Kroll Bond Rating Agency Assigns Senior Unsecured and Short-Term Debt Ratings of BBB/K3 to Old Line Bancshares, Inc.

Kroll Bond Rating Agency (KBRA) has assigned a senior unsecured debt rating of BBB, subordinated debt rating of BBB-, and short-term debt rating of K3 to Bowie, Maryland based Old Line Bancshares, Inc. (NASDAQ: OLBK or “the Company”). Moreover, KBRA has assigned deposit and senior unsecured debt ratings of BBB+, and short-term debt and deposit ratings of K2 to the subsidiary bank, Old Line Bank (“the Bank”). The outlook on all long-term ratings is stable.

The ratings are supported by Old Line Bank’s experienced management team, above average net interest margin, as well as relatively strong performance during the financial downturn and prudent credit underwriting practices. The ratings are constrained by the Bank’s high concentration of commercial real estate loans in the lending portfolio, relatively lower capital levels compared to the average of KBRA rated peers, spread reliant revenue stream, comparatively weak efficiency ratio, although reflective of recent acquisition activities, and compact geographic footprint.

The ratings are based on KBRA’s Global Bank and Bank Holding Company Rating Methodology published on February 19, 2016.

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About Kroll Bond Rating Agency

KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).

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