Howard Bancorp, Inc. Announces 2010 Annual and 4th Quarter Results

ELLICOTT CITY, Md.—(BUSINESS WIRE)— Howard Bancorp, Inc. (OTC, Electronic Bulletin Board: HBMD), the parent company of Howard Bank, today reported its financial results for the fiscal year ending December 31, 2010. For the year ended December 31, 2010, the company reported net income of $933 thousand compared to a loss of $2.2 million in 2009, an improvement of $3.1 million. Net interest income was $11.3 million for 2010 which represented an increase of $2.7 million or 31% compared to 2009. In addition to the increase in net interest income, the provision for loan losses in 2010 of $1.6 million was $2.1 million or 55% less than the 2009 provision of $3.7 million. While non interest revenues for 2010 were only slightly above the 2009 levels, total non interest expenses decreased for 2010 compared to 2009 by $552 thousand or 6%. 2009 expenses included a write-down of $1.3 million for the decline in value of an Other Real Estate Owned (OREO) property. When excluding this expense for 2009, total expenses for 2010 increased by $730 thousand or 9% compared to adjusted 2009 expense levels.

2010 represented a year of continued balance sheet growth with December 31, 2010 total assets of $300 million, total loans of $256 million, and total deposits of $239 million, representing growth of 5%, 1%, and 5%, respectively, over the 2009 year end balances. Included in the $239 million of total deposits at year end 2010 were non-interest bearing balances of $48.7 million, which increased by $9.7 million or 25% compared to non-interest balances of $39.0 million at the end of 2009.

For the fourth quarter of 2010, Howard Bancorp recorded net income of $272 thousand, which compares to a loss of $2.3 million for the fourth quarter of 2009, and net income of $131 thousand for the third quarter of 2010. Comparing the fourth quarter of 2010 to the same quarter in 2009, net interest income increased by $590 thousand or 25%, the provision for loan losses decreased by $2.7 million or 88% and total expenses dropped by $1.1 million or 31%. Similar to the full year results, fourth quarter 2009 expenses included the write-down of $1.3 million, thus excluding this item, quarterly expenses increased by $200 thousand or 10%.

Asset quality for Howard Bank continued to be a major focus of attention for management and the board of directors throughout 2010. One of the bank's primary measures of asset quality is the relationship between non-accrual loans, troubled debt restructurings, loans in excess of 90 days delinquent and OREO as a percentage of total assets. This asset quality measure showed a slight improvement for 2010 with a ratio of 2.89% as of December 31, 2010 versus 2.98% at the end of 2009.

Chairman and CEO Mary Ann Scully stated: "Howard Bank is gratified to report a profitable year and four successive quarters of profitability in this still difficult economic environment. These profits reflect continued asset growth, advantageous funding costs, and strategically allocated resources. Most notably, we were able to generate this stream of earnings after recording the required reserves to absorb identified loan losses as well as to maintain an adequate allowance based upon our current portfolio. This has been a challenging time for all in the banking industry and all of the communities from which they derive their livelihood. Howard Bank is fortunate to operate in strong and vibrant counties and we are proud that our general good fortune has tracked theirs. We are planning for continued investments and growth in the year to come."

This press release contains statements that are forward-looking, as that term is defined by the Private Securities Litigation Reform Act of 1995 or the Securities and Exchange Commission in its rules, regulations, and releases. The Company intends that such forward-looking statements be subject to the safe harbors created thereby. All forward-looking statements are based on current expectations regarding important risk factors, including but not limited to real estate values, local and national economic conditions, and the impact of interest rates on financing. Accordingly, actual results may differ from those expressed in the forward-looking statements, and the making of such statements should not be regarded as a representation by the Company or any other person that results expressed therein will be achieved. The Company does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions that may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.