Click here to close now.




















Welcome!

News Feed Item

Severn Bancorp Announces Fourth Quarter Results and Significant Reduction in Non-Performing Assets

ANNAPOLIS, Md., Jan. 24, 2014 /PRNewswire/ -- Severn Bancorp, Inc., (Nasdaq: SVBI) ("Company") parent company of Severn Savings Bank, FSB ("Severn"), today announced that non-performing assets, comprised of other real estate owned and non-accrual loans, have been reduced to $20,007,000, or 2.5% of total assets, as of December 31, 2013 compared to $48,936,000, or 5.7% of total assets, as of December 31, 2012.

"Our organization has been focused on cleaning up our balance sheet with the goal being to start 2014 with a clean and strong financial position," said Alan J. Hyatt, president and chief executive officer.  Mr. Hyatt continued, "Severn sold over $48 million in underperforming loans and $9 million in real estate acquired through foreclosure in 2013, with several million dollars' worth of real estate pending sale as of 2013 year end."

As a result of these transactions and conservatively calculating reserves and charge offs, the Company incurred a net loss of $5,470,000 or $(.58) per share for the fourth quarter of 2013, compared to net income of $1,274,000 or $.09 per share for the fourth quarter of 2012.  Net loss was $25,165,000, or $(2.64) per share for the year ended December 31, 2013, compared to net income of $3,728,000, or $.22 per share for the year ended December 31, 2012.  Earnings per share is calculated using net income available for common shareholders, which is net income less preferred stock dividends.

"We are fortunate that our organization has been well capitalized making it able to withstand the balance sheet cleanup and the resulting losses," said Mr. Hyatt.  Mr. Hyatt continued, "Severn now looks forward to progress and growth as its balance sheet and the overall economic conditions have continued to improve. Severn remains one of the area's few community banks and continues to offer exceptional service that some businesses and individuals prefer over the larger out-of-town based banks."

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 $800 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, 2012.

 

 

Severn Bancorp, Inc.


Selected Financial Data


(dollars in thousands, except per share data)


(Unaudited)
















For the Three Months Ended






December 31,

September 30,

June 30,

March 31,

December 31,






2013

2013

2013

2013

2012












Summary Operating Results:








Interest income

$              7,984

$              8,321

$              8,574

$              8,913

$              9,412



Interest expense

2,204

2,301

2,364

2,315

2,587




Net interest income

5,780

6,020

6,210

6,598

6,825



Provision for loan losses

3,700

12,200

300

320

300




Net interest income (loss) after provision










for loan losses

2,080

(6,180)

5,910

6,278

6,525



Non-interest income

1,196

1,312

1,881

1,572

1,478



Non-interest expense

8,745

7,504

7,470

6,785

5,815



Income (loss) before income tax provision

(5,469)

(12,372)

321

1,065

2,188



Income tax provision

1

8,176

89

444

914




Net income (loss)

$             (5,470)

$           (20,548)

$                 232

$                 621

$              1,274












Per Share Data:








Basic earnings (loss) per share

$                (0.58)

$                (2.08)

$                (0.01)

$                 0.03

$                 0.09



Diluted earnings (loss) per share

$                (0.58)

$                (2.08)

$                (0.01)

$                 0.03

$                 0.09



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

10,066,679

10,066,679

10,108,470

10,100,454

10,066,679












Performance Ratios:








Return on average assets

-0.66%

-2.45%

0.03%

0.07%

0.14%



Return on average equity

-6.31%

-19.07%

0.21%

0.57%

1.19%



Net interest margin

3.15%

3.21%

3.29%

3.47%

3.33%



Efficiency ratio*

88.43%

83.70%

76.42%

72.01%

63.70%














*

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
















As of






December 31,

September 30,

June 30,

March 31,

December 31,






2013

2013

2013

2013

2012












Balance Sheet Data:








Total assets

$           799,603

$           815,198

$           839,053

$           849,598

$           852,118



Total loans receivable

614,552

608,769

642,801

653,595

669,187



Allowance for loan losses

(11,739)

(12,270)

(12,765)

(15,465)

(17,478)




Net loans

602,813

596,499

630,036

638,130

651,709



Deposits

571,249

580,915

583,271

593,900

599,394



Borrowings

115,000

115,000

115,000

115,000

115,000



Stockholders' equity

82,769

88,496

109,313

109,349

108,996



Bank's Tier 1 core capital to total assets

12.9%

13.3%

14.9%

14.8%

14.6%



Book value per share

$                5.57

$                6.14

$                8.21

$                8.22

$                8.18












Asset Quality Data:








Non-accrual loans

$             11,035

$             22,771

$             37,537

$             35,064

$             37,495



Foreclosed real estate

8,972

13,877

13,297

14,895

11,441




Total non-performing assets

20,007

36,648

50,834

49,959

48,936



Total non-accrual loans to net loans

1.8%

3.8%

6.0%

5.5%

5.8%



Total non-accrual loans to total assets

1.4%

2.8%

4.5%

4.1%

4.4%



Allowance for loan losses

11,739

12,270

12,765

15,465

17,478



Allowance for loan losses to total loans

1.9%

2.0%

2.0%

2.4%

2.6%



Allowance for loan losses to total









non-accrual loans

106.4%

53.9%

34.0%

44.1%

46.6%



Total non-performing assets to total assets

2.5%

4.5%

6.1%

5.9%

5.7%



Non-accrual troubled debt restructurings (included above)

2,091

4,750

5,908

6,774

5,635



Performing troubled debt restructurings

34,564

39,548

45,851

46,607

56,448












 

SOURCE Severn Bancorp, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
In a recent research, analyst firm IDC found that the average cost of a critical application failure is $500,000 to $1 million per hour and the average total cost of unplanned application downtime is $1.25 billion to $2.5 billion per year for Fortune 1000 companies. In addition to the findings on the cost of the downtime, the research also highlighted best practices for development, testing, application support, infrastructure, and operations teams.
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
For IoT to grow as quickly as analyst firms’ project, a lot is going to fall on developers to quickly bring applications to market. But the lack of a standard development platform threatens to slow growth and make application development more time consuming and costly, much like we’ve seen in the mobile space. In his session at @ThingsExpo, Mike Weiner, Product Manager of the Omega DevCloud with KORE Telematics Inc., discussed the evolving requirements for developers as IoT matures and conducte...
The Software Defined Data Center (SDDC), which enables organizations to seamlessly run in a hybrid cloud model (public + private cloud), is here to stay. IDC estimates that the software-defined networking market will be valued at $3.7 billion by 2016. Security is a key component and benefit of the SDDC, and offers an opportunity to build security 'from the ground up' and weave it into the environment from day one. In his session at 16th Cloud Expo, Reuven Harrison, CTO and Co-Founder of Tufin,...
With SaaS use rampant across organizations, how can IT departments track company data and maintain security? More and more departments are commissioning their own solutions and bypassing IT. A cloud environment is amorphous and powerful, allowing you to set up solutions for all of your user needs: document sharing and collaboration, mobile access, e-mail, even industry-specific applications. In his session at 16th Cloud Expo, Shawn Mills, President and a founder of Green House Data, discussed h...
Mobile, social, Big Data, and cloud have fundamentally changed the way we live. “Anytime, anywhere” access to data and information is no longer a luxury; it’s a requirement, in both our personal and professional lives. For IT organizations, this means pressure has never been greater to deliver meaningful services to the business and customers.
Container technology is sending shock waves through the world of cloud computing. Heralded as the 'next big thing,' containers provide software owners a consistent way to package their software and dependencies while infrastructure operators benefit from a standard way to deploy and run them. Containers present new challenges for tracking usage due to their dynamic nature. They can also be deployed to bare metal, virtual machines and various cloud platforms. How do software owners track the usag...
The Internet of Everything (IoE) brings together people, process, data and things to make networked connections more relevant and valuable than ever before – transforming information into knowledge and knowledge into wisdom. IoE creates new capabilities, richer experiences, and unprecedented opportunities to improve business and government operations, decision making and mission support capabilities.
There are many considerations when moving applications from on-premise to cloud. It is critical to understand the benefits and also challenges of this migration. A successful migration will result in lower Total Cost of Ownership, yet offer the same or higher level of robustness. In his session at 15th Cloud Expo, Michael Meiner, an Engineering Director at Oracle, Corporation, analyzed a range of cloud offerings (IaaS, PaaS, SaaS) and discussed the benefits/challenges of migrating to each offe...
Puppet Labs has announced the next major update to its flagship product: Puppet Enterprise 2015.2. This release includes new features providing DevOps teams with clarity, simplicity and additional management capabilities, including an all-new user interface, an interactive graph for visualizing infrastructure code, a new unified agent and broader infrastructure support.
Chuck Piluso presented a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. Prior to Secure Infrastructure and Services, Mr. Piluso founded North American Telecommunication Corporation, a facilities-based Competitive Local Exchange Carrier licensed by the Public Service Commission in 10 states, serving as the company's chairman and president from 1997 to 2000. Between 1990 and 1997, Mr. Piluso served as chairman & founder of International Te...
One of the hottest areas in cloud right now is DRaaS and related offerings. In his session at 16th Cloud Expo, Dale Levesque, Disaster Recovery Product Manager with Windstream's Cloud and Data Center Marketing team, will discuss the benefits of the cloud model, which far outweigh the traditional approach, and how enterprises need to ensure that their needs are properly being met.
SYS-CON Events announced today that MobiDev, a software development company, will exhibit at the 17th International Cloud Expo®, which will take place November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software development company with representative offices in Atlanta (US), Sheffield (UK) and Würzburg (Germany); and development centers in Ukraine. Since 2009 it has grown from a small group of passionate engineers and business managers to a full-scale mobi...
Learn how to solve the problem of keeping files in sync between multiple Docker containers. In his session at 16th Cloud Expo, Aaron Brongersma, Senior Infrastructure Engineer at Modulus, discussed using rsync, GlusterFS, EBS and Bit Torrent Sync. He broke down the tools that are needed to help create a seamless user experience. In the end, can we have an environment where we can easily move Docker containers, servers, and volumes without impacting our applications? He shared his results so yo...
Palerra, the cloud security automation company, announced enhanced support for Amazon AWS, allowing IT security and DevOps teams to automate activity and configuration monitoring, anomaly detection, and orchestrated remediation, thereby meeting compliance mandates within complex infrastructure deployments. "Monitoring and threat detection for AWS is a non-trivial task. While Amazon's flexible environment facilitates successful DevOps implementations, it adds another layer, which can become a ...