Education
About Us
Working with TipRanks
Follow Us
Cadence Bank (CADE)
:CADE
Top Page
Cadence Bancorporation
(NYSE:CADE)
Rating:78Outperform
Price Target:
$41.00
▲(18.09%Upside)
Positive Factors
Financial Performance
The inclusion of the Industry acquisition takes modeled profitability at CADE to a ~1.25% ROA and an ~11% ROE in 2026, indicating improved financial performance.
Loan Growth
CADE increased their organic loan growth guide from 'low to mid single digit growth y/y' to 'up 7-11% y/y'.
Share Performance
CADE shares have outperformed the bank index over the past few weeks as bank stocks have come back into favor following the Industry deal closing.
Negative Factors
Capital Position
The transaction will bring Cadence's CET1 ratio down from 12.4% to 11.0%.
Market Sentiment
There is apparent market distrust of M&A related accretion that could suppress the P/E multiple in the near-term, posing a risk to expected outperformance.
NIM Impact
Reported NIM of 3.40% was down 6 bps Q/Q, driven by a $2B increase in the securities book funded by FHLB borrowings that were dilutive to NIM.
Cadence Bancorporation (CADE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.20B
Dividend Yield3.09%
Average Volume (3M)2.02M
Price to Earnings (P/E)12.0
Beta (1Y)1.28
Revenue Growth17.47%
EPS GrowthN/A
CountryUS
Employees5,356
SectorFinancial
Sector Strength68
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.69
Shares Outstanding182,732,960
10 Day Avg. Volume2,733,087
30 Day Avg. Volume2,021,779
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 Cap1.37
Enterprise Value/Revenue2.96
Enterprise Value/Gross Profit6.50
Enterprise Value/Ebitda10.07
Forecast
1Y Price Target
$40.67Price Target Upside17.14% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
Cadence Bancorporation 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 makes money primarily through the interest income generated from its lending activities, including personal loans, commercial loans, and mortgages. The bank also earns revenue from non-interest sources such as fees and service charges associated with its various banking services, wealth management, and insurance products. Additionally, Cadence Bank benefits from strategic partnerships and investments that enhance its financial offerings and market reach. Key factors contributing to its earnings include the bank's ability to maintain competitive interest rates, manage risk effectively, and expand its customer base through superior service and innovative financial solutions.
Cadence Bancorporation Earnings Call Summary
Earnings Call Date:Jul 23, 2025
(Q2-2025)
| % Change Since: -3.34%|
Next Earnings Date:Oct 27, 2025
Earnings Call Sentiment Positive
Cadence Bank reported a strong quarter with significant growth in net income, loans, and deposits, bolstered by successful M&A activities. However, challenges such as a decline in net interest margin and increased expenses were noted. Overall, the highlights significantly outweigh the lowlights.Q2-2025 Updates
Positive Updates
Strong Financial Performance
Adjusted net income from continuing operations increased to $137.5 million or $0.73 per share, with an adjusted ROA of 1.14% for the quarter. Pretax pre-provision net revenue reached an all-time high of $206 million, up over 8% from the prior quarter.
Loan and Deposit Growth
Organic loan growth of $1.1 billion for the quarter, or 12.6% annualized, with significant contributions from Texas. Organic core customer deposits increased at a 4.4% annualized rate.
M&A Activity
Completed acquisition of First Chatham Bank and announced acquisition of Industry Bancshares, expanding presence in Georgia and Central Texas.
Efficiency and Revenue Growth
Adjusted efficiency ratio improved by 90 basis points to 56.7%. Total adjusted revenue increased by $28 million or 6% to $476 million.
Improved Noninterest Revenue
Adjusted noninterest revenue increased by $13 million or 15% compared to the first quarter, with strong performance in mortgage originations and wealth management.
Negative Updates
Net Interest Margin Decline
Net interest margin declined by 6 basis points in the second quarter to 3.40% due to investments in securities funded by Federal Home Loan Bank borrowings.
Increased Criticized and Classified Loans
A linked quarter increase in criticized and classified loans due to a handful of credits, though still within historical ranges.
Increased Noninterest Expense
Adjusted noninterest expense increased by $11.7 million linked quarter, driven by acquisition-related costs, business growth, and legal expenses.
Company Guidance
During the Cadence Bank Second Quarter 2025 Earnings Call, the company reported strong financial performance and provided updated guidance. Adjusted net income from continuing operations rose to $137.5 million, or $0.73 per share, with an adjusted return on assets (ROA) of 1.14%. The bank's adjusted efficiency ratio improved by 90 basis points to 56.7%. Organic loan growth reached $1.1 billion, or 12.6% annualized, while core customer deposits grew at a 4.4% annualized rate. The acquisition of Industry Bancshares and First Chatham Bank contributed to balance sheet growth, with $1.4 billion in period-end loan growth and $500 million in deposits from First Chatham. Net interest margin (NIM) dipped slightly by 6 basis points to 3.40%, primarily due to added securities, though loan yields increased to 6.34%. The bank's cost of deposits improved by 5 basis points to 2.30%. Cadence Bank's tangible book value per share increased to $22.94, with a common equity tier 1 (CET1) ratio of 12.2%. The guidance for the full year anticipates loan growth between 11% and 15%, core customer deposit growth of 12% to 15%, and total revenue growth between 10% and 12%, supported by stable credit conditions.Cadence Bancorporation Financial Statement Overview
Summary
Cadence Bank demonstrates strong financial performance with substantial revenue growth, robust profit margins, and prudent leverage management. While the cash reserves show slight concerns, overall financial health remains sound with potential for continued growth and profitability.Income Statement
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.75
Positive
Balance Sheet
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.68
Positive
Cash Flow
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.72
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.87B | 2.90B | 2.19B | 1.90B | 1.12B | 1.14B |
| Gross Profit | 1.31B | 1.72B | 1.16B | 1.69B | 910.55M | 938.43M |
| EBITDA | 842.79M | 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 Bancorporation Technical Analysis
Neutral
34.72
Price Trends
32.72
Positive
31.05
Positive
32.67
Positive
Market Momentum
0.59
Positive
52.39
Neutral
24.21
Neutral
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 34.72 is below the 20-day moving average (MA) of 35.18, above the 50-day MA of 32.72, and above the 200-day MA of 32.67, indicating a neutral trend. The MACD of 0.59 indicates Positive momentum. The RSI at 52.39 is Neutral, neither overbought nor oversold. The STOCH value of 24.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CADE.
Cadence Bancorporation Risk Analysis
Cadence Bancorporation disclosed 73 risk factors in its most recent earnings report. Cadence Bancorporation 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 Bancorporation Peers Comparison
Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $6.20B | 12.04 | 9.59% | 3.09% | 17.47% | ― | |
75 Outperform | $4.87B | 22.26 | 6.60% | 3.08% | 8.37% | 17.00% | |
74 Outperform | $5.14B | 11.82 | 6.33% | 4.79% | 0.20% | 9.86% | |
69 Neutral | $5.45B | 12.63 | 10.94% | 2.84% | 4.40% | 14.01% | |
69 Neutral | $4.98B | 12.36 | 7.71% | 4.22% | 8.07% | 6.94% | |
67 Neutral | $17.01B | 11.59 | 9.50% | 3.95% | 10.65% | 1.31% | |
65 Neutral | $4.87B | 19.87 | 15.09% | 2.14% | 14.53% | 21.78% |
* Financial Sector Average
Performance Comparison
CADE
Cadence Bancorporation
34.72
6.78
24.27%
FFIN
First Financial Bankshares
34.38
0.77
2.29%
GBCI
Glacier Bancorp
43.77
4.26
10.78%
HOMB
Home Bancshares
27.93
2.80
11.14%
UBSI
United Bankshares
35.77
1.52
4.44%
VLY
Valley National Bancorp
9.35
1.87
25.00%
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.