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Severn Bancorp, Inc. Announces First Quarter Earnings

ANNAPOLIS, Md., April 26, 2017 /PRNewswire/ -- Severn Bancorp, Inc., (SVBI) parent company of Severn Savings Bank, FSB ("Severn"), today announced net income of $925 thousand or $0.06 per share for the first quarter of 2017, a 2.0% increase from net income of $907 thousand or $0.03 per share for the first quarter of 2016. Earnings per share is calculated using net income available for common shareholders, which is net income less preferred stock dividends and discount amortization. Return on Average Assets (ROAA) was 0.47% for the quarter ended March 31, 2017, which was an improvement over the 0.12% reported for the quarter ended March 31, 2016. The Efficiency Ratio dropped to 81.25% for the quarter versus 85.32% for the first quarter of 2016.

Total assets increased by $11.3 million to $798.7 million as of March 31, 2017 compared to $787.4 million as of December 31, 2016. Loans remained flat at $609.7 million as of March 31, 2017 versus $610.3 million as of December 31, 2016. Deposits increased by $21.8 million to $593.8 million as of March 31, 2017, an increase of 3.8% over December 31, 2016. Borrowings decreased by $10 million during the quarter ended March 31, 2017 as the bank continues to pay down its FHLB borrowings.  

"We are committed to increasing shareholder value," stated Alan J. Hyatt, President and Chief Executive Officer. Mr. Hyatt continued, "We are focused on increasing revenue and driving loan growth. We are committed to Anne Arundel County and providing excellent service to the residents and local businesses. Our team is building relationships and representing Severn well in the community. We see a lot of opportunity for a successful remainder of the year."

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 $798.7 million and five branches located in Annapolis, Edgewater, Severna Park 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, 2016.

 

 

 

Severn Bancorp, Inc.

Selected Financial Data

(dollars in thousands, except per share data)

(Unaudited)










Quarterly income statement results:

Three Months Ended March 31,








2017

2016

$ Change

% Change











Interest Income
















Interest on loans

$                         7,131

$                     7,107

$                   24

0.34%



Interest on securities 

269

311

(42)

-13.49%



Other interest income

157

86

71

82.56%












Total interest income

7,557

7,504

54

0.71%











Interest Expense
















Interest on deposits

975

979

(4)

-0.45%



Interest on long term borrowings

996

1,290

(294)

-22.75%












Total interest expense

1,971

2,269

(298)

-13.13%












Net interest income

5,586

5,235

351

6.70%












Provision for loan losses

(275)

0

(275)

100.00%












Net interest income after provision for loan losses

5,861

5,235

626

11.96%











Other Income
















Mortgage-banking revenue

450

721

(271)

-37.58%



Real Estate Commissions

380

118

262

221.95%



Real Estate Management Income

194

165

29

17.87%



All other income

334

246

88

35.77%












Net other income

1,358

1,250

108

8.67%












Net interest income plus other income

7,219

6,485

734

11.32%











Non-Interest Expenses
















Compensation and related expenses

3,757

3,636

121

3.32%



Net Occupancy & Depreciation

336

452

(116)

-25.56%



Net Costs of Foreclosed Real Estate

33

45

(12)

-25.91%



Other


1,549

1,445

104

7.18%












Total non-interest expenses

5,675

5,578

97

1.75%












Income before income tax provision 

1,544

907

637

70.22%












Income tax provision 

619

0

619

100.00%












Net income

$                           925

$                        907

$                   18

2.02%



Net income available to common shareholders

$                           787

$                        313

$                 474

151.49%


 

 

Severn Bancorp, Inc.

Selected Financial Data

(dollars in thousands, except per share data)

(Unaudited)























March 31, 2017

December 31, 2016

$ Change

% Change


Balance Sheet Data:















ASSETS








Cash


$                       19,782

$                   39,396

$           (19,614)

-49.79%



Federal funds and Interest bearing deposits in other banks

63,775

27,718

36,057

130.09%



Investment securities available for sale

7,151

-

7,151

100.00%



Investment securities held to maturity

59,283

62,757

(3,474)

-5.54%



Loans held for sale

2,755

10,307

(7,552)

-73.27%



Loans receivable

609,741

610,278

(537)

-0.09%



Loan valuation allowance

(8,332)

(8,969)

637

-7.11%



Accrued interest receivable 

2,262

2,249

13

0.58%



Foreclosed real estate, net

1,243

973

270

27.76%



Premises and equipment, net

23,792

24,030

(238)

-0.99%



Restricted stock investments

4,701

5,103

(402)

-7.88%



Deferred income taxes

9,473

10,081

(608)

-6.03%



Prepaid expenses and other assets

3,115

3,562

(447)

-12.55%















$                     798,741

$                  787,485

$             11,256

1.43%











LIABILITIES AND STOCKHOLDERS EQUITY







Deposits

$                     593,762

$                  571,946

$             21,816

3.81%



Borrowings

93,500

103,500

(10,000)

-9.66%



Suboridinated debentures

20,619

20,619

-

0.00%



Accounts payable and accrued expenses

2,020

3,490

(1,470)

-42.13%












 Total Liabilities

709,901

699,555

10,346

1.48%












Preferred stock

4

4

0

0.00%



Common stock

121

121

0

0.00%



Additional paid-in capital

64,098

63,960

138

0.22%



Retained earnings

24,632

23,845

787

3.30%



Accumulated comprehensive loss

(15)

-

(15)

-100.00%












 Total Stockholders' Equity

88,840

87,930

910

1.03%















$                     798,741

$                  787,485

$             11,256

1.43%


 

 

Severn Bancorp, Inc.

Selected Financial Data

(dollars in thousands, except per share data)

(Unaudited)












Three Months Ended March 31,






2017

2016


Per Share Data:





Basic earnings per share

$                          0.06

$                       0.03



Diluted earnings per share

$                          0.06

$                       0.03



Average basic shares outstanding

12,125,553

10,088,879



Average diluted shares outstanding

12,210,580

10,128,251









Performance Ratios:





Return on average assets

0.47%

0.12%



Return on average equity

4.24%

1.07%



Net interest margin

3.05%

3.07%



Efficiency ratio*

81.25%

85.32%




















March 31, 2017

December 31, 2016


Asset Quality Data:





Non-accrual loans

$                         7,577

$                     9,852



Foreclosed real estate

1,243

973




Total non-performing assets

8,820

10,825



Total non-accrual loans to total loans

1.2%

1.6%



Total non-accrual loans to total assets

0.9%

1.3%



Allowance for loan losses

8,332

8,969



Allowance for loan losses to total loans

1.4%

1.5%



Allowance for loan losses to total






non-accrual loans

110.0%

91.0%



Total non-performing assets to total assets

1.1%

1.4%



Non-accrual troubled debt restructurings (included above)

2,782

2,392



Performing troubled debt restructurings

16,305

18,066



Loan to deposit ratio

102.7%

106.7%









*

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

 

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