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 24, 2015

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):

☐ 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 24, 2015 Severn Bancorp, Inc. issued a press release announcing financial results for the quarter ended March 31, 2015.  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 24, 2015 announcing financial results for the quarter ended March 31, 2015.

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 24, 2015	By:	/Alan J. Hyatt/
		Alan J. Hyatt, President

EX-99.1

Exhibit 99.1

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

Severn Bancorp, Inc. Announces First Quarter Earnings

Annapolis, MD (April 24, 2015) –Severn Bancorp, Inc., (Nasdaq: SVBI) parent company of Severn Savings Bank, FSB (“Severn”), today announced net income of $865,000 or $0.03 per share for the first quarter of 2015. Earnings were consistent with 2014 first quarter results of net income of $867,000 or $0.03 per share. Earnings per share is calculated using net income available for common shareholders, which is net income less preferred stock dividends and discount amortization.

“We like to see the continued positive trend in earnings,” stated Alan J. Hyatt, President and Chief Executive Officer. Mr. Hyatt continued, “In our continued effort to build on recent accomplishments, such as delinquencies being at their lowest level in years, we dedicate ourselves every day to working hard and increasing value for our shareholders. In addition to our financial performance we also evaluate our progress in delivering on our mission. To that end we continue to succeed in meeting the needs of our customers and community to ensure a brighter financial future.”

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 $780 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, 2014.

Severn Bancorp, Inc.

Selected Financial Data

(dollars in thousands, except per share data)

(Unaudited)

	For the Three Months Ended
	March 31, 2015			December 31, 2014			September 30, 2014			June 30, 2014			March 31, 2014
Summary Operating Results:
Interest income	$	7,860		$	8,086		$	8,000		$	7,808		$	7,922
Interest expense		2,201			2,236			2,153			2,130			2,115
Net interest income		5,659			5,850			5,847			5,678			5,807
Provision for loan losses		100			400			250			(19	)		200
Net interest income (loss) after provision for loan losses		5,559			5,450			5,597			5,697			5,607
Non-interest income		900			1,142			1,245			962			976
Non-interest expense		5,593			5,041			5,754			7,235			5,706
Income (loss) before income tax provision		866			1,551			1,088			(576	)		877
Income tax provision		1			1			20			-			10
Net income (loss)	$	865		$	1,550		$	1,068		$	(576	)	$	867
Per Share Data:
Basic earnings (loss) per share	$	0.03		$	0.10		$	0.05		$	(0.12	)	$	0.03
Diluted earnings (loss) per share	$	0.03		$	0.09		$	0.05		$	(0.12	)	$	0.03
Common stock dividends per share	$	-		$	-		$	-		$	-		$	-
Average basic shares outstanding		10,070,796			10,067,379			10,067,379			10,067,379			10,066,679
Average diluted shares outstanding		10,093,250			10,905,866			10,101,445			10,067,379			10,103,153
Performance Ratios:
Return on average assets		0.11	%		0.20	%		0.14	%		-0.07	%		0.11	%
Return on average equity		1.05	%		1.88	%		1.30	%		-0.71	%		1.06	%
Net interest margin		3.22	%		3.32	%		3.29	%		3.19	%		3.23	%
Efficiency ratio*		86.26	%		71.60	%		80.40	%		109.32	%		84.90	%

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

	March 31, 2015			December 31, 2014			As of September 30, 2014			June 30, 2014			March 31, 2014
Balance Sheet Data:
Total assets	$	781,628		$	776,328		$	769,313		$	788,653		$	793,433
Total loans receivable		627,591			643,317			629,342			616,956			614,986
Allowance for loan losses		(8,964	)		(9,435	)		(9,282	)		(10,828	)		(11,225	)
Net loans		618,627			633,882			620,060			606,128			603,761
Deposits		546,535			543,814			537,743			555,780			562,964
Borrowings		115,000			115,000			115,000			115,000			115,000
Stockholders' equity		84,275			83,810			82,739			82,150			83,202
Bank's Tier 1 core capital to total assets		13.9	%		13.8	%		13.7	%		13.2	%		13.2	%
Book value per share	$	5.71		$	5.68		$	5.57		$	5.51		$	5.62
Asset Quality Data:
Non-accrual loans	$	13,317		$	12,845		$	10,798		$	13,401		$	12,567
Foreclosed real estate		2,211			1,947			5,024			5,689			5,561
Total non-performing assets		15,528			14,792			15,822			19,090			18,128
Total non-accrual loans to net loans		2.2	%		2.0	%		1.7	%		2.2	%		2.1	%
Total non-accrual loans to total assets		1.7	%		1.7	%		1.4	%		1.7	%		1.6	%
Allowance for loan losses		8,964			9,435			9,282			10,828			11,225
Allowance for loan losses to total loans		1.4	%		1.5	%		1.5	%		1.8	%		1.8	%
Allowance for loan losses to total non-accrual loans		67.3	%		73.5	%		86.0	%		80.8	%		89.3	%
Total non-performing assets to total assets		2.0	%		1.9	%		2.1	%		2.4	%		2.3	%
Non-accrual troubled debt restructurings (included above)		2,620			2,641			1,853			1,868			2,018
Performing troubled debt restructurings		26,175			27,724			28,828			30,146			34,021
Loan to deposit ratio		114.8	%		118.3	%		117.0	%		111.0	%		109.2	%