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Old Line Bancshares, Inc. Reports $2.8 Million in Net Income Available to Common Stockholders, a 50% Increase, for the First Quarter Ended March 31, 2015

BOWIE, Md., April 15, 2015 (GLOBE NEWSWIRE) -- Old Line Bancshares, Inc. (Nasdaq:OLBK), the parent company of Old Line Bank, reported net income available to common stockholders increased $918,396, or 50.03% to $2.8 million for the three months ended March 31, 2015, compared to net income of $1.8 million for the three months ended March 31, 2014. Earnings were $0.25 per basic and diluted common share for the three months ended March 31, 2015 and $0.17 per basic and diluted common share for the same period in 2014. The increase in net income is primarily the result of a $1.1 million increase in net interest income, a $440 thousand increase in non-interest income and a $285 thousand decrease in non-interest expenses, offsetting an increase of $292 thousand in the provision for loan losses.

Total assets at March 31, 2015 increased by $47.6 million compared to December 31, 2014. Total net loans held-for-investment increased $37.1 million, or 4.01%, during the three month period ended March 31, 2015. Non-performing assets decreased to 0.44% of total assets at March 31, 2015 compared to 0.65% at December 31, 2014.

James W. Cornelsen, President and Chief Executive Officer of Old Line Bancshares, Inc. stated: "We are pleased to report strong earnings for the first quarter of 2015 and look forward to building on this momentum during the remainder of the year. Total net loans held for investment increased $37.1 million in the first quarter and our deposits have increased $35.7 million during the first quarter. Our non-performing assets as a percentage of total assets decreased to 0.44% compared to 0.65% at December 31, 2014. We believe we are in a good position to manage the external challenges the markets and economy will continue to offer. We also believe that the superior level of customer service we offer is widely recognized in our marketplace. Our primary message is that we will continue to build on our solid foundation to better serve our customers, while steadily investing in new growth opportunities that will further increase profitability."

1st QUARTER HIGHLIGHTS:

  • Net loans held-for-investment increased $37.1 million, or 4.01%, during the three months ended March 31, 2015, to $963.7 million at March 31, 2015, compared to $926.6 million at December 31, 2014, as a result of organic growth within our surrounding market area. Average gross loans increased $49.6 million, or 5.48% to $954.9 million for the period ending March 31, 2015 compared to $905.2 million for the three month period ended December 31, 2014.
  • Total assets increased $47.6 million, 3.88%, since December 31, 2014.
  • Net income increased 50.03% to $2.8 million, or $0.25 per basic and diluted share, was recorded for the three month period ending March 31, 2015, compared to net income of $1.8 million, or $0.17 per basic and diluted share, for the first quarter of 2014.
  • Non-performing assets decreased 60.71% to 0.44% of total assets at March 31, 2015 compared to 1.12% at March 31 2014. Non-performing assets stood at 0.65% at December 31, 2014.
  • The net interest margin was 4.32% compared to 4.29% for the same period in 2014. Total yield on interest earning assets increased to 4.70% for the three months ending March 31, 2015, compared to 4.69% for the same three month period last year. Interest expense as a percentage of total interest-bearing liabilities decreased slightly to 0.50% for the three months ended March 31, 2015 compared to 0.51% for the same three month period of 2014.
  • The first quarter Return on Average Assets (ROAA) and Return on Average Equity (ROAE) were 0.89% and 8.27%, respectively, compared to ROAA and ROAE of 0.64% and 5.95%, respectively, for the first quarter of 2014.
  • Total deposits grew by $35.7 million, or 3.52%, since December 31, 2014.
  • The first quarter of 2015 ended with a book value of $12.77 per common share and a tangible book value of $11.65 per common share compared to $12.51 and $11.38, respectively, at December 31 2014.
  • We maintained liquidity and by all regulatory measures remained "well capitalized."

On February 25, 2015, Old Line Bancshares, Inc. board of directors approved the repurchase of up to 500,000 shares of its outstanding common stock. As of March 31, 2015, 65,245 shares have been repurchased at an average price of $15.60 per share. The repurchased shares will return to the status of authorized but unissued shares.

Total assets at March 31, 2015 increased $47.6 million from December 31, 2014 primarily due to an increase of $37.1 million in loans held-for-investment and $13.4 million in cash and cash equivalents, offsetting a decrease of $3.3 million in our investment portfolio.

Nonperforming assets, which include non-accrual loans, foreclosed real estate and troubled debt restructured loans, decreased 21 basis points from 0.65% of total assets at December 31, 2014 to 0.44% of total assets at March 31, 2015.

Deposit growth for the three months consisted of an increase in interest bearing deposits of $26.9 million and non-interest bearing deposits of $8.8 million. As compared to March 31, 2014, interest bearing deposits increased $8.08 million, or 1.04% and non-interest bearing deposits increased $35.2 million or 15.02%.

Net interest income increased for the three month period ending March 31, 2015 compared to the same period of 2014 as a result of an increase in the amount of our average interest earning assets, offset by an increase in our average interest bearing liabilities. During the quarter ended March 31, 2015, yield on our average interest earning assets was 4.70% compared to 4.69% for the same three month period of 2014. The net effect of fair value accretion/amortization on acquired loans affects the net interest income. The fair value accretion/amortization is recorded on pay downs during the period recognized. Payoffs during the three months ending March 31, 2015 contributed a 21 basis points increase, as compared to 11 basis points for the three months ending March 31, 2014. The fair value accretion recorded on acquired deposits effects interest expense. The amount of the accretion on such deposits decreased by 4 basis points as compared to the same three month period last year. Average interest bearing liabilities for the three month period ending March 31, 2015 increased $42.5 million compared to the same period of 2014. The average yield on such liabilities slightly decreased to 0.50% for the three months ending March 31, 2015 compared to 0.51% for the three months ending March 31, 2014.

Net interest margin for the three months ended March 31, 2015 increased to 4.32% from 4.29% for the three months ending March 31, 2014. We have been able to maintain our core net interest margin over the past year even though the prolonged low interest rate environment has resulted in downward pressure on asset yields. Our growth in loans continues to result in favorable volume component change and overall change.

Non-interest income increased for the three month period ending March 31, 2015 compared to the same period of 2014 primarily as a result of increases of $248 thousand in gain on sale of loans and $240 thousand in other fees and commissions, offsetting a decrease of $36 thousand in service charges on deposit accounts. The emerging residential mortgage division increased the gain on sale of loans due to the gains recorded on the residential mortgage loans sold in the secondary market. The increase in other fees and commissions is primarily related to increased letter of credit fees and other marketable loan fees. Service charges on deposit accounts decreased as a result of lower overdraft and ATM fees compared to the same three month period last year.

Non-interest expenses decreased for the three month period ending March 31, 2015 compared to the same period of 2014 primarily as a result of decreases in salaries and benefits and occupancy and equipment, partially offset by an increase in other expenses and the loss on other real estate properties. Salaries and benefits decreased as severance payments were included in the same three month period last year as well as the elimination of salaries associated with four branches that closed effective December 31, 2014. The severance was associated with merger related staff reductions. Occupancy and equipment decreased as a result of the previously mentioned branch closings. Losses on the sale of three other real estate properties during the three months ended March 31, 2015 resulted in a net loss of $135 thousand compared to a net gain of $203 thousand on the sale of two properties for the comparable period last year.

The provision for loan losses increased $292 thousand for the three month period ending March 31, 2015 compared to the same period last year due to the increase in our loan held-for-investment portfolio and an increase in our reserves on specific loans.

Old Line Bancshares, Inc. is the parent company of Old Line Bank, a Maryland chartered commercial bank headquartered in Bowie, Maryland, approximately 10 miles east of Andrews Air Force Base and 20 miles east of Washington, D.C. Old Line Bank has 19 branches located in its primary market area of suburban Maryland (Washington, D.C. suburbs and Southern Maryland) counties of Anne Arundel, Calvert, Charles, Prince George's and St. Mary's. It also targets customers throughout the greater Washington, D.C. metropolitan area.

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

Old Line Bancshares, Inc. & Subsidiaries
Consolidated Balance Sheets
March 31,
2015
December 31,
2014 (1)
September 30,
2014
June 30,
2014
March 31,
2014
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Cash and due from banks $ 37,061,793 $ 23,572,613 $ 42,266,194 $ 29,887,334 $ 54,197,169
Interest bearing accounts 1,080,570 1,230,864 30,396 30,389 30,383
Federal funds sold 624,888 601,259 533,612 304,246 178,806
Total cash and cash equivalents 38,767,251 25,404,736 42,830,202 30,221,969 54,406,358
Investment securities available for sale 158,380,719 161,680,198 163,535,833 155,706,684 172,094,347
Loans held for sale 8,692,297 4,548,106 5,735,282 4,074,911 1,646,330
Loans held for investment, less allowance for loan losses of $4,636,048 and $4,281,835 for March 31, 2015 and December 31, 2014. 963,706,538 926,573,488 883,905,233 889,524,786 849,429,721
Equity securities at cost 3,353,096 5,811,697 4,304,197 4,304,196 4,304,197
Premises and equipment 33,874,131 34,300,375 34,366,258 34,604,271 34,661,659
Accrued interest receivable 3,172,615 3,218,428 3,002,457 2,978,470 3,131,042
Deferred income taxes 12,506,347 16,106,498 19,843,857 19,850,224 20,639,961
Current income taxes receivable 1,312,872 -- -- -- --
Bank owned life insurance 31,643,001 31,429,747 31,214,396 31,000,380 30,787,554
Other real estate owned 1,600,015 2,451,920 2,699,846 4,627,465 4,593,154
Goodwill 7,793,665 7,793,665 7,793,665 7,793,665 7,793,665
Core deposit intangible 4,210,679 4,420,796 4,633,766 4,846,737 5,058,951
Other assets 6,087,688 3,779,350 4,128,206 3,732,934 4,390,527
Total assets $ 1,275,100,914 $ 1,227,519,004 $ 1,207,993,198 $ 1,193,266,692 $ 1,192,937,466
Deposits
Non-interest bearing $ 269,733,047 $ 260,913,521 $ 247,291,192 $ 237,614,952 $ 234,512,077
Interest bearing 781,718,574 754,825,885 772,344,384 771,801,936 773,640,266
Total deposits 1,051,451,621 1,015,739,406 1,019,635,576 1,009,416,888 1,008,152,343
Short term borrowings 71,236,281 61,002,889 35,558,734 35,769,108 38,193,867
Long term borrowings 5,958,485 5,987,283 6,017,844 6,043,715 6,071,856
Accrued interest payable 284,444 266,023 241,740 229,939 241,981
Supplemental executive retirement plan 5,162,732 5,095,141 5,069,745 5,003,784 4,996,120
Income taxes payable -- 485,435 3,406,234 2,376,461 2,988,981
Other liabilities 3,420,900 3,416,190 4,557,087 2,252,083 2,744,510
Total liabilities 1,137,514,463 1,091,992,367 1,074,486,960 1,061,091,978 1,063,389,658
Stockholders' equity
Common stock 107,551 108,110 107,864 107,854 107,854
Additional paid-in capital 104,313,092 105,235,646 104,900,904 104,820,171 104,748,891
Retained earnings 32,281,404 30,067,798 28,826,765 27,621,537 26,283,617
Accumulated other comprehensive income (loss) 630,791 (147,250) (589,650) (639,502) (1,871,087)
Total Old Line Bancshares, Inc. stockholders' equity 137,332,838 135,264,304 133,245,883 131,910,060 129,269,275
Non-controlling interest 253,613 262,333 260,355 264,654 278,533
Total stockholders' equity 137,586,451 135,526,637 133,506,238 132,174,714 129,547,808
Total liabilities and stockholders' equity $ 1,275,100,914 $ 1,227,519,004 $ 1,207,993,198 $ 1,193,266,692 $ 1,192,937,466
Shares of basic common stock outstanding 10,755,017 10,810,930 10,786,370 10,785,370 10,785,370
(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
March 31,
2015
Three Months
Ended
December 31,
2014 (1)
Three Months
Ended
September 30,
2014
Three Months
Ended
June 30,
2014
Three Months
Ended
March 31,
2014
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Interest income
Loans, including fees $ 11,621,493 $ 10,556,729 $ 10,232,684 $ 10,599,999 $ 10,333,973
Investment securities and other 886,084 939,602 885,324 1,017,039 1,037,897
Total interest income 12,507,577 11,496,331 11,118,008 11,617,038 11,371,870
Interest expense
Deposits 910,957 799,716 850,964 856,639 894,303
Borrowed funds 134,716 119,214 111,693 148,918 118,276
Total interest expense 1,045,673 918,930 962,657 1,005,557 1,012,579
Net interest income 11,461,904 10,577,401 10,155,351 10,611,481 10,359,291
Provision for loan losses 561,731 458,114 555,134 1,544,280 269,769
Net interest income after provision for loan losses 10,900,173 10,119,287 9,600,217 9,067,201 10,089,522
Non-interest income
Service charges on deposit accounts 415,202 475,120 483,865 493,482 451,596
Gain on sales or calls of investment securities 60,694 -- -- 129,911 --
Gain on sale of stock -- -- -- -- 96,993
Earnings on bank owned life insurance 248,384 249,967 248,259 246,371 243,607
Gains (losses) on disposal of assets 19,975 (48,051) -- 17,919 --
Gain on sale of loans 354,650 276,531 224,930 195,829 106,720
Other fees and commissions 733,004 438,561 348,090 784,622 493,209
Total non-interest income 1,831,909 1,392,128 1,305,144 1,868,134 1,392,125
Non-interest expense
Salaries & employee benefits 4,217,370 4,303,832 4,602,520 4,051,407 4,873,634
Occupancy & Equipment 1,399,877 1,878,052 1,367,808 1,436,564 1,586,777
Data processing 352,060 352,956 368,717 312,042 307,160
Merger and integration -- -- -- -- 29,167
Core deposit amortization 210,117 212,970 212,970 212,214 228,550
(Gains)losses on sales of other real estate owned 134,754 (155,148) (260,533) (79,127) (203,068)
OREO expense 120,201 199,094 159,238 112,659 83,066
Other operating 2,257,235 2,257,866 2,078,155 2,446,147 2,071,256
Total non-interest expense 8,691,614 9,049,622 8,528,875 8,491,906 8,976,542
Income before income taxes 4,040,468 2,461,793 2,376,486 2,443,429 2,505,105
Income tax expense 1,295,035 679,154 636,239 687,973 690,737
Net income 2,745,433 1,782,639 1,740,247 1,755,456 1,814,368
Less: Net income (loss) attributable to the noncontrolling interest (8,720) 1,978 (4,299) (13,880) (21,389)
Net income available to common stockholders $ 2,754,153 $ 1,780,661 $ 1,744,546 $ 1,769,336 $ 1,835,757
Earnings per basic share $ 0.25 $ 0.17 $ 0.16 $ 0.16 $ 0.17
Earnings per diluted share $ 0.25 $ 0.16 $ 0.16 $ 0.16 $ 0.17
Dividend per common share $ 0.05 $ 0.05 $ 0.05 $ 0.04 $ 0.04
Average number of basic shares 10,807,366 10,792,544 10,785,881 10,785,370 10,780,141
Average number of dilutive shares 10,899,030 10,941,002 10,921,555 10,948,368 10,942,110
(1) Financial information as of December 31, 2014 has been derived from audited financial statements.
Old Line Bancshares, Inc. & Subsidiaries
Average Balances, Interest and Yields
3/31/2015 12/31/2014 9/30/2014 6/30/2014 3/31/2014
Average
Balance
Yield Average
Balance
Yield Average
Balance
Yield Average
Balance
Yield Average
Balance
Yield
Assets:
Int. Bearing Deposits $ 593,602 0.12% $ 2,902,672 0.20% $ 3,896,273 0.17% $ 4,024,265 0.17% $ 1,352,504 0.12%
Investment Securities(2) 164,560,281 2.70% 168,069,134 2.40% 159,259,044 2.94% 170,389,632 3.00% 174,564,325 3.06%
Loans 954,873,037 5.02% 905,241,954 4.78% 897,381,372 4.57% 865,944,038 4.99% 851,079,999 5.00%
Allowance for Loan Losses (4,498,086) (2,570,097) (6,422,492) (5,290,130) (5,001,250)
Total Loans
Net of allowance 950,374,951 5.04% 902,671,857 4.79% 890,958,880 4.60% 860,653,908 5.02% 846,078,749 5.03%
Total interest-earning assets 1,115,528,834 4.70% 1,073,643,663 4.42% 1,054,114,197 4.33% 1,035,067,805 4.67% 1,021,995,578 4.69%
Noninterest bearing cash 34,422,919 38,925,730 42,071,667 39,297,001 36,258,104
Other Assets 102,782,917 107,033,944 109,199,887 109,464,228 110,237,569
Total Assets $ 1,252,734,670 $ 1,219,603,337 $ 1,205,385,751 $ 1,183,829,034 $ 1,168,491,251
Liabilities and Stockholders' Equity
Interest-bearing Deposits $ 772,838,785 0.48% $ 767,241,928 0.41% $ 776,032,831 0.44% $ 768,879,677 0.45% $ 751,439,481 0.48%
Borrowed Funds 72,721,100 0.75% 50,442,530 0.94% 39,031,131 1.14% 41,102,469 1.45% 51,661,794 0.93%
Total interest-bearing liabilities 845,559,885 0.50% 817,684,458 0.45% 815,063,962 0.47% 809,982,146 0.50% 803,101,275 0.51%
Noninterest bearing deposits 262,926,103 255,002,560 247,346,466 234,063,213 229,229,562
1,108,485,988 1,072,687,018 1,062,410,428 1,044,045,359 1,032,330,837
Other Liabilities 9,009,800 11,057,397 10,072,582 9,603,037 10,813,815
Noncontrolling Interest 258,240 261,545 262,435 270,521 285,355
Stockholder's Equity 134,980,642 135,597,377 132,640,306 129,910,117 125,061,244
Total Liabilities and Stockholder's Equity $ 1,252,734,670 $ 1,219,603,337 $ 1,205,385,751 $ 1,183,829,034 $ 1,168,491,251
Net interest spread 4.20% 3.97% 3.86% 4.17% 4.18%
Net interest income and Net interest margin(1) $ 11,891,497 4.32% $ 11,034,119 4.08% $ 10,545,444 3.97% $ 11,047,069 4.28% $ 10,809,169 4.29%
(1) Interest revenue is presented on a fully taxable equivalent (FTE) basis. The FTE basis adjusts for the tax favored status of these types of assets. Management believes providing this information on a FTE basis provides investors with a more accurate picture of our net interest spread and net interest income and we believe it to be the preferred industry measurement of these calculations. See "Reconciliation of Non-GAAP Measures."
(2) Available for sale investment securities are presented at amortized cost.

The accretion of the fair value adjustments resulted in a positive impact in the yield on loans for the three months ending March 31, 2015 and 2014. Fair value accretion for the current quarter and prior four quarter are as follows:

3/31/2015 12/31/2014 9/30/2014 6/30/2014 3/31/2014
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) $ 8,690 0.00% $ (969) (0.00)% $ (16,219) (0.01)% $ (3,509) (0.00)% $ 7,468 0.00%
Mortgage loans (1) 589,266 0.21 24,779 0.01 (278,619) (0.10) 344,403 0.13 287,526 0.11
Consumer loans 11,390 0.00 6,686 0.00 4,209 0.00 6,338 0.00 4,635 0.00
Interest bearing deposits 37,263 0.01 110,503 0.04 131,837 0.05 162,452 0.06 129,327 0.05
Total Fair Value Accretion (Amortization) $ 646,609 0.22% $ 140,999 0.05% $ (158,792) (0.06)% $ 509,684 0.19% $ 428,956 0.16%
(1) Negative accretion on commercial and mortgage loans is due to the early payoff of loans which caused a reduction in fair value income on acquired loan portfolio.

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

3/31/2015 12/31/2014 9/30/2014 6/30/2014 3/31/2014
Net Interest
Income
Yield Net Interest
Income
Yield Net Interest
Income
Yield Net Interest
Income
Yield Net Interest
Income
Yield
GAAP net interest income 11,461,904 4.17% 10,577,401 3.91% 10,155,351 3.82% $ 10,611,481 4.11% $ 10,359,291 4.11%
Tax equivalent adjustment
Federal funds sold 1 0.00 1 0.00 -- -- -- -- -- --
Investment securities 200,498 0.07 343,280 0.13 294,770 0.11 258,980 0.10 281,377 0.11
Loans 229,094 0.08 113,437 0.04 95,323 0.04 176,608 0.07 168,501 0.07
Total tax equivalent adjustment 429,593 0.15 456,718 0.17 390,093 0.15 435,588 0.17 449,878 0.18
Tax equivalent interest yield $ 11,891,497 4.32% $ 11,034,119 4.08% $ 10,545,444 3.97% $ 11,047,069 4.28% $ 10,809,169 4.29%
Old Line Bancshares, Inc. & Subsidiaries
Selected Loan Information
(Dollars in thousands)
March 31,
2015
December 31,
2014
September 30,
2014
June 30,
2014
March 31,
2014
Acquired Loans(1)
Period End Loan Balance $ 171,527 $ 173,659 $ 186,896 $ 203,201 $ 210,832
Deferred Costs -- 10 9 11 1
Accruing 165,956 167,704 183,094 199,859 206,517
Non-accrual(2) 2,518 1,958 1,291 593 861
Accruing 30-89 days past due 3,053 3,687 1,569 1,478 2,977
Accruing 90 or more days past due -- 310 942 1,271 477
Other real estate owned 1,125 1,977 2,225 3,826 3,784
Net charge offs (recoveries) (16) 52 316 106 148
Legacy Loans(3)
Period End Loan Balance $ 795,532 $ 749,968 $ 699,833 $ 691,619 $ 642,482
Deferred Costs 1,283 1,283 1,048 1,039 998
Accruing 793,576 746,376 692,854 681,592 633,461
Non-accrual 1,105 3,249 3,263 7,176 7,202
Accruing 30-89 days past due 851 343 3,411 2,177 1,601
Accruing 90 or more days past due -- -- 305 674 218
Other real estate owned 475 475 475 802 809
Net charge offs (recoveries) 224 (4) 2,691 (4) 169
Allowance for loan losses as % of held for investment loans 0.48% 0.46% 0.44% 0.71% 0.57%
Allowance for loan losses as % of legacy loans 0.59% 0.57% 0.55% 0.80% 0.76%
Total non-performing loans as a % of held for investment loans 0.37% 0.56% 0.96% 1.08% 1.56%
Total non-performing assets as a % of total assets 0.44% 0.65% 0.70% 1.20% 1.12%
(1) Acquired loans represent all loans acquired on April 1, 2011 from MB&T and on May 10, 2013 from WSB. We originally recorded these loans at fair value upon acquisition.
(2) These loans are loans that are considered non-accrual because they are not paying in conformance with the original contractual agreement. At acquisition, we recorded these loans at fair value. Until the December 31, 2013 quarter, we recognized interest income on these loans through the accretion of the difference between the carrying value of these loans and their expected cash flows. In the fourth quarter of 2013, we are no longer recording interest on these loans that were not purchased as credit impaired.
(3) Legacy loans represent total loans excluding loans acquired on April 1, 2011 and May 10, 2013.

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