Cadence Bancorporation : Fourth Quarter 2020 Earnings Conference Call Presentation

Full Year and Fourth Quarter 2020 Financial Results

January 25, 2021

Disclaimers

This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect our current views with respect to, among other things, future events and our results of operations, financial condition and financial performance. These statements are often, but not always, made through the use of words or phrases such as "may," "should," "could," "predict," "potential," "believe," "will likely result," "expect," "continue," "will," "anticipate," "seek," "estimate," "intend," "plan," "projection," "would" and "outlook," or the negative version of those words or other comparable words of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management's beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. Such factors include, without limitation, the "Risk Factors" referenced in our Registration Statement on Form S-3 filed with the Securities and Exchange Commission (the "SEC") on May 21, 2018, and our Registration Statement on Form S-4 filed with the SEC on July 20, 2018, other risks and uncertainties listed from time to time in our reports and documents filed with the SEC, including our Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q, and the following factors: business and economic conditions generally and in the financial services industry, nationally and within our current and future geographic market areas; economic, market, operational, liquidity, credit and interest rate risks associated with our business; deteriorating asset quality and higher loan charge-offs; the laws and regulations applicable to our business; our ability to achieve organic loan and deposit growth and the composition of such growth; increased competition in the financial services industry, nationally, regionally or locally; our ability to maintain our historical earnings trends; our ability to raise additional capital to implement our business plan; material weaknesses in our internal control over financial reporting; systems failures or interruptions involving our information technology and telecommunications systems or third-party servicers; the composition of our management team and our ability to attract and retain key personnel; the fiscal position of the U.S. federal government and the soundness of other financial institutions; the composition of our loan portfolio, including the identity of our borrowers and the concentration of loans in energy-related industries and in our specialized industries; the portion of our loan portfolio that is comprised of participations and shared national credits; the amount of nonperforming and classified assets we hold; the extent of the impact of the COVID-19 pandemic on us and our customers, counterparties, employees and third-party service providers, and the impacts to our business, financial position, results of operations, and prospects. Cadence can give no assurance that any goal or plan or expectation set forth in forward-looking statements can be achieved and readers are cautioned not to place undue reliance on such statements. The forward- looking statements are made as of the date of this communication, and Cadence does not intend, and assumes no obligation, to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events or circumstances, except as required by applicable law.

Certain of the financial measures and ratios we present, including "efficiency ratio," "adjusted efficiency ratio," "adjusted noninterest expenses," "adjusted operating revenue," "tangible common equity ratio," "tangible book value per share" and "return on average tangible common equity", "adjusted return on average tangible common equity", "adjusted return on average assets", "adjusted diluted earnings per share", "pre-tax,pre-provision net revenue" and "adjusted pre-taxpre-provision net revenue," are supplemental measures that are not required by, or are not presented in accordance with, U.S. generally accepted accounting principles (GAAP). We refer to these financial measures and ratios as "non- GAAP financial measures." We consider the use of select non-GAAP financial measures and ratios to be useful for financial and operational decision making and useful in evaluating period-to-period comparisons. We believe that these non-GAAP financial measures provide meaningful supplemental information regarding our performance by excluding certain expenditures or assets that we believe are not indicative of our primary business operating results or by presenting certain metrics on a fully taxable equivalent basis. We believe that management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting, analyzing and comparing past, present and future periods. These non-GAAP financial measures should not be considered a substitute for financial information presented in accordance with GAAP and you should not rely on non-GAAP financial measures alone as measures of our performance. The non-GAAP financial measures we present may differ from non-GAAP financial measures used by our peers or other companies. We compensate for these limitations by providing the equivalent GAAP measures whenever we present the non-GAAP financial measures and by including a reconciliation of the impact of the components adjusted for in the non-GAAP financial measure so that both measures and the individual components may be considered when analyzing our performance. A reconciliation of non-GAAP financial measures to the comparable GAAP financial measures is included in the Appendix.

2

Full Year 2020 Highlights

$ in millions, except per share and unless otherwise indicated

▪ On an adjusted basis(3), net income and earnings per share were $206.7 million and $1.64, resulting in an Adj. ROAA of 1.14% and 11.59% Adj. ROATCE.

▪ Adj. pre-tax,pre-provision net earnings(3) of	Statement
	2019, due to $169.2 accelerated hedge
	$542.5 million, +36% from $400.3 million in
	income and flat expenses, offset by lower	Income
	net interest income.
▪ COVID-impacted credit environment drove
	$106.1 million of net charge-offs, 79 bp of
	avg loans, and provision expense of $278.0
	million supporting ACL/total loans of 2.89%.	(PE)
▪ NIM (FTE) of 3.58% down only 11% from
Sheet
	prior year. Total loan yields decreased 100
	Balance
	bp to 4.81% with hedge protection partially
	offsetting index rate drops, and cost of total
	deposits down 80 bp to 0.49%.
▪ Increased liquidity position as a result of
	substantial deposit growth, lower loans	(%)
	balances during the year.
	Ratios
▪	Tangible book value per share of $15.83, up
	Select
	8% from a year ago despite COVID impacted

year. Strong capital ratios: TCE/TA of 10.7%; Tier 1 of 14.0%; Total RBC of 16.7%.

Net interest income
Noninterest income
Accelerated hedge income	(2)
Operating revenue
Adj. noninterest expense	(3)
Adj. pre-tax,pre-provision net revenue	(3)
Non-cash goodwill impairment charge
Provision for credit losses
Net Income (loss)
Earnings (loss) per share
Adjusted net income	(3)
Adjusted earnings per share	(3)
Investment Securities
Allowance for credit losses
Total loans, net of unearned income
Total assets
Deposits
Tangible common equity	(3)
Tangible book value per share	(3)
NPLs / Total Loans
ACL / Total Loans
Net charge-offs / Average Loans
Adjusted efficiency ratio	(3)
Net interest margin (FTE)
ROAA
ROATCE	(3)
Adjusted ROAA	(3)
Adjusted ROATCE	(3)
TCE/TA	(3)

	2020		2019		YoY
			Comparison	(1)
					$		%
$	619.0		651.2	$	(32.2)	-5%
	307.4		130.9		176.4	135%
	169.2		-		169.2		NA
	926.3		782.1		144.2	18%
	377.6		379.0		1.4		0%
	542.5		400.3		142.2	36%
	443.7		-		(443.7)		NA
	278.0		111.0		(167.0)	-150%
	(205.5)		202.0		(407.5)	-202%
	(1.63)		1.56		(3.19)	-204%
	206.7		223.1		(16.4)	-7%
	1.64		1.72		(0.08)	-5%
$	3,332.2		2,368.6	$	963.6	41%
	367.2		119.6		247.5	207%
12,719.1		12,983.7		(264.5)	-2%
18,712.6		17,800.2		912.4		5%
16,052.2		14,742.8	1,309.5		9%
	1,994.3		1,869.9		124.4		7%
	15.83		14.65		1.18		8%
	1.08	%	0.92		(0.16) %	-17%
	2.89		0.92		1.97	214%
	0.79		0.63		(0.16)	-25%
	41.04		48.64		7.60	16%
	3.58		4.00		(0.42)	-11%
	(1.12)		1.14		(2.26)	-198%
	11.63		12.40		(0.77)	-6%
	1.14		1.26		(0.12)	-10%
	11.59		13.60		(2.01)	-15%
	10.73		10.87		(0.14)	-1%

3	(1)	Favorable (Unfavorable) comparison versus prior period. YoY represents 12/31/20 vs. 12/31/19.
	(2) 4Q20 includes $169.2 million in hedge gain acceleration in noninterest revenue as a result of a partial hedge ineffectiveness determination. See slide 17 and related 8-K filed January 7, 2021.
	(3)	Considered a non-GAAP financial measure. See "Non-GAAP Measures and Ratio Reconciliation" in the appendix.

Fourth Quarter 2020 Highlights

• Net income of $200.6 million or $1.57 per share for the fourth quarter of 2020, includes accelerated hedge income of $129.5 million ($169.2 million pretax) or $1.02 per share.

Earnings	▪ Adjusted pre-taxpre-provision net revenue(1) of $260.0 million, an increase of $165.4 million or 175%
	compared to the third quarter of 2020. Increase due to accelerated hedge revenue (3) and other revenue
	increases partially offset by net expense increases primarily in year-end incentive costs.

Capital

• Strong capital base: Tangible common equity ratio(1) of 10.7%; CET1 of 14.0%; Tier 1 Leverage 10.9%; Tier 1 Risk Based 14.0%; Total Risk Based 16.7%. Tangible book value per share up $0.43 QoQ to $15.83.
• Increasing quarterly cash dividend to $0.15/share (annualized at $0.60/ share).

Credit

Quality

• Provision for credit losses for 4Q20 was $2.8 million vs $33.0 million in 3Q20; ACL to total loans at 2.89%.
• Total NPAs improved 24.6% from linked quarter at $157.8 million or 0.84% of total assets. Criticized loans improved 19.5% from linked quarter at $871.7.
• Net charge-offs of $21.2 million or 64 bps of average loans compared to $35.3 million or 104 bps in the prior year quarter and $19.9 million or 58 bps in the linked quarter.

• Adj. noninterest expenses(1) of $105.1 million, compared to $98.4 million in 4Q19 and $92.5 million in 3Q20

Efficiency	reflecting increases primarily in year-end incentive accrual adjustment due to the impact of fourth quarter
	financial results.

• Adj. operating revenue (1) was $365.1 million in 4Q20, up $178.0 million from $187.1 million in 3Q20. The increase includes the $169.2 million in accelerated hedge revenue (3) as well as increases of $2.7 million in

Operating	net interest income and $6.1 million in all other noninterest income.
Revenue	▪ NIM(2) of 3.54% improved from 3.49% for 3Q20 due to continued declines in deposit costs (declining 7 bps
during the quarter to 0.25%) and increased loan fees from PPP forgiveness and other loan payoffs.

• Noninterest-bearingdeposits were 31.4% of total deposits.

4	(1)	Considered a non-GAAP financial measure. See "Non-GAAP Measures and Ratio Reconciliation" in the appendix.
	(2)	Presented on a fully taxable equivalent (FTE) basis using a tax rate of 21.0%.

(3) 4Q20 includes $169.2 million in hedge gain acceleration in noninterest revenue as a result of a partial hedge ineffectiveness determination. See slide 17 and related 8-K filed January 7, 2021.