Exhibit 99.1
PRESS RELEASEOLD LINE BANCSHARES, INC.
FOR IMMEDIATE RELEASECONTACT: ELISE HUBBARD
July 16, 2015CHIEF FINANCIAL OFFICER
(301) 430-2560
OLD LINE BANCSHARES, INC. REPORTS $2.6 MILLION IN NET INCOME AVAILABLE TO COMMON STOCKHOLDERS, A 47% INCREASE, FOR THE QUARTER ENDED JUNE 30, 2015
BOWIE, MD – Old Line Bancshares, Inc. (NASDAQ: OLBK), the parent company of Old Line Bank, reported net income available to common stockholders increased $832 thousand, or 47.00% to $2.6 million for the three months ended June 30, 2015, compared to net income of $1.8 million for the three months ended June 30, 2014. Earnings were $0.25 per basic and $0.24 per diluted common share for the three months ended June 30, 2015, compared to $0.16 per basic and diluted common share for the same period in 2014. The increase in net income is primarily the result of a $560 thousand increase in net interest income and a $1.5 million decrease in the provision for loan losses, partially offset by a decrease of $323 thousand in non-interest income and a $342 thousand increase in non-interest expenses. Net income was $5.4 million for the six months ended June 30, 2015, compared with $3.6 million for the same six month period last year, an increase of $1.8 million, or 48.54%. Earnings were $0.50 per basic and $0.49 per diluted common share for the six months ended June 30, 2015 compared to $0.33 per basic and diluted common share for the same period last year. The increase in net income is primarily the result of increases of $1.7 million in net interest income and $57 thousand in non-interest income and decreases of $1.2 million in the provision for loan losses and $3 thousand in non-interest expenses.
Total assets at June 30, 2015 increased by $84.5 million compared to December 31, 2014. Total net loans held-for-investment increased $44.9 million, or 4.66%, during the three month period ended June 30, 2015 and $82.0 million, or 8.86%, during the six month period ended June 30, 2015. Non-performing assets decreased to 0.38% of total assets at June 30, 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 second quarter and six months ending June 30, 2015. We had strong loan growth of 4.66% for the quarter and 8.86% for the six months ending June 30, 2015. Our deposits grew 3.13% and 6.75% for the three and six month periods ending June 30, 2015 to $1.1 billion at June 30, 2015 from $1.0 billion at December 31, 2014. Our goal is to continue to build our loan and deposit portfolios while maintaining asset quality and improving operating efficiency.”
HIGHLIGHTS:
| · | | Net loans held-for-investment increased $44.9 million, or 4.66%, and $82.0 million, or 8.86%, for the three and six months ended June 30, 2015, to $1.0 billion at June 30, 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 $48.0 million, or 5.03%, to $1.0 billion for the three month period ending June 30, 2015 compared to $954.9 million during the three months ended March 31, 2015. Average gross loans for the six month period increased $97.7 million, or 10.79%, to $1.0 billion compared to $905.2 million at December 31, 2014. |
| · | | Total assets increased $84.5 million, or 6.89%, since December 31, 2014. |
| · | | Non-performing assets decreased 65.36% to 0.38% of total assets at June 30, 2015 compared to 0.65% at December 31, 2014 and 1.20% at June 30, 2014. |
| · | | The net interest margin during the three months ended June 30, 2015 was 4.01% compared to 4.28% for the same period in 2014. Total yield on interest earning assets decreased to 4.42% for the three months ending June 30, 2015, compared to 4.67% for the same three month period last year. Interest expense as a percentage of total interest-bearing liabilities was 0.54% for the three months ended June 30, 2015 compared to 0.50% for the same three month period of 2014. |
| · | | The net interest margin for the six months ended June 30, 2015 was 4.16% compared to 4.28% for the same six month period in 2014. Total yield on interest earning assets decreased to 4.55% for the six months ending June 30, 2015, compared to 4.68% for the same six month period last year. Interest expense as a percentage of total interest-bearing liabilities increased to 0.52% for the six months ended June 30, 2015 compared to 0.50% for the same six month period of 2014. |
| · | | The second quarter Return on Average Assets (ROAA) and Return on Average Equity (ROAE) were 0.80% and 7.58%, respectively, compared to ROAA and ROAE of 0.60% and 5.46%, respectively, for the second quarter of 2014. |
| · | | The ROAA and ROAE were 0.85% and 7.82%, respectively, for the six months ended June 30, 2015 compared to ROAA and ROAE of 0.62% and 5.70%, respectively, for the six months ending June 30, 2014. |
| · | | Total deposits grew by $68.7 million, or 6.76%, since December 31, 2014. |
| · | | We ended the second quarter of 2015 with a book value of $12.83 per common share and a tangible book value of $11.71 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.’s board of directors approved the repurchase of up to 500,000 shares of our outstanding common stock. As of June 30, 2015, 266,923 shares have been repurchased at an average price of $15.74 per share. Any repurchased shares remain authorized but unissued shares.
Total assets at June 30, 2015 increased $84.5 million from December 31, 2014 primarily due to an increase of $82.0 million in loans held-for-investment and $16.5 million in cash and cash equivalents, offsetting a decrease of $10.5 million in our investment portfolio.
Nonperforming assets, which include non-accrual loans, foreclosed real estate and troubled debt restructured loans, decreased 27 basis points from 0.65% of total assets at December 31, 2014 to 0.38% of total assets at June 30, 2015.
Deposit growth for the six months ended June 30, 2015 consisted of increases in interest bearing deposits of $53.6 million and non-interest bearing deposits of $15.0 million.
The increase in net income for the three months ending June 30, 2015 compared to the three months ending June 30, 2014, as noted above, was primarily the result of a $560 thousand, or 5.27%, increase in net interest income and $1.5 million, or 94.45%, decrease in the provision for loan losses, partially offset by a $323 thousand decrease in non-interest income and an increase of $342 thousand in non-interest expenses. The increase in net income for the six months ending June 30, 2015 compared to the six months ending June 30, 2014, as noted above, was primarily the result of a $1.7 million, or 7.93%, increase in net interest income, a $1.2 million decrease in the provision for loan losses, a $57 thousand, or 1.76%, increase in non-interest income and a decrease of $3 thousand in non-interest expenses.
Average interest bearing liabilities for the three month period ending June 30, 2015 increased $72.9 million compared to the same period of 2014. Average interest bearing liabilities for the six month period ending June 30, 2015 increased $57.8 million compared to the same period of 2014. The average rate paid on such liabilities increased to 0.54% and 0.52%, respectively, for the three and six months ending June 30, 2015 compared to 0.50% for the comparable 2014 periods.
Net interest margin for the three months ended June 30, 2015 decreased to 4.01% from 4.28% during the three months ending June 30, 2014. The net interest margin for the six months ended June 30, 2015 decreased to 4.16% from 4.28% during the six months ending June 30, 2014. The net effect of fair value accretion/amortization on acquired loans also affects the net interest margin and net interest income. The fair value accretion/amortization is recorded on pay downs during the period recognized. Payoffs decreased during the three months ending June 30, 2015 contributing a two basis point increase, as compared to a 19 basis points increase for the three months ending June 30, 2014. The fair value accretion recorded on acquired deposits affects interest expense. The amount of the accretion on such deposits during
the three months ended June 30, 2015 decreased by five basis points as compared to the same three month period last year.
Net interest income increased for the three and six month periods ending June 30, 2015 compared to the same periods in 2014 primarily due to increases in the interest recognized on loans offsetting the increases in interest expense. Loan interest increased for three and six month periods ending June 30, 2015 due to organic growth in our loan portfolio. Interest expense increased due to an increase in our borrowings, partially offset by a decrease in the rate on such borrowings. Our average interest bearing deposits decreased for the three month period ending June 30, 2015, offsetting an increase on the rate paid on these deposits. The average balance and average rate increased on our interest bearing deposits for the six month period ending June 30, 2015.
The provision for loan losses decreased for the three and six month periods ending June 30, 2015 compared to the same periods last year due. The decreases are the result of a provision for $1.4 million that was recognized during the second quarter last year for one commercial loan that was sold at foreclosure during the third quarter of last year, in addition to continued improvements in asset quality, as noted above.
Non-interest income decreased for the three month period ending June 30, 2015 compared to the same period of 2014 primarily as a result of decreases of $279 thousand in other fees and commissions, $126 thousand on gain on sale of investment securities and $52 thousand in service charges on deposit accounts, offsetting the increase of $149 thousand in earnings on marketable loans. Other fees and commissions decreased primarily due to recoveries of $125 thousand on loans that were previously charged-off prior to the merger with WSB Holdings, Inc. that were recognized in 2014. Other fees and commissions also included letter of credit fees of approximately $80 thousand received during the 2014 quarter. The decrease on the gain on the sale of investment securities is the result of re-positioning the investment portfolio during the second quarter of 2014. Service charges on deposit accounts decreased as a result of lower overdraft and ATM fees compared to the same three month period last year. The residential mortgage division increased the gain on sale of loans due to the gains recorded on the sale of $30.6 million in residential mortgage loans sold in the secondary market compared to $12.9 million for the same three month period last year. Non-interest income increased for the six month period ending June 30, 2015 compared to the same six months last year. The increase is primarily the result of a $656 thousand increase in earnings on marketable loans, offsetting decreases of $261 thousand in other fees and commissions and $88 thousand in service charges on deposit accounts.
Non-interest expenses increased $342 thousand for the three month period ending June 30, 2015 compared to the same period of 2014 primarily as a result of increases in salaries and benefits and losses on the sale of other real estate owned, partially offset by a decrease in occupancy and equipment and other real estate owned expenses. Salaries and benefits increased approximately $158 thousand due to additional information technology and risk management personnel added to enhance our operations due to the increasingly complex compliance and regulatory environment. Occupancy and equipment expenses decreased as a result of the previously-announced branch closings during 2014. Losses on the sale of one other real estate owned property during the three months ended June 30, 2015 resulted in a net loss of $9 thousand compared to a net gain of $79 thousand on the sale of three properties for the comparable period last year. Other non-interest expenses include outsourced services which will be transitioned and administered by our information technology and risk management personnel which will be more cost effective and allow for enhanced internal monitoring.
Non-interest expenses decreased $3 thousand for the six month period ending June 30, 2015 compared to the same six month period last year. Salaries and benefits decreased due to severance payments in the 2014 period that were associated with merger related staffing reductions. Occupancy and equipment expenses decreased for the six month period as a result of the closure of four of our branches at December 31, 2014. Losses on the sale of four other real estate owned properties during the six months ended June 30, 2015 resulted in a net loss of $144 thousand compared to a net gain of $282 thousand on the sale of six properties for the comparable six month period last year. Data processing costs increased due to enhancements in our data processing environment. FDIC insurance increased as a result of an increase in our assets and our deposit base.
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 statement in this press release that “Our goal is to continue to build our loan and deposit portfolios while maintaining asset quality and improving operating efficiency,” constitutes 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. 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, | | March 31, | | December 31, | | September 30, | | June 30, | |
| | 2015 | | 2015 | | 2014 (1) | | 2014 | | 2014 | |
| | (Unaudited) | | (Unaudited) | | (Unaudited) | | (Unaudited) | | (Unaudited) | |
Cash and due from banks | | $ | 40,494,305 | | $ | 37,061,793 | | $ | 23,572,613 | | $ | 42,266,194 | | $ | 29,887,334 | |
Interest bearing accounts | | | 1,034,085 | | | 1,080,570 | | | 1,230,864 | | | 30,396 | | | 30,389 | |
Federal funds sold | | | 331,178 | | | 624,888 | | | 601,259 | | | 533,612 | | | 304,246 | |
Total cash and cash equivalents | | | 41,859,568 | | | 38,767,251 | | | 25,404,736 | | | 42,830,202 | | | 30,221,969 | |
Investment securities available for sale | | | 151,179,573 | | | 158,380,719 | | | 161,680,198 | | | 163,535,833 | | | 155,706,684 | |
Loans held for sale | | | 6,361,652 | | | 8,692,297 | | | 4,548,106 | | | 5,735,282 | | | 4,074,911 | |
Loans held for investment, less allowance for loan losses of $4,435,913 and $4,281,835 for June 30, 2015 and December 31, 2014 | | | 1,008,618,046 | | | 963,706,538 | | | 926,573,488 | | | 883,905,233 | | | 889,524,786 | |
Equity securities at cost | | | 3,565,596 | | | 3,353,096 | | | 5,811,697 | | | 4,304,197 | | | 4,304,196 | |
Premises and equipment | | | 33,786,623 | | | 33,874,131 | | | 34,300,375 | | | 34,366,258 | | | 34,604,271 | |
Accrued interest receivable | | | 3,341,570 | | | 3,172,615 | | | 3,218,428 | | | 3,002,457 | | | 2,978,470 | |
Deferred income taxes | | | 13,108,799 | | | 12,506,347 | | | 16,106,498 | | | 19,843,857 | | | 19,850,224 | |
Current income taxes receivable | | | 1,198,299 | | | 1,312,872 | | | — | | | — | | | — | |
Bank owned life insurance | | | 31,856,947 | | | 31,643,001 | | | 31,429,747 | | | 31,214,396 | | | 31,000,380 | |
Other real estate owned | | | 1,215,690 | | | 1,600,015 | | | 2,451,920 | | | 2,699,846 | | | 4,627,465 | |
Goodwill | | | 7,793,665 | | | 7,793,665 | | | 7,793,665 | | | 7,793,665 | | | 7,793,665 | |
Core deposit intangible | | | 4,016,913 | | | 4,210,679 | | | 4,420,796 | | | 4,633,766 | | | 4,846,737 | |
Other assets | | | 4,127,881 | | | 6,087,688 | | | 3,779,350 | | | 4,128,206 | | | 3,732,934 | |
Total assets | | $ | 1,312,030,822 | | $ | 1,275,100,914 | | $ | 1,227,519,004 | | $ | 1,207,993,198 | | $ | 1,193,266,692 | |
Deposits | | | | | | | | | | | | | | | | |
Non-interest bearing | | $ | 275,953,182 | | $ | 269,733,047 | | $ | 260,913,521 | | $ | 247,291,192 | | $ | 237,614,952 | |
Interest bearing | | | 808,460,674 | | | 781,718,574 | | | 754,825,885 | | | 772,344,384 | | | 771,801,936 | |
Total deposits | | | 1,084,413,856 | | | 1,051,451,621 | | | 1,015,739,406 | | | 1,019,635,576 | | | 1,009,416,888 | |
Short term borrowings | | | 76,722,442 | | | 71,236,281 | | | 61,002,889 | | | 35,558,734 | | | 35,769,108 | |
Long term borrowings | | | 5,931,298 | | | 5,958,485 | | | 5,987,283 | | | 6,017,844 | | | 6,043,715 | |
Accrued interest payable | | | 322,926 | | | 284,444 | | | 266,023 | | | 241,740 | | | 229,939 | |
Accrued pension | | | 5,222,669 | | | 5,162,732 | | | 5,095,141 | | | 5,069,745 | | | 5,003,784 | |
Income taxes payable | | | — | | | — | | | 485,435 | | | 3,406,234 | | | 2,376,461 | |
Other liabilities | | | 3,457,441 | | | 3,420,900 | | | 3,416,190 | | | 4,557,087 | | | 2,252,083 | |
Total liabilities | | | 1,176,070,632 | | | 1,137,514,463 | | | 1,091,992,367 | | | 1,074,486,960 | | | 1,061,091,978 | |
| | | | | | | | | | | | | | | | |
Stockholders' equity | | | | | | | | | | | | | | | | |
Common stock | | | 105,745 | | | 107,551 | | | 108,110 | | | 107,864 | | | 107,854 | |
Additional paid-in capital | | | 101,500,434 | | | 104,313,092 | | | 105,235,646 | | | 104,900,904 | | | 104,820,171 | |
Retained earnings | | | 34,353,501 | | | 32,281,404 | | | 30,067,798 | | | 28,826,765 | | | 27,621,537 | |
Accumulated other comprehensive income (loss) | | | (253,879) | | | 630,791 | | | (147,250) | | | (589,650) | | | (639,502) | |
Total Old Line Bancshares, Inc. stockholders' equity | | | 135,705,801 | | | 137,332,838 | | | 135,264,304 | | | 133,245,883 | | | 131,910,060 | |
Non-controlling interest | | | 254,389 | | | 253,613 | | | 262,333 | | | 260,355 | | | 264,654 | |
Total stockholders' equity | | | 135,960,190 | | | 137,586,451 | | | 135,526,637 | | | 133,506,238 | | | 132,174,714 | |
Total liabilities and stockholders' equity | | $ | 1,312,030,822 | | $ | 1,275,100,914 | | $ | 1,227,519,004 | | $ | 1,207,993,198 | | $ | 1,193,266,692 | |
Shares of basic common stock outstanding | | | 10,574,439 | | | 10,755,017 | | | 10,810,930 | | | 10,786,370 | | | 10,785,370 | |
| (1) | | Financial information at December 31, 2014 has been derived from audited financial statements. |
Old Line Bancshares, Inc. & Subsidiaries
Consolidated Statements of Income
| | | | | | | | | | | | | | | | | | | | | |
| | Three Months | | Three Months | | Three Months | | Three Months | | Three Months | | Six Month | | Six Months |
| | Ended | | Ended | | Ended | | Ended | | Ended | | Ended | | Ended |
| | June 30, | | March 31, | | December 31, | | September 30, | | June 30, | | June 30, | | June 20, |
| | 2015 | | 2015 | | 2014 | | 2014 | | 2014 | | 2015 | | 2014 |
| | (Unaudited) | | (Unaudited) | | (Unaudited) | | (Unaudited) | | (Unaudited) | | (Unaudited) | | (Unaudited) |
Interest income | | | | | | | | | | | | | | | | | | | | | |
Loans, including fees | | $ | 11,516,860 | | $ | 11,621,493 | | $ | 10,556,729 | | $ | 10,232,684 | | $ | 10,599,999 | | $ | 23,138,353 | | $ | 20,933,971 |
Investment securities and other | | | 835,594 | | | 886,084 | | | 939,602 | | | 885,324 | | | 1,017,039 | | | 1,721,678 | | | 2,054,937 |
Total interest income | | | 12,352,454 | | | 12,507,577 | | | 11,496,331 | | | 11,118,008 | | | 11,617,038 | | | 24,860,031 | | | 22,988,908 |
Interest expense | | | | | | | | | | | | | | | | | | | | | |
Deposits | | | 1,021,560 | | | 910,957 | | | 799,716 | | | 850,964 | | | 856,639 | | | 1,932,517 | | | 1,750,942 |
Borrowed funds | | | 159,707 | | | 134,716 | | | 119,214 | | | 111,693 | | | 148,918 | | | 294,423 | | | 267,194 |
Total interest expense | | | 1,181,267 | | | 1,045,673 | | | 918,930 | | | 962,657 | | | 1,005,557 | | | 2,226,940 | | | 2,018,136 |
Net interest income | | | 11,171,187 | | | 11,461,904 | | | 10,577,401 | | | 10,155,351 | | | 10,611,481 | | | 22,633,091 | | | 20,970,772 |
Provision for loan losses | | | 85,658 | | | 561,731 | | | 458,114 | | | 555,134 | | | 1,544,280 | | | 647,389 | | | 1,814,049 |
Net interest income after provision for loan losses | | | 11,085,529 | | | 10,900,173 | | | 10,119,287 | | | 9,600,217 | | | 9,067,201 | | | 21,985,702 | | | 19,156,723 |
Non-interest income | | | | | | | | | | | | | | | | | | | | | |
Service charges on deposit accounts | | | 441,382 | | | 415,202 | | | 475,120 | | | 483,865 | | | 493,482 | | | 856,584 | | | 945,078 |
Gain on sales or calls of investment securities | | | 3,924 | | | 60,694 | | | — | | | — | | | 129,911 | | | 64,618 | | | 129,911 |
Gain on sale of stock | | | — | | | — | | | — | | | — | | | - | | | — | | | 96,993 |
Earnings on bank owned life insurance | | | 249,421 | | | 248,384 | | | 249,967 | | | 248,259 | | | 246,371 | | | 497,805 | | | 489,978 |
Gains (losses) on disposal of assets | | | — | | | 19,975 | | | (48,051) | | | — | | | 17,919 | | | 19,975 | | | 17,919 |
Gain on sale of loans | | | 484,635 | | | 563,881 | | | 290,269 | | | 129,498 | | | 335,444 | | | 1,048,516 | | | 392,338 |
Other fees and commissions | | | 325,028 | | | 485,299 | | | 395,058 | | | 400,713 | | | 603,787 | | | 810,327 | | | 1,071,685 |
Total non-interest income | | | 1,504,390 | | | 1,793,435 | | | 1,362,363 | | | 1,262,335 | | | 1,826,914 | | | 3,297,825 | | | 3,240,895 |
Non-interest expense | | | | | | | | | | | | | | | | | | | | | |
Salaries & employee benefits | | | 4,331,572 | | | 4,178,896 | | | 4,274,962 | | | 4,559,711 | | | 4,010,187 | | | 8,510,468 | | | 8,906,286 |
Occupancy & Equipment | | | 1,338,660 | | | 1,399,877 | | | 1,878,052 | | | 1,367,808 | | | 1,436,564 | | | 2,738,537 | | | 3,022,735 |
Data processing | | | 367,190 | | | 352,060 | | | 352,956 | | | 368,717 | | | 312,042 | | | 719,250 | | | 619,202 |
Merger and integration | | | — | | | — | | | — | | | — | | | — | | | — | | | 29,167 |
Core deposit amortization | | | 193,766 | | | 210,117 | | | 212,970 | | | 212,970 | | | 212,214 | | | 403,883 | | | 440,764 |
(Gains)losses on sales of other real estate owned | | | 9,169 | | | 134,754 | | | (155,148) | | | (260,533) | | | (79,127) | | | 143,923 | | | (282,195) |
OREO expense | | | 75,552 | | | 120,201 | | | 199,094 | | | 159,238 | | | 112,659 | | | 195,753 | | | 195,725 |
Other operating | | | 2,477,041 | | | 2,257,235 | | | 2,257,866 | | | 2,078,155 | | | 2,446,147 | | | 4,734,276 | | | 4,517,401 |
Total non-interest expense | | | 8,792,950 | | | 8,653,140 | | | 9,020,752 | | | 8,486,066 | | | 8,491,906 | | | 17,446,090 | | | 17,449,085 |
Income before income taxes | | | 3,796,969 | | | 4,040,468 | | | 2,461,793 | | | 2,376,486 | | | 2,443,429 | | | 7,837,437 | | | 4,948,533 |
Income tax expense | | | 1,195,273 | | | 1,295,035 | | | 679,154 | | | 636,239 | | | 687,973 | | | 2,490,308 | | | 1,378,711 |
Net income | | | 2,601,696 | | | 2,745,433 | | | 1,782,639 | | | 1,740,247 | | | 1,755,456 | | | 5,347,129 | | | 3,569,822 |
Less: Net income (loss) attributable to the noncontrolling interest | | | 776 | | | (8,720) | | | 1,978 | | | (4,299) | | | (13,880) | | | (7,944) | | | (35,269) |
Net income available to common stockholders | | $ | 2,600,920 | | $ | 2,754,153 | | $ | 1,780,661 | | $ | 1,744,546 | | $ | 1,769,336 | | $ | 5,355,073 | | $ | 3,605,091 |
Earnings per basic share | | $ | 0.25 | | $ | 0.25 | | $ | 0.17 | | $ | 0.16 | | $ | 0.16 | | $ | 0.50 | | $ | 0.33 |
Earnings per diluted share | | $ | 0.24 | | $ | 0.25 | | $ | 0.16 | | $ | 0.16 | | $ | 0.16 | | $ | 0.49 | | $ | 0.33 |
Dividend per common share | | $ | 0.05 | | $ | 0.05 | | $ | 0.05 | | $ | 0.05 | | $ | 0.04 | | $ | 0.10 | | $ | 0.08 |
Average number of basic shares | | | 10,617,225 | | | 10,807,366 | | | 10,792,544 | | | 10,785,881 | | | 10,785,370 | | | 10,711,771 | | | 17,782,770 |
Average number of dilutive shares | | | 10,759,628 | | | 10,899,030 | | | 10,941,002 | | | 10,921,555 | | | 10,948,368 | | | 10,847,352 | | | 10,944,981 |
| (1) | | Financial information at December 31, 2014 has been derived from audited financial statements. |
Old Line Bancshares, Inc. & Subsidiaries
Average Balances, Interest and Yields
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 6/30/2015 | | 3/31/2015 | | 12/31/2014 | | 9/30/2014 | | 6/30/2014 | |
| | Average | | | | Average | | | | Average | | | | Average | | | | Average | | | |
Three Month Averages: | | Balance | | Yield | | Balance | | Yield | | Balance | | Yield | | Balance | | Yield | | Balance | | Yield | |
Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Int. Bearing Deposits | | $ | 914,076 | | 0.08 | % | $ | 593,602 | | 0.12 | % | $ | 2,902,672 | | 0.20 | % | $ | 3,896,273 | | 0.17 | % | $ | 4,024,265 | | 0.17 | % |
Investment Securities(2) | | | 161,858,721 | | 2.56 | % | | 164,560,281 | | 2.70 | % | | 168,069,134 | | 2.40 | % | | 159,259,044 | | 2.94 | % | | 170,389,632 | | 3.00 | % |
Loans | | | 1,002,896,056 | | 4.70 | % | | 954,873,037 | | 5.02 | % | | 905,241,954 | | 4.78 | % | | 897,381,372 | | 4.57 | % | | 865,944,038 | | 4.99 | % |
Allowance for Loan Losses | | | (4,576,511) | | | | | (4,498,086) | | | | | (2,570,097) | | | | | (6,422,492) | | | | | (5,290,130) | | | |
Total Loans | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net of allowance | | | 998,319,545 | | 4.72 | % | | 950,374,951 | | 5.04 | % | | 902,671,857 | | 4.79 | % | | 890,958,880 | | 4.60 | % | | 860,653,908 | | 5.02 | % |
Total interest-earning assets | | | 1,161,092,342 | | 4.42 | % | | 1,115,528,834 | | 4.70 | % | | 1,073,643,663 | | 4.42 | % | | 1,054,114,197 | | 4.33 | % | | 1,035,067,805 | | 4.67 | % |
Noninterest bearing cash | | | 37,463,216 | | | | | 34,422,919 | | | | | 38,925,730 | | | | | 42,071,667 | | | | | 39,297,001 | | | |
Other Assets | | | 99,548,767 | | | | | 102,782,917 | | | | | 107,033,944 | | | | | 109,199,887 | | | | | 109,464,228 | | | |
Total Assets | | $ | 1,298,104,325 | | | | $ | 1,252,734,670 | | | | $ | 1,219,603,337 | | | | $ | 1,205,385,751 | | | | $ | 1,183,829,034 | | | |
Liabilities and Stockholders' Equity | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing Deposits | | $ | 765,327,795 | | 0.54 | % | $ | 772,838,785 | | 0.48 | % | $ | 767,241,928 | | 0.41 | % | $ | 776,032,831 | | 0.44 | % | $ | 768,879,677 | | 0.45 | % |
Borrowed Funds | | | 117,595,112 | | 0.54 | % | | 72,721,100 | | 0.75 | % | | 50,442,530 | | 0.94 | % | | 39,031,131 | | 1.14 | % | | 41,102,469 | | 1.45 | % |
Total interest-bearing liabilities | | | 882,922,907 | | 0.54 | % | | 845,559,885 | | 0.50 | % | | 817,684,458 | | 0.45 | % | | 815,063,962 | | 0.47 | % | | 809,982,146 | | 0.50 | % |
Noninterest bearing deposits | | | 269,427,296 | | | | | 262,926,103 | | | | | 255,002,560 | | | | | 247,346,466 | | | | | 234,063,213 | | | |
| | | 1,152,350,203 | | | | | 1,108,485,988 | | | | | 1,072,687,018 | | | | | 1,062,410,428 | | | | | 1,044,045,359 | | | |
Other Liabilities | | | 7,866,395 | | | | | 9,009,800 | | | | | 11,057,397 | | | | | 10,072,582 | | | | | 9,603,037 | | | |
Noncontrolling Interest | | | 252,293 | | | | | 258,240 | | | | | 261,545 | | | | | 262,435 | | | | | 270,521 | | | |
Stockholder's Equity | | | 137,635,434 | | | | | 134,980,642 | | | | | 135,597,377 | | | | | 132,640,306 | | | | | 129,910,117 | | | |
Total Liabilities and | | | | | | | | | | | | | | | | | | | | | | | | | | |
Stockholder's Equity | | $ | 1,298,104,325 | | | | $ | 1,252,734,670 | | | | $ | 1,219,603,337 | | | | $ | 1,205,385,751 | | | | $ | 1,183,829,034 | | | |
Net interest spread | | | | | 3.88 | % | | | | 4.20 | % | | | | 3.97 | % | | | | 3.86 | % | | | | 4.17 | % |
Net interest income and | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net interest margin(1) | | $ | 11,602,656 | | 4.01 | % | $ | 11,891,497 | | 4.32 | % | $ | 11,034,119 | | 4.08 | % | $ | 10,545,444 | | 3.97 | % | $ | 11,047,069 | | 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 resulted in a positive impact in the yield on loans for the three months ending June 30, 2015 and 2014. Fair value accretion for the current quarter and prior four quarter are as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 6/30/2015 | | 3/31/2015 | | 12/31/2014 | | 9/30/2014 | | 6/30/2014 | |
| | 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) | | $ | (3,114) | | — | % | $ | 8,690 | | — | % | $ | (969) | | — | % | $ | (16,219) | | (0.01) | % | $ | (3,509) | | — | % |
Mortgage loans (1) | | | 35,386 | | 0.01 | | | 589,266 | | 0.21 | | | 24,779 | | 0.01 | | | (278,619) | | (0.10) | | | 344,403 | | 0.13 | |
Consumer loans | | | 4,298 | | — | | | 11,390 | | — | | | 6,686 | | — | | | 4,209 | | — | | | 6,338 | | — | |
Interest bearing deposits | | | 37,677 | | 0.01 | | | 37,263 | | 0.01 | | | 110,503 | | 0.04 | | | 131,837 | | 0.05 | | | 162,452 | | 0.06 | |
Total Fair Value Accretion (Amortization) | | $ | 74,247 | | 0.02 | % | $ | 646,609 | | 0.22 | % | $ | 140,999 | | 0.05 | % | $ | (158,792) | | (0.06) | % | $ | 509,684 | | 0.19 | % |
| (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:
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 6/30/2015 | | 3/31/2015 | | 12/31/2014 | | 9/30/2014 | | 6/30/2014 | |
| | Net Interest | | | | Net Interest | | | | Net Interest | | | | Net Interest | | | | Net Interest | | | |
| | Income | | Yield | | Income | | Yield | | Income | | Yield | | Income | | Yield | | Income | | Yield | |
GAAP net interest income | | $ | 11,171,187 | | 3.86 | % | $ | 11,461,904 | | 4.17 | % | $ | 10,577,401 | | 3.91 | % | $ | 10,155,351 | | 3.82 | % | $ | 10,611,481 | | 4.11 | % |
Tax equivalent adjustment | | | | | | | | | | | | | | | | | | | | | | | | | | |
Federal funds sold | | | 1 | | — | | | 1 | | — | | | 1 | | — | | | - | | - | | | | | - | |
Investment securities | | | 195,785 | | 0.07 | | | 200,498 | | 0.07 | | | 343,280 | | 0.13 | | | 294,770 | | 0.11 | | | 258,980 | | 0.10 | |
Loans | | | 235,683 | | 0.08 | | | 229,094 | | 0.08 | | | 113,437 | | 0.04 | | | 95,323 | | 0.04 | | | 176,608 | | 0.07 | |
Total tax equivalent adjustment | | | 431,469 | | 0.15 | | | 429,593 | | 0.15 | | | 456,718 | | 0.17 | | | 390,093 | | 0.15 | | | 435,588 | | 0.17 | |
Tax equivalent interest yield | | $ | 11,602,656 | | 4.01 | % | $ | 11,891,497 | | 4.32 | % | $ | 11,034,119 | | 4.08 | % | $ | 10,545,444 | | 3.97 | % | $ | 11,047,069 | | 4.28 | % |
Old Line Bancshares, Inc. & Subsidiaries
Selected Loan Information
(Dollars in thousands)
| | | | | | | | | | | | | | | | |
| | June 30, | | March 31, | | December 31, | | September 30, | | June 30, | |
| | 2015 | | 2015 | | 2014 | | 2014 | | 2014 | |
Acquired Loans(1) | | | | | | | | | | | | | | | | |
Period End Loan Balance | | $ | 164,300 | | $ | 171,527 | | $ | 173,659 | | $ | 186,896 | | $ | 203,211 | |
Deferred Costs | | | — | | | — | | | 10 | | | 9 | | | 11 | |
Accruing | | | 161,495 | | | 165,956 | | | 167,704 | | | 183,094 | | | 199,859 | |
Non-accrual(2) | | | 2,547 | | | 2,518 | | | 1,958 | | | 1,291 | | | 593 | |
Accruing 30-89 days past due | | | 2,102 | | | 3,053 | | | 3,687 | | | 1,569 | | | 1,478 | |
Accruing 90 or more days past due | | | — | | | — | | | 310 | | | 942 | | | 1,271 | |
Other real estate owned | | | 741 | | | 1,125 | | | 1,977 | | | 2,225 | | | 3,826 | |
Net charge offs (recoveries) | | | 320 | | | (16) | | | 52 | | | 316 | | | 106 | |
Legacy Loans(3) | | | | | | | | | | | | | | | | |
Period End Loan Balance | | $ | 847,499 | | $ | 795,532 | | $ | 749,968 | | $ | 699,833 | | $ | 691,619 | |
Deferred Costs | | | 1,255 | | | 1,283 | | | 1,283 | | | 1,048 | | | 1,039 | |
Accruing | | | 845,391 | | | 793,576 | | | 746,376 | | | 692,854 | | | 681,592 | |
Non-accrual | | | 853 | | | 1,106 | | | 3,249 | | | 3,263 | | | 7,176 | |
Accruing 30-89 days past due | | | 1,199 | | | 851 | | | 343 | | | 3,411 | | | 2,177 | |
Accruing 90 or more days past due | | | - | | | - | | | - | | | 305 | | | 674 | |
Other real estate owned | | | 475 | | | 475 | | | 475 | | | 475 | | | 802 | |
Net charge offs (recoveries) | | | (34) | | | 224 | | | (4) | | | 2,691 | | | (4) | |
Allowance for loan losses as % of held for investment loans | | | 0.44 | % | | 0.48 | % | | 0.46 | % | | 0.44 | % | | 0.71 | % |
Allowance for loan losses as % of legacy held for investment loans | | | 0.52 | % | | 0.59 | % | | 0.57 | % | | 0.55 | % | | 0.80 | % |
Allowance for loan losses as % of acquired held for investment loans | | | 2.70 | % | | 2.60 | % | | 2.38 | % | | 2.07 | % | | 3.11 | % |
Total non-performing loans as a % of held for investment loans | | | 0.49 | % | | 0.37 | % | | 0.56 | % | | 0.96 | % | | 1.08 | % |
Total non-performing assets as a % of total assets | | | 0.38 | % | | 0.44 | % | | 0.65 | % | | 0.70 | % | | 1.20 | % |
| (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. |
