Howard Bancorp Inc. (NASDAQ:HBMD) Q2 2019 Earnings Conference Call Transcript

Jul 25, 2019 • 10:00 am ET

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Howard Bancorp Inc. (NASDAQ:HBMD) Q2 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good morning, and welcome to the Howard Bancorp Inc. Second Quarter 2019 Financial Results Conference. My name is Chantell, and I'll be your operator for today. [Operator Instructions]

I will now turn it over to George Coffman, Executive Vice President and Chief Financial Officer at Howard Bancorp, Inc. Mr. Coffman, please go ahead.

Executive
George C. Coffman

Thank you, and good morning, everyone. I'd like to begin by thanking everybody for joining the call this morning. As she stated, my name is George Coffman, I'm the Chief Financial Officer for Howard Bancorp. Before we begin the presentation, I'd like to remind everyone that some of the comments made during the call may be considered forward-looking statements. Our Form 10-K for 2018 as well as our quarterly reports on Forms 10-Q and our current reports on Form 8-K, all identify certain factors that could cause the company's actual results to differ materially from those projected in any forward-looking statements made this morning.

The company does not undertake the process to update any forward-looking statements as a result of new information or future events or recent developments. Our periodic reports are available from the company, either online on the company's website or via the SEC's website. Again, I'd like to remind everyone that while we think our prospects for continued growth and increased performance are good, it is our policy not to establish with the markets any earnings, margin or balance sheet guidance.

With that said, I'd now like to introduce Mary Ann Scully, the CEO and Chairman of Howard Bancorp.

Executive
Mary Ann Scully

Thank you, George. And I'll add my thanks to George's for those of you that are on the line. I'll like to also note that George and I are joined today by Rob Kunisch, our President; Randy Jones, our Chief Credit Officer. So when we open the question-and-answer session, we should be able to address any questions that you have if you drill down in to these numbers.

I'm actually going to begin with a brief reiteration of the presentation that was sent yesterday, both to provide additional time for those that may not have had an opportunity to study it but also to begin to add some commentary that may enlighten some of this.

So we began with our forward momentum, which is our view of the strategic accomplishments that these numbers reflect. Most importantly, we think that the second quarter does show significant tangible progress towards the higher growth and the higher return franchise that we have discussed repeatedly. Commercial loan growth resumed with $50 million in the second quarter of 2019, a little over 3% within the quarter. Our expense focus continues its reaping rewards and improving profitability, and as we'll discuss a little bit later, we've announced further movements to further increase the efficiency.

We're pleased to see that our asset quality continues to migrate toward more normalized set of ratios, host the turnaround numbers that we experienced in the rolling months after the First Mariner merger. We have a very strong