Decatur, Ill.-based Land of Lincoln Credit Union will acquire Illinois-based Colchester State Bank next year in an all-cash deal.
The deal is expected to close by the end of the second quarter of 2023. Following the purchase, Land of Lincoln Credit Union will grow to a $460 million, 14-branch institution and expand its footprint into McDonough County, Illinois, and the surrounding counties. According to a press release, customers of the $82 million Colchester State Bank will become credit union members. The bank is expected to liquidate and distribute its remaining assets to its stockholders.
The deal is the latest in a record year of CU-bank buys, according to S&P Global data. The record-setting 14th such deal occurred Dec. 16 when LGE Community CU, Marietta, Georgia, agreed to buy Greater Community Bank, Rome, Georgia. The previous record of 13 was set in 2019, according to S&P Global Market Intelligence data.
Land of Lincoln CEO Robert Ares called the purchase part of Land of Lincoln’s growth strategy, which includes adding markets and branches. “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,” he said. “Colchester State Bank is a well-managed bank, and we look forward to welcoming their customers and employees into our family.”
Mark Reynolds, Colchester State Bank chair, president and CEO, said the decision to merge was made “after carefully considering what is best for our employees, customers, shareholders and the communities we serve. 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.”
McQueen Financial Advisors, Clawson, Mich., is serving as financial adviser, and Luse Gorman, PC, Washington, D.C., is serving as legal counsel to Land of Lincoln Credit Union. Liles Parker, LLC, Washington, D.C., is serving as legal counsel to Colchester State Bank.