BANCORPSOUTH INC - FORM 8-K - EX-99.1 - April 27, 2011

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EXHIBIT 99.1
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Welcome to the BancorpSouth Annual Shareholders’ Meeting

 

 

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Bancorpsouth

 

 

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During BancorpSouth’s Annual Meeting of Shareholders on Wednesday, April 27, 2011, representatives of BancorpSouth may make certain “forward-looking statements” regarding the future results or future financial performance of BancorpSouth and that actual results could differ materially from those indicated any forward-looking statements due to a variety of factors and/or risks. Information concerning certain of these factors can be found in BancorpSouth’s annual report on form 10-K for the year ended December 31,, 2010. Also, during the meeting, certain non-GAAP financial measures may be discussed regarding BancorpSouth’s performance. If so, you can find the reconciliation of these measures to GAAP financial measures on the investor relations portion of our website at www.bancorpsouth.com.

 

 

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Aubrey B. Patterson Chairman of the Board Chief Executive Officer BancorpSouth, Inc. BancorpSouth Bank

 

 

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Bancorpsouth

 

 

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Business of the Meeting

 

 

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Business of the Meeting • Elect five directors • Ratify the appointment of KPMG • Conduct an advisory vote on compensation of our named executive officers • Conduct an advisory vote on the frequency of that advisory vote • Approve the BancorpSouth, Inc., Long-Term Equity Incentive Plan

 

 

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Bancorpsouth

 

 

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Election of Five Directors

 

 

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W. G. “Mickey” Holliman

 

 

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Warren A. Hood, Jr.

 

 

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James V. Kelley

 

 

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T. O. Lashlee

 

 

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Alan W. Perry

 

 

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James E. Campbell, III

 

 

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Hassell H. Franklin

 

 

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Larry G. Kirk

 

 

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Guy W. Mitchell, III

 

 

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R. Madison Murphy

 

 

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Robert C. Nolan

 

 

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W. Cal Partee, Jr.

 

 

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Aubrey B. Patterson

 

 

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Bancorpsouth

 

 

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Ratification of Appointment of Independent Registered Accounting Firm

 

 

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Bancorpsouth

 

 

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Advisory Vote on Executive Compensation

 

 

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Bancorpsouth

 

 

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Advisory Vote on Frequency of the Advisory Vote on the Compensation of Our Named Executive Officers

 

 

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Bancorpsouth

 

 

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To Approve the BancorpSouth Long-Term Equity Incentive Plan

 

 

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Bancorpsouth

 

 

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In Memoriam

 

 

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Frank A. Riley BancorpSouth, Inc. Director 1965-1998 BancorpSouth Bank Director 1964-1998 Director Emeritus 1998-2010

 

 

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Bancorpsouth

 

 

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James V. Kelley President Chief Operating Officer BancorpSouth, Inc. BancorpSouth Bank

 

 

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Bancorpsouth

 

 

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Provision for Loan Losses 2010 $204.0 million

 

 

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Provision for Loan Losses 2010 $204.0 million 2009 $117.3 million

 

 

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Provision for Loan Losses 2010 $204.0 million 2009 $117.3 million 2008 $56.2 million

 

 

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Operating Results Twelve Months Ended December 31, 2010 2009% Change Net interest revenue $441.1 $444.9 (0.9) % Provision for credit losses 204.0 117.3 73.9 Noninterest revenue 264.1 275.2 (4.0) Noninterest expense 487.0 490.0 (0.6) Income (loss) before income taxes 14.2 112.8 (87.4) Income tax provision (benefit) (8.7) 30.1 (128.9) Net income (loss) $22.9 $82.7 (72.3) % Net income (loss) per share: diluted $0.27 $0.99 (72.7) %

 

 

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Profitable for 2010 $22.9 million $0.27 per diluted share

 

 

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Bancorpsouth

 

 

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Pre-Tax, Pre-Provision Earnings 2010 $218.3 million

 

 

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Pre-Tax, Pre-Provision Earnings 2010 $218.3 million 2009 $230.2 million

 

 

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Pre-Tax, Pre-Provision Earnings 2010 $218.3 million 2009 $230.2 million 2008 $230.5 million

 

 

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Bancorpsouth

 

 

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Net Interest Margin A big contributor to our core earnings

 

 

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Bancorpsouth

 

 

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Cash Management

 

 

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Cash Management Asset Management & Trust

 

 

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Cash Management Asset Management & Trust Property and Casualty Insurance

 

 

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Diversified Revenue Stream Net Interest Revenue Noninterest 63% Revenue 37% Mortgage lending 11% Insurance commissions 32% Card and merchant fees 14% Other Service charges 12% 27% Trust income 4% Percentages based on data for year ended December 31, 2010 52

 

 

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Substantial and consistent revenue stream

 

 

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Mortgage production and servicing originating $1.4 billion

 

 

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Bancorpsouth

 

 

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Wealth management grew $850 million to over $6.5 billion in 2010

 

 

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Insurance division commissions + 1.5%

 

 

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Expense control

 

 

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Total assets $13.6 billion Earning assets 4.3%

 

 

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Loans - 4.5%

 

 

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Loans Loans Net of Unearned Income as of December 31 ($ in billions) $9.7 $9.8 $9.3 $11.0 $9.0 $7.0 $5.0 $3.0 2008 2009 2010 as of December 31, 2010 61

 

 

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Bancorpsouth

 

 

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Non-performing loans $394.4 million 4.23% of net loans and leases

 

 

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NPLs as a Percentage of Outstanding Loans NPL as a Percent of Outstanding NPL Outstanding Consumer Mortgages $1,978 $56.3 2.85% Home Equity 543 1.1 0.20 Non-Owner Occupied & Multi-Family 1,817 74.1 4.08 Construction, Acquisition and Development 1,148 201.4 17.54 Commercial & Industrial — Non-Real Estate 1,491 16.0 1.07 Commercial & Industrial — Owner Occupied 1,332 28.0 2.10 Agricultural 252 8.4 3.33 Credit Cards 106 4.0 3.76 All Other 665 5.0 0.75 Total Loans $9,333 $394.4 4.23%

 

 

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Bancorpsouth

 

 

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Deposit growth

 

 

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Deposits Total Deposits as of December 31 ($ in billions) $11.5 $10.7 $9.7 $11.0 +7% $9.0 $7.0 $5.0 2008 2009 2010 “Strong growth in core deposits.” as of December 31, 2010 67

 

 

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Demand Deposit Growth Demand Deposits as of December 31 ($ in billions) $7.0 $6.0 $5.0 $4.0 $3.0 $2.0 $1.0 $0.0 2009 2010 Demand — Non-Interest Demand — Interest 68

 

 

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Strongest liquidity position in recent years

 

 

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Tangible Common Equity / Tangible Assets 9.00% 7.53% 7.64% 7.63% 7.52% 8.00% 7.29% 7.23% 7.15% 7.11% 7.00% 7.00% 6.00% 5.00% 4.00% 3.00% 12/31/08 3/31/09 6/30/09 9/30/09 12/31/09 3/31/10 6/30/10 9/30/10 12/31/10

 

 

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Well capitalized

 

 

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Bancorpsouth

 

 

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Fundamentally strong institution

 

 

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Core earnings continue to produce solid results

 

 

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Positioned competitively

 

 

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Bancorpsouth

 

 

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Aubrey B. Patterson Chairman of the Board Chief Executive Officer BancorpSouth, Inc. BancorpSouth Bank

 

 

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Bancorpsouth

 

 

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Impacted conditions in our industry

 

 

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Bancorpsouth

 

 

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Strong capital position

 

 

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Ample liquidity

 

 

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Appropriate reserves

 

 

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Consistently solid pre-tax and pre-provision earnings

 

 

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Continued strong performance

 

 

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Focused on resolving any remaining credit matters

 

 

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Maintaining an appropriate level of reserves

 

 

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Bancorpsouth

 

 

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Q1 — 2011 Operating Results Three Months Ended Mar — 2011 Net interest revenue $109.4 Provision for credit losses 53.4 Noninterest revenue 68.3 Noninterest expense 130.0 Income (loss) before income taxes (5.7) Income tax provision (benefit) (5.2) Net income (loss) ($0.5) Net income (loss) per share: diluted ($0.01)

 

 

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Well capitalized

 

 

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Core operations continue to produce solid results

 

 

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$ $ $ $ $30.0 40.0 50.0 60.0 70.0 Q4 — 0 8 Q1 — 0 9 Q2 — 09 Q3 - 09 Q4 — 09 Q1 — 10 Q2 — 10 Q3 — 10 Q4 Dollars in millions — 10 Pre-Tax Pre-Provision Earnings 92

 

 

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Continued stability of core banking and non-interest income operations

 

 

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Well-capitalized financial holding company

 

 

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Tier 1 risk-based capital of 10.65%

 

 

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Total risk-based capital of 11.92%

 

 

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Minimum levels of 6% and 10%, respectively

 

 

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“Well capitalized”

 

 

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Commitment to a solid capital base

 

 

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Company’s capitalization is 100% common stock

 

 

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Bancorpsouth

 

 

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Alabama Gulf Coast

 

 

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West Louisiana

 

 

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East Texas

 

 

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Bancorpsouth

 

 

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Good mix of urban/growth markets with more mature/legacy markets Deposits 7% 7% 16% AL TX AR 12% TN LA 9% MO 3% MS 46%

 

 

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Stable source of funding

 

 

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Loan growth opportunities

 

 

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Strong regional footprint from which to grow

 

 

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Opening new locations Huntsville, Alabama Hot Springs, Arkansas

 

 

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Branch optimization project

 

 

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Bancorpsouth

 

 

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Our deposit growth demand deposits

 

 

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Our deposit growth interest-bearing demand deposit accounts

 

 

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Our deposit growth focus on relationship-building

 

 

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Generating our deposits in granular fashion

 

 

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Always seeking to grow multiple relationships

 

 

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Net Interest Margin 4.00% 3.75% 3.59% 3.50% 3.26% 3.25% 3.00% 2.75% Q4-07 Q1-08 Q2-08 Q3-08 Q4-08 Q1-09 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Q4-10 BXS SNL Bank Peer Data from SNL Financial as of 4/26/2011 The SNL Bank peer group includes a number of publicly traded banks and bank holding companies, as compiled by SNL Financial LC. The aggregate amounts are size-weighted, calculated by consolidating all companies into a single entity. 11 9

 

 

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Non-interest revenue businesses diversify sources of revenue and contribute substantially to profitability

 

 

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Bancorpsouth

 

 

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Wealth management advisory area Retirement planning

 

 

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Wealth management advisory area Retirement planning Asset management

 

 

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Wealth management advisory area Retirement planning Asset management Trust and brokerage services

 

 

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Bancorpsouth

 

 

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Over 30% of our mortgage clients are also commercial bank clients

 

 

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Prospects for cross-selling

 

 

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Continuing to grow this line of business

 

 

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Adding 14 mortgage originators in our Alabama Region

 

 

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Nation’s 25th largest insurance agency / brokerage operation Insurance ranking from Business Insurance Magazine as of December 31, 2009

 

 

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Accounted for over 31% of 2010 non-interest revenue

 

 

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Non-interest expense will continue to be watched

 

 

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Bancorpsouth

 

 

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Restructuring of deposit products and services

 

 

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Bancorpsouth

 

 

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Pursue strategic opportunities for profitable expansion

 

 

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Focused on developing new products

 

 

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Enhancing existing product and service lines

 

 

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Strengthening relationships with new and existing clients

 

 

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Pursuing market expansion where it adds meaningful opportunities

 

 

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135-year history

 

 

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Right Where You are

 

 

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