Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 8, 2005
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HARBOR BANKSHARES CORPORATION
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(Exact name of registrant as specified in its charter)
Maryland 0-20990 52-1786341
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(State or other jurisdiction (Commission file (IRS Employer
of incorporation) number) Identification Number)
25 W. Fayette Street, Baltimore, Maryland 21201
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(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (410) 528-1800
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Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
Item 8.01 Other Events.
In 1999, The Harbor Bank of Maryland (the "Bank") the principal subsidiary of
Harbor Bankshares Corporation entered into an agreement with an unaffiliated
company that operated and serviced automated teller machines ("ATM's"). This
agreement called for the Bank to provide cash for use in certain ATM's not
located on Bank premises. In 2003, the Bank discovered that it had a significant
cash shortage in connection with this arrangement. The Bank vigorously pursued
recovery. The maximum potential loss to the Bank, before legal fees and costs
and related tax benefits, was approximately $1.1 million, without consideration
of related tax benefits. On April 8, 2005, the Bank settled its claims against
third parties in this matter in return for the payment of the sum of $575,000 to
the Bank.
Item 9.01 Financial Statements and Exhibits.
(a) Financial statements of businesses acquired. Not applicable.
(b) Pro forma financial information. Not applicable.
(c) Exhibits. Not applicable.
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 hereunto duly authorized.
Harbor Bankshares Corporation
By /s/ Joseph Haskins, Jr.
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Joseph Haskins, Jr.
Chairman and Chief Executive Officer
Dated: April 13, 2005