|By Marketwired .||
|February 14, 2014 11:21 AM EST||
MOUNT AIRY, NC -- (Marketwired) -- 02/14/14 -- Surrey Bancorp (the "Company") (PINKSHEETS: SRYB), the holding company for Surrey Bank & Trust, today reported earnings for the fourth quarter of 2013 and the full year.
For the quarter ended December 31, 2013, net income totaled $700,849 or $0.17 per fully diluted share, compared with $976,399 or $0.23 per fully diluted common share earned during the fourth quarter of 2012.
The decrease in quarterly earnings results from an increase in the provision for loan losses.
The provision for loan losses increased from a recapture of $309,080 in the fourth quarter of 2012 to a provision of $171,452 for the same period in 2013, a $480,532 difference. The recapture was the result of significant early payoffs in loans outstanding during the last quarter of 2012, while loans increased in the fourth quarter of 2013.
Net interest income decreased by 1.96 percent from $2,321,194 in the fourth quarter of 2012 to $2,275,796 for the same period in 2013, as asset yields continue to decrease in the low interest rate environment. Noninterest income increased slightly to $838,663, compared to $798,359 reported for the quarter ended December 31, 2012. Noninterest expenses decreased from $1,790,262 in the fourth quarter of 2012 to $1,773,372 in the fourth quarter of 2013. This decrease is attributable to a reduction in expenses related to foreclosed assets.
For the year ended December 31, 2013, the Company reported net income of $2,889,351, or $0.69 per fully diluted common share. This represents a 3.77 percent increase in profitability from year-end 2012, when the Company reported earnings of $2,782,880, or $0.67 per fully diluted common share. This increase was attributable to a reduction in the provision for loan losses and an increase in noninterest income, which more than offset the reduction in net interest income. Net interest income decreased 2.69 percent from $9,283,410 for the 2012 year-end to $9,033,671 at year-end 2013, as asset yields declined. The provision for loan losses decreased from $471,292 in 2012 to $319,565 in 2013 due to increased loan guarantee enhancements. Approximately $60,864,000 of the total loans outstanding at December 31, 2013, carry government guarantees which reduce the Bank's credit exposure. The guaranteed portion of these loans amounts to approximately $47,716,000, or 26.0 percent of total loans outstanding. This compares to guarantees of $43,118,000, or 24.4 percent of loans outstanding at December 31, 2012. Noninterest income increased 11.2 percent to $2,906,844 compared to $2,613,627 reported for the year ended December 31, 2012 as income from the sale of government guaranteed loans and subsidiary insurance commission revenue increased. Noninterest expenses increased modestly, from $6,921,581 in 2012, $6,971,932 in 2013, or 0.73 percent.
Loan loss reserves were $3,375,350 or 1.84 percent of total loans as of December 31, 2013. Non-performing assets were 1.58 percent of total assets at December 31, 2013, compared to 1.84 percent on that date in 2012. At December 31, 2013, the allowance for loan loss reserves equals 86.88 percent of impaired and non-performing assets, net of government guarantees compared to 76.76 percent at the end of 2012.
Total assets were $240,918,977 as of December 31, 2013, an increase of 4.79 percent from $229,912,432 reported as of December 31, 2012. Total deposits were $195,800,961 at year-end 2013, an increase of 4.25 percent from the $187,823,037 reported at the end of year of 2012. Net loans increased 3.65 percent to $179,908,825, compared to $173,577,565 as of December 31, 2012.
About Surrey Bancorp
Surrey Bancorp is the bank holding company for Surrey Bank & Trust (the "Bank") and is located at 145 North Renfro Street, Mount Airy, North Carolina. The Bank operates full service branch offices at 145 North Renfro Street, 1280 West Pine Street and 2050 Rockford Street in Mount Airy. Full-service branch offices are also located at 653 South Key Street in Pilot Mountain, North Carolina, and 940 Woodland Drive in Stuart, Virginia. The Bank has opened a Loan Production Office at 1328 North Bridge Street in Elkin, North Carolina.
Surrey Bank & Trust is engaged in the sale of insurance through its wholly owned subsidiary, SB&T Insurance, located at 199 North Renfro Street in Mount Airy. The Bank also owns Surrey Investment Services, Inc., which provides full-service brokerage and investment advice through an association with LPL Financial, and Freedom Finance, LLC, a sales finance company located at 165 North Renfro Street in Mount Airy.
Surrey Bank & Trust can be found online at www.surreybank.com.
Non-GAAP Financial Measures
This report refers to the overhead efficiency ratio, which is computed by dividing non-interest expense by the sum of net interest income and non-interest income. This is a non-GAAP financial measure that we believe provides investors with important information regarding our operational efficiency. Comparison of our efficiency ratio with those of other companies may not be possible, because other companies may calculate the efficiency ratio differently. Such information is not in accordance with generally accepted accounting principles in the United States (GAAP) and should not be construed as such. Management believes such financial information is meaningful to the reader in understanding operating performance, but cautions that such information not be viewed as a substitute for GAAP. Surrey Bancorp, in referring to its net income, is referring to income under GAAP.
Forward Looking Statements
Information in this press release contains "forward-looking statements." These statements involve risks and uncertainties that could cause actual results to differ materially, including without limitation, the effects of future economic conditions, governmental fiscal and monetary policies, legislative and regulatory changes, the risks of changes in interest rates and the effects of competition. Additional factors that could cause actual results to differ materially are discussed in Surrey Bancorp's recent filings with the Securities and Exchange Commission, included but not limited to its Annual Report on Form 10-K and its other periodic reports.
SURREY BANCORP CONSOLIDATED FINANCIAL HIGHLIGHTS (Dollars in thousands, except per share amounts) December 31, December 31, 2013 2012 ------------ ------------ (unaudited) Total assets $ 240,919 $ 229,912 Total loans 183,284 176,981 Investments 40,890 37,318 Deposits 195,801 187,823 Borrowed funds 7,750 7,750 Stockholders' equity 34,218 32,237 Non-performing assets to total assets 1.58% 1.84% Loans past due more than 90 days to total loans 0.02% 0.39% Allowance for loan losses to total loans 1.84% 1.93% Book value per common share $ 8.57 $ 8.01 SURREY BANCORP CONSOLIDATED FINANCIAL HIGHLIGHTS (Dollars in thousands, except per share amounts) For the Three Months For the Twelve Months Ended December 31, Ended December 31, ---------------------- ---------------------- 2013 2012 2013 2012 ---------- ---------- ---------- ---------- Interest income $ 2,634 $ 2,717 $ 10,539 $ 10,954 Interest expense 358 396 1,505 1,671 Net interest income 2,276 2,321 9,034 9,283 Provision for loan losses 171 (309) 320 471 Net interest income after provision for loan losses 2,105 2,630 8,714 8,812 Noninterest income 838 798 2,907 2,614 Noninterest expense 1,773 1,790 6,972 6,922 Net income before taxes 1,170 1,638 4,649 4,504 Provision for income taxes 469 662 1,760 1,721 Net income 701 976 2,889 2,783 Preferred stock dividend declared 46 46 183 183 Net income available to common shareholders $ 655 $ 930 $ 2,706 $ 2,600 Basic net income per share $ 0.18 $ 0.26 $ 0.76 $ 0.73 Diluted net income per share $ 0.17 $ 0.23 $ 0.69 $ 0.67 Return on average total assets (1) 1.15% 1.69% 1.22% 1.23% Return on average total equity (1) 8.10% 12.04% 8.59% 8.86% Yield on average interest earning assets 4.64% 5.06% 4.78% 5.24% Cost of funds 0.69% 0.81% 0.75% 0.87% Net yield on average interest earning assets 4.01% 4.32% 4.10% 4.44% Overhead efficiency ratio 56.94% 57.39% 58.39% 58.18% Net charge-offs/average loans 0.05% 0.01% 0.19% 0.53%
(1) Annualized for all periods presented.
For additional information, please contact
Adobe is changing the world though digital experiences. Adobe helps customers develop and deliver high-impact experiences that differentiate brands, build loyalty, and drive revenue across every screen, including smartphones, computers, tablets and TVs. Adobe content solutions are used daily by millions of companies worldwide-from publishers and broadcasters, to enterprises, marketing agencies and household-name brands. Building on its established design leadership, Adobe enables customers not o...
Oct. 1, 2016 04:45 AM EDT Reads: 554
If you’re responsible for an application that depends on the data or functionality of various IoT endpoints – either sensors or devices – your brand reputation depends on the security, reliability, and compliance of its many integrated parts. If your application fails to deliver the expected business results, your customers and partners won't care if that failure stems from the code you developed or from a component that you integrated. What can you do to ensure that the endpoints work as expect...
Oct. 1, 2016 04:30 AM EDT Reads: 1,805
Just over a week ago I received a long and loud sustained applause for a presentation I delivered at this year’s Cloud Expo in Santa Clara. I was extremely pleased with the turnout and had some very good conversations with many of the attendees. Over the next few days I had many more meaningful conversations and was not only happy with the results but also learned a few new things. Here is everything I learned in those three days distilled into three short points.
Oct. 1, 2016 04:00 AM EDT Reads: 5,473
SYS-CON Events announced today that ReadyTalk, a leading provider of online conferencing and webinar services, has been named Vendor Presentation Sponsor at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. ReadyTalk delivers audio and web conferencing services that inspire collaboration and enable the Future of Work for today’s increasingly digital and mobile workforce. By combining intuitive, innovative tec...
Oct. 1, 2016 04:00 AM EDT Reads: 3,125
WebRTC adoption has generated a wave of creative uses of communications and collaboration through websites, sales apps, customer care and business applications. As WebRTC has become more mainstream it has evolved to use cases beyond the original peer-to-peer case, which has led to a repeating requirement for interoperability with existing infrastructures. In his session at @ThingsExpo, Graham Holt, Executive Vice President of Daitan Group, will cover implementation examples that have enabled ea...
Oct. 1, 2016 04:00 AM EDT Reads: 1,654
Apache Hadoop is a key technology for gaining business insights from your Big Data, but the penetration into enterprises is shockingly low. In fact, Apache Hadoop and Big Data proponents recognize that this technology has not yet achieved its game-changing business potential. In his session at 19th Cloud Expo, John Mertic, director of program management for ODPi at The Linux Foundation, will explain why this is, how we can work together as an open data community to increase adoption, and the i...
Oct. 1, 2016 03:30 AM EDT Reads: 1,231
Fifty billion connected devices and still no winning protocols standards. HTTP, WebSockets, MQTT, and CoAP seem to be leading in the IoT protocol race at the moment but many more protocols are getting introduced on a regular basis. Each protocol has its pros and cons depending on the nature of the communications. Does there really need to be only one protocol to rule them all? Of course not. In his session at @ThingsExpo, Chris Matthieu, co-founder and CTO of Octoblu, walk you through how Oct...
Oct. 1, 2016 03:00 AM EDT Reads: 2,447
There is growing need for data-driven applications and the need for digital platforms to build these apps. In his session at 19th Cloud Expo, Muddu Sudhakar, VP and GM of Security & IoT at Splunk, will cover different PaaS solutions and Big Data platforms that are available to build applications. In addition, AI and machine learning are creating new requirements that developers need in the building of next-gen apps. The next-generation digital platforms have some of the past platform needs a...
Oct. 1, 2016 03:00 AM EDT Reads: 1,970
SYS-CON Events announced today that Tintri Inc., a leading producer of VM-aware storage (VAS) for virtualization and cloud environments, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Tintri VM-aware storage is the simplest for virtualized applications and cloud. Organizations including GE, Toyota, United Healthcare, NASA and 6 of the Fortune 15 have said “No to LUNs.” With Tintri they mana...
Oct. 1, 2016 02:30 AM EDT Reads: 3,037
Smart Cities are here to stay, but for their promise to be delivered, the data they produce must not be put in new siloes. In his session at @ThingsExpo, Mathias Herberts, Co-founder and CTO of Cityzen Data, will deep dive into best practices that will ensure a successful smart city journey.
Oct. 1, 2016 02:30 AM EDT Reads: 2,716
Businesses are struggling to manage the information flow and interactions between all of these new devices and things jumping on their network, and the apps and IT systems they control. The data businesses gather is only helpful if they can do something with it. In his session at @ThingsExpo, Chris Witeck, Principal Technology Strategist at Citrix, will discuss how different the impact of IoT will be for large businesses, expanding how IoT will allow large organizations to make their legacy ap...
Oct. 1, 2016 02:30 AM EDT Reads: 664
Major trends and emerging technologies – from virtual reality and IoT, to Big Data and algorithms – are helping organizations innovate in the digital era. However, to create real business value, IT must think beyond the ‘what’ of digital transformation to the ‘how’ to harness emerging trends, innovation and disruption. Architecture is the key that underpins and ties all these efforts together. In the digital age, it’s important to invest in architecture, extend the enterprise footprint to the cl...
Oct. 1, 2016 02:15 AM EDT Reads: 760
SYS-CON Events announced today that Numerex Corp, a leading provider of managed enterprise solutions enabling the Internet of Things (IoT), will exhibit at the 19th International Cloud Expo | @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Numerex Corp. (NASDAQ:NMRX) is a leading provider of managed enterprise solutions enabling the Internet of Things (IoT). The Company's solutions produce new revenue streams or create operating...
Oct. 1, 2016 02:15 AM EDT Reads: 2,139
24Notion is full-service global creative digital marketing, technology and lifestyle agency that combines strategic ideas with customized tactical execution. With a broad understand of the art of traditional marketing, new media, communications and social influence, 24Notion uniquely understands how to connect your brand strategy with the right consumer. 24Notion ranked #12 on Corporate Social Responsibility - Book of List.
Oct. 1, 2016 02:15 AM EDT Reads: 523
Why do your mobile transformations need to happen today? Mobile is the strategy that enterprise transformation centers on to drive customer engagement. In his general session at @ThingsExpo, Roger Woods, Director, Mobile Product & Strategy – Adobe Marketing Cloud, covered key IoT and mobile trends that are forcing mobile transformation, key components of a solid mobile strategy and explored how brands are effectively driving mobile change throughout the enterprise.
Oct. 1, 2016 01:45 AM EDT Reads: 528