UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 14, 2018
Old Line Bancshares, Inc.
(Exact name of registrant as specified in its charter)
| Maryland | 000-50345 | 20-0154352 |
(State or other jurisdiction of incorporation) |
(Commission File Number) | (IRS Employer Identification No.) |
| 1525 Pointer Ridge Place | |||
| Bowie, Maryland | 20716 | ||
| (Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number, including area code: 301-430-2500
N/A
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4 (c) under the Exchange Act (17 CFR 240.13e- 4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
| Emerging growth company | ☐ |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 7.01 Regulation FD Disclosure
Set forth below is certain financial information relating to Bay Bancorp, Inc.’s financial results for the three-month periods ended March 31, 2018, March 31, 2017 and December 31, 2017. Bay Bancorp, Inc. the parent company of Bay Bank, FSB, merged with and into Old Line Bancshares, Inc. on April 13, 2018.
As discussed in Bay Bancorp, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2017, filed with the Securities Exchange Commission on March 28, 2018, Bay Bancorp, Inc.’s results of operations were primarily determined by the difference between interest income earned on its interest-earning assets, primarily interest and fee income on loans, and interest paid on its interest-bearing liabilities, including deposits and borrowings.
The following tables present Bay Bancorp, Inc.’s consolidated financial statements as of and for the periods ended March 31, 2018, March 31, 2017 and December 31, 2017.
OLD LINE BANK -BAY BANCORP, INC. AND SUBSIDIARY
BALANCE SHEET
| March 31, 2018 | March 31, 2017 | December 31, 2017 | ||||||||||
| (unaudited) | (unaudited) | |||||||||||
| ASSETS | ||||||||||||
| Cash and due from banks | $ | 5,743,130 | $ | 5,981,700 | $ | 9,316,482 | ||||||
| Interest bearing deposits with banks and federal funds sold | 19,399,765 | 36,822,634 | 22,249,796 | |||||||||
| Total cash and cash equivalents | 25,142,895 | 42,804,334 | 31,566,278 | |||||||||
| Investment securities available for sale, at fair value | 53,165,939 | 64,455,088 | 55,814,216 | |||||||||
| Investment securities held to maturity, at amortized cost | 1,051,172 | 1,137,200 | 1,073,107 | |||||||||
| Restricted equity securities, at cost | 1,986,900 | 2,322,295 | 1,302,295 | |||||||||
| Loans held for sale | (682 | ) | 848,975 | 1,097,160 | ||||||||
| Loans, net of deferred fees and costs | 549,795,955 | 495,236,254 | 542,250,292 | |||||||||
| Allowance for loan losses | (4,390,882 | ) | (3,159,769 | ) | (4,156,425 | ) | ||||||
| Loans, net | 545,405,073 | 492,076,485 | 538,093,867 | |||||||||
| Real estate acquired through foreclosure | 1,041,079 | 564,678 | 991,615 | |||||||||
| Premises and equipment, net | 3,182,327 | 3,835,945 | 3,306,025 | |||||||||
| Bank owned life insurance | 16,319,198 | 15,844,759 | 16,205,352 | |||||||||
| Core deposit intangibles | 2,067,197 | 2,794,844 | 2,241,127 | |||||||||
| Deferred tax assets, net | 2,081,388 | 2,890,703 | 1,806,352 | |||||||||
| Accrued interest receivable | 2,163,473 | 1,921,253 | 2,176,359 | |||||||||
| Accrued taxes receivable | 2,007,484 | 660,993 | 2,469,620 | |||||||||
| Prepaid expenses | 611,248 | 972,721 | 604,381 | |||||||||
| Other assets | 215,102 | 220,864 | 225,170 | |||||||||
| Total assets | $ | 656,439,793 | $ | 633,351,137 | $ | 658,972,924 | ||||||
| LIABILITIES | ||||||||||||
| Noninterest-bearing deposits | $ | 128,241,325 | $ | 112,411,693 | $ | 134,617,261 | ||||||
| Deposits interest bearing | 419,019,509 | 413,390,788 | 438,137,299 | |||||||||
| Total deposits | 547,260,834 | 525,802,481 | 572,754,560 | |||||||||
| Short-term borrowings | 32,800,000 | 34,000,000 | 10,000,000 | |||||||||
| Defined benefit pension liability | 639,756 | 964,334 | 612,112 | |||||||||
| Accrued expenses and other liabilities | 2,938,490 | 5,302,656 | 3,730,123 | |||||||||
| Total liabilities | 583,639,080 | 566,069,471 | 587,096,795 | |||||||||
| STOCKHOLDERS' EQUITY | ||||||||||||
| Common stock | 10,703,181 | 10,543,862 | 10,667,227 | |||||||||
| Additional paid-in capital | 41,852,652 | 41,187,024 | 41,692,751 | |||||||||
| Retained earnings | 20,565,404 | 15,383,778 | 19,180,657 | |||||||||
| Accumulated other comprehensive income | (320,524 | ) | 167,002 | 335,494 | ||||||||
| Total stockholders' equity | 72,800,713 | 67,281,666 | 71,876,129 | |||||||||
| Total liabilities and equity | $ | 656,439,793 | $ | 633,351,137 | $ | 658,972,924 | ||||||
| OLD LINE BANK -BAY BANCORP, INC. AND SUBSIDIARY | Three Months Ended | |||||||||||
| INCOME STATEMENT | March 31, 2018 | March 31, 2017 | December 31, 2017 | |||||||||
| (unaudited) | (unaudited) | (unaudited) | ||||||||||
| Interest income | ||||||||||||
| Interest and fees on loans | $ | 6,896,027 | $ | 5,920,144 | $ | 6,907,484 | ||||||
| Interest on loans held for sale | 4,864 | 6,882 | 11,003 | |||||||||
| Interest and dividends on securities | 360,615 | 350,885 | 373,084 | |||||||||
| Interest on deposits with banks and federal funds sold | 88,556 | 77,675 | 101,566 | |||||||||
| Total interest income | 7,350,062 | 6,355,586 | 7,393,137 | |||||||||
| Interest expense | ||||||||||||
| Interest on deposits | 526,677 | 455,850 | 576,999 | |||||||||
| Interest on federal funds purchased | - | - | - | |||||||||
| Interest on short-term borrowings | 129,876 | 60,204 | 66,812 | |||||||||
| 656,553 | 516,054 | 643,811 | ||||||||||
| Net interest income | 6,693,509 | 5,839,532 | 6,749,326 | |||||||||
| Provision for loan losses | 300,000 | 440,521 | 380,176 | |||||||||
| Net interest income after provision | 6,393,509 | 5,399,011 | 6,369,150 | |||||||||
| Noninterest income | ||||||||||||
| Payment sponsorship fees | 726,420 | 656,192 | 771,209 | |||||||||
| Mortgage banking fees and gains | 15,677 | 182,944 | 62,019 | |||||||||
| Service charges on deposit accounts | 110,318 | 62,633 | 97,868 | |||||||||
| Bargain purchase gain | - | - | - | |||||||||
| (Loss) gain on securities | - | 5,521 | - | |||||||||
| Other noninterest income | 118,025 | 419,074 | 322,545 | |||||||||
| Total operating income | 970,440 | 1,326,364 | 1,253,641 | |||||||||
| Noninterest expenses | ||||||||||||
| Salaries and employee benefits | 3,306,174 | 2,857,244 | 3,434,189 | |||||||||
| Occupancy and equipment expenses | 620,228 | 757,645 | 724,716 | |||||||||
| Data processing fees | 402,496 | 327,794 | 376,914 | |||||||||
| Legal, accounting and other professional fees | 247,389 | 232,955 | 104,105 | |||||||||
| Advertising and marketing related expenses | 36,589 | 24,320 | 127,760 | |||||||||
| FDIC insurance expenses | 75,051 | 65,014 | 56,113 | |||||||||
| Foreclosed property expenses and REO sales, net | 24,938 | 16,859 | 27,686 | |||||||||
| Loan collection expenses | 7,953 | 34,666 | 19,965 | |||||||||
| Core deposit intangible amortization | 173,929 | 235,465 | 173,929 | |||||||||
| Merger related expenses | 57,825 | 149,543 | 289,512 | |||||||||
| Other noninterest expenses | 461,848 | 480,057 | 618,539 | |||||||||
| Total operating expenses | 5,414,420 | 5,181,562 | 5,953,428 | |||||||||
| Net income before taxes | 1,949,529 | 1,543,813 | 1,669,363 | |||||||||
| Income tax expense | 564,782 | 587,005 | 1,208,880 | |||||||||
| Net income | $ | 1,384,747 | $ | 956,808 | $ | 460,483 | ||||||
| Weighted average shares | ||||||||||||
| Basic | 10,672,603 | 10,502,387 | 10,667,227 | |||||||||
| Diluted | 10,749,974 | 10,652,651 | 10,781,805 | |||||||||
| Earnings per share available to common shareholders | ||||||||||||
| Basic | $ | 0.13 | $ | 0.09 | $ | 0.04 | ||||||
| Diluted | $ | 0.13 | $ | 0.09 | $ | 0.04 | ||||||
| OLD LINE BANK -BAY BANCORP, INC. AND SUBSIDIARY | ||||||||||||
| SELECTED FINANCIAL DATA | ||||||||||||
| Three Months Ended | ||||||||||||
| March 31, 2018 | March 31, 2017 | December 31, 2017 | ||||||||||
| (unaudited) | (unaudited) | (unaudited) | ||||||||||
| Consolidated Income Statement Data: | ||||||||||||
| Interest income | $ | 7,350,062 | $ | 6,355,586 | $ | 7,393,137 | ||||||
| Interest expense | 656,553 | 516,054 | 643,811 | |||||||||
| Net interest income | 6,693,509 | 5,839,532 | 6,749,326 | |||||||||
| Provision for loan losses | 300,000 | 440,521 | 380,176 | |||||||||
| Net interest income after provision for loan losses | 6,393,509 | 5,399,011 | 6,369,150 | |||||||||
| Other noninterest income | 970,440 | 1,326,364 | 1,253,641 | |||||||||
| Merger related expense | 57,825 | 149,543 | 289,512 | |||||||||
| Other noninterest expenses | 5,356,595 | 5,032,019 | 5,663,916 | |||||||||
| Income before income taxes | 1,949,529 | 1,543,813 | 1,669,363 | |||||||||
| Income tax expense | 564,782 | 587,005 | 1,208,880 | |||||||||
| Net income | $ | 1,384,747 | $ | 956,808 | $ | 460,483 | ||||||
| 1,384,747 | 956,808 | 460,483 | ||||||||||
| - | - | - | ||||||||||
| Shares outstanding and per share data: | ||||||||||||
| Average shares outstanding | 10,672,603 | 10,502,387 | 10,667,227 | |||||||||
| Diluted average shares outstanding | 10,749,974 | 10,652,651 | 10,781,805 | |||||||||
| Number of shares outstanding, at end of period | 10,703,181 | 10,543,862 | 10,667,227 | |||||||||
| Dividends declared per common share | $ | - | $ | - | $ | - | ||||||
| Financial Data: | ||||||||||||
| Assets | $ | 656,439,793 | $ | 633,351,137 | $ | 658,972,924 | ||||||
| Investment securities | 56,204,011 | 67,914,583 | 58,189,618 | |||||||||
| Loans (net of deferred fees and costs) | 549,795,955 | 495,236,254 | 542,250,292 | |||||||||
| Allowance for loan losses | (4,390,882 | ) | (3,159,769 | ) | (4,156,425 | ) | ||||||
| Deposits | 547,260,834 | 525,802,481 | 572,754,560 | |||||||||
| Borrowings | 32,800,000 | 34,000,000 | 10,000,000 | |||||||||
| Equity attributable to common shareholders | 72,800,713 | 67,281,666 | 71,876,129 | |||||||||
| Net income | 1,384,747 | 956,808 | 460,483 | |||||||||
| Average Balances: (unaudited) | ||||||||||||
| Assets | 658,201,858 | 617,613,946 | 642,531,387 | |||||||||
| Investment securities | 58,042,830 | 62,069,734 | 60,211,519 | |||||||||
| Loans (net of deferred fees and costs) | 545,236,889 | 490,288,543 | 528,707,904 | |||||||||
| Borrowings | 31,488,889 | 23,779,661 | 22,206,557 | |||||||||
| Deposits | 551,599,642 | 520,795,226 | 549,819,040 | |||||||||
| Stockholders' equity | 71,457,442 | 66,063,753 | 67,396,179 | |||||||||
| Performance Ratios: | ||||||||||||
| Annualized return on average assets | 0.85 | % | 0.63 | % | 0.28 | % | ||||||
| Annualized return on average equity | 7.86 | % | 5.87 | % | 2.71 | % | ||||||
| Yield on average interest-earning assets | 4.63 | % | 4.41 | % | 4.74 | % | ||||||
| Rate on average interest-bearing liabilities | 0.57 | % | 0.48 | % | 0.57 | % | ||||||
| Net interest spread | 4.06 | % | 3.93 | % | 4.17 | % | ||||||
| Net interest margin | 4.21 | % | 4.05 | % | 4.33 | % | ||||||
| Book value per share | $ | 6.80 | $ | 6.38 | $ | 6.74 | ||||||
| Basic net income per share | 0.13 | 0.09 | 0.04 | |||||||||
| Diluted net income per share | 0.13 | 0.09 | 0.04 | |||||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| OLD LINE BANCSHARES, INC. | |
| Date: May 14, 2018 | By: /s/ Elise M. Hubbard |
| Elise M. Hubbard, Executive Vice President and Chief Financial Officer |