Howard Bank's Parent Company Increases Capital
Howard Bank, Howard County's only locally owned and managed bank, has announced that $5 million in additional capital has been raised in a private placement through the bank's holding company, Howard Bancorp. This brings the level of capital raised by the bank and its holding company since November 2003 to $27.5 million.
Both existing and new shareholders purchased shares, according to Mary Ann Scully, President and CEO, who also noted that, once again, no investment banker was retained for the offering and that this offering was oversubscribed within seven weeks from opening.
“We have been exceptionally gratified by the rapid pace of our growth since opening in late 2004. Our asset size, which ended 2006 just shy of $150 million, far exceeds our initial projections, and we are happy that, in such a short time, we were able to achieve a deposit market share ranking of number 11 out of 21 institutions in Howard County based upon June 2006 information provided by the FDIC. This growth is a testament to our ability to deliver the type of personalized and sophisticated approach that most customers value but do not expect from a small local institution,” Scully said.
“We believe that, with the recently announced changes in the landscape of local banking options, our ‘hands on’ relationship-based delivery will become even more valued, and generate additional growth. It is for these reasons that our Board of Directors decided that raising the additional capital was appropriate. In addition to supporting the continued and planned growth and expansion of Howard Bank, an immediate benefit of increasing the bank’s lending limit was realized. Howard Bank can now originate loans of a size that is much larger than many might anticipate. The influx of new capital has also helped to satisfy some of the residual community interest in the stock,” Scully added.
“Howard Bancorp shares are traded lightly on the OTC bulletin board and the offering allowed us to satisfy the interest of customers and other community leaders seeking to become shareholders in the bank,” she said.
Howard Bank has branches in the Village of Hickory Ridge in Columbia, on Snowden River Parkway in Ellicott City and on Johns Hopkins Road in Maple Lawn. A fourth branch in Ellicott City at the crossroads of Route 40, Centennial Lane and Frederick Road is also planned.