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.
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