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
Bert Loomis was a visionary. This general session will highlight how Bert Loomis and people like him inspire us to build great things with small inventions. In their general session at 19th Cloud Expo, Harold Hannon, Architect at IBM Bluemix, and Michael O'Neill, Strategic Business Development at Nvidia, discussed the accelerating pace of AI development and how IBM Cloud and NVIDIA are partnering to bring AI capabilities to "every day," on-demand. They also reviewed two "free infrastructure" pr...
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal ...
Cloud promises the agility required by today’s digital businesses. As organizations adopt cloud based infrastructures and services, their IT resources become increasingly dynamic and hybrid in nature. Managing these require modern IT operations and tools. In his session at 20th Cloud Expo, Raj Sundaram, Senior Principal Product Manager at CA Technologies, will discuss how to modernize your IT operations in order to proactively manage your hybrid cloud and IT environments. He will be sharing be...
New competitors, disruptive technologies, and growing expectations are pushing every business to both adopt and deliver new digital services. This ‘Digital Transformation’ demands rapid delivery and continuous iteration of new competitive services via multiple channels, which in turn demands new service delivery techniques – including DevOps. In this power panel at @DevOpsSummit 20th Cloud Expo, moderated by DevOps Conference Co-Chair Andi Mann, panelists will examine how DevOps helps to meet th...
NHK, Japan Broadcasting, will feature the upcoming @ThingsExpo Silicon Valley in a special 'Internet of Things' and smart technology documentary that will be filmed on the expo floor between November 3 to 5, 2015, in Santa Clara. NHK is the sole public TV network in Japan equivalent to the BBC in the UK and the largest in Asia with many award-winning science and technology programs. Japanese TV is producing a documentary about IoT and Smart technology and will be covering @ThingsExpo Silicon Val...
Five years ago development was seen as a dead-end career, now it’s anything but – with an explosion in mobile and IoT initiatives increasing the demand for skilled engineers. But apart from having a ready supply of great coders, what constitutes true ‘DevOps Royalty’? It’ll be the ability to craft resilient architectures, supportability, security everywhere across the software lifecycle. In his keynote at @DevOpsSummit at 20th Cloud Expo, Jeffrey Scheaffer, GM and SVP, Continuous Delivery Busine...
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, New York, and 21st International Cloud Expo, which will take place in November in Silicon Valley, California.
While some vendors scramble to create and sell you a fancy solution for monitoring your spanking new Amazon Lambdas, hear how you can do it on the cheap using just built-in Java APIs yourself. By exploiting a little-known fact that Lambdas aren’t exactly single threaded, you can effectively identify hot spots in your serverless code. In his session at 20th Cloud Expo, David Martin, Principal Product Owner at CA Technologies, will give a live demonstration and code walkthrough, showing how to o...
In his keynote at 19th Cloud Expo, Sheng Liang, co-founder and CEO of Rancher Labs, discussed the technological advances and new business opportunities created by the rapid adoption of containers. With the success of Amazon Web Services (AWS) and various open source technologies used to build private clouds, cloud computing has become an essential component of IT strategy. However, users continue to face challenges in implementing clouds, as older technologies evolve and newer ones like Docker c...
SYS-CON Events announced today that Hitachi, the leading provider the Internet of Things and Digital Transformation, will exhibit at 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. Hitachi Data Systems, a wholly owned subsidiary of Hitachi, Ltd., offers an integrated portfolio of services and solutions that enable digital transformation through enhanced data management, governance, mobility and analytics. We help globa...
Developers want to create better apps faster. Static clouds are giving way to scalable systems, with dynamic resource allocation and application monitoring. You won't hear that chant from users on any picket line, but helping developers to create better apps faster is the mission of Lee Atchison, principal cloud architect and advocate at New Relic Inc., based in San Francisco. His singular job is to understand and drive the industry in the areas of cloud architecture, microservices, scalability ...
SYS-CON Events announced today that T-Mobile will exhibit at 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. As America's Un-carrier, T-Mobile US, Inc., is redefining the way consumers and businesses buy wireless services through leading product and service innovation. The Company's advanced nationwide 4G LTE network delivers outstanding wireless experiences to 67.4 million customers who are unwilling to compromise on ...
SYS-CON Events announced today that Juniper Networks (NYSE: JNPR), an industry leader in automated, scalable and secure networks, will exhibit at 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. Juniper Networks challenges the status quo with products, solutions and services that transform the economics of networking. The company co-innovates with customers and partners to deliver automated, scalable and secure network...
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain.
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. In his Day 3 Keynote at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, will explore t...