Maryland
|
20-0154352
|
|
(State
or other jurisdiction of
|
(I.R.S.
Employer
|
|
incorporation
or organization)
|
Identification
No.)
|
|
Yes
|
X
|
No
|
Old
Line Bancshares, Inc. & Subsidiary
Consolidated
Balance Sheets
|
|||||||
Assets
|
|||||||
June
30,
2006
|
December
31,
2005
|
||||||
(Unaudited)
|
|||||||
Cash
and due from banks
|
$
|
5,816,308
|
$
|
4,387,676
|
|||
Federal
funds sold
|
28,292,642
|
35,573,704
|
|||||
Total
cash and cash equivalents
|
34,108,950
|
39,961,380
|
|||||
Investment
securities available for sale
|
13,655,640
|
13,926,111
|
|||||
Investment
securities held to maturity
|
2,802,792
|
2,203,445
|
|||||
Loans,
less allowance for loan losses
|
130,339,151
|
104,249,383
|
|||||
Restricted
equity securities at cost
|
1,530,550
|
1,102,750
|
|||||
Investment
in real estate, LLC
|
-
|
837,436
|
|||||
Bank
premises and equipment
|
9,631,299
|
2,436,652
|
|||||
Accrued
interest receivable
|
610,121
|
504,299
|
|||||
Deferred
income taxes
|
272,622
|
200,663
|
|||||
Bank
owned life insurance
|
3,390,580
|
3,324,660
|
|||||
Other
assets
|
201,625
|
281,045
|
|||||
$
|
196,543,330
|
$
|
169,027,824
|
||||
Liabilities
and Stockholders' Equity
|
|||||||
Deposits
|
|||||||
Non-interest-bearing
|
$
|
36,200,947
|
$
|
30,417,858
|
|||
Interest
bearing
|
97,624,852
|
89,253,741
|
|||||
Total
deposits
|
133,825,799
|
119,671,599
|
|||||
Short-term
borrowings
|
18,005,160
|
9,292,506
|
|||||
Long-term
borrowings
|
8,950,076
|
6,000,000
|
|||||
Accrued
interest payable
|
400,398
|
336,868
|
|||||
Income
tax payable
|
120,375
|
86,151
|
|||||
Other
liabilities
|
345,688
|
124,873
|
|||||
161,647,496
|
135,511,997
|
||||||
Minority
interest
|
837,190
|
-
|
|||||
Stockholders'
equity
|
|||||||
Common
stock, par value $0.01 per share, authorized 15,000,000 shares
in
2006
and 5,000,000 shares in 2005; issued and outstanding 4,250,098.5
in
2006 and 4,248,898.5 in 2005
|
42,501
|
42,489
|
|||||
Additional
paid-in capital
|
31,805,555
|
31,735,627
|
|||||
Retained
earnings
|
2,548,770
|
1,992,301
|
|||||
34,396,826
|
33,770,417
|
||||||
Accumulated
other comprehensive income
|
(338,182
|
)
|
(254,590
|
)
|
|||
34,058,644
|
33,515,827
|
||||||
$
|
196,543,330
|
$
|
169,027,824
|
Old
Line Bancshares, Inc. & Subsidiary
|
|||||||||||||
Consolidated
Statements of Income
|
|||||||||||||
(Unaudited)
|
|||||||||||||
Three
Months Ended
June
30,
|
Six
Months Ended
June
30,
|
||||||||||||
|
2006
|
|
2005
|
|
2006
|
|
2005
|
||||||
Interest
revenue
|
|||||||||||||
Loans,
including fees
|
$
|
2,106,543
|
$
|
1,354,841
|
$
|
3,950,716
|
$
|
2,588,137
|
|||||
U.S.
Treasury securities
|
31,764
|
31,764
|
63,339
|
63,339
|
|||||||||
U.S.
government agency securities
|
58,813
|
58,570
|
117,377
|
119,363
|
|||||||||
Mortgage
backed securities
|
16,674
|
22,009
|
34,069
|
45,969
|
|||||||||
Tax
exempt securities
|
28,315
|
28,825
|
56,092
|
57,668
|
|||||||||
Federal
funds sold
|
380,634
|
109,608
|
761,967
|
180,989
|
|||||||||
Other
|
19,817
|
11,072
|
38,747
|
24,827
|
|||||||||
Total
interest revenue
|
2,642,560
|
1,616,689
|
5,022,307
|
3,080,292
|
|||||||||
Interest
expense
|
|||||||||||||
Deposits
|
722,063
|
395,349
|
1,350,115
|
739,195
|
|||||||||
Borrowed
funds
|
130,378
|
75,571
|
228,941
|
142,511
|
|||||||||
Total
interest expense
|
852,441
|
470,920
|
1,579,056
|
881,706
|
|||||||||
Net
interest income
|
1,790,119
|
1,145,769
|
3,443,251
|
2,198,586
|
|||||||||
Provision
for loan losses
|
140,000
|
75,000
|
270,000
|
125,000
|
|||||||||
Net
interest income after provision for loan losses
|
1,650,119
|
1,070,769
|
3,173,251
|
2,073,586
|
|||||||||
Non-interest
revenue
|
|||||||||||||
Service
charges on deposit accounts
|
71,047
|
60,751
|
128,354
|
117,503
|
|||||||||
Marine
division broker origination fees
|
67,432
|
25,057
|
191,783
|
25,057
|
|||||||||
Other
fees and commissions
|
73,106
|
38,801
|
143,569
|
120,158
|
|||||||||
Total
non-interest revenue
|
211,585
|
124,609
|
463,706
|
262,718
|
|||||||||
Non-interest
expenses
|
|||||||||||||
Salaries
|
668,205
|
421,373
|
1,274,811
|
830,010
|
|||||||||
Employee
benefits
|
165,577
|
74,985
|
345,773
|
147,656
|
|||||||||
Occupancy
|
64,510
|
53,400
|
130,727
|
108,981
|
|||||||||
Equipment
|
33,752
|
26,950
|
64,610
|
53,243
|
|||||||||
Data
processing
|
37,347
|
31,637
|
74,708
|
63,083
|
|||||||||
Other
operating
|
286,012
|
209,598
|
571,313
|
405,549
|
|||||||||
Total
non-interest expenses
|
1,255,403
|
817,943
|
2,461,942
|
1,608,522
|
|||||||||
Minority
interest
|
246
|
-
|
246
|
-
|
|||||||||
Income
before income taxes
|
606,547
|
377,435
|
1,175,261
|
727,782
|
|||||||||
Income
taxes
|
199,805
|
134,750
|
385,066
|
258,298
|
|||||||||
Net
Income
|
$
|
406,742
|
$
|
242,685
|
$
|
790,195
|
$
|
469,484
|
|||||
Basic
earnings per common share
|
$
|
0.10
|
$
|
0.11
|
$
|
0.19
|
$
|
0.22
|
|||||
Diluted
earnings per common share
|
$
|
0.10
|
$
|
0.11
|
$
|
0.19
|
$
|
0.22
|
Old
Line Bancshares, Inc. & Subsidiary
|
|||||||||||||||||||
Consolidated
Statement of Changes in Stockholders' Equity
|
|||||||||||||||||||
(Unaudited)
|
|||||||||||||||||||
Accumulated
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
Additional
|
|
|
|
other
|
|
|
|
||||||
|
|
Common
stock
|
|
|
|
paid-in
|
|
Retained
|
|
comprehensive
|
|
Comprehensive
|
|
||||||
|
|
Shares
|
|
Par
value
|
|
capital
|
|
earnings
|
|
income
(loss)
|
|
income
|
|||||||
Balance,
December 31, 2005
|
4,248,898.5
|
$
|
42,489
|
$
|
31,735,627
|
$
|
1,992,301
|
$
|
(254,590
|
)
|
|||||||||
Capital
Offering (2005)
|
-
|
-
|
(1,891
|
)
|
-
|
-
|
|||||||||||||
Net
income
|
-
|
-
|
-
|
790,195
|
-
|
$
|
790,195
|
||||||||||||
Unrealized
(loss) on securities available
|
|||||||||||||||||||
for
sale, net of income taxes of $52,596
|
-
|
-
|
-
|
-
|
(83,592
|
)
|
(83,592
|
)
|
|||||||||||
Comprehensive
income
|
$
|
706,603
|
|||||||||||||||||
Stock
based compensation awards
|
-
|
-
|
59,032
|
-
|
-
|
||||||||||||||
Cash
dividend $0.055 per share
|
-
|
-
|
-
|
(233,726
|
)
|
-
|
|||||||||||||
Stock
options exercised, including tax
benefit
of $1,008
|
1,200
|
12
|
12,787
|
-
|
-
|
||||||||||||||
Balance,
June 30, 2006
|
4,250,098.5
|
$
|
42,501
|
$
|
31,805,555
|
$
|
2,548,770
|
$
|
(338,182
|
)
|
Old
Line Bancshares, Inc. & Subsidiary
|
|||||||
Consolidated
Statements of Cash Flows
|
|||||||
(Unaudited)
|
|||||||
Six
months ended
|
|||||||
June
30,
|
|||||||
2006
|
|
2005
|
|||||
Cash
flows from operating activities
|
|||||||
Interest
received
|
$
|
5,019,416
|
$
|
2,983,285
|
|||
Fees
and commissions received
|
397,786
|
262,718
|
|||||
Interest
paid
|
(1,515,526
|
)
|
(810,830
|
)
|
|||
Cash
paid to suppliers and employees
|
(2,025,486
|
)
|
(1,505,344
|
)
|
|||
Income
taxes paid
|
(369,197
|
)
|
(424,799
|
)
|
|||
1,506,993
|
505,030
|
||||||
Cash
flows from investing activities
|
|||||||
Purchase
of investment securities
|
|||||||
Held
to maturity
|
(599,758
|
)
|
-
|
||||
Proceeds
from disposal of investment securities
|
|||||||
Available
for sale at maturity or call
|
133,342
|
904,964
|
|||||
Loans
made, net of principal collected
|
(26,461,347
|
)
|
(9,855,285
|
)
|
|||
Purchase
of equity securities
|
(427,800
|
)
|
(47,800
|
)
|
|||
Investment
in bank owned life insurance (BOLI)
|
-
|
(3,250,000
|
)
|
||||
Investment/consolidation
of real estate, LLC
|
1,674,380
|
-
|
|||||
Redemption
of certificates of deposit
|
-
|
300,000
|
|||||
Purchase
of premises and equipment and software
|
(7,271,344
|
)
|
(113,656
|
)
|
|||
|
(32,952,527
|
)
|
(12,061,777
|
)
|
|||
Cash
flows from financing activities
|
|||||||
Net
increase (decrease) in
|
|||||||
Time
deposits
|
10,877,473
|
8,035,628
|
|||||
Other
deposits
|
3,276,727
|
8,991,199
|
|||||
Net
change in borrowed funds
|
11,662,730
|
4,239,783
|
|||||
Proceeds
from stock options exercised
|
11,791
|
59,235
|
|||||
Proceeds
from (costs of) stock offering
|
(1,891
|
)
|
-
|
||||
Dividends
paid
|
(233,726
|
)
|
(105,158
|
)
|
|||
25,593,104
|
21,220,687
|
||||||
Net
increase (decrease) in cash and cash equivalents
|
(5,852,430
|
)
|
9,663,940
|
||||
Cash
and cash equivalents at beginning of period
|
39,961,380
|
9,320,643
|
|||||
Cash
and cash equivalents at end of period
|
$
|
34,108,950
|
$
|
18,984,583
|
Old
Line Bancshares, Inc. & Subsidiary
|
|||||||
Consolidated
Statements of Cash Flows
|
|||||||
(Unaudited)
|
|||||||
(Continued)
|
|||||||
Six
months ended
|
|||||||
June
30,
|
|||||||
2006
|
|
2005
|
|||||
|
|||||||
Reconciliation
of net income to net cash
|
|||||||
provided
by operating activities
|
|||||||
Net
income
|
$
|
790,195
|
$
|
469,484
|
|||
Adjustments
to reconcile net income to net
|
|||||||
cash
provided by operating actitivities
|
|||||||
Depreciation
and amortization
|
85,572
|
73,942
|
|||||
Provision
for loan losses
|
270,000
|
125,000
|
|||||
Change
in deferred loan fees net of costs
|
101,579
|
(47,237
|
)
|
||||
Amortization
of premiums and discounts
|
1,352
|
2,861
|
|||||
Deferred
income taxes
|
(19,363
|
)
|
(23,286
|
)
|
|||
Stock
based compensation awards
|
59,032
|
-
|
|||||
Increase
(decrease) in
|
|||||||
Accrued
interest payable
|
63,530
|
70,876
|
|||||
Other
liabilities
|
256,047
|
(99,819
|
)
|
||||
Decrease
(increase) in
|
|||||||
Accrued
interest receivable
|
(105,822
|
)
|
(52,631
|
)
|
|||
Bank
owned life insurance
|
(65,920
|
)
|
-
|
||||
Other
assets
|
70,791
|
(14,224
|
)
|
||||
$
|
1,506,993
|
$
|
504,966
|
Three
Months Ended
|
|
Six
Months Ended
|
|
||||||||||
|
|
June
30,
|
|
June
30,
|
|
||||||||
|
|
2006
|
|
2005
|
|
2006
|
|
2005
|
|||||
Weighted
average number of shares
|
4,249,478.72
|
2,144,042.92
|
4,249,190.21
|
2,140,149.29
|
|||||||||
Dilutive
average number of shares
|
19,676.00
|
27,772.00
|
21,811.00
|
31,454.00
|
Number
of
Shares
|
|
Weighted
Average
exercise
price
|
|||||
Outstanding,
beginning of year
|
172,620
|
$
|
8.60
|
||||
Options
granted
|
-
|
-
|
|||||
Options
exercised
|
(1,200
|
)
|
9.83
|
||||
Options
expired
|
-
|
-
|
|||||
Outstanding,
June 30, 2006
|
171,420
|
$
|
8.60
|
||||
Exercisable
& weighted average price
|
115,047
|
$
|
7.77
|
Three
Months Ended
|
|
Six
Months Ended
|
|
||||
|
|
June
30,
|
|
June
30,
|
|
||
|
|
2005
|
|
2005
|
|||
Net
income
|
|||||||
As
reported
|
$
|
242,685
|
$
|
469,484
|
|||
Stock
-based employee compensation expense
|
(3,283
|
)
|
(6,566
|
)
|
|||
Income
tax benefit of employee compensation expense
|
1,268
|
2,536
|
|||||
Pro
forma
|
$
|
240,670
|
$
|
465,454
|
|||
Basic
earnings per share
|
|||||||
As
reported
|
$
|
0.11
|
$
|
0.22
|
|||
Pro
forma
|
0.11
|
0.22
|
|||||
Diluted
earnings per share
|
|||||||
As
reported
|
$
|
0.11
|
$
|
0.22
|
|||
Pro
forma
|
0.11
|
0.21
|
· |
On
July 10, 2006, we moved to our new headquarters location in Bowie,
Maryland.
|
· |
In
July, we opened our fifth branch location in Bowie,
Maryland.
|
· |
While
our staff and Board of Directors continued to develop and establish
significant customer relationships, the College Park loan production
office continued to make a significant contribution to our loan and
deposit growth.
|
· |
The
marine division remained profitable on a year to date basis, providing
an
approximately $15,000 positive impact on income before taxes, and
continued to expand its geographic market focus. We anticipate this
division will have a modest, positive impact on net income for the
year.
|
Three
months ended June 30,
|
2006
|
|
2005
|
|
$
Change
|
|
%
Change
|
||||||
Income
Statement Data (000's):
|
|||||||||||||
Net
income
|
$
|
407
|
$
|
243
|
$
|
164
|
67.49
|
%
|
|||||
Interest
revenue
|
2,643
|
1,617
|
1,026
|
63.45
|
%
|
||||||||
Interest
expense
|
852
|
471
|
381
|
80.89
|
%
|
||||||||
Net
interest income after
provision
for loan losses
|
1,650
|
1,071
|
579
|
54.06
|
%
|
||||||||
Non-interest
revenue
|
212
|
125
|
87
|
69.60
|
%
|
||||||||
Non-interest
expense
|
1,255
|
818
|
437
|
53.42
|
%
|
||||||||
Earnings
Per Share
|
|||||||||||||
Earnings
per share, basic
|
0.10
|
0.11
|
(0.01
|
)
|
(9.09
|
%)
|
|||||||
Earnings
per share, diluted
|
0.10
|
0.11
|
(0.01
|
)
|
(9.09
|
%)
|
Six
months ended June 30,
|
2006
|
|
2005
|
|
Change
|
|
%
Change
|
||||||
Income
Statement Data (000's):
|
|||||||||||||
Net
income
|
$
|
790
|
$
|
469
|
$
|
321
|
68.44
|
%
|
|||||
Interest
revenue
|
5,022
|
3,080
|
1,942
|
63.05
|
%
|
||||||||
Interest
expense
|
1,579
|
882
|
697
|
79.02
|
%
|
||||||||
Net
interest income after
provision
for loan losses
|
3,173
|
2,074
|
1,099
|
52.99
|
%
|
||||||||
Non-interest
revenue
|
464
|
263
|
201
|
76.43
|
%
|
||||||||
Non-interest
expense
|
2,462
|
1,609
|
853
|
53.01
|
%
|
||||||||
Average
interest earning assets
|
163,904
|
116,125
|
47,779
|
41.14
|
%
|
||||||||
Average
gross loans
|
113,382
|
84,548
|
28,834
|
34.10
|
%
|
||||||||
Average
interest bearing deposits
|
92,769
|
71,381
|
21,388
|
29.96
|
%
|
||||||||
Average
non interest bearing deposits
|
34,291
|
26,499
|
7,792
|
29.40
|
%
|
||||||||
Interest
Margin(1)
|
4.30
|
%
|
3.88
|
%
|
|||||||||
Return
on average equity
|
4.68
|
%
|
6.94
|
%
|
|||||||||
Earnings
Per Share
|
|||||||||||||
Earnings
per share, basic
|
$
|
0.19
|
$
|
0.22
|
(0.03
|
)
|
(13.64
|
%)
|
|||||
Earnings
per share, diluted
|
0.19
|
0.22
|
(0.03
|
)
|
(13.64
|
%)
|
(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 securities.
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.”
|
Average
Balances, Interest, and Yields
|
|||||||||||||||||||
For
the Six Months Ended June 30,
|
|
||||||||||||||||||
|
|
2006
|
|
2005
|
|
||||||||||||||
|
|
Average
Balance
|
|
Interest
|
|
Yield
|
|
Average
Balance
|
|
Interest
|
|
Yield
|
|||||||
Assets:
|
|||||||||||||||||||
Federal
funds sold(1)
|
$
|
32,982,867
|
$
|
781,907
|
4.78
|
%
|
$
|
13,370,288
|
$
|
183,003
|
2.76
|
%
|
|||||||
Interest-bearing
deposits
|
3,536
|
23
|
1.30
|
115,470
|
2,124
|
3.71
|
|||||||||||||
Investment
Securities (1)
(2)
|
|||||||||||||||||||
U.S.
Treasury
|
4,000,251
|
66,407
|
3.35
|
4,000,450
|
66,407
|
3.35
|
|||||||||||||
U.S.
Agency
|
7,398,297
|
123,062
|
3.35
|
7,475,004
|
125,145
|
3.38
|
|||||||||||||
Mortgage-backed
securities
|
1,733,894
|
34,069
|
3.96
|
2,346,376
|
45,969
|
3.95
|
|||||||||||||
Tax
exempt securities
|
3,382,629
|
79,282
|
4.73
|
3,514,248
|
84,485
|
4.85
|
|||||||||||||
Other
|
1,327,265
|
39,436
|
5.99
|
1,570,276
|
23,251
|
2.99
|
|||||||||||||
Total
investment securities
|
17,842,336
|
342,256
|
3.87
|
18,906,354
|
345,257
|
3.68
|
|||||||||||||
Loans:
(3)
|
|||||||||||||||||||
Commercial
|
22,697,353
|
937,335
|
8.33
|
11,961,409
|
424,702
|
7.16
|
|||||||||||||
Mortgage
|
68,095,417
|
2,428,314
|
7.19
|
50,693,693
|
1,595,463
|
6.35
|
|||||||||||||
Installment
& other consumer
|
22,589,417
|
585,067
|
5.22
|
21,892,481
|
567,972
|
5.23
|
|||||||||||||
Total
gross loans
|
113,382,187
|
3,950,716
|
7.03
|
84,547,583
|
2,588,137
|
6.17
|
|||||||||||||
Allowance
for loan losses
|
1,142,108
|
815,014
|
|||||||||||||||||
Total
loans, net of allowance
|
112,240,079
|
3,950,716
|
7.10
|
83,732,569
|
2,588,137
|
6.23
|
|||||||||||||
Total
interest-earning assets(1)
|
163,068,818
|
5,074,902
|
6.28
|
116,124,681
|
3,118,521
|
5.42
|
|||||||||||||
Non-interest-bearing
cash
|
3,904,316
|
2,920,219
|
|||||||||||||||||
Premises
and equipment
|
7,347,990
|
2,378,415
|
|||||||||||||||||
Other
assets
|
5,661,513
|
1,187,000
|
|||||||||||||||||
Total
Assets
|
$
|
179,982,637
|
$
|
122,610,315
|
|||||||||||||||
Liabilities
and Stockholders' Equity:
|
|||||||||||||||||||
Interest-bearing
deposits
|
|||||||||||||||||||
Savings
|
$
|
8,149,794
|
29,197
|
0.72
|
%
|
$
|
10,199,443
|
24,117
|
0.48
|
%
|
|||||||||
Money
market and NOW
|
22,218,212
|
149,533
|
1.36
|
18,892,714
|
58,426
|
0.62
|
|||||||||||||
Other
time deposits
|
62,401,003
|
1,171,385
|
3.79
|
42,289,229
|
656,652
|
3.13
|
|||||||||||||
Total
interest-bearing deposits
|
92,769,009
|
1,350,115
|
2.93
|
71,381,386
|
739,195
|
2.09
|
|||||||||||||
Borrowed
funds
|
17,266,332
|
228,941
|
2.67
|
10,580,445
|
142,511
|
2.72
|
|||||||||||||
Total
interest-bearing liabilities
|
110,035,341
|
1,579,056
|
2.89
|
81,961,831
|
881,706
|
2.17
|
|||||||||||||
Non
interest-bearing deposits
|
34,291,269
|
26,498,670
|
|||||||||||||||||
144,326,610
|
108,460,501
|
||||||||||||||||||
Other
liabilities
|
750,107
|
510,334
|
|||||||||||||||||
Minority
interest
|
837,887
|
-
|
|||||||||||||||||
Stockholders'
equity
|
34,068,033
|
13,639,480
|
|||||||||||||||||
Total
liabilities and stockholders' equity
|
$
|
179,982,637
|
$
|
122,610,315
|
|||||||||||||||
Net
interest spread(1)
|
3.39
|
%
|
3.25
|
%
|
|||||||||||||||
Net
interest income(1)
|
$
|
3,495,846
|
4.32
|
%
|
$
|
2,236,815
|
3.88
|
%
|
(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 securities. 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.
|
(3) |
We
had no non-accruing loans for the periods
presented.
|
Six
months ended June 30,
|
||||||||||
2006
compared to 2005
|
||||||||||
Variance
due to:
|
||||||||||
Total
|
|
Rate
|
|
Volume
|
||||||
Earning
Assets:
|
||||||||||
Federal
funds sold(1)
|
$
|
598,904
|
$
|
330,475
|
$
|
268,429
|
||||
Interest
bearing deposits
|
(2,101
|
)
|
(42
|
)
|
(2,059
|
)
|
||||
Investment
Securities(1)
|
||||||||||
U.S.
Treasury
|
-
|
3
|
(3
|
)
|
||||||
U.S.
Agency
|
(2,083
|
)
|
(799
|
)
|
(1,284
|
)
|
||||
Mortgage-backed
securities
|
(11,900
|
)
|
109
|
(12,009
|
)
|
|||||
Tax
exempt securities
|
(5,203
|
)
|
(2,040
|
)
|
(3,163
|
)
|
||||
Other
|
16,185
|
30,837
|
(14,652
|
)
|
||||||
Loans:
|
||||||||||
Commercial
|
512,633
|
131,445
|
381,188
|
|||||||
Mortgage
|
832,851
|
284,888
|
547,963
|
|||||||
Installment
& other consumer
|
17,095
|
(980
|
)
|
18,075
|
||||||
Total
interest revenue(1)
|
1,956,381
|
773,896
|
1,182,485
|
|||||||
Interest-bearing
liabilities:
|
||||||||||
Savings
|
5,080
|
9,958
|
(4,878
|
)
|
||||||
Money
market and NOW
|
91,107
|
80,883
|
10,224
|
|||||||
Other
time deposits
|
514,733
|
202,571
|
312,162
|
|||||||
Borrowed
funds
|
86,430
|
(3,751
|
)
|
90,181
|
||||||
Total
interest expense
|
697,350
|
289,661
|
407,689
|
|||||||
Net
interest income(1)
|
$
|
1,259,031
|
$
|
484,235
|
$
|
774,796
|
Allowance
for Loan Losses
|
||||||||||
Six
Months Ended
|
|
Year
Ended
|
|
|||||||
|
|
June
30,
|
|
December
31,
|
|
|||||
|
|
2006
|
|
2005
|
|
2005
|
||||
Balance,
beginning of period
|
$
|
954,706
|
$
|
744,862
|
$
|
744,862
|
||||
Provision
for loan losses
|
270,000
|
125,000
|
204,000
|
|||||||
Chargeoffs:
|
||||||||||
Commercial
|
(658
|
)
|
-
|
-
|
||||||
Mortgage
|
-
|
-
|
-
|
|||||||
Installment
& other consumer
|
(2,027
|
)
|
(135
|
)
|
(135
|
)
|
||||
Total
chargeoffs
|
(2,685
|
)
|
(135
|
)
|
(135
|
)
|
||||
Recoveries:
|
||||||||||
Commercial
|
-
|
2,997
|
2,997
|
|||||||
Mortgage
|
-
|
-
|
-
|
|||||||
Installment
& other consumer
|
354
|
457
|
2,982
|
|||||||
Total
recoveries
|
354
|
3,454
|
5,979
|
|||||||
Net
(chargeoffs) recoveries
|
(2,331
|
)
|
3,319
|
5,844
|
||||||
Balance,
end of period
|
$
|
1,222,375
|
$
|
873,181
|
$
|
954,706
|
||||
Allowance
for loan losses to gross loans
|
0.93
|
%
|
0.95
|
%
|
0.91
|
%
|
||||
Ratio
of net-chargeoffs (recoveries) during
period
to average loans outstanding
during
period
|
0.000
|
%
|
(0.004
|
%)
|
(0.006
|
%)
|
Allocation
of Allowance for Loan Losses
|
|||||||||||||||||||
June
30,
|
|
December
31,
|
|
||||||||||||||||
|
|
2006
|
|
2005
|
|
2005
|
|
||||||||||||
|
|
Amount
|
|
%
of Loans
in
Each
Category
|
|
Amount
|
|
%
of Loans
in
Each
Category
|
|
Amount
|
|
%
of Loans
in
Each
Category
|
|||||||
Installment
& other con.
|
$
|
8,098
|
0.52
|
%
|
$
|
6,624
|
0.59
|
%
|
$
|
6,995
|
0.57
|
%
|
|||||||
Boat
|
144,487
|
15.99
|
163,432
|
24.63
|
148,045
|
21.22
|
|||||||||||||
Mortgage
|
692,166
|
63.10
|
456,095
|
60.39
|
483,245
|
60.21
|
|||||||||||||
Commercial
|
377,624
|
20.39
|
247,030
|
14.39
|
316,421
|
18.00
|
|||||||||||||
Total
|
$
|
1,222,375
|
100.00
|
%
|
$
|
873,181
|
100.00
|
%
|
$
|
954,706
|
100.00
|
%
|
Loan
Portfolio
|
|||||||||||||
(Dollars
in thousands)
|
|||||||||||||
June
30,
2006
|
December
31,
2005
|
||||||||||||
Real
Estate
|
|||||||||||||
Commercial
|
$
|
65,589
|
49.95
|
%
|
$
|
48,530
|
46.29
|
%
|
|||||
Construction
|
6,289
|
4.79
|
4,823
|
4.60
|
|||||||||
Residential
|
10,971
|
8.36
|
9,767
|
9.32
|
|||||||||
Commercial
|
26,766
|
20.39
|
18,871
|
18.00
|
|||||||||
Installment
& other consumer
|
21,677
|
16.51
|
22,842
|
21.79
|
|||||||||
131,292
|
100.00
|
%
|
104,833
|
100.00
|
%
|
||||||||
Allowance
for loan losses
|
(1,222
|
)
|
(955
|
)
|
|||||||||
Net
deferred loan (fees) and costs
|
269
|
371
|
|||||||||||
$
|
130,339
|
$
|
104,249
|
June
30,
2006
|
|
December
31,
2005
|
|||||
|
|||||||
Commitments
to extend credit and available credit lines:
|
|||||||
Commercial
|
$
|
8,963
|
$
|
5,225
|
|||
Real
estate-undisbursed development and construction
|
11,836
|
13,921
|
|||||
Real
estate-undisbursed home equity lines of credit
|
4,733
|
4,886
|
|||||
|
$
|
25,532
|
$
|
24,032
|
|||
Standby
letters of credit
|
$
|
1,701
|
$
|
1,807
|
Six
months ended June 30, 2006
|
||||||||||||||||
Federal
Funds
Sold
|
Investment
Securities
|
Interest
Earning
Assets
|
Net
Interest
Income
|
Net
Interest
Spread
|
||||||||||||
GAAP
interest income
|
$
|
761,967
|
$
|
309,601
|
$
|
5,022,307
|
$
|
3,443,251
|
||||||||
Tax
equivalent adjustment
|
19,940
|
32,655
|
52,595
|
52,595
|
||||||||||||
Tax
equivalent interest income
|
$
|
781,907
|
$
|
342,256
|
$
|
5,074,902
|
$
|
3,495,846
|
||||||||
GAAP
interest yield
|
4.68
|
%
|
3.50
|
%
|
6.21
|
%
|
4.26
|
%
|
3.32
|
%
|
||||||
Taxable
equivalent adjustment
|
0.10
|
%
|
0.37
|
%
|
0.07
|
%
|
0.06
|
%
|
0.07
|
%
|
||||||
Tax
equivalent interest yield
|
4.78
|
%
|
3.87
|
%
|
6.28
|
%
|
4.32
|
%
|
3.39
|
%
|
Six
months ended June 30, 2005
|
||||||||||||||||
|
||||||||||||||||
Federal
Funds
Sold
|
Investment
Securities
|
Interest
Earning
Assets
|
Net
Interest
Income
|
Net
Interest
Spread
|
||||||||||||
GAAP
interest income
|
$
|
180,989
|
$
|
309,042
|
$
|
3,080,292
|
$
|
2,198,586
|
||||||||
Tax
equivalent adjustment
|
2,014
|
36,215
|
38,229
|
38,229
|
||||||||||||
Tax
equivalent interest income
|
$
|
183,003
|
$
|
345,257
|
$
|
3,118,521
|
$
|
2,236,815
|
||||||||
GAAP
interest yield
|
2.73
|
%
|
3.30
|
%
|
5.36
|
%
|
3.82
|
%
|
3.19
|
%
|
||||||
Taxable
equivalent adjustment
|
0.03
|
%
|
0.38
|
%
|
0.06
|
%
|
0.06
|
%
|
0.06
|
%
|
||||||
Tax
equivalent interest yield
|
2.76
|
%
|
3.68
|
%
|
5.42
|
%
|
3.88
|
%
|
3.25
|
%
|
For
|
Withheld
|
Total
|
|
Charles
A. Bongar
|
3,769,389
|
7,473
|
3,776,862
|
Nancy
L. Gasparovic
|
3,769,299
|
7,563
|
3,776,862
|
Frank
Lucente, Jr.
|
3,768,072
|
8,790
|
3,776,862
|
For
|
Withheld
|
Total
|
|
3,768,039
|
8,823
|
3,776,862
|
For
|
Against
|
Abstain
|
Broker
Non-Votes
|
Total
|
3,319,495
|
441,318
|
16,047
|
0
|
3,776,860
|
For
|
Against
|
Abstain
|
Broker
Non-Votes
|
Total
|
3,531,105
|
135,737
|
110,020
|
0
|
3,776,862
|
For
|
Against
|
Abstain
|
Broker
Non-Votes
|
Total
|
||
3,563,467
|
9,545
|
203,850
|
0
|
3,776,862
|
10.35
|
Amendment
of Lease Agreement dated July 5, 2006 between Ridgley I, LLC
and Old Line
Bank to the Lease entered into July 7, 2004.
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Old
Line Bancshares, Inc.
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Date:
August 10, 2006
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By:
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/s/
James W. Cornelsen
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James
W. Cornelsen, President
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(Principal
Executive Officer)
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Date:
August 10, 2006
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By:
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/s/
Christine M. Rush
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Christine
M. Rush, Chief Financial Officer
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(Principal
Accounting and Financial Officer)
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