5% liquidity mark on some of those securities, we’re actually — we’re able to dispose of those securities at less than half of that. So we’re coming in much better on that front.
James Rollins
We just close to $1.4 billion or to $1.9 billion.
Valerie Toalson
Yeah, yeah, we all at the end. [Phonetic] And to Dan’s point, we assume that we’re holding less ongoing. So again, less tangible book value impact from that transaction itself. The other piece is the deposit pieces are fairly close to market values. On loans, there wasn’t too much of markets in there, and we’ll be refining that obviously, over the next several weeks. But I would say, all in all, probably a little bit better on some of those marks than what we had originally estimated.
Manan Gosalia
Yes. And as my follow-up, just on the loan side. I mean, loan growth is fairly strong. Valerie, I think I heard you mentioned that new loans are coming on at a little over 7%. So that might be a little bit of an improvement versus last quarter. And then if I look at the fixed rate and variable rate loans on Slide 12, those have also repriced up nicely. But the overall loan yields were up only 1 basis point Q-on-Q. Is there something that we might be missing there on the purchase accounting or anything related to the acquisitions there?
Valerie Toalson
Yeah, no, it really has the loans that paid down, loans that paid off, the timing of some of those types of things are really what impacted that. We did dig into that as well because to your point, all the underlying support items would lead to a higher loan yield. And so that’s part of what drives our expectations for a higher net interest margin as we go through the rest of the year is continuing to see good pipelines in our loan portfolio, continuing to have good performance from where those rates are coming in as we look out through the rest of the year.
Manan Gosalia
Got it. Thank you. Appreciate your time.
Operator
The next question comes from Catherine Mealor with KBW. Please go ahead.
Catherine Mealor
Thanks. Good morning.
James Rollins
Hey, good morning, Catherine.
Catherine Mealor
Just curious kind of back to the loan growth, which was really strong this quarter. I think last quarter, you talked about paydowns impacting some of your period-end balances, and it seems like that’s getting better. Can you talk a little bit about kind of new origination volumes versus paydown activity and what you’re seeing with both of those and kind of your thoughts on that balance as we get into the back half of the year, particularly with maybe some rate cuts? Thanks.
James Rollins
Yeah. You can see where we didn’t grow was in the CRE book, and that’s where we saw some paydowns. Will, can you jump in here.
Will Fisackerly
Yeah. Hey, Catherine. So in the first quarter, we saw a lot in the merchant real estate portfolio from a paydown standpoint and from our midstream energy. We saw that kind of slow, while at the same time, continuing really good origination, particularly in the midstream energy, that space, we’ve all backfilled the payoffs that have occurred really over the last six quarters in that space. That’s been a recurring thing.
On top of that, we just had wider spread success. I mean our C&I teams across the footprint all had some success. Our private banking team had significant success, and a lot of that’s attributed to some hiring that we did last year and the teams being able to capitalize on that. So the paydown activity was more robust in the first quarter, specifically in that larger merchant CRE and midstream space, and that was curtailed. And pipelines continue to be widespread, robust. The borrower activity with all the — sitting this time last quarter, we were feeling more uncertain.
I think there’s still some thoughts of that, but borrowers talking to their vendors and clients, they’ve been able to formulate a strategy and the [indecipherable] loan pipelines are remaining as strong and the pull-through from our approvals is similar to what it’s been. It’s just the pipelines are stronger.
James Rollins
Community bank side, Chris jump in.
Chris Bagley
Well, I guess just to add to that, really loan growth has been broad, diverse growth, geographies, lines of business, community bank, mortgage was healthy this quarter. So we really got it from all the orders. It was a good quarter for them.
Catherine Mealor
Yeah. Okay, great. And then your accretion with industry with selling more of the bonds than originally expected. Is there any change to your expectations for the accretion just with that nuance?
Valerie Toalson
Yes, So the accretion would be a little bit less. But of course, your upfront impact to your tangible book value is less. So net-net, it’s.
James Rollins
But not material.
Valerie Toalson
Yeah, yeah, it’s not — it’s not hugely material. We’re still looking at a pretty meaningful impact to our EPS as we look out over the rest of this year and next year with this acquisition.
James Rollins
Yeah, the difference would be the difference in what we would have been earning on the bonds that we held versus the 5 incremental difference, it’s not that big.
Valerie Toalson
So it’s less than 100 basis points on a portion of that security that’s really important.
Catherine Mealor
Thank you again. That makes sense. And then, of course, also with the loan growth being better, your reinvestment rate is probably higher too than you would have expected.
James Rollins
Okay. Yeah. Remember, we talked about wanting to grow loans within the industry footprint of $1 billion over the next five years and we did that organically in one quarter. So clearly, the loan growth is a big difference for us.
Catherine Mealor
Yeah, for sure. Okay, great. Thank you.
James Rollins
Thanks, Catherine.
Operator
The next question comes from Jared Shaw with Barclays. Please go ahead.
James Rollins
Hey, Jared.
Jared David Shaw
Good morning. Maybe shifting to the other side of the balance sheet, just the deposit growth, the strength in that core deposit origination and especially on the DDA side. As we look out, should we think that there’s still sort of steady growth in DDAs here? Or was there any sort of onetime beyond the deal benefit from DDA growth?
James Rollins
Yeah, I think the teams are doing a great job of mixing it up in the community and trying to bring business into us. I don’t know that one quarter is something that we can say this is a trend that we’re on, but we certainly like what we saw.
Jared David Shaw
Okay. And then on the CDs, you talked about the renewal rates coming in lower. Where are those now? And is there more room for CD costs to move lower, assuming stable rates?
Valerie Toalson
Yeah, so I think there is. Right now, we saw in the second quarter, we had about $3.8 billion in originations of CDs that were at just shy of 360. And so that’s encouraging. We have a lot that are maturing. If you look at really the last half of ’25, we’ve got about $5.4 billion that are maturing, really right about 4%, so depending on where those come back on, how many we’re retaining, there is an opportunity to continue to see a little bit of compression in that overall amount.
James Rollins
And his assumption that rates are stable.
Valerie Toalson
Yeah, I think rates are stable — right now, we’ve got 2 rate cuts later in the year in our forecast. And so if those come to fruition, then there’s further opportunity there, obviously.
Jared David Shaw
Okay, thanks. That’s good color on that. And then just on credit, credit overall, good trends. Just anything you would call out on the criticized and classified migration that’s either lumpy or episodic?
Will Fisackerly
No. I can’t — make [Phonetic] a little — $22 million or so that was part of the First Chatham merger. So that was infinity increase. Most of the increase in criticized was a special mention. I’ll call it normal range, normal process of working through credits in our normal processes. It’s really — there was a select few larger credits that moved in there along with the First Chatham merger. Thank you.
Valerie Toalson
I’ll follow that up with your comment on the deposits. The other thing that we’ve got is a significant focus with our treasury management team. And so they continue to ramp up their efforts. And I think that’s part of what we’re seeing in some of the success that we’ve had, and so we would hope for more success there as we go through the rest of the year.
James Rollins
And thank you. And I think going forward, we’re adding a lot of branches and new products. We’re going to have a happy — late [Phonetic] next six months. So we’re excited about that.
Jared David Shaw
Thanks.
James Rollins
Thanks, Jared.
Operator
The next question comes from Michael Rose with Raymond James. Please go ahead.
Michael Rose
Hey, good morning everyone. Thanks for taking my questions. Just two quick ones. Any change into beta expectations either on the loan or deposit side with industry? And then would that have any kind of material change to the interest rate sensitivity profile?
James Rollins
Thanks. Sensitivity profile. The bond portfolio the industry has an ability to move interest rate sensitivity, but we looked on that. Valerie, will jump on that.
Valerie Toalson
No, I would say no significant changes on the betas. We’ll be offering our products and services. And so I think that over time, everything will just kind of morph into a little bit consistent with some of the legacy numbers. There may be a little bit of movement in the first quarter or so, but I don’t think that will be ongoing. As far as interest sensitivity, Dan is right, really pretty consistent interest sensitivity. We continue to remain pretty neutral on that within that 150 basis points either plus or minus 100.
Michael Rose
Okay, great. Thanks, Valerie. And then maybe just final, I know you guys have a buyback in place. You’ve got a lot of deals going on. I wouldn’t expect that you’d be using it here, maybe just holding out for other opportunities. Is that the right way to think about it? Just it’s a tool at this point, but not really looking to use it?
James Rollins
Thanks. Yeah, I think we said that when we announced the Industry transaction as we knew with that transaction, we needed to continue to build capital. So unless something drastic changes here, I think for this quarter, I don’t think we’ll be doing very much there.
Michael Rose
All right. Thanks for taking my questions.
James Rollins
Thanks, Michael.
Operator
The next question comes from Jon Arfstrom with RBC Capital Markets. Please go ahead.
Jon Arfstrom
Thanks. Good morning.
James Rollins
Good morning.
Jon Arfstrom
Back to loan growth, would you guys call the pace of growth in the second quarter abnormal at all in terms of what you expect going forward? I mean, was it a rebound or catch-up from the uncertainty in the first quarter? Or is this like a real change in demand where this is a realistic pace of growth?
James Rollins
Yeah, I think I’ve said for a while, I think what we saw post Liberation Day was people took their foot off the accelerator and there was question marks about what was going on out there. I think that’s just catching back up with us. And no, I don’t know that this was abnormal. I think when we look at what’s coming through, just watching the flow, we’re as busy as we’ve ever been.
Valerie Toalson
Yeah, that’s right. I mean, Jon, I touched on it, but our — kind of our weekly volumes that we’re seeing come through are as high as they’ve been in over a year. And that’s continued from the last couple of months of the quarter to now. I mean it’s a continuing trend. So we’re not seeing it slow.
James Rollins
Just talking to bankers across our footprint, there’s excitement about opportunities in front of us.
Will Fisackerly
Yeah. I would just add, I mean, take the other side of that, if capital markets open up, you can see some downward volume impact via merchant builders moving to things out. That is a little slower, but that could impact volumes going forward, but the pipelines are good and new originations.
Jon Arfstrom
Okay, good. Dan, a question for you on Texas industry, I think will take your Texas deposit — your share up to 35% of total deposits. The approach in Texas, is that right? Is that the right number?
James Rollins
That’s a — verify that. [Phonetic] Some folks believe you go with the question.
Jon Arfstrom
It just — the question is, do you have to do anything different in Texas? Or is it just kind of business as usual because it’s obviously a much, much larger piece of your franchise than it has been over the last several years.
James Rollins
Yeah, yeah. So we’re at 37% of deposits in Texas with this, but we’re higher than that with loans in Texas. So I think the answer is no. I mean we continue to see outsized growth. If you look at our footprint and you see where growth is coming from. Texas continues to drive that growth. The high-growth markets of Georgia, Florida, Tennessee continue to add to us. But frankly, we’re seeing growth across our footprint. Texas just continues to lead.
Jon Arfstrom
Just last one, Valerie, for you. On the expense range, is it safe to assume the higher end of the range is aligned with the higher end of your loan growth? Or is there something else that we need to think about in terms of expenses through that higher or lower end of your range?
Valerie Toalson
Yeah. No, the higher end tends to align with higher revenues. There are associated costs associated with that. So that would drive that.
Jon Arfstrom
Okay. All right. Thank you very much.
James Rollins
Thanks, Jon.
Operator
[Operator Instructions] The next question comes from Ben Gerlinger with Citi. Please go ahead.
Benjamin Gerlinger
Good morning.
James Rollins
Hey, good morning, Ben.
Benjamin Gerlinger
It seems like prior to this week, every bank that operates with an SEC football school in their state has highlighted growth through hirings and putting up numbers. It seems like — I mean, you guys have always had a little bit of a different strategy. But with the footprint that you have, I mean, I know you’ve been doing both at the same time. But could we see an outsized level of hirings from potential or even already announced acquisitions? Or is it more so just kind of filling in letting the operation because you now have these two deals to integrate. How should we think about the organic perspective of hirings and loan growth over the next year or two?
James Rollins
Yeah, we’ve not gone out and hired big teams of people. That’s just not been in our past practices. We continue to hire good people. So I mean we’ve added in Texas, we’ve added in Georgia. We’ve added across our footprint in both in Florida over the last several quarters, but those are one and two. The acquisitions that we’ve got, we’ve not lost any of those people, if you’re asking. So I think on the other side, I think we’ve got good people that are out there wanting to grow business. And I think we’ve got capacity to grow with the team that we have today.
Benjamin Gerlinger
Got you. That’s helpful. And then just one modeling question, Valerie. I know you said marks were a little bit smaller, so dilution should be a little bit less. And you originally had 8.5% on TBV. Is that fair to think it’s less than that at this point? Or is it still de minimis?
James Rollins
I don’t know that we have a number to put out today.
Valerie Toalson
Yeah, no, I think that we’ll be obviously working on refining all of that as we go through the quarter. But overall, I mean, I would just say that we still anticipate regardless where the numbers move that this is just really going to be a great acquisition for us.
James Rollins
Yeah, yeah, yeah. The earnings accretion is significant. here.
Benjamin Gerlinger
Got you. Yeah, no, I appreciate it.
James Rollins
Okay, thank you.
Operator
The next question comes from Matt Olney with Stephens. Please, go ahead.
Matt Olney
Yeah, thanks. Good morning. Just similar to Ben’s last question on the industry impact in the third quarter. Any color on the capital ratios and what these could look like at September 30 with the impact of industry on there?
James Rollins
Yeah. Matt, good to hear from you. That’s what we were talking about earlier is we’re 24 days in the marks. We just don’t have anything to be able to give you where we think we’re going to end up. The pieces of the puzzle all look good to us and not far off of what we were talking about when we made the announcement back in April. It’s just too quick. And we understand it’s a big transaction that could move the needle. So we hope to be able to — as we’re out on the road, maybe file some investor deck that would give us some mid-quarter update to some of that.
Matt Olney
Okay, thank you. That’s all from me.
James Rollins
Thanks, Matt. Appreciate the time.
Operator
This concludes our question-and-answer session. I would like to turn the conference back over for any closing remarks.
James Rollins
Hey, thank you all very much for joining this morning since we brought up the SEC with college football only 29 days away. We’re glad that we finished the first half of 2025 here at Cadence, and we had a great first half. We continue to report growth and improvement in many of our operating metrics, including earnings per share, ROTCE, ROA, operating efficiency, just to name a few. I continue to be very confident that we’ve achieved both organically and through strategic partnerships in Texas and Georgia that we positioned ourselves to continue that momentum through the second half of 2025, and it sets us up in a position of strength for 2026. We appreciate everybody’s support on our call today.
This concludes the call. We look forward to seeing you all again soon.
Operator
[Operator Instructions]