Howard Bancorp, Inc. (the "Company"), the parent company of Howard Bank, today announced that it has received an investment of $12.5 million in the Company's preferred stock from the United States Department of the Treasury under the Small Business Lending Fund (the "SBLF"). The SBLF is a program created by the US Treasury exclusively for qualifying community banks and is intended to encourage small business lending by providing Tier 1 capital to those qualified banks at favorable rates.
Simultaneously with the receipt of the SBLF funds, the company redeemed the full balance of $6.3 million of shares of preferred stock issued to the Treasury under the U S Treasury Capital Purchase Program (the "CPP"). The resulting net increase of approximately $6.2 million of additional capital will support Howard Bancorp’s continued growth.
Mary Ann Scully, Chairman and CEO stated "The types of small business lending targeted by the SBLF program represent a significant portion of Howard Bank’s loan portfolio, as well as being the primary focus of our projected growth. This capital will bolster our increased lending to the small to medium sized businesses in the Greater Baltimore marketplace and we look forward to continuing to support local businesses as they successfully navigate through these difficult economic times. At a time when many are projecting nothing but difficult times ahead, Howard Bancorp still believes in our Greater Baltimore regional economy and the business owners that, at the end of the day, will be the ones who move forward and lead the economic upturn. We are now better prepared than ever to support their endeavors and through them our local economy. In addition, the increased capital not only enhances our already strong balance sheet and our regulatory capital ratios, which are already well in excess of the required minimums, but it also supports our strategic growth and expansion goals.”