8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): October 24, 2017

Cadence Bancorporation

(Exact name of registrant as specified in its charter)

Delaware	001-38058	47-1329858
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)
2800 Post Oak Boulevard, Suite 3800 Houston, Texas		77056
(Address of principal executive offices)		(Zip Code)

(713) 871-4000

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Item 2.02 Results of Operations and Financial Condition

On October 24, 2017, Cadence Bancorporation (the “Company”) issued a press release announcing its financial results for the fiscal quarter ended September 30, 2017. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

The Company is conducting an earnings conference call and webcast on October 25, 2017 at 10:00 a.m. CT / 11:00 a.m. ET to discuss its third quarter 2017 financial results. The press release contains information about how to access the webcast. A copy of the presentation slides to be used during the earnings conference call, which contain supplemental information relating to the Company, is furnished as Exhibit 99.2 to this Current Report on Form 8-K.

In accordance with General Instruction B.2 of Form 8-K, the information in this Current Report on Form 8-K, including Exhibits 99.1 and 99.2, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

Exhibit No.	Description
99.1	Press release dated October 24, 2017.
99.2	Earnings conference call presentation slides dated October 25, 2017.

EXHIBIT INDEX

Exhibit No.	Description
99.1	Press release dated October 24, 2017.
99.2	Earnings conference call presentation slides dated October 25, 2017.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	Cadence Bancorporation
Date: October 24, 2017	By:	/s/ Valerie C. Toalson
	Name:	Valerie C. Toalson
	Title:	Executive Vice President and Chief Financial Officer

EX-99.1

Exhibit 99.1

                                                                                                                      

Cadence Bancorporation reports

THIRD quarter 2017 RESULTs

HOUSTON, TEXAS (October 24, 2017) – “We are pleased with the positive progress we are able to report with our third quarter results.  We had a good quarter in many respects.   Credit looks good with one basis point net charge-offs and declines in nonperforming assets.  Loan and deposit growth was solid.  We can see nice linked quarter operating leverage with improved efficiency ratio to 52.2% and returns on average tangible common equity of 13.0% and return on average assets of 1.29%.  I am grateful to our many hard-working bankers who have been focused on improving our results and doing a great job for clients,” said Paul Murphy, Cadence’s Chairman and Chief Executive Officer.

Highlights:

• Net income for the third quarter of 2017 was $32.6 million, a 12% increase compared to second quarter of 2017 net income of $29.0 million.  

• On a per-share basis, net income was $0.39 per diluted common share for the third quarter of 2017, compared to $0.35 in the second quarter of 2017.    

• Annualized returns on average assets, common equity and tangible common equity⁽¹⁾ for the third quarter of 2017 were 1.29%, 9.78% and 13.04%, respectively, as compared to  1.19%, 9.29% and 12.63%, respectively, for the second quarter of 2017.

• Total assets were $10.5 billion as of September 30, 2017, an increase of $1.1 billion, or 11%, as compared to $9.4 billion as of September 30, 2016.

• Loans were $8.0 billion as of September 30, 2017, an increase of $821.6 million, or 11%, as compared to $7.2 billion at September 30, 2016.

• Core deposits (total deposits excluding brokered) of $7.7 billion as of September 30, 2017 grew $941.8 million, or 14%, from September 30, 2016.  

Period End Balance Sheet:

Cadence continued to enjoy solid growth, completing the third quarter of 2017 with total assets of $10.5 billion, an increase of $1,058.3 million, or 11.2%, from September 30, 2016, and an increase of $690.7 million, or 7.0%, from June 30, 2017.  

Organic loan production and pipelines remain robust.  Loans at September 30, 2017 were $8.0 billion, an increase of $821.6 million, or 11.4%, compared with $7.2 billion at September 30, 2016, reflecting growth primarily in our specialized, general C&I and residential portfolios.  Linked quarter loans increased $312.3 million, or 4.0%, from $7.7 billion at June 30, 2017, reflecting growth in general C&I, commercial real estate and residential portfolios.  

Cadence’s energy lending portfolio remained a consistent portion of total loans, with balances totaling $933.0 million, or 11.6%, of total loans at September 30, 2017, as compared to $902.3 million, or 11.7%, of total loans at June 30, 2017.  At September 30, 2017, Midstream continued to make up the largest component of energy loans at 59.8%, followed by Exploration and Production at 31.6% and Energy Services at 8.6%.

⁽¹⁾ Considered a non-GAAP financial measure.  See Table 7 “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of our non-GAAP measures to the most directly comparable GAAP financial measure.

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Core deposits were $7.7 billion at September 30, 2017, an increase of 14.0%, or $941.8 million, compared to September 30, 2016, and an increase of 6.8%, or $489.6 million, compared to June 30, 2017.  The increases in core deposits were a result of expansion of commercial deposit relationships and treasury management services impacting noninterest bearing and interest bearing deposits, as well as retail time deposit growth.  As of September 30, 2017, brokered deposits totaled $0.8 billion (9.7% of total deposits) as compared to September 30, 2016 at $1.2 billion (14.9% of total deposits) and June 30, 2017 at $0.7 billion (9.4% of total deposits).  Total deposits at September 30, 2017 were $8.5 billion, an increase of $583.8 million, or 7.4%, compared with $7.9 billion at September 30, 2016, reflecting the growth in core deposits offset by $358.0 million, or 30.3%, reduction in brokered deposits.  Linked quarter total deposits increased $570.7 million, or 7.2%, from $7.9 billion at June 30, 2017, due primarily to core deposit growth with an increase of $144.1 million, or 19.4% in brokered deposits during the quarter.  Noninterest bearing deposits as a percent of total deposits increased to 24.4%, representing the fourth consecutive quarterly increase.  Wholesale funds to total assets were 10.2% at September 30, 2017 compared to 12.5% and 9.4% at September 30, 2016 and June 30, 2017, respectively.  

On April 13, 2017, we executed on our initial public offering, issuing 8.6 million shares with net proceeds adding $155.7 million to tangible common equity during the second quarter.  This offering resulted in an increase in average diluted shares to 84.0 million for the third quarter of 2017, as compared to 75.3 million and 82.0 million in the third quarter of 2016 and second quarter of 2017, respectively.

Results of Operations for the Quarter:

Net income for the third quarter of 2017 was $32.6 million, up 393.1% from net income of $6.6 million in the third quarter of 2016, and up 12.5% from net income of $29.0 million in the second quarter of 2017.  The year-over-year net income improvement was driven by earning assets and revenue growth, net interest margin expansion, expense control and improved credit costsincluding provision expense of $1.7 million for the three months ended September 30, 2017, compared to a provision expense of $29.6 million for the same period in 2016.  The increase in net income as compared to the three months ended June 30, 2017 was due primarily to organic balance sheet and revenue growth combined with a modest increase in expenses and improved credit costs, including a decline of $5.0 million in loan provisions compared to the prior quarter.  Pre-tax, pre-provision earnings⁽¹⁾ were $51.8 million for the third quarter of 2017 as compared to $49.2 million in the second quarter of 2017.  On a per-share basis, net income was $0.39 per diluted common share for the third quarter of 2017, compared to $0.09 a year earlier and $0.35 for the linked quarter.  Earnings per share for the period ending September 30, 2017 reflects increases in net income offset by the $0.04 dilutive effect of the common stock offering in the second quarter of 2017.  During the three months ended September 30, 2017 annualized returns on average assets, common equity and tangible common equity⁽¹⁾ were 1.29%, 9.78% and 13.04%, respectively, as compared to 0.28%, 2.35% and 3.36%, respectively, for the third quarter of 2016, and 1.19%, 9.29% and 12.63% for the second quarter of 2017.

The effective tax rate for the quarter ended September 30, 2017 was 34.9% as compared to 24.2% in the third quarter of 2016 and 31.9% in the second quarter of 2017.  The effective tax rate for the nine months ended September 30, 2017 was 33.3% as compared to 31.4% for the nine months ending September 30, 2016.

⁽¹⁾ Considered a non-GAAP financial measure.  See Table 7 “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of our non-GAAP measures to the most directly comparable GAAP financial measure.

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Our fully tax-equivalent net interest margin (“NIM”) for the third quarter of 2017 was 3.52% as compared to 3.27% for the third quarter of 2016 and 3.71% for the second quarter of 2017.  The increase in NIM year-over-year resulted from increases in earning asset yields due largely to the impact of short-term rate increases on our floating rate loans during the periods, lagging deposit cost increases, and the impact of decreased interest-sensitive brokered deposits and increased noninterest bearing deposits during the periods.  These year-over-year factors also favorably impacted the margin as compared to the second quarter of 2017; however they were more than offset by lower recovery income (excess accretion) on acquired loans due to timing variability of accelerated payoffs and paydowns driving such revenue (recovery income was $0.3 million in the third quarter of 2017 as compared to $1.4 million in the third quarter of 2016 and $4.5 million in the second quarter of 2017), which resulted in the decline in NIM in the third quarter of 2017 compared to the prior quarter.  

Earning asset yields for the third quarter of 2017 were 4.30%, up from 3.91% in the third quarter of 2016 and down from 4.45% in the second quarter of 2017.  Yield on loans, excluding acquired-impaired loans, were 4.41%, 3.96% and 4.36% for the third quarter of 2017, third quarter of 2016 and second quarter of 2017, respectively, demonstrating the interest-sensitivity inherent in the loan portfolio.  Total loan yields increased to 4.55% for the third quarter of 2017 versus 4.24% for the third quarter of 2016.  Total cost of deposits for the third quarter of 2017 was 64 basis points versus 47 basis points in the prior year’s quarter and 59 basis points in the linked quarter.  Total cost of funds for the third quarter of 2017 was 84 basis points versus 69 basis points in the prior year’s quarter and 81 basis points in the linked quarter.

Net interest income for the third quarter of 2017 was $81.2 million as compared to $70.4 million during the same period in 2016, an increase of $10.7 million, or 15.2%, driven by both strong loan growth during the period and meaningful increases in the yield on loans.  Net interest income decreased $1.2 million, or 1.5%, from $82.4 million in the second quarter of 2017, due to higher level of accretion income in the second quarter of 2017 from acquired-impaired loans.  Interest income on loans, excluding acquired-impaired loans, was $84.3 million for the third quarter of 2017, an increase of $15.9 million, or 23.3%, from the third quarter of 2016, and an increase of $4.4 million or 5.5% from the second quarter of 2017.  Total accretion for acquired credit-impaired loans was $5.8 million in the third quarter of 2017, down $2.8 million from the third quarter of 2016 and down $4.7 million from the second quarter of 2017, as described above, due to the accelerated timing of certain payoffs and paydowns in acquired loans recognized during third quarter of 2016 and second quarter of 2017.  

Noninterest income for the third quarter of 2017 was $27.1 million as compared to $22.8 million during the same period in 2016, an increase of $4.3 million, or 19.0%.  The year-over-year change included an increase in service fees and revenue to $23.0 million at September 30, 2017 versus $20.9 million for September 30, 2016 reflecting broad based business line growth during the year. Compared to the second quarter of 2017, noninterest income increased $4.1 million or 18.0% from $23.0 million for the second quarter of 2017.The third quarter of 2017 included increases in other revenue due to net valuation increases in certain investment assets accounted for under the equity method and a one-time $1.1 million gain on the sale of a specialty insurance unit.  Assets under management increased slightly to $5.6 billion during the quarter.  

Noninterest expense for the third quarter of 2017 was $56.5 million as compared to $54.9 million during the same period in 2016, an increase of $1.7 million, or 3.0%.  Salaries and employee benefits expense of $35.0 million in the third quarter of 2017 increased $3.9 million, or 12.6%, compared to the third quarter of 2016, including a $1.8 million increase in certain long-term incentive plan costs related to achieving higher levels of performance targets and the increase in our company valuation.  These costs were offset by lower FDIC insurance assessments, intangible asset amortization and other expenses as a result of

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expense management efforts.  Linked quarter, noninterest expenses increased $0.4 million, or 0.7%, from $56.1 million for the second quarter of 2017.

The efficiency ratio⁽¹⁾ for the third quarter of 2017 was 52.20%, an improvement relative to both the third quarter of 2016 and second quarter of 2017 ratios of 58.87% and 53.27%, respectively, reflecting ongoing focus on efficiency and revenue growth.  The third quarter of 2017 represents the eighth consecutive quarter of improvements in the efficiency ratio for Cadence.

Asset Quality:

Nonperforming assets (“NPAs”) continued to decline during the quarter, totaling $121.8 million, or 1.5%, of total loans, OREO and other NPAs as of September 30, 2017, down from $141.4 million, or 1.8%, as of June 30, 2017, and down from $182.4 million, or 2.5%, as of September 30, 2016.  The declines are due primarily to resolutions, paydowns and general improvement of energy credits.  At September 30, 2017, $98.2 million, or 80.6%, of the NPAs related to the energy portfolio, down from $109.4 million at June 30, 2017.  Additionally, of the $82.0 million in energy nonperforming loans included in total nonperforming assets as of September 30, 2017, over 85% were paying in accordance with contractual terms.

Net-charge offs were $173 thousand during the quarter ended September 30, 2017, as compared to $25.6 million for the three months ended September 30, 2016 and $1.8 million for the three months ended June 30, 2017.  The allowance for credit losses (“ACL”) was $94.8 million, or 1.18% of total loans, as of September 30, 2017, as compared to $91.2 million, or 1.26% of total loans, as of September 30, 2016 and $93.2 million, or 1.21% of total loans, as of June 30, 2017.  At September 30, 2017, the ACL included reserves for the energy portfolio of 2.49% as compared to 3.22% as of September 30, 2016 and 3.15% as of June 30, 2017.  Loan provisions for the third quarter of 2017 were $1.7 million as compared to $29.6 million in the prior year quarter and $6.7 million in the second quarter of 2017.  The declines in loan provisions resulted primarily from the reduction in non-performing loans and related valuation reserves, improved environmental factors in the energy sector and lower net charge-offs.  As of September 30, 2017, the ACL also included approximately $2.0 million in reserves specifically associated with heightened risks surrounding our certain of our mortgage loan customers impacted by the hurricanes in the quarter.

Two “Category 4” hurricanes moved through our geographic footprint during the quarter.  Hurricane Harvey made landfall in Texas in late August and Hurricane Irma hit Florida in early September.  Our technology and operations in the affected areas continued to function throughout the storms, and we were able to re-open all but one of our 25 branches in the impacted footprint for regular business hours within days of the storm and with negligible repairs and costs, and all branches are now open.  Based on our outreach to and analysis of our commercial customers, most with robust business continuity and disaster recovery plans, we have not identified any expected losses in the commercial portfolio to date.  Based on our outreach to and analysis of our mortgage customers in the impacted areas, and in consideration of factors that increase the risks associated with these mortgages, we concluded that increasing reserves by approximately $2.0 million was appropriate as of September 30, 2017.  We will continue to closely monitor all of our impacted customers as recovery efforts continue in the area.

⁽¹⁾ Considered a non-GAAP financial measure.  See Table 7 “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of our non-GAAP measures to the most directly comparable GAAP financial measure.

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Supplementary Financial Tables (Unaudited):

Supplementary Financial Tables (Unaudited) are included in this release following the customary disclosure information.  

Third Quarter 2017 Earnings Conference Call:

Cadence Bancorporation executive management will host a conference call to discuss third quarter 2017 results on Wednesday, October 25, 2017, at 10.00 a.m. CT / 11:00 a.m. ET.   Slides to be presented by management on the conference call can be viewed by visiting www.cadencebancorporation.comand selecting “Events & Presentations” then “Event Calendar”.    

Conference Call Access:

To access the conference call, please dial one of the following numbers approximately 10-15 minutes prior to the start time to allow time for registration, and use the Elite Entry Number provided below.

Dial in (toll free):	1-888-317-6003
International dial in:	1-412-317-6061
Canada (toll free):	1-866-284-3684
Participant Elite Entry Number:	9803175

For those unable to participate in the live presentation, a replay will be available through November 8, 2017.  To access the replay, please use the following numbers:  

US Toll Free:	1-877-344-7529
International Toll:	1-412-317-0088
Canada Toll Free:	1-855-669-9658
Replay Access Code:	10112857
End Date:	November 8, 2017

Webcast Access:

A webcast of the conference call as well as the slides to be presented by management can be viewed by visiting www.cadencebancorporation.comand selecting “Events & Presentations” then “Event Calendar”.

About Cadence Bancorporation

Cadence Bancorporation (NYSE:CADE) is a $10.5 billion in assets regional bank holding company headquartered in Houston, Texas. Through its affiliates, Cadence operates 65 locations in Alabama, Florida, Mississippi, Tennessee and Texas, and provides corporations, middle-market companies, small businesses and consumers with a full range of innovative banking and financial solutions. Services and products include commercial and business banking, treasury management, specialized lending, commercial real estate, foreign exchange, wealth management, investment and trust services, financial planning, retirement plan management, business and personal insurance, consumer banking, consumer loans, mortgages, home equity lines and loans, and credit cards. Clients have access to leading-edge online and mobile solutions, interactive teller machines, and 56,000 ATMs. The Cadence team of 1,200

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associates is committed to exceeding customer expectations and helping their clients succeed financially. Cadence Bank, N.A., Cadence Insurance, and Linscomb & Williams are direct or indirect subsidiaries of Cadence Bancorporation.

Cautionary Statement Regarding Forward-Looking Information

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-1 filed with the Securities and Exchange Commission (SEC), 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; lack of seasoning in our loan portfolio; 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 identify 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; and the amount of nonperforming and classified assets we hold. 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.

About Non-GAAP Financial Measures

Certain of the financial measures and ratios we present, including “efficiency ratio,” “adjusted noninterest expenses,” “adjusted operating revenue,” “tangible common equity ratio,” “tangible book value per

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share” and “return on average tangible common equity” and “pre-tax, pre-provision net earnings,” 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 at the end of the financial statement tables (Table 7).

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Contact Information

Media contact:

Danielle Kernell

713-871-4051

danielle.kernell@cadencebank.com

Investor relations contact:

Valerie Toalson

713-871-4103 or 800-698-7878

vtoalson@cadencebancorporation.com

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Table 1 - Selected Financial Data

	As of and for the Three Months Ended
(In thousands, except per share data)	September 30, 2017		June 30, 2017		March 31, 2017		December 31, 2016			September 30, 2016
Statement of Operations Data:
Interest income	$	99,503	$	99,375	$	89,619	$	87,068		$	84,654
Interest expense		18,340		16,991		14,861		14,570			14,228
Net interest income		81,163		82,384		74,758		72,498			70,426
Provision for credit losses		1,723		6,701		5,786		(5,222	)		29,627
Net interest income after provision		79,440		75,683		68,972		77,720			40,799
Noninterest income  - service fees and revenue		23,014		22,144		22,489		20,605			20,879
- other noninterest income		4,110		845		1,616		1,755			1,912
Noninterest expense		56,530		56,134		54,321		55,394			54,876
Income before income taxes		50,034		42,538		38,756		44,686			8,714
Income tax expense		17,457		13,570		12,639		15,701			2,107
Net income	$	32,577	$	28,968	$	26,117	$	28,985		$	6,607
Period-End Balance Sheet Data:
Investment securities, available-for-sale	$	1,198,032	$	1,079,935	$	1,116,280	$	1,139,347		$	1,031,319
Total loans, net of unearned income		8,028,938		7,716,621		7,561,472		7,432,711			7,207,313
Allowance for credit losses		94,765		93,215		88,304		82,268			91,169
Total assets		10,502,261		9,811,557		9,720,937		9,530,888			9,444,010
Total deposits		8,501,102		7,930,383		7,841,710		8,016,749			7,917,289
Noninterest-bearing deposits		2,071,594		1,857,809		1,871,514		1,840,955			1,642,480
Interest-bearing deposits		6,429,508		6,072,574		5,970,196		6,175,794			6,274,809
Borrowings and subordinated debentures		572,683		499,266		682,568		331,712			332,787
Total shareholders’ equity		1,340,848		1,304,054		1,105,976		1,080,498			1,111,783
Average Balance Sheet Data:
Investment securities, available-for-sale	$	1,169,182	$	1,099,307	$	1,125,174	$	1,060,821		$	1,110,836
Total loans, net of unearned income		7,867,794		7,650,048		7,551,173		7,375,446			7,225,365
Allowance for credit losses		94,706		90,366		82,258		95,042			93,132
Total assets		10,024,871		9,786,355		9,670,593		9,596,574			9,400,145
Total deposits		8,139,969		7,940,421		8,025,068		7,925,281			7,843,582
Noninterest-bearing deposits		1,982,784		1,845,447		1,857,657		1,784,422			1,697,633
Interest-bearing deposits		6,157,185		6,094,974		6,167,411		6,140,859			6,145,949
Borrowings and subordinated debentures		484,798		510,373		474,976		500,045			368,192
Total shareholders’ equity		1,320,884		1,251,217		1,090,905		1,094,182			1,118,603

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Table 1 (Continued) - Selected Financial Data

	As of and for the Three Months Ended
(In thousands, except per share data)	September 30, 2017			June 30, 2017			March 31, 2017			December 31, 2016			September 30, 2016
Per Share Data:(3)
Earnings
Basic	$	0.39		$	0.35		$	0.35		$	0.39		$	0.09
Diluted		0.39			0.35			0.35			0.38			0.09
Book value per common share		16.03			15.59			14.75			14.41			14.82
Tangible book value (1)		12.10			11.64			10.33			9.97			10.37
Weighted average common shares    outstanding
Basic		83,625,000			81,918,956			75,000,000			75,000,000			75,000,000
Diluted		83,955,685			81,951,795			75,672,750			75,402,525			75,258,375
Performance Ratios:
Return on average common equity (2)		9.78	%		9.29	%		9.71	%		10.54	%		2.35	%
Return on average tangible common    equity (1) (2)		13.04			12.63			13.96			15.16			3.36
Return on average assets (2)		1.29			1.19			1.10			1.20			0.28
Net interest margin (2)		3.52			3.71			3.46			3.31			3.27
Efficiency ratio (1)		52.20			53.27			54.95			58.40			58.87
Asset Quality Ratios:
Total nonperforming assets ("NPAs")    to total loans and OREO and    other NPAs (4)		1.51	%		1.82	%		2.25	%		2.22	%		2.52	%
Total nonperforming loans to    total loans (4)		0.96			1.36			1.77			1.73			2.13
Total ACL to total loans		1.18			1.21			1.17			1.11			1.26
ACL to total nonperforming    loans ("NPLs")		122.66			88.81			65.80			63.83			59.34
Net charge-offs to average loans (2)		0.01			0.09			(0.01	)		0.20			1.41
Capital Ratios:
Total shareholders’ equity to assets		12.77	%		13.29	%		11.38	%		11.34	%		11.77	%
Tangible common equity to tangible    assets (1)		9.95			10.27			8.25			8.13			8.54
Common equity tier 1 (CET1)    (transitional)		10.79			10.92			8.99			8.84			8.82
Tier 1 leverage capital		11.12			11.00			9.10			8.89			8.73
Tier 1 risk-based capital		11.17			11.31			9.36			9.19			9.17
Total risk-based capital		13.18			13.41			11.43			11.22			11.38
_____________________
(1) - Considered a non-GAAP financial measure. See Table 7 "Reconciliation of Non-GAAP Financial Measures" for a reconciliation of our non-GAAP measures to the most directly comparable GAAP financial measure.
(2) - Annualized.
(3) - 75,000,000 of our outstanding shares are owned by our parent-holding company Cadence Bancorp LLC
(4) - Included in our NPAs as of September 30, 2017 is an $9.9 million nonperforming energy credit that has been reclassified as held-for-sale (HFS) and is being carried at lower of cost or market value ("LOCOM"). Because this credit has been reclassified to HFS it has not been included in our investment loan portfolio ratios in order for these ratios to be comparable to prior periods.

9

                                                                                              

Table 2 - Average Balances/Yield/Rates

	Three Months Ended September 30,
	2017									2016
	Average			Income/			Yield/			Average			Income/			Yield/
(In thousands)	Balance			Expense			Rate			Balance			Expense			Rate
ASSETS
Interest-earning assets:
Loans, net of unearned income(1)
Originated and ANCI loans	$	7,587,556		$	84,321			4.41	%	$	6,869,321		$	68,411			3.96	%
ACI portfolio		280,238			5,840			8.27			356,044			8,656			9.67
Total loans		7,867,794			90,161			4.55			7,225,365			77,067			4.24
Investment securities
Taxable		760,269			4,610			2.41			796,625			3,866			1.93
Tax-exempt (2)		408,913			5,046			4.90			314,211			3,671			4.65
Total investment securities		1,169,182			9,656			3.28			1,110,836			7,537			2.70
Federal funds sold and short-term investments		267,684			1,072			1.59			354,720			662			0.74
Other investments		49,661			380			3.04			42,896			673			6.25
Total interest-earning assets		9,354,321			101,269			4.30			8,733,817			85,939			3.91
Noninterest-earning assets:
Cash and due from banks		60,760									45,873
Premises and equipment		65,308									69,247
Accrued interest and other assets		639,188									644,340
Allowance for credit losses		(94,706	)								(93,132	)
Total assets	$	10,024,871								$	9,400,145
LIABILITIES AND STOCKHOLDERS' EQUITY
Interest-bearing liabilities:
Demand deposits	$	4,329,086		$	7,300			0.67	%	$	4,130,126		$	4,494			0.43	%
Savings deposits		180,099			113			0.25			180,452			110			0.24
Time deposits		1,648,000			5,665			1.36			1,835,371			4,676			1.01
Total interest-bearing deposits		6,157,185			13,078			0.84			6,145,949			9,280			0.60
Other borrowings		349,925			2,926			3.32			234,072			2,670			4.54
Subordinated debentures		134,873			2,336			6.87			134,120			2,278			6.76
Total interest-bearing liabilities		6,641,983			18,340			1.10			6,514,141			14,228			0.87
Noninterest-bearing liabilities:
Demand deposits		1,982,784									1,697,633
Accrued interest and other liabilities		79,220									69,768
Total liabilities		8,703,987									8,281,542
Stockholders' equity		1,320,884									1,118,603
Total liabilities and stockholders' equity	$	10,024,871								$	9,400,145
Net interest income/net interest spread					82,929			3.20	%					71,711			3.04	%
Net yield on earning assets/net interest margin								3.52	%								3.27	%
Taxable equivalent adjustment:
Investment securities					(1,766	)								(1,285	)
Net interest income				$	81,163								$	70,426
_____________________
(1) Nonaccrual loans are included in loans, net of unearned income. No adjustment has been made for these loans in the
calculation of yields.
(2) Interest income and yields are presented on a fully taxable equivalent basis using a tax rate of 35%.

10

                                                                                              

Table 3 – Loan Interest Income Detail

	For the Three Months Ended,
(In thousands)	September 30, 2017			June 30, 2017			March 31, 2017			December 31, 2016			September 30, 2016
Loan Interest Income Detail
Interest income on loans, excluding ACI loans	$	84,321		$	79,904		$	73,869		$	71,237		$	68,411
Scheduled accretion for the period		5,550			6,075			6,331			6,845			7,296
Recovery income for the period		290			4,450			610			968			1,360
Accretion on acquired credit impaired (ACI) loans		5,840			10,525			6,941			7,813			8,656
Loan interest income	$	90,161		$	90,429		$	80,810		$	79,050		$	77,067
Loan yield, excluding ACI loans		4.41	%		4.36	%		4.14	%		4.03	%		3.96	%
ACI loan yield		8.27			14.02			8.89			9.21			9.67
Total loan yield		4.55	%		4.74	%		4.34	%		4.26	%		4.24	%

	For the Nine Months Ended September 30,						For the Years Ended December 31,
(In thousands)	2017			2016			2016			2015
Loan Interest Income Detail
Interest income on loans, excluding ACI loans	$	238,095		$	197,747		$	268,984		$	216,422
Scheduled accretion for the period		17,955			24,024			30,870			46,042
Recovery income for the period		5,350			4,732			5,699			9,970
Total accretion income on purchased loans (ACI loans)		23,305			28,756			36,569			56,012
Loan interest income	$	261,400		$	226,503		$	305,553		$	272,434
Loan yield, excluding ACI loans		4.31	%		3.92	%		3.95	%		3.63	%
ACI loan yield		10.41			9.92			9.75			10.49
Total loan yield		4.54	%		4.25	%		4.25	%		4.20	%

Table 4 - Allowance for Credit Losses

	For the Three Months Ended
(In thousands)	September 30, 2017			June 30, 2017			March 31, 2017			December 31, 2016			September 30, 2016
Balance at beginning of period	$	93,215		$	88,304		$	82,268		$	91,169		$	87,147
Charge-offs		(581	)		(2,879	)		(551	)		(3,922	)		(26,868	)
Recoveries		408			1,089			801			243			1,263
Net (charge-offs) recoveries		(173	)		(1,790	)		250			(3,679	)		(25,605	)
Provision for (reversal of) credit losses		1,723			6,701			5,786			(5,222	)		29,627
Balance at end of period	$	94,765		$	93,215		$	88,304		$	82,268		$	91,169

11

                                                                                              

Table 5 -Noninterest Income

	Three Months Ended
(In thousands)	September 30, 2017		June 30, 2017			March 31, 2017		December 31, 2016		September 30, 2016
Noninterest Income
Investment advisory revenue	$	5,283	$	5,061		$	4,916	$	4,821	$	4,733
Trust services revenue		4,613		4,584			5,231		4,109		3,959
Service charges on deposit accounts		3,920		3,784			3,815		3,614		3,555
Credit-related fees		3,306		2,741			2,747		2,875		2,690
Insurance revenue		1,950		1,828			2,130		1,577		1,863
Bankcard fees		1,803		1,862			1,812		1,813		1,823
Mortgage banking revenue		965		1,213			866		1,019		1,459
Other service fees earned		1,174		1,071			972		777		797
Total service fees and revenue		23,014		22,144			22,489		20,605		20,879
Securities (losses) gains, net		1		(244	)		81		1,267		1,386
Other		4,109		1,089			1,535		488		526
Total other noninterest income		4,110		845			1,616		1,755		1,912
Total noninterest income (GAAP)		27,124		22,989			24,105		22,360		22,791
Less: Securities (losses) gains		1		(244	)		81		1,267		1,386
Adjusted noninterest operating revenue (Non-GAAP measure)	$	27,123	$	23,233		$	24,024	$	21,093	$	21,405

Table 6 -Noninterest Expense

	Three Months Ended
(In thousands)	September 30, 2017		June 30, 2017		March 31, 2017		December 31, 2016		September 30, 2016
Noninterest Expenses
Salaries and employee benefits	$	35,007	$	34,682	$	34,267	$	28,139	$	31,086
Premises and equipment		7,419		7,180		6,693		7,475		7,130
Intangible asset amortization		1,136		1,190		1,241		1,555		1,607
Net cost of operation of other real estate owned		453		427		296		1,117		1,126
Data processing		1,688		1,702		1,696		1,767		1,530
Special asset expenses		215		469		140		670		477
Consulting and professional fees		2,069		1,502		1,139		2,288		2,040
Loan related expenses		532		757		280		1,236		985
FDIC insurance		889		954		1,493		1,517		1,912
Communications		650		675		655		741		535
Advertising and public relations		521		499		345		344		303
Legal expenses		612		508		432		662		337
Branch closure expenses		50		47		46		47		52
Other		5,289		5,542		5,598		7,836		5,756
Total noninterest expenses	$	56,530	$	56,134	$	54,321	$	55,394	$	54,876

12

                                                                                              

Table 7 - Reconciliation of Non-GAAP Financial Measures

	As of and for the Three Months Ended
(In thousands)	September 30, 2017			June 30, 2017			March 31, 2017			December 31, 2016			September 30, 2016
Efficiency ratio
Noninterest expenses (numerator)	$	56,530		$	56,134		$	54,321		$	55,394		$	54,876
Net interest income	$	81,163		$	82,384		$	74,758		$	72,498		$	70,426
Noninterest income		27,124			22,989			24,105			22,360			22,791
Operating revenue (denominator)	$	108,287		$	105,373		$	98,863		$	94,858		$	93,217
Efficiency ratio		52.20	%		53.27	%		54.95	%		58.40	%		58.87	%
Adjusted noninterest expenses and operating revenue
Noninterest expense	$	56,530		$	56,134		$	54,321		$	55,394		$	54,876
Less: Branch closure expenses		50			47			46			47			52
Adjusted noninterest expenses	$	56,480		$	56,087		$	54,275		$	55,347		$	54,824
Net interest income	$	81,163		$	82,384		$	74,758		$	72,498		$	70,426
Noninterest income		27,124			22,989			24,105			22,360			22,791
Less: Securities (losses) gains, net		1			(244	)		81			1,267			1,386
Adjusted operating revenue	$	108,286		$	105,617		$	98,782		$	93,591		$	91,831
Tangible common equity ratio
Shareholders’ equity	$	1,340,848		$	1,304,054		$	1,105,976		$	1,080,498		$	1,111,783
Less: Goodwill and other intangible assets, net		(329,124	)		(330,261	)		(331,450	)		(332,691	)		(334,246	)
Tangible common shareholders’ equity		1,011,724			973,793			774,526			747,807			777,537
Total assets		10,502,261			9,811,557			9,720,937			9,530,888			9,444,010
Less: Goodwill and other intangible assets, net		(329,124	)		(330,261	)		(331,450	)		(332,691	)		(334,246	)
Tangible assets	$	10,173,137		$	9,481,296		$	9,389,487		$	9,198,197		$	9,109,764
Tangible common equity ratio		9.95	%		10.27	%		8.25	%		8.13	%		8.54	%
Tangible book value per share
Shareholders’ equity	$	1,340,848		$	1,304,054		$	1,105,976		$	1,080,498		$	1,111,783
Less: Goodwill and other intangible assets, net		(329,124	)		(330,261	)		(331,450	)		(332,691	)		(334,246	)
Tangible common shareholders’ equity	$	1,011,724		$	973,793		$	774,526		$	747,807		$	777,537
Common shares issued		83,625,000			83,625,000			75,000,000			75,000,000			75,000,000
Tangible book value per share	$	12.10		$	11.64		$	10.33		$	9.97		$	10.37
Return on average tangible common equity
Average common equity	$	1,320,884		$	1,251,217		$	1,090,905		$	1,094,182		$	1,118,603
Less: Average intangible assets		(329,816	)		(330,977	)		(332,199	)		(333,640	)		(335,215	)
Average tangible common shareholders’ equity	$	991,068		$	920,240		$	758,706		$	760,542		$	783,388
Net income	$	32,577		$	28,968		$	26,117		$	28,985		$	6,607
Return on average tangible common equity		13.04	%		12.63	%		13.96	%		15.16	%		3.36	%
Pre-tax, pre-provision net earnings
Income before taxes	$	50,034		$	42,538		$	38,756		$	44,686		$	8,714
Plus: Provision for credit losses		1,723			6,701			5,786			(5,222	)		29,627
Pre-tax, pre-provision net earnings	$	51,757		$	49,239		$	44,542		$	39,464		$	38,341

13

EX-99.2

ANALYST PRESENTATION February 7, 2017 Paul B. Murphy, Jr. Chairman and CEO Third Quarter 2017 Financial Results October 25, 2017

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-1 filed with the Securities and Exchange Commission (SEC), 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; lack of seasoning in our loan portfolio; 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 identify 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; and the amount of nonperforming and classified assets we hold. 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 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. 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. More information regarding non-GAAP financial measures, including a reconciliation of non-GAAP financial measures to the comparable GAAP financial measures, is included in our earnings release and in the appendix to this presentation.  

Third Quarter 2017 Highlights Earnings Net income of $32.6 million, a 12% increase linked quarter and 393% increase from prior year Pre-tax, Pre-provision net earnings(1) of $51.8 million, up 35% from 3Q16 & up 5% from 2Q17 ROAA of 1.29%; ROATCE(1) of 13.04% Revenue Balance Sheet Efficiency Credit Quality (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 35% (3) Core deposits are defined as total deposits excluding brokered deposits Adj. operating revenue(1) of $108.3 million, up 18% from 3Q16 & up 3% from 2Q17 with growth driven primarily by spread income vs. year ago quarter and noninterest income vs. linked quarter Net Interest Margin of 3.52%(2), up 25 bp from 3Q16 & down 19 bp from 2Q17, reflecting the balance sheet asset sensitivity to rate increases, offset by lower excess accretion linked quarter Total period end assets of $10.5 billion, up $1.1 billion or 11% from 3Q16 Loans of $8.0 billion, up $821.6 million or 11% from 3Q16, reflecting solid momentum Core Deposits(3) of $7.7 billion, increasing $942 million or 14% from 3Q16; Total Deposits of $8.5 billion, up $584 million or 7% from 3Q16 Efficiency ratio of 52.2%(1), improved from both 58.9% in 3Q16 and 53.3% in 2Q17, reflecting steady revenue growth and continued focus on expense discipline Noninterest expenses to average assets improved to 2.24% in 3Q17 from 2.32% in 3Q16 Total nonperforming assets decreased by $20 million or -14% during 3Q17 Net charge-offs of $173 thousand for the quarter or 1 bp of average loans Loan provisions of $1.7 million in 3Q17 and allowance for credit losses at 1.18% of total loans

Financial Highlights $ in thousands, except per share and unless otherwise indicated (1) Favorable (Unfavorable) comparison versus prior period. YoY represents 9/30/17 vs. 9/30/16. QoQ represents 9/30/17 vs. 6/30/17. (2) Considered a non-GAAP financial measure. See “Non-GAAP Measures and Ratio Reconciliation” in the appendix (3) Annualized for the three month periods

Highlights Consistent Loan Growth $ in millions, unless otherwise indicated Loan Growth Loans grew $822 million or 11% to $8.0 billion from the year ago period. Cadence continues to be commercial-focused, reflecting 76% of total loans. Organic loan production and pipelines remain robust with strong commercial customer activity. Energy loans have decreased $57 million or -6% from the prior year period to $933 million, with almost 60% of the total consisting of Midstream (1) Period End Financials. (2) Figures do not equal 100% due to rounding. (3) Favorable (Unfavorable) comparison versus prior period. YoY represents 9/30/17 vs. 9/30/16. QoQ represents 9/30/17 vs. 6/30/17. 3Q17 Loan Breakdown and Historical Comparison

Improving Credit Quality $ in millions, unless otherwise indicated Nonperforming Assets(1) Highlights Net Charge Offs Total nonperforming assets decreased by $20 million or -14% during 3Q17 to $122 million at September 30, 2017. Decline in NPAs is due to resolutions and pay downs in energy credits. 94% of all NPLs are energy, of which ~85% are performing in accordance with contractual terms While overall energy industry trends are generally stable to improving, we will continue to closely monitor the risks in the portfolio Originated portfolio delinquency of 27 basis points Net charge-offs of $0.2 million in 3Q17 or 1 bp of average loans compared to $1.8 million or 9 bp in 2Q17 and $26 million or 141 bps in 3Q16 The allowance for credit losses was $94.8 million or 1.2% of total loans at 3Q17, and the reserves for the energy portfolio was 2.5% Provision for credit losses in 3Q17 include a reserve of approximately $2 million related to the risks associated with our mortgage customers in the hurricane-impacted areas by Harvey and Irma (1) NPA% represents total nonperforming assets (NPAs) to total loans and OREO and other NPAs

Highlights Meaningful Core Deposit(2) Growth $ in millions, unless otherwise indicated Deposit Growth 3Q17 Deposit Breakdown and Comparison Core Deposits(2) growth remains a top focus, increasing $490 million or 7% from 2Q17 and $942 million or 14% from 3Q16. Firm-wide focus, leading to the expansion of commercial deposit relationships and treasury management services Approximately 50% of Core Deposits are from commercial customers, 12% wealth services customers and 38% retail as of September 30, 2017 (1) Favorable (Unfavorable) comparison versus prior period. YoY represents 9/30/17 vs. 9/30/16. QoQ represents 9/30/17 vs. 6/30/17. (2) Core deposits are defined as total deposits excluding brokered deposits Deposit Composition (9/30/17)

Net Interest Margin $ in millions, unless otherwise indicated Highlights Net interest margin (tax equivalent) improved 25bp to 3.52% from 3.27% a year ago and decreased 19bp from 3.71% in the second quarter due to elevated recovery accretion in the second quarter. Earning asset yields were 4.30% in 3Q17, an increase of 39 bp versus 3Q16 and down 15 bp from 2Q17. Loan yields excluding acquired credit impaired loans (ACI) increased to 4.41% for 3Q17 versus 3.96% for 3Q16 and 4.36% for 2Q17, demonstrating the interest-sensitivity of the loan portfolio (71% of the loan portfolio floating rate of which 86% driven by 30/60/90 day LIBOR). Loan betas excluding ACI were 75% year to date(1). Total accretion for 3Q17 was $5.8 million as compared to $8.7 million in 3Q16 and $10.5 million in 2Q17. Total cost of deposits was 64 bp for 3Q17 versus 47 bp in 3Q16 and 59 bp in 2Q17. Deposit betas were approximately 24% year to date(1). NIM, Yields & Costs Est. Sensitivity (Net Interest Income % change) (1) Year to date measured from 1Q17 to 3Q17, using quarterly average balances

Highlights Attractive Noninterest Income Platform Noninterest Income Composition(2) Noninterest Income Growth $ in millions, unless otherwise indicated 3Q17 Noninterest Income: $ 27mm Adjusted noninterest income(1) of $27 million was up 27% compared to 3Q16 and up 17% from 2Q17 due to broad-based growth and increases in other revenue Other revenue rose during the quarter due to value of investments assets (equity method) and a $1.1 million gain on the sale of a specialty insurance unit Credit related fees were up 23% from 3Q16 and 21% from 2Q17, while mortgage banking income declined 34% and down 21% from 2Q17 due to more loans being held on balance sheet versus sold Assets Under Management (1) Considered a non-GAAP financial measure. See “Non-GAAP Measures and Ratio Reconciliation” in the appendix (2) Figures do not equal 100% due to rounding. Noninterest Income / Total Revenue 25.0 % 24.4 % 23.6 % 24.4 % 21.8 %

Pre-tax, Pre-Provision Net Earnings(1) Net Earnings Growth & Ongoing Expense Management Noninterest Expense Highlights $ in millions, unless otherwise indicated 3Q17 represents the eighth consecutive quarter of improvements in the efficiency ratio, reflecting strong growth in organic revenue combined with realization of inherent capacity within the organization. Expense discipline resulted in a flat quarter over quarter comparison and only up 3% from the year ago period Pre-tax, Pre-Provision Net Earnings was up 35% from 3Q16 and up 5% from 2Q17 Improved Efficiency Ratio(1) (1) Considered a non-GAAP financial measure. See “Non-GAAP Measures and Ratio Reconciliation” in the appendix

Appendix

$10+ billion Preparation *Assumes 35% tax rate (1) Based on preliminary management assumptions and calculations As of 9/30/17, $10.5 billion of total assets. We will be required to comply with heightened regulatory requirements as we have crossed the $10 billion threshold in 3Q17 and anticipate continued growth. Under the current timeline, we will be subject to the majority of incremental regulation starting in 2Q 2018 and DFAST stress testing in 2Q 2019. Large and experienced team with 69 risk professionals and 11 audit professionals. In addition, we have spent over $2 million enhancing our risk management infrastructure since 2013. Hired an independent consultant in early December 2016 to provide services on DFAST (stress testing) preparation, including an assessment of current status and assistance in preparation and ongoing maintenance of stress test framework $ in millions Expected Regulatory Costs Date Estimated Annual Impact Key Primary Regulation Applicable 2017E 2018E 2019E Description Durbin 2Q 2018 $ ‒ $ 1.30 $ 2.60 Caps interchange revenue FDIC Assessment 2Q 2018 ‒ 2.25 3.00 Increased quarterly FDIC assessment charge(1) CFPB Supervision 2Q 2018 TBD TBD TBD CFPB oversight of consumer businesses DFAST (stress test) ‘19 Cycle 0.14 1.56 1.38 Company-run stress test requirements Highway Bill 3Q 2017 0.63 1.25 1.25 Caps Federal Reserve dividends Total P-T $ 0.77 $ 6.36 $ 8.23 Total A-T 0.50 4.13 5.35

Summary Balance Sheet – Period End $ in millions Note: Figures may not total due to rounding.     3Q16 4Q16 1Q17 2Q17 3Q17 Assets Cash and Due from Banks $ 42.2 $ 48.0 $ 56.4 $ 62.3 $ 68.2 Fed Funds & Short Term Inv 385.7 200.9 259.8 226.6 521.1 Total Securities 1,073.3 1,181.3 1,174.1 1,129.9 1,252.7 Loans   7,207.3 7,432.7 7,561.5 7,716.6 8,028.9 Loans Held For Sale 19.4 17.8 43.4 49.8 21.8 Allowance for Credit Losses (91.2) (82.3) (88.3) (93.2) (94.8) Intangibles   334.2 332.7 331.5 330.3 329.1 Other Assets 473.1 399.7 382.7 389.3 375.0 Total Assets $ 9,444.0 $ 9,530.9 $ 9,720.9 $ 9,811.6 $ 10,502.3 Liabilities Total Deposits $ 7,917.3 $ 8,016.7 $ 7,841.7 $ 7,930.4 $ 8,501.1 Total Borrowings 332.8 331.7 682.6 499.3 572.7 Other Liabilities 82.2 101.9 90.7 77.9 87.6 Total Liabilities $ 8,332.2 $ 8,450.4 $ 8,615.0 $ 8,507.5 $ 9,161.4 Total Shareholders' Equity $ 1,111.8 $ 1,080.5 $ 1,106.0 $ 1,304.1 $ 1,340.8 Liabilities and Shareholders' Equity $ 9,444.0 $ 9,530.9 $ 9,720.9 $ 9,811.6 $ 10,502.3

Summary Income Statement - Quarterly $ in millions (1) Considered a non-GAAP financial measure. See “Non-GAAP Measures and Ratio Reconciliation” in the appendix Note: Figures may not total due to rounding.     3Q16 4Q16 1Q17 2Q17 3Q17 Interest Income $ 84.7 $ 87.1 $ 89.6 $ 99.4 $ 99.5 Interest Expense 14.2 14.6 14.9 17.0 18.3 Net Interest Income $ 70.4 $ 72.5 $ 74.8 $ 82.4 $ 81.2 Noninterest Income 22.8 22.4 24.1 23.0 27.1 Total Revenue $ 93.2 $ 94.9 $ 98.9 $ 105.4 $ 108.3 Noninterest Expense 54.9 55.4 54.3 56.1 56.5 Pre-Tax Pre-Provision Earnings (1) $ 38.3 $ 39.5 $ 44.5 $ 49.2 $ 51.8 Provisions for Credit Losses 29.6 (5.2) 5.8 6.7 1.7 Pre-Tax Income $ 8.7 $ 44.7 $ 38.8 $ 42.5 $ 50.0 Income Taxes 2.1 15.7 12.6 13.6 17.5 Net Income $ 6.6 $ 29.0 $ 26.1 $ 29.0 $ 32.6

Energy Loans Detail $ in millions Note: Figures may not total due to rounding. (1) Excluded from our Nonperforming Loans as of September 30, 2017 is a $9.9 million nonperforming energy credit that has been reclassified as held-for-sale (HFS) and is being carried at lower of cost or market value. Because this credit has been reclassified to HFS it has not been included in our investment loan portfolio ratios in order for these ratios to be comparable to prior periods. 3Q16 4Q16 1Q17 2Q17 3Q17 Outstanding Balance Exploration & Production $ 445.0 $ 371.9 $ 339.5 $ 322.5 $ 295.0 Midstream 431.5 472.1 469.8 493.1 558.2 Energy Services 113.0 95.4 94.5 86.7 79.8 Total Energy Sector $ 989.6 $ 939.4 $ 903.9 $ 902.3 $ 933.0 Percent to total outstanding loans 13.7 % 12.6 % 11.9 % 11.7% 11.6% Allocated Allowance for Credit Losses (ACL) Exploration & Production $ 20.6 $ 13.0 $ 19.2 $ 22.2 $ 19.0 Midstream 2.6 5.9 5.8 2.2 1.5 Energy Services 8.7 5.7 6.0 4.0 2.7 Total Energy Sector $ 31.9 $ 24.6 $ 31.1 $ 28.4 $ 23.2 ACL as a Percentage of Outstanding Balances Exploration & Production 4.6% 3.5% 5.7% 6.9% 6.5% Midstream 0.6% 1.3% 1.2% 0.4% 0.3% Energy Services 7.7% 5.9% 6.4% 4.7% 3.4% Total Energy Sector 3.2% 2.6% 3.4% 3.2% 2.5%             Nonperforming Loans Exploration & Production $ 118.5 $ 95.5 $ 102.6 $ 77.1 $ 57.7 (1) Midstream 10.7 10.7 9.7 9.4 7.9 Energy Services 9.7 7.2 6.4 6.5 6.4 Total Energy Sector $ 138.9 $ 113.4 $ 118.6 $ 93.0 $ 72.0 (1)               Energy NPLs/ Energy outstanding loans 14.0 % 12.1 % 13.1 % 10.3 % 7.7 % (1)

Allowance for Credit Losses Rollforward $ in thousands   3Q16 4Q16 1Q17 2Q17 3Q17             Allowance for credit losses at beginning of period $87,147 $91,169 $82,268 $88,304 $93,215             Charge-offs Commercial real estate - - - - - Commercial and industrial 25,455 3,036 310 2,551 440 Consumer 1,413 187 241 161 141 Small business - 699 - 167 - Total Charge-Offs $ 26,868 $ 3,922 $ 551 $2,879 $581 Recoveries           Commercial real estate 519 12 14 114 76 Commercial and industrial 675 118 532 363 71 Consumer 67 111 63 578 196 Small business 2 2 192 34 65 Total Recoveries $ 1,263 $ 243 $ 801 $1,089 $408 Net Charge-Offs $25,605 $3,679 -$250 $1,790 $173 Provision for credit losses:           Commercial real estate (943) 711 438 2,591 (384) Commercial and industrial 29,218 (6,968) 5,097 4,416 (123) Consumer 1,300 65 211 (330) 2,190 Small business 52 970 40 24 40 Total Provision for Credit Losses $29,627 -$5,222 $5,786 $6,701 $1,723             Allowance for credit losses at end of period $91,169 $82,268 $88,304 $93,215 $94,765 Note: Figures may not total due to rounding.

Non-GAAP Measures and Ratio Reconciliation $ in millions   3Q16 4Q16 1Q17 2Q17 3Q17 Efficiency ratio           Noninterest expenses (numerator) $ 54.9 $ 55.4 $ 54.3 $ 56.1 $ 56.5             Net interest income $ 70.4 $ 72.5 $ 74.8 $ 82.4 $ 81.2 Noninterest income 22.8 22.4 24.1 23.0 27.1 Operating revenue (denominator) $ 93.2 $ 94.9 $ 98.9 $ 105.4 $ 108.3             Efficiency ratio 58.9% 58.4% 55.0% 53.3% 52.2%             Adjusted noninterest expenses and operating revenue           Noninterest expense $ 54.9 $ 55.4 $ 54.3 $ 56.1 $ 56.5 Less: Branch closure expenses 0.1 0.0 0.0 0.0 0.0             Adjusted noninterest expenses $ 54.8 $ 55.3 $ 54.3 $ 56.1 $ 56.5             Net interest income $ 70.4 $ 72.5 $ 74.8 $ 82.4 $ 81.2 Noninterest income 22.8 22.4 24.1 23.0 27.1 Less: Securities gains (loss), net 1.4 1.3 0.1 (0.2) 0.0 Adjusted operating revenue $ 91.8 $ 93.6 $ 98.8 $ 105.6 $ 108.3             Pre-tax, pre-provision net earnings           Income before taxes $ 8.7 $ 44.7 $ 38.8 $ 42.5 $ 50.0 Plus: Provision for loan losses 29.6 (5.2) 5.8 6.7 1.7 Pre-tax, pre-provision net earnings $ 38.3 $ 39.5 $ 44.5 $ 49.2 $ 51.8 Note: Figures may not total due to rounding.

Non-GAAP Measures and Ratio Reconciliation, continued   3Q16 4Q16 1Q17 2Q17 3Q17 Tangible common equity ratio           Shareholders’ equity $ 1,112 $ 1,080 $ 1,106 $ 1,304 $ 1,341 Less: Goodwill and other intangible assets, net (334) (333) (331) (330) (329) Tangible common shareholders’ equity $ 778 $ 748 $ 775 $ 974 $ 1,012 Total assets $ 9,444 $ 9,531 $ 9,721 $ 9,812 $ 10,502 Less: Goodwill and other intangible assets, net (334) (333) (331) (330) (329) Tangible assets $ 9,110 $ 9,198 $ 9,389 $ 9,481 $ 10,173             Tangible common equity ratio 8.5% 8.1% 8.3% 10.3% 10.0%             Tangible book value per share           Shareholders’ equity $ 1,112 $ 1,080 $ 1,106 $ 1,304 $ 1,341 Less: Goodwill and other intangible assets, net (334) (333) (331) (330) (329) Tangible common shareholders’ equity $ 778 $ 748 $ 775 $ 974 $ 1,012             Common shares issued (000s) 75,000 75,000 75,000 83,625 83,625             Tangible book value per share $ 10.37 $ 9.97 $ 10.33 $ 11.64 $ 12.10             Return on average tangible common equity           Average common equity $ 1,119 $ 1,094 $ 1,091 $ 1,251 $ 1,321 Less: Average intangible assets (335) (334) (332) (331) (330) Average tangible common shareholders’ equity $ 783 $ 761 $ 759 $ 920 $ 991             Net income $ 6.6 $ 29.0 $ 26.1 $ 29.0 $ 32.6             Return on average tangible common equity 3.4% 15.2% 14.0% 12.6% 13.0% Note: Figures may not total due to rounding. $ in millions, unless otherwise indicated