As per the terms of the definitive purchase and assumption agreement, the credit union (CU) will acquire all loans, investments, real estate, accrued interest receivables, and other banking-related assets of the bank.
It will also assume all deposits, Federal Home Loan Bank advances, and accrued interest payable. The transaction is subject to concerned regulatory approval and is likely to complete during the fourth quarter of 2013.
Commenting on the deal, Advance Bank CEO and president John Hamilton said that the partnership will allow the bank to continue to serve its customers with the same commitment.
MECU CEO Bert Hash said that the transaction will enable the firm to improve banking experience for its members by delivering quality financial products and services.
Following completion of the transaction, the bank’s employee will join the CU, which manages $1.2bn in assets.
Advance was represented by Barry Taff and Michael Sadow of Silver, Freedman & Taff, Washington DC, while MECU was represented by Michael M Bell, of Howard and Howard, Royal Oak, MI and James R Brown III of Brown & Brown, Chartered.
