First Bancshares in Hattiesburg, Miss., has agreed to buy seven branches in northeast Mississippi from Cadence Bancorp. in Houston.
The $18.7 billion-asset Cadence is selling the branches as part of its pending sale to BancorpSouth Bank in Tupelo, Miss. The branch sale resulted from a joint letter of agreement among BancorpSouth, Cadence and the Department of Justice.
The $5.5 billion-asset First will assume about $450 million of deposits for a premium of $1 million. It will also buy about $42 million of loans at par value, the real estate at their appraised value, and other assets at book value.
The branch acquisition is expected to close in the first quarter.
“We are excited about growing our company’s presence in our home state of Mississippi with the addition of seven locations in Starkville, West Point, and Aberdeen,” Hoppy Cole, First’s president and CEO, said in the release.
“This expansion furthers our strategic vision of building a high performing regional bank,” Cole added. “We look forward to welcoming our new team members and clients, and we are thrilled with the opportunities for growth that this presents.”
Stephens advised First.