Severn Bancorp, Inc. Announces Dividend

Annapolis, MD (February 26, 2018) – Severn Bancorp, Inc., (Nasdaq: SVBI) (the “Company”), parent company of Severn Savings Bank, FSB, today announced that the Board of Directors approved a cash dividend to shareholders. The cash dividend of three cents ($0.03) per share of common stock will be payable on March 19, 2018 to shareholders of record at the close of business on March 8, 2018.

Alan J. Hyatt, President and Chief Executive Officer said “The Company is pleased to be able to resume paying a dividend to its shareholders. We are able to do so as a result of continuing growth in core earnings and loans. We remain focused on creating long term banking relationships with customers in our marketplace that prefer doing business with a community bank.”

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 $800 million and five branches located in Annapolis, Edgewater, Glen Burnie, and Severna Park, 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.

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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, 2016.

Severn Bancorp, Inc. Announces Double Digit Percentage Increase in Earnings

Annapolis, MD (October 27, 2017) – Severn Bancorp, Inc., (Nasdaq: SVBI) parent company of Severn Savings Bank, FSB, today announced net income of $1.26 million, or $0.09 per diluted share for the third quarter of 2017. This is an increase of 19% over the third quarter of 2016 results of $1.06 million, or $0.04 per diluted share. Additionally, net income increased 28% when comparing to the prior period where net income was $982 thousand, or $0.07 per diluted share, for the quarter ended June 30, 2017.

For the nine months ended September 30, 2017 net income was $3.17 million compared to $14.4 million for the same period in 2016. Included in the results for the nine months ended September 30, 2016 was the effect of the reversal of the valuation allowance on the net deferred tax asset which occurred in the second quarter of 2016. This resulted in a negative income tax provision of $10.8 million. Excluding the effect of this one-time tax benefit, income before taxes was $5.3 million and $3.6 million for the nine months ended September 30, 2017 and 2016, respectively, representing a 47% increase.

Total assets were $801.3 million as of September 30, 2017, which was a $13.8 million increase from $787.5 million as of December 31, 2016. Deposits increased by $21.5 million as of September 30, 2017 compared to December 31, 2016.

Asset quality has improved during the nine months ended September 30, 2017. Total non-performing assets were $7.5 million as of September 30, 2017 versus $10.8 million as of December 31, 2016, which represents a 31% decrease. Total non-accrual loans to total loans decreased from 1.6% as of December 31, 2016 to 1.0% as of September 30, 2017.

“We are pleased with our growth in earnings”, stated Alan J. Hyatt, President and Chief Executive Officer. Mr. Hyatt continued, “Our cost of funds continues to decrease as we repay or refinance long outstanding Federal Home Loan Bank borrowings. Replacing these borrowings with lower cost funding has allowed us to significantly improve our net interest margin. Commercial lending and deposit activity has been robust for the first three quarters of this year. We are building strong banking relationships that are beneficial to the company and our customers. We are definitely in growth mode and very optimistic about our outlook.”

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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 $797.7 million and five branches located in Annapolis, Edgewater, Glen Burnie, and Severna Park, 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.

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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, 2016.

Severn Bancorp, Inc. Announces Second Quarter Earnings

Annapolis, MD (July 28, 2017) – Severn Bancorp, Inc., (Nasdaq: SVBI) parent company of Severn Savings Bank, FSB, today announced net income of $982 thousand or $0.07 per share for the second quarter of 2017. In comparison, the net income for the second quarter of 2016 was $12.5 million. However, in 2016 there was a one-time reversal of a valuation allowance on the deferred tax asset of $11.2 million. On a pretax basis, income for the second quarter of 2017 was $1.6 million versus $1.3 million for the second quarter of 2016.

For the six months ended June 30, 2017 net income was $1.9 million compared to $13.4 million for 2016. The $11.2 million reversal of the valuation allowance on the deferred tax asset in 2016 was the reason for the large variance. On a pretax basis, income was $3.1 million and $2.2 million for the six months ended June 30, 2017 and 2016, respectively.

Total assets were $775.4 million as of June 30, 2017, which was a $12.0 million decrease from $787.5 million as of December 31, 2016. The decrease is primarily due to a reduction in cash that was used to repay $20 million in Federal Home Loan Bank borrowings and to fund new loans.

Asset quality has improved during the six months ended June 30, 2017. Total non-performing assets decreased 44%, moving from $10.8 million as of December 31, 2016 to $6.1 million as of June 30, 2017. Total non-accrual loans to net loans decreased from 1.6% as of December 31, 2016 to 0.8% as of June 30, 2017. The improving asset quality and low charge off levels through June 30, 2017 resulted in a lower required allowance for loan losses. As a result, the allowance for loan losses was reduced by a $375 thousand reversal of provisions for loan losses during the quarter ended June 30, 2017. For the six months ended June 30, 2017, the allowance for loan losses was reduced by $650 thousand in reversals of provisions for loan losses.

“Earnings have improved over the year, aided in part by the reduction of higher cost Federal Home Loan Bank borrowings”, stated Alan J. Hyatt, President and Chief Executive Officer. Mr. Hyatt continued, “We are working diligently on increasing our lower cost core deposits and expanding our lending efforts. We have new team members committed to these efforts, and we are putting plans in place for additional growth. Additionally, we have evaluated our mortgage production model and are making significant changes to improve our lead sourcing and marketing activities. We look forward to partnering with Mid Maryland Title to provide full mortgage service to our customers. We are continuing on the path of making Severn the most efficient and full service choice for our market.”
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 $775.4 million and five branches located in Annapolis, Edgewater, Severna Park 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.

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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, 2016.

Severn Bancorp, Inc. Announces Purchase of Title Company

Annapolis, MD (July 10, 2017) – Severn Bancorp, Inc., (Nasdaq: SVBI) (the “Company”) parent company of Severn Savings Bank, FSB (“Severn”), announced that it has entered into a definitive agreement to purchase Mid Maryland Title Company, a real estate settlement company that handles commercial and residential real estate settlements in Maryland. The purchase is subject to the completion of due diligence and is anticipated to close in September 2017.

This acquisition continues Severn Bancorp’s growth strategy and focus on being a full-service provider. Alan J. Hyatt, President and Chief Executive Officer commented, “Mid Maryland has provided great service for us in the past. Bringing them into the Bancorp family of companies allows us to offer the full spectrum of services. This addition will be a complement to our mortgage services, our commercial banking services and our commercial real estate services provided by our other subsidiary, Hyatt Commercial.”

Jerome Feldman, co-founder of Mid Maryland Title, said, “I have worked with Severn Bank for years and hold the staff in the highest regard. This merger is an excellent opportunity to bring the companies together to benefit the community.”

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 $799 million and operates five branches located in Annapolis, Edgewater, Glen Burnie, and Severna Park. 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.

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Severn Bancorp, Inc. Announces First Quarter Earnings

Annapolis, MD (April 26, 2017) – Severn Bancorp, Inc., (Nasdaq: SVBI) parent company of Severn Savings Bank, FSB (“Severn”), today announced net income of $925 thousand or $0.06 per share for the first quarter of 2017, a 2.0% increase from net income of $907 thousand or $0.03 per share for the first quarter of 2016. Earnings per share is calculated using net income available for common shareholders, which is net income less preferred stock dividends and discount amortization. Return on Average Assets (ROAA) was 0.47% for the quarter ended March 31, 2017, which was an improvement over the 0.12% reported for the quarter ended March 31, 2016. The Efficiency Ratio dropped to 81.25% for the quarter versus 85.32% for the first quarter of 2016.

Total assets increased by $11.3 million to $798.7 million as of March 31, 2017 compared to $787.4 million as of December 31, 2016. Loans remained flat at $609.7 million as of March 31, 2017 versus $610.3 million as of December 31, 2016. Deposits increased by $21.8 million to $593.8 million as of March 31, 2017, an increase of 3.8% over December 31, 2016. Borrowings decreased by $10 million during the quarter ended March 31, 2017 as the bank continues to pay down its FHLB borrowings.

“We are committed to increasing shareholder value”, stated Alan J. Hyatt, President and Chief Executive Officer. Mr. Hyatt continued, “We are focused on increasing revenue and driving loan growth. We are committed to Anne Arundel County and providing excellent service to the residents and local businesses. Our team is building relationships and representing Severn well in the community. We see a lot of opportunity for a successful remainder of the year.”

Click here to see full tables.

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 $798.7 million and five branches located in Annapolis, Edgewater, Severna Park 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.

Severn Bancorp, Inc. Announces Fourth Quarter Earnings and Year End Results

FOR IMMEDIATE RELEASE

Annapolis, MD (January 26, 2017) – Severn Bancorp, Inc., (“the Company”),(Nasdaq: SVBI) parent company of Severn Bank (“Severn”), today announced net income of $1,103,000 or $.08 per diluted share for the fourth quarter of 2016, a slight increase compared to net income of $1,078,000 or $.05 per diluted share for the fourth quarter of 2015. Net income was $15,539,000 or $1.19 per diluted share for the year ended December 31, 2016, compared to net income of $4,535,000 or $.21 per diluted share for the year ended December 31, 2015. The 2016 earnings included a non-recurring income tax benefit of approximately $11,837,000, resulting from a reversal of a net deferred tax asset valuation allowance which was recorded in the second quarter of 2016.  Diluted earnings per share is calculated using net income available for common shareholders, which is net income less preferred stock dividends and discount amortization. The Company did see a 4.8% decrease in interest expense during the year ended December 31, 2016 as compared to the year ended December 31, 2015. This reduction stems from a focused effort to replace high cost borrowings with core deposits resulting in a lower cost of funds and ultimately an improvement in net interest margin.

“The fourth quarter results remain steady,” stated Alan J. Hyatt, President and Chief Executive Officer. Mr. Hyatt continued, “Our real work has been on reducing our cost of funds and growing our community banking presence. We have been focused on relationships and pulling in deposits along with those relationships. We want to show the residents and businesses of Anne Arundel County what we have to offer and how Severn can work for them.  With retail branches in Edgewater, Annapolis, Severna Park, and Glen Burnie we continue to expand our commitment to the businesses and residents of this County.”

For the full table click here:

About Severn 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 five branches located in Annapolis, Edgewater and Glen Burnie, and Severna Park, Maryland. The bank specializes in exceptional customer service and holds itself and its employees to a high standard of community contribution. Severn Bank is a trade name used by Severn Savings Bank, FSB. Severn is on the Web at www.severnbank.com.

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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, 2015.

Severn Bancorp Announces Third Quarter Earnings

Annapolis, MD (October 27, 2016) – Severn Bancorp, Inc., (“the Company”),(Nasdaq: SVBI) parent company of Severn Bank (“Severn”), today announced net income of $1,055,000 or $.04 per diluted share for the third quarter of 2016 down just slightly compared to net income of $1,227,000 or $.06 per diluted share for the third quarter of 2015. Year to date earnings increased to $14,437,000 or $1.13 per diluted share for 2016 versus $3,457,000 or $.17 per diluted share for the same period of 2015. Year to date earnings for 2016 included the reversal of a valuation allowance recorded against the net deferred tax assets of the Company. This resulted in a net income tax benefit of $10,816,000 in 2016. On a pre-tax basis, year to date earnings increased 2.1% to $3,621,000 or $.18 per share for 2016 compared to $3,545,000 or $.17 per share for 2015.Diluted earnings per share is calculated using net income available for common shareholders, which is net income less preferred stock dividends and discount amortization.

“The third quarter 2016 results remain stable,” stated Alan J. Hyatt, President and Chief Executive Officer. Mr. Hyatt continued, “The Bank had solid earnings and decent numbers all around. We are dedicated to the goal of consistently keeping the trend in earnings going in the upward direction. We were pleased to announce the full repayment of our remaining TARP shares in September resulting in lower costs capital to the Company and greater financial strength. Our commercial banking team is doing well and establishing strong relationships in the community. We also opened our fifth branch in Severna Park in September and see excellent potential in that area.”

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About Severn 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 $779 million and five branches located in Annapolis, Edgewater and Glen Burnie, and Severna Park, Maryland. The bank specializes in exceptional customer service and holds itself and its employees to a high standard of community contribution. Severn Bank is a trade name used by Severn Savings Bank, FSB. Severn is on the Web at www.severnbank.com.
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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, 2015.

Severn Bancorp, Inc. Announces Full Redemption of all TARP Preferred Stock

Annapolis, MD (September 8, 2016) – Severn Bancorp, Inc., (Nasdaq: SVBI) (the “Company”) parent company of Severn Savings Bank, FSB (“Severn”), announced the redemption of the remaining portion of the 23,393 original shares of preferred stock sold in 2008 to the U.S. Department of the Treasury (the “TARP Shares”), now owned by third parties. The TARP Shares have a dividend rate of 9% per annum. The Company previously redeemed 10,000 TARP Shares on May 16, 2016, leaving 13,393 of those shares outstanding. On September 8, 2016 the Company paid $13.4 million to redeem the remaining 13,393 TARP Shares. After this redemption the Company will have fully repaid all of its TARP obligations.
Alan J. Hyatt, President and Chief Executive Officer commented, “We are pleased to announce the full redemption of the TARP Shares. This redemption eliminated and fully repaid the securities issued under the U.S. Department of Treasury’s TARP program. Going forward, this will reduce our cost of funds and further add to the financial strength of the Company.” He continued, “Our capital ratios after the redemption exceed requirements for well capitalized banks, leaving Severn well poised for further growth.”
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 $794 million and four branches located in Annapolis, Edgewater and Glen Burnie, Maryland, and another branch under construction in Severna Park, 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.
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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. The Company’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, including “Item 1A. Risk Factors” contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2015.