Howard Bancorp, Inc. (OTC, Electronic Bulletin Board: HBMD), the parent company of Howard Bank, today reported its quarterly and year-to-date financial results for the period ending June 30, 2010. For the first six months of 2010 Howard Bancorp recorded net income of $530 thousand which represents an increase of over 400% compared to net income of $104 thousand for the first half of 2009. Net interest income of $5.4 million for the first six months of 2010 increased by nearly $1.5 million or 37% compared to the same period in 2009, while total expenses increased by only 9% when comparing the six months of 2010 to 2009. Much of this increase in earnings was attributable to continued balance sheet growth with an increase in total assets of 20%, an increase in deposits of 24%, and growth in total loans of 12% when comparing the second quarter of 2010 with the similar balances at the end of June 2009.
Howard Bancorp was able to record this significant increase in year over year net income while also continuing to add to the bank’s loan loss reserves. Reflecting the ongoing softness in the economy, the bank recorded a provision for loan losses of $658 thousand for the first half of 2010, compared to $270 thousand for the same period in 2009. Our asset quality measures remain well controlled and relatively stable. At June 30, 2009, non accrual loans of $5.0 million and other real estate owned (OREO) of $2.1 million represented 2.77% of our total assets. This compares to second quarter 2010 non accrual loans of $5.8 million and OREO of $1.1 million which represent 2.22% of total assets. The bank remains well capitalized with a tier one leverage ratio, tier one risk based ratio, and total risk based capital ratio of 8.13%, 9.65% and 10.90%, respectively.