Harbor National has solid quarter

The fog of the last recession is lifting at Harbor National Bank.

The youngest startup community bank based in the Charleston area — it turned five years old a few months ago — said Friday it posted a $318,000 second-quarter profit, bringing its total for the year to $525,000.

“We are committed to the future in Charleston and we are beginning to see several bright spots in the local economy,” said Charles F. Rivers III, president and chief executive officer.

The outlook has brightened to the point that Harbor National is reverting to its original game plan and adding two more branches, for total of five.

The bank decided to put its brick-and-mortar growth plans on ice when after the recession wore on.

Rivers said Harbor National plans to open its fourth retail office next spring with a location on James Island at Folly Road and Crosscreek Drive.

It is also actively scouting sites in the Summerville market for a fifth branch.

Rivers credits the bank’s return to growth to his board of directors, which is made up of local business executives led by Jim Stelling, CEO of The GEL Group Inc.

“Our board’s guidance and perseverance has made all the difference to take us through one of the worst economic downturns any of us have ever experienced,” he said.

Not that it escaped the recession and real estate crash completely unscathed. Like many coastal banks, Harbor lost money — about $88,000 — in 2009 before returning to profitability last year with a gain of $111,000.

The privately held bank is now sensing more optimism from the small businesses and professional firms that make up the bulk of its commercial customer base. More of those clients appear to be more willing to take on risk, borrow money and expand than they were a year or two ago, Rivers said.

“They’re feeling confident again,” he said.

Harbor got off to an ambitious in 2006, setting out to target not only business owners but individual consumers dissatisfied with bigger out-of-town banks.

It raised an impressive $29.3 million from 370 investors, including $4.5 million from its founding board of directors. At the time, only one other community bank in the state, CommunitySouth Bancshares Inc., had attracted more startup capital.

Harbor National hasn’t squandered its money. Rivers said the bank has retained more than 90 percent of its original stock proceeds, earning it the distinction of being a “well-capitalized” lender in the eyes of regulators.

“I think that’s a pretty good story,” he said.