As mentioned above, the bank recorded a provision for loan losses of $182 thousand for the first half of 2011, compared to $658 thousand for the same period in 2010 as non accrual loans of $3.3 million and OREO of $4.4 million represented 2.50% of our total assets at June 30, 2011. This compares to second quarter 2010 non accrual loans of $5.8 million and OREO of $1.1 million which represented 2.22% of total assets and March 31, 2011 non accrual loans of $3.5 million and OREO of $4.6 million which represented 2.67% of our total assets. The reduction in nonperforming loans directly impacts the provision for loan losses, while the increase in OREO resulted in the large increase in collection related non interest expense levels for 2011 discussed above. From a regulatory perspective, the bank remains well capitalized with a tier one leverage ratio, tier one risk based ratio, and total risk based capital ratio of 9.67%, 11.02% and 12.27%, respectively, versus 8.13%, 9.65% and 10.90%, respectively for the same measures in 2010.For the three months ending June 30, 2011, Howard Bancorp recorded second quarter net income of $351 thousand which is an increase of $136 thousand or 63% over the second quarter of 2010, and also approximately 2% higher than the $344 thousand for the first quarter of 2011. Comparing the second quarter of 2011 to the same period of 2010, quarterly net interest income rose 13% while the provision for loan losses for the three months ended June 30, 2011 was $70 thousand compared to $447 thousand for the second quarter of 2010. Similar to the year to date expenses discussed above, second quarter of 2011 expenses grew by $580 thousand largely due to collection expenditures and OREO related valuation and maintenance costs. Chairman and CEO Mary Ann Scully stated: “The present economic environment represents not only one of the most difficult in memory but one of the most persistent in terms of longevity. We are proud that we have navigated through these times with higher profits but more importantly, consistent profits in nine of the last ten quarters. More uniquely, we have maintained our focus on growing the number of customers that we serve with both loan and deposit products and continue to see our balance sheet grow along with our revenues and net income at a time when some others in our industry are focused on shrinking. Howard Bancorp continues to view the Greater Baltimore market of small and medium sized businesses, which we target and serve, as representative of unprecedented long term opportunity and we are well positioned, both for the short term challenges and for the better environment that is to come.”
This press release contains statements that are 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 statements be subject to the safe harbors created thereby. All forward-looking statements are 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 statements, and the making of such statements 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.Additional information is available at www.howardbank.com.