Financial Data and Key Metrics Changes - The company reported a record net income available to common shareholders of $79.2 million, or $0.77 per diluted share for Q1 2021, an increase from $0.69 per diluted share in Q4 2020 and $0.33 in Q1 2020 [12][13] - The pretax pre-provision net revenue (PPNR) was $99.1 million, reflecting a 6% increase from Q4 2020 and an 8% increase from Q1 2020 [14][15] - The net interest margin, excluding accretion, decreased to 3.08% from 3.24% in Q4 2020, primarily due to balance sheet dynamics [20][21] Business Line Data and Key Metrics Changes - Total deposits and customer repo growth increased by $1.3 billion, or nearly 27% on an annualized basis [16][27] - Loan demand, excluding PPP loans, remained slow, with total loans flat quarter-over-quarter and a decline of approximately $140 million when excluding PPP loans [28] - Mortgage production reached $790 million, contributing $17.9 million in production and servicing revenue [17][33] Market Data and Key Metrics Changes - The company processed applications for forgiveness on nearly $700 million in PPP loans and funded over $460 million during 2021 [30] - Nonperforming assets (NPAs) declined by almost $22 million, or 16.5%, compared to Q4 2020 [15][31] Company Strategy and Development Direction - The company received regulatory approval for mergers with National United Bank and FMB Bank, expected to close on May 1 [10] - The merger with Cadence Bank is anticipated to create significant opportunities for growth in new markets, particularly in Texas and Florida [11][50] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the economic recovery in their footprint, with a cautious approach to COVID protocols as vaccination rates rise [8][36] - The company is focused on integrating new acquisitions while continuing to support existing customer relationships [37] Other Important Information - The company is experiencing challenges in loan demand due to the impact of PPP loans on traditional lending [40][41] - The company is actively monitoring higher-risk segments of the loan portfolio, particularly in hospitality [31] Q&A Session Summary Question: What are your thoughts on when loan demand will return? - Management indicated mixed signals, with some areas showing business activity while others remain slow [39][40] Question: How do you see the residential mortgage market for the spring and summer selling season? - Management noted strong demand but limited inventory, which may affect performance compared to last year [46][47] Question: What are your plans for expanding in the new markets from the Cadence transaction? - Management expressed interest in growth opportunities in Metro Atlanta and Florida, emphasizing the importance of attracting talent [50][51] Question: How do you plan to retain talent during the merger process? - Management highlighted the importance of treating employees well and providing retention incentives [55] Question: What is the outlook for net interest income growth in Q2? - Management is optimistic about growth due to more days in the quarter and potential deposit repricing [73][75] Question: How do you view loan yields and potential downside? - Management acknowledged the competitive environment but emphasized disciplined pricing strategies [80][81]

BancorpSouth Bank Financial Information As of and for the Three Months Ended March 31, 2021 Presented April 22, 2021 1 Forward Looking Statements Certain statements made in this presentation 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 ...