Mellon Bank Corp. moved yesterday to double its number of Maryland branches to 16 as it announced a deal to buy eight branches in Montgomery and Prince George's counties from Standard Federal Savings Bank of Gaithersburg.
Pittsburgh-based Mellon agreed to pay $12.5 million for the right to take over $312 million in customer deposits at the eight branches and an additional $2.4 million for "fixed assets" that a company spokesman said mostly amounted to the eight branch buildings. No Standard Federal loans were included in the deal.
"We've stated for some time that we're committed to building up our presence in Maryland," Mellon spokesman J. T. Tuskan said. "This strengthens our core branch network in Montgomery and Prince George's counties.
Mellon has about 420 branches overall in Maryland, Pennsylvania and Delaware.
Standard Federal President Emmett R. Garlock said his thrift was moving to cut its reliance on consumer deposits as a source of fundsto make mortgage loans. He said Standard Federal can finance its business more cheaply and with more flexibility by using escrow funds held by its mortgage operation or by borrowing money in the securities markets.
All but one of Mellon's eight current Maryland branches are in metropolitan Washington, Mr. Tuskan said. The other is in Columbia.
Standard Federal will keep 11 Maryland branches, mostly in Washington-area suburbs. The thrift also has a branch in Anne Arundel County and one in Owings Mills, Standard Federal spokesman Howard Schloss said.
Mellon said the boards of directors at both companies have approved the sale.