Corporate Profile HOWARD BANCORP, INC. (NASDAQ - HBMD)
Market Value ($M)
As of December 5, 2013 Minimum 20 minute delay.
Howard Bancorp, Inc. is the holding company for Howard Bank, a community bank serving the Greater Baltimore and Central Maryland Region.
Howard Bancorp, Inc.’s Common Stock is listed on NASDAQ under the symbol HBMD
Howard Bancorp, Inc.,the parent company of Howard Bank, announced on October 22, 2013 its operating results through September 30, 2013 with the following highlights:
• Total assets grew to $467 million at September 30, 2013, representing growth of $99 million or 27% compared to total assets of $368 million at September 30, 2012.
• Total loans increased by nearly $103 million or 34%, to $402 million, when comparing September 30, 2013 to September 30, 2012.
• September 30, 2013 deposits increased to $360 million from $287 million at September 30, 2012, representing growth of over $73 million or 25%, of which noninterest bearing deposits grew by over $11 million or 14% during the twelve months ending September 30, 2013.
• The above increases in loans, deposits and assets were achieved via continued organic growth along with the purchase from Cecil Bank of its branch located at 3 West Bel Air Avenue, Aberdeen, Maryland. Pursuant to the branch purchase, Howard Bank acquired $37.1 million in loans and $35.2 million in deposits during the third quarter of 2013.
• For the nine months ended September 30, 2013, net income available to common shareholders was $1.3 million, which compared to $711 thousand for the same nine month period in 2012, reflecting an increase of nearly $589 thousand or 83%. For the three months ended September 30, 2013, net income available to common shareholders was $376 thousand which was an increase of $146 thousand or 63% over the $230 thousand earned in the third quarter of 2012.
• Even with the issuance of nearly 1.4 million additional shares resulting from an offering which closed in the third quarter of 2012, the strong growth in earnings noted above resulted in increased earnings per share (EPS). EPS for the nine months ended September 30, 2013 was $0.31 compared to $0.24 for the nine month period in 2012. Also noteworthy is that the $0.31 EPS for the nine months of 2013 is equal to the amount reported for the full twelve month EPS for the year ended December 31, 2012. For the three months ended September 30, 2013, EPS was $0.09, which compares to EPS of $0.06 for the third quarter of 2012.
Through the first nine months of 2013, net income was $1.41 million, versus net income of $1.18 million for the nine month period in 2012 representing a 19% increase in net income. The dividends paid on our preferred stock fell from $471 thousand for the first nine months of 2012 to $134 thousand for the nine months ended September 30, 2013, due to a reduction in the dividend rate that was achieved given our growth in qualifying small business loans.
Through the first nine months of 2013, net interest income was $11.4 million compared to $10.0 million for the same period of 2012, an increase of nearly $1.4 million or 14%. Noninterest income also increased, to $962 thousand during the first nine months of 2013 compared to $549 thousand for the same period of 2012, representing an increase of $413 thousand or 75%. A large contributor to the increase was because the bank initiated a Bank Owned Life Insurance (BOLI) program in January 2013, which generated $210 thousand of income during the first nine months of 2013. Year to date total noninterest expenses of $9.5 million represented an increase of $1.7 million or 21% compared to total noninterest expenses for the first three quarters of 2012. Included in the $1.7 million increase in expenses during 2013 were increased compensation costs of nearly $1.0 million due to the anticipated opening of our sixth branch location, additions to our business development initiatives in Greater Baltimore and also our desire to create a more robust mortgage banking platform. In addition to the growth in staffing related expenses was an increase in professional fees of nearly $200 thousand resulting from legal and investment banking fees associated with our acquisition of our Aberdeen, Maryland branch during the third quarter of 2013, and also an expense increase of approximately $300 thousand due to valuation adjustments on the carrying value of certain Other Real Estate Owned (OREO) properties.
When comparing the results for the third quarter of 2013 to the same period in 2012, net interest income of $4.2 million for 2013 also showed positive momentum, increasing by nearly $750 thousand or 22% compared to net interest income of $3.4 million in the third quarter of 2012. For the three months ended in September, noninterest income was $319 thousand versus $216 thousand for the same period of 2012. The provision for credit losses for the third quarter of 2013 was $140 thousand compared to $308 thousand for the third quarter of 2012, a decrease of nearly $168 thousand or 55%. Noninterest expenses for the third quarter of 2013 were $3.7 million, which reflected an increase of $1.0 million over the $2.7 million in expenses for the third quarter of 2012. The $1.0 million increase for the third quarter of 2013 versus the third quarter of 2012 was due to an increase of approximately $400 thousand in compensation costs associated with our branch expansion and focus on growing our greater Baltimore presence and also our mortgage banking activities. In addition to the compensation increase, we incurred the previously mentioned increase in professional fees resulting from legal and investment banking fees on our branch acquisition and also the OREO valuation adjustment in the third quarter of 2013.
At September 30, 2013, Howard Bancorp, Inc. had total capital of $48.0 million representing 10.30% of period end total assets compared to a 12.57% ratio at September 30, 2012. This decreased equity-to-asset ratio is the result of utilizing much of the additional capital raised during 2012 toward revenue producing organic and acquired asset growth.
In addition to growing our balance sheet categories, our asset quality measures continue to improve. As of September 30, 2013 Howard Bank had non-accrual loans totaling $3.4 million, representing less than 1% of total loans. The total of nonaccrual loans and OREO totaled $5.8 million at September 30, 2013, which represented 1.23% of total assets, while this same measure at the end of the third quarter of 2012 was 1.51%.
Chairman and CEO Mary Ann Scully stated, “A consistent ability to grow customer driven loans and deposits, earnings and community impact is the surest indication of Howard Bancorp’s success in meeting its goal of maximizing long term stakeholder return. We believe that all of our recent investments in experienced staff, desirable sales and servicing locations, acquisitions and new business lines are showing tangible signs of achieving higher returns on these investments; ensuring that an upward trajectory continues to be our focus.”
The press release, in its entirety, is available under the "Press Release" tab on the left.