Old Line Bancshares, Inc. (NASDAQ:OLBK) Files An 8-K Regulation FD DisclosureItem 7.01 Regulation FD Disclosure
Set forth below is certain financial information relating to Bay Bancorp, Inc.’s financial results for the three-month periods ended March 31, 2018, March 31, 2017 and December 31, 2017. Bay Bancorp, Inc. the parent company of Bay Bank, FSB, merged with and into Old Line Bancshares, Inc. on April 13, 2018.
As discussed in Bay Bancorp, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2017, filed with the Securities Exchange Commission on March 28, 2018, Bay Bancorp, Inc.’s results of operations were primarily determined by the difference between interest income earned on its interest-earning assets, primarily interest and fee income on loans, and interest paid on its interest-bearing liabilities, including deposits and borrowings.
The following tables present Bay Bancorp, Inc.’s consolidated financial statements as of and for the periods ended March 31, 2018, March 31, 2017 and December 31, 2017.
OLD LINE BANK -BAY BANCORP, INC. AND SUBSIDIARY
BALANCE SHEET
| March 31, 2018 | March 31, 2017 | December 31, 2017 | ||||
| (unaudited) | (unaudited) | |||||
| ASSETS | ||||||
| Cash and due from banks | $ | 5,743,130 | $ | 5,981,700 | $ | 9,316,482 |
| Interest bearing deposits with banks and federal funds sold | 19,399,765 | 36,822,634 | 22,249,796 | |||
| Total cash and cash equivalents | 25,142,895 | 42,804,334 | 31,566,278 | |||
| Investment securities available for sale, at fair value | 53,165,939 | 64,455,088 | 55,814,216 | |||
| Investment securities held to maturity, at amortized cost | 1,051,172 | 1,137,200 | 1,073,107 | |||
| Restricted equity securities, at cost | 1,986,900 | 2,322,295 | 1,302,295 | |||
| Loans held for sale | (682 | ) | 848,975 | 1,097,160 | ||
| Loans, net of deferred fees and costs | 549,795,955 | 495,236,254 | 542,250,292 | |||
| Allowance for loan losses | (4,390,882 | ) | (3,159,769 | ) | (4,156,425 | ) |
| Loans, net | 545,405,073 | 492,076,485 | 538,093,867 | |||
| Real estate acquired through foreclosure | 1,041,079 | 564,678 | 991,615 | |||
| Premises and equipment, net | 3,182,327 | 3,835,945 | 3,306,025 | |||
| Bank owned life insurance | 16,319,198 | 15,844,759 | 16,205,352 | |||
| Core deposit intangibles | 2,067,197 | 2,794,844 | 2,241,127 | |||
| Deferred tax assets, net | 2,081,388 | 2,890,703 | 1,806,352 | |||
| Accrued interest receivable | 2,163,473 | 1,921,253 | 2,176,359 | |||
| Accrued taxes receivable | 2,007,484 | 660,993 | 2,469,620 | |||
| Prepaid expenses | 611,248 | 972,721 | 604,381 | |||
| Other assets | 215,102 | 220,864 | 225,170 | |||
| Total assets | $ | 656,439,793 | $ | 633,351,137 | $ | 658,972,924 |
| LIABILITIES | ||||||
| Noninterest-bearing deposits | $ | 128,241,325 | $ | 112,411,693 | $ | 134,617,261 |
| Deposits interest bearing | 419,019,509 | 413,390,788 | 438,137,299 | |||
| Total deposits | 547,260,834 | 525,802,481 | 572,754,560 | |||
| Short-term borrowings | 32,800,000 | 34,000,000 | 10,000,000 | |||
| Defined benefit pension liability | 639,756 | 964,334 | 612,112 | |||
| Accrued expenses and other liabilities | 2,938,490 | 5,302,656 | 3,730,123 | |||
| Total liabilities | 583,639,080 | 566,069,471 | 587,096,795 | |||
| STOCKHOLDERS' EQUITY | ||||||
| Common stock | 10,703,181 | 10,543,862 | 10,667,227 | |||
| Additional paid-in capital | 41,852,652 | 41,187,024 | 41,692,751 | |||
| Retained earnings | 20,565,404 | 15,383,778 | 19,180,657 | |||
| Accumulated other comprehensive income | (320,524 | ) | 167,002 | 335,494 | ||
| Total stockholders' equity | 72,800,713 | 67,281,666 | 71,876,129 | |||
| Total liabilities and equity | $ | 656,439,793 | $ | 633,351,137 | $ | 658,972,924 |
| OLD LINE BANK -BAY BANCORP, INC. AND SUBSIDIARY | Three Months Ended | |||||
| INCOME STATEMENT | March 31, 2018 | March 31, 2017 | December 31, 2017 | |||
| (unaudited) | (unaudited) | (unaudited) | ||||
| Interest income | ||||||
| Interest and fees on loans | $ | 6,896,027 | $ | 5,920,144 | $ | 6,907,484 |
| Interest on loans held for sale | 4,864 | 6,882 | 11,003 | |||
| Interest and dividends on securities | 360,615 | 350,885 | 373,084 | |||
| Interest on deposits with banks and federal funds sold | 88,556 | 77,675 | 101,566 | |||
| Total interest income | 7,350,062 | 6,355,586 | 7,393,137 | |||
| Interest expense | ||||||
| Interest on deposits | 526,677 | 455,850 | 576,999 | |||
| Interest on federal funds purchased | – | – | – | |||
| Interest on short-term borrowings | 129,876 | 60,204 | 66,812 | |||
| 656,553 | 516,054 | 643,811 | ||||
| Net interest income | 6,693,509 | 5,839,532 | 6,749,326 | |||
| Provision for loan losses | 300,000 | 440,521 | 380,176 | |||
| Net interest income after provision | 6,393,509 | 5,399,011 | 6,369,150 | |||
| Noninterest income | ||||||
| Payment sponsorship fees | 726,420 | 656,192 | 771,209 | |||
| Mortgage banking fees and gains | 15,677 | 182,944 | 62,019 | |||
| Service charges on deposit accounts | 110,318 | 62,633 | 97,868 | |||
| Bargain purchase gain | – | – | – | |||
| (Loss) gain on securities | – | 5,521 | – | |||
| Other noninterest income | 118,025 | 419,074 | 322,545 | |||
| Total operating income | 970,440 | 1,326,364 | 1,253,641 | |||
| Noninterest expenses | ||||||
| Salaries and employee benefits | 3,306,174 | 2,857,244 | 3,434,189 | |||
| Occupancy and equipment expenses | 620,228 | 757,645 | 724,716 | |||
| Data processing fees | 402,496 | 327,794 | 376,914 | |||
| Legal, accounting and other professional fees | 247,389 | 232,955 | 104,105 | |||
| Advertising and marketing related expenses | 36,589 | 24,320 | 127,760 | |||
| FDIC insurance expenses | 75,051 | 65,014 | 56,113 | |||
| Foreclosed property expenses and REO sales, net | 24,938 | 16,859 | 27,686 | |||
| Loan collection expenses | 7,953 | 34,666 | 19,965 | |||
| Core deposit intangible amortization | 173,929 | 235,465 | 173,929 | |||
| Merger related expenses | 57,825 | 149,543 | 289,512 | |||
| Other noninterest expenses | 461,848 | 480,057 | 618,539 | |||
| Total operating expenses | 5,414,420 | 5,181,562 | 5,953,428 | |||
| Net income before taxes | 1,949,529 | 1,543,813 | 1,669,363 | |||
| Income tax expense | 564,782 | 587,005 | 1,208,880 | |||
| Net income | $ | 1,384,747 | $ | 956,808 | $ | 460,483 |
| Weighted average shares | ||||||
| Basic | 10,672,603 | 10,502,387 | 10,667,227 | |||
| Diluted | 10,749,974 | 10,652,651 | 10,781,805 | |||
| Earnings per share available to common shareholders | ||||||
| Basic | $ | 0.13 | $ | 0.09 | $ | 0.04 |
| Diluted | $ | 0.13 | $ | 0.09 | $ | 0.04 |
| OLD LINE BANK -BAY BANCORP, INC. AND SUBSIDIARY | ||||||
| SELECTED FINANCIAL DATA | ||||||
| Three Months Ended | ||||||
| March 31, 2018 | March 31, 2017 | December 31, 2017 | ||||
| (unaudited) | (unaudited) | (unaudited) | ||||
| Consolidated Income Statement Data: | ||||||
| Interest income | $ | 7,350,062 | $ | 6,355,586 | $ | 7,393,137 |
| Interest expense | 656,553 | 516,054 | 643,811 | |||
| Net interest income | 6,693,509 | 5,839,532 | 6,749,326 | |||
| Provision for loan losses | 300,000 | 440,521 | 380,176 | |||
| Net interest income after provision for loan losses | 6,393,509 | 5,399,011 | 6,369,150 | |||
| Other noninterest income | 970,440 | 1,326,364 | 1,253,641 | |||
| Merger related expense | 57,825 | 149,543 | 289,512 | |||
| Other noninterest expenses | 5,356,595 | 5,032,019 | 5,663,916 | |||
| Income before income taxes | 1,949,529 | 1,543,813 | 1,669,363 | |||
| Income tax expense | 564,782 | 587,005 | 1,208,880 | |||
| Net income | $ | 1,384,747 | $ | 956,808 | $ | 460,483 |
| 1,384,747 | 956,808 | 460,483 | ||||
| – | – | – | ||||
| Shares outstanding and per share data: | ||||||
| Average shares outstanding | 10,672,603 | 10,502,387 | 10,667,227 | |||
| Diluted average shares outstanding | 10,749,974 | 10,652,651 | 10,781,805 | |||
| Number of shares outstanding, at end of period | 10,703,181 | 10,543,862 | 10,667,227 | |||
| Dividends declared per common share | $ | – | $ | – | $ | – |
| Financial Data: | ||||||
| Assets | $ | 656,439,793 | $ | 633,351,137 | $ | 658,972,924 |
| Investment securities | 56,204,011 | 67,914,583 | 58,189,618 | |||
| Loans (net of deferred fees and costs) | 549,795,955 | 495,236,254 | 542,250,292 | |||
| Allowance for loan losses | (4,390,882 | ) | (3,159,769 | ) | (4,156,425 | ) |
| Deposits | 547,260,834 | 525,802,481 | 572,754,560 | |||
| Borrowings | 32,800,000 | 34,000,000 | 10,000,000 | |||
| Equity attributable to common shareholders | 72,800,713 | 67,281,666 | 71,876,129 | |||
| Net income | 1,384,747 | 956,808 | 460,483 | |||
| Average Balances: (unaudited) | ||||||
| Assets | 658,201,858 | 617,613,946 | 642,531,387 | |||
| Investment securities | 58,042,830 | 62,069,734 | 60,211,519 | |||
| Loans (net of deferred fees and costs) | 545,236,889 | 490,288,543 | 528,707,904 | |||
| Borrowings | 31,488,889 | 23,779,661 | 22,206,557 | |||
| Deposits | 551,599,642 | 520,795,226 | 549,819,040 | |||
| Stockholders' equity | 71,457,442 | 66,063,753 | 67,396,179 | |||
| Performance Ratios: | ||||||
| Annualized return on average assets | 0.85 | % | 0.63 | % | 0.28 | % |
| Annualized return on average equity | 7.86 | % | 5.87 | % | 2.71 | % |
| Yield on average interest-earning assets | 4.63 | % | 4.41 | % | 4.74 | % |
| Rate on average interest-bearing liabilities | 0.57 | % | 0.48 | % | 0.57 | % |
| Net interest spread | 4.06 | % | 3.93 | % | 4.17 | % |
| Net interest margin | 4.21 | % | 4.05 | % | 4.33 | % |
| Book value per share | $ | 6.80 | $ | 6.38 | $ | 6.74 |
| Basic net income per share | 0.13 | 0.09 | 0.04 | |||
| Diluted net income per share | 0.13 | 0.09 | 0.04 |
About Old Line Bancshares, Inc. (NASDAQ:OLBK)
Old Line Bancshares, Inc. is the holding company of Old Line Bank (The Bank). The Bank is a chartered trust company engaged in commercial banking business, making various types of loans, investments and accepting deposits. It markets its financial services to small to medium sized businesses, entrepreneurs, professionals, consumers and clients. The Bank, through its division Old Line Financial Services, provides retirement planning and products, as well as investment services. Its lending activities consists of short to medium term commercial business loans, commercial real estate loans, real estate construction loans, home equity loans and consumer installment loans, both secured and unsecured. The Bank monitors its investment portfolio and it usually classifies investments in the portfolio as available for sale. It offers a range of deposit products that include demand, negotiable order of withdrawal (NOW), money market and savings accounts, as well as certificates of deposit.
