Bay National Corporation, whose namesake bank is under intense regulatory scrutiny, will not hold a stock offering to raise capital, according to a document filed last week with the Securities and Exchange Commission.

The holding company had filed a request with the SEC in December, but it decided not to move forward with the stock sale due to its inability to redeem trust preferred securities by its Delaware trust subsidiary, current market conditions and its capital position, according to the filing.

Federal banking regulators have warned the Lutherville bank that it is "critically undercapitalized" and could be taken over by the end of the summer, according to a regulatory filing in May.

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