March 28, 2005



Mail Stop 04-08

By U.S. Mail and facsimile to (410) 841-6296

Mr. Alan J. Hyatt
President, Chairman, and Chief Executive Officer
Severn Bancorp, Inc.
1919A West Street,
Annapolis, Maryland 21401


Re:	Severn Bancorp, Inc.
	Form 10-K for the fiscal year ended December 31, 2005
	Filed March 21, 2005
	File Number: 000-49731


Dear Mr. Hyatt:


      We have reviewed your filing and have the following comment.
Where indicated, we think you should revise your document in
response
to this comment.  If you disagree, we will consider your
explanation
as to why our comment is inapplicable or a revision is
unnecessary.
Please be as detailed as necessary in your explanation.  In our
comment, we may ask you to provide us with supplemental
information
so we may better understand your disclosure.  After reviewing this
information, we may or may not raise additional comments.

	Please understand that the purpose of our review process is
to
assist you in your compliance with the applicable disclosure
requirements and to enhance the overall disclosure in your filing.
We look forward to working with you in these respects.  We welcome
any questions you may have about our comment or any other aspect
of
our review.  Feel free to call us at the telephone numbers listed
at
the end of this letter.




Form 10-K filed on March 21, 2005

Item 7. Management`s Discussion and Analysis of Financial
Condition
and Results of Operations

Overview - page 37

1. We note your mention that you subsequently discovered that
certain
cash accounts maintained at other financial institutions were not
reconciled and that there exists a discrepancy of approximately
$500,000 as of December 31, 2004. Further you state that you
expect
to have these cash accounts reconciled by the end of the first
quarter ending March 31, 2005 and that any required adjustments,
charges or reserves will be taken during this period. Please
supplementally provide to us the following:

* Explain how you were able to determine that the required
adjustments, if any, will not have a material effect on your
financial condition as of December 31, 2004. Please include the
guidance in SAB Topic 1M in your response to support your
conclusion;
* Explain to us how you were able to conclude that no loss accrual
is
required as of the December 31, 2004, but rather that any
adjustment,
charge or reserve will be taken in the first quarter ending March
31,
2005 is appropriate. Please include the guidance in paragraph 8 of
SFAS No. 5 in your response;
* Provide us a progress update on your plans to reconcile these
accounts in a timely fashion as of the current date and integrate
this information into your responses to the above supplemental
requests.


* * * * *

       As appropriate, please amend your filing and respond to
these
comments within 10 business days or tell us when you will provide
us
with a response.  You may wish to provide us with marked copies of
the amendment to expedite our review.  Please furnish a cover
letter
with your amendment that keys your responses to our comments and
provides any requested supplemental information.  Detailed cover
letters greatly facilitate our review.  Please understand that we
may
have additional comments after reviewing your amendment and
responses
to our comments.

	 We urge all persons who are responsible for the accuracy and
adequacy of the disclosure in the filing reviewed by the staff to
be
certain that they have provided all information investors require
for
an informed decision.  Since the company and its management are in
possession of all facts relating to a company`s disclosure, they
are
responsible for the accuracy and adequacy of the disclosures they
have made.


	In connection with responding to our comments, please
provide,
in writing, a statement from the company acknowledging that:

* the company is responsible for the adequacy and accuracy of the
disclosure in the filing;

* staff comments or changes to disclosure in response to staff
comments do not foreclose the Commission from taking any action
with
respect to the filing; and

* the company may not assert staff comments as a defense in any
proceeding initiated by the Commission or any person under the
federal securities laws of the United States.

      In addition, please be advised that the Division of
Enforcement
has access to all information you provide to the staff of the
Division of Corporation Finance in our review of your filing or in
response to our comments on your filing.

      You may contact John Spitz at (202) 824-5477 or me at
(202)942-
1783 if you have questions.


Sincerely,


John P. Nolan
Accounting Branch Chief

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Mr. Alan J. Hyatt
Severn Bancorp, Inc.
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