Cadence Bank (CADE): History, Ownership, Mission, How It Works & Makes Money

As a seasoned investor, you're defintely asking: what is the true financial engine of Cadence Bank (CADE), a regional powerhouse now managing approximately $53 billion in assets? This is not just another community bank story; Cadence Bank's strategy, which delivered 2025 third-quarter adjusted net income of $152.8 million and a net interest margin of 3.46%, shows a disciplined approach to growth across the South and Texas. How does a bank with roots tracing back to 1876 keep its model profitable in today's volatile interest rate environment, and what does its ownership structure mean for its long-term stability? We'll break down the history, the mission to help people and companies prosper, and the core mechanisms-loans, deposits, and fee-based services-that drive its revenue.

Cadence Bank (CADE) History

You're looking for the bedrock of Cadence Bank, and honestly, the story is more about a long series of smart, strategic mergers than a single founding moment. The current Cadence Bank is the result of a 2021 merger between BancorpSouth Bank and Cadence Bancorporation, but its roots stretch back nearly 150 years to a post-Civil War effort to rebuild a local economy. That longevity is a defintely a core strength.

Given Company's Founding Timeline

Year established

The original entity, Raymond Trice and Company, was established in 1876 when it received a perpetual charter to operate a bank.

Original location

The bank started in the back of a hardware store in Verona, Mississippi, a small town focused on community banking before moving to Tupelo in 1886.

Founding team members

The bank was founded by the mercantile operation Raymond Trice and Company. While specific individual founders are not widely documented, Raymond Trice is identified as a key figure in the initial venture.

Initial capital/funding

A specific dollar amount for the initial capital is not available for the 1876 founding, but the Mississippi state legislature granted a rare perpetual charter to Raymond, Trice & Company to help rebuild the local economy after the Civil War. This charter allowed them to immediately begin granting loans to landowners and fund community projects.

Given Company's Evolution Milestones

Given Company's Transformative Moments

The bank's history is defined by two major pivots: the 2021 merger that created the modern brand, and the late 2025 acquisition that sets its future course. You can see how the focus shifted from pure regional growth to a larger, national play.

• The 2021 Merger: The combination of BancorpSouth's deep regional footprint and Cadence Bancorporation's fresh capital and experienced management team-formed after the global financial crisis-created a new entity focused on both traditional and specialized banking services. This is when the NYSE ticker became CADE.
• Strategic Growth and Efficiency: In the 2025 fiscal year, the bank showed strong operational performance before the final acquisition announcement. For Q3 2025, Cadence Bank reported an adjusted net income of $152.8 million, or $0.81 per diluted share, demonstrating solid profitability and an improved net interest margin of 3.46%.
• The 2025 Acquisition: The announced sale to Huntington Bancshares for $7.4 billion in October 2025 is the most significant near-term event. This move, which is part of a broader trend of consolidation among regional banks, will integrate Cadence Bank into a larger platform, expanding its reach into new markets.

To understand the philosophy guiding these decisions, you should review the Mission Statement, Vision, & Core Values of Cadence Bank (CADE).

Cadence Bank (CADE) Ownership Structure

Cadence Bank's ownership structure is heavily concentrated, with institutional investors holding the vast majority of shares, a common trait for a regional bank of its size. This high institutional control-over 84%-means that large asset managers and hedge funds ultimately drive the stock's trading volume and exert significant influence on corporate decisions, like the recently announced acquisition by Huntington Bancshares Incorporated.

Cadence Bank's Current Status

Cadence Bank is a publicly traded company on the New York Stock Exchange (NYSE) under the ticker symbol CADE. As of November 2025, its market capitalization stands at approximately $7.22 billion, reflecting its position as a major regional player in the Sunbelt markets, particularly Texas and Georgia.

The biggest near-term factor impacting its status is the announced all-stock sale to Huntington Bancshares Incorporated, valued at $7.4 billion, which is expected to close in the first quarter of 2026. This means the current ownership structure is temporary, and shareholders are effectively holding a claim on the combined entity, where Cadence shareholders will own roughly 23% of the merged company. You defintely need to understand this merger dynamic when evaluating the stock.

Cadence Bank's Ownership Breakdown

The company is overwhelmingly controlled by institutional money, which is typical for a bank with a float of over 184 million shares. This structure ensures that management is highly accountable to professional investors who demand consistent capital returns and operational efficiency, like the $127.5 million in net income reported for Q3 2025. Here's the quick math on who holds the equity:

What this estimate hides is the potential for institutional investors to sell off their positions as the merger with Huntington Bancshares Incorporated approaches, which could put pressure on the stock price in the short term. For a deeper dive into the bank's performance metrics, you can check out Breaking Down Cadence Bank (CADE) Financial Health: Key Insights for Investors.

Cadence Bank's Leadership

The executive leadership team is steering the company through this pivotal transition period, with an average management tenure of nearly 10 years, suggesting experienced hands are on the wheel. The governance structure is led by a combined Chairman and CEO role, which centralizes decision-making during the integration process.

• James D. "Dan" Rollins III: Chairman and Chief Executive Officer. He has led the company since 2012 and will transition to a non-executive Vice Chairman role on the Huntington Bancshares Incorporated board after the merger closes.
• Chris A. Bagley: President and Chief Credit Officer. He plays a crucial role in maintaining the bank's credit standards, a key focus given the Q3 2025 net charge-offs of $23.6 million.
• Edward "Billy" H. Braddock: Chief Banking Officer. He oversees the Corporate Bank, Treasury Management, and Private Banking divisions.
• Valerie Toalson: CFO and President, Banking Services. She manages the bank's financial strategy and reporting.
• Ty Lambert: Chief Risk Officer. He directs the enterprise-wide risk management strategy.

Cadence Bank (CADE) Mission and Values

Cadence Bank's mission and values are built on a relationship-first model, focusing on the financial prosperity of their customers, employees, and the communities they serve, not just the bottom line. This cultural DNA translates directly into a multi-billion dollar commitment to underserved communities, showing where their capital is defintely flowing.

Given Company's Core Purpose

You need to know what a bank stands for beyond its quarterly earnings, and Cadence Bank's core purpose is a clear commitment to a wider set of stakeholders. Their values act as the operating manual for their approximately 390 locations across the South and Texas.

Official mission statement

The formal mission statement outlines a clear, three-part mandate that balances customer service, employee support, and shareholder return. It's a pragmatic view of a regional bank's role in the economy.

• Meet customers where they are in their financial journey, giving expert advice and a broad array of products to help them reach their goals.
• Deliver value to shareholders.
• Foster a workplace where teammates thrive and communities prosper.

The core values that drive this mission are: Value relationships; Put customers at the center of our business; Do right by others; Embrace inclusivity; and Create a great place to work.

Vision statement

The vision statement is a simple, powerful declaration of their ultimate goal-it's about shared success. This is what they're aiming for every day. Mission Statement, Vision, & Core Values of Cadence Bank (CADE).

• Helping people, companies and communities prosper.

To put a number on that prosperity, Cadence Bank has a five-year (2022-2026) Community Benefits Plan that commits to investing a total of $20.7 billion into low- and moderate-income (LMI) communities. Here's the quick math: that includes $11.8 billion for residential mortgages to LMI borrowers and minorities, plus $6.5 billion in small business loans for companies in LMI census tracts or those with less than $1 million in annual revenue.

Given Company slogan/tagline

The bank's brand identity centers on making the complex world of finance feel manageable for you, the customer. Banking should be simple.

• Helping opportunity take shape.
• Brand Promise: Ease your day. And your mind.

This focus on ease is why they were recognized as one of American Banker's 2025 Best Banks to Work For, ranking No. 74 nationwide; they believe when their people thrive, customers and communities do too.

Cadence Bank (CADE) How It Works

Cadence Bank operates as a regional financial services company, primarily generating revenue by taking in deposits and lending those funds out, creating net interest income (NII).

The company also earns significant non-interest revenue from its specialized services like treasury management, wealth management, and mortgage banking, serving a diverse base of consumers and commercial clients across the high-growth Sunbelt region of the US.

Cadence Bank's Product/Service Portfolio

Cadence Bank's Operational Framework

The bank's operational model focuses on a dual-engine approach: driving organic growth in high-demand markets while executing strategic, accretive mergers and acquisitions (M&A) to expand its footprint and scale.

• Balance Sheet Optimization: Management continually works to improve the net interest margin (NIM), which reached 3.46% in the third quarter of 2025, by actively managing loan yields and lowering funding costs.
• Strategic Expansion: In 2025, the company completed two significant acquisitions, including the merger with First Chatham Bank in May and the acquisition of Industry Bancshares, Inc. in July, which added approximately $4.1 billion in assets.
• Core Deposit Growth: A key operational goal is increasing stable, low-cost core customer deposits, which grew by $3.1 billion in Q3 2025, largely due to the Industry Bancshares acquisition.
• Efficiency Focus: The bank maintains a strong focus on operational leverage, reflected by an adjusted efficiency ratio of 56.5% in the third quarter of 2025.

Here's the quick math: The company's total loans and leases stood at approximately $36.8 billion as of September 30, 2025, generating the bulk of its interest income.

Cadence Bank's Strategic Advantages

Cadence Bank's market success stems from its geographic concentration in rapidly expanding US markets and its proven capability in specialized commercial banking.

• Sunbelt Market Concentration: The bank has a dominant presence across the high-growth Sunbelt region, with Texas alone accounting for an estimated 37% of its total deposits, fueling robust organic loan and deposit growth.
• Middle Market Expertise: Cadence Bank is defintely a recognized leader in commercial services, earning four 2025 Coalition Greenwich Best Bank Awards for overall satisfaction in both Middle Market and Small Business Banking.
• Diversified Revenue Streams: Unlike many regional banks heavily reliant on NII, Cadence Bank benefits from a strong non-interest revenue component (fees, wealth management, etc.), which helps stabilize earnings across different interest rate cycles.
• M&A Integration Track Record: The successful and swift integration of acquired banks like First Chatham Bank and the Industry Bancshares banks in 2025 demonstrates a scalable platform and an experienced team, positioning it for future opportunistic growth.

You can see how their strong capital position, with a Common Equity Tier 1 Capital of 11.5% as of September 30, 2025, supports this expansion strategy. To dig deeper into the numbers, check out Breaking Down Cadence Bank (CADE) Financial Health: Key Insights for Investors.

Cadence Bank (CADE) How It Makes Money

Cadence Bank primarily makes money the way most commercial banks do: by borrowing funds cheaply from depositors and lending them out at a higher rate, a process known as generating Net Interest Income. Plus, it earns a significant portion of its revenue from fee-based services, which is a key diversifier for a regional bank.

Cadence Bank's Revenue Breakdown

For the third quarter of 2025 (Q3 2025), Cadence Bank reported a total revenue of approximately $517.2 million, a figure that clearly illustrates the dominance of the traditional lending model. The mix between interest-driven revenue and fee-driven revenue is essential for understanding the bank's risk profile and profitability. Here's the quick math on the breakdown:

Net Interest Revenue, which is the interest earned on loans and securities minus the interest paid on deposits and borrowings, was $423.7 million in Q3 2025, up 12.1% from the prior quarter. That's the engine driving the bus.

Noninterest Revenue, which includes service charges, mortgage banking, and wealth management fees, came in at $93.5 million in Q3 2025, a decrease of 4.8% compared to the second quarter. The decline was largely driven by a dip in mortgage banking revenue, which is a common near-term risk in a high-rate environment.

Business Economics

The core economic driver for Cadence Bank is its Net Interest Margin (NIM), which is the spread between what it earns on assets (like loans) and what it pays for liabilities (like deposits). You want this number to be high and stable.

• Net Interest Margin (NIM) Expansion: The NIM was 3.46% in Q3 2025, an increase of 6 basis points (bps) from the previous quarter. This improvement is defintely a positive signal, showing the bank is managing its funding costs better and benefiting from higher yields on its loan and securities portfolios.
• Acquisition-Driven Growth: The bank's growth isn't just organic; it's strategically acquisitive. The Q3 2025 increase in net interest revenue was significantly boosted by the acquisition of Industry Bancshares, Inc., which added approximately $4.1 billion in assets, plus the full quarter impact of the First Chatham Bank acquisition.
• Loan and Deposit Base: As of September 30, 2025, total loans stood at $36.8 billion, and total deposits were $43.9 billion. A robust deposit base is crucial because it provides a lower-cost source of funding than wholesale borrowing. The loan-to-deposit ratio was 83.8%, which suggests a healthy liquidity position and room for further lending.

Cadence Bank's Financial Performance

To gauge the bank's overall health, you need to look past just revenue and check profitability and capital strength. The Q3 2025 results show a solid, if slightly mixed, picture of performance.

• Profitability: Adjusted net income available to common shareholders was $152.8 million for Q3 2025, translating to adjusted diluted earnings per common share (EPS) of $0.81. This is up 11.2% from the prior quarter, which is a strong sign of operational efficiency and integration success.
• Asset Efficiency: The adjusted Return on Average Assets (ROAA) was 1.13% for Q3 2025. For a regional bank, consistently hitting or exceeding the 1.0% mark is generally considered a good benchmark for efficient asset use.
• Capital Strength: The bank maintains a strong capital position, with its estimated regulatory Common Equity Tier 1 (CET1) capital ratio at a robust 11.5% as of September 30, 2025. This high ratio means the bank has a large cushion of high-quality capital to absorb unexpected losses, which is exactly what you want to see in a financial institution.
• Credit Quality: While classified loans improved to 1.89% of total loans, criticized loans slightly increased to 2.71% of loans in Q3 2025. You need to watch that criticized loan number; it indicates potential future credit issues, especially in the commercial real estate and asset-based lending sectors where paydowns were noted.

Cadence Bank (CADE) Market Position & Future Outlook

Cadence Bank's near-term outlook is fundamentally defined by its pending acquisition by Huntington Bancshares, which will dramatically expand its footprint across the South and Texas. This move positions the bank to transition from a leading regional player with approximately $55 billion in assets to a key component of a much larger national franchise, driving significant synergy capture and market scale.

The company enters this transition from a position of recent strength, having achieved an adjusted net income of $152.8 million in the third quarter of 2025, supported by a net interest margin (NIM) that improved to 3.46%. This financial momentum, bolstered by successful 2025 acquisitions, provides a strong base for the upcoming integration. You can read more about what drives this focus on customer-centric growth in their Mission Statement, Vision, & Core Values of Cadence Bank (CADE).

Competitive Landscape

Within the regional banking sector, Cadence Bank competes fiercely on service and geographic focus. Using total assets as a proxy for market share among key peers, you can see how the bank stacks up just prior to its merger. Here's the quick math on their relative standing against two major competitors:

Cadence Bank's core competitive advantage is its deep, relationship-driven commercial banking model, especially in the high-growth markets of Texas and the Southeast, which differentiates it from larger national banks and smaller community banks.

Opportunities & Challenges

The merger with Huntington Bancshares is the single biggest factor on the horizon, but it carries both clear upsides and defintely measurable risks.

Industry Position

Cadence Bank is currently a top-tier regional bank, consistently recognized for its performance and workplace culture. It was ranked 89th on the 2025 Fortune 100 Fastest-Growing Companies list, one of only 11 banks to make the cut. As of late 2024, the bank ranked as the 8th largest headquartered within its nine-state operating footprint.

• Total assets stood at approximately $55 billion in November 2025, with over 390 branch locations spanning the South and Texas.
• The successful integration of 2025 acquisitions, including First Chatham Bank and Industry Bancshares, Inc., added approximately $4.1 billion in assets and strengthened its core deposit base.
• The bank maintains strong regulatory capital, with a Common Equity Tier 1 (CET1) ratio of 11.5% as of September 30, 2025, which provides a solid buffer against potential credit issues.

The strategic shift is clear: move from being a strong regional acquirer to being the acquired entity that provides a massive, high-growth platform for a larger national bank. This is a game-changer for its long-term market trajectory.