1. SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS Some of the matters discussed in this presentation include forward-looking statements. These forward-looking statements include statements regarding reducing losses, obtaining profitability, liquidity, and allowance for loan losses, interest rate sensitivity, market risk and financial and other goals. Forward-looking statements often use words such as “believe,” “expect,” “plan,” “may,” “will,” “should,” “project,” “contemplate,” “anticipate,” “forecast,” “intend” or other words of similar meaning. You can also identify them by the fact that they do not relate strictly to historical or current facts. The forward-looking statements we use in this offering circular are subject to significant risks, assumptions and uncertainties, including among other things, the following important factors that could affect the actual outcome of future events: Loss of key personnel; Fluctuations in market rates of interest and loan and deposit pricing, which could negatively affect our net interest margin, asset valuation and income and expense projections; Charge-offs in our loan portfolio; Adverse changes in the overall national economy as well as adverse economic conditions in our specific market area; Competitive factors within the financial services industry; and Changes in regulatory requirements and/or restrictive banking legislation. Because of these and other uncertainties, our actual results and performance may be materially different from results indicated by these forward-looking statements. You should not put undue reliance on any forward-looking statements. We caution you that the above list of important factors is not exclusive, and these and other factors are discussed in more detail in the “Risk Factors” section of this offering circular. These forward-looking statements are made as of the date of the offering circular and we undertake no obligation to update these forward-looking statements to reflect the impact of any circumstances or events that arise after the date the forward-looking statements were made.

2. Comparative Quarterly Summary Data

3. Annual Shareholders Meeting May 17,2006

4. 3 The ONLY Locally owned, Locally managed, Independent bank, Headquartered in Howard County Growing a Bank in Howard County

5. 4 A significant opportunity is being realized for a new Howard County headquartered and Howard County focused Bank Opportunity

6. 5 Shareholder Focused Initiatives Capital Infrastructure $5.9MM in additional capital Formation of Bancorp holding company to provide further capitalization flexibility Stock Split Engagement of Transfer Agent Engagement of Market Makers Listing on OTC Bulleting Board - HBMD.ob Investor Relations Web Link

7. 6 Long Term Shareholder Value Driven Forward Looking Investments in Resources and Infrastructure that Deliver and Support: Customer Acquisition, Expansion and Retention Quality Loan Portfolio - Size and Mix Optimal Funding Mix

8. 7 Checking Account Growth (# of Accounts)

9. 8 Money Market, Savings & CD Growth (# of Accounts)

10. 9 Deposit Composition (Balances)

11. 10 Loan & Line Growth (# of Accounts)

12. 11 Loan Composition (Balances)

13. 12 Revenue vs Expense Trends

14. 13 Asset Growth

15. 14 Net Interest Margin and Loan Trends

16. 15 Infrastructure Accomplishments Physical presence Two Branches today – –Snowden River Branch –Hickory Ridge Doubling to Four Branches by Spring 2007 –Maple Lawn (September 2006) –Centennial Place (Spring 2007)

17. 16 Commercial Product Array Community Business Business Relationship Business Solutions 4:00 cutoff Free courier Hands On Evaluator Online Banking Online Wire Transfers ACH Origination IOLTA MAHT Positive Pay Lockbox Sweeps

18. 17 Commercial Product Array Commercial construction Mini perm financing Receivables financing - commercial and government SBA 7a, SBA Express, SBA 504, Preferred Lending status Renaissance Loan Fund Retirement planning – SEP, SIMPLE, Small 401k, deferred compensation, SERP Succession planning - key man

19. 18 Personal Product Array Free Super Checking Relationship Checking Maximum Checking ATM surcharge rebate Online Banking Web BillPay Single settlement construction loan program Prime -1/4% HELOC Public Servant Loan program UVest/Pershing partnership

20. 19 Why Refer Howard Bank Focus of “Megabanks” de-emphasizes personal contact and customer service Smaller Howard County banks have not addressed the more sophisticated needs of Howard County’s growing business and professional population. An “Opportunity Gap” is created Our Execution & Delivery – “Hands On” – provides differentiation

21. 20 Referral Guide Differentiated Delivery Requires – Convenient face-to-face advice, supplemented by competitive technology - Howard Bank has 11 full time business developers offering a full product array, functionality & price competitiveness Expert advisors knowledgeable about the local market and the full range of financial services solutions - Each Howard Bank branch or commercial relationship manager has lived and / or worked in Howard County and brings connections to the portfolios of 7 competitors Customized solutions tailored to the customer - Howard Bank uses sophisticated business evaluation & financial planning tools as well as unique loan programs

22. 21 Referral Guide Differentiated Delivery Requires – Service offerings that eliminate inconveniences for the clients - Howard Bank offers 4:00 same day deposits, free local courier pick-ups, Online Banking and relationship packages That every decision is made personally and locally – Howard Bank has one organizational level between the customer relationship manager and the CEO as well as TWO weekly loan committees

23. 22 Best Practice The best performing de novo community banks take pride in saying: “Every day, I get a referral from one of my shareholders.”