Severn Bancorp Inc., of Annapolis, parent company of Severn Savings Bank, reported second-quarter net income of $232,000, or 1 cent per share, an 80.7 percent decrease from net income of $1.2 million, or 8 cents per share, for the prior-year period.
In a statement, Severn President and CEO Alan J. Hyatt said the company absorbed over $2 million in expenses in the first and second quarters ridding itself of “problem assets,” chiefly foreclosed real estate. Non-performing assets totaled $50.8 million in the 2013 period versus $55.3 million the year before.
Allowance for loan losses dropped to $12.8 million versus $24.1 million in the year-ago quarter. Total assets fell to $839.1 million from $897.4 million in 2012.