Severn Bancorp Announces First Quarter Earnings

Apr 16, 2013, 12:14 ET from Severn Bancorp, Inc.

ANNAPOLIS, Md., April 16, 2013 /PRNewswire/ -- Severn Bancorp, Inc., (Nasdaq: SVBI) parent company of Severn Savings Bank, FSB ("Severn"), today announced net income of $621,000 or $.03 per share for the first quarter of 2013, a slight increase of  $44,000, or 7.6%  compared to net income of  $577,000, or $.02 per share for the first quarter of 2012.  Earnings per share is calculated using net income available for common shareholders, which is net income less preferred stock dividends.

"The profit posted in the first quarter was a modest one," stated Alan J. Hyatt, president and chief executive officer.  Mr. Hyatt continued, "Severn continues to work through real estate loans that became troubled.  It is a slow process.  We are confident that the bank is on the right path to improved future earnings, but the effort will continue to take time.  Severn is up to the challenge and intends to provide outstanding community banking services in a market with a diminishing number of community banks." 

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, 2012.

Severn Bancorp, Inc.

Selected Financial Data

(dollars in thousands, except per share data)

(Unaudited)

For the Three Months Ended

March 31,

December 31,

September 30,

June 30,

March 31,

2013

2012

2012

2012

2012

Summary Operating Results:

Interest income

$              8,913

$              9,412

$              9,104

$             10,276

$             10,265

Interest expense

2,315

2,587

3,027

3,336

3,552

Net interest income

6,598

6,825

6,077

6,940

6,713

Provision for loan losses

320

300

-

-

465

Net interest income after provision

for loan losses

6,278

6,525

6,077

6,940

6,248

Non-interest income

1,572

1,478

1,039

835

891

Non-interest expense

6,785

5,815

5,961

5,732

6,139

Income before income tax provision

1,065

2,188

1,155

2,043

1,000

Income tax provision

444

914

481

840

423

Net income

$                 621

$              1,274

$                 674

$              1,203

$                 577

Per Share Data:

Basic earnings per share

$                0.03

$                0.09

$                0.03

$                0.08

$                0.02

Diluted earnings per share

$                0.03

$                0.09

$                0.03

$                0.08

$                0.02

Common stock dividends per share

$                     -

$                     -

$                     -

$                     -

$                     -

Average basic shares outstanding

10,066,679

10,066,679

10,066,679

10,066,679

10,066,679

Average diluted shares outstanding

10,100,454

10,066,679

10,066,679

10,066,679

10,066,679

Performance Ratios:

Return on average assets

0.07%

0.14%

0.08%

0.13%

0.06%

Return on average equity

0.57%

1.19%

0.63%

1.13%

0.54%

Net interest margin

3.47%

3.33%

3.09%

3.41%

3.27%

Efficiency ratio*

72.01%

63.70%

71.19%

64.96%

64.73%

*

The efficiency ratio is general and administrative expenses as a percentage of net interest income plus non-interest income

As of

March 31,

December 31,

September 30,

June 30,

March 31,

2013

2012

2012

2012

2012

Balance Sheet Data:

Total assets

$           849,598

$           852,118

$           862,628

$           897,390

$           901,111

Total loans receivable

653,595

669,187

688,405

687,796

701,596

Allowance for loan losses

(15,465)

(17,478)

(23,180)

(24,097)

(25,795)

Net loans

638,130

651,709

665,225

663,699

675,801

Deposits

593,900

599,394

609,772

643,653

650,473

Borrowings

115,000

115,000

115,000

115,000

115,000

Stockholders' equity

109,349

108,996

108,004

107,612

106,691

Bank's Tier 1 core capital to total assets

14.8%

14.6%

14.1%

13.4%

13.2%

Book value per share

$                8.22

$                8.18

$                8.08

$                8.04

$                7.95

Asset Quality Data:

Non-accrual loans

$             35,064

$             37,495

$             42,596

$             38,965

$             29,559

Foreclosed real estate

14,895

11,441

13,801

16,329

19,853

Total non-performing assets

49,959

48,936

56,397

55,294

49,412

Total non-accrual loans to net loans

5.5%

5.8%

6.4%

5.9%

4.4%

Total non-accrual loans to total assets

4.1%

4.4%

4.9%

4.3%

3.3%

Allowance for loan losses

15,465

17,478

23,180

24,097

25,795

Allowance for loan losses to total loans

2.4%

2.6%

3.4%

3.5%

3.7%

Allowance for loan losses to total

non-accrual loans

44.1%

46.6%

54.4%

61.8%

87.3%

Total non-performing assets to total assets

5.9%

5.7%

6.5%

6.2%

5.5%

Non-accrual troubled debt restructurings (included above)

6,774

5,635

12,574

9,515

11,677

Performing troubled debt restructurings

46,607

56,448

51,230

51,034

51,219

SOURCE Severn Bancorp, Inc.



RELATED LINKS

http://www.severnbank.com