Land of Lincoln Credit Union in Decatur, Illinois, has agreed to acquire Colchester State Bank in Colchester, Illinois.
Financial terms of the deal were not disclosed. The transaction is expected to close by the end of the second quarter of 2023, the credit union said in a press release.
Robert Ares, president and CEO of Land of Lincoln, said the deal will allow the credit union to improve access to its services in McDonough County and other contiguous market areas.
"The acquisition is part of Land of Lincoln's strategic growth plan, which includes adding branches and markets to better assist our members in Illinois," Ares said in the press release.
Land of Lincoln currently has 13 branches and more than 34,000 members.
Mark Reynolds, chairman, president and CEO of the $82 million-asset Colchester State Bank, said the deal is "what is best for our employees, customers, shareholders and the communities we serve."
"We believe our decision to become a part of Land of Lincoln is the best path forward for our organization. We are excited to bring together two organizations focused on exceptional customer service and high value products, as well as a philosophy of strong community support," he said in the press release.
With $375 million of assets, Land of Lincoln is one of the smallest credit unions to announce a bank acquisition.
The deal was the 16th such deal announced in 2022, tying 2019 as the year with the most credit union deals for banks announced, although a couple of the 2019 transactions ultimately failed to close.
Most recently,
There were 13
The Land of Lincoln deal was also the fourth announced in 2022 that involved a Illinois community bank selling to a credit union — the most of any state.
Following the completion of the transaction, Colchester will liquidate and distribute its remaining assets to its stockholders.
McQueen Financial Advisors served as financial advisor and Luse Gorman, PC acted as legal counsel to Land of Lincoln Credit Union on the transaction. Liles Parker, LLC advised Colchester State Bank.
Land of Lincoln earned $2.7 million in the first nine months of 2022, a 7% increase compared with a year earlier, according to call report data from the National Credit Union Administration.
