Cadence Bank (CADE) Stock Analysis

Cadence Bank (CADE) Financial Services Profile

Cadence Bank, a regional bank established in 1876, provides diverse financial services including consumer and commercial banking, wealth management, and specialized lending. Operating approximately 400 branches across the South, Midwest, and Texas, Cadence Bank distinguishes itself through its comprehensive service offerings and established regional presence in a competitive banking landscape.

What Is the Investment Thesis for CADE?

Cadence Bank presents a compelling investment case based on its established regional presence, diverse service offerings, and solid financial performance. With a market capitalization of $7.85B and a P/E ratio of 14.7, the bank demonstrates financial stability. A profit margin of 18.7% and a gross margin of 60.6% indicate efficient operations. The dividend yield of 2.78% provides an attractive income stream for investors. Growth catalysts include expansion in key markets and increased adoption of digital banking services. Potential risks include interest rate fluctuations and increased competition from fintech companies. The bank's beta of 0.95 suggests moderate volatility relative to the market.

Based on FMP financials and quantitative analysis

CADE Key Highlights

Market capitalization of $7.85B, reflecting substantial investor confidence.

• P/E ratio of 14.7, indicating a reasonable valuation compared to earnings.
• Profit margin of 18.7%, showcasing efficient profitability.
• Gross margin of 60.6%, highlighting strong revenue generation relative to cost of goods sold.
• Dividend yield of 2.78%, providing a steady income stream for investors.

Who Are CADE's Competitors?

CADE is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are CADE's Key Strengths?

Established regional presence in the South, Midwest, and Texas.

• Diverse range of financial products and services.
• Long-standing history and reputation.
• Solid financial performance with healthy profit and gross margins.

What Are CADE's Weaknesses?

Limited geographic diversification compared to national banks.

• Vulnerability to regional economic downturns.
• Potential for increased competition from fintech companies.
• Reliance on traditional branch banking model.

What Could Drive CADE Stock Higher?

CADE catalyst: Launch of new digital banking platform in Q3 2026, expected to drive customer acquisition and retention.

• Expansion into high-growth markets in the South and Midwest, projected to increase market share.
• Strategic acquisitions of smaller regional banks, expected to generate cost synergies and revenue growth.
• Increased focus on wealth management services, targeting high-net-worth individuals.

What Are the Key Risks for CADE?

Financial-distress signal — its Altman Z-Score of -0.38 sits in the distress zone (elevated bankruptcy risk).

• Insider selling — insiders were net sellers of roughly $6.5M recently.
• Interest rate hikes by the Federal Reserve, which could negatively impact loan demand and profitability.
• Increased competition from fintech companies offering innovative banking solutions.
• Economic downturns in the South, Midwest, and Texas, which could lead to increased loan defaults.
• Regulatory changes impacting the banking industry, requiring increased compliance costs.
• Cybersecurity threats and data breaches, which could damage the bank's reputation and financial performance.

What Are the Growth Opportunities for CADE?

• Expansion in High-Growth Markets: Cadence Bank can capitalize on growth opportunities by expanding its presence in rapidly growing metropolitan areas within its existing footprint in the South, Midwest, and Texas. By strategically opening new branches and increasing its marketing efforts in these areas, Cadence Bank can attract new customers and increase its market share. The market size for regional banking services in these high-growth areas is estimated to be $50 billion, with a potential timeline of 3-5 years for significant market penetration.
• Enhanced Digital Banking Platform: Investing in and enhancing its digital banking platform can attract and retain customers who prefer online and mobile banking solutions. This includes improving the user interface, adding new features such as mobile check deposit and online account opening, and enhancing cybersecurity measures. The digital banking market is projected to reach $9 trillion by 2028, offering a substantial growth opportunity for Cadence Bank.
• Strategic Acquisitions: Cadence Bank can pursue strategic acquisitions of smaller regional banks or credit unions to expand its geographic footprint and increase its customer base. This can provide access to new markets and customers, as well as economies of scale and cost synergies. The market for regional bank acquisitions is active, with numerous opportunities for Cadence Bank to expand its presence and capabilities.
• Wealth Management Services: Expanding its wealth management services can generate additional revenue streams and attract high-net-worth individuals. This includes offering financial planning, investment management, and trust services. The wealth management market is projected to reach $140 trillion by 2030, presenting a significant growth opportunity for Cadence Bank.
• Small Business Lending: Focusing on small business lending can drive growth and support local economies. By offering tailored loan products and services to small businesses, Cadence Bank can attract new customers and increase its loan portfolio. The small business lending market is estimated to be $800 billion annually, providing a substantial opportunity for Cadence Bank to expand its lending activities.

What Are CADE's Competitive Advantages?

• Established regional presence with a network of approximately 400 branches.
• Long-standing history dating back to 1876, fostering customer trust.
• Diverse range of financial products and services.
• Strong relationships with local communities and businesses.

What Does CADE Do?

Cadence Bank, incorporated in 1876 and headquartered in Tupelo, Mississippi, has evolved into a significant regional banking institution. Originally founded to serve the local community, the bank has expanded its footprint through strategic acquisitions and organic growth. Today, Cadence Bank operates approximately 400 branch locations across the South, Midwest, and Texas, offering a comprehensive suite of financial products and services. These include consumer banking services such as checking and savings accounts, consumer loans, mortgages, home equity lines and loans, and credit cards. For businesses, Cadence Bank provides commercial and business banking, treasury management, specialized and asset-based lending, commercial real estate financing, equipment financing, and correspondent banking services. Additionally, the bank offers small business administration lending, foreign exchange services, wealth management, investment and trust services, financial planning, retirement plan management, and personal and business insurance services. Cadence Bank competes with other regional and national banks by focusing on personalized service and tailored financial solutions for its diverse customer base.

What Products and Services Does CADE Offer?

• Provides consumer banking services including checking and savings accounts.
• Offers consumer loans, mortgages, and home equity products.
• Issues credit cards to consumers.
• Provides commercial and business banking services.
• Offers treasury management services to businesses.
• Provides specialized and asset-based lending solutions.
• Offers commercial real estate and equipment financing.
• Provides wealth management, investment, and trust services.

How Does CADE Make Money?

• Generates revenue through interest income from loans.
• Earns fees from services such as account maintenance and transactions.
• Provides wealth management and trust services for a fee.
• Offers insurance products and earns commissions.

What Industry Does CADE Operate In?

Cadence Bank operates within the regional banking sector, which is characterized by increasing competition and evolving customer expectations. The industry is experiencing a shift towards digital banking solutions and personalized financial services. Cadence Bank competes with other regional players like Popular, Inc. (BPOP), BOK Financial Corporation (BOKF), Cullen/Frost Bankers, Inc. (CFR), Pinnacle Financial Partners, Inc. (PNFP), and Columbia Banking System, Inc. (COLB). These companies are all vying for market share in a landscape influenced by interest rate changes, regulatory requirements, and technological advancements.

Who Are CADE's Key Customers?

• Individual consumers seeking banking services.
• Small businesses requiring loans and banking solutions.
• Commercial clients needing treasury management and financing.
• High-net-worth individuals seeking wealth management services.

The most recent 8 insider filings for Cadence Bank break down as 6 sales and 2 purchases. On net that is roughly 627K shares disposed (about $6.5M), a signal worth weighing alongside the fundamentals.

Quarterly Financial Performance: Cadence Bank

Revenue for Cadence Bank came in at $768.0M during Q4 2025, a 2.6% improvement versus the preceding quarter. The company recorded net income of $146.7M, with diluted EPS of $0.76. Revenue has increased across the last three reported quarters, suggesting sustained momentum for this mid-cap Financial Services company. Across the four most recent quarters, CADE averaged $0.71 in diluted EPS.

CADE Valuation & Market Position

With a $7.85B market cap, Cadence Bank sits in the mid-cap segment of the market.

Return on equity for Cadence Bank stands at 9.1%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 1.0%, showing how much profit it generates from its asset base. CADE trades at a trailing price-to-earnings ratio of 14.66, below the Financial Services sector average of ~18x. Its free cash flow yield is 6.5%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.07 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 6.8%, the inverse of the P/E and a quick read on earnings relative to price.

Cadence Bank's Piotroski F-Score is 5/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of -0.38 places it in the distress zone, a signal of elevated financial risk.

Wall Street analysts project Cadence Bank revenue of about $2.17B for fiscal 2026, with EPS near $3.48. The estimate reflects 3 contributing analysts.

Company Profile

Cadence Bank operates in the Banks - Regional industry within the Financial Services sector. It is headquartered in Tupelo, US. The company is led by CEO James D. Rollins. CADE has traded publicly since 1985.

CADE Financials

CADE Latest News

Cadence Bank Financial Services Stock: Key Questions Answered

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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