Cadence Bank net worth and financial performance reflect its strong capital structure and revenue-generating strategies.
In 2024, the bank achieved significant growth through core deposits and efficient loan management. Ando Money dives into the numbers to break down their success.
Quick Facts
| FACT | DETAIL |
|---|---|
| Name | Cadence Bank |
| Full Name | Cadence Bank, N.A. |
| Traded as | NYSE: CADE |
| ISIN | US12740C1036 |
| Founded | 1876 |
| Founders | N/A |
| Country/Territory | United States |
| Headquarters | Tupelo, Mississippi, Houston, Texas |
| Chief Executive Officer | Dan Rollins |
| Number of Employees | 5,290 |
| Market Cap | 5.60 billion USD |
| Total Assets | 47.98 billion USD |
| Total Equity | 5.29 billion USD |
| Revenue | 356.3 million USD (Q2 2024) |
| Net Income | 135.1 million USD (Q2 2024) |
What is the Net Worth/Market Cap Of Cadence Bank in 2024?
Cadence Bank’s market capitalization in 2024 stands at 5.60 billion USD, reflecting the bank’s solid position in the financial sector.
This valuation puts Cadence Bank among a competitive set of financial institutions that focus on steady loan growth, deposit expansion, and efficient capital management.
Compared to other banks in the industry, Cadence Bank’s market cap is relatively stable, especially as it continues to improve its net interest margin and overall profitability.
Here’s a list of banks related to Cadence Bank:
- Truist Financial Corporation
- Regions Financial Corporation
- Synovus Financial Corp
- First Horizon Corporation
- Pinnacle Financial Partners
- Comerica Incorporated
- Zions Bancorporation
- Fifth Third Bank
- KeyCorp
To explore more about the biggest players in the industry, check out our analysis of the largest banks in the world.
Financial Performance Overview
How Does Cadence Bank Generate Revenue?
Cadence Bank primarily generates its revenue through loan growth and interest income. In Q2 2024, the bank experienced net organic loan growth of $430.2 million, which translates to a 5.3% annualized increase.
This growth is reflected in the bank’s loan portfolio, consisting of commercial, industrial, and residential mortgages. The bank benefits from a net interest margin improvement, which rose by 5 basis points to 3.27%.
This margin improvement, coupled with stabilized funding costs, allowed Cadence Bank to generate a robust net interest revenue of $356.3 million in Q2 2024.
Additionally, core customer deposits played a significant role in enhancing the bank’s liquidity. The bank saw a growth of $237.4 million in core deposits during Q2, contributing to a total deposit base of $37.9 billion.
These deposits provide the bank with lower-cost funding, further improving its net interest margin.
The Role of Capital Structure in Financial Health
Cadence Bank maintains a strong capital structure, highlighted by its Common Equity Tier 1 Capital ratio of 11.9% and Total Capital ratio of 14.2%.
These ratios not only demonstrate the bank’s ability to manage risks effectively but also ensure that the bank remains well-capitalized under regulatory standards.
Moreover, the bank’s repurchase of 256,033 shares in Q2 2024 at an average price of $26.97 per share showcases its focus on enhancing shareholder value.
The total shareholders’ equity as of June 2024 was $5.3 billion, reinforcing the bank’s solid financial position.
How Cadence Bank Maintains Credit Quality and Risk Management
Cadence Bank’s approach to credit quality remains stable, as reflected by its allowance for credit losses, which stood at $470 million at the end of Q2 2024.
The bank’s net charge-offs totaled $22.6 million, representing 0.28% of average net loans and leases. Despite the slight increase in charge-offs, the provision for credit losses remained flat at $22.0 million, reflecting stable credit quality metrics.
The bank’s management of nonperforming assets is also noteworthy. Nonperforming loans accounted for 0.65% of total loans, a modest improvement from the previous quarter, ensuring the bank maintains a healthy asset portfolio.
Cadence Bank’s risk management strategy continues to focus on improving credit quality while reducing the levels of criticized and classified loans, which declined to 2.51% of total loans.
Noninterest Revenue Streams
In addition to interest income, Cadence Bank derives significant revenue from noninterest income sources.
In Q2 2024, the bank reported $100.7 million in noninterest revenue, driven by its wealth management division, which contributed $24.0 million.
This increase in wealth management revenue is attributed to the growth in asset management, trust services, and retail brokerage.
Additionally, the bank benefits from credit card and deposit service fees, which generated $12.8 million in Q2 2024. Although slightly lower than the previous quarter, these fees remain an important source of recurring income for Cadence Bank.
Furthermore, other noninterest revenue streams, such as partnership income and business sales, contributed significantly, including a $15.0 million gain from the sale of Cadence Business Solutions.
Operating Efficiency and Cost Management
One of the key highlights of Cadence Bank’s Q2 2024 performance is its improved operating efficiency. The bank’s adjusted efficiency ratio improved by 339 basis points, reaching 56.7%.
This improvement reflects the bank’s cost-control measures, particularly in noninterest expenses, which decreased by $12.4 million from the previous quarter. The reduction in salaries and employee benefits, as well as lower legal and operational costs, contributed to this decline.
The sale of non-core businesses, such as Cadence Business Solutions and Cadence Insurance, also positively impacted the bank’s operational efficiency.
These divestitures allowed Cadence Bank to focus on its core banking operations, which continues to drive profitability and enhance shareholder value.
FAQs about Cadence Bank
What services does the bank offer?
It offers consumer banking, commercial loans, mortgage lending, wealth management, foreign exchange, and SBA lending. Other services include investment management, treasury services, and trust management.
How does the bank generate revenue?
It earns from interest income on loans and noninterest revenue such as wealth management fees, deposit service fees, and credit card transactions. Sales of non-core businesses add to revenue.
Who is the CEO of the Cadence Bank?
The bank’s CEO is Dan Rollins, leading with a focus on growth, operational efficiency, and strong financial results.
How does the bank maintain credit quality?
It maintains credit quality through a stable $470 million allowance for credit losses and careful management of nonperforming loans.
Where is the Cadence Bank headquartered?
The bank’s headquarters are located in Tupelo, Mississippi, and Houston, Texas.
What is the Cadence Bank’s total asset value?
The bank holds 47.98 billion USD in total assets as of Q2 2024, reflecting its large loan portfolio and financial health.
Conclusion
Cadence Bank has demonstrated steady growth in 2024, driven by its capital management and loan expansion. For more insights, visit andomoney.com.
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