DECATUR, Ill.–Land of Lincoln Credit Union said it is seeking to acquire Colchester State Bank in Colchester, Ill., approximately 125 miles northwest of its main office.
Terms of the deal were not announced.
The $374-million Land of Lincoln said it expects to close the transaction for the $82-million Colchester State Bank by the end of the second quarter of 2023.
“We are excited for the opportunity to partner with Colchester State Bank and to improve access to our service in McDonough County and other contiguous market areas,” Land of Lincoln CU CEO Robert Ares said in a statement. “Colchester State Bank is a well-managed bank, and we look forward to welcoming their customers and employees into our family."
‘Best Path Forward’
Added Mark Reynolds, chairman, president & CEO of Colchester State Bank, “After carefully considering 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 Credit Union 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.”
As of Sept. 30, 2022, Land of Lincoln Credit Union reported $2.698 million in net income, with net worth of 10.48%. Colchester State Bank reported net income of $654,000 and capital of approximately 10%. It has one location.
As CUToday.info has reported, 2022 marked a record year for credit union acquisitions of banks, with more than two-dozen deals announced.