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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Severn Bancorp Inc | NASDAQ:SVBI | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 13.63 | 0.12 | 13.68 | 0 | 01:00:00 |
| | | | Sincerely, | |
| | | |
|
|
| | | |
Alan J. Hyatt
Chairman, President and Chief Executive Officer |
|
| | | | By Order of the Board of Directors | |
| | | |
|
|
| | | |
Alan J. Hyatt
Chairman, President and Chief Executive Officer |
|
| Shore Bancshares, Inc. | | | Alliance Advisors | |
| 18 E. Dover St. | | | 200 Broadacres Drive | |
| Easton, Maryland 21601 | | | 3rd Floor | |
| (410) 763-7800 | | | Bloomfield, NJ 07003 | |
| Attention: Investor Relations | | | Toll-Free: (855) 742-8276 | |
| | | |
E-mail: SHBI@allianceadvisors.com
|
|
| Severn Bancorp, Inc. | | | Alliance Advisors | |
| 200 Westgate Circle | | | 200 Broadacres Drive | |
| Suite 200 | | | 3rd Floor | |
| Annapolis, Maryland 21401 | | | Bloomfield, NJ 07003 | |
| (410) 260-2000 | | | Toll-Free: (888) 991-1291 | |
| Attention: Investor Relations | | |
E-mail: SVBI@allianceadvisors.com
|
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| APPENDIX A | | | Agreement and Plan of Merger | |
| APPENDIX B | | | Opinion of Janney Montgomery Scott LLC | |
| APPENDIX C | | | Opinion of Piper Sandler & Co. | |
| | |
SHBI
Common Stock |
| |
Severn
Common Stock |
| |
Cash
Consideration |
| |
Equivalent
Market Value Per Share of Severn |
| ||||||||||||
At March 2, 2021
|
| | | $ | 15.64 | | | | | $ | 8.10 | | | | | $ | 1.59 | | | | | $ | 11.30 | | |
At September 7, 2021
|
| | | | 17.73 | | | | | | 12.40 | | | | | | 1.59 | | | | | | 12.60 | | |
(in thousands)
|
| |
SHBI
Historical |
| |
Severn
Historical |
| |
Transaction Accounting
Adjustments |
| | | | |
Pro Forma
Combined |
| ||||||||||||
ASSETS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and due from banks
|
| | | $ | 18,275 | | | | | $ | 4,057 | | | | | $ | — | | | | | | | | $ | 22,332 | | |
Interest-bearing deposits with other banks
|
| | | | 218,913 | | | | | | 306,590 | | | | | | (21,164) | | | |
A
|
| | | | 504,339 | | |
Cash and cash equivalents
|
| | | | 237,188 | | | | | | 310,647 | | | | | | (21,164) | | | | | | | | | 526,671 | | |
Investment securities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Available-for-sale, at fair value
|
| | | | 113,957 | | | | | | 21,278 | | | | | | — | | | | | | | | | 135,235 | | |
Held to maturity, at amortized cost
|
| | | | 198,884 | | | | | | 133,657 | | | | | | 395 | | | |
B
|
| | | | 332,936 | | |
Equity securities, at fair value
|
| | | | 1,384 | | | | | | — | | | | | | — | | | | | | | | | 1,384 | | |
Restricted securities
|
| | | | 3,189 | | | | | | 970 | | | | | | — | | | | | | | | | 4,159 | | |
Loans held for sale, at fair value
|
| | | | — | | | | | | 32,869 | | | | | | — | | | | | | | | | 32,869 | | |
Loans
|
| | | | 1,472,429 | | | | | | 613,329 | | | | | | 236 | | | |
C
|
| | | | 2,085,994 | | |
Less: allowance for credit losses
|
| | | | (15,088) | | | | | | (7,878) | | | | | | 7,878 | | | |
D
|
| | | | (15,088) | | |
Loans, net
|
| | | | 1,457,341 | | | | | | 605,451 | | | | | | 8,114 | | | | | | | | | 2,070,906 | | |
Premises and equipment, net
|
| | | | 25,313 | | | | | | 20,278 | | | | | | 6,500 | | | |
E
|
| | | | 52,091 | | |
Goodwill
|
| | | | 17,518 | | | | | | 770 | | | | | | 28,870 | | | |
F
|
| | | | 47,158 | | |
Other Intangible assets, net
|
| | | | 1,473 | | | | | | — | | | | | | 7,300 | | | |
G
|
| | | | 8,773 | | |
Other real estate owned, net
|
| | | | 203 | | | | | | 1,010 | | | | | | — | | | | | | | | | 1,213 | | |
Right-of-use assets
|
| | | | 5,616 | | | | | | 2,244 | | | | | | — | | | |
E
|
| | | | 7,860 | | |
Other assets
|
| | | | 58,194 | | | | | | 14,527 | | | | | | (1,108) | | | |
H
|
| | | | 71,613 | | |
TOTAL ASSETS
|
| | | $ | 2,120,260 | | | | | $ | 1,143,701 | | | | | $ | 28,907 | | | | | | | | $ | 3,292,868 | | |
LIABILITIES | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Deposits: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Noninterest-bearing
|
| | | $ | 538,009 | | | | | $ | 354,855 | | | | | $ | — | | | | | | | | $ | 892,864 | | |
Interest-bearing
|
| | | | 1,342,573 | | | | | | 640,867 | | | | | | 1,826 | | | |
I
|
| | | | 1,985,266 | | |
Total deposits
|
| | | | 1,880,582 | | | | | | 995,722 | | | | | | 1,826 | | | | | | | | | 2,878,130 | | |
Securities sold under retail repurchase agreements
|
| | | | 2,907 | | | | | | — | | | | | | — | | | | | | | | | 2,907 | | |
Long-term borrowings
|
| | | | — | | | | | | 10,000 | | | | | | 313 | | | |
J
|
| | | | 10,313 | | |
Subordinated debt
|
| | | | 24,490 | | | | | | 20,619 | | | | | | (3,332) | | | |
K
|
| | | | 41,777 | | |
Total borrowings
|
| | | | 27,397 | | | | | | 30,619 | | | | | | (3,019) | | | | | | | | | 54,997 | | |
Lease liabilities
|
| | | | 5,757 | | | | | | 2,280 | | | | | | — | | | |
E
|
| | | | 8,037 | | |
Other liabilities
|
| | | | 7,842 | | | | | | 2,445 | | | | | | 7,594 | | | |
L
|
| | | | 17,881 | | |
TOTAL LIABILITIES
|
| | | | 1,921,578 | | | | | | 1,031,066 | | | | | | 6,401 | | | | | | | | | 2,959,045 | | |
STOCKHOLDERS’ EQUITY | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Common stock
|
| | | | 118 | | | | | | 129 | | | | | | (49) | | | |
M
|
| | | | 198 | | |
Additional paid in capital
|
| | | | 51,544 | | | | | | 66,392 | | | | | | 74,327 | | | |
N
|
| | | | 192,263 | | |
Retained earnings
|
| | | | 146,414 | | | | | | 47,561 | | | | | | (53,219) | | | |
O
|
| | | | 140,756 | | |
Accumulated other comprehensive income (loss)
|
| | | | 606 | | | | | | (1,447) | | | | | | 1,447 | | | |
P
|
| | | | 606 | | |
TOTAL STOCKHOLDERS’ EQUITY
|
| | | | 198,682 | | | | | | 112,635 | | | | | | 22,506 | | | | | | | | | 333,823 | | |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
|
| | | $ | 2,120,260 | | | | | $ | 1,143,701 | | | | | $ | 28,907 | | | | | | | | $ | 3,292,868 | | |
(in thousands, except per share data)
|
| |
SHBI
Historical |
| |
Severn
Historical |
| |
Transaction Accounting
Adjustments |
| | | | |
Pro Forma
Combined |
| ||||||||||||
INTEREST INCOME | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest and fees on loans
|
| | | $ | 28,747 | | | | | $ | 15,622 | | | | | $ | 239 | | | |
Q
|
| | | $ | 44,608 | | |
Interest and dividends on investment securities:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Taxable
|
| | | | 2,025 | | | | | | 718 | | | | | | — | | | | | | | | | 2,743 | | |
Interest on deposits with other banks
|
| | | | 102 | | | | | | 152 | | | | | | — | | | | | | | | | 254 | | |
Total interest income
|
| | | | 30,874 | | | | | | 16,492 | | | | | | 239 | | | | | | | | | 47,605 | | |
INTEREST EXPENSE | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest on deposits
|
| | | | 2,240 | | | | | | 1,491 | | | | | | (199) | | | |
R
|
| | | | 3,532 | | |
Interest on short-term borrowings
|
| | | | 3 | | | | | | — | | | | | | — | | | | | | | | | 3 | | |
Interest on long-term borrowings
|
| | | | 729 | | | | | | 333 | | | | | | 124 | | | |
S
|
| | | | 1,186 | | |
Total interest expense
|
| | | | 2,972 | | | | | | 1,824 | | | | | | (75) | | | | | | | | | 4,721 | | |
NET INTEREST INCOME
|
| | | | 27,902 | | | | | | 14,668 | | | | | | 314 | | | | | | | | | 42,884 | | |
Provision (provision reversal) for credit losses
|
| | | | 1,075 | | | | | | (1,075) | | | | | | — | | | | | | | | | — | | |
NET INTEREST INCOME AFTER PROVISION (PROVISION REVERSAL) FOR CREDIT LOSSES
|
| | | | 26,827 | | | | | | 15,743 | | | | | | 314 | | | | | | | | | 42,884 | | |
NONINTEREST INCOME | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Service charges on deposit accounts
|
| | | | 1,357 | | | | | | 1,401 | | | | | | — | | | | | | | | | 2,758 | | |
Trust and investment fee income
|
| | | | 882 | | | | | | — | | | | | | — | | | | | | | | | 882 | | |
Mortgage-banking revenue
|
| | | | — | | | | | | 6,696 | | | | | | — | | | | | | | | | 6,696 | | |
Other noninterest income
|
| | | | 3,221 | | | | | | 1,418 | | | | | | — | | | | | | | | | 4,639 | | |
Total noninterest income
|
| | | | 5,460 | | | | | | 9,515 | | | | | | — | | | | | | | | | 14,975 | | |
NONINTEREST EXPENSE | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Salaries and wages
|
| | | | 8,404 | | | | | | 10,244 | | | | | | — | | | | | | | | | 18,648 | | |
Employee benefits
|
| | | | 3,337 | | | | | | 1,807 | | | | | | — | | | | | | | | | 5,144 | | |
Occupancy expense
|
| | | | 1,584 | | | | | | 957 | | | | | | 83 | | | |
T
|
| | | | 2,624 | | |
Furniture and equipment expense
|
| | | | 719 | | | | | | 87 | | | | | | — | | | | | | | | | 806 | | |
Data processing
|
| | | | 2,344 | | | | | | 946 | | | | | | — | | | | | | | | | 3,290 | | |
Directors’ fees
|
| | | | 303 | | | | | | 131 | | | | | | — | | | | | | | | | 434 | | |
Amortization of intangible assets
|
| | | | 246 | | | | | | — | | | | | | 782 | | | |
U
|
| | | | 1,028 | | |
FDIC insurance premium expense
|
| | | | 408 | | | | | | 144 | | | | | | — | | | | | | | | | 552 | | |
Other real estate owned expenses, net
|
| | | | 2 | | | | | | 46 | | | | | | — | | | | | | | | | 48 | | |
Legal and professional fees
|
| | | | 1,164 | | | | | | 672 | | | | | | — | | | | | | | | | 1,836 | | |
Merger expenses
|
| | | | 377 | | | | | | 329 | | | | | | (706) | | | |
V
|
| | | | — | | |
Other noninterest expenses
|
| | | | 2,486 | | | | | | 2,115 | | | | | | — | | | | | | | | | 4,601 | | |
Total noninterest expense
|
| | | | 21,374 | | | | | | 17,478 | | | | | | 159 | | | | | | | | | 39,011 | | |
Income before income tax expense
|
| | | | 10,913 | | | | | | 7,780 | | | | | | 155 | | | | | | | | | 18,848 | | |
Income tax expense
|
| | | | 2,884 | | | | | | 2,149 | | | | | | 40 | | | |
W
|
| | | | 5,073 | | |
NET INCOME
|
| | | $ | 8,029 | | | | | $ | 5,631 | | | | | $ | 115 | | | | | | | | $ | 13,775 | | |
Earnings per common share, basic and diluted
|
| | | $ | 0.68 | | | | | $ | 0.44 | | | | | | | | | | | | | | $ | 0.70 | | |
Weighted average shares outstanding – Basic
|
| | | | 11,749 | | | | | | 12,853 | | | | | | (4,862) | | | |
X
|
| | | | 19,740 | | |
Weighted average shares outstanding – Diluted
|
| | | | 11,750 | | | | | | 12,923 | | | | | | (4,932) | | | |
X
|
| | | | 19,741 | | |
(in thousands, except per share data)
|
| |
SHBI
Historical |
| |
Severn
Historical |
| |
Transaction
Accounting Adjustments |
| | | | |
Pro Forma
Combined |
| ||||||||||||
INTEREST INCOME | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest and fees on loans
|
| | | $ | 56,420 | | | | | $ | 32,330 | | | | | $ | 598 | | | |
Q
|
| | | $ | 89,348 | | |
Interest and dividends on investment securities:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Taxable
|
| | | | 2,997 | | | | | | 1,034 | | | | | | — | | | | | | | | | 4,031 | | |
Interest on deposits with other banks
|
| | | | 260 | | | | | | 547 | | | | | | — | | | | | | | | | 807 | | |
Total interest income
|
| | | | 59,677 | | | | | | 33,911 | | | | | | 598 | | | | | | | | | 94,186 | | |
INTEREST EXPENSE | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest on deposits
|
| | | | 6,440 | | | | | | 5,252 | | | | | | (1,190) | | | |
R
|
| | | | 10,502 | | |
Interest on short-term borrowings
|
| | | | 5 | | | | | | — | | | | | | — | | | | | | | | | 5 | | |
Interest on long-term borrowings
|
| | | | 635 | | | | | | 1,139 | | | | | | (66) | | | |
S
|
| | | | 1,708 | | |
Total interest expense
|
| | | | 7,080 | | | | | | 6,391 | | | | | | (1,256) | | | | | | | | | 12,215 | | |
NET INTEREST INCOME
|
| | | | 52,597 | | | | | | 27,520 | | | | | | 1,854 | | | | | | | | | 81,971 | | |
Provision for credit losses
|
| | | | 3,900 | | | | | | 900 | | | | | | — | | | | | | | | | 4,800 | | |
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES
|
| | | | 48,697 | | | | | | 26,620 | | | | | | 1,854 | | | | | | | | | 77,171 | | |
NONINTEREST INCOME | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Service charges on deposit accounts
|
| | | | 2,839 | | | | | | 2,596 | | | | | | — | | | | | | | | | 5,435 | | |
Trust and investment fee income
|
| | | | 1,558 | | | | | | — | | | | | | — | | | | | | | | | 1,558 | | |
Gains on sale and calls of investment securities
|
| | | | 347 | | | | | | — | | | | | | — | | | | | | | | | 347 | | |
Mortgage-banking revenue
|
| | | | — | | | | | | 9,466 | | | | | | — | | | | | | | | | 9,466 | | |
Other noninterest income
|
| | | | 6,005 | | | | | | 3,752 | | | | | | — | | | | | | | | | 9,757 | | |
Total noninterest income
|
| | | | 10,749 | | | | | | 15,814 | | | | | | — | | | | | | | | | 26,563 | | |
NONINTEREST EXPENSE | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Salaries and wages
|
| | | | 14,935 | | | | | | 19,980 | | | | | | — | | | | | | | | | 34,915 | | |
Employee benefits
|
| | | | 6,461 | | | | | | 3,203 | | | | | | — | | | | | | | | | 9,664 | | |
Occupancy expense
|
| | | | 2,919 | | | | | | 1,780 | | | | | | 167 | | | |
T
|
| | | | 4,866 | | |
Furniture and equipment expense
|
| | | | 1,224 | | | | | | 393 | | | | | | — | | | | | | | | | 1,617 | | |
Data processing
|
| | | | 4,288 | | | | | | 1,796 | | | | | | — | | | | | | | | | 6,084 | | |
Directors’ fees
|
| | | | 504 | | | | | | 290 | | | | | | — | | | | | | | | | 794 | | |
Amortization of intangible assets
|
| | | | 533 | | | | | | — | | | | | | 1,825 | | | |
U
|
| | | | 2,358 | | |
FDIC insurance premium expense
|
| | | | 485 | | | | | | 143 | | | | | | — | | | | | | | | | 628 | | |
Other real estate owned expenses, net
|
| | | | 56 | | | | | | (23) | | | | | | — | | | | | | | | | 33 | | |
Legal and professional fees
|
| | | | 2,296 | | | | | | 1,368 | | | | | | — | | | | | | | | | 3,664 | | |
Other noninterest expenses
|
| | | | 4,698 | | | | | | 4,122 | | | | | | — | | | | | | | | | 8,820 | | |
Total noninterest expense
|
| | | | 38,399 | | | | | | 33,052 | | | | | | 1,992 | | | | | | | | | 73,443 | | |
Income before income tax expense
|
| | | | 21,047 | | | | | | 9,382 | | | | | | (138) | | | | | | | | | 30,291 | | |
Income tax expense
|
| | | | 5,317 | | | | | | 2,676 | | | | | | (35) | | | |
W
|
| | | | 7,958 | | |
NET INCOME
|
| | | $ | 15,730 | | | | | $ | 6,706 | | | | | $ | (103) | | | | | | | | $ | 22,333 | | |
Earnings per common share, basic and diluted
|
| | | $ | 1.27 | | | | | $ | 0.52 | | | | | | | | | | | | | | $ | 1.10 | | |
Weighted average shares outstanding – Basic
|
| | | | 12,380 | | | | | | 12,816 | | | | | | (4,825) | | | |
X
|
| | | | 20,371 | | |
Weighted average shares outstanding – Diluted
|
| | | | 12,381 | | | | | | 12,832 | | | | | | (4,841) | | | |
X
|
| | | | 20,372 | | |
|
Merger consideration for outstanding common shares of Severn
|
| | | $ | (20,470) | | |
|
Merger consideration for outstanding share options of Severn
|
| | | | (694) | | |
|
Total pro forma adjustments
|
| | | $ | (21,164) | | |
|
Reversal of net unaccreted loan origination fees
|
| | | $ | 3,686 | | |
|
Estimate of credit losses
|
| | | | (4,913) | | |
|
Estimate of fair value related to liquidity
|
| | | | 1,463 | | |
|
Total pro forma adjustments
|
| | | $ | 236 | | |
|
Elimination of historical goodwill recorded by Severn
|
| | | $ | (770) | | |
|
Estimate of goodwill related to SHBI’s acquisition of Severn
|
| | | | 29,640 | | |
|
Total pro forma adjustments
|
| | | $ | 28,870 | | |
|
Deferred taxes on acquisition accounting adjustments
|
| | | $ | (1,182) | | |
|
Deferred taxes on the core deposit intangible
|
| | | | (1,862) | | |
|
Tax impact of the merger-related expenses
|
| | | | 1,936 | | |
|
Total pro forma adjustments
|
| | | $ | (1,108) | | |
|
To reflect elimination of Severn’s historical common stock
|
| | | $ | (129) | | |
|
To reflect issuance of SHBI common stock consideration at par value
|
| | | | 80 | | |
|
Total pro forma adjustments
|
| | | $ | (49) | | |
|
To reflect elimination of Severn’s historical additional paid in capital
|
| | | $ | (66,392) | | |
|
To reflect issuance of SHBI common stock consideration in excess of par value
|
| | | | 140,719 | | |
|
Total pro forma adjustments
|
| | | $ | 74,327 | | |
|
To reflect elimination of Severn’s historical retained earnings
|
| | | $ | (47,561) | | |
|
To reflect the after-tax effect of estimated merger expenses
|
| | | | (5,658) | | |
|
Total pro forma adjustments
|
| | | $ | (53,219) | | |
| Purchase Price: | | | | | | | | | | | | | |
|
SHBI common stock paid at closing price of $17.62 as of September 7, 2021(1)
|
| | | | | | | | | $ | 140,799 | | |
|
Cash consideration
|
| | | | | | | | | | 20,470 | | |
|
Cash consideration for Severn options
|
| | | | | | | | | | 694 | | |
|
Total pro forma purchase price
|
| | | | | | | | |
$
|
161,963
|
| |
| Fair value of assets acquired: | | | | | | | | | | | | | |
|
Cash and cash equivalents
|
| | | $ | 310,647 | | | | | | | | |
|
Total securities
|
| | | | 156,300 | | | | | | | | |
|
Loans held for sale
|
| | | | 32,869 | | | | | | | | |
|
Loans, net
|
| | | | 613,565 | | | | | | | | |
|
Premises and equipment
|
| | | | 26,778 | | | | | | | | |
|
Other real estate owned
|
| | | | 1,010 | | | | | | | | |
|
Core deposit intangible
|
| | | | 7,300 | | | | | | | | |
|
Other assets
|
| | | | 13,727 | | | | | | | | |
|
Total assets
|
| | | $ | 1,162,196 | | | | | | | | |
| Fair value of liabilities assumed: | | | | | | | | | | | | | |
|
Deposits
|
| | | | 997,548 | | | | | | | | |
|
Total debt
|
| | | | 27,600 | | | | | | | | |
|
Other liabilities
|
| | | | 4,725 | | | | | | | | |
|
Total liabilities
|
| | | $ | 1,029,873 | | | | | | | | |
|
Net assets acquired
|
| | | | | | | | | $ | 132,323 | | |
|
Preliminary pro forma goodwill
|
| | | | | | | | | $ | 29,640 | | |
| | |
Purchase Price
|
| |
Estimated Goodwill
|
| ||||||
Up 20%
|
| | | $ | 190,090 | | | | | $ | 57,767 | | |
Up 10%
|
| | | $ | 176,027 | | | | | $ | 43,704 | | |
As presented in pro forma presentation above
|
| | | $ | 161,963 | | | | | $ | 29,640 | | |
Down 10%
|
| | | $ | 147,899 | | | | | $ | 15,576 | | |
Down 20%
|
| | | $ | 133,835 | | | | | $ | 1,512 | | |
| | |
Increase (Decrease) to Pre-Tax Earnings
|
| |||||||||||||||||||||||||||
|
Year 1
|
| |
Year 2
|
| |
Year 3
|
| |
Year 4
|
| |
Year 5
|
| |||||||||||||||||
Loans
|
| | | $ | 598 | | | | | $ | 478 | | | | | $ | 359 | | | | | $ | 239 | | | | | $ | 120 | | |
Core Deposit Intangible
|
| | | | (1,825) | | | | | | (1,564) | | | | | | (1,304) | | | | | | (1,043) | | | | | | (782) | | |
Subordinated debt
|
| | | | (247) | | | | | | (247) | | | | | | (247) | | | | | | (247) | | | | | | (247) | | |
Fair value on bank premises and equipment
|
| | | | (167) | | | | | | (167) | | | | | | (167) | | | | | | (167) | | | | | | (167) | | |
Other Fair Value Adjustments
|
| | | | 1,503 | | | | | | 398 | | | | | | 95 | | | | | | 100 | | | | | | 43 | | |
|
Transaction Price / LTM EPS(1):
|
| | | | 20.4x | | |
|
Transaction Price / Tangible Book Value Per Share(2):
|
| | | | 126.2% | | |
|
Tangible Book Premium/Core Deposits(3):
|
| | | | 4.0% | | |
Buyer
|
| |
Target
|
| |
Price /
TBV (%) |
| |
Price /
LTM EPS (x) |
| |
Price /
Assets (%) |
| |
Core Deposit
Premium (%) |
| ||||||||||||
Stock Yards Bancorp, Inc.
|
| | Kentucky Bancshares, Inc. | | | | | 171.4 | | | | | | 16.3 | | | | | | 15.9 | | | | | | NA | | |
First Busey Corp.
|
| | Cummins-American Corp. | | | | | 109.6 | | | | | | 21.6 | | | | | | 13.7 | | | | | | 1.5 | | |
BancorpSouth Bank
|
| | FNS Bancshares, Inc. | | | | | 154.0 | | | | | | 19.4 | | | | | | 13.8 | | | | | | 6.5 | | |
BancorpSouth Bank
|
| |
National United Bancshares, Inc.
|
| | | | 156.3 | | | | | | 15.8 | | | | | | 15.3 | | | | | | 6.8 | | |
First Mid Bancshares, Inc.
|
| | LINCO Bancshares, Inc. | | | | | 106.6 | | | | | | 21.0 | | | | | | 12.4 | | | | | | 1.4 | | |
Dollar Mutual Bancorp
|
| | Standard AVB Financial Corp. | | | | | 133.4 | | | | | | 22.5 | | | | | | 15.2 | | | | | | 6.8 | | |
Hanover Bancorp, Inc.
|
| | Savoy Bank | | | | | 149.2 | | | | | | 13.0 | | | | | | 10.6 | | | | | | 16.5 | | |
Enterprise Financial Services
|
| | Seacoast Commerce Banc | | | | | 151.2 | | | | | | 10.5 | | | | | | 12.2 | | | | | | 5.5 | | |
| | | Average | | | | | 141.5 | | | | | | 17.5 | | | | | | 13.6 | | | | | | 6.4 | | |
| | | Median | | | | | 150.2 | | | | | | 17.8 | | | | | | 13.7 | | | | | | 6.5 | | |
| | | | | | | | | |
Comparable Transactions
|
| | | |||||||||||||||||
Dollars in thousands, except per share amounts
Valuation Multiple |
| | |
Severn
Value ($000s) |
| |
Median
Multiple |
| |
Aggregate
Value ($000s) |
| |
Value Per
Share(4) |
| | | | | ||||||||||||
Tangible common equity(1)
|
| | | | $ | 108,543 | | | | | | 150.2% | | | | | $ | 163,052 | | | | | $ | 12.69 | | | | | | |
LTM net income(2)
|
| | | | $ | 6,706 | | | | | | 17.8x | | | | | $ | 119,534 | | | | | $ | 9.30 | | | | | | |
Total assets(1)
|
| | | | $ | 952,553 | | | | | | 13.7% | | | | | $ | 130,738 | | | | | $ | 10.17 | | | | | | |
Core deposits(3)
|
| | | | $ | 705,623 | | | | | | 6.5% | | | | | $ | 154,550 | | | | | $ | 12.03 | | | | | | |
| | | |
Ranges of Values:
|
| |
Minimum
|
| | | $ | 119,534 | | | | | $ | 9.30 | | | | | ||||||||
| | | |
Maximum
|
| | | $ | 163,032 | | | | | $ | 12.69 | | | | | | | |||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |||||
| | | | | | Factor-Weighted Average | | | | | | | | | | | $ | 141,963 | | | | | $ | 11.05 | | | | | | |
Discount
Rate |
| |
1.30x
|
| |
1.40x
|
| |
1.50x
|
| |
1.60x
|
| |
1.70x
|
| |||||||||||||||
11.0%
|
| | | $ | 10.76 | | | | | $ | 11.53 | | | | | $ | 12.31 | | | | | $ | 13.09 | | | | | $ | 13.87 | | |
11.5%
|
| | | $ | 10.57 | | | | | $ | 11.34 | | | | | $ | 12.10 | | | | | $ | 12.86 | | | | | $ | 13.62 | | |
12.0%
|
| | | $ | 10.39 | | | | | $ | 11.14 | | | | | $ | 11.89 | | | | | $ | 12.64 | | | | | $ | 13.39 | | |
12.5%
|
| | | $ | 10.21 | | | | | $ | 10.95 | | | | | $ | 11.69 | | | | | $ | 12.42 | | | | | $ | 13.16 | | |
13.0%
|
| | | $ | 10.04 | | | | | $ | 10.76 | | | | | $ | 11.49 | | | | | $ | 12.21 | | | | | $ | 12.93 | | |
Discount
Rate |
| |
16.0x
|
| |
17.0x
|
| |
18.0x
|
| |
19.0x
|
| |
20.0x
|
| |||||||||||||||
11.0%
|
| | | $ | 11.13 | | | | | $ | 11.78 | | | | | $ | 12.44 | | | | | $ | 13.09 | | | | | $ | 13.75 | | |
11.5%
|
| | | $ | 10.94 | | | | | $ | 11.58 | | | | | $ | 12.22 | | | | | $ | 12.87 | | | | | $ | 13.51 | | |
12.0%
|
| | | $ | 10.75 | | | | | $ | 11.38 | | | | | $ | 12.01 | | | | | $ | 12.64 | | | | | $ | 13.28 | | |
12.5%
|
| | | $ | 10.57 | | | | | $ | 11.19 | | | | | $ | 11.81 | | | | | $ | 12.43 | | | | | $ | 13.05 | | |
13.0%
|
| | | $ | 10.39 | | | | | $ | 11.00 | | | | | $ | 11.61 | | | | | $ | 12.22 | | | | | $ | 12.82 | | |
| | | | | | | | |
Premium
|
| |||||||||
Dollars in thousands
|
| |
12/31/20 Balance
|
| |
(%)
|
| |
($)
|
| |||||||||
Non-interest bearing deposits
|
| | | $ | 347,633 | | | | | | 8.00 | | | | | $ | 27,811 | | |
NOW accounts
|
| | | $ | 0 | | | | | | 6.00 | | | | | $ | 0 | | |
Savings and money market accounts
|
| | | $ | 252,129 | | | | | | 4.00 | | | | | $ | 10,085 | | |
Certificates of deposit
|
| | | $ | 212,168 | | | | | | 0.00 | | | | | $ | 0 | | |
Total deposits
|
| | | $ | 811,930 | | | | | | 4.67% | | | | | $ | 37,896 | | |
Dollars in thousands, except per share amounts
|
| | |
Amount
|
| |
Per Share
|
| | | | | ||||||
Tangible common equity
|
| | | | $ | 108,543 | | | | | $ | 8.45 | | | | | ||
Less: credit mark (after-tax)
|
| | | | $ | (2,983) | | | | | $ | (0.23) | | | | | ||
Less: Capital Mark (If Sub – 8.0% Tier 1 Common)
|
| | | | | 0 | | | | | $ | 0.00 | | | | | ||
Add: deposit premium
|
| | | | $ | 37,896 | | | | | $ | 2.95 | | | | | ||
Indicated franchise value
|
| | | | $ | 143,455 | | | | | $ | 11.16 | | | | | ||
Minimum franchise value – (3% deposit premium)
|
| | | | $ | 129,917 | | | | | $ | 10.11 | | | | | ||
Maximum franchise value – (7% deposit premium)
|
| | | | $ | 162,395 | | | | | $ | 12.64 | | | | |
|
Transaction Price Per Share / December 31, 2020 Book Value Per Share
|
| | | | 130% | | |
|
Transaction Price Per Share / December 31, 2020 Tangible Book Value Per Share
|
| | | | 131% | | |
|
Transaction Price Per Share / Estimated 2021 Earnings
|
| | | | 15.6x | | |
|
Core Deposit Premium(1)
|
| | | | 4.9% | | |
|
Market Premium as of February 26, 2021
|
| | | | 35.2% | | |
| | |
Beginning Value
February 26, 2020 |
| |
Ending Value
February 26, 2021 |
| ||||||
Severn
|
| | | | 100% | | | | | | 100.6% | | |
Severn Peer Group
|
| | | | 100% | | | | | | 112.8% | | |
S&P 500 Index
|
| | | | 100% | | | | | | 122.3% | | |
NASDAQ Bank Index
|
| | | | 100% | | | | | | 121.1% | | |
| | |
Beginning Value
February 26, 2018 |
| |
Ending Value
February 26, 2021 |
| ||||||
Severn
|
| | | | 100% | | | | | | 113.9% | | |
Severn Peer Group
|
| | | | 100% | | | | | | 106.7% | | |
S&P 500 Index
|
| | | | 100% | | | | | | 137.1% | | |
NASDAQ Bank Index
|
| | | | 100% | | | | | | 102.5% | | |
| | |
Beginning Value
February 26, 2020 |
| |
Ending Value
February 26, 2021 |
| ||||||
SHBI
|
| | | | 100% | | | | | | 102.0% | | |
SHBI Peer Group
|
| | | | 100% | | | | | | 109.2% | | |
S&P 500 Index
|
| | | | 100% | | | | | | 122.3% | | |
NASDAQ Bank Index
|
| | | | 100% | | | | | | 121.1% | | |
| | |
Beginning Value
February 26, 2018 |
| |
Ending Value
February 26, 2021 |
| ||||||
SHBI
|
| | | | 100% | | | | | | 112.6% | | |
SHBI Peer Group
|
| | | | 100% | | | | | | 108.3% | | |
S&P 500 Index
|
| | | | 100% | | | | | | 137.1% | | |
NASDAQ Bank Index
|
| | | | 100% | | | | | | 102.5% | | |
| First United Corporation | | | Blue Ridge Bankshares, Inc. | |
| Community Bankers Trust Corporation | | | Old Point Financial Corporation | |
| MainStreet Bancshares, Inc. | | | First National Corporation | |
| Partners Bancorp | | | Bank of the James Financial Group, Inc. | |
| National Bankshares, Inc. | | | Village Bank and Trust Financial Corp. | |
| | |
Severn
|
| |
Severn
Peer Group Median |
| |
Severn
Peer Group Mean |
| |
Severn
Peer Group Low |
| |
Severn
Peer Group High |
| |||||||||||||||
Total assets ($mm)
|
| | | | 953 | | | | | | 1,509 | | | | | | 1,332 | | | | | | 706 | | | | | | 1,734 | | |
Loans / Deposits (%)
|
| | | | 79.7 | | | | | | 83.7 | | | | | | 83.2 | | | | | | 59.3 | | | | | | 104.9 | | |
Non-performing assets(1) / Total assets (%)
|
| | | | 0.57 | | | | | | 0.43 | | | | | | 0.39 | | | | | | 0.00 | | | | | | 0.89 | | |
Tangible common equity/Tangible assets (%)
|
| | | | 11.41 | | | | | | 8.28 | | | | | | 8.52 | | | | | | 5.74 | | | | | | 12.02 | | |
Tier 1 Leverage Ratio (%)
|
| | | | 13.67 | | | | | | 9.04 | | | | | | 9.47 | | | | | | 8.07 | | | | | | 12.10 | | |
Total RBC Ratio (%)
|
| | | | — | | | | | | 13.91 | | | | | | 14.54 | | | | | | 12.31 | | | | | | 19.94 | | |
CRE / Total RBC Ratio (%)
|
| | | | 199.6 | | | | | | 240.7 | | | | | | 245.3 | | | | | | 153.0 | | | | | | 394.5 | | |
YTD Return on average assets (%)
|
| | | | 0.76 | | | | | | 0.99 | | | | | | 0.92 | | | | | | 0.45 | | | | | | 1.30 | | |
YTD Return on average equity (%)
|
| | | | 6.21 | | | | | | 10.06 | | | | | | 10.36 | | | | | | 4.65 | | | | | | 18.09 | | |
YTD Net interest margin (%)
|
| | | | 3.29 | | | | | | 3.33 | | | | | | 3.32 | | | | | | 2.95 | | | | | | 3.52 | | |
YTD Efficiency ratio (%)
|
| | | | 76.15 | | | | | | 63.67 | | | | | | 65.62 | | | | | | 53.03 | | | | | | 86.63 | | |
Price/Tangible book value (%)
|
| | | | 97 | | | | | | 102 | | | | | | 105 | | | | | | 92 | | | | | | 135 | | |
Price/Annualized YTD Earnings per share (x)
|
| | | | 15.8 | | | | | | 10.7 | | | | | | 12.2 | | | | | | 6.4 | | | | | | 23.8 | | |
Current Dividend Yield (%)
|
| | | | 2.4 | | | | | | 2.6 | | | | | | 2.2 | | | | | | 0.0 | | | | | | 4.3 | | |
Market value ($mm)
|
| | | | 105 | | | | | | 127 | | | | | | 133 | | | | | | 56 | | | | | | 247 | | |
| Howard Bancorp, Inc. | | | Community Bankers Trust Corporation | |
| C&F Financial Corporation | | | MainStreet Bancshares, Inc. | |
| Community Financial Corporation | | | Partners Bancorp | |
| Capital Bancorp, Inc. | | | National Bankshares, Inc. | |
| FVCBankcorp, Inc. | | | Blue Ridge Bankshares, Inc. | |
| First United Corporation | | | Old Point Financial Corporation | |
| | |
SHBI
|
| |
SHBI
Peer Group Median |
| |
SHBI
Peer Group Mean |
| |
SHBI
Peer Group Low |
| |
SHBI
Peer Group High |
| |||||||||||||||
Total assets ($mm)
|
| | | | 1,933 | | | | | | 1,689 | | | | | | 1,763 | | | | | | 1,226 | | | | | | 2,538 | | |
Loans / Deposits (%)
|
| | | | 85.5 | | | | | | 86.3 | | | | | | 86.2 | | | | | | 59.3 | | | | | | 104.9 | | |
Non-performing assets(1) / Total assets (%)
|
| | | | 0.32 | | | | | | 0.42 | | | | | | 0.41 | | | | | | 0.00 | | | | | | 1.11 | | |
Tangible common equity/Tangible assets (%)
|
| | | | 9.18 | | | | | | 8.88 | | | | | | 8.93 | | | | | | 5.74 | | | | | | 12.02 | | |
Tier 1 Leverage Ratio (%)
|
| | | | 0.64(2) | | | | | | 9.43 | | | | | | 8.83 | | | | | | 0.44 | | | | | | 11.65 | | |
Total RBC Ratio (%)
|
| | | | 14.25(2) | | | | | | 14.46 | | | | | | 14.65 | | | | | | 12.77 | | | | | | 19.94 | | |
CRE / Total RBC Ratio (%)
|
| | | | 307.1(2) | | | | | | 262.8 | | | | | | 266.0 | | | | | | 153.0 | | | | | | 394.5 | | |
YTD Return on average assets (%)
|
| | | | 0.92 | | | | | | 0.95 | | | | | | 0.83 | | | | | | (0.68) | | | | | | 1.56 | | |
YTD Return on average equity (%)
|
| | | | 7.95 | | | | | | 9.03 | | | | | | 9.04 | | | | | | (5.59) | | | | | | 18.00 | | |
YTD Net interest margin (%)
|
| | | | 3.27 | | | | | | 3.33 | | | | | | 3.56 | | | | | | 2.95 | | | | | | 5.14 | | |
YTD Efficiency ratio (%)
|
| | | | 59.56 | | | | | | 61.15 | | | | | | 62.71 | | | | | | 50.42 | | | | | | 86.63 | | |
Price/Tangible book value (%)
|
| | | | 103 | | | | | | 102 | | | | | | 108 | | | | | | 92 | | | | | | 138 | | |
Price/Annualized YTD Earnings per share (x)
|
| | | | 12.0 | | | | | | 11.1 | | | | | | 12.2 | | | | | | 6.4 | | | | | | 23.8 | | |
Current Dividend Yield (%)
|
| | | | 3.1 | | | | | | 2.0 | | | | | | 1.8 | | | | | | 0.0 | | | | | | 4.3 | | |
Market value ($mm)
|
| | | | 180 | | | | | | 176 | | | | | | 180 | | | | | | 106 | | | | | | 258 | | |
Acquiror
|
| |
Target
|
|
Fidelity D & D Bancorp, Inc. | | | Landmark Bancorp Inc. | |
Stock Yards Bancorp, Inc. | | | Kentucky Bancshares Inc. | |
First Busey Corp. | | | Cummins-American Corp. | |
BancorpSouth Bank | | | FNS Bancshares Inc. | |
LINKBANCORP Inc. | | | GNB Financial Services Inc. | |
BancorpSouth Bank | | | National United Bancshares Inc | |
Virginia National Bkshs Corp. | | | Fauquier Bankshares Inc. | |
First Mid Bancshares | | | LINCO Bancshares Inc. | |
Dollar Mutual Bancorp | | | Standard AVB Financial Corp. | |
Hanover Bancorp Inc. | | | Savoy Bank | |
Broadway Financial Corp. | | | CFBanc Corp. | |
Enterprise Financial Services | | | Seacoast Commerce Banc | |
Blue Ridge Bankshares Inc. | | | Bay Banks of Virginia Inc. | |
BV Financial Inc. (MHC) | | | Delmarva Bancshares Inc. | |
Provident Financial Services | | | SB One Bancorp | |
United Community Banks Inc. | | | Three Shores Bancorp, Inc. | |
| | |
SHBI/
Severn |
| |
Nationwide Precedent Transactions
|
| ||||||||||||||||||||||||
|
Median
|
| |
Mean
|
| |
Low
|
| |
High
|
| ||||||||||||||||||||
Transaction Price / LTM Earnings Per Share (x)
|
| | | | 21.2 | | | | | | 16.3 | | | | | | 18.0 | | | | | | 9.2 | | | | | | 32.8 | | |
Transaction Price / Tangible Book Value Per Share (%)
|
| | | | 131 | | | | | | 121 | | | | | | 125 | | | | | | 81 | | | | | | 171 | | |
Tangible Book Value Premium to Core Deposits (%)
|
| | | | 4.9 | | | | | | 4.3 | | | | | | 4.7 | | | | | | (2.8) | | | | | | 16.5 | | |
1-Day Market Premium (%)
|
| | | | 35.2 | | | | | | 35.1 | | | | | | 37.1 | | | | | | (17.1) | | | | | | 79.0 | | |
Discount
Rate |
| |
8.0x
|
| |
9.0x
|
| |
10.0x
|
| |
11.0x
|
| |
12.0x
|
| |
13.0x
|
| ||||||||||||||||||
9.0%
|
| | | $ | 5.78 | | | | | $ | 6.42 | | | | | $ | 7.06 | | | | | $ | 7.71 | | | | | $ | 8.35 | | | | | $ | 9.00 | | |
10.0%
|
| | | $ | 5.53 | | | | | $ | 6.15 | | | | | $ | 6.76 | | | | | $ | 7.38 | | | | | $ | 7.99 | | | | | $ | 8.61 | | |
11.0%
|
| | | $ | 5.30 | | | | | $ | 5.89 | | | | | $ | 6.47 | | | | | $ | 7.06 | | | | | $ | 7.65 | | | | | $ | 8.24 | | |
12.0%
|
| | | $ | 5.08 | | | | | $ | 5.64 | | | | | $ | 6.20 | | | | | $ | 6.76 | | | | | $ | 7.33 | | | | | $ | 7.89 | | |
13.0%
|
| | | $ | 4.87 | | | | | $ | 5.40 | | | | | $ | 5.94 | | | | | $ | 6.48 | | | | | $ | 7.02 | | | | | $ | 7.56 | | |
14.0%
|
| | | $ | 4.67 | | | | | $ | 5.18 | | | | | $ | 5.70 | | | | | $ | 6.21 | | | | | $ | 6.73 | | | | | $ | 7.24 | | |
Discount
Rate |
| |
85%
|
| |
90%
|
| |
95%
|
| |
100%
|
| |
105%
|
| |
110%
|
| ||||||||||||||||||
9.0%
|
| | | $ | 7.14 | | | | | $ | 7.53 | | | | | $ | 7.91 | | | | | $ | 8.29 | | | | | $ | 8.68 | | | | | $ | 9.06 | | |
10.0%
|
| | | $ | 6.84 | | | | | $ | 7.20 | | | | | $ | 7.57 | | | | | $ | 7.93 | | | | | $ | 8.30 | | | | | $ | 8.67 | | |
11.0%
|
| | | $ | 6.54 | | | | | $ | 6.89 | | | | | $ | 7.24 | | | | | $ | 7.60 | | | | | $ | 7.95 | | | | | $ | 8.30 | | |
12.0%
|
| | | $ | 6.27 | | | | | $ | 6.60 | | | | | $ | 6.94 | | | | | $ | 7.27 | | | | | $ | 7.61 | | | | | $ | 7.94 | | |
13.0%
|
| | | $ | 6.01 | | | | | $ | 6.33 | | | | | $ | 6.65 | | | | | $ | 6.97 | | | | | $ | 7.29 | | | | | $ | 7.61 | | |
14.0%
|
| | | $ | 5.76 | | | | | $ | 6.07 | | | | | $ | 6.37 | | | | | $ | 6.68 | | | | | $ | 6.99 | | | | | $ | 7.29 | | |
Annual Estimate Variance
|
| |
8.0x
|
| |
9.0x
|
| |
10.0x
|
| |
11.0x
|
| |
12.0x
|
| |
13.0x
|
| ||||||||||||||||||
(15.0%)
|
| | | $ | 4.21 | | | | | $ | 4.67 | | | | | $ | 5.13 | | | | | $ | 5.58 | | | | | $ | 6.04 | | | | | $ | 6.50 | | |
(10.0%)
|
| | | $ | 4.43 | | | | | $ | 4.91 | | | | | $ | 5.40 | | | | | $ | 5.88 | | | | | $ | 6.36 | | | | | $ | 6.85 | | |
(5.0%)
|
| | | $ | 4.64 | | | | | $ | 5.15 | | | | | $ | 5.66 | | | | | $ | 6.17 | | | | | $ | 6.68 | | | | | $ | 7.19 | | |
0.0%
|
| | | $ | 4.86 | | | | | $ | 5.40 | | | | | $ | 5.93 | | | | | $ | 6.47 | | | | | $ | 7.01 | | | | | $ | 7.54 | | |
5.0%
|
| | | $ | 5.07 | | | | | $ | 5.64 | | | | | $ | 6.20 | | | | | $ | 6.77 | | | | | $ | 7.33 | | | | | $ | 7.89 | | |
10.0%
|
| | | $ | 5.29 | | | | | $ | 5.88 | | | | | $ | 6.47 | | | | | $ | 7.06 | | | | | $ | 7.65 | | | | | $ | 8.24 | | |
15.0%
|
| | | $ | 5.50 | | | | | $ | 6.12 | | | | | $ | 6.74 | | | | | $ | 7.36 | | | | | $ | 7.97 | | | | | $ | 8.59 | | |
Discount
Rate |
| |
10.0x
|
| |
11.0x
|
| |
12.0x
|
| |
13.0x
|
| |
14.0x
|
| |
15.0x
|
| ||||||||||||||||||
9.0%
|
| | | $ | 11.39 | | | | | $ | 12.34 | | | | | $ | 13.29 | | | | | $ | 14.24 | | | | | $ | 15.19 | | | | | $ | 16.14 | | |
10.0%
|
| | | $ | 10.91 | | | | | $ | 11.82 | | | | | $ | 12.73 | | | | | $ | 13.64 | | | | | $ | 14.55 | | | | | $ | 15.46 | | |
11.0%
|
| | | $ | 10.46 | | | | | $ | 11.33 | | | | | $ | 12.20 | | | | | $ | 13.07 | | | | | $ | 13.94 | | | | | $ | 14.81 | | |
12.0%
|
| | | $ | 10.04 | | | | | $ | 10.87 | | | | | $ | 11.70 | | | | | $ | 12.53 | | | | | $ | 13.36 | | | | | $ | 14.20 | | |
13.0%
|
| | | $ | 9.64 | | | | | $ | 10.43 | | | | | $ | 11.23 | | | | | $ | 12.02 | | | | | $ | 12.82 | | | | | $ | 13.61 | | |
14.0%
|
| | | $ | 9.25 | | | | | $ | 10.01 | | | | | $ | 10.78 | | | | | $ | 11.54 | | | | | $ | 12.30 | | | | | $ | 13.06 | | |
Discount
Rate |
| |
80%
|
| |
90%
|
| |
100%
|
| |
110%
|
| |
120%
|
| |
130%
|
| ||||||||||||||||||
9.0%
|
| | | $ | 11.94 | | | | | $ | 13.20 | | | | | $ | 14.46 | | | | | $ | 15.72 | | | | | $ | 16.98 | | | | | $ | 18.24 | | |
10.0%
|
| | | $ | 11.44 | | | | | $ | 12.65 | | | | | $ | 13.85 | | | | | $ | 15.05 | | | | | $ | 16.25 | | | | | $ | 17.46 | | |
11.0%
|
| | | $ | 10.97 | | | | | $ | 12.12 | | | | | $ | 13.27 | | | | | $ | 14.42 | | | | | $ | 15.57 | | | | | $ | 16.72 | | |
12.0%
|
| | | $ | 10.52 | | | | | $ | 11.62 | | | | | $ | 12.72 | | | | | $ | 13.82 | | | | | $ | 14.92 | | | | | $ | 16.02 | | |
13.0%
|
| | | $ | 10.10 | | | | | $ | 11.15 | | | | | $ | 12.20 | | | | | $ | 13.25 | | | | | $ | 14.31 | | | | | $ | 15.36 | | |
14.0%
|
| | | $ | 9.70 | | | | | $ | 10.70 | | | | | $ | 11.71 | | | | | $ | 12.72 | | | | | $ | 13.72 | | | | | $ | 14.73 | | |
Annual Estimate Variance
|
| |
10.0x
|
| |
11.0x
|
| |
12.0x
|
| |
13.0x
|
| |
14.0x
|
| |
15.0x
|
| ||||||||||||||||||
(15.0%)
|
| | | $ | 8.43 | | | | | $ | 9.11 | | | | | $ | 9.78 | | | | | $ | 10.45 | | | | | $ | 11.13 | | | | | $ | 11.80 | | |
(10.0%)
|
| | | $ | 8.83 | | | | | $ | 9.54 | | | | | $ | 10.26 | | | | | $ | 10.97 | | | | | $ | 11.68 | | | | | $ | 12.40 | | |
(5.0%)
|
| | | $ | 9.22 | | | | | $ | 9.98 | | | | | $ | 10.73 | | | | | $ | 11.49 | | | | | $ | 12.24 | | | | | $ | 12.99 | | |
0.0%
|
| | | $ | 9.62 | | | | | $ | 10.41 | | | | | $ | 11.21 | | | | | $ | 12.00 | | | | | $ | 12.80 | | | | | $ | 13.59 | | |
5.0%
|
| | | $ | 10.02 | | | | | $ | 10.85 | | | | | $ | 11.68 | | | | | $ | 12.52 | | | | | $ | 13.35 | | | | | $ | 14.18 | | |
10.0%
|
| | | $ | 10.41 | | | | | $ | 11.29 | | | | | $ | 12.16 | | | | | $ | 13.03 | | | | | $ | 13.91 | | | | | $ | 14.78 | | |
15.0%
|
| | | $ | 10.81 | | | | | $ | 11.72 | | | | | $ | 12.64 | | | | | $ | 13.55 | | | | | $ | 14.46 | | | | | $ | 15.37 | | |
| | |
12/31/2021
|
| |
12/31/2022
|
| |
12/31/2023
|
| |
12/31/2024
|
| |
12/31/2025
|
| |||||||||||||||
Net Income ($000s)
|
| | | $ | 9,154 | | | | | $ | 9,444 | | | | | $ | 10,399 | | | | | $ | 11,550 | | | | | $ | 12,769 | | |
Earnings per Share ($)
|
| | | $ | 0.71 | | | | | $ | 0.73 | | | | | $ | 0.81 | | | | | $ | 0.90 | | | | | $ | 0.99 | | |
Dividends per Share ($)
|
| | | $ | 0.16 | | | | | $ | 0.16 | | | | | $ | 0.16 | | | | | $ | 0.16 | | | | | $ | 0.16 | | |
TBV per Share ($)
|
| | | $ | 9.00 | | | | | $ | 9.58 | | | | | $ | 10.23 | | | | | $ | 10.97 | | | | | $ | 11.80 | | |
Name
|
| |
Severn Options
|
| |||||||||
|
Shares
|
| |
Value(1)
|
| ||||||||
Alan J. Hyatt
|
| | | | 60,000 | | | | | $ | 203,600 | | |
Raymond S. Crosby
|
| | | | 9,000 | | | | | | 33,060 | | |
James H. Johnson, Jr.
|
| | | | 8,200 | | | | | | 29,180 | | |
David S. Jones
|
| | | | 9,000 | | | | | | 33,060 | | |
Eric M. Keitz
|
| | | | 11,400 | | | | | | 38,280 | | |
John A. Lamon, III
|
| | | | 7,000 | | | | | | 23,360 | | |
Dale B. Shields
|
| | | | 3,000 | | | | | | 8,760 | | |
Konrad M. Wayson
|
| | | | 6,600 | | | | | | 22,800 | | |
Named Executive Officer
|
| |
Cash
($)(1) |
| |
Equity
($)(2) |
| |
Other
($)(3) |
| |
Total
($) |
| ||||||||||||
Alan J. Hyatt
|
| | | | 781,122 | | | | | | 203,600 | | | | | | 67,168 | | | | | | 1,051,890 | | |
Erik M. Chick
|
| | | | 349,433 | | | | | | — | | | | | | 629 | | | | | | 350,062 | | |
Vance W. Adkins
|
| | | | 399,312 | | | | | | — | | | | | | 30 | | | | | | 399,342 | | |
Name
|
| |
Stock Options
|
| |||
Alan J. Hyatt
|
| | | $ | 203,600 | | |
Erik M. Chick
|
| | | | — | | |
Vance W. Adkins
|
| | | | — | | |
|
Shore Bancshares, Inc.
|
| | Alliance Advisors | |
|
18 E. Dover St.
|
| | 200 Broadacres Drive | |
|
Easton, Maryland 21601
|
| | 3rd Floor | |
|
(410) 763-7800
|
| | Bloomfield, NJ 07003 | |
|
Attention: Investor Relations
|
| | Toll-Free: (855) 742-8276 | |
| | | | E-mail: SHBI@allianceadvisors.com | |
|
Severn Bancorp, Inc.
|
| | Alliance Advisors | |
|
200 Westgate Circle
|
| | 200 Broadacres Drive | |
|
Suite 200
|
| | 3rd Floor | |
|
Annapolis, Maryland 21401
|
| | Bloomfield, NJ 07003 | |
|
(410) 260-2000
|
| | Toll-Free: (888) 991-1291 | |
|
Attention: Investor Relations
|
| | E-mail: SVBI@allianceadvisors.com | |
| | |
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|
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| | | | SHORE BANCSHARES, INC. | | | |||||
| | | | By: | | |
/s/ Lloyd L. Beatty, Jr.
|
| | ||
| | | | Name: | | | Lloyd L. Beatty, Jr. | | | ||
| | | | Title: | | | President and Chief Executive Officer | | | ||
| | | | SEVERN BANCORP, INC. | | | | | |||
| | | | By: | | |
/s/ Alan J. Hyatt
|
| | ||
| | | | Name: | | | Alan J. Hyatt | | | ||
| | | | Title: | | | Chairman, President and Chief Executive Officer | | |
|
Name of Shareholder
|
| |
Shares of
Severn Common Stock Beneficially Owned |
|
| | | | | |
| ATTEST: | | | | | | SHORE BANCSHARES, INC. | | |||
|
|
| | | | | By: | | |
|
|
|
Name:
Title: |
| | | | | | | |
Name: Lloyd L. Beatty, Jr.
Title: President and Chief Executive Officer |
|
| ATTEST: | | | | | | SEVERN BANCORP, INC. | | |||
|
|
| | | | | By: | | |
|
|
|
Name:
Title: |
| | | | | | | |
Name: Alan J. Hyatt
Title: Chairman, President and Chief Executive Officer |
|
1 Year Severn Bancorp Chart |
1 Month Severn Bancorp Chart |
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