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.