Old Line Bancshares (OLBK) 10-Q 7 Aug 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Aug. 01, 2015
Document and Entity Information
Entity Registrant Name	OLD LINE BANCSHARES INC
Entity Central Index Key	1,253,317
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		10,574,439
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Assets
Cash and due from banks	$ 40,494,305	$ 23,572,613
Interest bearing accounts	1,034,085	1,230,864
Federal funds sold	331,178	601,259
Total cash and cash equivalents	41,859,568	25,404,736
Investment securities available for sale-at fair value	151,179,573	161,680,198
Loans held for sale, fair value of $6,656,700 and $4,753,995	6,361,652	4,548,106
Loans held for investment (net of allowance for loan losses of $4,435,913 and $4,281,835, respectively)	1,008,618,046	926,573,488
Equity securities at cost	3,565,596	5,811,697
Premises and equipment	33,786,623	34,300,375
Accrued interest receivable	3,341,570	3,218,428
Deferred income taxes	13,108,799	16,106,498
Current income taxes receivable	1,198,299
Bank owned life insurance	31,856,947	31,429,747
Other real estate owned	1,215,690	2,451,920
Goodwill	7,793,665	7,793,665
Core deposit intangible	4,016,913	4,420,796
Other assets	4,127,881	3,779,350
Total assets	1,312,030,822	1,227,519,004
Deposits
Non-interest bearing	275,953,182	260,913,521
Interest bearing	808,460,674	754,825,885
Total deposits	1,084,413,856	1,015,739,406
Short term borrowings	76,722,442	61,002,889
Long term borrowings	5,931,298	5,987,283
Accrued interest payable	322,926	266,023
Accrued pension	5,222,669	5,095,141
Other liabilities	3,457,441	3,901,625
Total liabilities	1,176,070,632	1,091,992,367
Stockholders' equity
Common stock, par value $0.01 per share; 25,000,000 shares authorized; 10,574,439 and 10,810,930 shares issued and outstanding in 2015 and 2014, respectively	105,745	108,110
Additional paid-in capital	101,500,434	105,235,646
Retained earnings	34,353,501	30,067,798
Accumulated other comprehensive income (loss)	(253,879)	(147,250)
Total Old Line Bancshares, Inc. stockholders' equity	135,705,801	135,264,304
Non-controlling interest	254,389	262,333
Total stockholders' equity	135,960,190	135,526,637
Total liabilities and stockholders' equity	$ 1,312,030,822	$ 1,227,519,004

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Consolidated Balance Sheets
Loans held for sale, fair value (in dollars)	$ 6,656,700	$ 4,753,995
Loans held for investment, allowance for loan losses (in dollars)	$ 4,435,913	$ 4,281,835
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized shares	25,000,000	25,000,000
Common stock, shares issued	10,574,439	10,810,930
Common stock, shares outstanding	10,574,439	10,810,930

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Interest Income
Loans, including fees	$ 11,516,860	$ 10,599,999	$ 23,138,353	$ 20,933,971
U.S. treasury securities	2,630	15,546	5,236	16,378
U.S. government agency securities	132,736	145,145	266,094	296,100
Mortgage backed securities	350,544	360,480	723,554	738,352
Municipal securities	305,650	396,191	620,634	831,179
Federal funds sold	184	1,653	360	2,041
Other	43,850	98,024	105,800	170,887
Total interest income	12,352,454	11,617,038	24,860,031	22,988,908
Interest expense
Deposits	1,021,560	856,639	1,932,517	1,750,942
Borrowed funds	159,707	148,918	294,423	267,194
Total interest expense	1,181,267	1,005,557	2,226,940	2,018,136
Net interest income	11,171,187	10,611,481	22,633,091	20,970,772
Provision for loan losses	85,658	1,544,280	647,389	1,814,049
Net interest income after provision for loan losses	11,085,529	9,067,201	21,985,702	19,156,723
Non-interest income
Service charges on deposit accounts	441,382	493,482	856,584	945,078
Gains on sales or calls of investment securities	3,924	129,911	64,618	129,911
Earnings on bank owned life insurance	249,421	246,371	497,805	489,978
Gain on the sale of equity securities				96,993
Gain (loss) on disposal of assets		17,919	19,975	114,912
Rental Income	209,568	195,407	418,348	395,944
Gain on the sale of loans	484,635	335,444	1,048,517	392,338
Other fees and commissions	115,460	408,380	391,979	675,741
Total non-interest income	1,504,390	1,826,914	3,297,826	3,240,895
Non-interest expense
Salaries and benefits	4,331,572	4,010,187	8,510,468	8,906,286
Occupancy and equipment	1,338,660	1,436,564	2,738,536	3,022,735
Data processing	367,190	312,042	719,250	619,202
FDIC insurance and State of Maryland assessments	251,993	233,575	500,886	452,096
Merger and integration				29,167
Core deposit premium amortization	193,766	212,214	403,883	440,764
(Gain) loss on sales of other real estate owned	9,169	(79,127)	143,923	(282,195)
OREO expense	75,552	112,659	195,753	195,725
Directors Fees	160,200	120,900	330,200	240,600
Network services	195,447	174,914	377,110	374,502
Telephone	160,901	167,442	325,837	334,600
Other operating	1,708,500	1,749,316	3,200,245	3,115,603
Total non-interest expense	8,792,950	8,450,686	17,446,091	17,449,085
Income before income taxes	3,796,969	2,443,429	7,837,437	4,948,533
Income tax expense	1,195,273	687,973	2,490,308	1,378,711
Net income	2,601,696	1,755,456	5,347,129	3,569,822
Less: Net loss attributable to the non-controlling interest	776	(13,880)	(7,944)	(35,269)
Net income available to common stockholders	$ 2,600,920	$ 1,769,336	$ 5,355,073	$ 3,605,091
Basic earnings per common share (in dollars per share)	$ 0.25	$ 0.16	$ 0.50	$ 0.33
Diluted earnings per common share (in dollars per share)	0.24	0.16	0.49	0.33
Dividend per common share (in dollars per share)	$ 0.05	$ 0.04	$ 0.10	$ 0.08

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Consolidated Statements of Comprehensive Income
Net income	$ 2,601,696	$ 1,755,456	$ 5,347,129	$ 3,569,822
Other comprehensive income (loss):
Unrealized gain on securities available for sale, net of taxes	(882,295)	1,310,253	(67,500)	2,798,989
Reclassification adjustment for realized gain on securities available for sale included in net income, net of taxes	(2,376)	(78,668)	(39,129)	(78,668)
Other comprehensive income (loss)	(884,671)	1,231,585	(106,629)	2,720,321
Comprehensive Income	1,717,025	2,987,041	5,240,500	6,290,143
Comprehensive (loss) attributable to the non-controlling interest	776	(13,880)	(7,944)	(35,269)
Comprehensive income available to common stockholders	$ 1,716,249	$ 3,000,921	$ 5,248,444	$ 6,325,412

Consolidated Statements of Com6

Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Consolidated Statements of Comprehensive Income
Unrealized gain (loss) on securities available for sale, taxes	$ 574,719	$ 751,001	$ (43,969)	$ 1,720,750
Reclassification adjustment for realized gain on securities available for sale included in net income, taxes	$ 1,548	$ 51,243	$ 25,489	$ 51,243

Consolidated Statement of Chang

Consolidated Statement of Changes in Stockholders' Equity - 6 months ended Jun. 30, 2015 - USD ($)	Common stock	Additional paid-in capital	Retained earnings	Accumulated other comprehensive income (loss)	Non-controlling interest	Total
Balance at Dec. 31, 2014	$ 108,110	$ 105,235,646	$ 30,067,798	$ (147,250)	$ 262,333	$ 135,526,637
Balance (in shares) at Dec. 31, 2014	10,810,930					10,810,930
Increase (Decrease) in Stockholders' Equity
Net income attributable to Old Line Bancshares, Inc.			5,355,073			$ 5,355,073
Unrealized loss on securities available for sale, net of income tax benefit of ($69,457)				(106,629)		(106,629)
Net loss attributable to non-controlling interest					(7,944)	(7,944)
Stock based compensation awards		182,067				182,067
Stock options exercised	$ 220	271,732				271,952
Stock options exercised (in shares)	22,000
Restricted stock issued	$ 93	(93)
Restricted stock issued (in shares)	9,332
Common stock repurchased and retired	$ (2,678)	(4,188,918)				(4,191,596)
Common stock repurchased and retired (in shares)	(267,823)
Common stock cash dividend $0.10 per share			(1,069,370)			(1,069,370)
Balance at Jun. 30, 2015	$ 105,745	$ 101,500,434	$ 34,353,501	$ (253,879)	$ 254,389	$ 135,960,190
Balance (in shares) at Jun. 30, 2015	10,574,439					10,574,439

Consolidated Statement of Chan8

Consolidated Statement of Changes in Stockholders' Equity (Parenthetical) - 6 months ended Jun. 30, 2015 - USD ($)	Total
Consolidated Statement of Changes in Stockholders' Equity
Unrealized gain on securities available for sale, income tax expense (benefit)	$ (69,457)
Dividend per common share (in dollars per share)	$ 0.10

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash flows from operating activities
Interest received	$ 25,207,981	$ 23,941,306
Fees and commissions received	1,901,414	2,024,810
Interest paid	(2,170,037)	(2,053,004)
Cash paid to suppliers and employees	(15,866,669)	(17,528,107)
Loans originated for sale	(54,080,338)	(21,108,421)
Proceeds from the sale of loans held for sale	52,266,793	19,048,221
Income taxes paid	(1,106,887)	(1,372,983)
Net cash provided by operating activities	6,152,257	2,951,822
Cash flows from investing activities
Purchase of investment securities available for sale		(13,716,497)
Proceeds from disposal of investment securities
Available for sale at maturity, call or paydowns	9,936,344	34,448,100
Loans made, net of principal collected	(81,661,710)	(45,134,751)
Proceeds from sale of other real estate owned	1,034,932	1,320,961
Redemption of equity securities	2,246,101	1,273,528
Purchase of premises and equipment	(602,096)	(345,772)
Net cash provided by investing activities	(69,046,429)	(22,172,350)
Proceeds from the sale of premises and equipment		(17,919)
Net increase (decrease) in
Time deposits	26,251,703	(12,864,657)
Other deposits	42,422,747	47,922,059
Short term borrowings	15,719,553	(13,761,017)
Long term borrowings	(55,985)	(49,359)
Stock proceeds from private placement	(4,191,596)
Stock options exercised	271,952
Cash dividends paid-common stock	(1,069,370)	(862,829)
Net cash used in financing activities	79,349,004	20,384,197
Net increase (decrease) in cash and cash equivalents	16,454,832	1,163,669
Cash and cash equivalents at beginning of year	25,404,736	29,058,300
Cash and cash equivalents at end of year	41,859,568	30,221,969
Reconciliation of net income to net cash provided (used) by operating activities
Net income	5,347,129	3,569,822
Adjustments to reconcile net income to net cash provided (used) by operating activities
Depreciation and amortization	1,135,823	1,090,200
Provision for loan losses	647,389	1,814,049
Deferred loan fees net of costs	18,279	(7,836)
(Gain)/loss on sale or calls of securities	(64,618)	(129,911)
Amortization of premiums and discounts	452,813	505,780
Change in loans held for sale	(1,813,546)	(2,060,199)
(Gain)/loss on sale of loans	(1,048,517)	(302,548)
(Gain)/loss on sale of other real estate owned	143,923	(282,195)
Gain on the sale of equity securities		(96,993)
Write down of other real estate owned	57,375
(Gain)/loss on sale of fixed assets	(19,975)	(17,919)
Amortization of intangible	403,883	440,764
Deferred income taxes	3,067,155	185,876
Stock based compensation awards	182,067	198,082
Increase (decrease) in:
Accrued interest payable	56,903	(34,868)
Income tax payable	(485,435)	(180,148)
Accrued pension	127,528	82,543
Other liabilities	41,251	(696,381)
Decrease (increase) in:
Accrued interest receivable	(123,142)	454,454
Bank owned life insurance	(427,200)	(423,193)
Income Taxes Receivable	1,198,299
Other assets	(348,529)	(1,157,557)
Net Cash Provided by (Used in) Operating Activities	$ 6,152,257	2,951,822
Supplemental disclosure of noncash activities:
Loans transferred to other real estate owned		$ 1,354,889

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2015
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	OLD LINE BANCSHARE INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 1. SUM MARY OF SIGNIFICANT ACCOUNTING POLICIES Organization and Description of Business - Old Line Bancshares, Inc. (Old Line Bancshares) was incorporated under the laws of the State of Maryland on April 11, 2003 to serve as the holding company of Old Line Bank. The primary business of Old Line Bancshares is to own all of the capital stock of Old Line Bank. We provide a full range of banking services to customers located in Anne Arundel, Calvert, Charles, Montgomery, Prince George’s, and St. Mary’s Counties in Maryland and surrounding areas. Basis of Presentation and Consolidation - The accompanying condensed consolidated financial statements include the activity of Old Line Bancshares and its wholly owned subsidiary, Old Line Bank, and its majority owned subsidiary Pointer Ridge Office Investments, LLC (Pointer Ridge), a real estate investment company. We have eliminated all significant intercompany transactions and balances. We report the non-controlling interests in Pointer Ridge separately in the consolidated balance sheet. We report the income of Pointer Ridge attributable to Old Line Bancshares on the consolidated statement of income. The foregoing consolidated financial statements for the periods ended June 30, 2015 and 2014 are unaudited and have been prepared in accordance with U.S. generally accepted accounting principles (US GAAP); however, in the opinion of management we have included all adjustments (comprising only normal recurring accruals) necessary for a fair presentation of the results of the interim period. We derived the balances as of December 31, 2014 from audited financial statements. These statements should be read in conjunction with Old Line Bancshares’ financial statements and accompanying notes included in Old Line Bancshares’ Form 10-K for the year ended December 31, 2014. We have made no significant changes to Old Line Bancshares’ accounting policies as disclosed in the Form 10-K. Use of estimates - The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. These estimates and assumptions may affect the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. A material estimate that is particularly susceptible to significant change in the near term relates to the determination of the allowance for loan losses . Reclassifications - We have made certain reclassifications to the 2014 financial presentation to conform to the 2015 presentation. These reclassifications did not change net income or stockholders’ equity. Recent Accounting Pronouncements - I n August 2014, the Financial Accounting Board “FASB”) issued Accounting Standard Update (“ASU”) No. 2014-14- Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40): Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure , to address the diversity in practice regarding the classification and measurement of foreclosed loans which were part of a government-sponsored loan guarantee program (e.g. HUD, FHA, VA). The ASU outlines certain criteria and provides that, if met, the loan (residential or commercial) should be derecognized and a separate other receivable should be recorded upon foreclosure at the amount of the loan balance (principal and interest) expected to be recovered from the guarantor. This ASU will be effective for annual reporting periods beginning after December 15, 2014, including interim periods within that reporting period. The adoption of ASU No. 2014-14 did not have a material impact on our consolidated financial statements and the required disclosures have been included in Note 5. In June 2014, the FASB issued ASU No. 2014-11, Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures. The new guidance aligns the accounting for repurchase-to-maturity transactions and repurchase agreements executed as repurchase financings with the accounting for other typical repurchase agreements. Going forward, these transactions would all be accounted for as secured borrowings. The guidance eliminates sale accounting for repurchase-to-maturity transactions and supersedes the guidance under which a transfer of a financial asset and a contemporaneous repurchase financing could be accounted for on a combined basis as a forward agreement, which has resulted in outcomes referred to as off-balance-sheet accounting. The amendments in the ASU require a new disclosure for transactions economically similar to repurchase agreements in which the transferor retains substantially all of the exposure to the economic return on the transferred financial assets throughout the term of the transaction. The amendments in the ASU also require expanded disclosures, effective for the current reporting period of June 30, 2015, about the nature of collateral pledged in repurchase agreements and similar transactions accounted for as secured borrowings (see Note 9 to the Consolidated Financial Statements). We adopted the amendments in this ASU effective January 1, 2015. As of June 30, 2015, all of our repurchase agreements were typical in nature (i.e., not repurchase-to-maturity transactions or repurchase agreements executed as a repurchase financing) and are accounted for as secured borrowings. As such, the adoption of ASU No. 2014-11 did not have a material impact on our consolidated financial statements.

INVESTMENT SECURITIES

INVESTMENT SECURITIES	6 Months Ended
	Jun. 30, 2015
Investment Securities
Investment Securities	3. INVESTMENT SECURITIES Presented below is a summary of the amortized cost and estimated fair value of securities. Gross Gross Amortized unrealized unrealized Estimated cost gains losses fair value June 30, 2015 Available for sale U.S. treasury $ $ $ — $ U.S. government agency Municipal securities Mortgage backed securities: FHLMC certificates FNMA certificates GNMA certificates SBA loan pools $ $ $ $ December 31, 2014 Available for sale U.S. treasury $ $ $ — $ U.S. government agency Municipal securities Mortgage backed securities FHLMC certificates FNMA certificates GNMA certificates SBA loan pools — $ $ $ $ As of June 30, 2015 and December 31, 2014, securities with unrealized losses segregated by length of impairment were as follows: June 30, 2015 Less than 12 months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized value losses value losses value losses U.S. Treasury $ — $ — $ — $ — $ — $ — U.S. government agency — — Municipal securities Mortgage backed securities SBA loan pools — — Total unrealized losses $ $ $ $ $ $ December 31, 2014 Less than 12 months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized value losses value losses value losses U.S. government agency $ $ $ $ $ $ Municipal securities Mortgage backed securities SBA loan pools — — Total unrealized losses $ $ $ $ $ $ At June 30, 2015 and December 31, 2014, we had 43 and 57 investment securities, respectively, in an unrealized loss position greater than the 12 month time frame and 40 and 12 securities, respectively, in an unrealized loss position less than the 12 month time frame. We consider all unrealized losses on securities as of June 30, 2015 to be temporary losses because we will redeem each security at face value at or prior to maturity. We have the ability and intent to hold these securities until recovery or maturity. As of June 30, 2015, we do not have the intent to sell any of the securities classified as available for sale and believe that it is more likely than not that we will not have to sell any such securities before a recovery of cost. In most cases, market interest rate fluctuations cause a temporary impairment in value. We expect the fair value to recover as the investments approach their maturity date or re-pricing date or if market yields for these investments decline. We do not believe that credit quality caused the impairment in any of these securities. Because we believe these impairments are temporary, we have not realized any loss in our consolidated statement of income. There were no sales of investment securities for the three months ending June 30, 2015. There were three municipal bonds that were called and one agency security that matured during the three month period ended June 30, 2015, and the remaining discount/accretion of $4 thousand on the called bonds was recorded as gain on sale of investments compared to a net gain of $130 thousand for the same three month period last year. There were no sales of investment securities for the six months ending June 30, 2015, however, there were a total of five municipal bonds that were called and one agency security that matured for a total of $65 thousand in gains compared to $130 thousand for the same six month period last year. The decrease is the result of a re-positioning in the investment portfolio that took place during last year. We received $9.9 million and $34.4 million, respectively, in proceeds for sales, maturities or calls and principal pay-downs of investment securities for the six month periods ending June 30, 2015 and 2014. The net proceeds of these transactions were used for new loan originations. Contractual maturities and pledged securities at June 30, 2015 are shown below. Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without prepayment penalties. We classify mortgage backed securities (MBS) based on maturity date. However, we receive payments on a monthly basis. Available for Sale Amortized Fair June 30, 2015 cost value Maturing Within one year $ $ Over one to five years Over five to ten years Over ten years $ $ Pledged securities $ $

LOANS

LOANS	6 Months Ended
	Jun. 30, 2015
Loans and Allowance for Loan Losses
Loans and Allowance for Loan Losses	4. LOANS Major classifications of loans held for investment are as follows: June 30, 2015 December 31, 2014 Legacy (1) Acquired Total Legacy (1) Acquired Total Commercial Real Estate Owner Occupied $ $ $ $ $ $ Investment Hospitality Land and A&D Residential Real Estate First Lien-Investment First Lien-Owner Occupied Residential Land and A&D HELOC and Jr. Liens Commercial and Industrial Consumer Allowance for loan losses Deferred loan costs, net — $ $ $ $ $ $ (1) As a result of the acquisitions of Maryland Bankcorp, Inc. (Maryland Bankcorp), the parent company of Maryland Bank & Trust Company, N.A. (MB&T), in April 2011 and of WSB Holdings, the parent company of The Washington Savings Bank (“WSB”), in May 2013, we have segmented the portfolio into two components, loans originated by Old Line Bank “Legacy” and loans acquired from MB&T and WSB “Acquired”. Credit Policies and Administration We have adopted a comprehensive lending policy, which includes stringent underwriting standards for all types of loans. We have designed our underwriting standards to promote a complete banking relationship rather than a transactional relationship. In an effort to manage risk, prior to funding, the loan committee consisting of the Executive Officers and seven members of the Board of Directors must approve by a majority vote all credit decisions in excess of a lending officer’s lending authority. Management believes that it employs experienced lending officers, secures appropriate collateral and carefully monitors the financial condition of its borrowers and loan concentrations. In addition to the internal business processes employed in the credit administration area, Old Line Bank retains an outside independent firm to review the loan portfolio. This firm performs a detailed annual review and an interim update. We use the results of the firm’s report to validate our internal ratings and we review the commentary on specific loans and on our loan administration activities in order to improve our operations. Commercial Real Estate Loans We finance commercial real estate for our clients, for owner occupied and investment properties, hospitality and land acquisition and development. Commercial real estate loans totaled $666 .4 million and $600.7 million at June 30, 2015 and December 31, 2014, respectively. This lending has involved loans secured by owner ‑occupied commercial buildings for office, storage and warehouse space, as well as non ‑owner occupied commercial buildings. Our underwriting criteria for commercial real estate loans include maximum loan ‑to ‑value ratios, debt coverage ratios, secondary sources of repayments, guarantor requirements, net worth requirements and quality of cash flows. Loans secured by commercial real estate may be large in size and may involve a greater degree of risk than one ‑to ‑four family residential mortgage loans. Payments on such loans are often dependent on successful operation or management of the properties. We will generally finance owner occupied commercial real estate that does not exceed loan to value of 80% and investor real estate at a maximum loan to value of 75% . Commercial real estate lending entails significant risks. Risks inherent in managing our commercial real estate portfolio relate to sudden or gradual drops in property values as well as changes in the economic climate that may detrimentally impact the borrower’s ability to repay. We monitor the financial condition and operating performance of the borrower through a review of annual tax returns and updated financial statements. In addition, we meet with the borrower and/or perform site visits as required. At June 30, 2015, we had approximately $ 91.4 mi llion of commercial real estate loans outstanding to the hospitality industry. An individual review of these loans indicates that they generally have a low loan to value, more than acceptable existing or projected cash flow, are to experienced operators and are generally dispersed throughout the region. Residential Real Estate Loans We offer a variety of consumer oriented residential real estate loans including home equity lines of credit, home improvement loans and first or second mortgages on owner occupied and investment properties. Our residential loan portfolio amounted to $227.8 million and $211.5 million at June 30, 2015 and December 31, 2014. Although most of these loans are in our primary market area, the diversity of the individual loans in the portfolio reduces our potential risk. Usually, we secure our residential real estate loans with a security interest in the borrower’s primary or secondary residence with a loan to value not exceeding 85% . Our initial underwriting includes an analysis of the borrower’s debt/income ratio which generally may not exceed 43% , collateral value, length of employment and prior credit history. A credit score of 660 is required. We do not originate any subprime residential real estate loans. This segment of our portfolio also consists of funds advanced for construction of custom single family residences homes (where the home buyer is the borrower) and financing to builders for the construction of pre-sold homes and multi ‑family housing. These loans generally have short durations, meaning maturities typically of six months or less. Old Line Bank limits its construction lending risk through adherence to established underwriting procedures. These loans generally have short durations, meaning maturities typically of six months or less. Residential houses, multi ‑family dwellings and commercial buildings under construction and the underlying land for which the loan was obtained secure the construction loans. The vast majority of these loans are concentrated in our primary market area. Construction lending also entails significant risk. These risks generally involve larger loan balances concentrated with single borrowers with funds advanced upon the security of the land or the project under construction. An appraisal of the property estimates the value of the project “as is and as if” completed. An appraisal of the property estimates the value of the project prior to completion of construction. Thus, initial funds are advanced based on the current value of the property with the remaining construction funds advanced under a budget sufficient to successfully complete the project within the “as completed” loan to value. To further mitigate the risks, we generally limit loan amounts to 80% or less of appraised values and obtain first lien positions on the property. We generally only offer real estate construction financing only to experienced builders, commercial entities or individuals who have demonstrated the ability to obtain a permanent loan “take ‑out” (conversion to a permanent mortgage upon completion of the project). We also perform a complete analysis of the borrower and the project under construction. This analysis includes a review of the cost to construct, the borrower’s ability to obtain a permanent “take ‑out” the cash flow available to support the debt payments and construction costs in excess of loan proceeds, and the value of the collateral. During construction, we advance funds on these loans on a percentage of completion basis. We inspect each project as needed prior to advancing funds during the term of the construction loan. We may provide permanent financing on the same projects for which we have provided the construction financing. We also offer fixed rate home improvement loans. Our home equity and home improvement loan portfolio gives us a diverse client base. Although most of these loans are in our primary market area, the diversity of the individual loans in the portfolio reduces our potential risk. Usually, we secure our home equity loans and lines of credit with a security interest in the borrower’s primary or secondary residence. Under our loan approval policy, all residential real estate loans approved must comply with federal regulations. Generally, we will make residential mortgage loans in amounts up to the limits established from time to time by Fannie Mae and Freddie Mac for secondary market resale purposes. This amount for single-family residential loans currently varies from $417,000 up to a maximum of $625,500 for certain high-cost designated areas. We also make residential mortgage loans up to limits established by the Federal Housing Administration, which currently is $625,500 . The Washington, D.C. and Baltimore areas are both considered high-cost designated areas. We will, however, make loans in excess of these amounts if we believe that we can sell the loans in the secondary market or that the loans should be held in our portfolio. For loans sold in the secondary market, we require a credit score of at least 640 with some exceptions to 620 for veterans. Loans sold in the secondary market are sold to investors on a servicing released basis and recorded as loans held-for-sale. The premium is recorded in gain on sale of loans in non-interest income, net of commissions paid to the loan officers. Commercial and Industrial Lending Our commercial and industrial lending consists of lines of credit, revolving credit facilities, accounts receivable financing, term loans, equipment loans, SBA loans, standby letters of credit and unsecured loans. We originate commercial loans for any business purpose including the financing of leasehold improvements and equipment, the carrying of accounts receivable, general working capital, and acquisition activities. We have a diverse client base and we do not have a concentration of these types of loans in any specific industry segment. We generally secure commercial business loans with accounts receivable, equipment, deeds of trust and other collateral such as marketable securities, cash value of life insurance and time deposits at Old Line Bank. Commercial business loans have a higher degree of risk than residential mortgage loans because the availability of funds for repayment generally depends on the success of the business. They may also involve high average balances, increased difficulty monitoring and a high risk of default. To help manage this risk, we typically limit these loans to proven businesses and we generally obtain appropriate collateral and personal guarantees from the borrower’s principal owners and monitor the financial condition of the business. For loans in excess of $250,000 , monitoring generally includes a review of the borrower’s annual tax returns and updated financial statements. Consumer Installment Lending We offer various types of secured and unsecured consumer loans. We make consumer loans for personal, family or household purposes as a convenience to our customer base. This category includes our luxury boat loans, which we made prior to 2008 and that remain in our portfolio. Consumer loans, however, are not a focus of our lending activities. The underwriting standards for consumer loans include a determination of the applicant’s payment history on other debts and an assessment of his or her ability to meet existing obligations and payments on the proposed loan. As a general guideline, a consumer’s total debt service should not exceed 40% of his or her gross income. Consumer loans may present greater credit risk than residential mortgage loans because many consumer loans are unsecured or rapidly depreciating assets secure these loans. Repossessed collateral for a defaulted consumer loan may not provide an adequate source of repayment of the outstanding loan balance because of the greater likelihood of damage, loss or depreciation. Consumer loan collections depend on the borrower’s continuing financial stability. If a borrower suffers personal financial difficulties, the consumer may not repay the loan. Also, various federal and state laws, including bankruptcy and insolvency laws, may limit the amount we can recover on such loans. However, in our opinion, many of these risks do not apply to the luxury boat portion of the loan portfolio due to the credit quality and liquidity of these borrowers. Concentrations of Credit Most of our lending activity occurs within the state of Maryland within the suburban Washington, D.C. market area in Anne Arundel, Calvert, Charles, Montgomery, Prince George’s and St. Mary’s Counties. The majority of our loan portfolio consists of commercial real estate loans and residential real estate loans. Non ‑Accrual and Past Due Loans We consider loans past due if the borrower has not paid the required principal and interest payments when due under the original or modified terms of the promissory note and place a loan on non ‑accrual status when the payment of principal or interest has become 90 days past due. When we classify a loan as non ‑accrual, we no longer accrue interest on such loan and we reverse any interest previously accrued but not collected. We will generally restore a non ‑accrual loan to accrual status when the borrower brings delinquent principal and interest payments current and we expect to collect future monthly principal and interest payments. We recognize interest on non ‑accrual legacy loans only when received. We originally recorded purchased, credit ‑impaired loans at fair value upon acquisition, and an accretable yield is established and recognized as interest income on purchased loans to the extent subsequent cash flows support the estimated accretable yield. Purchased, credit ‑impaired loans that perform consistently with the accretable yield expectations are not reported as non ‑accrual or non ‑performing. However, purchased, credit ‑impaired loans that do not continue to perform according to accretable yield expectations are considered impaired, and presented as non ‑accrual and non ‑performing. Currently, management expects to fully collect the carrying value of acquired, credit ‑impaired loans. The table below presents an aging analysis of the loans held for investment portfolio at June 30, 2015 and December 31, 2014. Age Analysis of Past Due Loans June 30, 2015 December 31, 2014 Legacy Acquired Total Legacy Acquired Total Current $ $ $ $ $ $ Accruing past due loans: 30-89 days past due Commercial Real Estate: Owner Occupied — — — Investment — — — — Residential Real Estate: First-Investment — First-Owner Occupied — — Land and A&D — — — — HELOC and Jr. Liens — — — — Commercial Consumer — Total 30-89 days past due 90 or more days past due Commercial Real Estate: Owner Occupied — — — — — — Residential Real Estate: First-Investment — — — — — — First-Owner Occupied — — — — Land and A&D — — — — — — Commercial — — — — — — Consumer — — — — — — Total 90 or more days past due — — — — Total accruing past due loans Recorded Investment Non-accruing loans: Commercial Real Estate: Owner Occupied Investment — — — — Hospitality — — — — — — Residential Real Estate: — First-Investment First-Owner Occupied — — Land and A&D — — Commercial — Consumer — — — — Total Recorded Investment Non-accruing past due loans: Total Loans $ $ $ $ $ $ We consider all non-performing loans and troubled debt restructurings (TDRs) to be impaired. We do not recognize interest income on non-performing loans during the time period that the loans are non-performing. We only recognize interest income on non-performing loans when we receive payment in full for all amounts due of all contractually required principle and interest, and the loan is current with its contractual terms. The tables below present our impaired loans at and for the periods ended June 30, 2015 and December 31, 2014. Impaired Loans June 30, 2015 Three months June 30, 2015 Six Months Ended June 30, Unpaid Average Interest Average Interest Principal Recorded Related Recorded Income Recorded Income Balance Investment Allowance Investment Recognized Investment Recognized Legacy With no related allowance recorded: Commercial Real Estate: Owner Occupied $ $ $ — $ $ $ $ Investment — Residential Real Estate: First-Investment $ $ $ — $ $ — $ — Commercial — — — With an allowance recorded: Commercial Real Estate: Owner Occupied — — Investment Residential Real Estate: First-Investment Commercial — — — — — — — Consumer — — — — — — — Total legacy impaired Acquired (1) With no related allowance recorded: Commercial Real Estate: Owner Occupied — — — Land and A&D — Residential Real Estate: First-Owner Investment — — — First-Owner Occupied — Commercial — — With an allowance recorded: Commercial Real Estate: Investment — — Land and A&D — — Residential Real Estate: First-Owner Investment — — First-Owner Occupied — — Commercial — — — — — — — Total acquired impaired Total impaired $ $ $ $ $ $ $ (1) Generally accepted accounting principles require that we initially 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 the definition of an acquired, credit-impaired loan. Although we do not accrue interest income at the contractual rate on these loans, we do recognize an accretable yield as interest income to the extent such yield is supported by cash flow analysis of the underlying loans. Acquired, credit-impaired loans where the cash flows do not perform according to initial accretable yield estimates are considered impaired. Impaired Loans December 31, 2014 Unpaid Average Interest Principal Recorded Related Recorded Income Balance Investment Allowance Investment Recognized Legacy With no related allowance recorded: Commercial Real Estate: Owner Occupied $ $ $ — $ $ Investment — Residential Real Estate: First-Investment — — Commercial — With an allowance recorded: Commercial Consumer Total legacy impaired Acquired (1) With no related allowance recorded: Commercial Real Estate: Owner Occupied — Land and A&D — Residential Real Estate: First-Owner Occupied — Investment — Land and A&D — — — — — Commercial — With an allowance recorded: Commercial Real Estate: Land and A&D Total acquired impaired Total impaired $ $ $ $ $ (1) Generally accepted accounting principles require that we initially 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 the definition of an acquired, credit-impaired loan. Although we do not accrue interest income at the contractual rate on these loans, we do recognize an accretable yield as interest income to the extent such yield is supported by cash flow analysis of the underlying loans. Acquired, credit-impaired loans where the cash flows do not perform according to initial accretable yield estimates are considered impaired. We consider a loan a TDR when we conclude that both of the following conditions exist: the restructuring constitutes a concession and the debtor is experiencing financial difficulties. Restructured loans at June 30, 2015 consisted of three loans for $354 thousand compared to four loans at December 31, 2014 for $589 thousand . We had no loans that were modified as a TDR during the three or six month periods ending June 30, 2015 or 2014. We had no loans that were modified as a TDR that defaulted within twelve months of the modification date during the three or six month periods ending June 30, 2015. Acquired impaired loans The following table documents changes in the accretable discount on acquired impaired loans during the six months ended June 30, 2015 and 2014, along with the outstanding balances and related carrying amounts for the beginning and end of those respective periods. Six Months Ended June 30, 2015 2014 Balance at beginning of period $ $ Accretion of fair value discounts Reclassification from non-accretable Balance at end of period $ $ Contractually Required Payments Receivable Carrying Amount At June 30, 2015 $ $ At December 31, 2014 At June 30, 2014 At December 31, 2013 Credit Quality Indicators We review the adequacy of the allowance for loan losses at least quarterly. We base the evaluation of the adequacy of the allowance for loan losses upon loan categories. We categorize loans as residential real estate loans, commercial real estate loans, commercial loans and consumer loans. We further divide commercial real estate loans by owner occupied, investment, hospitality and land acquisition and development. We also divide residential real estate by owner occupied, investment, land acquisition and development and junior liens. All categories are divided by risk rating and loss factors and weighed by risk rating to determine estimated loss amounts. We evaluate delinquent loans and loans for which management has knowledge about possible credit problems of the borrower or knowledge of problems with collateral separately and assign loss amounts based upon the evaluation. We determine loss ratios for all loans based upon a review of the three year loss ratio for the category and qualitative factors. 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. If a loan that was previously rated a pass performing loan, from our acquisitions, deteriorates subsequent to the acquisition, the subject loan will be assessed for risk and, if necessary, evaluated for impairment. If the risk assessment rating is adversely changed and the loan is determined to not be impaired, the loan will be placed in a migration category and the credit mark established for the loan will be compared to the general reserve allocation that would be applied using the current allowance for loan losses formula for General Reserves. If the credit mark exceeds the allowance for loan losses formula for General Reserves, there will be no change to the allowance for loan losses. If the credit mark is less than the current allowance for loan losses formula for General Reserves, the allowance for loan losses will be increased by the amount of the shortfall by a provision recorded in the income statement. If the loan is deemed impaired, the loan will be subject to evaluation for loss exposure and a specific reserve. If the estimate of loss exposure exceeds the credit mark, the allowance for loan losses will be increased by the amount of the excess loss exposure through a provision. If the credit mark exceeds the estimate of loss exposure there will be no change to the allowance for loan losses. If a loan from the acquired loan portfolio is carrying a specific credit mark and a current evaluation determines that there has been an increase in loss exposure, the allowance for loan losses will be increased by the amount of the current loss exposure in excess of the credit mark. The following tables outline the class of loans by risk rating at June 30, 2015 and December 31, 2014: June 30, 2015 Account Balance Legacy Acquired Total Risk Rating Pass (1-5) Commercial Real Estate: Owner Occupied $ $ $ Investment Hospitality Land and A&D Residential Real Estate: First-Investment First-Owner Occupied Land and A&D HELOC and Jr. Liens Commercial Consumer — Special Mention (6) Commercial Real Estate: Owner Occupied Investment Hospitality — — — Land and A&D Residential Real Estate: First-Investment First-Owner Occupied Land and A&D HELOC and Jr. Liens — Commercial Consumer — — — Substandard (7) Commercial Real Estate: Owner Occupied Investment Hospitality — — — Land and A&D — — — Residential Real Estate: First-Investment First-Owner Occupied — Land and A&D — HELOC and Jr. Liens — — — Commercial Consumer — — — Doubtful (8) — — — Loss (9) — — — Total $ $ $ December 31, 2014 Account Balance Legacy Acquired Total Risk Rating Pass (1-5) Commercial Real Estate: Owner Occupied $ $ $ Investment Hospitality Land and A&D Residential Real Estate: First-Investment First-Owner Occupied Land and A&D HELOC and Jr. Liens Commercial Consumer Special Mention (6) Commercial Real Estate: Owner Occupied Investment Hospitality — — — Land and A&D Residential Real Estate: First-Investment First-Owner Occupied Land and A&D HELOC and Jr. Liens — Commercial Consumer — — — Substandard (7) Commercial Real Estate: Owner Occupied Investment Hospitality — — — Land and A&D — — — Residential Real Estate: First-Investment First-Owner Occupied — Land and A&D — HELOC and Jr. Liens — — — Commercial Consumer — Doubtful (8) — — — Loss (9) — — — Total $ $ $ The following table details activity in the allowance for loan losses by portfolio segment for the three and six month periods ended June 30, 2015 and 2014. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. Commercial Residential Three Months Ended June 30, 2015 Commercial Real Estate Real Estate Consumer Total Beginning balance $ $ $ $ $ General provision for loan losses Recoveries — Loans charged off — Ending Balance $ $ $ $ $ Commercial Residential Six Months Ended June 30, 2015 Commercial Real Estate Real Estate Consumer Total Beginning balance $ $ $ $ $ General provision for loan losses Recoveries Loans charged off — Ending Balance $ $ $ $ $ Amount allocated to: Legacy Loans: Individually evaluated for impairment $ — $ $ $ — $ Other loans not individually evaluated Acquired Loans: Individually evaluated for impairment — — Ending balance $ $ $ $ $ Commercial Residential Three Months Ended June 30, 2014 Commercial Real Estate Real Estate Consumer Total Beginning balance $ $ $ $ $ General provision for loan losses Provision for loan losses for loans acquired with deteriorated credit quality — — Recoveries Loans charged off — Ending Balance $ $ $ $ $ Commercial Residential Six Months Ended June 30, 2014 Commercial Real Estate Real Estate Consumer Total Beginning balance $ $ $ $ $ General provision for loan losses Provision for loan losses for loans acquired with deteriorated credit quality — — Recoveries Loans charged off — Ending Balance $ $ $ $ $ Allowance allocated to: Legacy Loans: Individually evaluated for impairment $ $ $ — $ $ Other loans not individually evaluated Acquired Loans: Individually evaluated for impairment — — Ending balance $ $ $ $ $ Our recorded investment in loans at June 30, 2015 and 2014 related to each balance in the allowance for probable loan losses by portfolio segment and disaggregated on the basis of our impairment methodology was as follows: Commercial Residential June 30, 2015 Commercial Real Estate Real Estate Consumer Total Legacy loans: Individually evaluated for impairment with specific reserve $ — $ $ $ — $ Individually evaluated for impairment without specific reserve — Other loans not individually evaluated Acquired loans: Individually evaluated for impairment with specific reserve subsequent to acquisition (ASC 310-20 at acquisition) — — Individually evaluated for impairment without specific reserve (ASC 310-20 at acquisition) — Individually evaluated for impairment without specific reserve (ASC 310-30 at acquisition) — — — — — Collectively evaluated for impairment without reserve (ASC 310-20 at acquisition) Ending balance $ $ $ $ $ Commercial Residential June 30, 2014 Commercial Real Estate Real Estate Consumer Total Legacy loans: Individually evaluated for impairment with specific reserve $ $ $ — $ $ Individually evaluated for impairment without specific reserve — Other loans not individually evaluated Acquired loans: Individually evaluated for impairment with specific reserve subsequent to acquisition (ASC 310-20 at acquisition) — — Individually evaluated for impairment without specific reserve (ASC 310-20 at acquisition) — — Individually evaluated for impairment without specific reserve (ASC 310-30 at acquisition) — — — — — Collectively evaluated for impairment without reserve (ASC 310-20 at acquisition) Ending balance $ $ $ $ $

OTHER REAL ESTATE OWNED

OTHER REAL ESTATE OWNED	6 Months Ended
	Jun. 30, 2015
OTHER REAL ESTATE OWNED
OTHER REAL ESTATE OWNED	5. OTHER REAL ESTATE OWNED At June 30, 2015 and December 31, 2014, the fair value of other real estate owned was $1.2 million and $2.5 million, respectively. As a result of the acquisitions of Maryland Bankcorp and WSB Holdings, we have segmented the other real estate owned into two components, real estate obtained as a result of loans originated by Old Line Bank (legacy) and other real estate acquired from MB&T and WSB or obtained as a result of loans originated by MB&T and WSB (acquired). The following outlines the transactions in other real estate owned during the period. Six Months Ended June 30, 2015 Legacy Acquired Total Beginning balance $ $ $ Real estate acquired through foreclosure of loans — — — Additional write down of real estate owned — Sales/deposit on sales — Net realized gain (loss) on sale of real estate owned — Ending balance $ $ $ Residential Foreclosures and Repossessed Assets — Once all potential alternatives for reinstatement are exhausted, past due loans collateralized by residential real estate are referred for foreclosure proceedings in accordance with local requirements of the applicable jurisdiction. Once possession of the property collateralizing the loan is obtained, the repossessed property will be recorded within other assets either as other real estate owned or, where management has both the intent and ability to recover its losses through a government guarantee, as a foreclosure claim receivable. At June 30, 2015, residential foreclosures classified as other real estate owned totaled $336 thousand. Loans secured by residential real estate in process of foreclosure totaled $2.7 million at June 30, 2015 compared to $2.5 million at December 31, 2014.

EARNINGS PER COMMON SHARE

EARNINGS PER COMMON SHARE	6 Months Ended
	Jun. 30, 2015
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE	6. EARNINGS PER COMMON SHARE We determine basic earnings per common share by dividing net income available to common stockholders by the weighted average number of shares of common stock outstanding giving retroactive effect to stock dividends. We calculate diluted earnings per common share by including the average dilutive common stock equivalents outstanding during the period. Dilutive common equivalent shares consist of stock options, calculated using the treasury stock method. Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Weighted average number of shares Dilutive average number of shares

STOCK BASED COMPENSATION

STOCK BASED COMPENSATION	6 Months Ended
	Jun. 30, 2015
STOCK BASED COMPENSATION
STOCK BASED COMPENSATION	7. STOCK BASED COMPENSATION For the three months ended June 30, 2015 and 2014, we recorded stock-based compensation expense of $90,165 and $ 71,280 , respectively. For the six months ended June 30, 2015 and 2014, we recorded stock-based compensation expense of $ 182,067 and $ 198,082 , respectively. At June 30, 2015, there was $482,585 of total unrecognized compensation cost related to non-vested stock options and restricted stock awards that we expect to realize over the next 2.5 years. As of June 30, 2015, there were 425,264 shares remaining available for future issuance under the equity incentive plans. The officers exercised 22,000 options during the six month period ended June 30, 2015 compared to no options exercised for the six months ended June 30, 2014. For purposes of determining estimated fair value of stock options and restricted stock awards, we have computed the estimated fair values of all stock-based compensation using the Black-Scholes option pricing model and, for stock options and restricted stock awards granted prior to December 31, 2014, have applied the assumptions set forth in Old Line Bancshares’ Annual Report on Form 10-K for the year ended December 31, 2014. During the six months ended June 30, 2015 and 2014, we granted 50,597 and 50,759 stock options, respectively. The weighted average grant date fair value of these 2015 stock options is $5.09 and was computed using the Black-Scholes option pricing model under similar assumptions. During the six months ended June 30, 2015 and 2014, we granted 9,331 and 8,257 restricted common stock awards, respectively. The weighted average grant date fair value of these restricted stock awards is $14.38 at June 30, 2015. There were no restricted shares forfeited during the six month periods ending June 30, 2015 and 2014.

FAIR VALUE MEASUREMENT

FAIR VALUE MEASUREMENT	6 Months Ended
	Jun. 30, 2015
Fair Value Measurement
Fair Value Measurement	8. FAIR VALUE MEASUREMENT The fair value of an asset or liability is the price that participants would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability, or, in the absence of a principal market, the most advantageous market for the asset or liability. The price in the principal (or most advantageous) market used to measure the fair value of the asset or liability shall not be adjusted for transaction costs. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets and liabilities; it is not a forced transaction. Market participants are buyers and sellers in the principal market that are (i) independent, (ii) knowledgeable, (iii) able to transact and (iv) willing to transact. The fair value hierarchy established by accounting standards defines three input levels for fair value measurement. The applicable standard describes three levels of inputs that may be used to measure fair value: Level 1 is based on quoted market prices in active markets for identical assets. Level 2 is based on significant observable inputs other than Level 1 prices. Level 3 is based on significant unobservable inputs that reflect a company’s own assumptions about the assumption that market participants would use in pricing an asset or liability. We evaluate fair value measurement inputs on an ongoing basis in order to determine if there is a change of sufficient significance to warrant a transfer between levels. For the six months ended June 30, 2015 and year ended December 31, 201 4, there were no transfers between levels. At June 30, 2015, we hold, as part of our investment portfolio, available for sale securities reported at fair value consisting of municipal securities, U.S. government sponsored entities, mortgage-backed securities. The fair value of the majority of these securities is determined using widely accepted valuation techniques including matrix pricing and broker-quote based applications. Inputs include benchmark yields, reported trades, issuer spreads, prepayments speeds and other relevant items. These are inputs used by a third-party pricing service used by us. To validate the appropriateness of the valuations provided by the third party, we regularly update the understanding of the inputs used and compare valuations to an additional third party source. We classify all our investment securities available for sale in Level 2 of the fair value hierarchy, with the exception of treasury securities which fall into Level 1. Assets and Liabilities Measured at Fair Value on a Recurring Basis At June 30, 2015 (In thousands) Quoted Prices in Other Significant Total Changes Active Markets for Observable Unobservable in Fair Values Identical Assets Inputs Inputs Included in Carrying Value (Level 1) (Level 2) (Level 3) Period Earnings Available-for-sale: Treasury securities $ $ $ — $ — $ — U.S. government agency — — — Municipal securities — — — FHLMC MBS — — — FNMA MBS — — — GNMA MBS — — — SBA loan pools — — — Total recurring assets at fair value $ $ $ $ — $ — At December 31, 2014 (In thousands) Quoted Prices in Other Significant Total Changes Active Markets for Observable Unobservable in Fair Values Identical Assets Inputs Inputs Included in Carrying Value (Level 1) (Level 2) (Level 3) Period Earnings Available-for-sale: Treasury securities $ $ $ — $ — $ — U.S. government agency — — — Municipal securities — — — FHLMC MBS — — — FNMA MBS — — — GNMA MBS — — — SBA loan pools — — — Total recurring assets at fair value — — Our valuation methodologies may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. While management believes our methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value. Furthermore, we have not comprehensively revalued the fair value amounts since the presentation dates, and therefore, estimates of fair value after the balance sheet date may differ significantly from the above presented amounts. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis We may be required from time to time, to measure certain assets at fair value on a non-recurring basis in accordance with U.S. generally accepted accounting principles. These include assets that are measured at the lower of cost or market that were recognized at fair value below cost at the end of the period. Assets measured at fair value on a nonrecurring basis at June 30, 2015 and December 31, 2014 are included in the tables below. We also measure certain non-financial assets such as other real estate owned, TDRs, and repossessed or foreclosed property at fair value on a non-recurring basis. Generally, we estimate the fair value of these items using Level 2 inputs based on observable market data or Level 3 inputs based on discounting criteria. At June 30, 2015 (In thousands) Quoted Prices in Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs Carrying Value (Level 1) (Level 2) (Level 3) Impaired Loans Legacy: $ $ — $ — $ Acquired: — — Total Impaired Loans — — Other real estate owned: Legacy: — — Acquired: — — Total other real estate owned: — — Total $ $ — $ — $ At December 31, 2014 (In thousands) Quoted Prices in Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs Carrying Value (Level 1) (Level 2) (Level 3) Impaired Loans Legacy: $ $ — $ — $ Acquired: — — Total Impaired Loans — — Other real estate owned: Legacy: — — $ Acquired: — — Total other real estate owned: — — Total $ $ — $ — $ As of June 30, 2015 and December 31, 2014, we estimated the fair value of impaired assets using Level 3 inputs to be $6.2 m illion and $9.5 million, respectively. We determined these Level 3 inputs based on appraisal evaluations, offers to purchase and/or appraisals that we obtained from an outside third party during the preceding twelve months less costs to sell. Discounts have predominantly been in the range of 0% to 50% . As a result of the acquisition of Maryland Bankcorp and WSB Holdings, we have segmented the other real estate owned into two components, real estate obtained as a result of loans originated by Old Line Bank (legacy) and other real estate acquired from MB&T and WSB or obtained as a result of loans originated by MB&T and WSB (acquired). We use the following methodologies for estimating fair values of financial instruments that we do not measure on a recurring basis. The estimated fair values of financial instruments equal the carrying value of the instruments except as noted. Cash and Cash Equivalents - For cash and cash equivalents, the carrying amount is a reasonable estimate of fair value because of the short maturities of these instruments. Loans- We estimate the fair value of loans, segregated by type based on similar financial characteristics, by discounting future cash flows using current rates for which we would make similar loans to borrowers with similar credit histories. We then adjust this calculated amount for any credit impairment. Loans held for Sale- Loans held for sale are carried at the lower of cost or market value. The fair values of loans held for sale are based on commitments on hand from investors within the secondary market for loans with similar characteristics. Investment Securities- We base the fair values of investment securities upon quoted market prices or dealer quotes. Equity Securities- Equity securities are considered restricted stock and are carried at cost which approximates fair value. Bank Owned Life Insurance - The carrying amount of Bank Owned Life Insurance (“BOLI”) purchased on a group of officers is a reasonable estimate of fair value. BOLI is an insurance product that provides an effective way to offset current employee benefit costs. Accrued Interest Receivable and Payable- The carrying amount of accrued interest and dividends receivable on loans and investments and payable on borrowings and deposits approximate their fair values. Interest bearing deposits- The fair value of demand deposits and savings accounts is the amount payable on demand. We estimate the fair value of fixed maturity certificates of deposit using the rates currently offered for deposits of similar remaining maturities. Non-Interest bearing deposits- The fair value of non-interest bearing accounts is the amount payable on demand at the reporting date. Long and short term borrowings- The fair value of long and short term fixed rate borrowings is estimated by discounting the value of contractual cash flows using rates currently offered for advances with similar terms and remaining maturities. Off-balance Sheet Commitments and Contingencies- Carrying amounts are reasonable estimates of the fair values for such financial instruments. Carrying amounts include unamortized fee income and, in some cases, reserves for any credit losses from those financial instruments. These amounts are not material to our financial position. Under ASC Topic 825, entities may choose to measure eligible financial instruments at fair value at specified election dates. The fair value measurement option (i) may be applied instrument by instrument, with certain exceptions, (ii) is generally irrevocable and (iii) is applied only to entire instruments and not to portions of instruments. We must report in earnings unrealized gains and losses on items for which we have elected the fair value measurement option at each subsequent reporting date. We measure certain financial assets and financial liabilities at fair value on a non-recurring basis. These assets and liabilities are subject to fair value adjustments in certain circumstances such as when there is evidence of impairment. June 30, 2015 (In thousands) Quoted Prices Significant Significant Total in Active Other Other Carrying Estimated Markets for Observable Unobservable Amount Fair Identical Assets Inputs Inputs (000’s) Value (Level 1) (Level 2) (Level 3) Assets: Cash and cash equivalents $ $ $ $ — $ — Loans receivable, net — — Loans held for sale — — Investment securities available for sale — Equity Securities at cost — — Bank Owned Life Insurance — — Accrued interest receivable — Liabilities: Deposits: Non-interest-bearing — — Interest bearing — — Short term borrowings — — Long term borrowings — — Accrued Interest payable — — December 31, 2014 (In thousands) Quoted Prices Significant Significant Total in Active Other Other Carrying Estimated Markets for Observable Unobservable Amount Fair Identical Assets Inputs Inputs (000’s) Value (Level 1) (Level 2) (Level 3) Assets: Cash and cash equivalents $ $ $ $ — $ — Loans receivable, net — — Loans held for sale — — Investment securities available for sale — Equity Securities at cost — — Bank Owned Life Insurance — — Accrued interest receivable — Liabilities: Deposits: Non-interest-bearing — — Interest bearing — — Short term borrowings — — Long term borrowings — — Accrued Interest payable — —

Short Term Borrowings

Short Term Borrowings	6 Months Ended
	Jun. 30, 2015
Short Term Borrowings
Short Term Borrowings	9. SHORT TERM BORROWINGS Short term borrowings consist of promissory notes or overnight repurchase agreements sold to the Bank’s customers, federal funds purchased and advances from the FHLB. Securities Sold Under Agreements to Repurchase To support the $26.7 million in repurchase agreements at June 30, 2015, we have provided collateral in the form of investment securities. At June 30, 2015, we have pledged $33.1 million in U.S. government agency securities and mortgage-backed securities to customers who require collateral for overnights repurchase agreements and deposits. Securities sold under agreements to repurchase are stated at the amount of cash received in connection with the transaction. As a result, there is no offsetting or netting of the investment securities assets with the repurchase agreement liabilities. We monitor collateral levels on a continuous basis. We may be required to provide additional collateral based on the fair value of the underlying securities in the event the collateral fair value falls below stipulated levels. We closely monitor the collateral levels to ensure adequate levels are maintained. Securities pledged as collateral under repurchase agreements are maintained with our safekeeping agents. We have the right to sell or re-pledge the investment securities. For government entity repurchase agreements, the collateral is held by Old Line Bank in a segregated custodial account under a tri-party agreement. The repurchase agreements totaling $26.7 million mature daily and will remain fully collateralized until the account has been closed or terminated

SUMMARY OF SIGNIFICANT ACCOUN18

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2015
Summary of Significant Accounting Policies
Basis of Presentation and Consolidation	Basis of Presentation and Consolidation - The accompanying condensed consolidated financial statements include the activity of Old Line Bancshares and its wholly owned subsidiary, Old Line Bank, and its majority owned subsidiary Pointer Ridge Office Investments, LLC (Pointer Ridge), a real estate investment company. We have eliminated all significant intercompany transactions and balances. We report the non-controlling interests in Pointer Ridge separately in the consolidated balance sheet. We report the income of Pointer Ridge attributable to Old Line Bancshares on the consolidated statement of income. The foregoing consolidated financial statements for the periods ended June 30, 2015 and 2014 are unaudited and have been prepared in accordance with U.S. generally accepted accounting principles (US GAAP); however, in the opinion of management we have included all adjustments (comprising only normal recurring accruals) necessary for a fair presentation of the results of the interim period. We derived the balances as of December 31, 2014 from audited financial statements. These statements should be read in conjunction with Old Line Bancshares’ financial statements and accompanying notes included in Old Line Bancshares’ Form 10-K for the year ended December 31, 2014. We have made no significant changes to Old Line Bancshares’ accounting policies as disclosed in the Form 10-K.
Use of estimates	Use of estimates - The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. These estimates and assumptions may affect the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. A material estimate that is particularly susceptible to significant change in the near term relates to the determination of the allowance for loan losses
Reclassifications	Reclassifications - We have made certain reclassifications to the 2014 financial presentation to conform to the 2015 presentation. These reclassifications did not change net income or stockholders’ equity.
Recent Accounting Pronouncements	Recent Accounting Pronouncements - I n August 2014, the Financial Accounting Board “FASB”) issued Accounting Standard Update (“ASU”) No. 2014-14- Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40): Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure , to address the diversity in practice regarding the classification and measurement of foreclosed loans which were part of a government-sponsored loan guarantee program (e.g. HUD, FHA, VA). The ASU outlines certain criteria and provides that, if met, the loan (residential or commercial) should be derecognized and a separate other receivable should be recorded upon foreclosure at the amount of the loan balance (principal and interest) expected to be recovered from the guarantor. This ASU will be effective for annual reporting periods beginning after December 15, 2014, including interim periods within that reporting period. The adoption of ASU No. 2014-14 did not have a material impact on our consolidated financial statements and the required disclosures have been included in Note 5. In June 2014, the FASB issued ASU No. 2014-11, Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures. The new guidance aligns the accounting for repurchase-to-maturity transactions and repurchase agreements executed as repurchase financings with the accounting for other typical repurchase agreements. Going forward, these transactions would all be accounted for as secured borrowings. The guidance eliminates sale accounting for repurchase-to-maturity transactions and supersedes the guidance under which a transfer of a financial asset and a contemporaneous repurchase financing could be accounted for on a combined basis as a forward agreement, which has resulted in outcomes referred to as off-balance-sheet accounting. The amendments in the ASU require a new disclosure for transactions economically similar to repurchase agreements in which the transferor retains substantially all of the exposure to the economic return on the transferred financial assets throughout the term of the transaction. The amendments in the ASU also require expanded disclosures, effective for the current reporting period of June 30, 2015, about the nature of collateral pledged in repurchase agreements and similar transactions accounted for as secured borrowings (see Note 9 to the Consolidated Financial Statements). We adopted the amendments in this ASU effective January 1, 2015. As of June 30, 2015, all of our repurchase agreements were typical in nature (i.e., not repurchase-to-maturity transactions or repurchase agreements executed as a repurchase financing) and are accounted for as secured borrowings. As such, the adoption of ASU No. 2014-11 did not have a material impact on our consolidated financial statements.

POINTER RIDGE OFFICE INVESTMENT

POINTER RIDGE OFFICE INVESTMENT, LLC (Tables)	6 Months Ended
	Jun. 30, 2015
Pointer Ridge Office Investment, LLC
Summary of condensed Balance Sheets and Statements of Income information	The following table summarizes the condensed Balance Sheets and Statements of Income information for Pointer Ridge Office Investment, LLC. June 30, December 31, Balance Sheets 2015 2014 Current assets $ $ Non-current assets Liabilities Equity Three Months Ended Six Months Ended June 30, June 30, Statements of Income 2015 2014 2015 2014 Revenue $ $ $ $ Expenses Net income (loss) $ $ $ $

INVESTMENT SECURITIES (Tables)

INVESTMENT SECURITIES (Tables)	6 Months Ended
	Jun. 30, 2015
Investment Securities
Summary of the amortized cost and estimated fair value of securities	Gross Gross Amortized unrealized unrealized Estimated cost gains losses fair value June 30, 2015 Available for sale U.S. treasury $ $ $ — $ U.S. government agency Municipal securities Mortgage backed securities: FHLMC certificates FNMA certificates GNMA certificates SBA loan pools $ $ $ $ December 31, 2014 Available for sale U.S. treasury $ $ $ — $ U.S. government agency Municipal securities Mortgage backed securities FHLMC certificates FNMA certificates GNMA certificates SBA loan pools — $ $ $ $
Schedule of securities with unrealized losses segregated by length of impairment	June 30, 2015 Less than 12 months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized value losses value losses value losses U.S. Treasury $ — $ — $ — $ — $ — $ — U.S. government agency — — Municipal securities Mortgage backed securities SBA loan pools — — Total unrealized losses $ $ $ $ $ $ December 31, 2014 Less than 12 months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized value losses value losses value losses U.S. government agency $ $ $ $ $ $ Municipal securities Mortgage backed securities SBA loan pools — — Total unrealized losses $ $ $ $ $ $
Schedule of contractual maturities and pledged securities	Available for Sale Amortized Fair June 30, 2015 cost value Maturing Within one year $ $ Over one to five years Over five to ten years Over ten years $ $ Pledged securities $ $

LOANS (Tables)

LOANS (Tables)	6 Months Ended
	Jun. 30, 2015
Loans and Allowance for Loan Losses
Summary of major classifications of loans held for investment	June 30, 2015 December 31, 2014 Legacy (1) Acquired Total Legacy (1) Acquired Total Commercial Real Estate Owner Occupied $ $ $ $ $ $ Investment Hospitality Land and A&D Residential Real Estate First Lien-Investment First Lien-Owner Occupied Residential Land and A&D HELOC and Jr. Liens Commercial and Industrial Consumer Allowance for loan losses Deferred loan costs, net — $ $ $ $ $ $ (1) As a result of the acquisitions of Maryland Bankcorp, Inc. (Maryland Bankcorp), the parent company of Maryland Bank & Trust Company, N.A. (MB&T), in April 2011 and of WSB Holdings, the parent company of The Washington Savings Bank (“WSB”), in May 2013, we have segmented the portfolio into two components, loans originated by Old Line Bank “Legacy” and loans acquired from MB&T and WSB “Acquired”.
Summary of aging analysis of the loan held for investment portfolio	Age Analysis of Past Due Loans June 30, 2015 December 31, 2014 Legacy Acquired Total Legacy Acquired Total Current $ $ $ $ $ $ Accruing past due loans: 30-89 days past due Commercial Real Estate: Owner Occupied — — — Investment — — — — Residential Real Estate: First-Investment — First-Owner Occupied — — Land and A&D — — — — HELOC and Jr. Liens — — — — Commercial Consumer — Total 30-89 days past due 90 or more days past due Commercial Real Estate: Owner Occupied — — — — — — Residential Real Estate: First-Investment — — — — — — First-Owner Occupied — — — — Land and A&D — — — — — — Commercial — — — — — — Consumer — — — — — — Total 90 or more days past due — — — — Total accruing past due loans Recorded Investment Non-accruing loans: Commercial Real Estate: Owner Occupied Investment — — — — Hospitality — — — — — — Residential Real Estate: — First-Investment First-Owner Occupied — — Land and A&D — — Commercial — Consumer — — — — Total Recorded Investment Non-accruing past due loans: Total Loans $ $ $ $ $ $
Summary of impaired loans	Impaired Loans June 30, 2015 Three months June 30, 2015 Six Months Ended June 30, Unpaid Average Interest Average Interest Principal Recorded Related Recorded Income Recorded Income Balance Investment Allowance Investment Recognized Investment Recognized Legacy With no related allowance recorded: Commercial Real Estate: Owner Occupied $ $ $ — $ $ $ $ Investment — Residential Real Estate: First-Investment $ $ $ — $ $ — $ — Commercial — — — With an allowance recorded: Commercial Real Estate: Owner Occupied — — Investment Residential Real Estate: First-Investment Commercial — — — — — — — Consumer — — — — — — — Total legacy impaired Acquired (1) With no related allowance recorded: Commercial Real Estate: Owner Occupied — — — Land and A&D — Residential Real Estate: First-Owner Investment — — — First-Owner Occupied — Commercial — — With an allowance recorded: Commercial Real Estate: Investment — — Land and A&D — — Residential Real Estate: First-Owner Investment — — First-Owner Occupied — — Commercial — — — — — — — Total acquired impaired Total impaired $ $ $ $ $ $ $ (1) Generally accepted accounting principles require that we initially 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 the definition of an acquired, credit-impaired loan. Although we do not accrue interest income at the contractual rate on these loans, we do recognize an accretable yield as interest income to the extent such yield is supported by cash flow analysis of the underlying loans. Acquired, credit-impaired loans where the cash flows do not perform according to initial accretable yield estimates are considered impaired. Impaired Loans December 31, 2014 Unpaid Average Interest Principal Recorded Related Recorded Income Balance Investment Allowance Investment Recognized Legacy With no related allowance recorded: Commercial Real Estate: Owner Occupied $ $ $ — $ $ Investment — Residential Real Estate: First-Investment — — Commercial — With an allowance recorded: Commercial Consumer Total legacy impaired Acquired (1) With no related allowance recorded: Commercial Real Estate: Owner Occupied — Land and A&D — Residential Real Estate: First-Owner Occupied — Investment — Land and A&D — — — — — Commercial — With an allowance recorded: Commercial Real Estate: Land and A&D Total acquired impaired Total impaired $ $ $ $ $
Schedule of the outstanding balances and related carrying amounts of acquired impaired loans	Six Months Ended June 30, 2015 2014 Balance at beginning of period $ $ Accretion of fair value discounts Reclassification from non-accretable Balance at end of period $ $ Contractually Required Payments Receivable Carrying Amount At June 30, 2015 $ $ At December 31, 2014 At June 30, 2014 At December 31, 2013
Schedule of allocation of allowance for loan losses by risk rating	June 30, 2015 Account Balance Legacy Acquired Total Risk Rating Pass (1-5) Commercial Real Estate: Owner Occupied $ $ $ Investment Hospitality Land and A&D Residential Real Estate: First-Investment First-Owner Occupied Land and A&D HELOC and Jr. Liens Commercial Consumer — Special Mention (6) Commercial Real Estate: Owner Occupied Investment Hospitality — — — Land and A&D Residential Real Estate: First-Investment First-Owner Occupied Land and A&D HELOC and Jr. Liens — Commercial Consumer — — — Substandard (7) Commercial Real Estate: Owner Occupied Investment Hospitality — — — Land and A&D — — — Residential Real Estate: First-Investment First-Owner Occupied — Land and A&D — HELOC and Jr. Liens — — — Commercial Consumer — — — Doubtful (8) — — — Loss (9) — — — Total $ $ $ December 31, 2014 Account Balance Legacy Acquired Total Risk Rating Pass (1-5) Commercial Real Estate: Owner Occupied $ $ $ Investment Hospitality Land and A&D Residential Real Estate: First-Investment First-Owner Occupied Land and A&D HELOC and Jr. Liens Commercial Consumer Special Mention (6) Commercial Real Estate: Owner Occupied Investment Hospitality — — — Land and A&D Residential Real Estate: First-Investment First-Owner Occupied Land and A&D HELOC and Jr. Liens — Commercial Consumer — — — Substandard (7) Commercial Real Estate: Owner Occupied Investment Hospitality — — — Land and A&D — — — Residential Real Estate: First-Investment First-Owner Occupied — Land and A&D — HELOC and Jr. Liens — — — Commercial Consumer — Doubtful (8) — — — Loss (9) — — — Total $ $ $
Summary of activity in the allowance for loan losses by portfolio segment	Commercial Residential Three Months Ended June 30, 2015 Commercial Real Estate Real Estate Consumer Total Beginning balance $ $ $ $ $ General provision for loan losses Recoveries — Loans charged off — Ending Balance $ $ $ $ $ Commercial Residential Six Months Ended June 30, 2015 Commercial Real Estate Real Estate Consumer Total Beginning balance $ $ $ $ $ General provision for loan losses Recoveries Loans charged off — Ending Balance $ $ $ $ $ Amount allocated to: Legacy Loans: Individually evaluated for impairment $ — $ $ $ — $ Other loans not individually evaluated Acquired Loans: Individually evaluated for impairment — — Ending balance $ $ $ $ $ Commercial Residential Three Months Ended June 30, 2014 Commercial Real Estate Real Estate Consumer Total Beginning balance $ $ $ $ $ General provision for loan losses Provision for loan losses for loans acquired with deteriorated credit quality — — Recoveries Loans charged off — Ending Balance $ $ $ $ $ Commercial Residential Six Months Ended June 30, 2014 Commercial Real Estate Real Estate Consumer Total Beginning balance $ $ $ $ $ General provision for loan losses Provision for loan losses for loans acquired with deteriorated credit quality — — Recoveries Loans charged off — Ending Balance $ $ $ $ $ Allowance allocated to: Legacy Loans: Individually evaluated for impairment $ $ $ — $ $ Other loans not individually evaluated Acquired Loans: Individually evaluated for impairment — — Ending balance $ $ $ $ $
Summary of recorded investment in loans related to each balance in the allowance for probable loan losses by portfolio segment and disaggregated on the basis of impairment methodology	Our recorded investment in loans at June 30, 2015 and 2014 related to each balance in the allowance for probable loan losses by portfolio segment and disaggregated on the basis of our impairment methodology was as follows: Commercial Residential June 30, 2015 Commercial Real Estate Real Estate Consumer Total Legacy loans: Individually evaluated for impairment with specific reserve $ — $ $ $ — $ Individually evaluated for impairment without specific reserve — Other loans not individually evaluated Acquired loans: Individually evaluated for impairment with specific reserve subsequent to acquisition (ASC 310-20 at acquisition) — — Individually evaluated for impairment without specific reserve (ASC 310-20 at acquisition) — Individually evaluated for impairment without specific reserve (ASC 310-30 at acquisition) — — — — — Collectively evaluated for impairment without reserve (ASC 310-20 at acquisition) Ending balance $ $ $ $ $ Commercial Residential June 30, 2014 Commercial Real Estate Real Estate Consumer Total Legacy loans: Individually evaluated for impairment with specific reserve $ $ $ — $ $ Individually evaluated for impairment without specific reserve — Other loans not individually evaluated Acquired loans: Individually evaluated for impairment with specific reserve subsequent to acquisition (ASC 310-20 at acquisition) — — Individually evaluated for impairment without specific reserve (ASC 310-20 at acquisition) — — Individually evaluated for impairment without specific reserve (ASC 310-30 at acquisition) — — — — — Collectively evaluated for impairment without reserve (ASC 310-20 at acquisition) Ending balance $ $ $ $ $

OTHER REAL ESTATE OWNED (Tables

OTHER REAL ESTATE OWNED (Tables)	6 Months Ended
	Jun. 30, 2015
OTHER REAL ESTATE OWNED
Schedule of transactions in other real estate owned during the period	Six Months Ended June 30, 2015 Legacy Acquired Total Beginning balance $ $ $ Real estate acquired through foreclosure of loans — — — Additional write down of real estate owned — Sales/deposit on sales — Net realized gain (loss) on sale of real estate owned — Ending balance $ $ $

EARNINGS PER COMMON SHARE (Tabl

EARNINGS PER COMMON SHARE (Tables)	6 Months Ended
	Jun. 30, 2015
EARNINGS PER COMMON SHARE
Schedule of weighted average and dilutive average number of shares	Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Weighted average number of shares Dilutive average number of shares

FAIR VALUE MEASUREMENT (Tables)

FAIR VALUE MEASUREMENT (Tables)	6 Months Ended
	Jun. 30, 2015
Fair Value Measurement
Schedule of assets and liabilities measured at fair value on a recurring basis	At June 30, 2015 (In thousands) Quoted Prices in Other Significant Total Changes Active Markets for Observable Unobservable in Fair Values Identical Assets Inputs Inputs Included in Carrying Value (Level 1) (Level 2) (Level 3) Period Earnings Available-for-sale: Treasury securities $ $ $ — $ — $ — U.S. government agency — — — Municipal securities — — — FHLMC MBS — — — FNMA MBS — — — GNMA MBS — — — SBA loan pools — — — Total recurring assets at fair value $ $ $ $ — $ — At December 31, 2014 (In thousands) Quoted Prices in Other Significant Total Changes Active Markets for Observable Unobservable in Fair Values Identical Assets Inputs Inputs Included in Carrying Value (Level 1) (Level 2) (Level 3) Period Earnings Available-for-sale: Treasury securities $ $ $ — $ — $ — U.S. government agency — — — Municipal securities — — — FHLMC MBS — — — FNMA MBS — — — GNMA MBS — — — SBA loan pools — — — Total recurring assets at fair value — —
Schedule of assets and liabilities measured at fair value on a nonrecurring basis	At June 30, 2015 (In thousands) Quoted Prices in Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs Carrying Value (Level 1) (Level 2) (Level 3) Impaired Loans Legacy: $ $ — $ — $ Acquired: — — Total Impaired Loans — — Other real estate owned: Legacy: — — Acquired: — — Total other real estate owned: — — Total $ $ — $ — $ At December 31, 2014 (In thousands) Quoted Prices in Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs Carrying Value (Level 1) (Level 2) (Level 3) Impaired Loans Legacy: $ $ — $ — $ Acquired: — — Total Impaired Loans — — Other real estate owned: Legacy: — — $ Acquired: — — Total other real estate owned: — — Total $ $ — $ — $
Schedule of estimated fair value of financial instruments	June 30, 2015 (In thousands) Quoted Prices Significant Significant Total in Active Other Other Carrying Estimated Markets for Observable Unobservable Amount Fair Identical Assets Inputs Inputs (000’s) Value (Level 1) (Level 2) (Level 3) Assets: Cash and cash equivalents $ $ $ $ — $ — Loans receivable, net — — Loans held for sale — — Investment securities available for sale — Equity Securities at cost — — Bank Owned Life Insurance — — Accrued interest receivable — Liabilities: Deposits: Non-interest-bearing — — Interest bearing — — Short term borrowings — — Long term borrowings — — Accrued Interest payable — — December 31, 2014 (In thousands) Quoted Prices Significant Significant Total in Active Other Other Carrying Estimated Markets for Observable Unobservable Amount Fair Identical Assets Inputs Inputs (000’s) Value (Level 1) (Level 2) (Level 3) Assets: Cash and cash equivalents $ $ $ $ — $ — Loans receivable, net — — Loans held for sale — — Investment securities available for sale — Equity Securities at cost — — Bank Owned Life Insurance — — Accrued interest receivable — Liabilities: Deposits: Non-interest-bearing — — Interest bearing — — Short term borrowings — — Long term borrowings — — Accrued Interest payable — —

POINTER RIDGE OFFICE INVESTME25

POINTER RIDGE OFFICE INVESTMENT, LLC (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Condensed Balance Sheets
Liabilities	$ 1,176,070,632		$ 1,176,070,632		$ 1,091,992,367
Equity	135,960,190		135,960,190		135,526,637
Condensed Statements of Income
Net income	2,601,696	$ 1,755,456	$ 5,347,129	$ 3,569,822
Pointer Ridge
Pointer Ridge Office Investment, LLC
Ownership percentage			62.50%
Condensed Balance Sheets
Current assets	293,302		$ 293,302		269,314
Non-current assets	6,335,815		6,335,815		6,433,380
Liabilities	5,950,746		5,950,746		6,003,139
Equity	678,371		678,371		$ 699,555
Condensed Statements of Income
Revenue	243,981	234,139	487,258	473,129
Expenses	241,912	271,151	508,442	567,180
Net income	$ 2,069	$ (37,012)	$ (21,184)	$ (94,051)
Pointer Ridge | One of the Directors [Member]
Pointer Ridge Office Investment, LLC
Ownership percentage			12.50%

INVESTMENT SECURITIES (Details)

INVESTMENT SECURITIES (Details) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Investment securities
Amortized cost	$ 151,598,826	$ 161,923,365
Gross unrealized gains	818,618	1,359,421
Gross unrealized losses	(1,237,871)	(1,602,588)
Estimated fair value	151,179,573	161,680,198
U. S. treasury
Investment securities
Amortized cost	3,000,335	3,000,690
Gross unrealized gains	2,712	5,460
Estimated fair value	3,003,047	3,006,150
U.S. government agency
Investment securities
Amortized cost	36,979,446	38,594,843
Gross unrealized gains	24,314	15,851
Gross unrealized losses	(335,810)	(954,362)
Estimated fair value	36,667,950	37,656,332
Municipal securities
Investment securities
Amortized cost	40,399,978	42,662,399
Gross unrealized gains	650,065	980,452
Gross unrealized losses	(161,237)	(96,690)
Estimated fair value	40,888,806	43,546,161
FHLMC certificates
Investment securities
Amortized cost	18,788,956	20,323,394
Gross unrealized gains	41,578	150,735
Gross unrealized losses	(22,003)	(3,182)
Estimated fair value	18,808,531	20,470,947
FNMA certificates
Investment securities
Amortized cost	16,755,358	17,898,497
Gross unrealized gains	22,147	61,472
Gross unrealized losses	(142,341)	(93,163)
Estimated fair value	16,635,164	17,866,806
GNMA certificates
Investment securities
Amortized cost	30,152,244	33,266,203
Gross unrealized gains	77,754	145,451
Gross unrealized losses	(428,006)	(272,309)
Estimated fair value	29,801,992	33,139,345
SBA loan pools
Investment securities
Amortized cost	5,522,509	6,177,339
Gross unrealized gains	48
Gross unrealized losses	(148,474)	(182,882)
Estimated fair value	$ 5,374,083	$ 5,994,457

INVESTMENT SECURITIES (Details

INVESTMENT SECURITIES (Details 2)	3 Months Ended		6 Months Ended
	Jun. 30, 2015USD ($)securityitem	Jun. 30, 2014USD ($)	Jun. 30, 2015USD ($)security	Jun. 30, 2014USD ($)item	Dec. 31, 2014USD ($)security
Investment securities
Less than 12 months, Fair value	$ 41,439,599		$ 41,439,599		$ 12,514,622
Less than 12 months, Unrealized losses	365,253		365,253		37,322
12 Months or More, Fair value	55,298,064		55,298,064		72,118,939
12 Months or More, Unrealized losses	872,618		872,618		1,565,266
Total, Fair value	96,737,663		96,737,663		84,633,561
Total, Unrealized losses	$ 1,237,871		$ 1,237,871		$ 1,602,588
Gross realized gains and proceeds from sales or calls of investment securities
Number of securities in an unrealized loss position for greater than 12 months | security	43		43		57
Number of securities in an unrealized loss position for less than 12 months | security	40		40		12
Gains on sales or calls of investment securities	$ 3,924	$ 129,911	$ 64,618	$ 129,911
Sale of Investment Securities	0		0
Proceeds from Maturities, Prepayments and Calls of Available-for-sale Securities			9,936,344	$ 34,448,100
U.S. government agency
Investment securities
Less than 12 months, Fair value					$ 1,492,650
Less than 12 months, Unrealized losses					6,543
12 Months or More, Fair value	31,953,469		31,953,469		32,497,194
12 Months or More, Unrealized losses	335,810		335,810		947,819
Total, Fair value	31,953,469		31,953,469		33,989,844
Total, Unrealized losses	$ 335,810		335,810		954,362
Gross realized gains and proceeds from sales or calls of investment securities
Number of matured agency security | item	1			1
Municipal securities
Investment securities
Less than 12 months, Fair value	$ 8,873,343		8,873,343		2,054,635
Less than 12 months, Unrealized losses	113,080		113,080		19,397
12 Months or More, Fair value	1,515,775		1,515,775		4,617,972
12 Months or More, Unrealized losses	48,157		48,157		77,293
Total, Fair value	10,389,118		10,389,118		6,672,607
Total, Unrealized losses	$ 161,237		161,237		96,690
Gross realized gains and proceeds from sales or calls of investment securities
Number of bonds called | item	3			5
Mortgage backed securities
Investment securities
Less than 12 months, Fair value	$ 32,566,256		32,566,256		8,967,337
Less than 12 months, Unrealized losses	252,173		252,173		11,382
12 Months or More, Fair value	16,671,665		16,671,665		29,009,316
12 Months or More, Unrealized losses	340,177		340,177		357,272
Total, Fair value	49,237,921		49,237,921		37,976,653
Total, Unrealized losses	592,350		592,350		368,654
SBA loan pools
Investment securities
12 Months or More, Fair value	5,157,155		5,157,155		5,994,457
12 Months or More, Unrealized losses	148,474		148,474		182,882
Total, Fair value	5,157,155		5,157,155		5,994,457
Total, Unrealized losses	$ 148,474		$ 148,474		$ 182,882

INVESTMENT SECURITIES (Detail28

INVESTMENT SECURITIES (Details 3) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Available for Sale, Amortized cost
Within one year	$ 3,300,443
Over one to five years	29,201,837
Over five to ten years	22,084,724
Over ten years	97,011,822
Total available for sale, Amortized cost	151,598,826	$ 161,923,365
Available for Sale, Fair value
Within one year	3,305,480
Over one to five years	29,068,280
Over five to ten years	22,181,242
Over ten years	96,624,571
Estimated fair value	151,179,573	$ 161,680,198
Pledged securities
Amortized cost	33,582,503
Fair value	$ 33,376,448

LOANS (Details)

LOANS (Details)	6 Months Ended
	Jun. 30, 2015USD ($)item	Mar. 31, 2015USD ($)	Dec. 31, 2014USD ($)	Jun. 30, 2014USD ($)	Mar. 31, 2014USD ($)	Dec. 31, 2013USD ($)
Held-for-investment
Total before allowance and deferred loan cost	$ 1,011,798,706		$ 929,581,791	$ 894,821,358
Allowance for loan losses	(4,435,913)	$ (4,636,048)	(4,281,835)	(6,324,583)	$ (4,881,939)	$ (4,929,213)
Deferred loan costs, net	1,255,253		1,273,532
Total Loans	1,008,618,046		926,573,488
Commercial real estate loans	666,400,000		600,700,000
Residential Loan Portfolio	$ 227,800,000		211,500,000
Credit score required for loans sold in secondary market | item	640
Credit score required for loans sold in secondary market to veterans | item	620
Hospitality
Held-for-investment
Commercial real estate loans	$ 91,400,000
Commercial Real Estate
Held-for-investment
Total before allowance and deferred loan cost	666,380,625			574,636,326
Allowance for loan losses	$ (2,775,654)	(2,594,659)	(2,558,368)	(4,861,232)	(3,311,658)	(3,569,395)
Financing Percentage Maximum	80
Commercial Real Estate | Owner Occupied
Held-for-investment
Total before allowance and deferred loan cost	$ 225,742,477		220,614,855
Commercial Real Estate | Investment
Held-for-investment
Total before allowance and deferred loan cost	301,720,484		250,390,883
Commercial Real Estate | Hospitality
Held-for-investment
Total before allowance and deferred loan cost	91,424,650		84,662,560
Commercial Real Estate | Land and A&D
Held-for-investment
Total before allowance and deferred loan cost	$ 47,493,014		45,046,259
Investor Real Estate [Member]
Held-for-investment
Financing Percentage Maximum	75
Residential Real Estate
Held-for-investment
Total before allowance and deferred loan cost	$ 227,816,818			210,559,411
Allowance for loan losses	$ (756,120)	(1,238,113)	(926,995)	(721,188)	(696,642)	(841,234)
Credit Score Required | item	660
Residential Real Estate | Maximum
Held-for-investment
Loan to value ratio (as a percent)	85.00%
Debt to income ratio required (as a percent)	43.00%
Residential Real Estate | First Lien-Investment
Held-for-investment
Total before allowance and deferred loan cost	$ 82,061,428		73,764,433
Residential Real Estate | First Lien-Owner Occupied
Held-for-investment
Total before allowance and deferred loan cost	82,626,194		83,065,128
Residential Real Estate | Residential Land and A&D
Held-for-investment
Total before allowance and deferred loan cost	38,169,836		30,748,902
Residential Real Estate | HELOC and Jr. Liens
Held-for-investment
Total before allowance and deferred loan cost	24,959,361		23,901,486
Single-family residential loans | Minimum
Held-for-investment
Loans, permissible amount under federal regulations	417,000
Single-family residential loans | Maximum
Held-for-investment
Loans, permissible amount under federal regulations	625,500
Commercial & Industrial Loans
Held-for-investment
Total before allowance and deferred loan cost	109,152,568		108,004,791
Consumer
Held-for-investment
Total before allowance and deferred loan cost	8,448,694		9,382,494	10,197,520
Allowance for loan losses	(31,091)	(41,605)	(100,101)	(67,788)	(29,396)	(23,533)
Commercial
Held-for-investment
Total before allowance and deferred loan cost	109,152,569			99,428,101
Allowance for loan losses	(873,048)	$ (761,671)	(696,371)	$ (674,375)	$ (844,243)	$ (495,051)
Minimum threshold amount of loan for which financial condition and operating performance of the borrower is monitored	250,000
Legacy
Held-for-investment
Total before allowance and deferred loan cost	847,498,589		749,967,997
Allowance for loan losses	(4,116,645)		(4,261,835)
Deferred loan costs, net	1,255,253		1,283,455
Total Loans	$ 844,637,197		746,989,617
Number of components segmented in loan portfolio | item	2
Legacy | Commercial Real Estate | Owner Occupied
Held-for-investment
Total before allowance and deferred loan cost	$ 198,913,857		192,723,718
Legacy | Commercial Real Estate | Investment
Held-for-investment
Total before allowance and deferred loan cost	261,784,146		208,766,058
Legacy | Commercial Real Estate | Hospitality
Held-for-investment
Total before allowance and deferred loan cost	83,276,238		76,342,916
Legacy | Commercial Real Estate | Land and A&D
Held-for-investment
Total before allowance and deferred loan cost	42,763,523		40,260,506
Legacy | Residential Real Estate | First Lien-Investment
Held-for-investment
Total before allowance and deferred loan cost	62,284,662		49,578,862
Legacy | Residential Real Estate | First Lien-Owner Occupied
Held-for-investment
Total before allowance and deferred loan cost	36,600,087		31,822,773
Legacy | Residential Real Estate | Residential Land and A&D
Held-for-investment
Total before allowance and deferred loan cost	30,798,988		22,239,663
Legacy | Residential Real Estate | HELOC and Jr. Liens
Held-for-investment
Total before allowance and deferred loan cost	22,205,192		20,854,737
Legacy | Commercial & Industrial Loans
Held-for-investment
Total before allowance and deferred loan cost	100,681,887		98,310,009
Legacy | Consumer
Held-for-investment
Total before allowance and deferred loan cost	8,190,009		9,068,755
Acquired
Held-for-investment
Total before allowance and deferred loan cost	164,300,117		179,613,794
Allowance for loan losses	(319,268)		(20,000)
Deferred loan costs, net			(9,923)
Total Loans	163,980,849		179,583,871
Acquired | Commercial Real Estate | Owner Occupied
Held-for-investment
Total before allowance and deferred loan cost	26,828,620		27,891,137
Acquired | Commercial Real Estate | Investment
Held-for-investment
Total before allowance and deferred loan cost	39,936,338		41,624,825
Acquired | Commercial Real Estate | Hospitality
Held-for-investment
Total before allowance and deferred loan cost	8,148,412		8,319,644
Acquired | Commercial Real Estate | Land and A&D
Held-for-investment
Total before allowance and deferred loan cost	4,729,491		4,785,753
Acquired | Residential Real Estate | First Lien-Investment
Held-for-investment
Total before allowance and deferred loan cost	19,776,766		24,185,571
Acquired | Residential Real Estate | First Lien-Owner Occupied
Held-for-investment
Total before allowance and deferred loan cost	46,026,107		51,242,355
Acquired | Residential Real Estate | Residential Land and A&D
Held-for-investment
Total before allowance and deferred loan cost	7,370,848		8,509,239
Acquired | Residential Real Estate | HELOC and Jr. Liens
Held-for-investment
Total before allowance and deferred loan cost	2,754,169		3,046,749
Acquired | Commercial & Industrial Loans
Held-for-investment
Total before allowance and deferred loan cost	8,470,681		9,694,782
Acquired | Consumer
Held-for-investment
Total before allowance and deferred loan cost	$ 258,685		$ 313,739

LOANS (Details 2)

LOANS (Details 2) - USD ($)	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014
Aging analysis of the loan held for investment portfolio
Current	$ 1,005,131,248	$ 920,107,077
Accruing past due loans:
Total 30-89 days past due	3,267,773	3,962,184
Total 90 or more days past due		305,323
Total accruing past due loans	3,267,773	4,267,507
Total Recorded Investment Non-accruing past due loans:	3,399,685	5,207,207
Total loans	1,011,798,706	929,581,791	$ 894,821,358
Commercial Real Estate
Accruing past due loans:
Total loans	666,380,625		574,636,326
Commercial Real Estate | Owner Occupied
Accruing past due loans:
Total 30-89 days past due	761,207
Total Recorded Investment Non-accruing past due loans:	71,698	1,905,392
Total loans	225,742,477	220,614,855
Commercial Real Estate | Investment
Accruing past due loans:
Total 30-89 days past due		572,565
Total Recorded Investment Non-accruing past due loans:	207,259
Total loans	301,720,484	250,390,883
Commercial Real Estate | Hospitality
Accruing past due loans:
Total loans	91,424,650	84,662,560
Commercial Real Estate | Land and A&D
Accruing past due loans:
Total loans	47,493,014	45,046,259
Residential Real Estate
Accruing past due loans:
Total loans	227,816,818		210,559,411
Residential Real Estate | First Lien-Investment
Accruing past due loans:
Total 30-89 days past due	423,041	486,960
Total Recorded Investment Non-accruing past due loans:	837,868	423,999
Total loans	82,061,428	73,764,433
Residential Real Estate | First Lien-Owner Occupied
Accruing past due loans:
Total 30-89 days past due	1,470,463	1,423,752
Total 90 or more days past due		305,323
Total Recorded Investment Non-accruing past due loans:	1,048,402	795,920
Total loans	82,626,194	83,065,128
Residential Real Estate | Residential Land and A&D
Accruing past due loans:
Total 30-89 days past due		168,875
Total Recorded Investment Non-accruing past due loans:	461,700	795,300
Total loans	38,169,836	30,748,902
Residential Real Estate | HELOC and Jr. Liens
Accruing past due loans:
Total 30-89 days past due		87,703
Total loans	24,959,361	23,901,486
Commercial
Accruing past due loans:
Total 30-89 days past due	478,410	1,213,021
Total Recorded Investment Non-accruing past due loans:	772,758	1,165,955
Total loans	109,152,569		99,428,101
Consumer
Accruing past due loans:
Total 30-89 days past due	134,652	9,308
Total Recorded Investment Non-accruing past due loans:		120,641
Total loans	8,448,694	9,382,494	$ 10,197,520
Legacy
Aging analysis of the loan held for investment portfolio
Current	845,446,773	746,375,748
Accruing past due loans:
Total 30-89 days past due	1,198,501	342,704
Total accruing past due loans	1,198,501	342,704
Total Recorded Investment Non-accruing past due loans:	853,315	3,249,545
Total loans	847,498,589	749,967,997
Legacy | Commercial Real Estate | Owner Occupied
Accruing past due loans:
Total 30-89 days past due	245,000
Total Recorded Investment Non-accruing past due loans:	16,402	1,849,685
Total loans	198,913,857	192,723,718
Legacy | Commercial Real Estate | Investment
Accruing past due loans:
Total loans	261,784,146	208,766,058
Legacy | Commercial Real Estate | Hospitality
Accruing past due loans:
Total loans	83,276,238	76,342,916
Legacy | Commercial Real Estate | Land and A&D
Accruing past due loans:
Total loans	42,763,523	40,260,506
Legacy | Residential Real Estate | First Lien-Investment
Accruing past due loans:
Total 30-89 days past due	423,041	297,221
Total Recorded Investment Non-accruing past due loans:	107,853	113,264
Total loans	62,284,662	49,578,862
Legacy | Residential Real Estate | First Lien-Owner Occupied
Accruing past due loans:
Total loans	36,600,087	31,822,773
Legacy | Residential Real Estate | Residential Land and A&D
Accruing past due loans:
Total loans	30,798,988	22,239,663
Legacy | Residential Real Estate | HELOC and Jr. Liens
Accruing past due loans:
Total loans	22,205,192	20,854,737
Legacy | Commercial
Accruing past due loans:
Total 30-89 days past due	396,675	45,483
Total Recorded Investment Non-accruing past due loans:	729,060	1,165,955
Legacy | Consumer
Accruing past due loans:
Total 30-89 days past due	133,785
Total Recorded Investment Non-accruing past due loans:		120,641
Total loans	8,190,009	9,068,755
Acquired
Aging analysis of the loan held for investment portfolio
Current	159,684,475	173,731,329
Accruing past due loans:
Total 30-89 days past due	2,069,272	3,619,480
Total 90 or more days past due		305,323
Total accruing past due loans	2,069,272	3,924,803
Total Recorded Investment Non-accruing past due loans:	2,546,370	1,957,662
Total loans	164,300,117	179,613,794
Acquired | Commercial Real Estate | Owner Occupied
Accruing past due loans:
Total 30-89 days past due	516,207
Total Recorded Investment Non-accruing past due loans:	55,296	55,707
Total loans	26,828,620	27,891,137
Acquired | Commercial Real Estate | Investment
Accruing past due loans:
Total 30-89 days past due		572,565
Total Recorded Investment Non-accruing past due loans:	207,259
Total loans	39,936,338	41,624,825
Acquired | Commercial Real Estate | Hospitality
Accruing past due loans:
Total loans	8,148,412	8,319,644
Acquired | Commercial Real Estate | Land and A&D
Accruing past due loans:
Total loans	4,729,491	4,785,753
Acquired | Residential Real Estate | First Lien-Investment
Accruing past due loans:
Total 30-89 days past due		189,739
Total Recorded Investment Non-accruing past due loans:	730,015	310,735
Total loans	19,776,766	24,185,571
Acquired | Residential Real Estate | First Lien-Owner Occupied
Accruing past due loans:
Total 30-89 days past due	1,470,463	1,423,752
Total 90 or more days past due		305,323
Total Recorded Investment Non-accruing past due loans:	1,048,402	795,920
Total loans	46,026,107	51,242,355
Acquired | Residential Real Estate | Residential Land and A&D
Accruing past due loans:
Total 30-89 days past due		168,875
Total Recorded Investment Non-accruing past due loans:	461,700	795,300
Total loans	7,370,848	8,509,239
Acquired | Residential Real Estate | HELOC and Jr. Liens
Accruing past due loans:
Total 30-89 days past due		87,703
Total loans	2,754,169	3,046,749
Acquired | Commercial
Accruing past due loans:
Total 30-89 days past due	81,735	1,167,538
Total Recorded Investment Non-accruing past due loans:	43,698
Acquired | Consumer
Accruing past due loans:
Total 30-89 days past due	867	9,308
Total loans	$ 258,685	$ 313,739

LOANS (Details 3)

LOANS (Details 3) - USD ($)	3 Months Ended	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2015	Dec. 31, 2014
Unpaid Principal Balance
Total	$ 5,512,152	$ 5,512,152	$ 8,055,181
Recorded Investment
Total	5,460,461	5,460,461	7,283,210
Related Allowance
Total	494,509	494,509	235,540
Average Recorded Investment
Total	5,467,294	13,278,181	7,924,449
Interest Income Recognized
Total	21,367	46,230	153,676
Legacy
Unpaid Principal Balance
Total	2,545,963	2,545,963	5,020,847
Recorded Investment
Total	2,545,963	2,545,963	5,020,847
Related Allowance
Total	175,241	175,241	215,540
Average Recorded Investment
Total	2,507,075	6,009,572	5,000,728
Interest Income Recognized
Total	16,672	34,897	95,888
Legacy | Commercial Real Estate | Owner Occupied
Unpaid Principal Balance
With no related allowance recorded	258,062	258,062	2,113,173
With an allowance recorded	28,405	28,405
Recorded Investment
With no related allowance recorded	258,062	258,062	2,113,173
With an allowance recorded	28,405	28,405
Related Allowance
Total	14,202	14,202
Average Recorded Investment
With no related allowance recorded	258,062	260,248	2,111,733
With an allowance recorded	28,405	1,093,187
Interest Income Recognized
With no related allowance recorded	3,218	6,572	18,318
Legacy | Commercial Real Estate | Investment
Unpaid Principal Balance
With no related allowance recorded	1,289,949	1,289,949	1,319,280
With an allowance recorded	16,402	16,402
Recorded Investment
With no related allowance recorded	1,289,949	1,289,949	1,319,280
With an allowance recorded	16,402	16,402
Related Allowance
Total	16,402	16,402
Average Recorded Investment
With no related allowance recorded	1,289,949	1,302,854	1,315,243
With an allowance recorded	16,807	39,526
Interest Income Recognized
With no related allowance recorded	13,454	28,325	58,664
Legacy | Residential Real Estate | First Lien-Investment
Unpaid Principal Balance
With no related allowance recorded	107,853	107,853	113,264
With an allowance recorded	144,637	144,637
Recorded Investment
With no related allowance recorded	107,853	107,853	113,264
With an allowance recorded	144,637	144,637
Related Allowance
Total	144,637	144,637
Average Recorded Investment
With no related allowance recorded	107,461	333,990	112,027
With an allowance recorded	107,569	167,045
Legacy | Residential Real Estate | Commercial
Unpaid Principal Balance
With no related allowance recorded	700,655	700,655
Recorded Investment
With no related allowance recorded	700,655	700,655
Average Recorded Investment
With no related allowance recorded	698,822	2,812,722
Legacy | Commercial
Unpaid Principal Balance
With no related allowance recorded			979,039
With an allowance recorded			375,450
Recorded Investment
With no related allowance recorded			979,039
With an allowance recorded			375,450
Related Allowance
Total			159,040
Average Recorded Investment
With no related allowance recorded			975,224
With an allowance recorded			365,860
Interest Income Recognized
With no related allowance recorded			4,767
With an allowance recorded			13,101
Legacy | Consumer
Unpaid Principal Balance
With an allowance recorded			120,641
Recorded Investment
With an allowance recorded			120,641
Related Allowance
Total			56,500
Average Recorded Investment
With an allowance recorded			120,641
Interest Income Recognized
With an allowance recorded			1,038
Acquired
Unpaid Principal Balance
Total	2,966,189	2,966,189	3,034,334
Recorded Investment
Total	2,914,498	2,914,498	2,262,363
Related Allowance
Total	319,268	319,268	20,000
Average Recorded Investment
Total	2,960,219	7,268,609	2,923,721
Interest Income Recognized
Total	4,695	11,333	57,788
Acquired | Commercial Real Estate | Owner Occupied
Unpaid Principal Balance
With no related allowance recorded	48,359	48,359	48,359
Recorded Investment
With no related allowance recorded	48,359	48,359	55,706
Average Recorded Investment
With no related allowance recorded	48,359	48,359	48,359
Interest Income Recognized
With no related allowance recorded			1,742
Acquired | Commercial Real Estate | Investment
Unpaid Principal Balance
With an allowance recorded	211,546	211,546
Recorded Investment
With an allowance recorded	211,546	211,546
Related Allowance
Total	103,630	103,630
Average Recorded Investment
With an allowance recorded	211,546	630,934
Acquired | Commercial Real Estate | Land and A&D
Unpaid Principal Balance
With no related allowance recorded	267,113	267,113	1,309,568
With an allowance recorded	223,336	223,336	223,336
Recorded Investment
With no related allowance recorded	267,113	267,113	595,300
With an allowance recorded	200,000	200,000	200,000
Related Allowance
Total	20,000	20,000	20,000
Average Recorded Investment
With no related allowance recorded	267,113	607,612	1,201,246
With an allowance recorded	223,336	893,345	223,536
Interest Income Recognized
With no related allowance recorded			8,357
With an allowance recorded			10,529
Acquired | Residential Real Estate | Owner Occupied
Unpaid Principal Balance
With no related allowance recorded			1,058,125
Recorded Investment
With no related allowance recorded			1,016,765
Average Recorded Investment
With no related allowance recorded			1,055,774
Interest Income Recognized
With no related allowance recorded			17,782
Acquired | Residential Real Estate | Investment
Unpaid Principal Balance
With no related allowance recorded			311,089
Recorded Investment
With no related allowance recorded			310,735
Average Recorded Investment
With no related allowance recorded			311,089
Interest Income Recognized
With no related allowance recorded			14,866
Acquired | Residential Real Estate | First Lien-Investment
Unpaid Principal Balance
With no related allowance recorded	367,132	367,132
With an allowance recorded	370,431	370,431
Recorded Investment
With no related allowance recorded	367,132	367,132
With an allowance recorded	367,287	367,287
Related Allowance
Total	45,638	45,638
Average Recorded Investment
With no related allowance recorded	367,132	367,391
With an allowance recorded	361,431	1,516,244
Acquired | Residential Real Estate | First Lien-Owner Occupied
Unpaid Principal Balance
With no related allowance recorded	798,190	798,190
With an allowance recorded	553,751	553,751
Recorded Investment
With no related allowance recorded	798,190	798,190
With an allowance recorded	528,540	528,540
Related Allowance
Total	150,000	150,000
Average Recorded Investment
With no related allowance recorded	800,710	1,886,053
With an allowance recorded	554,715	1,059,106
Interest Income Recognized
With no related allowance recorded	3,292	11,333
Acquired | Residential Real Estate | Commercial
Unpaid Principal Balance
With no related allowance recorded	126,331	126,331
Recorded Investment
With no related allowance recorded	126,331	126,331
Average Recorded Investment
With no related allowance recorded	125,877	$ 259,565
Interest Income Recognized
With no related allowance recorded	$ 1,403
Acquired | Commercial
Unpaid Principal Balance
With no related allowance recorded			83,857
Recorded Investment
With no related allowance recorded			83,857
Average Recorded Investment
With no related allowance recorded			83,717
Interest Income Recognized
With no related allowance recorded			$ 4,512

LOANS (Details 4)

LOANS (Details 4)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2015item	Jun. 30, 2014item	Jun. 30, 2015USD ($)item	Jun. 30, 2014item	Dec. 31, 2014USD ($)item
Troubled debt restructurings
Number of loans modified as TDR	0	0	0	0
Number of loans that have been modified as troubled debt restructurings that defaulted	0		0
Restructured loans
Troubled debt restructurings
Number of Contracts			3		4
Pre-Modification Outstanding Recorded Investment | $			$ 354		$ 589

LOANS (Details 5)

LOANS (Details 5) - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014	Dec. 31, 2013
Accretable Yield
Contractually Required Payments Receivable	$ 9,630,486	$ 10,853,648	$ 10,658,840	$ 12,482,792
Carrying Amount	7,757,035	7,994,957	$ 7,994,604	$ 8,742,777
Change in allowance for loan losses for General Reserves due to exceeding of credit mark	0
Change in allowance for loan losses due to exceeding of credit mark for estimate of loss exposure	0
Acquired
Accretable Yield
Beginning balance	(31,551)	40,771
Accretion of fair value discounts	(368,943)	(646,861)
Reclassification from non-accretable	371,518	579,301
Ending balance	$ (28,976)	$ (26,789)

LOANS (Details 6)

LOANS (Details 6) - USD ($)	6 Months Ended
	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014
Credit quality indicators
Account balance	$ 1,011,798,706	$ 929,581,791	$ 894,821,358
Commercial Real Estate
Credit quality indicators
Account balance	666,380,625		574,636,326
Commercial Real Estate | Owner Occupied
Credit quality indicators
Account balance	225,742,477	220,614,855
Commercial Real Estate | Investment
Credit quality indicators
Account balance	301,720,484	250,390,883
Commercial Real Estate | Hospitality
Credit quality indicators
Account balance	91,424,650	84,662,560
Commercial Real Estate | Land and A&D
Credit quality indicators
Account balance	47,493,014	45,046,259
Residential Real Estate
Credit quality indicators
Account balance	227,816,818		210,559,411
Residential Real Estate | First Lien-Investment
Credit quality indicators
Account balance	82,061,428	73,764,433
Residential Real Estate | First Lien-Owner Occupied
Credit quality indicators
Account balance	82,626,194	83,065,128
Residential Real Estate | Residential Land and A&D
Credit quality indicators
Account balance	38,169,836	30,748,902
Residential Real Estate | HELOC and Jr. Liens
Credit quality indicators
Account balance	24,959,361	23,901,486
Commercial
Credit quality indicators
Account balance	109,152,569		99,428,101
Consumer
Credit quality indicators
Account balance	$ 8,448,694	9,382,494	$ 10,197,520
Installment and other consumer loans and real estate loans
Credit quality indicators
Loss ratio period considered	3 years
Risk rated 1 - 5 at acquisition
Credit quality indicators
Account balance	$ 984,141,525	898,270,756
Risk rated 1 - 5 at acquisition | Commercial Real Estate | Owner Occupied
Credit quality indicators
Account balance	221,242,588	214,176,387
Risk rated 1 - 5 at acquisition | Commercial Real Estate | Investment
Credit quality indicators
Account balance	296,963,813	245,419,025
Risk rated 1 - 5 at acquisition | Commercial Real Estate | Hospitality
Credit quality indicators
Account balance	91,424,650	84,662,560
Risk rated 1 - 5 at acquisition | Commercial Real Estate | Land and A&D
Credit quality indicators
Account balance	44,433,750	41,647,168
Risk rated 1 - 5 at acquisition | Residential Real Estate | First Lien-Investment
Credit quality indicators
Account balance	78,988,644	71,009,258
Risk rated 1 - 5 at acquisition | Residential Real Estate | First Lien-Owner Occupied
Credit quality indicators
Account balance	78,609,789	79,212,507
Risk rated 1 - 5 at acquisition | Residential Real Estate | Residential Land and A&D
Credit quality indicators
Account balance	34,744,354	26,998,064
Risk rated 1 - 5 at acquisition | Residential Real Estate | HELOC and Jr. Liens
Credit quality indicators
Account balance	23,532,863	23,894,320
Risk rated 1 - 5 at acquisition | Commercial
Credit quality indicators
Account balance	113,942,389	101,665,637
Risk rated 1 - 5 at acquisition | Consumer
Credit quality indicators
Account balance	258,685	9,585,830
Risk rated 6 at acquisition
Credit quality indicators
Account balance	17,456,517	19,454,033
Risk rated 6 at acquisition | Commercial Real Estate | Owner Occupied
Credit quality indicators
Account balance	2,734,659	2,801,467
Risk rated 6 at acquisition | Commercial Real Estate | Investment
Credit quality indicators
Account balance	2,506,813	2,578,560
Risk rated 6 at acquisition | Commercial Real Estate | Land and A&D
Credit quality indicators
Account balance	3,059,264	3,399,091
Risk rated 6 at acquisition | Residential Real Estate | First Lien-Investment
Credit quality indicators
Account balance	1,529,500	1,851,881
Risk rated 6 at acquisition | Residential Real Estate | First Lien-Owner Occupied
Credit quality indicators
Account balance	2,366,956	2,449,773
Risk rated 6 at acquisition | Residential Real Estate | Residential Land and A&D
Credit quality indicators
Account balance	2,313,235	2,347,890
Risk rated 6 at acquisition | Residential Real Estate | HELOC and Jr. Liens
Credit quality indicators
Account balance	6,677	7,166
Risk rated 6 at acquisition | Commercial
Credit quality indicators
Account balance	2,939,413	4,018,205
Risk rated 7 at acquisition
Credit quality indicators
Account balance	10,200,664	11,857,002
Risk rated 7 at acquisition | Commercial Real Estate | Owner Occupied
Credit quality indicators
Account balance	1,765,231	3,637,001
Risk rated 7 at acquisition | Commercial Real Estate | Investment
Credit quality indicators
Account balance	2,249,859	2,069,322
Risk rated 7 at acquisition | Residential Real Estate | First Lien-Investment
Credit quality indicators
Account balance	1,543,284	903,294
Risk rated 7 at acquisition | Residential Real Estate | First Lien-Owner Occupied
Credit quality indicators
Account balance	1,649,447	1,402,848
Risk rated 7 at acquisition | Residential Real Estate | Residential Land and A&D
Credit quality indicators
Account balance	1,112,247	1,402,947
Risk rated 7 at acquisition | Commercial
Credit quality indicators
Account balance	1,880,596	2,320,949
Risk rated 7 at acquisition | Consumer
Credit quality indicators
Account balance		120,641
Legacy
Credit quality indicators
Account balance	847,498,589	749,967,997
Legacy | Commercial Real Estate | Owner Occupied
Credit quality indicators
Account balance	198,913,857	192,723,718
Legacy | Commercial Real Estate | Investment
Credit quality indicators
Account balance	261,784,146	208,766,058
Legacy | Commercial Real Estate | Hospitality
Credit quality indicators
Account balance	83,276,238	76,342,916
Legacy | Commercial Real Estate | Land and A&D
Credit quality indicators
Account balance	42,763,523	40,260,506
Legacy | Residential Real Estate | First Lien-Investment
Credit quality indicators
Account balance	62,284,662	49,578,862
Legacy | Residential Real Estate | First Lien-Owner Occupied
Credit quality indicators
Account balance	36,600,087	31,822,773
Legacy | Residential Real Estate | Residential Land and A&D
Credit quality indicators
Account balance	30,798,988	22,239,663
Legacy | Residential Real Estate | HELOC and Jr. Liens
Credit quality indicators
Account balance	22,205,192	20,854,737
Legacy | Consumer
Credit quality indicators
Account balance	8,190,009	9,068,755
Legacy | Risk rated 1 - 5 at acquisition
Credit quality indicators
Account balance	834,774,412	733,868,509
Legacy | Risk rated 1 - 5 at acquisition | Commercial Real Estate | Owner Occupied
Credit quality indicators
Account balance	197,426,100	189,360,330
Legacy | Risk rated 1 - 5 at acquisition | Commercial Real Estate | Investment
Credit quality indicators
Account balance	258,650,408	205,395,067
Legacy | Risk rated 1 - 5 at acquisition | Commercial Real Estate | Hospitality
Credit quality indicators
Account balance	83,276,238	76,342,916
Legacy | Risk rated 1 - 5 at acquisition | Commercial Real Estate | Land and A&D
Credit quality indicators
Account balance	40,049,087	37,227,339
Legacy | Risk rated 1 - 5 at acquisition | Residential Real Estate | First Lien-Investment
Credit quality indicators
Account balance	60,996,559	48,263,092
Legacy | Risk rated 1 - 5 at acquisition | Residential Real Estate | First Lien-Owner Occupied
Credit quality indicators
Account balance	36,519,828	31,740,158
Legacy | Risk rated 1 - 5 at acquisition | Residential Real Estate | Residential Land and A&D
Credit quality indicators
Account balance	29,172,354	20,601,936
Legacy | Risk rated 1 - 5 at acquisition | Residential Real Estate | HELOC and Jr. Liens
Credit quality indicators
Account balance	20,778,694	20,847,571
Legacy | Risk rated 1 - 5 at acquisition | Commercial
Credit quality indicators
Account balance	107,905,144	94,818,009
Legacy | Risk rated 1 - 5 at acquisition | Consumer
Credit quality indicators
Account balance		9,272,091
Legacy | Risk rated 6 at acquisition
Credit quality indicators
Account balance	9,025,538	10,199,147
Legacy | Risk rated 6 at acquisition | Commercial Real Estate | Owner Occupied
Credit quality indicators
Account balance	352,823	357,092
Legacy | Risk rated 6 at acquisition | Commercial Real Estate | Investment
Credit quality indicators
Account balance	1,843,789	1,731,771
Legacy | Risk rated 6 at acquisition | Commercial Real Estate | Land and A&D
Credit quality indicators
Account balance	2,714,436	3,033,167
Legacy | Risk rated 6 at acquisition | Residential Real Estate | First Lien-Investment
Credit quality indicators
Account balance	888,045	1,202,506
Legacy | Risk rated 6 at acquisition | Residential Real Estate | First Lien-Owner Occupied
Credit quality indicators
Account balance	80,258	82,616
Legacy | Risk rated 6 at acquisition | Residential Real Estate | Residential Land and A&D
Credit quality indicators
Account balance	1,626,634	1,637,727
Legacy | Risk rated 6 at acquisition | Residential Real Estate | HELOC and Jr. Liens
Credit quality indicators
Account balance	6,677	7,166
Legacy | Risk rated 6 at acquisition | Commercial
Credit quality indicators
Account balance	1,512,876	2,147,102
Legacy | Risk rated 7 at acquisition
Credit quality indicators
Account balance	3,698,639	5,900,341
Legacy | Risk rated 7 at acquisition | Commercial Real Estate | Owner Occupied
Credit quality indicators
Account balance	1,134,934	3,006,294
Legacy | Risk rated 7 at acquisition | Commercial Real Estate | Investment
Credit quality indicators
Account balance	1,289,950	1,315,243
Legacy | Risk rated 7 at acquisition | Residential Real Estate | First Lien-Investment
Credit quality indicators
Account balance	400,058	113,264
Legacy | Risk rated 7 at acquisition | Commercial
Credit quality indicators
Account balance	873,697	1,344,899
Legacy | Risk rated 7 at acquisition | Consumer
Credit quality indicators
Account balance		120,641
Acquired
Credit quality indicators
Account balance	164,300,117	179,613,794
Acquired | Commercial Real Estate | Owner Occupied
Credit quality indicators
Account balance	26,828,620	27,891,137
Acquired | Commercial Real Estate | Investment
Credit quality indicators
Account balance	39,936,338	41,624,825
Acquired | Commercial Real Estate | Hospitality
Credit quality indicators
Account balance	8,148,412	8,319,644
Acquired | Commercial Real Estate | Land and A&D
Credit quality indicators
Account balance	4,729,491	4,785,753
Acquired | Residential Real Estate | First Lien-Investment
Credit quality indicators
Account balance	19,776,766	24,185,571
Acquired | Residential Real Estate | First Lien-Owner Occupied
Credit quality indicators
Account balance	46,026,107	51,242,355
Acquired | Residential Real Estate | Residential Land and A&D
Credit quality indicators
Account balance	7,370,848	8,509,239
Acquired | Residential Real Estate | HELOC and Jr. Liens
Credit quality indicators
Account balance	2,754,169	3,046,749
Acquired | Consumer
Credit quality indicators
Account balance	258,685	313,739
Acquired | Risk rated 1 - 5 at acquisition
Credit quality indicators
Account balance	149,367,112	164,402,247
Acquired | Risk rated 1 - 5 at acquisition | Commercial Real Estate | Owner Occupied
Credit quality indicators
Account balance	23,816,488	24,816,057
Acquired | Risk rated 1 - 5 at acquisition | Commercial Real Estate | Investment
Credit quality indicators
Account balance	38,313,404	40,023,958
Acquired | Risk rated 1 - 5 at acquisition | Commercial Real Estate | Hospitality
Credit quality indicators
Account balance	8,148,412	8,319,644
Acquired | Risk rated 1 - 5 at acquisition | Commercial Real Estate | Land and A&D
Credit quality indicators
Account balance	4,384,663	4,419,829
Acquired | Risk rated 1 - 5 at acquisition | Residential Real Estate | First Lien-Investment
Credit quality indicators
Account balance	17,992,085	22,746,166
Acquired | Risk rated 1 - 5 at acquisition | Residential Real Estate | First Lien-Owner Occupied
Credit quality indicators
Account balance	42,089,961	47,472,349
Acquired | Risk rated 1 - 5 at acquisition | Residential Real Estate | Residential Land and A&D
Credit quality indicators
Account balance	5,572,000	6,396,128
Acquired | Risk rated 1 - 5 at acquisition | Residential Real Estate | HELOC and Jr. Liens
Credit quality indicators
Account balance	2,754,169	3,046,749
Acquired | Risk rated 1 - 5 at acquisition | Commercial
Credit quality indicators
Account balance	6,037,245	6,847,628
Acquired | Risk rated 1 - 5 at acquisition | Consumer
Credit quality indicators
Account balance	258,685	313,739
Acquired | Risk rated 6 at acquisition
Credit quality indicators
Account balance	8,430,979	9,254,886
Acquired | Risk rated 6 at acquisition | Commercial Real Estate | Owner Occupied
Credit quality indicators
Account balance	2,381,836	2,444,375
Acquired | Risk rated 6 at acquisition | Commercial Real Estate | Investment
Credit quality indicators
Account balance	663,024	846,789
Acquired | Risk rated 6 at acquisition | Commercial Real Estate | Land and A&D
Credit quality indicators
Account balance	344,828	365,924
Acquired | Risk rated 6 at acquisition | Residential Real Estate | First Lien-Investment
Credit quality indicators
Account balance	641,455	649,375
Acquired | Risk rated 6 at acquisition | Residential Real Estate | First Lien-Owner Occupied
Credit quality indicators
Account balance	2,286,698	2,367,157
Acquired | Risk rated 6 at acquisition | Residential Real Estate | Residential Land and A&D
Credit quality indicators
Account balance	686,601	710,163
Acquired | Risk rated 6 at acquisition | Commercial
Credit quality indicators
Account balance	1,426,537	1,871,103
Acquired | Risk rated 7 at acquisition
Credit quality indicators
Account balance	6,502,026	5,956,661
Acquired | Risk rated 7 at acquisition | Commercial Real Estate | Owner Occupied
Credit quality indicators
Account balance	630,297	630,707
Acquired | Risk rated 7 at acquisition | Commercial Real Estate | Investment
Credit quality indicators
Account balance	959,910	754,079
Acquired | Risk rated 7 at acquisition | Residential Real Estate | First Lien-Investment
Credit quality indicators
Account balance	1,143,226	790,030
Acquired | Risk rated 7 at acquisition | Residential Real Estate | First Lien-Owner Occupied
Credit quality indicators
Account balance	1,649,447	1,402,848
Acquired | Risk rated 7 at acquisition | Residential Real Estate | Residential Land and A&D
Credit quality indicators
Account balance	1,112,247	1,402,947
Acquired | Risk rated 7 at acquisition | Commercial
Credit quality indicators
Account balance	$ 1,006,899	$ 976,050

LOANS (Details 7)

LOANS (Details 7) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Activity in the allowance for loan losses
Beginning balance	$ 4,636,048	$ 4,881,939	$ 4,281,835	$ 4,929,213
General provision for loan losses	85,658	1,641,664	647,389	1,793,179
Provision (credit ) for loan losses for loans acquired with deteriorated credit quality		(97,384)		20,870
Recoveries	72,986	35,288	104,709	49,519
Allowance for loan losses before charge offs	4,794,692	6,461,307	5,033,933	6,792,781
Loans charged off	(358,779)	(136,927)	(598,020)	(468,198)
Ending Balance	4,435,913	6,324,583	4,435,913	6,324,583
Amount allocated to:
Ending balance	4,636,048	4,881,939	4,281,835	4,929,213	$ 4,435,913	$ 6,324,583
Legacy
Activity in the allowance for loan losses
Beginning balance			4,261,835
Ending Balance	4,116,645		4,116,645
Amount allocated to:
Individually evaluated for impairment					175,241	2,888,476
Other loans not individually evaluated					3,941,404	3,070,686
Ending balance	4,116,645		4,261,835		4,116,645
Acquired
Activity in the allowance for loan losses
Beginning balance			20,000
Ending Balance	319,268		319,268
Amount allocated to:
Individually evaluated for impairment					319,268	365,421
Ending balance	319,268		20,000		319,268
Commercial
Activity in the allowance for loan losses
Beginning balance	761,671	844,243	696,371	495,051
General provision for loan losses	125,012	(171,084)	372,111	176,613
Recoveries	600	2,216	1,542	4,711
Allowance for loan losses before charge offs	887,283	675,375	1,070,024	676,375
Loans charged off	(14,235)	(1,000)	(196,976)	(2,000)
Ending Balance	873,048	674,375	873,048	674,375
Amount allocated to:
Ending balance	761,671	844,243	696,371	495,051	873,048	674,375
Commercial | Legacy
Amount allocated to:
Individually evaluated for impairment						184,444
Other loans not individually evaluated					873,048	489,931
Commercial Real Estate
Activity in the allowance for loan losses
Beginning balance	2,594,659	3,311,658	2,558,368	3,569,395
General provision for loan losses	180,995	1,546,938	217,266	1,289,161
Provision (credit ) for loan losses for loans acquired with deteriorated credit quality		2,616		2,616
Recoveries		20	20	60
Allowance for loan losses before charge offs	2,775,654	4,861,232	2,775,654	4,861,232
Ending Balance	2,775,654	4,861,232	2,775,654	4,861,232
Amount allocated to:
Ending balance	2,594,659	3,311,658	2,558,368	3,569,395	2,775,654	4,861,232
Commercial Real Estate | Legacy
Amount allocated to:
Individually evaluated for impairment					30,604	2,658,345
Other loans not individually evaluated					2,621,420	1,921,236
Commercial Real Estate | Acquired
Amount allocated to:
Individually evaluated for impairment					123,630	281,651
Residential Real Estate
Activity in the allowance for loan losses
Beginning balance	1,238,113	696,642	926,995	841,234
General provision for loan losses	(186,420)	207,587	171,040	257,077
Provision (credit ) for loan losses for loans acquired with deteriorated credit quality		(100,000)		18,254
Recoveries	44,927	28,600	55,085	36,270
Allowance for loan losses before charge offs	1,096,620	832,829	1,153,120	1,152,835
Loans charged off	(340,500)	(111,641)	(397,000)	(431,647)
Ending Balance	756,120	721,188	756,120	721,188
Amount allocated to:
Ending balance	1,238,113	696,642	926,995	841,234	756,120	721,188
Residential Real Estate | Legacy
Amount allocated to:
Individually evaluated for impairment					144,637
Other loans not individually evaluated					415,845	637,418
Residential Real Estate | Acquired
Amount allocated to:
Individually evaluated for impairment					195,638	83,770
Consumer
Activity in the allowance for loan losses
Beginning balance	41,605	29,396	100,101	23,533
General provision for loan losses	(33,929)	58,223	(113,028)	70,328
Recoveries	27,459	4,452	48,062	8,478
Allowance for loan losses before charge offs	35,135	92,071	35,135	102,339
Loans charged off	(4,044)	(24,283)	(4,044)	(34,551)
Ending Balance	31,091	67,788	31,091	67,788
Amount allocated to:
Ending balance	$ 41,605	$ 29,396	$ 100,101	$ 23,533	31,091	67,788
Consumer | Legacy
Amount allocated to:
Individually evaluated for impairment						45,687
Other loans not individually evaluated					$ 31,091	$ 22,101

LOANS (Details 8)

LOANS (Details 8) - USD ($)	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014
Recorded investment in loans related to each balance in the allowance for possible loan losses by portfolio segment and disaggregated on the basis of impairment methodology
Individually evaluated for impairment without specific reserve (ASC 310-20 at acquisition)			$ 2,888,482
Collectively evaluated for impairment without reserve			199,810,573
Ending balance	$ 1,011,798,706	$ 929,581,791	894,821,358
Commercial
Recorded investment in loans related to each balance in the allowance for possible loan losses by portfolio segment and disaggregated on the basis of impairment methodology
Individually evaluated for impairment without specific reserve (ASC 310-20 at acquisition)			85,926
Collectively evaluated for impairment without reserve			9,792,169
Ending balance	109,152,569		99,428,101
Commercial Real Estate
Recorded investment in loans related to each balance in the allowance for possible loan losses by portfolio segment and disaggregated on the basis of impairment methodology
Individually evaluated for impairment without specific reserve (ASC 310-20 at acquisition)	315,472
Collectively evaluated for impairment without reserve			93,305,554
Ending balance	666,380,625		574,636,326
Residential Real Estate
Recorded investment in loans related to each balance in the allowance for possible loan losses by portfolio segment and disaggregated on the basis of impairment methodology
Individually evaluated for impairment with specific reserve	144,637
Individually evaluated for impairment without specific reserve (ASC 310-20 at acquisition)			2,802,556
Collectively evaluated for impairment without reserve			96,066,211
Ending balance	227,816,818		210,559,411
Consumer
Recorded investment in loans related to each balance in the allowance for possible loan losses by portfolio segment and disaggregated on the basis of impairment methodology
Collectively evaluated for impairment without reserve			646,639
Ending balance	8,448,694	9,382,494	10,197,520
Legacy
Recorded investment in loans related to each balance in the allowance for possible loan losses by portfolio segment and disaggregated on the basis of impairment methodology
Individually evaluated for impairment with specific reserve	189,444		5,081,763
Individually evaluated for impairment without specific reserve	2,356,519		4,308,120
Individually evaluated for impairment without specific reserve (ASC 310-20 at acquisition)	1,607,125
Other loans not individually evaluated	844,180,534		682,229,583
Ending balance	847,498,589	749,967,997
Legacy | Commercial
Recorded investment in loans related to each balance in the allowance for possible loan losses by portfolio segment and disaggregated on the basis of impairment methodology
Individually evaluated for impairment with specific reserve			425,670
Individually evaluated for impairment without specific reserve	700,655		734,767
Other loans not individually evaluated	99,854,902		88,389,569
Legacy | Commercial Real Estate
Recorded investment in loans related to each balance in the allowance for possible loan losses by portfolio segment and disaggregated on the basis of impairment methodology
Individually evaluated for impairment with specific reserve	44,807		4,473,345
Individually evaluated for impairment without specific reserve	1,548,011		3,454,679
Other loans not individually evaluated	585,142,183		473,030,942
Legacy | Residential Real Estate
Recorded investment in loans related to each balance in the allowance for possible loan losses by portfolio segment and disaggregated on the basis of impairment methodology
Individually evaluated for impairment without specific reserve	107,853		118,674
Individually evaluated for impairment without specific reserve (ASC 310-30 at acquisition)	1,165,322
Other loans not individually evaluated	150,993,440		111,440,939
Legacy | Consumer
Recorded investment in loans related to each balance in the allowance for possible loan losses by portfolio segment and disaggregated on the basis of impairment methodology
Individually evaluated for impairment with specific reserve			182,748
Other loans not individually evaluated	8,190,009		9,368,133
Ending balance	8,190,009	9,068,755
Acquired
Recorded investment in loans related to each balance in the allowance for possible loan losses by portfolio segment and disaggregated on the basis of impairment methodology
Individually evaluated for impairment without specific reserve (ASC 310-20 at acquisition)	1,307,373
Individually evaluated for impairment with specific reserve ( ASC 310.20 at acquisition)			502,837
Collectively evaluated for impairment without reserve	162,157,711
Ending balance	164,300,117	179,613,794
Acquired | Commercial
Recorded investment in loans related to each balance in the allowance for possible loan losses by portfolio segment and disaggregated on the basis of impairment methodology
Individually evaluated for impairment without specific reserve (ASC 310-20 at acquisition)	126,331
Collectively evaluated for impairment without reserve	8,470,681
Acquired | Commercial Real Estate
Recorded investment in loans related to each balance in the allowance for possible loan losses by portfolio segment and disaggregated on the basis of impairment methodology
Individually evaluated for impairment without specific reserve (ASC 310-20 at acquisition)	411,546
Individually evaluated for impairment with specific reserve ( ASC 310.20 at acquisition)			371,806
Collectively evaluated for impairment without reserve	78,918,606
Acquired | Residential Real Estate
Recorded investment in loans related to each balance in the allowance for possible loan losses by portfolio segment and disaggregated on the basis of impairment methodology
Individually evaluated for impairment without specific reserve (ASC 310-20 at acquisition)	895,827
Individually evaluated for impairment with specific reserve ( ASC 310.20 at acquisition)			$ 131,031
Collectively evaluated for impairment without reserve	74,509,739
Acquired | Consumer
Recorded investment in loans related to each balance in the allowance for possible loan losses by portfolio segment and disaggregated on the basis of impairment methodology
Collectively evaluated for impairment without reserve	258,685
Ending balance	$ 258,685	$ 313,739

OTHER REAL ESTATE OWNED (Detail

OTHER REAL ESTATE OWNED (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2015USD ($)	Jun. 30, 2014USD ($)	Jun. 30, 2015USD ($)item	Jun. 30, 2014USD ($)
Other real estate owned
Number of components in which the other real estate owned were segmented | item			2
Transactions in other real estate owned during the period
Beginning balance			$ 2,451,920
Additional write down of real estate owned			(57,375)
Real estate acquired through foreclosure of loans				$ 1,354,889
Real estate sold			(1,034,932)	(1,320,961)
Net realized gain (loss) on sale of real estate owned	$ (9,169)	$ 79,127	(143,923)	$ 282,195
Total end of period	1,215,690		1,215,690
Residential foreclosures classified as other real estate	336,000		336,000
Loans secured by residential real estate in process of foreclosure	2,700,000		2,700,000
Legacy
Transactions in other real estate owned during the period
Beginning balance			475,291
Total end of period	475,291		475,291
Acquired
Transactions in other real estate owned during the period
Beginning balance			1,976,629
Additional write down of real estate owned			(57,375)
Real estate sold			(1,034,932)
Net realized gain (loss) on sale of real estate owned			(143,923)
Total end of period	$ 740,399		$ 740,399

EARNINGS PER COMMON SHARE (Deta

EARNINGS PER COMMON SHARE (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
EARNINGS PER COMMON SHARE
Weighted average number of shares	10,617,225	10,785,370	10,711,771	10,782,770
Dilutive average number of shares	10,759,628	10,948,368	10,847,352	10,944,982

STOCK BASED COMPENSATION (Detai

STOCK BASED COMPENSATION (Details) - USD ($)	3 Months Ended			6 Months Ended
	Jun. 30, 2015	Mar. 31, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Stock based compensation
Stock-based compensation expense	$ 90,165	$ 90,165	$ 71,280	$ 182,067	$ 198,082
Unrecognized compensation cost related to non-vested stock options	$ 482,585			$ 482,585
Period over which unrecognized compensation cost is expected to be realized				2 years 6 months
Shares available for future issuance	425,264			425,264
Stock options
Stock based compensation
Options granted (in shares)	50,597		50,759
Options granted (in dollars per share)				$ 5.09
Options exercised by directors and officers (in shares)				22,000
Restricted stock
Stock based compensation
Restricted stock granted (in shares)	9,331		8,257
Restricted stock granted (in dollars per share)				$ 14.38
Restricted stock forfeited (in shares)	0		0

FAIR VALUE MEASUREMENT (Details

FAIR VALUE MEASUREMENT (Details) - USD ($)	3 Months Ended	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Mar. 31, 2015	Dec. 31, 2014
Assets and liabilities measured at fair value
Fair Value Assets transfers amount		$ 0			$ 0
Gain (loss) on disposal of assets	$ 17,919	19,975	$ 114,912
Available-for-sale		151,179,573			161,680,198
U. S. treasury
Assets and liabilities measured at fair value
Available-for-sale		3,003,047			3,006,150
U.S. government agency
Assets and liabilities measured at fair value
Available-for-sale		36,667,950			37,656,332
Municipal securities
Assets and liabilities measured at fair value
Available-for-sale		40,888,806			43,546,161
FHLMC certificates
Assets and liabilities measured at fair value
Available-for-sale		18,808,531			20,470,947
FNMA certificates
Assets and liabilities measured at fair value
Available-for-sale		16,635,164			17,866,806
GNMA certificates
Assets and liabilities measured at fair value
Available-for-sale		29,801,992			33,139,345
SBA loan pools
Assets and liabilities measured at fair value
Available-for-sale		5,374,083			5,994,457
Quoted Prices in Active Markets for Identical Assets (Level 1)
Assets and liabilities measured at fair value
Available-for-sale				$ 3,003,000	3,006,000
Other Observable Inputs (Level 2)
Assets and liabilities measured at fair value
Available-for-sale		148,177,000			158,674,000
Carrying Value
Assets and liabilities measured at fair value
Available-for-sale		151,180,000			161,680,000
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1)
Assets and liabilities measured at fair value
Assets		3,003,000			3,006,000
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | U. S. treasury
Assets and liabilities measured at fair value
Available-for-sale		3,003,000			3,006,000
Recurring basis | Other Observable Inputs (Level 2)
Assets and liabilities measured at fair value
Assets		148,177,000			158,674,000
Recurring basis | Other Observable Inputs (Level 2) | U.S. government agency
Assets and liabilities measured at fair value
Available-for-sale		36,668,000			37,656,000
Recurring basis | Other Observable Inputs (Level 2) | Municipal securities
Assets and liabilities measured at fair value
Available-for-sale		40,889,000			43,546,000
Recurring basis | Other Observable Inputs (Level 2) | FHLMC certificates
Assets and liabilities measured at fair value
Available-for-sale		18,809,000			20,471,000
Recurring basis | Other Observable Inputs (Level 2) | FNMA certificates
Assets and liabilities measured at fair value
Available-for-sale		16,635,000			17,867,000
Recurring basis | Other Observable Inputs (Level 2) | GNMA certificates
Assets and liabilities measured at fair value
Available-for-sale		29,802,000			33,139,000
Recurring basis | Other Observable Inputs (Level 2) | SBA loan pools
Assets and liabilities measured at fair value
Available-for-sale		5,374,000			5,995,000
Recurring basis | Carrying Value
Assets and liabilities measured at fair value
Assets		151,180,000			161,680,000
Recurring basis | Carrying Value | U. S. treasury
Assets and liabilities measured at fair value
Available-for-sale		3,003,000			3,006,000
Recurring basis | Carrying Value | U.S. government agency
Assets and liabilities measured at fair value
Available-for-sale		36,668,000			37,656,000
Recurring basis | Carrying Value | Municipal securities
Assets and liabilities measured at fair value
Available-for-sale		40,889,000			43,546,000
Recurring basis | Carrying Value | FHLMC certificates
Assets and liabilities measured at fair value
Available-for-sale		18,809,000			20,471,000
Recurring basis | Carrying Value | FNMA certificates
Assets and liabilities measured at fair value
Available-for-sale		16,635,000			17,867,000
Recurring basis | Carrying Value | GNMA certificates
Assets and liabilities measured at fair value
Available-for-sale		29,802,000			33,139,000
Recurring basis | Carrying Value | SBA loan pools
Assets and liabilities measured at fair value
Available-for-sale		$ 5,374,000			$ 5,995,000

FAIR VALUE MEASUREMENT (Detai41

FAIR VALUE MEASUREMENT (Details 2)	6 Months Ended
	Jun. 30, 2015USD ($)item	Dec. 31, 2014USD ($)
Assets and liabilities measured at fair value
Impaired Loans	$ 5,460,461	$ 7,283,210
Additional disclosures
Number of components in which the other real estate owned were segmented | item	2
Legacy
Assets and liabilities measured at fair value
Impaired Loans	$ 2,545,963	5,020,847
Acquired
Assets and liabilities measured at fair value
Impaired Loans	$ 2,914,498	2,262,363
Significant Unobservable Inputs (Level 3) | Minimum
Additional disclosures
Discounts (as a percent)	0.00%
Significant Unobservable Inputs (Level 3) | Maximum
Additional disclosures
Discounts (as a percent)	50.00%
Nonrecurring basis | Significant Unobservable Inputs (Level 3)
Assets and liabilities measured at fair value
Impaired Loans	$ 4,966,000	7,047,000
Other real estate owned	1,216,000	2,452,000
Assets	6,182,000	9,499,000
Nonrecurring basis | Significant Unobservable Inputs (Level 3) | Legacy
Assets and liabilities measured at fair value
Impaired Loans	2,371,000	4,805,000
Other real estate owned	475,000	475,000
Nonrecurring basis | Significant Unobservable Inputs (Level 3) | Acquired
Assets and liabilities measured at fair value
Impaired Loans	2,595,000	2,242,000
Other real estate owned	741,000	1,977,000
Nonrecurring basis | Carrying Value
Assets and liabilities measured at fair value
Impaired Loans	4,966,000	7,047,000
Other real estate owned	1,216,000	2,452,000
Assets	6,182,000	9,499,000
Nonrecurring basis | Carrying Value | Legacy
Assets and liabilities measured at fair value
Impaired Loans	2,371,000	4,805,000
Other real estate owned	475,000	475,000
Nonrecurring basis | Carrying Value | Acquired
Assets and liabilities measured at fair value
Impaired Loans	2,595,000	2,242,000
Other real estate owned	$ 741,000	$ 1,977,000

FAIR VALUE MEASUREMENT (Detai42

FAIR VALUE MEASUREMENT (Details 3) - USD ($)	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014
Assets:
Loans held-for-sale	$ 6,656,700		$ 4,753,995
Investment securities available for sale	151,179,573		161,680,198
Bank Owned Life Insurance	31,856,947		31,429,747
Accrued interest receivable	3,341,570		3,218,428
Liabilities:
Non-interest bearing	275,953,182		260,913,521
Interest bearing	808,460,674		754,825,885
Accrued interest payable	322,926		266,023
Total Estimated Fair Value
Assets:
Cash and cash equivalents	41,860,000		25,405,000
Loans receivable, net	1,019,417,000		935,397,000
Loans held-for-sale	6,657,000		4,754,000
Investment securities available for sale	151,180,000		161,680,000
Equity securities at cost	3,566,000		5,812,000
Bank Owned Life Insurance	31,857,000		31,430,000
Accrued interest receivable	3,342,000		3,218,000
Liabilities:
Non-interest bearing	275,953,000		260,914,000
Interest bearing	811,115,000		760,503,000
Short term borrowings	76,722,000		61,003,000
Long term borrowings	5,841,000		5,987,000
Accrued interest payable	323,000		266,000
Quoted Prices in Active Markets for Identical Assets (Level 1)
Assets:
Cash and cash equivalents		$ 41,860,000	25,405,000
Investment securities available for sale		3,003,000	3,006,000
Other Observable Inputs (Level 2)
Assets:
Loans held-for-sale	6,657,000		4,754,000
Investment securities available for sale	148,177,000		158,674,000
Equity securities at cost	3,566,000		5,812,000
Bank Owned Life Insurance	31,857,000		31,431,000
Accrued interest receivable	815,000		883,000
Liabilities:
Non-interest bearing	275,953,000		260,914,000
Interest bearing	811,115,000		760,503,000
Short term borrowings	76,722,000		61,003,000
Long term borrowings	5,841,000		5,987,000
Accrued interest payable	323,000		266,000
Significant Unobservable Inputs (Level 3)
Assets:
Loans receivable, net		1,019,417,000	935,397,000
Accrued interest receivable		$ 2,527,000	2,335,000
Carrying Value
Assets:
Cash and cash equivalents	41,860,000		25,405,000
Loans receivable, net	1,008,618,000		926,573,000
Loans held-for-sale	6,362,000		4,548,000
Investment securities available for sale	151,180,000		161,680,000
Equity securities at cost	3,566,000		5,812,000
Bank Owned Life Insurance	31,857,000		31,430,000
Accrued interest receivable	3,342,000		3,218,000
Liabilities:
Non-interest bearing	275,953,000		260,914,000
Interest bearing	808,461,000		754,826,000
Short term borrowings	76,722,000		61,003,000
Long term borrowings	5,931,000		5,987,000
Accrued interest payable	$ 323,000		$ 266,000

Short Term Borrowings (Details)

Short Term Borrowings (Details) - Repurchase agreements $ in Millions	Jun. 30, 2015USD ($)
Short term borrowings
Maximum borrowing capacity	$ 26.7
Value of collateral provided	$ 33.1

Uncategorized Items - olbk-2015

Label	Element	Value
Provision for Loan and Lease Losses	us-gaap_ProvisionForLoanAndLeaseLosses	$ 1,544,280
Provision for Loan and Lease Losses	us-gaap_ProvisionForLoanAndLeaseLosses	$ 85,658