Howard Bancorp, Inc. (OTC, Electronic Bulletin Board: HBMD), the parent company of Howard Bank, today reported its financial results for the fiscal year ending December 31, 2011. For the year ended December 31, 2011, the company reported net income of $1.4 million compared to net income of $933 thousand in 2010, an improvement of $452 thousand or 48%. Net interest income was $12.6 million for 2011 which represented an increase of $1.3 million or 11% compared to 2010. In addition to the increase in net interest income, the provision for loan losses in 2011 of $1.2 million was 29% less than the 2010 provision of $1.63 million. Non interest revenues of $1.1 million for 2011 increased by $395 thousand or 53% compared to $.7 million in 2010. While service charges on deposits decreased year-over-year by $92 thousand due to fewer overdraft fees, 2011 non interest revenue included $459 thousand in gains on sale of OREO properties. Total non interest expenses for 2011 of $10.1 million increased by $1.4 million or 17% over total expenses of $8.7 million in 2010. The $1.4 million 2011 increase included approximately $427 thousand more in staffing related costs, and a $1 million increase in costs associated with Other Real Estate Owned (OREO) including increased operating and maintenance expenses and write-downs of $777 thousand for the declines in value of OREO property.
2011 represented a year of continued balance sheet growth with December 31, 2011 total assets of $323 million, total loans of $277 million, and total deposits of $263 million, representing growth of 8%, 8%, and 10%, respectively, over the 2010 year end balances. Included in the $263 million of total deposits at year end 2011 were non-interest bearing balances of $62.0 million, which increased by $13.4 million or 27%, compared to non-interest balances of $48.7 million at the end of 2010. This growth in operating accounts reflects significant customer acquisition as well as increased balances from existing customers. At the end of the third quarter of 2011, the company also received additional capital via its approval and participation in the U.S. Treasury Small Business Lending Fund (SBLF). The SBLF is a program created by the U.S. Treasury exclusively for qualifying community banks and is intended to encourage small business lending by providing Tier 1 capital to those qualified banks at favorable rates. Simultaneously with the receipt of the SBLF funds, and as required under the SBLF Program, the company redeemed the full balance of $6.3 million of shares of preferred stock issued to the Treasury under the U.S. Treasury Capital Purchase Program (the "CPP"). The resulting net increase of up to approximately $6.2 million of additional capital will allow Howard Bancorp to support expected balance sheet growth in 2012 and beyond.