For the fourth quarter of 2011, Howard Bancorp recorded net income of $353 thousand, which compares to net income of $272 thousand for the fourth quarter of 2010, representing an increase of 30% and net income of $336 thousand for the third quarter of 2011. Comparing the fourth quarter of 2011 to the same quarter in 2010 net interest income increased by $325 thousand or 11%, the provision for loan losses increased by $50 thousand or 14% and total expenses were up by $453 thousand or 19%.Asset quality for Howard Bank continued to be a major focus of attention for management and the board of directors throughout 2011. One of the bank’s primary measures of asset quality is the relationship between non-accrual loans, troubled debt restructurings, loans in excess of 90 days delinquent and OREO as a percentage of total assets. This asset quality measure showed a slight improvement for 2011 with a ratio of 2.40 % as of December 31, 2011 versus 2.89% at the end of 2010. At December 31, 2011 Howard Bancorp, Inc. had total capital of $36.6 million representing 11.34% of period end total assets. This is an increase of $7.3 million or 25% over total capital of $29.3 million at December 31, 2010. As stated earlier, over $6 million of the increase represented the net proceeds, from the preferred shares issued under the SBLF. Howard Bancorp was one of only four commercial banks in Maryland to be approved for this influx of Tier 1 capital to enable continued small business loan portfolio growth. The remainder of the capital growth represents retention of the previous four quarters of earnings. With the increases in capital, Howard Bank continues to be well in excess of the required capital levels to be considered well-capitalized under all regulatory capital guidelines.
Chairman and CEO Mary Ann Scully stated: “Howard Bank is gratified to report a profitable year marked by four successive quarters of profitability in this still difficult economic environment. These profits were driven by continued asset growth, an advantageous funding mix, and strategically allocated resources. As a result, the bank has been able to continue its investment in and support of our local communities and has strengthened its capital position while growing these investments. Notably, we were able to generate this stream of earnings after allocating funds to both reserves for loss provisions on loans, and OREO property related expenses (write-downs, maintenance costs and collection expenses). While the aggregate of these asset quality related costs were modestly higher than in 2010, our emphasis on risk management complements our focus on relationship management and allows us to ensure that we are correctly identifying and accounting for impairments and to continue to maintain an adequate allowance based upon our current performing portfolio. This ability to correctly value the portfolio even in an environment of declining values for some asset classes has allowed us to show a steady decrease in the relative level of problem assets. However, this continues to be a challenging time for all in the banking industry because it is a difficult time for so many of the communities from which we derive our livelihood. Howard Bank is fortunate to operate in strong and vibrant counties and we are proud that our steady performance has tracked theirs. We are most proud of our ability to plan for continued investments and continued growth in the year to come. Our focus on the future is illustrated by our previous announcement that on November 28, 2011 Howard Bancorp had filed a registration statement on Form S-1 with the Securities and Exchange Commission (SEC) relating to its proposed initial public offering of its common stock.”
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.