New Haven-based Southern Connecticut Bancorp was in the red during the first quarter, as the bank was forced to set aside more reserves for problem loans.
The parent company of the Bank of Southern Connecticut reported a loss of  $637,000, or 24 cents per share, during the period ended March 31, compared to a profit of $18,000, or 1 cent per share, in the year ago period.
The loss was largely a result of the $743,000 the bank set aside during the quarter to cover bad loans. The bank said that reserve  was primarily related to one loan that was severely impacted by the “prevailing economic conditions.”
When banks set aside funds to cover bad loans it hits their income statement.
