---

Exhibit 99.1

 

 

Severn Bancorp, Inc. Announces First Quarter Earnings

---

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
		March 31,				December 31,				September 30,				June 30,				March 31,
		2014				2013				2013				2013				2013
Summary Operating Results:
Interest income		$	7,922			$	7,984			$	8,321			$	8,574			$	8,913
Interest expense			2,115				2,204				2,301				2,364				2,315
Net interest income			5,807				5,780				6,020				6,210				6,598
Provision for loan losses			200				3,700				12,200				300				320
Net interest income (loss) after provision for loan losses			5,607				2,080				(6,180	)			5,910				6,278
Non-interest income			976				1,032				1,227				1,742				1,528
Non-interest expense			5,706				8,581				7,419				7,331				6,741
Income (loss) before income tax provision			877				(5,469	)			(12,372	)			321				1,065
Income tax provision			10				1				8,176				89				444
Net income (loss)		$	867			$	(5,470	)		$	(20,548	)		$	232			$	621
Per Share Data:
Basic earnings (loss) per share		$	0.03			$	(0.58	)		$	(2.08	)		$	(0.01	)		$	0.03
Diluted earnings (loss) per share		$	0.03			$	(0.58	)		$	(2.08	)		$	(0.01	)		$	0.03
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			10,103,153				10,066,679				10,066,679				10,108,470				10,100,454
Performance Ratios:
Return on average assets			0.11	%			-0.66	%			-2.45	%			0.03	%			0.07	%
Return on average equity			1.06	%			-6.31	%			-19.07	%			0.21	%			0.57	%
Net interest margin			3.23	%			3.15	%			3.21	%			3.29	%			3.47	%
Efficiency ratio*			84.90	%			88.15	%			83.51	%			76.01	%			71.86	%

 

 

---