Access ID   [?]   Request New ID

Select Service
Personal Online Banking
Harbor Biz Net Banking

Message from the CEO



March 31, 2014



Dear Shareholder:


Harbor Bankshares Corporation (The Corporation) and its primary subsidiary, The Harbor Bank of Maryland (The Bank) continue to make progress.  The Corporation continued to post positive net income.


Our work in 2013 resulted in other worthy accomplishments. The Corporation’s written agreement was lifted by The Federal Reserve Bank (FRB); and, The Bank’s Consent Order was lifted by The Federal Deposit Insurance Corporation (FDIC).  These are key achievements for the institution because it reflects, in part, our improved financial soundness. Although earnings were down, and increased regulatory oversight remains an industry concern, prosperity is anticipated in the near future.


The Corporation has two of the U.S. Treasury Department’s certified Community Development Financial Institutions (CDFIs) in our market.  Both The Corporation and The Bank hold this designation and our commitment to development in the distressed communities within the Baltimore-Washington metropolitan area is highly evident.  The CDFI Fund’s Bank Enterprise Award (BEA) Program continues to recognize our activities and our excellence in the mission of supporting under served communities by presenting The Bank awards in consecutive years totaling in excess of $1.5MM in income.  This makes our institution and the market we serve stronger and poised for further growth in 2014 and beyond.


There is great optimism as the organization has established itself as a pioneering and innovative financial institution primarily serving the urban community.  Our significance as a community developer can be seen by being the first financial institution to invest in and/or initiate development in some of what are now the most promising areas in the Baltimore Metropolitan area (i.e. Inner Harbor East, Canton and East Baltimore).


The Corporation has also been innovative in utilizing the CDFI Funds New Market Tax Credits program and has used the  $141 million awarded from this fund to leverage over $800 million in urban development.  These public-private partnership efforts have included the Federal, State and Local governments and the private sector.  Our most recent transaction led to the building of Elmer Henderson Elementary School, a new $60MM school in East Baltimore. 


The Corporation’s commitment to technology has provided our customers the ability to use their computers to conduct banking business from their homes and offices on their schedule, following a growing trend in the industry.  Our goal is to make the best proven technology accessible to our customers.


As the economy continues to improve, Harbor Bankshares Corporation and The Harbor Bank of Maryland are well-positioned to prosper.  Accordingly, we will continue to develop products and services that best address the needs of our market and provide the best opportunities for attractive returns to our shareholders.


Thank you for your continued support.






Joseph Haskins, Jr.

Chairman, President & CEO