Severn in Maryland to Gain $1M in Profits from Error

Severn Bancorp (SVBI) in Maryland will restate earnings for the past three years to reflect a change in how it accounts for premiums on deposit insurance.

The $855 million-asset parent of Severn Savings Bank in Annapolis said Friday it will amend its annual and quarterly financial statements for the three-year period starting in 2010 after overstating expenses for Federal Deposit Insurance Corp. coverage by roughly $1.6 million.

The revision would boost the company's cumulative earnings by roughly $980,000.

Severn said it should have adjusted its writedowns to reflect fluctuations in net assets over the three years, rather than recording a steady amortization over the period.

The company will include revised financial statements in a report it expects to file by March 31 with the Securities and Exchange Commission.

For reprint and licensing requests for this article, click here.
Community banking
MORE FROM AMERICAN BANKER