Howard Bancorp, Inc. (OTC Electronic Bulletin Board: HBMD), the parent company of Howard Bank, today reported its financial results for the period ending March 31, 2012. The company announced that for the first quarter of 2012 net income was $399 thousand, which represents an increase of 16% over net income for the first quarter of 2011, and an increase of 13% over fourth quarter 2011 net income.
The company’s total assets increased by over $42 million or 14% when comparing March 31, 2012 assets of $347.8 million to the $305.4 million at the same point in 2011. Total loans outstanding of $279.7 million at the end of March 2012, showed an increase of nearly 11% compared to total loans of $251.2 million on March 31, 2011. Demand deposits, which not only represent the lowest cost source of funding available to a bank, but also are most reflective of the core customer relationships targeted by the bank, grew from $50.5 million at March 31, 2011 to $72.2 million at the end of the first quarter of 2012, representing growth in this highly coveted deposit category of $21.7 million or 43%. Total deposits grew by $43.7 million or 18% when comparing March 31, 2012 to March 31, 2011. Because of the significant increases in deposits, even after funding the 11% loan growth, the bank was able to utilize the additional deposits to increase our balance sheet liquidity measures.
The growth in loan levels generated an increase in total interest income for the first quarter of 2012, which was higher than total interest income in the same three month period in 2011 by $276 thousand or 8%. With the continuing favorable shift in the composition of deposits and other funding sources, the bank was able to record an increase in total interest expense of only $12 thousand or 2% for the first quarter of 2012 versus the same period in 2011, even though total interest bearing funding levels increased by nearly 13%. The resulting net interest income for the quarter ended March 31, 2012 was $3.3 million versus $3.0 million for the first three months of 2011, an increase of approximately $264 thousand or 9%.