BOWIE, Md., May 4, 2009 (GLOBE NEWSWIRE) -- James W. Cornelsen, President and Chief Executive Officer of Old Line Bancshares, Inc. (Nasdaq:OLBK), the parent company of Old Line Bank, reported that net income increased $67,495 or 15.17% for the three months ended March 31, 2009 to $512,327 from $444,833 for the three months ended March 31, 2008. After inclusion of the dividends and accretion on the preferred stock issued under the U.S. Treasury Department's Capital Purchase Program in December 2008, net income available to common shareholders for the three month period was $409,755. Earnings per basic and diluted common share were $0.11 for the three months ended March 31, 2009 and 2008. The 15.17% increase in net income for the three month period was primarily the result of an approximately $423,000 increase in net interest income. This increase derived from a $15.7 million or 6.79% increase in net loans during the period as Old Line Bank's net interest margin remained comparable to that reported in 2008. We also had an approximately $160,000 increase in pre-tax earnings from our majority owned subsidiary Pointer Ridge Office Investments, L.L.C. These increases were partially offset by a $261,600 increase in the loan loss provision from $38,400 to $300,000 and increased operating expenses associated with the opening of our College Park and Annapolis branches in 2008. The increase in earnings from Pointer Ridge derived from a non-recurring lease termination fee.
Mr. Cornelsen stated: "I am pleased to report continued profitability during one of the most challenging economic periods in the last thirty years. Although we continue to maintain strong asset quality with only two non-accrual loans totaling $1.5 million, in the current economic climate, we believe it is prudent to increase our loan loss provision. During the period we placed one loan in the amount of approximately $700,000 in non-accrual. We ended the quarter with two non-performing loans totaling approximately $1.5 million or 0.45% of total assets.
In November 2008, we acquired an additional 12.5% membership interest in Pointer Ridge Office Investments, LLC. This purchase increased our ownership percentage in the entity from 50.0% to 62.5%. As a result, we now consolidate their financial results with ours and make the appropriate minority interest adjustments in stockholders' equity." As stated above, the net impact of this investment during the quarter ended March 31, 2009 as compared to the same period in 2008 was a $160,000 increase in pre-tax earnings.
At March 31, 2009, the allowance for loan losses was $2.3 million or 0.92% of gross loans compared to $1.9 million or 0.85% of gross loans at December 31, 2008. Historically, we have had minimal past dues and charge-offs. Based on our history, internal analysis and the satisfactory historical performance of the loan portfolio, we believe this allowance appropriately reflects the inherent risk of loss in our portfolio and the current economic climate.
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 also operates from a branch in Bowie, Maryland, two branches in Waldorf, Maryland, one branch in Annapolis, Maryland and four additional branches in Prince George's County, Maryland. Its primary market area is the suburban Maryland (Washington, D.C. suburbs) counties of Prince George's, Anne Arundel, Charles and northern 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 statement with respect to the adequacy of our loan loss allowance, 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, further deterioration in economic conditions in our target markets or nationally and changes in laws impacting our ability to collect on outstanding loans. 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,
2009 2008
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(Unaudited)
Assets
Cash and due from banks $ 7,053,061 $ 8,823,170
Federal funds sold 111,267 2,140,525
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Total cash and cash equivalents 7,164,328 10,963,695
Time deposits in other banks 11,638,162 13,267,000
Investment securities available for sale 30,869,489 29,565,976
Investment securities held to maturity 7,630,994 8,003,391
Loans, less allowance for loan losses 246,841,748 231,053,618
Restricted equity securities at cost 2,765,650 2,126,550
Bank premises and equipment 12,258,128 12,388,046
Accrued interest receivable 1,126,374 1,091,560
Prepaid income taxes -- 35,649
Bank owned life insurance 8,177,510 8,096,039
Other assets 2,505,564 1,139,101
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Total assets $330,977,947 $317,730,625
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Liabilities and Stockholders' Equity
Deposits
Noninterest-bearing $ 36,403,344 $ 39,880,119
Interest-bearing 203,851,047 191,550,521
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Total deposits 240,254,391 231,430,640
Short-term borrowings 24,661,925 17,773,934
Long-term borrowings 21,510,918 21,531,133
Accrued interest payable 588,637 625,446
Income tax payable 177,349 --
Deferred income taxes 66,614 65,651
Other liabilities 912,396 4,012,968
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Total liabilities 288,172,230 275,439,772
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Stockholders' equity
Preferred stock, par value $0.01 per
share and additional paid in capital;
7,000 shares issued and outstanding 6,718,662 6,703,591
Common stock, par value $0.01 per share;
authorized 15,000,000 shares; issued
and outstanding 3,862,364 in 2009
and 2008 38,624 38,624
Additional paid-in capital 28,909,419 28,838,810
Warrants to purchase 141,892 shares
of common stock 301,434 301,434
Retained earnings 5,705,656 5,411,772
Accumulated other comprehensive income 428,629 392,611
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Total Old Line Bancshares, Inc.
stockholders' equity 42,102,424 41,686,842
Noncontrolling interest 703,293 604,011
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Total equity 42,805,717 42,290,853
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Total liabilities and equity $330,977,947 $317,730,625
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Old Line Bancshares, Inc. & Subsidiaries
Consolidated Statements of Income
2009 2008
Three Months Ended March 31, (Unaudited) (Unaudited)
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Interest revenue
Loans, including fees $3,601,883 $3,503,684
U.S. Treasury securities 4,856 22,487
U.S. government agency securities 102,921 25,532
Mortgage backed securities 267,921 18,059
Municipal securities 22,999 24,917
Federal funds sold 435 126,378
Other 100,933 49,385
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Total interest revenue 4,101,948 3,770,442
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Interest expense
Deposits 1,189,384 1,334,837
Borrowed funds 260,311 206,072
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Total interest expense 1,449,695 1,540,909
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Net interest income 2,652,253 2,229,533
Provision for loan losses 300,000 38,400
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Net interest income after provision
for loan losses 2,352,253 2,191,133
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Non-interest revenue
Service charges on deposit accounts 79,089 72,952
Earnings on bank owned life insurance 93,461 91,603
Income on investment in real estate LLC -- 12,896
Other fees and commissions 431,050 54,987
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Total non-interest revenue 603,600 232,438
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Non-interest expense
Salaries 837,057 734,931
Employee benefits 302,424 269,453
Occupancy 232,181 279,922
Equipment 79,878 70,475
Data processing 75,337 61,252
Other operating 535,253 329,277
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Total non-interest expense 2,062,130 1,745,310
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Income before income taxes 893,723 678,261
Income taxes 282,115 233,428
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Net income 611,608 444,833
Less: Net income attributable to the
noncontrolling interest 99,281 --
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Net income attributable to Old Line
Bancshares, Inc. 512,327 444,833
Preferred stock dividends and accretion 102,572 --
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Net income available to common
shareholders $ 409,755 $ 444,833
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Basic earnings per common share $ 0.11 $ 0.11
Diluted earnings per common share $ 0.11 $ 0.11