Finward Bancorp to sell 5 branch properties for $17.2M in sale-leaseback, lease back for 15 years

Finward Bancorp

Purchase price $17.2M for 5 branches; expected closing by third week of Feb 2024.
Net proceeds above book value ~$11.7M; first-year rent ~$1.5M pre-tax, offset by ~$265K depreciation.
Initial 15-year leases with 2% annual rent adjustment; properties in Lake County, IN and Cook County, IL.
Proceeds to be used for general corporate purposes, including potential debt reduction.
No branch closures or market exits planned.

Key facts

Extracted from this filing and checked against the source text.

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

Finward Bancorp entered into Sale Agreement with MountainSeed Real Estate Services, LLC valued at aggregate purchase price of $17.2 million (effective 2024-01-29).

Action: entry
Agreement: asset purchase
Counterparty: MountainSeed Real Estate Services, LLC
Value: aggregate purchase price of $17.2 million
Effective: 2024-01-29

Exact text from the filing

On January 29, 2024, Peoples Bank, an Indiana-chartered commercial bank (the “Bank”) and wholly owned subsidiary of Finward Bancorp (the “ Bancorp ,” “ Finward ,” “ we ,” “ us ,” or “ our ”), entered into an agreement for the purchase and sale of property (the “ Sale Agreement ”), with MountainSeed Real Estate Services, LLC (the “ Buyer ”), a Georgia limited liability company, which provides for the sale to the Buyer of 5 properties owned and operated as branch locations by the Bank (the “ Properties ”) for an aggregate purchase price of $17.2 million

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Finward Bancorp filing history →

Source: SEC EDGAR

accession 0001193125-24-021070

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