FORM 10-QSB
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
__________________________________________________
For quarter ended September 30, 2002
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Commission file number 0-20990
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Harbor Bankshares Corporation
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(Exact name of registrant as specified in its charter)
Maryland 52-1786341
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(State of other jurisdiction of (IRS Employer identification No.)
incorporation or organization)
25 W. Fayette Street, Baltimore, Maryland 21201
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(Address of principal executive offices) (Zip code)
(410) 528-1800
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Registrant's telephone number, including area code
Not Applicable
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Former name, address and former fiscal year, if changed since last report.
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter periods that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
X YES ___ NO
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Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practical date.
Common stock, non-voting, $.01 Par value - 33,795 shares as of September 30,
2002.
Common stock, $.01 Par value - 697,980 shares as of September 30, 2002.
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HARBOR BANKSHARES CORPORATION AND SUBSIDIARY
INDEX
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PART I FINANCIAL INFORMATION
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Item 1 Financial Statements
Consolidated Statements of Condition - September 30, 2002
(Unaudited) and December 31, 2001
Consolidated Statements of Income, (Unaudited) - Three months
Ended September 30, 2002 and 2001
Consolidated Statements of Income, (Unaudited) - Nine months
Ended September 30, 2002 and 2001
Consolidated Statement of Cash Flows (Unaudited) - Nine months
Ended September 30, 2002 and 2001
Notes to Unaudited Consolidated Financial Statements
Item 2 Management's Discussion and Analysis of Financial Condition
and Results of Operations
PART II OTHER INFORMATION
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Item 1 Legal Proceedings
Item 2 Changes in Securities
Item 3 Defaults upon Senior Securities
Item 4 Submission of Matters to a Vote of Security Holders
Item 5 Other Information
Item 6 Exhibits and Reports on Form 8-K
SIGNATURES
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HARBOR BANKSHARES CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CONDITION
September 30, December 31
2002 2001
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(Unaudited)
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Dollars in Thousands
ASSETS
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Cash and Due from Banks $ 5,967 $ 6,992
Interest Bearing Deposits in Other Banks 2,400 1,162
Investment Securities:
Held to maturity (market values of $2,190
as of September 30, 2002 and $2,121
as of December 31, 2001) 2,059 2,064
Available for Sale 52,029 48,932
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Total Investment Securities 54,088 50,996
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Federal Funds Sold 16,703 10,553
Loans (Net of unearned income) 112,906 106,807
Allowance for Loan Losses (1,013) (960)
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Net Loans 111,893 105,847
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Property and Equipment - Net 1,047 996
Other Real Estate Owned 14 14
Intangible Assets 2,998 2,506
Accrued Interest Receivable and Other Assets 7,542 7,520
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TOTAL ASSETS $ 202,652 $ 186,586
========= =========
LIABILITIES
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Deposits:
Non-Interest Bearing Demand $ 25,153 $ 19,979
Interest Bearing Transaction Accounts 22,894 21,206
Savings 81,732 75,330
Time, $100,000 or more 25,769 29,222
Other Time 30,742 25,795
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Total Deposits 186,290 171,532
Accrued Interest and Other Liabilities 650 813
Notes Payable 1,978 2,000
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TOTAL LIABILITIES 188,918 174,345
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STOCKHOLDERS' EQUITY
Common stock, non voting, - par value $.01 per share:
Authorized 10,000,000 shares; at 697,980 at September
30, 2002 and 688,632 at December 31, 2001 and 33, 795
common non-voting at September 30, 2002 and 33,333 at
December 31, 2001 7 7
Capital Surplus 6,986 6,986
Retained Earnings 6,296 5,538
Accumulated other comprehensive income (deficit) 445 (290)
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TOTAL STOCKHOLDERS' EQUITY 13,734 12,241
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TOTAL LIABILITIES & STOCKHOLDERS'
EQUITY $ 202,652 $ 186,586
========= =========
See Notes to Unaudited Consolidated Financial Statements
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HARBOR BANKSHARES CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
Nine Months Ended
September 30,
2002 2001
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(Unaudited)
In Thousands
Except per Share Data
INTEREST INCOME:
Interest and Fees on Loans $ 6,787 $ 7,024
Interest on Investment Securities (Taxable) 1,653 2,836
Interest on Deposits in Other Banks 44 33
Interest on Federal Funds Sold 220 660
Other Interest Income 24 32
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TOTAL INTEREST INCOME 8,728 10,585
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INTEREST EXPENSE
Interest on Deposits:
Savings 883 2,185
Interest Bearing Transaction Accounts 44 111
Time $100,000 or More 702 1,313
Other Time 876 1,191
Interest on Borrowed Funds --- 9
Interest on Notes Payable 107 106
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TOTAL INTEREST EXPENSE 2,612 4,915
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NET INTEREST INCOME 6,116 5,670
Provision for Loan Losses 258 300
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NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES 5,858 5,370
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NON-INTEREST INCOME:
Service Charges on Deposit Accounts 683 742
Other Income 623 699
Gain on Sale of Loans 35 34
CDF/Awards --- 229
Gains on Available for Sale Securities 226 95
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Total Non-Interest Income 1,567 1,799
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NON-INTEREST EXPENSES
Salaries and Employee Benefits 3,034 2,973
Occupancy Expense of Premises 588 587
Equipment Expense 364 504
Data Processing Expense 735 698
Amortization of Intangible Assets 275 248
Other Expenses 1,365 1,331
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Total Non-Interest Expenses 6,361 6,341
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INCOME BEFORE INCOME TAXES 1,064 828
Applicable Income Taxes 303 260
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NET INCOME $ 761 $ 568
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BASIC EARNINGS PER SHARE $ 1.04 $ .80
DILUTED EARNINGS PER SHARE $ 1.01 $ .78
AVERAGE COMMON SHARES
OUTSTANDING 730 702
See notes to unaudited consolidated Financial Statements
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HARBOR BANKSHARES CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
Nine Months Ended
September 30,
2002 2001
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(Unaudited)
In Thousands
Except per Share Data
INTEREST INCOME:
Interest and Fees on Loans $ 2,278 $ 2,253
Interest on Investment Securities (Taxable) 572 958
Interest on Deposits in Other Banks 20 11
Interest on Federal Funds Sold 50 149
Other Interest Income 7 24
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TOTAL INTEREST INCOME 2,927 3,395
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INTEREST EXPENSE:
Interest on Deposits:
Savings 307 619
Interest Bearing Transaction Accounts 19 35
Time $100,000 or More 211 414
Other Time 302 361
Interest on Notes Payable 37 36
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TOTAL INTEREST EXPENSE 876 1,465
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NET INTEREST INCOME 2,051 1,930
Provision for Loan Losses 83 100
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NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES 1,968 1,830
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NON-INTEREST INCOME:
Service Charges on Deposit Accounts 233 234
Other Income 198 209
Gain on Sale of Loans 12 29
CDF/Awards --- 229
Realized Gains on Available for Sale Securities 198 49
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Total Non-Interest Income 641 750
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NON-INTEREST EXPENSES
Salaries and Employee Benefits 998 977
Occupancy Expense of Premises 208 198
Equipment Expense 113 162
Data Processing Expense 280 235
Amortization of Intangible Assets 99 82
Other Expenses 488 506
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Total Non-Interest Expenses 2,186 2,160
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INCOME BEFORE INCOME TAXES 423 420
Applicable Income Taxes 125 135
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NET INCOME $ 298 $ 285
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BASIC EARNINGS PER SHARE $ .41 $ .39
DILUTED EARNINGS PER SHARE $ .39 $ .38
AVERAGE COMMON SHARES
OUTSTANDING 733 702
(See notes to unaudited consolidated Financial Statements)
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HARBOR BANKSHARES CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
Nine Months Ended
September 30,
2002 2001
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(Unaudited)
In Thousands
OPERATING ACTIVITIES:
Net Income $ 761 $ 568
Adjustments to Reconcile Net Income to Net Cash
And Cash Equivalents Provided by (Used in)
Operating Activities:
Depreciation and Amortization 611 703
Origination of Loans Held for Sale (2,689) (2,150)
Proceeds from the Sale of Loans Held for Sale 2,724 2,184
Gains on sale of loans (35) (34)
Gains on sale of securities (226) (95)
Provision for Loan Losses 258 300
Increase in Interest Receivable and Other Assets (514) 98
Decrease in Interest Payable and Other Liabilities (185) (110)
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Net Cash (Used in) Provided by Operating Activities 705 1,464
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INVESTING ACTIVITIES
Net Decrease in Deposits in Other Banks (1,238) (553)
Purchase Investment Securities Held to Maturity --- (2004)
Purchase of Investments Securities Available for Sale (35,411) (29,914)
Proceeds from Securities called 19,350 13,000
Proceeds from sale of Investment Securities
Available for sale 13,227 13,315
Net (Increase) Decrease in Loans (5,857) 9,178
Purchase of Premises and Equipment (387) (159)
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Net Cash (Used in) Provided by Investing Activities (10,316) 2,863
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FINANCING ACTIVITIES
Net Increase in Non-Interest Bearing
Transaction Accounts 5,174 2,431
Net Increase in Interest Bearing
Transaction Accounts 1,691 2,994
Net (Decrease) Increase in Savings Deposits 6,402 (867)
Net Increase in Time Deposits 1,494 1,970
Payment of Cash Dividends (3) ---
Payment of Notes Payable (22) ---
Sale of Common Stock --- 485
Short Term Borrowings --- (2,000)
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Net Cash Provided by Financing Activities 14,736 5,013
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Increase in Cash and Cash Equivalents 5,125 9,340
Cash and Cash Equivalents at Beginning of Period 17,545 5,223
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Cash and Cash Equivalents at End of Period $ 22,670 $ 14,563
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(See notes to unaudited consolidated Financial Statements)
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HARBOR BANKSHARES CORPORATION AND SUBSIDIARY
Notes to Unaudited Consolidated Financial Statements
September 30, 2002
Note 1 - Basis of Presentation
Substantially all of the assets, liabilities and operations of Harbor
Bankshares Corporation (the "Company") are attributable to its wholly
owned subsidiaries, Harbor Bank and Harbor Financial Services. The
accompanying unaudited consolidated financial statements include the
accounts of the Company, Harbor Bank and Harbor Financial Services.
The statements have been prepared in accordance with accounting
principles generally accepted in the United States of America for
interim financial information and the instructions to Form 10-QSB.
Accordingly, they do not include all of the information and footnotes
required by accounting principles generally accepted in the United
States of America for complete financial statements. In the opinion of
management, the unaudited consolidated financial statements include
all adjustments (consisting of normal, recurring accruals) considered
necessary for a fair presentation of financial position, results of
operations and cash flows for the interim periods.
The preparation of the financial statements in conformity with
accounting principles generally accepted in the United States of
America requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure
of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during
the reporting period. Actual results could differ from those
estimates.
Results of operations for the three and nine months ended September
30, 2002 are not necessarily indicative of the results to be expected
for the full year ending December 31, 2002. These unaudited
consolidated financial statements should be read in conjunction with
the consolidated financial statements, accounting policies and
financial notes thereto included in the Company's 2001 Form 10-KSB
filed with the Securities and Exchange Commission.
Certain reclassifications of 2001's amounts have been made to conform
to current year presentation. Such reclassifications had no effect on
net income.
Note 2 - Comprehensive Income
Comprehensive income is defined as the change in equity from
transactions and other events and circumstances from non-owner
sources.
Presented below is a reconciliation of net income to comprehensive
income indicating the component of other comprehensive income:
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HARBOR BANKSHARES CORPORATION AND SUBSIDIARY
Nine Months Ended September 30,
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2002 2001
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Net Income $ 761 $ 568
- Other Comprehensive Income:
Unrealized Holding Gains
Arising During the period 900 615
- Less: Reclassified Adjustments for
gains included in Net Income (226) (95)
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Other Comprehensive Income Before
Taxes 674 520
Income Tax Expense Related to
items of Other Comprehensive Income 229 177
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Other Comprehensive Income 445 343
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Comprehensive Income $ 1,206 $ 911
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Note 3 - Per Share Data
Basic net income per common share are determined by dividing net
income by the weighted average of shares of common stock outstanding
giving retroactive effect to any stock dividends and splits declared.
Diluted earnings per share is determined by adjusting average shares
of common stock outstanding by the potentially dilutive effects of
stock options outstanding. The dilutive effects of stock options are
computed using the "treasury stock" method.
The following table presents a summary of per share data and amounts for the
period indicated:
Nine Months Ended Three Months Ended
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Sept 30, Sept 30, Sept 30, Sept 30,
2002 2001 2002 2001
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Basic:
Net income applicable to common stock $ 761,617 $ 568,215 $ 298,530 $ 285,304
========== ========== ========== ==========
Average common shares outstanding 729,844 710,095 732,775 731,210
========== ========== ========== ==========
Basic net income per share $ 1.04 $ .80 $ .41 $ .39
========== ========== ========== ==========
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HARBOR BANKSHARES CORPORATION AND SUBSIDIARY
Diluted:
Net income applicable to common stock $761,617 $568,215 $298,530 $285,304
======== ======== ======== ========
Average common shares outstanding 729,844 710,095 732,775 731,210
Stock option adjustment 23,263 18,520 23,263 22,932
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Diluted average common shares outstanding 753,107 728,615 756,038 754,142
======== ======== ======== ========
Diluted net income per share $ 1.01 $ .78 $ .39 $ .38
======== ======== ======== ========
Average common shares outstanding for 2001 have been adjusted to reflect a stock
dividend paid in March 2002.
Note 4 - New Accounting Pronouncements
On January 1, 2002, the Company adopted Statement of Financial Standards
(SFAS) No. 142, "Goodwill and Other Intangible Assets." SFAS No. 142
provides that goodwill shall not be amortized but should be tested for
impairment on an annual basis, using criteria prescribed in the statement.
If the carrying amount of goodwill exceeds its implied fair value, as
recalculated, an impairment loss equal to the excess shall be recognized.
Recognized intangible assets other than goodwill should be amortized over
their useful lives and reviewed for impairment in accordance with SFAS No.
144, "Accounting for Impairment or Disposal of Long-Lived Assets".
The Company's intangible assets at September 30, 2002 are classified as
"intangible assets other than goodwill" and primarily represent the
unamortized intangible related to the Company's acquisitions of branch
offices from other banks. At September 30, 2002, the carrying amount of
this intangible was $3.0 million, and is being amortized on a straight line
basis in accordance with SFAS No. 72, "Accounting for Certain Acquisitions
of Banking or Thrift Institutions", which was not superseded by SFAS No.
142.
On October 1, 2002, the Financial Accounting Standards Board issued SFAS
No. 147, "Acquisitions of Certain Financial Institutions," which amends
certain provisions of SFAS No. 72, SFAS No. 144, and FASB Interpretation
No. 9. SFAS No. 147 removes acquisitions of financial institutions from the
scope of SFAS No. 72 and requires that such acquisitions be accounted for
in accordance with SFAS No. 141, "Business Combinations." If the
acquisition meets the definition of a business combination, it shall be
accounted for by the purchase method in accordance with the provisions of
SFAS No. 141. Any goodwill that results will be accounted for in accordance
with the provisions of SFAS No. 142. If the acquisition does not meet the
definition of a business combination, the cost of the assets acquired shall
be allocated to the individual assets acquired and liabilities assumed
based on their relative fair values and shall not give rise to goodwill.
In addition, this proposed statement would amend SFAS No. 144 to include in
its scope long-term customer-relationship intangible assets of financial
institutions such as depositor and borrower relationship intangible assets
and credit cardholder intangible assets. Accordingly, those intangible
assets would be subject to the same undiscounted cash flow recoverability
tests and impairment loss recognition and measurement provisions that SFAS
No. 144 requires for long-term tangible assets and other finite-lived
intangible assets that are held and used.
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HARBOR BANKSHARES CORPORATION AND SUBSIDIARY
Existing unidentifiable intangible assets, as that term is defined in SFAS
No. 72, previously recognized under the provisions of SFAS No. 72 shall
continue to be amortized (consistent with the existing clarifying
provisions of Emerging Issue Task Force Topic D-100) unless the transaction
in which the intangible asset arose meets the definition of a business
combination.
Management does not believe its branch office acquisition meets the
definition of a business combination and intends to continue amortizing the
intangible assets, subject to periodic review for impairment and its
estimated useful lives.
In June 2001, the Financial Accounting Standards Board issued SFAS No. 143,
"Accounting for Asset Retirement Obligations", ("Statement 143"), which
addresses financial accounting and reporting for legal obligations
associated with the retirement of tangible long-lived assets and the
associated asset retirement costs. Statement 143 is effective for fiscal
years beginning after June 15, 2002. This Statement is not expected to have
a material impact on the Company's financial statements
In August 2001, the FASB issued SFAS No. 144, Accounting for Impairment of
Long-Lived Assets ("Statement 144"), which supersedes SFAS No. 121,
"Accounting for the Impairment of Long-Lived Assets and for Long-Lived
Assets to Be Disposed Of" ("Statement 121") and the accounting and
reporting provisions of APB No. 30, "Reporting the Results of Operations -
Reporting the Effects of Disposal of a Segment of a Business, and
Extraordinary, Unusual and Infrequently Occurring Events and Transactions,"
for the disposal of a segment of a business. While Statement 144 retains
many of the fundamental provisions of Statement 121, it establishes a
single accounting model for long-lived assets to be disposed of by sale,
and resolves certain implementation issues not previously addressed by
Statement 121. Statement 144 is effective for fiscal years beginning after
December 15, 2001. This Statement did not have a material impact on the
Company's financial statements.
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HARBOR BANKSHARES CORPORATION AND SUBSIDIARY
Part I. FINANCIAL INFORMATION
Item II. Management's Discussion and Analysis of Financial Condition
and Results of Operations
Harbor Bankshares Corporation earnings for the third quarter of 2002,
totaled $298 thousand, an increase of $13 thousand or 4.6 percent when
compared to the third quarter of 2001. The third quarter of 2001,
included a $229 thousand award from the CDFI Fund. There was no award
reflected in the 2002 third quarter earnings. Net interest income
increased by $121 thousand or 6.3 percent. Non-interest income
decreased by $109 thousand or 14.5 percent mainly due to the CDFI
award mentioned above. Included in the non-interest income for 2002,
are gains on available for sale securities of $198 thousand.
Non-interest expense for the quarter increased by $26 thousand or 1.2
percent. The provision for loan losses decreased by $17 thousand or
17.0 percent.
Year to date earnings as of September 30, 2002, were $761 thousand,
reflecting an increase of $193 thousand or 34.0 percent when compared
to the same period for 2001. The earnings increase is principally
attributed to the re-pricing of liabilities, which decreased the cost
of funds substantially. Return on Average Assets (ROAA) and Return on
Average Equity (ROAE) were .52 percent and 7.80 percent respectively.
Net interest income increased by $446 thousand or 7.9 percent when
compared to the same period of the prior year. The increase in net
interest income reflects a lower cost of funds due to the re-pricing
of liabilities, mainly in the time deposit category. Interest on
investment securities decreased by $1.2 million or 41.7 percent,
mainly due to the "Call" feature of some of the securities, with the
proceeds re-invested at lower rates. Interest and fees on loans also
decreased by $237 thousand or 3.4 percent due to lower interest rates,
reflecting the various rate drops experienced during the later part of
2001. Interest expense on savings accounts decreased by $1.3 million
or 59.6 percent, and the cost of time deposits decreased by $926
thousand or 37.0 percent. Both categories reflected the re-pricing due
to lower rates during 2001. Interest on notes payable, at $107
thousand, remained the same for both periods.
The provision for possible loan losses was $258 thousand as of
September 30, 2002, compared to $300 thousand for the same period the
prior year. Gross charge-offs totaled $248 thousand, commercial loan
charge-offs at $93 thousand, and installment loan charge-offs at $97
thousand, represented 37.5 percent and 39.1 percent of total gross
charge-offs respectively. Recoveries for the period were $44 thousand.
The allowance for loan losses as of September 30, 2002 was $1.0
million or .89 percent of total loans, and $873 thousand or .85
percent at the end of the comparable 2001 period. Management analyzes
the reserves for possible losses on a quarterly basis. The analysis
takes into consideration the overall loan portfolio and its underlying
collateral, the mix of loans within the portfolio, delinquency trends,
economic conditions, current and prospective trends in real estate
values, and other relevant factors. It is the opinion of management
that as of September 30, 2002, the reserve for possible loan losses is
adequate.
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HARBOR BANKSHARES CORPORATION AND SUBSIDIARY
Non-interest income decreased by $232 thousand or 12.9 percent.
Services charges on deposit accounts decreased by $59 thousand or 7.9
percent due to programs tailored to attract and retain new customers.
Other non-interest income decreased by $76 thousand or 10.9 percent.
Included in the non-interest were $159 thousand of earnings on cash
surrender value of life insurance, $206 thousand of ATM Fees, $35
thousand of gains on the sale of loans and $226 thousand on realized
gains on the sale of securities.
Fee income from the Bank's subsidiary, Harbor Financial Services, was
$50 thousand. They had net losses of $2 thousand as of September 30,
2002. There was no CDFI award reflected in the non-interest income as
of September 30, 2002. A $229 thousand award is reflected in the
non-interest income for 2001.
Non-interest expenses increased slightly by $20 thousand or .31
percent. Salary and benefits increased by $61 thousand or 2.0 percent
reflecting salary and staff increases due to a merger of a branch
facility in Baltimore County. Occupancy expenses at $588 thousand was
almost the same as of the prior year. The occupancy cost for the same
2001 period was $587 thousand.
Equipment expenses decreased by $140 thousand or 27.8 percent, mainly
attributed to lower depreciation expense. Data processing expenses
increased by $37 thousand or 5.3 percent reflecting the additional
cost related to a branch acquisition from another Bank. Intangible
assets amortization increased by $27 thousand or 10.9 percent also due
to the same acquisition.
As of September 30, 2002, investment securities reflected an increase
of $3.1 million or 6.0 percent when compared to the investment
reflected as of December 31, 2001. Net loans also increased by $6.0
million or 5.7 percent and Federal Fund sold increased by $6.2 million
or 58.3 percent.
Total deposits were $186 million reflecting an increase of $14.7
million or 8.6 percent when compared to year-end 2001. The increase
was basically due to the acquisition of a branch facility in Baltimore
County, on April 29, 2002. The total deposits obtained through this
acquisition totaled $18.8 million, a premium of 4.0 percent or $751
thousand was paid for the deposits. Non-interest bearing deposits
increased by $5.2 million or 25.9 percent, while interest bearing
transaction accounts increased by $1.7 million or 7.9 percent. Savings
deposits grew by $6.4 million or 8.5 percent. Time deposits increased
by $1.5 million or 2.7 percent. Long term borrowings decreased by $22
thousand due to the re-payment of principal as stated in the note
agreement with NCIF. The outstanding balance of these borrowings as of
September 30, 2002, was one million, nine hundred and seventy eight
thousand, compared to two million as of December 31, 2001.
Stockholder's equity increased by $1.5 million, net earnings of $761
thousand coupled with a net gain of $445 thousand in other
comprehensive income were the main reasons for the increase. Primary
and risk based capital for the Company was 5.17 percent and 9.28
percent respectively.
The Company's stock is traded privately. During the period, a few
trades were registered at $18.00 per share.
-12-
HARBOR BANKSHARES CORPORATION AND SUBSIDIARY
Part II: OTHER INFORMATION
Item I. Legal Proceedings
The Company and its subsidiary, at times and in the ordinary course
of business, are subject to legal actions. Management does not
believe the outcome of such matters will have a material adverse
effect on the financial condition of the Corporation.
Item II. Changes in Securities
None
Item III. Defaults Upon Senior Securities
None
Items IV. Submission of Matters to a Vote of Security Holders
None
Item V. Other Information
None
Item VI. Exhibits and Reports on Form 8-K
The Company did not file any report on Form 8-K for the
period ending September 30, 2002.
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HARBOR BANKSHARES CORPORATION AND SUBSIDIARY
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
HARBOR BANKSHARES CORPORATION
Date: 11/8/02 /s/ Joseph Haskins, Jr.
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Joseph Haskins, Jr.
Chairman and Chief Executive Officer
Date: 11/8/02 /s/ Teodoro J. Hernandez
---------------- ------------------------------------------
Teodoro J. Hernandez
Treasurer
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