Business Wire | Oct 20, 2021 04:04PM EDT

Howard Bancorp, Inc. Reports Third Quarter 2021 Results

Oct. 20, 2021

BALTIMORE--(BUSINESS WIRE)--Oct. 20, 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 September 30, 2021.

Third Quarter 2021 Highlights

* Net income: Net income of $6.4 million for the quarter, up 38% from third quarter of 2020 and down 15% from the second quarter of 2021 Core net income1 of $7.1 million for the quarter, up 54% from third quarter of 2020 and down 5% from second quarter of 2021 * Earnings per share: Earnings per share ("EPS"), both basic and diluted, of $0.34 for the quarter, up 37% from third quarter of 2020 and down 15% from second quarter of 2021 Core diluted EPS1 of $0.37 for the quarter, up 52% from third quarter of 2020 and down 5% from second quarter of 2021 * Pre-provision net revenue ("PPNR")1: PPNR,1 at $8.7 million for the quarter, up 14% from third quarter of 2020 and down 14% from second quarter of 2021 Core PPNR,1 at $9.6 million for the quarter, up 25% from third quarter of 2020 and down 5% from second quarter of 2021 Core PPNR, as a percentage of average assets,1 was 1.47% for the quarter, up 26 basis points ("BP") from third quarter of 2020 and down 10 BP from second quarter of 2021 * Loans: Total loans declined by $39.3 million during the quarter, with Paycheck Protection Program ("PPP") loans down $62.7 million Portfolio loan1 growth (which excludes PPP loans) of $23.5 million during the quarter (5.2% annualized growth rate) * Net interest margin: Net interest margin, at 3.32% for the quarter, was up 17 BP from third quarter of 2020 and down 7 BP from second quarter of 2021 Operating net interest margin,1 which excludes the impact of loan fair value accretion and net interest income from PPP lending, was 3.13% for the quarter, down 1 BP from third quarter of 2020 and down 12 BP from second quarter of 2021 * Asset quality: COVID-19 related loan deferrals of $25.6 million at September 30, 2021 (1.3% of total loans and 1.4% of portfolio loans), down from $30.4 million at June 30, 2021 Nonperforming assets to total assets was 0.64% as of September 30, 2021, down 7 BP from third quarter of 2020 and down 1 BP from second quarter of 2021 No provision for credit losses recorded during either the second or third quarters of 2021, compared to $1.7 million in the third quarter of 2020 Net loan loss recoveries were $65 thousand for the quarter, compared to net charge-offs of $78 thousand in the third quarter of 2020 and $79 thousand in the second quarter of 2021 Allowance for loan losses was 0.96% of total loans and 1.01% of portfolio loans 1 as of September 30, 2021; compared to 0.94% and 1.05%, respectively, at September 30, 2020, and 0.94% and 1.02%, respectively, at June 30, 2021 * Noninterest expense management: Noninterest expenses were $13.3 million for the quarter, up 5% from third quarter of 2020 and up 8% from second quarter of 2021 Merger-related expenses of $880 thousand, resulting from the Company's proposed merger with F.N.B. Corporation ("FNB"), which was announced on July 13, 2021, were recorded in the third quarter of 2021 Core noninterest expenses,1 which excludes merger-related expenses, were $12.4 million for the quarter, down 2% from third quarter of 2020 and up 1% from second quarter of 2021 * PPP update: $64.2 million of PPP loans forgiven during the quarter Of the total $301.5 million in principal balances of loans originated under the program, $82.1 million in principal balances were outstanding at September 30, 2021 Unaccreted net deferred fees were $2.2 million at September 30, 2021

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 $6.4 million, or $0.34 per both basic and diluted common share, for the third quarter of 2021. This compares to net income of $4.6 million, or $0.25 per both basic and diluted common share, for the third quarter of 2020 and net income of $7.5 million, or $0.40 per both basic and diluted common share, for the second quarter of 2021.

Third quarter 2021 basic and diluted EPS increased by $0.09 when compared to the third quarter of 2020 and decreased by $0.06 when compared to the second quarter of 2021. The following table presents an EPS rollforward for the third quarter of 2021 compared to both the third quarter of 2020 and the second 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.

Third Quarter 2021 Compared to:

FN Q3 2020 Q2 2021

EPS, Third Quarter 2020 / Second Quarter 2021 $ 0.25 $ 0.40

Decrease in the provision for credit losses 1 0.07 -

Pretax income from SBA Paycheck Protection Program 2 0.02 - ("PPP")Merger-related expense 3 (0.04 ) (0.04 )

All other, net 0.04 (0.02 )

EPS, Third Quarter 2021 $ 0.34 $ 0.34

CHANGE $ 0.09 $ (0.06 )

No provision for credit losses was recorded in the third quarter of 2021, a1 decrease of $1.7 million from the third quarter of 2020, and unchanged from the second 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. Third quarter of 2021 pretax income of $1.6 million2 from this program represented an increase of $567 thousand from the third quarter of 2020 and an increase of $8 thousand from the second quarter of 2021.

The third quarter of 2021 included merger-related expenses resulting from the Company's proposed merger with FNB, which was announced on July 13, 20213 of $880 thousand (pretax). There were no merger-related expenses in the third quarter of 2020 or the second quarter of 2021.

Core net income is a non-GAAP financial measure that excludes, if applicable, merger-related expenses and certain other items, to provide a picture of ongoing activities deemed core to the Company's strategy. Core net income for the third quarter of 2021 was $7.1 million, or $0.37 per diluted common share.

* This compares to core net income, which was unchanged from reported net income, of $4.6 million, or $0.25 per diluted common share, for the third quarter of 2020. The $0.12 per share increase in core diluted EPS in the third quarter of 2021, when compared to the third quarter of 2020, was primarily the result of a lower provision for credit losses, which was down $1.7 million (+$0.07 after tax per share), and an increase in the pretax contribution from PPP lending activities of $567 thousand (+$0.02 after tax per share).

* This also compares to core net income, which was unchanged from reported net income, of $7.5 million, or $0.40 per diluted common share, for the second quarter of 2021. The $0.03 per share decrease in core diluted EPS in the third quarter of 2021, when compared to the second quarter of 2021, was the result of the after tax impact of a $542 thousand decrease in pretax income. Total revenues decreased by $404 thousand (net interest income decreased by $195 thousand, with $214 thousand of this decrease attributable to a decrease in the accretion of fair value adjustments on acquired loans ("FV accretion"), and noninterest income decreased by $209 thousand). In addition, noninterest expenses increased by $138 thousand. *

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, merger-related expenses and certain other items, was $9.6 million for the third quarter of 2021. The third quarter of 2021 core PPNR was up $1.9 million, or 25.4%, from $7.7 million for the third quarter of 2020, and was down $542 thousand, or 5.3%, when compared to $10.1 million for the second quarter of 2021.*

The Company reported net income of $20.0 million, or $1.07 and $1.06 per basic and diluted share, respectively, for the nine months ended September 30, 2021. This compared to a net loss of $21.5 million, or a loss of $1.14 per both basic and diluted share, for the nine months ended September 30, 2020. The net loss for the nine months ended September 30, 2020 included the $34.5 million goodwill impairment charge recorded in the second quarter of 2020. Core net income for the nine months ended September 30, 2021 was $20.7 million, or $1.10 per both basic and diluted share, respectively, compared to $11.0 million, or $0.58 per both basic and diluted share, respectively, for the nine months ended September 30, 2020. Core PPNR for the nine months ended September 30, 2021 was $29.1 million, a $6.5 million, or 29.1% increase from $22.6 million for the nine months ended September 30, 2020.

Paycheck Protection Program Loans

The Company originated 1,653 loans with a total principal balance of $301.5 million under the PPP program prior to its end in May of 2021. As of September 30, 2021, 1,282 loans with a total principal balance of $219.4 million have been forgiven. The Company continues its focus on assisting our customers through the completion of the loan forgiveness process. PPP loans, net of unaccreted net deferred fees, totaled $79.9 million at September 30, 2021, a decrease of $116.5 million from $196.4 million at September 30, 2020 and a decrease of $62.8 million from $142.7 million at June 30, 2021. PPP loan principal balances were $82.1 million at September 30, 2021 while unaccreted net deferred fees were $2.2 million at September 30, 2021.

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. Of these 2021 originations, 191 loans, with an aggregate principal balance of $24.6 million, were forgiven during the third quarter of 2021. Of the 591 loans originated in 2021, 227 have been forgiven totaling $27.0 million through September 30, 2021, representing 38.4% of the number of 2021 PPP loans and 26.9% of 2021 principal balances.

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 168 of those loans, with an aggregate principal balance of $39.6 million, were forgiven during the third quarter of 2021. Of the 1,062 loans originated in 2020, 1,055 have been forgiven totaling $192.4 million through September 30, 2021, representing 99.3% of the number of 2020 PPP loans and 95.7% of 2020 principal balances. As of September 30, 2021, two loans with an aggregate principal balance of $451 thousand were not fully forgiven and are now amortizing loans.

The Company deferred net fees of $9.6 million, consisting of total processing fees of $10.9 million from the SBA for originated PPP loans, less $1.3 million in 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 third quarter of 2021, an increase of $567 thousand, or $0.02 after tax per share, from the third quarter of 2020 and an increase of $8 thousand from the second quarter of 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 third 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 six 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 September 30, 2021, deferrals were $25.6 million, or 1.3% of total loans and 1.4% of portfolio loans, down from $30.4 million as of June 30, 2021. Included in total deferrals at September 30, 2021 are second deferrals (including deferrals where the cumulative inception to date deferral is greater than six months) of $13.1 million. Principal only deferrals represent 99.9% of total deferrals. *

Asset Quality and Allowance for Loan and Lease Losses

Nonperforming assets ("NPAs") totaled $16.3 million at September 30, 2021, a decrease of $583 thousand from June 30, 2021 and a decrease of $1.9 million from September 30, 2020. NPAs consisted of $15.9 million of nonperforming loans ("NPLs") and $334 thousand of other real estate owned ("OREO") at September 30, 2021. NPLs were 0.84% of total loans and 0.87% of portfolio loans at September 30, 2021. NPAs represented 0.64% of total assets, 0.85% of total loans and OREO, and 0.89% of portfolio loans and OREO at September 30, 2021. *

* This compares to NPAs of $18.1 million at September 30, 2020 that consisted of $17.0 million in NPLs and $1.1 million of OREO. NPLs were 0.90% of total loans and 1.01% of portfolio loans at September 30, 2020 while nonperforming assets represented 0.71% of total assets, 0.96% of total loans and OREO, and 1.07% of portfolio loans and OREO at September 30, 2020.

* This compares to NPAs of $16.8 million at June 30, 2021 that consisted of $16.2 million in NPLs and $629 thousand of OREO. NPLs were 0.83% of total loans and 0.90% of portfolio loans at June 30, 2021 while 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.

Net loan loss recoveries were $65 thousand in the third quarter of 2021 and represented -0.01% of average loans (annualized). This compares to net charge-offs of $78 thousand, or 0.02% of average loans (annualized) in the third quarter of 2020 and $79 thousand, or 0.02% of average loans (annualized) in the second quarter of 2021. The allowance for loan and lease losses (the "allowance") was $18.4 million on September 30, 2021. No provision for credit losses was recorded in the third quarter of 2021.

Because the Company is a smaller reporting company under SEC rules, the allowance was determined under the incurred loss model. The $18.4 million allowance represented 0.96% of total loans, 1.01% of portfolio loans, and 115.2% of NPLs at September 30, 2021. *

* This compares to an allowance of $17.7 million at September 30, 2020. The September 30, 2020 allowance represented 0.94% of total loans, 1.05% of portfolio loans, and 104.0% of NPLs. The $696 thousand increase in the allowance at September 30, 2021 was the result of aggregate provisions for credit losses attributable to the allowance of $2.7 million partially offset by aggregate net charge-offs of $2.0 million during the four-quarter period ending September 30, 2021 (with $1.8 million of the net charge-offs recorded in the first quarter of 2021).

* This compares to an allowance of $18.3 million at June 30, 2021. The June 30, 2021 allowance represented 0.94% of total loans, 1.02% of portfolio loans, and 112.8% of NPLs. The $65 thousand increase in the allowance at September 30, 2021 was the result of net loan loss recoveries of $65 thousand during the quarter ended September 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 September 30, 2021, a decrease of 14 BP from September 30, 2020 and unchanged from June 30, 2021. The allowance and unamortized fair value marks as a percentage of portfolio loans plus fair value marks was 1.24% at September 30, 2021, a decrease of 24 BP from September 30, 2020 and a decrease of 3 BP from June 30, 2021. *

The Company's asset quality trends indicate minimal 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 continues to closely monitor portfolio conditions and reevaluate the adequacy of the allowance. While traditional lagging indicators of delinquencies and nonperforming loans remain historically modest, the pandemic continues to adversely impact the economy. As a result, 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 September 30, 2021 was $308.2 million, an increase of $4.9 million from June 30, 2021. The increase was primarily due to third quarter 2021 net income of $6.4 million partially offset by a $1.9 million decrease 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 $16.38 at September 30, 2021, an increase of $0.24 per share since June 30, 2021, with third quarter EPS of $0.34 per share partially offset by the change in AOCI representing a decrease of $0.10 per share.

Tangible stockholders' equity, a non-GAAP financial measure that deducts goodwill and other intangible assets, net of any applicable deferred tax liabilities, was $273.7 million at September 30, 2021. This compares to $268.3 million at June 30, 2021, with the $5.3 million increase primarily due to third quarter net income of $6.4 million and $425 thousand of core deposit intangible amortization, partially offset by the $1.9 million decrease in AOCI. Tangible book value per common share, a non-GAAP measure that divides tangible stockholders' equity by the number of shares outstanding, was $14.55 per share at September 30, 2021, an increase of $0.27 per share since June 30, 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 14.99% while both the Common Equity Tier 1 ("CET 1") and Tier 1 capital ratios were 12.63% at September 30, 2021. The Tier 1 to average assets ("leverage") ratio was 10.03%. A comparison of the Company's September 30, 2021 regulatory capital ratios to September 30, 2020 and June 30, 2021 is as follows:

* Regulatory capital ratios at September 30, 2020 consisted of a total capital ratio of 14.11% while both the CET 1 and Tier 1 capital ratios were 11.65%. The leverage ratio was 9.07%. All September 30, 2021 regulatory capital ratios were above the September 30, 2020 levels.

* Regulatory capital ratios at June 30, 2021 consisted of a total capital ratio of 14.62% while both the CET 1 and Tier 1 capital ratios were 12.26%. The leverage ratio was 9.74%. All September 30, 2021 regulatory capital ratios were above the June 30, 2021 levels.

Net Interest Income and Net Interest Margin

Net interest income was $19.9 million for the third quarter of 2021, a decrease of $195 thousand, or 1.0%, from $20.1 million for the second quarter of 2021, and an increase of $1.6 million, or 8.8%, from $18.3 million in the third quarter of 2020. PPP net interest income increased by $8 thousand from the second quarter of 2021 and increased by $567 thousand from the third quarter of 2020. Non-PPP related changes in net interest income were attributable to the impact of portfolio loan growth, lower funding costs, and lower yields on earning assets.

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

Third Quarter 2021

Change from:

Third Third Second Third Second

Quarter Quarter Quarter Quarter Quarter

2021 2020 2021 2020 2021

Selected yields and rates:Net interest margin 3.32 % 3.15 % 3.39 % 0.17 % -0.07 %

Operating net interest margin 3.13 % 3.14 % 3.25 % -0.01 % -0.12 %*Earning asset yield 3.53 % 3.62 % 3.61 % -0.09 % -0.08 %

Total loan yield 4.03 % 4.04 % 4.07 % -0.01 % -0.04 %

Cost of total IBL + demand 0.22 % 0.48 % 0.23 % -0.26 % -0.01 %depositsImpact of fair valueadjustments on acquired loans:Net interest margin 0.07 % 0.11 % 0.12 % -0.04 % -0.05 %

Earning asset yield 0.08 % 0.12 % 0.12 % -0.04 % -0.04 %

Total loan yield 0.09 % 0.13 % 0.13 % -0.04 % -0.04 %

Impact of PPP loans:Net interest margin 0.12 % -0.10 % 0.02 % 0.22 % 0.10 %

Earning asset yield 0.12 % -0.10 % 0.03 % 0.22 % 0.09 %

Total loan yield 0.12 % -0.18 % -0.01 % 0.30 % 0.13 %

The third quarter 2021 net interest margin of 3.32% was up 17 BP from the third quarter of 2020 and down 7 BP from the second quarter of 2021. The impact of 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 third quarter 2021 operating net interest margin of 3.13% was down 1 BP from the third quarter of 2020. While the cost of funds (defined as average total interest-bearing liabilities ("IBL") + demand deposits) decreased by 26 BP, the yield on earning assets, as adjusted for FV accretion and interest income from PPP lending, decreased by 27 BP, with these decreases due to the impact of lower market interest rates. The third quarter 2021 operating net interest margin of 3.13% was down 12 BP from 3.25% in the second quarter of 2021. The yield on earning assets, as adjusted for FV accretion and interest income from PPP lending, decreased by 12 BP while the cost of funds decreased by 1 BP from the second quarter of 2021.

Noninterest Income

Noninterest income was $2.1 million for the third quarter of 2021, an increase of $55 thousand from the $2.1 million reported in the third quarter of 2020, and a decrease of $209 thousand from the $2.4 million reported in the second quarter of 2021.

* The $55 thousand increase when compared to the third quarter of 2020 primarily consisted of the following: an increase in service charges on deposit accounts (+$213 thousand) and an increase in interchange fees, as card activity volumes have improved since 2020, included in other income (+$114 thousand), partially offset by a decrease in loan related fees and service charges (-$140 thousand) and a decrease in the components of other income excluding interchange fees (-$112 thousand). The $209 thousand decrease when compared to the second quarter of 2021 was primarily due to a decrease in other income (-$228 thousand), which included interchange fees (-$54 thousand), and a decrease in loan related fees and service charges (-$46 thousand), partially offset by an increase in service charges on deposit accounts (+$65 thousand).

Noninterest Expenses

Noninterest expenses totaled $13.3 million for the third quarter of 2021, an increase of $606 thousand from the $12.7 million reported in the third quarter of 2020, and an increase of $1.0 million from the $12.3 million reported in the second quarter of 2021. Merger-related expenses of $880 thousand were included in noninterest expenses in the third quarter of 2021.

Core noninterest expenses is a non-GAAP financial measure that, with respect to the third quarter of 2021, excludes merger-related noninterest expenses. There were no related adjustments to reported noninterest expense in the third quarter of 2020 and the second quarter of 2021.

Core noninterest expenses were $12.4 million for the third quarter of 2021, a $274 thousand decrease from $12.7 million in the third quarter of 2020, and a $138 thousand increase from $12.3 million in the second quarter of 2021.*

* The $274 thousand decrease when compared to the third quarter of 2020 resulted primarily from lower compensation and benefits expenses (-$388 thousand), lower professional fees (-$218 thousand), and lower FDIC assessment expense (-$206 thousand); these items were partially offset by higher other operating expense (+$474 thousand) and higher marketing and business development expenses (+$244 thousand). All other noninterest expense categories in the aggregate were lower in the third quarter of 2021 (-$180 thousand).

* The $138 thousand increase when compared to the second quarter of 2021 resulted primarily from higher other operating expense (+$700 thousand), partially offset by lower compensation and benefits expenses (-$395 thousand) and lower professional fees (-$204 thousand). All other noninterest expense categories in the aggregate were higher in the third quarter of 2021 (+$37 thousand).

Loans

Loans totaled $1.90 billion at September 30, 2021, a decrease of $39.3 million, or 2.0%, from total loans at June 30, 2021. Compared to September 30, 2020, total loans grew by $18.9 million, or 1.0%.

Portfolio loans, a non-GAAP measure defined as total loans and leases, but excluding PPP loans, totaled $1.82 billion at September 30, 2021, an increase of $23.5 million, or 1.3%, from portfolio loans at June 30, 2021. Compared to September 30, 2020, portfolio loans increased by $135.3 million, or 8.0%. The changes in portfolio loans were as follows: *

* Compared to June 30, 2021, the $23.5 million increase (5.2% annualized growth rate) in portfolio loans was a result of the following: The commercial lending portfolio, totaling $1.25 billion at September 30, 2021, decreased by $683 thousand from June 30, 2021. Increases in construction and land loans (+$6.5 million), were more than offset by decreases in commercial and industrial ("C&I") loans (-$5.5 million) and commercial real estate ("CRE") loans (-$1.7 million). New loan originations of $38.4 million during the third quarter of 2021 were offset by $39.1 million in loan maturities, payoffs, partial paydowns, and lower line utilization. Residential real estate loans were up $22.1 million, or 4.8%. Secondary market loan purchases were $44.5 million during the third quarter of 2021, partially offset by $22.4 million of prepayments. Consumer loans were up $2.1 million, or 2.4%. * Compared to September 30, 2020, the $135.3 million increase in portfolio loans was a result of the following: The commercial lending portfolio increased by $69.7 million, or 5.9%, with CRE loans up $50.8 million, or 7.0%, construction and land loans up $20.6 million, or 19.7%, while C&I loans were down $1.6 million, or 0.5%. Consumer loans were up $33.7 million, or 62.8%, reflecting strong growth in some niche lending activities such as marine lending. Residential real estate loans were up $31.8 million, or 7.0%.

Average total loans were $1.92 billion for the third quarter of 2021, a decrease of $17.2 million, or 0.9%, over average loans for the second quarter of 2021, and an increase of $40.1 million, or 2.1%, over average loans for the third quarter of 2020. Average portfolio loans were $1.81 billion for the third quarter of 2021, an increase of $44.6 million, or 2.5%, from average loans for the second quarter of 2021. Compared to the third quarter of 2020, average portfolio loans increased by $120.0 million, or 7.1%.

Deposits

Total deposits were $1.94 billion at September 30, 2021, a decrease of $84.1 million, or 4.2%, from the June 30, 2021 balance of $2.03 billion. Compared to September 30, 2020, total deposits decreased by $31.3 million, or 1.6%. Changes in deposits were as follows:

* Customer deposits, which exclude brokered and other non-customer deposits, were $1.78 billion at September 30, 2021, compared to $1.79 billion at June 30, 2021, a decrease of $10.8 million, or 0.6%. Low-cost, non-maturity deposits decreased by $2.8 million, or 0.2%, during the third quarter of 2021. Within non-maturity deposits, transaction accounts increased by $2.0 million, or 0.2%, with noninterest-bearing transaction accounts up $4.9 million, or 0.6%, while interest-bearing transaction accounts decreased by $2.9 million, or 1.4%. The increase in non-maturity deposits was partially offset by the continued managed decline in customer CD balances, down $8.0 million, or 4.3%. 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 September 30, 2020, customer deposits increased by $144.2 million, or 8.8%. The increase in customer deposits was primarily the result of strong growth in non-maturity deposits, which increased by $221.0 million, or 16.0%. Within non-maturity deposits, transaction accounts increased by $146.9 million, or 17.4%, with noninterest-bearing transaction accounts up $126.3 million, or 19.2%. Customer CD balances declined by $76.8 million, or 30.0%. * Brokered and other non-customer deposits were $158.4 million at September 30, 2021, compared to $231.8 million at June 30, 2021 and $207.1 million at September 30, 2020.

Average customer deposits for the third quarter of 2021 were $1.81 billion, an increase of $9.3 million, or 0.5%, from the second quarter 2021 average balance. Customer non-maturity deposit balances increased by $19.5 million, or 1.2%, with transaction accounts up $5.7 million; within transaction accounts, noninterest-bearing deposits were up $21.5 million. Compared to the third quarter of 2020, average customer deposits were up by $173.1 million, or 10.6%. Customer non-maturity deposit balances increased by $256.4 million, or 18.7%, with transaction accounts up $167.0 million; $145.8 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, 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 third 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. ANDSUBSIDIARYSelectedUnauditedFinancial Data(in thousandsexcept per sharedata) FOR THE NINE MONTHS ENDED FOR THE THREE MONTHS ENDED

September 30, September 30, September 30, June 30, September 30,

2021 2020 2021 2021 2020

Income StatementData:Interest income $ 63,758 $ 64,651 $ 21,141 $ 21,382 $ 20,951

Interest expense 4,101 10,734 1,254 1,300 2,679

Net interest 59,657 53,917 19,887 20,082 18,272 incomeProvision for 1,000 8,145 - - 1,700 credit lossesNet interestincome after 58,657 45,772 19,887 20,082 16,572 provision forcredit lossesNoninterest 6,566 10,214 2,144 2,353 2,089 incomeNoninterest 37,954 74,896 13,315 12,297 12,709 expenseIncome (loss) 27,269 (18,910 ) 8,716 10,138 5,952 before incometaxesIncome tax 7,251 2,552 2,356 2,682 1,348 expense(benefit)Net income $ 20,018 $ (21,462 ) $ 6,360 $ 7,456 $ 4,604 (loss) Per Share Dataand SharesOutstanding:Net income(loss) per $ 1.07 $ (1.14 ) $ 0.34 $ 0.40 $ 0.25 common share -basicNet income(loss) per $ 1.06 $ (1.14 ) $ 0.34 $ 0.40 $ 0.25 common share -dilutedBook value per $ 16.38 $ 15.45 $ 16.38 $ 16.14 $ 15.45 common share, atperiod endTangible bookvalue per common $ 14.55 $ 13.51 $ 14.55 $ 14.28 $ 13.51 share, at periodend (1)Average common 18,788 18,773 18,807 18,787 18,737 sharesoutstandingDiluted average 18,872 18,773 18,896 18,871 18,737 common sharesoutstandingShares 18,812 18,742 18,812 18,795 18,742 outstanding, atperiod end Balance SheetData:Total assets $ 2,527,258 $ 2,559,184 $ 2,527,258 $ 2,599,541 $ 2,559,184

Portfolio loans, 1,823,337 1,688,030 1,823,337 1,799,847 1,688,030 net of unearnedincome (1)PaycheckProtection 79,918 196,375 79,918 142,660 196,375 Program loans,net of unearnedincomeTotal loans and 1,903,255 1,884,405 1,903,255 1,942,507 1,884,405 leases, net ofunearned income Allowance for 18,353 17,657 18,353 18,288 17,657 loan lossesOther 411,732 454,897 411,732 442,583 454,897 interest-earningassetsTotal deposits 1,941,418 1,972,738 1,941,418 2,025,557 1,972,738

Total borrowings 254,224 269,861 254,224 247,126 269,861

Common and total 308,177 289,500 308,177 303,263 289,500 stockholders'equity Average total 2,571,694 2,474,988 2,587,555 2,587,151 2,524,773 assetsAverage commonand total 302,234 307,493 309,058 300,234 288,727 stockholders'equity SelectedPerformanceMetrics:Return on 1.04 % (1.16 ) 0.98 % 1.16 % 0.73 %average assets %(2)Return on 8.86 % (9.32 ) 8.16 % 9.96 % 6.34 %average common %equity (2)Pre-provision $ 28,269 $ (10,765 ) $ 8,716 $ 10,138 $ 7,652 net revenue("PPNR") (1)PPNR to average 1.52 % 1.22 % 1.47 % 1.57 % 1.50 %assets (1)Net interest 3.38 % 3.23 % 3.32 % 3.39 % 3.15 %margin (2),(3)Efficiency ratio 57.31 % 116.79 % 60.44 % 54.81 % 62.42 %(4)Core efficiency 55.98 % 62.07 % 56.44 % 54.81 % 62.42 %ratio (1) Asset QualityRatios:Nonperformingloans to 0.87 % 1.01 % 0.87 % 0.90 % 1.01 %portfolio loans(1)Nonperformingassets to 0.89 % 1.07 % 0.89 % 0.94 % 1.07 %portfolio loansand OREO (1)Nonperforming 0.64 % 0.71 % 0.64 % 0.65 % 0.71 %assets to totalassetsAllowance for 0.96 % 0.94 % 0.96 % 0.94 % 0.94 %loan losses tototal loansAllowance forloan losses to 1.01 % 1.05 % 1.01 % 1.02 % 1.05 %portfolio loans(1)Allowance forloan losses to 115.20 % 103.96 % 115.20 % 112.76 % 103.96 %nonperformingloansNet chargeoffs )to average total 0.13 % 0.04 % (0.01 % 0.02 % 0.02 %loans and leases(2) Capital Ratios(Bancorp):Tier 1 capitalto average 10.03 % 9.07 % 10.03 % 9.74 % 9.07 %assets (leverageratio)Common equitytier 1 capital 12.63 % 11.65 % 12.63 % 12.26 % 11.65 %to risk-weightedassetsTier 1 capital 12.63 % 11.65 % 12.63 % 12.26 % 11.65 %to risk-weightedassetsTotal capital to 14.99 % 14.11 % 14.99 % 14.62 % 14.11 %risk-weightedassetsAverage equity 11.75 % 12.42 % 11.94 % 11.60 % 11.44 %to averageassets (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 incomeHOWARDBANCORP, INC.AND SUBSIDIARYUnauditedConsolidatedStatements ofIncome (Loss)(in thousandsexcept pershare data) FOR THE NINE MONTHS FOR THE THREE MONTHS ENDED ENDED

September September September June 30, September 30, 30, 30, 30,

2021 2020 2021 2021 2020

Interest $ 63,758 $ 64,651 $ 21,141 $ 21,382 $ 20,951 incomeInterest 4,101 10,734 1,254 1,300 2,679 expenseNet interest 59,657 53,917 19,887 20,082 18,272 incomeProvision for 1,000 8,145 - - 1,700 credit lossesNet interestincome after 58,657 45,772 19,887 20,082 16,572 provision forcredit lossesNoninterestincome:Servicecharges on 1,912 1,581 719 654 506 depositaccountsRealized andunrealized - 1,036 - - - gains frommortgagebankingGain (loss) on - 3,044 - - - sale ofsecuritiesIncome from 1,266 1,327 421 421 441 bank ownedlife insuranceLoan relatedfees and 793 1,120 225 271 365 servicechargesOther income 2,595 2,106 779 1,007 777

Total 6,566 10,214 2,144 2,353 2,089 noninterestincomeNoninterestexpense:Compensation 20,813 21,836 6,748 7,143 7,136 and benefitsOccupancy and 3,872 3,576 1,229 1,318 1,301 equipmentMarketing and 1,071 1,092 433 341 189 businessdevelopmentProfessional 2,148 2,183 605 809 823 feesData 2,799 2,673 933 982 897 processingfeesFDIC 618 780 152 171 358 assessmentOther real 127 461 87 - 115 estate ownedLoan 554 907 219 181 247 productionexpenseAmortizationof core 1,780 2,038 571 594 659 depositintangibleGoodwill - 34,500 - - - impairmentchargeMerger-related 880 - 880 - - expenseOther 3,292 4,850 1,458 758 984 operatingexpenseTotal 37,954 74,896 13,315 12,297 12,709 noninterestexpenseIncome (loss) 27,269 (18,910 ) 8,716 10,138 5,952 before incometaxesIncome tax 7,251 2,552 2,356 2,682 1,348 expenseNet income $ 20,018 $ (21,462 ) $ 6,360 $ 7,456 $ 4,604 (loss) Net income(loss) percommon share:Basic $ 1.07 $ (1.14 ) $ 0.34 $ 0.40 $ 0.25

Diluted $ 1.06 $ (1.14 ) $ 0.34 $ 0.40 $ 0.25

Average commonsharesoutstanding:Basic 18,788 18,773 18,807 18,787 18,737

Diluted 18,872 18,773 18,896 18,871 18,737

SelectedPerformanceMetrics:Return on 1.04 % (1.16 ) 0.98 % 1.16 % 0.73 %average assets %

Return on 8.86 % (9.32 ) 8.16 % 9.96 % 6.34 %average common %equityCorePre-provision $ 29,149 $ 22,572 $ 9,596 $ 10,138 $ 7,652 net revenue("PPNR") (1)Core PPNR to 1.52 % 1.22 % 1.47 % 1.57 % 1.50 %average assets(1)Net interest 3.38 % 3.23 % 3.32 % 3.39 % 3.15 %marginEfficiency 57.31 % 116.79 % 60.44 % 54.81 % 62.42 %ratioCore 55.98 % 62.07 % 56.44 % 54.81 % 62.42 %efficiencyratio (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 SUBSIDIARYUnauditedConsolidatedBalance Sheets(in thousandsexcept per sharedata) PERIOD ENDED

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

2021 2021 2021 2020 2020

ASSETSCash and due from $ 12,592 $ 12,681 $ 10,750 $ 9,415 $ 11,043 banksInterest bearing 51,065 59,754 68,822 65,204 59,539 deposits with banksTotal cash and cash 63,657 72,435 79,572 74,619 70,582 equivalentsSecurities 347,448 367,873 377,040 375,397 377,471 available for sale,at fair valueSecurities held to 4,000 6,000 6,250 7,250 7,250 maturity, atamortized costFederal Home Loan 9,219 8,956 9,706 10,637 10,637 Bank of Atlantastock, at costPortfolio loans, 1,823,337 1,799,847 1,745,862 1,698,322 1,688,030 net of unearnedincome (1)Paycheck Protection 79,918 142,660 201,588 167,639 196,375 Program loans, netof unearned incTotal loans and 1,903,255 1,942,507 1,947,450 1,865,961 1,884,405 leases, net ofunearned incomeAllowance for loan (18,353 ) (18,288 ) (18,368 ) (19,162 ) (17,657 )lossesNet loans and 1,884,902 1,924,219 1,929,082 1,846,799 1,866,748 leasesBank premises and 39,910 40,290 40,700 41,142 42,147 equipment, netGoodwill 31,449 31,449 31,449 31,449 31,449

Core deposit 4,015 4,586 5,180 5,795 6,431 intangibleBank owned life 78,863 78,443 78,021 77,597 77,157 insuranceOther real estate 334 629 629 743 1,155 ownedDeferred tax 29,201 28,324 32,175 31,254 34,687 assets, netInterest receivable 34,260 36,337 35,746 35,309 33,470 and other assetsTotal assets $ 2,527,258 $ 2,599,541 $ 2,625,550 $ 2,537,991 $ 2,559,184

LIABILITIESNoninterest-bearing $ 783,326 $ 778,388 $ 726,643 $ 676,801 $ 657,028 depositsInterest-bearing 1,158,092 1,247,169 1,318,283 1,298,613 1,315,710 depositsTotal deposits 1,941,418 2,025,557 2,044,926 1,975,414 1,972,738

FHLB advances 212,000 205,000 225,000 200,000 200,000

Fed funds and repos 13,485 13,436 10,353 13,634 41,473

Subordinated debt 28,739 28,690 28,485 28,437 28,388

Total borrowings 254,224 247,126 263,838 242,071 269,861

Accrued expenses 23,439 23,595 24,111 25,874 27,085 and otherliabilitiesTotal liabilities 2,219,081 2,296,278 2,332,875 2,243,359 2,269,684

STOCKHOLDERS'EQUITYCommon stock - 188 188 188 187 187 $0.01 par valueAdditional paid in 271,512 271,086 270,934 270,591 270,445 capitalRetained earnings 38,185 31,825 24,369 18,167 13,696

Accumulated other (1,708 ) 164 (2,816 ) 5,687 5,172 comprehensiveincome (loss)Total stockholders' 308,177 303,263 292,675 294,632 289,500 equityTotal liabilities $ 2,527,258 $ 2,599,541 $ 2,625,550 $ 2,537,991 $ 2,559,184 and stockholders'equity Capital Ratios(Bancorp)Tier 1 capital to 10.03 % 9.74 % 9.53 % 9.26 % 9.07 %average assets(leverage ratio)Common equity tier1 capital to 12.63 % 12.26 % 12.06 % 11.83 % 11.65 %risk-weightedassetsTier 1 capital to 12.63 % 12.26 % 12.06 % 11.83 % 11.65 %risk-weightedassetsTotal capital to 14.99 % 14.62 % 14.47 % 14.32 % 14.11 %risk-weightedassets Asset QualityMeasuresNonperforming loans $ 15,931 $ 16,219 $ 15,723 $ 19,430 $ 16,984

Other real estate 334 629 629 743 1,155 owned (OREO)Total nonperforming $ 16,265 $ 16,848 $ 16,352 $ 20,173 $ 18,139 assets Nonperforming loans 0.87 % 0.90 % 0.90 % 1.14 % 1.01 %to portfolio loans(1)Nonperforming 0.89 % 0.94 % 0.94 % 1.19 % 1.07 %assets to portfolioloans and OREO (1)Nonperforming 0.64 % 0.65 % 0.62 % 0.79 % 0.71 %assets to totalassetsAllowance for loan 0.96 % 0.94 % 0.94 % 1.03 % 0.94 %losses to totalloansAllowance for loan 1.01 % 1.02 % 1.05 % 1.13 % 1.05 %losses to portfolioloans (1)Allowance for loan 115.20 % 112.76 % 116.82 % 98.62 % 103.96 %losses tononperforming loansNet chargeoffs to )average portfolio (0.01 % 0.02 % 0.43 % 0.05 % 0.02 %loans and leases(1), (2)Provision forcredit losses to - % - % 0.24 % 0.40 % 0.40 %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 September 30, Three Months Ended June 30, 2021 Three Months Ended September 30, 2021 2020

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

Earning assetsLoans and leases:Commercial loans $ 349,679 $ 3,182 3.61 % $ 358,980 $ 3,271 3.65 % $ 343,991 $ 3,247 3.76 %and leasesCommercial real 769,850 8,621 4.44 755,815 8,528 4.53 702,633 8,502 4.81 estateConstruction and 122,024 1,137 3.70 118,704 1,116 3.77 125,059 1,188 3.78 landResidential real 476,215 4,049 3.37 446,784 4,249 3.81 463,874 4,382 3.76 estateConsumer 87,501 806 3.65 80,418 748 3.73 49,722 565 4.52

Total portfolio 1,805,269 17,795 3.91 1,760,701 17,912 4.08 1,685,279 17,884 4.22 loansPaycheck Protection 115,743 1,737 5.95 177,546 1,776 4.01 195,588 1,240 2.52 Program loansTotal loans and 1,921,012 19,532 4.03 1,938,247 19,688 4.07 1,880,867 19,124 4.04 leasesSecuritiesavailable for sale:U.S Gov agencies 42,111 252 2.37 45,256 274 2.43 79,391 531 2.66

Mortgage-backed 310,900 1,038 1.32 320,960 1,088 1.36 272,495 942 1.38

Corporate 9,264 140 6.00 9,294 139 6.00 5,932 100 6.71 debenturesTotal available for 362,275 1,430 1.57 375,510 1,501 1.60 357,818 1,573 1.75 sale securitiesSecurities held to 4,696 69 5.83 6,206 88 5.69 7,250 106 5.82 maturityFHLB Atlanta stock, 8,774 83 3.75 9,008 99 4.39 13,221 140 4.21 at costInterest bearing 79,756 27 0.13 45,741 6 0.06 46,049 8 0.07 deposits in banksLoans held for sale - - - - - - - - -

Total earning 2,376,513 21,141 3.53 % 2,374,712 21,382 3.61 % 2,305,205 20,951 3.62 %assetsCash and due from 12,000 10,781 11,772 banksBank premises and 40,176 40,593 42,376 equipment, netGoodwill 31,449 31,449 31,449

Core deposit 4,369 4,956 6,840 intangibleOther assets 141,346 143,052 143,566

Less: allowance for (18,298 ) (18,392 ) (16,435 )loan lossesTotal assets $ 2,587,555 $ 2,587,151 $ 2,524,773

Interest-bearingliabilitiesDeposits:Interest-bearing $ 211,387 $ 17 0.03 % $ 227,272 $ 19 0.03 % $ 190,272 $ 36 0.08 %demand accountsMoney market 441,738 72 0.06 428,169 66 0.06 386,189 261 0.27

Savings 181,231 14 0.03 180,992 15 0.03 149,973 27 0.07

Time deposits 385,336 260 0.27 409,404 310 0.30 493,827 1,390 1.12

Total 1,219,692 363 0.12 1,245,837 410 0.13 1,220,261 1,714 0.56 interest-bearingdepositsBorrowings:FHLB advances 200,130 444 0.88 206,231 443 0.86 260,807 483 0.74

Fed funds and repos 13,304 1 0.03 10,751 1 0.04 40,492 35 0.34

Subordinated debt 28,709 446 6.16 28,608 446 6.25 28,356 447 6.27

Total borrowings 242,143 891 1.46 245,590 890 1.45 329,655 965 1.16

Total 1,461,835 1,254 0.34 % 1,491,427 1,300 0.35 % 1,549,916 2,679 0.69 %interest-bearingfundsNoninterest-bearing 795,364 773,825 649,525 depositsOther liabilities 21,298 21,665 36,605

Total liabilities 2,278,497 2,286,917 2,236,046

Stockholders' 309,058 300,234 288,727 equityTotal liabilities & $ 2,587,555 $ 2,587,151 $ 2,524,773 equityNet interest rate $ 19,887 3.19 % $ 20,082 3.26 % $ 18,272 2.93 %spread (1)Effect of 0.13 0.13 0.22 noninterest-bearingfundsNet interest margin 3.32 % 3.39 % 3.15 %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 HOWARD BANCORP, INC. AND SUBSIDIARYAverage Balances, Yields, and Rates(in thousands) Nine Months Ended September 30, Nine Months Ended September 30, 2021 2020 Average Income / Yield Average Income / / Yield Balance Expense Balance Expense / Rate Rate

Earning assetsLoans and leases:Commercial loans $ 351,184 $ 9,538 3.63 % $ 365,596 $ 11,281 4.12 %and leasesCommercial real 754,105 25,704 4.56 696,083 25,091 4.81 estateConstruction and 119,344 3,363 3.77 129,798 3,938 4.05 landResidential real 455,529 12,370 3.63 487,586 14,575 3.99 estateConsumer 77,767 2,211 3.80 47,011 1,621 4.61

Total portfolio 1,757,929 53,186 4.05 1,726,074 56,506 4.37 loansPaycheck Protection 159,746 5,716 4.78 113,070 2,136 2.52 Program loansTotal loans and 1,917,675 58,902 4.11 1,839,144 58,642 4.26 leasesSecuritiesavailable for sale:U.S Gov agencies 45,184 814 2.41 76,822 1,555 2.70

Mortgage-backed 316,945 3,055 1.29 204,686 2,865 1.87

Corporate 9,237 420 6.08 5,655 284 6.71 debenturesTotal available for 371,366 4,289 1.54 287,163 4,704 2.19 sale securitiesSecurities held to 5,723 246 5.75 7,580 331 5.83 maturityFHLB Atlanta stock, 9,483 282 3.98 13,979 533 5.09 at costInterest bearning 54,750 39 0.10 72,267 262 0.48 deposits in banksLoans held for sale - - - 6,572 179 3.64

Total earning 2,358,997 63,758 3.61 % 2,226,705 64,651 3.88 %assetsCash and due from 11,128 13,806 banksBank premises and 40,584 42,498 equipment, netGoodwill 31,449 54,240

Core deposit 4,958 7,525 intangibleOther assets 143,171 143,749

Less: allowance for (18,593 ) (13,535 )loan lossesTotal assets $ 2,571,694 $ 2,474,988

Interest-bearingliabilitiesDeposits:Interest-bearing $ 218,880 $ 57 0.03 % $ 186,799 $ 250 0.18 %demand accountsMoney market 437,608 222 0.07 373,588 1,308 0.47

Savings 177,946 41 0.03 141,516 97 0.09

Time deposits 410,900 1,113 0.36 524,955 5,652 1.44

Total 1,245,334 1,433 0.15 1,226,858 7,307 0.80 interest-bearingdepositsBorrowings:FHLB advances 204,658 1,328 0.87 279,140 2,015 0.96

Fed funds and other 12,347 3 0.03 21,372 52 0.33 borrowingsSubordinated debt 28,591 1,337 6.25 28,307 1,360 6.42

Total borrowings 245,596 2,668 1.45 328,819 3,427 1.39

Total 1,490,930 4,101 0.37 % 1,555,677 10,734 0.92 %interest-bearingfundsNoninterest-bearing 756,423 582,348 depositsOther liabilities 22,107 29,470

Total liabilities 2,269,460 2,167,495

Stockholders' 302,234 307,493 equityTotal liabilities & $ 2,571,694 $ 2,474,988 equityNet interest rate $ 59,657 3.24 % $ 53,917 2.96 %spread (1)Effect of 0.14 0.27 noninterest-bearingfundsNet interest margin 3.38 % 3.23 %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 averagetotal 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 believes 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 NINE MONTHS FOR THE THREE MONTHS ENDED ENDED

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

2021 2020 2021 2021 2021 2020 2020

Net income $ 20,018 $ (21,462 ) $ 6,360 $ 7,456 $ 6,202 $ 4,471 $ 4,604(loss) (GAAP)Adjustments:Mortgagebankingactivities:Net interest - (143 ) - - - - -incomeNoninterest - (1,425 ) - - - - -incomeNoninterest - 1,438 - - - - -expensesTotal pretax -mortgage - (130 ) - - - - -bankingactivitiesCertain other items:Securities - (3,044 ) - - - - -gainsPrepayment - 224 - - - - -penalty - FHLBadvancesBranch - - - - - 554 -optimizationchargeLitigation - 1,000 - - - 980 -expenseCFO departure - 788 - - - - -

Merger-related 880 - 880 - - - -expensesGoodwill - 34,500 - - - - -impairmentchargeTotal pretax - 880 33,468 880 - - 1,534 -certain otheritemsTotal core 880 33,338 880 - - 1,534 -pretax incomeadjustmentsIncome taxexpense 170 (276 ) 170 - - 414 -(benefit) ofadjustmentsTotal corepretax income 710 33,614 710 - - 1,120 -adjustments,net of taxLess: One-timebenefit of NOL - (1,177 ) - - - (94 ) -carryback(CARES Act)Total core 710 32,437 710 - - 1,026 -adjustments tonet incomeCore net $ 20,728 $ 10,975 $ 7,070 $ 7,456 $ 6,202 $ 5,497 $ 4,604income(Non-GAAP) Diluted 18,872 18,773 18,896 18,871 18,797 18,748 18,737average commonshares Diluted EPS $ 1.06 $ (1.14 ) $ 0.34 $ 0.40 $ 0.33 $ 0.24 $ 0.25(GAAP)Total core $ 0.04 1.73 0.04 - - 0.05 -adjustments tonet incomeCore diluted $ 1.10 $ 0.58 $ 0.37 $ 0.40 $ 0.33 $ 0.29 $ 0.25EPS (Non-GAAP) GAAP TO NON-GAAP RECONCILIATION - PRE-PROVISION NET REVENUE ("PPNR")(in thousands)FOR THE NINE MONTHS ENDED

FOR THE THREE MONTHS ENDED

September 30,

September 30,

September 30,

June 30,

March 31,

December 31,

September 30,

2021

2020

2021

2021

2021

2020

2020

Net income (loss) (GAAP)$

20,018

$

(21,462

)

$

6,360

$

7,456

$

6,202

$

4,471

$

4,604

Plus: provision for credit losses1,000

8,145

-

-

1,000

1,700

1,700

Plus: income tax expense7,251

2,551

2,356

2,682

2,213

1,093

1,348

Pre-provision net revenue (Non-GAAP)$

28,269

$

(10,766

)

$

8,716

$

10,138

$

9,415

$

7,264

$

7,652

Adjustments to net revenue:Mortgage banking activities-

(130

)

-

-

-

-

-

Securities gains-

(3,044

)

-

-

-

-

-

Prepayment penalty - FHLB advances-

224

-

-

-

-

-

Branch optimization charge-

-

-

-

-

554

-

Litigation accrual-

1,000

-

-

-

980

-

CFO departure-

788

-

-

-

-

-

Merger-related expense880

-

880

-

-

-

-

Goodwill impairment charge-

34,500

-

-

-

-

-

Total core pretax net revenue adjustments880

33,338

880

-

-

1,534

-

Core pre-provision net revenue (PPNR)$

29,149

$

22,572

$

9,596

$

10,138

$

9,415

$

8,798

$

7,652

GAAP TO NON-GAAP RECONCILIATION - PRE-PROVISION NET REVENUE ("PPNR")(in thousands) FOR THE NINE MONTHS FOR THE THREE MONTHS ENDED ENDED

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

2021 2020 2021 2021 2021 2020 2020

Net income $ 20,018 $ (21,462 ) $ 6,360 $ 7,456 $ 6,202 $ 4,471 $ 4,604(loss) (GAAP)Plus: 1,000 8,145 - - 1,000 1,700 1,700provision forcredit lossesPlus: income 7,251 2,551 2,356 2,682 2,213 1,093 1,348tax expensePre-provision $ 28,269 $ (10,766 ) $ 8,716 $ 10,138 $ 9,415 $ 7,264 $ 7,652net revenue(Non-GAAP) Adjustments tonet revenue:Mortgage - (130 ) - - - - -bankingactivitiesSecurities - (3,044 ) - - - - -gainsPrepayment - 224 - - - - -penalty - FHLBadvancesBranch - - - - - 554 -optimizationchargeLitigation - 1,000 - - - 980 -accrualCFO departure - 788 - - - - -

Merger-related 880 - 880 - - - -expenseGoodwill - 34,500 - - - - -impairmentchargeTotal corepretax net 880 33,338 880 - - 1,534 -revenueadjustmentsCorepre-provision $ 29,149 $ 22,572 $ 9,596 $ 10,138 $ 9,415 $ 8,798 $ 7,652net revenue(PPNR) GAAP TO NON-GAAP RECONCILIATION - PPNR / AVERAGE TANGIBLE COMMON EQUITY(in thousands)FOR THE NINE MONTHS ENDED

FOR THE THREE MONTHS ENDED

September 30,

September 30,

September 30,

June 30,

March 31,

December 31,

September 30,

2021

2020

2021

2021

2021

2020

2020

Core PPNR (Non-GAAP)$

29,149

$

22,572

$

9,596

$

10,138

$

9,415

$

8,798

$

7,652

Average common equity (GAAP)$

302,234

$

307,493

$

309,058

$

300,234

$

297,280

$

294,285

$

288,727

Less average goodwill(31,449

)

(54,239

)

(31,449

)

(31,449

)

(31,449

)

(31,449

)

(31,449

)

Less average core deposit intangible, net(3,794

)

(5,639

)

(3,357

)

(3,795

)

(4,246

)

(4,716

)

(5,076

)

Average tangible common equity (Non-GAAP)$

266,991

$

247,615

$

274,252

$

264,991

$

261,585

$

258,120

$

252,202

Core PPNR / average tangible common equity (Non-GAAP)14.60

%

12.18

%

13.88

%

15.35

%

14.60

%

13.56

%

12.07

%

Annualized ratio based on days in quarter divided by days in yearGAAP TO NON-GAAP RECONCILIATION - PPNR / AVERAGE TANGIBLE COMMON EQUITY(inthousands) FOR THE NINE MONTHS ENDED FOR THE THREE MONTHS ENDED

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

2021 2020 2021 2021 2021 2020 2020

Core PPNR $ 29,149 $ 22,572 $ 9,596 $ 10,138 $ 9,415 $ 8,798 $ 7,652 (Non-GAAP) Averagecommon $ 302,234 $ 307,493 $ 309,058 $ 300,234 $ 297,280 $ 294,285 $ 288,727 equity(GAAP)Less (31,449 ) (54,239 ) (31,449 ) (31,449 ) (31,449 ) (31,449 ) (31,449 )averagegoodwillLessaveragecore (3,794 ) (5,639 ) (3,357 ) (3,795 ) (4,246 ) (4,716 ) (5,076 )depositintangible,netAveragetangible $ 266,991 $ 247,615 $ 274,252 $ 264,991 $ 261,585 $ 258,120 $ 252,202 commonequity(Non-GAAP) Core PPNR /averagetangible 14.60 % 12.18 % 13.88 % 15.35 % 14.60 % 13.56 % 12.07 %commonequity(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(inthousands) FOR THE NINE MONTHS ENDED FOR THE THREE MONTHS ENDED

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

2021 2020 2021 2021 2021 2020 2020

Core PPNR $ 29,149 $ 22,572 $ 9,596 $ 10,138 $ 9,415 $ 8,798 $ 7,652 (Non-GAAP) Averagetotal 2,571,694 2,474,988 2,587,555 2,587,151 2,539,849 2,527,869 2,524,773 assets(GAAP) Core PPNR/ average 1.52 % 1.22 % 1.47 % 1.57 % 1.50 % 1.38 % 1.21 %totalassets(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 NINE MONTHS ENDED

FOR THE THREE MONTHS ENDED

September 30,

September 30,

September 30,

June 30,

March 31,

December 31,

September 30,

2021

2020

2021

2021

2021

2020

2020

Net interest income (GAAP)$

59,657

$

53,917

$

19,887

$

20,082

$

19,688

$

19,686

$

18,272

Adjustments:Mortgage banking activities-

(143

)

-

-

-

-

-

Total core net interest income adjustments-

(143

)

-

-

-

-

-

Core net interest income (Non-GAAP)$

59,657

$

53,774

$

19,887

$

20,082

$

19,688

$

19,686

$

18,272

Noninterest income (GAAP)$

6,566

$

10,214

$

2,144

$

2,353

$

2,069

$

2,145

$

2,089

Adjustments:Mortgage banking activities-

(1,425

)

-

-

-

-

-

Securities gains-

(3,044

)

-

-

-

-

-

Total core noninterest income adjustments-

(4,469

)

-

-

-

-

-

Core noninterest income (Non-GAAP)$

6,566

$

5,745

$

2,144

$

2,353

$

2,069

$

2,145

$

2,089

Total net interest income and noninterest income (GAAP)$

66,223

$

64,131

$

22,031

$

22,435

$

21,757

$

21,831

$

20,361

Adjustments:Total core net interest income adjustments-

(143

)

-

-

-

-

-

Total core noninterest income adjustments-

(4,469

)

-

-

-

-

-

Total core net interest income and noninterest income adjustments-

(4,612

)

-

-

-

-

-

Core net interest income + noninterest income (Non-GAAP)$

66,223

$

59,519

$

22,031

$

22,435

$

21,757

$

21,831

$

20,361

Noninterest expense (GAAP)$

37,954

$

74,896

$

13,315

$

12,297

$

12,342

$

14,567

$

12,709

Adjustments:Mortgage banking activities-

(1,438

)

-

-

-

-

-

Prepayment penalty - FHLB advances-

(224

)

-

-

-

-

-

Branch optimization charge-

-

-

-

-

(554

)

-

Litigation accrual-

(1,000

)

-

-

-

(980

)

-

CFO departure-

(788

)

-

-

-

-

-

Merger-related expense(880

)

-

(880

)

-

-

-

-

Goodwill impairment charge-

(34,500

)

-

-

-

-

-

Total core noninterest expense adjustments(880

)

(37,950

)

(880

)

-

-

(1,534

)

-

Core noninterest expense (Non-GAAP)$

37,074

$

36,946

$

12,435

$

12,297

$

12,342

$

13,033

$

12,709

Efficiency ratio (GAAP)57.31

%

116.79

%

60.44

%

54.81

%

56.73

%

66.73

%

62.42

%

Core efficiency ratio (Non-GAAP)55.98

%

62.07

%

56.44

%

54.81

%

56.73

%

59.70

%

62.42

%

GAAP TO NON-GAAP RECONCILIATION - EFFICIENCY RATIO(in thousands) FOR THE NINE MONTHS FOR THE THREE MONTHS ENDED ENDED

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

2021 2020 2021 2021 2021 2020 2020

Net interest $ 59,657 $ 53,917 $ 19,887 $ 20,082 $ 19,688 $ 19,686 $ 18,272 income (GAAP)Adjustments:Mortgage - (143 ) - - - - - bankingactivitiesTotal core netinterest - (143 ) - - - - - incomeadjustmentsCore netinterest $ 59,657 $ 53,774 $ 19,887 $ 20,082 $ 19,688 $ 19,686 $ 18,272 income(Non-GAAP) Noninterest $ 6,566 $ 10,214 $ 2,144 $ 2,353 $ 2,069 $ 2,145 $ 2,089 income (GAAP)Adjustments:Mortgage - (1,425 ) - - - - - bankingactivitiesSecurities - (3,044 ) - - - - - gainsTotal corenoninterest - (4,469 ) - - - - - incomeadjustmentsCorenoninterest $ 6,566 $ 5,745 $ 2,144 $ 2,353 $ 2,069 $ 2,145 $ 2,089 income(Non-GAAP) Total netinterest $ 66,223 $ 64,131 $ 22,031 $ 22,435 $ 21,757 $ 21,831 $ 20,361 income andnoninterestincome (GAAP)Adjustments:Total core netinterest - (143 ) - - - - - incomeadjustmentsTotal corenoninterest - (4,469 ) - - - - - incomeadjustmentsTotal core netinterestincome and - (4,612 ) - - - - - noninterestincomeadjustmentsCore netinterestincome + $ 66,223 $ 59,519 $ 22,031 $ 22,435 $ 21,757 $ 21,831 $ 20,361 noninterestincome(Non-GAAP) Noninterest $ 37,954 $ 74,896 $ 13,315 $ 12,297 $ 12,342 $ 14,567 $ 12,709 expense (GAAP)Adjustments:Mortgage - (1,438 ) - - - - - bankingactivitiesPrepayment - (224 ) - - - - - penalty - FHLBadvancesBranch - - - - - (554 ) - optimizationchargeLitigation - (1,000 ) - - - (980 ) - accrualCFO departure - (788 ) - - - - -

Merger-related (880 ) - (880 ) - - - - expenseGoodwill - (34,500 ) - - - - - impairmentchargeTotal corenoninterest (880 ) (37,950 ) (880 ) - - (1,534 ) - expenseadjustmentsCorenoninterest $ 37,074 $ 36,946 $ 12,435 $ 12,297 $ 12,342 $ 13,033 $ 12,709 expense(Non-GAAP) Efficiency 57.31 % 116.79 % 60.44 % 54.81 % 56.73 % 66.73 % 62.42 %ratio (GAAP) Coreefficiency 55.98 % 62.07 % 56.44 % 54.81 % 56.73 % 59.70 % 62.42 %ratio(Non-GAAP) GAAP TO NON-GAAP RECONCILIATION - TANGIBLE BOOK VALUE PER COMMON SHARE(in thousands except per share data)FOR THE NINE MONTHS ENDED

FOR THE THREE MONTHS ENDED

September 30,

September 30,

September 30,

June 30,

March 31,

December 31,

September 30,

2021

2020

2021

2021

2021

2020

2020

Common and total stockholder's equity (GAAP)$

308,177

$

289,500

$

308,177

$

303,263

$

292,675

$

294,632

$

289,500

Total shares outstanding at period end18,812

18,742

18,812

18,795

18,782

18,745

18,742

Book value per common share at period end (GAAP)$

16.38

$

15.45

$

16.38

$

16.14

$

15.58

$

15.72

$

15.45

Common and total stockholder's equity (GAAP)$

308,177

$

289,500

$

308,177

$

303,263

$

292,675

$

294,632

$

289,500

Less goodwill(31,449

)

(31,449

)

(31,449

)

(31,449

)

(31,449

)

(31,449

)

(31,449

)

Less deposit intangible, net of deferred tax liability(3,076

)

(4,869

)

(3,076

)

(3,501

)

(3,942

)

(4,398

)

(4,869

)

Tangible common equity (Non-GAAP)$

273,652

$

253,182

$

273,652

$

268,313

$

257,284

$

258,785

$

253,182

Total shares outstanding at period end18,812

18,742

18,812

18,795

18,782

18,745

18,742

Tangible book value per common share (Non GAAP)$

14.55

$

13.51

$

14.55

$

14.28

$

13.70

$

13.81

$

13.51

GAAP TO NON-GAAP RECONCILIATION - TANGIBLE BOOK VALUE PER COMMON SHARE(in thousands except per share data) FOR THE NINE MONTHS ENDED FOR THE THREE MONTHS ENDED

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

2021 2020 2021 2021 2021 2020 2020

Common andtotal $ 308,177 $ 289,500 $ 308,177 $ 303,263 $ 292,675 $ 294,632 $ 289,500 stockholder'sequity (GAAP) Total shares 18,812 18,742 18,812 18,795 18,782 18,745 18,742 outstandingat period end Book valueper common $ 16.38 $ 15.45 $ 16.38 $ 16.14 $ 15.58 $ 15.72 $ 15.45 share atperiod end(GAAP) Common andtotal $ 308,177 $ 289,500 $ 308,177 $ 303,263 $ 292,675 $ 294,632 $ 289,500 stockholder'sequity (GAAP)Less goodwill (31,449 ) (31,449 ) (31,449 ) (31,449 ) (31,449 ) (31,449 ) (31,449 )

Less depositintangible, (3,076 ) (4,869 ) (3,076 ) (3,501 ) (3,942 ) (4,398 ) (4,869 )net ofdeferred taxliabilityTangible $ 273,652 $ 253,182 $ 273,652 $ 268,313 $ 257,284 $ 258,785 $ 253,182 common equity(Non-GAAP) Total shares 18,812 18,742 18,812 18,795 18,782 18,745 18,742 outstandingat period end Tangible bookvalue per $ 14.55 $ 13.51 $ 14.55 $ 14.28 $ 13.70 $ 13.81 $ 13.51 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 NINE MONTHS ENDED FOR THE THREE MONTHS ENDED

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

2021 2020 2021 2021 2021 2020 2020

Common (andtotal) $ 308,177 $ 289,500 $ 308,177 $ 303,263 $ 292,675 $ 294,632 $ 289,500 stockholder'sequity (GAAP)Less goodwill (31,449 ) (31,449 ) (31,449 ) (31,449 ) (31,449 ) (31,449 ) (31,449 )

Less depositintangible, (3,076 ) (4,869 ) (3,076 ) (3,501 ) (3,942 ) (4,398 ) (4,869 )net ofdeferred taxliabilityTangible $ 273,652 $ 253,182 $ 273,652 $ 268,313 $ 257,284 $ 258,785 $ 253,182 common equity(Non-GAAP) Total assets $ 2,527,258 $ 2,559,184 $ 2,527,258 $ 2,599,541 $ 2,625,550 $ 2,537,991 $ 2,559,184 (GAAP)Less goodwill (31,449 ) (31,449 ) (31,449 ) (31,449 ) (31,449 ) (31,449 ) (31,449 )

Less depositintangible, (3,076 ) (4,869 ) (3,076 ) (3,501 ) (3,942 ) (4,398 ) (4,869 )net ofdeferred taxliabilityTangible $ 2,492,733 $ 2,522,866 $ 2,492,733 $ 2,564,591 $ 2,590,159 $ 2,502,144 $ 2,522,866 assets(Non-GAAP) Tangiblecommon equity 10.98 % 10.04 % 10.98 % 10.46 % 9.93 % 10.34 % 10.04 %/ tangibleassets(period end) GAAP TO NON-GAAP RECONCILIATION - RETURN ON AVERAGE COMMON EQUITY(in thousands)FOR THE NINE MONTHS ENDED

FOR THE THREE MONTHS ENDED

September 30,

September 30,

September 30,

June 30,

March 31,

December 31,

September 30,

2021

2020

2021

2021

2021

2020

2020

Net income (loss) (GAAP)$

20,018

$

(21,462

)

$

6,360

$

7,456

$

6,202

$

4,471

$

4,604

Average common (and total) equity (GAAP)302,234

307,493

309,058

300,234

297,280

294,285

288,727

Return on average common equity (GAAP)8.86

%

-9.32

%

8.16

%

9.96

%

8.46

%

6.04

%

6.34

%

Net income (loss) (GAAP)$

20,018

$

(21,462

)

$

6,360

$

7,456

$

6,202

$

4,471

$

4,604

Total core adjustments to net income (loss)710

32,437

710

-

-

1,026

-

Core net income (Non-GAAP)$

20,728

$

10,975

$

7,070

$

7,456

$

6,202

$

5,497

$

4,604

Average common equity302,234

307,493

309,058

300,234

297,280

294,285

288,727

Core return on average common equity (Non-GAAP)9.17

%

4.77

%

9.08

%

9.96

%

8.46

%

7.43

%

6.34

%

Annualized ratio based on days in quarter divided by days in yearGAAP TO NON-GAAP RECONCILIATION - RETURN ON AVERAGE COMMON EQUITY(inthousands) FOR THE NINE MONTHS ENDED FOR THE THREE MONTHS ENDED

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

2021 2020 2021 2021 2021 2020 2020

Net income $ 20,018 $ (21,462 ) $ 6,360 $ 7,456 $ 6,202 $ 4,471 $ 4,604 (loss)(GAAP) Averagecommon (and 302,234 307,493 309,058 300,234 297,280 294,285 288,727 total)equity(GAAP) Return onaverage 8.86 % -9.32 % 8.16 % 9.96 % 8.46 % 6.04 % 6.34 %commonequity(GAAP) Net income $ 20,018 $ (21,462 ) $ 6,360 $ 7,456 $ 6,202 $ 4,471 $ 4,604 (loss)(GAAP)Total coreadjustments 710 32,437 710 - - 1,026 - to netincome(loss)Core net $ 20,728 $ 10,975 $ 7,070 $ 7,456 $ 6,202 $ 5,497 $ 4,604 income(Non-GAAP) Average 302,234 307,493 309,058 300,234 297,280 294,285 288,727 commonequity Core returnon average 9.17 % 4.77 % 9.08 % 9.96 % 8.46 % 7.43 % 6.34 %commonequity(Non-GAAP) Annualized ratio based on days in quarter divided by days in year GAAP TO NON-GAAP RECONCILIATION - TANGIBLE RETURN ON AVERAGE TANGIBLE COMMON EQUITY(in thousands)FOR THE NINE MONTHS ENDED

FOR THE THREE MONTHS ENDED

September 30,

September 30,

September 30,

June 30,

March 31,

December 31,

September 30,

2021

2020

2021

2021

2021

2020

2020

Net income (loss) (GAAP)$

20,018

$

(21,462

)

$

6,360

$

7,456

$

6,202

$

4,471

$

4,604

Goodwill impairment charge-

34,500

-

-

-

-

-

CDI amortization1,780

2,038

571

594

615

636

659

Income tax expense on pretax total(315

)

(551

)

(154

)

(160

)

(166

)

(171

)

(178

)

CDI amortization, net of tax1,465

1,487

417

434

449

465

481

Total adjustments to net income1,465

35,987

417

434

449

465

481

Tangible net income (Non-GAAP)$

21,483

$

14,525

$

6,777

$

7,890

$

6,651

$

4,936

$

5,085

Average common equity (GAAP)$

302,234

$

307,493

$

309,058

$

300,234

$

297,280

$

294,285

$

288,727

Less average goodwill(31,449

)

(54,239

)

(31,449

)

(31,449

)

(31,449

)

(31,449

)

(31,449

)

Less average core deposit intangible, net(3,794

)

(5,639

)

(3,357

)

(3,795

)

(4,247

)

(4,716

)

(5,076

)

Average tangible common equity (Non-GAAP)$

266,991

$

247,615

$

274,252

$

264,991

$

261,584

$

258,120

$

252,202

Tangible return on average tangible common equity (Non-GAAP)10.76

%

7.84

%

9.80

%

11.94

%

10.31

%

7.61

%

8.02

%

Tangible net income (Non-GAAP)$

21,483

$

14,525

$

6,777

$

7,890

$

6,651

$

4,936

$

5,085

Total core adjustments to net income (loss) (ex goodwill impairment)710

(2,062

)

710

-

-

1,026

-

Core tangible net income (Non-GAAP)$

22,193

$

12,463

$

7,487

$

7,890

$

6,651

$

5,962

$

5,085

Average tangible common equity (Non-GAAP)$

266,991

$

247,615

$

274,252

$

264,991

$

261,584

$

258,120

$

252,202

Core tangible return on average tangible common equity (Non-GAAP)11.11

%

6.72

%

10.83

%

11.94

%

10.31

%

9.19

%

8.02

%

Annualized ratio based on days in quarter divided by days in yearGAAP TO NON-GAAP RECONCILIATION - TANGIBLE RETURN ON AVERAGE TANGIBLE COMMONEQUITY(inthousands) FOR THE NINE MONTHS ENDED FOR THE THREE MONTHS ENDED

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

2021 2020 2021 2021 2021 2020 2020

Net income $ 20,018 $ (21,462 ) $ 6,360 $ 7,456 $ 6,202 $ 4,471 $ 4,604 (loss) (GAAP) Goodwill - 34,500 - - - - - impairmentcharge CDI 1,780 2,038 571 594 615 636 659 amortizationIncome tax (315 ) (551 ) (154 ) (160 ) (166 ) (171 ) (178 )expense onpretax totalCDI 1,465 1,487 417 434 449 465 481 amortization,net of taxTotal 1,465 35,987 417 434 449 465 481 adjustmentsto net incomeTangible net $ 21,483 $ 14,525 $ 6,777 $ 7,890 $ 6,651 $ 4,936 $ 5,085 income(Non-GAAP) Average $ 302,234 $ 307,493 $ 309,058 $ 300,234 $ 297,280 $ 294,285 $ 288,727 common equity(GAAP)Less average (31,449 ) (54,239 ) (31,449 ) (31,449 ) (31,449 ) (31,449 ) (31,449 )goodwillLess averagecore deposit (3,794 ) (5,639 ) (3,357 ) (3,795 ) (4,247 ) (4,716 ) (5,076 )intangible,netAveragetangible $ 266,991 $ 247,615 $ 274,252 $ 264,991 $ 261,584 $ 258,120 $ 252,202 common equity(Non-GAAP) Tangiblereturn onaverage 10.76 % 7.84 % 9.80 % 11.94 % 10.31 % 7.61 % 8.02 %tangiblecommon equity(Non-GAAP) Tangible net $ 21,483 $ 14,525 $ 6,777 $ 7,890 $ 6,651 $ 4,936 $ 5,085 income(Non-GAAP)Total coreadjustmentsto net income 710 (2,062 ) 710 - - 1,026 - (loss) (exgoodwillimpairment)Core tangible $ 22,193 $ 12,463 $ 7,487 $ 7,890 $ 6,651 $ 5,962 $ 5,085 net income(Non-GAAP) Averagetangible $ 266,991 $ 247,615 $ 274,252 $ 264,991 $ 261,584 $ 258,120 $ 252,202 common equity(Non-GAAP) Core tangiblereturn onaverage 11.11 % 6.72 % 10.83 % 11.94 % 10.31 % 9.19 % 8.02 %tangiblecommon equity(Non-GAAP) Annualized ratio based on days in quarter divided by days in year HOWARD BANCORP, INC. AND SUBSIDIARYGAAP TO NON-GAAP RECONCILIATION - RETURN ON AVERAGE ASSETS(inthousands) FOR THE NINE MONTHS ENDED FOR THE THREE MONTHS ENDED

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

2021 2020 2021 2021 2021 2020 2020

Net income $ 20,018 $ (21,462 ) $ 6,360 $ 7,456 $ 6,202 $ 4,471 $ 4,604 (loss)(GAAP) Averagetotal 2,571,694 2,474,988 2,587,555 2,587,151 2,539,849 2,527,869 2,524,773 assets(GAAP) Return onaverage 1.04 % -1.16 % 0.98 % 1.16 % 0.99 % 0.70 % 0.73 %assets(GAAP) Net income 20,018 (21,462 ) 6,360 7,456 6,202 4,471 4,604 (loss)(GAAP)Total coreadjustments 710 32,437 710 - - 1,026 - to netincome(loss)Core net $ 20,728 $ 10,975 $ 7,070 $ 7,456 $ 6,202 $ 5,497 $ 4,604 income(Non-GAAP) Averagetotal 2,571,694 2,474,988 2,587,555 2,587,151 2,539,849 2,527,869 2,524,773 assets(GAAP) Core returnon average 1.08 % 0.59 % 1.08 % 1.16 % 0.99 % 0.87 % 0.73 %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 NINE MONTHS ENDED

FOR THE THREE MONTHS ENDED

September 30,

September 30,

September 30,

June 30,

March 31,

December 31,

September 30,

2021

2020

2021

2021

2021

2020

2020

Net income (loss) (GAAP)$

20,018

$

(21,462

)

$

6,360

$

7,456

$

6,202

$

4,471

$

4,604

Goodwill impairment charge-

34,500

-

-

-

-

-

CDI amortization1,780

2,038

571

594

615

636

659

Income tax expense on pretax total(315

)

(551

)

(154

)

(160

)

(166

)

(171

)

(178

)

CDI amortization, net of tax1,465

1,487

417

434

449

465

481

Total adjustments to net income1,465

35,987

417

434

449

465

481

Tangible net income (Non-GAAP)$

21,483

$

14,525

$

6,777

$

7,890

$

6,651

$

4,936

$

5,085

Average total assets (GAAP)2,571,694

2,474,988

2,587,555

2,587,151

2,539,849

2,527,869

2,524,773

Less average goodwill(31,449

)

(54,239

)

(31,449

)

(31,449

)

(31,449

)

(31,449

)

(31,449

)

Less average core deposit intangible, net(3,794

)

(5,639

)

(3,357

)

(3,795

)

(4,247

)

(4,716

)

(5,076

)

Average tangible assets (Non-GAAP)$

2,536,451

$

2,415,110

$

2,552,749

$

2,551,908

$

2,504,153

$

2,491,704

$

2,488,248

Tangible return on average tangible assets (Non-GAAP)1.13

%

0.80

%

1.05

%

1.24

%

1.08

%

0.79

%

0.81

%

Tangible net income (Non-GAAP)$

21,483

$

14,525

$

6,777

$

7,890

$

6,651

$

4,936

$

5,085

Total core adjustments to net income (loss) (ex goodwill impairment)710

(2,062

)

710

-

-

1,026

-

Core tangible net income (Non-GAAP)$

22,193

$

12,463

$

7,487

$

7,890

$

6,651

$

5,962

$

5,085

Average tangible assets (Non-GAAP)$

2,536,451

$

2,415,110

$

2,552,749

$

2,551,908

$

2,504,153

$

2,491,704

$

2,488,248

Core tangible return on average tangible assets (Non-GAAP)1.17

%

0.69

%

1.16

%

1.24

%

1.08

%

0.95

%

0.81

%

Annualized ratio based on days in quarter divided by days in yearGAAP TO NON-GAAP RECONCILIATION - TANGIBLE RETURN ON AVERAGE TANGIBLE ASSETS(inthousands) FOR THE NINE MONTHS ENDED FOR THE THREE MONTHS ENDED

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

2021 2020 2021 2021 2021 2020 2020

Net income $ 20,018 $ (21,462 ) $ 6,360 $ 7,456 $ 6,202 $ 4,471 $ 4,604 (loss) (GAAP) Goodwill - 34,500 - - - - - impairmentcharge CDI 1,780 2,038 571 594 615 636 659 amortizationIncome tax (315 ) (551 ) (154 ) (160 ) (166 ) (171 ) (178 )expense onpretax totalCDI 1,465 1,487 417 434 449 465 481 amortization,net of taxTotal 1,465 35,987 417 434 449 465 481 adjustmentsto net incomeTangible net $ 21,483 $ 14,525 $ 6,777 $ 7,890 $ 6,651 $ 4,936 $ 5,085 income(Non-GAAP) Average total 2,571,694 2,474,988 2,587,555 2,587,151 2,539,849 2,527,869 2,524,773 assets (GAAP)Less average (31,449 ) (54,239 ) (31,449 ) (31,449 ) (31,449 ) (31,449 ) (31,449 )goodwillLess averagecore deposit (3,794 ) (5,639 ) (3,357 ) (3,795 ) (4,247 ) (4,716 ) (5,076 )intangible,netAveragetangible $ 2,536,451 $ 2,415,110 $ 2,552,749 $ 2,551,908 $ 2,504,153 $ 2,491,704 $ 2,488,248 assets(Non-GAAP) Tangiblereturn onaverage 1.13 % 0.80 % 1.05 % 1.24 % 1.08 % 0.79 % 0.81 %tangibleassets(Non-GAAP) Tangible net $ 21,483 $ 14,525 $ 6,777 $ 7,890 $ 6,651 $ 4,936 $ 5,085 income(Non-GAAP)Total coreadjustmentsto net income 710 (2,062 ) 710 - - 1,026 - (loss) (exgoodwillimpairment)Core tangible $ 22,193 $ 12,463 $ 7,487 $ 7,890 $ 6,651 $ 5,962 $ 5,085 net income(Non-GAAP) Averagetangible $ 2,536,451 $ 2,415,110 $ 2,552,749 $ 2,551,908 $ 2,504,153 $ 2,491,704 $ 2,488,248 assets(Non-GAAP) Core tangiblereturn onaverage 1.17 % 0.69 % 1.16 % 1.24 % 1.08 % 0.95 % 0.81 %tangibleassets(Non-GAAP) Annualizedratio basedon days inquarterdivided bydays in year GAAP TO NON-GAAP RECONCILIATION - ALLOWANCE FOR LOAN LOSSES AS A % OF PORTFOLIO LOANS(in thousands)FOR THE NINE MONTHS ENDED

FOR THE THREE MONTHS ENDED

September 30,

September 30,

September 30,

June 30,

March 31,

December 31,

September 30,

2021

2020

2021

2021

2021

2020

2020

Allowance for loan losses (GAAP)$

18,353

$

17,657

$

18,353

$

18,288

$

18,368

$

19,162

$

17,657

Total loans and leases (GAAP)1,903,255

1,884,405

1,903,255

1,942,507

1,947,450

1,865,961

1,884,405

Allowance as a % of total loans and leases (GAAP)0.96

%

0.94

%

0.96

%

0.94

%

0.94

%

1.03

%

0.94

%

Allowance for loan losses (GAAP)$

18,353

$

17,657

$

18,353

$

18,288

$

18,368

$

19,162

$

17,657

Total loans and leases (GAAP)1,903,255

1,884,405

1,903,255

1,942,507

1,947,450

1,865,961

1,884,405

Less PPP loans outstanding(79,918

)

(196,375

)

(79,918

)

(142,660

)

(201,588

)

(167,639

)

(196,375

)

Portfolio loans (Non-GAAP)1,823,337

1,688,030

1,823,337

1,799,847

1,745,862

1,698,322

1,688,030

Allowance as a % of portfolio loans (Non-GAAP)1.01

%

1.05

%

1.01

%

1.02

%

1.05

%

1.13

%

1.05

%

GAAP TO NON-GAAP RECONCILIATION - ALLOWANCE FOR LOAN LOSSES AS A % OF PORTFOLIOLOANS(inthousands) FOR THE NINE MONTHS ENDED FOR THE THREE MONTHS ENDED

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

2021 2020 2021 2021 2021 2020 2020

Allowancefor loan $ 18,353 $ 17,657 $ 18,353 $ 18,288 $ 18,368 $ 19,162 $ 17,657 losses(GAAP) Total loans 1,903,255 1,884,405 1,903,255 1,942,507 1,947,450 1,865,961 1,884,405 and leases(GAAP) Allowanceas a % of 0.96 % 0.94 % 0.96 % 0.94 % 0.94 % 1.03 % 0.94 %total loansand leases(GAAP) Allowancefor loan $ 18,353 $ 17,657 $ 18,353 $ 18,288 $ 18,368 $ 19,162 $ 17,657 losses(GAAP) Total loans 1,903,255 1,884,405 1,903,255 1,942,507 1,947,450 1,865,961 1,884,405 and leases(GAAP)Less PPP (79,918 ) (196,375 ) (79,918 ) (142,660 ) (201,588 ) (167,639 ) (196,375 )loansoutstandingPortfolio 1,823,337 1,688,030 1,823,337 1,799,847 1,745,862 1,698,322 1,688,030 loans(Non-GAAP) Allowanceas a % of 1.01 % 1.05 % 1.01 % 1.02 % 1.05 % 1.13 % 1.05 %portfolioloans(Non-GAAP)

HOWARD BANCORP, INC. AND SUBSIDIARYGAAP TO NON-GAAP RECONCILIATION - NONPERFORMING LOANS AS A % OF PORTFOLIO LOANS(inthousands) FOR THE NINE MONTHS ENDED FOR THE THREE MONTHS ENDED

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

2021 2020 2021 2021 2021 2020 2020

Nonperforming $ 15,931 $ 16,984 $ 15,931 $ 16,219 $ 15,723 $ 19,430 $ 16,984 loans Total loans 1,903,255 1,884,405 1,903,255 1,942,507 1,947,450 1,865,961 1,884,405 and leases(GAAP) Nonperformingloans as a % 0.84 % 0.90 % 0.84 % 0.83 % 0.81 % 1.04 % 0.90 %of totalloans andleases (GAAP) Nonperforming $ 15,931 $ 16,984 $ 15,931 $ 16,219 $ 15,723 $ 19,430 $ 16,984 loans Total loans 1,903,255 1,884,405 1,903,255 1,942,507 1,947,450 1,865,961 1,884,405 and leases(GAAP)Less PPP (79,918 ) (196,375 ) (79,918 ) (142,660 ) (201,588 ) (167,639 ) (196,375 )loansoutstandingPortfolio 1,823,337 1,688,030 1,823,337 1,799,847 1,745,862 1,698,322 1,688,030 loans(Non-GAAP) Nonperformingloans as a % 0.87 % 1.01 % 0.87 % 0.90 % 0.90 % 1.14 % 1.01 %of portfolioloans(Non-GAAP) GAAP TO NON-GAAP RECONCILIATION - NONPERFORMING ASSETS AS A % OF PORTFOLIO LOANS + OREO(in thousands)FOR THE NINE MONTHS ENDED

FOR THE THREE MONTHS ENDED

September 30,

September 30,

September 30,

June 30,

March 31,

December 31,

September 30,

2021

2020

2021

2021

2021

2020

2020

Nonperforming assets$

16,265

$

18,139

$

16,265

$

16,848

$

16,352

$

20,173

$

18,139

Total loans and leases (GAAP)1,903,255

1,884,405

1,903,255

1,942,507

1,947,450

1,865,961

1,884,405

OREO334

1,155

334

629

629

743

1,155

Total loans and leases + OREO1,903,589

1,885,560

1,903,589

1,943,136

1,948,079

1,866,704

1,885,560

Nonperforming assets as a % of total loans and leases + OREO (GAAP)0.85

%

0.96

%

0.85

%

0.87

%

0.84

%

1.08

%

0.96

%

Nonperforming assets$

16,265

$

18,139

$

16,265

$

16,848

$

16,352

$

20,173

$

18,139

Total loans and leases (GAAP)1,903,255

1,884,405

1,903,255

1,942,507

1,947,450

1,865,961

1,884,405

OREO334

1,155

334

629

629

743

1,155

Total loans and leases + OREO1,903,589

1,885,560

1,903,589

1,943,136

1,948,079

1,866,704

1,885,560

Less PPP loans outstanding(79,918

)

(196,375

)

(79,918

)

(142,660

)

(201,588

)

(167,639

)

(196,375

)

Portfolio loans + OREO$

1,823,671

$

1,689,185

$

1,823,671

$

1,800,476

$

1,746,491

$

1,699,065

$

1,689,185

Nonperforming assets as a % of portfolio loans + OREO (Non-GAAP)0.89

%

1.07

%

0.89

%

0.94

%

0.94

%

1.19

%

1.07

%

GAAP TO NON-GAAP RECONCILIATION - NONPERFORMING ASSETS AS A % OF PORTFOLIOLOANS + OREO(inthousands) FOR THE NINE MONTHS ENDED FOR THE THREE MONTHS ENDED

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

2021 2020 2021 2021 2021 2020 2020

Nonperforming $ 16,265 $ 18,139 $ 16,265 $ 16,848 $ 16,352 $ 20,173 $ 18,139 assets Total loans 1,903,255 1,884,405 1,903,255 1,942,507 1,947,450 1,865,961 1,884,405 and leases(GAAP)OREO 334 1,155 334 629 629 743 1,155

Total loans 1,903,589 1,885,560 1,903,589 1,943,136 1,948,079 1,866,704 1,885,560 and leases +OREO Nonperformingassets as a %of total 0.85 % 0.96 % 0.85 % 0.87 % 0.84 % 1.08 % 0.96 %loans andleases + OREO(GAAP) Nonperforming $ 16,265 $ 18,139 $ 16,265 $ 16,848 $ 16,352 $ 20,173 $ 18,139 assets Total loans 1,903,255 1,884,405 1,903,255 1,942,507 1,947,450 1,865,961 1,884,405 and leases(GAAP)OREO 334 1,155 334 629 629 743 1,155

Total loans 1,903,589 1,885,560 1,903,589 1,943,136 1,948,079 1,866,704 1,885,560 and leases +OREOLess PPP (79,918 ) (196,375 ) (79,918 ) (142,660 ) (201,588 ) (167,639 ) (196,375 )loansoutstandingPortfolio $ 1,823,671 $ 1,689,185 $ 1,823,671 $ 1,800,476 $ 1,746,491 $ 1,699,065 $ 1,689,185 loans + OREO Nonperformingassets as a % 0.89 % 1.07 % 0.89 % 0.94 % 0.94 % 1.19 % 1.07 %of portfolioloans + OREO(Non-GAAP) GAAP TO NON-GAAP RECONCILIATION - ALLOWANCE FOR LOAN LOSSES + FV MARKS AS A % OF PORTFOLIO LOANS + FV MARKS(in thousands)FOR THE NINE MONTHS ENDED

FOR THE THREE MONTHS ENDED

September 30,

September 30,

September 30,

June 30,

March 31,

December 31,

September 30,

2021

2020

2021

2021

2021

2020

2020

Allowance for loan losses (GAAP)$

18,353

$

17,657

$

18,353

$

18,288

$

18,368

$

19,162

$

17,657

Add: Fair value marks4,230

7,365

4,230

4,634

5,302

6,454

7,365

Allowance + fair value marks (Non-GAAP)$

22,583

$

25,022

$

22,583

$

22,922

$

23,670

$

25,616

$

25,022

Total loans and leases (GAAP)$

1,903,255

$

1,884,405

$

1,903,255

$

1,942,507

$

1,947,450

$

1,865,961

$

1,884,405

Add: fair value marks4,230

7,365

4,230

4,634

5,302

6,454

7,365

Total loans and leases + fair value marks (Non-GAAP)$

1,907,485

$

1,891,770

$

1,907,485

$

1,947,141

$

1,952,752

$

1,872,415

$

1,891,770

Allowance + fair value marks as a % of total loans and leases + fair value marks (Non-GAAP)1.18

%

1.32

%

1.18

%

1.18

%

1.21

%

1.37

%

1.32

%

Allowance for loan losses (GAAP)$

18,353

$

17,657

$

18,353

$

18,288

$

18,368

$

19,162

$

17,657

Add: Fair value marks4,230

7,365

4,230

4,634

5,302

6,454

7,365

Allowance + fair value marks (Non-GAAP)$

22,583

$

25,022

$

22,583

$

22,922

$

23,670

$

25,616

$

25,022

Total loans and leases (GAAP)$

1,903,255

$

1,884,405

$

1,903,255

$

1,942,507

$

1,947,450

$

1,865,961

$

1,884,405

Less PPP loans outstanding(79,918

)

(196,375

)

(79,918

)

(142,660

)

(201,588

)

(167,639

)

(196,375

)

Portfolio loans (Non-GAAP)$

1,823,337

$

1,688,030

$

1,823,337

$

1,799,847

$

1,745,862

$

1,698,322

$

1,688,030

Add: fair value marks4,230

7,365

4,230

4,634

5,302

6,454

7,365

Portfolio loans + fair value marks (Non-GAAP)$

1,827,567

$

1,695,395

$

1,827,567

$

1,804,481

$

1,751,164

$

1,704,776

$

1,695,395

Allowance + fair value marks as a % of portfolio loans and leases + fair value marks (Non-GAAP)1.24

%

1.48

%

1.24

%

1.27

%

1.35

%

1.50

%

1.48

%

GAAP TO NON-GAAP RECONCILIATION - ALLOWANCE FOR LOAN LOSSES + FV MARKS AS A %OF PORTFOLIO LOANS + FV MARKS(inthousands) FOR THE NINE MONTHS ENDED FOR THE THREE MONTHS ENDED

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

2021 2020 2021 2021 2021 2020 2020

Allowancefor loan $ 18,353 $ 17,657 $ 18,353 $ 18,288 $ 18,368 $ 19,162 $ 17,657 losses(GAAP)Add: Fair 4,230 7,365 4,230 4,634 5,302 6,454 7,365 value marks Allowance +fair value $ 22,583 $ 25,022 $ 22,583 $ 22,922 $ 23,670 $ 25,616 $ 25,022 marks(Non-GAAP) Total loans $ 1,903,255 $ 1,884,405 $ 1,903,255 $ 1,942,507 $ 1,947,450 $ 1,865,961 $ 1,884,405 and leases(GAAP)Add: fair 4,230 7,365 4,230 4,634 5,302 6,454 7,365 value marks Total loansand leases $ 1,907,485 $ 1,891,770 $ 1,907,485 $ 1,947,141 $ 1,952,752 $ 1,872,415 $ 1,891,770 + fairvalue marks(Non-GAAP) Allowance +fair valuemarks as a% of total 1.18 % 1.32 % 1.18 % 1.18 % 1.21 % 1.37 % 1.32 %loans andleases +fair valuemarks(Non-GAAP) Allowancefor loan $ 18,353 $ 17,657 $ 18,353 $ 18,288 $ 18,368 $ 19,162 $ 17,657 losses(GAAP)Add: Fair 4,230 7,365 4,230 4,634 5,302 6,454 7,365 value marks Allowance +fair value $ 22,583 $ 25,022 $ 22,583 $ 22,922 $ 23,670 $ 25,616 $ 25,022 marks(Non-GAAP) Total loans $ 1,903,255 $ 1,884,405 $ 1,903,255 $ 1,942,507 $ 1,947,450 $ 1,865,961 $ 1,884,405 and leases(GAAP)Less PPP (79,918 ) (196,375 ) (79,918 ) (142,660 ) (201,588 ) (167,639 ) (196,375 )loansoutstandingPortfolio $ 1,823,337 $ 1,688,030 $ 1,823,337 $ 1,799,847 $ 1,745,862 $ 1,698,322 $ 1,688,030 loans(Non-GAAP)Add: fair 4,230 7,365 4,230 4,634 5,302 6,454 7,365 value marks Portfolioloans + $ 1,827,567 $ 1,695,395 $ 1,827,567 $ 1,804,481 $ 1,751,164 $ 1,704,776 $ 1,695,395 fair valuemarks(Non-GAAP) Allowance +fair valuemarks as a% ofportfolio 1.24 % 1.48 % 1.24 % 1.27 % 1.35 % 1.50 % 1.48 %loans andleases +fair valuemarks(Non-GAAP) HOWARD BANCORP, INC. AND SUBSIDIARYGAAP TO NON-GAAP RECONCILIATION - NET INTEREST MARGIN(inthousands) FOR THE NINE MONTHS ENDED FOR THE THREE MONTHS ENDED

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

2021 2020 2021 2021 2021 2020 2020

Netinterest $ 59,657 $ 53,917 $ 19,887 $ 20,082 $ 19,688 $ 19,686 $ 18,272 income(GAAP) Averageearning 2,358,997 2,226,705 2,376,513 2,374,712 2,325,198 2,309,928 2,305,205 assets(GAAP) Netinterest 3.38 % 3.23 % 3.32 % 3.39 % 3.43 % 3.39 % 3.15 %margin(GAAP) Netinterest 59,657 53,917 $ 19,887 $ 20,082 $ 19,688 $ 19,686 $ 18,272 income(GAAP)Less netaccretionof netfair value (1,743 ) (1,216 ) (402 ) (616 ) (725 ) (888 ) (548 )discountsonacquiredloansLess PPPnetinterestincome (5,298 ) (1,840 ) (1,635 ) (1,621 ) (2,042 ) (1,633 ) (1,038 )(impliedcost offunds at0.35%)Operatingnet $ 52,616 $ 50,861 $ 17,850 $ 17,845 $ 16,921 $ 17,165 $ 16,686 interestincome(Non-GAAP) Averageearning 2,358,997 2,226,705 2,376,513 2,374,712 2,325,198 2,309,928 2,305,205 assets(GAAP)Add netfair valuediscounts 5,110 8,380 4,471 4,918 5,956 6,921 7,696 onacquiredloansLess PPP (159,746 ) (113,070 ) (115,743 ) (177,546 ) (186,728 ) (186,267 ) (195,588 )loansOperatingaverage $ 2,204,361 $ 2,122,015 $ 2,265,241 $ 2,202,084 $ 2,144,426 $ 2,130,582 $ 2,117,313 earningassets(Non-GAAP) Operatingnet 3.19 % 3.20 % 3.13 % 3.25 % 3.20 % 3.21 % 3.14 %interestmargin(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/20211020005118/en/

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