A big credit union has struck a deal to buy a small bank in Maryland.
The $1.2 billion Municipal Employees Credit Union of Baltimore announced Thursday it has agreed to buy the $61 million, two-office Advance Bank, also of Baltimore.
The agreement is subject to regulatory approvals and expected to close in the fourth quarter of this year, the federally chartered mutual savings bank and credit union said in the announcement.
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No purchase price was announced, but the deal calls for MECU to acquire all loans, investments, real estate, accrued interest receivables and other banking-related assets, as well as to assume all deposits, Federal Home Loan Bank advances, and accrued interest payable.
"Advance has served its community well for over 50 years and we look forward to building on that relationship and to bringing expanded products, services and convenience to its members," said Bert Hash, CEO of the nine-location, 103,600-member MECU.
"We also look forward to expanding our footprint and to having Advance's employees join the MECU family," Hash said in the announcement.
"Both MECU and Advance are mutual institutions that are owned by their members," said Advance President/CEO John Hamilton. "We are pleased that this new partnership will allow us to continue to serve our customers with the same care and commitment that they have come to expect."
Advance Bank had $6 million less in assets at the end of 2012 than it did at the end of 2011, but made $196,000 last year compared with a loss of $836,000 the year before, according to the Investigative Reporting Workshop at American University.
The acquisition marks continued growth by MECU, which recently merged a small health services credit union in Baltimore.
MECU's purchase continues a new trend of credit unions buying banks that includes acquisitions by Landmark Credit Union in Wisconsin, United Federal Credit Union in Michigan and GFA Federal Credit Union in Massachusetts all within the past year and a half.
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