BALTIMORE, Md. (11/1/13)--The purchase and assumption of a bank by Municipal Employees CU of Baltimore--which would be the first of its kind in Maryland--has been approved by Maryland Commissioner of Financial Regulation Mark Kaufman.
Kaufman announced Thursday his approval of MECU's purchase and assumption of the assets and liabilities of Advance Bank, a federally chartered mutual savings bank located in Baltimore. The move is still subject to approval by the bank's depositors at a meeting on Nov. 15, said the Baltimore Business Journal (Oct. 31).
Kaufman's office said the proposed transaction is expected to be completed by the end of 2013, subject to any remaining regulatory approvals. The deal's financial terms were not disclosed.
The bank has two branches and total assets of about $54 million. MECU is the third largest credit union in the Baltimore area, with $1.2 billion in assets and nine branches, said the Journal.
In February the bank reached an agreement with the Office of the Comptroller of the Currency to develop a three-year business plan, review loans for possible credit risk and improve its lending procedures. MECU told the Journal the agreement would not impact the merger plan. When the deal was announced, Advance Bank CEO John Hamilton said the bank's customers would benefit by having access to a wider array of services, including smartphone banking and auto loans.
MECU will convert Advance Bank's two branches to MECU branches and keep the bank's 20 employees, the credit union told the Journal.
Maryland's Office of the Commissioner of Financial Regulation oversees state-chartered financial institutions, including credit unions and banks.