Old Line Bancshares
October 25, 2012
Mr. Amite Pande
Accounting Branch Chief
Securities and Exchange Commission
Division of Corporation Finance
Washington, D.C. 20549
Re: Old Line Bancshares, Inc.
Form 10-K for the period ended December 31, 2011
Filed March 30, 2012
Response dated October 9, 2012
File No. 000-50345
Dear Mr. Pande:
We are in receipt of your letter dated October 12, 2012 providing comments on the supplemental response for Old Line Bancshares, Inc. (“Bancshares”). Our responses are set forth below and are keyed to the Staff’s comment letter. Each response is preceded by the Staff’s comments as numbered in the Staff’s letter. Bancshares’ filings beginning with its Form 10-Q for the quarter ended September 30, 2012 will include disclosures that are consistent with the disclosures provided below.
December 31, 2011 Form 10-K
| 1. | We note your response to comment 1 in your letter dated October 9, 2012 and your proposed disclosure on page 10 of your letter dated September 12, 2012. The proposed disclosure presents information based on the requirements in ASC 310-10-50-11B.h. This guidance requires you to disclose the recorded investment in financing receivables based on impairment methodology (i.e.) ASC 450-20, ASC 310-10-35-11 or ASC 310-30). Based on your response to comment 1, it is unclear where you have disclosed the recorded investment in loans acquired with deteriorated credit quality accounted for under ASC 310-30 which appears to total $14,329,955 at June 30, 2012. Please revise your disclosure in future filings to clearly disclose these loans. |
1525 Pointer Ridge Place, Bowie, MD 20716
301-430-2500·FAX: (301) 430-2599
Member FDIC
1
RESPONSE: We will comply with the staff’s comment by including the following disclosures in future filings in the loan footnote:
Major classifications of loans are as follows:
| June 30, 2012 | December 31, 2011 | |||||||||||||||||||||||
| Legacy | Acquired | Total | Legacy | Acquired | Total | |||||||||||||||||||
| Real estate | ||||||||||||||||||||||||
| Commercial | $ | 246,557,664 | $ | 71,215,773 | $ | 317,773,437 | $ | 200,955,448 | $ | 72,145,634 | $ | 273,101,082 | ||||||||||||
| Construction | 47,142,055 | 4,745,568 | 51,887,623 | 42,665,407 | 8,997,131 | 51,662,538 | ||||||||||||||||||
| Residential | 36,365,627 | 58,771,320 | 95,136,947 | 31,083,835 | 65,639,873 | 96,723,708 | ||||||||||||||||||
| Commercial | 84,083,140 | 14,788,537 | 98,871,677 | 90,795,904 | 16,329,991 | 107,125,895 | ||||||||||||||||||
| Consumer | 11,258,094 | 1,494,288 | 12,752,382 | 11,652,628 | 2,021,397 | 13,674,025 | ||||||||||||||||||
| 425,406,580 | 151,015,486 | 576,422,066 | 377,153,222 | 165,134,026 | 542,287,248 | |||||||||||||||||||
| Allowance for loan losses | (3,641,340 | ) | (468,121 | ) | (4,109,461 | ) | (3,693,636 | ) | (47,635 | ) | (3,741,271 | ) | ||||||||||||
| Deferred loan costs, net | 833,526 | - | 833,526 | 751,689 | - | 751,689 | ||||||||||||||||||
| $ | 422,598,766 | $ | 150,547,365 | $ | 573,146,131 | $ | 374,211,275 | $ | 165,086,391 | $ | 539,297,666 | |||||||||||||
2
We charge off loans that management has identified as losses. We consider suggestions from our external loan review firm and bank examiners when determining which loans to charge off. We automatically charge off consumer loan accounts based on regulatory requirements. The following table outlines the allocation of allowance for loan losses by risk rating. We have not allocated any portion of the allowance to loan losses for acquired loans except to the extent that we no longer expect to receive the projected cash flows.
| June 30, 2012 | Account Balance | Allocation of Allowance for Loan Losses | ||||||||||||||||||||||
| Risk Rating | Legacy | Acquired | Total | Legacy | Acquired | |||||||||||||||||||
| Pass (1-4) | $ | 407,558,795 | $ | 140,768,645 | $ | 548,327,440 | $ | 3,107,688 | $ | - | $ | 3,107,688 | ||||||||||||
| Special Mention (5) | 12,293,486 | 1,957,630 | 14,251,116 | 276,163 | - | 276,163 | ||||||||||||||||||
| Substandard (6) | 5,554,299 | 8,289,211 | 13,843,510 | 257,489 | 468,121 | 725,610 | ||||||||||||||||||
| Doubtful (7) | - | - | - | - | - | - | ||||||||||||||||||
| Loss (8) | - | - | - | - | - | - | ||||||||||||||||||
| Total | $ | 425,406,580 | $ | 151,015,486 | $ | 576,422,066 | $ | 3,641,340 | $ | 468,121 | $ | 4,109,461 | ||||||||||||
| December 31, 2011 | Account Balance | Allocation of Allowance for Loan Losses | ||||||||||||||||||||||
| Risk Rating | Legacy | Acquired | Total | Legacy | Acquired | |||||||||||||||||||
| Pass (1-4) | $ | 362,692,415 | $ | 154,318,106 | $ | 517,010,521 | $ | 3,219,376 | $ | - | $ | 3,219,376 | ||||||||||||
| Special Mention (5) | 8,982,637 | 2,107,707 | 11,090,344 | 272,606 | 47,635 | 320,241 | ||||||||||||||||||
| Substandard (6) | 5,478,169 | 8,708,214 | 14,186,383 | 201,654 | - | 201,654 | ||||||||||||||||||
| Doubtful (7) | - | - | - | - | - | - | ||||||||||||||||||
| Loss (8) | - | - | - | - | - | - | ||||||||||||||||||
| Total | $ | 377,153,221 | $ | 165,134,027 | $ | 542,287,248 | $ | 3,693,636 | $ | 47,635 | $ | 3,741,271 | ||||||||||||
3
The following table details activity in the allowance for loan losses by portfolio segment for the years ended December 31, 2011 and the six-month period ended June 30, 2012. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. During the periods ended June 30, 2012 and December 31, 2011, the allowance for loan losses related to loans acquired with deteriorated credit quality and determined under ASC 310-30 was $0 and $47,635, respectively.
| June 30, 2012 | Real Estate | Commercial | Boats | Other Consumer | Total | |||||||||||||||
| Beginning balance | $ | 2,123,068 | $ | 922,310 | $ | 565,240 | $ | 130,653 | $ | 3,741,271 | ||||||||||
| Provision for loan losses | 723,590 | (198,102 | ) | (271,065 | ) | 27,456 | 281,879 | |||||||||||||
Provision for loan losses for loans loans acquired with deteriorated credit quality | 358,000 | 110,121 | - | - | 468,121 | |||||||||||||||
| Recoveries | 12,975 | 31,933 | - | 48,667 | 93,575 | |||||||||||||||
| 3,217,633 | 866,262 | 294,175 | 206,776 | 4,584,846 | ||||||||||||||||
| Loans charged off | (324,486 | ) | (87,691 | ) | - | (63,208 | ) | (475,385 | ) | |||||||||||
| Ending Balance | $ | 2,893,147 | $ | 778,571 | $ | 294,175 | $ | 143,568 | $ | 4,109,461 | ||||||||||
| Amount allocated to: | ||||||||||||||||||||
| Legacy Loans: | ||||||||||||||||||||
| Individally evaluted for impairment | $ | 257,489 | $ | - | $ | - | $ | - | $ | 257,489 | ||||||||||
Collectively evaluted for impairment | 2,277,658 | 668,450 | 294,175 | 143,568 | 3,383,851 | |||||||||||||||
| Acquired Loans: | ||||||||||||||||||||
| Individally evaluted for impairment | 358,000 | 110,121 | - | - | 468,121 | |||||||||||||||
| Ending balance | $ | 2,893,147 | $ | 778,571 | $ | 294,175 | $ | 143,568 | $ | 4,109,461 | ||||||||||
| December 31, 2011 | Real Estate | Commercial | Boats | Other Consumer | Total | |||||||||||||||
| Beginning balance | $ | 1,748,122 | $ | 417,198 | $ | 294,723 | $ | 8,433 | $ | 2,468,476 | ||||||||||
| Provision for loan losses | 967,036 | 337,007 | 317,778 | 130,544 | 1,752,365 | |||||||||||||||
Provision for loan losses for loans loans acquired with deteriorated credit quality | - | 47,635 | - | - | 47,635 | |||||||||||||||
| Recoveries | 13,701 | 154,523 | - | 66,834 | 235,058 | |||||||||||||||
| 2,728,859 | 956,363 | 612,501 | 205,811 | 4,503,534 | ||||||||||||||||
| Loans charged off | (605,791 | ) | (34,053 | ) | (47,261 | ) | (75,158 | ) | (762,263 | ) | ||||||||||
| Ending Balance | $ | 2,123,068 | $ | 922,310 | $ | 565,240 | $ | 130,653 | $ | 3,741,271 | ||||||||||
| Amount allocated to: | ||||||||||||||||||||
| Legacy Loans: | ||||||||||||||||||||
| Individally evaluted for impairment | $ | 175,117 | $ | 89,019 | $ | 70,000 | $ | - | $ | 334,136 | ||||||||||
Collectively evaluated for impairment | 1,947,951 | 785,656 | 495,240 | 130,653 | 3,359,500 | |||||||||||||||
| Acquired Loans: | ||||||||||||||||||||
| Individally evaluted for impairment | - | 47,635 | - | - | 47,635 | |||||||||||||||
| Ending balance | $ | 2,123,068 | $ | 922,310 | $ | 565,240 | $ | 130,653 | $ | 3,741,271 | ||||||||||
4
We individually evaluate all legacy substandard loans risk rated six, certain legacy special mention loans risk rated five and all legacy TDRs, for impairment. We individually evaluate all acquired loans that we risk rated substandard six subsequent to the acquisition, certain acquired special mention loans risk rated five and all acquired TDRs for impairment. We also evaluate all loans acquired and recorded at fair value under ASC 310-30 for impairment. Our recorded investment in loans as of June 30, 2012 and December 31, 2011 related to each balance in the allowance for possible loan losses by portfolio segment and disaggregated on the basis of our impairment methodology was as follows:
| June 30, 2012 | Real Estate | Commercial | Boats | Other Consumer | Total | |||||||||||||||
| Legacy loans: | ||||||||||||||||||||
Individually evaluated for impairment with specific reserve | $ | 964,100 | $ | - | $ | - | $ | - | $ | 964,100 | ||||||||||
Individually evaluated for impairment without specific reserve | 2,743,889 | 1,846,310 | - | - | 4,590,199 | |||||||||||||||
Collectively evaluated for impairment with reserve | 326,357,357 | 82,236,830 | 8,243,260 | 3,014,834 | 419,852,281 | |||||||||||||||
| Acquired loans: | ||||||||||||||||||||
Individually evaluated for impairment with specific reserve subsequent to acquisition (ASC 310-20) | 716,000 | 220,243 | - | - | 936,243 | |||||||||||||||
Individually evaluated for impairment without specific reserve (ASC 310-30 at acquisition) | 14,329,955 | - | - | - | 14,329,955 | |||||||||||||||
Collectively evaluated for impairment without reserve (ASC 310-20 at acquisition) | 119,686,706 | 14,568,294 | - | 1,494,288 | 135,749,288 | |||||||||||||||
| Ending balance | $ | 464,798,007 | $ | 98,871,677 | $ | 8,243,260 | $ | 4,509,122 | $ | 576,422,066 | ||||||||||
5
| December 31, 2011 | Real Estate | Commercial | Boats | Other Consumer | Total | |||||||||||||||
| Legacy loans: | ||||||||||||||||||||
Individually evaluated for impairment with specific reserve | $ | 5,924,354 | $ | 89,019 | $ | 142,671 | $ | - | $ | 6,156,044 | ||||||||||
Individually evaluated for impairment without specific reserve | 1,720,458 | 1,887,986 | - | - | 3,608,444 | |||||||||||||||
Collectively evaluated for impairment with reserve | 267,059,878 | 88,818,899 | 8,717,775 | 2,792,182 | 367,388,734 | |||||||||||||||
| Acquired loans: | ||||||||||||||||||||
Individually evaluated for impairment with specific reserve (ASC 310-30) | - | 47,635 | - | - | 47,635 | |||||||||||||||
Individually evaluated for impairment without specific reserve (ASC 310-20) | 14,830,285 | 1,460,185 | - | - | 16,290,470 | |||||||||||||||
Collectively evaluated for impairment without reserve ASC 310-20) | 131,952,352 | 14,822,172 | - | 2,021,397 | 148,795,921 | |||||||||||||||
| Ending balance | $ | 421,487,327 | $ | 107,125,896 | $ | 8,860,446 | $ | 4,813,579 | $ | 542,287,248 | ||||||||||
6
| 2. | We note your response to comments 2 and 3 in your letter dated October 9, 2012 and your proposed disclosures. The disclosure requirements in ASC 310-10-50-15a require you to disclose the recorded investment in impaired loans and the total unpaid principal balance of impaired loans. The FASB Master Glossary defines recorded investment as the amount of the investment in a loan, which is not net of a valuation allowance, but which does reflect any direct write-down of the investment. Please revise your disclosure in future filings to separately disclose the recorded investment in impaired loans and the unpaid principal balance of impaired loans. Additionally, please revise your disclosure in future filings to include a total impaired line item or to clearly disclose that your impaired loans are composed of non-performing loans and troubled debt restructurings. |
RESPONSE: We will comply with the staff’s comment and include the charts outlined below:
| Age Analysis of Past Due Financing Receivables (Loans) | ||||||||||||||||||||||||
| June 30, 2012 | December 31, 2011 | |||||||||||||||||||||||
| Legacy | Acquired | Total | Legacy | Acquired | Total | |||||||||||||||||||
| Current | $ | 420,820,568 | $ | 144,507,768 | $ | 565,328,336 | $ | 375,126,930 | $ | 159,711,725 | $ | 534,838,655 | ||||||||||||
| Accruing past due loans: | ||||||||||||||||||||||||
| 30-59 days past due | ||||||||||||||||||||||||
| Real estate | 1,470,732 | 425,107 | 1,895,839 | 421,805 | 474,651 | 896,456 | ||||||||||||||||||
| Commercial | 439,768 | 237,115 | 676,883 | - | - | - | ||||||||||||||||||
| Consumer | - | 42,124 | 42,124 | - | 22,698 | 22,698 | ||||||||||||||||||
| Total 30-59 days past due | 1,910,500 | 704,346 | 2,614,846 | 421,805 | 497,349 | 919,154 | ||||||||||||||||||
| 60-89 days past due | ||||||||||||||||||||||||
| Real estate | 888,719 | - | 888,719 | 311,762 | 338,431 | 650,193 | ||||||||||||||||||
| Commercial | - | 20,993 | 20,993 | 11,043 | - | 11,043 | ||||||||||||||||||
| Consumer | - | 699 | 699 | - | 3,494 | 3,494 | ||||||||||||||||||
| Total 60-89 days past due | 888,719 | 21,692 | 910,411 | 322,805 | 341,925 | 664,730 | ||||||||||||||||||
| 90 or more days past due | ||||||||||||||||||||||||
| Consumer | - | 940,072 | 940,072 | 34,370 | - | 34,370 | ||||||||||||||||||
| Total accruing past due loans | 2,799,219 | 1,666,110 | 4,465,329 | 778,980 | 839,274 | 1,618,254 | ||||||||||||||||||
Recorded Investment Non-accruing past due loans 90 or more days past due: | ||||||||||||||||||||||||
| Real estate: | ||||||||||||||||||||||||
| Commercial | 817,456 | 2,431,806 | 3,249,262 | - | 2,288,900 | 2,288,900 | ||||||||||||||||||
| Construction | 969,337 | 850,000 | 1,819,337 | 1,169,337 | 1,184,146 | 2,353,483 | ||||||||||||||||||
| Residential | - | 1,300,661 | 1,300,661 | - | 1,019,942 | 1,019,942 | ||||||||||||||||||
| Commercial | - | 259,141 | 259,141 | 77,975 | 90,039 | 168,014 | ||||||||||||||||||
| Consumer | - | - | - | - | - | - | ||||||||||||||||||
Total Recorded Investment Non-accruing past due loans 90 or more days past due: | 1,786,793 | 4,841,608 | 6,628,401 | 1,247,312 | 4,583,027 | 5,830,339 | ||||||||||||||||||
Total Financing Receivables (Loans) | 425,406,580 | 151,015,486 | 576,422,066 | 377,153,222 | 165,134,026 | 542,287,248 | ||||||||||||||||||
7
| Impaired Loans | ||||||||||||||||
| For the six months ended June 30, 2012 | ||||||||||||||||
| Legacy | Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | ||||||||||||
| With no related allowance recorded: | ||||||||||||||||
| Real Estate | ||||||||||||||||
| Commercial | $ | 352,478 | $ | 352,478 | $ | - | $ | 352,478 | ||||||||
| Construction | 969,337 | 1,616,317 | - | 969,337 | ||||||||||||
| Residential | - | - | - | - | ||||||||||||
| Commercial | - | - | - | - | ||||||||||||
| Consumer | - | - | - | 47,557 | ||||||||||||
| With an allowance recorded: | ||||||||||||||||
| Real Estate | ||||||||||||||||
| Commercial | 464,978 | 464,978 | 232,489 | 464,978 | ||||||||||||
| Construction | - | - | - | - | ||||||||||||
| Residential | 499,122 | 499,122 | 25,000 | 499,122 | ||||||||||||
| Commercial | - | - | - | - | ||||||||||||
| Consumer | - | - | - | - | ||||||||||||
| Total legacy impaired | 2,285,915 | 2,932,895 | 257,489 | 2,333,472 | ||||||||||||
Acquired (1) | ||||||||||||||||
| With no related allowance recorded: | ||||||||||||||||
| Real Estate | ||||||||||||||||
| Commercial | 1,715,806 | 4,924,834 | - | 1,726,435 | ||||||||||||
| Construction | 850,000 | 4,294,266 | - | 1,015,929 | ||||||||||||
| Residential | 1,453,509 | 3,047,080 | - | 1,328,138 | ||||||||||||
| Commercial | 38,898 | 174,747 | - | 260,018 | ||||||||||||
| Consumer | 442 | 442 | - | 781 | ||||||||||||
| With an allowance recorded: | ||||||||||||||||
| Real Estate | ||||||||||||||||
| Commercial | 716,000 | 716,000 | 358,000 | 716,000 | ||||||||||||
| Construction | - | - | - | - | ||||||||||||
| Residential | - | - | - | - | ||||||||||||
| Commercial | 220,243 | 220,243 | 110,121 | 220,243 | ||||||||||||
| Consumer | - | - | - | - | ||||||||||||
| Total acquired impaired | 4,994,898 | 13,377,612 | 468,121 | 5,267,544 | ||||||||||||
| Total all impaired | $ | 7,280,813 | $ | 16,310,507 | $ | 725,610 | $ | 7,601,016 | ||||||||
| (1) | Generally accepted accounting principles require that we record acquired loans at fair value which includes a discount for loans with credit impairment. These loans are not performing according to their contractual terms and meet our definition of an impaired loan. The discounts that arise from recording these loans at fair value were due to credit quality. Although we do not accrue interest income at the contractual rate on these loans, we may accrete these discounts to interest income as a result of pre-payments that exceeds our cash flow expectations or payment in full of amounts due even though we classify them as non-accrual. |
We consider all non-performing loans and TDRs impaired. We do not recognize interest income on non-performing loans during the time period that the loans are non-performing on either a cash or accrual basis. We only recognize interest income on non-performing loans when we receive payment in full for all amounts due of all contractually required principal and interest and the loan is current with its contractual terms. The accrued interest on impaired loans was immaterial.
8
| Loans on Non-accrual Status | ||||||||||||||||||||||||||||||||
| June 30, 2012 | December 31, 2011 | |||||||||||||||||||||||||||||||
# of Borrowers | Unpaid Principal Balance | Recorded Investment | Interest Not Accrued | # of Borrowers | Unpaid Principal Balance | Recorded Investment | Interest Not Accrued | |||||||||||||||||||||||||
| Legacy | ||||||||||||||||||||||||||||||||
| Real Estate | ||||||||||||||||||||||||||||||||
| Commercial | 2 | $ | 817,456 | $ | 817,456 | $ | 46,627 | - | $ | - | $ | - | $ | - | ||||||||||||||||||
| Construction | 1 | 1,616,317 | 969,337 | 267,641 | 1 | 1,616,317 | 1,169,337 | 212,484 | ||||||||||||||||||||||||
| Residential | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
| Commercial | - | - | - | - | 1 | 77,975 | 77,975 | 1,735 | ||||||||||||||||||||||||
| Consumer | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
| Total non-accrual loans | 3 | 2,433,773 | 1,786,793 | 314,268 | 2 | 1,694,292 | 1,247,312 | 214,219 | ||||||||||||||||||||||||
Acquired (1) | ||||||||||||||||||||||||||||||||
| Real Estate | ||||||||||||||||||||||||||||||||
| Commercial | 7 | 5,640,834 | 2,431,806 | 870,081 | 7 | 6,417,444 | 2,288,900 | 1,164,630 | ||||||||||||||||||||||||
| Construction | 3 | 4,294,266 | 850,000 | 705,281 | 2 | 2,815,452 | 1,184,146 | 255,560 | ||||||||||||||||||||||||
| Residential | 6 | 2,894,232 | 1,300,661 | 388,346 | 4 | 2,606,151 | 1,019,942 | 241,093 | ||||||||||||||||||||||||
| Commercial | 3 | 394,990 | 259,141 | 51,468 | 4 | 327,414 | 90,039 | 33,041 | ||||||||||||||||||||||||
| Consumer | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
| Total non-accrual loans | 19 | 13,224,322 | 4,841,608 | 2,015,176 | 17 | 12,166,461 | 4,583,027 | 1,694,324 | ||||||||||||||||||||||||
Total all non-accural loans | 22 | $ | 15,658,095 | $ | 6,628,401 | $ | 2,329,444 | 19 | $ | 13,860,753 | $ | 5,830,339 | $ | 1,908,543 | ||||||||||||||||||
| (1) Generally accepted accounting principles require that we record acquired loans at fair value which includes a discount for loans with credit impairment. These loans are not performing according to their contractual terms and meet our definition of a non-performing loan. The discounts that arise from recording these loans at fair value were due to credit quality. Although we do not accrue interest income at the contractual rate on these loans, we may accrete these discounts to interest income as a result of pre-payments that exceed our cash flow expectations or payment in full of amounts due even though we classify them as non-accrual. |
(2) We do not recognize interest income on non-performing loans during the time period that the loans are non-performing on either a cash or accrual basis. We only recognize interest income on non-performing loans when we receive payment in full for all amounts due of all contractually required principal and interest and the loan is current with its contractual terms.
| Troubled Debt Restructurings | ||||||||||||||||||||||||
| June 30, 2012 | December 31, 2011 | |||||||||||||||||||||||
Accruing Troubled Debt Restructurings | # of Contracts | Pre-Modification Outstanding Recorded Investment | Post Modification Outstanding Recorded Investment | # of Contracts | Pre-Modification Outstanding Recorded Investment | Post Modification Outstanding Recorded Investment | ||||||||||||||||||
| Legacy | ||||||||||||||||||||||||
| Real Estate | 1 | $ | 499,122 | $ | 499,122 | 3 | $ | 5,037,879 | $ | 5,037,879 | ||||||||||||||
| Consumer | - | - | - | 1 | 142,671 | 142,671 | ||||||||||||||||||
| Acquired | ||||||||||||||||||||||||
| Real Estate | 1 | 152,848 | 152,848 | 1 | 152,848 | 152,848 | ||||||||||||||||||
| Consumer | 1 | 1,346 | 442 | 1 | 1,346 | 1,240 | ||||||||||||||||||
| Total Troubled Debt Restructurings | 3 | $ | 653,316 | $ | 652,412 | 6 | $ | 5,334,744 | $ | 5,334,638 | ||||||||||||||
We have no non-accruing troubled debt restructurings.
9
Bancshares acknowledges that:
| · | Bancshares is responsible for the adequacy and accuracy of the disclosure in the filing; |
| · | staff comments or changes to disclosure in response to staff comments do not foreclose the Commission from taking any action with respect to the filing; and |
| · | Bancshares may not assert staff comments as a defense in any proceeding initiated by the Commission or any person under the federal securities laws of the United States. |
We would be happy to discuss this response with you in order to address any further questions or concerns. Please call me at (301) 430-2544 to arrange a discussion.
Sincerely,
/s/Christine M. Rush
Christine M. Rush
Executive Vice President &
Chief Financial Officer
10