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Old Line Bancshares, Inc. Reports Record Net Income of $10.2 Million, a 73% Increase, for the Quarter Ended December 31, 2018

Old Line Bancshares, Inc. Reports Record Net Income of $10.2 Million, a 73% Increase, for the Quarter Ended December 31, 2018

BOWIE, Md., Jan. 23, 2019 (GLOBE NEWSWIRE) -- Old Line Bancshares, Inc. (“Old Line Bancshares” or the “Company”) (OLBK), the parent company of Old Line Bank (the “Bank”), reports net income increased $4.3 million, or 73.49%, to $10.2 million for the three months ended December 31, 2018, compared to $5.9 million for the three month period ended December 31, 2017.  Earnings were $0.60 per basic and $0.59 per diluted common share for the three months ended December 31, 2018, compared to $0.47 per basic and $0.46 per diluted common share for the three months ended December 31, 2017.  The increase in net income for the fourth quarter of 2018 as compared to the same 2017 period is primarily the result of increases of $6.8 million in net interest income and $2.4 million in non-interest income, partially offset by a $3.2 million increase in non-interest expense.    

Our efficiency ratio was 49.39% for the three months ended December 31, 2018 compared to 56.45% for the same three month period of 2017. Return on average assets (“ROAA”) was 1.37% for the quarter compared to 1.12% for the quarter ended December 31, 2017.

Net loans held for investment at December 31, 2018 increased $712.9 million, or 42.02%, compared to December 31, 2017.  Net loans held for investment includes loans that were acquired in the Bay Bancorp, Inc. (“BYBK”) acquisition of approximately $477 million at December 31, 2018.  We sold an additional $3.7 million in loans during the quarter that we previously identified as troubled loans acquired in the BYBK acquisition, resulting in a gain on sale of $556 thousand. Loans held for sale increased approximately $7.2 million compared to December 31, 2017.

Net income was $27.2 million for the twelve months ended December 31, 2018, compared to $16.0 million for the same period of 2017, an increase of $11.3 million, or 70.50%.  Earnings were $1.73 per basic and $1.71 per diluted common share for the twelve months ended December 31, 2018, an increase of 25.73% and 26.42%, compared to $1.38 per basic and $1.35 per diluted common share for the same period of 2017.  The increase in net income is primarily the result of increases of $27.8 million, or 44.81%, in net interest income and $4.2 million in non-interest income, partially offset by a $17.8 million increase in non-interest expense. 

The Company incurred merger expenses during the twelve month periods ended December 31, 2018 and 2017 in connection with the Company’s acquisitions of BYBK in April 2018 and DCB Bancshares, Inc. (“DCBB”), the former parent company of Damascus Community Bank, in July 2017.  Excluding these expenses, operating net income (which is a non-GAAP financial measure) for the twelve months ended December 31, 2018 would have been $34.9 million or $2.22 per basic and $2.19 per diluted common share, compared to operating net income of $18.9 million or $1.63 per basic and $1.60 per diluted common share for the twelve months ended December 31, 2017, an increase of 84.78% for the 2018 period over the same twelve month period of 2017.

Our efficiency ratio was 61.51% and 64.14%, respectively, for the twelve months ended December 31, 2018 and 2017.  Excluding the merger-related expenses we incurred during 2018 and 2017, the adjusted operating efficiency ratio (a non-GAAP financial measure) improved to 52.28% for the twelve months ended December 31, 2018 from 58.44% for the same period of 2017.

ROAA was 1.01% and 0.84%, respectively, for the twelve months ended December 31, 2018 and 2017.  Excluding the merger-related expenses we incurred during 2018 and 2017, the adjusted ROAA (a non-GAAP financial measure) improved to 1.29% from 0.99% for the twelve months ended December 31, 2018 and 2017, respectively.

Net interest income increased during each of the three and twelve month periods ended December 31, 2018 compared to the same periods of 2017, primarily as a result of increases in interest income on loans, partially offset by increases in interest expense.  Non-interest expense increased for the three month period ended December 31, 2018 compared to the same period of 2017 primarily due to increases in salaries and benefits, occupancy and equipment, core deposit amortization, and other operating expenses.  Non-interest expense increased for the twelve month period ended December 31, 2018 primarily as a result of increases of $6.4 million in salaries and employee benefits and $5.4 million in merger-related expenses, as well as increases in occupancy and equipment, data processing, core deposit amortization, and other operating expenses.  Salaries and benefits and occupancy and equipment expenses increased primarily as a result of the additional staff and the new branches, and core deposit amortization increased primarily as a result of higher premiums due to the deposits, that we acquired in the BYBK and DCBB acquisitions.  Other operating expenses increased due to increases in general operating costs, such as FDIC insurance, marketing and advertising, sponsorships and donations, loan expenses, software expense, and telephone expense.

As of December 31, 2018, the Company had total assets of approximately $2.95 billion, net loans of approximately $2.4 billion and deposits of approximately $2.3 billion.

James W. Cornelsen, President and Chief Executive Officer of Old Line Bancshares, stated: “We are extremely pleased to report a positive trend in our financial performance and steady balance sheet growth.  We had a record-breaking fourth quarter, increasing net income by 73.49% to $10.2 million.  Cost management was a key driver of our improved performance during the quarter, as reflected in our improved efficiency ratio of 49.39% and ROA of 1.37%.  Net income for the year also increased, up 70.50% over 2017.  We continue to pride ourselves in building relationships with our customers that results in loan and deposit growth.  We had significant organic loan growth of 23.15% for the year while maintaining strong asset quality, with non-performing assets at 0.20% of total assets at December 31, 2018.  Our efforts have led to great strides in our financial performance this year, to the benefit of our stockholders.  While we do not expect to continue to experience this level of  growth during 2019, we believe that we are in a good position heading into the year to continue to enhance earnings and our balance sheet.”

4th QUARTER HIGHLIGHTS:

  • Average gross loans increased $740.3 million, or 44.19%, during the three month period ended December 31, 2018, to $2.4 billion from $1.7 billion during the three month period ended December 31, 2017. 

  • Total yield on interest earning assets increased to 4.70% for the three months ended December 31, 2018, compared to 4.39% for the same period of 2017. 

  • ROAA and return on average equity (“ROAE”) were 1.37% and 10.70%, respectively, compared to ROAA and ROAE of 1.12% and 11.09%, respectively, for the fourth quarter of 2017. 

  • The efficiency ratio was 49.39% for the three months ended December 31, 2018 compared to 56.45% for the same period of 2017.

  • We terminated the BYBK pension plan at more advantageous terms than we had expected, resulting in a decrease in goodwill of $1.1 million.

  • Total deposits grew by $53.8 million, or 2.40%, during the quarter.  

2018 FULL YEAR HIGHLIGHTS:

  • The merger with BYBK became effective April 13, 2018, resulting in total assets of $2.9 billion.

  • ROAA and ROAE were 1.01% and 8.29%, respectively, compared to ROAA and ROAE of 0.84% and 8.53%, respectively, for the twelve months ended December 31, 2017.  Excluding the merger-related expenses, adjusted ROAA and ROAE (each a non-GAAP financial measure) would have been 1.29% and 10.62%, respectively, for the twelve months ended December 31, 2018 and 0.99% and 9.77% for the twelve months ended December 31, 2017.

  • Excluding merger-related expenses, the adjusted efficiency ratio (a non-GAAP financial measure) was 52.28% for the twelve months ended December 31, 2018 compared to 58.44% for the same period of 2017.

  • The net interest margin was 3.75% compared to 3.69% for the twelve months ended December 31, 2017.  Total yield on interest earning assets increased to 4.63%  compared to 4.35% for the twelve months ended December 31, 2017. 

  • Net loans held for investment increased $712.9 million to $2.4 billion from $1.7 billion at December 31, 2017.  Organic loan growth was $313.5 million, or 23.15%.

  • Average gross loans increased $675.6 million, or 44.29%, to $2.4 billion from $1.5 billion during the twelve month period ended December 31, 2017.  

  • Troubled acquired loans totaling $25.3 million were sold.

  • Total assets increased $844.4 million, or 40.10%, primarily due to increases of $712.9 million in loans held for investment, $68.2 million in goodwill, $26.3 million in bank owned life insurance, $9.1 million in core deposit intangibles, and $9.3 million in cash and cash equivalents.

  • Total deposits grew by $643.1 million, or 38.91%.  

  • Non-performing assets to total assets remain consistent at 0.20% at December 31, 2018 compared to 0.18% at December 31, 2017.

  • We ended the fourth quarter of 2018 with a book value of $21.77 per common share and a tangible book value of $15.39 per common share compared to $16.61 and $14.10, respectively, at December 31, 2017.

  • We maintained appropriate levels of liquidity and by all regulatory measures remained “well capitalized.”

Results of Operations for the Three Months Ended December 31, 2018 Compared to December 31, 2017

Average interest earning assets increased $751.7 million for the three month period ended December 31, 2018 compared to the same period of 2017.  The average yield on such assets was 4.70% for the three months ended December 31, 2018 compared to 4.39% for the comparable 2017 period.  The increase in the average yield is primarily the result of higher yields on our loans held for investment.  Average interest bearing liabilities increased $585.8 million for the three month period ended December 31, 2018 compared to the same period of 2017, primarily as a result of the deposits we acquired in the BYBK acquisition.  The average rate paid on such liabilities increased to 1.39% for the three month period ended December 31, 2018 compared to 0.91% for the same period in 2017 due to higher rates paid on both interest bearing deposits and borrowings.

The net interest margin for the three months ended December 31, 2018 decreased to 3.66% from 3.72% in the fourth quarter of 2017.  The net interest margin decreased due to increased interest rates on both deposits and on our borrowed funds, partially offset by an increase in the yield on our interest-earning assets.  The net interest margin during the fourth quarter of 2018 was also affected by the amount of accretion on acquired loans.  Accretion increased due to a higher amount of early payoffs on acquired loans with fair value marks during the three months ended December 31, 2018 compared to the same period of 2017.  The fair value accretion/amortization is recorded on pay-downs recognized during the quarter, which contributed 13 basis points for the three months ended December 31, 2018 compared to five basis points for the three months ended December 31, 2017.  

Net interest income increased $6.8 million, or 39.71%, for the three months ended December 31, 2018 compared to the same period of 2017, almost entirely due to an increase in loan interest income resulting from increases in both the average balance of and yields on loans, partially offset by an increase in interest expense.  Interest expense increased due to increases in both the average balance of and average interest rates on our deposits and borrowings. 

The provision for loan losses increased $514 thousand for the three month period ended December 31, 2018 compared to the same period of 2017 due to the organic loan growth.

Non-interest income increased $2.4 million, or 133.06%, for the three month period ended December 31, 2018 compared to the same period of 2017, primarily as a result of income of $641 thousand from our new point of sale (“POS”) sponsorship program and increases of $772 thousand in other fees and commissions, $556 thousand in gain on sales of loans and $225 thousand in earnings on bank owned life insurance (“BOLI”).  The increase in other fees and commissions is primarily due to $518 thousand of reversals on previously charged-off loans during the quarter.  The increase in gain on sale of loans is the result of the sale of $3.7 million in loans that we previously identified as troubled loans acquired in the BYBK acquisition; we had no such sales during the same period of 2017. The increase in earnings on BOLI is due to the $16.3 million of BOLI acquired in the BYBK acquisition and $8.5 million in new BOLI policies purchased since December 31, 2017.

Non-interest expense increased $3.2 million, or 29.96%, for the three month period ended December 31, 2018 compared to the same period of 2017, primarily as a result of increases in salaries and benefits, occupancy and equipment, core deposit amortization, and other operating expenses.  Salaries and benefits increased $1.5 million primarily as a result of the additional staff, and occupancy and equipment expenses increased $403 thousand primarily as a result of the new branches, that we acquired in the BYBK acquisition.  Core deposit amortization increased $345 thousand as a result of the higher premiums resulting from the deposits we acquired in the BYBK acquisition. Other operating expenses increased $801 thousand due to increases in general operating costs, such as FDIC insurance, marketing and advertising, sponsorships and donations, loan expenses, software expense, and telephone expense.

Results of Operations for the Twelve Months Ended December 31, 2018 Compared to December 31, 2017

Average interest earning assets increased $692.2 million for the twelve month period ended December 31, 2018 compared to the same period of 2017.  The average yield on such assets was 4.63% for the twelve months ended December 31, 2018 compared to 4.35% for the comparable 2017 period.  The increase in the average yield on interest earning assets is primarily the result of higher yields on our loans held for investment and our investment portfolio.  Average interest-bearing liabilities increased $489.3 million for the twelve month period ended December 31, 2018 compared to the same period of 2017.  The average rate paid on such liabilities increased to 1.19% for the twelve month period ended December 31, 2018 compared to 0.88% for the same period in 2017, due to higher rates paid on both interest bearing deposits and borrowings.

The net interest margin for the twelve months ended December 31, 2018 increased to 3.75% from 3.69% in the same period of 2017.  The net interest margin increased due to an improvement in the yield on interest earning assets and an increase in non-interest bearing deposits as a source of funding, partially offset by the increase in interest expense, due to increased interest paid on both deposits and on our borrowed funds.  The net interest margin during 2018 was also affected by the amount of accretion on acquired loans.  Accretion increased due to a higher amount of early payoffs on acquired loans with fair value marks during the twelve months ended December 31, 2018 compared to the same period of 2017.  The fair value accretion/amortization is recorded on pay-downs recognized during the periods, which contributed 13 basis points for the twelve months ended December 31, 2018 compared to seven basis points for 2017.                                                                              

Net interest income increased $27.8 million, or 44.81%, for the twelve month period ended December 31, 2018 compared to the same period of 2017, almost entirely due to an increase in loan interest income resulting from increases in both the average balance of and yields on loans, partially offset by an increase in interest expense.  Interest expense increased due to increases in both the average balance of and average interest rates on our deposits and borrowings. 

The provision for loan losses increased $894 thousand for the twelve month period ended December 31, 2018 compared to the same period of 2017 due to organic loan growth.

Non-interest income increased $4.2 million, or 53.59%, for the twelve month period ended December 31, 2018 compared to the same period of 2017, primarily as a result of income of $2.0 million from our new POS sponsorship program as well as increases of $1.0 million in other fees and commissions, $639 thousand in earnings on BOLI, $791 thousand in service charges on deposit accounts, and $462 thousand in gain on sale of loans, partially offset by a decrease of $498 thousand in income on marketable loans.  The increase in other fees and commissions is primarily due to increases of $131 thousand in rental income, $415 thousand in miscellaneous income and $182 thousand of reversals on previously charged-off loans during 2018. The increase in earnings on BOLI is due to the $16.3 million of BOLI acquired in the BYBK acquisition and $8.5 million in new BOLI policies purchased since December 31, 2017.  The increase in service charges on deposit accounts is the result of increased income on bank debit cards due to the higher deposit base primarily as a result of the DCBB and BYBK acquisitions.  The decrease in income on marketable loans is the result of a decrease in the premium amounts we received on residential mortgage loans that we sold in the secondary market compared to the same period of 2017. 

Non-interest expense increased $17.8 million, or 39.80%, for the twelve month period ended December 31, 2018 compared to the same period of 2017, primarily as a result of increases in merger and integration expenses, salaries and benefits, occupancy and equipment, data processing, core deposit amortization, and other operating expenses.  We incurred $9.4 million in merger and integration expenses during the twelve month period ended December 31, 2018 due to the BYBK acquisition compared to $4.0 million in merger and integration expenses due to the DCBB acquisition during 2017.  Salaries and benefits increased $6.4 million primarily as a result of the additional staff, and occupancy and equipment expenses increased $1.8 million primarily as a result of the new branches, that we acquired in the DCBB and BYBK acquisitions.  The $1.0 million increase in data processing expenses resulted from additional customer transactions due to growth.  Core deposit amortization increased $1.2 million as a result of the higher premiums resulting from the deposits we acquired in the DCBB and BYBK acquisitions. Other operating expenses increased $2.1 million during the 2018 period due to increases in general operating costs.  

Old Line Bancshares 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. The Bank has 37 branches located in its primary market area of the suburban Maryland (Washington, D.C. suburbs, Southern Maryland and Baltimore suburbs) counties of Anne Arundel, Baltimore, Calvert, Carroll, Charles, Harford, Howard, Frederick, Montgomery, Prince George's and St. Mary's, and Baltimore City.  It also targets customers throughout the greater Washington, D.C. and Baltimore metropolitan areas. 

Statements included in this press release include non-GAAP financial measures and should be read along with the accompanying tables, which provide a reconciliation of non-GAAP financial measures to GAAP financial measures.  The Company’s management uses these non-GAAP financial measures, and believes that non-GAAP financial measures provide additional useful information that allows readers, to evaluate the ongoing performance of the Company and provide meaningful comparison to its peers.  Non-GAAP financial measures should not be considered as an alternative to any measure of performance or financial condition as promulgated under GAAP, and investors should consider the Company’s performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the Company.  Non-GAAP financial measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the results or financial condition as reported under GAAP.

The statement in this press release that “while we do not expect to continue to experience this level of growth during 2019, we believe that we are in a good position heading into the year to continue to enhance earnings and our balance sheet,” constitutes a “forward-looking statement” as defined by Federal securities laws.  Such statement is subject to risks and uncertainties that could cause actual results to differ materially from future results expressed or implied by such forward-looking statement.  Actual results could differ materially from those currently anticipated due to a number of factors, including, but not limited to: deterioration in general economic conditions, an economic slowdown greater than we have anticipated in 2019, or a return to recessionary conditions; that changes in interest rates and monetary policy could adversely affect Old Line Bancshares; changes in competitive, governmental, regulatory, technological, and other factors that may affect Old Line Bancshares specifically or the banking industry generally, including effects on the economy in our local markets as a result of the ongoing partial government shutdown; changes in regulatory requirements and/or restrictive banking legislation that may adversely affect our ability to collect on outstanding loans or otherwise negatively impact our business; and other risks discussed in our annual report on Form 10-K for the year ended December 31, 2017 and that may be discussed in other filings we may make with the U.S. Securities and Exchange Commission.  Forward-looking statements speak only as of the date they are made.  Old Line Bancshares undertakes no obligation to 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 may make, please refer to the filings made by Old Line Bancshares with the U.S. Securities and Exchange Commission available at www.sec.gov.

Old Line Bancshares, Inc. & Subsidiaries
 Consolidated Balance Sheets
           
  December 31,
2018
September 30,
2018
June 30,
2018
March 31,
2018
December 31,
2017 (1)
  (Unaudited) (Unaudited) (Unaudited) (Unaudited)  
Cash and due from banks $ 41,495,763   $ 45,774,719   $ 61,684,888   $ 85,617,226   $ 33,562,652  
Interest bearing accounts   2,051,273     3,522,685     3,845,419     2,687,988     1,354,870  
Federal funds sold   953,582     1,008,801     928,337     200,366     256,589  
Total cash and cash equivalents   44,500,618     50,306,205     66,458,644     88,505,580     35,174,111  
Investment securities available for sale   219,705,762     216,358,059     209,941,534     210,353,788     218,352,558  
Loans held for sale   11,564,993     8,829,777     34,037,532     3,934,086     4,404,294  
Loans held for investment, less allowance for loan losses of $7,471,023                              
and $5,920,586 for December 31, 2018 and December 31, 2017   2,409,227,698     2,384,579,814     2,347,821,496     1,756,576,833     1,696,361,431  
Equity securities at cost   11,150,750     13,063,250     14,854,746     7,782,847     8,977,747  
Premises and equipment   42,624,787     43,060,727     43,719,013     40,991,968     41,173,810  
Accrued interest receivable   7,958,511     8,072,826     7,715,123     5,310,151     5,476,230  
Bank owned life insurance   67,920,021     67,490,846     67,062,920     41,849,569     41,612,496  
Annuity plan   6,268,426     6,298,627     6,276,320     5,981,809     5,981,809  
Other real estate owned   882,510     1,469,166     2,357,947     1,799,598     2,003,998  
Goodwill   93,297,441     94,403,635     94,403,635     25,083,675     25,083,675  
Core deposit intangible   15,362,232     16,024,950     16,688,635     5,985,657     6,297,970  
Other assets   19,543,346     21,060,315     22,038,116     16,556,056     14,713,323  
Total assets $ 2,950,007,095   $ 2,931,018,197   $ 2,933,375,661   $ 2,210,711,617   $ 2,105,613,452  
                               
Deposits                              
Non-interest bearing $ 559,059,672   $ 581,339,177   $ 603,257,708   $ 572,119,981   $ 451,803,052  
Interest bearing   1,736,989,227     1,660,902,293     1,604,420,214     1,213,584,463     1,201,100,317  
Total deposits   2,296,048,899     2,242,241,470     2,207,677,922     1,785,704,444     1,652,903,369  
Short term borrowings   228,184,856     272,534,890     314,676,164     161,477,872     192,611,971  
Long term borrowings   38,371,291     38,304,981     38,238,670     38,172,653     38,106,930  
Accrued interest payable   2,844,715     1,643,666     1,827,605     1,105,830     1,471,954  
Supplemental executive retirement plan   5,997,819     6,123,518     6,057,063     5,975,159     5,893,255  
Income taxes payable   139,579     -     -     4,182,749     2,157,375  
Other liabilities   7,649,402     9,989,481     10,553,800     3,700,120     4,741,412  
Total liabilities   2,579,236,561     2,570,838,006     2,579,031,224     2,000,318,827     1,897,886,266  
                               
Stockholders' equity                              
Common stock   170,311     169,889     169,889     125,667     125,083  
Additional paid-in capital   293,501,107     293,139,653     292,836,679     149,691,736     148,882,865  
Retained earnings   82,628,356     74,167,389     67,601,752     66,573,919     61,054,487  
Accumulated other comprehensive loss   (5,529,240 )   (7,296,740 )   (6,263,883 )   (5,998,532 )   (2,335,249 )
Total stockholders' equity   370,770,534     360,180,191     354,344,437     210,392,790     207,727,186  
Total liabilities and
  stockholders' equity
$ 2,950,007,095   $ 2,931,018,197   $ 2,933,375,661   $ 2,210,711,617   $ 2,105,613,452  
Shares of basic common stock outstanding   17,031,052     16,988,883     16,988,883     12,566,696     12,508,332  
                               
(1) Financial information at December 31, 2017 has been derived from audited financial statements.


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Old Line Bancshares, Inc. & Subsidiaries
Consolidated Statements of Income
               
  Three Months
Ended
December 31,
Three Months
Ended
September 30,
Three Months
Ended
June 30,
Three Months
Ended
March 31,
Three Months
Ended
December 31,
Twelve Months
Ended
December 31,
Twelve
Months
Ended
December 31,
    2018     2018     2018     2018     2017     2018     2017  
  (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
Interest income              
Loans, including fees $ 29,284,012   $ 29,056,813   $ 26,448,728   $ 19,700,762   $ 18,979,170   $ 104,490,315   $ 68,132,398  
Investment securities and other   1,743,737     1,696,512     1,719,989     1,623,577     1,452,644     6,783,815     5,480,323  
Total interest income   31,027,749     30,753,325     28,168,717     21,324,339     20,431,814     111,274,130     73,612,721  
Interest expense                                          
Deposits   5,067,752     4,098,787     3,146,235     2,306,733     2,146,390     14,619,507     7,321,031  
Borrowed funds   1,891,413     1,768,532     1,714,250     1,334,831     1,057,846     6,709,026     4,177,602  
Total interest expense   6,959,165     5,867,319     4,860,485     3,641,564     3,204,236     21,328,533     11,498,633  
Net interest income   24,068,584     24,886,006     23,308,232     17,682,775     17,227,578     89,945,597     62,114,088  
Provision for loan losses   613,672     307,870     532,257     394,896     100,000     1,848,695     955,108  
Net interest income after
  provision for loan losses
  23,454,912     24,578,136     22,775,975     17,287,879     17,127,578     88,096,902     61,158,980  
Non-interest income                                          
Service charges on
  deposit accounts
  745,646     728,550     722,879     576,584     593,641     2,773,659     1,982,981  
POS sponsorship program   641,063     711,577     673,502     -     -     2,026,142     -  
Gain on sales or calls
  of investment securities
  -     -     -     -     -     -     35,258  
Earnings on bank owned
  life insurance
  531,604     520,785     461,056     292,936     306,355     1,806,381     1,167,467  
Gains (losses) on disposal of assets   -     (1,100 )   -     14,366     (46,400 )   13,266     73,663  
Loss on write down of stock   -     (91,498 )   (60,998 )   -     -     (152,496 )   -  
Gain on sale of loans   556,358     -     -     -     -     556,358     94,714  
Income on marketable loans   479,824     411,850     511,879     418,472     479,588     1,822,025     2,319,806  
Other fees and commissions   1,238,049     525,171     879,733     492,663     465,697     3,135,616     2,126,716  
Total non-interest income   4,192,544     2,805,335     3,188,051     1,795,021     1,798,881     11,980,951     7,800,605  
Non-interest expense                                          
Salaries & employee benefits   6,743,042     7,491,736     7,201,335     5,485,450     5,267,469     26,921,563     20,551,525  
Occupancy & equipment   2,339,115     2,349,691     2,242,640     1,980,401     1,936,420     8,911,847     7,073,696  
Data processing   699,769     659,926     702,182     609,639     510,073     2,671,516     1,671,720  
Merger and integration   -     2,282,705     7,121,802     -     -     9,404,507     3,985,514  
Core deposit amortization   662,718     663,685     540,737     312,313     317,268     2,179,453     968,880  
(Gains) losses on sales of
  other real estate owned
  (27,801 )   26,266     41,956     12,516     -     52,937     (13,589 )
OREO expense   77,142     (99,957 )   27,995     184,994     45,224     190,174     301,394  
Other operating   3,465,550     3,288,286     3,198,759     2,406,646     2,664,559     12,359,241     10,303,907  
Total non-interest expense   13,959,535     16,662,338     21,077,406     10,991,959     10,741,013     62,691,238     44,843,047  
                                           
Income before income taxes   13,687,921     10,721,133     4,886,620     8,090,941     8,185,446     37,386,615     24,116,538  
Income tax expense   3,526,073     2,456,304     2,160,787     2,025,759     2,328,011     10,168,923     8,152,724  
Net income available to
  common stockholders
$ 10,161,848   $ 8,264,829   $ 2,725,833   $ 6,065,182   $ 5,857,435