Old Line Bank has completed its acquisition of Bay Bank as their parent companies merged to create the third largest bank based in the state.
Old Line Bancshares Inc. acquired Columbia-based Bay Bancorp in a deal valued at $143.1 million, mostly newly issued stock.
The acquisition gives Bowie-based Old Line $2.8 billion in assets and extends its reach in the Baltimore region. After it closes Old Line branches in Hunt Valley and Owings Mills by late July, it will have 37 branches throughout central Maryland that were close to Bay Bank branches.
“This union will add talent to our team and expand our market area,” said James W. Cornelsen, Old Line’s president and CEO, in a statement.
Consolidation has been sweeping through the state’s smaller banks as they strive to remain competitive. Howard Bancorp completed its $163 million acquisition of the parent of First Mariner Bank on March 1, creating a Baltimore bank with $2.1 billion in assets.
Old Line’s acquisition of Bay Bank is its fifth since 2011. It completed an acquisition last year of DCB Bancshares, the parent of Damascus Community Bank in Montgomery County.