Howard Bancorp added to Russell 2000 index

Listen to this article

Howard Bancorp, Inc., the parent company of Howard Bank, announced Monday it has been named to the Russell 2000 stock index.

The closely watched Russell 2000 measures the performance of 2,000 small-cap companies in the United States. The listing recognizes the growth in Howard Bancorp’s market capitalization, which climbed to nearly $185 million on May 31, a 75 percent increase since the beginning of the year. Howard’s stock price has risen 25 percent over the same period.

“The listing on the Russell 2000 index reflects the increased value of the market capital levels we have attained in support of our consistently executed regional growth strategy to be the go-to commercial bank in greater Baltimore ” said Mary Ann Scully, president and CEO of Howard Bancorp. “But even more important than what it reflects about our history, and positive market reception is the value it provides to shareholders of our currency. Additional visibility, access, and liquidity often accompany inclusion in the Russell 2000.”

The rebalanced Russell Indexes, which began trading on June 26, are widely used by investment managers and institutional investors for index funds and as benchmarks for active investment strategies. About $8.4 trillion in assets are benchmarked to the Russell U.S. indexes.

Howard Bancorp, which has 300 employees, has been on a growth spurt. It raised $41.4 million in capital in January and closed a private placement with institutional investors for the issuance of 2.2 million shares of stock in 2015.

In 2015, Howard acquired Patapsco Bancorp Inc., the year after it bought Rising Sun-based NBRS Financial Bank in an FDIC-assisted transaction. In the third quarter of last year, Howard topped $1 billion in assets.