The parent of Howard Bank reported that its loss narrowed in the quarter ended June 30, the first full quarter after its acquisition of First Mariner Bancorp on March 1.
Howard Bancorp, now based in Baltimore, reported late Wednesday that it lost $2.28 million, or 12 cents a share, in the April-to-June period as it completed the integration with First Mariner and converted systems.
That compares to a loss of $5.68 million, or 43 cents a share, in the January-to-March quarter as it executed the $163 million deal. Howard Bancorp earned a profit of $2.04 million, or 21 cents a share, in the quarter ended June 30, 2017.
The company estimates it spent about $3 million in the second quarter related to the acquisition that it won’t have to going forward.
“The integration of the transformational acquisition of First Mariner is entering its final and most critical phase. This merger provided us first and foremost with the opportunity to solidify our strategic position as the only locally headquartered bank focused on Greater Baltimore small and medium sized privately owned businesses…,” said MaryAnn Scully, the bank’s chairman and CEO, in a statement. “This transformation of brand and market positioning, revenue mix and cost base has added short term complexity to our financial statements but the resulting stronger company is well worth the effort.”
Howard Bank reported assets of $2.18 billion as of June 30, a billion more than last year as a result of the acquisition. It now has 21 branches spread throughout the Baltimore region.
Backing out merger-related expenses, Howard Bancorp said it would have earned $2.9 million, or 10 cents per share.
The holding company’s shares slipped 17 cents, trading around midday at $17.72 each.
It reported that nonperforming assets, including bad loans and foreclosed real estate, declined to 1.5 percent of total assets as of June 30 from 1.67 percent of March 31.