Trustmark in Jackson, Miss., is using proceeds from a sale-leaseback transaction to offset a hit from selling underperforming securities.
The company disclosed in a regulatory filing that it sold 34 branches in Mississippi, Florida, Tennessee, Alabama and Texas to Blue Owl for $91.7 million, or a $61.5 million pretax gain. Trustmark then signed 15-year leases for the locations at an initial aggregate amount of $6.4 million with 1.5% annual rent increases.
Trustmark then sold $629.9 million of low-yielding securities, using proceeds were used to buy $628 million of higher-yielding securities. The pretax loss offset the pretax gain from the sale-leaseback transaction.