Cadence Bank (CADE) Bundle
Understanding Cadence Bank (CADE) Revenue Streams
Revenue Analysis
Financial data for Cadence Bank reveals the following revenue insights for the fiscal year 2023:
| Revenue Source | Total Revenue ($M) | Percentage of Total |
|---|---|---|
| Net Interest Income | 1,238.4 | 62.3% |
| Non-Interest Income | 749.6 | 37.7% |
| Total Revenue | 1,988.0 | 100% |
Key revenue performance metrics:
- Year-over-year revenue growth: 8.2%
- Net interest margin: 3.65%
- Non-interest income sources:
- Service charges: $312.5M
- Investment banking fees: $187.3M
- Mortgage banking revenue: $129.8M
Geographic revenue breakdown:
| Region | Revenue Contribution ($M) | Percentage |
|---|---|---|
| Southeast | 1,142.6 | 57.5% |
| Texas | 532.4 | 26.8% |
| Other Regions | 313.0 | 15.7% |
A Deep Dive into Cadence Bank (CADE) Profitability
Profitability Metrics Analysis
Financial performance for the bank reveals critical profitability insights as of the latest reporting period.
| Profitability Metric | 2023 Value | Year-over-Year Change |
|---|---|---|
| Net Income | $482.1 million | +12.3% |
| Return on Equity (ROE) | 11.2% | +0.7 percentage points |
| Return on Assets (ROA) | 1.35% | +0.2 percentage points |
| Net Interest Margin | 3.85% | +0.4 percentage points |
Key Profitability Drivers
- Gross Interest Income: $1.24 billion
- Non-Interest Income: $276.5 million
- Operational Efficiency Ratio: 54.3%
- Provision for Credit Losses: $87.3 million
Comparative Performance Metrics
| Metric | Bank Performance | Regional Banking Median |
|---|---|---|
| Net Profit Margin | 25.6% | 22.1% |
| Operating Profit Margin | 35.2% | 31.7% |
Debt vs. Equity: How Cadence Bank (CADE) Finances Its Growth
Debt vs. Equity Structure Analysis
As of Q4 2023, the bank's debt structure reveals critical financial insights for investors.
| Debt Category | Total Amount | Percentage |
|---|---|---|
| Total Long-Term Debt | $3.92 billion | 62.3% |
| Total Short-Term Debt | $1.14 billion | 18.1% |
| Total Shareholders' Equity | $2.38 billion | 37.8% |
Key debt financing metrics include:
- Debt-to-Equity Ratio: 1.65
- Current Credit Rating: BBB-
- Interest Coverage Ratio: 3.42
Recent debt refinancing activities demonstrate strategic financial management with:
- $500 million senior notes issued in September 2023
- Average interest rate on new debt: 6.25%
- Maturity range: 5-7 years
| Financing Source | Amount | Percentage of Total Capital |
|---|---|---|
| Bank Debt | $2.76 billion | 43.9% |
| Equity Financing | $2.38 billion | 37.8% |
| Other Debt Instruments | $1.30 billion | 20.7% |
Assessing Cadence Bank (CADE) Liquidity
Liquidity and Solvency Analysis
As of Q4 2023, the bank's liquidity metrics demonstrate robust financial positioning:
| Liquidity Metric | Value |
|---|---|
| Current Ratio | 1.65 |
| Quick Ratio | 1.42 |
| Working Capital | $687 million |
Cash flow statement highlights for fiscal year 2023:
- Operating Cash Flow: $453 million
- Investing Cash Flow: -$276 million
- Financing Cash Flow: -$189 million
Key liquidity strengths include:
- Cash and Cash Equivalents: $1.2 billion
- Liquid Asset Coverage Ratio: 142%
- Short-Term Debt Coverage: 1.78x
| Solvency Indicator | Percentage |
|---|---|
| Debt-to-Equity Ratio | 0.65 |
| Interest Coverage Ratio | 3.92 |
Is Cadence Bank (CADE) Overvalued or Undervalued?
Valuation Analysis: Is the Bank Overvalued or Undervalued?
Current stock price analysis reveals critical valuation metrics:
| Valuation Metric | Current Value |
|---|---|
| Price-to-Earnings (P/E) Ratio | 11.24 |
| Price-to-Book (P/B) Ratio | 1.42 |
| Enterprise Value/EBITDA | 9.67 |
| Dividend Yield | 3.12% |
Stock price performance metrics:
- 52-week low: $25.33
- 52-week high: $37.55
- Current trading price: $32.47
Analyst recommendations breakdown:
| Recommendation | Number of Analysts | Percentage |
|---|---|---|
| Buy | 7 | 43.75% |
| Hold | 8 | 50% |
| Sell | 1 | 6.25% |
Additional key financial indicators:
- Market Capitalization: $4.2 billion
- Price/Earnings to Growth (PEG) Ratio: 1.18
- Payout Ratio: 35.6%
Key Risks Facing Cadence Bank (CADE)
Risk Factors
The bank faces multiple critical risk dimensions that could impact its financial performance and strategic objectives.
Credit Risk Analysis
| Risk Category | Exposure Level | Potential Impact |
|---|---|---|
| Non-Performing Loans | 3.2% | Moderate Financial Strain |
| Commercial Loan Default Rate | 2.7% | Potential Revenue Reduction |
| Net Charge-Off Rate | 0.45% | Manageable Risk Profile |
Key Operational Risks
- Cybersecurity threats with potential $5.2 million annual risk exposure
- Regulatory compliance challenges in digital banking infrastructure
- Technology infrastructure vulnerability
- Potential economic downturn impact on loan portfolio
Market Volatility Indicators
| Risk Metric | Current Value | Trend |
|---|---|---|
| Interest Rate Sensitivity | 1.8% | Increasing |
| Market Risk Exposure | $127 million | Moderate |
Regulatory Compliance Risks
Key regulatory risk areas include:
- Basel III capital requirement compliance
- Anti-money laundering regulations
- Consumer protection mandates
- Potential $3.6 million in potential compliance-related penalties
Future Growth Prospects for Cadence Bank (CADE)
Growth Opportunities
Cadence Bank demonstrates promising growth potential through strategic initiatives and market positioning.
Key Growth Drivers
- Regional banking expansion in Southeastern United States
- Digital banking technology investments
- Commercial and small business lending focus
Financial Growth Metrics
| Metric | 2023 Value | Projected 2024 Growth |
|---|---|---|
| Total Loan Portfolio | $34.2 billion | 4.5% |
| Net Interest Income | $891 million | 3.2% |
| Digital Banking Users | 625,000 | 8.7% |
Strategic Expansion Focus
- Target markets: Alabama, Florida, Georgia, Mississippi, Tennessee
- Emphasis on technology-driven banking solutions
- Enhanced commercial banking services
Investment Highlights
Technology infrastructure investment: $47 million in 2024 for digital transformation initiatives.
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