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PRESS RELEASEOLD LINE BANCSHARES, INC.
FOR IMMEDIATE RELEASECONTACT: ELISE HUBBARD
April 15, 2015CHIEF FINANCIAL OFFICER
(301) 430-2560
OLD LINE BANCSHARES, INC. REPORTS $2.8 MILLION IN NET INCOME AVAILABLE TO COMMON STOCKHOLDERS, A 50% INCREASE, FOR THE FIRST QUARTER ENDED MARCH 31, 2015
BOWIE, MD – Old Line Bancshares, Inc. (NASDAQ: OLBK), the parent company of Old Line Bank, reported net income available to common stockholders increased $918,396, or 50.03% to $2.8 million for the three months ended March 31, 2015, compared to net income of $1.8 million for the three months ended March 31, 2014. Earnings were $0.25 per basic and diluted common share for the three months ended March 31, 2015 and $0.17 per basic and diluted common share for the same period in 2014. The increase in net income is primarily the result of a $1.1 million increase in net interest income, a $440 thousand increase in non-interest income and a $285 thousand decrease in non-interest expenses, offsetting an increase of $292 thousand in the provision for loan losses.
Total assets at March 31, 2015 increased by $47.6 million compared to December 31, 2014. Total net loans held-for-investment increased $37.1 million, or 4.01%, during the three month period ended March 31, 2015. Non-performing assets decreased to 0.44% of total assets at March 31, 2015 compared to 0.65% at December 31, 2014.
James W. Cornelsen, President and Chief Executive Officer of Old Line Bancshares, Inc. stated: “We are pleased to report strong earnings for the first quarter of 2015 and look forward to building on this momentum during the remainder of the year. Total net loans held for investment increased $37.1 million in the first quarter and our deposits have increased $35.7 million during the first quarter. Our non-performing assets as a percentage of total assets decreased to 0.44% compared to 0.65% at December 31, 2014. We believe we are in a good position to manage the external challenges the markets and economy will continue to offer. We also believe that the superior level of customer service we offer is widely recognized in our marketplace. Our primary message is that we will continue to build on our solid foundation to better serve our customers, while steadily investing in new growth opportunities that will further increase profitability.”
1st QUARTER HIGHLIGHTS:
· | Net loans held-for-investment increased $37.1 million, or 4.01%, during the three months ended March 31, 2015, to $963.7 million at March 31, 2015, compared to $926.6 million at December 31, 2014, as a result of organic growth within our surrounding market area. Average gross loans increased $49.6 million, or 5.48% to $954.9 million for the period ending March 31, 2015 compared to $905.2 million for the three month period ended December 31, 2014. |
· | Total assets increased $47.6 million, 3.88%, since December 31, 2014. |
· | Net income increased 50.03% to $2.8 million, or $0.25 per basic and diluted share, was recorded for the three month period ending March 31, 2015, compared to net income of $1.8 million, or $0.17 per basic and diluted share, for the first quarter of 2014. |
· | Non-performing assets decreased 60.71% to 0.44% of total assets at March 31, 2015 compared to 1.12% at March 31 2014. Non-performing assets stood at 0.65% at December 31, 2014. |
· | The net interest margin was 4.32% compared to 4.29% for the same period in 2014. Total yield on interest earning assets increased to 4.70% for the three months ending March 31, 2015, compared to 4.69% for the same three month period last year. Interest expense as a percentage of total interest-bearing liabilities decreased slightly to 0.50% for the three months ended March 31, 2015 compared to 0.51% for the same three month period of 2014. |
· | The first quarter Return on Average Assets (ROAA) and Return on Average Equity (ROAE) were 0.89% and 8.27%, respectively, compared to ROAA and ROAE of 0.64% and 5.95%, respectively, for the first quarter of 2014. |
· | Total deposits grew by $35.7 million, or 3.52%, since December 31, 2014. |
· | The first quarter of 2015 ended with a book value of $12.77 per common share and a tangible book value of $11.65 per common share compared to $12.51 and $11.38, respectively, at December 31 2014. |
· | We maintained liquidity and by all regulatory measures remained “well capitalized.” |
On February 25, 2015, Old Line Bancshares, Inc. board of directors approved the repurchase of up to 500,000 shares of its outstanding common stock. As of March 31, 2015, 65,245 shares have been repurchased at an average price of $15.60 per share. The repurchased shares will return to the status of authorized but unissued shares.
Total assets at March 31, 2015 increased $47.6 million from December 31, 2014 primarily due to an increase of $37.1 million in loans held-for-investment and $13.4 million in cash and cash equivalents, offsetting a decrease of $3.3 million in our investment portfolio.
Nonperforming assets, which include non-accrual loans, foreclosed real estate and troubled debt restructured loans, decreased 21 basis points from 0.65% of total assets at December 31, 2014 to 0.44% of total assets at March 31, 2015.
Deposit growth for the three months consisted of an increase in interest bearing deposits of $26.9 million and non-interest bearing deposits of $8.8 million. As compared to March 31, 2014, interest bearing deposits increased $8.08 million, or 1.04% and non-interest bearing deposits increased $35.2 million or 15.02%.
Net interest income increased for the three month period ending March 31, 2015 compared to the same period of 2014 as a result of an increase in the amount of our average interest earning assets, offset by an increase in our average interest bearing liabilities. During the quarter ended March 31, 2015, yield on our average interest earning assets was 4.70% compared to 4.69% for the same three month period of 2014. The net effect of fair value accretion/amortization on acquired loans affects the net interest income. The fair value accretion/amortization is recorded on pay downs during the period recognized. Payoffs during the three months ending March 31, 2015 contributed a 21 basis points increase, as compared to 11 basis points for the three months ending March 31, 2014. The fair value accretion recorded on acquired deposits affects interest expense. The amount of the accretion on such deposits decreased by 4 basis points as compared to the same three month period last year. Average interest bearing liabilities for the three month period ending March 31, 2015 increased $42.5 million compared to the same period of 2014. The average yield on such liabilities slightly decreased to 0.50% for the three months ending March 31, 2015 compared to 0.51% for the three months ending March 31, 2014.
Net interest margin for the three months ended March 31, 2015 increased to 4.32% from 4.29% for the three months ending March 31, 2014. We have been able to maintain our core net interest margin over the past year even though the prolonged low interest rate environment has resulted in downward pressure on asset yields. Our growth in loans continues to result in favorable volume component change and overall change.
Non-interest income increased for the three month period ending March 31, 2015 compared to the same period of 2014 primarily as a result of increases of $248 thousand in gain on sale of loans and $240 thousand in other fees and commissions, offsetting a decrease of $36 thousand in service charges on deposit accounts. The emerging residential mortgage division increased the gain on sale of loans due to the gains recorded on the residential mortgage loans sold in the secondary market. The increase in other fees and commissions is primarily related to increased letter of credit fees and other marketable loan fees. Service charges on deposit accounts decreased as a result of lower overdraft and ATM fees compared to the same three month period last year.
Non-interest expenses decreased for the three month period ending March 31, 2015 compared to the same period of 2014 primarily as a result of decreases in salaries and benefits and occupancy and equipment, partially offset
by an increase in other expenses and the loss on other real estate properties. Salaries and benefits decreased as severance payments were included in the same three month period last year as well as the elimination of salaries associated with four branches that closed effective December 31, 2014. The severance was associated with merger related staff reductions. Occupancy and equipment decreased as a result of the previously mentioned branch closings. Losses on the sale of three other real estate properties during the three months ended March 31, 2015 resulted in a net loss of $135 thousand compared to a net gain of $203 thousand on the sale of two properties for the comparable period last year.
The provision for loan losses increased $292 thousand for the three month period ending March 31, 2015 compared to the same period last year due to the increase in our loan held-for-investment portfolio and an increase in our reserves on specific loans.
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 19 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 new growth opportunities and increased profitability constitute “forward-looking statements” 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.
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Old Line Bancshares, Inc. & Subsidiaries
Consolidated Balance Sheets
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| March 31, |
| December 31, |
| September 30, |
| June 30, |
| March 31, |
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| 2015 |
| 2014 (1) |
| 2014 |
| 2014 |
| 2014 |
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| (Unaudited) |
| (Unaudited) |
| (Unaudited) |
| (Unaudited) |
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Cash and due from banks |
| $ | 37,061,793 |
| $ | 23,572,613 |
| $ | 42,266,194 |
| $ | 29,887,334 |
| $ | 54,197,169 |
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Interest bearing accounts |
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| 1,080,570 |
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| 1,230,864 |
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| 30,396 |
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| 30,389 |
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| 30,383 |
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Federal funds sold |
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| 624,888 |
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| 601,259 |
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| 533,612 |
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| 304,246 |
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| 178,806 |
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Total cash and cash equivalents |
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| 38,767,251 |
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| 25,404,736 |
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| 42,830,202 |
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| 30,221,969 |
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| 54,406,358 |
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Investment securities available for sale |
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| 158,380,719 |
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| 161,680,198 |
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| 163,535,833 |
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| 155,706,684 |
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| 172,094,347 |
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Loans held for sale |
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| 8,692,297 |
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| 4,548,106 |
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| 5,735,282 |
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| 4,074,911 |
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| 1,646,330 |
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Loans held for investment, less allowance for loan losses of $4,636,048 and $4,281,835 for March 31, 2015 and December 31, 2014 |
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| 963,706,538 |
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| 926,573,488 |
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| 883,905,233 |
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| 889,524,786 |
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| 849,429,721 |
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Equity securities at cost |
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| 3,353,096 |
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| 5,811,697 |
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| 4,304,197 |
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| 4,304,196 |
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| 4,304,197 |
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Premises and equipment |
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| 33,874,131 |
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| 34,300,375 |
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| 34,366,258 |
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| 34,604,271 |
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| 34,661,659 |
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Accrued interest receivable |
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| 3,172,615 |
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| 3,218,428 |
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| 3,002,457 |
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| 2,978,470 |
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| 3,131,042 |
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Deferred income taxes |
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| 12,506,347 |
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| 16,106,498 |
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| 19,843,857 |
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| 19,850,224 |
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| 20,639,961 |
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Current income taxes receivable |
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| 1,312,872 |
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| — |
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| — |
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| — |
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| — |
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Bank owned life insurance |
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| 31,643,001 |
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| 31,429,747 |
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| 31,214,396 |
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| 31,000,380 |
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| 30,787,554 |
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Other real estate owned |
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| 1,600,015 |
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| 2,451,920 |
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| 2,699,846 |
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| 4,627,465 |
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| 4,593,154 |
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Goodwill |
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| 7,793,665 |
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| 7,793,665 |
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| 7,793,665 |
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| 7,793,665 |
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| 7,793,665 |
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Core deposit intangible |
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| 4,210,679 |
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| 4,420,796 |
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| 4,633,766 |
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| 4,846,737 |
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| 5,058,951 |
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Other assets |
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| 6,087,688 |
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| 3,779,350 |
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| 4,128,206 |
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| 3,732,934 |
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| 4,390,527 |
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Total assets |
| $ | 1,275,100,914 |
| $ | 1,227,519,004 |
| $ | 1,207,993,198 |
| $ | 1,193,266,692 |
| $ | 1,192,937,466 |
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Deposits |
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Non-interest bearing |
| $ | 269,733,047 |
| $ | 260,913,521 |
| $ | 247,291,192 |
| $ | 237,614,952 |
| $ | 234,512,077 |
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Interest bearing |
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| 781,718,574 |
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| 754,825,885 |
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| 772,344,384 |
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| 771,801,936 |
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| 773,640,266 |
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Total deposits |
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| 1,051,451,621 |
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| 1,015,739,406 |
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| 1,019,635,576 |
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| 1,009,416,888 |
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| 1,008,152,343 |
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Short term borrowings |
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| 71,236,281 |
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| 61,002,889 |
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| 35,558,734 |
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| 35,769,108 |
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| 38,193,867 |
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Long term borrowings |
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| 5,958,485 |
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| 5,987,283 |
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| 6,017,844 |
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| 6,043,715 |
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| 6,071,856 |
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Accrued interest payable |
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| 284,444 |
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| 266,023 |
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| 241,740 |
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| 229,939 |
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| 241,981 |
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Accrued pension |
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| 5,162,732 |
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| 5,095,141 |
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| 5,069,745 |
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| 5,003,784 |
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| 4,996,120 |
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Income taxes payable |
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| — |
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| 485,435 |
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| 3,406,234 |
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| 2,376,461 |
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| 2,988,981 |
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Other liabilities |
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| 3,420,900 |
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| 3,416,190 |
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| 4,557,087 |
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| 2,252,083 |
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| 2,744,510 |
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Total liabilities |
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| 1,137,514,463 |
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| 1,091,992,367 |
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| 1,074,486,960 |
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| 1,061,091,978 |
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| 1,063,389,658 |
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Stockholders' equity |
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Common stock |
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| 107,551 |
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| 108,110 |
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| 107,864 |
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| 107,854 |
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| 107,854 |
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Additional paid-in capital |
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| 104,313,092 |
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| 105,235,646 |
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| 104,900,904 |
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| 104,820,171 |
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| 104,748,891 |
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Retained earnings |
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| 32,281,404 |
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| 30,067,798 |
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| 28,826,765 |
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| 27,621,537 |
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| 26,283,617 |
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Accumulated other comprehensive income (loss) |
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| 630,791 |
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| (147,250) |
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| (589,650) |
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| (639,502) |
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| (1,871,087) |
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Total Old Line Bancshares, Inc. stockholders' equity |
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| 137,332,838 |
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| 135,264,304 |
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| 133,245,883 |
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| 131,910,060 |
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| 129,269,275 |
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Non-controlling interest |
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| 253,613 |
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| 262,333 |
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| 260,355 |
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| 264,654 |
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| 278,533 |
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Total stockholders' equity |
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| 137,586,451 |
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| 135,526,637 |
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| 133,506,238 |
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| 132,174,714 |
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| 129,547,808 |
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Total liabilities and stockholders' equity |
| $ | 1,275,100,914 |
| $ | 1,227,519,004 |
| $ | 1,207,993,198 |
| $ | 1,193,266,692 |
| $ | 1,192,937,466 |
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Shares of basic common stock outstanding |
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| 10,755,017 |
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| 10,810,930 |
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| 10,786,370 |
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| 10,785,370 |
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| 10,785,370 |
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(1) | Financial information as of December 31, 2013 has been derived from audited financial statements. |
Old Line Bancshares, Inc. & Subsidiaries
Consolidated Statements of Income
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| Three Months |
| Three Months |
| Three Months |
| Three Months |
| Three Months |
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| Ended |
| Ended |
| Ended |
| Ended |
| Ended |
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| March 31, |
| December 31, |
| September 30, |
| June 30, |
| March 31, |
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| 2015 |
| 2014 |
| 2014 |
| 2014 |
| 2014 |
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| (Unaudited) |
| (Unaudited) |
| (Unaudited) |
| (Unaudited) |
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Interest income |
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Loans, including fees |
| $ | 11,621,493 |
| $ | 10,556,729 |
| $ | 10,232,684 |
| $ | 10,599,999 |
| $ | 10,333,973 |
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Investment securities and other |
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| 886,084 |
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| 939,602 |
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| 885,324 |
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| 1,017,039 |
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| 1,037,897 |
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Total interest income |
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| 12,507,577 |
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| 11,496,331 |
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| 11,118,008 |
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| 11,617,038 |
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| 11,371,870 |
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Interest expense |
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Deposits |
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| 910,957 |
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| 799,716 |
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| 850,964 |
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| 856,639 |
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| 894,303 |
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Borrowed funds |
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| 134,716 |
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| 119,214 |
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| 111,693 |
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| 148,918 |
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| 118,276 |
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Total interest expense |
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| 1,045,673 |
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| 918,930 |
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| 962,657 |
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| 1,005,557 |
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| 1,012,579 |
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Net interest income |
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| 11,461,904 |
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| 10,577,401 |
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| 10,155,351 |
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| 10,611,481 |
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| 10,359,291 |
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Provision for loan losses |
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| 561,731 |
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| 458,114 |
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| 555,134 |
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| 1,544,280 |
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| 269,769 |
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Net interest income after provision for loan losses |
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| 10,900,173 |
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| 10,119,287 |
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| 9,600,217 |
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| 9,067,201 |
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| 10,089,522 |
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Non-interest income |
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Service charges on deposit accounts |
|
| 415,202 |
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| 475,120 |
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| 483,865 |
|
| 493,482 |
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| 451,596 |
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Gain on sales or calls of investment securities |
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| 60,694 |
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| - |
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| - |
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| 129,911 |
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| - |
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Gain on sale of stock |
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| - |
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| - |
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| - |
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| - |
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| 96,993 |
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Earnings on bank owned life insurance |
|
| 248,384 |
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| 249,967 |
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| 248,259 |
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| 246,371 |
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| 243,607 |
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Gains (losses) on disposal of assets |
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| 19,975 |
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| (48,051) |
|
| - |
|
| 17,919 |
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| - |
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Gain on sale of loans |
|
| 354,650 |
|
| 276,531 |
|
| 224,930 |
|
| 195,829 |
|
| 106,720 |
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Other fees and commissions |
|
| 733,004 |
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| 438,561 |
|
| 348,090 |
|
| 784,622 |
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| 493,209 |
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Total non-interest income |
|
| 1,831,909 |
|
| 1,392,128 |
|
| 1,305,144 |
|
| 1,868,134 |
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| 1,392,125 |
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Non-interest expense |
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|
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|
|
|
|
|
|
|
|
|
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Salaries & employee benefits |
|
| 4,217,370 |
|
| 4,303,832 |
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| 4,602,520 |
|
| 4,051,407 |
|
| 4,873,634 |
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Occupancy & Equipment |
|
| 1,399,877 |
|
| 1,878,052 |
|
| 1,367,808 |
|
| 1,436,564 |
|
| 1,586,777 |
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Data processing |
|
| 352,060 |
|
| 352,956 |
|
| 368,717 |
|
| 312,042 |
|
| 307,160 |
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Merger and integration |
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| - |
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| - |
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| - |
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| - |
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| 29,167 |
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Core deposit amortization |
|
| 210,117 |
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| 212,970 |
|
| 212,970 |
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| 212,214 |
|
| 228,550 |
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(Gains)losses on sales of other real estate owned |
|
| 134,754 |
|
| (155,148) |
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| (260,533) |
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| (79,127) |
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| (203,068) |
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OREO expense |
|
| 120,201 |
|
| 199,094 |
|
| 159,238 |
|
| 112,659 |
|
| 83,066 |
|
Other operating |
|
| 2,257,235 |
|
| 2,257,866 |
|
| 2,078,155 |
|
| 2,446,147 |
|
| 2,071,256 |
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Total non-interest expense |
|
| 8,691,614 |
|
| 9,049,622 |
|
| 8,528,875�� |
|
| 8,491,906 |
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| 8,976,542 |
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Income before income taxes |
|
| 4,040,468 |
|
| 2,461,793 |
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| 2,376,486 |
|
| 2,443,429 |
|
| 2,505,105 |
|
Income tax expense |
|
| 1,295,035 |
|
| 679,154 |
|
| 636,239 |
|
| 687,973 |
|
| 690,737 |
|
Net income |
|
| 2,745,433 |
|
| 1,782,639 |
|
| 1,740,247 |
|
| 1,755,456 |
|
| 1,814,368 |
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Less: Net income (loss) attributable to the noncontrolling interest |
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| (8,720) |
|
| 1,978 |
|
| (4,299) |
|
| (13,880) |
|
| (21,389) |
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Net income available to common stockholders |
| $ | 2,754,153 |
| $ | 1,780,661 |
| $ | 1,744,546 |
| $ | 1,769,336 |
| $ | 1,835,757 |
|
Earnings per basic share |
| $ | 0.25 |
| $ | 0.17 |
| $ | 0.16 |
| $ | 0.16 |
| $ | 0.17 |
|
Earnings per diluted share |
| $ | 0.25 |
| $ | 0.16 |
| $ | 0.16 |
| $ | 0.16 |
| $ | 0.17 |
|
Dividend per common share |
| $ | 0.05 |
| $ | 0.05 |
| $ | 0.05 |
| $ | 0.04 |
| $ | 0.04 |
|
Average number of basic shares |
|
| 10,807,366 |
|
| 10,792,544 |
|
| 10,785,881 |
|
| 10,785,370 |
|
| 10,780,141 |
|
Average number of dilutive shares |
|
| 10,899,030 |
|
| 10,941,002 |
|
| 10,921,555 |
|
| 10,948,368 |
|
| 10,942,110 |
|
(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
|
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| 3/31/2015 |
| 12/31/2014 |
| 9/30/2014 |
| 6/30/2014 |
| 3/31/2014 |
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| Average |
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| Average |
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| Average |
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| Average |
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| Average |
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| Balance |
| Yield |
| Balance |
| Yield |
| Balance |
| Yield |
| Balance |
| Yield |
| Balance |
| Yield |
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Assets: |
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Int. Bearing Deposits |
| $ | 593,602 |
| 0.12 | % | $ | 2,902,672 |
| 0.20 | % | $ | 3,896,273 |
| 0.17 | % | $ | 4,024,265 |
| 0.17 | % | $ | 1,352,504 |
| 0.12 | % |
Investment Securities(2) |
|
| 164,560,281 |
| 2.70 | % |
| 168,069,134 |
| 2.40 | % |
| 159,259,044 |
| 2.94 | % |
| 170,389,632 |
| 3.00 | % |
| 174,564,325 |
| 3.06 | % |
Loans |
|
| 954,873,037 |
| 5.02 | % |
| 905,241,954 |
| 4.78 | % |
| 897,381,372 |
| 4.57 | % |
| 865,944,038 |
| 4.99 | % |
| 851,079,999 |
| 5.00 | % |
Allowance for Loan Losses |
|
| (4,498,086) |
|
|
|
| (2,570,097) |
|
|
|
| (6,422,492) |
|
|
|
| (5,290,130) |
|
|
|
| (5,001,250) |
|
|
|
Total Loans |
|
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|
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|
|
|
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|
|
|
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Net of allowance |
|
| 950,374,951 |
| 5.04 | % |
| 902,671,857 |
| 4.79 | % |
| 890,958,880 |
| 4.60 | % |
| 860,653,908 |
| 5.02 | % |
| 846,078,749 |
| 5.03 | % |
Total interest-earning assets |
|
| 1,115,528,834 |
| 4.70 | % |
| 1,073,643,663 |
| 4.42 | % |
| 1,054,114,197 |
| 4.33 | % |
| 1,035,067,805 |
| 4.67 | % |
| 1,021,995,578 |
| 4.69 | % |
Noninterest bearing cash |
|
| 34,422,919 |
|
|
|
| 38,925,730 |
|
|
|
| 42,071,667 |
|
|
|
| 39,297,001 |
|
|
|
| 36,258,104 |
|
|
|
Other Assets |
|
| 102,782,917 |
|
|
|
| 107,033,944 |
|
|
|
| 109,199,887 |
|
|
|
| 109,464,228 |
|
|
|
| 110,237,569 |
|
|
|
Total Assets |
| $ | 1,252,734,670 |
|
|
| $ | 1,219,603,337 |
|
|
| $ | 1,205,385,751 |
|
|
| $ | 1,183,829,034 |
|
|
| $ | 1,168,491,251 |
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|
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Liabilities and Stockholders' Equity |
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Interest-bearing Deposits |
| $ | 772,838,785 |
| 0.48 | % | $ | 767,241,928 |
| 0.41 | % | $ | 776,032,831 |
| 0.44 | % | $ | 768,879,677 |
| 0.45 | % | $ | 751,439,481 |
| 0.48 | % |
Borrowed Funds |
|
| 72,721,100 |
| 0.75 | % |
| 50,442,530 |
| 0.94 | % |
| 39,031,131 |
| 1.14 | % |
| 41,102,469 |
| 1.45 | % |
| 51,661,794 |
| 0.93 | % |
Total interest-bearing liabilities |
|
| 845,559,885 |
| 0.50 | % |
| 817,684,458 |
| 0.45 | % |
| 815,063,962 |
| 0.47 | % |
| 809,982,146 |
| 0.50 | % |
| 803,101,275 |
| 0.51 | % |
Noninterest bearing deposits |
|
| 262,926,103 |
|
|
|
| 255,002,560 |
|
|
|
| 247,346,466 |
|
|
|
| 234,063,213 |
|
|
|
| 229,229,562 |
|
|
|
|
|
| 1,108,485,988 |
|
|
|
| 1,072,687,018 |
|
|
|
| 1,062,410,428 |
|
|
|
| 1,044,045,359 |
|
|
|
| 1,032,330,837 |
|
|
|
Other Liabilities |
|
| 9,009,800 |
|
|
|
| 11,057,397 |
|
|
|
| 10,072,582 |
|
|
|
| 9,603,037 |
|
|
|
| 10,813,815 |
|
|
|
Noncontrolling Interest |
|
| 258,240 |
|
|
|
| 261,545 |
|
|
|
| 262,435 |
|
|
|
| 270,521 |
|
|
|
| 285,355.00 |
|
|
|
Stockholder's Equity |
|
| 134,980,642 |
|
|
|
| 135,597,377 |
|
|
|
| 132,640,306 |
|
|
|
| 129,910,117 |
|
|
|
| 125,061,244 |
|
|
|
Total Liabilities and |
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|
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|
|
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Stockholder's Equity |
| $ | 1,252,734,670 |
|
|
| $ | 1,219,603,337 |
|
|
| $ | 1,205,385,751 |
|
|
| $ | 1,183,829,034 |
|
|
| $ | 1,168,491,251 |
|
|
|
Net interest spread |
|
|
|
| 4.20 | % |
|
|
| 3.97 | % |
|
|
| 3.86 | % |
|
|
| 4.17 | % |
|
|
| 4.18 | % |
Net interest income and |
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Net interest margin(1) |
| $ | 11,891,497 |
| 4.32 | % | $ | 11,034,119 |
| 4.08 | % | $ | 10,545,444 |
| 3.97 | % | $ | 11,047,069 |
| 4.28 | % | $ | 10,809,169 |
| 4.29 | % |
(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 resulted in a positive impact in the yield on loans for the three months ending March 31, 2015 and 2014. Fair value accretion for the current quarter and prior four quarter are as follows:
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|
| 3/31/2015 |
| 12/31/2014 |
| 9/30/2014 |
| 6/30/2014 |
| 3/31/2014 |
| |||||||||||||||
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| Fair Value |
| % Impact on |
| Fair Value |
| % Impact on |
| Fair Value |
| % Impact on |
| Fair Value |
| % Impact on |
| Fair Value |
| % Impact on |
| |||||
|
| Accretion |
| Net Interest |
| Accretion |
| Net Interest |
| Accretion |
| Net Interest |
| Accretion |
| Net Interest |
| Accretion |
| Net Interest |
| |||||
|
| Dollars |
| Margin |
| Dollars |
| Margin |
| Dollars |
| Margin |
| Dollars |
| Margin |
| Dollars |
| Margin |
| |||||
Commercial loans (1) |
| $ | 8,690 |
| — | % | $ | (969) |
| — | % | $ | (16,219) |
| (0.01) | % | $ | (3,509) |
| — | % | $ | 7,468 |
| — | % |
Mortgage loans (1) |
|
| 589,266 |
| 0.21 |
|
| 24,779 |
| 0.01 |
|
| (278,619) |
| (0.10) |
|
| 344,403 |
| 0.13 |
|
| 287,526 |
| 0.11 |
|
Consumer loans |
|
| 11,390 |
| — |
|
| 6,686 |
| — |
|
| 4,209 |
| — |
|
| 6,338 |
| — |
|
| 4,635 |
| — |
|
Interest bearing deposits |
|
| 37,263 |
| 0.01 |
|
| 110,503 |
| 0.04 |
|
| 131,837 |
| 0.05 |
|
| 162,452 |
| 0.06 |
|
| 129,327 |
| 0.05 |
|
Total Fair Value Accretion (Amortization) |
| $ | 646,609 |
| 0.22 | % | $ | 140,999 |
| 0.05 | % | $ | (158,792) |
| (0.06) | % | $ | 509,684 |
| 0.19 | % | $ | 428,956 |
| 0.16 | % |
(1) | Negative accretion on commercial and mortgage loans is due to the early payoff of loans which caused a reduction in fair value income on acquired loan portfolio. |
Below is a reconciliation of the fully tax equivalent adjustments and the GAAP basis information presented in this report:
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|
| 3/31/2015 |
| 12/31/2014 |
| 9/30/2014 |
| 6/30/2014 |
| 3/31/2014 |
| |||||||||||||||
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| Net Interest |
|
|
| Net Interest |
|
|
| Net Interest |
|
|
| Net Interest |
|
|
| Net Interest |
|
|
| |||||
|
| Income |
| Yield |
| Income |
| Yield |
| Income |
| Yield |
| Income |
| Yield |
| Income |
| Yield |
| |||||
GAAP net interest income |
|
| 11,461,904 |
| 4.17 | % |
| 10,577,401 |
| 3.91 | % | $ | 10,155,351 |
| 3.82 | % | $ | 10,611,481 |
| 4.11 | % | $ | 10,359,291 |
| 4.11 | % |
Tax equivalent adjustment |
|
|
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|
|
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|
|
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|
Federal funds sold |
|
| 1 |
| — |
|
| 1 |
| — |
|
| - |
| - |
|
|
|
| - |
|
| - |
| - |
|
Investment securities |
|
| 200,498 |
| 0.07 |
|
| 343,280 |
| 0.13 |
|
| 294,770 |
| 0.11 |
|
| 258,980 |
| 0.10 |
|
| 281,377 |
| 0.11 |
|
Loans |
|
| 229,094 |
| 0.08 |
|
| 113,437 |
| 0.04 |
|
| 95,323 |
| 0.04 |
|
| 176,608 |
| 0.07 |
|
| 168,501 |
| 0.07 |
|
Total tax equivalent adjustment |
|
| 429,593 |
| 0.15 |
|
| 456,718 |
| 0.17 |
|
| 390,093 |
| 0.15 |
|
| 435,588 |
| 0.17 |
|
| 449,878 |
| 0.18 |
|
Tax equivalent interest yield |
| $ | 11,891,497 |
| 4.32 | % | $ | 11,034,119 |
| 4.08 | % | $ | 10,545,444 |
| 3.97 | % | $ | 11,047,069 |
| 4.28 | % | $ | 10,809,169 |
| 4.29 | % |
Old Line Bancshares, Inc. & Subsidiaries
Selected Loan Information
(Dollars in thousands)
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|
| March 31, |
| December 31, |
| September 30, |
| June 30, |
| March 31, |
| |||||
|
| 2015 |
| 2014 |
| 2014 |
| 2014 |
| 2014 |
| |||||
Acquired Loans(1) |
|
|
|
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|
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|
|
|
|
|
|
|
|
Period End Loan Balance |
| $ | 171,527 |
| $ | 173,659 |
| $ | 186,896 |
| $ | 203,211 |
| $ | 210,832 |
|
Deferred Costs |
|
| — |
|
| 10 |
|
| 9 |
|
| 11 |
|
| 1 |
|
Accruing |
|
| 165,956 |
|
| 167,704 |
|
| 183,094 |
|
| 199,859 |
|
| 206,517 |
|
Non-accrual(2) |
|
| 2,518 |
|
| 1,958 |
|
| 1,291 |
|
| 593 |
|
| 861 |
|
Accruing 30-89 days past due |
|
| 3,053 |
|
| 3,687 |
|
| 1,569 |
|
| 1,478 |
|
| 2,977 |
|
Accruing 90 or more days past due |
|
| — |
|
| 310 |
|
| 942 |
|
| 1,271 |
|
| 477 |
|
Other real estate owned |
|
| 1,125 |
|
| 1,977 |
|
| 2,225 |
|
| 3,826 |
|
| 3,784 |
|
Net charge offs (recoveries) |
|
| (16) |
|
| 52 |
|
| 316 |
|
| 106 |
|
| 148 |
|
Legacy Loans(3) |
|
|
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|
|
|
|
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Period End Loan Balance |
| $ | 795,532 |
| $ | 749,968 |
| $ | 699,833 |
| $ | 691,619 |
| $ | 642,482 |
|
Deferred Costs |
|
| 1,283 |
|
| 1,283 |
|
| 1,048 |
|
| 1,039 |
|
| 998 |
|
Accruing |
|
| 793,576 |
|
| 746,376 |
|
| 692,854 |
|
| 681,592 |
|
| 633,461 |
|
Non-accrual |
|
| 1,106 |
|
| 3,249 |
|
| 3,263 |
|
| 7,176 |
|
| 7,202 |
|
Accruing 30-89 days past due |
|
| 851 |
|
| 343 |
|
| 3,411 |
|
| 2,177 |
|
| 1,601 |
|
Accruing 90 or more days past due |
|
| - |
|
| - |
|
| 305 |
|
| 674 |
|
| 218 |
|
Other real estate owned |
|
| 475 |
|
| 475 |
|
| 475 |
|
| 802 |
|
| 809 |
|
Net charge offs (recoveries) |
|
| 224 |
|
| (4) |
|
| 2,691 |
|
| (4) |
|
| 169 |
|
Allowance for loan losses as % of held for investment loans |
|
| 0.48 | % |
| 0.46 | % |
| 0.44 | % |
| 0.71 | % |
| 0.57 | % |
Allowance for loan losses as % of legacy loans |
|
| 0.59 | % |
| 0.57 | % |
| 0.55 | % |
| 0.80 | % |
| 0.76 | % |
Total non-performing loans as a % of held for investment loans |
|
| 0.37 | % |
| 0.56 | % |
| 0.96 | % |
| 1.08 | % |
| 1.56 | % |
Total non-performing assets as a % of total assets |
|
| 0.44 | % |
| 0.65 | % |
| 0.70 | % |
| 1.20 | % |
| 1.12 | % |
(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. |
