Baltimore Credit Union to Buy Advance Bank

Municipal Employees Credit Union in Baltimore has agreed to buy Advance Bank.

Under a purchase and assumption deal, the $1.2 billion-asset credit union will buy most of Advance's assets, including two branches, loans, investments, real estate and accrued interest receivables. The credit union will also obtain the bank's deposits, Federal Home Loan Bank advances and accrued interest payable.

Advance, which is also based in Baltimore and has $61 million in assets, will retain certain assets that it will use to fund certain liabilities that will not change hands in the transaction. After the resolution of these liabilities, Advance, which is a minority owned bank, will surrender its charter and distribute any remaining net assets to its members.

The credit union expects to complete the acquisition in the fourth quarter.

Advance earned $196,000 last year, after losing $836,000 a year earlier.

"This is an exciting transaction. Both MECU and Advance are mutual institutions that are owned by their members," John Hamilton, Advance's president, said in a press release. "Our operating philosophy and principals are strikingly similar. We pride ourselves on providing our members with excellent customer service. Both MECU and Advance are strongly dedicated to their employees."

"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," Bert Hash, the credit union's president, said. "We also look forward to expanding our footprint and to having Advance's employees join the MECU family."

In the last 18 months, Wisconsin's Landmark Credit Union acquired Hartford Savings Bank; Massachusetts' GFA Federal Credit Union has bought New Hampshire's Monadnock Savings Bank; and Michigan's United Federal Credit Union purchased Griffith Savings Bank in Indiana.