A federal judge has given preliminary approval to a proposed $210 million settlement in a shareholder class action accusing Wilmington Trust of hiding hundreds of millions of dollars in bad loans from regulators and investors.

U.S. District Judge Eduardo C. Robreno on Tuesday said the terms of the agreement, struck in May, appeared adequate to resolve investor claims against the century-old institution. Under the settlement, Wilmington Trust would pay $200 million, and auditing firm KPMG would pay $10 million.