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

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8-K - 8-K - OLD LINE BANCSHARES INC	olbk-20150415x8k.htm

Exhibit 99.1

PRESS RELEASEOLD LINE BANCSHARES, INC.

FOR IMMEDIATE RELEASECONTACT: ELISE HUBBARD

April 15, 2015CHIEF FINANCIAL OFFICER

(301) 430-2560

OLD LINE BANCSHARES, INC. REPORTS $2.8 MILLION IN NET INCOME AVAILABLE TO COMMON STOCKHOLDERS, A 50% INCREASE, FOR THE FIRST QUARTER ENDED MARCH 31, 2015

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

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

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

1st QUARTER HIGHLIGHTS:

Net loans held-for-investment increased $37.1 million, or 4.01%, during the three months ended March 31, 2015, to $963.7 million at March 31, 2015, compared to $926.6 million at December 31, 2014, as a result of organic growth within our surrounding market area. Average gross loans increased $49.6 million, or 5.48% to $954.9 million for the period ending March 31, 2015 compared to $905.2 million for the three month period ended December 31, 2014.

Total assets increased $47.6 million, 3.88%, since December 31, 2014.

Net income increased 50.03% to $2.8 million, or $0.25 per basic and diluted share, was recorded for the three month period ending March 31, 2015, compared to net income of $1.8 million, or $0.17 per basic and diluted share, for the first quarter of 2014.

Non-performing assets decreased 60.71% to 0.44% of total assets at March 31, 2015 compared to 1.12% at March 31 2014. Non-performing assets stood at 0.65% at December 31, 2014.

The net interest margin was 4.32% compared to 4.29% for the same period in 2014. Total yield on interest earning assets increased to 4.70% for the three months ending March 31, 2015, compared to 4.69% for the same three month period last year. Interest expense as a percentage of total interest-bearing liabilities decreased slightly to 0.50% for the three months ended March 31, 2015 compared to 0.51% for the same three month period of 2014.

The first quarter Return on Average Assets (ROAA) and Return on Average Equity (ROAE) were 0.89% and 8.27%, respectively, compared to ROAA and ROAE of 0.64% and 5.95%, respectively, for the first quarter of 2014.

Total deposits grew by $35.7 million, or 3.52%, since December 31, 2014.

The first quarter of 2015 ended with a book value of $12.77 per common share and a tangible book value of $11.65 per common share compared to $12.51 and $11.38, respectively, at December 31 2014.

We maintained liquidity and by all regulatory measures remained “well capitalized.”

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

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

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

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

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

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

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

Non-interest expenses decreased for the three month period ending March 31, 2015 compared to the same period of 2014 primarily as a result of decreases in salaries and benefits and occupancy and equipment, partially offset

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

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

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

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

Old Line Bancshares, Inc. & Subsidiaries

Consolidated Balance Sheets


	March 31,		December 31,		September 30,		June 30,		March 31,
	2015		2014 (1)		2014		2014		2014
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Cash and due from banks	$	37,061,793	$	23,572,613	$	42,266,194	$	29,887,334	$	54,197,169
Interest bearing accounts		1,080,570		1,230,864		30,396		30,389		30,383
Federal funds sold		624,888		601,259		533,612		304,246		178,806
Total cash and cash equivalents		38,767,251		25,404,736		42,830,202		30,221,969		54,406,358
Investment securities available for sale		158,380,719		161,680,198		163,535,833		155,706,684		172,094,347
Loans held for sale		8,692,297		4,548,106		5,735,282		4,074,911		1,646,330
Loans held for investment, less allowance for loan losses of $4,636,048 and $4,281,835 for March 31, 2015 and December 31, 2014		963,706,538		926,573,488		883,905,233		889,524,786		849,429,721
Equity securities at cost		3,353,096		5,811,697		4,304,197		4,304,196		4,304,197
Premises and equipment		33,874,131		34,300,375		34,366,258		34,604,271		34,661,659
Accrued interest receivable		3,172,615		3,218,428		3,002,457		2,978,470		3,131,042
Deferred income taxes		12,506,347		16,106,498		19,843,857		19,850,224		20,639,961
Current income taxes receivable		1,312,872		—		—		—		—
Bank owned life insurance		31,643,001		31,429,747		31,214,396		31,000,380		30,787,554
Other real estate owned		1,600,015		2,451,920		2,699,846		4,627,465		4,593,154
Goodwill		7,793,665		7,793,665		7,793,665		7,793,665		7,793,665
Core deposit intangible		4,210,679		4,420,796		4,633,766		4,846,737		5,058,951
Other assets		6,087,688		3,779,350		4,128,206		3,732,934		4,390,527
Total assets	$	1,275,100,914	$	1,227,519,004	$	1,207,993,198	$	1,193,266,692	$	1,192,937,466
Deposits
Non-interest bearing	$	269,733,047	$	260,913,521	$	247,291,192	$	237,614,952	$	234,512,077
Interest bearing		781,718,574		754,825,885		772,344,384		771,801,936		773,640,266
Total deposits		1,051,451,621		1,015,739,406		1,019,635,576		1,009,416,888		1,008,152,343
Short term borrowings		71,236,281		61,002,889		35,558,734		35,769,108		38,193,867
Long term borrowings		5,958,485		5,987,283		6,017,844		6,043,715		6,071,856
Accrued interest payable		284,444		266,023		241,740		229,939		241,981
Accrued pension		5,162,732		5,095,141		5,069,745		5,003,784		4,996,120
Income taxes payable		—		485,435		3,406,234		2,376,461		2,988,981
Other liabilities		3,420,900		3,416,190		4,557,087		2,252,083		2,744,510
Total liabilities		1,137,514,463		1,091,992,367		1,074,486,960		1,061,091,978		1,063,389,658

Stockholders' equity
Common stock		107,551		108,110		107,864		107,854		107,854
Additional paid-in capital		104,313,092		105,235,646		104,900,904		104,820,171		104,748,891
Retained earnings		32,281,404		30,067,798		28,826,765		27,621,537		26,283,617
Accumulated other comprehensive income (loss)		630,791		(147,250)		(589,650)		(639,502)		(1,871,087)
Total Old Line Bancshares, Inc. stockholders' equity		137,332,838		135,264,304		133,245,883		131,910,060		129,269,275
Non-controlling interest		253,613		262,333		260,355		264,654		278,533
Total stockholders' equity		137,586,451		135,526,637		133,506,238		132,174,714		129,547,808
Total liabilities and stockholders' equity	$	1,275,100,914	$	1,227,519,004	$	1,207,993,198	$	1,193,266,692	$	1,192,937,466
Shares of basic common stock outstanding		10,755,017		10,810,930		10,786,370		10,785,370		10,785,370

(1)

Financial information as of December 31, 2013 has been derived from audited financial statements.

Old Line Bancshares, Inc. & Subsidiaries

Consolidated Statements of Income


	Three Months		Three Months		Three Months		Three Months		Three Months
	Ended		Ended		Ended		Ended		Ended
	March 31,		December 31,		September 30,		June 30,		March 31,
	2015		2014		2014		2014		2014
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Interest income
Loans, including fees	$	11,621,493	$	10,556,729	$	10,232,684	$	10,599,999	$	10,333,973
Investment securities and other		886,084		939,602		885,324		1,017,039		1,037,897
Total interest income		12,507,577		11,496,331		11,118,008		11,617,038		11,371,870
Interest expense
Deposits		910,957		799,716		850,964		856,639		894,303
Borrowed funds		134,716		119,214		111,693		148,918		118,276
Total interest expense		1,045,673		918,930		962,657		1,005,557		1,012,579
Net interest income		11,461,904		10,577,401		10,155,351		10,611,481		10,359,291
Provision for loan losses		561,731		458,114		555,134		1,544,280		269,769
Net interest income after provision for loan losses		10,900,173		10,119,287		9,600,217		9,067,201		10,089,522
Non-interest income
Service charges on deposit accounts		415,202		475,120		483,865		493,482		451,596
Gain on sales or calls of investment securities		60,694		-		-		129,911		-
Gain on sale of stock		-		-		-		-		96,993
Earnings on bank owned life insurance		248,384		249,967		248,259		246,371		243,607
Gains (losses) on disposal of assets		19,975		(48,051)		-		17,919		-
Gain on sale of loans		354,650		276,531		224,930		195,829		106,720
Other fees and commissions		733,004		438,561		348,090		784,622		493,209
Total non-interest income		1,831,909		1,392,128		1,305,144		1,868,134		1,392,125
Non-interest expense
Salaries & employee benefits		4,217,370		4,303,832		4,602,520		4,051,407		4,873,634
Occupancy & Equipment		1,399,877		1,878,052		1,367,808		1,436,564		1,586,777
Data processing		352,060		352,956		368,717		312,042		307,160
Merger and integration		-		-		-		-		29,167
Core deposit amortization		210,117		212,970		212,970		212,214		228,550
(Gains)losses on sales of other real estate owned		134,754		(155,148)		(260,533)		(79,127)		(203,068)
OREO expense		120,201		199,094		159,238		112,659		83,066
Other operating		2,257,235		2,257,866		2,078,155		2,446,147		2,071,256
Total non-interest expense		8,691,614		9,049,622		8,528,875		8,491,906		8,976,542
Income before income taxes		4,040,468		2,461,793		2,376,486		2,443,429		2,505,105
Income tax expense		1,295,035		679,154		636,239		687,973		690,737
Net income		2,745,433		1,782,639		1,740,247		1,755,456		1,814,368
Less: Net income (loss) attributable to the noncontrolling interest		(8,720)		1,978		(4,299)		(13,880)		(21,389)
Net income available to common stockholders	$	2,754,153	$	1,780,661	$	1,744,546	$	1,769,336	$	1,835,757
Earnings per basic share	$	0.25	$	0.17	$	0.16	$	0.16	$	0.17
Earnings per diluted share	$	0.25	$	0.16	$	0.16	$	0.16	$	0.17
Dividend per common share	$	0.05	$	0.05	$	0.05	$	0.04	$	0.04
Average number of basic shares		10,807,366		10,792,544		10,785,881		10,785,370		10,780,141
Average number of dilutive shares		10,899,030		10,941,002		10,921,555		10,948,368		10,942,110

(1)

Financial information as of December 31, 2013 has been derived from audited financial statements.

Old Line Bancshares, Inc. & Subsidiaries

Average Balances, Interest and Yields


	3/31/2015				12/31/2014				9/30/2014				6/30/2014				3/31/2014
	Average				Average				Average				Average				Average
	Balance		Yield		Balance		Yield		Balance		Yield		Balance		Yield		Balance		Yield
Assets:
Int. Bearing Deposits	$	593,602	0.12	%	$	2,902,672	0.20	%	$	3,896,273	0.17	%	$	4,024,265	0.17	%	$	1,352,504	0.12	%
Investment Securities(2)		164,560,281	2.70	%		168,069,134	2.40	%		159,259,044	2.94	%		170,389,632	3.00	%		174,564,325	3.06	%
Loans		954,873,037	5.02	%		905,241,954	4.78	%		897,381,372	4.57	%		865,944,038	4.99	%		851,079,999	5.00	%
Allowance for Loan Losses		(4,498,086)				(2,570,097)				(6,422,492)				(5,290,130)				(5,001,250)
Total Loans
Net of allowance		950,374,951	5.04	%		902,671,857	4.79	%		890,958,880	4.60	%		860,653,908	5.02	%		846,078,749	5.03	%
Total interest-earning assets		1,115,528,834	4.70	%		1,073,643,663	4.42	%		1,054,114,197	4.33	%		1,035,067,805	4.67	%		1,021,995,578	4.69	%
Noninterest bearing cash		34,422,919				38,925,730				42,071,667				39,297,001				36,258,104
Other Assets		102,782,917				107,033,944				109,199,887				109,464,228				110,237,569
Total Assets	$	1,252,734,670			$	1,219,603,337			$	1,205,385,751			$	1,183,829,034			$	1,168,491,251
Liabilities and Stockholders' Equity
Interest-bearing Deposits	$	772,838,785	0.48	%	$	767,241,928	0.41	%	$	776,032,831	0.44	%	$	768,879,677	0.45	%	$	751,439,481	0.48	%
Borrowed Funds		72,721,100	0.75	%		50,442,530	0.94	%		39,031,131	1.14	%		41,102,469	1.45	%		51,661,794	0.93	%
Total interest-bearing liabilities		845,559,885	0.50	%		817,684,458	0.45	%		815,063,962	0.47	%		809,982,146	0.50	%		803,101,275	0.51	%
Noninterest bearing deposits		262,926,103				255,002,560				247,346,466				234,063,213				229,229,562
		1,108,485,988				1,072,687,018				1,062,410,428				1,044,045,359				1,032,330,837
Other Liabilities		9,009,800				11,057,397				10,072,582				9,603,037				10,813,815
Noncontrolling Interest		258,240				261,545				262,435				270,521				285,355.00
Stockholder's Equity		134,980,642				135,597,377				132,640,306				129,910,117				125,061,244
Total Liabilities and
Stockholder's Equity	$	1,252,734,670			$	1,219,603,337			$	1,205,385,751			$	1,183,829,034			$	1,168,491,251
Net interest spread			4.20	%			3.97	%			3.86	%			4.17	%			4.18	%
Net interest income and
Net interest margin(1)	$	11,891,497	4.32	%	$	11,034,119	4.08	%	$	10,545,444	3.97	%	$	11,047,069	4.28	%	$	10,809,169	4.29	%

(1)

Interest revenue is presented on a fully taxable equivalent (FTE) basis. The FTE basis adjusts for the tax favored status of these types of assets. Management believes providing this information on a FTE basis provides investors with a more accurate picture of our net interest spread and net interest income and we believe it to be the preferred industry measurement of these calculations. See “Reconciliation of Non-GAAP Measures.”

(2)

Available for sale investment securities are presented at amortized cost.

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


	3/31/2015				12/31/2014				9/30/2014				6/30/2014				3/31/2014
	Fair Value		% Impact on		Fair Value		% Impact on		Fair Value		% Impact on		Fair Value		% Impact on		Fair Value		% Impact on
	Accretion		Net Interest		Accretion		Net Interest		Accretion		Net Interest		Accretion		Net Interest		Accretion		Net Interest
	Dollars		Margin		Dollars		Margin		Dollars		Margin		Dollars		Margin		Dollars		Margin
Commercial loans (1)	$	8,690	—	%	$	(969)	—	%	$	(16,219)	(0.01)	%	$	(3,509)	—	%	$	7,468	—	%
Mortgage loans (1)		589,266	0.21			24,779	0.01			(278,619)	(0.10)			344,403	0.13			287,526	0.11
Consumer loans		11,390	—			6,686	—			4,209	—			6,338	—			4,635	—
Interest bearing deposits		37,263	0.01			110,503	0.04			131,837	0.05			162,452	0.06			129,327	0.05
Total Fair Value Accretion (Amortization)	$	646,609	0.22	%	$	140,999	0.05	%	$	(158,792)	(0.06)	%	$	509,684	0.19	%	$	428,956	0.16	%

(1)

Negative accretion on commercial and mortgage loans is due to the early payoff of loans which caused a reduction in fair value income on acquired loan portfolio.

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


	3/31/2015				12/31/2014				9/30/2014				6/30/2014				3/31/2014
	Net Interest				Net Interest				Net Interest				Net Interest				Net Interest
	Income		Yield		Income		Yield		Income		Yield		Income		Yield		Income		Yield
GAAP net interest income		11,461,904	4.17	%		10,577,401	3.91	%	$	10,155,351	3.82	%	$	10,611,481	4.11	%	$	10,359,291	4.11	%
Tax equivalent adjustment
Federal funds sold		1	—			1	—			-	-				-			-	-
Investment securities		200,498	0.07			343,280	0.13			294,770	0.11			258,980	0.10			281,377	0.11
Loans		229,094	0.08			113,437	0.04			95,323	0.04			176,608	0.07			168,501	0.07
Total tax equivalent adjustment		429,593	0.15			456,718	0.17			390,093	0.15			435,588	0.17			449,878	0.18
Tax equivalent interest yield	$	11,891,497	4.32	%	$	11,034,119	4.08	%	$	10,545,444	3.97	%	$	11,047,069	4.28	%	$	10,809,169	4.29	%

Old Line Bancshares, Inc. & Subsidiaries

Selected Loan Information

(Dollars in thousands)


	March 31,			December 31,			September 30,			June 30,			March 31,
	2015			2014			2014			2014			2014
Acquired Loans(1)
Period End Loan Balance	$	171,527		$	173,659		$	186,896		$	203,211		$	210,832
Deferred Costs		—			10			9			11			1
Accruing		165,956			167,704			183,094			199,859			206,517
Non-accrual(2)		2,518			1,958			1,291			593			861
Accruing 30-89 days past due		3,053			3,687			1,569			1,478			2,977
Accruing 90 or more days past due		—			310			942			1,271			477
Other real estate owned		1,125			1,977			2,225			3,826			3,784
Net charge offs (recoveries)		(16)			52			316			106			148
Legacy Loans(3)
Period End Loan Balance	$	795,532		$	749,968		$	699,833		$	691,619		$	642,482
Deferred Costs		1,283			1,283			1,048			1,039			998
Accruing		793,576			746,376			692,854			681,592			633,461
Non-accrual		1,106			3,249			3,263			7,176			7,202
Accruing 30-89 days past due		851			343			3,411			2,177			1,601
Accruing 90 or more days past due		-			-			305			674			218
Other real estate owned		475			475			475			802			809
Net charge offs (recoveries)		224			(4)			2,691			(4)			169
Allowance for loan losses as % of held for investment loans		0.48	%		0.46	%		0.44	%		0.71	%		0.57	%
Allowance for loan losses as % of legacy loans		0.59	%		0.57	%		0.55	%		0.80	%		0.76	%
Total non-performing loans as a % of held for investment loans		0.37	%		0.56	%		0.96	%		1.08	%		1.56	%
Total non-performing assets as a % of total assets		0.44	%		0.65	%		0.70	%		1.20	%		1.12	%

(1)

Acquired loans represent all loans acquired on April 1, 2011 from MB&T and on May 10, 2013 from WSB. We originally recorded these loans at fair value upon acquisition.

(2)

These loans are loans that are considered non-accrual because they are not paying in conformance with the original contractual agreement. At acquisition, we recorded these loans at fair value. Until the December 31, 2013 quarter, we recognized interest income on these loans through the accretion of the difference between the carrying value of these loans and their expected cash flows. In the fourth quarter of 2013, we are no longer recording interest on these loans that were not purchased as credit impaired.

(3)

Legacy loans represent total loans excluding loans acquired on April 1, 2011 and May 10, 2013.

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OLD LINE BANCSHARES INC Reports