Old Line Bancshares, Inc. Reports a 13.37 Percent Increase in Three Month Net Income Available to Common Stockholders

BOWIE, Md., April 28, 2010 (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 available to common stockholders increased $54,779 or 13.37% for the three month period ended March 31, 2010 as compared to the three months ended March 31, 2009. Earnings per basic and diluted common share were $0.12 for the three months ended March 31, 2010 and $0.11 for the same period in 2009. Net interest income increased $489,403 (18.45%) primarily as result of a $28.6 million increase in average total loans outstanding and improvement in the net interest margin for the three months ended March 31, 2010 relative to the three months ended March 31, 2009. As a result of continued improvement in the economy and because our asset quality remained relatively stable, we decreased the provision for loans losses $230,000 from $300,000 for the three months ended March 31, 2009 to $70,000 for the three months ended March 31, 2010. Non-interest revenue declined $310,711 compared to the same period last year. During the first three months of 2009, Pointer Ridge Office Investment, LLC produced approximately $405,000 in rental income that is included in other fees and commissions. Approximately $300,000 of that amount derived from a non-recurring lease termination fee. During the same period in 2010, we received approximately $64,000 in rental income from Pointer Ridge. The absence of the lease termination fee in 2010 and the subsequent loss of an additional tenant in the building owned by Pointer Ridge were the major causes of the decline in non-interest revenue. Primarily as a result of the opening of our Crofton and Fairwood Office Park branch locations in July and October 2009, respectively, and increased FDIC insurance premiums, non-interest expense increased $632,652 from $2.1 million in the 2009 period to $2.7 million in the 2010 period. During 2009, we repurchased from the U.S. Treasury the 7,000 shares of preferred stock that we issued to the U.S. Treasury as part of the Troubled Asset Relief Program. As a result of this repurchase, we no longer pay dividends on the preferred stock. This also contributed to the increase in net income available to common stockholders for the three month period and the increase in earnings per common and diluted share. 

Mr. Cornelsen stated: "I am pleased to report strong earnings for the first quarter of 2010 and look forward to the remainder of the year ahead. In an extremely challenging economic environment during 2009 and the first three months of 2010, we worked diligently towards our goal of becoming the premier community bank east of Washington, D.C. While it remains uncertain whether the economy will continue on its path towards recovery, it appears the economy may reach a sustainable recovery during late 2010 or early 2011 and we remain cautiously optimistic that our borrowers will continue to stay current on their loans. Now that we have substantially completed our branch expansion, enhanced our data processing capabilities and expanded our commercial lending team, we believe that we are well positioned to capitalize on the opportunities that may become available in a healthy economy. Our asset quality remains strong. We have three non-accrual loans totaling $1.5 million and one property in other real estate owned in the amount of $223,169. On March 31, 2010, total non-performing assets were $1.7 million or 0.45% of total assets."

At March 31, 2010 and December 31, 2009, the allowance for loan losses was $2.5 million or 0.93% of gross loans. Based on our history, internal analysis and the satisfactory historical performance of the loan portfolio, we believe the allowance continues to appropriately reflect 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, one branch in Crofton, Maryland and five 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 statements with respect to the adequacy of our loan loss allowance, that our borrowers will continue to perform and that we are well positioned to capitalize on opportunities that may become available 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, continued increases in the unemployment rate in our target markets, and changes in laws impacting our ability to collect on outstanding loans or otherwise negatively impact our business. 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.