Severn Bancorp's (SVBI) large debt load is necessary because there are more loans on the books than deposits but, a large amount of these assets are nonproductive, not covered by allowances and the debt is about to get even more expensive. Deposits are also slowly walking out the door a I don't see any short-term solution or relief for this struggling regional bank.
I am now solely out to find 1) a bank with the ability to fix something that I can reasonably see doubling income within the next 12-24 months and 2) one with safe assets that is trading at a discount.
This is going to require sifting through some "icky" situations but at...
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