Thank you for sharing!

Your article was successfully shared with the contacts you provided.

WYOMISSING, PA-Leesport Bank agreed to sell six of its branch locations to locally based Carlino Development Group under a sale-leaseback agreement. The terms include a transaction value of $7.8 million.

The lease agreement has a 20-year term and requires the bank subsidiary of Leesport Financial Corp., which is also based here, to pay an initial monthly rental fee of $58,549. The rate is subject to certain yearly fixed adjustments. The expected gain of $780,241 will be amortized over the 20-year lease term.

“The present low interest rate and high property value environment allows us to convert non-earning fixed assets into earning assets,” explains Edward C. Barrett, the bank’s CFO, in a statement. “We expect the transaction to create a pre-tax expense reduction of approximately $175,000 in 2005.”

Carlino is a residential and commercial builder. The sale-leaseback arrangement does not affect the operation of Leesport Bank or any of its affiliates. The bank’s parent is a diversified financial services company that offers banking, insurance, investments, wealth management, trust services, and title insurance services throughout Berks, Southern Schuylkill, Montgomery, Delaware, Bucks, Philadelphia, and Lancaster counties. In addition to Leesport Bank, it operates Madison Bank, Philadelphia Financial Mortgage, the Boothby Group, Essick & Barr Insurance, CrosStates Insurance and Leesport Wealth Management.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.