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Severn Bank posts loss in 2Q

Severn Bancorp Inc. of Annapolis, parent company of Severn Savings Bank, said second-quarter net loss was $846,000, or 13 cents per diluted share, compared to net income of $593,000, or 2 cents per share, for the second quarter of 2010.

In a statement, the company said the loss stemmed from a decision to add $3 million to the loan loss reserves during the quarter for potential losses on primarily acquisition and development loans. Non-performing assets, consisting of non-accrual loans and foreclosed real estate dropped to $59.4 million from $64.1 million in the 2010 quarter.

Total assets fell to $937.4 million from $1 billion in the year-ago period.