Land of Lincoln Credit Union to acquire Colchester State Bank
DECATUR, IL (December 22, 2022) — Land of Lincoln Credit Union (“LLCU”) of Decatur, IL and Colchester State Bank (“Colchester”) of Colchester, IL jointly announced today that they have entered into an agreement whereby LLCU will purchase substantially all of the assets and liabilities of Colchester State Bank in an all-cash transaction.
While the agreement is contingent on obtaining regulatory and Colchester stockholder approvals, the proposed transaction has been unanimously approved by the boards of directors of both institutions. The transaction is expected to close by the end of the second quarter of 2023. Following the completion of the transaction, Colchester will liquidate and distribute its remaining assets to its stockholders. When the purchase is complete, Land of Lincoln Credit Union will have $460 million in assets and increase its footprint into McDonough County, Illinois and the surrounding areas with a total of 14 branches.
Robert Ares, President & CEO of Land of Lincoln stated “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. Colchester State Bank is a well-managed bank, and we look forward to welcoming their customers and employees into our family. 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. Colchester State Bank’s customers will become members of Land of Lincoln with full access to our wide array of products and services.”
Mark Reynolds, Chairman, President & CEO of Colchester commented, “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 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.”
McQueen Financial Advisors is serving as financial advisor and Luse Gorman, PC is serving as legal counsel to Land of Lincoln Credit Union. Liles Parker, LLC is serving as legal counsel to Colchester State Bank.
About Land of Lincoln Credit Union
LLCU was founded in 1947. As a full-service financial institution, LLCU serves over 35,000 members. Membership in LLCU is open to anyone who lives or works in 28 Illinois counties and their immediate family members. LLCU offers 14 convenient locations in 10 cities to best serve the needs of its membership. As a part of the CO-OP shared branching network, members also have access to over 5,000 branches and 30,000 ATM locations nationwide. For more information, visit us online at llcu.org.
About Colchester State Bank
Colchester State Bank, a full-service community bank, has approximately $82 million in total assets, $74 million in deposits and $27 million in loans, and one branch office serving the West Central Illinois communities with exceptional customer service and high-quality products. More information about Colchester State Bank can be found at www.colchesterstatebank.com.
This press release contains forward-looking statements. Forward-looking statements are not historical or current facts and they often include words like “believe,” “expect,” “anticipate,” “estimate,” “intend” or similar terminology. Certain factors that could cause actual results to differ
materially from those expected include delays in completing the transaction, the liquidation, and the dissolution; legislative and regulatory changes that adversely affect the business in which Land of Lincoln Credit Union and Colchester State Bank are engaged; and other factors. Except as
required by law, neither Land of Lincoln Credit Union nor Colchester State Bank undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statement is made.