ANNAPOLIS, Md., April 11 /PRNewswire-FirstCall/ -- Severn Bancorp, Inc.
(Nasdaq: SVBI) the parent company of Severn Savings Bank, FSB and Hyatt
Commercial, today announced earnings for the first quarter ended March 31,
2008.
Net income for the first quarter was $2.1 million (unaudited), or $.21 per
share, compared to $3.5 million (unaudited), or $.35 per share for the first
quarter of 2007.
"We continue to face the challenges of interest rate compression and
higher delinquencies that are facing many financial institutions in our market
and across the country," said Alan J. Hyatt, President and Chief Executive
Officer. "The local and national economy continues to weaken as a result of
the slowdown in the housing market. Many larger national financial
institutions have been challenged by problems relating to sub-prime lending
and the decline in real estate values. Fortunately, we do not have any
sub-prime loan exposure. However, we have financed residential and
construction mortgages, which have been affected by the increase in loan
foreclosures, slower loan demand, and an increase in delinquencies. On a
positive note, deposits have increased from December 31, 2007 as we continue
to offer very attractive rates, and an expanded deposit program. We plan to
continue our conservative approach to this challenging market by maintaining a
well capitalized organization, sufficiently reserving for loan delinquencies
and offering highly competitive interest rates on our deposit products."
With approximately $960 million in assets, Severn Savings Bank, FSB is a
full service community bank offering a wide range of personal and commercial
deposit products, as well as residential and commercial mortgage lending in
Anne Arundel County and, to a lesser extent, in other parts of Maryland,
Delaware and Virginia. The Bank has four branch locations, at 200 Westgate
Circle and 1917 West Street in Annapolis, 413 Crain Highway in Glen Burnie and
3083 Solomon's Island Road in Edgewater. Severn's website is
http://www.severnbank.com.
For additional information or questions, please contact Thomas G.
Bevivino, or S. Scott Kirkley, Executive Vice Presidents, Severn Bancorp,
Inc., 200 Westgate Circle, Suite 200, Annapolis, Maryland 21401, 410.260.2000,
e-mail: tbevivino@severnbank.com or skirkley@severnbank.com.
SOURCE Severn Bancorp, Inc.