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Old Line Bancshares and Bay Bancorp Announce Merger Agreement
Old Line Bancshares Inc., the parent company of Old Line Bank, and Bay Bancorp Inc., the parent company of Bay Bank, FSB, have announced the execution of a merger agreement that provides for the acquisition of Bay Bancorp by Old Line Bancshares for stock in a deal valued at approximately $128.6 million. This amount is subject to change based on the trading prices of Old Line Bancshares common stock and the amount of after-tax income that Bay Bancorp or Bay Bank recognizes from the recent resolution of Bay Bank litigation and the resolution of certain problem loans.
The merger consideration will be paid in newly issued shares of Old Line Bancshares common stock.
Pursuant to the terms of the agreement, Bay Bancorp, with consolidated assets of approximately $646 million as of June 30, will be merged into Old Line Bancshares, an institution with consolidated assets of approximately $2.0 billion.
Immediately after the merger, Bay Bank, a federal savings bank with 11 banking locations, will merge with Old Line Bank, a Maryland trust company with 28 banking offices, with Old Line Bank being the surviving bank. The merger, anticipated to close in the second quarter of 2018, will be Old Line Bancshares’ fifth since 2011.
Craig E. Clark, chairman of the board of directors of Old Line Bancshares, said, “The combination of Old Line Bank and Bay Bank will create the strongest footprint of any Maryland-based independent commercial bank serving the Baltimore/Washington corridor. The combined bank will have assets approaching $3 billion and … will have the second-most banking locations in Maryland of all independent Maryland-based commercial banks.”
Pursuant to the merger agreement, Old Line Bancshares’ board of directors will elect Joseph J. Thomas, Eric D. Hovde and one other mutually-acceptable member of the Bay Bancorp board of directors to serve as directors of Old Line Bancshares and Old Line Bank.

Navy Federal and Fort Meade Community Credit Union Merge
Navy Federal Credit Union and Fort Meade Community Credit Union (FMCCU) merged operations on July 17. FMCCU’s two branches, one located on the Fort Meade Garrison and the other in the town of Odenton, will remain open as Navy Federal branches.
All of the FMCCU employees were offered positions with Navy Federal.
“We are excited to merge with Fort Meade Community Credit Union,” said Nancy DeDona, senior vice president, branch operations, at Navy Federal. “FMCCU shares a passion for serving those who serve, and we believe their membership will benefit from Navy Federal’s experience, digital tools like our app and network of more than 300 branches located around the world.”

MIA Approves Non-Medigap Premium Rates for 2018

The Maryland Insurance Administration (MIA) has announced approved premium rates for both small group and individual health insurance plans to be offered in the state for coverage beginning Jan. 1, 2018. More than 90% of Marylanders are covered by health insurance plans offered through large employers or employers who self-insure, or participate in “grandfathered” plans purchased before March 2010 or in federal plans (such as Medicare, Tricare or federal employee plans). This announcement will not affect their rates.
To assist the state administration in making rate decisions, MIA actuaries reviewed the data, methodologies and assumptions companies used to develop their proposed rates. The administration also considered public comments, along with other relevant factors, in determining whether to approve, modify or deny requested rates.
This year, the MIA also engaged an outside actuarial firm, Oliver Wyman, to conduct an independent, third-party review of CareFirst’s individual non-Medigap market rate submissions.
• Small Group Market Summary: Approximately 257,000 Marylanders are enrolled in small group plans. In the small group market, the health insurance rates will increase by an average of 1.7%. This single-digit increase can be attributed to favorable experience, a competitive marketplace and two decades of reforms in the state small group market.
Four health insurance carriers filed to sell HMO and PPO products in the small group market for 2018: Aetna, CareFirst, Kaiser and UnitedHealthCare (UHC).
• Individual Market Summary: Approximately 243,000 Marylanders are enrolled in individual health plans. Health insurers have sought rate adjustments in response to significant changes in federal regulation and market dynamics over the past few years. Cigna no longer will be offering individual plans in Maryland for 2018.
The average increase will be 33.0% versus the originally filed 43.1%, which can be attributed to: 1) the reinstatement of the health insurer fee; 2) healthy members leaving the market; 3) claims costs rising at about 8% annually; and 4) actual claims experience being higher than expected.
Two carriers will offer plans in this market: CareFirst and Kaiser.
• 2018 Open Enrollment: Open enrollment runs from Nov. 1–Dec. 15, 2017. Marylanders may sign up for new plans or renew existing ones during the open enrollment period.
Summaries of each rate decision are available on the MIA’s rate review website at www.HealthRates.mdinsurance.state.md.us.