Severn Bancorp, Inc. Announces First Quarter Earnings

Severn Bancorp, Inc.

Selected Financial Data

(dollars in thousands, except per share data)

(Unaudited)

For the Three Months Ended

March 31,

December 31,

September 30,

June 30,

March 31,

2015

2014

2014

2014

2014

Summary Operating Results:

Interest income

$               7,860

$               8,086

$               8,000

$               7,808

$               7,922

Interest expense

2,201

2,236

2,153

2,130

2,115

Net interest income

5,659

5,850

5,847

5,678

5,807

Provision for loan losses

100

400

250

(19)

200

Net interest income (loss) after provision

for loan losses

5,559

5,450

5,597

5,697

5,607

Non-interest income

900

1,142

1,245

962

976

Non-interest expense

5,593

5,041

5,754

7,235

5,706

Income (loss) before income tax provision

866

1,551

1,088

(576)

877

Income tax provision

1

1

20

-

10

Net income (loss)

$                 865

$               1,550

$               1,068

$                (576)

$                 867

Per Share Data:

Basic earnings (loss) per share

$                  0.03

$                  0.10

$                  0.05

$                (0.12)

$                  0.03

Diluted earnings (loss) per share

$                  0.03

$                  0.09

$                  0.05

$                (0.12)

$                  0.03

Common stock dividends per share

$                       -

$                       -

$                       -

$                       -

$                       -

Average basic shares outstanding

10,070,796

10,067,379

10,067,379

10,067,379

10,066,679

Average diluted shares outstanding

10,093,250

10,905,866

10,101,445

10,067,379

10,103,153

Performance Ratios:

Return on average assets

0.11%

0.20%

0.14%

-0.07%

0.11%

Return on average equity

1.05%

1.88%

1.30%

-0.71%

1.06%

Net interest margin

3.22%

3.32%

3.29%

3.19%

3.23%

Efficiency ratio*

86.26%

71.60%

80.40%

109.32%

84.90%

The efficiency ratio is general and administrative expenses as a percentage of net interest income plus non-interest income

As of

March 31,

December 31,

September 30,

June 30,

March 31,

2015

2014

2014

2014

2014

Balance Sheet Data:

Total assets

$           781,628

$           776,328

$           769,313

$            788,653

$           793,433

Total loans receivable

627,591

643,317

629,342

616,956

614,986

Allowance for loan losses

(8,964)

(9,435)

(9,282)

(10,828)

(11,225)

Net loans

618,627

633,882

620,060

606,128

603,761

Deposits

546,535

543,814

537,743

555,780

562,964

Borrowings

115,000

115,000

115,000

115,000

115,000

Stockholders' equity

84,275

83,810

82,739

82,150

83,202

Bank's Tier 1 core capital to total assets

13.9%

13.8%

13.7%

13.2%

13.2%

Book value per share

$                5.71

$                5.68

$                5.57

$                 5.51

$                5.62

Asset Quality Data:

Non-accrual loans

$             13,317

$             12,845

$             10,798

$              13,401

$             12,567

Foreclosed real estate

2,211

1,947

5,024

5,689

5,561

Total non-performing assets

15,528

14,792

15,822

19,090

18,128

Total non-accrual loans to net loans

2.2%

2.0%

1.7%

2.2%

2.1%

Total non-accrual loans to total assets

1.7%

1.7%

1.4%

1.7%

1.6%

Allowance for loan losses

8,964

9,435

9,282

10,828

11,225

Allowance for loan losses to total loans

1.4%

1.5%

1.5%

1.8%

1.8%

Allowance for loan losses to total

non-accrual loans

67.3%

73.5%

86.0%

80.8%

89.3%

Total non-performing assets to total assets

2.0%

1.9%

2.1%

2.4%

2.3%

Non-accrual troubled debt restructurings (included above)

2,620

2,641

1,853

1,868

2,018

Performing troubled debt restructurings

26,175

27,724

28,828

30,146

34,021

Loan to deposit ratio

114.8%

118.3%

117.0%

111.0%

109.2%