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Severn Bancorp

Nasdaq:SVBI
Snowflake Description

Flawless balance sheet with proven track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SVBI
Nasdaq
$109M
Market Cap
  1. Home
  2. US
  3. Banks
Company description

Severn Bancorp, Inc. operates as the holding company for Severn Savings Bank, FSB that provides a range of personal and commercial banking products and services in Maryland, Delaware, and Virginia. The last earnings update was 45 days ago. More info.


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SVBI Share Price and Events
7 Day Returns
-1.1%
NasdaqCM:SVBI
-0.4%
US Mortgage
2%
US Market
1 Year Returns
0%
NasdaqCM:SVBI
-1%
US Mortgage
4.3%
US Market
SVBI Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Severn Bancorp (SVBI) -1.1% -2% -8.9% 0% 39.7% 84.3%
US Mortgage -0.4% 0.1% 4.7% -1% 38.6% 35.3%
US Market 2% 4.1% 4.2% 4.3% 43.9% 40.8%
1 Year Return vs Industry and Market
  • SVBI outperformed the Mortgage industry which returned -1% over the past year.
  • SVBI underperformed the Market in United States of America which returned 4.3% over the past year.
Price Volatility
SVBI
Industry
5yr Volatility vs Market

SVBI Value

 Is Severn Bancorp undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Severn Bancorp to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Severn Bancorp.

NasdaqCM:SVBI Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Median Return on Equity from the past 5 years.
= Stable Book Value * Return on Equity
= $7.51 * 6.1%
$0.46
Book Value of Equity per Share Median Book Value from the past 5 years. $7.51
Discount Rate (Cost of Equity) See below 10.1%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqCM:SVBI
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Mortgage Unlevered Beta Simply Wall St/ S&P Global 0.9
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.895 (1 + (1- 21%) (65.75%))
1.241
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.24
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.241 * 5.96%)
10.13%

Discounted Cash Flow Calculation for NasdaqCM:SVBI using Excess Returns Model Model

The calculations below outline how an intrinsic value for Severn Bancorp is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

NasdaqCM:SVBI Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (6.1% – 10.13%) * $7.51)
$-0.30
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $-0.30 / (10.13% - 2.73%)
$-4.08
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $7.51 + $-4.08
$3.43
NasdaqCM:SVBI Discount to Share Price
Calculation Result
Value per share (USD) From above. $3.43
Current discount Discount to share price of $8.55
= -1 x ($8.55 - $3.43) / $3.43
-149.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Severn Bancorp is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Severn Bancorp's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Severn Bancorp's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqCM:SVBI PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $0.73
NasdaqCM:SVBI Share Price ** NasdaqCM (2019-06-24) in USD $8.55
United States of America Mortgage Industry PE Ratio Median Figure of 130 Publicly-Listed Mortgage Companies 14x
United States of America Market PE Ratio Median Figure of 3,095 Publicly-Listed Companies 17.88x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Severn Bancorp.

NasdaqCM:SVBI PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqCM:SVBI Share Price ÷ EPS (both in USD)

= 8.55 ÷ 0.73

11.7x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Severn Bancorp is good value based on earnings compared to the US Mortgage industry average.
  • Severn Bancorp is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Severn Bancorp's expected growth come at a high price?
Raw Data
NasdaqCM:SVBI PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 11.7x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
3.6%per year
United States of America Mortgage Industry PEG Ratio Median Figure of 50 Publicly-Listed Mortgage Companies 1.33x
United States of America Market PEG Ratio Median Figure of 2,134 Publicly-Listed Companies 1.54x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Severn Bancorp, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Severn Bancorp's assets?
Raw Data
NasdaqCM:SVBI PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $7.89
NasdaqCM:SVBI Share Price * NasdaqCM (2019-06-24) in USD $8.55
United States of America Mortgage Industry PB Ratio Median Figure of 145 Publicly-Listed Mortgage Companies 1.12x
United States of America Market PB Ratio Median Figure of 5,255 Publicly-Listed Companies 1.8x
NasdaqCM:SVBI PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqCM:SVBI Share Price ÷ Book Value per Share (both in USD)

= 8.55 ÷ 7.89

1.08x

* Primary Listing of Severn Bancorp.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Severn Bancorp is good value based on assets compared to the US Mortgage industry average.
X
Value checks
We assess Severn Bancorp's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Mortgage industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Mortgage industry average (and greater than 0)? (1 check)
  5. Severn Bancorp has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

SVBI Future Performance

 How is Severn Bancorp expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

  • No analysts cover Severn Bancorp, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
3.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Severn Bancorp expected to grow at an attractive rate?
  • Severn Bancorp's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Severn Bancorp's earnings growth is positive but not above the United States of America market average.
  • Unable to compare Severn Bancorp's revenue growth to the United States of America market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
NasdaqCM:SVBI Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqCM:SVBI Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts 3.6%
United States of America Mortgage Industry Earnings Growth Rate Market Cap Weighted Average 10.8%
United States of America Mortgage Industry Revenue Growth Rate Market Cap Weighted Average 6%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqCM:SVBI Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqCM:SVBI Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 40 11 9
2018-12-31 38 6 8
2018-09-30 36 9 5
2018-06-30 34 3 5
2018-03-31 32 4 3
2017-12-31 30 11 3
2017-09-30 30 12 3
2017-06-30 30 14 3
2017-03-31 30 5 14
2016-12-31 30 8 13
2016-09-30 30 3 13
2016-06-30 29 2 13

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Severn Bancorp's earnings are expected to grow by 3.6% yearly, however this is not considered high growth (20% yearly).
  • Unable to determine if Severn Bancorp is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqCM:SVBI Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Severn Bancorp Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqCM:SVBI Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 0.73
2018-12-31 0.68
2018-09-30 0.44
2018-06-30 0.37
2018-03-31 0.29
2017-12-31 0.21
2017-09-30 0.28
2017-06-30 0.23
2017-03-31 1.15
2016-12-31 1.16
2016-09-30 1.21
2016-06-30 1.28

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Severn Bancorp will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Severn Bancorp's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Severn Bancorp has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

SVBI Past Performance

  How has Severn Bancorp performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Severn Bancorp's growth in the last year to its industry (Mortgage).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Severn Bancorp has delivered over 20% year on year earnings growth in the past 5 years.
  • Severn Bancorp's 1-year earnings growth exceeds its 5-year average (165.7% vs 56.3%)
  • Severn Bancorp's earnings growth has exceeded the US Mortgage industry average in the past year (165.7% vs 39%).
Earnings and Revenue History
Severn Bancorp's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Severn Bancorp Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqCM:SVBI Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 39.71 9.29 22.56
2018-12-31 38.14 8.50 22.14
2018-09-30 36.03 5.48 21.34
2018-06-30 33.77 4.50 19.77
2018-03-31 32.04 3.50 18.97
2017-12-31 30.48 2.54 18.39
2017-09-30 30.02 3.41 20.01
2017-06-30 30.20 2.76 19.95
2017-03-31 30.34 13.86 20.04
2016-12-31 29.61 13.32 19.90
2016-09-30 29.97 13.35 19.57
2016-06-30 29.18 13.44 19.65
2016-03-31 29.41 2.20 19.99
2015-12-31 29.39 2.16 20.17
2015-09-30 27.94 2.63 18.98
2015-06-30 27.66 2.47 19.19
2015-03-31 26.55 0.53 18.56
2014-12-31 26.68 0.57 18.31
2014-09-30 23.17 -6.22 17.92
2014-06-30 11.38 -27.60 18.10
2014-03-31 12.39 -26.56 18.42
2013-12-31 13.62 -26.61 18.42
2013-09-30 18.41 -19.86 19.55
2013-06-30 30.48 1.36 18.10
2013-03-31 30.59 2.33 16.68
2012-12-31 29.91 2.22 15.59
2012-09-30 29.66 2.27 13.50
2012-06-30 29.46 2.08 13.38

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Severn Bancorp has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Severn Bancorp used its assets more efficiently than the US Mortgage industry average last year based on Return on Assets.
  • Unable to establish if Severn Bancorp improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess Severn Bancorp's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Mortgage industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Severn Bancorp has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

SVBI Health

 How is Severn Bancorp's financial position? (This company is analysed differently as a bank or financial institution)

This company is a bank or financial institution.

Fundamentally a bank's business is based upon borrowing and lending money, for this reason they typically have high levels of debt and we analyse them differently.
Net Worth
Balance sheet
This treemap shows a more detailed breakdown of Severn Bancorp's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Severn Bancorp Company Filings, last reported 2 months ago.

NasdaqCM:SVBI Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 100.83 69.12 121.88
2018-12-31 98.45 94.12 197.12
2018-09-30 95.88 94.12 100.10
2018-06-30 94.04 102.62 30.95
2018-03-31 92.42 117.12 27.09
2017-12-31 91.10 109.12 30.63
2017-09-30 92.01 114.07 41.64
2017-06-30 89.82 104.12 34.00
2017-03-31 88.84 114.12 83.56
2016-12-31 87.93 124.12 67.11
2016-09-30 86.78 131.12 44.49
2016-06-30 99.52 149.12 48.68
2016-03-31 86.89 139.12 53.10
2015-12-31 86.46 139.12 43.59
2015-09-30 85.88 139.12 55.42
2015-06-30 85.15 139.12 48.75
2015-03-31 84.28 139.12 51.64
2014-12-31 83.81 139.12 33.34
2014-09-30 82.74 139.12 31.62
2014-06-30 82.15 139.12 71.99
2014-03-31 83.20 139.12 93.92
2013-12-31 82.77 139.12 98.38
2013-09-30 88.50 139.12 119.80
2013-06-30 109.31 139.12 104.71
2013-03-31 109.35 139.12 103.05
2012-12-31 109.00 139.12 93.39
2012-09-30 107.14 139.12 88.34
2012-06-30 106.87 139.12 122.07
BANK ANALYSIS

This company is a bank or financial institution, which is analysed accordingly below.

Below we check the amount of loans the bank has, how many of those are bad, and its ability to cover any bad loans.
  • Severn Bancorp has an acceptable proportion of non-loan assets held.
  • Severn Bancorp's liabilities are made up of primarily low risk sources of funding.
  • Loans at Severn Bancorp are broadly funded by customer deposits.
  • Severn Bancorp's level of assets compared to its equity is low (i.e. an appropriate level of borrowing to fund lending).
  • Severn Bancorp has a sufficient allowance for bad loans.
  • Severn Bancorp has an acceptable level of bad loans (less than 2%).
X
Financial health checks
We assess Severn Bancorp's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Severn Bancorp has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

SVBI Dividends

 What is Severn Bancorp's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.4%
Current annual income from Severn Bancorp dividends.
If you bought $2,000 of Severn Bancorp shares you are expected to receive $28 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Severn Bancorp's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).
  • Severn Bancorp's dividend is below the markets top 25% of dividend payers in United States of America (3.73%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqCM:SVBI Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
United States of America Mortgage Industry Average Dividend Yield Market Cap Weighted Average of 95 Stocks 3.2%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2012 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqCM:SVBI Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-28 0.120 1.386
2019-02-26 0.120 1.328
2018-11-27 0.120 1.436
2018-08-28 0.120 1.351
2018-05-29 0.120 1.415
2018-02-26 0.120 1.609
2011-08-12 0.000 0.000
2011-07-15 0.000 0.000
2011-05-12 0.000 0.000
2011-04-15 0.000 0.000
2011-03-15 0.000 0.000
2011-01-20 0.000 0.000
2010-11-10 0.000 0.000
2010-10-15 0.000 0.000
2010-08-13 0.000 0.000
2010-07-16 0.000 0.000
2010-05-14 0.000 0.000
2010-04-15 0.000 0.000
2009-12-18 0.000 0.000
2009-09-17 0.120 4.103

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • No dividend growth in 10 years.
Current Payout to shareholders
What portion of Severn Bancorp's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (6.1x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Severn Bancorp's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Severn Bancorp afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Severn Bancorp has a total score of 1/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

SVBI Management

 What is the CEO of Severn Bancorp's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Alan Hyatt
COMPENSATION $514,751
AGE 64
CEO Bio

Mr. Alan J. Hyatt has been Partner of Hyatt, Peters & Weber, LLP, Annapolis, Maryland since 1978. Mr. Hyatt is a real estate broker with Arundel Realty Services, LLC, Annapolis, Maryland. Mr. Hyatt has been the Chairman and President of the Board at Severn BanCorp. Inc. since August 1990 and serves as its Chief Executive Officer. Mr. Hyatt serves as the Chairman of the Board, Chief Executive Officer and President of the Severn Savings Bank, FSB (the Bank), a subsidiary of Severn BanCorp. Inc., since 1982, having previously served as an officer and Director since 1978. As an attorney and businessman, Mr. Hyatt has strong legal and financial skills important to the oversight of Severn BanCorp’s financial reporting, enterprise and operational risk management. Mr. Hyatt spends approximately 50% of his professional time on the affairs of the Severn Savings Bank and Severn BanCorp. Inc. and the balance on his law practice. He was the Chairman of the Board of the Anne Arundel Community College Foundation, Inc. Mr. Hyatt serves on the Board of Trustees of the Anne Arundel Health System Inc., and the Anne Arundel County Pension Trustee Board.

CEO Compensation
  • Alan's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Alan's remuneration is about average for companies of similar size in United States of America.
Management Team

Alan Hyatt

TITLE
Chairman
COMPENSATION
$515K
AGE
64

Eric Keitz

TITLE
Executive VP
COMPENSATION
$274K
AGE
57
TENURE
1.8 yrs

Marc Winkler

TITLE
Chief Financial Officer
AGE
61
Board of Directors Tenure

Average tenure and age of the Severn Bancorp board of directors in years:

7.2
Average Tenure
59.5
Average Age
  • The tenure for the Severn Bancorp board of directors is about average.
Board of Directors

Konrad Wayson

TITLE
Vice Chairman of the Board
COMPENSATION
$36K
AGE
57

Alan Hyatt

TITLE
Chairman
COMPENSATION
$515K
AGE
64
TENURE
29.4 yrs

Eric Keitz

TITLE
Executive VP
COMPENSATION
$274K
AGE
57
TENURE
9.2 yrs

John Lamon

TITLE
Director
COMPENSATION
$37K
AGE
61
TENURE
10.2 yrs

Jim Johnson

TITLE
Director
COMPENSATION
$32K
AGE
70
TENURE
7.2 yrs

Kathie Sulick

TITLE
Director
COMPENSATION
$46K
AGE
66
TENURE
7.2 yrs

David Jones

TITLE
Director
COMPENSATION
$30K
AGE
58
TENURE
7.2 yrs

Raymond Crosby

TITLE
Director
COMPENSATION
$32K
AGE
55
TENURE
7.2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
11. Dec 18 Buy Konrad Wayson Individual 11. Dec 18 11. Dec 18 500 $8.52 $4,260
03. Dec 18 Buy Konrad Wayson Individual 30. Nov 18 30. Nov 18 500 $9.20 $4,600
X
Management checks
We assess Severn Bancorp's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Severn Bancorp has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

SVBI News

Simply Wall St News

Zooming in on NASDAQ:SVBI's 1.4% Dividend Yield

A sizeable part of portfolio returns can be produced by dividend stocks due to their contribution to compounding returns in the long run. … Historically, Severn Bancorp, Inc. … Let's take a look at Severn Bancorp in more detail.

Simply Wall St -

Why Severn Bancorp Inc's (NASDAQ:SVBI) High P/E Ratio Isn't Necessarily A Bad Thing

We'll show how you can use Severn Bancorp Inc's (NASDAQ:SVBI) P/E ratio to inform your assessment of the investment opportunity. … Based on the last twelve months, Severn Bancorp's P/E ratio is 18.76. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

Should You Buy Severn Bancorp Inc (NASDAQ:SVBI) For Its 1.3% Dividend?

A large part of investment returns can be generated by dividend-paying stock given their role in compounding returns over time. … Historically, Severn Bancorp Inc (NASDAQ:SVBI) has paid dividends to shareholders, and these days it yields 1.3%. … Let's dig deeper into whether Severn Bancorp should have a place in your portfolio.

Simply Wall St -

Why Severn Bancorp Inc's (NASDAQ:SVBI) ROE Of 5.01% Does Not Tell The Whole Story

With an ROE of 5.01%, Severn Bancorp Inc (NASDAQ:SVBI) returned in-line to its own industry which delivered 6.65% over the past year. … But what is more interesting is whether SVBI can sustain or improve on this level of return. … Check out our latest analysis for Severn Bancorp

Simply Wall St -

Is Severn Bancorp Inc (NASDAQ:SVBI) Attractive At Its Current PE Ratio?

Severn Bancorp Inc (NASDAQ:SVBI) trades with a trailing P/E of 30x, which is higher than the industry average of 22.1x. … While this makes SVBI appear like a stock to avoid or sell if you own it, you might change your mind after I explain the assumptions behind the P/E ratio. … Check out our latest analysis for Severn Bancorp

Simply Wall St -

Should Severn Bancorp Inc's (NASDAQ:SVBI) Recent Earnings Decline Worry You?

Measuring Severn Bancorp Inc's (NASDAQ:SVBI) track record of past performance is an insightful exercise for investors. … Below, I will assess SVBI's recent performance announced on 31 March 2018 and compare these figures to its historical trend and industry movements. … Was SVBI's weak performance lately a part of a long-term decline.

Simply Wall St -

How Should Investors React To Severn Bancorp Inc's (NASDAQ:SVBI) CEO Pay?

This is because, if incentives are aligned, more value is created for shareholders which directly impacts your returns as an investor. … Despite the fact that one size does not fit all, since remuneration should be tailored to the specific company and market, we can determine a high-level yardstick to see if SVBI deviates substantially from its peers. … Accounting for SVBI's size and performance, in terms of market cap and earnings, it appears that Hyatt is paid in-line with other comparable US CEOs of profitable small-caps.

Simply Wall St -

How Does Investing In Severn Bancorp Inc (NASDAQ:SVBI) Impact Your Portfolio?

A popular measure of market risk for a stock is its beta, and the market as a whole represents a beta value of one. … View our latest analysis for Severn Bancorp An interpretation of SVBI's beta With a five-year beta of 0.71, Severn Bancorp appears to be a less volatile company compared to the rest of the market. … How SVBI's assets could affect its beta An asset-heavy company tends to have a higher beta because the risk associated with running fixed assets during a downturn is highly expensive.

Simply Wall St -

Should You Sell Severn Bancorp Inc (NASDAQ:SVBI) At This PE Ratio?

Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for SVBI Price per share = $7.55 Earnings per share = $0.287 ∴ Price-Earnings Ratio = $7.55 ÷ $0.287 = 26.3x The P/E ratio isn’t a metric you view in isolation and only becomes useful when you compare it against other similar companies. … For example, if you inadvertently compared riskier firms with SVBI, then investors would naturally value SVBI at a higher price since it is a less risky investment. … Similarly, if you accidentally compared lower growth firms with SVBI, investors would also value SVBI at a higher price since it is a higher growth investment.

Simply Wall St -

Severn Bancorp Inc's (NASDAQ:SVBI) Earnings Dropped -80.94%, Did Its Industry Show Weakness Too?

Check out our latest analysis for Severn Bancorp Was SVBI weak performance lately part of a long-term decline? … I like to use data from the most recent 12 months, which annualizes the latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data. … For Severn Bancorp, its latest trailing-twelve-month earnings is US$2.54M, which, against the prior year's figure, has declined by a significant -80.94%.

Simply Wall St -

SVBI Company Info

Description

Severn Bancorp, Inc. operates as the holding company for Severn Savings Bank, FSB that provides a range of personal and commercial banking products and services in Maryland, Delaware, and Virginia. The company’s deposit products include checking, savings, money market, time deposit, and individual retirement accounts. Its loan portfolio comprises residential mortgage loans; commercial real estate loans; construction and land acquisition, and development loans for the construction of one-to-four family dwellings; commercial construction loans; land loans; residential lot loans; business and commercial loans; and home equity loans, home equity lines of credit, and other consumer loans. The company also offers cash management, ATM, credit and debit card, safe deposit box, Internet and telephone banking, and other products and services. In addition, it provides commercial real estate brokerage and property management services, as well as acquires real estate for syndication and investment purposes. As of May 9, 2019, the company operated through six branches located in Annapolis, Edgewater, Glen Burnie, Lothian/Wayson’s Corner, and Severna Park. Severn Bancorp, Inc. was founded in 1946 and is headquartered in Annapolis, Maryland.

Details
Name: Severn Bancorp, Inc.
SVBI
Exchange: NasdaqCM
Founded: 1946
$109,226,993
12,775,087
Website: http://www.severnbank.com
Address: Severn Bancorp, Inc.
200 Westgate Circle,
Suite 200,
Annapolis,
Maryland, 21401,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqCM SVBI Common Stock Nasdaq Capital Market US USD 24. Jun 2002
Number of employees
Current staff
Staff numbers
163
Severn Bancorp employees.
Industry
Thrifts and Mortgage Finance
Banks
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/24 23:44
End of day share price update: 2019/06/24 00:00
Last earnings filing: 2019/05/10
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.