Rendering of the Truliant sign to be erected this summer atop a former bank office tower in Winston-Salem. (Photo courtesy of Truliant).

Truliant Federal Credit Union announced Tuesday it had turned its Winston-Salem headquarters, operations center and four area branches into cash to pursue bigger dreams.

Two local newspapers, the Winston-Salem Journal and the Triad Business Journal, reported the sale was for $89.5 million based on local government property records.

President/CEO Todd Hall said sale-leaseback deal frees up equity in real estate to redeploy into high-priority initiatives, without needing to explore alternative funding sources.

“This agreement allows Truliant to strategically add to our strong net worth while elevating our capacity to serve our members,”Hall said. “As a fast- growing credit union, it provides us with additional liquidity to use for anticipated transformative and impactful projects.”

Todd Hall

The credit union declined to say more about the nature of these “transformative and impactful projects.”

However, it might be useful to to recall that Harborstone Credit Union of Washington State ($2.9 billion in assets, 106,577 members) sold half its branches Feb. 19 in a sale-leaseback deal valued at $41.8 million including closing costs as it prepared to buy a bank for $77.6 million.

The sale closed Sept. 2, which impacted the third-quarter, when it lost $3.6 million (ROA -0.56%) after earning $19.5 million (ROA 3.61%) in the second quarter, according to NCUA data pulled from Callahan’s Peer Suite.

Truliant partnered with CU Capital Management, a credit union service organization, or CUSO, for the transaction. The credit union said it “secured favorable long-term lease rates” on the properties in the agreement, which included its:

  • Headquarters: 3200 Truliant Way, Winston-Salem
  • Operations Center: 3320 Silas Creek Parkway, Winston-Salem
  • Burlington Branch: 2564 Kirkwood Drive, Burlington, five miles southwest of Winston-Salem
  • High Point Branch: 4006 Mendenhall Oaks Parkway, High Point, 20 miles southeast of Winston-Salem
  • Clemmons Branch: 4100 Clemmons Road, Clemmons, 10 miles southwest of Winston-Salem
  • University Branch: 1915 Back Creek Drive, Charlotte.

Truliant said it has no plans to relocate or close any branches or facilities and will maintain full operational control of the properties. NCUA data shows Truliant had 40 branches on June 30, three more than a year earlier.

Truliant earned $15.7 million in the third quarter, or 1.2% ROA, up from 0.62% a year earlier and up from 1.13% in the second quarter.

Contact Jim DuPlessis at JDuPlessis@cutimes.com.

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