We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Howard Bancorp Inc | NASDAQ:HBMD | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 23.30 | 0.01 | 199,999.99 | 0 | 01:00:00 |
Howard Bancorp, Inc. (Nasdaq: HBMD) (the “Company”), the parent company of Howard Bank (the “Bank”), today reported its financial results for the three month and nine month periods ended September 30, 2016.
A summary of results for the three and nine month periods ended September 30, 2016 is as follows:
Chairman and CEO Mary Ann Scully stated, “The third quarter of 2016 clearly evidences the success and sustainability of our organic loan origination engine, without the impact of newly acquired growth. We are pleased to demonstrate the ability to consistently expand not only our balance sheet but also improve our return on assets, return on equity and efficiency measures. The operating leverage achieved in the third quarter, with 19% revenue growth versus 5% core expense growth, led to these improved returns. In addition to seeing improved returns associated with improved scale, the Company continues to take a long-term view and invest in the some of the most attractive markets in the country and in attracting experienced talent to our commercial and mortgage loan origination and branch delivery activities. We expect to see the fruits of these core strategic activities continue to grow our tangible book value and position us for future growth in our market valuation as well as potential acquisition opportunities. We also believe that we will see continued organic loan growth funded by low cost deposits and increased mortgage banking activities generating non-interest income to help offset margin compressions during the continuation of a long low interest rate environment. We are, as always, grateful to all of our stakeholders for supporting and enabling these successes and remain relentlessly committed to serving those stakeholders as the ‘go to commercial bank’ in Greater Baltimore.”
For the first nine months of 2016, the Company reported net interest income of $25.7 million compared to $21.2 million for the first nine months of 2015, an increase of approximately $4.4 million or 21%. This was driven primarily by a $5.6 million, or 24% increase in total interest income for the first nine months of 2016 due to continued growth in our loan portfolio average balances. Given the continued growth in deposits and borrowing levels, the Company recorded an increase in total interest expense of $1.2 million or 54% for the first nine months of 2016 versus the same period in 2015. The 54% increase in interest expense compared to the 24% increase in interest income is partially attributable to the redemption of the SBLF preferred stock. The preferred stock included a quarterly dividend payment, thus it was not a component of our interest expense. The redemption of the preferred stock was funded by an increase in holding company borrowings. These additional borrowings have interest payments and are a component of our overall interest expense. As anticipated, this also had an impact on our net interest margin, which experienced modest declines for both the nine month period and the third quarter when comparing 2016 to 2015.
In addition to the growth in net interest income, there was an increase in noninterest income for the first nine months of 2016 compared to the same period in 2015. Total noninterest income for the first nine months of 2016 was $11.8 million, which represents an increase of $2.8 million, or 31%, from $9.0 million in the first nine months of 2015. The largest increase in noninterest revenue was from our mortgage banking activities, which generated revenue from fees and gains on sales of mortgage loans totaling $9.4 million for the first nine months of 2016, compared to $7.5 million for the same period in 2015, representing an increase $1.9 million, or 26%. The first nine months of 2016 also benefitted from the sale of an acquired impaired loan, which resulted in a gain of approximately $675 thousand that was recorded in the second quarter of 2016.
Provision for credit losses was $1.3 million for the nine months ended September 30, 2016 compared to $1.0 million for the same period in 2015. This increase is largely due to the continuing growth in our loan portfolio, as well as some specific amounts required from our ongoing monitoring of troubled credits.
Total noninterest expenses grew to $29.4 million for the first nine months of 2016 compared to total noninterest expenses of $27.9 million for the first nine months of 2015, an increase of $1.5 million or 6%, and also compares to non-merger related noninterest expenses of $24.6 million for the first nine months of 2015, an increase of $4.8 million or 20%. Approximately $1.9 million of this increase was in the compensation category, which grew 16% when comparing the first nine months of 2016 versus the same period in 2015. The increased compensation costs resulted from the increase in the number of locations we operate, the effects of successfully attracting a sizable commercial loan origination team and the larger infrastructure resulting from the Patapsco acquisition as well as continuing organic growth in both portfolio and mortgage originations. In addition to the increased compensation costs, occupancy-related costs increased by $815 thousand or 29% for the same reasons. These two categories accounted for $2.7 million or 57% of the 2016 versus 2015 increase. The remaining net $2.1 million increase in expenses in other expense categories are generally also related to our overall growth and expansion.
While the ratio of total equity to total assets fell from 9.96% at September 30, 2015 to 8.37% at September 30, 2016, largely influenced by our redemption of the SBLF preferred stock, the ratio of our common equity to total assets declined from 8.60% to 8.37% given the growth in assets. All of our regulatory capital ratios continue to be well in excess of the levels that categorize us as a well-capitalized bank.
Our asset quality measures continue to remain a major focus of attention for management and the Board of Directors. One of the Company’s primary measures of asset quality is the ratio of non-performing assets to total assets. This asset quality measure decreased to 1.18% at September 30, 2016, from 1.35% at December 31, 2015 and was slightly above the June 30, 2016 ratio of 1.11%. While OREO levels have been relatively unchanged, September 30, 2016 non-performing loans of $9.4 million decreased by $987 thousand compared to December 31, 2015, and were modestly higher than the $8.7 million in non-performing loans at June 30, 2016.
Statements included in this press release include non-GAAP financial measures and should be read along with the accompanying tables, which provide a reconciliation of non-GAAP financial measures to GAAP financial measures. Such non-GAAP financial measures include income before taxes excluding merger expense (“core earnings”) and non-merger related noninterest expenses, both of which exclude the $3.3 million in merger related expenses incurred during the nine months ended September 30, 2015. Management believes that these non-GAAP financial measures provide useful information that allows readers to evaluate the Company’s ongoing performance by comparing results of its business operations, and that these measures provide meaningful comparison to the operations of the Company’s peers. Non-GAAP financial measures should not be considered as an alternative to any measure of performance or financial condition as promulgated under GAAP, and investors should consider the Company’s performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the Company. Non-GAAP financial measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the results or financial condition as reported under GAAP.
The statements in this press release regarding continued growth in tangible book value, future growth in market valuation and potential acquisition opportunities, continued organic loan growth funded by low cost deposits and increased mortgage banking activities, constitute forward-looking statements, 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. Such forward-looking statements are based on current beliefs and expectations and are subject to risks and uncertainties that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Such risks and uncertainties include, but are not limited to, future declines in real estate values, deterioration in general economic conditions, either nationally or in our market area (including as a result of the pending exit of the United Kingdom from the European Union), or a return to recessionary conditions, changes in the interest rate environment that reduce our margins, the fair value of our financial instruments or the demand for loans, and changes in laws or government regulations or policies affecting financial institutions, as well as other risks and uncertainties, as described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 as filed with the Securities and Exchange Commission and in other filings the Company may make. 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.
HOWARD BANCORP, INC. Nine months ended Three months ended (Dollars in thousands, except per share data.) September 30, Sept 30 Jun 30 Sept 30 Income Statement Data: 2016 2015 20162016
2015 Interest income $ 28,989 $ 23,399 $ 9,824$
9,553
$ 8,489 Interest expense 3,323 2,151 1,1761,178
807 Net interest income 25,666 21,248 8,6488,375
7,682 Provision for credit losses 1,302 1,015 402515
230 Noninterest income 11,806 9,043 4,3844,570
3,256 Merger and Restructuring - 3,303 --
2,166 Other noninterest expense 29,417 24,571 9,8809,861
9,434 Pre-tax income/(loss) 6,753 1,402 2,7502,569
(892 ) Federal and state income tax expense/(benefit) 2,404 746 1,002927
(107 ) Net income/(loss) 4,349 656 1,7481,642
(785 ) Preferred stock dividends 166 94 0110
31 Net income/(loss) available to common shareholders $ 4,183 $ 562 $ 1,748$
1,532
$ (816 ) Per share data and shares outstanding: Net income/(loss) per common share, basic $ 0.60 $ 0.09 $ 0.25$
0.22
$ (0.13 ) Book value per common share at period end $ 12.15 $ 11.49 $ 12.15$
11.90
$ 11.49 Tangible book value per common share at period end $ 11.72 $ 10.87 $ 11.72$
11.45
$ 10.87 Average common shares outstanding 6,970,714 5,897,325 6,985,5596,970,876
6,493,987 Shares outstanding at period end 6,988,180 6,921,378 6,988,1806,978,217
6,921,378 Financial Condition data: Total assets $ 1,014,787 $ 924,493 $ 1,014,787$
988,818
$ 924,493 Loans receivable (gross) 816,590 755,500 816,590797,146
755,500 Allowance for credit losses (5,634 ) (4,317 ) (5,634 )(5,744
)
(4,317 ) Other interest-earning assets 144,478 115,890 144,478137,785
115,890 Total deposits 803,773 742,766 803,773798,118
742,766 Borrowings 119,906 80,559 119,906101,373
80,559 Total stockholders’ equity 84,892 92,080 84,89283,068
92,080 Common equity 84,892 79,518 84,89283,068
79,518 Average assets $ 959,835 $ 735,919 $ 966,783$
974,355
$ 808,324 Average stockholders' equity 86,760 70,618 82,19985,922
85,611 Average common stockholders' equity 80,983 58,056 82,19981,091
73,049 Selected performance ratios: Return on average assets 0.61 % 0.12 % 0.72 %0.68
%
(0.39 )% Return on average common equity 7.17 % 1.24 % 8.46 %8.12
%
(3.64 )% Net interest margin(1) 3.78 % 4.06 % 3.76 %3.66
%
3.94 % Efficiency ratio(2) 78.50 % 92.02 % 75.81 %76.18
%
106.05%
Asset quality ratios: Nonperforming loans to gross loans 1.15 % 1.07 % 1.15 %1.09
% 1.07 % Allowance for credit losses to loans 0.69 % 0.57 % 0.69 %0.72
% 0.57 % Allowance for credit losses to nonperforming loans 60.04 % 53.30 % 60.04 %65.90
% 53.30 % Nonperforming assets to loans and other real estate 1.46 % 1.30 % 1.46 %1.38
% 1.30 % Nonperforming assets to total assets 1.18 % 1.07 % 1.18 %1.11
% 1.07 % Capital ratios: Leverage ratio 8.55 % 11.16 % 8.55 %8.36
%
11.16 % Tier I risk-based capital ratio 9.65 % 11.56 % 9.65 %9.70
% 11.56 % Total risk-based capital ratio 10.71 % 12.12 % 10.71 %10.80
% 12.12 % Average equity to average assets 9.04 % 9.60 % 8.50 %8.82
% 10.59 %(1)
Net interest margin is net interest income divided by average earning assets.
(2)
Efficiency ratio is noninterest expense divided by the sum of net interest income and noninterest income.
Unaudited Consolidated Statements of Financial Condition PERIOD ENDED (Dollars in thousands, except per share amounts) Sept 30, June 30, March 31, December 31, September 30, 2016 2016 2016 2015 2015 ASSETS: Cash and Cash Equivalents: Cash and due from banks $ 33,553 $ 24,618 $ 50,725 $ 31,071 $ 16,517 Interest-bearing deposits 29,838 8,190 4,246 7,269 1,830 Total cash and cash equivalents 63,391 32,808 54,971 38,340 18,347 Investment Securities: Available-for-sale 37,718 57,693 70,150 49,573 39,178 Federal Home Loan Bank stock, at cost 4,741 3,934 3,849 4,163 3,185 Total investment securities 42,459 61,627 73,999 53,736 42,363 Loans held-for-sale 46,342 51,010 40,027 49,677 64,427 Loans: 816,590 797,146 774,229 760,002 755,500 Allowance for credit losses (5,634 ) (5,744 ) (5,256 ) (4,869 ) (4,317 ) Net loans 810,956 791,402 768,973 755,133 751,183 Accrued interest receivable 2,398 2,484 2,360 2,144 2,221 Bank premises and equipment, net 20,287 20,481 20,758 20,765 20,427 Other assets: Goodwill 603 603 603 603 1,132 Bank owned life insurance 21,208 21,053 20,899 18,548 16,618 Other intangibles 2,384 2,550 2,726 2,903 3,117 Other assets 4,759 4,800 5,122 4,910 4,658 Total other assets 28,954 29,006 29,350 26,964 25,525 Total assets $ 1,014,787 $ 988,818 $ 990,438 $ 946,759 $ 924,493 LIABILITIES AND STOCKHOLDERS' EQUITY: Liabilities: Deposits: Non-interest bearing deposits $ 183,118 $ 179,699 $ 177,621 $ 173,689 $ 171,349 Interest bearing deposits 620,655 618,419 625,555 573,719 571,417 Total deposits 803,773 798,118 803,176 747,408 742,766 Borrowed funds 119,906 101,373 86,334 98,828 80,559 Other liabilities 6,216 6,259 6,982 7,624 9,088 Total liabilities 929,896 905,750 896,492 853,860 832,413 Commitments and contingencies Stockholders' equity: Preferred stock -- $.01 par value - - 12,562 12,562 12,562 Common stock – $.01 par value 70 70 70 70 69 Additional paid-in capital 70,897 70,824 70,698 70,587 70,173 Retained earnings 13,896 12,147 10,615 9,712 9,257 Accumulated other comprehensive income/(loss), net 29 27 1 (32 ) 19 Total stockholders' equity 84,892 83,068 93,946 92,899 92,080 Total liabilities and stockholders' equity $ 1,014,787 $ 988,818 $ 990,438 $ 946,759 $ 924,493Capital Ratios - Howard Bancorp, Inc.
Tangible Capital $ 81,905 $ 79,915 $ 78,055 $ 76,830 $ 75,268 Tier 1 Leverage (to average assets) 8.55 % 8.36 % 9.87 % 9.90 % 11.16 % Common Equity Tier 1 Capital (to risk weighted assets) 9.65 % 9.70 % 11.49 % 11.47 % 11.56 % Tier 1 Capital (to risk weighted assets) 9.65 % 9.70 % 11.49 % 11.47 % 11.56 % Total Capital Ratio (to risk weighted assets) 10.71 % 10.80 % 12.13 % 12.09 % 12.12 % ASSET QUALITY INDICATORS (Dollars in thousands) Non-performing assets: Total non-performing loans $ 9,383 $ 8,717 $ 9,562 $ 10,370 $ 8,100 Real estate owned 2,543 2,286 2,369 2,369 1,764 Total non-performing assets $ 11,926 $ 11,003 $ 11,931 $ 12,739 $ 9,864 Non-performing loans to total loans 1.15 % 1.09 % 1.24 % 1.36 % 1.07 % Non-performing assets to total assets 1.18 % 1.11 % 1.20 % 1.35 % 1.07 % ALLL to total loans 0.69 % 0.72 % 0.68 % 0.64 % 0.57 % ALLL to non-performing loans 60.04 % 65.90 % 54.97 % 46.96 % 53.30 % Unaudited Consolidated Statements of Income FOR THE THREE MONTHS ENDED (Dollars in thousands, except per share amounts) Sept 30, June 30, March 31, December 31, September 30, 2016 2016 2016 2015 2015 Total interest income $ 9,824 $ 9,553 $ 9,612 $ 9,950 $ 8,489 Total interest expense 1,176 1,178 969 920 807 Net interest income 8,648 8,375 8,643 9,030 7,682 Provision for credit losses (402 ) (515 ) (385 ) (821 ) (230 ) Net interest income after provision for credit losses 8,246 7,860 8,258 8,209 7,451 NON-INTEREST INCOME: Service charges and other income 724 1,097 554 433 515 Mortgage banking income 3,660 3,473 2,298 2,450 2,741 Total non-interest income 4,384 4,570 2,852 2,883 3,256 NON-INTEREST EXPENSE: Salaries and employee benefits 4,927 4,870 4,584 4,817 4,652 Occupancy expense 1,062 949 1,614 1,001 928 Marketing expense 864 888 723 769 786 FDIC insurance 199 198 208 138 106 Professional fees 669 665 358 543 386 Other real estate owned related expense 43 109 14 (13 ) 776 Merger and restructuring - - - 1,041 2,166 Other 2,116 2,182 2,175 2,083 1,800 Total non-interest expense 9,880 9,861 9,676 10,379 11,600 Income/(loss) before income taxes 2,750 2,569 1,434 713 (892 ) Income tax expense/(benefit) 1,002 928 474 226 (107 ) NET INCOME /(LOSS) 1,748 1,641 960 487 (785 ) PREFERRED DIVIDENDS - (109 ) (57 ) (32 ) (31 )
NET INCOME/(LOSS) AVAILABLE TO COMMON SHAREHOLDERS
$ 1,748 $ 1,532 $ 903 $ 455 $ (816 ) EARNINGS/(LOSS) PER SHARE – Basic $ 0.25 $ 0.22 $ 0.13 $ 0.07 $ (0.13 ) EARNINGS/(LOSS) PER SHARE – Diluted $ 0.25 $ 0.22 $ 0.13 $ 0.06 $ (0.13 ) Average common shares outstanding – Basic 6,985,559 6,970,876 6,955,462 6,935,493 6,493,987 Average common shares outstanding – Diluted 7,077,420 7,061,867 7,047,987 7,051,660 6,493,987 PERFORMANCE RATIOS: (annualized) Return on average assets 0.72 % 0.68 % 0.41 % 0.21 % -0.39 % Return on average common equity 8.46 % 8.12 % 4.83 % 2.44 % -3.64 % Net interest margin 3.76 % 3.66 % 3.93 % 4.13 % 3.94 % Efficiency ratio 75.81 % 76.18 % 84.18 % 87.12 % 106.05 % Tangible common equity 8.37 % 8.40 % 8.22 % 8.48 % 8.60 %Below is a reconciliation of the GAAP to non-GAAP figures presented in this release for the nine months ended September 30, 2015:
(in thousands) Pre-Tax Income Noninterest Expenses GAAP measure $1,402 $27,874 Merger expenses $3,303 $3,303 Non-GAAP financial measure $4,705 $24,571
View source version on businesswire.com: http://www.businesswire.com/news/home/20161018006592/en/
Howard Bancorp, Inc.George C. Coffman, Chief Financial Officer, 410-750-0020
1 Year Howard Bancorp Chart |
1 Month Howard Bancorp Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions