Municipal Employees Credit Union of Baltimore President/CEOBert Hash expects to receive final state and federal regulatoryapprovals soon that would allow MECU to complete its previouslyannounced purchase of Advance Mutual Savings Bank also ofBaltimore.

The $1.2 billion, 103,642-member MECU received NCUA's approvalTuesday to acquire the $61 million, 3,500-member Advance Bank, saidNCUA spokesperson John Fairbanks.

In addition, Hash said, OCC also has approved the acquisitionthat was initially announced in April.

No purchase price was released, but the deal calls for MECU toacquire all loans, investments, real estate, accrued interestreceivables and other banking-related assets, as well as to assumeall deposits, Federal Home Loan Bank advances, and accrued interestpayable.

“We are waiting to hear from the state (Maryland Department ofLabor, Licensing and Regulation) and the FDIC,” said Hash. “We hopethat the approvals will be forthcoming and it's been indicated thatthey are.”

Members of the Advance Bank also are required to approve theacquisition. That member vote may be held during the month ofNovember.

Once the purchase is completed, 19 Advance Bank employees willcontinue to work for MECU, Hash said. Advance's two branches willcontinue to operate as well.

Hash said more than two-thirds of Advance's customers eitherlive or work in the city of Baltimore, which makes themautomatically eligible for MECU membership. MECU plans to pay the$5 membership fee to become members. For the one-third of Advance'scustomers who don't qualify to join the cooperative, MECU plans topay their $5 fee to become members of the American Consumer Council, which would make them automaticallyeligible to become members of MECU, Hash said.

MECU's first bank acquisition appears to represent an emergingtrend in the credit union industry.

In September, the $255 million, 23,000-member Five Star Credit Union in Dothan, Ala., signed a definitiveagreement to purchase the $21 million Flint River National Bank inCamilla, Ga.

Other similar deals that have been finalized over the past twoyears include the $1.5 billion United Federal Credit Union in St. Joseph, Mich., acquiredGriffith Savings Bank, the $2.1 billion Landmark Credit Union in New Berlin, Wis., purchased the $190million Hartford Savings Bank, and the $352 million GFA Federal Credit Union of Gardner, Mass., bought MonadnockCommunity Bank.