Welcome!

News Feed Item

Severn Bancorp, Inc. Announces Adjustment to Reported Results for Second Quarter 2014

ANNAPOLIS, Md., Aug. 1, 2014 /PRNewswire/ -- Severn Bancorp, Inc., (Nasdaq: SVBI) ("Company") parent company of Severn Savings Bank, FSB ("Severn"), today announced an adjustment to the earnings reported in a July 15, 2014 earnings release. The adjustment is for a $1.4 million reserve being placed on certain standby letters of credit held by Severn, not previously reflected in the earnings statement.

The adjustment results in a change from net income of $824,000 or $.02 per share for the second quarter 2014, to a net loss of $576,000 or ($.12) per share.  This reserve is due to management's decision, based on consultation with its regulators, to place a reserve on certain unsecured standby letters of credit on the books as of June 30, 2014.  Standby letters of credit are conditional commitments issued by Severn guaranteeing performance by a customer to various municipalities.

Severn determined that a reserve against certain standby letters of credit was prudent due to insufficient collateral supporting these letters of credit as of June 30, 2014.  Severn is working on a resolution of this matter and it is anticipated that adequate collateral will be obtained to warrant the reversal of a majority of the reserve in the near future.

The revised Selected Financial Data table is attached to this press release.

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

7,235

5,706

8,562

7,421

7,343


Income (loss) before income tax provision

(576)

877

(5,472)

(12,372)

322


Income tax provision

-

10

-

8,176

90



Net income (loss)

$               (576)

$                 867

$             (5,472)

$           (20,548)

$                 232










Per Share Data:







Basic earnings (loss) per share

$                (0.12)

$                 0.03

$                (0.58)

$                (2.08)

$                (0.01)


Diluted earnings (loss) per share

$                (0.12)

$                 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

10,067,379

10,103,153

10,066,679

10,066,679

10,108,470










Performance Ratios:







Return on average assets

-0.07%

0.11%

-0.66%

-2.45%

0.03%


Return on average equity

-0.71%

1.06%

-6.31%

-19.07%

0.21%


Net interest margin

3.19%

3.23%

3.15%

3.21%

3.29%


Efficiency ratio*

109.32%

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

616,956

614,986

614,552

608,769

642,801


Allowance for loan losses

(10,828)

(11,225)

(11,739)

(12,270)

(12,765)



Net loans

606,128

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

82,150

83,202

82,769

88,496

109,313


Bank's Tier 1 core capital to total assets

13.2%

13.2%

12.9%

13.3%

14.9%


Book value per share

$                 5.51

$                5.62

$                5.57

$                6.14

$                8.21










Asset Quality Data:







Non-accrual loans

$             13,401

$             12,567

$             11,035

$             22,771

$             37,537


Foreclosed real estate

5,689

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

2.2%

2.1%

1.8%

3.8%

6.0%


Total non-accrual loans to total assets

1.7%

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

80.8%

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)

1,868

2,390

2,091

4,750

5,908


Performing troubled debt restructurings

30,147

33,149

34,827

39,548

45,851

 

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
"Matrix is an ambitious open standard and implementation that's set up to break down the fragmentation problems that exist in IP messaging and VoIP communication," explained John Woolf, Technical Evangelist at Matrix, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Some people worry that OpenStack is more flash then substance; however, for many customers this could not be farther from the truth. No other technology equalizes the playing field between vendors while giving your internal teams better access than ever to infrastructure when they need it. In his session at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, will talk through some real-world OpenStack deployments and look into the ways this can benefit customers of all sizes....
Ayehu provides IT Process Automation & Orchestration solutions for IT and Security professionals to identify and resolve critical incidents and enable rapid containment, eradication, and recovery from cyber security breaches. Ayehu provides customers greater control over IT infrastructure through automation. Ayehu solutions have been deployed by major enterprises worldwide, and currently, support thousands of IT processes across the globe. The company has offices in New York, California, and Isr...
"A lot of times people will come to us and have a very diverse set of requirements or very customized need and we'll help them to implement it in a fashion that you can't just buy off of the shelf," explained Nick Rose, CTO of Enzu, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Web Real-Time Communication APIs have quickly revolutionized what browsers are capable of. In addition to video and audio streams, we can now bi-directionally send arbitrary data over WebRTC's PeerConnection Data Channels. With the advent of Progressive Web Apps and new hardware APIs such as WebBluetooh and WebUSB, we can finally enable users to stitch together the Internet of Things directly from their browsers while communicating privately and securely in a decentralized way.
SYS-CON Events announced today that CA Technologies has been named “Platinum Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business – from apparel to energy – is being rewritten by software. From ...
Zerto exhibited at SYS-CON's 18th International Cloud Expo®, which took place at the Javits Center in New York City, NY, in June 2016. Zerto is committed to keeping enterprise and cloud IT running 24/7 by providing innovative, simple, reliable and scalable business continuity software solutions. Through the Zerto Cloud Continuity Platform™, organizations can seamlessly move and protect virtualized workloads between public, private and hybrid clouds. The company’s flagship product, Zerto Virtual...
All organizations that did not originate this moment have a pre-existing culture as well as legacy technology and processes that can be more or less amenable to DevOps implementation. That organizational culture is influenced by the personalities and management styles of Executive Management, the wider culture in which the organization is situated, and the personalities of key team members at all levels of the organization. This culture and entrenched interests usually throw a wrench in the work...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm.
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
Tintri VM-aware storage is the simplest for virtualized applications and cloud. Organizations including GE, Toyota, United Healthcare, NASA and 6 of the Fortune 15 have said "No to LUNs." With Tintri they manage only virtual machines, in a fraction of the footprint and at far lower cost than conventional storage. Tintri offers the choice of all-flash or hybrid-flash platform, converged or stand-alone structure and any hypervisor. Rather than obsess with storage, leaders focus on the business app...
Addteq is one of the top 10 Platinum Atlassian Experts who specialize in DevOps, custom and continuous integration, automation, plugin development, and consulting for midsize and global firms. Addteq firmly believes that automation is essential for successful software releases. Addteq centers its products and services around this fundamentally unique approach to delivering complete software release management solutions. With a combination of Addteq's services and our extensive list of partners,...
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform and how we integrate our thinking to solve complicated problems. In his session at 19th Cloud Expo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and sh...
Big Data, cloud, analytics, contextual information, wearable tech, sensors, mobility, and WebRTC: together, these advances have created a perfect storm of technologies that are disrupting and transforming classic communications models and ecosystems. In his session at @ThingsExpo, Erik Perotti, Senior Manager of New Ventures on Plantronics’ Innovation team, provided an overview of this technological shift, including associated business and consumer communications impacts, and opportunities it m...
For organizations that have amassed large sums of software complexity, taking a microservices approach is the first step toward DevOps and continuous improvement / development. Integrating system-level analysis with microservices makes it easier to change and add functionality to applications at any time without the increase of risk. Before you start big transformation projects or a cloud migration, make sure these changes won’t take down your entire organization.