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Old Line Bancshares Inc. Reports Operating Results (10-Q)

May 07, 2010 | About:

Old Line Bancshares Inc. (NASDAQ:OLBK) filed Quarterly Report for the period ended 2010-03-31.

Old Line Bancshares Inc. has a market cap of $30 million; its shares were traded at around $7.76 with a P/E ratio of 18.5 and P/S ratio of 1.6. The dividend yield of Old Line Bancshares Inc. stocks is 1.5%. Old Line Bancshares Inc. had an annual average earning growth of 14.3% over the past 5 years.

Highlight of Business Operations:

In an extremely challenging economic environment, we are pleased to report continued profitability for the first quarter of 2010. Net income available to common stockholders was $464,534 or $0.12 per basic and diluted common share for the three month period ending March 31, 2010. This was $54,779 or 13.37% higher than net income available to common stockholders of $409,755 or $0.11 per basic and diluted common share for the same period in 2009.

On July 15, 2009, we repurchased from the U.S. Treasury the 7,000 shares of preferred stock that we issued to them in December 2008 under the U.S. Treasurys Capital Purchase Program through the Troubled Asset Relief Program. We paid the U.S. Treasury $7,058,333 to repurchase the preferred stock which reflects the liquidation value of the preferred stock and $58,333 of accrued but unpaid dividends. In August, we also repurchased at a fair market value of $225,000 the warrant to purchase 141,892 shares of our common stock.

Net interest income for the three months ended March 31, 2010 increased $489,403 or 18.45% to $3.1 million from $2.7 million for the same period in 2009. Interest revenue increased from $4.1 million for the three months ended March 31, 2009 to $4.4 million for the same period in 2010. As discussed below and outlined in detail in the Rate/Volume Analysis, these changes were the result of interest earning assets growing at a faster rate than interest bearing liabilities. A decline in interest rates on these interest earning assets partially offset this growth. The interest rate on interest bearing deposits also declined at a faster rate than the rate on interest earning assets. This resulted in an improvement in the net interest margin which also increased net interest income.

We offset the effect on net income caused by these declines primarily by growing total average interest earning assets $4.0 million or 14.01% to $333.6 million at March 31, 2010 from $292.6 million at March 31, 2009. The growth in average interest earning assets derived from a $28.6 million increase in average total loans and a $13.1 million increase in interest bearing deposits. These increases were offset by $1.7 million decrease in investment securities. The growth in net interest income that derived from the increase in total average interest earning assets was also offset by growth in average interest bearing deposits which grew $42.3 million to $242.9 million at March 31, 2010 from $200.6 million at March 31, 2009.

Read the The complete Report

About the author:

Charlie Tian, Ph.D. - Founder of GuruFocus. You can now order his book Invest Like a Guru on Amazon.

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