ERNST & YOUNG LLP


August 18, 1997



Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C.  20549

Dear Sir or Madam:

We have read Item 4 of Form 8-K dated  August  18,  1997,  of Harbor  Bankshares
Corporation and are in agreement with the statements contained in paragraphs two
through  five on page one  therein.  We have no basis to agree or disagree  with
other statements of the registrant contained herein.
                                                   

                                                       /s/ Ernst & Young LLP