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Plans for branch consolidation announced
Old Line Bancshares, Inc. (Nasdaq:OLBK), the parent company of Old Line Bank, today announced plans of the Bank to realign branch offices within its footprint, which includes the closing and consolidation of four branches. The branches to be closed are Crofton Centre, Lexington Park, Solomons and Waldorf Charles County Plaza. All of these branches have existing Old Line Bank branches within close proximity.
The closing of the branches, which is scheduled for December 2014, will result in an estimated pre-tax cost savings of approximately $1.6 million in 2015. One-time charges related to the branch consolidation are estimated to be up to $1.2 million and will be recognized upon closing of the branches.
The planned closings and consolidations are a result of an evaluation that measured near-term growth potential in the current locations as well as the Bank’s ability to continue to service clients’ needs at nearby locations.
“Making the decision to consolidate branches is never an easy one,” said James W. Cornelsen, President and Chief Executive Officer of Old Line Bancshares, Inc. “We carefully considered our client needs while maximizing efficiencies and ensuring the future growth of the Bank. Our branch network has more than doubled since 2011. Old Line Bank offers many delivery systems that enable our customers to interact with us and take care of their banking needs. The necessity to have multiple branches in close proximity to one another is just not as important as it used to be for our customers.”
“We believe these decisions underscore our commitment to increasing shareholder value, and we are confident in our ability to continue to serve our customers throughout our footprint,” Cornelsen concluded.
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 23 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.
