Municipal Employees Credit Union of Baltimore, Inc. (MECU), and Advance Bank (Advance) 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.
MECU represents over 100,000 members, with assets approximately $1.2 billion, and operates nine locations. Advance has total assets of approximately $61 million at December 31, 2012, and operates two locations. Both institutions are mutuals.
This is the fourth transaction involving a credit union acquiring a bank in the last two years.
Read the press release.
Keith, your post outlines the facts. Does the ABA take a position on these transactions?
ReplyDeleteHi Sarah:
ReplyDeleteABA does not have an official position.
Personally, I feel this is a business decision and who am I to second guess the board and management at the bank and the credit union.
However, I do believe as a matter of public policy this should be a two-way street.