Sierra Bancorp sells 13 branch properties for $19.9M in sale-leaseback; records $14.3M gain

SIERRA BANCORP

Total sale price $19.9M for 13 California branches; first tranche closed Dec 21, 2023, second tranche expected early Q1 2024.
Proceeds in excess of book value of approx $14.3M; first full-year rent ~$1.7M pre-tax, offset by $0.3M depreciation elimination.
Bank will lease each property for 18 years with renewal options; no branch closures or market exits.
Evaluating potential sale of securities portfolio in loss position to offset some of the gain.

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

SIERRA BANCORP entered into Agreements with Bots Owner LLC and Bots Owner 002 LLC valued at $19.9 million (effective 2023-12-21).

Action: entry
Agreement: asset purchase
Counterparty: Bots Owner LLC and Bots Owner 002 LLC
Value: $19.9 million
Effective: 2023-12-21

Exact text from the filing

On December 21, 2023, Bank of the Sierra (the “Bank”), a wholly owned subsidiary of Sierra Bancorp (the “Company”), entered into two separate agreements for the purchase and sale of real property, to be executed in two tranches (the “Agreements”), with Bots Owner LLC and Bots Owner 002 LLC (collectively the “Purchasers”), each an affiliate of Blue Owl Real Estate Capital LLC

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Source: SEC EDGAR

accession 0001558370-23-020024

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