Why Sale-Leasebacks are Popular Again

We discussed deals with Carl Streck at MountainSeed — the buyer on several deals for branches and office properties. We also look at an IntraFi finding on banker concerns.

Happy Monday, Bank Slaters,

I don’t know about you but I am mentally ready to take a vacation. Looking to take a few days in early March — where should I go?

I joined Robin Amlôt on the IBS Intelligence podcast to discuss expectations for banks and credit unions in 2024. I may be biased but I think it is worth a listen!

I’m also finalizing my travel arrangements for ICBA live next month. Really excited to meet up with community bankers from coast to coast and see how the early stages of 2024 are going. If you plan to be there, let me know at info@thebankslate.com.

Let’s talk about sale-leaseback transactions.

Such deals have reemerged as a popular option for banks aiming to pay for initiatives that include losses from selling underwater securities.

Finward Bancorp in Indiana, Sierra Bancorp in California, Plumas Bancorp in Nevada, Citizens Bank in Mississippi and Atlantic Union Bankshares in Virginia have closed deals in recent months, collectively bringing in $123 million in net proceeds. They free up cash and eliminate thousands of dollars in pretax depreciation expenses.