Severn Bancorp, Inc. Announces First Quarter Earnings
ANNAPOLIS, Md., April 26, 2017 /PRNewswire/ -- Severn Bancorp, Inc., (Nasdaq: SVBI) parent company of Severn Savings Bank, FSB ("Severn"), today announced net income of $925 thousand or $0.06 per share for the first quarter of 2017, a 2.0% increase from net income of $907 thousand or $0.03 per share for the first quarter of 2016. Earnings per share is calculated using net income available for common shareholders, which is net income less preferred stock dividends and discount amortization. Return on Average Assets (ROAA) was 0.47% for the quarter ended March 31, 2017, which was an improvement over the 0.12% reported for the quarter ended March 31, 2016. The Efficiency Ratio dropped to 81.25% for the quarter versus 85.32% for the first quarter of 2016.
Total assets increased by $11.3 million to $798.7 million as of March 31, 2017 compared to $787.4 million as of December 31, 2016. Loans remained flat at $609.7 million as of March 31, 2017 versus $610.3 million as of December 31, 2016. Deposits increased by $21.8 million to $593.8 million as of March 31, 2017, an increase of 3.8% over December 31, 2016. Borrowings decreased by $10 million during the quarter ended March 31, 2017 as the bank continues to pay down its FHLB borrowings.
"We are committed to increasing shareholder value," stated Alan J. Hyatt, President and Chief Executive Officer. Mr. Hyatt continued, "We are focused on increasing revenue and driving loan growth. We are committed to Anne Arundel County and providing excellent service to the residents and local businesses. Our team is building relationships and representing Severn well in the community. We see a lot of opportunity for a successful remainder of the year."
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 $798.7 million and five branches located in Annapolis, Edgewater, Severna Park 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, 2016.
Severn Bancorp, Inc. | ||||||||
Selected Financial Data | ||||||||
(dollars in thousands, except per share data) | ||||||||
(Unaudited) | ||||||||
Quarterly income statement results: | Three Months Ended March 31, | |||||||
2017 | 2016 | $ Change | % Change | |||||
Interest Income | ||||||||
Interest on loans | $ 7,131 | $ 7,107 | $ 24 | 0.34% | ||||
Interest on securities | 269 | 311 | (42) | -13.49% | ||||
Other interest income | 157 | 86 | 71 | 82.56% | ||||
Total interest income | 7,557 | 7,504 | 54 | 0.71% | ||||
Interest Expense | ||||||||
Interest on deposits | 975 | 979 | (4) | -0.45% | ||||
Interest on long term borrowings | 996 | 1,290 | (294) | -22.75% | ||||
Total interest expense | 1,971 | 2,269 | (298) | -13.13% | ||||
Net interest income | 5,586 | 5,235 | 351 | 6.70% | ||||
Provision for loan losses | (275) | 0 | (275) | 100.00% | ||||
Net interest income after provision for loan losses | 5,861 | 5,235 | 626 | 11.96% | ||||
Other Income | ||||||||
Mortgage-banking revenue | 450 | 721 | (271) | -37.58% | ||||
Real Estate Commissions | 380 | 118 | 262 | 221.95% | ||||
Real Estate Management Income | 194 | 165 | 29 | 17.87% | ||||
All other income | 334 | 246 | 88 | 35.77% | ||||
Net other income | 1,358 | 1,250 | 108 | 8.67% | ||||
Net interest income plus other income | 7,219 | 6,485 | 734 | 11.32% | ||||
Non-Interest Expenses | ||||||||
Compensation and related expenses | 3,757 | 3,636 | 121 | 3.32% | ||||
Net Occupancy & Depreciation | 336 | 452 | (116) | -25.56% | ||||
Net Costs of Foreclosed Real Estate | 33 | 45 | (12) | -25.91% | ||||
Other | 1,549 | 1,445 | 104 | 7.18% | ||||
Total non-interest expenses | 5,675 | 5,578 | 97 | 1.75% | ||||
Income before income tax provision | 1,544 | 907 | 637 | 70.22% | ||||
Income tax provision | 619 | 0 | 619 | 100.00% | ||||
Net income | $ 925 | $ 907 | $ 18 | 2.02% | ||||
Net income available to common shareholders | $ 787 | $ 313 | $ 474 | 151.49% | ||||
Severn Bancorp, Inc. | ||||||||
Selected Financial Data | ||||||||
(dollars in thousands, except per share data) | ||||||||
(Unaudited) | ||||||||
March 31, 2017 | December 31, 2016 | $ Change | % Change | |||||
Balance Sheet Data: | ||||||||
ASSETS | ||||||||
Cash | $ 19,782 | $ 39,396 | $ (19,614) | -49.79% | ||||
Federal funds and Interest bearing deposits in other banks | 63,775 | 27,718 | 36,057 | 130.09% | ||||
Investment securities available for sale | 7,151 | - | 7,151 | 100.00% | ||||
Investment securities held to maturity | 59,283 | 62,757 | (3,474) | -5.54% | ||||
Loans held for sale | 2,755 | 10,307 | (7,552) | -73.27% | ||||
Loans receivable | 609,741 | 610,278 | (537) | -0.09% | ||||
Loan valuation allowance | (8,332) | (8,969) | 637 | -7.11% | ||||
Accrued interest receivable | 2,262 | 2,249 | 13 | 0.58% | ||||
Foreclosed real estate, net | 1,243 | 973 | 270 | 27.76% | ||||
Premises and equipment, net | 23,792 | 24,030 | (238) | -0.99% | ||||
Restricted stock investments | 4,701 | 5,103 | (402) | -7.88% | ||||
Deferred income taxes | 9,473 | 10,081 | (608) | -6.03% | ||||
Prepaid expenses and other assets | 3,115 | 3,562 | (447) | -12.55% | ||||
$ 798,741 | $ 787,485 | $ 11,256 | 1.43% | |||||
LIABILITIES AND STOCKHOLDERS EQUITY | ||||||||
Deposits | $ 593,762 | $ 571,946 | $ 21,816 | 3.81% | ||||
Borrowings | 93,500 | 103,500 | (10,000) | -9.66% | ||||
Suboridinated debentures | 20,619 | 20,619 | - | 0.00% | ||||
Accounts payable and accrued expenses | 2,020 | 3,490 | (1,470) | -42.13% | ||||
Total Liabilities | 709,901 | 699,555 | 10,346 | 1.48% | ||||
Preferred stock | 4 | 4 | 0 | 0.00% | ||||
Common stock | 121 | 121 | 0 | 0.00% | ||||
Additional paid-in capital | 64,098 | 63,960 | 138 | 0.22% | ||||
Retained earnings | 24,632 | 23,845 | 787 | 3.30% | ||||
Accumulated comprehensive loss | (15) | - | (15) | -100.00% | ||||
Total Stockholders' Equity | 88,840 | 87,930 | 910 | 1.03% | ||||
$ 798,741 | $ 787,485 | $ 11,256 | 1.43% | |||||
Severn Bancorp, Inc. | ||||||
Selected Financial Data | ||||||
(dollars in thousands, except per share data) | ||||||
(Unaudited) | ||||||
Three Months Ended March 31, | ||||||
2017 | 2016 | |||||
Per Share Data: | ||||||
Basic earnings per share | $ 0.06 | $ 0.03 | ||||
Diluted earnings per share | $ 0.06 | $ 0.03 | ||||
Average basic shares outstanding | 12,125,553 | 10,088,879 | ||||
Average diluted shares outstanding | 12,210,580 | 10,128,251 | ||||
Performance Ratios: | ||||||
Return on average assets | 0.47% | 0.12% | ||||
Return on average equity | 4.24% | 1.07% | ||||
Net interest margin | 3.05% | 3.07% | ||||
Efficiency ratio* | 81.25% | 85.32% | ||||
March 31, 2017 | December 31, 2016 | |||||
Asset Quality Data: | ||||||
Non-accrual loans | $ 7,577 | $ 9,852 | ||||
Foreclosed real estate | 1,243 | 973 | ||||
Total non-performing assets | 8,820 | 10,825 | ||||
Total non-accrual loans to total loans | 1.2% | 1.6% | ||||
Total non-accrual loans to total assets | 0.9% | 1.3% | ||||
Allowance for loan losses | 8,332 | 8,969 | ||||
Allowance for loan losses to total loans | 1.4% | 1.5% | ||||
Allowance for loan losses to total | ||||||
non-accrual loans | 110.0% | 91.0% | ||||
Total non-performing assets to total assets | 1.1% | 1.4% | ||||
Non-accrual troubled debt restructurings (included above) | 2,782 | 2,392 | ||||
Performing troubled debt restructurings | 16,305 | 18,066 | ||||
Loan to deposit ratio | 102.7% | 106.7% | ||||
* | The efficiency ratio is general and administrative expenses as a percentage of net interest income plus non-interest income | |||||
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SOURCE Severn Bancorp Inc.
