Severn Bancorp, Inc. Announces Sale of Loans
ANNAPOLIS, Md., Sept. 27, 2013
ANNAPOLIS, Md., Sept. 27, 2013 /PRNewswire/ --Severn Bancorp, Inc., (Nasdaq:
SVBI) parent company of Severn Savings Bank, FSB (" the Bank"), announced
today that the Bank sold certain underperforming loans with a book value of
approximately $33 million for a sale price of approximately $23 million. As a
result of the sale, the Bank will experience a pre-tax charge to income for
the 3rd quarter of approximately $10 million.
"The bulk sale of these loans included performing and non-performing loans,"
stated Alan J. Hyatt, president and chief executive officer. Mr. Hyatt
continued, "This transaction speeds up improvement in our credit quality,
lowers our problem loans to assets ratio to a more acceptable level and allows
the Bank to focus on new business. The sale of underperforming loans is an
important initiative to clean up the Bank's balance sheet. Expenses related
to managing loans will be reduced with the removal of this group of loans, and
management continues to explore the option for additional sales of other
assets. We look forward to the opportunity to redirect Bank resources to the
more productive activities that will result in improving earnings, sustained
profitability and opportunities for long-term success."
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 $840 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
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, 2012.
SOURCE Severn Bancorp Inc.
Contact: Thomas G. Bevivino, Chief Operating Officer & Executive Vice
President, firstname.lastname@example.org, 410.260.2000
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