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

Ever wondered about the story behind Cadence Bank (CADE) and how it operates? As a leading regional banking franchise with approximately $50 billion in assets and over 350 branch locations across the South and Texas, Cadence Bank reported a quarterly net income available to common shareholders of $130.3 million, or $0.70 per diluted common share, in the fourth quarter of 2024. But how did it get here, and what's the secret to its success? Keep reading to uncover the history, ownership structure, mission, and revenue streams that define this financial institution.

Cadence Bank (CADE) History

Cadence Bank Founding Timeline

Year established

The company was established in 1876.

Original location

The company was originally located in Starkville, Mississippi.

Founding team members

The company's origins trace back to the Starkville National Bank, though specific founding team members are not widely detailed in available resources.

Initial capital/funding

Information regarding the company's initial capital and funding is not readily available in provided search results.

Cadence Bank Evolution Milestones

Cadence Bank Transformative Moments

• Reorganization as a Holding Company (1993): This strategic move allowed for greater flexibility in acquiring and managing other financial institutions, setting the stage for future expansion.
• Renaming to Cadence Bancorp (2004): The name change reflected the company's evolving identity and ambition to serve a wider geographic area.
• Establishment of Cadence Bank (2011): This marked a significant step in solidifying the company's brand and operational structure.
• Merger with BancorpSouth Bank (2021): A transformative event that created a larger, more competitive regional bank with increased resources and market reach.

Explore more about the company, read here: Mission Statement, Vision, & Core Values of Cadence Bank (CADE).

Cadence Bank (CADE) Ownership Structure

Cadence Bank operates with a mixed ownership structure, including institutional, retail, and insider stakeholders. Understanding this structure provides insights into the stability and strategic influences within the bank.

Cadence Bank's Current Status

Cadence Bank is a publicly traded company, listed on the New York Stock Exchange (NYSE) under the ticker symbol CADE. This means that its shares are available for purchase by the general public, and the company is subject to regulations and reporting requirements set forth by the Securities and Exchange Commission (SEC).

Cadence Bank's Ownership Breakdown

The ownership of Cadence Bank is distributed among various types of shareholders. Here's a breakdown:

Cadence Bank's Leadership

The leadership team plays a crucial role in guiding the strategic direction and operational performance of Cadence Bank. Key figures include:

• Dan Rollins: Chairman and Chief Executive Officer
• James Rollins: Executive Vice President and Chief Financial Officer

For more insights into the financial health of Cadence Bank, check out: Breaking Down Cadence Bank (CADE) Financial Health: Key Insights for Investors

Cadence Bank (CADE) Mission and Values

Cadence Bank strives to improve the financial lives of its customers and create long-term value for its shareholders. The bank's core values guide its operations and relationships with stakeholders.

Cadence Bank's Core Purpose

Official mission statement

Cadence Bank's mission statement is: 'To be a positive influence in every life we touch.'

• This mission reflects a commitment to making a difference in the lives of its customers, employees, and communities.
• It emphasizes building strong relationships and providing financial solutions that meet their needs.

Vision statement

Cadence Bank's vision is to be a leading financial institution that is known for its exceptional customer service, innovative products, and commitment to community development.

• The vision focuses on achieving excellence in all aspects of its business.
• It highlights the importance of building a strong reputation and delivering value to its stakeholders.

Company slogan/tagline

Cadence Bank's tagline is 'Bank on Confidence.'

• This tagline conveys a sense of trust, reliability, and security.
• It suggests that customers can rely on Cadence Bank to provide them with the financial solutions and support they need to achieve their goals.

For more in-depth information, you can visit: Mission Statement, Vision, & Core Values of Cadence Bank (CADE).

Cadence Bank (CADE) How It Works

Cadence Bank operates by offering a range of financial products and services to individuals, businesses, and institutions, generating revenue through interest on loans, fees for services, and investment activities.

Cadence Bank's Product/Service Portfolio

Cadence Bank's Operational Framework

Cadence Bank's operational framework involves several key processes that drive value creation:

• Deposit Gathering: Attracting deposits from customers through various accounts, providing the bank with funds for lending and investment.
• Loan Origination and Underwriting: Evaluating and approving loan applications from businesses and individuals, assessing creditworthiness and managing risk.
• Asset and Liability Management: Managing the bank's assets (loans, investments) and liabilities (deposits, borrowings) to optimize profitability and maintain liquidity.
• Customer Relationship Management: Building and maintaining relationships with customers to understand their financial needs and provide tailored solutions.
• Risk Management and Compliance: Identifying, assessing, and mitigating various risks, including credit risk, market risk, and operational risk, while adhering to regulatory requirements.

Cadence Bank's Strategic Advantages

Cadence Bank maintains several strategic advantages that enable its success in the market:

• Diversified Revenue Streams: Generates income from a variety of sources, including commercial lending, retail banking, wealth management, and mortgage banking, reducing reliance on any single line of business.
• Strong Regional Presence: Operates primarily in the Southeastern United States, with a focus on high-growth markets, allowing for targeted business development and community engagement.
• Experienced Management Team: Led by a team of experienced banking professionals with a track record of successful growth and strategic execution.
• Technology Investments: Invests in technology to improve efficiency, enhance customer experience, and drive innovation in its products and services.

For more insights into the company's financial standing, consider reading: Breaking Down Cadence Bank (CADE) Financial Health: Key Insights for Investors

Cadence Bank (CADE) How It Makes Money

Cadence Bank primarily generates revenue through traditional banking activities, such as taking deposits and originating loans, as well as through fees from various financial services it offers.

Cadence Bank's Revenue Breakdown

Cadence Bank's Business Economics

Cadence Bank's profitability is influenced by several key economic factors and strategies:

• Interest Rate Spread: The bank profits from the difference between the interest it earns on loans and the interest it pays on deposits. Favorable interest rate environments, where lending rates are higher than deposit rates, enhance profitability.
• Loan Portfolio Composition: The types of loans Cadence Bank offers (e.g., commercial, residential, consumer) and their associated risk levels affect the overall yield and potential for losses.
• Fee Income: Revenue from services like wealth management, investment banking, and service charges on deposit accounts supplements interest income and provides diversification.
• Efficiency Ratio: Managing operational costs relative to revenue is crucial. A lower efficiency ratio indicates better cost management and improved profitability.
• Credit Quality: Maintaining a high-quality loan portfolio minimizes losses from defaults, directly impacting the bottom line.

More insights about the bank can be found here: Mission Statement, Vision, & Core Values of Cadence Bank (CADE).

Cadence Bank's Financial Performance

Analyzing Cadence Bank's financial performance involves several key metrics:

• Net Interest Margin (NIM): This measures the difference between the interest income generated from loans and investments and the interest paid on deposits, relative to the bank’s assets. A higher NIM indicates greater profitability from lending activities. In 2024, analysts will be watching how NIM is affected by any shifts in interest rate policy.
• Return on Assets (ROA): ROA indicates how efficiently the bank is using its assets to generate earnings. A higher ROA signifies better performance. For example, if Cadence Bank has an ROA of 1.2%, it means that for every $100 of assets, it generates $1.20 in profit.
• Return on Equity (ROE): ROE measures the return generated on shareholders' equity. It reflects the profitability of the bank from the perspective of its investors. An ROE of 10% would mean that for every $100 of equity, the bank earns $10 in profit.
• Efficiency Ratio: This ratio, calculated by dividing operating expenses by revenue, indicates how well the bank controls its costs. A lower efficiency ratio is generally better, as it implies the bank is managing its expenses effectively.
• Non-Performing Assets (NPAs): Monitoring the level of NPAs—loans and other assets that are in default or close to default—is crucial for assessing asset quality and potential credit losses.
• Capital Adequacy Ratios: Ratios like the Tier 1 capital ratio and the total capital ratio measure the bank's ability to absorb losses and remain solvent. Regulatory requirements mandate minimum capital levels to ensure financial stability.

Cadence Bank (CADE) Market Position & Future Outlook

Cadence Bank operates in a competitive financial services landscape, striving to enhance its market position through strategic initiatives and a focus on customer relationships. The bank's future outlook is shaped by its ability to capitalize on market opportunities while effectively managing potential risks.

Competitive Landscape

Opportunities & Challenges

Industry Position

Cadence Bank holds a significant position as a regional bank in the Southeastern United States. Key aspects of its industry standing include:

• Regional Focus: Cadence Bank primarily operates in the Southeast, allowing it to tailor its services to the specific needs of local markets.
• Customer Relationships: The bank emphasizes building strong, long-term relationships with its customers, differentiating itself from larger, more impersonal institutions.
• Community Involvement: Cadence Bank actively participates in community development initiatives, enhancing its reputation and fostering customer loyalty.

For insights into the company's core values and strategic vision, explore: Mission Statement, Vision, & Core Values of Cadence Bank (CADE).