Firstbanc of Alabama in Talladega has agreed to a sale-leaseback transaction with MountainSeed Real Estate Services.
The parent of the $1 billion-asset First Bank of Alabama will sell four branches for about $7.8 million.
The bank will lease the offices for an initial 15-year term with the option to extend the lease for another 15 years. The rates were not disclosed.
“MountainSeed has been a great partner to the bank for many years and they were first to the table with this sale-leaseback that has been utilized around the country by many institutions,” Chad Jones, First Bank of Alabama’s president and CEO, said in a press release.
“For us, it was an easy choice to turn a non-earning asset into an earning asset when liquidity is key in the eyes of the regulatory agencies,” Jones added.