Decatur, Ill.-based Land of Lincoln CU struck its second whole-bank deal in less than five months, even as overall M&A activity remains muted.

This was only the second bank acquisition announced by a credit union in 2023, down from 2022's record 16 announcements, according to S&P Global Market Intelligence data.

Double-dipping in bankland

On April 28, Land of Lincoln CU announced it would purchase Nokomis Savings Bank, which reported $27.9 million in assets as of March 31. The Nokomis, Ill.-based lender is the smallest bank to be targeted by a credit union since March 2018, when Bend, Ore.-based Mid Oregon FCU announced it would acquire substantially all of High Desert Bank's deposits and banking assets.

On March 21, Nokomis received a cease and desist consent order from the Federal Deposit Insurance Corp. that requires the bank to maintain a leverage ratio of at least 10%, among other provisions.

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On Dec. 21, 2022, Land of Lincoln CU announced it would acquire virtually all liabilities and assets of Illinois-based Colchester State Bank in a deal it expects to close this quarter.

Since the start of 2015, Illinois banks have now been targeted in 11 credit union acquisitions, not including terminated deals, making the state second only to Florida and its 15 announcements. Recent history, as well as a much larger number of potential small bank targets, suggest that Illinois has the potential to overtake Florida as the most targeted state in the not-too-distant future. Since the beginning of 2022, credit unions have announced five deals for Illinois-based banks compared to three for Florida.