Severn Bancorp, Inc. Reports Significant Increase in Earnings for the First Half of 2015

Annapolis, MD (July 24, 2015) – Severn Bancorp, Inc., (Nasdaq: SVBI) (“Company”) parent company of Severn Savings Bank, FSB (“Severn”), today announced net income of $1,365,000 or $.08 per share for the second quarter of 2015 compared to a net loss of $(576,000) or $(.12) per share for the second quarter of 2014. Earnings for the second quarter also increased by 58% compared to net income of $865,000 or $.03 per share for the first quarter of 2015. Year to date earnings improved significantly at $2,230,000 or $.10 per share for 2015 versus $291,000 or $(.09) per share for the same period of 2014. Earnings per share is calculated using net income available for common shareholders, which is net income less preferred stock dividends and discount amortization. Another indication of numbers headed in the right direction came in the form of further decreases in non-performing assets.

“We are very pleased with the upward trend of our earnings,” stated Alan J. Hyatt, president and chief executive officer. Mr. Hyatt continued, “We are fortunate to continue to benefit from a still improving economy presenting us with ample opportunity to show the people and businesses of Anne Arundel County what we have to offer them. The more robust economy has also helped in the areas of reduction of delinquencies and non-performing assets coupled with a significant increase in mortgage originations. We are very optimistic about the rest of 2015.”

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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 $780 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 Bancorp, Inc.’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 the Company’s general market area, federal and state regulation, competition and other factors detailed from time to time in the Company’s filings with the Securities and Exchange Commission (the “SEC”), including “Item 1A. Risk Factors” contained in Severn Bancorp, Inc.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2014.