Date of Report (Date of earliest event report)
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July 15, 2014
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Severn Bancorp, Inc.
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(Exact name of registrant as specified in its charter)
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Maryland
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0-49731
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52-1726127
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(State or other jurisdiction of incorporation)
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(Commission File Number)
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(IRS Employer Identification Number)
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200 Westgate Circle, Suite 200, Annapolis, Maryland
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21401
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(Address of principal executive offices)
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(Zip Code)
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410-260-2000
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(Registrant’s telephone number, including area code)
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(Former name or former address, if change since last report)
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o
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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o
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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o
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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o
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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ITEM 2.02 | RESULTS OF OPERATIONS AND FINANCIAL CONDITION. |
ITEM 9.01. | FINANCIAL STATEMENTS AND EXHIBITS. |
Press Release of Severn Bancorp, Inc., dated July 15, 2014 announcing financial results for the quarter ended June 30, 2014.
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Severn Bancorp, Inc.
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|
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Dated: July 15, 2014
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By: |
/Alan J. Hyatt/
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Alan J. Hyatt, President
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FOR IMMEDIATE RELEASE
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Contact:
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|
Thomas G. Bevivino
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|
Executive Vice President & CFO/COO
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Email: tbevivino@severnbank.com
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Phone: 410.260.2000
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For the Three Months Ended
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|||||||||||||||||||
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June 30,
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March 31,
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December 31,
|
September 30,
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June 30,
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|||||||||||||||
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2014
|
2014
|
2013
|
2013
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2013
|
|||||||||||||||
|
||||||||||||||||||||
Summary Operating Results:
|
||||||||||||||||||||
Interest income
|
$
|
7,808
|
$
|
7,922
|
$
|
7,983
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$
|
8,321
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$
|
8,575
|
||||||||||
Interest expense
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2,130
|
2,115
|
2,204
|
2,301
|
2,364
|
|||||||||||||||
Net interest income
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5,678
|
5,807
|
5,779
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6,020
|
6,211
|
|||||||||||||||
Provision for loan losses
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(19
|
)
|
200
|
3,700
|
12,200
|
300
|
||||||||||||||
Net interest income (loss) after provision for loan losses
|
5,697
|
5,607
|
2,079
|
(6,180
|
)
|
5,911
|
||||||||||||||
Non-interest income
|
962
|
976
|
1,011
|
1,229
|
1,754
|
|||||||||||||||
Non-interest expense
|
5,835
|
5,706
|
8,562
|
7,421
|
7,343
|
|||||||||||||||
Income (loss) before income tax provision
|
824
|
877
|
(5,472
|
)
|
(12,372
|
)
|
322
|
|||||||||||||
Income tax provision
|
-
|
10
|
-
|
8,176
|
90
|
|||||||||||||||
Net income (loss)
|
$
|
824
|
$
|
867
|
$
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(5,472
|
)
|
$
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(20,548
|
)
|
$
|
232
|
||||||||
|
||||||||||||||||||||
Per Share Data:
|
||||||||||||||||||||
Basic earnings (loss) per share
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$
|
0.02
|
$
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0.03
|
$
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(0.58
|
)
|
$
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(2.08
|
)
|
$
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(0.01
|
)
|
|||||||
Diluted earnings (loss) per share
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$
|
0.02
|
$
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0.03
|
$
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(0.58
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)
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$
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(2.08
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)
|
$
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(0.01
|
)
|
|||||||
Common stock dividends per share
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$
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-
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$
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-
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$
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-
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$
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-
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$
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-
|
||||||||||
Average basic shares outstanding
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10,067,379
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10,066,679
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10,066,679
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10,066,679
|
10,066,679
|
|||||||||||||||
Average diluted shares outstanding
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10,104,751
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10,103,153
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10,066,679
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10,066,679
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10,108,470
|
|||||||||||||||
|
||||||||||||||||||||
Performance Ratios:
|
||||||||||||||||||||
Return on average assets
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0.10
|
%
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0.11
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%
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-0.66
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%
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-2.45
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%
|
0.03
|
%
|
||||||||||
Return on average equity
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1.01
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%
|
1.06
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%
|
-6.31
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%
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-19.07
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%
|
0.21
|
%
|
||||||||||
Net interest margin
|
3.19
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%
|
3.23
|
%
|
3.15
|
%
|
3.21
|
%
|
3.29
|
%
|
||||||||||
Efficiency ratio*
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88.24
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%
|
84.90
|
%
|
88.16
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%
|
83.51
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%
|
76.03
|
%
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*
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The efficiency ratio is general and administrative expenses as a percentage of net interest income plus non-interest income
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|
As of
|
|||||||||||||||||||
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June 30,
|
March 31,
|
December 31,
|
September 30,
|
June 30,
|
|||||||||||||||
|
2014
|
2014
|
2013
|
2013
|
2013
|
|||||||||||||||
|
||||||||||||||||||||
Balance Sheet Data:
|
||||||||||||||||||||
Total assets
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$
|
788,653
|
$
|
793,433
|
$
|
799,603
|
$
|
815,198
|
$
|
839,053
|
||||||||||
Total loans receivable
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617,507
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614,986
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614,552
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608,769
|
642,801
|
|||||||||||||||
Allowance for loan losses
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(10,828
|
)
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(11,225
|
)
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(11,739
|
)
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(12,270
|
)
|
(12,765
|
)
|
||||||||||
Net loans
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606,679
|
603,761
|
602,813
|
596,499
|
630,036
|
|||||||||||||||
Deposits
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555,780
|
562,964
|
571,249
|
580,915
|
583,271
|
|||||||||||||||
Borrowings
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115,000
|
115,000
|
115,000
|
115,000
|
115,000
|
|||||||||||||||
Stockholders' equity
|
83,550
|
83,202
|
82,769
|
88,496
|
109,313
|
|||||||||||||||
Bank's Tier 1 core capital to total assets
|
13.4
|
%
|
13.2
|
%
|
12.9
|
%
|
13.3
|
%
|
14.9
|
%
|
||||||||||
Book value per share
|
$
|
5.65
|
$
|
5.62
|
$
|
5.57
|
$
|
6.14
|
$
|
8.21
|
||||||||||
|
||||||||||||||||||||
Asset Quality Data:
|
||||||||||||||||||||
Non-accrual loans
|
$
|
13,952
|
$
|
12,567
|
$
|
11,035
|
$
|
22,771
|
$
|
37,537
|
||||||||||
Foreclosed real estate
|
5,138
|
5,561
|
8,972
|
13,877
|
13,297
|
|||||||||||||||
Total non-performing assets
|
19,090
|
18,128
|
20,007
|
36,648
|
50,834
|
|||||||||||||||
Total non-accrual loans to net loans
|
2.3
|
%
|
2.1
|
%
|
1.8
|
%
|
3.8
|
%
|
6.0
|
%
|
||||||||||
Total non-accrual loans to total assets
|
1.8
|
%
|
1.6
|
%
|
1.4
|
%
|
2.8
|
%
|
4.5
|
%
|
||||||||||
Allowance for loan losses
|
10,828
|
11,225
|
11,739
|
12,270
|
12,765
|
|||||||||||||||
Allowance for loan losses to total loans
|
1.8
|
%
|
1.8
|
%
|
1.9
|
%
|
2.0
|
%
|
2.0
|
%
|
||||||||||
Allowance for loan losses to total non-accrual loans
|
77.6
|
%
|
89.3
|
%
|
106.4
|
%
|
53.9
|
%
|
34.0
|
%
|
||||||||||
Total non-performing assets to total assets
|
2.4
|
%
|
2.3
|
%
|
2.5
|
%
|
4.5
|
%
|
6.1
|
%
|
||||||||||
Non-accrual troubled debt restructurings (included above)
|
2,419
|
2,390
|
2,091
|
4,750
|
5,908
|
|||||||||||||||
Performing troubled debt restructurings
|
30,147
|
33,149
|
34,827
|
39,548
|
45,851
|