Old Line Bancshares, Inc. Reports Strong Organic Loan Growth of 22.65% for the Year and Increased Earnings of 157.9% for the Fourth Quarter Ended December 31, 2013

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| Source: Old Line Bancshares, Inc.

BOWIE, Md., Jan. 27, 2014 (GLOBE NEWSWIRE) -- Old Line Bancshares, Inc. (Nasdaq:OLBK), the parent company of Old Line Bank, reported net income available to common stockholders of $7.8 million for the year ended December 31, 2013. Net income increased $308,000 or 4.10% for the year, compared to net income of $7.5 million for the year ended December 31, 2012. Earnings were $0.87 and $0.86 per basic and diluted common share, respectively, for the year ended December 31, 2013 and $1.10 and $1.09, respectively, per basic and diluted common share in 2012. The increase in net income is primarily the result of a $6.9 million increase in net interest income and a $5.2 million increase in non-interest income, offsetting an increase of $10.9 million in non-interest expense. Non-interest income increased as a result of $3.4 million in gains on the sale of approximately $22.6 million of loans acquired in the Bank's two acquisitions.    

Earnings were $4.4 million, or $0.41 per basic and diluted share, for the three months ended December 31, 2013, compared with $1.7 million or $0.25 per basic and diluted share for the same three month period of 2012. The increase is primarily the result of an increase in non-interest income due to the previously mentioned gain on sale of loans. The $22.6 million of loans sold in the fourth quarter were primarily related to impaired loans acquired from previous mergers with Maryland Bancorp, Inc. and WSB Holdings, Inc. ("WSB"). This disposal was accomplished through brokered sale transactions and included approximately $12.0 million of loans that were over 90 days past due. 

Total assets at December 31, 2013 increased by $305.4 million compared to December 31, 2012. Total net loans increased $20.8 million and $254.1 million, respectively during the three and twelve month periods ended December 31, 2013. The increase in loans during the three month period was primarily attributable to strong organic growth in the loan portfolio. The increase during the twelve month period is a result of organic growth of $134.8 million or 22.65% of total net loans as well as the completion of the merger with WSB Holdings, Inc.

4th QUARTER HIGHLIGHTS:

  • Net income of $4.4 million, or $0.41 per basic and diluted share, was recorded for the three month period ending December 31, 2013 compared to net income of $1.7 million or $0.25 per basic and diluted share for the fourth quarter of 2012, representing an increase of $2.7 million or 157.9%. 
     
  • The net interest margin was 4.64% compared to 4.55% for the same period in 2012. Interest expense on total interest-bearing liabilities decreased to 0.51% for the year ended December 31, 2013 compared to 0.78% for the year ended December 31, 2012. 
     
  • The Company sold approximately $22.6 million in loans classified as held-for-sale and recorded a $3.4 million in gain on sale of loans as described above. 
     
  • Net loans during the three month period grew $20.8 million net of the loan sale, an increase of 2.51%.

2013 FULL YEAR HIGHLIGHTS:

  • The merger with WSB became effective May 10, 2013, causing total assets to grow to $1.2 billion at December 31, 2013 compared to $861.9 million at December 31, 2012. 
     
  • $12.2 million of new capital was successfully raised through a private placement of 936,696 shares of common stock at a price of $13.00 per share. 
     
  • Net loans increased $254.1 million or 42.70% during the twelve months ended December 31, 2013, to $849.3 million at December 31, 2013 compared to $595.1 million at December 31, 2012, as a result of organic growth and the acquisition of WSB. 
     
  • Non-interest bearing deposits increased $39.8 million or 21.09% during the twelve months ending December 31, 2013. Interest bearing deposits increased $199.1 million during the twelve month period compared to the balance at December 31, 2012, primarily as a result of the acquisition of WSB and partially offset by the planned reductions in higher cost deposits. 
     
  • Net income was $7.8 million or $0.87 per basic and $0.86 per diluted share for the year ended December 31, 2013 compared to $7.5 million, or $1.10 per basic and $1.09 per diluted share, for the same period in 2012. 
     
  • For the twelve months ended December 31, 2013, Return on Average Assets (ROAA) and Return on Average Equity (ROAE) were 0.74% and 7.80%, respectively, compared to ROAA and ROAE of 0.90% and 11.17%, respectively, for the twelve months ended December 31, 2012. 
     
  • The net interest margin was 4.53% during 2013 compared to 4.65% for 2012. Re-pricing in the loan portfolio and slightly lower yields on new loans caused the average loan yield to decline. 
     
  • Of note, the Company entered the residential lending business through the WSB acquisition.

The significant increase in net loans for the twelve month period included $134.8 million, or 22.65%, of organic growth and $119.3 million of loans acquired in the WSB transaction. Total net loan growth, exclusive of acquired WSB loans, increased $16.7 million, or 2.81%, in the first quarter, $26.5 million, or 4.34%, in the second quarter, $46 million, or 7.20%, in the third quarter, and $45.6 million or 6.66%, in the fourth quarter. Similarly, deposit growth during the twelve month period was comprised of $56.1 million, or 7.64%, of organic growth and $182.7 million of deposits acquired in the WSB transaction. Deposits increased organically by $13.0 million, or 1.74%, in the first quarter, $24.1 million, or 3.22%, in the second quarter, $784,000, or 0.10%, in the third quarter, and $18.2, or 2.35%, in the fourth quarter.

"During 2013 we took several steps forward toward our goal of becoming the premier community bank in the Metro Washington D.C. market. We successfully completed the merger and integration of The Washington Savings Bank and we entered into the residential lending business in what we believe will be a material new opportunity. We bolstered our capital position through both retained earnings and a strategic stock offering, and also disposed of a significant number of purchased impaired loans. We continued to strengthen our commercial banking team through the acquisition of seasoned new talent and the addition of our new Montgomery County loan production office," stated James W. Cornelsen, President and Chief Executive Officer.  "We look forward to the coming year and are confident that these actions, along with our exceptionally strong organic loan growth, should allow us to continue to build our franchise and enhance our profitability.  We are encouraged by growing visibility and support from institutional investors and analysts, as evidenced by our consistently increasing market capitalization throughout 2013." 

As noted above, the increase in net income for 2013 compared to 2012 was primarily the result of a $6.9 million, or 20.80%, increase in net interest income and a $5.2 million, or 139.21%, increase in non-interest income, partially offset by a $10.9 million increase in non-interest expense. The increase in non-interest expense was mainly attributable to increases in salaries and benefits, merger related expense and occupancy and equipment expenses. Salaries and benefits increased by $4.8 million, or 39.63%, compared to the same period of 2012 primarily as a result of the acquisition of WSB and additions to the commercial lending and cash management teams. Merger and integration expenses increased $3.0 million and were primarily related to legal fees, investment banking fees, and charges associated with the termination of WSB's core data processing contract. The increase in non-interest income of $6.3 million was primarily the result of the $3.4 million gain on sale of impaired loans as mentioned above and the result of the gains of approximately $200 thousand recorded on the residential mortgage loans sold in the secondary market; Old Line Bank did not sell loans in the secondary market prior to its acquisition of this business in the WSB acquisition.

Final conversion of the core processing systems of the WSB merger took place on November 1, 2013. Future merger related costs should be substantially lower than those incurred to date and it is anticipated the WSB merger will be accretive to earnings by the first quarter of 2014. This combination created a $1.2 billion banking institution and has allowed Old Line Bank to expand its financial services with the addition of a successful and growing mortgage origination team. Old Line Bank also anticipates that the acquisition and integration of WSB will enhance the liquidity of its stock as well as overall financial condition and operating performance.

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 23 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 continued profitability and the anticipated effects on us and our stock of our recent merger with WSB, including that the merger will be accretive to earnings by the first quarter of 2014 and anticipated merger costs going forward, 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, that integrating WSB's business into our own could take longer or be more difficult than anticipated, deterioration in economic conditions or a slower than anticipated recovery in our target markets or nationally, sustained high levels of or further 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   
             
  December 31,
2013
September 30,
2013
June 30,
2013
March 31,
2013
December 31,
2012 (1)
 
  (Unaudited) (Unaudited) (Unaudited) (Unaudited)    
Cash and due from banks   $ 28,316,351  $ 49,957,119  $ 50,689,336  $ 37,651,112  $ 28,332,456  
Interest bearing accounts   30,375  30,364  30,352  30,291  130,192  
Federal funds sold   711,574  1,005,491  3,017,257  331,153  228,113  
Total cash and cash equivalents   29,058,300  50,992,974  53,736,945  38,012,556  28,690,761  
Investment securities available for sale   172,169,776  181,527,632  184,190,791  154,081,188  171,541,222  
Loans held for sale   2,014,711  22,584,750  4,764,595  --   --   
Loans held for investment, less allowance for loan losses  847,248,590  805,890,567  787,172,298  611,850,594  595,144,928  
Equity securities at cost   5,669,807  5,850,652  3,709,490  3,174,220  3,615,444  
Premises and equipment   35,215,868  35,520,366  35,313,769  24,912,937  25,133,013  
Accrued interest receivable   3,432,924  3,256,311  3,623,274  2,511,753  2,639,483  
Deferred income taxes   21,868,076  21,451,728  23,111,238  8,015,351  7,139,545  
Bank owned life insurance   30,577,187  30,357,357  30,135,483  16,977,347  16,869,307  
Other real estate owned   4,311,342  5,909,260  5,396,654  2,726,910  3,719,449  
Goodwill   7,793,665  7,793,665  6,847,424  633,790  633,790  
Core deposit intangible   5,287,501  5,518,619  5,749,737  3,513,889  3,691,471  
Other assets   2,575,377  3,059,574  3,332,944  2,575,612  3,038,064  
Total assets   $ 1,167,223,124  $ 1,179,713,455  $ 1,147,084,642  $ 868,986,147  $ 861,856,477  
             
Deposits             
Non-interest bearing   $ 228,733,624  $ 223,503,418  $ 213,570,493  $ 188,172,189  $ 188,895,263  
Interest bearing   745,625,862  761,869,410  781,968,601  560,330,114  546,562,555  
Total deposits   974,359,486  985,372,828  995,539,094  748,502,303  735,457,818  
Short term borrowings   49,530,125  56,204,082  28,818,101  31,510,107  37,905,467  
Long term borrowings   6,093,074  6,118,744  6,142,962  6,166,788  6,192,350  
Accrued interest payable   264,807  250,164  259,847  279,907  311,735  
Accrued pension   4,921,241  4,844,855  4,768,470  4,690,584  4,615,699  
Other liabilities   5,505,073  3,791,019  3,825,204  2,749,707  2,120,247  
Total liabilities   1,040,673,806  1,056,581,692  1,039,353,678  793,899,396  786,603,316  
             
Stockholders' equity             
Common stock   107,772  107,612  98,202  68,538  68,454  
Additional paid-in capital   104,622,171  104,408,960  92,145,572  53,875,593  53,792,015  
Retained earnings   24,879,275  20,882,086  19,066,586  19,543,682  18,531,387  
Accumulated other comprehensive income (loss)   (3,359,823)  (2,628,710)  (3,946,354)  1,220,486  2,469,758  
Total Old Line Bancshares, Inc. stockholders' equity   126,249,395  122,769,948  107,364,006  74,708,299  74,861,614  
Non-controlling interest   299,923  361,815  366,958  378,452  391,547  
Total stockholders' equity   126,549,318  123,131,763  107,730,964  75,086,751  75,253,161  
Total liabilities and
 stockholders' equity 
 $ 1,167,223,124  $ 1,179,713,455  $ 1,147,084,642  $ 868,986,147  $ 861,856,477  
Shares of basic common stock outstanding   10,777,112  10,761,112  9,820,217  6,853,814  6,845,432  
             
 (1) Financial information as of December 31, 2012 has been derived from audited financial statements.     
             
             
Old Line Bancshares, Inc. & Subsidiaries
Consolidated Statements of Income
               
  Three Months
Ended
December 31,
2013
Three Months
Ended
September 30,
2013
Three Months
Ended
June 30,
2013
Three Months
Ended
March 31,
2013
Three Months
Ended
December 31,
2012 (1)
Twelve Months
Ended
December 31,
2013
Twelve Months
Ended
December 31,
2012 (1)
  (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)
Interest income              
Loans, including fees  $ 11,519,191  $ 11,527,459  $ 9,327,905  $ 7,831,823  $ 8,521,466  $ 40,206,378  $ 33,808,739
Investment securities and other  1,060,493  1,031,015  979,699  985,253  1,034,100  4,056,460  4,413,384
Total interest income  12,579,684  12,558,474  10,307,604  8,817,076  9,555,566  44,262,838  38,222,123
Interest expense              
Deposits  923,039  970,911  964,955  857,139  963,334  3,716,044  4,235,107
Borrowed funds  122,522  111,728  139,472  112,487  190,310  486,209  822,518
Total interest expense  1,045,561  1,082,639  1,104,427  969,626  1,153,644  4,202,253  5,057,625
Net interest income  11,534,123  11,475,835  9,203,177  7,847,450  8,401,922  40,060,585  33,164,498
Provision for loan losses  514,190  590,000  200,000  200,000  400,000  1,504,190  1,525,000
Net interest income after provision for loan losses  11,019,933  10,885,835  9,003,177  7,647,450  8,001,922  38,556,395  31,639,498
Non-interest income              
Service charges on deposit accounts  472,945  466,571  367,674  300,741  318,250  1,607,931  1,281,187
Gain on sales or calls of investment securities  --   --   9,659  631,429  307,242  641,088  1,156,781
Earnings on bank owned life insurance  252,265  253,894  200,641  133,228  136,171  840,028  548,454
Losses on disposal of assets  --   --   (19,078)  (85,561)  --   (104,639)  -- 
Gain on sale of loans  3,601,972  236,167  51,890  --   --   3,890,029  -- 
Other fees and commissions  852,470  594,324  301,268  247,683  182,450  1,995,745  721,688
Total non-interest income  5,179,652  1,550,956  912,054  1,227,520  944,113  8,870,182  3,708,110
Non-interest expense              
Salaries & employee benefits  4,668,944  4,684,407  4,031,892  3,232,677  3,188,366  16,617,920  12,038,509
Occupancy & Equipment  1,513,265  1,556,221  1,214,947  1,068,867  931,197  5,353,300  3,687,419
Pension plan termination  --   --   --   --   700,884    700,884
Data processing  393,863  459,973  329,878  239,057  238,830  1,422,771  869,984
Merger and integration  349,028  143,082  2,786,350  240,485  363,375  3,518,945  470,999
Core deposit amortization  231,119  231,118  198,875  177,582  177,582  838,694  727,422
(Gains)losses on sales other real estate owned  (210,665)  11,072  (145,795)  200,454  --   (144,934)  (110,704)
OREO expense  210,122  159,234  154,908  314,165  124,167  838,429  591,347
Other operating  2,284,281  2,017,902  1,723,373  1,606,608  1,531,026  7,632,164  6,185,963
Total non-interest expense  9,439,957  9,263,009  10,294,428  7,079,895  7,255,427  36,077,289  25,161,823
               
Income (loss) before income taxes  6,759,628  3,173,782  (379,197)  1,795,075  1,690,608  11,349,288  10,185,785
Income tax (benefit) expense  2,393,268  970,510  (283,417)  521,722  (18,808)  3,602,083  2,720,446
Net income (loss)  4,366,360  2,203,272  (95,780)  1,273,353  1,709,416  7,747,205  7,465,339
Less: Net (loss) attributable to the noncontrolling interest  (61,892)  (5,142)  (11,495)  (13,095)  (7,447)  (91,624)  (65,125)
Net income (loss) available to common stockholders  $ 4,428,252  $ 2,208,414  $ (84,285)  $ 1,286,448  $ 1,716,863  $ 7,838,829  $ 7,530,464
Earnings (loss) per basic share  $ 0.41  $ 0.22  $ (0.01)  $ 0.19  $ 0.25  $ 0.87  $ 1.10
Earnings (loss) per diluted share  $ 0.41  $ 0.22  $ (0.01)  $ 0.19  $ 0.25  $ 0.86  $ 1.09
Dividend per common share  $ 0.04  $ 0.04  $ 0.04  $ 0.04  $ 0.04  $ 0.16  $ 0.16
Average number of basic shares  10,768,104  10,004,138  8,505,016  6,848,505  6,834,665  9,044,944  6,828,512
Average number of dilutive shares  10,891,654  10,117,380  8,609,164  6,950,749  6,929,296  9,149,200  6,893,645
               
(1) Financial information as of December 31, 2012 has been derived from audited financial statements.  
 
 
Old Line Bancshares, Inc. & Subsidiaries
Average Balances, Interest and Yields
                     
  12/31/2013 9/30/2013 6/30/2013 3/31/2013 12/31/2012  
  Average
Balance

Yield
Average
Balance

Yield
Average
Balance

Yield
Average
Balance

Yield
Average
Balance

Yield
Assets:                    
Int. Bearing Deposits  $ 2,903,193 0.11%  $ 2,997,163 0.09%  $ 6,978,382 0.11%  $ 1,870,920 0.15%  $ 10,506,932 0.20%
Investment Securities  188,455,728 2.82%  193,421,563 2.70%  180,559,860 2.81%  168,672,425 3.06%  177,162,367 2.88%
Loans  837,359,182 5.54%  817,877,455 5.67%  721,222,893 5.28%  605,701,991 5.35%  587,421,759 5.86%
Allowance for Loan Losses  (4,609,398)    (4,353,910)    (4,164,025)    (4,058,816)    (4,186,009)  
Total Loans                    
Net of allowance  832,749,784 5.57%  813,523,545 5.71%  717,058,868 5.31%  601,643,175 5.39%  583,235,750 5.90%
Total interest-earning assets  1,024,108,705 5.05%  1,009,942,271 5.11%  904,597,110 4.77%  772,186,520 4.87%  770,905,049 5.15%
Noninterest bearing cash  38,364,347    40,562,522    45,762,911    25,465,996    30,544,104  
Other Assets  111,316,325    113,104,275    85,200,150    62,206,398    61,756,948  
Total Assets  $ 1,173,789,377    $ 1,163,609,068    $ 1,035,560,171    $ 859,858,914    $ 863,206,101  
                     
Liabilities and Stockholders' Equity                    
                     
Interest-bearing Deposits  $ 754,128,604 0.49%  $ 770,907,260 0.50%  $ 686,544,106 0.56%  $ 552,649,682 0.63%  $ 551,598,937 0.69%
Borrowed Funds  53,222,290 0.91%  41,022,029 1.08%  41,494,215 1.35%  40,335,859 1.13%  35,952,280 2.10%
Total interest-bearing liabilities  807,350,894 0.51%  811,929,289 0.53%  728,038,321 0.61%  592,985,541 0.66%  587,551,217 0.78%
Noninterest bearing deposits  228,810,018    226,431,720    205,050,472    187,697,564    197,676,047  
   1,036,160,912    1,038,361,009    933,088,793    780,683,105    785,227,264  
                     
Other Liabilities  8,360,917    7,569,553    6,624,502    6,909,547    7,600,642  
Noncontrolling Interest  300,800    363,349    369,671    387,467    392,942  
Stockholder's Equity  128,966,748    117,315,157    95,477,205    71,878,795    69,985,253  
Total Liabilities and Stockholder's Equity  $ 1,173,789,377    $ 1,163,609,068    $ 1,035,560,171    $ 859,858,914    $ 863,206,101  
                     
Net interest spread   4.54%   4.58%   4.16%   4.21%   4.37%
Net interest income and Net interest margin(1)  $ 11,986,354 4.64%  $ 11,933,938 4.69%  $ 9,657,000 4.28%  $ 8,299,213 4.36%  $ 8,818,546 4.55%
                     
(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 positively impacted the yield on loans and increased the net interest margin in each of these three month periods as follows:
                     
  12/31/2013 9/30/2013 6/30/2013 3/31/2013 12/31/2012
 

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)  $ 102  0.00%  $ 14,763  0.01%  $ 38,933  0.02%  $ 209,144  0.11%  $ 38,783  0.02%
Mortgage loans (1)  1,322,480  0.51  1,221,653  0.48  173,261  0.07  (4,500)  (0.00)  819,028  0.42
Consumer loans  7,821  0.00  6,032  0.00  2,876  0.00  2,371  0.00  2,188  0.00
Interest bearing deposits  164,527  0.06  178,556  0.07  85,046  0.05  33,461  0.02  33,379  0.02
Total Fair Value Accretion  $ 1,494,930  0.57%  $ 1,421,004  0.56%  $ 300,116  0.14%  $ 240,476  0.13%  $ 893,378  0.46%
                     
(1) Reclassification of a single loan from mortgage loans to commercial loans during the period caused the negative amortization in mortgage loans during the first quarter of 2013, The impact of this reclassification was immaterial in prior periods.
                     
Below is a reconciliation of the fully tax equivalent adjustments and the GAAP basis information presented in this report:
                     
  12/31/2013 9/30/2013 6/30/2013 3/31/2013 12/31/2012
  Net Interest
Income

Yield
Net Interest
Income

Yield
Net Interest
Income

Yield
Net Interest
Income

Yield
Net Interest
Income

Yield
GAAP net interest income  $ 11,534,123  4.46%  $ 11,475,835  4.51%  $ 9,203,177  4.08%  $ 7,847,450  4.12%  $ 8,401,922  4.34%
Tax equivalent adjustment                    
Federal funds sold  --   --   --   --   1  0.00  2  0.00  1  0.00
Investment securities  282,137  0.11  286,755  0.11  285,049  0.13  287,612  0.15  258,483  0.13
Loans  170,094  0.07  171,348  0.07  168,773  0.07  164,149  0.09  158,140  0.08
Total tax equivalent adjustment  452,231  0.18  458,103  0.18  453,823  0.20  451,763  0.24  416,624  0.22
Tax equivalent interest yield  $ 11,986,354  4.64%  $ 11,933,938  4.69%  $ 9,657,000  4.28%  $ 8,299,213  4.36%  $ 8,818,546  4.55%
 
 
Old Line Bancshares, Inc. & Subsidiaries
Selected Loan Information
(Dollars in thousands)
  December 31,
2013
September 30,
2013
June 30,
2013
March 31,
2013
December 31,
2012
Acquired Loans(1)          
Non-accrual(2)  $ 663  $ --   $ --   $ 4,064  $ 4,092
Accruing 30-89 days past due  3,198  2,985  6,965  802  602
Accruing 90 or more days past due(4)  --   2,434  15,251  --   6
           
Legacy Loans(3)          
Non-accrual  $ 8,156  $ 1,870  $ 1,889  $ 1,388  $ 1,818
Accruing 30-89 days past due  1,574  2,292  2,607  2,077  1,799
Accruing 90 or more days past due  2  1,951  --   --   -- 
           
Allowance for loan losses as % of held for investment loans 0.58% 0.55% 0.54% 0.66% 0.66%
Allowance for loan losses as % of legacy loans 0.67% 0.77% 0.83% 0.84% 0.85%
Total non-performing loans as a % of held for investment loans 1.84% 0.77% 2.18% 0.89% 0.99%
Total non-performing assets as a % of total assets 1.34% 1.03% 1.96% 0.94% 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.
(4)  Previously reported non-accrual loans have been reclassified due to the accretion of income and are reported on a past due basis.
OLD LINE BANCSHARES, INC.
MARK SEMANIE
ACTING CHIEF FINANCIAL OFFICER
(301) 430-2508