First National Bank-Howard Bank merger to bring new resources to Baltimore region

Listen to this article

On Jan. 22, Pittsburgh-based FNB Corp. completed its merger with Howard Bancorp Inc., the holding company of Howard Bank, a move that will make First National Bank the sixth-largest bank in the Baltimore metropolitan region by deposit share. The customer and branch conversion will be final on Feb. 7, after which Howard Bank customers will have full access to First National Bank products and services.

“Our merger with Howard Bank adds to FNB’s remarkable growth story, deepening our presence in the dynamic Maryland market where we have been expanding for years,” said Vincent J. Delie Jr., chairman, president and CEO of FNB Corp. and First National Bank. “Our combined broader network ultimately puts us in an even better position to better serve our clients and to continue our growth.”

The $418 million merger, which was announced in July 2021, comes after a year in which bank consolidations topped pre-pandemic levels, according to S&P Global. Leaders of FNB and Howard Bank say they believe the merger will provide greater resources and opportunities for Maryland residents.

FNB entered the Maryland market in 2012, with the acquisition of Annapolis Bancorp Inc. It has grown locally since, acquiring two other banks in the region and placing its Maryland headquarters in Baltimore. The merger will increase the company’s assets to $42 billion and total loans and deposits to $27 billion and $33 billion, respectively.

Mary Ann Scully, Howard Bank’s CEO and the chairperson of its board of directors, says she is confident that larger banks like FNB will be able to do a “better job” at remaining relevant to the communities they serve.

Early in her talks with FNB, the Pittsburgh-based bank promised to continue Howard Bank’s commitment to philanthropy, said Scully, who added that she and other bank leaders have been working with FNB to broaden its contacts in the area.

FNB’s product portfolio will include wealth management services, as well as mortgage operations, which Howard Bank stopped offering in 2020. FNB also has a capital markets division for commercial clients and insurance products.

“This means you have more of a one-stop shop with FNB,” Scully said, adding that FNB’s resources allow it to make the kind of investments in digital technology that she believes will be “more and more important going forward.”

One of FNB’s biggest technological endeavors is its eStore, which allows customers to shop for financial products, open accounts, apply for loans and schedule a consultation. The eStore will be available via digital kiosks in FNB’s branch locations, including the newly acquired Howard Bank branches, Delie said.

Five of Howard Bank’s 13 physical branches will be merged into existing FNB locations. Customers will now have access to more than 25 FNB branches across Maryland, with additional ATM locations.

Meanwhile, for employees losing jobs because of the merger, Howard Bank hosted a job fair with 10 other banks to help workers make new professional contacts.

Scully herself will be leaving the bank once the merger is final.

“My focus over the last few months has been 100% on making sure this is a good transition for our shareholders, for our customers, for our employees and for the community,” said Scully, whose last day is Feb. 4. “When I’m not focused on that on Feb. 5, then I’ll decide what I’m going to do next.”