NasdaqCM:SVBI

Stock Analysis Report

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Executive Summary

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. More Details


Snowflake Analysis

Flawless balance sheet with questionable track record.


Similar Companies

Share Price & News

How has Severn Bancorp's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SVBI has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.2%

SVBI

-5.4%

US Mortgage

-2.4%

US Market


1 Year Return

-21.0%

SVBI

-19.7%

US Mortgage

18.2%

US Market

Return vs Industry: SVBI underperformed the US Mortgage industry which returned -18.5% over the past year.

Return vs Market: SVBI underperformed the US Market which returned 19.5% over the past year.


Shareholder returns

SVBIIndustryMarket
7 Day-1.2%-5.4%-2.4%
30 Day-3.6%0.8%4.2%
90 Day4.2%9.0%6.3%
1 Year-19.2%-21.0%-17.4%-19.7%20.9%18.2%
3 Year-3.9%-8.5%-4.3%-12.3%41.2%31.8%
5 Year30.3%24.0%20.0%3.6%84.8%63.9%

Price Volatility Vs. Market

How volatile is Severn Bancorp's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Severn Bancorp undervalued compared to its fair value and its price relative to the market?

13.91x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SVBI ($6.4) is trading above our estimate of fair value ($4.55)

Significantly Below Fair Value: SVBI is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SVBI is poor value based on its PE Ratio (13.9x) compared to the US Mortgage industry average (11.1x).

PE vs Market: SVBI is good value based on its PE Ratio (13.9x) compared to the US market (19x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SVBI's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SVBI's PB Ratio (0.8x) is in line with the US Mortgage industry average.


Next Steps

Future Growth

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

-12.1%

Forecasted Banks industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Severn Bancorp has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Severn Bancorp performed over the past 5 years?

6.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SVBI has high quality earnings.

Growing Profit Margin: SVBI's current net profit margins (15%) are lower than last year (23.4%).


Past Earnings Growth Analysis

Earnings Trend: SVBI's earnings have grown by 6.5% per year over the past 5 years.

Accelerating Growth: SVBI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SVBI had negative earnings growth (-38.3%) over the past year, making it difficult to compare to the Mortgage industry average (5.3%).


Return on Equity

High ROE: SVBI's Return on Equity (5.5%) is considered low.


Next Steps

Financial Health

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


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: SVBI's Assets to Equity ratio (8.6x) is low.

Allowance for Bad Loans: SVBI has a sufficient allowance for bad loans (131%).

Low Risk Liabilities: 92% of SVBI's liabilities are made up of primarily low risk sources of funding.

Loan Level: SVBI has an appropriate level of Loans to Assets ratio (71%).

Low Risk Deposits: SVBI's Loans to Deposits ratio (87%) is appropriate.

Level of Bad Loans: SVBI has an appropriate level of bad loans (0.9%).


Next Steps

Dividend

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

2.50%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SVBI's dividend (2.5%) is higher than the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: SVBI's dividend (2.5%) is low compared to the top 25% of dividend payers in the US market (4.66%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, SVBI has been paying a dividend for less than 10 years.

Growing Dividend: SVBI's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (34.8%), SVBI's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

8.5yrs

Average board tenure


CEO

Alan Hyatt (66 yo)

no data

Tenure

US$507,928

Compensation

Mr. Alan J. Hyatt has been a 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 ...


CEO Compensation Analysis

Compensation vs Market: Alan's total compensation ($USD507.93K) is about average for companies of similar size in the US market ($USD585.94K).

Compensation vs Earnings: Alan's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Alan Hyatt
Chairmanno dataUS$507.93k13.41%
$ 11.0m
Konrad Wayson
Independent Vice Chairman of the Boardno dataUS$37.96k0.55%
$ 452.3k
John Lamon
Independent Director11.5yrsUS$40.78k0.56%
$ 462.4k
Eric Keitz
Director10.5yrsUS$266.37k0.28%
$ 230.4k
James Johnson
Independent Director8.5yrsUS$36.37k0.019%
$ 15.7k
David Jones
Independent Director8.5yrsUS$31.40k0.31%
$ 256.0k
Raymond Crosby
Independent Director8.5yrsUS$34.56k0.36%
$ 294.7k
Mary Sulick
Independent Director8.5yrsUS$48.45k0.012%
$ 9.6k
Dale Shields
Independent Director0.42yrno data0.078%
$ 64.0k

8.5yrs

Average Tenure

60yo

Average Age

Experienced Board: SVBI's board of directors are considered experienced (8.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: SVBI insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Severn Bancorp, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Severn Bancorp, Inc.
  • Ticker: SVBI
  • Exchange: NasdaqCM
  • Founded: 1946
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Market Cap: US$82.003m
  • Shares outstanding: 12.81m
  • Website: https://www.severnbank.com

Number of Employees


Location

  • Severn Bancorp, Inc.
  • 200 Westgate Circle
  • Suite 200
  • Annapolis
  • Maryland
  • 21401
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SVBINasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDJun 2002

Biography

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 com ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/20 00:17
End of Day Share Price2020/10/19 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.