Question · Q3 2025
Jared Shah asked about the decline in Cadence Bank's DDA mix this quarter and expectations for non-interest-bearing deposits for the rest of the year, excluding the Industry acquisition. He also questioned the target capital level after recent deals and improved purchase accounting marks, and the bank's thoughts on share buybacks versus additional M&A.
Answer
CEO Dan Rollins clarified that the DDA percentage of 20.6% in Q3 is consistent with historical run rates, with Q2 being an anomaly due to a large customer's temporary balances and First Chatham Bank's higher DDA mix. CFO Valerie Toalson provided detailed figures on the impact of temporary customer deposits and acquisitions on NIB balances. Mr. Rollins stated that the bank aims to be good stewards of capital, noting that strong Q3 results put them back in the buyback game sooner than expected, while also continuing to seek organic and inorganic growth opportunities.