Cadence Bank (CADE) AI Stock Analysis

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Cadence Bank

(NYSE:CADE)

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Outperform 77 (OpenAI - 4o)

Rating:77Outperform

Price Target:

$40.00

▲(7.12% Upside)

Cadence Bank's strong financial performance and strategic growth initiatives are the most significant factors driving its stock score. Positive technical indicators and attractive valuation metrics further enhance the stock's appeal. The recent earnings call reinforced confidence in the company's growth trajectory, despite minor concerns about net interest margin and loan quality.

Positive Factors

Revenue Growth

Cadence Bank's consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial health.

Strategic Expansion

Strategic acquisitions expand Cadence Bank's market presence in Georgia and Central Texas, enhancing its competitive position and growth potential.

Organic Loan Growth

Strong organic loan growth reflects effective customer acquisition and retention strategies, contributing to sustainable revenue streams.

Negative Factors

Net Interest Margin Decline

A declining net interest margin can pressure profitability, affecting the bank's ability to generate income from its core lending activities.

Increase in Criticized Loans

Rising levels of criticized loans may indicate potential credit risk, which could impact asset quality and future financial performance.

Cash Reserve Concerns

Concerns about cash reserves could limit the bank's ability to manage liquidity effectively, impacting its operational flexibility and risk management.

Cadence Bank (CADE) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$6.73B

Dividend Yield2.88%

Average Volume (3M)1.68M

Price to Earnings (P/E)13.1

Beta (1Y)1.23

Revenue Growth18.01%

EPS Growth-12.51%

CountryUS

Employees5,356

SectorFinancial

Sector Strength70

IndustryBanks - Regional

Share Statistics

EPS (TTM)0.69

Shares Outstanding182,732,960

10 Day Avg. Volume1,958,601

30 Day Avg. Volume1,683,145

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 Cap1.26

Enterprise Value/Revenue3.25

Enterprise Value/Gross Profit4.89

Enterprise Value/Ebitda9.75

Forecast

1Y Price Target

$40.67

Price Target Upside8.92% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering9

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 through several key streams. Primarily, it earns interest income from loans issued to customers, including personal, mortgage, and commercial loans, which are typically charged at higher interest rates compared to the interest paid on deposits. Additionally, the bank collects fees from various services such as account maintenance, ATM usage, overdrafts, and transaction services. Wealth management and investment advisory services also contribute to revenue through management fees and commissions. Significant partnerships with other financial institutions and businesses enhance its product offerings and customer reach, further supporting its earnings.

Cadence Bank Earnings Call Summary

Earnings Call Date:Jul 23, 2025

(Q2-2025)

% Change Since: |

Next Earnings Date:Oct 27, 2025

Earnings Call Sentiment Positive

The earnings call highlighted strong financial performance, successful M&A activity, and significant organic loan growth. However, there were concerns about a decline in net interest margin and an increase in criticized loans. Despite these lowlights, the overall sentiment remains positive due to the strong growth metrics and strategic expansions.

Q2-2025 Updates

Positive Updates

Successful M&A Activity

Cadence Bank announced the acquisition of Industry Bancshares and completed the acquisition of First Chatham Bank, expanding its presence in Georgia and Central Texas.

Strong Financial Performance

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.

Organic Loan Growth

Achieved organic loan growth of $1.1 billion for the quarter, a 12.6% annualized rate, with the highest growth in Texas.

Improved Efficiency Ratio

The adjusted efficiency ratio improved by 90 basis points to 56.7%.

Strong Revenue Growth

Total adjusted revenue was $476 million, an increase of $28 million or 6% from the previous quarter.

Negative Updates

Decline in Net Interest Margin

Net interest margin declined by 6 basis points in the second quarter to 3.40% due to added securities.

Increase in Criticized and Classified Loans

An increase in criticized and classified loans was noted, though they remain within historical ranges.

Company Guidance

The guidance provided during the Cadence Bank Second Quarter 2025 earnings call highlighted several key financial metrics and strategic achievements. The bank announced its acquisition of Industry Bancshares and First Chatham Bank, with the former closing on July 1, 2025, and the latter on May 1, 2025, establishing a robust presence in Georgia and Central Texas. Adjusted net income from continuing operations rose to $137.5 million, translating to $0.73 per share, while the adjusted return on assets (ROA) was 1.14%. The bank experienced impressive organic loan growth, amounting to $1.1 billion or a 12.6% annualized rate, primarily driven by operations in Texas. Core customer deposits grew at a 4.4% annualized rate, with noninterest-bearing deposits comprising a significant portion. The net interest margin (NIM) slightly declined by 6 basis points to 3.40%, influenced by an increase in securities, though the underlying NIM improved by 2 basis points. Moreover, Cadence Bank's total adjusted revenue reached $476 million, marking a 6% increase, while the tangible book value per share rose to $22.94. The bank also maintained strong regulatory capital levels with a Common Equity Tier 1 (CET1) ratio of 12.2%. Overall, Cadence Bank projected full-year loan growth, including acquisitions, between 11% and 15%, with total revenue growth anticipated to be between 10% and 12%.

Cadence Bank Financial Statement Overview

Summary

Cadence Bank exhibits strong financial health with robust revenue growth and effective cost management. While there are slight concerns about cash reserves, the overall financial position is solid, supported by prudent leverage and strong cash flow generation.

Income Statement

Positive

Cadence Bank demonstrated strong financial performance with notable growth in total revenue, increasing by approximately 40% from the previous year. The gross profit margin and net profit margin are robust, reflecting effective cost management and operational efficiency. However, EBIT and EBITDA margins show some variability, indicating potential fluctuations in operating expenses or other non-operating costs.

Balance Sheet

Positive

The balance sheet shows a solid equity base with a consistent equity ratio around 12%. The debt-to-equity ratio is low, signaling prudent leverage management, which is crucial in the banking sector. However, slight decreases in cash and short-term investments could indicate liquidity management challenges or strategic allocation changes.

Cash Flow

Positive

Operating cash flow is healthy and growing, with a positive free cash flow trajectory. The free cash flow to net income ratio indicates strong cash generation relative to accounting profits, although the operating cash flow to net income ratio has shown some fluctuations over the years.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.61B	2.90B	2.19B	1.90B	1.12B	1.14B
Gross Profit	1.73B	1.72B	1.16B	1.69B	910.55M	938.43M
EBITDA	869.92M	878.76M	237.70M	832.84M	400.67M	362.66M
Net Income	539.85M	523.60M	542.30M	463.24M	195.16M	228.05M
Balance Sheet
Total Assets	47.74B	47.02B	48.93B	48.65B	47.67B	24.08B
Cash, Cash Equivalents and Short-Term Investments	9.48B	9.03B	12.31B	13.94B	16.90B	6.65B
Total Debt	815.36M	34.32M	4.39B	4.47B	1.76B	939.37M
Total Liabilities	42.02B	41.45B	43.77B	44.34B	42.42B	21.26B
Stockholders Equity	5.72B	5.57B	5.17B	4.31B	5.25B	2.82B
Cash Flow
Free Cash Flow	630.31M	776.59M	465.22M	833.42M	1.10B	156.94M
Operating Cash Flow	686.48M	856.66M	563.51M	927.91M	1.17B	222.89M
Investing Cash Flow	-956.43M	-782.16M	2.40B	-1.71B	-3.15B	-2.43B
Financing Cash Flow	-1.20B	-2.58B	-723.05M	1.49B	2.86B	2.29B

Cadence Bank Technical Analysis

Technical Analysis Sentiment

Positive

Last Price37.34

Price Trends

50DMA

35.81

Positive

100DMA

33.38

Positive

200DMA

32.68

Positive

Market Momentum

MACD

0.48

Positive

RSI

56.27

Neutral

STOCH

62.19

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CADE, the sentiment is Positive. The current price of 37.34 is above the 20-day moving average (MA) of 37.20, above the 50-day MA of 35.81, and above the 200-day MA of 32.68, indicating a bullish trend. The MACD of 0.48 indicates Positive momentum. The RSI at 56.27 is Neutral, neither overbought nor oversold. The STOCH value of 62.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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

Overall Rating

UnderperformOutperform

Sector (68)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CADE	77 Outperform	$6.73B	13.07	9.59%	2.88%	18.01%	-12.51%
HOMB	77 Outperform	5.77B	13.62	10.63%	2.70%	4.40%	14.01%
GBCI	74 Outperform	5.89B	26.03	6.22%	2.66%	8.37%	17.00%
VLY	73 Outperform	6.13B	14.21	5.98%	4.02%	0.20%	9.86%
UBSI	72 Outperform	5.32B	13.40	7.36%	3.94%	7.29%	6.87%
FFIN	66 Neutral	4.99B	20.90	14.14%	2.12%	14.53%	21.78%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

* Financial Sector Average

Performance Comparison

CADE

Cadence Bank

37.34

6.37

20.57%

BOKF

Bok Financial

111.40

7.81

7.54%

GGAL

Grupo Financiero Galicia SA

26.45

-19.65

-42.62%

PNFP

Pinnacle Financial Partners

96.02

-3.07

-3.10%

Prosperity Bancshares

65.98

-4.30

-6.12%

SNV

Synovus

50.98

7.38

16.93%

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.Date of analysis: Aug 19, 2025