×

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

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

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

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

HIGHLIGHTS:

  • Net loans increased $42.5 million, or 5.00%, during the three months ended June 30, 2014. Net loans increased $44.3 million, or 5.22%, during the six months ended June 30, 2014, to $893.6 million, compared to $849.3 million at December 31, 2013.
  • We recorded a provision for loan losses of $1.4 million ($.08 per share after tax) related to one commercial/hotel loan.
  • The net interest margin was 4.28% for the quarters ending both June 30, 2014 and 2013, compared to 4.29% for the quarter ended March 31, 2014.
  • Non-performing assets decreased to 1.20% of total assets at June 30, 2014 compared to 1.27% at December 31, 2013.
  • Total assets at June 30, 2014 increased by $26.0 million from December 31, 2013.
  • The second quarter Return on Average Assets (ROAA) and Return on Average Equity (ROAE) were 0.60% and 5.46%, respectively, compared to ROAA and ROAE of (0.03%) and (0.35%), respectively, for the second quarter of 2013.
  • The Return of Average Assets (ROAA) and Return on Average Equity (ROAE) for the six months ended June 30, 2014 were 0.62% and 5.70%, respectively, compared to ROAA and ROAE of 0.26% and 2.89%, respectively, for the six months ending June 30, 2013.
  • We ended the second quarter of 2014 with a book value of $12.23 per common share and a tangible book value of $11.06 per common share compared to $11.71 and $10.50, respectively, at December 31, 2013.
  • We maintained strong liquidity and by all regulatory measures remained "well capitalized".

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

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

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

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

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

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

Old Line Bancshares, Inc. is the parent company of Old Line Bank, a Maryland chartered commercial bank headquartered in Bowie, Maryland, approximately 10 miles east of Andrews Air Force Base and 20 miles east of Washington, D.C. Old Line Bank has 23 branches located in its primary market area of suburban Maryland (Washington, D.C. suburbs and Southern Maryland) counties of Anne Arundel, Calvert, Charles, Prince George's and St. Mary's. It also targets customers throughout the greater Washington, D.C. metropolitan area.

The statements in this press release that are not historical facts, in particular the statements with respect to loan and deposit growth and enhanced revenue, constitute a "forward-looking statement" as defined by Federal securities laws. Such statements are subject to risks and uncertainties that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. These statements can generally be identified by the use of forward-looking terminology such as "believes," "expects," "intends," "may," "will," "should," "anticipates", "plans" or similar terminology. Actual results could differ materially from those currently anticipated due to a number of factors, including, but not limited to, deterioration in economic conditions or a slowdown in the recovery in our target markets or nationally, sustained high levels of or increases in the unemployment rate in our target markets, the actions of our competitors and our ability to successfully compete, in particular in new market areas, and changes in laws impacting our ability to collect on outstanding loans or otherwise negatively impact our business, including regulations implemented pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act enacted in July 2010. Forward-looking statements speak only as of the date they are made. Old Line Bancshares, Inc. will not update forward-looking statements to reflect factual assumptions, circumstances or events that have changed after a forward-looking statement was made. For further information regarding risks and uncertainties that could affect forward-looking statements Old Line Bancshares, Inc. may make, please refer to the filings made by Old Line Bancshares, Inc. with the U.S. Securities and Exchange Commission available at www.sec.gov.

Old Line Bancshares, Inc. & Subsidiaries
Consolidated Balance Sheets
June 30,
2014
March 31,
2014
December 31,
2013 (1)
September 30,
2013
June 30,
2013
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Cash and due from banks $ 29,887,334 $ 54,197,169 $ 28,316,351 $ 49,957,119 $ 50,689,336
Interest bearing accounts 30,389 30,383 30,375 30,364 30,352
Federal funds sold 304,246 178,806 711,574 1,005,491 3,017,257
Total cash and cash equivalents 30,221,969 54,406,358 29,058,300 50,992,974 53,736,945
Investment securities available for sale 155,706,684 172,094,347 172,169,776 181,527,632 184,190,791
Loans held for sale 4,074,911 1,646,330 2,014,711 22,584,750 4,764,595
Loans held for investment, less allowance for loan losses 889,524,786 849,429,721 847,248,590 805,890,567 787,172,298
Equity securities at cost 4,304,196 4,304,197 5,669,807 5,850,652 3,709,490
Premises and equipment 34,604,271 34,661,659 35,215,868 35,520,366 35,313,769
Accrued interest receivable 2,978,470 3,131,042 3,432,924 3,256,311 3,623,274
Deferred income taxes 19,850,224 20,639,961 21,868,076 21,451,728 23,111,238
Bank owned life insurance 31,000,380 30,787,554 30,577,187 30,357,357 30,135,483
Other real estate owned 4,627,465 4,593,154 4,311,342 5,909,260 5,396,654
Goodwill 7,793,665 7,793,665 7,793,665 7,793,665 6,847,424
Core deposit intangible 4,846,737 5,058,951 5,287,501 5,518,619 5,749,737
Other assets 3,732,934 4,390,527 2,575,377 3,059,574 3,332,944
Total assets $ 1,193,266,692 $ 1,192,937,466 $ 1,167,223,124 $ 1,179,713,455 $ 1,147,084,642
Deposits
Non-interest bearing $ 237,614,952 $ 234,512,077 $ 228,733,624 $ 223,503,418 $ 213,570,493
Interest bearing 771,801,936 773,640,266 745,625,862 761,869,410 781,968,601
Total deposits 1,009,416,888 1,008,152,343 974,359,486 985,372,828 995,539,094
Short term borrowings 35,769,108 38,193,867 49,530,125 56,204,082 28,818,101
Long term borrowings 6,043,715 6,071,856 6,093,074 6,118,744 6,142,962
Accrued interest payable 229,939 241,981 264,807 250,164 259,847
Accrued pension 5,003,784 4,996,120 4,921,241 4,844,855 4,768,470
Other liabilities 4,628,544 5,733,491 5,505,073 3,791,019 3,825,204
Total liabilities 1,061,091,978 1,063,389,658 1,040,673,806 1,056,581,692 1,039,353,678
Stockholders' equity
Common stock 107,854 107,854 107,772 107,612 98,202
Additional paid-in capital 104,820,171 104,748,891 104,622,171 104,408,960 92,145,572
Retained earnings 27,621,537 26,283,617 24,879,275 20,882,086 19,066,586
Accumulated other comprehensive income (loss) (639,502) (1,871,087) (3,359,823) (2,628,710) (3,946,354)
Total Old Line Bancshares, Inc. stockholders' equity 131,910,060 129,269,275 126,249,395 122,769,948 107,364,006
Non-controlling interest 264,654 278,533 299,923 361,815 366,958
Total stockholders' equity 132,174,714 129,547,808 126,549,318 123,131,763 107,730,964
Total liabilities and stockholders' equity $ 1,193,266,692 $ 1,192,937,466 $ 1,167,223,124 $ 1,179,713,455 $ 1,147,084,642
Shares of basic common stock outstanding 10,785,370 10,785,370 10,777,112 10,761,112 9,820,217
(1) Financial information as of December 31, 2013 has been derived from audited financial statements.
Old Line Bancshares, Inc. & Subsidiaries
Consolidated Statements of Income
Three Months
Ended
June 30,
Three Months
Ended
March 31,
Three Months
Ended
December 31,
Three Months
Ended
September 30,
Three Months
Ended
June 30,
Six Months
Ended
June 30,
Six Months
Ended
June 30,
2014 2014 2013 (1) 2013 2013 2014 2013
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
Interest income
Loans, including fees $ 10,599,999 $ 10,333,973 $ 11,519,191 $ 11,527,459 $ 9,327,905 $ 20,933,971 $ 17,159,728
Investment securities and other 1,017,039 1,037,897 1,060,493 1,031,015 979,699 2,054,937 1,964,952
Total interest income 11,617,038 11,371,870 12,579,684 12,558,474 10,307,604 22,988,908 19,124,680
Interest expense
Deposits 856,639 894,303 923,039 970,911 964,955 1,750,942 1,822,094
Borrowed funds 148,918 118,276 122,522 111,728 139,472 267,194 251,959
Total interest expense 1,005,557 1,012,579 1,045,561 1,082,639 1,104,427 2,018,136 2,074,053
Net interest income 10,611,481 10,359,291 11,534,123 11,475,835 9,203,177 20,970,772 17,050,627
Provision for loan losses 1,544,280 269,769 514,190 590,000 200,000 1,814,049 400,000
Net interest income after provision for loan losses 9,067,201 10,089,522 11,019,933 10,885,835 9,003,177 19,156,723 16,650,627
Non-interest income
Service charges on deposit accounts 493,482 451,596 472,945 466,571 367,674 945,078 668,415
Gain on sales or calls of investment securities 129,911 -- -- -- 9,659 129,911 641,088
Gain on sale of stock -- 96,993 -- -- 200,641 96,993 --
Earnings on bank owned life insurance 246,371 243,607 252,265 253,894 145,795 489,978 333,869
Gains (losses) on disposal of assets 17,919 -- -- -- (19,078) 17,919 (104,639)
Gain on sale of loans 195,829 106,720 3,601,972 236,167 146,565 302,548 146,565
Other fees and commissions 784,622 493,209 852,470 594,324 302,038 1,277,223 695,516
Total non-interest income 1,868,134 1,392,125 5,179,652 1,550,956 1,153,294 3,259,650 2,380,814
Non-interest expense
Salaries & employee benefits 4,051,407 4,873,634 4,668,944 4,684,407 4,126,567 8,925,041 7,359,245
Occupancy & Equipment 1,436,564 1,586,777 1,513,265 1,556,221 1,214,947 3,022,735 2,283,815
Data processing 312,042 307,160 393,863 459,973 329,878 619,202 568,934
Merger and integration -- 29,167 349,028 143,082 2,786,350 29,167 3,026,835
Core deposit amortization 212,214 228,550 231,119 231,118 198,875 440,764 376,457
(Gains)losses on sales other real estate owned (79,127) (203,068) (210,665) 11,072 770 (282,195) 201,224
OREO expense 112,659 83,066 210,122 159,234 154,908 195,725 469,073
Other operating 2,446,147 2,071,256 2,284,281 2,017,902 1,723,373 4,517,401 3,329,981
Total non-interest expense 8,491,906 8,976,542 9,439,957 9,263,009 10,535,668 17,467,840 17,615,564
Income (loss) before income taxes 2,443,429 2,505,105 6,759,628 3,173,782 (379,197) 4,948,533 1,415,877
Income tax (benefit) expense 687,973 690,737 2,393,268 970,510 (283,417) 1,378,711 238,305
Net income (loss) 1,755,456 1,814,368 4,366,360 2,203,272 (95,780) 3,569,822 1,177,572
Less: Net (loss) attributable to the noncontrolling interest (13,880) (21,389) (61,892) (5,142) (11,495) (35,269) (24,590)
Net income (loss) available to common stockholders $ 1,769,336 $ 1,835,757 $ 4,428,252 $ 2,208,414 $ (84,285) $ 3,605,091 $ 1,202,162
Earnings (loss) per basic share $ 0.16 $ 0.17 $ 0.41 $ 0.22 $ (0.01) $ 0.33 $ 0.16
Earnings (loss) per diluted share $ 0.16 $ 0.17 $ 0.41 $ 0.22 $ (0.01) $ 0.33 $ 0.15
Dividend per common share $ 0.04 $ 0.04 $ 0.04 $ 0.04 $ 0.04 $ 0.08 $ 0.08
Average number of basic shares 10,785,370 10,780,141 10,768,104 10,004,138 8,505,016 10,782,770 7,681,337
Average number of dilutive shares 10,948,368 10,942,110 10,891,654 10,117,380 8,609,164 10,944,981 7,776,679
(1) Financial information as of December 31, 2013 has been derived from audited financial statements.
Old Line Bancshares, Inc. & Subsidiaries
Average Balances, Interest and Yields
6/30/2014 3/31/2014 12/31/2013 9/30/2013 6/30/2013
Average
Balance

Yield
Average
Balance

Yield
Average
Balance

Yield
Average
Balance

Yield
Average
Balance

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

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

6/30/2014 3/31/2014 12/31/2013 9/30/2013 6/30/2013
Fair Value
Accretion
Dollars
% Impact on
Net Interest
Margin
Fair Value
Accretion
Dollars
% Impact on
Net Interest
Margin
Fair Value
Accretion
Dollars
% Impact on
Net Interest
Margin
Fair Value
Accretion
Dollars
% Impact on
Net Interest
Margin
Fair Value
Accretion
Dollars
% Impact on
Net Interest
Margin
Commercial loans (1) $ (3,509) (0.00)% $ 7,468 0.00% $ 102 0.00% $ 14,763 0.01% $ 38,933 0.02%
Mortgage loans 344,403 0.13 287,526 0.11 1,322,480 0.51 1,221,653 0.48 173,261 0.07
Consumer loans 6,338 0.00 4,635 0.00 7,821 0.00 6,032 0.00 2,876 0.00
Interest bearing deposits 162,452 0.06 129,327 0.05 164,527 0.06 178,556 0.07 85,046 0.05
Total Fair Value Accretion $ 509,684 0.19% $ 428,956 0.16% $ 1,494,930 0.57% $1,421,004 0.56% $ 300,116 0.14%
(1) Negative accretion on commercial loans is due to the payoff of loans in prior periods which caused a reduction in credit quality and level yield income on acquired loan portfolio.

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

6/30/2014 3/31/2014 12/31/2013 9/30/2013 6/30/2013
Net Interest
Income

Yield
Net Interest
Income

Yield
Net Interest
Income

Yield
Net Interest
Income

Yield
Net Interest
Income

Yield
GAAP net interest income $ 10,611,481 4.11% $ 10,359,291 4.11% $ 11,534,123 4.46% $ 11,475,835 4.56% $ 9,203,177 4.08%
Tax equivalent adjustment
Federal funds sold -- -- -- -- -- -- -- -- 1 0.00
Investment securities 258,980 0.10 281,377 0.11 282,137 0.11 286,755 0.11 284,510 0.13
Loans 176,608 0.07 168,501 0.07 170,094 0.07 171,348 0.07 168,773 0.07
Total tax equivalent adjustment 435,588 0.17 449,878 0.18 452,231 0.18 458,103 0.18 453,284 0.20
Tax equivalent interest yield $ 11,047,069 4.28% $ 10,809,169 4.29% $ 11,986,354 4.64% $ 11,933,938 4.74% $ 9,656,461 4.28%
Old Line Bancshares, Inc. & Subsidiaries
Selected Loan Information
(Dollars in thousands)
June 30,
2014
March 31,
2014
December 31,
2013
September 30,
2013
June 30,
2013
Acquired Loans(1)
Non-accrual(2) $ 593 $ 861 $ 663 $ -- $ --
Accruing 30-89 days past due 1,478 2,977 3,198 2,985 6,965
Accruing 90 or more days past due(4) 1,271 477 -- 2,434 15,251
Legacy Loans(3)
Non-accrual $ 7,176 $ 7,202 $ 8,156 $ 1,870 $ 1,889
Accruing 30-89 days past due 2,177 1,623 1,574 2,292 2,607
Accruing 90 or more days past due 674 230 2 1,951 --
Allowance for loan losses as % of held for investment loans 0.71% 0.57% 0.58% 0.55% 0.54%
Allowance for loan losses as % of legacy loans 0.80% 0.76% 0.78% 0.77% 0.83%
Total non-performing loans as a % of held for investment loans 1.08% 1.56% 1.73% 0.77% 2.18%
Total non-performing assets as a % of total assets 1.20% 1.12% 1.27% 1.03% 1.96%
(1) Acquired loans represent all loans acquired on April 1, 2011 from MB&T and on May 10, 2013 from WSB. We originally recorded these loans at fair value upon acquisition.
(2) These loans are loans that are considered non-accrual because they are not paying in conformance with the original contractual agreement. At acquisition, we recorded these loans at fair value. Until the December 31, 2013 quarter, we recognized interest income on these loans through the accretion of the difference between the carrying value of these loans and their expected cash flows. In the fourth quarter of 2013, we are no longer recording interest on these loans that were not purchased as credit impaired.
(3) Legacy loans represent total loans excluding loans acquired on April 1, 2011 and May 10, 2013.
(4) Previously reported non-accrual loans have been reclassified due to the accretion of income and are reported on a past due basis for the period ending June 30, 2013.

CONTACT: OLD LINE BANCSHARES, INC. CONTACT: ELISE HUBBARD CHIEF FINANCIAL OFFICER (301) 430-2560Source:Old Line Bancshares, Inc.