(March 17, 2006)
TrustBank, a $130 million asset bank headquartered in Olney, Illinois, announced today its intent to expand its operations into Arizona. Bruce Runyon, TrustBank’s President and Chief Executive Officer, said that the bank has signed an agreement to acquire a small bank branch located in Tempe, Arizona. Tempe is located in the fast-growing Phoenix metropolitan area and is the home of Arizona State University.
The Tempe branch is currently owned by Bank of the Southwest, a Phoenix-based Arizona state bank, and is part of a larger transaction in which Bank of the Southwest will combine its operations with another Arizona bank. Although specific financial terms were not disclosed, TrustBank will acquire in a cash transaction certain assets and deposits of the Tempe branch and will also take over the leased space currently occupied by Bank of the Southwest.
In announcing the agreement, Mr. Runyon said, “We have a forward-thinking Board of Directors who is continuously looking at ways to grow our operations and maximize returns for our stockholders. The Arizona economy is growing at an impressive rate, and the Board believes that we have the business plan and key people in place to take advantage of the opportunities presented in this extremely attractive market. The Board also believes that the stable, consistent earnings generated by TrustBank’s southern Illinois operations can support its Arizona operations as the bank builds its business in that region.”
Mr. Runyon explained that the Board has carefully considered the distance separating the branch locations, but has ultimately concluded that technology advancements will allow the Board to closely monitor and supervise the business in all locations. He also assured customers that there will be no loss of focus. “We will continue our commitment to Quality Customer Service in our current locations - as well as expand this community banking business philosophy to our newest branch,” he said.
The completion of the branch acquisition is subject to several conditions, including the receipt of regulatory approvals and other customary conditions. The transaction is expected to close in the second quarter of this year.
TrustBank is an Illinois state bank and a wholly-owned subsidiary of Rich Land Bancorp, Inc. TrustBank’s main office is located in Olney, Illinois, and it has two branch locations, one in Olney and the other in Cisne, Illinois. At December 31, 2005, Rich Land Bancorp had total consolidated assets and stockholders’ equity of approximately $131 million and $16 million, respectively.