Howard Bancorp suffers $29.4M net loss in Q2 repor

Daily Record Staff//July 27, 2020//

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Howard Bancorp Inc., the parent company of Howard Bank, lost $29.4 million in the second quarter, according to the company’ earning statement released Monday.

The $29.4 million loss, or a $1.57 loss per both basic and diluted common share, came about from the recording of a goodwill impairment charge of $34.5 million (or -$1.84 per basic and diluted common share), a non-cash charge that has no effect on the company’s liquidity, tangible common equity, regulatory capital, and overall financial strength.

The company’s net income excluding this charge, a non-GAAP financial measure, was $5.1 million, or $0.27 per basic and diluted common share. Second quarter results also include the impact of an increase in the allowance for credit losses (provision for credit losses in excess of net charge-offs) of $3.0 million (or -$0.12 after tax per both basic and diluted common share).

Howard Bank Chairman and CEO Mary Ann Scully said the unprecedented speed and magnitude of the economic downturn facing the banking industry has been matched by an unprecedented level of government support and regulatory flexibility that allows Howard Bank time to evaluate conditions, prepare health care responses and deal with alacrity to new customer behavior patterns.

Scully added as a young bank, Howard Bank has always operated in fast changing environments. Its primary goal has always been to maximize long term shareholder value by both preserving and positioning for growth the abundant capital – human and financial – that it possesses.

The net loss compares to net income of $2.1 million, or $0.11 per both basic and diluted common share for the second quarter of 2019, and to net income of $3.3 million, or $0.18 per both basic and diluted common share recorded in the first quarter of 2020.

The decreases in second quarter 2020 basic and diluted earnings per share of $1.68 when compared to the second quarter of 2019 and $1.75 when compared to the first quarter of 2020.