Exhibit 99.1

                             HARBOR BANKSHARES, INC.


                    HARBOR BANKSHARES, INC. REPORTS EARNINGS


RELEASE DATE:     JULY 13, 2005

         July 13, 2005, Baltimore, Maryland. . . . Harbor Bankshares, Inc.,
parent company of Harbor Bank of Maryland, reported second-quarter earnings of
$632,421, or 78 cents per share, versus $490,833, or 57 cents per share for the
same period last year, an increase of 28.8 percent. Assets rose by 3.7 percent,
to an all time high of $242.1 million from $233.4 million in the second quarter
of 2004.

         The earnings increase was the result of expense controls, quality loan
bookings and well-chosen investments.

         Harbor Bank ranked ninth on this year's list of the nation's largest
African-American-owned banks published in Black Enterprise magazine.