ANNAPOLIS, MD (July 15, 2011) — Severn Bancorp, Inc., (Nasdaq SVBI) parent company of Severn Savings Bank, FSB (“Severn”), today announced results for the quarter and six months ended June 30, 2011. Net loss for the second quarter was $846,000 (unaudited), or ($.13) per share, compared to net income of $593,000 (unaudited), or $.02 per share for the second quarter of 2010. Net loss was $399,000 or ($.13) per share for the six months ended June 30, 2011, compared to net income of $65,000, or ($.08) per share for the six months ended June 30, 2010. Earnings per share is calculated using net income (loss) available for common shareholders, which is net income (loss) less preferred stock dividends.
The net loss for the quarter is a result of management’s decision to add approximately $3 million to the loan loss reserves during the quarter for potential losses on primarily acquisition and development loans. While non-performing assets continue to decrease, and loan delinquencies improve, management elected to add to the reserves as it continues to assess its portfolio.
“While we are not pleased with its impact, management is comfortable with the decision to act in a prudent and cautious manner with respect to the allowance for loan losses. Were it not for this added reserve, the bank would have had another profitable quarter,” said Alan J. Hyatt, president and chief executive officer. Mr. Hyatt continued “With the continued sluggish economy nonperforming loans remain one of our toughest challenges. However, due to our diligence in this area our overall delinquencies have decreased. This judicious reserve decision, along with our persistent efforts to be the premier community bank for the residents and businesses of Anne Arundel County, continue to put the Bank in an excellent position for a strong future.”
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ANNAPOLIS, MD — Severn Savings Bank, FSB (Severn) announced the appointment of Dr. James H. Johnson, Jr. to its Board of Directors. The addition increases the number of Severn Bank directors to 13.
“The addition of Dr. Johnson to Severn Bank’s Board of Directors ensures the Bank continues to benefit from a diversity of knowledge and opinions. Jim will make an excellent board member due to his proven leadership skills and can-do attitude. We look forward to benefiting from his knowledge and experience,” said Alan J. Hyatt, president and chief executive officer.
Dr. Johnson is Professor Emeritus of Civil Engineering and former dean of the College of Engineering, Architecture and Computer Sciences at Howard University. Dr. Johnson is a member of the National Research Council’s Division of Earth and Life Studies oversight committee, chair of the U.S. EPA National Advisory Council for Environmental Policy and Technology, chair of the Anne Arundel Community College (MD) Board of Trustees and president of the Maryland Association of Community Colleges. He has authored over 60 scholarly articles, contributed to four books, co-edited two books, and is the 2005 recipient of the National Society of Black Engineers’ Lifetime Achievement Award in Academia.
Regarding his appointment Dr. Johnson commented, “The decision to serve on Severn’s Board was an easy one. The Bank’s goal to address the unique needs of its customers in a timely manner, its community outreach activities and environmentally friendly outlook are all consistent with my life’s values. I welcome the opportunity to contribute to its future success.”
About Severn Savings Bank
Founded in 1946, Severn Savings Bank, FSB 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 $970 million and four branches located in Annapolis, Edgewater and Glen Burnie. 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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ANNAPOLIS, MD (May 9, 2011) — Severn Savings Bank is pleased to announce it is sponsoring three schools in communities across Anne Arundel County to ensure students are financially literate before they leave high school. The Severn Bank Financial Scholars Program uses the leading education technology platform provided by EverFi, Inc. to teach, assess, and certify students in hundreds of topics including savings and budgeting, understanding credit scores, credit cards and managing debt, tax and insurance, investing, consumer fraud and protection, and managing loans to finance higher education. The course allows students to use the latest technology, including rich media, high-definition video, animation and avatars to interact and have fun with complex topics normally reserved for adults.
“We believe in empowering communities and students with critical knowledge that will help them chart their course for financial success,” said Alan J. Hyatt, president and chief executive officer. “We are committed to ensuring all students have access to these life-changing topics, served up in a fun way using new media.”
Severn Bank has made a three-year commitment to this initiative and remains dedicated to promoting financial literacy across the community. Severn will be sponsoring the EverFi Financial Literacy Platform program in the following schools: Annapolis High School, Old Mill High School and Germantown Elementary.
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ANNAPOLIS, MD (March 2, 2011) — Severn Savings Bank, FSB has joined Maryland’s IOLTA Honor Roll. The Interest on Lawyer Trust Account (IOLTA) program administered by the Maryland Legal Services Corporation (MLSC) pools deposits that would not otherwise earn interest and deposits them into special interest bearing accounts maintained by law firms. In order to participate in the optional Maryland IOLTA program banks must agree to pay a rate of interest on IOLTA accounts that is comparable to that paid on other similarly situated accounts. In addition to meeting this requirement Severn Savings Bank has joined the Maryland IOLTA Honor Roll, a joint program of the Maryland State Bar Association and MLSC. As a member of the Honor Roll, Severn has agreed to pay a net yield of the greater of 65% of the Federal Funds Target Rate or 1% on all IOLTA deposits, exceeding the minimum requirements governing IOLTA participation.
Interest proceeds from IOLTA accounts are automatically paid to the MLSC to support law-related charitable purposes. Revenue generated from the IOLTA Honor Roll program is used to make grants to nonprofit organizations providing legal services to low income individuals. IOLTA disbursements may also be awarded to organizations and projects which strengthen local communities. “It is important to us to participate in the Honor Roll program. Particularly in what have been very challenging economic times we recognize the increased need for this type of assistance and support from community banks and we are happy to be able to help strengthen our local communities by generating revenue used to fund civil legal services in Maryland, “stated Alan J. Hyatt president and chief executive officer.
Edgewater, MD – As the largest community financial institution in Anne Arundel County, Severn Savings Bank understands the importance of giving back to the community. With that in mind, Severn is proud to announce its part in the financing of the Coretta Scott King Memorial Garden at Sojourner-Douglass College in Edgewater, MD.
“We’re honored to have such a large part in the founding of the Coretta Scott King Memorial Garden,” said Severn Savings Bank Chairman and President Alan Hyatt. “We firmly believe in enriching our community and it is our hope that this memorial will continue to enrich the Sojourner-Douglass College and Anne Arundel County communities for years to come.”
The memorial will be dedicated on Thursday, April 28 at noon on the Sojourner-Douglass College campus. Attorney General Douglas F. Gansler, Sojourner-Douglass College President Charles W. Simmons, Ph.D and members of the school’s Dr. Martin Luther King Jr. committee will be in attendance. A special guest appearance will be made by Dr. Bernice A. King.
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Annapolis, MD – Community is a major part of Severn Savings Bank’s business philosophy and, as the largest locally owned financial institution in Anne Arundel County, they’ve realized the importance of giving back to that community. That’s why, in 2011, Severn is providing financing for a block of new Habitat for Humanity homes included in the Clay Street Project in Annapolis.
Severn’s work with Habitat for Humanity didn’t just begin this year – For several years the bank has handled the servicing of all Habitat for Humanity of the Chesapeake loans at no cost. Which is why, when they were approached about financing for some of the homeowners on Clay Street, Severn Chairman and President Alan Hyatt jumped at the opportunity to make a larger impact in Annapolis.
“At Severn, we believe in helping our neighbors. That’s why we’ve spent the last several years working with Habitat for Humanity by servicing loans locally,” Hyatt said. “When we were approached about helping families secure housing in Habitat homes on Clay Street, we knew we had to help.”
To date, Severn has committed $500,000 in loans to families whose dream was to one day own a home of their own. This commitment will be honored on Friday, April 15, 2011 at Severn’s Westgate location. During the ceremony, the families of Ronald Moulden and Yolanda Murray will close on their mortgages and receive the keys to their new homes. Members of Habitat for Humanity will be in attendance along with Severn Chairman and President Alan Hyatt.
Download Official Press Release Here.
ANNAPOLIS, MD (April 15, 2011) — Severn Bancorp, Inc., (Nasdaq: SVBI) parent company of Severn Savings Bank, FSB (“Severn”), today announced an increase of $975,000 in net income for the quarter ended March 31, 2011 compared to the quarter ended March 31, 2010. Net income was $447,000 or $.00 per share for the fist quarter of 2011, compared to a net loss of $528,000 or ($.10) for the first quarter of 2010. Earnings per share is calculated using net income available for common shareholders, which is net income less preferred stock dividends.
“We are pleased to report year-over-year improvement in earnings as we continue to steer through the sluggish economic recovery,” said Alan J. Hyatt, president and chief executive officer. Mr. Hyatt continued, “We persist in our efforts to balance ensuring sustained shareholder value, increasing regulatory demands being placed on financial institutions and providing excellent full service banking to Anne Arundel County residents and businesses.”
ANNAPOLIS, MD (January 20, 2011) — Severn Bancorp, Inc., (Nasdaq: SVBI) parent company of Severn Savings Bank, FSB (“Severn”), today announced net income of $607,000 for the fourth quarter, an increase of $3.3 million compared to a net loss of $2.7 million for the fourth quarter of 2009. Net income was $1.2 million, or ($.06) per share for the year ended December 31, 2010, compared to a net loss of $15.2 million, or ($1.68) per share for the year ended December 31, 2009. Earnings per share is calculated using net income available for common shareholders, which is net income less preferred stock dividends. At December 31, 2010, Severn also continued its trend of regulatory capital ratios exceeding the levels required to be considered “well capitalized” under applicable federal banking regulations, including its core (leverage) ratio of approximately 12.3% compared to the regulatory requirement of 5% for “well capitalized” status.
“We are happy to report a year over year increase in earnings, and while we remain cautious about the slow economic recovery, we are encouraged by positive economic signs, and are pleased with the results we are seeing with our continued shift toward being a full-service relationship bank. Going forward we see particular opportunity in our ability to assist local businesses on their road to recovery with our increased emphasis on commercial lending,” said Alan J. Hyatt, president and chief executive officer. Mr. Hyatt continued “We will continue our hard work and our commitment to our vision of being recognized as the premier community bank by Anne Arundel County residents and businesses”
ANNAPOLIS, MD (October 25, 2010) Severn Savings Bank has made a donation that will fund 13 grants for local Anne Arundel County public school teachers. The effort supports the Community Foundation of Anne Arundel County’s second annual “Grants 4 Teachers” program.
The Grants 4 Teachers program enables local teachers to apply for mini-grants to support education projects and activities that enhance, support or enrich their educational curricula in low to moderate income schools. Severn Savings Bank awarded 13 teachers a total of $4000 to support their educational projects this fall.
“The applications we reviewed were all so inspiring,” said Kevin Carter, CRA Officer for Severn Savings Bank. “We are extremely pleased to be able to help these dedicated teachers implement their great ideas to enhance student’s excitement to learn in our county schools.”
Severn Savings Bank has a strong tradition of supporting community organizations, and it is part of the company mission to invest in the climate, culture, commerce and people of the Chesapeake Bay region. Severn Bank is actively involved in their community supporting programs, such as Grants 4 teachers, and the team enjoyed reading through the 28 applications submitted to select the 13 grant winners.
The Severn Savings Bank grant of $4,000 to the Grants 4 Teachers Fund, established by Joe Van Deuren of Balanced Life Skills and the Community Foundation of Anne Arundel County, will go directly to teachers in twelve Anne Arundel County public schools.
The microloans will fund projects such as the following:
- A $389 grant to Emily Miller, an art teacher in Annapolis Middle School, to underwrite her efforts to teach students that art is also about raising awareness and using talents to better the community. Following the success of last year’s Hearts for Haiti project, they plan to create Hearts for Homelessness oil pastels to raise money for the local homeless shelter and the SPCA. The money will be used for art supplies, mattes and framing.
- A $386 grant to Brooklyn Park Middle School teachers, Lisa Harding and Deborah Prestridge, to plant a butterfly garden in front of the school. Their students will study the migratory habits of the Monarch butterfly, grow milkweed and other native plants in the classroom, make scale drawings of the garden, and then plant with the advice of the staff at Arlington Echo.
- A $150 grant to Colleen Nehmanm, a teacher at the Ferndale Early Education Center in Glen Burnie, to support the Read for the Gold program which encourages a love of reading and promotes reading at home. The grant purchases books that the children can keep and prizes that the children earn through reaching reading milestones.
- A $300 grant awarded to Patricia McMahon of Four Seasons Elementary School in Gambrills to help bring More Seasons to Four Seasons. Part of the school’s effort to become a Green School, the students will plant, in front of the school, bulbs and flowers that offer color at different times of the year.
Other mini grants will fund flip camcorders for students at Lindale Middle School in Linthicum; thinking maps for students at Maryland City Elementary School in Laurel; bilingual CDs, audio books and players for ESOL students at Park Elementary and Brooklyn Park Elementary; planting a native plant garden at Pasadena Elementary; and Numbers Talk teacher training at Richard Henry Lee Elementary in Glen Burnie. It will also fund personal story Mini Quilts at Riviera Beach Elementary in Pasadena; an in classroom sensory space for special needs students at Van Bokkelen Elementary in Severn; and outreach through written letters to Iditarod mushers in Alaska from 3rd graders at Windsor Farm Elementary in Annapolis.
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.”