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Cadence Bank (CADE)
NYSE:CADE
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Cadence Bank
(NYSE:CADE)
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Rating:71Outperform
Price Target:
$50.00
â–²(18.74% Upside)
CADE scores well overall on strong technical uptrend/momentum and a constructive earnings call (acquisition-driven growth and improving net interest margin). The score is held back by mixed recent financial momentum (cooling revenue, negative TTM free cash flow) and balance-sheet leverage volatility, while valuation is reasonable but not a standout.
Positive Factors
Successful Acquisition
The acquisition of Industry Bank Shares expands Cadence Bank's footprint in Central Texas and Georgia, enhancing market presence and customer base, which supports long-term growth and strategic positioning.
Net Interest Margin Improvement
Improvement in net interest margin indicates better profitability from lending activities, driven by improved securities yields and reduced funding costs, which strengthens the bank's earnings potential.
Revenue and Deposit Growth
Significant growth in deposits reflects increased customer trust and financial stability, providing a strong base for future lending and investment activities, supporting sustainable revenue growth.
Negative Factors
Decline in Revenue Growth
A significant decline in revenue growth suggests potential challenges in maintaining market competitiveness and could impact long-term profitability if not addressed through strategic initiatives.
Decline in Free Cash Flow
Reduced free cash flow growth may limit the bank's ability to invest in new opportunities, pay down debt, or return capital to shareholders, potentially affecting long-term financial flexibility.
Challenges with Mortgage Banking
Declining mortgage banking revenue due to seasonal factors and MSR adjustments could signal ongoing challenges in this segment, affecting overall revenue diversification and stability.
Cadence Bank (CADE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.69B
Dividend Yield2.52%
Average Volume (3M)4.96M
Price to Earnings (P/E)14.9
Beta (1Y)1.07
Revenue Growth14.58%
EPS Growth-19.97%
CountryUS
Employees5,356
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.76
Shares Outstanding182,732,960
10 Day Avg. Volume11,000,071
30 Day Avg. Volume4,957,067
Financial Highlights & Ratios
PEG Ratio-3.19
Price to Book (P/B)1.13
Price to Sales (P/S)2.17
P/FCF Ratio8.10
Enterprise Value/Market Cap1.30
Enterprise Value/Revenue3.53
Enterprise Value/Gross Profit5.85
Enterprise Value/Ebitda13.91
Forecast
1Y Price Target
$47.33Price Target Upside12.40% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Cadence Bank Business Overview & Revenue Model
Company DescriptionCadence Bank provides commercial banking and financial services in the United States. Its products and services include consumer banking, consumer loans, mortgages, home equity lines and loans, credit cards, commercial and business banking, treasury management, specialized and asset-based lending, commercial real estate, equipment financing, and correspondent banking services. The company's products and services also comprise small business administration lending, foreign exchange, wealth management, investment and trust, financial planning, retirement plan management, and personal and business insurance services. As of March 3, 2022, it operated approximately 400 branch locations across the South, Midwest, and Texas. The company was incorporated in 1876 and is headquartered in Tupelo, Mississippi.
How the Company Makes MoneyCadence Bank generates revenue primarily through interest income and non-interest income. Interest income is derived from the interest earned on loans issued to customers, including consumer, mortgage, and commercial loans. Additionally, the bank earns interest from its investment securities. Non-interest income streams include service fees on deposit accounts, transaction fees, wealth management fees, and income from the bank's investment advisory services. The bank also benefits from partnerships with local businesses and organizations, enhancing its service offerings and expanding its customer base, contributing to its overall earnings.
Cadence Bank Earnings Call Summary
Earnings Call Date:Oct 20, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Apr 27, 2026
Earnings Call Sentiment Positive
The earnings call highlighted successful acquisitions and strong financial performance with improvements in revenue, deposits, and net interest margin. However, there were challenges with mortgage banking revenue and CRE paydowns. Despite these challenges, the overall sentiment is positive due to significant achievements and strategic growth.Q3-2025 Updates
Positive Updates
Successful Acquisition and Integration
Completed the acquisition of Industry Bank Shares on July 1, and the operational integration was completed last week. Industry and First Chatham are now fully integrated into Cadence systems, expanding the footprint in Central Texas and Georgia.
Strong Financial Performance
Adjusted net income from continuing operations increased to $152.8 million or $0.81 per share. Adjusted return on assets was 1.13% for the quarter.
Revenue and Deposit Growth
Balance sheet growth combined with net interest margin improvement drove a meaningful increase in revenue. Deposits were up $3.4 billion, with core customer deposits up $3.1 billion.
Improvement in Net Interest Margin
Net interest margin improved six basis points to 3.46%, driven by improved securities yields and a decline in overall funding costs.
Record Adjusted Pre-tax Pre-provision Net Revenue
Adjusted pre-tax pre-provision net revenue for the third quarter reached a record $224 million, up nearly 9% from the prior quarter.
Negative Updates
Decline in Mortgage Banking Revenue
Adjusted non-interest revenue of $93.5 million was down $4.7 million due largely to mortgage banking revenue from seasonal declines in originations, combined with the impact of MSR fair value adjustments.
Challenges with CRE Paydowns
There was an uptick in CRE paydowns during the quarter, impacting new origination activity despite strong overall performance.
Slight Decline in Tangible Book Value
Tangible book value per share declined $0.12 to $22.82, although largely offset by strong operating earnings and improvement in AOCI.
Company Guidance
In the Cadence Bank Third Quarter 2025 earnings call, the company's guidance highlighted several key financial metrics that indicate strong performance and optimistic outlook. The bank completed the acquisition of Industry Bank Shares on July 1, with a successful operational integration that contributed to a $3.4 billion increase in deposits, including $3.1 billion in core customer deposits. Loan growth was also robust, with a $1.3 billion increase, $1 billion of which stemmed from the Industry acquisition and $300 million from organic growth. Adjusted net income from continuing operations rose to $152.8 million or $0.81 per share, with an adjusted return on assets of 1.13%. The adjusted efficiency ratio improved to 56.5%, driven by balance sheet growth and net interest margin improvement. The net interest margin itself increased by six basis points to 3.46%, supported by improved securities yields and declining funding costs. The bank anticipates continued modest improvement in net interest margin through the end of the year. Additionally, Cadence Bank's purchase accounting adjustments yielded positive impacts, with tangible book value per share declining only $0.12 to $22.82, and total adjusted revenue for the quarter reaching $517 million, up 9% from the prior quarter.Cadence Bank Financial Statement Overview
Summary
Profitability is solid (net margins ~18–25% historically; ~20% TTM) with generally good cash conversion (FCF ~87% of net income in TTM). Offsetting this, revenue momentum cooled in 2024/TTM, free cash flow turned negative in TTM, and leverage has been notably volatile year to year, adding balance-sheet risk.Income Statement
CADE shows solid profitability with net margins holding around ~18–25% across 2020–2024 and ~20% in TTM (Trailing-Twelve-Months). Revenue has grown strongly over the multi-year period, but the most recent trajectory is mixed: revenue growth slowed meaningfully in 2024 and TTM revenue is slightly lower than 2024, suggesting momentum has cooled. Operating profitability is generally healthy, though there was a notable 2023 dip in operating profit (near breakeven) before recovering in 2024 and TTM.73
Positive
Balance Sheet
The balance sheet looks adequately capitalized with equity rising over time and return on equity staying near ~9–11% in recent periods (TTM ~9%). However, leverage has been volatile: debt-to-equity was high in 2022–2023, dropped sharply in 2024, then increased again in TTM (Trailing-Twelve-Months). That variability raises questions around balance sheet strategy/structure and adds risk versus peers with steadier leverage profiles.56
Neutral
Cash Flow
Cash generation is generally supportive of earnings: free cash flow has consistently covered most of net income (roughly ~75–94% historically and ~87% in TTM). That said, free cash flow growth is choppy and turned negative in TTM (Trailing-Twelve-Months) after being positive in 2024, pointing to some near-term pressure on cash generation versus the prior year.64
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.84B | 2.90B | 2.19B | 1.90B | 1.12B | 1.14B |
| Gross Profit | 1.72B | 1.72B | 1.16B | 1.69B | 910.55M | 938.43M |
| EBITDA | 721.50M | 878.76M | 237.70M | 832.84M | 400.67M | 362.66M |
| Net Income | 530.43M | 523.60M | 542.30M | 463.24M | 195.16M | 228.05M |
Balance Sheet | ||||||
| Total Assets | 53.28B | 47.02B | 48.93B | 48.65B | 47.67B | 24.08B |
| Cash, Cash Equivalents and Short-Term Investments | 6.31B | 9.03B | 12.31B | 13.94B | 16.90B | 6.65B |
| Total Debt | 2.29B | 34.32M | 4.39B | 4.47B | 1.76B | 939.37M |
| Total Liabilities | 47.20B | 41.45B | 43.77B | 44.34B | 42.42B | 21.26B |
| Stockholders Equity | 6.08B | 5.57B | 5.17B | 4.31B | 5.25B | 2.82B |
Cash Flow | ||||||
| Free Cash Flow | 507.73M | 776.59M | 465.22M | 833.42M | 1.10B | 156.94M |
| Operating Cash Flow | 584.46M | 856.66M | 563.51M | 927.91M | 1.17B | 222.89M |
| Investing Cash Flow | -1.24B | -782.16M | 2.40B | -1.71B | -3.15B | -2.43B |
| Financing Cash Flow | -1.44B | -2.58B | -723.05M | 1.49B | 2.86B | 2.29B |
Cadence Bank Technical Analysis
Neutral
42.11
Price Trends
42.72
Negative
40.05
Positive
36.29
Positive
Market Momentum
-0.21
Positive
43.34
Neutral
10.71
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CADE, the sentiment is Neutral. The current price of 42.11 is below the 20-day moving average (MA) of 43.79, below the 50-day MA of 42.72, and above the 200-day MA of 36.29, indicating a neutral trend. The MACD of -0.21 indicates Positive momentum. The RSI at 43.34 is Neutral, neither overbought nor oversold. The STOCH value of 10.71 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CADE.
Cadence Bank Risk Analysis
Cadence Bank disclosed 73 risk factors in its most recent earnings report. Cadence Bank reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Cadence Bank Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $8.51B | 14.30 | 9.13% | 1.93% | -2.81% | 14.96% | |
73 Outperform | $15.42B | 12.57 | 9.44% | 0.95% | 7.76% | 49.85% | |
71 Outperform | $7.69B | 14.87 | 9.22% | 2.52% | 14.58% | -19.97% | |
71 Outperform | $8.64B | 9.75 | 17.93% | 1.82% | -36.51% | -39.66% | |
68 Neutral | $7.12B | 12.38 | 7.09% | 3.31% | 0.55% | 19.13% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
CADE
Cadence Bank
42.11
7.63
22.12%
BOKF
Bok Financial
134.61
24.39
22.13%
GGAL
Grupo Financiero Galicia SA
52.48
-12.44
-19.17%
PNFP
Pinnacle Financial Partners
101.96
-22.96
-18.38%
PB
Prosperity Bancshares
72.96
-5.06
-6.49%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.