Market Snapshot
  • U.S.
  • Europe
  • Asia
Ticker Volume Price Price Delta
DJIA 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 2.54 0.14%
NASDAQ 4,095.52 9.29 0.23%
Ticker Volume Price Price Delta
STOXX 50 3,155.81 16.55 0.53%
FTSE 100 6,625.25 41.08 0.62%
DAX 9,409.71 91.89 0.99%
Ticker Volume Price Price Delta
NIKKEI 14,497.09 79.56 0.55%
TOPIX 1,169.88 3.29 0.28%
HANG SENG 22,760.24 64.23 0.28%

Howard Bancorp, Inc. Announces Third Quarter 2013 Results



  Howard Bancorp, Inc. Announces Third Quarter 2013 Results

Business Wire

ELLICOTT CITY, Md. -- October 22, 2013

Howard Bancorp, Inc. (NASDAQ: HBMD), the parent company of Howard Bank, today
announced 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.”

This statement in this press release regarding our anticipated sixth branch is
forward-looking, as that term is defined by the Private Securities Litigation
Reform Act of 1995 or the Securities and Exchange Commission in its rules,
regulations, and releases. The Company intends that such forward-looking
statement be subject to the safe harbors created thereby. Such forward-looking
statement is based on current expectations regarding important risk factors,
including but not limited to real estate values, local and national economic
conditions, and the impact of interest rates on financing. Accordingly, actual
results may differ from those expressed in the forward-looking statement, and
the making of such statement should not be regarded as a representation by the
Company or any other person that results expressed therein will be achieved.
The Company does not undertake, and specifically disclaims any obligation, to
publicly release the result of any revisions that may be made to any
forward-looking statements to reflect events or circumstances after the date
of such statements or to reflect the occurrence of anticipated or
unanticipated events.

                                                                        
HOWARD BANCORP,
INC.
                                                                                        
                   Nine months ended                   Three months ended
(in thousands,
except per share   September 30,                       September 30,
data.)
Operation          2013              2012              2013              2012
Statement Data:
Interest income    $ 12,805          $ 11,506          $ 4,655           $ 3,898
Interest expense     1,381             1,549             497               486
Provision for        666               650               140               308
credit losses
Noninterest          962               549               319               216
income
Noninterest          9,508             7,843             3,707             2,659
expense
Federal and
state income tax     808               831               223               274        
expense
(benefit)
Net income         $ 1,404           $ 1,182           $ 407             $ 387        
Preferred Stock      134               471               31                157        
Dividends
Net income
available to       $ 1,270           $ 711             $ 376             $ 230        
common
shareholder
                                                                                        
Per share data
and shares
outstanding:
Net income per
common share,      $ 0.31            $ 0.24            $ 0.09            $ 0.06
basic
Net income per
common share,      $ 0.31            $ 0.24            $ 0.09            $ 0.06
diluted
Book value per
common share at    $ 8.78            $ 8.36            $ 8.78            $ 8.36
period end
Average common
shares               4,040,471         3,012,288         4,040,471         3,748,248
outstanding
Diluted average
common shares        4,040,471         3,012,288         4,040,471         3,748,248
outstanding
Shares
outstanding at       4,040,471         4,036,628         4,040,471         4,036,628
period end
                                                                                        
Financial
Condition data:
Total assets       $ 466,918         $ 368,481         $ 466,918         $ 368,481
Loans receivable   $ 401,508         $ 298,814         $ 401,508         $ 298,814
(gross)
Allowance for      $ (3,145    )     $ (2,733    )     $ (3,145    )     $ (2,733    )
credit losses
Other
interest-earning   $ 39,101          $ 45,420          $ 39,101          $ 45,420
assets
Total deposits     $ 359,888         $ 287,426         $ 359,888         $ 287,426
Borrowings         $ 57,934          $ 33,619          $ 57,934          $ 33,619
Total
stockholders’      $ 48,036          $ 46,322          $ 48,036          $ 46,322
equity
Common equity      $ 35,474          $ 33,760          $ 35,474          $ 33,760
                                                                                        
Average assets       409,813           349,116           438,795           361,488
Average
stockholders'        47,500            39,569            48,001            44,554
equity
Average common
stockholders'        34,938            27,007            35,439            31,992
equity
                                                                                        
Selected
performance
ratios:
Return on            0.46        %     0.45        %     0.37        %     0.43        %
average assets
Return on
average common       5.37        %     5.87        %     4.56        %     4.81        %
equity
Net interest         3.98        %     4.00        %     4.00        %     3.93        %
margin^(1)
Efficiency           76.76       %     74.65       %     82.80       %     73.29       %
ratio^(2)
                                                                                        
Asset quality
ratios:
Nonperforming
loans to gross       0.84        %     0.89        %     0.84        %     0.89        %
loans
Allowance for
credit losses to     0.78        %     0.91        %     0.78        %     0.91        %
loans
Allowance for
credit losses to     92.96       %     103.29      %     92.96       %     103.29      %
nonperforming
loans
Nonperforming
assets to loans      1.51        %     1.84        %     1.51        %     1.84        %
and other real
estate
Nonperforming
assets to total      1.31        %     1.51        %     1.31        %     1.51        %
assets
                                                                                        
Capital ratios:
Leverage ratio       10.86       %     12.79       %     10.86       %     12.79       %
Tier I
risk-based           11.55       %     14.95       %     11.55       %     14.95       %
capital ratio
Total risk-based     12.31       %     15.83       %     12.31       %     15.83       %
capital ratio
Average equity
to average           11.59       %     11.33       %     10.94       %     12.33       %
assets

     
(1)   Net interest margin is net interest income divided by average earning
      assets.
(2)   Efficiency ratio is noninterest expense divided by the sum of net
      interest income and noninterest income.
       

Additional information is available at www.howardbank.com.

Contact:

Howard Bancorp, Inc.
George C. Coffman, Chief Financial Officer, 410-750-0020
Sponsored Links
Advertisement
Advertisements
Sponsored Links
Advertisement