ANNAPOLIS, Md., Jan. 28, 2016 /PRNewswire/ -- Severn Bancorp, Inc., (Nasdaq: SVBI) ("Company") parent company of Severn Savings Bank, FSB ("Severn"), reported net income for the year ended December 31, 2015 of $4,535,000 or $.21 per diluted share, a 56% increase, versus net income of $2,909,000 or $.06 per diluted share for the year ended December 31, 2014. Net income for the fourth quarter of 2015 dipped slightly versus the fourth quarter of 2014, to $1,078,000 or $.05 per diluted share compared to net income of $1,550,000 or $.09 per diluted share. Earnings per share is calculated using net income available for common shareholders, which is net income less preferred stock dividends and discount amortization.
The Company continues to be well capitalized, with continuing decreases in the level of non-performing assets. Alan J. Hyatt, President and Chief Executive Officer commented, "While these are not the robust figures we would like to ultimately see, the Company continues to broaden its community banking focus and add new banking relationships."
Mr. Hyatt added, "Severn is just coming out of its agreement with the Office of the Comptroller of the Currency and looking for opportunities to grow. We continue to target local small to mid-size community businesses who want to work with a local bank. We have added new sales team members that will be a great asset in helping with this growth. We are steadfast in our mission to provide an exceptional banking experience for residents of Anne Arundel County."
About Severn Savings 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 $760 million and four branches located in Annapolis, Edgewater 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. The Company'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 the Company's general market area, federal and state regulation, competition and other factors detailed from time to time in the Company's filings with the Securities and Exchange Commission (the "SEC"), including "Item 1A. Risk Factors" contained in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2014.
Severn Bancorp, Inc. Selected Financial Data (dollars in thousands, except per share data) (Unaudited) For the Three Months Ended December 31, September 30, June 30, March 31, December 31, 2015 2015 2015 2015 2014 ---- ---- ---- ---- ---- Summary Operating Results: Interest income $7,582 $7,932 $7,779 $7,860 $8,086 Interest expense 2,264 2,284 2,243 2,201 2,236 ----- ----- ----- ----- ----- Net interest income 5,318 5,648 5,536 5,659 5,850 Provision for loan losses (480) - 100 100 400 ----- --- --- --- --- Net interest income after provision for loan losses 5,798 5,648 5,436 5,559 5,450 Non-interest income 1,409 1,469 2,332 900 1,142 Non-interest expense 6,127 5,838 6,368 5,593 5,041 ----- ----- ----- ----- ----- Income before income tax provision 1,080 1,279 1,400 866 1,551 Income tax provision 2 52 35 1 1 --- --- --- --- --- Net income $1,078 $1,227 $1,365 $865 $1,550 ------ ------ ------ ---- ------ Per Share Data: Basic earnings per share $0.05 $0.06 $0.08 $0.03 $0.10 Diluted earnings per share $0.05 $0.06 $0.08 $0.03 $0.09 Common stock dividends per share $ - $ - $ - $ - $ - Average basic shares outstanding 10,088,879 10,088,879 10,088,549 10,070,796 10,067,379 Average diluted shares outstanding 10,133,663 10,116,060 10,113,295 10,093,251 10,095,866 Performance Ratios: Return on average assets 0.14% 0.16% 0.18% 0.11% 0.20% Return on average equity 1.28% 1.47% 1.65% 1.05% 1.88% Net interest margin 3.10% 3.20% 3.16% 3.22% 3.32% Efficiency ratio* 89.43% 80.17% 80.27% 86.26% 71.60% * The efficiency ratio is general and administrative expenses as a percentage of net interest income plus non-interest income As of December 31, September 30, June 30, March 31, December 31, 2015 2015 2015 2015 2014 ---- ---- ---- ---- ---- Balance Sheet Data: Total assets $762,079 $773,977 $781,923 $781,628 $776,328 Total loans receivable 598,414 597,061 611,823 627,591 643,317 Allowance for loan losses (8,758) (8,689) (8,944) (8,964) (9,435) ------- ------ ------ ------ ------ Net loans 589,656 588,372 602,879 618,627 633,882 Deposits 523,771 536,646 544,112 546,535 543,814 Borrowings 115,000 115,000 115,000 115,000 115,000 Stockholders' equity 86,456 85,876 85,145 84,275 83,810 Bank's Tier 1 core capital to total assets 14.9% 14.5% 14.1% 14.0% 13.8% Book value per share $5.93 $5.87 $5.80 $5.71 $5.68 Asset Quality Data: Non-accrual loans $8,974 $8,778 $10,107 $13,317 $12,845 Foreclosed real estate 1,744 1,919 2,092 2,211 1,947 ----- ----- ----- ----- ----- Total non- performing assets 10,718 10,697 12,199 15,528 14,792 Total non-accrual loans to net loans 1.5% 1.5% 1.7% 2.2% 2.0% Total non-accrual loans to total assets 1.2% 1.1% 1.3% 1.7% 1.7% Allowance for loan losses 8,758 8,689 8,944 8,964 9,435 Allowance for loan losses to total loans 1.5% 1.5% 1.5% 1.4% 1.5% Allowance for loan losses to total non-accrual loans 97.6% 99.0% 88.5% 67.3% 73.5% Total non-performing assets to total assets 1.4% 1.4% 1.6% 2.0% 1.9% Non-accrual troubled debt restructurings (included above) 1,329 1,835 2,128 2,620 2,641 Performing troubled debt restructurings 24,386 24,449 25,591 26,175 27,724 Loan to deposit ratio 114.3% 111.3% 112.4% 114.8% 118.3%
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SOURCE Severn Bancorp, Inc.