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,

2016

2015

2015

2015

2015

Summary Operating Results:

Interest income

$              7,504

$              7,582

$              7,932

$              7,779

$              7,860

Interest expense

2,269

2,264

2,284

2,243

2,201

Net interest income

5,235

5,318

5,648

5,536

5,659

Provision for loan losses

-

(480)

-

100

100

Net interest income after provision

for loan losses

5,235

5,798

5,648

5,436

5,559

Non-interest income

1,221

1,409

1,469

2,332

900

Non-interest expense

5,549

6,127

5,838

6,368

5,593

Income before income tax provision

907

1,080

1,279

1,400

866

Income tax provision

-

2

52

35

1

Net income 

$                 907

$              1,078

$              1,227

$              1,365

$                 865

Net income available to common shareholders

$                 313

$                 484

$                 633

$                 772

$                 270

Per Share Data:

Basic earnings per share

$                 0.03

$                 0.05

$                 0.06

$                 0.08

$                 0.03

Diluted earnings per share

$                 0.03

$                 0.05

$                 0.06

$                 0.08

$                 0.03

Average basic shares outstanding

10,088,879

10,088,879

10,088,879

10,088,549

10,070,796

Average diluted shares outstanding

10,128,251

10,133,663

10,116,060

10,113,295

10,093,251

Performance Ratios:

Return on average assets

0.12%

0.14%

0.16%

0.18%

0.11%

Return on average equity

1.07%

1.28%

1.47%

1.65%

1.05%

Net interest margin

3.07%

3.10%

3.20%

3.16%

3.22%

Efficiency ratio*

85.25%

89.43%

80.17%

80.27%

86.26%

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,

2016

2015

2015

2015

2015

Balance Sheet Data:

Total assets

$           765,434

$           762,079

$           773,977

$           781,923

$           781,628

Total loans receivable

601,288

598,414

597,061

611,823

627,591

Allowance for loan losses

(8,633)

(8,758)

(8,689)

(8,944)

(8,964)

Net loans

592,655

589,656

588,372

602,879

618,627

Deposits

524,733

523,771

536,646

544,112

546,535

Borrowings

115,000

115,000

115,000

115,000

115,000

Stockholders' equity

86,885

86,456

85,876

85,145

84,275

Bank's Tier 1 core capital to total assets

15.0%

14.9%

14.5%

14.1%

14.0%

Book value per share

$                5.97

$                5.93

$                5.87

$                5.80

$                5.71

Asset Quality Data:

Non-accrual loans

$              8,274

$              8,974

$              8,778

$             10,107

$             13,317

Foreclosed real estate

1,737

1,744

1,919

2,092

2,211

Total non-performing assets

10,011

10,718

10,697

12,199

15,528

Total non-accrual loans to net loans

1.4%

1.5%

1.5%

1.7%

2.2%

Total non-accrual loans to total assets

1.1%

1.2%

1.1%

1.3%

1.7%

Allowance for loan losses

8,633

8,758

8,689

8,944

8,964

Allowance for loan losses to total loans

1.4%

1.5%

1.5%

1.5%

1.4%

Allowance for loan losses to total

non-accrual loans

104.3%

97.6%

99.0%

88.5%

67.3%

Total non-performing assets to total assets

1.3%

1.4%

1.4%

1.6%

2.0%

Non-accrual troubled debt restructurings (included above)

1,327

1,329

1,835

2,128

2,620

Performing troubled debt restructurings

23,934

24,386

24,449

25,591

26,175

Loan to deposit ratio

114.6%

114.3%

111.3%

112.4%

114.8%