TheStreet

Shares of Cadence Bancorp. (CADE - Get Report) tumbled 17.5% to $16.17 Monday after the financial holding company missed Wall Street's second-quarter earnings expectations.

The Houston-based company reported net income of $48.3 million, or 37 cents a share, compared with $48.3 million, or 57 cents a share, a year ago. Adjusted earnings came to 40 cents a share, missing analysts' expectations of 58 cents.

Revenue totaled $192.51 million, up from $126.06 million a year ago, but fell short of Wall Street's estimate of $196.9 million.

"The results for second quarter of 2019 reflect continued organic loan and deposit growth and solid fundamental trends, that were unfortunately negatively impacted by higher credit costs including net charge-offs of $18.6 million and loan provisions of $28.9 million," said Paul Murphy, chairman and CEO, in a statement.

Murphy added that "while the credit results are certainly disappointing, there have been many positive developments this year that add further strength to our platform."

During the quarter, Murphy said "we sold non-strategic acquired loans and grew originated loans 4.0% year-to-date, reflecting an intentional moderation of growth compared to prior years."

"Additionally, we further lowered our use of wholesale funding and enhanced our capital base while lowering ongoing debt as we refinanced senior debt with sub-debt on attractive terms," he said. 'Our tangible book value per share increased over 7% from last quarter to $14.21."