Click here to close now.




















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
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.
"We specialize in testing. DevOps is all about continuous delivery and accelerating the delivery pipeline and there is no continuous delivery without testing," noted Marc Hornbeek, Sr. Solutions Architect at Spirent Communications, in this SYS-CON.tv interview at @DevOpsSummit, held June 9-11, 2015, at the Javits Center in New York City.
How do you securely enable access to your applications in AWS without exposing any attack surfaces? The answer is usually very complicated because application environments morph over time in response to growing requirements from your employee base, your partners and your customers. In his session at @DevOpsSummit, Haseeb Budhani, CEO and Co-founder of Soha, shared five common approaches that DevOps teams follow to secure access to applications deployed in AWS, Azure, etc., and the friction an...
"Alert Logic is a managed security service provider that basically deploys technologies, but we support those technologies with the people and process behind it," stated Stephen Coty, Chief Security Evangelist at Alert Logic, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
Digital Transformation is the ultimate goal of cloud computing and related initiatives. The phrase is certainly not a precise one, and as subject to hand-waving and distortion as any high-falutin' terminology in the world of information technology. Yet it is an excellent choice of words to describe what enterprise IT—and by extension, organizations in general—should be working to achieve. Digital Transformation means: handling all the data types being found and created in the organizat...
The essence of cloud computing is that all consumable IT resources are delivered as services. In his session at 15th Cloud Expo, Yung Chou, Technology Evangelist at Microsoft, demonstrated the concepts and implementations of two important cloud computing deliveries: Infrastructure as a Service (IaaS) and Platform as a Service (PaaS). He discussed from business and technical viewpoints what exactly they are, why we care, how they are different and in what ways, and the strategies for IT to tran...
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.
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,...
The Internet of Things is not only adding billions of sensors and billions of terabytes to the Internet. It is also forcing a fundamental change in the way we envision Information Technology. For the first time, more data is being created by devices at the edge of the Internet rather than from centralized systems. What does this mean for today's IT professional? In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists addressed this very serious issue of pro...
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...
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...
Discussions about cloud computing are evolving into discussions about enterprise IT in general. As enterprises increasingly migrate toward their own unique clouds, new issues such as the use of containers and microservices emerge to keep things interesting. In this Power Panel at 16th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists addressed the state of cloud computing today, and what enterprise IT professionals need to know about how the latest topics and trends affect t...
"Our biggest growth area has been the security services, the managed services - the things that differentiate us in the market that there is no client that's too small and there's no client that's too big," explained Paul Mazzucco, Chief Security Officer at TierPoint, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
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.
Containers are changing the security landscape for software development and deployment. As with any security solutions, security approaches that work for developers, operations personnel and security professionals is a requirement. In his session at DevOps Summit, Kevin Gilpin, CTO and Co-Founder of Conjur, will discuss various security considerations for container-based infrastructure and related DevOps workflows.