Howard Bancorp, Inc. Announces Annual and Fourth Quarter 2006 Results.

ELLICOTT CITY, Md. -- Howard Bancorp, Inc. (OTC, Electronic Bulletin Board: HBMD), the parent company of Howard Bank, today reported a 70% reduction in its annual net loss in 2006 with a loss incurred of $746 thousand compared to a $2.5 million loss reported for the year 2005. Net loss per share for 2006 was $0.33, a 76% decrease versus the $1.39 loss per share for 2005. Adjusted weighted average shares outstanding increased from 1.82 million for the year ended December 31, 2005 to 2.24 million for the year ended December 31, 2006.

As anticipated, the profitable third quarter announced in October 2006 was followed by a fourth quarter loss of $230 thousand, a result of the full quarterly expense impact of the Company's third branch opened in the last week of the third quarter, increased marketing and promotion activities supporting the branch rollout and a larger loan loss provision resulting from higher loan growth in the fourth quarter. Despite these higher costs, the net loss for the quarter ended December 31, 2006 was a 26% improvement over the net loss for the same period in 2005.

Chairman and CEO Mary Ann Scully stated: "We are pleased with our operating results for 2006. Loan growth was strong and originated with those local client segments most consistent with our strategy of differentiating ourselves in the small business marketplace. Our credit quality is superior and we continue to allocate a high percentage of our capital to better performing loan assets and to growing our market share with very selective investments in our infrastructure. This has allowed our revenue growth to progress nicely in spite of the challenges presented by the flattening of the yield curve and the related competitive rate pressures on attracting deposits. We are proud of our first quarterly profit for the third quarter which was in line with our initial projections for a two branch delivery network. And our annual loss has significantly declined at the same time that we have, as promised, expanded our delivery convenience and market reach with the opening of our third branch in the very attractive and fast growing neighborhood of Maple Lawn."

At December 31, 2006, total assets of $147.7 million increased by $53.6 million or 57% compared to assets of $94.1 million at December 31, 2005, and grew by $15.5 million or 12% compared to assets at the end of the third quarter. Total loans ended the year at $120.0 million compared to $69.2 million at December 31, 2005, representing loan growth of $50.8 million or 73%. Fourth quarter 2006 growth in loans was $13.7 million or 13% compared to September 30, 2006 loans of $106.4 million. Funding for the loan growth came primarily from deposits which grew by $47.3 million or 62% throughout 2006 to end at $123.0 million for December 31, 2006 versus $75.7 million at the end of 2005. At the end of the third quarter of 2006 total deposits were $109.0 million resulting in fourth quarter 2006 deposit growth of $14.1 million or 13%. Additional customer related funding was provided by the introduction of a customer repurchase agreement product, and the debt incurred at the holding company.

During the fourth quarter of 2006, Howard Bancorp, Inc., the parent company of Howard Bank, executed a credit facility. The net proceeds of the holding company's borrowing were invested as additional capital into Howard Bank to facilitate its continued growth. Upon receipt of the additional capital, the Bank was able to increase the maximum amount that it may lend to any one borrower, thus permitting the Bank to increase the level of outstanding loans. Howard Bancorp, Inc. also commenced a private placement offering for accredited investors to issue up to 365,000 shares which could add approximately $5 million in additional capital. The initial proceeds of this offering will reduce the borrowing and any remaining proceeds will be invested as additional capital into the Bank.

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

Additional information is available at www.howardbank.com.

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