OLD LINE BANCSHARES INC - FORM 8-K - EX-99.1 - EXHIBIT 99.1

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8-K - OLD LINE BANCSHARES, INC. FORM 8-K - OLD LINE BANCSHARES INC	olb8k.htm

EXHIBIT 99.1

PRESS RELEASE	OLD LINE BANCSHARES, INC.
FOR IMMEDIATE RELEASE	CONTACT: ELISE HUBBARD
July 21, 2014	CHIEF FINANCIAL OFFICER
	(301) 430-2560

OLD LINE BANCSHARES, INC. REPORTS SECOND QUARTER LOAN GROWTH OF 5.00%

BOWIE, MD – 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 invesment, 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.

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OLD LINE BANCSHARES INC Reports