Bowie-based Old Line Bank's parent will establish a foothold in the Baltimore suburbs with the announcement of a merger with the parent of Regal Bank and Trust.
Regal, headquarted in Owings Mills and with assets of $133.7 million, has branches in Owings Mills, Hunt Valley and Westminster. All Regal-branded banks will become Old Line banks, it was announced Wednesday.
The $5.6 million cash and stock deal also will pay $1 million in cash to the holders of Regal Bancorp preferred stock.
Federal regulators ordered Regal in 2011 to create written plans for maintaining capital levels and reducing "substandard" assets. The order was lifted in February 2014.
Old Line has 19 branches in Prince George's, Charles, Calvert, St. Mary's and southern Anne Arundel counties. It has $1.3 billion in assets.
The deal is pending approval by Regal's stockholders and bank regulators and is expected to close at the end of this year or early 2016.