8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

The Securities Exchange Act of 1934

Date of Report (Date of earliest event report)  April 16, 2013                                                      

Severn Bancorp, Inc.

(Exact name of registrant as specified in its charter)

Maryland	0-49731	52-1726127
(State or other jurisdiction	(Commission	(IRS Employer
of incorporation)	File Number)	Identification Number)

200 Westgate Circle, Suite 200, Annapolis, Maryland	21401
(Address of principal executive offices)	(Zip Code)
410-260-2000
(Registrant’s telephone number, including area code)

(Former name or former address, if change since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

[  ]  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[  ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[  ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act

      (17 CFR 240.14d-2(b))

[  ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act

     (17 CFR 240.13e-4(c))

ITEM 2.02    RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

On April 16, 2013 Severn Bancorp, Inc. issued a press release announcing financial results for the quarter ended March 31. 2013.  A copy of this press release is being furnished as Exhibit 99.1 to this report.

ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.

(c) Exhibits:

99.1 Press Release of Severn Bancorp, Inc., dated April 16, 2013 announcing financial results for the quarter ended March 31, 2013.

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	Severn Bancorp, Inc.
Dated: April 16, 2013	By:  /Alan J. Hyatt/
	Alan J. Hyatt, President

EX-99.1

SEVERN BANCORP, INC.

Exhibit 99.1

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

Severn Bancorp Announces First Quarter Earnings

Annapolis, MD (April 16, 2013) – 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