Maryland's financial regulator and the FDIC have approved thepurchase of Advance Mutual Savings Bank in Baltimore by Municipal Employees Credit Union of Baltimore.

Mark Kaufman, Maryland's commissioner of financial regulation,issued the approval statement Thursday. The FDIC approved theacquisition Wednesday, according to Marianne E. Roche, a Washingtonattorney representing Advance Bank.

The $1.2 billion, 103,642-member MECU received NCUA approvalOct.15 to acquire the $61 million Advance Bank. In addition, theOCC also has approved the acquisition that was initially announcedin April.

Securing all of the regulatory approvals will allow the 3,500Advance Bank members to vote on the acquisition. Previously BertHash, president/CEO of MECU, said the vote is expected to be heldin November.

If Advance Bank members approve the acquisition, it should befinalized at the end of the year.

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.

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 for Advance members to become MECU members.

However, for the one-third of Advance's customers who don'talready qualify to join the cooperative, MECU plans to pay their $5fee to become members of the American Consumer Council, which would make them automaticallyeligible to become MECU members, Hash said.

MECU's first bank acquisition is part of what appears to be anemerging trend 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., acquiringGriffith Savings Bank; the $2.1 billion Landmark Credit Union in New Berlin, Wis., purchasing the $190million Hartford Savings Bank, and the $352 million GFA Federal Credit Union of Gardner, Mass., buying MonadnockCommunity Bank.