Severn Bancorp, Inc. Announces Year-End and Fourth Quarter Earnings

ANNAPOLIS, Md., Jan. 15 /PRNewswire-FirstCall/ -- Severn Bancorp, Inc.
(Nasdaq: SVBI) the parent company of Severn Savings Bank, FSB and Hyatt
Commercial, today announced earnings for the year and fourth quarter ended
December 31, 2007.
Net income for the fourth quarter was $2.3 million (unaudited), or $.23
per share, compared to $2.4 million (unaudited), or $.24 per share for the
third quarter of 2007, and $3.7 million, or $.36 per share for the fourth
quarter of 2006.
Net income was $11.1 million, or $1.10 per share for the year ended
December 31, 2007, compared to $15.7 million, or $1.56 per share for the year
ended December 31, 2006.
"Like all financial institutions in our area and throughout the country,
we continue to face the challenges brought by the current real estate
slowdown, including increased loan delinquencies. In addition, there has been
stronger competition for new loans and deposits which has caused compression
of our interest margin," said Alan J. Hyatt, President and Chief Executive
Officer. "However, we are a well capitalized organization and, given the
market conditions, are pleased with our earnings and the initiatives taken by
the company. We continue to expand our deposit products to further position
ourselves as an exceptional community bank in our market area."
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 Northern 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
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.

Thomas G. Bevivino, tbevivino@severnbank.com or S. Scott Kirkley,
skirkley@severnbank.com, both of Severn Bancorp, Inc., +1-410-260-2000