(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.”
Runyon explained that the Board has carefully considered the
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.