Parent Company Financial Statements

12 Months Ended

Dec. 31, 2017

Parent Company Financial Statements [Abstract]

Parent Company Financial Statements

Note 19 – Parent Company Financial Statements

The following is financial information of Severn Bancorp (parent company only):

Statements of Financial Condition

	December 31,
	2017		2016
ASSETS	(dollars in thousands)
Cash	$	1,310	$	2,012
Equity in net assets of subsidiaries:
Bank		108,735		105,898
Nonbank		3,886		3,014
Other assets		1,421		1,265
Total assets	$	115,352	$	112,189
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Subordinated debentures	$	20,619	$	20,619
Other liabilities		3,633		3,640
Total liabilities		24,252		24,259
Stockholders’ Equity		91,100		87,930
Total liabilities and stockholders’ equity	$	115,352	$	112,189

Statements of Operations

	Years Ended December 31,
	2017			2016
	(dollars in thousands)
Interest income	$	-		$	-
Interest expense on subordinated debentures		824			973
Net interest expense		(824	)		(973	)
General and administrative expenses		218			229
Loss before income taxes and equity in undistributed net income of subsidiaries		(1,042	)		(1,202	)
Income tax benefit		(71	)		(1,004	)
Equity in undistributed net income of subsidiaries		3,789			15,738
Net income	$	2,818		$	15,540

Statements of Cash Flows

	Years Ended December 31,
	2017			2016
Cash flows from operating activities:	(dollars in thousands)
Net income	$	2,818		$	15,540
Adjustments to reconcile net income to net cash from operating activities:
Equity in undistributed earnings of subsidiaries		(3,789	)		(15,738	)
Stock-based compensation		205			184
Deferred income taxes		(718	)		(531	)
Decrease in other assets		562			178
Decrease in accrued expenses and other liabilities		(7	)		(1,965	)
Net cash used in operating activities		(929	)		(2,332	)
Cash flows from investing activities:
Contributions from subsidiaries		820			24,000
Net cash provided by investing activities		820			24,000
Cash flows from financing activities:
Preferred stock dividends		(280	)		(7,840	)
Repurchase of warrant		(520	)		-
Stock redemption of Series B preferred stock		-			(23,393	)
Proceeds from common stock issuance		207			10,584
Net cash used in financing activities		(593	)		(20,649	)
(Decrease) increase in cash and cash equivalents		(702	)		1,019
Cash and cash equivalents at beginning of period		2,012			993
Cash and cash equivalents at end of period	$	1,310		$	2,012