Regional banking company Cadence Bank (NYSE: CADE) beat Wall Street’s revenue expectations in Q4 CY2025, with sales up 17.1% year on year to $528.4 million. Its non-GAAP profit of $0.85 per share was 6.4% above analysts’ consensus estimates.
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Cadence Bank (CADE) Q4 CY2025 Highlights:
- Net Interest Income: $426.9 million vs analyst estimates of $429.3 million (17.1% year-on-year growth, 0.5% miss)
- Net Interest Margin: 3.6% vs analyst estimates of 3.5% (5.7 basis point beat)
- Revenue: $528.4 million vs analyst estimates of $524.7 million (17.1% year-on-year growth, 0.7% beat)
- Efficiency Ratio: 58.8% vs analyst estimates of 56.5% (235.3 basis point miss)
- Adjusted EPS: $0.85 vs analyst estimates of $0.80 (6.4% beat)
- Tangible Book Value per Share: $23.69 vs analyst estimates of $23.40 (10% year-on-year growth, 1.2% beat)
- Market Capitalization: $8.66 billion
Company Overview
With roots dating back to 1885 and a strategic focus on middle-market commercial lending, Cadence Bancorporation (NYSE: CADE) is a bank holding company that provides commercial banking, retail banking, and wealth management services to middle-market businesses and individuals.
Sales Growth
Two primary revenue streams drive bank earnings. While net interest income, which is earned by charging higher rates on loans than paid on deposits, forms the foundation, fee-based services across banking, credit, wealth management, and trading operations provide additional income. Thankfully, Cadence Bank’s 13.7% annualized revenue growth over the last five years was solid. Its growth beat the average banking company and shows its offerings resonate with customers.
Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. Cadence Bank’s recent performance shows its demand has slowed as its annualized revenue growth of 8.3% over the last two years was below its five-year trend. 
Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, Cadence Bank reported year-on-year revenue growth of 17.1%, and its $528.4 million of revenue exceeded Wall Street’s estimates by 0.7%.
Net interest income made up 76.4% of the company’s total revenue during the last five years, meaning lending operations are Cadence Bank’s largest source of revenue.
While banks generate revenue from multiple sources, investors view net interest income as the cornerstone - its predictable, recurring characteristics stand in sharp contrast to the volatility of non-interest income.
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Tangible Book Value Per Share (TBVPS)
Banks operate as balance sheet businesses, with profits generated through borrowing and lending activities. Valuations reflect this reality, emphasizing balance sheet strength and long-term book value compounding ability.
When analyzing banks, tangible book value per share (TBVPS) takes precedence over many other metrics. This measure isolates genuine per-share value by removing intangible assets of debatable liquidation worth. Traditional metrics like EPS are helpful but face distortion from M&A activity and loan loss accounting rules.
Cadence Bank’s TBVPS grew at an impressive 7.1% annual clip over the last five years. TBVPS growth has also accelerated recently, growing by 10.7% annually over the last two years from $19.32 to $23.69 per share.
Over the next 12 months, Consensus estimates call for Cadence Bank’s TBVPS to grow by 9.1% to $25.86, paltry growth rate.
Key Takeaways from Cadence Bank’s Q4 Results
It was good to see Cadence Bank narrowly top analysts’ tangible book value per share expectations this quarter. We were also happy its revenue narrowly outperformed Wall Street’s estimates. On the other hand, its net interest income slightly missed and efficiency ratio also fell short of expectations. Zooming out, we think this was a mixed quarter. The market seemed to be hoping for more, and the stock traded down 3.9% to $44.63 immediately after reporting.
Should you buy the stock or not? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here (it’s free).
