olbk_Ex99

Exhibit 99.1

PRESS RELEASEOLD LINE BANCSHARES, INC.

FOR IMMEDIATE RELEASECONTACT: ELISE HUBBARD

July 16, 2015CHIEF FINANCIAL OFFICER

(301) 430-2560

OLD LINE BANCSHARES, INC. REPORTS $2.6 MILLION IN NET INCOME AVAILABLE TO COMMON STOCKHOLDERS, A 47% INCREASE, FOR THE QUARTER ENDED JUNE 30, 2015

BOWIE, MD – Old Line Bancshares, Inc. (NASDAQ: OLBK), the parent company of Old Line Bank, reported net income available to common stockholders increased $832 thousand, or 47.00% to $2.6 million for the three months ended June 30, 2015, compared to net income of $1.8 million for the three months ended June 30, 2014. Earnings were $0.25 per basic and $0.24 per diluted common share for the three months ended June 30, 2015, compared to $0.16 per basic and diluted common share for the same period in 2014. The increase in net income is primarily the result of a $560 thousand increase in net interest income and a $1.5 million decrease in the provision for loan losses, partially offset by a decrease of $323 thousand in non-interest income and a $342 thousand increase in non-interest expenses. Net income was $5.4 million for the six months ended June 30, 2015, compared with $3.6 million for the same six month period last year, an increase of $1.8 million, or 48.54%. Earnings were $0.50 per basic and $0.49 per diluted common share for the six months ended June 30, 2015 compared to $0.33 per basic and diluted common share for the same period last year. The increase in net income is primarily the result of increases of $1.7 million in net interest income and $57 thousand in non-interest income and decreases of $1.2 million in the provision for loan losses and $3 thousand in non-interest expenses.

Total assets at June 30, 2015 increased by $84.5 million compared to December 31, 2014. Total net loans held-for-investment increased $44.9 million, or 4.66%, during the three month period ended June 30, 2015 and $82.0 million, or 8.86%, during the six month period ended June 30, 2015. Non-performing assets decreased to 0.38% of total assets at June 30, 2015 compared to 0.65% at December 31, 2014.

James W. Cornelsen, President and Chief Executive Officer of Old Line Bancshares, Inc. stated: “We are pleased to report strong earnings for the second quarter and six months ending June 30, 2015. We had strong loan growth of 4.66% for the quarter and 8.86% for the six months ending June 30, 2015. Our deposits grew 3.13% and 6.75% for the three and six month periods ending June 30, 2015 to $1.1 billion at June 30, 2015 from $1.0 billion at December 31, 2014. Our goal is to continue to build our loan and deposit portfolios while maintaining asset quality and improving operating efficiency.”

HIGHLIGHTS:

Net loans held-for-investment increased $44.9 million, or 4.66%, and $82.0 million, or 8.86%, for the three and six months ended June 30, 2015, to $1.0 billion at June 30, 2015 compared to $926.6 million at December 31, 2014, as a result of organic growth within our surrounding market area. Average gross loans increased $48.0 million, or 5.03%, to $1.0 billion for the three month period ending June 30, 2015 compared to $954.9 million during the three months ended March 31, 2015. Average gross loans for the six month period increased $97.7 million, or 10.79%, to $1.0 billion compared to $905.2 million at December 31, 2014.

Total assets increased $84.5 million, or 6.89%, since December 31, 2014.

Non-performing assets decreased 65.36% to 0.38% of total assets at June 30, 2015 compared to 0.65% at December 31, 2014 and 1.20% at June 30, 2014.

The net interest margin during the three months ended June 30, 2015 was 4.01% compared to 4.28% for the same period in 2014. Total yield on interest earning assets decreased to 4.42% for the three months ending June 30, 2015, compared to 4.67% for the same three month period last year. Interest expense as a percentage of total interest-bearing liabilities was 0.54% for the three months ended June 30, 2015 compared to 0.50% for the same three month period of 2014.

The net interest margin for the six months ended June 30, 2015 was 4.16% compared to 4.28% for the same six month period in 2014. Total yield on interest earning assets decreased to 4.55% for the six months ending June 30, 2015, compared to 4.68% for the same six month period last year. Interest expense as a percentage of total interest-bearing liabilities increased to 0.52% for the six months ended June 30, 2015 compared to 0.50% for the same six month period of 2014.

The second quarter Return on Average Assets (ROAA) and Return on Average Equity (ROAE) were 0.80% and 7.58%, respectively, compared to ROAA and ROAE of 0.60% and 5.46%, respectively, for the second quarter of 2014.

The ROAA and ROAE were 0.85% and 7.82%, respectively, for the six months ended June 30, 2015 compared to ROAA and ROAE of 0.62% and 5.70%, respectively, for the six months ending June 30, 2014.

Total deposits grew by $68.7 million, or 6.76%, since December 31, 2014.

We ended the second quarter of 2015 with a book value of $12.83 per common share and a tangible book value of $11.71 per common share compared to $12.51 and $11.38, respectively, at December 31, 2014.

We maintained liquidity and by all regulatory measures remained “well capitalized.”

On February 25, 2015, Old Line Bancshares, Inc.’s board of directors approved the repurchase of up to 500,000 shares of our outstanding common stock. As of June 30, 2015, 266,923 shares have been repurchased at an average price of $15.74 per share. Any repurchased shares remain authorized but unissued shares.

Total assets at June 30, 2015 increased $84.5 million from December 31, 2014 primarily due to an increase of $82.0 million in loans held-for-investment and $16.5 million in cash and cash equivalents, offsetting a decrease of $10.5 million in our investment portfolio.

Nonperforming assets, which include non-accrual loans, foreclosed real estate and troubled debt restructured loans, decreased 27 basis points from 0.65% of total assets at December 31, 2014 to 0.38% of total assets at June 30, 2015.

Deposit growth for the six months ended June 30, 2015 consisted of increases in interest bearing deposits of $53.6 million and non-interest bearing deposits of $15.0 million.

The increase in net income for the three months ending June 30, 2015 compared to the three months ending June 30, 2014, as noted above, was primarily the result of a $560 thousand, or 5.27%, increase in net interest income and $1.5 million, or 94.45%, decrease in the provision for loan losses, partially offset by a $323 thousand decrease in non-interest income and an increase of $342 thousand in non-interest expenses. The increase in net income for the six months ending June 30, 2015 compared to the six months ending June 30, 2014, as noted above, was primarily the result of a $1.7 million, or 7.93%, increase in net interest income, a $1.2 million decrease in the provision for loan losses, a $57 thousand, or 1.76%, increase in non-interest income and a decrease of $3 thousand in non-interest expenses.

Average interest bearing liabilities for the three month period ending June 30, 2015 increased $72.9 million compared to the same period of 2014. Average interest bearing liabilities for the six month period ending June 30, 2015 increased $57.8 million compared to the same period of 2014. The average rate paid on such liabilities increased to 0.54% and 0.52%, respectively, for the three and six months ending June 30, 2015 compared to 0.50% for the comparable 2014 periods.

Net interest margin for the three months ended June 30, 2015 decreased to 4.01% from 4.28% during the three months ending June 30, 2014. The net interest margin for the six months ended June 30, 2015 decreased to 4.16% from 4.28% during the six months ending June 30, 2014. The net effect of fair value accretion/amortization on acquired loans also affects the net interest margin and net interest income. The fair value accretion/amortization is recorded on pay downs during the period recognized. Payoffs decreased during the three months ending June 30, 2015 contributing a two basis point increase, as compared to a 19 basis points increase for the three months ending June 30, 2014. The fair value accretion recorded on acquired deposits affects interest expense. The amount of the accretion on such deposits during

the three months ended June 30, 2015 decreased by five basis points as compared to the same three month period last year.

Net interest income increased for the three and six month periods ending June 30, 2015 compared to the same periods in 2014 primarily due to increases in the interest recognized on loans offsetting the increases in interest expense. Loan interest increased for three and six month periods ending June 30, 2015 due to organic growth in our loan portfolio. Interest expense increased due to an increase in our borrowings, partially offset by a decrease in the rate on such borrowings. Our average interest bearing deposits decreased for the three month period ending June 30, 2015, offsetting an increase on the rate paid on these deposits. The average balance and average rate increased on our interest bearing deposits for the six month period ending June 30, 2015.

The provision for loan losses decreased for the three and six month periods ending June 30, 2015 compared to the same periods last year due. The decreases are the result of a provision for $1.4 million that was recognized during the second quarter last year for one commercial loan that was sold at foreclosure during the third quarter of last year, in addition to continued improvements in asset quality, as noted above.

Non-interest income decreased for the three month period ending June 30, 2015 compared to the same period of 2014 primarily as a result of decreases of $279 thousand in other fees and commissions, $126 thousand on gain on sale of investment securities and $52 thousand in service charges on deposit accounts, offsetting the increase of $149 thousand in earnings on marketable loans. Other fees and commissions decreased primarily due to recoveries of $125 thousand on loans that were previously charged-off prior to the merger with WSB Holdings, Inc. that were recognized in 2014. Other fees and commissions also included letter of credit fees of approximately $80 thousand received during the 2014 quarter. The decrease on the gain on the sale of investment securities is the result of re-positioning the investment portfolio during the second quarter of 2014. Service charges on deposit accounts decreased as a result of lower overdraft and ATM fees compared to the same three month period last year. The residential mortgage division increased the gain on sale of loans due to the gains recorded on the sale of $30.6 million in residential mortgage loans sold in the secondary market compared to $12.9 million for the same three month period last year. Non-interest income increased for the six month period ending June 30, 2015 compared to the same six months last year. The increase is primarily the result of a $656 thousand increase in earnings on marketable loans, offsetting decreases of $261 thousand in other fees and commissions and $88 thousand in service charges on deposit accounts.

Non-interest expenses increased $342 thousand for the three month period ending June 30, 2015 compared to the same period of 2014 primarily as a result of increases in salaries and benefits and losses on the sale of other real estate owned, partially offset by a decrease in occupancy and equipment and other real estate owned expenses. Salaries and benefits increased approximately $158 thousand due to additional information technology and risk management personnel added to enhance our operations due to the increasingly complex compliance and regulatory environment. Occupancy and equipment expenses decreased as a result of the previously-announced branch closings during 2014. Losses on the sale of one other real estate owned property during the three months ended June 30, 2015 resulted in a net loss of $9 thousand compared to a net gain of $79 thousand on the sale of three properties for the comparable period last year. Other non-interest expenses include outsourced services which will be transitioned and administered by our information technology and risk management personnel which will be more cost effective and allow for enhanced internal monitoring.

Non-interest expenses decreased $3 thousand for the six month period ending June 30, 2015 compared to the same six month period last year. Salaries and benefits decreased due to severance payments in the 2014 period that were associated with merger related staffing reductions. Occupancy and equipment expenses decreased for the six month period as a result of the closure of four of our branches at December 31, 2014. Losses on the sale of four other real estate owned properties during the six months ended June 30, 2015 resulted in a net loss of $144 thousand compared to a net gain of $282 thousand on the sale of six properties for the comparable six month period last year. Data processing costs increased due to enhancements in our data processing environment. FDIC insurance increased as a result of an increase in our assets and our deposit base.

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 19 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 statement in this press release that “Our goal is to continue to build our loan and deposit portfolios while maintaining asset quality and improving operating efficiency,” constitutes a “forward-looking statement” 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. Actual results could differ materially from those currently anticipated due to a number of factors, including, but not limited to, deterioration in economic conditions or a slowdown in the recovery in our target markets or nationally, sustained high levels of or 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


	June 30,		March 31,		December 31,		September 30,		June 30,
	2015		2015		2014 (1)		2014		2014
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Cash and due from banks	$	40,494,305	$	37,061,793	$	23,572,613	$	42,266,194	$	29,887,334
Interest bearing accounts		1,034,085		1,080,570		1,230,864		30,396		30,389
Federal funds sold		331,178		624,888		601,259		533,612		304,246
Total cash and cash equivalents		41,859,568		38,767,251		25,404,736		42,830,202		30,221,969
Investment securities available for sale		151,179,573		158,380,719		161,680,198		163,535,833		155,706,684
Loans held for sale		6,361,652		8,692,297		4,548,106		5,735,282		4,074,911
Loans held for investment, less allowance for loan losses of $4,435,913 and $4,281,835 for June 30, 2015 and December 31, 2014		1,008,618,046		963,706,538		926,573,488		883,905,233		889,524,786
Equity securities at cost		3,565,596		3,353,096		5,811,697		4,304,197		4,304,196
Premises and equipment		33,786,623		33,874,131		34,300,375		34,366,258		34,604,271
Accrued interest receivable		3,341,570		3,172,615		3,218,428		3,002,457		2,978,470
Deferred income taxes		13,108,799		12,506,347		16,106,498		19,843,857		19,850,224
Current income taxes receivable		1,198,299		1,312,872		—		—		—
Bank owned life insurance		31,856,947		31,643,001		31,429,747		31,214,396		31,000,380
Other real estate owned		1,215,690		1,600,015		2,451,920		2,699,846		4,627,465
Goodwill		7,793,665		7,793,665		7,793,665		7,793,665		7,793,665
Core deposit intangible		4,016,913		4,210,679		4,420,796		4,633,766		4,846,737
Other assets		4,127,881		6,087,688		3,779,350		4,128,206		3,732,934
Total assets	$	1,312,030,822	$	1,275,100,914	$	1,227,519,004	$	1,207,993,198	$	1,193,266,692
Deposits
Non-interest bearing	$	275,953,182	$	269,733,047	$	260,913,521	$	247,291,192	$	237,614,952
Interest bearing		808,460,674		781,718,574		754,825,885		772,344,384		771,801,936
Total deposits		1,084,413,856		1,051,451,621		1,015,739,406		1,019,635,576		1,009,416,888
Short term borrowings		76,722,442		71,236,281		61,002,889		35,558,734		35,769,108
Long term borrowings		5,931,298		5,958,485		5,987,283		6,017,844		6,043,715
Accrued interest payable		322,926		284,444		266,023		241,740		229,939
Accrued pension		5,222,669		5,162,732		5,095,141		5,069,745		5,003,784
Income taxes payable		—		—		485,435		3,406,234		2,376,461
Other liabilities		3,457,441		3,420,900		3,416,190		4,557,087		2,252,083
Total liabilities		1,176,070,632		1,137,514,463		1,091,992,367		1,074,486,960		1,061,091,978

Stockholders' equity
Common stock		105,745		107,551		108,110		107,864		107,854
Additional paid-in capital		101,500,434		104,313,092		105,235,646		104,900,904		104,820,171
Retained earnings		34,353,501		32,281,404		30,067,798		28,826,765		27,621,537
Accumulated other comprehensive income (loss)		(253,879)		630,791		(147,250)		(589,650)		(639,502)
Total Old Line Bancshares, Inc. stockholders' equity		135,705,801		137,332,838		135,264,304		133,245,883		131,910,060
Non-controlling interest		254,389		253,613		262,333		260,355		264,654
Total stockholders' equity		135,960,190		137,586,451		135,526,637		133,506,238		132,174,714
Total liabilities and stockholders' equity	$	1,312,030,822	$	1,275,100,914	$	1,227,519,004	$	1,207,993,198	$	1,193,266,692
Shares of basic common stock outstanding		10,574,439		10,755,017		10,810,930		10,786,370		10,785,370

(1)

Financial information at December 31, 2014 has been derived from audited financial statements.

Old Line Bancshares, Inc. & Subsidiaries

Consolidated Statements of Income


	Three Months		Three Months		Three Months		Three Months		Three Months		Six Month		Six Months
	Ended		Ended		Ended		Ended		Ended		Ended		Ended
	June 30,		March 31,		December 31,		September 30,		June 30,		June 30,		June 20,
	2015		2015		2014		2014		2014		2015		2014
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Interest income
Loans, including fees	$	11,516,860	$	11,621,493	$	10,556,729	$	10,232,684	$	10,599,999	$	23,138,353	$	20,933,971
Investment securities and other		835,594		886,084		939,602		885,324		1,017,039		1,721,678		2,054,937
Total interest income		12,352,454		12,507,577		11,496,331		11,118,008		11,617,038		24,860,031		22,988,908
Interest expense
Deposits		1,021,560		910,957		799,716		850,964		856,639		1,932,517		1,750,942
Borrowed funds		159,707		134,716		119,214		111,693		148,918		294,423		267,194
Total interest expense		1,181,267		1,045,673		918,930		962,657		1,005,557		2,226,940		2,018,136
Net interest income		11,171,187		11,461,904		10,577,401		10,155,351		10,611,481		22,633,091		20,970,772
Provision for loan losses		85,658		561,731		458,114		555,134		1,544,280		647,389		1,814,049
Net interest income after provision for loan losses		11,085,529		10,900,173		10,119,287		9,600,217		9,067,201		21,985,702		19,156,723
Non-interest income
Service charges on deposit accounts		441,382		415,202		475,120		483,865		493,482		856,584		945,078
Gain on sales or calls of investment securities		3,924		60,694		—		—		129,911		64,618		129,911
Gain on sale of stock		—		—		—		—		-		—		96,993
Earnings on bank owned life insurance		249,421		248,384		249,967		248,259		246,371		497,805		489,978
Gains (losses) on disposal of assets		—		19,975		(48,051)		—		17,919		19,975		17,919
Gain on sale of loans		484,635		563,881		290,269		129,498		335,444		1,048,516		392,338
Other fees and commissions		325,028		485,299		395,058		400,713		603,787		810,327		1,071,685
Total non-interest income		1,504,390		1,793,435		1,362,363		1,262,335		1,826,914		3,297,825		3,240,895
Non-interest expense
Salaries & employee benefits		4,331,572		4,178,896		4,274,962		4,559,711		4,010,187		8,510,468		8,906,286
Occupancy & Equipment		1,338,660		1,399,877		1,878,052		1,367,808		1,436,564		2,738,537		3,022,735
Data processing		367,190		352,060		352,956		368,717		312,042		719,250		619,202
Merger and integration		—		—		—		—		—		—		29,167
Core deposit amortization		193,766		210,117		212,970		212,970		212,214		403,883		440,764
(Gains)losses on sales of other real estate owned		9,169		134,754		(155,148)		(260,533)		(79,127)		143,923		(282,195)
OREO expense		75,552		120,201		199,094		159,238		112,659		195,753		195,725
Other operating		2,477,041		2,257,235		2,257,866		2,078,155		2,446,147		4,734,276		4,517,401
Total non-interest expense		8,792,950		8,653,140		9,020,752		8,486,066		8,491,906		17,446,090		17,449,085
Income before income taxes		3,796,969		4,040,468		2,461,793		2,376,486		2,443,429		7,837,437		4,948,533
Income tax expense		1,195,273		1,295,035		679,154		636,239		687,973		2,490,308		1,378,711
Net income		2,601,696		2,745,433		1,782,639		1,740,247		1,755,456		5,347,129		3,569,822
Less: Net income (loss) attributable to the noncontrolling interest		776		(8,720)		1,978		(4,299)		(13,880)		(7,944)		(35,269)
Net income available to common stockholders	$	2,600,920	$	2,754,153	$	1,780,661	$	1,744,546	$	1,769,336	$	5,355,073	$	3,605,091
Earnings per basic share	$	0.25	$	0.25	$	0.17	$	0.16	$	0.16	$	0.50	$	0.33
Earnings per diluted share	$	0.24	$	0.25	$	0.16	$	0.16	$	0.16	$	0.49	$	0.33
Dividend per common share	$	0.05	$	0.05	$	0.05	$	0.05	$	0.04	$	0.10	$	0.08
Average number of basic shares		10,617,225		10,807,366		10,792,544		10,785,881		10,785,370		10,711,771		17,782,770
Average number of dilutive shares		10,759,628		10,899,030		10,941,002		10,921,555		10,948,368		10,847,352		10,944,981

(1)

Financial information at December 31, 2014 has been derived from audited financial statements.

Old Line Bancshares, Inc. & Subsidiaries

Average Balances, Interest and Yields


	6/30/2015				3/31/2015				12/31/2014				9/30/2014				6/30/2014
	Average				Average				Average				Average				Average
Three Month Averages:	Balance		Yield		Balance		Yield		Balance		Yield		Balance		Yield		Balance		Yield
Assets:
Int. Bearing Deposits	$	914,076	0.08	%	$	593,602	0.12	%	$	2,902,672	0.20	%	$	3,896,273	0.17	%	$	4,024,265	0.17	%
Investment Securities(2)		161,858,721	2.56	%		164,560,281	2.70	%		168,069,134	2.40	%		159,259,044	2.94	%		170,389,632	3.00	%
Loans		1,002,896,056	4.70	%		954,873,037	5.02	%		905,241,954	4.78	%		897,381,372	4.57	%		865,944,038	4.99	%
Allowance for Loan Losses		(4,576,511)				(4,498,086)				(2,570,097)				(6,422,492)				(5,290,130)
Total Loans
Net of allowance		998,319,545	4.72	%		950,374,951	5.04	%		902,671,857	4.79	%		890,958,880	4.60	%		860,653,908	5.02	%
Total interest-earning assets		1,161,092,342	4.42	%		1,115,528,834	4.70	%		1,073,643,663	4.42	%		1,054,114,197	4.33	%		1,035,067,805	4.67	%
Noninterest bearing cash		37,463,216				34,422,919				38,925,730				42,071,667				39,297,001
Other Assets		99,548,767				102,782,917				107,033,944				109,199,887				109,464,228
Total Assets	$	1,298,104,325			$	1,252,734,670			$	1,219,603,337			$	1,205,385,751			$	1,183,829,034
Liabilities and Stockholders' Equity
Interest-bearing Deposits	$	765,327,795	0.54	%	$	772,838,785	0.48	%	$	767,241,928	0.41	%	$	776,032,831	0.44	%	$	768,879,677	0.45	%
Borrowed Funds		117,595,112	0.54	%		72,721,100	0.75	%		50,442,530	0.94	%		39,031,131	1.14	%		41,102,469	1.45	%
Total interest-bearing liabilities		882,922,907	0.54	%		845,559,885	0.50	%		817,684,458	0.45	%		815,063,962	0.47	%		809,982,146	0.50	%
Noninterest bearing deposits		269,427,296				262,926,103				255,002,560				247,346,466				234,063,213
		1,152,350,203				1,108,485,988				1,072,687,018				1,062,410,428				1,044,045,359
Other Liabilities		7,866,395				9,009,800				11,057,397				10,072,582				9,603,037
Noncontrolling Interest		252,293				258,240				261,545				262,435				270,521
Stockholder's Equity		137,635,434				134,980,642				135,597,377				132,640,306				129,910,117
Total Liabilities and
Stockholder's Equity	$	1,298,104,325			$	1,252,734,670			$	1,219,603,337			$	1,205,385,751			$	1,183,829,034
Net interest spread			3.88	%			4.20	%			3.97	%			3.86	%			4.17	%
Net interest income and
Net interest margin(1)	$	11,602,656	4.01	%	$	11,891,497	4.32	%	$	11,034,119	4.08	%	$	10,545,444	3.97	%	$	11,047,069	4.28	%

(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 resulted in a positive impact in the yield on loans for the three months ending June 30, 2015 and 2014. Fair value accretion for the current quarter and prior four quarter are as follows:


	6/30/2015				3/31/2015				12/31/2014				9/30/2014				6/30/2014
	Fair Value		% Impact on		Fair Value		% Impact on		Fair Value		% Impact on		Fair Value		% Impact on		Fair Value		% Impact on
	Accretion		Net Interest		Accretion		Net Interest		Accretion		Net Interest		Accretion		Net Interest		Accretion		Net Interest
	Dollars		Margin		Dollars		Margin		Dollars		Margin		Dollars		Margin		Dollars		Margin
Commercial loans (1)	$	(3,114)	—	%	$	8,690	—	%	$	(969)	—	%	$	(16,219)	(0.01)	%	$	(3,509)	—	%
Mortgage loans (1)		35,386	0.01			589,266	0.21			24,779	0.01			(278,619)	(0.10)			344,403	0.13
Consumer loans		4,298	—			11,390	—			6,686	—			4,209	—			6,338	—
Interest bearing deposits		37,677	0.01			37,263	0.01			110,503	0.04			131,837	0.05			162,452	0.06
Total Fair Value Accretion (Amortization)	$	74,247	0.02	%	$	646,609	0.22	%	$	140,999	0.05	%	$	(158,792)	(0.06)	%	$	509,684	0.19	%

(1)

Negative accretion on commercial and mortgage loans is due to the early payoff of loans which caused a reduction in fair value income on acquired loan portfolio.

Below is a reconciliation of the fully tax equivalent adjustments and the GAAP basis information presented in this report:


	6/30/2015				3/31/2015				12/31/2014				9/30/2014				6/30/2014
	Net Interest				Net Interest				Net Interest				Net Interest				Net Interest
	Income		Yield		Income		Yield		Income		Yield		Income		Yield		Income		Yield
GAAP net interest income	$	11,171,187	3.86	%	$	11,461,904	4.17	%	$	10,577,401	3.91	%	$	10,155,351	3.82	%	$	10,611,481	4.11	%
Tax equivalent adjustment
Federal funds sold		1	—			1	—			1	—			-	-				-
Investment securities		195,785	0.07			200,498	0.07			343,280	0.13			294,770	0.11			258,980	0.10
Loans		235,683	0.08			229,094	0.08			113,437	0.04			95,323	0.04			176,608	0.07
Total tax equivalent adjustment		431,469	0.15			429,593	0.15			456,718	0.17			390,093	0.15			435,588	0.17
Tax equivalent interest yield	$	11,602,656	4.01	%	$	11,891,497	4.32	%	$	11,034,119	4.08	%	$	10,545,444	3.97	%	$	11,047,069	4.28	%

Old Line Bancshares, Inc. & Subsidiaries

Selected Loan Information

(Dollars in thousands)


	June 30,			March 31,			December 31,			September 30,			June 30,
	2015			2015			2014			2014			2014
Acquired Loans(1)
Period End Loan Balance	$	164,300		$	171,527		$	173,659		$	186,896		$	203,211
Deferred Costs		—			—			10			9			11
Accruing		161,495			165,956			167,704			183,094			199,859
Non-accrual(2)		2,547			2,518			1,958			1,291			593
Accruing 30-89 days past due		2,102			3,053			3,687			1,569			1,478
Accruing 90 or more days past due		—			—			310			942			1,271
Other real estate owned		741			1,125			1,977			2,225			3,826
Net charge offs (recoveries)		320			(16)			52			316			106
Legacy Loans(3)
Period End Loan Balance	$	847,499		$	795,532		$	749,968		$	699,833		$	691,619
Deferred Costs		1,255			1,283			1,283			1,048			1,039
Accruing		845,391			793,576			746,376			692,854			681,592
Non-accrual		853			1,106			3,249			3,263			7,176
Accruing 30-89 days past due		1,199			851			343			3,411			2,177
Accruing 90 or more days past due		-			-			-			305			674
Other real estate owned		475			475			475			475			802
Net charge offs (recoveries)		(34)			224			(4)			2,691			(4)
Allowance for loan losses as % of held for investment loans		0.44	%		0.48	%		0.46	%		0.44	%		0.71	%
Allowance for loan losses as % of legacy held for investment loans		0.52	%		0.59	%		0.57	%		0.55	%		0.80	%
Allowance for loan losses as % of acquired held for investment loans		2.70	%		2.60	%		2.38	%		2.07	%		3.11	%
Total non-performing loans as a % of held for investment loans		0.49	%		0.37	%		0.56	%		0.96	%		1.08	%
Total non-performing assets as a % of total assets		0.38	%		0.44	%		0.65	%		0.70	%		1.20	%

(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. Until the December 31, 2013 quarter, we recognized interest income on these loans through the accretion of the difference between the carrying value of these loans and their expected cash flows. In the fourth quarter of 2013, we are no longer recording interest on these loans that were not purchased as credit impaired.

(3)

Legacy loans represent total loans excluding loans acquired on April 1, 2011 and May 10, 2013.