Severn Bancorp in Annapolis, Md., has reported a loss for the second quarter, following a revision to its initial quarterly results.
Severn now says that it lost $576,000 during the quarter, after reporting a profit of $824,000 in mid-July. The bank attributed the loss to its addition of a $1.4 million reserve on unsecured lines of credit to various municipalities.
"This reserve is due to management's decision, based on consultation with its regulators, to place a reserve on certain unsecured standby letters of credit on the books as of June 30," the company said in a press release late Friday.
A year earlier Severn reported a profit of $232,000.
Severn has assets of $789 million and four branches in Maryland.