News Column

Old Line Bancshares, Inc. Reports Second Quarter Loan Growth of 5.00%

July 21, 2014

BOWIE, Md., July 21, 2014 (GLOBE NEWSWIRE) -- Old Line Bancshares, Inc. (Nasdaq:OLBK), the parent company of Old Line Bank, reported strong growth in loans and deposits for the period ending June 30, 2014. Net loans increased $44.3 million and deposits increased $35.1 million during the six months ending June 30, 2014. Net income available to common stockholders increased $1.9 million to $1.8 million for the three months ended June 30, 2014, compared to net loss of $84 thousand for the three months ended June 30, 2013. Earnings were $0.16 per basic and diluted common share for the three months ended June 30, 2014 compared to a loss of $0.01 per basic and diluted common share for the same period in 2013. The increase in net income is primarily the result of a $1.4 million increase in net interest income, a $697,000 increase in non-interest income and a decrease of $2.0 million in non-interest expense, partially offset by an increase of $1.3 million in the provision for loan losses. Earnings were $3.6 million for the six months ended June 30, 2014, compared with $1.2 million for the same six month period last year. Earnings were $0.33 per basic and diluted common share for the six months ended June 30, 2014 compared to $0.16 per basic and $0.15 per diluted share for the same period last year. The increase in net income is primarily the result of increases of $3.9 million in net interest income and $975,000 in non-interest income, partially offset by an increase of $1.4 million in the provision for loan losses.

James W. Cornelsen, President and Chief Executive Officer of Old Line Bancshares, Inc. stated: "During the quarter we produced 5.0% loan growth and continued to maintain quality in the loan portfolio. We made a strategic move in the securities portfolio which will allow for higher yields and shorter duration while at the same time better positioning ourselves for future loan growth. This quarter we recognized a provision for loan losses of $1.4 million for one commercial loan which has been sold at foreclosure in early July and is awaiting ratification. While this was necessary, it does not represent a change in our future outlook."

"We are pleased to report strong earnings for the second quarter and six months ending June 30, 2014. We remain focused on growing our loan and deposit relationships to enhance revenue while remaining committed to interest rate risk management. The strides we have taken to better serve our customers and shareholders have recently enabled Old Line Bancshares, Inc. to be part of the Russell 2000. We are very proud to be recognized for our performance amongst our peers," according to Cornelsen.

HIGHLIGHTS:

• Net loans increased $42.5 million, or 5.00%, during the three months ended June 30, 2014. Net loans increased $44.3 million, or 5.22%, during the six months ended June 30, 2014, to $893.6 million, compared to $849.3 million at December 31, 2013.

 • We recorded a provision for loan losses of $1.4 million ($.08 per share after tax) related to one commercial/hotel loan.

 • The net interest margin was 4.28% for the quarters ending both June 30, 2014 and 2013, compared to 4.29% for the quarter ended March 31, 2014.

 • Non-performing assets decreased to 1.20% of total assets at June 30, 2014 compared to 1.27% at December 31, 2013.

 • Total assets at June 30, 2014 increased by $26.0 million from December 31, 2013.

 • The second quarter Return on Average Assets (ROAA) and Return on Average Equity (ROAE) were 0.60% and 5.46%, respectively, compared to ROAA and ROAE of (0.03%) and (0.35%), respectively, for the second quarter of 2013.

 • The Return of Average Assets (ROAA) and Return on Average Equity (ROAE) for the six months ended June 30, 2014 were 0.62% and 5.70%, respectively, compared to ROAA and ROAE of 0.26% and 2.89%, respectively, for the six months ending June 30, 2013.

 • We ended the second quarter of 2014 with a book value of $12.23 per common share and a tangible book value of $11.06 per common share compared to $11.71 and $10.50, respectively, at December 31, 2013.

 • We maintained strong liquidity and by all regulatory measures remained "well capitalized".

Total assets at June 30, 2014 increased $26.0 million from December 31, 2013 primarily due to an increase of $44.3 million in loans held for investment, offsetting a decrease of $16.5 million in our investment securities available for sale.

Total net loans increased $44.3 million during the six month period ended June 30, 2014. This increase is the result of continued efforts to originate new loans, primarily in our commercial real estate and construction permanent loan portfolios. During the quarter, we divested higher premium mortgage-backed securities (MBS) and lower yielding, longer duration agencies to re-position the portfolio into well structured, better cash flowing, shorter duration 15 year, agency MBS and also sold $15.9 million of our municipal bonds to reduce interest rate and mark to market risk. The proceeds from the sale of the municipal bonds were used to fund loan growth.

Deposit growth during the six month period was comprised of increases of $8.9 million, or 3.88%, in non-interest bearing deposits and $26.2 million, or 3.51%, in our interest bearing deposits. During the six month period deposit growth is comprised of $44.3 million in organic growth which was offset by an anticipated decline of $9.2 million in high cost interest bearing deposits acquired in the 2013 merger with WSB Holdings, Inc. The increase in our deposit base is due to our enhanced presence in our primary market and surrounding areas resulting from the continued efforts of our cash management team and financial services team.

The increase in net income for the three months ending June 30, 2014 compared to the three months ending June 30, 2013 as noted above was primarily the result of a $1.4 million, or 15.30%, increase in net interest income, a $697,000, or 59.45%, increase in non-interest income and a decrease in non-interest expense of $2.0 million, partially offset by an increase of $1.3 million in our provision for loan losses. The increase in net income for the six months ending June 30, 2014 compared to the six months ending June 30, 2013, as noted above, was primarily the result of a $3.9 million, or 22.99%, increase in net interest income and a $975,000, or 42.70%, increase in non-interest income, partially offset by an increase of $1.4 million in our provision for loan losses. Non-interest expense remained stable for the comparable six month periods.

The increase in our provision for loan losses during the three and six month periods ended June 30, 2014 is primarily due to one commercial/hotel loan that was placed on nonaccrual status during the first quarter of 2014. After receiving an estimated value and exploring various disposition alternatives management determined that an additional provision of $1.4 million was needed to reserve for probable loss on the property. The property was sold at foreclosure, subject to ratification and closing, in July 2014. We are also seeking performance from guarantors on the loan. Net interest income increased for the three and six month periods ending June 30, 2014 as a result of an increase in our average interest earning assets partially offset by a decrease in yield on such assets as compared to the same six month period last year. The increases in non-interest income for the three and six month periods ending June 30, 2014 of $697,000 and $975,000, respectively, were primarily the result of increases in other fees and commissions. Other fees and commissions increased due to letter of credit fees, fees associated with loans sold in the secondary market and recoveries on acquired loans that were previously charged-off prior to our two mergers. As a result of our efforts to restructure our investment portfolio, gain on the sale of investments of $130,000 was recognized for the three month period ending June 30, 2014. The decrease in non-interest expenses for the three month period was primarily the result of a reduction in merger expenses that were recognized in the period ending June 30, 2013 as a result of the WSB Holdings, Inc. acquisition, which was consummated in May 2013, offsetting the increases in other operating expenses and occupancy expense. Increase in other operating expense consists primarily of legal fees, network services and telephone. Salaries and benefits decreased slightly for the three month period ending June 30, 2014 as a result of reductions in staffing levels that were previously inflated by the merger. Salaries and benefits increased for the six month period as a result of severance payments associated with the merger that were recognized in the first quarter of fiscal year 2014.

The net interest margin for the six months ended June 30, 2014 has remained stable as compared to June 30, 2013. Accretion of the fair value positively impacted the yield on loans by an increase of 3 basis points from the first quarter of 2014 and 5 basis points compared to the same six month period last year. The average interest rate on total interest-bearing liabilities decreased to 0.50% for the six months ended June 30, 2014 compared to 0.61% for the six months ended June 30, 2013.

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 has 23 branches located in its primary market area of suburban Maryland (Washington, D.C. suburbs and Southern Maryland) counties of Anne Arundel, Calvert, Charles, Prince George's and St. Mary's. It also targets customers throughout the greater Washington, D.C. metropolitan area.

The statements in this press release that are not historical facts, in particular the statements with respect to loan and deposit growth and enhanced revenue, constitute a "forward-looking statement" as defined by Federal securities laws. 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. 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. Actual results could differ materially from those currently anticipated due to a number of factors, including, but not limited to, deterioration in economic conditions or a slowdown in the recovery in our target markets or nationally, sustained high levels of or increases in the unemployment rate in our target markets, the actions of our competitors and our ability to successfully compete, in particular in new market areas, and changes in laws impacting our ability to collect on outstanding loans or otherwise negatively impact our business, including regulations implemented pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act enacted in July 2010. 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. For further information regarding risks and uncertainties that could affect forward-looking statements Old Line Bancshares, Inc. may make, please refer to the filings made by Old Line Bancshares, Inc. with the U.S. Securities and Exchange Commission available at www.sec.gov.

 Old Line Bancshares, Inc. & Subsidiaries 
 Consolidated Balance Sheets 
           
 June 30,

2014
March 31,

2014
December 31,

2013 (1)
September 30,

2013
June 30,

2013
  (Unaudited) (Unaudited)   (Unaudited) (Unaudited)
 Cash and due from banks   $ 29,887,334  $ 54,197,169  $ 28,316,351  $ 49,957,119  $ 50,689,336
 Interest bearing accounts   30,389  30,383  30,375  30,364  30,352
 Federal funds sold   304,246  178,806  711,574  1,005,491  3,017,257
 Total cash and cash equivalents   30,221,969  54,406,358  29,058,300  50,992,974  53,736,945
 Investment securities available for sale   155,706,684  172,094,347  172,169,776  181,527,632  184,190,791
 Loans held for sale   4,074,911  1,646,330  2,014,711  22,584,750  4,764,595
Loans held for investment, less allowance for loan losses  889,524,786  849,429,721  847,248,590  805,890,567  787,172,298
 Equity securities at cost   4,304,196  4,304,197  5,669,807  5,850,652  3,709,490
 Premises and equipment   34,604,271  34,661,659  35,215,868  35,520,366  35,313,769
 Accrued interest receivable   2,978,470  3,131,042  3,432,924  3,256,311  3,623,274
 Deferred income taxes   19,850,224  20,639,961  21,868,076  21,451,728  23,111,238
 Bank owned life insurance   31,000,380  30,787,554  30,577,187  30,357,357  30,135,483
 Other real estate owned   4,627,465  4,593,154  4,311,342  5,909,260  5,396,654
 Goodwill   7,793,665  7,793,665  7,793,665  7,793,665  6,847,424
 Core deposit intangible   4,846,737  5,058,951  5,287,501  5,518,619  5,749,737
 Other assets   3,732,934  4,390,527  2,575,377  3,059,574  3,332,944
 Total assets   $ 1,193,266,692  $ 1,192,937,466  $ 1,167,223,124  $ 1,179,713,455  $ 1,147,084,642
           
 Deposits           
 Non-interest bearing   $ 237,614,952  $ 234,512,077  $ 228,733,624  $ 223,503,418  $ 213,570,493
 Interest bearing   771,801,936  773,640,266  745,625,862  761,869,410  781,968,601
 Total deposits   1,009,416,888  1,008,152,343  974,359,486  985,372,828  995,539,094
 Short term borrowings   35,769,108  38,193,867  49,530,125  56,204,082  28,818,101
 Long term borrowings   6,043,715  6,071,856  6,093,074  6,118,744  6,142,962
 Accrued interest payable   229,939  241,981  264,807  250,164  259,847
 Accrued pension   5,003,784  4,996,120  4,921,241  4,844,855  4,768,470
 Other liabilities   4,628,544  5,733,491  5,505,073  3,791,019  3,825,204
 Total liabilities   1,061,091,978  1,063,389,658  1,040,673,806  1,056,581,692  1,039,353,678
           
 Stockholders' equity           
 Common stock   107,854  107,854  107,772  107,612  98,202
 Additional paid-in capital   104,820,171  104,748,891  104,622,171  104,408,960  92,145,572
 Retained earnings   27,621,537  26,283,617  24,879,275  20,882,086  19,066,586
 Accumulated other comprehensive income (loss)   (639,502)  (1,871,087)  (3,359,823)  (2,628,710)  (3,946,354)
 Total Old Line Bancshares, Inc. stockholders' equity   131,910,060  129,269,275  126,249,395  122,769,948  107,364,006
 Non-controlling interest   264,654  278,533  299,923  361,815  366,958
 Total stockholders' equity   132,174,714  129,547,808  126,549,318  123,131,763  107,730,964
 Total liabilities and stockholders' equity   $ 1,193,266,692  $ 1,192,937,466  $ 1,167,223,124  $ 1,179,713,455  $ 1,147,084,642
 Shares of basic common stock outstanding   10,785,370  10,785,370  10,777,112  10,761,112  9,820,217
           
 (1) Financial information as of December 31, 2013 has been derived from audited financial statements. 
 
Old Line Bancshares, Inc. & Subsidiaries
Consolidated Statements of Income
               
  Three Months

Ended

June 30,
Three Months

Ended

March 31,
Three Months

Ended

December 31,
Three Months

Ended

September 30,
Three Months

Ended

June 30,
Six Months

Ended

June 30,
Six Months

Ended

June 30,
  2014 2014 2013 (1) 2013 2013 2014 2013
  (Unaudited) (Unaudited)   (Unaudited) (Unaudited) (Unaudited) (Unaudited)
Interest income              
Loans, including fees  $ 10,599,999  $ 10,333,973  $ 11,519,191  $ 11,527,459  $ 9,327,905  $ 20,933,971  $ 17,159,728
Investment securities and other  1,017,039  1,037,897  1,060,493  1,031,015  979,699  2,054,937  1,964,952
Total interest income  11,617,038  11,371,870  12,579,684  12,558,474  10,307,604  22,988,908  19,124,680
Interest expense              
Deposits  856,639  894,303  923,039  970,911  964,955  1,750,942  1,822,094
Borrowed funds  148,918  118,276  122,522  111,728  139,472  267,194  251,959
Total interest expense  1,005,557  1,012,579  1,045,561  1,082,639  1,104,427  2,018,136  2,074,053
Net interest income  10,611,481  10,359,291  11,534,123  11,475,835  9,203,177  20,970,772  17,050,627
Provision for loan losses  1,544,280  269,769  514,190  590,000  200,000  1,814,049  400,000
Net interest income after provision for loan losses  9,067,201  10,089,522  11,019,933  10,885,835  9,003,177  19,156,723  16,650,627
Non-interest income              
Service charges on deposit accounts  493,482  451,596  472,945  466,571  367,674  945,078  668,415
Gain on sales or calls of investment securities  129,911  --  --  --  9,659  129,911  641,088
Gain on sale of stock  --  96,993  --  --  200,641  96,993  --
Earnings on bank owned life insurance  246,371  243,607  252,265  253,894  145,795  489,978  333,869
               
Gains (losses) on disposal of assets  17,919  --  --  --  (19,078)  17,919  (104,639)
Gain on sale of loans  195,829  106,720  3,601,972  236,167  146,565  302,548  146,565
Other fees and commissions  784,622  493,209  852,470  594,324  302,038  1,277,223  695,516
Total non-interest income  1,868,134  1,392,125  5,179,652  1,550,956  1,153,294  3,259,650  2,380,814
Non-interest expense              
Salaries & employee benefits  4,051,407  4,873,634  4,668,944  4,684,407  4,126,567  8,925,041  7,359,245
Occupancy & Equipment  1,436,564  1,586,777  1,513,265  1,556,221  1,214,947  3,022,735  2,283,815
Data processing  312,042  307,160  393,863  459,973  329,878  619,202  568,934
Merger and integration  --  29,167  349,028  143,082  2,786,350  29,167  3,026,835
Core deposit amortization  212,214  228,550  231,119  231,118  198,875  440,764  376,457
(Gains)losses on sales other real estate owned  (79,127)  (203,068)  (210,665)  11,072  770  (282,195)  201,224
OREO expense  112,659  83,066  210,122  159,234  154,908  195,725  469,073
Other operating  2,446,147  2,071,256  2,284,281  2,017,902  1,723,373  4,517,401  3,329,981
Total non-interest expense  8,491,906  8,976,542  9,439,957  9,263,009  10,535,668  17,467,840  17,615,564
               
Income (loss) before income taxes  2,443,429  2,505,105  6,759,628  3,173,782  (379,197)  4,948,533  1,415,877
Income tax (benefit) expense  687,973  690,737  2,393,268  970,510  (283,417)  1,378,711  238,305
Net income (loss)  1,755,456  1,814,368  4,366,360  2,203,272  (95,780)  3,569,822  1,177,572
Less: Net (loss) attributable to the noncontrolling interest  (13,880)  (21,389)  (61,892)  (5,142)  (11,495)  (35,269)  (24,590)
Net income (loss) available to common stockholders  $ 1,769,336  $ 1,835,757  $ 4,428,252  $ 2,208,414  $ (84,285)  $ 3,605,091  $ 1,202,162
Earnings (loss) per basic share  $ 0.16  $ 0.17  $ 0.41  $ 0.22  $ (0.01)  $ 0.33  $ 0.16
Earnings (loss) per diluted share  $ 0.16  $ 0.17  $ 0.41  $ 0.22  $ (0.01)  $ 0.33  $ 0.15
Dividend per common share  $ 0.04  $ 0.04  $ 0.04  $ 0.04  $ 0.04  $ 0.08  $ 0.08
Average number of basic shares  10,785,370  10,780,141  10,768,104  10,004,138  8,505,016  10,782,770  7,681,337
Average number of dilutive shares  10,948,368  10,942,110  10,891,654  10,117,380  8,609,164  10,944,981  7,776,679
               
(1) Financial information as of December 31, 2013 has been derived from audited financial statements.
 
Old Line Bancshares, Inc. & Subsidiaries
Average Balances, Interest and Yields
                     
 6/30/20143/31/201412/31/20139/30/20136/30/2013
 Average

Balance


Yield
Average

Balance


Yield
Average

Balance


Yield
Average

Balance


Yield
Average

Balance


Yield
Assets:                    
Int. Bearing Deposits  $ 4,024,265 0.17%  $ 1,352,504 0.12%  $ 2,903,193 0.11%  $ 2,997,163 0.09%  $ 6,978,382 0.11%
Investment Securities  170,389,632 3.00%  174,564,325 3.06%  188,455,728 2.82%  193,421,563 2.70%  180,559,860 2.81%
Loans  865,944,038 4.99%  851,079,999 5.00%  837,359,182 5.54%  817,877,455 5.67%  721,222,893 5.28%
Allowance for Loan Losses  (5,290,130)    (5,001,250)    (4,609,398)    (4,353,910)    (4,164,025)  
Total Loans Net of allowance  860,653,908 5.02%  846,078,749 5.03%  832,749,784 5.57%  813,523,545 5.71%  717,058,868 5.31%
Total interest-earning assets  1,035,067,805 4.67%  1,021,995,578 4.69%  1,024,108,705 5.05%  1,009,942,271 5.11%  904,597,110 4.77%
Noninterest bearing cash  39,297,001    36,258,104    38,364,347    40,562,522    45,762,911  
Other Assets  109,464,228    110,237,569    111,316,325    113,104,275    85,200,150  
Total Assets  $ 1,183,829,034    $ 1,168,491,251    $ 1,173,789,377    $ 1,163,609,068    $ 1,035,560,171  
                     
Liabilities and Stockholders' Equity                    
                     
Interest-bearing Deposits  $ 768,879,677 0.45%  $ 751,439,481 0.48%  $ 754,128,604 0.49%  $ 770,907,260 0.50%  $ 686,544,106 0.56%
Borrowed Funds  41,102,469 1.45%  51,661,794 0.93%  53,222,290 0.91%  41,022,029 1.08%  41,494,215 1.35%
Total interest-bearing liabilities  809,982,146 0.50%  803,101,275 0.51%  807,350,894 0.51%  811,929,289 0.53%  728,038,321 0.61%
Noninterest bearing deposits  234,063,213    229,229,562    228,810,018    226,431,720    205,050,472  
   1,044,045,359    1,032,330,837    1,036,160,912    1,038,361,009    933,088,793  
                     
Other Liabilities  9,603,037    10,813,815    8,360,917    7,569,553    6,624,502  
Noncontrolling Interest  270,521    285,355    300,800    363,349    369,671  
Stockholder's Equity  129,910,117    125,061,244    128,966,748    117,315,157    95,477,205  
Total Liabilities and Stockholder's Equity  $ 1,183,829,034    $ 1,168,491,251    $ 1,173,789,377    $ 1,163,609,068    $ 1,035,560,171  
                     
Net interest spread   4.17%   4.18%   4.54%   4.58%   4.16%
Net interest income and Net interest margin(1)  $ 11,047,069 4.28%  $ 10,809,169 4.29%  $ 11,986,354 4.64%  $ 11,933,938 4.69%  $ 9,657,000 4.28%
(1) Interest revenue is presented on a fully taxable equivalent (FTE) basis. The FTE basis adjusts for the tax favored status of these types of assets. Management believes providing this information on a FTE basis provides investors with a more accurate picture of our net interest spread and net interest income and we believe it to be the preferred industry measurement of these calculations. See "Reconciliation of Non-GAAP Measures."
(2) Available for sale investment securities are presented at amortized cost.


The accretion of the fair value adjustments positively impacted the yield on loans and increased the net interest margin in each of these three month periods as follows: 

 6/30/20143/31/201412/31/20139/30/20136/30/2013
  Fair Value

Accretion

Dollars
% Impact on

Net Interest

Margin
Fair Value

Accretion

Dollars
% Impact on

Net Interest

Margin
Fair Value

Accretion

Dollars
% Impact on

Net Interest

Margin
Fair Value

Accretion

Dollars
% Impact on

Net Interest

Margin
Fair Value

Accretion

Dollars
% Impact on

Net Interest

Margin
Commercial loans (1)  $ (3,509)  (0.00)%  $ 7,468  0.00%  $ 102  0.00%  $ 14,763  0.01%  $ 38,933  0.02%
Mortgage loans  344,403  0.13  287,526  0.11  1,322,480  0.51  1,221,653  0.48  173,261  0.07
Consumer loans  6,338  0.00  4,635  0.00  7,821  0.00  6,032  0.00  2,876  0.00
Interest bearing deposits  162,452  0.06  129,327  0.05  164,527  0.06  178,556  0.07  85,046  0.05
Total Fair Value Accretion  $ 509,684  0.19%  $ 428,956  0.16%  $ 1,494,930  0.57%  $1,421,004  0.56%  $ 300,116  0.14%
(1) Negative accretion on commercial loans is due to the payoff of loans in prior periods which caused a reduction in credit quality and level yield income on acquired loan portfolio.


Below is a reconciliation of the fully tax equivalent adjustments and the GAAP basis information presented in this report:

 6/30/20143/31/201412/31/20139/30/20136/30/2013
  Net Interest

Income


Yield
Net Interest

Income


Yield
Net Interest

Income


Yield
Net Interest

Income


Yield
Net Interest

Income


Yield
GAAP net interest income  $ 10,611,481  4.11%  $ 10,359,291  4.11%  $ 11,534,123  4.46%  $ 11,475,835  4.56%  $ 9,203,177  4.08%
Tax equivalent adjustment                    
Federal funds sold  --  --  --  --  --  --  --  --  1  0.00
Investment securities  258,980  0.10  281,377  0.11  282,137  0.11  286,755  0.11  284,510  0.13
Loans  176,608  0.07  168,501  0.07  170,094  0.07  171,348  0.07  168,773  0.07
Total tax equivalent adjustment  435,588  0.17  449,878  0.18  452,231  0.18  458,103  0.18  453,284  0.20
Tax equivalent interest yield  $ 11,047,069  4.28%  $ 10,809,169  4.29%  $ 11,986,354  4.64%  $ 11,933,938  4.74%  $ 9,656,461  4.28%
 
Old Line Bancshares, Inc. & Subsidiaries
Selected Loan Information
(Dollars in thousands)
 June 30,

2014
March 31,

2014
December 31,

2013
September 30,

2013
June 30,

2013
Acquired Loans(1)          
Non-accrual(2)  $ 593  $ 861  $ 663  $ --  $ --
Accruing 30-89 days past due  1,478  2,977  3,198  2,985  6,965
Accruing 90 or more days past due(4)  1,271  477  --  2,434  15,251
           
Legacy Loans(3)          
Non-accrual  $ 7,176  $ 7,202  $ 8,156  $ 1,870  $ 1,889
Accruing 30-89 days past due  2,177  1,623  1,574  2,292  2,607
Accruing 90 or more days past due  674  230  2  1,951  --
           
Allowance for loan losses as % of held for investment loans 0.71% 0.57% 0.58% 0.55% 0.54%
Allowance for loan losses as % of legacy loans 0.80% 0.76% 0.78% 0.77% 0.83%
Total non-performing loans as a % of held for investment loans 1.08% 1.56% 1.73% 0.77% 2.18%
Total non-performing assets as a % of total assets 1.20% 1.12% 1.27% 1.03% 1.96%
(1)  Acquired loans represent all loans acquired on April 1, 2011 from MB&T and on May 10, 2013 from WSB. We originally recorded these loans at fair value upon acquisition.
(2)  These loans are loans that are considered non-accrual because they are not paying in conformance with the original contractual agreement. At acquisition, we recorded these loans at fair value. Until the December 31, 2013 quarter, we recognized interest income on these loans through the accretion of the difference between the carrying value of these loans and their expected cash flows. In the fourth quarter of 2013, we are no longer recording interest on these loans that were not purchased as credit impaired.
(3)  Legacy loans represent total loans excluding loans acquired on April 1, 2011 and May 10, 2013.
(4)  Previously reported non-accrual loans have been reclassified due to the accretion of income and are reported on a past due basis for the period ending June 30, 2013.

CONTACT: OLD LINE BANCSHARES, INC. CONTACT: ELISE HUBBARD CHIEF FINANCIAL OFFICER (301) 430-2560

Source: Old Line Bancshares, Inc.


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