Severn Bancorp, Inc. Reports Significant Increase in Year End Earnings

Jan 28, 2016, 14:56 ET from Severn Bancorp, Inc.

ANNAPOLIS, Md., Jan. 28, 2016 /PRNewswire/ -- Severn Bancorp, Inc., (Nasdaq: SVBI) ("Company") parent company of Severn Savings Bank, FSB ("Severn"), reported net income for the year ended December 31, 2015 of $4,535,000 or $.21 per diluted share, a 56% increase, versus net income of $2,909,000 or $.06 per diluted share for the year ended December 31, 2014. Net income for the fourth quarter of 2015 dipped slightly versus the fourth quarter of 2014, to $1,078,000 or $.05 per diluted share compared to net income of $1,550,000 or $.09 per diluted share. Earnings per share is calculated using net income available for common shareholders, which is net income less preferred stock dividends and discount amortization.

The Company continues to be well capitalized, with continuing decreases in the level of non-performing assets. Alan J. Hyatt, President and Chief Executive Officer commented, "While these are not the robust figures we would like to ultimately see, the Company continues to broaden its community banking focus and add new banking relationships."

Mr. Hyatt added, "Severn is just coming out of its agreement with the Office of the Comptroller of the Currency and looking for opportunities to grow. We continue to target local small to mid-size community businesses who want to work with a local bank. We have added new sales team members that will be a great asset in helping with this growth. We are steadfast in our mission to provide an exceptional banking experience for residents of Anne Arundel County."

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 $760 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. The Company'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 the Company's general market area, federal and state regulation, competition and other factors detailed from time to time in the Company's filings with the Securities and Exchange Commission (the "SEC"), including "Item 1A. Risk Factors" contained in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2014.

Severn Bancorp, Inc.

Selected Financial Data

(dollars in thousands, except per share data)

(Unaudited)

For the Three Months Ended

December 31,

September 30,

June 30,

March 31,

December 31,

2015

2015

2015

2015

2014

Summary Operating Results:

Interest income

$              7,582

$              7,932

$              7,779

$              7,860

$              8,086

Interest expense

2,264

2,284

2,243

2,201

2,236

Net interest income

5,318

5,648

5,536

5,659

5,850

Provision for loan losses

(480)

-

100

100

400

Net interest income after provision

for loan losses

5,798

5,648

5,436

5,559

5,450

Non-interest income

1,409

1,469

2,332

900

1,142

Non-interest expense

6,127

5,838

6,368

5,593

5,041

Income before income tax provision

1,080

1,279

1,400

866

1,551

Income tax provision

2

52

35

1

1

Net income 

$              1,078

$              1,227

$              1,365

$                 865

$              1,550

Per Share Data:

Basic earnings per share

$                  0.05

$                  0.06

$                  0.08

$                  0.03

$                  0.10

Diluted earnings per share

$                  0.05

$                  0.06

$                  0.08

$                  0.03

$                  0.09

Common stock dividends per share

$                       -

$                       -

$                       -

$                       -

$                       -

Average basic shares outstanding

10,088,879

10,088,879

10,088,549

10,070,796

10,067,379

Average diluted shares outstanding

10,133,663

10,116,060

10,113,295

10,093,251

10,095,866

Performance Ratios:

Return on average assets

0.14%

0.16%

0.18%

0.11%

0.20%

Return on average equity

1.28%

1.47%

1.65%

1.05%

1.88%

Net interest margin

3.10%

3.20%

3.16%

3.22%

3.32%

Efficiency ratio*

89.43%

80.17%

80.27%

86.26%

71.60%

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

As of

December 31,

September 30,

June 30,

March 31,

December 31,

2015

2015

2015

2015

2014

Balance Sheet Data:

Total assets

$           762,079

$           773,977

$           781,923

$           781,628

$           776,328

Total loans receivable

598,414

597,061

611,823

627,591

643,317

Allowance for loan losses

(8,758)

(8,689)

(8,944)

(8,964)

(9,435)

Net loans

589,656

588,372

602,879

618,627

633,882

Deposits

523,771

536,646

544,112

546,535

543,814

Borrowings

115,000

115,000

115,000

115,000

115,000

Stockholders' equity

86,456

85,876

85,145

84,275

83,810

Bank's Tier 1 core capital to total assets

14.9%

14.5%

14.1%

14.0%

13.8%

Book value per share

$                5.93

$                5.87

$                5.80

$                5.71

$                5.68

Asset Quality Data:

Non-accrual loans

$              8,974

$              8,778

$             10,107

$             13,317

$             12,845

Foreclosed real estate

1,744

1,919

2,092

2,211

1,947

Total non-performing assets

10,718

10,697

12,199

15,528

14,792

Total non-accrual loans to net loans

1.5%

1.5%

1.7%

2.2%

2.0%

Total non-accrual loans to total assets

1.2%

1.1%

1.3%

1.7%

1.7%

Allowance for loan losses

8,758

8,689

8,944

8,964

9,435

Allowance for loan losses to total loans

1.5%

1.5%

1.5%

1.4%

1.5%

Allowance for loan losses to total

non-accrual loans

97.6%

99.0%

88.5%

67.3%

73.5%

Total non-performing assets to total assets

1.4%

1.4%

1.6%

2.0%

1.9%

Non-accrual troubled debt restructurings (included above)

1,329

1,835

2,128

2,620

2,641

Performing troubled debt restructurings

24,386

24,449

25,591

26,175

27,724

Loan to deposit ratio

114.3%

111.3%

112.4%

114.8%

118.3%

 

Video - https://www.youtube.com/watch?v=OrnyAEdZCsY&feature=youtu.be  Logo - http://photos.prnewswire.com/prnh/20150724/241973LOGO

SOURCE Severn Bancorp, Inc.



RELATED LINKS

http://www.severnbank.com