Earnings at Howard Bancorp. fell 46 percent in the third quarter as the Ellicott City-based parent of Howard Bank set aside $2.1 million to cover loan losses.
The bank said "one large commercial customer" closed during the quarter and did not fulfill its loan obligations.
As a result of increased loan-loss provision, Howard earned $204,000, or 5 cents per share, in the three months ended Sept. 30, down from $376,000, or 9 cents a share, a year earlier.
Howard continued its recent growth during the quarter, acquiring the Havre de Grace branch of NBRS Financial Bank and its $16.1 million in loans and $18.7 million in deposits in August. NBRS was closed by state regulators in mid-October and Howard assumed $143.4 million in deposits and $145.9 in assets from the Rising Sun-based bank under an agreement with the Federal Deposit Insurance Corp.
"We are excited by the successful moves north to supplement our core activities in Howard and Anne Arundel Counties," said May Ann Scully, Howard's chairman and CEO, in a statement.
As of Sept. 30, before the latest NBRS deal, Howard said it had $452 million of deposits and assets of $574 million, up from $467 million a year earlier. Despite the loan loss in the third quarter, Howard reported that its non-performing assets, including bad loans and foreclosed real estate, made up 0.91 percent of assets, down from 1.31 percent a year ago.
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