BOWIE, Md. and LEXINGTON PARK, Md., Sept. 1, 2010 (GLOBE NEWSWIRE) -- Old Line Bancshares, Inc. (Nasdaq:OLBK), the parent company of Old Line Bank, and Maryland Bankcorp, Inc., the parent company of Maryland Bank & Trust Company, N.A., today jointly announced the execution of a definitive merger agreement (the "Merger Agreement") that provides for the acquisition of Maryland Bankcorp, Inc. by Old Line Bancshares, Inc. for approximately $20 million, or approximately $30.93 per share, in cash and stock, subject to adjustment (the "total consideration").
Pursuant to the terms of the Merger Agreement, Maryland Bankcorp, Inc. will be merged with and into Old Line Bancshares, Inc., with Old Line Bancshares, Inc. surviving the merger (the "Merger"). Immediately after the Merger, Maryland Bank & Trust Company, N.A. ("MB&T") will merge with and into Old Line Bank, with Old Line Bank being the surviving bank.
The Merger, anticipated to close in the first quarter of 2011, is expected to be accretive to Old Line Bancshares, Inc.'s earnings by the end of 2011. The acquisition will increase Old Line Bancshares, Inc.'s total assets by more than $349 million for total assets immediately after closing of approximately $750 million. The acquisition will add ten full service branches to Old Line Bank's existing ten-branch network.James W. Cornelsen, President and Chief Executive Officer of Old Line Bancshares, Inc., said, "We are extremely pleased to be joining with Maryland Bankcorp, an organization that shares our vision of true community banking, and believe the acquisition is a great opportunity to generate increased earnings and to increase returns for the stockholders of both entities, and to significantly increase our presence in Southern Maryland." Craig E. Clark, Chairman of the Board of Directors of Old Line Bancshares, Inc., said, "The combination of Old Line Bank and MB&T will create the sixth-largest independent commercial bank based in Maryland, with assets of more than $750 million and, with 20 full service branches serving five counties, the combined bank will have the fourth-most banking locations of all independent Maryland-based commercial banks. We believe this transaction will benefit both entities' customers, depositors and stockholders."