Severn Bancorp Announces Fourth Quarter Earnings and Significant Growth In Year End Net Income

  Severn Bancorp Announces Fourth Quarter Earnings and Significant Growth In
                             Year End Net Income

PR Newswire

ANNAPOLIS, Md., Jan. 25, 2013

ANNAPOLIS, Md., Jan. 25, 2013 /PRNewswire/ --Severn Bancorp, Inc., (Nasdaq:
SVBI) parent company of Severn Savings Bank, FSB ("Severn"), today announced
net income of $1,156,000 or $.08 per share for the fourth quarter, slightly
higher than net income of $1,067,000, or $.06 per share for the fourth
quarter of 2011. Net income was $3,283,000, or $.18 per share for the year
ended December 31, 2012, compared to net income of $1,219,000, or $(.05) per
share for the year ended December 31, 2011. Earnings per share is calculated
using net income available for common shareholders, which is net income less
preferred stock dividends.

"These are our best year end results in four years. While they are improved,
we are not yet satisfied. These results and the positive trend are strong
motivators and reaffirm our dedication to continue our hard work," said Alan
J. Hyatt, president and chief executive officer. Mr. Hyatt continued, "We
have had a decent year financially and also enjoyed some recognition for our
commitment to the community through several awards. We are energized for
2013."

About Severn Savings Bank:
Founded in 1946, Severn is a full-service community bank offering a wide array
of personal and commercial banking products as well as residential and
commercial mortgage lending. It has assets of approximately $850 million and
four branches located in Annapolis, Edgewater and Glen Burnie, Maryland. The
bank specializes in exceptional customer service and holds itself and its
employees to a high standard of community contribution. Severn is on the Web
at www.severnbank.com.

Forward Looking Statements
In addition to the historical information contained herein, this press release
contains forward-looking statements that involve risks and uncertainties that
may be affected by various factors that may cause actual results to differ
materially from those in the forward-looking statements. The forward-looking
statements contained herein include, but are not limited to, those with
respect to management's determination of the amount of loan loss reserve and
statements about the economy. The words "anticipate," "believe," "estimate,"
"expect," "intend," "may," "plan," "will," "would," "could," "should,"
"guidance," "potential," "continue," "project," "forecast," "confident," and
similar expressions are typically used to identify forward-looking
statements. Severn's operations and actual results could differ significantly
from those discussed in the forward-looking statements. Some of the factors
that could cause or contribute to such differences include, but are not
limited to, changes in the economy and interest rates both in the nation and
in Severn's general market area, federal and state regulation, competition and
other factors detailed from time to time in Severn's filings with the
Securities and Exchange Commission (the "SEC"), including "Item 1A. Risk
Factors" contained in Severn's Annual Report on Form 10-K for the fiscal year
ended December 31, 2011.

Severn Bancorp, Inc.
Selected Financial Data
(dollars in thousands, except per share data)
(Unaudited)
                    For the Three Months Ended
                    December    September   June 30,    March 31,   December
                    31,         30,                                 31,
                    2012        2012        2012        2012        2011
Summary Operating
Results:
 Interest income    $      $      $      $      $    
                     9,412     9,104     10,276     10,265      10,558
 Interest expense   2,587       3,027       3,336       3,552       3,659
    Net interest    6,825       6,077       6,940       6,713       6,899
    income
 Provision for loan 300         -           -           465         141
 losses
    Net interest
    income after
    provision
         for loan   6,525       6,077       6,940       6,248       6,758
         losses
 Non-interest       1,478       1,039       835         891         873
 income
 Non-interest       6,010       6,152       5,906       6,311       5,772
 expense
 Income before      1,993       964         1,869       828         1,859
 income taxes
 Income tax expense 837         406         772         356         792
 Net income         $      $      $      $      $    
                     1,156       558    1,097       472     1,067
Per Share Data:
 Basic earnings per $      $      $      $      $    
 share                0.08     0.02     0.07     0.01     
                                                                    0.06
 Diluted earnings   $      $      $      $      $    
 per share            0.08     0.02     0.07     0.01     
                                                                    0.06
 Common stock       $      $      $      $      $    
 dividends per                                      
 share              -          -          -          -           -
 Average basic      10,066,679  10,066,679  10,066,679  10,066,679  10,066,679
 shares outstanding
 Average diluted    10,066,679  10,066,679  10,066,679  10,066,679  10,066,679
 shares outstanding
Performance Ratios:
 Return on average  0.13%       0.06%       0.12%       0.05%       0.12%
 assets
 Return on average  1.09%       0.52%       1.04%       0.45%       1.01%
 equity
 Net interest       3.33%       3.09%       3.41%       3.27%       3.27%
 margin
 Efficiency ratio*  66.05%      73.88%      67.20%      66.99%      64.84%
    *    The efficiency ratio is general and administrative expenses as a
         percentage of net interest income plus non-interest income
                    As of
                    December    September   June 30,    March 31,   December
                    31,         30,                                 31,
                    2012        2012        2012        2012        2011
Balance Sheet Data:
 Total assets       $      $      $      $      $    
                    851,138     861,766     896,644     900,471      900,628
 Total loans        680,305     695,198     691,647     701,596     719,241
 receivable
 Allowance for loan (17,478)    (23,180)    (24,097)    (25,795)    (25,938)
 losses
    Net loans       662,827     672,018     667,550     675,801     693,303
 Deposits           599,394     609,772     643,653     650,473     652,757
 Borrowings         115,000     115,000     115,000     115,000     115,000
 Stockholders'      108,017     107,142     106,866     106,051     105,930
 equity
 Bank's Tier 1 core
 capital to total   14.5%       14.1%       13.3%       13.1%       13.0%
 assets
 Book value per     $      $      $      $      $    
 share                8.08     8.00     7.97     7.89     
                                                                    7.88
Asset Quality Data:
 Non-accrual loans  $      $      $      $      $    
                     30,537     29,790     29,450     17,882      23,912
 Non-accrual
 troubled debt      7,208       12,574      9,515       11,677      19,351
 restructurings
 Foreclosed real    11,441      13,801      16,329      19,853      19,932
 estate
    Total
    non-performing  49,186      56,165      55,294      49,412      63,195
    assets
 Performing
 troubled debt      54,875      51,230      51,034      51,034      52,255
 restructurings
 Total non-accrual  5.7%        6.3%        5.8%        4.4%        6.2%
 loans to net loans
 Allowance for loan 17,478      23,180      24,097      25,795      25,938
 losses
 Allowance for loan
 losses to total    2.6%        3.3%        3.5%        3.7%        3.6%
 loans
 Allowance for loan
 losses to total
    non-performing  46.3%       54.7%       61.8%       87.3%       60.0%
    loans
 Total non-accrual
 loans to total     4.4%        4.9%        4.3%        3.3%        4.8%
 assets
 Total
 non-performing     5.8%        6.5%        6.2%        5.5%        7.0%
 assets to total
 assets



SOURCE Severn Bancorp, Inc.

Website: http://www.severnbank.com
Contact: Thomas G. Bevivino, Chief Operating Officer & Executive Vice
President, tbevivino@severnbank.com, +1-410-260-2000
 
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