• Joseph Gladue, CFA, PRM
  • Banking Research & Commentary
  • October 29, 2019
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HBMD: Loan Growth and Expense Control Counter Some NIM Pressures; Raising Estimates and Target Price; Reaffirming Neutral Rating.

Howard Bancorp reported a 3Q19 net income of $4.6 million, up 122.1% compared to 2Q19 net income of $2.1 million. This translates to EPS of $0.24 in 3Q19 compared to $0.11 in 2Q19. Included in 3Q19 results was a $700 legal settlement related to mortgages originated by First Mariner prior to its acquisition by HBMD. Excluding this and $3.6 million of branch closure expenses from the prior quarter, “adjusted” EPS was $0.27 in 3Q19 compared to $0.25 in 2Q19. Adjusted 3Q19 results exceeded our $0.26 estimate by a penny and the $0.26 median Street estimate by the same amount. The quarter was characterized by lower-than-expected “core” non interest expense, a lower loan loss provision, and higher non interest income, offset by lower-than-expected net interest income.

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Media Contact: Joseph Gladue, CFA, PRM

Joseph Gladue has over 30 years industry experience with over 25 years focused on banking research. Mr. Gladue was Director of Research at several firms including Cohen & Company and Merion Capital Group. Previously he was a senior research analyst at B. Riley and worked in finance at Bank of the Internet. Joe has covered small and mid-cap banks across the US and has also follow companies in other financial service industries. Joe also provides his banking expertise in the asset management arena for Bluestone Capital Partners. Joe can be reached at jgladue@aldensecurities.com, 215-572-8700.

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