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Analyst Blog

Shares of Old Line Bancshares Inc. (OLBK - Snapshot Report) crafted a new 52-week high, touching $17.64 in the beginning of the trading session on Feb 7. However, the stock closed the session at $17.47, which reflects a solid return of 47.2% in a year’s time. The trading volume for the session was 92,066 shares.

Despite hitting its 52-week high, this Zacks Rank #1 (Strong Buy) stock has plenty of upside left, given the strong estimate revisions it witnessed over the last 30 days.

Growth Drivers

Impressive fourth-quarter 2013 results, including significant improvement in the top line, as well as increase in loan and deposit balances were the primary growth drivers for Old Line Bancshares.

On Jan 27, Old Line Bancshares reported its fourth-quarter 2013 earnings of 41 cents per share, beating the Zacks Consensus Estimate by 57.7%. Further, results came in well ahead of the prior-year quarter earnings of 25 cents.

A year-over-year increase of 31.6% in net interest income and a substantial rise in non interest income (owing to significant gains on sale of loans) were the tailwinds for the quarter. Also, net loans and deposits rose 42.4% and 32.5% year over year, respectively. However, a 30.1% increase in non-interest expenses acted as the headwind for the quarter.

Estimate Revisions Show Potency

Over the last 30 days, the Zacks Consensus Estimate for 2014 advanced 4% to $1.04 per share. Also, for 2015, it moved north around 7% to $1.23 per share.

Some other North-East banks worth considering include The Bancorp Inc. (TBBK - Snapshot Report), Bridge Bancorp, Inc. (BDGE - Snapshot Report) and CNB Financial Corp. (CCNE - Snapshot Report). All these companies carry the same Zacks Rank as Old Line Bancshares.

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