Severn Bancorp, Inc. Announces First Quarter Earnings

            Severn Bancorp, Inc. Announces First Quarter Earnings

PR Newswire

ANNAPOLIS, Md., April 16, 2014

ANNAPOLIS, Md., April 16, 2014 /PRNewswire/ -- Severn Bancorp, Inc., (Nasdaq:
SVBI) parent company of Severn Savings Bank, FSB ("Severn"), today announced
net income of $867,000 or $.03 per share for the first quarter of 2014, an
increase of approximately 40% compared to net income of $621,000 or $.03 per
share for first quarter of 2013. Results reported also represent a significant
increase in earnings compared to a net loss of $5,470,000 or $(.58) per share
for the fourth quarter of 2013. Earnings per share is calculated using net
income available for common shareholders, which is net income less preferred
stock dividends.

"We are encouraged to be able to report a profit for this first quarter after
successfully concluding almost $50 million of problem asset sales in late
2013," stated Alan J. Hyatt, president and chief executive officer. Mr. Hyatt
continued, "Severn made decisions to position the bank for success as one of
the few remaining local community banks, and this is a first step in the right
direction. We are now dedicated to expanding technology and service offerings
rather than dealing with problems. Severn is proud to continue the tradition
of offering the personal service that residents and business owners in Anne
Arundel County have come to expect from a community bank."

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
$790 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,
2013.

Severn Bancorp, Inc.
Selected Financial Data
(dollars in thousands, except per share data)
(Unaudited)
                    For the Three Months Ended
                    March 31,   December    September   June 30,    March 31,
                                31,         30,
                    2014        2013        2013        2013        2013
Summary Operating
Results:
 Interest income    $      $      $      $      $    
                     7,922     7,984     8,321     8,574      8,913
 Interest expense   2,115       2,204       2,301       2,364       2,315
   Net interest     5,807       5,780       6,020       6,210       6,598
   income
 Provision for loan 200         3,700       12,200      300         320
 losses
   Net interest
   income (loss)
   after provision
         for loan   5,607       2,080       (6,180)     5,910       6,278
         losses
 Non-interest       976         1,032       1,227       1,742       1,528
 income
 Non-interest       5,706       8,581       7,419       7,331       6,741
 expense
 Income (loss)
 before income tax  877         (5,469)     (12,372)    321         1,065
 provision
 Income tax         10          1           8,176       89          444
 provision
   Net income       $      $      $      $      $    
   (loss)              867    (5,470)   (20,548)       232      
                                                                    621
Per Share Data:
 Basic earnings     $      $      $      $      $    
 (loss) per share      0.03    (0.58)   (2.08)   (0.01)    
                                                                    0.03
 Diluted earnings   $      $      $      $      $    
 (loss) per share      0.03    (0.58)   (2.08)   (0.01)    
                                                                    0.03
 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    10,103,153  10,066,679  10,066,679  10,108,470  10,100,454
 shares outstanding
Performance Ratios:
 Return on average  0.11%       -0.66%      -2.45%      0.03%       0.07%
 assets
 Return on average  1.06%       -6.31%      -19.07%     0.21%       0.57%
 equity
 Net interest       3.23%       3.15%       3.21%       3.29%       3.47%
 margin
 Efficiency ratio*  84.90%      88.15%      83.51%      76.01%      71.86%
   *     The efficiency ratio is general and administrative expenses as a
         percentage of net interest income plus non-interest income
                    As of
                    March 31,   December    September   June 30,    March 31,
                                31,         30,
                    2014        2013        2013        2013        2013
Balance Sheet Data:
 Total assets       $      $      $      $      $    
                    793,433     799,603     815,198     839,053      849,598
 Total loans        614,986     614,552     608,769     642,801     653,595
 receivable
 Allowance for loan (11,225)    (11,739)    (12,270)    (12,765)    (15,465)
 losses
   Net loans        603,761     602,813     596,499     630,036     638,130
 Deposits           562,964     571,249     580,915     583,271     593,900
 Borrowings         115,000     115,000     115,000     115,000     115,000
 Stockholders'      83,202      82,769      88,496      109,313     109,349
 equity
 Bank's Tier 1 core
 capital to total   13.2%       12.9%       13.3%       14.9%       14.8%
 assets
 Book value per     $      $      $      $      $    
 share                5.62     5.57     6.14     8.21     
                                                                    8.22
Asset Quality Data:
 Non-accrual loans  $      $      $      $      $    
                     12,567     11,035     22,771     37,537      35,064
 Foreclosed real    5,561       8,972       13,877      13,297      14,895
 estate
   Total
   non-performing   18,128      20,007      36,648      50,834      49,959
   assets
 Total non-accrual  2.1%        1.8%        3.8%        6.0%        5.5%
 loans to net loans
 Total non-accrual
 loans to total     1.6%        1.4%        2.8%        4.5%        4.1%
 assets
 Allowance for loan 11,225      11,739      12,270      12,765      15,465
 losses
 Allowance for loan
 losses to total    1.8%        1.9%        2.0%        2.0%        2.4%
 loans
 Allowance for loan
 losses to total
   non-accrual      89.3%       106.4%      53.9%       34.0%       44.1%
   loans
 Total
 non-performing     2.3%        2.5%        4.5%        6.1%        5.9%
 assets to total
 assets
 Non-accrual
 troubled debt      2,390       2,091       4,750       5,908       6,774
 restructurings
 (included above)
 Performing
 troubled debt      33,149      34,827      39,548      45,851      46,607
 restructurings



SOURCE Severn Bancorp, Inc.

Contact: Thomas G. Bevivino, Executive Vice President & CFO/COO, Email:
tbevivino@severnbank.com, Phone: 410.260.2000
 
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