Message from the CEO



In 2005 Harbor Bankshares Corporation, (The "Corporation"), and its primary subsidiary The Harbor Bank of Maryland (The "Bank"), focused on enhancing visibility and profitability.  I am happy to report that these efforts resulted in record growth levels in both assets and earnings.  Harbor Bankshares assets grew 9% ($21 million) to $256.6 million.  The Corporation earned $1.9 million, a $421 thousand increase, or 29% when compared to the $1.5 million earned in 2004.

The Bank's enhanced marketing initiatives included participating in key events such as the African-American Heritage Festival, the Maryland Mentoring Partnership's Annual MentorZing, and several programs where we partnered with the City of Baltimore to provide computers to low-income city residents.

2005 highlights also include completing the renovation of our headquarters located at 25 West Fayette Street, and opening the branch in the new $350 million University of Maryland Westside BioPark.  This step is significant because we are now in the position to be a part of the redevelopment of the Poppleton community and an emerging Bio Tech industry simultaneously, helping the future of the Corporation look bright.

In fact, we believe we are uniquely positioned as the premier urban-based financial services provider in Maryland.  Our solid knowledge of faith-based lending, small business loans, and commercial real estate financing gives us a competitive advantage in the market.  With your support, our continued success is assured.

Sincerely,


Joseph Haskins, Jr.
Chairman, President & CEO