How Do Rising Net Interest Income and Steady Dividends Shape Cadence Bank's (CADE) Capital Return Approach?
- Cadence Bank reported its second quarter earnings, noting year-over-year growth in net interest income to US$378.14 million, steady net income, and declared quarterly cash dividends for both common and preferred shareholders, with the next payouts scheduled for late August and early October 2025.
- The bank’s recent financial updates highlighted stable net charge-off trends and no activity under its announced share buyback program, coupled with continued capital returns to shareholders.
- We’ll explore how Cadence Bank’s higher net interest income and consistent dividend declarations influence its outlook for earnings growth and shareholder returns.
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Cadence Bank Investment Narrative Recap
To be a Cadence Bank shareholder, one should believe in the continued loan and deposit growth across high-growth Sunbelt markets and the potential for earnings expansion, driven by robust net interest income and consistent dividends. The recent Q2 news, highlighting stronger year-over-year net interest income and steady net charge-offs, does not materially shift the immediate catalysts or address the biggest current risk: increased geographic concentration in Texas.
Among the latest announcements, the declaration of quarterly cash dividends for both common and preferred shares stands out. These dividend commitments reinforce the bank’s ongoing capital return to shareholders and reflect its earnings consistency, connecting directly with the short-term catalyst of stable revenue generation from core operations.
However, despite solid financial results, investors should be aware of the ongoing risk tied to Cadence Bank’s concentrated exposure to the Texas market and how ...
Read the full narrative on Cadence Bank (it's free!)
Cadence Bank's narrative projects $2.5 billion in revenue and $807.6 million in earnings by 2028. This requires 12.5% yearly revenue growth and a $282.4 million earnings increase from $525.2 million today.
Uncover how Cadence Bank's forecasts yield a $40.36 fair value, a 16% upside to its current price.
Exploring Other Perspectives
Simply Wall St Community members provided 2 fair value estimates for Cadence Bank shares, ranging from US$40.36 to US$72.33. While opinions vary widely, many are watching for potential impacts from ongoing regional concentration risk when assessing future performance.
Explore 2 other fair value estimates on Cadence Bank - why the stock might be worth over 2x more than the current price!
Build Your Own Cadence Bank Narrative
Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.
- A great starting point for your Cadence Bank research is our analysis highlighting 4 key rewards that could impact your investment decision.
- Our free Cadence Bank research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Cadence Bank's overall financial health at a glance.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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