EX-99.1 2 ex99-1.htm EXHIBIT 99.1 ex99-1.htm
 
Exhibit 99.1
 
James W. Cornelsen
President & CEO
Mark A. Semanie
Executive Vice President, COO & CFO
NASDAQ: OLBK
2nd Annual DC Field Trip
Sponsored By Sandler O’Neill
June 11, 2013
 
 
 
OLBK - 6/2013
OLD LINE BANCSHARES, INC | 2
 This presentation includes forward-looking statements, including statements about future
results. These statements are subject to uncertainties and risks, including but not limited to our
ability to integrate acquisitions; the strength of the U.S. economy and the local economies where
we conduct operations; harsh weather conditions; fluctuations in inflation, interest rates, or
monetary policies; changes in the stock market and other capital and real estate markets;
legislative or regulatory changes; customer acceptance of third-party products and services;
increased competition and its effect on pricing; technological changes; security breaches and
computer viruses that may affect our computer systems; changes in consumer spending and
savings habits; our growth and profitability; changes in accounting; and our ability to manage the
risks involved in the foregoing. These factors, as well as additional factors, can be found in our
Annual Report on Form 10-K for the fiscal year ended December 31, 2012 along with our other
filings with the SEC, which are available at the SEC’s internet site (http://www.sec.gov). Actual
results may differ materially from projections and could be affected by a variety of factors,
including factors beyond our control. Forward-looking statements in this presentation speak only
as of the date of these materials, and we assume no obligation to update forward-looking
statements or the reasons why actual results could differ. In addition, this presentation includes
certain non-GAAP financial measures.
Forward-Looking Statement
 
 
 
OLBK - 6/2013
OLD LINE BANCSHARES, INC | 3
OLBK Corporate Overview
§ 5th largest MD-headquartered independent banking company
 traded on a major exchange with $1.2 billion total assets, $124.3M
 market capitalization, 23 branch locations*
§ Primary market area is suburban Maryland - (Washington, D.C.
 suburbs and Southern Maryland). Also targets customers
 throughout the greater Washington, D.C. metropolitan area
§ We operate in the best strategic, natural submarkets within
 footprint with population growth rates & per capita income above
 national averages - bedroom communities for both Washington
 and Baltimore
§ We operate Loan Production Offices in seven locations
§ We have been an acquirer (2 completed) and will continue to seek
 logical acquisitions
§ 29.84% Insider/Stakeholder and Board ownership; 18.33%
 institutional & .82% mutual fund ownership*
*Source: SNL Financial, Inc. as of 05/20/2013
 
 
 
OLBK - 6/2013
OLD LINE BANCSHARES, INC | 4
Vision
Grow Old Line Bancshares’ position
as the community bank of choice and
the employer of choice
across our Maryland-based footprint.
 
 
 
OLBK - 6/2013
OLD LINE BANCSHARES, INC | 5
Presentation Agenda
1. Market Analysis
2. Financial Performance Highlights
3. Key Strategic Goals
4. Compelling Investment Considerations
 
 
 
OLD LINE BANCSHARES, INC | 6
OLBK - 6/2013
95
70
PENNSYLVANIA
495
95
66
83
MD
2
495
695
Old Line Bank branch (23)
ANNE
ARUNDEL
PRINCE
GEORGE’S
ST.
MARY’S
CHARLES
Old Line Bank Branch Map
 
 
 
OLD LINE BANCSHARES, INC | 7
OLBK - 6/2013
 
As of March 31, 2013
 
 
Old Line
WSB
Combined
 
Deposits
Branches
Deposits
Branches
Deposits
Branches
County
($mm)
(#)
($mm)
(#)
($mm)
(#)
Prince George’s
346
7
79
1
425
8
Charles
226
4
69
1
295
5
Saint Mary’s
116
3
-
-
116
3
Anne Arundel
32
2
75
3
107
5
Calvert
28
2
 -
 -
28
2
 Total
748
18
223
5
971
23
Logical In-Market Consolidation
95
70
PENNSYLVANIA
495
95
66
83
MD
2
495
695
Old Line Bank
 
Source: Internal Data
 
 
 
OLD LINE BANCSHARES, INC | 8
OLBK - 6/2013
Selected OLBK Market Highlights
§ Household income for entire franchise is $78,182 vs. $50,157 for the U.S.
§ Projected HH income growth rate (2012-2017) is 13.37% across franchise.
§ Projected 5-year population growth rate (2012-2017) in overall market = 3.86%.
§ OLBK deposit market rank/share by county (2012):
 Maryland Rank Share # Branches
 Prince George’s #6 5.43% 8
 Charles #3 16.00% 5
 Saint Mary’s  #4  8.41% 3
 Anne Arundel #13 1.15% 5
 Calvert  #8 2.69% 2
Source: SNL Financial, Inc.
 
 
 
OLD LINE BANCSHARES, INC | 9
OLBK - 6/2013
 
2008
2009
2010
2011
2012
Total Assets (000)
$317,731
$357,219
$401,910
$811,042
$861,856
Total Loans, net (000)
$231,054
$265,009
$299,606
$539,298
$595,145
Total Deposits (000)
$231,431
$286,348
$340,527
$690,768
$735,458
Return on Average Assets
0.64%
0.62%
0.36%
0.77%
0.90%
Return on Average Equity
5.03%
 5.35%
3.87%
9.03%
10.52%
Total Equity/Total Assets
13.31%
10.25%
9.37%
8.45%
8.75%
Tangible Equity/Tangible Assets
13.31%
10.25%
9.37%
7.87%
8.29%
Total Risk-Based Capital Ratio
17.40%
13.70%
 12.40%
11.26%
11.40%
Net Interest Margin
3.78%
3.75%
3.83%
4.59%
4.63%
Efficiency Ratio
69.87%
69.19%
71.72%
64.27%
60.51%
Nonperforming Assets/Assets(1)
.27%
.60%
1.12%
1.87%
1.26%
Old Line Bancshares, Inc.
(1)Nonperforming assets (NPAs) include non-accrual loans, 90 days past due and still accruing loans, accruing
 troubled debt restructurings, and net other real estate and other assets owned.
Year-End Highlights
 Source: SNL
Financial, Inc.
 
 
 
OLD LINE BANCSHARES, INC | 10
OLBK - 6/2013
Loan Composition
Deposit Composition
Loans and Deposits
(As of 03/31/13)
Source: FFIEC Call Report
 
 
 
OLD LINE BANCSHARES, INC | 11
OLBK - 6/2013
Credit Composition & Quality
Loan Portfolio Composition (As of 03/31/13)
 
Balance
Percent
Residential Mortgages
 
 
 Construction
13,154
2.14
 Permanent
102,809
16.69
 
 
 
Total Mortgage Loans
115,963
18.83
 
 
 
Commercial Loans
 
 
 Owner Occupied R/E
158,995
25.82
 Non-Owner Occupied R/E
182,943
29.70
 Farmland
1,380
0.22
 Construction and Land Development
45,110
7.32
 Business Loans and Lines
81,395
13.22
 
 
 
Total Commercial Loans
469,823
76.28
 
 
 
Consumer Loans
 
 
 Home Equity Lines
19,232
3.12
 Personal Lines
70
0.01
 Installment
9,180
1.49
 Credit Cards
1,635
0.27
 
 
 
Total Consumer Loans
30,117
4.89
 
 
 
Total Loans
615,903
100.00
Dollars in thousands. Source: FFIEC Call Report
 
 
 
OLD LINE BANCSHARES, INC | 12
OLBK - 6/2013
Credit Composition & Quality
Dollars in thousands. (1)Non-performing assets include loans 90+ days past due, non-accruals and OREO.
 
2Q2011
3Q2011
4Q2011
1Q2012
2Q2012
3Q2012
4Q2012
 
1Q2013
 
Percent of
Total NPAs
Residential Mortgages
 
 
 
 
 
 
 
 
 
 Construction
 
-
 
-
 
-
 
 242
 
 242
 
242
 
242
 
 242
 
 2.96
 
 Permanent
 
2,814
4,072
1,945
1,298
1,499
2,838
3,261
3,214
39.30
Total Mortgage Loans
2,814
4,072
1,945
1,540
1,741
3,080
3,503
3,456
42.26
 
 
 
 
 
 
 
 
 
 
Commercial Loans
 
 
 
 
 
 
 
 
 
 Owner Occupied R/E
 
225
225
1,091
2,267
2,262
2,257
771
341
4.17
 Non-owner Occupied R/E
 
1,050
946
75
427
427
427
426
500
6.11
 Construction and Land
 Development
1,840
1,490
2,628
2,151
2,883
1,394
300
300
3.67
 Business Loans and
 Lines
 
636
78
90
261
259
1,153
910
855
10.45
Total Commercial Loans
3,751
2,739
3,884
5,106
5,831
5,231
2,407
1,996
24.40
 
 
 
 
 
 
 
 
 
 
Consumer Loans
-
-
34
-
1
2
6
0
.00
 
 
 
 
 
 
 
 
 
 
Other Real Estate Owned
3,949
4,126
4,005
3,919
3,491
3,231
3,720
2,727
33.34
 
 
 
 
 
 
 
 
 
 
Total Nonperforming
Assets (1)
10,514
10,937
9,868
10,565
11,064
11,544
9,636
8,179
100.00
 
 
 
 
 
 
 
 
 
 
NPAs/Total Assets (1)
1.38
1.39
1.22
1.32
1.31
1.35
1.13
1.03
 
Source: FFIEC Call Reports
 
 
 
OLD LINE BANCSHARES, INC | 13
OLBK - 6/2013
Historically, OLBK’s asset quality has been strong.
Credit Composition & Quality
 
2008
2009
2010
2011
2012
 NPAs & 90+ days Past
 Due/Assets
.27
.60
1.12
1.87
1.26
 
 
 
 
 
 
Nonperforming Loans/Loans
(1)
.37
.80
1.11
2.06
1.19
 
 
 
 
 
 
Reserves/Gross Loans
.85
.93
.82
.69
.66
 
 
 
 
 
 
Reserves/Nonperforming
Loans
 233.14
116.20
73.56
33.51
55.82
 
 
 
 
 
 
Net Charge-offs/Average
Loans
.01
.16
.38
.11
.23
Source: SNL Financial, Inc.
(1)Non-performing loans include loans 90+ days past due, non-accruals and accruing troubled debt restructurings.
 
 
 
OLD LINE BANCSHARES, INC | 14
OLBK - 6/2013
Dollars in thousands.
Quarterly Financial Trends
 
 
2Q11
3Q11
4Q11
1Q12
2Q12
3Q12
4Q12

1Q13
 
Net Interest Income
7,471
8,345
7,700
7,762
8,464
8,537
8,402
7,847
Provision for Credit Losses
50
800
800
375
375
375
400
200
Non-interest Income
747
676
657
667
710
633
642
717
Non-interest Income - Non-
Recurring
-
222
-
-
-
-
7
(86)
Non-interest Expense
5,788
6,030
5,410
5,689
6,029
6,081
6,191
6,839
Non-interest Expense - Non-
Recurring
377
78
29
29
29
49
1,064
240
Net Income (Loss) before Taxes
1,773
2,407
2,143
2,580
2,995
2,920
1,691
1,795
Applicable Income Taxes
656
737
198
844
983
912
(19)
522
Net Income (Loss)
1,117
1,670
1,945
1,736
2,012
2,008
1,709
1,273
Net Income (Loss) Available to
Common Stockholders
1,183
1,707
1,967
1,756
2,029
2,028
1,717
1,286
EPS - Net Income (Loss)
Available to Common
Stockholders
.17
.25
.29
.26
.29
.29
.25
.19
Net Interest Margin
4.63
5.04
4.46
4.46
4.79
4.72
4.55
4.28
Efficiency Ratio (GAAP)
66.71
 63.95
59.98
63.00
63.70
58.26
57.28
70.92
Non-interest Income/Operating
Revenue (GAAP)
9.24
7.43
7.84
7.91
7.74
6.90
7.10
8.37
Return on Average Assets
.60
.87
.97
.86
.97
.93
.79
.59
Return on Average Equity
6.97
10.78
11.55
10.64
12.02
11.71
9.77
7.05
Source: SNL Financial, Inc.
 
 
 
OLD LINE BANCSHARES, INC | 15
OLBK - 6/2013
Financial Results & Trends
Average Balance Sheet Growth
Dollars in thousands.
Source: SNL Financial, Inc.
4Q12
 
 
 
OLD LINE BANCSHARES, INC | 16
OLBK - 6/2013
Revenue Composition
Revenue Breakdown
1Q13 Non-interest Income Detail (1)
Dollars in thousands. (1)Non-interest income y-t-d excludes investment securities gains
Source: SNL Financial, Inc.
 
 
 
OLD LINE BANCSHARES, INC | 17
OLBK - 6/2013
Capital Adequacy
Minimum total risk-based capital ratio to be well capitalized - 10%
Source: SNL Financial, Inc.
 
 
 
OLD LINE BANCSHARES, INC | 18
OLBK - 6/2013
Key Strategic Goals
Profitability
§ Target Net Interest Margin - NIM > 4.25%
§ Maintain bank efficiency ratios <60%
§ Reduce Non-Performing Assets - NPAs <1%
§ DDA balances to exceed 25% of Total Deposits
§ Grow loan portfolio in excess of 15% annually
 
 
 
OLD LINE BANCSHARES, INC | 19
OLBK - 6/2013
Key Strategic Goals
§ Commitment to invest in infrastructure to maintain state-
 of-the art status of existing systems; add quality talent to
 support growth
§ Dominate all sub-markets within our footprint
§ Acquire smaller community banks in-market
§ Expand reach into new contiguous natural markets
§ Grow sources of non-interest income
Growth
 
 
 
OLD LINE BANCSHARES, INC | 20
OLBK - 6/2013
95
70
PENNSYLVANIA
495
95
66
83
MD
2
495
695
Old Line Bank branch (23)
ANNE
ARUNDEL
PRINCE
GEORGE’S
ST.
MARY’S
CHARLES
Old Line Bank Branch Map
 
 
 
OLD LINE BANCSHARES, INC | 21
OLBK - 6/2013
§ Track record of consistent financial performance
 § Depth of senior management talent and across entire employee base
 § Strong underlying capital position with good access to capital markets
 § Strong track record of consistent asset quality
 § Solid net interest margin compares favorably to peers
 § Skilled bank acquirers
§ Dominant independent and locally headquartered
 financial services company within our footprint
§ Acquirer and employer of choice within footprint; Now
 moving towards dominant suburban MD position
 surrounding D.C.
What Makes OLBK Unique?
 
 
 
OLBK - 6/2013
OLD LINE BANCSHARES, INC | 22
WSB Merger - Strategic Rationale
§ In-market acquisition consistent with Old Line’s long-term growth strategy:
 
 § Significant operating synergies
 § Built on successful acquisition of Maryland Bankcorp in 2011
 § Expands product line by adding a successful mortgage origination and sale unit
§ Created a $1.2 billion Maryland-based bank with a continuing focus on the greater
 Washington, D.C. metropolitan area, Anne Arundel County and southern Maryland:
 § Old Line expanded to 23 branches and deposits of over $970 million
 § Of banks based in Maryland, Old Line is the 5th largest in assets and 3rd largest
  in full service branches
 § Old Line has the highest board/insider ownership (29.84%) of any publicly-
  traded Maryland bank with assets over $1.2 billion
 
 
 
OLBK - 6/2013
OLD LINE BANCSHARES, INC | 23
WSB Merger - Financial Rationale
§ 7% EPS accretion in Year 1 excluding merger related costs, with
 higher levels in later years.
 
 § Restructured WSB FHLB borrowings of $26 million at 4.40%;
  and another $42 million at 1.84%
 § Opportunity to reduce WSB legacy deposit costs
 § Significant in-market cost savings
§ Return to pre-closing tangible book within one year
§ Payback on tangible book dilution from transaction in ~3.5 years
§ Pricing compares favorably to recent local and regional transactions
 
 
 
OLD LINE BANCSHARES, INC | 24
OLBK - 6/2013
Compelling Investment Considerations
§ We deliver a proven track record of results
 § Our deep management talent could lead a much larger company
 § We are the emerging leader in in-market consolidations
§ We are focused on creating sustainable competitive
 advantages
§ Our current valuation is attractive considering our rapid
 ramp-up of EPS over a short timeframe
§ Our customer base is stable with good population growth
 trends and above average demographics in the affluent retail
 and small middle-market segments
§ Our demand deposit growth focus is outperforming our peer
 group
 
 
 
OLD LINE BANCSHARES, INC | 25
OLBK - 6/2013
ADDENDUM
 
 
 
OLD LINE BANCSHARES, INC | 26
OLBK - 6/2013
Significant WSB Merger Assumptions
§  Gross credit and OREO mark-down of $18 million
§  Real estate mark-up of $7.7 million
§  Mark on FHLB borrowings ($26 million at 4.40% and $42 million at 1.84%) of
 $4.6 million
§  CDI of 1.96% on non-CD accounts amortized over 8 years (SL)
§  Combined Old Line and WSB merger related expenses of $3.2 million after
 tax
§  Cost savings of 35% of WSB’s annualized non-interest expense (projections
 assume 20% of cost savings not realized in year one)
*  Information is based upon original due diligence. Valuation of acquired
 balance sheet is in process.
 
 
 
OLD LINE BANCSHARES, INC | 27
OLBK - 6/2013
Publicly traded Bank
Holding Companies in MD,
DC, VA, DE
with total
assets between $750MM-$2.0B
Peer Group Definition
 
 
 
OLD LINE BANCSHARES, INC | 28
OLBK - 6/2013
Peers: MD-DE-DC-VA Bank Holding Companies traded on NYSE/NASDAQ/AMEX with assets $750MM-$2.0B. Data as of 12/31/2012
Source: SNL Financial, Inc.
OLBK Peer Group
 
 
 
OLD LINE BANCSHARES, INC | 29
OLBK - 6/2013
Talent, depth, unique skills…
James W. Cornelsen, 58, is the President and Chief Executive Officer of Old Line Bancshares, Inc. and Old Line Bank.  He joined Old Line
Bank and its Board of Directors in 1994 and has been a member of the Board of Directors of Old Line Bancshares, Inc. since its incorporation
in April 2003.  He has over 30 years of commercial banking experience.  Prior to joining OLBK, Mr. Cornelsen was a Senior Vice President at
Sequoia National Bank and Vice President of Commercial Lending at Citizens Bank of Maryland.
Mark A. Semanie, 50, joined Old Line Bank in January 2013. He is an Executive Vice President and Chief Operating Officer and Acting Chief
Financial Officer and assists in the planning and strategic growth of Old Line Bank. Mr. Semanie is a CPA and prior to joining Old Line Bank
he was the Senior Vice President and Chief Financial Officer of Carrollton Bancorp and prior to that tenure he served as Executive Vice
President and Chief Financial Officer at Bay National Bank. He has over 25 years of accounting and financial services experience.
Joseph E. Burnett, 67, joined Old Line Bank as a Senior Vice President and Chief Lending Officer in August 2001 and was promoted to
Executive Vice President in May 2006.  He is also an Executive Vice President of Old Line Bancshares, Inc.  He has over 45 years of banking
experience in the Washington, D.C. metropolitan area specializing in commercial transactions.  Prior to joining Old Line Bank, Mr. Burnett was
a Senior Vice President in Commercial Lending at Farmers Bank for two years (1999-2001) and at Suburban Bank for twelve years (1987-
1999).
Sandi F. Burnett, 55, Executive Vice President and Chief Credit Officer of Old Line Bank, joined Old Line Bank in 2005 as Senior Vice
President and the team leader for the College Park, MD loan production office.  Prior to joining Old Line Bank, she was employed by BB&T, a
major southeastern regional bank, most recently as a City Executive, Senior Vice President.  In this capacity, she was responsible for
supervising the overall team management, portfolio quality and growth within suburban Maryland, principally Prince George’s County.  Prior to
this position, she was employed by Commerce Bank, a local bank that merged into BB&T in 1999.  She started with Commerce Bank in
1994.  Ms. Burnett is a career banker with over 30 years of commercial banking experience.  
Kevin P. Huffman, 52, joined Old Line Bank in May 2013 as Executive Vice President. Prior to joining Old Line Bank, Mr. Huffman served as
President and Director of The Washington Savings Bank from January 2004 until merger with Old Line Bank. He also served as Chief
Operating Officer of The Washington Savings Bank since May 2003 and Director of WSB since its formation in January 2008. He joined The
Washington Savings Bank in November 2001; prior to which he served in multiple capacities for Pen Mar Bancshares, Patapsco Valley
Bancshares, Inc. and Commercial and Farmers Bank.
OLBK Senior Management Team
 
 
 
OLD LINE BANCSHARES, INC | 30
OLBK - 6/2013
Selected Financial Data
 
2008
2009
2010
2011
 2012
1Q2013
Performance Ratios:
 
 
 
 
 
 
Return on average assets
.64
.62
.36
.77
.90
.59
Return on average common equity
5.03
4.36
4.14
9.37
10.52
7.05
Yield on average interest-earning
assets
6.10
5.54
5.22
5.46
5.12
4.78
Rate on average interest-bearing
liabilities
2.95
2.15
1.64
1.08
.89
.66
Net interest spread
3.15
3.39
3.58
4.38
4.23
4.12
Net interest margin
3.78
3.75
3.83
4.59
4.63
4.28
Efficiency ratio-GAAP
69.87
69.19
71.72
64.27
60.51
70.92
 
 
 
 
 
 
 
Capital Ratios:
 
 
 
 
 
 
Tier 1 leverage
14.00
10.00
9.20
7.78
7.94
8.14
Total risk-based capital
17.40
13.70
12.40
11.26
11.40
11.43
Tier 1 risk-based capital
16.60
12.80
11.60
10.61
10.77
10.79
Total equity to total assets
13.31
10.25
9.37
8.45
8.75
8.66
 
 
 
 
 
 
 
Credit Quality Ratios:
 
 
 
 
 
 
Allowance for loan losses to loans
.85
.93
.82
.69
.66
.66
Nonperforming loans to total loans
(1)
.37
.80
1.11
2.06
1.19
1.08
Nonperforming assets to total assets
.27
.60
1.12
1.87
1.26
1.03
Net charge-offs to average loans
.01
.16
.38
.11
.23
.07
Source: SNL Financial, Inc.
(1)Non-performing loans include loans 90+ days past due, non-accruals and accruing troubled debt restructurings.
 
 
 
OLD LINE BANCSHARES, INC | 31
OLBK - 6/2013
ROAA/ROAE
ROAA
ROAE
Peers: MD-DE-DC-VA Bank Holding Companies traded on NYSE/NASDAQ/AMEX with assets $750MM-/$2B.
2008 2009 2010 2011 2012 1Q2013  
      
2008  2009 2010 2011 2012 1Q2013
      
Source: SNL Financial, Inc.
 
 
 
OLD LINE BANCSHARES, INC | 32
OLBK - 6/2013
Source: SNL Financial, Inc.
 
 
 
OLD LINE BANCSHARES, INC | 33
OLBK - 6/2013
Peers: MD-DE-DC-VA Bank Holding Companies traded on NYSE/NASDAQ/AMEX with assets $750MM-$2.0B.
Source: SNL Financial, Inc.
 
 
 
OLD LINE BANCSHARES, INC | 34
OLBK - 6/2013
Net Interest Margin
Peers: MD-DE-DC-VA Bank Holding Companies traded on NYSE/NASDAQ/AMEX with assets $750MM-$2.0B.
Source: SNL Financial, Inc.
 
 
 
OLD LINE BANCSHARES, INC | 35
OLBK - 6/2013
Efficiency Ratio
(GAAP)
Peers: MD-DE-DC-VA Bank Holding Companies traded on NYSE/NASDAQ/AMEX with assets $750MM-$2.0B.
Note: Presented on a GAAP basis
Source: SNL Financial, Inc.
 
 
 
OLD LINE BANCSHARES, INC | 36
OLBK - 6/2013
Peers: MD-DE-DC-VA Bank Holding Companies traded on NYSE/NASDAQ/AMEX with assets $750MM - $2.0B.
Source: SNL Financial, Inc.