The company, which sold the business to a group of former employees, will shut down its operation this quarter.
While the Maryland company claimed it has margins and credit issues under control, it couldn't provide any clarity on rising legal expenses.
Susan Riel succeeded Ronald Paul as CEO of the Maryland bank shortly before questions surfaced about credit quality and lending practices.
Howard Bancorp is planning a big push in CRE lending, first in its hometown of Baltimore and eventually in Washington.
Such credits, which reflect borrowers with financial challenges, increased significantly during the third quarter.
The Maryland company agreed to acquire Rembert Pendleton Jackson, which has $1.3 billion in assets under management.
A second activist investor is pushing the company's board to find a buyer.
The Maryland company says two recent deals, including its agreement to buy Revere Bank, gives it the right amount of coverage across Washington's suburbs.
The company will add nearly a dozen branches in the Maryland suburbs of Washington.
Driver Management said it believes the company would create more shareholder value by finding a buyer.
