PR Newswire | Jan 25, 2022 04:30PM EST

Announces Increase in Quarterly Common Dividend

01/25 15:30 CST

Cadence Bank Announces Fourth Quarter 2021 and Annual Financial Results; Announces Increase in Quarterly Common Dividend TUPELO, Miss. and HOUSTON, Jan. 25, 2022

TUPELO, Miss. and HOUSTON, Jan. 25, 2022 /PRNewswire/ -- Cadence Bank (NYSE: CADE) (the Company), formerly known as BancorpSouth Bank, today announced financial results for the quarter and year ended December 31, 2021.

Annual highlights for 2021 included:

* Achieved net income available to common shareholders of $185.7 million, or $1.54 per diluted common share, and adjusted net income available to common shareholders - excluding mortgage servicing rights ("MSR") - of $340.9 million, or $2.83 per diluted common share. * Completed merger with legacy Cadence Bancorporation, the parent company of Cadence Bank N.A., which closed effective October 29, 2021, and created an approximately $48 billion institution that is the 6th largest bank headquartered in the Company's nine-state footprint. * Changed name from "BancorpSouth Bank" to "Cadence Bank" and changed stock ticker symbol from "BXS" to "CADE" effective October 29, 2021, in conjunction with the Cadence merger. * Completed two mergers with National United Bancshares, Inc., the parent company of National United, and FNS Bancshares, Inc., the parent company of FNB Bank, each effective May 1, 2021, which added approximately $1.6 billion in total assets to the Company. * Continued strong credit quality metrics; reported net recoveries for the year of $5.3 million, or 0.03 percent of average loans and leases, while total non-performing loan and leases declined to 0.57 percent of net loans and leases. * Reported record annual adjusted pre-tax pre-provision net revenue ("PPNR") of $442.8 million, or 1.48 percent of average assets; represents an increase of 10.6 percent from $400.5 million, or 1.76 percent of average assets, for 2020. * Repurchased 6,000,000 shares of outstanding common stock at a weighted average price of $30.09 per share.

Highlights for the fourth quarter of 2021 included:

* Reported quarterly net loss available to common shareholders of $37.0 million, or $0.22 per diluted common share, and adjusted net income available to common shareholders - excluding MSR - of $102.1 million, or $0.62 per diluted common share. * Generated $133.8 million in adjusted PPNR, or 1.29 percent of average assets on an annualized basis. * Combined company generated net organic loan growth of approximately $400 million for the quarter, or 6 percent on an annualized basis. * Recorded initial provisional purchase accounting adjustments related to the legacy Cadence merger including goodwill of $451.7 million and day one provision for credit losses of $132.1 million; reported merger and incremental merger-related expenses of approximately $49.5 million for the fourth quarter. * Repurchased 4,257,526 shares of outstanding common stock at a weighted average price of $30.66 per share.

"The closing of our merger with legacy Cadence Bancorporation certainly highlights the completion of another successful year for our Company," remarked Dan Rollins, Chairman and Chief Executive Officer of the Company. "We are very pleased to have been able to complete this transaction prior to the end of the year, particularly in light of the current regulatory environment. Our operational integration teams are working diligently toward our core system conversion later in 2022. While elevated merger expenses and other purchase accounting related items negatively impacted our earnings, we continue to be pleased with our core operating performance. Credit quality is certainly a positive story. We reported a meaningful decline in our non performing asset levels relative to the size of the balance sheet and also had net recoveries of $5.3 million for the year."

Rollins continued, "From a capital management perspective, we completed the repurchase of the full 6 million shares authorized under the 2021 share repurchase program and our board recently approved an additional 10 million common stock share repurchase authorization for 2022. We also completed our provisional purchase accounting marks during the fourth quarter of 2021. The improvement in the loan mark relative to our initial estimate at announcement further validates the economic stability as well as the legacy Cadence team's efforts in working through any potential problem credits."

Paul Murphy, Executive Vice Chairman, added "As we look specifically at our fourth quarter performance, the ability of our relationship managers to produce approximately $400 million in net organic loan growth in the same quarter as the merger closing is a noteworthy accomplishment. This success is a testament to the efforts of both our front-line teammates as well as our credit administration and other support functions, and is also reflective of the positive economic momentum across our footprint."

At its regular quarterly meeting today, the Board of Directors of the Company declared quarterly cash dividends of $0.22 per common share of stock and $0.34375 per share of Series A Preferred Stock. The common stock dividend represents an increase of $0.02, or 10.0 percent, per share compared to the previous quarterly dividend of $0.20 per common share and is payable on April 1, 2022 to shareholders of record at the close of business on March 15, 2022. The preferred stock dividend is payable on February 22, 2022 to shareholders of record at the close of business on February 4, 2022.

Earnings Summary

The Company reported net income available to common shareholders of $185.7 million, or $1.54 per diluted common share, for the year ended December 31, 2021 compared with $218.6 million, or $2.12 per diluted common share, for the year ended December 31, 2020. The Company reported adjusted net income available to common shareholders - excluding MSR - of $340.9 million, or $2.83 per diluted common share, for the year ended December 31, 2021 compared with $237.3 million, or $2.30 per diluted common share, for the year ended December 31, 2020. Given the merger date of October 29, 2021, the fourth quarter results do not represent a full quarter of comparable combined earnings. Additionally, the increases in the balance sheet and income statement during the quarter are largely attributable to the merger.

Additionally, due to the acquired portfolio day one loan provision of $132.1 million upon merger, the Company reported a net loss available to common shareholders of $37.0 million, or $0.22 per diluted common share, for the fourth quarter of 2021, compared with net income available to common shareholders of $66.4 million, or $0.65 per diluted common share, for the fourth quarter of 2020 and net income available to common shareholders of $70.4 million, or $0.65 per diluted common share, for the third quarter of 2021. The Company reported adjusted net income available to common shareholders - excluding MSR - of $102.1 million, or $0.62 per diluted common share, for the fourth quarter of 2021, compared with $70.8 million, or $0.69 per diluted common share, for the fourth quarter of 2020 and $73.3 million, or $0.68 per diluted common share, for the third quarter of 2021.

The Company reported adjusted PPNR of $442.8 million, or 1.48 percent of average assets, for the year ended December 31, 2021 compared with $400.5 million, or 1.76 percent of average assets, for the year ended December 31, 2020. Additionally, the Company reported adjusted PPNR of $133.8 million, or 1.29 percent of average assets on an annualized basis, for the fourth quarter of 2021 compared to $94.4 million, or 1.59 percent of average assets on an annualized basis, for the fourth quarter of 2020 and $90.1 million, or 1.29 percent of average assets on an annualized basis, for the third quarter of 2021.

Net Interest Revenue

Net interest revenue was $271.2 million for the fourth quarter of 2021, compared to $176.9 million for the fourth quarter of 2020 and $181.5 million for the third quarter of 2021. The fully taxable equivalent net interest margin was 2.90 percent for the fourth quarter of 2021, compared with 3.29 percent for the fourth quarter of 2020 and 2.86 percent for the third quarter of 2021. Yields on net loans, loans held for sale, and leases were 4.34 percent for the fourth quarter of 2021, compared with 4.55 percent for the fourth quarter of 2020 and 4.46 percent for the third quarter of 2021, while yields on total interest earning assets were 3.11 percent for the fourth quarter of 2021, compared with 3.70 percent for the fourth quarter of 2020 and 3.15 percent for the third quarter of 2021. The average cost of deposits was 0.17 percent for the fourth quarter of 2021, compared with 0.38 percent for the fourth quarter of 2020 and 0.24 percent for the third quarter of 2021.

Net interest income for the fourth quarter of 2021 included $16.4 million in accretion income related to acquired loans and leases. This accretion income added approximately 19 basis points to the net interest margin and 28 basis points to the yield on loans and leases for the fourth quarter of 2021. This compares to net accretion income of $2.3 million for the fourth quarter of 2020 and net accretion income of $3.2 million for the third quarter of 2021.

Balance Sheet Activity

Loans and leases, net of unearned income, increased $11.9 billion to $26.9 billion during the fourth quarter of 2021 while deposits and customer repos increased $16.3 billion to $40.5 billion. Legacy Cadence loans and leases, net of unearned income, totaled $11.5 billion at October 29, 2021 while deposits and customer repos totaled $16.4 billion. On December 3, 2021, the company completed the previously announced divestiture of seven bank branches with approximately $40 million in loans and approximately $417 million in deposits. Excluding the impact of acquired and divested balances, net organic loan growth for the combined company for the fourth quarter totaled approximately $400 million, or 6 percent annualized, while deposit and customer repo balances declined approximately $470 million on an organic basis. The decline in deposit account balances in the fourth quarter was driven primarily by routine volatility in large municipal deposit accounts.

Provision for Credit Losses and Allowance for Credit Losses

Earnings for the fourth quarter of 2021 reflected a provision for credit losses of $133.6 million, compared with $5.8 million for the fourth quarter of 2020 and a negative provision for credit losses of $7.0 million for the third quarter of 2021. The provision for the fourth quarter of 2021 includes $132.1 million associated with day one accounting provision required for loans and unfunded commitments acquired during the quarter from the Cadence merger. Net recoveries for the fourth quarter of 2021 were $4.8 million, or 0.08 percent of net loans and leases on an annualized basis, compared with net charge-offs of $11.2 million for the fourth quarter of 2020 and net recoveries of $2.1 million for the third quarter of 2021. The allowance for credit losses was $446.4 million, or 1.66 percent of net loans and leases, at December 31, 2021, compared with $244.4 million, or 1.63 percent of net loans and leases, at December 31, 2020, and $260.3 million, or 1.74 percent of net loans and leases, at September 30, 2021.

Total non-performing assets were $186.8 million, or 0.39 percent of total assets, at December 31, 2021, compared with $132.6 million, or 0.55 percent of total assets, at December 31, 2020, and $100.3 million, or 0.36 percent of total assets, at September 30, 2021. Other real estate owned and other repossessed assets was $33.0 million at December 31, 2021, compared with $11.4 million at December 31, 2020 and $16.5 million at September 30, 2021.

Noninterest Revenue

Noninterest revenue was $103.9 million for the fourth quarter of 2021, compared with $78.8 million for the fourth quarter of 2020 and $84.4 million for the third quarter of 2021. These results include a positive mortgage servicing rights (MSR) valuation adjustment of $2.6 million for the fourth quarter of 2021, compared with a positive MSR valuation adjustment of $0.2 million for the fourth quarter of 2020 and a positive MSR valuation adjustment of $2.0 million for the third quarter of 2021. Valuation adjustments in the MSR asset are driven primarily by fluctuations in interest rates period over period.

Insurance commission revenue was $32.6 million for the fourth quarter of 2021, compared with $29.8 million for the fourth quarter of 2020 and $35.8 million for the third quarter of 2021. While fourth quarter commission revenue is adversely impacted by policy renewal seasonality, commission revenue continues to benefit from a firm premium rate market. Mortgage production and servicing revenue was $8.0 million for the fourth quarter of 2021, compared with $19.9 million for the fourth quarter of 2020 and $11.0 million for the third quarter of 2021. Mortgage origination volume for the fourth quarter of 2021 was $817.7 million, compared with $845.9 million for the fourth quarter of 2020 and $788.9 million for the third quarter of 2021. Mortgage revenue for the fourth quarter of 2021 was adversely impacted by seasonality in the mortgage pipeline as well as declines in refinance activity associated with rising interest rates. Wealth management revenue was $16.4 million for the fourth quarter of 2021, compared with $6.8 million for the fourth quarter of 2020 and $7.1 million for the third quarter of 2021. Wealth management revenue for the fourth quarter of 2021 includes additional revenue associated with legacy Cadence trust services and Linscomb & Williams.

Credit card, debit card and merchant fee revenue was $12.8 million for the fourth quarter of 2021, compared with $10.1 million for the fourth quarter of 2020 and $11.4 million for the third quarter of 2021. Deposit service charge revenue was $16.3 million for the fourth quarter of 2021, compared with $9.7 million for the fourth quarter of 2020 and $10.3 million for the third quarter of 2021. Other noninterest revenue was $15.5 million for the fourth quarter of 2021, compared with $2.3 million for the fourth quarter of 2020 and $6.9 million for the third quarter of 2021.

Noninterest Expense

Noninterest expense for the fourth quarter of 2021 was $289.2 million, compared with $167.1 million for the fourth quarter of 2020 and $179.9 million for the third quarter of 2021. Salaries and employee benefits expense was $149.6 million for the fourth quarter of 2021, compared with $97.2 million for the fourth quarter of 2020 and $113.0 million for the third quarter of 2021. Occupancy and equipment expense was $26.9 million for the fourth quarter of 2021, compared with $17.8 million for the fourth quarter of 2020 and $19.0 million for the third quarter of 2021. Data processing and software expense was $24.8 million for the fourth quarter of 2021, compared with $15.3 million for the fourth quarter of 2020 and $16.8 million for the third quarter of 2021. Other noninterest expense was $39.1 million for the fourth quarter of 2021, compared with $29.1 million for the fourth quarter of 2020 and $23.0 million for the third quarter of 2021.

Adjusted noninterest expense for the fourth quarter of 2021 was $239.1 million, compared with $161.1 million for the fourth quarter of 2020 and $174.0 million for the third quarter of 2021. Adjusted noninterest expense excludes merger expense included as a separate line item on the income statement as well as incremental merger related expenses that are included in the respective expense categories. Merger expenses represent costs to complete the merger with no future benefit, while incremental merger related expenses represent costs to complete the merger for which the entity receives a future benefit. Merger expense was $44.8 million for the fourth quarter of 2021, compared with $0.2 million for the fourth quarter of 2020 and $3.4 million for the third quarter of 2021. Merger expense for the fourth quarter of 2021 was comprised primarily of advisor fees, legal fees, and compensation related items. Incremental merger related expenses for the fourth quarter of 2021 totaled $4.6 million that included primarily employee retention expense. Adjusted noninterest expense for the fourth quarter of 2021 also excluded a charge of $0.7 million in accordance with ASC 715 "Compensation - Retirement Benefits" to reflect the settlement accounting impact of elevated lump sum retirement pension payouts in 2021. Similar charges were recorded for the fourth quarter of 2020 and third quarter of 2021 of $5.8 million and $2.4 million, respectively.

Capital Management

The Company's ratio of shareholders' equity to assets was 11.01 percent at December 31, 2021, compared with 11.72 percent at December 31, 2020 and 10.77 percent at September 30, 2021. The ratio of tangible common shareholders' equity to tangible assets was 7.54 percent at December 31, 2021, compared with 7.54 percent at December 31, 2020 and 6.82 percent at September 30, 2021.

During the fourth quarter of 2021, the Company repurchased 4,257,526 shares of its common stock at a weighted average price of $30.66 pursuant to its share repurchase program, which completed the repurchase of the full 6 million shares authorized under the program for 2021. On December 8, 2021, the Company announced a new share repurchase program, pursuant to which the Board of Directors has authorized the repurchase of up to an aggregate of 10 million shares of Company common stock, which commenced January 3, 2022 and will expire December 30, 2022.

Estimated regulatory capital ratios at December 31, 2021 included Common Equity Tier 1 capital of 10.81 percent, Tier 1 capital of 11.29 percent, Total risk-based capital of 13.44 percent, and Tier 1 leverage capital of 9.90 percent.

Summary

Rollins added, "As we move into the New Year, excitement and optimism among our teammates is at an all-time high. Today's public unveiling of our new logo is a significant milestone on our journey of creating the new Cadence Bank. Our new visual identity mirrors the strategic union of our companies and reflects how we are working together to best serve our customers and communities, delivering a comprehensive and balanced set of financial solutions. This new logo is the first component of our new brand, and we'll be unveiling other parts of our entire brand identity in the coming months. For now, we can look to this new logo as another way for us to unite together in our shared commitment to the new Cadence Bank."

Rollins concluded, "Our bankers are calling on customers and winning new business, which is clearly reflected in our fourth quarter organic growth totals. Our insurance team had a record year in 2021 as they continue to capitalize on a firm insurance premium market. Other teams, including mortgage, wealth management, and treasury management, are working diligently to grow revenue and take advantage of cross selling opportunities created by a much larger combined customer base. Our back office and operational support teams continue to focus on the integration process as well as helping identify and realize the cost savings associated with the transaction. Our board and management team are excited about the future of the new Cadence Bank and committed to continuing to drive improved operating performance and shareholder value."

MERGER TRANSACTIONS

Cadence Bancorporation (NYSE: CADE)

On October 29, 2021, the Company completed the merger with Cadence Bancorporation, the parent company of Cadence Bank N.A., (collectively referred to as legacy Cadence), pursuant to which legacy Cadence was merged with and into the Company (the Cadence Merger). Legacy Cadence operated 99 full-service banking offices in the southeast. As of October 29, 2021, legacy Cadence reported total assets of $18.8 billion, total loans of $11.6 billion and total deposits of $16.3 billion. Under the terms of the definitive merger agreement, each legacy Cadence shareholder received 0.70 shares of the Company's common stock in exchange for each share of Cadence common stock they held. In addition, legacy Cadence paid a one-time special dividend of $1.25 per share on October 28, 2021. In connection with the closing, the Company changed its name from "BancorpSouth Bank" to "Cadence Bank" and also changed its NYSE ticker symbol from "BXS" to "CADE". For more information regarding the Cadence Merger, see our Current Report on Form 8-K that was filed with the Federal Deposit Insurance Corporation (FDIC) on October 29, 2021. The purchase accounting for this transaction is considered provisional as management continues to identify and assess information regarding the nature of the acquired assets and liabilities and reviews the associated valuation assumptions and methodologies.

FNS Bancshares, Inc.

On May 1, 2021, the Company completed the merger with FNS Bancshares, Inc., the parent company of FNB Bank, (collectively referred to as FNS), pursuant to which FNS was merged with and into the Company. FNS operated 17 full-service banking offices in Alabama, Georgia and Tennessee. The merger expanded the Company's presence in Jackson, DeKalb and Marshall counties in Alabama and the Chattanooga, Tennessee-Georgia and Nashville-Davidson-Murfreesboro-Franklin, Tennessee metropolitan statistical areas. As of May 1, 2021, FNS reported total assets of $826.6 million, total loans of $464.7 million and total deposits of $720.7 million. Under the terms of the definitive merger agreement, the Company issued approximately 2,975,000 shares of the Company's common stock plus $18.0 million in cash for all outstanding shares of FNS. For more information regarding this transaction, see our Current Report on Form 8-K that was filed with the FDIC on May 3, 2021. The purchase accounting for this transaction is considered provisional as management continues to identify and assess information regarding the nature of the acquired assets and liabilities and reviews the associated valuation assumptions and methodologies.

National United Bancshares, Inc.

On May 1, 2021, the Company completed the merger with National United Bancshares, Inc., the parent company of National United, (collectively referred to as National United), pursuant to which National United was merged with and into the Company. National United operated 6 full-service banking offices in the Killeen-Temple, Texas; Waco, Texas; and Austin-Round Rock-Georgetown, Texas metropolitan statistical areas. As of May 1, 2021, National United reported total assets of $817.3 million, total loans of $434.6 million and total deposits of $742.9 million. Under the terms of the definitive merger agreement, the Company issued approximately 3,110,000 shares of the Company's common stock plus $33.25 million in cash for all outstanding shares of National United. For more information regarding this transaction, see our Current Report on Form 8-K that was filed with the FDIC on May 3, 2021. The purchase accounting for this transaction is considered provisional as management continues to identify and assess information regarding the nature of the acquired assets and liabilities and reviews the associated valuation assumptions and methodologies.

Non-GAAP Measures and Ratios

This news release presents certain financial measures and ratios that are not calculated in accordance with U.S. generally accepted accounting principles (GAAP). A discussion regarding these non-GAAP measures and ratios, including reconciliations of non-GAAP measures to the most directly comparable GAAP measures and definitions for non-GAAP ratios, appears under the caption "Reconciliation of Non-GAAP Measures and Other Non-GAAP Ratio Definitions" beginning on page 25 of this news release.

Conference Call and Webcast

The Company will conduct a conference call to discuss its fourth quarter 2021 financial results on January 26, 2022, at 10:00 a.m. (Central Time). This conference call will be an interactive session between management and analysts. Interested parties may listen to this live conference call via Internet webcast by accessing http://ir.cadencebank.com/events. The webcast will also be available in archived format at the same address.

About Cadence Bank

Cadence Bank (NYSE: CADE) is a leading regional banking franchise with approximately $48 billion in assets and more than 400 branch locations across the South, Midwest and Texas. Cadence provides consumers, businesses and corporations with a full range of innovative banking and financial solutions. Services and products include consumer banking, consumer loans, mortgages, home equity lines and loans, credit cards, commercial and business banking, treasury management, specialized lending, asset-based lending, commercial real estate, equipment financing, correspondent banking, SBA lending, foreign exchange, wealth management, investment and trust services, financial planning, retirement plan management, and personal and business insurance. Cadence is committed to a culture of respect, diversity and inclusion in both its workplace and communities. Cadence Bank, Member FDIC. Equal Housing Lender.

Forward-Looking Statements

Certain statements made in this news release are not statements of historical fact and constitute "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and are subject to the safe harbor created thereby under the Private Securities Litigation Reform Act of 1995. These statements are often, but not always, made through the use of words or phrases such as "anticipate," "aspire," "assume," "believe," "budget," "contemplate," "continue," "could," "estimate," "expect," "forecast," "foresee," "goal," "hope," "indicate," "intend," "may," "might," "outlook," "plan," "project," "projection," "predict," "prospect," "potential," "roadmap," "seek," "should," "target," "will," and "would," or the negative versions of those words or other comparable words of a future or forward-looking nature. These forward-looking statements may include, without limitation, discussions regarding general economic, interest rate, real estate market, competitive, employment, and credit market conditions, including the economic impact of the COVID-19 pandemic (including any variant of the COVID-19 virus) on the Company's business; the Company's assets; business; cash flows; financial condition; liquidity; prospects; results of operations; deposit and customer repo growth; interest and fee-based revenue; capital resources; capital metrics; efficiency ratio; valuation of mortgage servicing rights; net income; net interest revenue; non-interest revenue; net interest margin; interest expense; non-interest expense; earnings per share; interest rate sensitivity; interest rate risk; balance sheet and liquidity management; off-balance sheet arrangements; fair value determinations; asset quality; credit quality; credit losses; provision and allowance for credit losses, impairments, charge-offs, recoveries and changes in loan volumes; investment securities portfolio yields and values; ability to manage the impact of pandemics, natural disasters and other force majeure events; adoption and use of critical accounting policies; adoption and implementation of new accounting standards and their effect on the Company's financial results and the Company's financial reporting; utilization of non-GAAP financial metrics; declaration and payment of dividends; ability to pay dividends or coupons on the Company's 5.5% Series A Non-Cumulative Perpetual Preferred Stock, par value $0.01 per share, or the 4.125% Fixed-to-Floating Rate Subordinated Notes due November 20, 2029; mortgage origination volume; mortgage servicing and production revenue; insurance commission revenue; implementation and execution of cost savings initiatives; ability to successfully litigate, resolve or otherwise dispense with threatened, pending, ongoing and future litigation and governmental, administrative and investigatory matters; ability to successfully complete pending or future acquisitions, dispositions and other strategic growth opportunities and initiatives; ability to successfully obtain regulatory approval for acquisitions and other growth initiatives; ability to successfully integrate and manage acquisitions; opportunities and efforts to grow market share; reputation; ability to compete with other financial institutions; ability to recruit and retain key employees and personnel; access to capital markets; availability of capital; investments in the securities of other financial institutions; and ability to operate the Company's regulatory compliance programs in accordance with applicable law.

Forward-looking statements are based upon management's expectations as well as certain assumptions and estimates made by, and information available to, the Company's management at the time such statements were made. Forward-looking statements are not historical facts, are not guarantees of future results or performance and are subject to certain known and unknown risks, uncertainties and other factors that are beyond the Company's control and that may cause actual results to differ materially from those expressed in, or implied by, such forward-looking statements. These risks, uncertainties and other factors include, without limitation, potential delays or other problems in implementing and executing the Company's growth, expansion and acquisition strategies, including delays in obtaining regulatory or other necessary approvals or the failure to realize any anticipated benefits or synergies from any acquisitions or growth strategies; the risks of changes in interest rates and their effects on the level and composition of deposits, loan demand and the values of loan collateral, securities and interest sensitive assets and liabilities; the impact of inflation on consumers; the failure of assumptions underlying the establishment of reserves for possible credit losses, fair value for loans and other real estate owned; changes in real estate values; the availability of and access to capital; possible downgrades in the Company's credit ratings or outlook which could increase the costs or availability of funding from capital markets; the ability to attract new or retain existing deposits or to retain or grow loans; the ability to grow additional interest and fee income or to control noninterest expense; the potential impact of the proposed phase-out of the London Interbank Offered Rate ("LIBOR") or other changes involving LIBOR; competitive factors and pricing pressures, including their effect on the Company's net interest margin; general economic, unemployment, credit market and real estate market conditions, and the effect of such conditions on the creditworthiness of borrowers, collateral values, the value of investment securities and asset recovery values; changes in legal, financial and/or regulatory requirements; recently enacted and potential legislation and regulatory actions and the costs and expenses to comply with new and/or existing legislation and regulatory actions, including those actions in response to the COVID-19 pandemic such as the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act"), the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (the "Economic Aid Act") and any related rules and regulations; changes in U.S. Government monetary and fiscal policy; FDIC special assessments or changes to regular assessments; the enforcement efforts of federal and state bank regulators; possible adverse rulings, judgments, settlements and other outcomes of pending, ongoing and future litigation and governmental, administrative and investigatory matters (including litigation or actions arising from the Company's participation in and administration of programs related to the COVID-19 pandemic (including, among other things, the PPP loan programs authorized by the CARES Act and the Economic Aid Act); the ability to keep pace with technological changes, including changes regarding maintaining cybersecurity; the impact of failure in, or breach of, the Company's operational or security systems or infrastructure, or those of third parties with whom the Company does business, including as a result of cyber-attacks or an increase in the incidence or severity of fraud, illegal payments, security breaches or other illegal acts impacting the Company or the Company's customers; natural disasters or acts of war or terrorism; the adverse effects of the ongoing global COVID-19 pandemic, including the magnitude and duration of the pandemic, and the effect of actions taken to mitigate the impact of the COVID-19 pandemic on the Company, the Company's employees, the Company's customers, the global economy and the financial markets; international or political instability; impairment of the Company's goodwill or other intangible assets; losses of key employees and personnel; adoption of new accounting standards, or changes in existing standards; the outcome of any legal proceedings that may be instituted against the Company or Cadence in respect of the Cadence Merger; the ability of the Company and Cadence to meet expectations regarding the timing, completion and accounting and tax treatments of the Cadence Merger; the risk that any announcements relating to the Cadence Merger could have adverse effects on the market price of the capital stock of the combined company; the possibility that the anticipated benefits of the Cadence Merger will not be realized when expected or at all, including as a result of the impact of, or problems arising from, the integration of the two companies or as a result of the strength of the economy and competitive factors in the areas where the combined company does business? the possibility that the Cadence Merger may be more expensive to complete than anticipated, including as a result of unexpected factors or events? diversion of management's attention from ongoing business operations and opportunities? the possibility that the parties may be unable to achieve expected synergies and operating efficiencies in the Cadence Merger within the expected timeframes or at all and to successfully integrate Cadence's operations and those of the Company; such integration may be more difficult, time consuming or costly than expected; revenues following the Cadence Merger may be lower than expected; potential adverse reactions or changes to business or employee relationships, including those resulting from the completion of the Cadence Merger? the combined company's success in executing its business plans and strategies and managing the risks involved in the foregoing; the dilution caused by the Company's issuance of additional shares of its capital stock in connection with the Cadence Merger and other factors as detailed from time to time in the Company's press and news releases, periodic and current reports and other filings the Company files with the FDIC.

The foregoing factors should not be construed as exhaustive and should be read in conjunction with those factors that are set forth from time to time in the Company's periodic and current reports filed with the FDIC, including those factors included in the Company's Annual Report on Form 10-K for the year ended December 31, 2020 under the heading "Item 1A. Risk Factors," in the Company's Quarterly Reports on Form 10-Q under the heading "Part II-Item 1A. Risk Factors" and in the Company's Current Reports on Form 8-K.

Although the Company believes that the expectations reflected in these forward-looking statements are reasonable as of the date of this news release, if one or more events related to these or other risks or uncertainties materialize, or if the Company's underlying assumptions prove to be incorrect, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. Accordingly, undue reliance should not be placed on any forward-looking statements. The forward-looking statements speak only as of the date of this news release, and the Company does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by applicable law. New risks and uncertainties may emerge from time to time, and it is not possible for the Company to predict their occurrence or how they will affect the Company. All written or oral forward-looking statements attributable to the Company are expressly qualified in their entirety by this section.

Cadence Bank

Selected Financial Information

(Dollars in thousands, except per share data)

(Unaudited)

Quarter Ended Year Ended

Dec-21 Sep-21 Jun-21 Mar-21 Dec-20 Dec-21 Dec-20

Earnings Summary:

Interest revenue $ 290,626 $ 199,511 $ 199,129 $ 192,783 $ 199,287 $ 882,049 $ 799,493

Interest expense 19,414 17,967 18,947 19,994 22,351 76,322 108,526

Net interest revenue 271,212 181,544 180,182 172,789 176,936 805,727 690,967

Provision (release) for credit losses 133,562 (7,000) 11,500 - 5,794 138,062 89,044

Net interest revenue, after provision

for credit losses 137,650 188,544 168,682 172,789 171,142 667,665 601,923

Noninterest revenue 103,854 84,420 101,943 87,936 78,826 378,153 336,504

Noninterest expense 289,194 179,889 173,984 155,823 167,117 798,890 650,882

(Loss) Income before income taxes (47,690) 93,075 96,641 104,902 82,851 246,928 287,545

Income tax expense (benefit) (13,033) 20,350 21,102 23,347 14,046 51,766 59,494

Net (loss) income $ (34,657) $ 72,725 $ 75,539 $ 81,555 $ 68,805 $ 195,162 $ 228,051

Less: Preferred dividends 2,372 2,372 2,372 2,372 2,372 9,488 9,488

Net (loss) income available to common shareholders $ (37,029) $ 70,353 $ 73,167 $ 79,183 $ 66,433 $ 185,674 $ 218,563

Balance Sheet - Period End Balances

Total assets $ 47,684,751 $ 28,060,496 $ 27,612,365 $ 25,802,497 $ 24,081,194 $ 47,684,751 $ 24,081,194

Total earning assets 43,503,089 25,572,354 25,129,873 23,542,657 21,792,725 43,503,089 21,792,725

Total securities 15,606,470 10,053,372 9,084,111 7,640,268 6,231,006 15,606,470 6,231,006

Loans and leases, net of unearned income 26,882,988 14,991,245 15,004,039 15,038,808 15,022,479 26,882,988 15,022,479

Allowance for credit losses 446,415 260,276 265,720 241,117 244,422 446,415 244,422

Net book value of acquired loans (included in

loans and leases above) 11,968,278 1,426,266 1,646,031 1,023,252 1,160,267 11,968,278 1,160,267

Paycheck protection program (PPP) loans

(included in loans and leases above) 50,008 32,771 167,144 1,146,000 975,421 50,008 975,421

Remaining loan mark on acquired loans 77,711 9,863 13,037 10,069 13,886 77,711 13,886

Total deposits 39,817,673 23,538,711 22,838,486 21,173,186 19,846,441 39,817,673 19,846,441

Total deposits and securities sold under

agreement to repurchase 40,504,861 24,243,834 23,521,621 21,833,671 20,484,156 40,504,861 20,484,156

Long-term debt 3,742 4,082 4,189 4,295 4,402 3,742 4,402

Subordinated debt securities 493,669 307,776 307,601 297,425 297,250 493,669 297,250

Total shareholders' equity 5,247,987 3,023,257 3,069,574 2,825,198 2,822,477 5,247,987 2,822,477

Common shareholders' equity 5,080,994 2,856,264 2,902,581 2,658,205 2,655,484 5,080,994 2,655,484

Balance Sheet - Average Balances

Total assets $ 40,995,513 $ 27,616,585 $ 26,666,296 $ 24,545,560 $ 23,660,503 $ 29,994,648 $ 22,723,386

Total earning assets 37,210,403 25,220,602 24,211,759 22,346,075 21,497,938 27,282,382 20,616,184

Total securities 12,954,547 9,539,814 8,067,109 6,606,027 5,820,425 9,309,947 5,010,378

Loans and leases, net of unearned income 22,745,093 14,915,728 15,470,539 15,029,076 15,219,402 17,055,429 14,984,356

PPP loans (included in loans and leases above) 48,206 73,783 973,036 1,062,423 1,139,959 535,308 830,467

Total deposits 34,759,687 23,162,450 22,385,883 20,472,080 19,600,863 25,228,601 18,559,655

Total deposits and securities sold under

agreement to repurchase 35,479,807 23,914,986 23,092,969 21,123,774 20,272,881 25,936,769 19,194,697

Long-term debt 3,844 4,168 4,714 4,378 4,488 4,274 4,644

Subordinated debt securities 437,321 307,671 304,056 297,318 297,145 336,896 296,882

Total shareholders' equity 4,508,594 3,058,307 2,954,834 2,813,001 2,774,589 3,337,575 2,725,545

Common shareholders' equity 4,341,601 2,891,314 2,787,841 2,646,008 2,607,596 3,170,582 2,558,545

Nonperforming Assets:

Non-accrual loans and leases $ 122,104 $ 59,622 $ 61,664 $ 73,142 $ 96,378 $ 122,104 $ 96,378

Loans and leases 90+ days past due,

still accruing 24,784 17,012 15,386 21,208 14,320 24,784 14,320

Restructured loans and leases, still accruing 6,903 7,165 7,368 6,971 10,475 6,903 10,475

Non-performing loans (NPLs) 153,791 83,799 84,418 101,321 121,173 153,791 121,173

Other real estate owned and other repossessed

assets 33,021 16,515 17,333 9,351 11,395 33,021 11,395

Non-performing assets (NPAs) $ 186,812 $ 100,314 $ 101,751 $ 110,672 $ 132,568 $ 186,812 $ 132,568

Cadence Bank

Selected Financial Information

(Dollars in thousands, except per share data)

(Unaudited)

Quarter Ended Year Ended

Dec-21 Sep-21 Jun-21 Mar-21 Dec-20 Dec-21 Dec-20

Financial Ratios and Other Data:

Return on average assets (0.34%) 1.04% 1.14% 1.35% 1.16% 0.65% 1.00%

Adjusted return on average assets-excluding MSR* 1.01 1.09 1.40 1.28 1.23 1.17 1.09

Return on average common shareholders' equity (3.38) 9.65 10.53 12.14 10.14 5.86 8.54

Adjusted return on average common shareholders'

equity-excluding MSR* 9.33 10.06 13.04 11.47 10.80 10.75 9.27

Return on average tangible common equity* (4.71) 14.85 16.08 18.46 15.54 8.66 13.22

Adjusted return on average tangible common equity-

excluding MSR* 12.99 15.48 19.92 17.44 16.56 15.90 14.35

Pre-tax pre-provision net revenue to total average assets* 0.83 1.24 1.63 1.73 1.49 1.28 1.66

Adjusted pre-tax pre-provision net revenue to total

average assets* 1.29 1.29 1.80 1.64 1.59 1.48 1.76

Net interest margin-fully taxable equivalent 2.90 2.86 2.99 3.15 3.29 2.96 3.36

Net interest rate spread 2.78 2.72 2.83 2.97 3.07 2.82 3.11

Efficiency ratio (tax equivalent)* 76.94 67.52 61.55 59.64 65.16 67.34 63.18

Adjusted efficiency ratio-excluding MSR (tax equivalent)* 63.98 65.79 57.66 60.74 62.87 62.16 61.33

Loan/deposit ratio 67.52% 63.69% 65.70% 71.03% 75.69% 67.52% 75.69%

Employee FTE 6,595 4,770 4,835 4,546 4,596 6,595 4,596

Credit Quality Ratios:

Net (recoveries) charge-offs to average loans and leases ^(1) (0.08%) (0.05%) (0.05%) 0.09% 0.29% (0.03%) 0.18%

Provision for credit losses to average loans and leases ^(1) 2.33 (0.19) 0.30 0.00 0.15 0.81 0.59

ACL to net loans and leases 1.66 1.74 1.77 1.60 1.63 1.66 1.63

ACL to non-performing loans and leases 290.27 310.60 314.77 237.97 201.71 290.27 201.71

ACL to non-performing assets 238.96 259.46 261.15 217.87 184.37 238.96 184.37

Non-performing loans and leases to net loans and leases 0.57 0.56 0.56 0.67 0.81 0.57 0.81

Non-performing assets to total assets 0.39 0.36 0.37 0.43 0.55 0.39 0.55

Equity Ratios:

Total shareholders' equity to total assets 11.01% 10.77% 11.12% 10.95% 11.72% 11.01% 11.72%

Total common shareholders' equity to total assets 10.66 10.18 10.51 10.30 11.03 10.66 11.03

Tangible common shareholders' equity to tangible assets* 7.54 6.82 7.11 7.04 7.54 7.54 7.54

Capital Adequacy:

Common Equity Tier 1 capital ^(2) 10.81% 10.73% 10.89% 10.97% 10.74% 10.81% 10.74%

Tier 1 capital ^(2) 11.29 11.63 11.80 11.95 11.74 11.29 11.74

Total capital ^(2) 13.44 14.27 14.50 14.65 14.48 13.44 14.48

Tier 1 leverage capital ^(2) 9.90 8.13 8.25 8.59 8.67 9.90 8.67

*Denotes non-GAAP financial measure. Refer to related disclosure andreconciliation on pages 25, 26, and 27.

(1) Annualized

(2) Estimated for current quarter

Cadence Bank

Selected Financial Information

(Dollars in thousands, except per share data)

(Unaudited)

Quarter Ended Year Ended

Dec-21 Sep-21 Jun-21 Mar-21 Dec-20 Dec-21 Dec-20

Common Share Data:

Diluted (loss) earnings per share $ (0.22) $ 0.65 $ 0.69 $ 0.77 $ 0.65 $ 1.54 $ 2.12

Adjusted earnings per share* 0.63 0.69 0.84 0.78 0.69 2.89 2.20

Adjusted earnings per share- excluding MSR* 0.62 0.68 0.86 0.73 0.69 2.83 2.30

Cash dividends per share 0.200 0.200 0.190 0.190 0.190 0.780 0.745

Book value per share 26.98 26.73 26.72 25.90 25.89 26.98 25.89

Tangible book value per share* 18.45 17.27 17.41 17.08 17.04 18.45 17.04

Market value per share (last) 29.79 29.78 28.33 32.48 27.44 29.79 27.44

Market value per share (high) 32.12 30.55 33.18 35.59 28.54 35.59 31.61

Market value per share (low) 27.25 24.87 27.59 26.95 18.77 24.87 17.21

Market value per share (avg) 30.20 27.89 30.33 30.85 25.26 29.80 23.55

Dividend payout ratio NM 30.71% 27.43% 24.62% 29.34% 50.65% 35.12%

Adjusted dividend payout ratio - excluding MSR* 32.26% 29.41% 22.09% 26.03% 27.54% 27.56% 32.39%

Total shares outstanding 188,337,658 106,853,316 108,614,595 102,624,818 102,561,480 188,337,658 102,561,480

Average shares outstanding - diluted 164,720,656 108,250,102 105,838,056 102,711,584 102,817,409 120,668,695 103,304,570

Yield/Rate:

(Taxable equivalent basis)

Loans, loans held for sale, and leases 4.34% 4.46% 4.43% 4.53% 4.55% 4.43% 4.66%

Loans, loans held for sale, and leases excluding net

accretion on acquired loans and leases 4.06 4.38 4.35 4.43 4.49 4.28 4.59

Available-for-sale securities:

Taxable 1.17 1.20 1.21 1.32 1.53 1.21 1.75

Tax-exempt 2.54 2.88 2.77 3.52 3.40 2.78 3.85

Short-term, FHLB and other equity investments 0.25 0.20 0.16 0.11 0.13 0.21 0.43

Total interest earning assets and revenue 3.11 3.15 3.31 3.51 3.70 3.24 3.89

Deposits 0.17 0.24 0.27 0.33 0.38 0.24 0.49

Demand - interest bearing 0.21 0.31 0.34 0.40 0.47 0.30 0.61

Savings 0.14 0.09 0.09 0.11 0.15 0.11 0.19

Other time 0.58 0.91 1.00 1.14 1.28 0.88 1.47

Total interest bearing deposits 0.26 0.36 0.41 0.48 0.57 0.36 0.71

Short-term borrowings 0.11 0.10 0.12 0.13 0.16 0.12 0.54

Total interest bearing deposits and short-term

borrowings 0.25 0.35 0.40 0.46 0.55 0.35 0.70

Subordinated debt securities 3.95 4.47 4.47 4.46 4.05 4.29 4.40

Long-term debt 3.79 4.81 4.46 4.88 4.84 3.93 4.87

Total interest bearing liabilities and expense 0.32 0.43 0.47 0.54 0.63 0.43 0.78

Interest bearing liabilities to interest earning assets 64.18% 66.04% 66.24% 66.87% 65.99% 65.61% 67.17%

Net interest income tax equivalent adjustment $ 824 $ 446 $ 550 $ 569 $ 709 $ 2,388 $ 2,766

*Denotes non-GAAP financial measure. Refer to related disclosure andreconciliation on pages 25, 26, and 27.

NM = Not meaningful

Cadence Bank

Consolidated Balance Sheets

(Unaudited)

Dec-21 Sep-21 Jun-21 Mar-21 Dec-20

(Dollars in thousands)

Assets

Cash and due from banks $ 656,132 $ 301,246 $ 331,873 $ 263,289 $ 284,095

Interest bearing deposits with other banks

and Federal funds sold 638,547 150,778 629,390 336,253 133,273

Available-for-sale securities, at fair value 15,606,470 10,053,372 9,084,111 7,640,268 6,231,006

Loans and leases, net of unearned income 26,882,988 14,991,245 15,004,039 15,038,808 15,022,479

Allowance for credit losses 446,415 260,276 265,720 241,117 244,422

Net loans and leases 26,436,573 14,730,969 14,738,319 14,797,691 14,778,057

Loans held for sale 340,175 342,871 403,046 518,352 397,076

Premises and equipment, net 786,426 533,999 533,276 508,508 508,147

Goodwill 1,407,948 958,304 957,474 851,612 851,612

Other identifiable intangibles 198,271 52,235 54,659 53,581 55,899

Bank owned life insurance 597,953 359,740 355,660 335,707 333,264

Other assets 1,016,256 576,982 524,557 497,236 508,765

Total Assets $ 47,684,751 $ 28,060,496 $ 27,612,365 $ 25,802,497 $ 24,081,194

Liabilities

Deposits:

Demand: Noninterest bearing $ 13,634,505 $ 7,700,216 $ 7,619,308 $ 6,990,880 $ 6,341,457

Interest bearing 18,727,588 10,285,371 9,671,662 9,067,373 8,524,010

Savings 3,556,079 3,054,756 2,939,958 2,678,276 2,452,059

Time deposits 3,899,501 2,498,368 2,607,558 2,436,657 2,528,915

Total deposits 39,817,673 23,538,711 22,838,486 21,173,186 19,846,441

Securities sold under agreement to repurchase 687,188 705,123 683,135 660,485 637,715

Federal funds purchased

and other short-term borrowings 595,000 - - - -

Subordinated debt securities 493,669 307,776 307,601 297,425 297,250

Long-term debt 3,742 4,082 4,189 4,295 4,402

Other liabilities 839,492 481,547 709,380 841,908 472,909

Total Liabilities 42,436,764 25,037,239 24,542,791 22,977,299 21,258,717

Shareholders' Equity

Preferred stock 166,993 166,993 166,993 166,993 166,993

Common stock 470,844 267,133 271,536 256,562 256,404

Capital surplus 2,841,998 688,637 730,294 563,481 565,187

Accumulated other comprehensive (loss) income (139,369) (82,627) (34,575) (43,459) 11,923

Retained earnings 1,907,521 1,983,121 1,935,326 1,881,621 1,821,970

Total Shareholders' Equity 5,247,987 3,023,257 3,069,574 2,825,198 2,822,477

Total Liabilities & Shareholders' Equity $ 47,684,751 $ 28,060,496 $ 27,612,365 $ 25,802,497 $ 24,081,194

Cadence Bank

Consolidated Average Balance Sheets

(Unaudited)

Dec-21 Sep-21 Jun-21 Mar-21 Dec-20

(Dollars in thousands)

Assets

Cash and due from banks $ 792,315 $ 288,199 $ 365,647 $ 261,519 $ 247,799

Interest bearing deposits with other banks

and Federal funds sold 1,253,722 495,982 302,845 412,313 171,650

Available-for-sale securities, at fair value 12,954,547 9,539,814 8,067,109 6,606,027 5,820,425

Loans and leases, net of unearned income 22,745,093 14,915,728 15,470,539 15,029,076 15,219,402

Allowance for credit losses 404,578 264,067 245,095 242,935 247,049

Net loans and leases 22,340,515 14,651,661 15,225,444 14,786,141 14,972,353

Loans held for sale 220,766 242,422 361,999 289,755 277,600

Premises and equipment, net 690,031 534,071 526,960 508,551 508,053

Goodwill 1,115,502 957,899 910,448 851,612 852,472

Other identifiable intangibles 106,559 53,567 52,564 54,876 54,858

Bank owned life insurance 517,511 357,429 348,378 333,837 332,543

Other assets 1,004,045 495,541 504,902 440,929 422,750

Total Assets $40,995,513 $27,616,585 $26,666,296 $24,545,560 $23,660,503

Liabilities

Deposits:

Demand: Noninterest bearing $12,047,637 $ 7,579,513 $ 7,367,832 $ 6,484,703 $ 6,391,006

Interest bearing 15,811,268 10,027,346 9,598,550 8,956,420 8,268,528

Savings 3,374,243 3,001,406 2,851,113 2,550,095 2,386,034

Time deposits 3,526,539 2,554,185 2,568,388 2,480,862 2,555,295

Total deposits 34,759,687 23,162,450 22,385,883 20,472,080 19,600,863

Securities sold under agreement to repurchase 720,120 752,536 707,086 651,694 672,018

Federal funds purchased

and other short-term borrowings 7,554 8,706 3,901 1,500 3,893

Subordinated debt securities 437,321 307,671 304,056 297,318 297,145

Long-term debt 3,844 4,168 4,714 4,378 4,488

Other liabilities 558,393 322,747 305,822 305,589 307,507

Total Liabilities 36,486,919 24,558,278 23,711,462 21,732,559 20,885,914

Shareholders' Equity

Preferred stock 166,993 166,993 166,993 166,993 166,993

Common stock 404,522 270,098 266,676 256,536 256,422

Capital surplus 2,139,357 717,022 674,949 563,529 568,343

Accumulated other comprehensive (loss) income (103,554) (35,408) (30,614) (5,090) 12,432

Retained earnings 1,901,276 1,939,602 1,876,830 1,831,033 1,770,399

Total Shareholders' Equity 4,508,594 3,058,307 2,954,834 2,813,001 2,774,589

Total Liabilities & Shareholders' Equity $40,995,513 $27,616,585 $26,666,296 $24,545,560 $23,660,503

Cadence Bank

Consolidated Condensed Statements of Income (Loss)

(Dollars in thousands, except per share data)

(Unaudited)

Quarter Ended Year to Date

Dec-21 Sep-21 Jun-21 Mar-21 Dec-20 Dec-21 Dec-20

INTEREST REVENUE:

Loans and leases $ 249,614 $ 168,066 $ 171,305 $ 169,195 $ 174,072 $ 758,180 $ 700,065

Available-for-sale securities:

Taxable 37,258 28,617 23,983 21,192 21,895 111,050 85,466

Tax-exempt 1,608 490 676 687 760 3,461 3,984

Loans held for sale 1,324 2,076 3,040 1,595 2,504 8,035 8,357

Other 822 262 125 114 56 1,323 1,621

Total interest revenue 290,626 199,511 199,129 192,783 199,287 882,049 799,493

INTEREST EXPENSE:

Interest bearing demand 8,485 7,723 8,247 8,796 9,766 33,251 47,692

Savings 1,203 672 626 700 872 3,201 4,117

Other time 5,139 5,861 6,428 6,966 8,189 24,394 38,940

Federal funds purchased and securities sold

under agreement to repurchase 200 204 206 203 276 813 2,282

Short-term and long-term debt 37 42 44 45 47 168 2,430

Subordinated debt 4,351 3,463 3,387 3,269 3,201 14,470 13,063

Other (1) 2 9 15 - 25 2

Total interest expense 19,414 17,967 18,947 19,994 22,351 76,322 108,526

Net interest revenue 271,212 181,544 180,182 172,789 176,936 805,727 690,967

Provision (release) for credit losses 133,562 (7,000) 11,500 - 5,794 138,062 89,044

Net interest revenue, after provision for

credit losses 137,650 188,544 168,682 172,789 171,142 667,665 601,923

NONINTEREST REVENUE:

Mortgage banking 10,580 13,058 9,105 25,310 20,129 58,053 86,253

Credit card, debit card and merchant fees 12,843 11,428 11,589 9,659 10,053 45,519 38,247

Deposit service charges 16,336 10,324 8,849 8,477 9,708 43,986 37,929

Security (losses) gains, net (378) (195) 96 82 63 (395) 58

Insurance commissions 32,637 35,773 36,106 30,667 29,815 135,183 125,286

Wealth management 16,352 7,147 7,543 8,465 6,751 39,507 26,213

Gain on sale of PPP loans - - 21,572 - - 21,572 -

Other 15,484 6,885 7,083 5,276 2,307 34,728 22,518

Total noninterest revenue 103,854 84,420 101,943 87,936 78,826 378,153 336,504

NONINTEREST EXPENSE:

Salaries and employee benefits 149,599 112,968 108,188 101,060 97,215 471,815 417,809

Occupancy and equipment 26,885 18,977 18,154 17,378 17,760 81,394 70,341

Data processing and software 24,838 16,799 15,911 15,537 15,281 73,085 58,170

Merger expense 44,843 3,442 9,962 1,649 212 59,896 5,345

Deposit insurance assessments 3,278 2,330 1,638 1,455 1,696 8,701 6,726

Pension settlement expense 651 2,400 - - 5,846 3,051 5,846

Other 39,100 22,973 20,131 18,744 29,107 100,948 86,645

Total noninterest expense 289,194 179,889 173,984 155,823 167,117 798,890 650,882

(Loss) Income before income taxes (47,690) 93,075 96,641 104,902 82,851 246,928 287,545

Income tax (benefit) expense (13,033) 20,350 21,102 23,347 14,046 51,766 59,494

Net (loss) income $ (34,657) $ 72,725 $ 75,539 $ 81,555 $ 68,805 $ 195,162 $ 228,051

Less: Preferred dividends 2,372 2,372 2,372 2,372 2,372 9,488 9,488

Net (loss) income available to common

shareholders $ (37,029) $ 70,353 $ 73,167 $ 79,183 $ 66,433 $ 185,674 $ 218,563

Net (loss) income per common share: Diluted $ (0.22) $ 0.65 $ 0.69 $ 0.77 $ 0.65 $ 1.54 $ 2.12

Cadence Bank

Selected Loan Data

(Dollars in thousands)

(Unaudited)

Quarter Ended

Dec-21 Sep-21 Jun-21 Mar-21 Dec-20

LOAN AND LEASE PORTFOLIO:

Commercial and industrial

Non-real estate $ 7,847,473 $ 2,210,287 $ 2,271,370 $ 3,102,082 $ 2,918,192

Owner occupied 3,567,746 2,611,777 2,623,500 2,598,166 2,599,121

Total commercial and industrial 11,415,219 4,822,064 4,894,870 5,700,248 5,517,313

Commercial real estate

Construction, acquisition and development 2,924,343 1,797,559 1,926,421 1,707,800 1,728,682

Income producing 4,924,369 3,443,967 3,323,883 3,127,510 3,211,434

Total commercial real estate 7,848,712 5,241,526 5,250,304 4,835,310 4,940,116

Consumer

Residential mortgages 7,311,306 4,698,328 4,617,155 4,309,000 4,356,338

Other consumer 307,751 229,327 241,710 194,250 208,712

Total consumer 7,619,057 4,927,655 4,858,865 4,503,250 4,565,050

Total loans and leases, net of unearned $26,882,988 $14,991,245 $15,004,039 $15,038,808 $ 15,022,479

NON-PERFORMING ASSETS

NON-PERFORMING LOANS AND LEASES:

Nonaccrual Loans and Leases

Commercial and industrial

Non-real estate $ 33,690 $ 13,170 $ 10,941 $ 9,724 $ 13,071

Owner occupied 22,058 13,738 13,156 17,312 20,796

Total commercial and industrial 55,748 26,908 24,097 27,036 33,867

Commercial real estate

Construction, acquisition and development 5,568 3,292 2,582 8,494 9,738

Income producing 16,086 8,403 13,483 12,838 16,249

Total commercial real estate 21,654 11,695 16,065 21,332 25,987

Consumer

Residential mortgages 44,180 20,821 21,218 24,382 35,608

Other consumer 522 198 284 392 916

Total consumer 44,702 21,019 21,502 24,774 36,524

Total nonaccrual loans and leases $ 122,104 $ 59,622 $ 61,664 $ 73,142 $ 96,378

Loans and Leases 90+ Days Past Due, Still

Accruing: 24,784 17,012 15,386 21,208 14,320

Restructured Loans and Leases, Still Accruing 6,903 7,165 7,368 6,971 10,475

Total non-performing loans and leases $ 153,791 $ 83,799 $ 84,418 $ 101,321 $ 121,173

OTHER REAL ESTATE OWNED AND

OTHER REPOSSESSED ASSETS 33,021 16,515 17,333 9,351 11,395

Total Non-performing Assets $ 186,812 $ 100,314 $ 101,751 $ 110,672 $ 132,568

Additions to Nonaccrual Loans and Leases

During the Quarter (excluding acquisitions) $ 22,158 $ 19,858 $ 16,005 $ 10,029 $ 11,087

Cadence Bank

Selected Loan Data

(Dollars in thousands)

(Unaudited)

Quarter Ended

Dec-21 Sep-21 Jun-21 Mar-21 Dec-20

ALLOWANCE FOR CREDIT LOSSES:

Balance, beginning of period $ 260,276 $ 265,720 $ 241,117 $ 244,422 $ 250,624

Loans and leases charged-off:

Commercial and industrial (2,712) (1,488) (1,882) (3,043) (5,666)

Commercial real estate (586) (131) (623) (1,285) (4,907)

Consumer (2,342) (1,694) (1,357) (1,578) (2,459)

Total loans charged-off (5,640) (3,313) (3,862) (5,906) (13,032)

Recoveries:

Commercial and industrial 7,835 3,787 3,061 1,211 842

Commercial real estate 1,047 646 1,291 109 118

Consumer 1,521 936 1,310 1,281 870

Total recoveries 10,403 - 5,369 - 5,662 - 2,601 1,830

Net recoveries (charge-offs) 4,763 2,056 1,800 (3,305) (11,202)

Initial allowance on loans purchased with

credit deterioration 62,321 - 12,803 - -

Provision:

Loans and leases acquired during the quarter 119,055 - 11,500 - -

Provision (release) for credit losses related to loans

and leases - (7,500) (1,500) - 5,000

Total provision for loans and leases 119,055 (7,500) 10,000 - 5,000

Balance, end of period $ 446,415 $ 260,276 $ 265,720 $ 241,117 $ 244,422

Average loans and leases, net of unearned, for period $ 22,745,093 $ 14,915,728 $ 15,470,539 $ 15,029,076 $ 15,219,402

Ratio: Net (recoveries) charge-offs to average loans

and leases (annualized) (0.08%) (0.05%) (0.05%) 0.09% 0.29%

RESERVE FOR UNFUNDED COMMITMENTS**

Balance, beginning of period $ 9,044 $ 8,544 $ 7,044 $ 7,044 $ 6,250

Provision for unfunded commitments for loans

acquired during the quarter 13,007 - - - -

Provision for credit losses for unfunded commitments 1,500 500 1,500 - 794

Balance, end of period $ 23,551 $ 9,044 $ 8,544 $ 7,044 $ 7,044

**The Reserve for Unfunded Commitments is classified in other liabilities onthe balance sheet.

Cadence Bank

Selected Loan Data

(Dollars in thousands)

(Unaudited)

December 31, 2021

Purchased

Credit

Special Deteriorated

Pass Mention Substandard Doubtful Impaired (Loss) Total

LOAN PORTFOLIO BY

INTERNALLY ASSIGNED GRADE:

Commercial and industrial

Non-real estate $ 7,655,502 $ 43,009 $ 103,134 $ 153 $ 5,350 $ 40,325 $ 7,847,473

Owner occupied 3,484,116 3,440 55,247 - 11,229 13,714 3,567,746

Total commercial and industrial 11,139,618 46,449 158,381 153 16,579 54,039 11,415,219

Commercial real estate

Construction, acquisition and

development 2,884,673 441 31,263 - 3,765 4,201 2,924,343

Income producing 4,686,699 28,964 174,936 - 3,810 29,960 4,924,369

Total commercial real estate 7,571,372 29,405 206,199 - 7,575 34,161 7,848,712

Consumer

Residential mortgages 7,196,106 990 110,429 2,560 1,047 174 7,311,306

Other consumer 300,175 - 7,381 137 - 58 307,751

Total consumer 7,496,281 990 117,810 2,697 1,047 232 7,619,057

Total loans and leases, net of unearned $ 26,207,271 $ 76,844 $ 482,390 $ 2,850 $ 25,201 $ 88,432 $ 26,882,988

September 30, 2021

Purchased

Credit

Special Deteriorated

Pass Mention Substandard Doubtful Impaired (Loss) Total

LOAN PORTFOLIO BY

INTERNALLY ASSIGNED GRADE:

Commercial and industrial

Non-real estate $ 2,163,197 $ 1,691 $ 32,847 $ 161 $ 5,150 $ 7,241 $ 2,210,287

Owner occupied 2,541,433 - 55,874 - 9,582 4,888 2,611,777

Total commercial and industrial 4,704,630 1,691 88,721 161 14,732 12,129 4,822,064

Commercial real estate

Construction, acquisition and

development 1,752,717 - 36,992 - 1,209 6,641 1,797,559

Income producing 3,280,770 - 154,459 - 4,934 3,804 3,443,967

Total commercial real estate 5,033,487 - 191,451 - 6,143 10,445 5,241,526

Consumer

Residential mortgages 4,627,217 - 69,113 - 1,817 181 4,698,328

Other consumer 221,621 - 7,644 - - 62 229,327

Total consumer 4,848,838 - 76,757 - 1,817 243 4,927,655

Total loans $ 14,586,955 $ 1,691 $ 356,929 $ 161 $ 22,692 $ 22,817 $ 14,991,245

Cadence Bank

Geographical Information

(Dollars in thousands)

(Unaudited)

December 31, 2021

Alabama Tennessee

and and

Florida Arkansas Louisiana Mississippi Missouri Georgia Texas Other Total

LOAN AND LEASE PORTFOLIO:

Commercial and industrial

Non-real estate $ 750,919 $ 155,279 $ 294,943 $ 505,212 $ 69,959 $ 724,290 $ 3,627,559 $ 1,719,312 $ 7,847,473

Owner occupied 539,409 220,571 233,726 675,010 78,587 427,493 1,286,591 106,359 3,567,746

Total commercial and industrial 1,290,328 375,850 528,669 1,180,222 148,546 1,151,783 4,914,150 1,825,671 11,415,219

Commercial real estate

Construction, acquisition and

development 295,534 67,950 51,240 214,688 30,515 482,721 1,570,378 211,317 2,924,343

Income producing 719,156 289,039 218,860 670,656 209,986 984,992 1,686,124 145,556 4,924,369

Total commercial real estate 1,014,690 356,989 270,100 885,344 240,501 1,467,713 3,256,502 356,873 7,848,712

Consumer

Residential mortgages 1,495,780 363,519 417,813 1,039,206 148,182 838,440 2,897,122 111,244 7,311,306

Other consumer 40,395 11,475 9,383 58,629 905 23,116 79,076 84,772 307,751

Total consumer 1,536,175 374,994 427,196 1,097,835 149,087 861,556 2,976,198 196,016 7,619,057

Total loans and leases, net of unearned $3,841,193 $1,107,833 $1,225,965 $3,163,401 $538,134 $3,481,052 $11,146,850 $ 2,378,560 $ 26,882,988

Loan growth, excluding loans acquired

during the quarter (annualized) (5.11%) (9.13%) (12.84%) (1.94%) 11.12% 8.92% 18.63% (11.22%) 5.83%

Cadence Bank

Noninterest Revenue and Expense

(Dollars in thousands)

(Unaudited)

Quarter Ended Year Ended

Dec-21 Sep-21 Jun-21 Mar-21 Dec-20 Dec-21 Dec-20

NONINTEREST REVENUE:

Mortgage banking excl. MSR and MSR Hedge

market value adjustment $ 7,963 $ 11,009 $ 11,013 $ 17,929 $ 19,917 $ 47,914 $ 99,067

MSR and MSR Hedge market value adjustment 2,617 2,049 (1,908) 7,381 212 10,139 (12,814)

Credit card, debit card and merchant fees 12,843 11,428 11,589 9,659 10,053 45,519 38,247

Deposit service charges 16,336 10,324 8,849 8,477 9,708 43,986 37,929

Securities (losses) gains, net (378) (195) 96 82 63 (395) 58

Insurance commissions 32,637 35,773 36,106 30,667 29,815 135,183 125,286

Trust income 7,892 4,735 4,434 5,129 4,046 22,190 16,025

Annuity fees 435 50 50 51 53 586 215

Brokerage commissions and fees 8,025 2,362 3,059 3,285 2,652 16,731 9,973

Gain on sale of PPP loans - - 21,572 - - 21,572 -

Bank-owned life insurance 3,098 4,217 1,845 2,020 2,425 11,180 8,181

Other miscellaneous income 12,386 2,668 5,238 3,256 (118) 23,548 14,337

Total noninterest revenue $103,854 $ 84,420 $101,943 $ 87,936 $ 78,826 $ 378,153 $ 336,504

NONINTEREST EXPENSE:

Salaries and employee benefits $149,599 $112,968 $108,188 $101,060 $ 97,215 $ 471,815 $ 417,809

Occupancy, net of rental income 19,477 13,443 13,187 12,814 13,004 58,921 51,655

Equipment 7,408 5,534 4,967 4,564 4,756 22,473 18,686

Deposit insurance assessments 3,278 2,330 1,638 1,455 1,696 8,701 6,726

Pension settlement expense 651 2,400 - - 5,846 3,051 5,846

Advertising 2,721 988 783 1,004 899 5,496 3,742

Foreclosed property expense 689 2,189 649 1,021 2,122 4,548 4,074

Telecommunications 1,725 1,600 1,517 1,398 1,448 6,240 5,883

Public relations 2,365 1,166 1,012 741 897 5,284 3,166

Data processing 15,606 11,297 11,024 10,424 9,980 48,351 38,796

Computer software 9,232 5,502 4,887 5,113 5,301 24,734 19,374

Amortization of intangibles 5,473 2,424 2,401 2,318 2,499 12,616 9,605

Legal 1,282 814 774 1,166 1,474 4,036 3,431

Merger expense 44,843 3,442 9,962 1,649 212 59,896 5,345

Postage and shipping 1,772 1,414 1,317 1,547 1,418 6,050 5,256

Other miscellaneous expense 23,073 12,378 11,678 9,549 18,350 56,678 51,488

Total noninterest expense $289,194 $179,889 $173,984 $155,823 $ 167,117 $ 798,890 $ 650,882

INSURANCE COMMISSIONS:

Property and casualty commissions $ 23,640 $ 26,413 $ 26,040 $ 21,949 $ 21,304 $ 98,042 $ 90,254

Life and health commissions 6,459 6,543 7,130 6,494 5,915 26,626 24,933

Risk management income 699 676 611 613 829 2,599 2,510

Other 1,839 2,141 2,325 1,611 1,767 7,916 7,589

Total insurance commissions $ 32,637 $ 35,773 $ 36,106 $ 30,667 $ 29,815 $ 135,183 $ 125,286

Cadence Bank

Average Balances and Yields

(Dollars in thousands)

(Unaudited)

For the Three Months Ended

December 31, 2021 September 30, 2021 December 31, 2020

Average Income/ Yield/ Average Income/ Yield/ Average Income/ Yield/

(Dollars in thousands) Balance Expense Rate Balance Expense Rate Balance Expense Rate

ASSETS

Interest-earning assets:

Loans and leases, excluding accretion $22,745,093 $233,585 4.07% $ 14,915,728 $ 165,207 4.39% $ 15,219,402 $ 172,279 4.50%

Accretion income on acquired loans 16,426 0.29 3,175 0.08 2,300 0.06

Loans held for sale 220,766 1,324 2.38 242,422 2,076 3.40 277,600 2,504 3.59

Investment securities

Taxable 12,636,302 37,258 1.17 9,454,514 28,617 1.20 5,708,017 21,895 1.53

Tax-exempt 318,245 2,035 2.54 85,300 620 2.88 112,408 961 3.40

Total investment securities 12,954,547 39,293 1.20 9,539,814 29,237 1.22 5,820,425 22,856 1.56

Other investments 1,289,997 822 0.25 522,638 262 0.20 180,511 57 0.13

Total interest-earning assets 37,210,403 291,450 3.11 25,220,603 199,957 3.15 21,497,938 199,996 3.70

Other assets 4,189,688 2,660,050 2,409,614

Allowance for credit losses (404,578) (264,067) (247,049)

Total assets $40,995,513 $ 27,616,585 $ 23,660,503

LIABILITIES AND SHAREHOLDERS' EQUITY

Interest-bearing liabilities:

Demand deposits $15,811,268 $ 8,485 0.21% $ 10,027,346 $ 7,723 0.31% $ 8,268,528 $ 9,766 0.47%

Savings deposits 3,374,243 1,203 0.14 3,001,406 672 0.09 2,386,034 872 0.15

Time deposits 3,526,539 5,139 0.58 2,554,185 5,861 0.91 2,555,295 8,189 1.28

Total interest-bearing deposits 22,712,050 14,827 0.26 15,582,937 14,256 0.36 13,209,857 18,827 0.57

Short-term borrowings 727,674 200 0.11 761,242 196 0.10 675,911 269 0.16

Long-term borrowings 441,165 4,387 3.95 311,839 3,515 4.47 301,633 3,255 4.29

Total interest-bearing liabilities 23,880,889 19,414 0.32 16,656,018 17,967 0.43 14,187,401 22,351 0.63

Noninterest-bearing liabilities:

Demand deposits 12,047,637 7,579,513 6,391,006

Other liabilities 558,393 322,747 307,507

Total liabilities 36,486,919 24,558,278 20,885,914

Shareholders' equity 4,508,594 3,058,307 2,774,589

Total liabilities and shareholders' equity $40,995,513 $ 27,616,585 $ 23,660,503

Net interest income/net interest spread 272,036 2.78% 181,990 2.72% 177,645 3.07%

Net yield on earning assets/net interest margin 2.90% 2.86% 3.29%

Taxable equivalent adjustment:

Loans and investment securities (824) (446) (709)

Net interest revenue $271,212 $ 181,544 $ 176,936

Cadence Bank

Average Balances and Yields

(Dollars in thousands)

(Unaudited)

For the Years Ended

December 31, 2021 December 31, 2020

Average Income/ Yield/ Average Income/ Yield/

(Dollars in thousands) Balance Expense Rate Balance Expense Rate

ASSETS

Interest-earning assets:

Loans and leases, excluding accretion $17,055,429 $733,448 4.30% $ 14,984,356 $ 690,473 4.61%

Accretion income on acquired loans 26,200 0.15 11,299 0.08

Loans held for sale 278,447 8,035 2.89 246,007 8,357 3.40

Investment securities

Taxable 9,152,620 111,050 1.21 4,879,279 85,466 1.75

Tax-exempt 157,327 4,381 2.78 131,099 5,043 3.85

Total investment securities 9,309,947 115,431 1.24 5,010,378 90,509 1.81

Other investments 638,559 1,323 0.21 375,443 1,621 0.43

Total interest-earning assets 27,282,382 884,437 3.24 20,616,184 802,259 3.89

Other assets 3,001,809 2,331,024

Allowance for credit losses (289,543) (223,821)

Total assets $29,994,648 $ 22,723,386

LIABILITIES AND SHAREHOLDERS' EQUITY

Interest-bearing liabilities:

Demand deposits $11,114,242 $ 33,251 0.30% $ 7,859,680 $ 47,692 0.61%

Savings deposits 2,946,629 3,201 0.11 2,199,405 4,117 0.19

Time deposits 2,784,733 24,394 0.88 2,649,809 38,940 1.47

Total interest-bearing deposits 16,845,604 60,846 0.36 12,708,894 90,749 0.71

Short-term borrowings 713,788 838 0.12 837,036 4,488 0.54

Long-term borrowings 341,170 14,638 4.29 301,526 13,289 4.41

Total interest-bearing liabilities 17,900,562 76,322 0.43 13,847,456 108,526 0.78

Noninterest-bearing liabilities:

Demand deposits 8,382,997 5,850,761

Other liabilities 373,514 299,624

Total liabilities 26,657,073 19,997,841

Shareholders' equity 3,337,575 2,725,545

Total liabilities and shareholders' equity $29,994,648 $ 22,723,386

Net interest income/net interest spread 808,115 2.82% 693,733 3.11%

Net yield on earning assets/net interest margin 2.96% 3.36%

Taxable equivalent adjustment:

Investment securities (2,388) (2,766)

Net interest revenue $805,727 $ 690,967

Cadence Bank

Selected Additional Information

(Dollars in thousands)

(Unaudited)

Quarter Ended

Dec-21 Sep-21 Jun-21 Mar-21 Dec-20

MORTGAGE SERVICING RIGHTS:

Fair value, beginning of period $ 64,684 $ 60,615 $ 60,332 $ 47,571 $ 44,944

Additions to mortgage servicing rights:

Originations of servicing assets 5,709 5,798 6,833 5,588 6,608

Changes in fair value:

Due to payoffs/paydowns (3,823) (3,919) (2,946) (3,273) (3,898)

Due to change in valuation inputs or

assumptions used in the valuation model 2,982 2,190 (3,604) 10,446 (83)

Other changes in fair value - - - - -

Fair value, end of period $ 69,552 $ 64,684 $ 60,615 $ 60,332 $ 47,571

MORTGAGE BANKING REVENUE:

Origination $ 5,970 $ 9,284 $ 8,646 $ 15,955 $ 18,561

Servicing 5,816 5,644 5,313 5,247 5,254

Payoffs/Paydowns (3,823) - (3,919) - (2,946) - (3,273) (3,898)

Total mortgage banking revenue excluding MSR 7,963 11,009 11,013 17,929 19,917

Market value adjustment on MSR 2,982 2,190 (3,604) 10,446 (83)

Market value adjustment on MSR Hedge (365) (141) 1,696 (3,065) 295

Total mortgage banking revenue $ 10,580 $ 13,058 $ 9,105 $ 25,310 $ 20,129

Mortgage loans serviced $ 7,553,917 $ 7,455,113 $7,407,690 $7,259,808 $ 7,330,293

MSR/mortgage loans serviced 0.92% 0.87% 0.82% 0.83% 0.65%

AVAILABLE-FOR-SALE SECURITIES, at fair value

U.S. Treasury notes $ 1,496,465 $ - $ - $ - $ -

U.S. Government agencies 2,536,580 2,575,564 2,758,412 2,642,646 2,871,408

U.S. Government agency issued residential

mortgage-back securities 8,621,601 5,826,087 4,709,540 3,438,246 2,421,409

U.S. Government agency issued commercial

mortgage-back securities 1,829,444 1,518,556 1,478,058 1,414,345 806,206

U.S. Small Business Administration loan-

backed securities 195,875 - - - -

Obligations of states and political subdivisions 567,570 112,152 117,248 126,589 113,953

Corporate bonds 208,159 21,013 20,853 18,442 18,030

Foreign debt securities 150,776 - - - -

Total available-for-sale securities $15,606,470 $- $10,053,372 $- $9,084,111 $- $7,640,268 $ 6,231,006

Reconciliation of Non-GAAP Measures and Other Non-GAAP Ratio Definitions

(Dollars in thousands, except per share amounts)

(Unaudited)

Management evaluates the Company's capital position and adjusted performance byutilizing certain financial measures not calculated in accordance with U.S.Generally Accepted Accounting Principles (GAAP), including adjusted net income,adjusted net income available to common shareholders, adjusted netincome-excluding MSR, adjusted net income available to commonshareholders-excluding MSR, pre-tax pre-provision net revenue, adjusted pre-taxpre-provision net revenue, total adjusted expense, tangible commonshareholders' equity to tangible assets, return on average tangible commonequity, adjusted return on average tangible common equity-excluding MSR, adjusted return on average assets-excluding MSR, adjusted return on averagecommon shareholders' equity-excluding MSR, adjusted pre-tax pre-provision netrevenue to total average assets, average tangible book value per common share,adjusted earnings per common share, adjusted earnings per commonshare-excluding MSR, efficiency ratio (tax equivalent) and adjusted efficiencyratio-excluding MSR (tax equivalent), adjusted dividend payout ratio -excluding MSR. The Company has included these non-GAAP financial measures inthis news release for the applicable periods presented. Management believesthat the presentation of these non-GAAP financial measures (i) providesimportant supplemental information that contributes to a proper understandingof the Company's capital position and adjusted performance, (ii) enables a morecomplete understanding of factors and trends affecting the Company's businessand (iii) allows investors to evaluate the Company's performance in a mannersimilar to management, the financial services industry, bank stock analysts andbank regulators. Reconciliations of these non-GAAP financial measures to themost directly comparable GAAP financial measures are presented in the tablesbelow. These non-GAAP financial measures should not be considered assubstitutes for GAAP financial measures, and the Company strongly encouragesinvestors to review the GAAP financial measures included in this news releaseand not to place undue reliance upon any single financial measure. Inaddition, because non-GAAP financial measures are not standardized, it may notbe possible to compare the non-GAAP financial measures presented in this newsrelease with other companies' non-GAAP financial measures having the same orsimilar names.

Reconciliation of Adjusted Net Income, Adjusted Net Income Available to CommonShareholders, Adjusted Net Income-Excluding MSR,and Adjusted Net Income Available to Common Shareholders-excluding MSR to NetIncome:

Quarter Ended Year Ended

Dec-21 Sep-21 Jun-21 Mar-21 Dec-20 Dec-21 Dec-20

Net (loss) income $ (34,657) $ 72,725 $ 75,539 $ 81,555 $ 68,805 $ 195,162 $ 228,051

Plus: Merger expense 44,843 3,442 9,962 1,649 212 59,896 5,345

Incremental merger related expense 4,633 - - - - 4,633 -

Initial provision for acquired loans 132,062 - 11,500 - - 143,562 1,000

Pension settlement expense 651 2,400 - - 5,846 3,051 5,846

Less: Security (losses) gains (378) (195) 96 82 63 (395) 58

Tax adjustment 41,453 1,506 5,331 391 1,496 48,681 3,027

Adjusted net income $ 106,457 $ 77,256 $ 91,574 $ 82,731 $ 73,304 $ 358,018 $ 237,157

Less: Preferred dividends 2,372 2,372 2,372 2,372 2,372 9,488 9,488

Adjusted net income available to

common shareholders $ 104,085 $ 74,884 $ 89,202 $ 80,359 $ 70,932 $ 348,530 $ 227,669

Adjusted net income $ 106,457 $ 77,256 $ 91,574 $ 82,731 $ 73,304 $ 358,018 $ 237,157

Less: MSR market value adjustment, net of tax 1,964 1,538 (1,432) 5,539 159 7,609 (9,617)

Adjusted net income-excluding MSR $ 104,493 $ 75,718 $ 93,006 $ 77,192 $ 73,145 $ 350,409 $ 246,774

Less: Preferred dividends 2,372 2,372 2,372 2,372 2,372 9,488 9,488

Adjusted net income available to common

shareholders-excluding MSR $ 102,121 $ 73,346 $ 90,634 $ 74,820 $ 70,773 $ 340,921 $ 237,286

Cadence Bank

Reconciliation of Non-GAAP Measures and Other Non-GAAP Ratio Definitions

(Dollars in thousands, except per share amounts)

(Unaudited)

Reconciliation of Net Income to Pre-Tax Pre-Provision Net Revenue

Quarter Ended Year Ended

Dec-21 Sep-21 Jun-21 Mar-21 Dec-20 Dec-21 Dec-20

Net (loss) income $ (34,657) $ 72,725 $ 75,539 $ 81,555 $ 68,805 $ 195,162 $ 228,051

Plus: Provision (release) for credit losses 133,562 (7,000) 11,500 - 5,794 138,062 89,044

Income tax (benefit) expense (13,033) 20,350 21,102 23,347 14,046 51,766 59,494

Pre-tax pre-provision net revenue $ 85,872 $ 86,075 $ 108,141 $ 104,902 $ 88,645 $ 384,990 $ 376,589

Reconciliation of Net Income to Adjusted Pre-Tax Pre-Provision Net Revenue

Net (loss) income $ (34,657) $ 72,725 $ 75,539 $ 81,555 $ 68,805 $ 195,162 $ 228,051

Plus: Provision (release) for credit losses 133,562 (7,000) 11,500 - 5,794 138,062 89,044

Merger expense 44,843 3,442 9,962 1,649 212 59,896 5,345

Incremental merger related expense 4,633 - - - - 4,633 -

Pension settlement expense 651 2,400 - - 5,846 3,051 5,846

Income tax (benefit) expense (13,033) 20,350 21,102 23,347 14,046 51,766 59,494

Less: Security (losses) gains (378) (195) 96 82 63 (395) 58

MSR market value adjustment 2,617 2,049 (1,908) 7,381 212 10,139 (12,814)

Adjusted pre-tax pre-provision net revenue $ 133,760 $ 90,063 $ 119,915 $ 99,088 $ 94,428 $ 442,826 $ 400,536

Reconciliation of Total Adjusted Expense to Total Noninterest Expense:

Total noninterest expense $ 289,194 $ 179,889 $ 173,984 $ 155,823 $ 167,117 $ 798,890 $ 650,882

Less: Merger expense 44,843 3,442 9,962 1,649 212 59,896 5,345

Incremental merger related expense 4,633 - - - - 4,633 -

Pension settlement expense 651 2,400 - - 5,846 3,051 5,846

Total adjusted expense $ 239,067 $ 174,047 $ 164,022 $ 154,174 $ 161,059 $ 731,310 $ 639,691

Cadence Bank

Reconciliation of Non-GAAP Measures and Other Non-GAAP Ratio Definitions

(Dollars in thousands, except per share amounts)

(Unaudited)

Reconciliation of Tangible Assets and Tangible Shareholders' Equity to

Total Assets and Total Shareholders' Equity:

Quarter Ended Year Ended

Dec-21 Sep-21 Jun-21 Mar-21 Dec-20 Dec-21 Dec-20

Tangible assets

Total assets $ 47,684,751 $ 28,060,496 $ 27,612,365 $ 25,802,497 $ 24,081,194 $ 47,684,751 $ 24,081,194

Less: Goodwill 1,407,948 958,304 957,474 851,612 851,612 1,407,948 851,612

Other identifiable intangible assets 198,271 52,235 54,659 53,581 55,899 198,271 55,899

Total tangible assets $ 46,078,532 $ 27,049,957 $ 26,600,232 $ 24,897,304 $ 23,173,683 $ 46,078,532 $ 23,173,683

PERIOD END BALANCES:

Tangible shareholders' equity

Total shareholders' equity $ 5,247,987 $ 3,023,257 $ 3,069,574 $ 2,825,198 $ 2,822,477 $ 5,247,987 $ 2,822,477

Less: Goodwill 1,407,948 958,304 957,474 851,612 851,612 1,407,948 851,612

Other identifiable intangible assets 198,271 52,235 54,659 53,581 55,899 198,271 55,899

Preferred stock 166,993 166,993 166,993 166,993 166,993 166,993 166,993

Total tangible common shareholders' equity $ 3,474,775 $ 1,845,725 $ 1,890,448 $ 1,753,012 $ 1,747,973 $ 3,474,775 $ 1,747,973

AVERAGE BALANCES:

Tangible shareholders' equity

Total shareholders' equity $ 4,508,594 $ 3,058,307 $ 2,954,834 $ 2,813,001 $ 2,774,589 $ 3,337,575 $ 2,725,545

Less: Goodwill 1,115,502 957,899 910,448 851,612 852,472 959,586 848,263

Other identifiable intangible assets 106,559 53,567 52,564 54,876 54,858 66,996 56,988

Preferred stock 166,993 166,993 166,993 166,993 166,993 166,993 167,000

Total tangible common shareholders' equity $ 3,119,540 $ 1,879,848 $ 1,824,829 $ 1,739,520 $ 1,700,266 $ 2,144,000 $ 1,653,294

Total average assets $ 40,995,513 $ 27,616,585 $ 26,666,296 $ 24,545,560 $ 23,660,503 $ 29,994,648 $ 22,723,386

Total shares of common stock outstanding 188,337,658 106,853,316 108,614,595 102,624,818 102,561,480 188,337,658 102,561,480

Average shares outstanding-diluted 164,720,656 108,250,102 105,838,056 102,711,584 102,817,409 120,668,695 103,304,570

Tangible common shareholders' equity to tangible assets ^(1) 7.54% 6.82% 7.11% 7.04% 7.54% 7.54% 7.54%

Return on average tangible common equity ^(2) (4.71) 14.85 16.08 18.46 15.54 8.66 13.22

Adjusted return on average tangible common equity-excluding MSR ^(3) 12.99 15.48 19.92 17.44 16.56 15.90 14.35

Adjusted return on average assets-excluding MSR ^(4) 1.01 1.09 1.40 1.28 1.23 1.17 1.09

Adjusted return on average common shareholders' equity-excluding MSR (5) 9.33 10.06 13.04 11.47 10.80 10.75 9.27

Pre-tax pre-provision net revenue to total average assets ^(6) 0.83 1.24 1.63 1.73 1.49 1.28 1.66

Adjusted pre-tax pre-provision net revenue to total average assets ^(7) 1.29 1.29 1.80 1.64 1.59 1.48 1.76

Tangible book value per common share ^(8) $ 18.45 $ 17.27 $ 17.41 $ 17.08 $ 17.04 $ 18.45 $ 17.04

Adjusted earnings per common share ^(9) $ 0.63 $ 0.69 $ 0.84 $ 0.78 $ 0.69 $ 2.89 $ 2.20

Adjusted earnings per common share-excluding MSR ^(10) $ 0.62 $ 0.68 $ 0.86 $ 0.73 $ 0.69 $ 2.83 $ 2.30

Adjusted dividend payout ratio - excluding MSR ^(11) 32.26% 29.41% 22.09% 26.03% 27.54% 27.56% 32.39%

Tangible common shareholders' equity to tangible assets is defined by the(1) Company as total shareholders' equity less preferred stock, goodwill and other identifiable intangible assets, divided by the difference of total assets less goodwill and other identifiable intangible assets.

Return on average tangible common equity is defined by the Company as(2) annualized net income available to common shareholders divided by average tangible common shareholders' equity.

Adjusted return on average tangible common equity-excluding MSR is defined(3) by the Company as annualized net adjusted income available to common shareholders-excluding MSR divided by average tangible common shareholders' equity.

Adjusted return on average assets-excluding MSR is defined by the Company(4) as annualized net adjusted income-excluding MSR divided by total average assets.

Adjusted return on average common shareholders' equity-excluding MSR is(5) defined by the Company as annualized net adjusted income available to common shareholders-excluding MSR divided by average common shareholders' equity.

Pre-tax pre-provision net revenue to total average assets is defined by(6) the Company as annualized pre-tax pre-provision net revenue divided by total average assets.

Adjusted pre-tax pre-provision net revenue to total average assets is(7) defined by the Company as annualized adjusted pre-tax pre-provision net revenue divided by total average assets adjusted for items included in the definition and calculation of net adjusted income-excluding MSR.

Tangible book value per common share is defined by the Company as tangible(8) common shareholders' equity divided by total shares of common stock outstanding.

Adjusted earnings per common share is defined by the Company as net(9) adjusted income available to common shareholders divided by average common shares outstanding-diluted.

Adjusted earnings per common share-excluding MSR is defined by the Company(10) as net adjusted income available to common shareholders-excluding MSR divided by average common shares outstanding-diluted.

Adjusted dividend payout ratio-excluding MSR is defined by the Company as(11) common share dividends divided by net adjusted income available to common shareholders-excluding MSR.

Efficiency Ratio (tax equivalent) and Adjusted Efficiency Ratio-excluding MSR(tax equivalent) Definitions

The efficiency ratio (tax equivalent) and the adjusted efficiencyratio-excluding MSR (tax equivalent) are supplemental financial measuresutilized in management's internal evaluation of the Company's use of resourcesand are not defined under GAAP. The efficiency ratio (tax equivalent) iscalculated by dividing total noninterest expense by total revenue, whichincludes net interest income plus noninterest income plus the tax equivalentadjustment. The adjusted efficiency ratio-excluding MSR (tax equivalent)excludes expense items otherwise disclosed as non-operating from totalnoninterest expense. In addition, the MSR valuation adjustment as well assecurities gains and losses are excluded from total revenue.

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SOURCE Cadence Bank