Earnings Results to Track: Old Line Bancshares Inc. (NASDAQ: OLBK)

Charles Barnes

I am Charles Barnes and I focus on breaking news stories and ensuring we (“Import Tourism”) offer timely reporting on some of the most recent stories released through market wires about “Financial” sector.

I have formerly spent over 3 years as a trader in U.S. Stock Market and is now semi-stepped down. I work on a full time basis for Import Tourism specializing in quicker moving active shares with a short term view on investment opportunities and trends.

Address: 3819 Sun Valley Road, George, WA 98824, USA
Phone: (+1) 509-785-0774
Email: charlesbarnes@importtourism.com
Charles Barnes

BOWIE, Md., July 4, 2019 – Shares of Old Line Bancshares Inc. (NASDAQ: OLBK) declined -1.33% to $26.03. The stock grabbed the investor’s attention and traded 46.060K shares as compared to its average daily volume of 43.63K shares. The stock’s institutional ownership stands at 51.80%.

Old Line Bancshares, Inc. (OLBK), the parent company of Old Line Bank, reports net income increased $2.40M, or 40.21%, to $8.50M for the three months ended March 31, 2019, contrast to $6.10M for the three month period ended March 31, 2018. Earnings were $0.50 per basic and diluted common share for the three months ended March 31, 2019, contrast to $0.48 per basic and diluted common share for the three months ended March 31, 2018.  The increase in net income for the first quarter of 2019 as contrast to the same 2018 period is mainly the result of increases of $5.60M in net interest income and $968.0K in non-interest income, partially offset by a $3.30M increase in non-interest expense.

Net loans held for investment at March 31, 2019 increased $8.00M, or 0.33%, contrast to December 31, 2018 and $660.60M, or 37.61%, contrast to March 31, 2018.  Total deposits at March 31, 2019 increased by $39.40M since December 31, 2018 and $549.80M or 30.8% contrast to March 31, 2018, while total assets increased $127.20M to $3.10B at March 31, 2019 from $2.90B at December 31, 2018 and $866.50M or 39.2%, since March 31, 2018.  The increase in loans since March 31, 2018 was a result of net organic growth of $270.50M, or 18.9%, and $390.50M in net growth in the attained loans portfolio.  The increase in loans since December 31, 2018 was a result of net organic growth of $36.80M, or 8.8% annualized offset by $28.90M in paydowns on formerly attained loans. The increase in deposits since March 31, 2018 includes $470.40M associated with the branches attained in the Bay Bank merger.

As of March 31, 2019, the Company had total assets of about $3.10B, net loans of about $2.40B and deposits of about $2.30B.  Total assets include a $25.90M operating lease right of use asset because of the adoption of the Accounting Standards Update (“ASU”) 2016-02 in the first quarter ending March 31, 2019.  There is a corresponding operating lease liability recorded of $26.20M upon adoption.

Results of Operations for the Three Months Ended March 31, 2019 Contrast to March 31, 2018:

Average interest earning assets increased $730.20M for the three month period ended March 31, 2019 contrast to the same period of 2018.  The average yield on such assets was 4.74% for the three months ended March 31, 2019 contrast to 4.52% for the comparable 2018 period.  The increase in the average balance of our interest earning assets is mainly because of organic growth and the loans we attained in the BYBK acquisition.  The increase in the average yield is mainly the result of higher yields on our investment securities available for sale and on our loans held for investment.  Average interest bearing liabilities increased $572.50M for the three month period ended March 31, 2019 contrast to the same period of 2018, mainly as a result of the deposits we attained in the BYBK acquisition.  The average rate paid on such liabilities increased to 1.53% for the three month period ended March 31, 2019 contrast to 1.03% for the same period in 2018 due mainly to higher rates paid on our money market accounts, certificates of deposit, and borrowings.

Net interest income increased $5.60M, or 31.83%, for the three months ended March 31, 2019 contrast to the same period of 2018, almost entirely because of a boost in loan interest income resulting from increases in both the average balance of and yields on loans, partially offset by a boost in interest expense.  Interest expense increased because of increases in both the average balance of and average interest rates on our deposits and borrowings.

Non-interest income increased $968.0K, or 53.91%, for the three month period ended March 31, 2019 contrast to the same period of 2018, mainly as a result of income of $600.0K from our new POS sponsorship program. A $201.0K increase in earnings on bank owned life insurance (“BOLI”), resulting from the $16.30M of BOLI attained in the BYBK acquisition, also contributed to the increase in non-interest income.

Non-interest expense increased $3.30M, or 29.63%, for the three month period ended March 31, 2019 contrast to the same period of 2018 as a result of increases in salaries and employee benefits, occupancy and equipment, core deposit amortization, data processing, and other operating expenses.  Salaries and employee benefits increased $1.60M mainly as a result of the additional staff, and occupancy and equipment expenses increased $472.0K as a result of the new branches that we attained in the BYBK acquisition.  Core deposit amortization increased $346.0K as a result of the higher amortization of premiums resulting from the deposits we attained in the BYBK acquisition. Data processing expenses increased mainly as a result of additional customer transactions mainly because of the additional branches, and therefore additional customers, resulting from our acquisition of BYBK.  Other operating expenses increased $845.0K because of increases in general operating costs, such as FDIC insurance, marketing and advertising, sponsorships and donations, loan expenses, software expense, and telephone expense.

OLBK has a market value of $434.96M while its EPS was booked as $1.73 in the last 12 months. The stock has 16.71M shares outstanding. In the profitability analysis, the company has net profit margin of 24.50%. Beta value of the company was 0.60; beta is used to measure riskiness of the security. Analyst recommendation for this stock stands at 2.00.

Charles Barnes

Charles Barnes

I am Charles Barnes and I focus on breaking news stories and ensuring we (“Import Tourism”) offer timely reporting on some of the most recent stories released through market wires about “Financial” sector. I have formerly spent over 3 years as a trader in U.S. Stock Market and is now semi-stepped down. I work on a full time basis for Import Tourism specializing in quicker moving active shares with a short term view on investment opportunities and trends. Address: 3819 Sun Valley Road, George, WA 98824, USA Phone: (+1) 509-785-0774 Email: charlesbarnes@importtourism.com