ANNAPOLIS, Md., May 13, 2019 /PRNewswire/ -- Severn Bancorp,
Inc., (Nasdaq: SVBI) parent company of Severn Bank, today announced
net income of $2.6 million for the
three months ending March 31, 2019
versus $1.9 million for the same
quarter in 2018, which is a 38% increase in earnings. On a diluted
per share basis, earnings were $0.20
versus $0.15 for the quarters ended
March 31, 2019 and 2018,
respectively.
"Earnings look great for this quarter again," stated
Alan J. Hyatt, President and Chief
Executive Officer. Mr. Hyatt continued, "We are pleased with
the upward trend in earnings. We have launched an exciting new
retail deposit product offering, Kasasa rewards checking and are
having success building on relationships with local businesses and
business owners. Our community continues to see us as a partner in
their success and calls on us for all of their banking needs."
Net interest income increased 16% during the first quarter of
2019. Net interest income was $8.1
million during the first quarter of 2019 versus $7.0 million during the first quarter of
2018.
Noninterest income increased 26% during the quarter ended
March 31, 2019. Noninterest income
was $2.3 million for the three months
ended March 31, 2019, up from
$1.8 million as of March 31, 2018. Growth in mortgage banking
revenue, real estate commissions, and deposit fees contributed to
the increase.
Noninterest expenses were $6.8
million for the three months ended March 31, 2019 versus $6.1
million for the same period in 2018. The increase is due to
several factors, including: higher occupancy costs as a result of
the addition of a Wayson's Corner Branch in the second quarter of
2018; additional staffing due to the added Wayson's Corner Branch
and the addition of a Frederick mortgage production office in the
second quarter of 2018; along with higher commissions paid to
mortgage loan officers and real estate brokers as a result of
increased production in 2019.
Asset quality remains strong with total non-accrual loans to
total loans at 0.6% compared to 0.7% as of December 31, 2018. Total non-performing assets to
total assets held steady at 0.6% as of March
31, 2019 compared to 0.6% as of December 31, 2018.
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 $885 million and six
branches located in Annapolis,
Edgewater, Severna Park, Lothian/Wayson's Corner 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'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,
2018.
Severn Bancorp,
Inc.
|
Consolidated
Income Statement
|
(dollars in
thousands, except per share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Quarter-to-Date
income statement results:
|
Three Months Ended
March 31, 2019
|
|
|
|
|
|
|
2019
|
2018
|
$
Change
|
%
Change
|
|
|
|
|
|
|
|
|
Interest
Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on
loans
|
$
9,167
|
$
8,371
|
$
796
|
10%
|
|
Interest on
securities
|
259
|
320
|
(61)
|
-19%
|
|
Other interest
income
|
1,117
|
186
|
931
|
501%
|
|
|
|
|
|
|
|
|
|
Total interest
income
|
10,543
|
8,877
|
1,666
|
19%
|
|
|
|
|
|
|
|
|
Interest
Expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on
deposits
|
1,869
|
1,133
|
736
|
65%
|
|
Interest on long term
borrowings
|
589
|
760
|
(171)
|
-23%
|
|
|
|
|
|
|
|
|
|
Total interest
expense
|
2,458
|
1,893
|
565
|
30%
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
8,085
|
6,984
|
1,101
|
16%
|
|
|
|
|
|
|
|
|
|
Provision for
(reversal of) loan losses
|
0
|
0
|
-
|
0%
|
|
|
|
|
|
|
|
|
|
Net interest income
after provision for (reversal of) loan losses
|
8,085
|
6,984
|
1,101
|
16%
|
|
|
|
|
|
|
|
|
Noninterest
Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage-banking
revenue
|
720
|
595
|
125
|
21%
|
|
Real Estate
Commissions
|
482
|
385
|
97
|
25%
|
|
Real Estate
Management Income
|
164
|
183
|
(19)
|
-11%
|
|
Other noninterest
income
|
894
|
630
|
264
|
42%
|
|
|
|
|
|
|
|
|
|
Total noninterest
income
|
2,260
|
1,793
|
467
|
26%
|
|
|
|
|
|
|
|
|
|
Net interest income
plus noninterest income after provision for (reversal of) loan
losses
|
10,345
|
8,777
|
1,568
|
18%
|
|
|
|
|
|
|
|
|
Noninterest
Expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and
related expenses
|
4,525
|
4,278
|
247
|
6%
|
|
Net Occupancy &
Depreciation
|
415
|
344
|
71
|
21%
|
|
Net Costs of
Foreclosed Real Estate
|
125
|
32
|
93
|
291%
|
|
Other
|
|
1,685
|
1,493
|
192
|
13%
|
|
|
|
|
|
|
|
|
|
Total noninterest
expense
|
6,750
|
6,147
|
603
|
10%
|
|
|
|
|
|
|
|
|
|
Income before income
tax provision
|
3,595
|
2,630
|
965
|
37%
|
|
|
|
|
|
|
|
|
|
Income tax
provision
|
986
|
745
|
241
|
32%
|
|
|
|
|
|
|
|
|
|
Net income
|
$
2,609
|
$
1,885
|
$
724
|
38%
|
|
Net income available
to common shareholders
|
$
2,609
|
$
1,815
|
$
794
|
44%
|
|
|
|
|
|
|
|
|
Severn Bancorp,
Inc.
|
Consolidated
Balance Sheet
|
(dollars in
thousands, except per share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
2019
|
December 31,
2018
|
$
Change
|
%
Change
|
Balance Sheet
Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
Cash
|
|
$
3,276
|
$
2,880
|
$
396
|
14%
|
|
Federal funds and
interest bearing deposits in other banks
|
109,825
|
185,460
|
(75,635)
|
-41%
|
|
Certificates of
deposit held as investment
|
8,780
|
8,780
|
0
|
0%
|
|
Investment securities
available for sale, at fair value
|
10,992
|
11,978
|
(986)
|
-8%
|
|
Investment securities
held to maturity
|
35,793
|
38,912
|
(3,119)
|
-8%
|
|
Loans held for sale,
at fair value
|
6,660
|
9,686
|
(3,026)
|
-31%
|
|
Loans
receivable
|
674,220
|
682,349
|
(8,129)
|
-1%
|
|
Allowance for loan
losses
|
(8,085)
|
(8,044)
|
(41)
|
1%
|
|
Accrued interest
receivable
|
2,632
|
2,848
|
(216)
|
-8%
|
|
Foreclosed real
estate, net
|
1,601
|
1,537
|
64
|
4%
|
|
Premises and
equipment, net
|
22,483
|
22,745
|
(262)
|
-1%
|
|
Restricted stock
investments
|
2,856
|
3,766
|
(910)
|
-24%
|
|
Bank owned life
insurance
|
5,264
|
5,225
|
39
|
1%
|
|
Deferred income
taxes, net
|
2,159
|
2,363
|
(204)
|
-9%
|
|
Prepaid expenses and
other assets
|
6,587
|
3,748
|
2,839
|
76%
|
|
|
|
|
|
|
|
|
|
|
|
|
$
885,043
|
$
974,233
|
$
(89,190)
|
-9%
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS EQUITY
|
|
|
|
|
|
Deposits
|
$
709,873
|
$
779,506
|
$
(69,633)
|
-9%
|
|
Borrowings
|
48,500
|
73,500
|
(25,000)
|
-34%
|
|
Subordinated
debentures
|
20,619
|
20,619
|
-
|
0%
|
|
Accounts payable and
accrued expenses
|
5,223
|
2,155
|
3,068
|
142%
|
|
|
|
|
|
|
|
|
|
Total
Liabilities
|
784,215
|
875,780
|
(91,565)
|
-10%
|
|
|
|
|
|
|
|
|
|
Common
stock
|
128
|
128
|
-
|
0%
|
|
Additional paid-in
capital
|
65,662
|
65,538
|
124
|
0%
|
|
Retained
earnings
|
35,087
|
32,860
|
2,227
|
7%
|
|
Accumulated
comprehensive income (loss)
|
(49)
|
(73)
|
24
|
-33%
|
|
|
|
|
|
|
|
|
|
Total
Stockholders' Equity
|
100,828
|
98,453
|
2,375
|
2%
|
|
|
|
|
|
|
|
|
|
|
|
|
$
885,043
|
$
974,233
|
$
(89,190)
|
-9%
|
|
|
|
|
|
|
|
|
Severn Bancorp,
Inc.
|
|
|
|
Selected Financial
Data
|
|
|
|
(dollars in
thousands, except per share data)
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31, 2019
|
|
|
|
|
|
|
|
|
2019
|
2018
|
|
|
|
|
Per Share
Data:
|
|
|
|
|
|
|
|
Basic earnings per
share
|
$
0.20
|
$
0.15
|
|
|
|
|
|
Diluted earnings per
share
|
$
0.20
|
$
0.15
|
|
|
|
|
|
Average basic shares
outstanding
|
12,773,259
|
12,241,554
|
|
|
|
|
|
Average diluted
shares outstanding
|
12,857,643
|
12,334,637
|
|
|
|
|
|
Tangible Book Value
Per Share
|
$
7.81
|
$
7.46
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance
Ratios:
|
|
|
|
|
|
|
|
Return on average
assets
|
1.14%
|
0.94%
|
|
|
|
|
|
Return on average
equity
|
10.47%
|
8.11%
|
|
|
|
|
|
Net interest
margin
|
3.65%
|
3.66%
|
|
|
|
|
|
Efficiency
ratio*
|
64.04%
|
69.67%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
2019
|
December 31,
2018
|
|
|
|
|
Asset Quality
Data:
|
|
|
|
|
|
|
|
Non-accrual
loans
|
$
3,795
|
$
4,656
|
|
|
|
|
|
Foreclosed real
estate
|
1,601
|
1,537
|
|
|
|
|
|
|
Total non-performing
assets
|
5,396
|
6,193
|
|
|
|
|
|
Total non-accrual
loans to total loans
|
0.6%
|
0.7%
|
|
|
|
|
|
Total non-accrual
loans to total assets
|
0.4%
|
0.5%
|
|
|
|
|
|
Allowance for loan
losses
|
8,085
|
8,044
|
|
|
|
|
|
Allowance for loan
losses to total loans
|
1.2%
|
1.2%
|
|
|
|
|
|
Allowance for loan
losses to total
|
|
|
|
|
|
|
|
|
non-accrual
loans
|
213.0%
|
172.8%
|
|
|
|
|
|
Total non-performing
assets to total assets
|
0.6%
|
0.6%
|
|
|
|
|
|
Non-accrual troubled
debt restructurings (included above)
|
443
|
446
|
|
|
|
|
|
Performing troubled
debt restructurings
|
10,618
|
10,698
|
|
|
|
|
|
Loan to deposit
ratio
|
95.0%
|
87.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
|
This non-GAAP
financial measure is calculated as noninterest expenses less OREO
expenses divided by net interest income plus noninterest
income
|
|
|
|
|
|
|
|
|
|
|
View original
content:http://www.prnewswire.com/news-releases/severn-bancorp-inc-announces-a-38-increase-in-first-quarter-earnings-300849059.html
SOURCE Severn Bancorp, Inc.