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8-K - FORM 8-K - OLD LINE BANCSHARES INC | olbk_currentfolio8k123116.htm |
Exhibit
99.1
PRESS
RELEASE
OLD LINE
BANCSHARES, INC.
FOR IMMEDIATE
RELEASE
CONTACT: ELISE
HUBBARD
January 17,
2017
CHIEF FINANCIAL
OFFICER
(301)
430-2560
OLD LINE BANCSHARES, INC. REPORTS RECORD QUARTERLY RESULTS OF $4.3
MILLION IN NET INCOME, LOAN GROWTH OF 5.32%, RETURN ON AVERAGE
ASSETS OF 1.03% AND OPERATING EFFICIENCY OF 55.63% FOR THE QUARTER
ENDED DECEMBER 31, 2016
BOWIE,
MD – Old Line Bancshares, Inc. (“Company”)
(NASDAQ: OLBK), the parent company of Old Line Bank, reports net
income available to common stockholders increased $788 thousand, or
22.24%, and $2.3 million, or 116.35%, respectively, to $4.3 million
for the three months ended December 31, 2016, compared to $3.5
million for the three month period ended September 30, 2016 and
$2.0 million for the three month period ended December 31, 2015.
Earnings were $0.40 per basic and $0.39 per diluted common share
for the three months ended December 31, 2016, compared to $0.33 per
basic and $0.32 per diluted common share for the three months ended
September 30, 2016 and $0.19 per basic and diluted common share for
the three months ended December 31, 2015. The increase in net
income for the fourth quarter of 2016 as compared to the same 2015
period is primarily the result of a $1.8 million increase in net
interest income, a decrease of $1.5 million in non-interest
expenses and a decrease of $200 thousand in the provision for loan
losses
Net
loans held-for-investment at December 31, 2016 increased $68.7
million, or 5.32%, compared to September 30, 2016 and $214.1
million, or 18.67%, compared to December 31, 2015. Total assets
increased $66.6 million to $1.72 billion at December 31, 2016 as
compared to $1.65 billion at September 30, 2016. Non-interest
income decreased $567 thousand as compared to third quarter of 2016
primarily as a result of a reduction on the gain on investment
securities and marketable loans, and $23 thousand compared to the
fourth quarter of 2015. Non-interest expense decreased $1.1
million, or 11.52%, and $1.5 million, or 15.60%, respectively, for
the three month period ending December 31, 2016 compared to the
three month periods ending September 30, 2016 and December 31,
2015. This decrease is the result of a reduction in salaries and
benefits and occupancy expense associated with the staff reduction
and branch closures implemented in the second and third quarters of
2016.
Net
income available to common stockholders was $13.2 million for the
twelve months ended December 31, 2016, compared to $10.5 million
for the same period of 2015, an increase of $2.7 million, or
25.66%. Earnings were $1.21 per basic and $1.20 per diluted common
share for the twelve months ended December 31, 2016 compared to
$0.98 per basic and $0.97 per diluted common share for the same
period of 2015. The increase in net income is primarily the result
of increases of $6.4 million, or 13.63%, in net interest income and
an increase of $1.4 million, or 20.61%, in non-interest income,
partially offset by increases of $3.4 million in non-interest
expenses and $274 thousand in the provision for loan losses.
Included in net income for 2016 was $443 thousand for severance
payments and $285 thousand in occupancy and equipment expense
resulting from the previously announced strategic staff reductions
and branch closures as well as $661 thousand in merger related
expense associated with the acquisition of Regal Bancorp, Inc., the
parent company of Regal Bank & Trust (“Regal Bank”)
during the fourth quarter of 2015.
James W. Cornelsen, President and Chief Executive Officer of Old
Line Bancshares, Inc. stated: “Robust loan growth of 5.32%
along with improving operating efficiency to 55.63% resulted in
record earnings for the quarter. Achieving Return on Average Assets
of 1.03% in conjunction with increased earnings per share is
significant for our shareholders. We are proud of our 2016 results
with loan growth at a rate of 18.67% and an increase to income of
$2.7 million over 2015. Looking forward to 2017, our focus is to
continue to enhance our profitability, build on our solid
foundation by growing our loan and non-maturity deposit portfolios
and maintain our operating efficiency while investing in new growth
opportunities.”
4th
QUARTER
HIGHLIGHTS:
●
Net income
available to common stockholders increased 22.24% to $4.3 million,
or $0.40 per basic and $0.39 per diluted share, for the three month
period ending December 31, 2016, from $3.5 million, or $0.33 per
basic and $0.32 per diluted share, for the prior quarter ending
September 30, 2016.
●
Net loans
held-for-investment increased $68.7 million, or 5.32% during the
three months ended December 31, 2016, to $1.4 billion at December
31, 2016, compared to $1.3 billion at September 30, 2016, as a
result of organic growth within our market area.
●
Non-performing
assets decreased to 0.58% of total assets at December 31, 2016
compared to 0.63% at September 30, 2016.
●
The fourth quarter
2016 Return on Average Assets (ROAA) and Return on Average Equity
(ROAE) were 1.03% and 11.10%, respectively, compared to ROAA and
ROAE of 0.56% and 5.59%, respectively, for the fourth quarter of
2015.
●
Operating
efficiency improved to 55.63% during the quarter ended December 31,
2016, compared to 63.30% during the three months ended September
30, 2016 and 73.34% during the three months ended December 31,
2015.
●
The net interest
margin during the three months ended December 31, 2016 was 3.75%
compared to 3.73% for the three months ended September 30, 2016 and
3.98% for the three months ended December 31, 2015. Total yield on
interest earning assets increased to 4.36% for the three months
ending December 31, 2016, from 4.27% for the three months ended
September 30, 2016 and decreased from 4.41% for the three month
period ended December 31, 2015. Interest expense as a percentage of
total interest-bearing liabilities was 0.79% for the three months
ended December 31, 2016 compared to 0.56% for the same three month
period of 2015, with the increase being driven by the issuance of
$35 million in aggregate principal amount of the Company’s
5.625% Fixed-to-Floating Rate Subordinated Notes due in 2026 (the
“Notes”).
2016 FULL YEAR HIGHLIGHTS:
●
Net income
available to common stockholders increased $2.7 million, or 25.66%
to $13.2 million, or $1.21 per basic and $1.20 per diluted share,
for the twelve month period ending December 31, 2016, from $10.5
million, or $0.98 per basic and $0.97 per diluted share, for the
twelve months ending December 31, 2015.
●
Net loans
held-for-investment grew $214.1 million, or 18.67%, during the
twelve months ended December 31, 2016, to $1.4 billion at December
31, 2016, compared to $1.1 billion at December 31, 2015, as a
result of organic growth within our market area.
●
The growth in
average loans outstanding for the twelve month period ending
December 31, 2016 as compared to the same period of 2015 includes
approximately $91.0 million in loans from the acquisition of Regal
Bank in December 2015. Average gross loans increased $242.8
million, or 22.33% to $1.3 billion for the three month period
ending December 31, 2016 compared to $1.1 billion during the three
months ended December 31, 2015
●
Non-performing
assets decreased to 0.58% of total assets at December 31, 2016
compared to 0.60% at December 31, 2015.
●
ROAA and ROAE were
0.83% and 8.83%, respectively, for the twelve months ended December
31, 2016 compared to ROAA and ROAE of 0.79% and 7.54%,
respectively, for the twelve months ending December 31,
2015.
●
Total assets
increased $206.6 million, or 13.68%, since December 31,
2015.
●
Total deposits
increased $90.0 million, or 7.28% since December 31,
2015.
●
The net interest
margin during the year ended December 31, 2016 was 3.79% compared
to 4.08% for 2015. Total yield on interest earning assets decreased
to 4.31% for the year ending December 31, 2016, compared to 4.49%
for 2015. Interest expense as a percentage of total
interest-bearing liabilities was 0.68% for the year ended December
31, 2016 compared to 0.54% for 2015.
●
The Company ended
2016 with a book value of $13.81 per common share and a tangible
book value of $12.59 per common share compared to $13.31 and
$12.02, respectively, at December 31, 2015.
●
We maintained
appropriate levels of liquidity and by all regulatory measures
remained “well capitalized.”
●
On August 15, 2016,
the Company completed the sale of the Notes.
●
On August 19, 2016,
Old Line Bank purchased the aggregate 37.5% interest in Pointer
Ridge Office Investment, LLC (“Pointer Ridge”) not held
by the Company for an aggregate of $280,139 pursuant to Agreements
of Purchase and Sale of Membership Interests that the Bank entered
into with each of the prior owners of the remaining (in aggregate)
37.5% interest in Pointer Ridge. Pointer Ridge owns our
headquarters building, which we lease from Pointer
Ridge.
Total
assets at December 31, 2016 increased $206.6 million from December
31, 2015 primarily due to increases of $214.1 million in loans
held-for-investment and $4.8 million in investment securities
available-for-sale, partially offset by a decrease of $20.2 million
in cash and cash equivalents. Deposits increased $90.0 million
during the twelve months ended December 31, 2016, almost all of
which is attributable to an increase in our interest bearing
deposits.
Average
interest earning assets increased $268.8 million and $260.4
million, respectively, during the three and twelve month periods
ending December 31, 2016 compared to the same periods of 2015. The
average yield on such assets was 4.36% and 4.31%, respectively, for
the three and twelve months ending December 31, 2016 compared to
4.41% and 4.49% for the comparable 2015 periods. The decreases in
the yield on interest earning assets is the result of re-pricing in
the loan portfolio and lower yields on new loans causing the
average loan yield to decline. Average interest bearing liabilities
increased $202.5 million and $200.4 million, respectively, during
the three and twelve month periods ending December 31, 2016
compared to the same periods of 2015. The average rate paid on such
liabilities increased to 0.79% and 0.68%, respectively, for the
three and twelve months ending December 31, 2016 compared to 0.56%
and 0.54% for the same periods in 2015, primarily due to higher
rates paid on our borrowings, which includes the interest paid on
the Notes and our trust preferred securities and, to a lesser
extent, higher rates on the deposits acquired in the Regal Bank
acquisition.
The net
interest margin for the three and twelve months ended December 31,
2016 decreased to 3.75% and 3.79%, respectively, from 3.98% and
4.08%, respectively, for the three and twelve months ending
December 31, 2015. The net interest margin during the 2016 periods
was affected by the increase in the interest expense, primarily due
to the interest due on the Notes and our trust preferred
securities, for which there was no comparable expense during 2015.
The net interest margin during 2016 was also affected by a lower
amount of accretion on acquired loans due to a lower amount of
early payoffs on acquired loans with credit marks during the twelve
months ending December 31, 2016 compared to the same periods of
2015. The fair value accretion/amortization is recorded on
pay-downs recognized during the period, which contributed to a five
basis point decrease for the twelve months ended December 31, 2016
as compared to the same twelve month period of 2015.
Net
interest income increased $1.8 million, or 14.43%, and $6.4
million, or 13.63%, for the three and twelve month periods ending
December 31, 2016 compared to the same periods of 2015, primarily
due to increases in the interest recognized on loans, partially
offset by the increases in interest expense. Loan interest income
increased for the three and twelve month periods ending December
31, 2016 due to organic growth as well as the loans we acquired in
the Regal Bank acquisition. Interest expense during these periods
increased due to increases in both our deposits and borrowings.
Borrowings include the Notes issued during the third quarter of
2016 as discussed above.
The
provision for loan losses decreased $200 thousand for the three
months ending December 31, 2016 compared to the same period of 2015
due to an improvement in our historical loss trend and increased
$274 thousand for the twelve months ending December 31, 2016
compared to the same period of 2015 due to an increase in our loans
held-for-investment portfolio as the result of organic growth and
reserves on specific loans. The reserves on specific loans
increased primarily due to one large commercial borrower,
consisting of two commercial real estate loans totaling $2.4
million, and 21 commercial and industrial loans totaling $1.0
million. These loans are classified as impaired and have been
adequately reserved for at December 31, 2016.
Non-interest income
decreased $23 thousand, or 1.44%, for the three month period ending
December 31, 2016 compared to the same period of 2015 primarily as
a result of a decrease of $155 thousand in other fee and
commissions, partially offset by the increases of $96 thousand in
gain on sale of loans and $22 thousand in earnings on bank owned
life insurance compared to the same period of 2015. The increase in the gain on the sale of loans is a
result of an increase in the number of residential mortgage loans
sold in the secondary market compared to the same period of 2015.
The increase in earnings on bank owned life insurance is due to the
bank owned life insurance we acquired in the Regal Bank
acquisition. The decrease in
other fees and commissions is primarily related to a decrease in
other loan fees, primarily due to a prepayment penalty of
$78 thousand received during the fourth quarter of
2015.
Non-interest income increased $1.4 million, or
20.61%, for the twelve month period ending December 31, 2016
compared to the same period of 2015. The increase is primarily the
result of increases of $1.2 million in gain on sales or calls of
investment securities, $298 thousand in gain on sale of loans and
$123 thousand in earnings on bank owned life insurance, partially
offset by decreases of $130 thousand in other fees and commissions
and $41 thousand in gains or losses on disposal of assets. The
increase in gain on sales of investment securities is the result of
re-positioning our investment portfolio during 2016, pursuant to
which we sold approximately $108 million of our lowest yielding,
longer duration investments resulting in a gain on
investments. The decrease in
other fees and commissions is primarily related to other loan fees
that were included in 2015 for a prepayment penalty and the
gain of $153 thousand received during the third quarter of 2015 as
a result of selling our credit card portfolio in 2015, partially
offset by a one-time incentive fee
received for our debit card program during 2016. The increase in
earnings on bank owned life insurance is due to the bank owned life
insurance we acquired in the Regal Bank acquisition. The increase
in gain on sale of loans is the result of an increase in the
premiums received on residential mortgage loans sold in the
secondary market during the twelve months period ending December
31, 2016 as compared to the same period last
year.
Non-interest
expense decreased $1.5 million, or 14.60%, for the three month
period ending December 31, 2016 compared to the same period of
2015, primarily as a result of decreases in merger and integration
and other real estate owned (“OREO”) expenses,
partially offset by increases in occupancy and equipment and data
processing expenses. There were no merger and integration expenses
during the 2016 period whereas we incurred $661 thousand of merger
and integration expenses during the fourth quarter of 2015 in
connection with the Regal Bancorp acquisition that consummated that
quarter. OREO expenses decreased for the 2016 period as a result of
a reduction on our expenses associated with properties in our OREO
portfolio. Occupancy and equipment expense increased as a result of
the addition of the former Regal Bank branches and the addition of
our new Rockville branches in November 2015 and June
2016.
Non-interest
expenses increased $3.4 million, or 9.28%, for the twelve month
period ending December 31, 2016 compared to the same period of 2015
primarily as a result of increases in salaries and benefits,
severance payments, occupancy and equipment data processing, and
other operating expenses, partially offset by a reduction in merger
and integration expenses, a gain on sales of OREO properties and a
decrease in OREO expenses. Salaries and benefits increased $2.4
million primarily as a result of additional staff due to our
acquisition of Regal Bank and the additional staff for our two new
Rockville locations. Severance payments of $443 thousand were
associated with the previously discussed reductions in our
operating staff. Occupancy and equipment increased $1.0 million as
a result of the additional branches acquired in the Regal Bank
acquisition and the additional opening of our two new Rockville
locations as well as the costs associated with the branch closures
during the third quarter of 2016. Data processing increased as a
result of the additional branches acquired through Regal Bank and
the new Rockville locations. Merger and integration expenses
decreased due to the majority of such expenses associated with the
acquisition of Regal Bancorp being incurred during the year that
the merger was consummated - 2015. Gain on sales of OREO properties
increased $128 thousand as a result of recording a net gain of $78
thousand for seven properties that sold during the twelve months
ending December 31, 2016 compared to a net loss of $50 thousand
during the same period last year. OREO expenses decreased as a
result of a reduction in our expenses on the properties in our OREO
portfolio.
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 21
branches located in its primary market area of suburban Maryland
(Washington, D.C. suburbs, Southern Maryland and Baltimore suburbs)
counties of Anne Arundel, Baltimore, Calvert, Carroll, Charles,
Montgomery, Prince George's and St. Mary's. It also targets
customers throughout the greater Washington, D.C. and Baltimore
metropolitan areas.
Statements
included in this press release include non-GAAP financial measures
and should be read along with the accompanying tables, which
provide a reconciliation of non-GAAP financial measures to GAAP
financial measures. The Company’s management uses non-GAAP
financial measures, Management believes that non-GAAP financial
measures provide additional useful information that allows readers
to evaluate the ongoing performance of the Company and provide
meaningful comparison to its peers. Non-GAAP financial measures
should not be considered as an alternative to any measure of
performance or financial condition as promulgated under GAAP, and
investors should consider the Company’s performance and
financial condition as reported under GAAP and all other relevant
information when assessing the performance or financial condition
of the Company. Non-GAAP financial measures have limitations as
analytical tools, and investors should not consider them in
isolation or as a substitute for analysis of the results or
financial condition as reported under GAAP.
Old Line Bancshares, Inc. & Subsidiaries
|
|||||
Consolidated Balance Sheets
|
|||||
|
|
|
|
|
|
|
December 31,
2016
|
September 30,
2016
|
June 30,
2016
|
March 31,
2016
|
December 31,
2015 (1)
|
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|
Cash and due from banks
|
$22,062,912
|
$28,696,913
|
$32,123,006
|
$34,108,645
|
$40,239,384
|
Interest bearing accounts
|
1,151,917
|
1,159,687
|
1,167,418
|
1,150,474
|
1,135,263
|
Federal funds sold
|
248,342
|
301,262
|
352,572
|
325,606
|
2,326,045
|
Total cash and cash equivalents
|
23,463,171
|
30,157,862
|
33,642,996
|
35,584,725
|
43,700,692
|
Investment securities available for sale
|
199,505,204
|
201,830,885
|
190,297,596
|
190,749,087
|
194,705,675
|
Loans held for sale
|
8,418,435
|
7,578,285
|
6,111,808
|
4,148,506
|
8,112,488
|
Loans held for invesment, less allowance for loan losses of
$6,195,469
|
|
|
|
|
|
and $4,909,818 for December 31, 2016 and December 31,
2015
|
1,361,175,206
|
1,292,431,559
|
1,242,017,598
|
1,175,828,165
|
1,147,034,715
|
Equity securities at cost
|
8,303,347
|
6,603,346
|
7,304,646
|
5,710,845
|
4,942,346
|
Premises and equipment
|
35,700,659
|
36,153,064
|
36,567,012
|
35,995,176
|
36,174,978
|
Accrued interest receivable
|
4,278,229
|
3,686,161
|
3,704,287
|
3,655,444
|
3,814,546
|
Deferred income taxes
|
17,248,375
|
13,600,152
|
12,666,462
|
12,828,069
|
13,820,679
|
Current income taxes receivable
|
-
|
-
|
-
|
-
|
-
|
Bank owned life insurance
|
37,557,566
|
37,321,217
|
37,081,638
|
36,843,873
|
36,606,105
|
Other real estate owned
|
2,746,000
|
1,934,720
|
2,443,543
|
2,698,344
|
2,472,044
|
Goodwill
|
9,786,357
|
9,786,357
|
9,786,357
|
9,786,357
|
9,786,357
|
Core deposit intangible
|
3,520,421
|
3,721,858
|
3,923,987
|
4,124,985
|
4,351,226
|
Other assets
|
4,986,685
|
5,299,676
|
4,482,981
|
5,062,691
|
4,567,038
|
Total assets
|
$1,716,689,655
|
$1,650,105,142
|
$1,590,030,911
|
$1,523,016,267
|
$1,510,088,889
|
|
|
|
|
|
|
Deposits
|
|
|
|
|
|
Non-interest bearing
|
$331,331,263
|
$328,967,215
|
$313,439,435
|
$328,797,753
|
$328,549,405
|
Interest bearing
|
994,549,269
|
972,325,625
|
949,451,184
|
904,751,898
|
907,330,561
|
Total deposits
|
1,325,880,532
|
1,301,292,840
|
1,262,890,619
|
1,233,549,651
|
1,235,879,966
|
Short term borrowings
|
183,433,892
|
141,775,684
|
153,751,725
|
118,571,030
|
107,557,246
|
Long term borrowings
|
37,842,567
|
37,776,841
|
9,559,018
|
9,561,842
|
9,593,318
|
Accrued interest payable
|
1,269,356
|
712,080
|
448,406
|
448,677
|
416,686
|
Supplemental executive retirement plan
|
5,613,799
|
5,547,176
|
5,479,842
|
5,405,763
|
5,336,509
|
Income taxes payable
|
7,688,731
|
6,677,102
|
5,418,623
|
4,721,336
|
3,615,677
|
Other liabilities
|
4,293,993
|
4,466,051
|
3,275,804
|
4,473,968
|
3,700,598
|
Total liabilities
|
1,566,022,870
|
1,498,247,774
|
1,440,824,037
|
1,376,732,267
|
1,366,100,000
|
|
|
|
|
|
|
Stockholders' equity
|
|
|
|
|
|
Common stock
|
109,109
|
108,591
|
108,164
|
108,026
|
108,026
|
Additional paid-in capital
|
106,692,958
|
106,000,537
|
105,555,548
|
105,408,038
|
105,293,606
|
Retained earnings
|
48,842,026
|
45,166,362
|
42,275,517
|
39,793,541
|
38,290,876
|
Accumulated other comprehensive income (loss)
|
(4,977,308)
|
581,878
|
1,009,402
|
717,881
|
38,200
|
Total Old Line Bancshares, Inc.
stockholders' equity
|
150,666,785
|
151,857,368
|
148,948,631
|
146,027,486
|
143,730,708
|
Non-controlling interest
|
-
|
-
|
258,243
|
256,514
|
258,181
|
Total stockholders' equity
|
150,666,785
|
151,857,368
|
149,206,874
|
146,284,000
|
143,988,889
|
Total liabilities and
stockholders' equity
|
$1,716,689,655
|
$1,650,105,142
|
$1,590,030,911
|
$1,523,016,267
|
$1,510,088,889
|
Shares of basic common stock outstanding
|
10,910,915
|
10,859,074
|
10,816,429
|
10,802,560
|
10,802,560
|
|
|
|
|
|
|
(1) Financial information at December 31, 2015 has been derived
from audited financial statements.
|
|
|
|
|
|
Old Line Bancshares, Inc. & Subsidiaries
|
|||||||
Consolidated Statements of Income
|
|||||||
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|
|
|
|
|
|
|
|
Three Months
Ended
December
|
Three Months
Ended
September 30,
|
Three Months
Ended
June 30,
|
Three Months
Ended
March 31,
|
Three Months
Ended
December 31,
|
Twelve Months
Ended
December 31,
|
Twelve Months
Ended
December 31,
|
|
2016
|
2016
|
2016
|
2016
|
2015
|
2016
|
2015
|
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(1)
|
Interest income
|
|
|
|
|
|
|
|
Loans, including fees
|
$15,219,684
|
$14,191,639
|
$13,562,643
|
$13,057,180
|
$12,646,217
|
$56,031,146
|
$47,948,411
|
Investment securities and other
|
1,134,253
|
1,146,898
|
1,051,097
|
1,101,146
|
977,533
|
4,433,394
|
3,504,383
|
Total interest income
|
16,353,937
|
15,338,537
|
14,613,740
|
14,158,326
|
13,623,750
|
60,464,540
|
51,452,794
|
Interest expense
|
|
|
|
|
|
|
|
Deposits
|
1,507,180
|
1,421,842
|
1,309,379
|
1,270,432
|
1,196,381
|
$5,508,833
|
4,246,990
|
Borrowed funds
|
834,298
|
577,709
|
328,613
|
275,659
|
181,876
|
2,016,279
|
617,308
|
Total interest expense
|
2,341,478
|
1,999,551
|
1,637,992
|
1,546,091
|
1,378,257
|
7,525,112
|
4,864,298
|
Net interest income
|
14,012,459
|
13,338,986
|
12,975,748
|
12,612,235
|
12,245,493
|
52,939,428
|
46,588,496
|
Provision for loan losses
|
200,000
|
305,931
|
300,000
|
778,611
|
400,000
|
1,584,542
|
1,310,984
|
Net interest income after
provision for loan losses
|
13,812,459
|
13,033,055
|
12,675,748
|
11,833,624
|
11,845,493
|
51,354,886
|
45,277,512
|
Non-interest income
|
|
|
|
|
|
|
|
Service charges on
deposit accounts
|
437,900
|
445,901
|
433,498
|
411,337
|
430,964
|
1,728,636
|
1,729,773
|
Gain on sales or calls
of investment securities
|
1,682
|
326,021
|
823,214
|
76,998
|
-
|
1,227,915
|
65,222
|
Gain on sale of stock
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Earnings on bank owned
life insurance
|
282,875
|
284,982
|
282,358
|
282,186
|
260,898
|
1,132,401
|
1,009,653
|
Gains (losses) on disposal of assets
|
(3)
|
(49,957)
|
22,784
|
-
|
(5,847)
|
(27,176)
|
14,128
|
Gain on sale of loans
|
570,970
|
782,510
|
587,030
|
377,138
|
474,941
|
2,317,648
|
2,019,403
|
Other fees and commissions
|
277,428
|
348,391
|
414,800
|
835,994
|
432,810
|
1,876,613
|
2,006,816
|
Total non-interest income
|
1,570,852
|
2,137,848
|
2,563,684
|
1,983,653
|
1,593,766
|
8,256,037
|
6,844,995
|
Non-interest expense
|
|
|
|
|
|
|
|
Salaries & employee benefits
|
4,319,736
|
4,812,949
|
5,079,143
|
5,376,552
|
4,319,029
|
19,588,380
|
17,237,223
|
Severance expense
|
-
|
49,762
|
393,495
|
-
|
-
|
443,257
|
-
|
Occupancy & Equipment
|
1,509,077
|
1,907,090
|
1,647,490
|
1,724,553
|
1,487,028
|
6,788,210
|
5,775,878
|
Pension plan termination
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Data processing
|
384,000
|
384,382
|
383,689
|
397,792
|
361,991
|
1,549,863
|
1,432,182
|
Merger and integration
|
-
|
-
|
301,538
|
359,481
|
1,420,570
|
661,019
|
1,420,570
|
Core deposit amortization
|
201,437
|
202,129
|
200,998
|
226,241
|
194,507
|
830,805
|
792,350
|
(Gains) losses on sales of
other real estate owned
|
2,278
|
(27,914)
|
(48,099)
|
(4,208)
|
20,502
|
(77,943)
|
49,716
|
OREO expense
|
23,116
|
77,224
|
63,192
|
154,966
|
75,824
|
318,498
|
430,560
|
Other operating
|
2,228,915
|
2,391,728
|
2,531,292
|
2,389,142
|
2,270,861
|
9,541,077
|
9,137,204
|
Total non-interest expense
|
8,668,559
|
9,797,350
|
10,552,738
|
10,624,519
|
10,150,312
|
39,643,166
|
36,275,683
|
|
|
|
|
|
|
|
|
Income before income taxes
|
6,714,752
|
5,373,553
|
4,686,694
|
3,192,758
|
3,288,947
|
19,967,757
|
15,846,824
|
Income tax expense
|
2,384,312
|
1,830,921
|
1,554,000
|
1,043,366
|
1,286,496
|
6,812,599
|
5,382,390
|
Net income
|
4,330,440
|
3,542,632
|
3,132,694
|
2,149,392
|
2,002,451
|
13,155,158
|
10,464,434
|
Less: Net income (loss)
attributable to the
noncontrolling interest
|
-
|
-
|
1,728
|
(1,667)
|
898
|
61
|
(4,152)
|
Net income available to
common stockholders
|
$4,330,440
|
$3,542,632
|
$3,130,966
|
$2,151,059
|
$2,001,553
|
$13,155,097
|
$10,468,586
|
Earnings per basic share
|
$0.40
|
$0.33
|
$0.29
|
$0.20
|
$0.19
|
$1.21
|
$0.98
|
Earnings per diluted share
|
$0.39
|
$0.32
|
$0.28
|
$0.20
|
$0.19
|
$1.20
|
$0.97
|
Dividend per common share
|
$0.06
|
$0.06
|
$0.06
|
$0.06
|
$0.06
|
$0.24
|
$0.21
|
Average number of basic shares
|
10,878,153
|
10,848,418
|
10,816,429
|
10,802,560
|
10,604,667
|
10,837,939
|
10,647,986
|
Average number of dilutive shares
|
11,054,979
|
11,033,655
|
10,989,854
|
10,962,867
|
10,760,832
|
10,997,485
|
10,784,323
|
Return on Average Assets
|
1.03%
|
0.88%
|
0.81%
|
0.57%
|
0.56%
|
0.83%
|
0.79%
|
Return on Average Equity
|
10.93%
|
9.39%
|
8.63%
|
6.01%
|
5.60%
|
8.83%
|
7.54%
|
Operating Efficiency (2)
|
55.63%
|
63.30%
|
67.91%
|
72.79%
|
73.34%
|
64.78%
|
67.89%
|
|
|
|
|
|
|
|
|
(1) Financial information at December 31, 2015 has been derived
from audited financial statements.
|
|||||||
(2) Operating efficiency is derived by dividing non-interest
expense by the total of net interest income and non-interest
income.
|
Old Line Bancshares, Inc. & Subsidiaries
|
||||||||||||
Average Balances, Interest and Yields
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2016-12-31
|
|
2016-9-30
|
|
2016-6-30
|
|
2016-3-31
|
|
2015-12-31
|
|
|
|
|
Average
Balance
|
Yield/ Rate
|
Average
Balance
|
Yield/ Rate
|
Average
Balance
|
Yield/ Rate
|
Average
Balance
|
Yield/ Rate
|
Average
Balance
|
|
Yield/ Rate
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Int. Bearing Deposits
|
|
$1,480,748
|
0.52%
|
$1,504,448
|
0.47%
|
$1,848,237
|
0.47%
|
$2,538,719
|
0.47%
|
$2,163,496
|
|
0.26%
|
Investment
Securities (2)
|
|
212,267,718
|
2.44%
|
202,986,618
|
2.72%
|
192,652,161
|
2.67%
|
197,036,394
|
2.71%
|
182,660,126
|
|
2.65%
|
Loans
|
|
1,330,488,055
|
4.62%
|
1,271,170,965
|
4.50%
|
1,214,193,241
|
4.57%
|
1,172,758,851
|
4.56%
|
1,087,653,696
|
|
4.70%
|
Allowance for Loan Losses
|
|
(6,420,517)
|
|
(6,145,988)
|
|
(5,844,078)
|
|
(5,050,728)
|
|
(3,505,864)
|
|
|
Total Loans
Net of allowance
|
|
1,324,067,538
|
4.64%
|
1,265,024,977
|
4.52%
|
1,208,349,163
|
4.59%
|
1,167,708,123
|
4.58%
|
1,084,147,832
|
|
4.71%
|
Total interest-earning assets
|
|
1,537,816,004
|
4.36%
|
1,469,516,043
|
4.27%
|
1,402,849,561
|
4.32%
|
1,367,283,236
|
4.30%
|
1,268,971,454
|
|
4.41%
|
Noninterest bearing cash
|
|
27,124,238
|
|
28,168,294
|
|
43,063,212
|
|
43,812,578
|
|
42,032,492
|
|
|
Goodwill and Intangibles
|
|
13,438,139
|
|
13,639,968
|
|
13,841,392
|
|
14,055,039
|
|
11,213,710
|
|
|
Other Assets
|
|
98,599,277
|
|
94,685,204
|
|
96,131,050
|
|
96,475,402
|
|
92,615,684
|
|
|
Total Assets
|
|
$1,676,977,658
|
|
$1,606,009,509
|
|
$1,555,885,215
|
|
$1,521,626,255
|
|
$1,414,833,340
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing Deposits
|
|
$976,900,133
|
0.61%
|
$962,097,781
|
0.59%
|
$916,951,641
|
0.57%
|
$908,510,119
|
0.56%
|
$841,394,142
|
|
0.56%
|
Borrowed Funds
|
|
195,628,913
|
1.70%
|
152,091,696
|
1.51%
|
165,943,308
|
0.80%
|
129,440,961
|
0.86%
|
128,656,699
|
|
0.56%
|
Total interest-bearing
liabilities
|
|
1,172,529,046
|
0.79%
|
1,114,189,477
|
0.71%
|
1,082,894,949
|
0.61%
|
1,037,951,080
|
0.60%
|
970,050,841
|
|
0.56%
|
Noninterest bearing deposits
|
|
331,686,582
|
|
326,480,191
|
|
313,709,097
|
|
326,249,639
|
|
293,242,708
|
|
|
|
|
1,504,215,628
|
|
1,440,669,668
|
|
1,396,604,046
|
|
1,364,200,719
|
|
1,263,293,549
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Liabilities
|
|
17,590,193
|
|
15,260,196
|
|
13,171,739
|
|
13,130,368
|
|
9,526,486
|
|
|
Noncontrolling Interest
|
|
-
|
|
-
|
|
257,582
|
|
256,330
|
|
256,218
|
|
|
Stockholder's Equity
|
|
155,171,837
|
|
150,079,645
|
|
145,851,848
|
|
144,038,838
|
|
141,757,087
|
|
|
Total Liabilities and
Stockholder's Equity
|
|
$1,676,977,658
|
|
$1,606,009,509
|
|
$1,555,885,215
|
|
$1,521,626,255
|
|
$1,414,833,340
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest spread
|
|
|
3.56%
|
|
3.56%
|
|
3.71%
|
|
3.70%
|
|
|
3.85%
|
Net interest income and
Net interest
margin(1)
|
|
$14,497,216
|
3.75%
|
$13,814,036
|
3.73%
|
$13,424,559
|
3.85%
|
$13,077,828
|
3.85%
|
$12,731,170
|
|
3.98%
|
(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.
(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 December
31, 2016 and 2015. Fair value accretion for the current quarter and
prior four quarters are as follows:
|
2016-12-3
|
|
2016-9-30 |
|
2016-6-30
|
|
2016-3-31
|
2015-12-31
|
||||||||||||||||||
|
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)
|
$(3,913)
|
|
(0.00)
|
%
|
$12,442
|
|
0.00
|
%
|
$(479)
|
|
(0.00)
|
%
|
$27,404
|
|
0.01
|
%
|
$(2,772)
|
|
(0.00)
|
%
|
||||||
Mortgage loans
|
473,922
|
|
0.12
|
|
67,300
|
|
0.02
|
|
127,100
|
|
0.04
|
|
179,550
|
|
0.05
|
|
399,729
|
|
0.13
|
|
||||||
Consumer loans
|
71,118
|
|
0.02
|
|
12,947
|
|
0.00
|
|
10,963
|
|
0.00
|
|
11,553
|
|
0.00
|
|
3,486
|
|
0.00
|
|
||||||
Interest bearing deposits
|
45,705
|
|
0.01
|
|
52,728
|
|
0.01
|
|
68,569
|
|
0.02
|
|
92,833
|
|
0.03
|
|
38,091
|
|
0.01
|
|
||||||
Total Fair Value Accretion
|
$586,832
|
|
0.15
|
%
|
$145,417
|
|
0.03
|
%
|
$206,153
|
-
|
0.06
|
%
|
$311,340
|
-
|
0.08
|
%
|
$438,534
|
-
|
0.14
|
%
|
(1)
Negative accretion on commercial 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:
|
2016-12-31
|
|
2016-9-30
|
2016-6-30 |
|
2016-3-31
|
|
2015-12-31
|
|
||||||||||||||||||||||||
|
Net Interest
Income
|
|
Yield
|
|
Net Interest
Income
|
|
Yield
|
|
Net Interest
Income
|
|
Yield
|
|
Net Interest
Income
|
|
Yield
|
|
Net Interest
Income
|
|
Yield
|
|
|||||||||||||
GAAP net interest income
|
$14,012,459
|
|
3.62
|
%
|
$13,338,986
|
|
3.61
|
%
|
$12,975,748
|
|
3.72
|
%
|
$12,612,246
|
|
3.71
|
%
|
$12,245,493
|
|
3.83
|
%
|
|||||||||||||
Tax equivalent adjustment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Federal funds sold
|
4
|
|
0.00
|
|
4
|
|
0.00
|
|
3
|
|
0.00
|
|
5
|
|
0.00
|
|
-
|
|
-
|
|
|||||||||||||
Investment securities
|
253,166
|
|
0.07
|
|
243,510
|
|
0.06
|
|
228,532
|
|
0.07
|
|
226,861
|
|
0.07
|
|
243,378
|
|
0.08
|
|
|||||||||||||
Loans
|
231,587
|
|
0.06
|
|
231,536
|
|
0.06
|
|
220,276
|
|
0.06
|
|
238,716
|
|
0.07
|
|
242,299
|
|
0.07
|
|
|||||||||||||
Total tax equivalent adjustment
|
484,757
|
|
0.13
|
|
475,050
|
|
0.12
|
|
448,811
|
|
0.13
|
|
465,582
|
|
0.14
|
|
485,677
|
|
0.15
|
|
|||||||||||||
Tax equivalent interest yield
|
$14,497,216
|
|
3.75
|
%
|
$13,814,036
|
|
3.73
|
%
|
$13,424,559
|
|
3.85
|
%
|
$13,077,828
|
|
3.85
|
%
|
$12,731,170
|
|
3.98
|
%
|
Old Line Bancshares, Inc. & Subsidiaries
|
|||||
Selected Loan Information
|
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(Dollars in thousands)
|
|||||
|
December 31,
2016
|
September 30,
2016
|
June 30,
2016
|
March 31,
2016
|
December 31,
2015
|
|
|
|
|
|
|
Legacy Loans(1)
|
|
|
|
|
|
Period End Loan Balance
|
$1,177,232
|
$1,093,436
|
$1,027,579
|
$946,803
|
$913,609
|
Deferred Costs
|
1,257
|
1,222
|
1,227
|
1,168
|
1,274
|
Accruing
|
1,167,381
|
1,084,851
|
1,021,867
|
951,197
|
907,915
|
Non-accrual
|
6,090
|
5,803
|
5,712
|
4,292
|
4,420
|
Accruing 30-89 days past due
|
3,742
|
2,524
|
2,479
|
4,529
|
994
|
Accruing 90 or more days past due
|
19
|
259
|
-
|
-
|
-
|
Allowance for loan losses
|
6,084
|
5,967
|
5,703
|
5,401
|
4,821
|
Other real estate owned
|
425
|
425
|
425
|
425
|
425
|
Net charge offs (recoveries)
|
-
|
(3)
|
(4)
|
15
|
(18)
|
|
|
|
|
|
|
Acquired Loans(2)
|
|
|
|
|
|
Period End Loan Balance
|
$188,881
|
$204,126
|
$219,231
|
$229,026
|
$237,061
|
Deferred Costs
|
-
|
-
|
-
|
-
|
-
|
Accruing
|
185,631
|
200,412
|
216,971
|
225,957
|
235,816
|
Non-accrual(3)
|
294
|
1,545
|
2,260
|
3,069
|
1,245
|
Accruing 30-89 days past due
|
2,072
|
1,284
|
2,203
|
2,127
|
6,132
|
Accruing 90 or more days past due
|
884
|
885
|
-
|
902
|
1
|
Allowance for loan losses
|
111
|
385
|
316
|
305
|
89
|
Otther real estate owned
|
2,321
|
1,510
|
2,019
|
2,273
|
2,047
|
Net charge offs (recoveries)
|
357
|
(25)
|
(9)
|
2
|
(39)
|
|
|
|
|
|
|
Allowance for loan losses as % of held for investment
loans
|
0.45%
|
0.49%
|
0.48%
|
0.48%
|
0.43%
|
Allowance for loan losses as % of legacy held for investment
loans
|
0.52%
|
0.55%
|
0.55%
|
0.57%
|
0.53%
|
Allowance for loan losses as % of acquired held for investment
loans
|
0.06%
|
0.19%
|
0.14%
|
0.13%
|
0.04%
|
Total non-performing loans as a % of held for investment
loans
|
0.53%
|
0.65%
|
0.83%
|
0.85%
|
0.71%
|
Total non-performing assets as a % of total assets
|
0.58%
|
0.63%
|
0.71%
|
0.78%
|
0.60%
|
(1)
Legacy loans
represent total loans excluding loans acquired on April 1, 2011,
May 10, 2013 and December 4, 2015.
(2)
Acquired loans
represent all loans acquired on April 1, 2011 from MB&T on May
10, 2013 from WSB and on December 4, 2015 for Regal. We originally
recorded these loans at fair value upon acquisition.
(3)
These loans are
loans that are considered non-accrual because they are not paying
in conformance with the original contractual
agreement.