ANNAPOLIS, MD (October 15, 2010) — Severn Bancorp, Inc., (Nasdaq SVBI) parent company of Severn Savings Bank, FSB (“Severn”), today announced results for the quarter and nine months ended September 30, 2010. Net income for the third quarter was $485,000 (unaudited), or $.01 per share, compared to net loss of $4.4 million (unaudited), or ($.48) per share for the third quarter of 2009. Net income was $550,000, or ($.07) per share for the nine months ended September 30, 2010, compared to net loss of $12.6 million, or ($1.38) per share for the nine months ended September 30, 2009. At September 30, 2010, Severn’s regulatory capital ratios continued to exceed the levels required to be considered “well capitalized” under applicable federal banking regulations, including its core (leverage) ratio of approximately 12.1% compared to the regulatory requirement of 5% for “well capitalized” status.
“While we are pleased to report a modest profit for the third quarter compared to last year’s third quarter loss, it is clear that economic conditions remain challenging,” said Alan J. Hyatt, president and chief executive officer. “Despite the disruptions in our industry and the overall economy we are continuing our strategy to provide full service banking to our customers.” Mr. Hyatt continued “We are confident that we are the best choice for Anne Arundel County residents who are seeking a financial institution that provides sound banking products and excellent customer service, as well as a commitment to reinvest in our community.”