EXHIBIT 99.1

SEVERN BANCORP, INC.

FOR IMMEDIATE RELEASE	Contact:
	Thomas G. Bevivino
	Chief Operating Officer &
	Executive Vice President
	Email: tbevivino@severnbank.com
	Phone: 410.260.2000

Severn Bancorp Announces Restatement of Financial Statements

To Reflect Additional Net Income

Annapolis, MD (February 14, 2013) – Severn Bancorp, Inc. (“the Company”), (Nasdaq: SVBI) parent company of Severn Savings Bank, FSB (“Severn”), today announced that it will restate its previously issued annual consolidated financial statements for the fiscal years 2010, and 2011 and quarterly consolidated financial statements for fiscal years 2010, 2011 and 2012 (including its selected financial data for the relevant periods) due to errors identified in these financial statements.  These restatements are expected to be reflected in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012 that will be filed with the Securities and Exchange Commission in March 2013.  The decision was made by the Company’s Board of Directors, upon the recommendation of the Audit Committee and in consultation with management.   As a result of this decision, investors should no longer rely upon the Company’s previously released financial statements for these periods and any earnings releases or other communications relating to these periods.

The Company estimates that it understated pre-tax income by an aggregate of approximately $1,627,000, over the restated periods, due to the Company overstating its FDIC insurance expense for those periods.  This resulted from the method the Company used to amortize a prepayment of its risk-based insurance assessment paid to the FDIC in 2009.  At that time, the Company paid an estimated assessment in advance for fiscal years 2010, 2011 and 2012 based on the level of net assets as of June 30, 2009, and began expensing the prepayment evenly over the three year period covered by the prepayment.  Management has now determined that this method of amortization was incorrect and that it should have amortized the prepayment based on the actual level of net assets over that period.  This error was discovered by management during the course of its preparation of the 2012 year-end financial statements and audit.

The amounts disclosed below are the estimated net cumulative effect of this error on income through December 31, 2012.  The effect on income in certain periods is quantitatively significant. The adjustments necessary have no effect on reported cash flow from operations, and do not have a material impact on the consolidated balance sheet.  The impact of this correction for the restatement periods increases cumulative net income by approximately $980,000 and cumulative earnings per share by approximately $0.09.

Impact of the restatement

The estimated adjustments to the Company’s consolidated statements of operations are summarized in the tables below (in thousands, except per share amounts).

	Fiscal Year Ended
	December 31, 2012								December 31, 2011								December 31, 2010
	As Reported			Adjustment		As Restated			As Reported			Adjustment		As Restated			As Reported			Adjustment		As Restated
Increase in:
Pre-tax income	$	5,654		$	732	$	6,386		$	2,201		$	561	$	2,762		$	2,197		$	334	$	2,531
Net income		3,283			445		3,728			1,219			333		1,552			1,157			202		1,359
Basic and diluted
earnings(loss) per share		0.18			0.04		0.22			(0.05	)		0.03		(0.02	)		(0.06	)		0.02		(0.04	)
	Quarter Ended
	March 31, 2012								June 30, 2012								September 30, 2012								December 31, 2012
	As Reported			Adjustment		As Restated			As Reported			Adjustment		As Restated			As Reported			Adjustment		As Restated			As Reported		Adjustment		As Restated
Increase in:
Pre-tax income	$	828		$	172	$	1,000		$	1,869		$	174	$	2,043		$	964		$	191	$	1,155		$	1,993		195	$	2,188
Net income		472			105		577			1,097			106		1,203			558			116		674			1,156		118		1,274
Basic and diluted
earnings per share		0.01			0.01		0.02			0.07			0.01		0.08			0.02			0.01		0.03			0.08		0.01		0.09
	Quarter Ended
	March 31, 2011								June 30, 2011								September 30, 2011								December 31, 2011
	As Reported			Adjustment		As Restated			As Reported			Adjustment		As Restated			As Reported			Adjustment		As Restated			As Reported		Adjustment		As Restated
Increase in:
Pre-tax income(loss)	$	791			83	$	874		$	(1,403	)	$	152	$	(1,251	)	$	954		$	159	$	1,113		$	1,859	$	167	$	2,026
Net income(loss)		447			49		496			(846	)		90		(756	)		551			95		646			1,067		99		1,166
Basic and diluted
earnings(loss) per share		0.00			0.01		0.01			(0.13	)		0.01		(0.12	)		0.01			0.01		0.02			0.06		0.01		0.07
	Quarter Ended
	March 31, 2010								June 30, 2010								September 30, 2010								December 31, 2010
	As Reported			Adjustment		As Restated			As Reported			Adjustment		As Restated			As Reported			Adjustment		As Restated			As Reported		Adjustment		As Restated
Increase in:
Pre-tax income(loss)	$	(829	)	$	96	$	(733	)	$	1,054		$	67	$	1,121		$	870		$	84	$	954		$	1,102		87	$	1,189
Net income(loss)		(528	)		58		(470	)		593			40		633			485			51		536			607		53		660
Basic and diluted
earnings(loss) per share		(0.10	)		0.01		(0.09	)		0.02			0.00		0.02			0.01			0.00		0.01			0.02		0.00		0.02

The Board of Directors, Audit Committee and management have discussed the matters disclosed in this press release with the Company’s independent registered public accounting firm, ParenteBeard LLC.  The Company is working diligently to complete the restatement of its financial statements and expects to file its Annual Report on Form 10-K, including the restated financial statements, by no later than March 31, 2013.

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, statements with respect to the estimated effects of the revisions to its financial statements.  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, additional information arising from the review of the revisions to the financial statements by Severn and by its independent accountants, the Company’s ability to maintain an effective system of internal controls 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, 2011.