olb8k.htm

EXHIBIT 99.1

PRESS RELEASE		OLD LINE BANCSHARES, INC.
FOR IMMEDIATE RELEASE		CONTACT: MARK SEMANIE
October 29, 2013		ACTING CHIEF FINANCIAL OFFICER
		(301) 430-2508

OLD LINE BANCSHARES, INC. REPORTS EARNINGS INCREASE OF 8.88% FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2013

BOWIE, MD – Old Line Bancshares, Inc. (NASDAQ: OLBK), the parent company of Old Line Bank, reported net income available to common stockholders of $2.2 million for the three month period ended September 30, 2013. Net income increased $180,000 or 8.88% for the three month period, compared to net income of $2.0 million for the three months ended September 30, 2012. Earnings were $0.22 per basic and diluted common share for the three months ended September 30, 2013 and $0.30 and $0.29, respectively, per basic and diluted common share for the same period in 2012. The increase in net income is primarily the result of a $2.9 million increase in total interest income and a $759,000 increase in non-interest income, offsetting an increase of $3.2 million in non-interest expense. Non-interest income increased as a result of gains on sale of residential loans sold in the secondary market and an increase in other fees and commissions.

Earnings were $3.4 million, or $0.40 per basic and diluted share, for the nine months ended September 30, 2013, compared with $5.8 million, or $0.85 per basic and $0.84 per diluted share for the same nine month period last year. The decrease is primarily the result of an increase in non-interest expenses, which includes $3.2 million of expenses related to legal fees, investment banking fees, severance system integration fees and contract termination fees incurred in connection with our acquisition of WSB Holdings, Inc. (“WSB”), the former holding company of The Washington Savings Bank, F.S.B., in May.

Total assets at September 30, 2013 increased by $32.6 million compared to June 30, 2013 and $317.9 million compared to December 31, 2012. Total net loans increased $36.5 million and $233.3 million, respectively during the three and nine month periods ended September 30, 2013. The increase in loans during the three month period was primarily attributable to strong organic growth in the loan portfolio of $46 million, or 7.20%, exclusive of acquired loans from The Washington Savings Bank, F.S.B, which saw payoffs of $9.5 million during the quarter. The increase during the nine month period is a result of organic growth of $89.2 million or 14.99% of total net loans as well as the completion of the previously announced merger with WSB.

HIGHLIGHTS:

·	Successfully raised $12.2 million of new capital through a private placement of 936,696 shares of common stock at a price of $13.00 per share.

Total assets during the three month period grew $32.6 million. Total assets during the nine month period increased $317.9 million primarily as a result of the merger with WSB that became effective May 10, 2013. Total assets are $1.2 billion at September 30, 2013 compared to $861.9 million at December 31, 2012.

·	Net loans during the three month period grew $36.5 million. Net loans increased $233.3 million or 39.21% during the nine months ended September 30, 2013, to $828.5 million at September 30, 2013 compared to $595.1 million at December 31, 2012, primarily as a result of the acquisition of WSB.

Non-interest bearing deposits increased $9.9 million and $34.6 million, respectively, during the three and nine month periods ending September 30, 2013. Interest bearing deposits decreased during the three month period by $20.1 million due to a planned reduction of time deposits. Interest bearing deposits increased $215.3 million during the nine month period compared to the respective balance at December 31, 2012, primarily as a result of the acquisition of WSB and partially offset by the noted planned reductions.

·	Net income of $2.2 million, or $0.22 per basic share, was recorded for the three month period ending September 30, 2013 compared to net income of $2.0 million or $0.30 per basic share for the third quarter of 2012, representing an increase of $180,000 or 8.88%.

·	Net income was $3.4 million or $0.40 per basic share for the nine months ended September 30, 2013 compared to $5.8 million, or $0.85 per basic share, for the same period in 2012.

·	The third quarter Return on Average Assets (ROAA) and Return on Average Equity (ROAE) were 0.75% and 7.47%, respectively, compared to ROAA and ROAE of 0.93% and 11.83%, respectively, for the third quarter of 2012.

·	For the nine months ended September 30, 2013, ROAA and ROAE were 0.45% and 4.80%, respectively, compared to ROAA and ROAE of 0.93% and 11.68%, respectively, for the nine months ended September 30, 2012.

·	The net interest margin for the third quarter of 2013 was 4.69% compared to 4.72% for the same period in 2012. Re-pricing in the loan portfolio and slightly lower yields on new loans caused the average loan yield to decline slightly which also caused the small decline in net interest margin.

Non-performing assets decreased to 1.03% of total assets at September 30, 2013 compared to 1.96% at June 30, 2013 and 1.34% at September 30, 2012. Non-performing assets increased $2.5 million for the nine month period, which was offset by a reduction of $11.2 million in acquired non-accrual loans due to the reclassification of these loans to held-for-sale and an increase in total assets.

The significant increase in net loans for the nine month period included $89.2 million, or 14.99%, of organic growth and $144.1 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 and $46 million, or 7.20%, in the third quarter. Similarly, deposit growth during the nine month period was comprised of $37.9 million, or 5.16% of organic growth and $212.0 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 and $784,000, or 0.10%, in the third quarter.

“We are very pleased that we continue to generate strong organic loan growth while sustaining our margins. Our team continues to integrate the WSB staff and operations as we aggressively work to complete the conversion of the WSB core operating system and develop resolution plans for non-performing assets,” stated James W. Cornelsen, President and Chief Executive Officer. “With the infusion of an additional $12.2 million of capital in September we will be able to support additional loan growth. Overall, we believe our markets, which encircle the Washington, DC metropolitan area, are rebounding nicely and should show good growth and stability as we move forward. We believe that the strong loan growth combined with the realization of merger related efficiencies positions Old Line Bank to continue its profitable growth and execute on our strategic initiatives to maximize stockholder value. We are working hard to leverage the residential mortgage division throughout our footprint in order to enhance non-interest income.”

As noted above, the increase in net income during the third quarter of 2013 compared to the third quarter of 2012 was primarily the result of a $2.9 million, or 34.43%, increase in net interest income and a $759,000 increase in non-interest income, partially offset by a $3.2 million increase in non-interest expense. The increase in non-interest expense was mainly attributable to increases in salaries and benefits, occupancy and equipment expenses and data processing expenses. Salaries and benefits increased by $1.8 million, or 58.49%, compared to the third quarter of 2012 primarily as a result of the acquisition of WSB and additions to the commercial lending and cash management teams. Occupancy and equipment expenses increased $622,000 or 61.77% compared to the same period in 2012 primarily due to the additional branches acquired in the WSB acquisition. Data processing expenses increased due to the additional expense of WSB’s core processing system, which is due to be fully integrated in the fourth quarter of 2013. The increase in non-interest income of $759,000, or 85.36%, was primarily the result of increases of $448,000 in other fees and commissions and $332,000 in gain on the sale of loans. Other fees and commissions increased due to fees collected on new originations and the increase on gain on the sale of loans is the result of the premiums received 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 in May 2013.

Non-performing assets to total assets decreased to 1.03% at September 30, 2013 compared to 1.96% at June 30, 2013 as a result of a change in loan classification of a $21.0 million pool of loans, of which $11.2 million were previously non-accrual, to held for sale. Non-performing assets to total assets were 1.12% at December 31, 2012 and 1.34% at September 30, 2012. Based on internal analysis, the ratio of non-performing assets to total assets, and the satisfactory historical performance of the loan portfolio, management believes that the allowance for loan losses continues to appropriately reflect the inherent risk of loss in the portfolio and the current economic climate. Should there be any evidence that there is deterioration in the loan portfolio, however, the allowance will be adjusted accordingly through a charge to provision expense to increase the allowance. During the third quarter two loans were identified as troubled assets. An additional provision was incurred in the third quarter to adequately provide for any potential future losses on these loans.

As previously reported, the Company announced the merger with WSB became effective May 10, 2013. Until final conversion, it is anticipated that the Company will continue to incur merger related expenses that may cause earnings to be lower than would otherwise be expected. However, 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 to expand its financial services with the addition of a successful and growing mortgage origination team. Old Line 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 execution of our strategic initiatives and maximizing stockholder value, 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, integration of WSB’s core processing system in the fourth quarter of 2013, continued profitable growth, enhanced non-interest income and the adequacy of our loan loss allowance 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

	September 30, 2013			June 30, 2013			March 31, 2013		December 31, 2012 (1)		September 30, 2012
	(Unaudited)			(Unaudited)			(Unaudited)				(Unaudited)
Cash and due from banks	$	49,957,119		$	50,689,336		$	37,651,112	$	28,332,456	$	43,813,588
Interest bearing accounts		30,364			30,352			30,291		130,192		26,137
Federal funds sold		1,005,491			3,017,257			331,153		228,113		908,495
Total cash and cash equivalents		50,992,974			53,736,945			38,012,556		28,690,761		44,748,220
Investment securities available for sale		181,527,632			184,190,791			154,081,188		171,541,222		180,363,532
Loans held for sale		22,584,750			4,764,595			-		-		-
Loans held for invesment, less allowance for loan losses		805,890,567			787,172,298			611,850,594		595,144,928		573,147,401
Equity securities at cost		5,850,652			3,709,490			3,174,220		3,615,444		3,828,237
Premises and equipment		35,520,366			35,313,769			24,912,937		25,133,013		23,883,734
Accrued interest receivable		3,256,311			3,623,274			2,511,753		2,639,483		2,606,790
Prepaid income taxes		-			621,176			-		-		-
Deferred income taxes		21,451,728			23,111,238			8,015,351		7,139,545		6,791,483
Bank owned life insurance		30,357,357			30,135,483			16,977,347		16,869,307		16,757,707
Prepaid pension		-			-			-		-		1,030,551
Other real estate owned		5,909,260			5,396,654			2,726,910		3,719,449		3,231,449
Goodwill		7,793,665			6,847,424			633,790		633,790		633,790
Core deposit intangible		5,518,619			5,749,737			3,513,889		3,691,471		3,869,054
Other assets		3,059,574			2,711,768			2,575,612		3,038,064		2,990,530
Total assets	$	1,179,713,455		$	1,147,084,642		$	868,986,147	$	861,856,477	$	863,882,478

Deposits
Non-interest bearing	$	223,503,418		$	213,570,493		$	188,172,189	$	188,895,263	$	185,347,907
Interest bearing		761,869,410			781,968,601			560,330,114		546,562,555		545,730,571
Total deposits		985,372,828			995,539,094			748,502,303		735,457,818		731,078,478
Short term borrowings		56,204,082			28,818,101			31,510,107		37,905,467		44,544,608
Long term borrowings		6,118,744			6,142,962			6,166,788		6,192,350		6,216,463
Accrued interest payable		250,164			259,847			279,907		311,735		341,494
Accrued pension		4,844,855			4,768,470			4,690,584		4,615,699		4,570,725
Other liabilities		3,791,019			3,825,204			2,749,707		2,120,247		2,757,115
Total liabilities		1,056,581,692			1,039,353,678			793,899,396		786,603,316		789,508,883

Stockholders' equity
Common stock		107,612			98,202			68,538		68,454		68,308
Additional paid-in capital		104,408,960			92,145,572			53,875,593		53,792,015		53,647,456
Retained earnings		20,882,086			19,066,586			19,543,682		18,531,387		17,087,831
Accumulated other comprehensive income (loss)		(2,628,710	)		(3,946,354	)		1,220,486		2,469,758		3,171,006
Total Old Line Bancshares, Inc. stockholders' equity		122,769,948			107,364,006			74,708,299		74,861,614		73,974,601
Non-controlling interest		361,815			366,958			378,452		391,547		398,994
Total stockholders' equity		123,131,763			107,730,964			75,086,751		75,253,161		74,373,595
Total liabilities and stockholders' equity	$	1,179,713,455		$	1,147,084,642		$	868,986,147	$	861,856,477	$	863,882,478
Shares of basic common stock outstanding		10,761,112			9,820,217			6,853,814		6,845,432		6,830,832

(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 September 30,			Three Months Ended June 30,			Three Months Ended March 31,			Three Months Ended December 31,			Three Months Ended September 30,			Nine Months Ended September 30,			Nine Months Ended September 30,
	2013			2013			2013			2012 (1)			2012			2013			2012
	(Unaudited)			(Unaudited)			(Unaudited)						(Unaudited)			(Unaudited)			(Unaudited)
Interest revenue
Loans, including fees	$	11,527,459		$	9,327,905		$	7,831,823		$	8,521,466		$	8,702,142		$	28,687,187		$	25,287,273
Investment securities and other		1,031,015			979,699			985,253			1,034,100			1,098,431			2,995,967			3,379,284
Total interest revenue		12,558,474			10,307,604			8,817,076			9,555,566			9,800,573			31,683,154			28,666,557
Interest expense
Deposits		970,911			964,955			857,139			963,334			1,057,075			2,793,005			3,271,773
Borrowed funds		111,728			139,472			112,487			190,310			206,721			363,687			632,208
Total interest expense		1,082,639			1,104,427			969,626			1,153,644			1,263,796			3,156,692			3,903,981
Net interest income		11,475,835			9,203,177			7,847,450			8,401,922			8,536,777			28,526,462			24,762,576
Provision for loan losses		590,000			200,000			200,000			400,000			375,000			990,000			1,125,000
Net interest income after provision for loan losses		10,885,835			9,003,177			7,647,450			8,001,922			8,161,777			27,536,462			23,637,576
Non-interest revenue
Service charges on deposit accounts		466,571			367,674			300,741			318,250			315,468			1,134,986			962,937
Gain on sales or calls of investment securities		-			9,659			631,429			307,242			289,511			641,088			849,539
Earnings on bank owned life insurance		253,894			200,641			133,228			136,171			137,082			587,763			412,283
Losses on disposal of assets		-			(19,078	)		(85,561	)		-			-			(104,639	)		-
Gain on sale of loans		332,348			146,565			-			-			-			477,587			-
Other fees and commissions		594,324			301,268			247,683			182,450			146,550			1,291,167			539,238
Total non-interest revenue		1,647,137			1,006,729			1,227,520			944,113			888,611			4,027,952			2,763,997
Non-interest expense
Salaries & employee benefits		4,780,588			4,126,567			3,232,677			3,188,366			3,016,334			12,139,833			8,850,143
Occupancy & Equipment		1,556,221			1,214,947			1,068,867			931,197			933,775			3,794,342			2,756,222
Pension plan termination		-			-			-			700,884			-						-
Data processing		459,973			329,878			239,057			238,830			214,187			1,028,907			631,154
Merger and integration		143,082			2,786,350			240,485			363,375			49,290			3,169,917			107,624
Core deposit premium		231,118			198,875			177,582			177,582			177,582			607,575			549,839
Gains (losses) on sales other real estate owned		11,072			(145,795	)		200,454			-			48,509			212,296			(110,704	)
OREO expense		159,234			154,908			314,165			124,167			39,092			628,307			467,181
Other operating		2,017,902			1,723,373			1,606,608			1,531,026			1,651,498			5,393,577			4,654,937
Total non-interest expense		9,359,190			10,389,103			7,079,895			7,255,427			6,130,267			26,974,754			17,906,396

Income (loss) before income taxes		3,173,782			(379,197	)		1,795,075			1,690,608			2,920,121			4,589,660			8,495,177
Income tax (benefit) expense		970,510			(283,417	)		521,722			(18,808	)		912,490			1,208,816			2,739,254
Net income (loss)		2,203,272			(95,780	)		1,273,353			1,709,416			2,007,631			3,380,844			5,755,923
Less: Net income (loss) attributable to the noncontrolling interest		(5,142	)		(11,495	)		(13,095	)		(7,447	)		(20,664	)		(29,732	)		(57,678	)
Net income (loss) available to common stockholders	$	2,208,414		$	(84,285	)	$	1,286,448		$	1,716,863		$	2,028,295		$	3,410,576		$	5,813,601
Earnings (loss) per basic share	$	0.22		$	(0.01	)	$	0.19		$	0.25		$	0.30		$	0.40		$	0.85
Earnings (loss) per diluted share	$	0.22		$	(0.01	)	$	0.19		$	0.25		$	0.29		$	0.40		$	0.84
Dividend per common share	$	0.04		$	0.04		$	0.04		$	0.04		$	0.04		$	0.12		$	0.12
Average number of basic shares		10,004,138			8,505,016			6,848,505			6,834,665			6,829,785			8,464,113			6,826,390
Average number of dilutive shares		10,117,380			8,609,164			6,950,749			6,929,296			6,909,147			8,565,602			6,886,147

(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

	9/30/2013						6/30/2013						3/31/2013						12/31/2012						9/30/2012
	Average Balance			Yield			Average Balance			Yield			Average Balance			Yield			Average Balance			Yield			Average Balance			Yield
Assets:
Int. Bearing Deposits	$	2,997,163			0.09	%	$	6,978,382			0.11	%	$	1,870,920			0.15	%	$	10,506,932			0.20	%	$	9,609,610			0.21	%
Investment Securities		193,421,563			2.70	%		180,559,860			2.81	%		168,672,425			3.06	%		177,162,367			2.88	%		171,086,288			3.11	%
Loans		817,877,455			5.67	%		721,222,893			5.28	%		605,701,991			5.35	%		587,421,759			5.86	%		576,428,450			6.11	%
Allowance for Loan Losses		(4,353,910	)					(4,164,025	)					(4,058,816	)					(4,186,009	)					(4,266,214	)
Total Loans Net of allowance		813,523,545			5.71	%		717,058,868			5.31	%		601,643,175			5.39	%		583,235,750			5.90	%		572,162,236			6.16	%
Total interest-earning assets		1,009,942,271			5.11	%		904,597,110			4.77	%		772,186,520			4.87	%		770,905,049			5.15	%		752,858,134			5.39	%
Noninterest bearing cash		40,562,522						45,762,911						25,465,996						30,544,104						50,174,932
Other Assets		113,104,275						85,200,150						62,206,398						61,756,948						61,911,524
Total Assets	$	1,163,609,068					$	1,035,560,171					$	859,858,914					$	863,206,101					$	864,944,590

Liabilities and Stockholders' Equity

Interest-bearing Deposits	$	770,907,260			0.50	%	$	686,544,106			0.56	%	$	552,649,682			0.63	%	$	551,598,937			0.69	%	$	553,524,257			0.76	%
Borrowed Funds		41,022,029			1.08	%		41,494,215			1.35	%		40,335,859			1.13	%		35,952,280			2.10	%		49,608,300			1.66	%
Total interest-bearing liabilities		811,929,289			0.53	%		728,038,321			0.61	%		592,985,541			0.66	%		587,551,217			0.78	%		603,132,557			0.83	%
Noninterest bearing deposits		226,431,720						205,050,472						187,697,564						197,676,047						186,319,471
		1,038,361,009						933,088,793						780,683,105						785,227,264						789,452,028

Other Liabilities		7,569,553						6,624,502						6,909,547						7,600,642						6,898,432
Noncontrolling Interest		363,349						369,671						387,467						392,942						406,102
Stockholder's Equity		117,315,157						95,477,205						71,878,795						69,985,253						68,188,028
Total Liabilities and Stockholder's Equity	$	1,163,609,068					$	1,035,560,171					$	859,858,914					$	863,206,101					$	864,944,590

Net interest spread					4.58	%					4.16	%					4.21	%					4.37	%					4.56	%
Net interest income and Net interest margin(1)	$	11,933,938			4.69	%	$	9,657,000			4.28	%	$	8,299,213			4.36	%	$	8,818,546			4.55	%	$	8,932,729			4.72	%

(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 as follows:

	9/30/2013					6/30/2013					3/31/2013						12/31/2012					9/30/2012
	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)	$	14,763		0.01	%	$	38,933		0.02	%	$	209,144			0.11	%	$	38,783		0.02	%	$	64,142		0.03	%
Mortgage loans (1)		1,221,653		0.48			173,261		0.07			(4,500	)		(0.00	)		819,028		0.42			776,089		0.41
Consumer loans		6,032		0.00			2,876		0.00			2,371			0.00			2,188		0.00			1,968		0.01
Interest bearing deposits		178,556		0.07			85,046		0.05			33,461			0.02			33,379		0.02			33,847		0.01
Total Fair Value Accretion	$	1,421,004		0.56	%	$	300,116		0.14	%	$	240,476			0.13	%	$	893,378		0.46	%	$	876,046		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:

	9/30/2013					6/30/2013					3/31/2013					12/31/2012					9/30/2012
	Net Interest Income		Yield			Net Interest Income		Yield			Net Interest Income		Yield			Net Interest Income		Yield			Net Interest Income		Yield
GAAP net interest income	$	11,475,835		4.51	%	$	9,203,177		4.08	%	$	7,847,450		4.12	%	$	8,401,922		4.34	%	$	8,536,777		4.51	%
Tax equivalent adjustment
Federal funds sold		-		-			1		0.00			2		0.00			1		0.00			-		-
Investment securities		286,755		0.11			285,049		0.13			287,612		0.15			258,483		0.13			241,934		0.13
Loans		171,348		0.07			168,773		0.07			164,149		0.09			158,140		0.08			154,018		0.08
Total tax equivalent adjustment		458,103		0.18			453,823		0.20			451,763		0.24			416,624		0.22			395,952		0.21
Tax equivalent interest yield	$	11,933,938		4.69	%	$	9,657,000		4.28	%	$	8,299,213		4.36	%	$	8,818,546		4.55	%	$	8,932,729		4.72	%

Old Line Bancshares, Inc. & Subsidiaries
Selected Loan Information
(Dollars in thousands)
	September 30, 2013			June 30, 2013			March 31, 2013			December 31, 2012			September 30, 2012
Acquired Loans(1)
Non-accrual(2)	$	-		$	-		$	4,064		$	4,092		$	5,079
Accruing 30-89 days past due		2,985			6,965			802			602			24
Accruing 90 or more days past due(4)		2,434			15,251			-			6			82

Legacy Loans(3)
Non-accrual	$	1,870		$	1,889		$	1,388		$	1,818		$	3,151
Accruing 30-89 days past due		2,292			2,607			2,077			1,799			2,348
Accruing 90 or more days past due		1,951			-			-			-			2

Allowance for loan losses as % of held for investment loans		0.55	%		0.54	%		0.66	%		0.66	%		0.78	%
Allowance for loan losses as % of legacy loans		0.77	%		0.83	%		0.84	%		0.85	%		1.03	%
Total non-performing loans as a % of held for investment loans		0.77	%		2.18	%		0.89	%		0.99	%		2.00	%
Total non-performing assets as a % of total assets		1.03	%		1.96	%		0.94	%		1.12	%		1.34	%

(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. As provided for under ASC 310-30, we recognize interest income on these loans through the accretion of the difference between the carrying value of these loans and their expected cash flows.

(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.

Maryland	000-50345	20-0154352
(State or other jurisdiction	(Commission File Number)	(I.R.S. Employer Identification No.)
of incorporation)

1525 Pointer Ridge Place
Bowie, Maryland	20716
(Address of principal executive offices)	(Zip Code)

	OLD LINE BANCSHARES, INC.


Date: October 29, 2013	By: /s/Mark A. Semanie
	Mark A. Semanie, Executive Vice President, Chief Operating Officer and Acting Chief Financial Officer