Sat, Apr 20, 2013
Municipal Employees Credit Union of Baltimore, Inc. (“MECU”), and Advance Bank (“Advance”), both headquartered in Baltimore, Maryland, announced today that they have signed a definitive Purchase and Assumption agreement under which MECU will acquire substantially all of the assets and assume substantially all of the liabilities of Advance.
Under the terms of the Agreement, MECU will purchase all loans, investments, real estate, accrued interest receivables, and other banking-related assets of Advance and will assume all deposits, Federal Home Loan Bank advances, and accrued interest payable. Advance will be retaining certain assets that will be used to fund certain liabilities that will not be acquired by MECU in the transaction. After the resolution of these liabilities, Advance will surrender its charter and distribute any remaining net assets to its members pursuant to a plan of dissolution. This acquisition is subject to regulatory approvals and is expected to close in the fourth quarter of 2013.
Established in 1936, MECU is a member-owned not-for-profit financial cooperative committed to providing its members with high quality financial services through sound management and innovation for over 75 years. It represents over 100,000 members, with assets approximately $1.2 billion, and operates nine locations. Formed in 1957, Advance has total assets of approximately $61 million at December 31, 2012, and operates two locations.
John Hamilton, CEO and President of Advance said, “This is an exciting transaction. Both MECU and Advance are mutual institutions that are owned by their members. 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. MECU understands and cares about our community. 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.”
MECU’s CEO, Bert Hash said, “We are equally excited about this transaction and are looking forward to having Advance customers become MECU members. MECU is committed to providing quality financial products and services; and customer-focused value and satisfaction to its members. 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. We also look forward to expanding our footprint and to having Advance’s employees join the MECU family.”
Both CEO’s view this transaction as a continued means of growth. Bert Hash said, “We will continue to invest in the future of our organization. MECU remains strategically focused on providing financial services to our members. Members will mutually benefit from this transaction as we build a stronger platform for the delivery of new products and services and as we focus on new delivery channels in a dynamic banking environment.”
Advance was represented by Barry Taff and Michael Sadow of Silver, Freedman & Taff, L.L.P., Washington DC. MECU was represented by Michael M. Bell, of Howard and Howard, Royal Oak, MI and James R. Brown III of Brown & Brown, Chartered.