Regal Bancorp reaches agreement with Federal Reserve

Regal Bancorp Inc. of Owings Mills has reached an agreement with the Federal Reserve Bank of Richmond, the regulator announced Tuesday.

The holding company for Regal Bank & Trust agreed not to declare or pay any dividends or incur more debt without the approval of regulators. The company also agreed to submit annual cash-flow projections and quarterly progress reports.

Since last fall, Regal Bank & Trust has been operating under an order by the Federal Deposit Insurance Corp. to shore up its finances.

G. Bradley Sanner, president and CEO, said the agreement was a result of an exam that took place a year and a half ago and should have no impact on customers. The bank's capital position exceeds the highest capital categories and the bank expects to remain profitable through the rest of the fiscal year, he said.

The bank, which has three branches in Baltimore and Carroll counties, had $176.7 million in assets at the end of March, down from $181.4 million for the previous year. Earnings for the quarter in March reached $627,000, compared with a loss of $714,000 for the corresponding quarter the year before.

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