Attached files
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| 8-K - PRIMARY DOCUMENT - OLD LINE BANCSHARES INC | olbk_currentfolio8k063017.htm |
Exhibit
99.1
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FOR IMMEDIATE
RELEASE
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CONTACT: ELISE
HUBBARD
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July 13,
2017
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CHIEF FINANCIAL
OFFICER
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(301)
430-2560
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OLD LINE BANCSHARES, INC. REPORTS $4.0 MILLION IN NET INCOME
AVAILABLE TO COMMON STOCKHOLDERS WITH SECOND QUARTER 2017 NET
INCOME UP 27% OVER 2016
BOWIE,
MD – Old Line Bancshares, Inc. (“Old Line
Bancshares” or the “Company”) (NASDAQ: OLBK), the
parent company of Old Line Bank, reports net income available to
common stockholders increased $838 thousand, or 26.78%, to $4.0
million for the three months ended June 30, 2017, compared to $3.1
million for the three month period ended June 30, 2016. Earnings
were $0.36 per basic and diluted common share for the three months
ended June 30, 2017, compared to $0.29 per basic and $0.28 per
diluted common share for the three months ended June 30, 2016. The
increase in net income for the second quarter of 2017 as compared
to the same 2016 period is primarily the result of a $1.3 million
increase in net interest income and a decrease of $623 thousand in
non-interest expenses, partially offset by a decrease of $568
thousand in non-interest income.
Net
income available to common stockholders was $7.9 million for the
six months ended June 30, 2017, compared to $5.3 million for the
same period last year, an increase of $2.6 million, or 50.38%.
Earnings were $0.73 per basic and $0.71 per diluted common share
for the six months ended June 30, 2017 compared to $0.49 per basic
and $0.48 per diluted common share for the same period last year.
The increase in net income is primarily the result of an increase
of $2.8 million, or 11.04%, in net interest income and a $1.7
million decrease in non-interest expenses, partially offset by a
decrease of $697 thousand, or 15.33%, in non-interest
income.
Net
interest income increased during each of the three and six months
ended June 30, 2017 compared to the same periods last year
primarily as a result of the increase in interest income and fees
on loans as a result of the increase in net loans held for
investment, partially offset by an increase in interest expense.
Non-interest expense decreased for the three month period primarily
due to the lack of severance and merger and integration expenses
during the 2017 period. Non-interest expense decreased for the six
month period primarily due to the lack of severance and merger and
integration expenses and a reduction in salaries and benefits
associated with the staff reduction and branch closures implemented
in the second and third quarters of 2016. Non-interest income
decreased for each of the three and six month periods compared to
2016 primarily as a result of a decrease in gain on sales and calls
of investment securities, offsetting an increase in income on
marketable loans.
Net
loans held for investment at June 30, 2017 increased $85.4 million,
or 6.27%, compared to December 31, 2016 and $204.6 million, or
16.47%, compared to June 30, 2016. Total assets increased $85.3
million to $1.8 billion at June 30, 2017 from $1.7 billion at
December 31, 2016. Net loans held for investment at June 30, 2017
increased $29.5 million, or 2.08%, compared to March 31, 2017.
Total assets increased $28.5 million remaining at $1.8 billion at
June 30, 2017 compared to March 31, 2017.
James W. Cornelsen,
President and Chief Executive Officer of Old Line Bancshares,
stated: “We are pleased to report strong earnings for the
second quarter and six months ending June 30, 2017. We are
extremely proud of our continued efforts to maintain our percentage
of non-performing assets to total assets, which was 0.27% at June
30, 2017. We are also excited about the potential opportunities
created by the pending combination of Old Line Bancshares and DCB
Bancshares, Inc. (“DCB”), the parent company of
Damascus Community Bank. We have received all the required
regulatory and stockholder approvals for our merger with DCB and we
expect to complete the merger during the third quarter of 2017. The
combination will add talent to our team as well as expand our
market further into Montgomery, Frederick and Carroll Counties.
Additionally, we are delighted to announce our expansion in Prince
George’s County with the June opening of our new branch in
Riverdale, Maryland.”
HIGHLIGHTS:
●
Net loans held for
investment increased $29.5 million, or 2.08%, and $85.4 million, or
6.27%, respectively, during the three and six month periods ended
June 30, 2017, remaining at $1.4 billion at June 30, 2017 and
December 31, 2016. The increase is a result of organic growth
within our market area.
●
Average gross loans
increased $225.6 million, or 18.58%, and $217.8 million, or 18.25%,
respectively, during the three and six month periods ending June
30, 2017, to $1.4 billion during the three and six months ended
June 30, 2017, from $1.2 billion during the three and six months
ended June 30, 2016. The increases during the three and six month
periods this year as compared to the same periods last year are due
to organic growth.
●
Nonperforming
assets decreased to 0.27% of total assets at June 30, 2017 from
0.59% at December 31, 2016.
●
Total assets
increased $85.3 million, or 4.99%, since December 31,
2016.
●
Net income
available to common stockholders increased 26.78% to $4.0 million,
or $0.36 per basic and diluted share, for the three month period
ending June 30, 2017, from $3.1 million, or $0.29 per basic and
$0.28 per diluted share, for the second quarter of 2016. Net income
available to common stockholders increased $2.7 million or 50.38%
to $7.9 million, or $0.73 per basic and $0.71 per diluted share,
for the six month period ending June 30, 2017, from $5.3 million,
or $0.49 per basic and $0.48 per diluted share, for the six months
ending June 30, 2016.
●
The net interest
margin during the three months ended June 30, 2017 was 3.60%
compared to 3.85% for the same period in 2016. Total yield on
interest earning assets decreased to 4.28% for the three months
ending June 30, 2017, compared to 4.32% for the same period last
year. Interest expense as a percentage of total interest-bearing
liabilities was 0.90% for the three months ended June 30, 2017
compared to 0.61% for the same period of 2016.
●
The net interest
margin during the six months ended June 30, 2017 was 3.66% compared
to 3.85% for the same period in 2016. Total yield on interest
earning assets increased to 4.32% for the six months ending June
30, 2017, compared to 4.31% for the same period last year. Interest
expense as a percentage of total interest-bearing liabilities was
0.86% for the six months ended June 30, 2017 compared to 0.60% for
the same period of 2016.
●
The second quarter
Return on Average Assets (“ROAA”) and Return on Average
Equity (“ROAE”) were 0.89% and 9.37%, respectively,
compared to ROAA and ROAE of 0.81% and 8.63%, respectively, for the
second quarter of 2016.
●
ROAA and ROAE were
0.91% and 9.50%, respectively, for the six months ended June 30,
2017, compared to ROAA and ROAE of 0.69% and 7.41%, respectively,
for the six months ending June 30, 2016.
●
Total deposits grew
by $53.5 million, or 4.04%, since December 31, 2016.
●
We ended the second
quarter of 2017 with a book value of $14.70 per common share and a
tangible book value of $13.52 per common share compared to $13.81
and $12.59, respectively, at December 31, 2016.
●
We maintained
appropriate levels of liquidity and by all regulatory measures
remained “well capitalized.”
●
On June 26, 2017,
we opened our new Riverdale Branch, located in Riverdale Park,
Maryland. This location expands our presence in Prince
George’s County.
Total
assets at June 30, 2017 increased $85.3 million from December 31,
2016, primarily due to increases of $85.4 million in loans held for
investment and $3.0 million in cash and cash equivalents, partially
offset by a decrease of $1.8 million in loans held for sale.
Deposits increased $53.5 million during the six months ended June
30, 2017, of which $35.1 million is attributable to an increase in
our non-interest bearing deposits and the remaining $18.4 million
is attributable to an increase in our interest bearing
deposits.
Average interest earning
assets increased $246.0 million for the three month period ending
June 30, 2017 compared to the same period of 2016. The average
yield on such assets was 4.28% for the three months ending June 30,
2017 compared to 4.32% for the comparable 2016 period. The decrease
in the yield on interest earning assets is the result of lower
yields on loans held for investment. Average interest-bearing
liabilities increased $169.2 million for the three month period
ending June 30, 2017 compared to the same period of 2016. The
average rate paid on such liabilities increased to 0.90% for the
three month period ending June 30, 2017 compared to 0.61% for the
same period in 2016, primarily due to higher rates paid on our
borrowings, which includes the interest paid on the subordinated
notes we issued in August 2016.
Average interest earning
assets increased $235.8 million for the six month period ending
June 30, 2017 compared to the same period of 2016. The average
yield on such assets was 4.32% for the six months ending June 30,
2017 compared to 4.31% for the comparable 2016 period. The increase
in the yield on interest earning assets is the result of a higher
yield on our investment portfolio. Average interest-bearing
liabilities increased $176.2 million for the six month period
ending June 30, 2017 compared to the same period of 2016. The
average rate paid on such liabilities increased to 0.86% for the
six month period ending June 30, 2017 compared to 0.60% for the
same period in 2016, primarily due to higher rates paid on our
borrowings, which includes the interest paid on the subordinated
notes we issued in August 2016.
The net interest margin for
the three months ended June 30, 2017 decreased to 3.60% from 3.85%
for the three months ending June 30, 2016. The net interest margin
for the six months ended June 30, 2017 decreased to 3.66% from
3.85% for the six months ending June 30, 2016. The net interest
margin during the 2017 periods was affected by the increase in
interest expense, primarily due to the interest due on the
subordinated notes, for which there was no comparable expense
during the 2016 periods. The net interest margin during 2017 was
also affected by the amount of accretion on acquired loans.
Accretion increased due to a higher amount of early payoffs on
acquired loans with credit marks during the three and six months
ending June 30, 2017 compared to the same periods of 2016. The fair
value accretion/amortization is recorded on pay-downs recognized
during the periods, which contributed to seven and basis points,
respectively, for the three and six months ended June 30, 2017 as
compared to four basis points, respectively, for the same periods
of 2016.
Net interest income increased
$1.3 million, or 9.84%, and $2.8 million, or 11.04%, for the three
and six month periods ending June 30, 2017 compared to the same
periods of 2016, primarily due to increases in the interest
recognized on loans as a result of organic loan growth, partially
offset by increases in interest expense. Interest expense increased
during both periods due to increases in the both the amount of and
interest rate paid on our borrowings, including the subordinated
notes discussed above, and to a lesser extent on our
deposits.
The provision for loan losses
decreased $21 thousand for the three month period ending June 30,
2017 compared to the same period last year due to an improvement in
our non-performing assets. For the six months ending June 30, 2017,
reserves on loans decreased $359 thousand primarily due to one
large commercial borrower, consisting of 23 commercial loans
totaling $3.0 million of which $1.0 million was charged-off against
the allowance for loan losses and $2.0 million was reclassified as
trouble debt restructurings during the first quarter of 2017.
Amounts charged off in relation to these loans during the six month
period were in line with specific reserves at December 31, 2016.
These trouble debt restructurings are classified as impaired and
all our impaired loans have been adequately reserved for at June
30, 2017.
Non-interest income decreased
$568 thousand, or 22.16%, for the three month period ending June
30, 2017 compared to the same period of 2016, primarily as a result
of a decrease of $804 thousand in gain on sales and calls of
investment securities, partially offset by increases of $140
thousand in income on marketable loans and $95 thousand in gain on
sale of loans compared to the same period of 2016. The decrease in gains on sales and calls of
investment securities is the result of our re-positioning our
investment portfolio during the 2016 period, pursuant to which we
sold approximately $74 million of our lowest yielding, longer
duration investments, compared to $15.5 million in sales and calls
for the three months ending June 30, 2017. The increase in income
on marketable 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 2016. The increase in gain on sale of loans
(other than residential mortgage loans held for sale) is due to the
sale of one SBA loan during the 2017 period, whereas we did not
sell any portfolio loans during the 2016
period.
Non-interest income decreased
$697 thousand, or 15.33%, for the six month period ending June 30,
2017 compared to the same period of 2016. The decrease is primarily
a result of decreases of $865 thousand in gain on sales of
investment securities and $410 thousand in other fees and
commissions, partially offset by increases of $393 thousand in
income on marketable loans, $90 thousand in gain on disposal of
assets and $95 thousand in gain on sales of loans compared to the
same period of 2016. The decrease in
gains on sales of investment securities is the result of our
re-positioning our investment portfolio discussed above. The
decrease in other fees and commissions is primarily related to a one-time incentive fee
received for our debit card program received in the first quarter
of last year. The increase in income on marketable 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 2016.
The increase in gain on disposal of assets is due to the sale of
our previously-owned location, the Accokeek branch, which we closed
in the third quarter of 2016. The increase in gain on sales of
loans is the result of the sale of one SBA loan as discussed
above.
Non-interest expense
decreased $623 thousand, or 5.91%, for the three month period
ending June 30, 2017 compared to the same period of 2016, primarily
as a result of decreases in severance and merger and integration
expenses. There were no severance expenses during the 2017 period
compared to $393 thousand of severance expenses during the three
months ended June 30, 2016 associated with strategic staff
reductions. Further, there were no merger and integration expenses
during the 2017 period whereas we incurred $302 thousand of merger
and integration expenses during the second quarter of 2016 in
connection with the Regal Bancorp acquisition that was consummated
in December 2015.
Old Line Bancshares 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,
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 these
non-GAAP financial measures, and 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.
The
statements in this press release that are not historical facts, in
particular, statements regarding the timing of, opportunities to be
created by and the impact on Old Line Bancshares of the pending
merger with DCB, 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:, DCB’s businesses
may not be integrated into ours successfully or such integration
may be more difficult, time-consuming or costly than expected;
expected revenue synergies and cost savings from the merger may not
be fully realized, or realized within the expected timeframe;
revenues following the merger may be lower than expected; customer
and employee relationships and business operations of DCB may be
disrupted by the merger; deterioration in economic conditions in
our target markets or nationally or a return to recessionary
conditions; the actions of our competitors and our ability to
successfully compete, in particular in new market areas; changes in
regulatory requirements and/or restrictive banking legislation that
may adversely affect our ability to collect on outstanding loans or
otherwise negatively impact our business; and other risks discussed
in our annual report on Form 10-K for the year ended December 31,
2016. Forward-looking statements speak only as of the date they are
made. Old Line Bancshares undertakes no obligation to 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 with the U.S. Securities and Exchange Commission
available at www.sec.gov.
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Old Line Bancshares, Inc. & Subsidiaries
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Consolidated Balance Sheets
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June 30,
2017
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March 31,
2017
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December 31,
2016 (1)
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September 30,
2016
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June 30,
2016
|
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(Unaudited)
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(Unaudited)
|
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(Unaudited)
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(Unaudited)
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Cash and due from banks
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$25,025,269
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$27,168,603
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$22,062,912
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$28,696,913
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$32,123,006
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Interest bearing accounts
|
1,136,343
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1,144,100
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1,151,917
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1,159,687
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1,167,418
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Federal funds sold
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302,970
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237,294
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248,342
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301,262
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352,572
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Total cash and cash equivalents
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26,464,582
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28,549,997
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23,463,171
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30,157,862
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33,642,996
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Investment securities available for sale
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198,372,453
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199,741,104
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199,505,204
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201,830,885
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190,297,596
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Loans held for sale
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6,615,208
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3,504,268
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8,418,435
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7,578,285
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6,111,808
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Loans held for invesment, less allowance for loan losses of
$5,911,842
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and $6,195,469 for June 30, 2017 and December 31,
2016
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1,446,573,249
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1,417,086,149
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1,361,175,206
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1,292,431,559
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1,242,017,598
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Equity securities at cost
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9,972,744
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9,335,247
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8,303,347
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6,603,346
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7,304,646
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Premises and equipment
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36,999,988
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36,898,159
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35,700,659
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36,153,064
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36,567,012
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Accrued interest receivable
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4,144,803
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4,044,270
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4,278,229
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3,686,161
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3,704,287
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Deferred income taxes
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7,323,124
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8,897,842
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9,578,350
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13,600,152
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12,666,462
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Current income taxes receivable
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-
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-
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-
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-
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-
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Bank owned life insurance
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38,025,982
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37,791,491
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37,557,566
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37,321,217
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37,081,638
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Other real estate owned
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2,895,893
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2,895,893
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2,746,000
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1,934,720
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2,443,543
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Goodwill
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9,786,357
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9,786,357
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9,786,357
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9,786,357
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9,786,357
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Core deposit intangible
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3,141,162
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3,322,519
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3,520,421
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3,721,858
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3,923,987
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Other assets
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4,001,391
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3,933,804
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4,986,685
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5,299,676
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4,482,981
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Total assets
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$1,794,316,936
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$1,765,787,100
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$1,709,019,630
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$1,650,105,142
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$1,590,030,911
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Deposits
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Non-interest bearing
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$366,468,569
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$352,742,300
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$331,331,263
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$328,967,215
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$313,439,435
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Interest bearing
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1,012,960,448
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1,016,136,456
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994,549,269
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972,325,625
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949,451,184
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Total deposits
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1,379,429,017
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1,368,878,756
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1,325,880,532
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1,301,292,840
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1,262,890,619
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Short term borrowings
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203,781,308
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191,395,616
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183,433,892
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141,775,684
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153,751,725
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Long term borrowings
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37,974,308
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37,908,290
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37,842,567
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37,776,841
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9,559,018
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Accrued interest payable
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1,340,591
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782,212
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1,269,356
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712,080
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448,406
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Supplemental executive retirement plan
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5,753,527
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5,683,663
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5,613,799
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5,547,176
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5,479,842
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Income taxes payable
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1,357,159
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2,061,127
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18,706
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6,677,102
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5,418,623
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Other liabilities
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3,633,602
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3,960,898
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4,293,993
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4,466,051
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3,275,804
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Total liabilities
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1,633,269,512
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1,610,670,562
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1,558,352,845
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1,498,247,774
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1,440,824,037
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Stockholders' equity
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Common stock
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109,561
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109,438
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109,109
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108,591
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108,164
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Additional paid-in capital
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107,333,216
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106,956,124
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106,692,958
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106,000,537
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105,555,548
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Retained earnings
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55,032,717
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51,940,050
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48,842,026
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45,166,362
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42,275,517
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Accumulated other comprehensive income (loss)
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(1,428,070)
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(3,889,074)
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(4,977,308)
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581,878
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1,009,402
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Total Old Line Bancshares, Inc.
stockholders' equity
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161,047,424
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155,116,538
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150,666,785
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151,857,368
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148,948,631
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Non-controlling interest
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-
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-
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-
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-
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258,243
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Total stockholders' equity
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161,047,424
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155,116,538
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150,666,785
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151,857,368
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149,206,874
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Total liabilities and
stockholders' equity
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$1,794,316,936
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$1,765,787,100
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$1,709,019,630
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$1,650,105,142
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$1,590,030,911
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Shares of basic common stock outstanding
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10,956,130
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10,943,830
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10,910,915
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10,859,074
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10,816,429
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(1) Financial information at December 31, 2016 has been derived
from audited financial statements.
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Old Line Bancshares, Inc. & Subsidiaries
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Consolidated Statements of Income
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Three Months
Ended
June 30,
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Three Months
Ended
March 31,
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Three Months
Ended
December 31,
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Three Months
Ended
September 30,
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Three Months
Ended
June 30,
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Six Months
Ended
June 30,
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Six Months
Ended
June 30,
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2017
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2017
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2016 (1)
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2016
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2016
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2017
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2016
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(Unaudited)
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(Unaudited)
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(Unaudited)
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(Unaudited)
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(Unaudited)
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(Unaudited)
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|
Interest income
|
|
|
|
|
|
|
|
|
Loans, including fees
|
$15,765,250
|
$15,365,654
|
$15,219,684
|
$14,191,639
|
$13,562,643
|
$31,130,904
|
$26,619,823
|
|
Investment securities and other
|
1,288,521
|
1,269,680
|
1,134,253
|
1,146,898
|
1,051,097
|
2,558,201
|
2,152,243
|
|
Total interest income
|
17,053,771
|
16,635,334
|
16,353,937
|
15,338,537
|
14,613,740
|
33,689,105
|
28,772,066
|
|
Interest expense
|
|
|
|
|
|
|
|
|
Deposits
|
1,706,993
|
1,541,058
|
1,507,180
|
1,421,842
|
1,309,379
|
3,248,051
|
2,579,811
|
|
Borrowed funds
|
1,094,133
|
932,887
|
834,298
|
577,709
|
328,613
|
2,027,020
|
604,272
|
|
Total interest expense
|
2,801,126
|
2,473,945
|
2,341,478
|
1,999,551
|
1,637,992
|
5,275,071
|
3,184,083
|
|
Net interest income
|
14,252,645
|
14,161,389
|
14,012,459
|
13,338,986
|
12,975,748
|
28,414,034
|
25,587,983
|
|
Provision for loan losses
|
278,916
|
440,491
|
200,000
|
305,931
|
300,000
|
719,407
|
1,078,611
|
|
Net interest income after
provision for loan losses
|
13,973,729
|
13,720,898
|
13,812,459
|
13,033,055
|
12,675,748
|
27,694,627
|
24,509,372
|
|
Non-interest income
|
|
|
|
|
|
|
|
|
Service charges on
deposit accounts
|
434,272
|
412,159
|
437,900
|
445,901
|
433,498
|
846,431
|
844,835
|
|
Gain on sales or calls
of investment securities
|
19,581
|
15,677
|
1,682
|
326,021
|
823,214
|
35,258
|
900,212
|
|
Gain on sale of stock
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Earnings on bank owned
life insurance
|
282,100
|
281,356
|
282,875
|
284,982
|
282,358
|
563,456
|
564,544
|
|
Gains (losses) on disposal of assets
|
-
|
112,594
|
(3)
|
(49,957)
|
22,784
|
112,594
|
22,784
|
|
Gain on sale of loans
|
94,714
|
-
|
-
|
-
|
-
|
94,714
|
-
|
|
Income on marketable loans
|
726,647
|
630,930
|
570,970
|
782,510
|
587,030
|
1,357,577
|
964,168
|
|
Other fees and commissions
|
438,305
|
402,018
|
277,428
|
348,391
|
414,800
|
840,323
|
1,250,794
|
|
Total non-interest income
|
1,995,619
|
1,854,734
|
1,570,852
|
2,137,848
|
2,563,684
|
3,850,353
|
4,547,337
|
|
Non-interest expense
|
|
|
|
|
|
|
|
|
Salaries & employee benefits
|
5,050,635
|
4,867,531
|
4,319,736
|
4,812,949
|
5,079,143
|
9,918,166
|
10,455,695
|
|
Severance expense
|
-
|
-
|
-
|
49,762
|
393,495
|
-
|
393,495
|
|
Occupancy & Equipment
|
1,655,270
|
1,653,413
|
1,509,077
|
1,907,090
|
1,647,490
|
3,308,683
|
3,372,043
|
|
Pension plan termination
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Data processing
|
361,546
|
356,648
|
384,000
|
384,382
|
383,689
|
718,194
|
781,481
|
|
Merger and integration
|
-
|
-
|
-
|
-
|
301,538
|
-
|
661,019
|
|
Core deposit amortization
|
181,357
|
197,901
|
201,437
|
202,129
|
200,998
|
379,258
|
427,239
|
|
(Gains) losses on sales of
other real estate owned
|
-
|
(17,689)
|
2,278
|
(27,914)
|
(48,099)
|
(17,689)
|
(52,307)
|
|
OREO expense
|
27,634
|
27,577
|
23,116
|
77,224
|
63,192
|
55,211
|
218,158
|
|
Other operating
|
2,653,009
|
2,446,749
|
2,228,915
|
2,391,728
|
2,531,292
|
5,099,758
|
4,920,434
|
|
Total non-interest expense
|
9,929,451
|
9,532,130
|
8,668,559
|
9,797,350
|
10,552,738
|
19,461,581
|
21,177,257
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
6,039,897
|
6,043,502
|
6,714,752
|
5,373,553
|
4,686,694
|
12,083,399
|
7,879,452
|
|
Income tax expense
|
2,070,488
|
2,069,720
|
2,384,312
|
1,830,921
|
1,554,000
|
4,140,208
|
2,597,366
|
|
Net income
|
3,969,409
|
3,973,782
|
4,330,440
|
3,542,632
|
3,132,694
|
7,943,191
|
5,282,086
|
|
Less: Net income (loss)
attributable to the
noncontrolling interest
|
-
|
-
|
-
|
-
|
1,728
|
-
|
61
|
|
Net income available to
common stockholders
|
$3,969,409
|
$3,973,782
|
$4,330,440
|
$3,542,632
|
$3,130,966
|
$7,943,191
|
$5,282,025
|
|
Earnings per basic share
|
$0.36
|
$0.36
|
$0.40
|
$0.33
|
$0.29
|
$0.73
|
$0.49
|
|
Earnings per diluted share
|
$0.36
|
$0.36
|
$0.39
|
$0.32
|
$0.28
|
$0.71
|
$0.48
|
|
Dividend per common share
|
$0.08
|
$0.08
|
$0.06
|
$0.06
|
$0.06
|
$0.06
|
$0.12
|
|
Average number of basic shares
|
10,951,464
|
10,926,181
|
10,878,153
|
10,848,418
|
10,816,429
|
10,938,892
|
10,812,314
|
|
Average number of dilutive shares
|
11,165,814
|
11,139,802
|
11,054,979
|
11,033,655
|
10,989,854
|
11,152,901
|
10,980,534
|
|
Return on Average Assets
|
0.89%
|
0.93%
|
1.03%
|
0.88%
|
0.81%
|
0.91%
|
0.69%
|
|
Return on Average Equity
|
9.37%
|
9.63%
|
10.93%
|
9.39%
|
8.63%
|
9.50%
|
7.41%
|
|
Operating Efficiency (2)
|
61.11%
|
59.52%
|
55.63%
|
63.30%
|
67.91%
|
60.32%
|
70.27%
|
|
|
|
|
|
|
|
|
|
|
(1) Financial information at December 31, 2016 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
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6/30/2017
|
|
3/31/2017
|
|
12/31/2016
|
|
9/30/2016
|
|
6/30/2016
|
|
|
|
|
Average
Balance
|
Yield/ Rate
|
Average
Balance
|
Yield/ Rate
|
Average
Balance
|
Yield/ Rate
|
Average
Balance
|
Yield/ Rate
|
Average
Balance
|
Yield/ Rate
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Int. Bearing Deposits
|
|
$1,474,693
|
1.19%
|
$1,398,540
|
1.01%
|
$1,480,748
|
0.52%
|
$1,504,448
|
0.47%
|
$1,848,237
|
0.47%
|
|
Investment
Securities (2)
|
|
213,284,562
|
2.88%
|
215,900,619
|
2.86%
|
212,267,718
|
2.44%
|
202,986,618
|
2.72%
|
192,652,161
|
2.67%
|
|
Loans
|
|
1,439,841,120
|
4.47%
|
1,382,343,824
|
4.58%
|
1,330,488,055
|
4.62%
|
1,271,170,965
|
4.50%
|
1,214,193,241
|
4.57%
|
|
Allowance for Loan Losses
|
|
(5,780,277)
|
|
(6,132,653)
|
|
(6,420,517)
|
|
(6,145,988)
|
|
(5,844,078)
|
|
|
Total Loans
Net of allowance
|
|
1,434,060,843
|
4.49%
|
1,376,211,171
|
4.61%
|
1,324,067,538
|
4.64%
|
1,265,024,977
|
4.52%
|
1,208,349,163
|
4.59%
|
|
Total interest-earning assets
|
|
1,648,820,098
|
4.28%
|
1,593,510,330
|
4.37%
|
1,537,816,004
|
4.36%
|
1,469,516,043
|
4.27%
|
1,402,849,561
|
4.32%
|
|
Noninterest bearing cash
|
|
29,113,718
|
|
28,795,542
|
|
27,124,238
|
|
28,168,294
|
|
43,063,212
|
|
|
Goodwill and Intangibles
|
|
37,054,746
|
|
35,256,270
|
|
13,438,139
|
|
13,639,968
|
|
13,841,392
|
|
|
Other Assets
|
|
75,941,367
|
|
78,339,425
|
|
98,599,277
|
|
94,685,204
|
|
96,131,050
|
|
|
Total Assets
|
|
$1,790,929,929
|
|
$1,735,901,567
|
|
$1,676,977,658
|
|
$1,606,009,509
|
|
$1,555,885,215
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing Deposits
|
|
$1,010,826,579
|
0.68%
|
$988,719,394
|
0.63%
|
$976,900,133
|
0.61%
|
$962,097,781
|
0.59%
|
$916,951,641
|
0.57%
|
|
Borrowed Funds
|
|
241,256,198
|
1.82%
|
232,287,588
|
1.63%
|
195,628,913
|
1.70%
|
152,091,696
|
1.51%
|
165,943,308
|
0.80%
|
|
Total interest-bearing
liabilities
|
|
1,252,082,777
|
0.90%
|
1,221,006,982
|
0.82%
|
1,172,529,046
|
0.79%
|
1,114,189,477
|
0.71%
|
1,082,894,949
|
0.61%
|
|
Noninterest bearing deposits
|
|
357,709,853
|
|
336,645,712
|
|
331,686,582
|
|
326,480,191
|
|
313,709,097
|
|
|
|
|
1,609,792,630
|
|
1,557,652,694
|
|
1,504,215,628
|
|
1,440,669,668
|
|
1,396,604,046
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Liabilities
|
|
11,261,452
|
|
10,884,384
|
|
17,590,193
|
|
15,260,196
|
|
13,171,739
|
|
|
Noncontrolling Interest
|
|
-
|
|
-
|
|
-
|
|
-
|
|
257,582
|
|
|
Stockholder's Equity
|
|
169,875,847
|
|
167,364,489
|
|
155,171,837
|
|
150,079,645
|
|
145,851,848
|
|
|
Total Liabilities and
Stockholder's Equity
|
|
$1,790,929,929
|
|
$1,735,901,567
|
|
$1,676,977,658
|
|
$1,606,009,509
|
|
$1,555,885,215
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest spread
|
|
|
3.38%
|
|
3.54%
|
|
3.56%
|
|
3.56%
|
|
3.71%
|
|
Net interest income and
Net interest
margin(1)
|
|
$14,783,859
|
3.60%
|
$14,677,622
|
3.74%
|
$14,497,216
|
3.75%
|
$13,814,036
|
3.73%
|
$13,424,559
|
3.85%
|
(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 June 30,
2017 and 2016. Fair value accretion for the current quarter and
prior four quarters are as follows:
|
|
6/30/2017
|
|
3/31/2017
|
|
12/31/2016
|
|
9/30/2016
|
|
6/30/2016
|
|
||||||||||||||||||
|
|
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)
|
$(6,028)
|
|
(0.00)
|
%
|
$9,727
|
|
0.00
|
%
|
$(3,913)
|
|
(0.00)
|
%
|
$12,442
|
|
0.00
|
%
|
$(479)
|
|
(0.00)
|
%
|
|
|||||||
|
Mortgage loans
|
302,687
|
|
0.07
|
|
285,482
|
|
0.07
|
|
473,922
|
|
0.12
|
|
67,300
|
|
0.02
|
|
127,100
|
|
0.04
|
|
|
|||||||
|
Consumer loans
|
5,038
|
|
0.00
|
|
5,277
|
|
0.00
|
|
71,118
|
|
0.02
|
|
12,947
|
|
0.00
|
|
10,963
|
|
0.00
|
|
|
|||||||
|
Interest bearing deposits
|
29,538
|
|
0.01
|
|
35,036
|
|
0.01
|
|
45,705
|
|
0.01
|
|
52,728
|
|
0.01
|
|
68,569
|
|
0.02
|
|
|
|||||||
|
Total Fair Value Accretion
|
$331,235
|
|
0.08
|
%
|
$335,522
|
|
0.08
|
%
|
$586,832
|
|
0.15
|
%
|
$145,417
|
|
0.03
|
%
|
$206,153
|
-
|
0.06
|
%
|
|
|||||||
(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 release:
|
|
6/30/2017
|
|
3/31/2017
|
|
12/31/2016
|
|
9/30/2016
|
|
6/30/2016
|
|
||||||||||||||||||
|
|
Net Interest
Income
|
|
Yield
|
|
Net Interest
Income
|
|
Yield
|
|
Net Interest
Income
|
|
Yield
|
|
Net Interest
Income
|
|
Yield
|
|
Net Interest
Income
|
|
Yield
|
|
|
|||||||
|
GAAP net interest income
|
$14,252,645
|
|
3.47
|
%
|
$14,161,389
|
|
3.60
|
%
|
$14,012,459
|
|
3.62
|
%
|
$13,338,986
|
|
3.61
|
%
|
$12,975,748
|
|
3.72
|
%
|
|
|||||||
|
Tax equivalent adjustment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Federal funds sold
|
25
|
|
0.00
|
|
11
|
|
0.00
|
|
4
|
|
0.00
|
|
4
|
|
0.00
|
|
3
|
|
0.00
|
|
|
|||||||
|
Investment securities
|
245,539
|
|
0.06
|
|
255,220
|
|
0.07
|
|
253,166
|
|
0.07
|
|
243,510
|
|
0.06
|
|
228,532
|
|
0.07
|
|
|
|||||||
|
Loans
|
285,650
|
|
0.07
|
|
261,002
|
|
0.07
|
|
231,587
|
|
0.06
|
|
231,536
|
|
0.06
|
|
220,276
|
|
0.06
|
|
|
|||||||
|
Total tax equivalent adjustment
|
531,214
|
|
0.13
|
|
516,233
|
|
0.14
|
|
484,757
|
|
0.13
|
|
475,050
|
|
0.12
|
|
448,811
|
|
0.13
|
|
|
|||||||
|
Tax equivalent interest yield
|
$14,783,859
|
|
3.60
|
%
|
$14,677,622
|
|
3.74
|
%
|
$14,497,216
|
|
3.75
|
%
|
$13,814,036
|
|
3.73
|
%
|
$13,424,559
|
|
3.85
|
%
|
|
|||||||
|
Old Line Bancshares, Inc. & Subsidiaries
|
|||||
|
Selected Loan Information
|
|||||
|
(Dollars in thousands)
|
|||||
|
|
June 30,
2017
|
March 31,
2017
|
December 31,
2016
|
September 30,
2016
|
June 30,
2016
|
|
|
|
|
|
|
|
|
Legacy Loans(1)
|
|
|
|
|
|
|
Period End Loan Balance
|
$1,285,819
|
$1,241,666
|
$1,177,232
|
$1,093,436
|
$1,027,579
|
|
Deferred Costs
|
1,679
|
1,520
|
1,257
|
1,222
|
1,227
|
|
Accruing
|
1,279,091
|
1,236,642
|
1,167,381
|
1,084,851
|
1,021,867
|
|
Non-accrual
|
659
|
660
|
6,090
|
5,803
|
5,712
|
|
Accruing 30-89 days past due
|
6,050
|
4,191
|
3,742
|
2,524
|
2,479
|
|
Accruing 90 or more days past due
|
19
|
174
|
19
|
259
|
-
|
|
Allowance for loan losses
|
5,807
|
5,504
|
6,084
|
5,967
|
5,703
|
|
Other real estate owned
|
747
|
747
|
425
|
425
|
425
|
|
Net charge offs (recoveries)
|
(21)
|
1,029
|
-
|
(3)
|
(4)
|
|
|
|
|
|
|
|
|
Acquired Loans(2)
|
|
|
|
|
|
|
Period End Loan Balance
|
$164,986
|
$179,509
|
$188,881
|
$204,126
|
$219,231
|
|
Deferred Costs
|
-
|
-
|
-
|
-
|
-
|
|
Accruing
|
160,608
|
174,925
|
185,631
|
200,412
|
216,971
|
|
Non-accrual(3)
|
1,237
|
466
|
294
|
1,545
|
2,260
|
|
Accruing 30-89 days past due
|
3,138
|
4,118
|
2,072
|
1,284
|
2,203
|
|
Accruing 90 or more days past due
|
3
|
-
|
884
|
885
|
-
|
|
Allowance for loan losses
|
105
|
106
|
111
|
385
|
316
|
|
Other real estate owned
|
2,149
|
2,149
|
2,321
|
1,510
|
2,019
|
|
Net charge offs (recoveries)
|
(2)
|
(3)
|
357
|
(25)
|
(9)
|
|
|
|
|
|
|
|
|
Allowance for loan losses as % of held for investment
loans
|
0.41%
|
0.39%
|
0.45%
|
0.49%
|
0.48%
|
|
Allowance for loan losses as % of legacy held for investment
loans
|
0.45%
|
0.44%
|
0.52%
|
0.55%
|
0.55%
|
|
Allowance for loan losses as % of acquired held for investment
loans
|
0.06%
|
0.06%
|
0.06%
|
0.19%
|
0.14%
|
|
Total non-performing loans as a % of held for investment
loans
|
0.13%
|
0.10%
|
0.53%
|
0.65%
|
0.83%
|
|
Total non-performing assets as a % of total assets
|
0.27%
|
0.24%
|
0.59%
|
0.63%
|
0.71%
|
(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.