Cadence Bank (CADE): history, ownership, mission, how it works & makes money

A Brief History of Cadence Bank (CADE)

Founding and Early Years

Cadence Bank, originally established as a community bank, traces its roots back to 1888 in the heart of Alabama. Initially, the bank focused on providing local financial services to residents and small businesses.

Growth and Expansion

In the 2000s, Cadence Bank underwent significant expansions through strategic mergers and acquisitions. In 2012, it acquired the operations of the Columbus-based bank, enhancing its footprint across the Southeastern United States.

Acquisition by a Larger Institution

In 2014, Cadence Bank was acquired by a larger financial institution, which led to a period of rebranding and restructuring aimed at improving the bank's competitive edge.

Public Offering

Cadence Bank went public in 2021. The initial public offering (IPO) set the initial share price at $20. The shares performed strongly, with a market capitalization reaching approximately $1.1 billion on its first day of trading.

Financial Performance

As of the end of 2022, Cadence Bank reported total assets of $20.9 billion. Its net income for the year was approximately $266 million, reflecting a solid return on assets (ROA) of 1.27% and a return on equity (ROE) of 12.07%.

Recent Developments

In 2023, Cadence Bank announced a strategic initiative to enhance its digital banking capabilities, partnering with fintech companies to improve customer experience and streamline operations. This move reflects a broader trend in the banking industry towards digital transformation.

Current Market Position

As of October 2023, Cadence Bank operates over 400 branches across several southeastern states, including Alabama, Mississippi, Tennessee, and Georgia. The bank has a total workforce of approximately 2,700 employees.

Corporate Social Responsibility

Cadence Bank has consistently emphasized its commitment to community involvement. For 2022, the bank reported over $1.5 million in contributions to various charitable organizations and community development projects.

Future Outlook

Looking ahead, Cadence Bank aims to further expand its presence in the Southeast while enhancing its service offerings to better meet the needs of its customers. The bank's leadership is focused on sustainable growth and innovation to adapt to the ever-evolving financial landscape.

A Who Owns Cadence Bank (CADE)

Ownership Structure

As of the latest filings, Cadence Bank (NASDAQ: CADE) operates as a publicly traded financial institution. The ownership structure can be detailed as follows:

Major Institutional Shareholders

The largest institutional shareholders of Cadence Bank include:

Insider Ownership

Insider ownership consists of executives and board members who hold shares in the company. Notable insiders include:

Recent Financial Performance

As of the most recent quarterly report, Cadence Bank reported the following financial metrics:

Recent Market Activity

Cadence Bank's stock has shown significant activity over the past year:

Recent Developments

In the last year, some noteworthy developments affecting ownership included:

• Acquisition of a regional bank, increasing market share.
• Increased dividend payout by 5%, enhancing shareholder value.
• Implementation of a stock buyback program worth $50 million.

Cadence Bank (CADE) Mission Statement

Overview of Cadence Bank

Cadence Bank, headquartered in Atlanta, Georgia, operates as a regional bank providing a wide range of financial services, including commercial banking, consumer banking, and wealth management. As of December 31, 2022, Cadence Bank reported total assets of approximately $19.47 billion.

Core Values

The mission statement of Cadence Bank is shaped by its core values, which emphasize:

• Customer Commitment: Fostering strong relationships with clients and offering personalized banking solutions.
• Integrity: Upholding the highest ethical standards in all interactions.
• Community Engagement: Actively participating in and supporting the communities the bank serves.
• Innovation: Continuously seeking new ways to enhance customer experience through technology.

Mission Statement

Cadence Bank’s mission is: “To make banking easier and more accessible for everyone we serve, while enhancing the value of our shareholder's investments."

Financial Performance Indicators

Community Involvement

Cadence Bank is committed to community enrichment through various initiatives, including:

• Financial Education Programs: Offering workshops and resources to improve financial literacy.
• Community Investments: Investing over $1.5 million in local charitable organizations in 2022.
• Employee Volunteerism: Encouraging employees to contribute their time to community service.

Strategic Goals

To further its mission, Cadence Bank has outlined several strategic goals:

• Expand Digital Banking Solutions: Investing in technology to improve the customer experience.
• Increase Market Share: Targeting growth in strategic markets through competitive offerings.
• Enhance Risk Management: Implementing robust strategies to ensure financial stability and compliance.

Conclusion of Financial Commitment

Cadence Bank's mission statement reflects its dedication to providing high-quality banking services while promoting growth and sustainability in the communities it serves. The solid financial results demonstrate the effectiveness of its strategic initiatives and commitment to stakeholders.

How Cadence Bank (CADE) Works

Overview of Cadence Bank

Cadence Bank (NASDAQ: CADE) is a banking institution that focuses on commercial, retail, and wealth management services. As of the end of 2022, Cadence Bank reported total assets of approximately $23.4 billion and total deposits of around $18.1 billion.

Business Model

Cadence Bank operates under a traditional banking model which includes:

• Commercial Banking
• Retail Banking
• Wealth Management

The bank aims to serve both businesses and individual customers with tailored financial solutions.

Financial Performance

In the fiscal year 2022, Cadence Bank recorded net income of $245 million, with a return on assets (ROA) of 1.05% and a return on equity (ROE) of 9.87%.

Key Financial Metrics

Deposit Products

Cadence Bank offers a variety of deposit products, including:

• Checking Accounts
• Savings Accounts
• Certificates of Deposit (CDs)

The interest rates on savings accounts ranged from 0.01% to 0.50% depending on the account type as of late 2022.

Loan Products

Cadence Bank provides multiple loan products including:

• Commercial Loans
• Residential Mortgages
• Home Equity Loans
• Consumer Loans

The bank’s total loans and leases amount to approximately $15.2 billion.

Risk Management

Cadence Bank employs a robust risk management framework which involves:

• Credit Risk Assessment
• Market Risk Monitoring
• Operational Risk Management

As of December 2022, the non-performing assets ratio stood at 0.36%.

Recent Developments

In 2022, Cadence Bank announced its merger with Texas Bank and Trust Company, which is expected to enhance its market presence and expand its service offerings.

Market Position

Cadence Bank operates primarily in the Southeastern United States and is recognized for its customer-centric approach. As of 2023, it has more than 400 locations across 6 states.

How Cadence Bank (CADE) Makes Money

Interest Income

Cadence Bank generates a substantial portion of its revenue through interest income, derived primarily from loans. In 2022, the bank reported total interest income of approximately $307.8 million. The key components contributing to this figure include:

• Residential and commercial real estate loans
• Commercial and industrial loans
• Consumer loans

Non-Interest Income

In addition to interest income, Cadence Bank has a robust stream of non-interest income, which includes fees and commissions from various services. For the year 2022, non-interest income amounted to $90.6 million.

• Service charges on deposit accounts
• Wealth management fees
• Mortgage-related fees
• Investment banking revenue

Loan Portfolio Composition

The composition of Cadence Bank's loan portfolio is crucial in understanding its revenue generation. As of the end of Q3 2023, the breakdown of the loan portfolio was as follows:

Cost of Funds

Cadence Bank’s profitability is also influenced by its cost of funds. As of Q3 2023, the bank's average cost of funds was 0.56%. This low cost allows the bank to maintain a favorable net interest margin, which was reported at 3.21% for the same period.

Operational Efficiency

Operational efficiency is indicated by the bank's efficiency ratio, which measures operating expenses as a percentage of revenue. For 2022, Cadence Bank achieved an efficiency ratio of 59.7%, showcasing effective cost management.

Investment Securities

Cadence Bank also diversifies its income through investment securities. By Q3 2023, the bank had an investment securities portfolio worth $1.8 billion, contributing to a steady income stream from interest and dividends.

Credit Quality

The quality of Cadence Bank's loan portfolio is vital for its revenue stability. The non-performing assets ratio was 0.35% as of Q3 2023, indicating a healthy credit quality that supports ongoing revenue generation.

Market Presence and Growth Strategy

Cadence Bank has been expanding its market presence through strategic acquisitions. In 2021, it acquired State Bank Financial Corp. for approximately $1.0 billion, which enhanced its asset base and customer reach significantly.

Final Financial Metrics

The following key financial metrics provide a deeper insight into Cadence Bank’s financial performance: