0001140361-14-028538.txt : 20140716 0001140361-14-028538.hdr.sgml : 20140716 20140716075803 ACCESSION NUMBER: 0001140361-14-028538 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20140715 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20140716 DATE AS OF CHANGE: 20140716 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SEVERN BANCORP INC CENTRAL INDEX KEY: 0000868271 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 521726127 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-49731 FILM NUMBER: 14977049 BUSINESS ADDRESS: STREET 1: 200 WESTGATE CIRCLE STREET 2: SUITE 200 CITY: ANNAPOLIS STATE: MD ZIP: 21404 BUSINESS PHONE: 410-260-2000 MAIL ADDRESS: STREET 1: 200 WESTGATE CIRCLE STREET 2: SUITE 200 CITY: ANNAPOLIS STATE: MD ZIP: 21401 8-K 1 form8k.htm SEVERN BANCORP, INC 8-K 7-15-2014
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)
July 15, 2014

Severn Bancorp, Inc.
(Exact name of registrant as specified in its charter)
 
Maryland
0-49731
52-1726127
(State or other jurisdiction of incorporation)
(Commission File Number)
(IRS Employer 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):

o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o
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 July 15, 2014 Severn Bancorp, Inc. issued a press release announcing financial results for the quarter ended June 30, 2014.  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:
 
Press Release of Severn Bancorp, Inc., dated July 15, 2014 announcing financial results for the quarter ended June 30, 2014.

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: July 15, 2014
 By: 
 /Alan J. Hyatt/
 
Alan J. Hyatt, President
 
 
 EX-99.1 2 ex99_1.htm EXHIBIT 99.1
Exhibit 99.1
 
FOR IMMEDIATE RELEASE
Contact:
 
Thomas G. Bevivino
 
Executive Vice President & CFO/COO
 
Email: tbevivino@severnbank.com
 
Phone: 410.260.2000

Severn Bancorp, Inc. Announces Quarterly Results Hold Steady

Annapolis, MD (July 15, 2014) – Severn Bancorp, Inc., (Nasdaq: SVBI) (“Company”) parent company of Severn Savings Bank, FSB (“Severn”), today announced net income of $824,000 or $.02 per share for the second quarter of 2014, an increase of approximately 255% compared to net income of $232,000 or ($.01) per share for the second quarter of 2013. Earnings for the second quarter this year are also holding fairly steady compared to net income of $867,000 or $.03 per share compared to the first quarter of 2014. Earnings per share is calculated using net income available for common shareholders, which is net income less preferred stock dividends. Severn also continues to see a downward trend in problem assets.
 
“As one of the area’s last remaining community banks we remain committed to our market,” stated Alan J. Hyatt, president and chief executive officer. Mr. Hyatt continued, “We look forward to growing the bank and continuing the services we provide, including commercial and mortgage lending in our Anne Arundel County marketplace.  We have good things on the horizon. We are excited about our new COO joining our management team and new technology and service offerings. I am optimistic that the second half of 2014 will be a good one for Severn.”
 
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 $790 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, 2013.

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,
  
 
  
2014
    
2014
    
2013
    
2013
    
2013
  
 
  
   
   
   
   
 
Summary Operating Results:
  
   
   
   
   
 
Interest income
  
$
7,808
    
$
7,922
    
$
7,983
    
$
8,321
    
$
8,575
  
Interest expense
    
2,130
      
2,115
      
2,204
      
2,301
      
2,364
  
Net interest income
    
5,678
      
5,807
      
5,779
      
6,020
      
6,211
  
Provision for loan losses
    
(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
    
$
(5,472
)
  
$
(20,548
)
  
$
232
  
 
                                        
Per Share Data:
                                        
Basic earnings (loss) per share
  
$
0.02
    
$
0.03
    
$
(0.58
)
  
$
(2.08
)
  
$
(0.01
)
Diluted earnings (loss) per share
  
$
0.02
    
$
0.03
    
$
(0.58
)
  
$
(2.08
)
  
$
(0.01
)
Common stock dividends per share
  
$
-
    
$
-
    
$
-
    
$
-
    
$
-
  
Average basic shares outstanding
    
10,067,379
      
10,066,679
      
10,066,679
      
10,066,679
      
10,066,679
  
Average diluted shares outstanding
    
10,104,751
      
10,103,153
      
10,066,679
      
10,066,679
      
10,108,470
  
 
                                        
Performance Ratios:
                                        
Return on average assets
    
0.10
%
    
0.11
%
    
-0.66
%
    
-2.45
%
    
0.03
%
Return on average equity
    
1.01
%
    
1.06
%
    
-6.31
%
    
-19.07
%
    
0.21
%
Net interest margin
    
3.19
%
    
3.23
%
    
3.15
%
    
3.21
%
    
3.29
%
Efficiency ratio*
    
88.24
%
    
84.90
%
    
88.16
%
    
83.51
%
    
76.03
%
 
 
*
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,
  
 
  
2014
    
2014
    
2013
    
2013
    
2013
  
 
  
   
   
   
   
 
Balance Sheet Data:
  
   
   
   
   
 
Total assets
  
$
788,653
    
$
793,433
    
$
799,603
    
$
815,198
    
$
839,053
  
Total loans receivable
    
617,507
      
614,986
      
614,552
      
608,769
      
642,801
  
Allowance for loan losses
    
(10,828
)
    
(11,225
)
    
(11,739
)
    
(12,270
)
    
(12,765
)
Net loans
    
606,679
      
603,761
      
602,813
      
596,499
      
630,036
  
Deposits
    
555,780
      
562,964
      
571,249
      
580,915
      
583,271
  
Borrowings
    
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
  

 
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