Risk-Based Capital

9 Months Ended

Sep. 30, 2012

Risks and Uncertainties [Abstract]

Concentration Risk Disclosure [Text Block]

Note 9: Risk-Based Capital

The Federal Deposit Insurance Corporation Improvement Act of 1991 (“FDICIA”) required that the federal regulatory agencies adopt regulations defining five capital tiers for banks: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized and critically undercapitalized. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Quantitative measures, established by the regulators to ensure capital adequacy, require that the Bank and Bancorp maintain minimum ratios (set forth below) of capital to risk-weighted assets. Under the guidelines, capital is compared to the relative risk related to the balance sheet. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.

Management believes that, as of September 30, 2012 and December 31, 2011 the Bank met all capital adequacy requirements to which it is subject.

											To be well
											capitalized under
											the FDICIA
						For capital					prompt corrective
	Actual					adequacy purposes					action provisions
(dollars in thousands)	Amount		Ratio			Amount		Ratio			Amount		Ratio
As of September 30, 2012: (unaudited)
Total capital (to risk-weighted assets)
Howard Bank	$	39,196		12.79	%	$	24,525		8.00	%	$	30,656		10.00	%
Howard Bancorp	$	48,974		15.83	%	$	24,742		8.00	%		N/A
Tier 1 capital (to risk-weighted assets)
Howard Bank	$	36,466		11.90	%	$	12,262		4.00	%	$	18,394		6.00	%
Howard Bancorp	$	46,241		14.95	%	$	12,371		4.00	%		N/A
Tier 1 capital (to average assets)
(Leverage ratio)
Howard Bank	$	36,466		10.10	%	$	14,448		4.00	%	$	18,060		5.00	%
Howard Bancorp	$	46,241		12.79	%	$	14,457		4.00	%		N/A
As of December 31, 2011:
Total capital (to risk-weighted assets)
Howard Bank	$	38,172		13.75	%	$	22,214		8.00	%	$	27,768		10.00	%
Howard Bancorp	$	40,127		14.36	%	$	22,349		8.00	%		N/A
Tier 1 capital (to risk-weighted assets)
Howard Bank	$	34,739		12.51	%	$	11,107		4.00	%	$	16,661		6.00	%
Howard Bancorp	$	36,694		13.14	%	$	11,174		4.00	%		N/A
Tier 1 capital (to average assets)
(Leverage ratio)
Howard Bank	$	34,739		10.92	%	$	12,725		4.00	%	$	15,907		5.00	%
Howard Bancorp	$	36,694		11.52	%	$	12,737		4.00	%		N/A

The Bank is currently prohibited from paying dividends without the prior approval of the Commissioner.