Investor Relations
| Corporate Profile
![]() HOWARD BANCORP, INC. (OTCBB - HBMD)
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| Market Value ($M) | 18.30 | | Stock Quote | $ 6.95 | | Change | $ 0 .00 % | | Volume | 0 | | As of February 8, 2010
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| HOWARD COUNTY'S ONLY LOCALLY OWNED & LOCALLY OPERATED BANK.
Howard Bancorp, Inc. is the holding company for Howard Bank. Howard Bancorp, Inc.’s Common Stock is listed on the NASDAQ Over-the-Counter Bulletin Board (OTCBB) under the symbol HBMD.OB
Howard Bancorp, Inc., the parent company of Howard Bank, announced on January 21, 2010 its operating results for the year ended December 31, 2009. For the year ended December 31, 2009, the company reported a net loss of $2.2 million versus net income of $337 thousand for 2008. The results for 2009 include a provision for possible credit losses of $3.7 million of which $2.8 million was charged off. The comparable period one year ago reflected $1.2 million in provision for credit losses and also $1.2 million in net charge-offs. Net charge-offs for the fourth quarter of 2009 were primarily in the commercial and industrial loan and commercial real estate segments of the loan portfolio. In addition to the increased provision for loan losses, 2009 was also negatively impacted by a substantial deterioration in the value of real estate classified as other real estate owned. During 2008, the bank took possession of several parcels of undeveloped real estate associated with one loan via foreclosure proceedings, and based upon a recent appraisal sought by the bank near the end of 2009, the bank recorded a $1.3 million diminution in value.
Continued growth in both loans and deposits resulted in an increase in net interest income of nearly $1.3 million or 18% when comparing net interest income of $8.7 million in 2009 to the $7.4 million during 2008. Similarly, non interest income which is primarily composed of service charges on deposits and fees on loans generated income of $756 thousand for 2009 compared to $515 thousand for the same period in 2008, an increase of $240 thousand or 47%. During 2009, total noninterest expenses increased from the $6.1 million recorded in 2008 to nearly $9.3 million in 2009. Included in the year over year increase in expenses of $3.1 million, $1.3 million of this increase was from the real estate valuation adjustment, and over $440 thousand was due to an increase in regulatory assessments related to increased FDIC insurance. Excluding these two factors, total expenses increased by $1.4 million or 23% due to our continued growth, expansion and investment initiatives- in line with revenue growth.
As of December 31, 2009 total assets had increased by 25% from 2008 levels to $286 million. Outstanding loans grew by nearly $49 million or 24%, with loans of $253 million and $204 million at December 31, 2009 and 2008, respectively. Loan growth was funded primarily from increases in deposits, with total deposits of $229 million at year end 2009 versus $182 million at December 31, 2008, resulting in an increase of deposits of $46 million or 25% during 2009. Total capital was also increased by $6.3 million in 2009 as a result of the issuance of preferred shares under the US Treasury Capital Purchase Plan contributing to an increase in shareholders' equity at 12/31/09 of $3.7 million, up 15 % from 2008 levels. Howard Bank continues to be considered well capitalized under regulatory definitions and Howard Bancorp Inc. ended the year with a total risk based capital ratio of 12.58%, a tier one capital ratio of 11.33% and a leverage ratio of 10.01%.
Asset quality for Howard Bank has been a major focus of attention for management and the board of directors throughout 2009. The bank's primary measure of asset quality is the relationship between non-accrual loans and other real estate owned (OREO) as a percentage of total assets. This ratio showed improvement for 2009 with a ratio of 2.01% as of December 31, 2009 versus 2.48% at the end of 2008.
For the fourth quarter of 2009, the company reported a quarterly increase of nearly 20% in net interest income and an increase of $97 thousand or 78% in noninterest revenues compared to the same three month period in 2008.
Chairman and CEO Mary Ann Scully stated: "While Howard Bancorp experienced solid growth in assets, revenue and pre-provision operating income in 2009, our positive core operating results were offset by increased provisions for loan losses and charge-offs arising out of the prolonged economic downturn and its effect on the bank's targeted small business customers. These provisions were the result of a small number of problem credits - with 80% of our losses attributable to six relationships. As such there are no indications that these credits represent any systemic weaknesses. Since Howard Bank focuses on small business and commercial lending, we anticipated the impact of the continued downturn in the economic cycle on small and mid-sized business early in 2009 and we determined that prudent and realistic provisioning would be necessary as the cycle progressed. That provisioning has proceeded throughout the year.
To safely meet the need for economic cycle related provisioning and to continue to seize the market opportunities for strategically targeted growth, we successfully applied for and received $6 million in the new capital carved out for healthy community banks by the US Treasury Capital Purchase Program in February of this year. This capital allowed us to grow our capital base in line with our assets. It has also, as the Treasury program intended, allowed us to continue to meet the needs of our targeted small and medium sized business marketplace in both Howard and Anne Arundel counties.
While we believe that there will be, at best, modest economic recovery in 2010, we also believe that there will be continued opportunities for a fundamentally strong company doing business in a still exceptional geographic market. As a result, we remain committed to safely growing our assets in reaction to potential shifts in market share from larger institutions to community banks and we remain positively focused on the future."
The press release, in its entirety, is available under the "Press Release" tab on the left.
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Opened in August of 2004, Howard Bank is the only locally owned and locally operated bank in Howard County, Maryland.
Howard Bank is an organization with the intent to serve small businesses operating in Howard County and their owners and employees, as well as other professionals living in Howard County. Howard County is one of the fastest growing counties in Maryland with a well-educated and well-compensated labor force.
Our market will be served through four branch offices - located in eastern Ellicott City, Columbia, Laurel, and in western Ellicott City, Maryland and additionally through the operation of couriers picking up non-cash deposits and non negotiable documents throughout the county.
Howard Bank is the only bank in the county focused exclusively on the needs of the county and specifically the only bank operating in the county focused on the business and professional segment. Four physical branches will allow us to better serve those businesses in that immediate area but will also allow us, in the immediate radius of those branches, to operate as a traditional community bank - focused on broader mass market needs and assisting in the development of those contiguous communities. These branches will also serve as public markers of the bank’s presence , improving access to broader funding sources and thus improving overall net interest margins, creating greater efficiencies in advertising and promotional expenditures and, therefore, leading to greater profitability. Land in the county, given its relatively small size but very attractive location between the cities of Baltimore and Washington, is both scarce and becoming more costly. Seizing limited attractive opportunities to locate in high traffic, high visibility, growing areas of the county will, we believe, ultimately position the bank well as those types of locations become increasingly scarce.
The Bank’s headquarters is located at Columbia 100 Corporate Park in Ellicott City (6011 University Blvd). A full service branch is located on the ground floor of the same building. A separate drive-thru facility is adjacent to this building. A second branch is located in the Hickory Ridge Village shopping center in Columbia (6430 Freetown Rd.) and consists of the branch and a 3 lane remote drive-thru facility. Our third branch is located in Laurel, Howard County, Maryland (Johns Hopkins Road and Old Columbia Road) and opened in the third quarter of 2006. The branch is a full service branch and consisting of 3,200 square foot walk-in and drive-thru facility. The branch was built on a leased pad site. Our fourth branch is located in Ellicott City, Maryland (10161 Baltimore National Pike). This branch is a full service branch and consists of approximately 3,100 square feet and a drive-thru facility.
Howard Bank offers a broad range of commercial and retail banking services:
Products and Services
Checking
Small Business Checking
Community Business Checking
Business Relationship Checking
Business Solutions Checking
Super Checking
Howard Relationship Checking
Howard Maximum Checking
Electronic Banking & Convenience Services
Business OnLine Banking
Personal OnLine Banking
Web BillPay
Classic & Gold Visa Check Cards & ATM Cards
Business and Personal Credit Cards
Credit and Lending Services
Commercial Lines of Credit
Commercial Construction Loans
Commercial Real Estate Loans
Mini-perm Financing
SBA 7a, SBA Express, SBA 504, SBA Patriot
Receivables Financing–commercial & government
Equipment Financing
Home Equity Loans & Lines
Residential Mortgages
Consumer Installment Loans
Unsecured Lines of Credit
Renaissance Loan Fund
Public Servant Loan Program
Sustainability Loan Program
Savings, Money Markets & CD's
Business Savings
Personal Money Market
Business Money Market
CDs with terms of 3 to 60 months
IRA
Personal Savings
Junior Savings
IRA Savings
CDARS
Cash Management & Business Services
IOLTA, MAHT & Escrow accounts
LockBox processing
4:00 p.m. same day branch deposit
Free Courier service for non-negotiable deposits
ACH & Wire Transfers
Hands On Evaluator
Night Depositories
Customer Convenience drop off boxes at branches
Hands on Connection (Remote Deposit)
Repurchase Agreements
Merchant Card Services
Master Notes
Investment Services
Annuities
Mutual Funds
WRAP Accounts
Individual Securities
SEP's, SERP's, 401K's
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