BancorpSouth Bank's announced all-stock merger with Houston-based Cadence Bancorporation, expected to close in fourth-quarter 2021, will create a more diversified U.S. regional bank with $44 billion in total assets operating across nine states in the southeastern U.S. The merger with Cadence could result in sizable integration challenges and potentially higher credit losses, which are offset by the company's increased loan loss allowances and expected credit marks. We affirmed our 'BBB/A-2' ratings on BancorpSouth Bank and maintained the stable outlook on the long-term rating. The stable outlook balances the near-term integration risks with the longer-term expected benefits, which include a more diversified loan portfolio, enhanced scale, and broader geographic footprint. On April 13, 2021, S&P Global Ratings affirmed its 'BBB/A-2' long-
