Profits inched up at a number of area banks during the first quarter of the year as lending remained steady.
Severn Bancorp in Annapolis led the way with a 40 percent increase in earnings following the sale of $50 million in underperforming loans and foreclosed properties in late 2013.
For the first quarter, the bank posted earnings of $867,000, or 3 cents a share, up from $621,000, or 3 cents a share, in the same quarter last year.
“We are now dedicated to expanding technology and service offerings rather than dealing with problems,” Alan J. Hyatt, president and chief executive officer, said in a statement.
At Bethesda-based Eagle Bank, profits hit a quarterly record of $12.5 million, or 47 cents a share, driven by a 20 percent increase in total loans. (A year ago, by means of comparison, the bank posted a profit of $11.6 million, or 44 cents a share.)
“The company’s net income has increased each quarter since the fourth quarter of 2008,” Ronald D. Paul, chairman and chief executive of Eagle Bancorp, said in a statement.
Among other banks posting a profit were McLean-based Capital One Financial (which reported a 9.3 percent increase in earnings) and Olney-based Sandy Spring Bancorp (up 4 percent).
Sandy Spring Bancorp, which closed three branches during the first quarter, plans to consider more branch consolidations throughout the year, bank executives said in a conference call with analysts.
“Business is rebounding, and we are looking to the second quarter for more improvement,” said William J. Wallace IV, an analyst for Raymond James Financial.
Meanwhile, Cardinal Financial and Access National Corp. posted double-digit drops in profits — 40 percent and 34 percent, respectively.
Cardinal Financial, which is headquartered in Tysons Corner, attributed the drop to $3.2 million worth of expenses related to its $51.7 million purchase of United Financial Banking Cos., which was completed in January.
The bank’s profits fell to $4.29 million, or 13 cents a share, from $7.18 million, or 23 cents per share, in the same quarter last year. Total assets, meanwhile, rose about 12 percent to $3.14 billion.
“As always, we will continue to concentrate on gaining profitable market share, either through de novo expansion or acquisition,” said Bernard H. Clineburg, the bank’s chairman and chief executive.