BancorpSouth Bank and Cadence Bank have agreed to divest seven branches in northeastern Mississippi to The First, A National Banking Association to address antitrust issues linked to their merger.

The sale follows a joint Letter of Agreement (“LOA”) signed between BancorpSouth, Cadence, and the US Department of Justice’s Antitrust Division (DOJ) over the merger.

This move involves the sale of seven branches in Aberdeen, West Point, and Starkville, Mississippi, with more than $446m in deposits.

Deposits and loans associated with these branches, and all physical assets will be part of the agreement.

Besides, the banks have agreed to suspend existing non-compete agreements with branch managers and loan officers in Aberdeen, West Point, and Starkville, Mississippi.

They also agreed on not signing new non-compete agreements with these managers and officers.

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Besides, under the agreement, any branch in any of these markets shuttered within three years of the merger’s completed will be sold or leased to an insured depository institution that offers deposit and credit services to small businesses.

“It is expected that The First will assume approximately $450 million in deposits for a premium of $1 million, acquire approximately $42 million in loans at par value, acquire the real estate associated with the seven Cadence branches at their appraised value, and acquire other assets associated with the branches at book value,” The First said.

This deal was signed in April this year, with the merger receiving shareholders’ nod last month.

It awaits the clearance of the Federal Deposit Insurance Corporation (FDIC).

BancorpSouth will become the 10th largest bank, in terms of assets, in its nine-state region in the southeastern US following the merger.

Tupelo, Mississippi-based BancorpSouth has nearly $25.8bn in assets, $21.2bn in deposits and 325 branches across nine states in the southeastern US.

Atlanta, Georgia-based Cadence Bank has 98 branches across the southeastern US, of which 11 are located in Mississippi. The ban has $18.8bn in assets and $16.1bn in deposits.