Bank sells, leases back 3 properties

The Citizens Bank of Philadelphia has announced it has executed an agreement for the sale-leaseback of three of its properties in Ocean Springs, Hattiesburg, and Starkville.

The properties will be sold for an aggregate cash purchase price of about $11 million, the bank said in a press release this week.

The publicly-traded Citizens (CIZN), founded here in 1908, expects to realize a pre-tax gain of about $4.5 million (after transaction-related expenses), officials said, noting the transaction closed on Jan. 19.

“The properties identified in this transaction fit within the Company’s long-term strategic plan,” said Phillip Branch, chief financial officer. “We sold the branches and immediately leased them back. Operations in those locations will not change one bit. Business as usual.

“The current market conditions, combined with the terms of the leaseback agreement, make this a very positive move for the Company both in the near and long term. This sale only strengthens our balance sheet and allows us to continue to pursue organic growth and future transactions that bolster the Company’s existing value. We do not expect any interruption to our current operations and plan to carry out existing growth plans within our leased space at the facility.

“Furthermore, this transaction provides flexibility and allows us to realize value within the balance sheet and enhance earning assets over time.”

Branch added, “We 100% focused on the continued support of the surrounding communities for many years to come.”

Citizens Holding Company is a one-bank holding company and the parent company of the bank, both headquartered in Philadelphia.

“We sold the branches and immediately leased them back,” Branch said. “Operations in those locations will not change one bit. Business as usual.”