Business Wire | Jul 21, 2021 04:01PM EDT

Howard Bancorp, Inc. Reports Second Quarter 2021 Results

Jul. 21, 2021

BALTIMORE--(BUSINESS WIRE)--Jul. 21, 2021--Howard Bancorp, Inc. (NASDAQ: HBMD) ("Howard Bancorp" or the "Company"), the parent company of Howard Bank ("Howard Bank" or the "Bank"), today reported its financial results for the quarter ended June 30, 2021.

Second Quarter 2021 Highlights

* Net income: Net income of $7.5 million for the quarter, up 20% from first quarter of 2021 Core net income 1 of $7.5 million for the quarter, up 100% from second quarter of 2020 and up 20% from first quarter of 2021 * Earnings per share: Earnings per share ("EPS"), both basic and diluted, of $0.40 for the quarter, up 20% from first quarter of 2021 Core EPS, 1 both basic and diluted, of $0.40 for the quarter, up 100% from second quarter of 2020 and up 20% from first quarter of 2021 * Pre-provision net revenue ("PPNR") 1: PPNR, 1 at $10.1 million for the quarter, up 8% from first quarter of 2021 Core PPNR, 1 at $10.1 million for the quarter, up 28% from second quarter of 2020 and up 8% from first quarter of 2021 Core PPNR, as a percentage of average assets, 1 1.57% for the quarter, up 31 basis points ("BP") from second quarter of 2020 and up 7 BP from first quarter of 2021 * Loans: Total loans declined by $4.9 million during the quarter, with Paycheck Protection Program ("PPP") loans down $58.9 million Portfolio loan 1 growth (which excludes PPP loans) of $54.0 million during the quarter (12.4% annualized growth rate) * Net interest margin: Net interest margin, at 3.39% for the quarter, was down 4 BP from first quarter of 2021 due to a decline in PPP loan net interest income Operating net interest margin, 1 which excludes the impact of loan fair value accretion and net interest income from PPP lending, was 3.25% for the quarter, up 5 BP from first quarter of 2021 * Asset quality: COVID-19 related loan deferrals of $30.4 million at June 30, 2021 (1.6% of total loans and 1.7% of portfolio loans) Nonperforming assets to total assets was 0.65% as of June 30, 2021, down 19 BP from second quarter of 2020 and up 3 BP from first quarter of 2021 No provision for credit losses was recorded during the quarter, compared to $3.0 million in the second quarter of 2020 and $1.0 million in the first quarter of 2021 Net charge-offs were $80 thousand for the quarter, or 0.02% of average total loans (annualized) Allowance for loan losses was 0.94% of total loans and 1.02% of portfolio loans 1 as of June 30, 2021; compared to 0.86% and 0.96%, respectively, at June 30, 2020, and 0.94% and 1.05%, respectively, at March 31, 2021 * Noninterest expense management: Noninterest expenses were $12.3 million for the quarter, down 74% from second quarter of 2020 (second quarter of 2020 included a $34.5 million goodwill impairment charge) and unchanged from first quarter of 2021 Core noninterest expenses, 1 were $12.3 million for the quarter, up 3% from second quarter of 2020 and unchanged from first quarter of 2021 * PPP update: $4.8 million of PPP loans funded during the quarter $64.9 million of PPP loans forgiven during the quarter ($62.5 million from 2020 originations)

1 These are financial measures not calculated in accordance with generally accepted accounting principles ("GAAP"). Please refer to the section entitled "Reconciliation of Non-GAAP Financial Measures" in this press release and to the financial tables entitled "GAAP to Non-GAAP reconciliation" for a reconciliation to the most directly comparable GAAP financial measures.

Net Income and EPS

The Company reported net income of $7.5 million, or $0.40 per both basic and diluted common share, for the second quarter of 2021. This compares to a net loss of $29.4 million, or a loss of $1.57 per both basic and diluted common share, for the second quarter of 2020 and net income of $6.2 million, or $0.33 per both basic and diluted common share, for the first quarter of 2021.

Second quarter 2021 basic and diluted EPS increased by $1.97 when compared to the second quarter of 2020 and $0.07 when compared to the first quarter of 2021. The following table presents an EPS rollforward for the second quarter of 2021 compared to both the second quarter of 2020 and the first quarter of 2021. The column noted as "FN" references each item in the rollforward to a footnote with additional information; reconciling items are presented on an after tax basis.

Second Quarter 2021 Compared to: FN Q2 2020 Q1 2021EPS, Second Quarter 2020 / First Quarter 2021 $ (1.57 ) $ 0.33

Goodwill impairment charge (second quarter 2020; no 1 1.84 - tax impact)Decrease in the provision for credit losses 2 0.12 0.04

Pretax income from SBA Paycheck Protection Program 3 0.02 (0.02 )("PPP")Litigation accrual (second quarter 2020) 4 0.04 -

Securities gains (second quarter 2020) 5 (0.12 ) -

Prepayment penalties on FHLB advances (second quarter 6 0.01 - 2020)All other, net 0.06 0.05

EPS, Second Quarter 2021 $ 0.40 $ 0.40

CHANGE $ 1.97 $ 0.07

* The second quarter of 2020 included a $34.5 million goodwill impairment charge, included within noninterest expense. There were no goodwill impairment charges in the first or second quarters of 2021. * No provision for credit losses was recorded in the second quarter of 2021, a decrease of $3.0 million from the second quarter of 2020, and a decrease of $1.0 million from the first quarter of 2021. * The Company commenced originating loans under the SBA's PPP program in the second quarter of 2020 and began the process of loan forgiveness in the fourth quarter of 2020. Second quarter 2021 pretax income of $1.6 million from this program represented an increase of $613 thousand from the second quarter of 2020 and a decrease of $486 thousand from the first quarter of 2021. * The second quarter of 2020 included a $1.0 million accrual, included within noninterest expense, for potential litigation claims stemming from certain mortgages originated by First Mariner Bank before its merger with Howard Bank. The settlement of this potential litigation was completed in January 2021. There were no litigation accruals in the first or second quarters of 2021. * The second quarter of 2020 included securities gains of $3.0 million, which increased second quarter 2020 earnings per share. There were no securities gains recognized in the first or second quarters of 2021. * The second quarter of 2020 included prepayment penalties on Federal Home Loan Bank of Atlanta ("FHLB") advances of $224 thousand, which reduced second quarter 2020 earnings per share. There were no prepayment penalties on FHLB advances in the first or second quarters of 2021. Core net income is a non-GAAP financial measure that excludes, if applicable, goodwill impairment charges and certain other items to provide a picture of ongoing activities deemed core to the Company's strategy. Core net income for the second quarter of 2021, which is unchanged from reported net income, was $7.5 million, or $0.40 per both basic and diluted common share. This compares to core net income of $3.7 million, or $0.20 per both basic and diluted common share, for the second quarter of 2020. The $0.20 per share increase in core EPS in the second quarter of 2021, when compared to the second quarter of 2020, was primarily the result of a lower provision for credit losses, which was down $3.0 million (+$0.12 after tax per share), and an increase in the pretax contribution from PPP lending activities of $613 thousand (+$0.02 after tax per share). This also compares to core net income, which was unchanged from reported net income, of $6.2 million, or $0.33 per both basic and diluted common share, for the first quarter of 2021. The $0.07 per share increase in core earnings per share in the second quarter of 2021, when compared to the first quarter of 2021, included the result of a lower provision for credit losses, which was down $1.0 million (+$0.04 after tax per share), and a lower pretax contribution from PPP lending activities of $486 thousand (-$0.02 after tax per share). *

Core pre-provision net revenue ("core PPNR"), a non-GAAP financial measure that adds back the provision for credit losses to GAAP pretax income and excludes, if applicable, goodwill impairment charges and certain other items, was $10.1 million for the second quarter of 2021. The second quarter of 2021 core PPNR was up $2.2 million, or 27.8%, from $7.9 million for the second quarter of 2020, and was up $723 thousand, or 7.7%, when compared to $9.4 million for the first quarter of 2021. *

The Company reported net income of $13.7 million, or $0.73 and $0.72 per basic and diluted share, respectively, for the six months ended June 30, 2021. This compared to a net loss of $26.1 million, or a loss of $1.39 per both basic and diluted share, for the six months ended June 30, 2020. Core net income for the six months ended June 30, 2021 was also $13.7 million, or $0.73 and $0.72 per basic and diluted share, respectively, compared to $6.4 million, or $0.34 per both basic and diluted share, for the six months ended June 30, 2020. Core PPNR for the six months ended June 30, 2021 was $19.6 million, a $4.7 million, or 31.0% increase from $14.9 million for the six months ended June 30, 2020.

Paycheck Protection Program Loans

After the SBA relaunched the program on January 19, 2021, the Company originated $100.5 million of PPP loans in the first and second quarters of 2021, consisting of 591 loans with an average loan size of $170 thousand; $4.8 million of this total were originated in the second quarter of 2021 before the program ended. Of these 2021 originations, 36 loans, with an aggregate principal balance of $2.4 million, were forgiven during the second quarter of 2021. While the PPP program ended on May 31, 2021, the Company is now focused on assisting our customers through the loan forgiveness process.

During the second and third quarters of 2020, the Company originated a total of $201.0 million in PPP loans, consisting of 1,062 loans with an average loan size of $189 thousand. A total of 329 loans, with an aggregate principal balance of $62.5 million, were forgiven during the second quarter of 2021. Of the 1,062 loans originated in 2020, 887 have been forgiven totaling $152.7 million through June 30, 2021, representing 83.5% of the number of 2020 PPP loans and 76.0% of 2020 principal balances.

During 2020, the Company deferred total processing fees of $6.7 million from the SBA for originated PPP loans. In addition, $782 thousand of origination costs were deferred. The PPP originations in the first and second quarters of 2021 resulted in $4.2 million of additional deferred processing fees from the SBA and $547 thousand of additional deferred origination costs. The net deferred fees are being accreted as a yield adjustment over the contractual term of the underlying PPP loans, with accelerated accretion upon forgiveness. PPP lending generated pretax income of $1.6 million, or $0.06 after tax per share, in the second quarter of 2021, an increase of $613 thousand, or $0.02 after tax per share, from the second quarter of 2020 and a decrease of $486 thousand, or $0.02 after tax per share, from the first quarter of 2021. PPP loans, net of unaccreted net deferred fees, totaled $142.7 million at June 30, 2021, a decrease of $51.1 million from $193.7 million at June 30, 2020 and a decrease of $58.9 million from $201.6 million at March 31, 2021. PPP loan principal balances were $146.3 million at June 30, 2021 while unaccreted net deferred fees were $3.6 million at June 30, 2021.

Certain information in this earnings release is presented with respect to "portfolio loans," a non-GAAP financial measure defined as total loans and leases, but excluding the PPP loans. The Company believes that portfolio loan related measures provide additional useful information for purposes of evaluating the Company's results of operations and financial condition with respect to the second quarter of 2021 when comparing to other periods, since the PPP loans are 100% guaranteed, were not subject to traditional loan underwriting standards, and a substantial portion of these loans are expected to be forgiven and repaid by the SBA within the next 12 months. *

COVID-19 Loan Modifications

COVID-19 related loan modifications to both commercial and retail customers that the Company provided on a case by case basis, in the form of payment deferrals for periods up to six months, continue to trend favorably from their peak of $315 million (17.9% of both total loans and portfolio loans) on April 24, 2020. As of June 30, 2021, deferrals were $30.4 million, or 1.6% of total loans and 1.7% of portfolio loans, down from $47.9 million as of May 6, 2021, the most recent date when the Company previously disclosed deferral data. Included in total deferrals at June 30, 2021 are second deferrals (including deferrals where the cumulative inception to date deferral is greater than six months) of $17.6 million. Full payment deferrals represent 5% of total deferrals while principal only deferrals represent 95% of total deferrals. *

Asset Quality and Allowance for Loan and Lease Losses

Nonperforming assets ("NPAs") totaled $16.8 million at June 30, 2021, an increase of $0.4 million from March 31, 2021 and a decrease of $3.8 million from June 30, 2020. NPAs consisted of $16.2 million of nonperforming loans ("NPLs") and $629 thousand of other real estate owned ("OREO") at June 30, 2021. NPLs were 0.83% of total loans and 0.90% of portfolio loans at June 30, 2021. NPAs represented 0.65% of total assets, 0.87% of total loans and OREO, and 0.94% of portfolio loans and OREO at June 30, 2021. *

* This compares to NPAs of $20.6 million at June 30, 2020 that consisted of $18.5 million in NPLs and $2.1 million of OREO. NPLs were 0.97% of total loans and 1.08% of portfolio loans at June 30, 2020 while nonperforming assets represented 0.84% of total assets, 1.08% of total loans and OREO, and 1.21% of portfolio loans and OREO at June 30, 2020. * This compares to NPAs of $16.4 million at March 31, 2021 that consisted of $15.7 million in NPLs and $629 thousand of OREO. NPLs were 0.81% of total loans and 0.90% of portfolio loans at March 31, 2021 while NPAs represented 0.62% of total assets, 0.84% of total loans and OREO, and 0.94% of portfolio loans and OREO at March 31, 2021.

Net charge-offs were $80 thousand in the second quarter of 2021 and represented 0.02% of average loans (annualized). This compares to net charge-offs of $28 thousand, or 0.01% of average loans (annualized) in the second quarter of 2020 and $1.8 million, or 0.43% of average loans (annualized) in the first quarter of 2021. The allowance for loan and lease losses (the "allowance") was $18.3 million on June 30, 2021. No provision for credit losses was recorded in the second quarter of 2021.

Because the Company is a smaller reporting company under SEC rules, the allowance was determined under the incurred loss model. The $18.3 million allowance represented 0.94% of total loans, 1.02% of portfolio loans, and 112.8% of NPLs at June 30, 2021. *

* This compares to an allowance of $16.4 million at June 30, 2020. The June 30, 2020 allowance represented 0.86% of total loans, 0.96% of portfolio loans, and 88.6% of NPLs. The $1.9 million increase in the allowance at June 30, 2021 was the result of aggregate provisions for credit losses attributable to the allowance of $4.1 million partially offset by aggregate net charge-offs of $2.2 million during the four-quarter period ending June 30, 2021. * This compares to an allowance of $18.4 million at March 31, 2021. The March 31, 2021 allowance represented 0.94% of total loans, 1.05% of portfolio loans, and 116.8% of NPLs. The $80 thousand decrease in the allowance at June 30, 2021 was the result of net charge-offs of $80 thousand during the quarter ended June 30, 2021 and no provision for credit losses.

The Company's allowance as a percentage of total loans has historically been lower than certain of our peers due to the accounting for acquired loans and their initial impact on the allowance. The allowance and unamortized fair value marks as a percentage of portfolio loans, a non-GAAP measure used by management to assess credit coverage, adds the unamortized fair value marks to total loans, portfolio loans, and the allowance. The fair value marks, unlike the allowance, are not available to absorb general losses but are only available to absorb losses for the specific loan to which they apply. However, this measure provides the Company with an additional indicator of potential loss absorption capacity. The allowance and unamortized fair value marks as a percentage of total loans plus fair value marks was 1.18% at June 30, 2021, a decrease of 10 BP from June 30, 2020 and a decrease of 3 BP from March 31, 2021. The allowance and unamortized fair value marks as a percentage of portfolio loans plus fair value marks was 1.27% at June 30, 2021, a decrease of 16 BP from June 30, 2020 and a decrease of 8 BP from March 31, 2021. *

The Company's asset quality trends indicate very modest additional stress in the loan portfolio; we believe our ongoing active management of the portfolio, COVID-19 related loan modifications, and PPP loan relief have reduced the risk in the portfolio. Management will continue to closely monitor portfolio conditions and reevaluate the adequacy of the allowance. While the level of payment deferrals and PPP loan assistance have reduced the short-term risk in the Company's loan portfolio and traditional lagging indicators of delinquencies and nonperforming loans remain historically modest, management believes there still is the potential for additional risk rating downgrades and an increase in charge-offs in future periods.

Stockholders' Equity and Regulatory Capital Ratios

Stockholders' equity at June 30, 2021 was $303.3 million, an increase of $10.6 million from March 31, 2021. The increase was primarily due to second quarter 2021 net income of $7.5 million and a $3.0 million increase in accumulated other comprehensive income ("AOCI"), which represents the after tax impact of changes in the fair value of available-for-sale securities. Book value per common share was $16.14 at June 30, 2021, an increase of $0.56 per share since March 31, 2021, with second quarter EPS of $0.40 per share and the change in AOCI representing a $0.16 per share increase.

Tangible stockholders' equity, a non-GAAP financial measure that deducts goodwill and other intangible assets, net of any applicable deferred tax liabilities, was $268.3 million at June 30, 2021. This compares to $257.3 million at March 31, 2021, with the $11.0 million increase primarily due to second quarter net income of $7.5 million, a $3.0 million increase in AOCI, and $594 thousand of core deposit intangible amortization. Tangible book value per common share, a non-GAAP measure that divides tangible stockholders' equity by the number of shares outstanding, was $14.28 per share at June 30, 2021, an increase of $0.58 per share since March 31, 2021. *

The Company's regulatory capital ratios are all well in excess of regulatory "well-capitalized" and internal target minimum levels. Note that the Company had adopted the regulatory AOCI opt-out election; as a result, AOCI is not a component of regulatory capital and, therefore, changes in AOCI do not impact regulatory capital ratios. The total capital ratio was 14.62% while both the Common Equity Tier 1 ("CET 1") and Tier 1 capital ratios were 12.26% at June 30, 2021. The Tier 1 to average assets ("leverage") ratio was 9.74%. A comparison of the Company's June 30, 2021 regulatory capital ratios to June 30, 2020 and March 31, 2021 is as follows:

* Regulatory capital ratios at June 30, 2020 consisted of a total capital ratio of 14.09% while both the CET 1 and Tier 1 capital ratios were 11.66%. The leverage ratio was 8.73%. All June 30, 2021 regulatory capital ratios were above the June 30, 2020 levels. * Regulatory capital ratios at March 31, 2021 consisted of a total capital ratio of 14.47% while both the CET 1 and Tier 1 capital ratios were 12.06%. The leverage ratio was 9.53%. All June 30, 2021 regulatory capital ratios were above the March 31, 2021 levels.

Net Interest Income and Net Interest Margin

Net interest income was $20.1 million for the second quarter of 2021, an increase of $394 thousand from $19.7 million for the first quarter of 2021, and an increase of $2.0 million, or 10.8%, from $18.1 million in the second quarter of 2020. PPP net interest income decreased by $421 thousand from the first quarter of 2021 but increased by $849 thousand from the second quarter of 2020. Non-PPP related changes in net interest income were attributable to the impact of portfolio loan growth and lower funding costs, partially offset by lower yields on earning assets.

The following table presents selected yields and rates for the second quarters of 2021 and 2020 as well as the first quarter of 2021. Changes in the second quarter 2021 yields and rates from the second quarter of 2020 and the first quarter of 2021 are also included in the table.

Second Quarter 2021 Change from:

Second Second First Second First Quarter Quarter Quarter Quarter Quarter 2021 2020 2021 2020 2021

Selected yields and rates:Net interest margin 3.39% 3.22% 3.43% 0.17% -0.04%

Operating net interest margin 3.25% 3.20% 3.20% 0.05% 0.05%*Earning asset yield 3.61% 3.81% 3.70% -0.20% -0.09%

Total loan yield 4.07% 4.18% 4.22% -0.11% -0.15%

Cost of total IBL + demand 0.23% 0.62% 0.28% -0.39% -0.05%depositsImpact of fair valueadjustments on acquired loans:Net interest margin 0.12% 0.10% 0.14% 0.02% -0.02%

Earning asset yield 0.12% 0.10% 0.15% 0.02% -0.03%

Total loan yield 0.13% 0.12% 0.17% 0.01% -0.04%

Impact of PPP loans:Net interest margin 0.02% -0.08% 0.09% 0.10% -0.07%

Earning asset yield 0.03% -0.09% 0.09% 0.12% -0.06%

Total loan yield -0.01% -0.13% 0.07% 0.12% -0.08%

The second quarter 2021 net interest margin of 3.39% was up 17 BP from the second quarter of 2020 and down 4 BP from the first quarter of 2021. The impact of the accretion of fair value adjustments on acquired loans ("FV accretion") and net interest income from PPP lending had a significant impact on the reported net interest margin. Operating net interest margin is a non-GAAP financial measure defined as net interest income excluding both FV accretion and net interest income from PPP lending divided by average earning assets excluding both the average balance of fair value adjustments on acquired loans and the average balance of PPP loans. The Company believes that operating net interest margin related measures provide additional useful information for purposes of evaluating the Company's results of operations, by eliminating the non-sustainable contribution from PPP lending and the volatility from FV accretion. *

The second quarter 2021 operating net interest margin of 3.25% was up 5 BP from the second quarter of 2020. While the cost of funds (defined as average total interest-bearing liabilities ("IBL") + demand deposits) decreased by 39 BP, the yield on earning assets, as adjusted for FV accretion and interest income from PPP lending, decreased by 34 BP, with these decreases due to the significant drop in market interest rates. The second quarter 2021 operating net interest margin of 3.25% is also up 5 BP from 3.20% in the first quarter of 2021. The cost of funds decreased by 5 BP while the yield on earning assets, as adjusted for FV accretion and interest income from PPP lending, was unchanged.

Noninterest Income

Noninterest income was $2.4 million for the second quarter of 2021, a decrease of $2.4 million from the $4.8 million reported in the second quarter of 2020, and an increase of $284 thousand from the $2.1 million reported in the first quarter of 2021. There were no securities gains in either the first or second quarters of 2021 compared to $3.0 million in the second quarter of 2020.

Core noninterest income, a non-GAAP financial measure that excludes noninterest income attributable to securities gains in the second quarter of 2020, was $2.4 million for the first quarter of 2021, a $638 thousand increase from $1.7 million for the second quarter of 2020, and a $284 thousand increase from the first quarter of 2021. *

* The $638 thousand increase when compared to the second quarter of 2020 primarily consisted of the following: an increase in interchange fees, as card activity volumes continue to improve, included in other income (+$225 thousand), an increase in service charges on deposit accounts (+$221 thousand), and an increase in loan related fees and service charges (+$96 thousand). The $284 thousand increase when compared to the first quarter of 2021 was primarily due to an increase in interchange fees (+$147 thousand), and an increase in service charges on deposit accounts (+$115 thousand).

Noninterest Expenses

Noninterest expenses totaled $12.3 million for the second quarter of 2021, a decrease of $35.3 million from the $47.6 million reported in the second quarter of 2020, and a decrease of $45 thousand from the $12.3 million reported in the first quarter of 2021. A goodwill impairment charge of $34.5 million was included in noninterest expenses in the second quarter of 2020.

Core noninterest expenses is a non-GAAP financial measure that, with respect to the second quarter of 2020, excludes noninterest expenses attributable to the following: the $34.5 million goodwill impairment charge, a $1.0 million accrual for potential litigation claims stemming from certain mortgages originated by First Mariner Bank before its merger with Howard Bank (included within other operating expense), and prepayment penalties on FHLB advances of $224 thousand (included within other operating expense). There were no related adjustments to reported noninterest expense in the first and second quarter of 2021.

Core noninterest expenses were $12.3 million for the second quarter of 2021, a $393 thousand increase from $11.9 million in the second quarter of 2020, and a $45 thousand decrease from $12.3 million in the first quarter of 2021. *

* The $393 thousand increase when compared to the second quarter of 2020 resulted primarily from higher compensation and benefits expenses (+$884 thousand) partially offset by lower other real estate owned expenses (-$268 thousand), and lower expenses in the aggregate in all other categories (-$221 thousand). The higher level of compensation and benefits expense included an increase in staff costs and benefits (+$544 thousand), resulting from talent acquisitions since the second quarter of 2020, including staff increases in connection with the Company's Greater Washington initiative. In addition, the second quarter of 2021 included a lower level of loan origination internal cost deferrals (+$231 thousand), as the second quarter of 2020 included $242 thousand of internal cost deferrals attributable to the PPP program. * The $45 thousand decrease when compared to the first quarter of 2021 resulted primarily from higher compensation and benefits expenses (+$221 thousand), partially driven by staff increases in connection with the Greater Washington initiative, more than offset by lower expenses in the aggregate in all other categories (-$266 thousand).

Loans

Loans totaled $1.94 billion at June 30, 2021, a decrease of $4.9 million, or 0.3%, from total loans at March 31, 2021. Compared to June 30, 2020, total loans grew by $43.9 million, or 2.3%.

Portfolio loans, a non-GAAP measure defined as total loans and leases, but excluding PPP loans, totaled $1.80 billion at June 30, 2021, an increase of $54.0 million, or 3.1%, from portfolio loans at March 31, 2021. Compared to June 30, 2020, portfolio loans increased by $94.9 million, or 5.6%. Changes in portfolio loans were as follows: *

* Compared to March 31, 2021, the $54.0 million increase (12.4% annualized growth rate) in portfolio loans was primarily driven by growth in our commercial lending portfolio totaling $1.25 billion at June 30, 2021, a $20.9 million increase (6.8% annualized growth rate) from $1.23 billion at March 31, 2021: Commercial real estate ("CRE") loans were up $23.7 million, or 3.2%, while commercial and industrial ("C&I") loans and construction and land loans were down slightly. New loan originations of $88.2 million during the second quarter of 2021 were partially offset by $67.3 million in loan maturities, payoffs, partial paydowns, and lower line utilization. Consumer loans were up $10.7 million, or 14.3%, reflecting continued growth in some niche lending activities. Residential real estate loans were up $22.4 million, or 5.1%. Secondary market loan purchases were $58.6 million during the second quarter of 2021, partially offset by $36.2 million of prepayments. * Compared to June 30, 2020, the $94.9 million increase in portfolio loans was a result of the following: The commercial lending portfolio increased by $69.5 million, or 5.9%, with CRE loans up $74.9 million, or 10.7%, C&I loans up $4.8 million, or 1.3%, despite lower line utilization, and construction and land loans down $10.1 million, or 7.9%, due partially to transfers to CRE upon completion of construction. Consumer loans were up $38.7 million, or 83.0%, reflecting strong growth in some niche lending activities such as marine lending. Residential real estate loans were down $13.3 million, or 2.8%.

Average total loans were $1.94 billion for the second quarter of 2021, an increase of $44.8 million, or 2.4%, over average loans for the first quarter of 2021, and an increase of $56.5 million, or 3.0%, over average loans for the second quarter of 2020. Average portfolio loans were $1.76 billion for the second quarter of 2021, an increase of $54.0 million, or 3.2%, from average loans for the first quarter of 2021. Compared to the second quarter of 2020, average portfolio loans increased by $21.6 million, or 1.2%.

Deposits

Total deposits were $2.03 billion at June 30, 2021, a decrease of $19.4 million, or 0.9%, from the March 31, 2021 balance of $2.04 billion. Compared to June 30, 2020, total deposits grew by $194.9 million, or 10.6%. Changes in deposits were as follows:

* Customer deposits, which exclude brokered and other non-customer deposits, were $1.79 billion at June 30, 2021, compared to $1.78 billion at March 31, 2021, an increase of $17.5 million, or 1.0%. Low-cost, non-maturity deposits increased by $27.3 million, or 1.7%, during the second quarter of 2021. $17.9 million of the growth was in transaction accounts, with noninterest-bearing transaction accounts up $51.7 million, or 7.1%. The increase in non-maturity deposits was partially offset by the continued managed decline in customer CD balances, down $9.8 million, or 5.0%. The Company continues to manage for lower retention rates on maturing CDs that have substantially higher rates than current market rates. Management's strategy is to not offer above-market renewal rates on non-transactional, non-relationship deposits. * Compared to June 30, 2020, customer deposits increased by $124.9 million, or 7.5%. The increase in customer deposits was primarily the result of strong growth in low-cost, non-maturity deposits, which increased by $219.0 million, or 15.8%. $129.1 million of the growth was in transaction accounts, with noninterest-bearing transaction accounts up $106.8 million, or 15.9%. Customer CD balances declined by $94.2 million, or 33.5%. * Brokered and other non-customer deposits were $231.8 million at June 30, 2021, compared to $268.7 million at March 31, 2021 and $161.8 million at June 30, 2020. Non-customer deposits continue to be the Company's lowest-cost incremental funding source.

Average customer deposits for the second quarter of 2021 were $1.80 billion, an increase of $82.1 million, or 4.8%, from the first quarter 2021 average balance. Customer non-maturity deposit balances increased by $102.1 million, or 6.8%, with transaction accounts up $84.0 million; $74.8 million of the transaction account growth was in noninterest-bearing deposits. Compared to the second quarter of 2020, average customer deposits were up by $189.5 million, or 11.7%. Customer non-maturity deposit balances increased by $284.8 million, or 21.5%, with transaction accounts up $182.2 million; $141.7 million of the transaction account growth was in noninterest-bearing deposits.

* Please refer to the section entitled "Reconciliation of Non-GAAP Financial Measures" in this press release and to the financial tables entitled "GAAP to Non-GAAP reconciliation" for a reconciliation to the most directly comparable GAAP financial measures.

Pending Merger

On July 13, 2021, the boards of directors of F.N.B. Corporation (NYSE: FNB), the holding company for First National Bank of Pennsylvania, and the Company announced the execution of a definitive merger agreement for F.N.B. Corporation to acquire Howard Bancorp, including its wholly-owned banking subsidiary, Howard Bank, in an all-stock transaction. The completion of the merger remains subject to receipt of regulatory approvals, approval of the Company's stockholders and satisfaction of other customary closing conditions.

Due to the pending merger, the Company will not be holding an earnings call to review its second quarter 2021 financial results.

About the Company

Howard Bancorp, Inc. is the parent company of Howard Bank, a Maryland-chartered trust company operating as a commercial bank. Headquartered in Baltimore City, Maryland, Howard Bank operates a general commercial banking business through its 13 branches located throughout the Greater Baltimore Metropolitan Area. Additional information about Howard Bancorp, Inc. and Howard Bank are available on its website at www.HowardBank.com.

Cautionary Note Regarding Forward-Looking Statements

This press release and statements by the Company's management contains "forward-looking statements" as that phrase is defined in the Private Securities Litigation Reform Act of 1995. Forward looking statements can be identified by words such as "anticipated," "expects," "intends," "believes," "may," "likely," "will," "look forward" or other statements that indicate future periods. Such statements include, without limitation, statements regarding management's predictions or expectations about future economic conditions, statements about the Company's business or financial performance, as well as management's outlook or expectations for earnings, revenues, expenses, capital levels, liquidity levels, asset quality or other future financial or business performance, strategies or expectations. Such forward-looking statements are based on various assumptions (some of which may be beyond the Company's control) and are subject to risks and uncertainties which change over time and other factors which could cause actual results to differ materially from those currently anticipated. These risks and uncertainties include, but are not limited to: the impact of the global COVID-19 pandemic on our business, including the impact of the actions taken by governmental authorities to try and contain the virus or address the impact of the virus on the United States economy (including, without limitation, the CARES Act and the Consolidated Appropriations Act, 2021), and the resulting effect of these items on our operations, liquidity and capital position, and on the financial condition of the Company's borrowers and other customers; risks related to the Company's proposed merger with F.N.B. Corporation, conditions in the financial markets and economic conditions generally and in the bank and non-bank financial services industries, nationally and within our local market areas, including the effects of declines in housing markets, an increase in unemployment levels and slowdowns in economic growth; the Company's level of nonperforming assets and the costs associated with resolving problem loans including litigation and other costs; the potential inability to replace income lost from exiting our mortgage banking activities with new revenues; the impact of changes in interest rates; credit quality and strength of underlying collateral; the credit risk associated with the substantial amount of commercial real estate, construction and land development, and commercial and industrial loans in the Company's loan portfolio; the extensive federal and state regulation, supervision and examination governing almost every aspect of the Company's operations and potential expenses associated with complying with such regulations; possible additional loan losses and impairment of the collectability of loans; the Company's ability to comply with applicable capital and liquidity requirements; any further impairment of the Company's goodwill or other intangible assets; losses resulting from pending or potential litigation claims may exceed amounts accrued with respect to such matters; system failure or cybersecurity breaches of the Company's network security; the Company's ability to recruit and retain key employees; the effects of weather and natural disasters such as floods, droughts, wind, tornadoes and hurricanes as well as effects from geopolitical instability and man-made disasters including terrorist attacks; the effects of any reputation, credit, interest rate, market, operational, legal, liquidity, regulatory and compliance risk resulting from developments related to any of the risks discussed above; and other risks and uncertainties. Additional risks and uncertainties are contained in the "Risk Factors" and forward-looking statements disclosure in the Company's most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. The inclusion of this forward-looking information should not be construed as a representation by us or any person that future events, plans, or expectations contemplated by us will be achieved. Forward-looking statements are as of the date they are made, and the Company does not undertake to update any forward-looking statement, whether written or oral, whether as a result of new information, future events, or otherwise, except as required by law.

Additional information is available at www.HowardBank.com.

HOWARD BANCORP, INC. AND SUBSIDIARYSelected Unaudited Financial Data(in thousands except per share data) FOR THE SIX MONTHS ENDED FOR THE THREE MONTHS ENDED

June 30, June 30, June 30, March 31, June 30,

2021 2020 2021 2021 2020

Income Statement Data:Interest income $ 42,617 $ 43,700 $ 21,382 $ 21,235 $ 21,474

Interest expense 2,847 8,055 1,300 1,547 3,354

Net interest 39,770 35,645 20,082 19,688 18,120 incomeProvision for 1,000 6,445 - 1,000 3,000 credit lossesNet interestincome after 38,770 29,200 20,082 18,688 15,120 provision forcredit lossesNoninterest 4,422 8,125 2,353 2,069 4,759 incomeNoninterest 24,639 62,187 12,297 12,342 47,628 expenseIncome (loss) 18,553 (24,862 ) 10,138 8,415 (27,749 )before income taxesIncome tax 4,895 1,204 2,682 2,213 1,660 expense (benefit)Net income $ 13,658 $ (26,066 ) $ 7,456 $ 6,202 $ (29,409 )(loss) Per Share Dataand Shares Outstanding:Net income(loss) per $ 0.73 $ (1.39 ) $ 0.40 $ 0.33 $ (1.57 )common share -basicNet income(loss) per $ 0.72 $ (1.39 ) $ 0.40 $ 0.33 $ (1.57 )common share -dilutedBook value per $ 16.14 $ 15.14 $ 16.14 $ 15.58 $ 15.14 common share, at period endTangible bookvalue per common $ 14.28 $ 13.17 $ 14.28 $ 13.70 $ 13.17 share, at periodend (1)Average common 18,777 18,791 18,787 18,768 18,716 shares outstandingDiluted average 18,847 18,791 18,871 18,797 18,716 common shares outstandingShares 18,795 18,716 18,795 18,782 18,716 outstanding, at period end Balance Sheet Data:Total assets $ 2,599,541 $ 2,463,450 $ 2,599,541 $ 2,625,550 $ 2,463,450

Portfolio loans, 1,799,847 1,704,911 1,799,847 1,745,862 1,704,911 net of unearned income (1)PaycheckProtection 142,660 193,719 142,660 201,588 193,719 Program loans, net of unearnedincomeTotal loans and 1,942,507 1,898,630 1,942,507 1,947,450 1,898,630 leases, net of unearned income Allowance for 18,288 16,356 18,288 18,368 16,356 loan lossesOther 442,583 343,149 442,583 461,818 343,149 interest-earning assetsTotal deposits 2,025,557 1,830,674 2,025,557 2,044,926 1,830,674

Total borrowings 247,126 312,173 247,126 263,838 312,173

Common and total 303,263 283,281 303,263 292,675 283,281 stockholders' equity Average total 2,563,631 2,449,822 2,587,151 2,539,849 2,529,797 assetsAverage commonand total 298,765 316,980 300,234 297,280 319,152 stockholders'equity SelectedPerformance Metrics:Return on 1.07 % (2.14 ) 1.16 % 0.99 % (4.68 )average assets % %(2)Return on 9.22 % (16.54 ) 9.96 % 8.46 % (37.06 )average common % %equity (2)Pre-provision $ 19,553 $ (18,417 ) $ 10,138 $ 9,415 $ (24,749 )net revenue ("PPNR") (1)PPNR to average 1.54 % 1.22 % 1.57 % 1.50 % 1.26 %assets (1)Net interest 3.41 % 3.28 % 3.39 % 3.43 % 3.22 %margin (2),(3)Efficiency ratio 55.75 % 142.08 % 54.81 % 56.73 % 208.17 %(4)Core efficiency 55.75 % 61.90 % 54.81 % 56.73 % 60.01 %ratio (1) Asset Quality Ratios:Nonperformingloans to 0.90 % 1.08 % 0.90 % 0.90 % 1.08 %portfolio loans(1)Nonperformingassets to 0.94 % 1.21 % 0.94 % 0.94 % 1.21 %portfolio loansand OREO (1)Nonperforming 0.65 % 0.84 % 0.65 % 0.62 % 0.84 %assets to total assetsAllowance for 0.94 % 0.86 % 0.94 % 0.94 % 0.86 %loan losses to total loansAllowance forloan losses to 1.02 % 0.96 % 1.02 % 1.05 % 0.96 %portfolio loans(1)Allowance forloan losses to 112.76 % 88.56 % 112.76 % 116.82 % 88.56 %nonperformingloansNet chargeoffsto average total 0.20 % 0.05 % 0.02 % 0.43 % 0.01 %loans and leases(2) Capital Ratios (Bancorp):Tier 1 capitalto average 9.74 % 8.73 % 9.74 % 9.53 % 8.73 %assets (leverageratio)Common equitytier 1 capital 12.26 % 11.66 % 12.26 % 12.06 % 11.66 %to risk-weightedassetsTier 1 capital 12.26 % 11.66 % 12.26 % 12.06 % 11.66 %to risk-weighted assetsTotal capital to 14.62 % 14.09 % 14.62 % 14.47 % 14.09 %risk-weighted assetsAverage equity 11.65 % 12.94 % 11.60 % 11.70 % 12.62 %to average assets (1) This is a non-GAAP measure. See the GAAP to Non-GAAP Reconciliation at theend of the financial statements.(2) Annualized(3) Net interest income divided by average earning assets(4) Noninterest expense divided by the sum of net interest income andnoninterest incomeHOWARD BANCORP, INC. AND SUBSIDIARYUnaudited Consolidated Statements of Income (Loss)(in thousands except per share data) FOR THE SIX MONTHS ENDED FOR THE THREE MONTHS ENDED

June 30, June 30, June 30, March 31, June 30,

2021 2020 2021 2021 2020

Interest $ 42,617 $ 43,700 $ 21,382 $ 21,235 $ 21,474 incomeInterest 2,847 8,055 1,300 1,547 3,354 expenseNet interest 39,770 35,645 20,082 19,688 18,120 incomeProvision for 1,000 6,445 - 1,000 3,000 credit lossesNet interestincome after 38,770 29,200 20,082 18,688 15,120 provision forcredit lossesNoninterest income:Servicecharges on 1,193 1,075 654 539 433 depositaccountsRealized andunrealized - 1,036 - - - gains from mortgagebankingGain (loss) - 3,044 - - 3,044 on sale of securitiesGain (loss)on the - 6 - - 6 disposal of premises &equipmentIncome frombank owned 845 886 421 424 441 lifeinsuranceLoan relatedfees and 568 755 271 297 175 servicechargesOther income 1,816 1,323 1,007 809 660

Total 4,422 8,125 2,353 2,069 4,759 noninterest incomeNoninterest expense:Compensation 14,065 14,700 7,143 6,922 6,259 and benefitsOccupancy and 2,643 2,275 1,318 1,325 1,242 equipmentMarketing and 638 903 341 297 453 business developmentProfessional 1,543 1,360 809 734 634 feesData 1,866 1,776 982 884 849 processing feesFDIC 466 499 171 295 236 assessmentOther real 40 346 - 40 268 estate ownedLoan 335 660 181 154 192 production expenseAmortizationof core 1,209 1,379 594 615 680 depositintangibleGoodwill - 34,500 - - 34,500 impairment chargeOther 1,834 3,789 758 1,076 2,315 operating expenseTotal 24,639 62,187 12,297 12,342 47,628 noninterest expenseIncome (loss) 18,553 (24,862 ) 10,138 8,415 (27,749 )before income taxesIncome tax 4,895 1,204 2,682 2,213 1,660 expense (benefit)Net income $ 13,658 $ (26,066 ) $ 7,456 $ 6,202 $ (29,409 )(loss) Net income(loss) per common share:Basic $ 0.73 $ (1.39 ) $ 0.40 $ 0.33 $ (1.57 )

Diluted $ 0.72 $ (1.39 ) $ 0.40 $ 0.33 $ (1.57 )

Averagecommon shares outstanding:Basic 18,777 18,791 18,787 18,768 18,716

Diluted 18,847 18,791 18,871 18,797 18,716

SelectedPerformance Metrics:Return on 1.07 % -2.14 % 1.16 % 0.99 % -4.68 %average assetsReturn on 9.22 % -16.54 % 9.96 % 8.46 % -37.06 %average common equityCorePre-provision $ 19,553 $ 14,921 $ 10,138 $ 9,415 $ 7,931 net revenue("PPNR") (1)Core PPNR to 1.54 % 1.22 % 1.57 % 1.50 % 1.26 %average assets (1)Net interest 3.41 % 3.28 % 3.39 % 3.43 % 3.22 %marginEfficiency 55.75 % 142.08 % 54.81 % 56.73 % 208.17 %ratioCore 55.75 % 61.90 % 54.81 % 56.73 % 60.01 %efficiency ratio (1) (1) This is a non-GAAP measure. See the GAAP to Non-GAAP Reconciliation at theend of the financial statements.HOWARD BANCORP, INC. AND SUBSIDIARYUnaudited Consolidated Balance Sheets(in thousands except per share data) PERIOD ENDED

June 30, March 31, December 31, September 30, June 30,

2021 2021 2020 2020 2020

ASSETS Cash and due from $ 12,681 $ 10,750 $ 9,415 $ 11,043 $ 12,652 banksInterest bearing 59,754 68,822 65,204 59,539 46,418 deposits with banksTotal cash and cash 72,435 79,572 74,619 70,582 59,070 equivalentsSecurities 367,873 377,040 375,397 377,471 276,889 available for sale, at fair valueSecurities held to 6,000 6,250 7,250 7,250 7,250 maturity, at amortized costFederal Home Loan 8,956 9,706 10,637 10,637 12,592 Bank of Atlanta stock, at costPortfolio loans, 1,799,847 1,745,862 1,698,322 1,688,030 1,704,911 net of unearned income (1)Paycheck Protection 142,660 201,588 167,639 196,375 193,719 Program loans, net of unearned incTotal loans and 1,942,507 1,947,450 1,865,961 1,884,405 1,898,630 leases, net of unearned incomeAllowance for loan (18,288 ) (18,368 ) (19,162 ) (17,657 ) (16,356 )lossesNet loans and 1,924,219 1,929,082 1,846,799 1,866,748 1,882,274 leasesBank premises and 40,290 40,700 41,142 42,147 42,434 equipment, netGoodwill 31,449 31,449 31,449 31,449 31,449

Core deposit 4,586 5,180 5,795 6,431 7,090 intangibleBank owned life 78,443 78,021 77,597 77,157 76,716 insuranceOther real estate 629 629 743 1,155 2,137 ownedDeferred tax 28,324 32,175 31,254 34,687 35,034 assets, netInterest receivable 36,337 35,746 35,309 33,470 30,515 and other assetsTotal assets $ 2,599,541 $ 2,625,550 $ 2,537,991 $ 2,559,184 $ 2,463,450

LIABILITIES Noninterest-bearing $ 778,388 $ 726,643 $ 676,801 $ 657,028 $ 671,598 depositsInterest-bearing 1,247,169 1,318,283 1,298,613 1,315,710 1,159,076 depositsTotal deposits 2,025,557 2,044,926 1,975,414 1,972,738 1,830,674

FHLB advances 205,000 225,000 200,000 200,000 246,000

Fed funds and repos 13,436 10,353 13,634 41,473 37,834

Subordinated debt 28,690 28,485 28,437 28,388 28,339

Total borrowings 247,126 263,838 242,071 269,861 312,173

Accrued expenses 23,595 24,111 25,874 27,085 37,322 and other liabilitiesTotal liabilities 2,296,278 2,332,875 2,243,359 2,269,684 2,180,169

STOCKHOLDERS' EQUITYCommon stock - 188 188 187 187 187 $0.01 par valueAdditional paid in 271,086 270,934 270,591 270,445 270,057 capitalRetained earnings 31,825 24,369 18,167 13,696 9,090

Accumulated other 164 (2,816 ) 5,687 5,172 3,947 comprehensive incomeTotal stockholders' 303,263 292,675 294,632 289,500 283,281 equityTotal liabilities $ 2,599,541 $ 2,625,550 $ 2,537,991 $ 2,559,184 $ 2,463,450 and stockholders' equity Capital Ratios (Bancorp)Tier 1 capital to 9.74 % 9.53 % 9.26 % 9.07 % 8.73 %average assets (leverage ratio)Common equity tier1 capital to 12.26 % 12.06 % 11.83 % 11.65 % 11.66 %risk-weightedassetsTier 1 capital to 12.26 % 12.06 % 11.83 % 11.65 % 11.66 %risk-weighted assetsTotal capital to 14.62 % 14.47 % 14.32 % 14.11 % 14.09 %risk-weighted assets Asset Quality MeasuresNonperforming loans $ 16,219 $ 15,723 $ 19,430 $ 16,984 $ 18,469

Other real estate 629 629 743 1,155 2,137 owned (OREO)Total nonperforming $ 16,848 $ 16,352 $ 20,173 $ 18,139 $ 20,606 assets Nonperforming loans 0.90 % 0.90 % 1.14 % 1.01 % 1.08 %to portfolio loans (1)Nonperforming 0.94 % 0.94 % 1.19 % 1.07 % 1.21 %assets to portfolio loans and OREO (1)Nonperforming 0.65 % 0.62 % 0.79 % 0.71 % 0.84 %assets to total assetsAllowance for loan 0.94 % 0.94 % 1.03 % 0.94 % 0.86 %losses to total loansAllowance for loan 1.02 % 1.05 % 1.13 % 1.05 % 0.96 %losses to portfolio loans (1)Allowance for loan 112.76 % 116.82 % 98.62 % 103.96 % 88.56 %losses to nonperforming loansNet chargeoffs toaverage portfolio 0.02 % 0.43 % 0.05 % 0.02 % 0.01 %loans and leases(1), (2)Provision forcredit losses to 0.00 % 0.24 % 0.40 % 0.40 % 0.69 %average portfolioloans (1), (2) (1) This is a non-GAAP measure. See the GAAP to Non-GAAP Reconciliation at theend of the financial statements.(2) AnnualizedHOWARD BANCORP, INC. AND SUBSIDIARYAverage Balances, Yields, and Rates(in thousands) Three Months Ended June 30, 2021 Three Months Ended March 31, 2021 Three Months Ended June 30, 2020

Average Income / Yield Average Income / Yield Average Income / Yield / / / Balance Expense Balance Expense Balance Expense Rate Rate Rate

Earning assets Loans and leases: Commercial loans $ 358,980 $ 3,271 3.65 % $ 344,841 $ 3,085 3.63 % $ 375,835 $ 3,730 3.99 % and leases Commercial real 755,815 8,528 4.53 736,282 8,556 4.71 694,613 8,143 4.71 estate Construction and 118,704 1,116 3.77 117,251 1,109 3.84 132,899 1,287 3.89 land Residential real 446,784 4,249 3.81 443,225 4,072 3.73 490,110 4,948 4.06 estate Consumer 80,418 748 3.73 65,136 658 4.09 45,619 536 4.73

Total portfolio 1,760,701 17,912 4.08 1,706,735 17,479 4.15 1,739,076 18,644 4.31 loans Paycheck 177,546 1,776 4.01 186,728 2,203 4.79 142,715 896 2.53 Protection Program loans Total loans and 1,938,247 19,688 4.07 1,893,463 19,682 4.22 1,881,791 19,540 4.18 leases Securities available for sale: U.S Gov agencies 45,256 274 2.43 48,253 288 2.42 80,217 532 2.67

Mortgage-backed 320,960 1,088 1.36 319,063 929 1.18 189,419 945 2.01

Corporate 9,294 139 6.00 9,152 140 6.20 5,507 92 6.72 debentures Total available 375,510 1,501 1.60 376,467 1,357 1.46 275,143 1,569 2.29 for sale securities Securities held to 6,206 88 5.69 6,283 89 5.72 7,745 112 5.82 maturity FHLB Atlanta stock, 9,008 99 4.39 10,687 101 3.85 13,015 220 6.80 at cost Interest bearing 45,741 6 0.06 38,297 6 0.06 86,181 20 0.09 deposits in banks Loans held for sale - - - - - - 1,365 13 3.83

Total earning 2,374,712 21,382 3.61 % 2,325,198 21,235 3.70 % 2,265,240 21,474 3.81 % assetsCash and due from 10,781 10,586 16,056 banksBank premises and 40,593 40,993 42,431 equipment, netGoodwill 31,449 31,449 65,570

Core deposit 4,956 5,563 7,522 intangibleOther assets 143,052 145,158 146,395

Less: allowance for (18,392 ) (19,098 ) (13,417 )loan losses Total assets $ 2,587,151 $ 2,539,849 $ 2,529,797

Interest-bearing liabilities Deposits: Interest-bearing $ 227,272 $ 19 0.03 % $ 218,053 $ 22 0.04 % $ 186,781 $ 57 0.12 % demand accounts Money market 428,169 66 0.06 442,930 83 0.08 365,658 342 0.38

Savings 180,992 15 0.03 171,508 12 0.03 140,904 25 0.07

Time deposits 409,404 310 0.30 438,545 543 0.50 557,401 1,959 1.41

Total 1,245,837 410 0.13 1,271,036 660 0.21 1,250,744 2,383 0.77 interest-bearing deposits Borrowings: FHLB advances 206,231 443 0.86 207,696 441 0.86 255,945 506 0.80

Fed funds and 10,751 1 0.04 12,983 1 0.03 16,747 13 0.31 repos Subordinated debt 28,608 446 6.25 28,455 446 6.35 28,307 452 6.42

Total borrowings 245,590 890 1.45 249,133 888 1.44 300,999 971 1.30

Total 1,491,427 1,300 0.35 % 1,520,169 1,547 0.41 % 1,551,743 3,354 0.87 % interest-bearing fundsNoninterest-bearing 773,825 699,021 632,080 depositsOther liabilities 21,665 23,379 26,822

Total 2,286,917 2,242,569 2,210,645 liabilitiesStockholders' equity 300,234 297,280 319,152

Total $ 2,587,151 $ 2,539,849 $ 2,529,797 liabilities & equityNet interest rate $ 20,082 3.26 % $ 19,688 3.29 % $ 18,120 2.94 %spread (1)Effect of 0.13 0.14 0.27noninterest-bearing fundsNet interest margin 3.39 % 3.43 % 3.22 %on earning assets (2) (1) The difference between the annualized yield on average total earning assetsand the annualized cost of average total interest-bearing liabilities(2) Annualized net interest income divided by average total earning assetsHOWARD BANCORP, INC. AND SUBSIDIARYAverage Balances, Yields, and Rates(in thousands) Six Months Ended June 30, 2021 Six Months Ended June 30, 2020

Average Income / Yield Average Income / Yield / / Balance Expense Balance Expense Rate Rate

Earning assets Loans and leases: Commercial loans $ 351,950 $ 6,356 3.64 % $ 376,517 $ 8,034 4.29 % and leases Commercial real 746,102 17,084 4.62 692,772 16,589 4.82 estate Construction and 117,982 2,225 3.80 132,194 2,750 4.18 land Residential real 445,014 8,321 3.77 499,572 10,193 4.10 estate Consumer 72,819 1,405 3.89 45,641 1,056 4.65

Total portfolio 1,733,867 35,391 4.12 1,746,696 38,622 4.45 loans Paycheck 182,112 3,979 4.41 71,357 896 2.53 Protection Program loans Total loans and 1,915,979 39,370 4.14 1,818,053 39,518 4.37 leases Securities available for sale: U.S Gov agencies 46,746 562 2.42 75,523 1,024 2.73

Mortgage-backed 320,017 2,017 1.27 170,409 1,923 2.27

Corporate 9,224 279 6.11 5,515 184 6.71 debentures Total available 375,986 2,858 1.53 251,447 3,131 2.50 for sale securities Securities held to 6,244 177 5.71 7,747 225 5.84 maturity FHLB Atlanta stock, 9,843 200 4.09 14,361 393 5.50 at cost Interest bearning 42,039 12 0.06 85,521 254 0.60 deposits in banks Loans held for sale - - - 9,894 179 3.64

Total earning 2,350,092 42,617 3.66 % 2,187,023 43,700 4.02 % assetsCash and due from 10,684 14,833 banksBank premises and 40,792 42,560 equipment, netGoodwill 31,449 65,760

Core deposit 5,258 7,871 intangibleOther assets 144,099 143,843

Less: allowance for (18,743 ) (12,068 )loan losses Total assets $ 2,563,631 $ 2,449,822

Interest-bearing liabilities Deposits: Interest-bearing $ 222,688 $ 41 0.04 % $ 185,043 $ 214 0.23 % demand accounts Money market 435,509 149 0.07 367,218 1,047 0.57

Savings 176,276 27 0.03 137,240 70 0.10

Time deposits 423,894 853 0.41 540,691 4,262 1.59

Total 1,258,367 1,070 0.17 1,230,192 5,593 0.91 interest-bearing deposits Borrowings: FHLB advances 206,959 884 0.86 288,407 1,532 1.07

Fed funds and 11,860 2 0.03 11,707 17 0.29 other borrowings Subordinated debt 28,532 891 6.30 28,282 913 6.49

Total borrowings 247,351 1,777 1.45 328,396 2,462 1.51

Total 1,505,718 2,847 0.38 % 1,558,588 8,055 1.04 % interest-bearing fundsNoninterest-bearing 736,630 548,390 depositsOther liabilities 22,518 25,864

Total 2,264,866 2,132,842 liabilitiesStockholders' equity 298,765 316,980

Total $ 2,563,631 $ 2,449,822 liabilities & equityNet interest rate $ 39,770 3.28 % $ 35,645 2.98 %spread (1)Effect of 0.13 0.30noninterest-bearing fundsNet interest margin 3.41 % 3.28 %on earning assets (2) (1) The difference between the annualized yield on average total earning assetsand the annualized cost of average total interest-bearing liabilities(2) Annualized net interest income divided by average total earning assets Reconciliation of Non-GAAP Financial Measures

This press release contains references to financial measures that are not defined in generally accepted accounting principles ("GAAP"). Such non-GAAP financial measures should not be considered in isolation or as a substitute for the most directly comparable or other financial measures calculated in accordance with GAAP. Moreover, the manner in which we calculate the non-GAAP financial measures that we discuss in this press release may differ from that of other companies reporting measures with similar names. You should understand how such other banking organizations calculate their financial measures with names similar to the non-GAAP financial measures we have discussed in this press release when comparing such non-GAAP financial measures.

The Company considers the use of select non-GAAP financial measures and ratios to be useful for financial and operational decision making and useful in evaluating period-to-period comparisons. The Company believe that these non-GAAP financial measures provide meaningful supplemental information regarding our performance by excluding certain expenditures or assets that we believe are not indicative of our primary business operating results. We believe these measures provide investors with information regarding balance sheet profitability, and we believe that management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting, analyzing and comparing past, present and future periods.

The Company has excluded the after tax impact of its former mortgage banking activities, the goodwill impairment charge, and certain other items, as well as the income tax benefit of the change in net operating loss carryback rules as a result of the CARES Act. The reconciliation is presented on the following pages.

HOWARD BANCORP, INC. AND SUBSIDIARYGAAP TO NON-GAAP RECONCILIATION - CORE NET INCOME AND EPS(in thousands except per share data) FOR THE SIX MONTHS ENDED FOR THE THREE MONTHS ENDED

June 30, June 30, June 30, March 31, December September June 30, 31, 30,

2021 2020 2021 2021 2020 2020 2020



Net income $ 13,658 $ (26,066 ) $ 7,456 $ 6,202 $ 4,471 $ 4,604 $ (29,409 )(loss) (GAAP)Adjustments:

Mortgage banking activities:Net interest - (143 ) - - - - - incomeNoninterest - (1,425 ) - - - - - incomeNoninterest - 1,438 - - - - - expensesTotal pretax- mortgage - (130 ) - - - - - bankingactivitiesCertain other items:Securities - (3,044 ) - - - - (3,044 )gainsPrepayment - 224 - - - - 224 penalty - FHLB advancesBranch - - - - 554 - - optimization chargeLitigation - 1,000 - - 980 - 1,000 expenseCFO departure - 788 - - - - -

Goodwill - 34,500 - - - - 34,500 impairment chargeTotal pretax - 33,468 - - 1,534 - 32,680 - certain other itemsTotal core - 33,338 - - 1,534 - 32,680 pretax income adjustmentsIncome taxexpense - (276 ) - - 414 - (454 )(benefit) ofadjustmentsTotal corepretax income - 33,614 - - 1,120 - 33,134 adjustments,net of taxLess:One-time - (1,177 ) - - (94 ) - - benefit of NOL carryback(CARES Act)Total core - 32,437 - - 1,026 - 33,134 adjustments to net incomeCore net $ 13,658 $ 6,371 $ 7,456 $ 6,202 $ 5,497 $ 4,604 $ 3,725 income (Non-GAAP)

Diluted 18,847 18,791 18,871 18,797 18,748 18,737 18,716 average common shares

Diluted EPS $ 0.72 $ (1.39 ) $ 0.40 $ 0.33 $ 0.24 $ 0.25 $ (1.57 )(GAAP)Total core $ - 1.73 - - 0.05 - 1.77 adjustments to net incomeCore diluted $ 0.72 $ 0.34 $ 0.40 $ 0.33 $ 0.29 $ 0.25 $ 0.20 EPS (Non-GAAP) GAAP TO NON-GAAP RECONCILIATION - PRE-PROVISION NET REVENUE ("PPNR")(in thousands) FOR THE SIX MONTHS ENDED FOR THE THREE MONTHS ENDED

June 30, June 30, June 30, March 31, December September June 30, 31, 30,

2021 2020 2021 2021 2020 2020 2020



Net income $ 13,658 $ (26,066 ) $ 7,456 $ 6,202 $ 4,471 $ 4,604 $ (29,409 )(loss) (GAAP)Plus: 1,000 6,445 - 1,000 1,700 1,700 3,000 provision for credit lossesPlus: income 4,895 1,204 2,682 2,213 1,093 1,348 1,660 tax expensePre-provision $ 19,553 $ (18,417 ) $ 10,138 $ 9,415 $ 7,264 $ 7,652 $ (24,749 )net revenue (Non-GAAP)

Adjustments to net revenue:Mortgage - (130 ) - - - - - banking activitiesSecurities - (3,044 ) - - - - (3,044 )gainsPrepayment - 224 - - - - 224 penalty - FHLB advancesBranch - - - - 554 - - optimization chargeLitigation - 1,000 - - 980 - 1,000 accrualCFO departure - 788 - - - - -

Goodwill - 34,500 - - - - 34,500 impairment chargeTotal corepretax net - 33,338 - - 1,534 - 32,680 revenueadjustmentsCorepre-provision $ 19,553 $ 14,921 $ 10,138 $ 9,415 $ 8,798 $ 7,652 $ 7,931 net revenue(PPNR) GAAP TO NON-GAAP RECONCILIATION - PPNR / AVERAGE TANGIBLE COMMON EQUITY(in thousands) FOR THE SIX MONTHS ENDED FOR THE THREE MONTHS ENDED

June 30, June 30, June 30, March 31, December September June 30, 31, 30,

2021 2020 2021 2021 2020 2020 2020



Core PPNR $ 19,553 $ 14,921 $ 10,138 $ 9,415 $ 8,798 $ 7,652 $ 7,931 (Non-GAAP)

Average $ 298,765 $ 316,980 $ 300,234 $ 297,280 $ 294,285 $ 288,727 $ 319,152 common equity (GAAP)Less average (31,449 ) (65,760 ) (31,449 ) (31,449 ) (31,449 ) (31,449 ) (65,570 )goodwillLess averagecore deposit (4,018 ) (5,921 ) (3,795 ) (4,246 ) (4,716 ) (5,076 ) (5,671 )intangible,netAveragetangible $ 263,297 $ 245,299 $ 264,991 $ 261,584 $ 258,120 $ 252,202 $ 247,911 common equity(Non-GAAP)

Core PPNR /average 14.98 % 12.23 % 15.35 % 14.60 % 13.56 % 12.07 % 12.87 %tangible common equity(Non-GAAP) Annualized ratio based on days in quarter divided by days in yearHOWARD BANCORP, INC. AND SUBSIDIARYGAAP TO NON-GAAP RECONCILIATION - PPNR / AVERAGE TOTAL ASSETS(in thousands) FOR THE SIX MONTHS ENDED FOR THE THREE MONTHS ENDED

June 30, June 30, June 30, March 31, December 31, September 30, June 30,

2021 2020 2021 2021 2020 2020 2020

Core PPNR $ 19,553 $ 14,921 $ 10,138 $ 9,415 $ 8,798 $ 7,652 $ 7,931 (Non-GAAP) Average total 2,563,631 2,449,822 2,587,151 2,539,849 2,527,869 2,524,773 2,529,797 assets (GAAP) Core PPNR /average total 1.54 % 1.22 % 1.57 % 1.50 % 1.38 % 1.21 % 1.26 %assets(Non-GAAP) Annualized ratio based on days in quarter divided by days in year GAAP TO NON-GAAP RECONCILIATION - EFFICIENCY RATIO(in thousands) FOR THE SIX MONTHS ENDED FOR THE THREE MONTHS ENDED

June 30, June 30, June 30, March 31, December 31, September 30, June 30,

2021 2020 2021 2021 2020 2020 2020

Net interest $ 39,770 $ 35,645 $ 20,082 $ 19,688 $ 19,686 $ 18,272 $ 18,120 income (GAAP)Adjustments: Mortgage - (143 ) - - - - - banking activitiesTotal corenet interest - (143 ) - - - - - incomeadjustmentsCore netinterest $ 39,770 $ 35,502 $ 20,082 $ 19,688 $ 19,686 $ 18,272 $ 18,120 income(Non-GAAP) Noninterest $ 4,422 $ 8,125 $ 2,353 $ 2,069 $ 2,145 $ 2,089 $ 4,759 income (GAAP)Adjustments: Mortgage - (1,425 ) - - - - - banking activitiesSecurities - (3,044 ) - - - - (3,044 )gainsTotal corenoninterest - (4,469 ) - - - - (3,044 )incomeadjustmentsCorenoninterest $ 4,422 $ 3,656 $ 2,353 $ 2,069 $ 2,145 $ 2,089 $ 1,715 income(Non-GAAP) Total netinterest $ 44,192 $ 43,770 $ 22,435 $ 21,757 $ 21,831 $ 20,361 $ 22,879 income and noninterestincome (GAAP)Adjustments: Total corenet interest - (143 ) - - - - - incomeadjustmentsTotal corenoninterest - (4,469 ) - - - - (3,044 )incomeadjustmentsTotal corenet interestincome and - (4,612 ) - - - - (3,044 )noninterestincomeadjustmentsCore netinterestincome + $ 44,192 $ 39,158 $ 22,435 $ 21,757 $ 21,831 $ 20,361 $ 19,835 noninterestincome(Non-GAAP) Noninterest $ 24,639 $ 62,187 $ 12,297 $ 12,342 $ 14,567 $ 12,709 $ 47,628 expense (GAAP)Adjustments: Mortgage - (1,438 ) - - - - - banking activitiesPrepayment - (224 ) - - - - (224 )penalty - FHLB advancesBranch - - - - (554 ) - - optimization chargeLitigation - (1,000 ) - - (980 ) - (1,000 )accrualCFO departure - (788 ) - - - - -

Goodwill - (34,500 ) - - - - (34,500 )impairment chargeTotal corenoninterest - (37,950 ) - - (1,534 ) - (35,724 )expenseadjustmentsCorenoninterest $ 24,639 $ 24,237 $ 12,297 $ 12,342 $ 13,033 $ 12,709 $ 11,904 expense(Non-GAAP) Efficiency 55.75 % 142.08 % 54.81 % 56.73 % 66.73 % 62.42 % 208.17 %ratio (GAAP) Coreefficiency 55.75 % 61.90 % 54.81 % 56.73 % 59.70 % 62.42 % 60.01 %ratio(Non-GAAP) GAAP TO NON-GAAP RECONCILIATION - TANGIBLE BOOK VALUE PER COMMON SHARE(in thousands except per share data) FOR THE SIX MONTHS ENDED FOR THE THREE MONTHS ENDED

June 30, June 30, June 30, March 31, December 31, September 30, June 30,

2021 2020 2021 2021 2020 2020 2020

Common andtotal $ 303,263 $ 283,281 $ 303,263 $ 292,675 $ 294,632 $ 289,500 $ 283,281 stockholder'sequity (GAAP) Total shares 18,795 18,716 18,795 18,782 18,745 18,742 18,716 outstanding at period end Book valueper common $ 16.14 $ 15.14 $ 16.14 $ 15.58 $ 15.72 $ 15.45 $ 15.14 share at period end(GAAP) Common andtotal $ 303,263 $ 283,281 $ 303,263 $ 292,675 $ 294,632 $ 289,500 $ 283,281 stockholder'sequity (GAAP)Less goodwill (31,449 ) (31,449 ) (31,449 ) (31,449 ) (31,449 ) (31,449 ) (31,449 )

Less depositintangible, (3,501 ) (5,358 ) (3,501 ) (3,942 ) (4,398 ) (4,869 ) (5,358 )net of deferred taxliabilityTangible $ 268,313 $ 246,474 $ 268,313 $ 257,284 $ 258,785 $ 253,182 $ 246,474 common equity (Non-GAAP) Total shares 18,795 18,716 18,795 18,782 18,745 18,742 18,716 outstanding at period end Tangible bookvalue per $ 14.28 $ 13.17 $ 14.28 $ 13.70 $ 13.81 $ 13.51 $ 13.17 common share(Non GAAP)HOWARD BANCORP, INC. AND SUBSIDIARYGAAP TO NON-GAAP RECONCILIATION - TANGIBLE COMMON EQUITY / TANGIBLE ASSETS(in thousands except per share data) FOR THE SIX MONTHS ENDED FOR THE THREE MONTHS ENDED

June 30, June 30, June 30, March 31, December 31, September 30, June 30,

2021 2020 2021 2021 2020 2020 2020

Common (andtotal) $ 303,263 $ 283,281 $ 303,263 $ 292,675 $ 294,632 $ 289,500 $ 283,281 stockholder'sequity (GAAP)Less goodwill (31,449 ) (31,449 ) (31,449 ) (31,449 ) (31,449 ) (31,449 ) (31,449 )

Less depositintangible, (3,501 ) (5,358 ) (3,501 ) (3,942 ) (4,398 ) (4,869 ) (5,358 )net of deferred taxliabilityTangible $ 268,313 $ 246,474 $ 268,313 $ 257,284 $ 258,785 $ 253,182 $ 246,474 common equity (Non-GAAP) Total assets $ 2,599,541 $ 2,463,450 $ 2,599,541 $ 2,625,550 $ 2,537,991 $ 2,559,184 $ 2,463,450 (GAAP)Less goodwill (31,449 ) (31,449 ) (31,449 ) (31,449 ) (31,449 ) (31,449 ) (31,449 )

Less depositintangible, (3,501 ) (5,358 ) (3,501 ) (3,942 ) (4,398 ) (4,869 ) (5,358 )net of deferred taxliabilityTangible $ 2,564,591 $ 2,426,643 $ 2,564,591 $ 2,590,159 $ 2,502,144 $ 2,522,866 $ 2,426,643 assets (Non-GAAP) Tangiblecommon equity 10.46 % 10.16 % 10.46 % 9.93 % 10.34 % 10.04 % 10.16 %/ tangible assets(period end) GAAP TO NON-GAAP RECONCILIATION - RETURN ON AVERAGE COMMON EQUITY(in thousands) FOR THE SIX MONTHS ENDED FOR THE THREE MONTHS ENDED

June 30, June 30, June 30, March 31, December 31, September 30, June 30,

2021 2020 2021 2021 2020 2020 2020

Net income $ 13,658 $ (26,066 ) $ 7,456 $ 6,202 $ 4,471 $ 4,604 $ (29,409 )(loss) (GAAP) Averagecommon (and 298,765 316,980 300,234 297,280 294,285 288,727 319,152 total) equity(GAAP) Return onaverage 9.22 % -16.54 % 9.96 % 8.46 % 6.04 % 6.34 % -37.06 %common equity(GAAP) Net income $ 13,658 $ (26,066 ) $ 7,456 $ 6,202 $ 4,471 $ 4,604 $ (29,409 )(loss) (GAAP)Total coreadjustments - 32,437 - - 1,026 - 33,134 to net income(loss)Core net $ 13,658 $ 6,371 $ 7,456 $ 6,202 $ 5,497 $ 4,604 $ 3,725 income (Non-GAAP) Average 298,765 316,980 300,234 297,280 294,285 288,727 319,152 common equity Core returnon average 9.22 % 4.04 % 9.96 % 8.46 % 7.43 % 6.34 % 4.69 %common equity(Non-GAAP) Annualized ratio based on days in quarter divided by days in year GAAP TO NON-GAAP RECONCILIATION - TANGIBLE RETURN ON AVERAGE TANGIBLE COMMONEQUITY(in thousands) FOR THE SIX MONTHS ENDED FOR THE THREE MONTHS ENDED

June 30, June 30, June 30, March 31, December 31, September 30, June 30,

2021 2020 2021 2021 2020 2020 2020

Net income $ 13,658 $ (26,066 ) $ 7,456 $ 6,202 $ 4,471 $ 4,604 $ (29,409 )(loss) (GAAP) Goodwill - 34,500 - - - - 34,500 impairment charge CDI 1,209 1,379 594 615 636 659 680 amortizationIncome tax (326 ) (372 ) (160 ) (166 ) (172 ) (178 ) (184 )expense on pretax totalCDI 883 1,007 434 449 464 481 496 amortization, net of taxTotal 883 35,507 434 449 464 481 34,996 adjustments to net incomeTangible net $ 14,541 $ 9,441 $ 7,890 $ 6,651 $ 4,936 $ 5,085 $ 5,587 income (Non-GAAP) Average $ 298,765 $ 316,980 $ 300,234 $ 297,280 $ 294,285 $ 288,727 $ 319,152 common equity (GAAP)Less average (31,449 ) (65,760 ) (31,449 ) (31,449 ) (31,449 ) (31,449 ) (65,570 )goodwillLess averagecore deposit (4,018 ) (5,921 ) (3,795 ) (4,246 ) (4,716 ) (5,076 ) (5,671 )intangible,netAveragetangible $ 263,297 $ 245,299 $ 264,991 $ 261,584 $ 258,120 $ 252,202 $ 247,911 common equity(Non-GAAP) Tangiblereturn onaverage 11.14 % 7.74 % 11.94 % 10.31 % 7.61 % 8.02 % 9.06 %tangiblecommon equity(Non-GAAP) Tangible net $ 14,541 $ 9,441 $ 7,890 $ 6,651 $ 4,936 $ 5,085 $ 5,587 income (Non-GAAP)Total coreadjustmentsto net income - (2,063 ) - - 1,026 - (1,366 )(loss) (exgoodwillimpairment)Core tangible $ 14,541 $ 7,378 $ 7,890 $ 6,651 $ 5,961 $ 5,085 $ 4,222 net income (Non-GAAP) Averagetangible $ 263,297 $ 245,299 $ 264,991 $ 261,584 $ 258,120 $ 252,202 $ 247,911 common equity(Non-GAAP) Core tangiblereturn onaverage 11.14 % 6.05 % 11.94 % 10.31 % 9.19 % 8.02 % 6.85 %tangiblecommon equity(Non-GAAP) Annualized ratio based on days in quarter divided by days in yearHOWARD BANCORP, INC. AND SUBSIDIARYGAAP TO NON-GAAP RECONCILIATION - RETURN ON AVERAGE ASSETS(in thousands) FOR THE SIX MONTHS ENDED FOR THE THREE MONTHS ENDED

June 30, June 30, June 30, March 31, December 31, September 30, June 30,

2021 2020 2021 2021 2020 2020 2020

Net income $ 13,658 $ (26,066 ) $ 7,456 $ 6,202 $ 4,471 $ 4,604 $ (29,409 )(loss) (GAAP) Average total 2,563,631 2,449,822 2,587,151 2,539,849 2,527,869 2,524,773 2,529,797 assets (GAAP) Return on 1.07 % -2.14 % 1.16 % 0.99 % 0.70 % 0.73 % -4.68 %average assets (GAAP) Net income 13,658 (26,066 ) 7,456 6,202 4,471 4,604 (29,409 )(loss) (GAAP)Total coreadjustments - 32,437 - - 1,026 - 33,134 to net income(loss)Core net $ 13,658 $ 6,371 $ 7,456 $ 6,202 $ 5,497 $ 4,604 $ 3,725 income (Non-GAAP) Average total 2,563,631 2,449,822 2,587,151 2,539,849 2,527,869 2,524,773 2,529,797 assets (GAAP) Core returnon average 1.07 % 0.52 % 1.16 % 0.99 % 0.87 % 0.73 % 0.59 %assets(Non-GAAP) Annualized ratio based on days in quarter divided by days in year GAAP TO NON-GAAP RECONCILIATION - TANGIBLE RETURN ON AVERAGE TANGIBLE ASSETS(in thousands) FOR THE SIX MONTHS ENDED FOR THE THREE MONTHS ENDED

June 30, June 30, June 30, March 31, December 31, September 30, June 30,

2021 2020 2021 2021 2020 2020 2020

Net income $ 13,658 $ (26,066 ) $ 7,456 $ 6,202 $ 4,471 $ 4,604 $ (29,409 )(loss) (GAAP) Goodwill - 34,500 - - - - 34,500 impairment charge CDI 1,209 1,379 594 615 636 659 680 amortizationIncome tax (326 ) (372 ) (160 ) (166 ) (172 ) (178 ) (184 )expense on pretax totalCDI 883 1,007 434 449 464 481 496 amortization, net of taxTotal 883 35,507 434 449 464 481 34,996 adjustments to net incomeTangible net $ 14,541 $ 9,441 $ 7,890 $ 6,651 $ 4,936 $ 5,085 $ 5,587 income (Non-GAAP) Average total 2,563,631 2,449,822 2,587,151 2,539,849 2,527,869 2,524,773 2,529,797 assets (GAAP)Less average (31,449 ) (65,760 ) (31,449 ) (31,449 ) (31,449 ) (31,449 ) (65,570 )goodwillLess averagecore deposit (4,018 ) (5,921 ) (3,795 ) (4,246 ) (4,716 ) (5,076 ) (5,671 )intangible,netAveragetangible $ 2,528,163 $ 2,378,141 $ 2,551,908 $ 2,504,154 $ 2,491,704 $ 2,488,248 $ 2,458,556 assets(Non-GAAP) Tangiblereturn onaverage 1.16 % 0.80 % 1.24 % 1.08 % 0.79 % 0.81 % 0.91 %tangibleassets(Non-GAAP) Tangible net $ 14,541 $ 9,441 $ 7,890 $ 6,651 $ 4,936 $ 5,085 $ 5,587 income (Non-GAAP)Total coreadjustmentsto net income - (2,063 ) - - 1,026 - (1,366 )(loss) (exgoodwillimpairment)Core tangible $ 14,541 $ 7,378 $ 7,890 $ 6,651 $ 5,961 $ 5,085 $ 4,222 net income (Non-GAAP) Averagetangible $ 2,528,163 $ 2,378,141 $ 2,551,908 $ 2,504,154 $ 2,491,704 $ 2,488,248 $ 2,458,556 assets(Non-GAAP) Core tangiblereturn onaverage 1.16 % 0.62 % 1.24 % 1.08 % 0.95 % 0.81 % 0.69 %tangibleassets(Non-GAAP) Annualized ratio based on days in quarter divided by days in year GAAP TO NON-GAAP RECONCILIATION - ALLOWANCE FOR LOAN LOSSES AS A % OF PORTFOLIOLOANS(in thousands) FOR THE SIX MONTHS ENDED FOR THE THREE MONTHS ENDED

June 30, June 30, June 30, March 31, December 31, September 30, June 30,

2021 2020 2021 2021 2020 2020 2020

Allowance for $ 18,288 $ 16,356 $ 18,288 $ 18,368 $ 19,162 $ 17,657 $ 16,356 loan losses (GAAP) Total loans 1,942,507 1,898,630 1,942,507 1,947,450 1,865,961 1,884,405 1,898,630 and leases (GAAP) Allowance asa % of total 0.94 % 0.86 % 0.94 % 0.94 % 1.03 % 0.94 % 0.86 %loans andleases (GAAP) Allowance for $ 18,288 $ 16,356 $ 18,288 $ 18,368 $ 19,162 $ 17,657 $ 16,356 loan losses (GAAP) Total loans 1,942,507 1,898,630 1,942,507 1,947,450 1,865,961 1,884,405 1,898,630 and leases (GAAP)Less PPP (142,660 ) (193,719 ) (142,660 ) (201,588 ) (167,639 ) (196,375 ) (193,719 )loans outstandingPortfolio 1,799,847 1,704,911 1,799,847 1,745,862 1,698,322 1,688,030 1,704,911 loans (Non-GAAP) Allowance asa % of 1.02 % 0.96 % 1.02 % 1.05 % 1.13 % 1.05 % 0.96 %portfolio loans(Non-GAAP) HOWARD BANCORP, INC. AND SUBSIDIARYGAAP TO NON-GAAP RECONCILIATION - NONPERFORMING LOANS AS A % OF PORTFOLIO LOANS(in thousands) FOR THE SIX MONTHS ENDED FOR THE THREE MONTHS ENDED

June 30, June 30, June 30, March 31, December 31, September 30, June 30,

2021 2020 2021 2021 2020 2020 2020

Nonperforming $ 16,219 $ 18,469 $ 16,219 $ 15,723 $ 19,430 $ 16,984 $ 18,469 loans Total loans 1,942,507 1,898,630 1,942,507 1,947,450 1,865,961 1,884,405 1,898,630 and leases (GAAP) Nonperformingloans as a % 0.83 % 0.97 % 0.83 % 0.81 % 1.04 % 0.90 % 0.97 %of total loans andleases (GAAP) Nonperforming $ 16,219 $ 18,469 $ 16,219 $ 15,723 $ 19,430 $ 16,984 $ 18,469 loans Total loans 1,942,507 1,898,630 1,942,507 1,947,450 1,865,961 1,884,405 1,898,630 and leases (GAAP)Less PPP (142,660 ) (193,719 ) (142,660 ) (201,588 ) (167,639 ) (196,375 ) (193,719 )loans outstandingPortfolio 1,799,847 1,704,911 1,799,847 1,745,862 1,698,322 1,688,030 1,704,911 loans (Non-GAAP) Nonperformingloans as a % 0.90 % 1.08 % 0.90 % 0.90 % 1.14 % 1.01 % 1.08 %of portfolio loans(Non-GAAP) GAAP TO NON-GAAP RECONCILIATION - NONPERFORMING ASSETS AS A % OF PORTFOLIOLOANS + OREO(in thousands) FOR THE SIX MONTHS ENDED FOR THE THREE MONTHS ENDED

June 30, June 30, June 30, March 31, December 31, September 30, June 30,

2021 2020 2021 2021 2020 2020 2020

Nonperforming $ 16,848 $ 20,606 $ 16,848 $ 16,352 $ 20,173 $ 18,139 $ 20,606 assets Total loans 1,942,507 1,898,630 1,942,507 1,947,450 1,865,961 1,884,405 1,898,630 and leases (GAAP)OREO 629 2,137 629 629 743 1,155 2,137

Total loans 1,943,136 1,900,767 1,943,136 1,948,079 1,866,704 1,885,560 1,900,767 and leases + OREO Nonperformingassets as a %of total 0.87 % 1.08 % 0.87 % 0.84 % 1.08 % 0.96 % 1.08 %loans andleases + OREO(GAAP) Nonperforming $ 16,848 $ 20,606 $ 16,848 $ 16,352 $ 20,173 $ 18,139 $ 20,606 assets Total loans 1,942,507 1,898,630 1,942,507 1,947,450 1,865,961 1,884,405 1,898,630 and leases (GAAP)OREO 629 2,137 629 629 743 1,155 2,137

Total loans 1,943,136 1,900,767 1,943,136 1,948,079 1,866,704 1,885,560 1,900,767 and leases + OREOLess PPP (142,660 ) (193,719 ) (142,660 ) (201,588 ) (167,639 ) (196,375 ) (193,719 )loans outstandingPortfolio $ 1,800,476 $ 1,707,048 $ 1,800,476 $ 1,746,491 $ 1,699,065 $ 1,689,185 $ 1,707,048 loans + OREO Nonperformingassets as a % 0.94 % 1.21 % 0.94 % 0.94 % 1.19 % 1.07 % 1.21 %of portfolio loans + OREO(Non-GAAP) GAAP TO NON-GAAP RECONCILIATION - ALLOWANCE FOR LOAN LOSSES + FV MARKS AS A %OFPORTFOLIO LOANS + FV MARKS(in thousands) FOR THE SIX MONTHS ENDED FOR THE THREE MONTHS ENDED

June 30, June 30, June 30, March 31, December 31, September 30, June 30,

2021 2020 2021 2021 2020 2020 2020

Allowance for $ 18,288 $ 16,356 $ 18,288 $ 18,368 $ 19,162 $ 17,657 $ 16,356 loan losses (GAAP)Add: Fair 4,634 8,105 4,634 5,302 6,454 7,365 8,105 value marks Allowance +fair value $ 22,922 $ 24,461 $ 22,922 $ 23,670 $ 25,616 $ 25,022 $ 24,461 marks(Non-GAAP) Total loans $ 1,942,507 $ 1,898,630 $ 1,942,507 $ 1,947,450 $ 1,865,961 $ 1,884,405 $ 1,898,630 and leases (GAAP)Add: fair 4,634 8,105 4,634 5,302 6,454 7,365 8,105 value marks Total loansand leases + $ 1,947,141 $ 1,906,735 $ 1,947,141 $ 1,952,752 $ 1,872,415 $ 1,891,770 $ 1,906,735 fair value marks(Non-GAAP) Allowance +fair valuemarks as a %of total 1.18 % 1.28 % 1.18 % 1.21 % 1.37 % 1.32 % 1.28 %loans andleases + fairvalue marks(Non-GAAP) Allowance for $ 18,288 $ 16,356 $ 18,288 $ 18,368 $ 19,162 $ 17,657 $ 16,356 loan losses (GAAP)Add: Fair 4,634 8,105 4,634 5,302 6,454 7,365 8,105 value marks Allowance +fair value $ 22,922 $ 24,461 $ 22,922 $ 23,670 $ 25,616 $ 25,022 $ 24,461 marks(Non-GAAP) Total loans $ 1,942,507 $ 1,898,630 $ 1,942,507 $ 1,947,450 $ 1,865,961 $ 1,884,405 $ 1,898,630 and leases (GAAP)Less PPP (142,660 ) (193,719 ) (142,660 ) (201,588 ) (167,639 ) (196,375 ) (193,719 )loans outstandingPortfolio $ 1,799,847 $ 1,704,911 $ 1,799,847 $ 1,745,862 $ 1,698,322 $ 1,688,030 $ 1,704,911 loans (Non-GAAP)Add: fair 4,634 8,105 4,634 5,302 6,454 7,365 8,105 value marks Portfolioloans + fair $ 1,804,481 $ 1,713,016 $ 1,804,481 $ 1,751,164 $ 1,704,776 $ 1,695,395 $ 1,713,016 value marks(Non-GAAP) Allowance +fair valuemarks as a %of portfolio 1.27 % 1.43 % 1.27 % 1.35 % 1.50 % 1.48 % 1.43 %loans andleases + fairvalue marks(Non-GAAP) HOWARD BANCORP, INC. AND SUBSIDIARYGAAP TO NON-GAAP RECONCILIATION - NET INTEREST MARGIN(in thousands) FOR THE SIX MONTHS ENDED FOR THE THREE MONTHS ENDED

June 30, June 30, June 30, March 31, December 31, September 30, June 30,

2021 2020 2021 2021 2020 2020 2020

Netinterest $ 39,770 $ 35,645 $ 20,082 $ 19,688 $ 19,686 $ 18,272 $ 18,120 income(GAAP) Averageearning 2,350,092 2,187,023 2,374,712 2,325,198 2,309,928 2,305,205 2,265,240 assets(GAAP) Netinterest 3.41 % 3.28 % 3.39 % 3.43 % 3.39 % 3.15 % 3.22 %margin(GAAP) Netinterest 39,770 35,645 $ 20,082 $ 19,688 $ 19,686 $ 18,272 $ 18,120 income(GAAP)Less netaccretionof netfair value (1,340 ) (667 ) (616 ) (725 ) (888 ) (548 ) (448 )discountsonacquiredloansLess PPPnetinterestincome (3,663 ) (743 ) (1,621 ) (2,042 ) (1,633 ) (1,038 ) (743 )(impliedcost offunds at0.35%)Operatingnet $ 34,767 $ 34,235 $ 17,845 $ 16,921 $ 17,165 $ 16,686 $ 16,929 interest income(Non-GAAP) Averageearning 2,350,092 2,187,023 2,374,712 2,325,198 2,309,928 2,305,205 2,265,240 assets(GAAP)Add netfair valuediscounts 5,437 8,727 4,918 5,956 6,921 7,696 8,408 onacquiredloansLess PPP (182,112 ) (71,357 ) (177,546 ) (186,728 ) (186,267 ) (195,588 ) (142,715 )loansOperatingaverage $ 2,173,417 $ 2,124,393 $ 2,202,084 $ 2,144,426 $ 2,130,582 $ 2,117,313 $ 2,130,933 earning assets(Non-GAAP) Operatingnet 3.23 % 3.24 % 3.25 % 3.20 % 3.21 % 3.14 % 3.20 %interest margin(Non-GAAP) Annualized ratio based on days in quarter divided by days in year View source version on businesswire.com: https://www.businesswire.com/news/home/20210721005272/en/

CONTACT: Howard Bancorp, Inc. Robert L. Carpenter, Jr., Executive Vice President and Chief Financial Officer 410-750-0020 bcarpenter@HowardBank.com