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BOWIE, Md., April 1, 2011 (GLOBE NEWSWIRE) - Old Line Bancshares,
Inc. (Nasdaq:OLBK), the parent company of Old Line Bank, today announced
the completion of its acquisition of Maryland Bankcorp, Inc., the
parent company of Maryland Bank & Trust Company, N.A. (MB&T).
The transaction creates the sixth largest independent banking company
headquartered in Maryland and traded on a major stock exchange.
"The combination features local management, excellent coverage
with a total of 20 branches across an enhanced footprint, and a promising
growth opportunity as a result of the above average demographics throughout
the five counties in which we operate. We should be well positioned
to build our presence as the premiere community banking organization
along the Eastern side of the corridor between Baltimore and Washington,
and through the rapidly expanding communities and business zones in
Southern Maryland."
"We have now more than doubled in size in terms of total assets,
increased our branch network to 20 facilities from 10, added significant
new talent throughout our company, and importantly, we expect the
transaction to be fully accretive to earnings by the end of 2011,"
said James W. Cornelsen, President and Chief Executive Officer of
Old Line Bancshares, Inc.
The aggregate merger consideration was approximately $18.8 million
and the transaction is valued at approximately $21.0 million and was
funded through a combination of cash and stock. Pursuant to the Merger
Agreement, Old Line Bancshares, Inc. has added Thomas B. Watts, former
Chairman and Chief Executive Officer of Maryland Bankcorp, and G.
Thomas Daugherty, former President of Maryland Bankcorp, to its board
of directors and to the board of directors of Old Line Bank.
Old Line Bancshares, Inc. is the surviving parent entity, and MB&T
has merged with and into Old Line Bank, with Old Line Bank being the
surviving bank.
Danielson Associates, LLC acted as financial adviser to Old Line
Bancshares, Inc., and Ober, Kaler, Grimes & Shriver, P.C. acted
as its legal counsel. Monocacy Financial Advisors, LLC acted as financial
adviser to Maryland Bankcorp, Inc. and Nelson Mullins Riley &
Scarborough LLP acted as its legal counsel.
Old Line Bancshares, Inc. is the parent company of Old Line Bank,
a Maryland chartered commercial bank headquartered in Bowie, Maryland,
approximately 10 miles east of Andrews Air Force Base and 20 miles
east of Washington, D.C. Old Line Bank also operates from a branch
in Bowie, Maryland, two branches in Waldorf, Maryland, one branch
in Annapolis, Maryland, one branch in Crofton, Maryland and five additional
branches in Prince George's County, Maryland. Its primary market area
is the suburban Maryland (Washington, D.C. suburbs) counties of Prince
George's, Anne Arundel, Charles and northern St. Mary's. It also targets
customers throughout the greater Washington, D.C. metropolitan area.
Old Line Bank has had 47 consecutive quarters of profitability.
Maryland Bankcorp, Inc. had been the parent company of MB&T, a national banking association that was headquartered in Lexington Park, Maryland. MB&T was founded over 50 years ago in Lexington Park. Over five decades, MB&T had provided residents, businesses and professionals of St. Mary's, Calvert, Charles and Prince George's counties with banking services by a locally owned and managed community bank. MB&T operated ten full service banking locations and had assets of almost $350 million.
Caution Regarding Forward-Looking Statements
The statements in this press release that are not historical facts,
in particular the statements with respect to growth opportunity, that
Old Line Bancshares, Inc. is "well positioned" to build its "presence
as the premier community banking organization..." and that we expect
the acquisition transaction to be accretive to earnings by the end
of 2011 constitute "forward-looking statements" as defined by Federal
Securities laws. These statements can generally be identified by the
use of forward-looking terminology such as "believes," "expects,"
"intends," "may," "will," "should," "anticipates," "plans" or similar
terminology. Such statements are subject to risks and uncertainties
that could cause actual results to differ materially from future results
expressed or implied by such forward-looking statements. Actual results
could differ materially from those currently anticipated due to a
number of factors, including, but not limited to: (1) the businesses
of Maryland Bankcorp, Inc. may not be integrated successfully or such
integration may be more difficult, time-consuming or costly than expected;
(2) expected revenue synergies and cost savings from the Merger may
not be fully realized or realized within the expected timeframe; (3)
revenues following the Merger may be lower than expected; (4) customer
and employee relationships and business operations may be disrupted
by the Merger; (5) deterioration in economic conditions or a slower
than anticipated recovery in our target markets or nationally; (6)
continued increases in the unemployment rate in our target markets;
(7) changes in interest rates; (8) changes in laws, regulations, policies
and guidelines impacting our ability to collect on outstanding loans
or otherwise negatively impact our business; and (9) other risk factors
detailed from time to time in filings made by Old Line Bancshares,
Inc. with the SEC. Forward-looking statements speak only as of the
date they are made. Old Line Bancshares, Inc. will not update forward-looking
statements to reflect factual assumptions, circumstances or events
that have changed after a forward-looking statement was made.
CONTACT:
OLD LINE BANCSHARES, INC.
CHRISTINE M. RUSH
CHIEF FINANCIAL OFFICER
(301) 430-2544
Source: Old Line Bancshares, Inc.
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