EX-99.1 2 ex99_1.htm EXHIBIT 99.1
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 Second Quarter Earnings

Annapolis, MD (July 16, 2013) – Severn Bancorp, Inc., (Nasdaq: SVBI) parent company of Severn Savings Bank, FSB ("Severn"), today announced net income of $232,000 or $(.01) per share for the second quarter of 2013 compared to net income of $1,203,000 or $.08 per share for the second quarter of 2012 and compared to net income of $621,000 or $.03 per share, for the quarter ended March 31, 2013.  Earnings per share is calculated using net income available for common shareholders, which is net income less preferred stock dividends.
 
"Although we had what amounts to a break even quarter, Severn continues to make great strides in resolving problem assets. Severn is aggressively liquidating foreclosed real estate, and is rapidly and decisively taking steps to rid itself of the remaining "legacy assets" that were originated some years ago," stated Alan J. Hyatt, president and chief executive officer.  Mr. Hyatt continued, "We expect to see earnings improve shortly after we rid ourselves of the last remnants of these assets. Despite absorbing over $2 million in expenses related to relieving the balance sheet of these problems during the first half of this year, Severn was able to generate a profit. We have a strong company emerging, and we should continue to increase our market share as one of the remaining community banks in the Anne Arundel County marketplace."
 
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 $840 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
  
 
  
June 30,
    
March 31,
    
December 31,
    
September 30,
    
June 30,
  
 
  
2013
    
2013
    
2012
    
2012
    
2012
  
 
  
   
   
   
   
 
Summary Operating Results:
  
   
   
   
   
 
Interest income
  
$
8,574
    
$
8,913
    
$
9,412
    
$
9,104
    
$
10,276
  
Interest expense
    
2,364
      
2,315
      
2,587
      
3,027
      
3,336
  
Net interest income
    
6,210
      
6,598
      
6,825
      
6,077
      
6,940
  
Provision for loan losses
    
300
      
320
      
300
      
-
      
-
  
Net interest income after provision for loan losses
    
5,910
      
6,278
      
6,525
      
6,077
      
6,940
  
Non-interest income
    
1,881
      
1,572
      
1,478
      
1,039
      
835
  
Non-interest expense
    
7,470
      
6,785
      
5,815
      
5,961
      
5,732
  
Income before income tax provision
    
321
      
1,065
      
2,188
      
1,155
      
2,043
  
Income tax provision
    
89
      
444
      
914
      
481
      
840
  
Net income
  
$
232
    
$
621
    
$
1,274
    
$
674
    
$
1,203
  
 
                                        
Per Share Data:
                                        
Basic earnings per share
  
$ 
(0.01
)
  
$
0.03
    
$
0.09
    
$
0.03
    
$
0.08
  
Diluted earnings per share
  
$ 
(0.01
)
  
$
0.03
    
$
0.09
    
$
0.03
    
$
0.08
  
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
    
10,108,470
      
10,100,454
      
10,066,679
      
10,066,679
      
10,066,679
  
 
                                        
Performance Ratios:
                                        
Return on average assets
    
0.03
%
    
0.07
%
    
0.14
%
    
0.08
%
    
0.13
%
Return on average equity
    
0.21
%
    
0.57
%
    
1.19
%
    
0.63
%
    
1.13
%
Net interest margin
    
3.29
%
    
3.47
%
    
3.33
%
    
3.09
%
    
3.41
%
Efficiency ratio*
    
76.42
%
    
72.01
%
    
63.70
%
    
71.19
%
    
64.96
%

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

 
  
As of
  
 
  
June 30,
    
March 31,
    
December 31,
    
September 30,
    
June 30,
  
 
  
2013
    
2013
    
2012
    
2012
    
2012
  
 
  
   
   
   
   
 
Balance Sheet Data:
  
   
   
   
   
 
Total assets
  
$
839,053
    
$
849,598
    
$
852,118
    
$
862,628
    
$
897,390
  
Total loans receivable
    
642,801
      
653,595
      
669,187
      
688,405
      
687,796
  
Allowance for loan losses
    
(12,765
)
    
(15,465
)
    
(17,478
)
    
(23,180
)
    
(24,097
)
Net loans
    
630,036
      
638,130
      
651,709
      
665,225
      
663,699
  
Deposits
    
583,271
      
593,900
      
599,394
      
609,772
      
643,653
  
Borrowings
    
115,000
      
115,000
      
115,000
      
115,000
      
115,000
  
Stockholders' equity
    
109,313
      
109,349
      
108,996
      
108,004
      
107,612
  
Bank's Tier 1 core capital to total assets
    
14.9
%
    
14.8
%
    
14.6
%
    
14.1
%
    
13.4
%
Book value per share
  
$
8.21
    
$
8.22
    
$
8.18
    
$
8.08
    
$
8.04
  
 
                                        
Asset Quality Data:
                                        
Non-accrual loans
  
$
37,537
    
$
35,064
    
$
37,495
    
$
42,596
    
$
38,965
  
Foreclosed real estate
    
13,297
      
14,895
      
11,441
      
13,801
      
16,329
  
Total non-performing assets
    
50,834
      
49,959
      
48,936
      
56,397
      
55,294
  
Total non-accrual loans to net loans
    
6.0
%
    
5.5
%
    
5.8
%
    
6.4
%
    
5.9
%
Total non-accrual loans to total assets
    
4.5
%
    
4.1
%
    
4.4
%
    
4.9
%
    
4.3
%
Allowance for loan losses
    
12,765
      
15,465
      
17,478
      
23,180
      
24,097
  
Allowance for loan losses to total loans
    
2.0
%
    
2.4
%
    
2.6
%
    
3.4
%
    
3.5
%
Allowance for loan losses to total non-accrual loans
    
34.0
%
    
44.1
%
    
46.6
%
    
54.4
%
    
61.8
%
Total non-performing assets to total assets
    
6.1
%
    
5.9
%
    
5.7
%
    
6.5
%
    
6.2
%
Non-accrual troubled debt restructurings (included above)
    
6,771
      
6,774
      
5,635
      
12,574
      
9,515
  
Performing troubled debt restructurings
    
41,544
      
46,607
      
56,448
      
51,230
      
51,034