Howard Bancorp, the parent company of Howard Bank, completed its acquisition of First Mariner Bank. The aggregate merger consideration of $173.8 million included $9.2 million in cash and 9,143,230 shares in Howard common stock, which was valued at approximately $164.6 million based on the closing stock price of $18.00 on February 28, 2018.
Howard acquired $1 billion in assets, $664.3 million in portfolio loans, and $706.4 million in deposits as a result of the merger. In addition to the fair value of loans acquired, the bank also recorded a deferred tax asset of $32.5 million (valued utilizing recently enacted 2018 corporate federal tax rates) and $71.4 million of goodwill.
Howard Bank Chairman and CEO Mary Ann Scully stated, “The consummation of the acquisition of First Mariner Bank marks another transformational milestone in Howard Bancorp history. A near doubling of assets, loans and deposits concentrated in our target markets and target segments following a prior year of strong double digit organic growth positions us uniquely for both the strategic goals we have for the company as well as achieving the scale necessary to achieve sustainably higher returns. We are confident of the continuing support of all of our stakeholders – owners, clients, colleagues and communities served.”
Based in Ellicott City, MD, Howard Bank is a trust company operating as a commercial bank. It operates 21 branches located throughout the greater Baltimore metropolitan area.