|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
Application transformation and DevOps practices are two sides of the same coin. Enterprises that want to capture value faster, need to deliver value faster – time value of money principle. To do that enterprises need to build cloud-native apps as microservices by empowering teams to build, ship, and run in production. In his session at @DevOpsSummit at 19th Cloud Expo, Neil Gehani, senior product manager at HPE, discussed what every business should plan for how to structure their teams to delive...
Dec. 5, 2016 09:15 AM EST Reads: 1,407
"Venafi has a platform that allows you to manage, centralize and automate the complete life cycle of keys and certificates within the organization," explained Gina Osmond, Sr. Field Marketing Manager at Venafi, in this SYS-CON.tv interview at DevOps at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 5, 2016 09:15 AM EST Reads: 870
"We are a modern development application platform and we have a suite of products that allow you to application release automation, we do version control, and we do application life cycle management," explained Flint Brenton, CEO of CollabNet, in this SYS-CON.tv interview at DevOps at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 5, 2016 08:45 AM EST Reads: 792
"ReadyTalk is an audio and web video conferencing provider. We've really come to embrace WebRTC as the platform for our future of technology," explained Dan Cunningham, CTO of ReadyTalk, in this SYS-CON.tv interview at WebRTC Summit at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 5, 2016 08:15 AM EST Reads: 438
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life sett...
Dec. 5, 2016 07:30 AM EST Reads: 7,039
We are always online. We access our data, our finances, work, and various services on the Internet. But we live in a congested world of information in which the roads were built two decades ago. The quest for better, faster Internet routing has been around for a decade, but nobody solved this problem. We’ve seen band-aid approaches like CDNs that attack a niche's slice of static content part of the Internet, but that’s it. It does not address the dynamic services-based Internet of today. It does...
Dec. 5, 2016 07:30 AM EST Reads: 973
The WebRTC Summit New York, to be held June 6-8, 2017, at the Javits Center in New York City, NY, announces that its Call for Papers is now open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 20th International Cloud Expo and @ThingsExpo. WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web ...
Dec. 5, 2016 07:15 AM EST Reads: 1,252
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
Dec. 5, 2016 06:45 AM EST Reads: 1,793
WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web communications world. The 6th WebRTC Summit continues our tradition of delivering the latest and greatest presentations within the world of WebRTC. Topics include voice calling, video chat, P2P file sharing, and use cases that have already leveraged the power and convenience of WebRTC.
Dec. 5, 2016 06:45 AM EST Reads: 1,594
Without lifecycle traceability and visibility across the tool chain, stakeholders from Planning-to-Ops have limited insight and answers to who, what, when, why and how across the DevOps lifecycle. This impacts the ability to deliver high quality software at the needed velocity to drive positive business outcomes. In his general session at @DevOpsSummit at 19th Cloud Expo, Phil Hombledal, Solution Architect at CollabNet, discussed how customers are able to achieve a level of transparency that e...
Dec. 5, 2016 06:45 AM EST Reads: 978
"We're a cybersecurity firm that specializes in engineering security solutions both at the software and hardware level. Security cannot be an after-the-fact afterthought, which is what it's become," stated Richard Blech, Chief Executive Officer at Secure Channels, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 5, 2016 06:30 AM EST Reads: 722
The Internet of Things (IoT) promises to simplify and streamline our lives by automating routine tasks that distract us from our goals. This promise is based on the ubiquitous deployment of smart, connected devices that link everything from industrial control systems to automobiles to refrigerators. Unfortunately, comparatively few of the devices currently deployed have been developed with an eye toward security, and as the DDoS attacks of late October 2016 have demonstrated, this oversight can ...
Dec. 5, 2016 06:15 AM EST Reads: 886
Fact is, enterprises have significant legacy voice infrastructure that’s costly to replace with pure IP solutions. How can we bring this analog infrastructure into our shiny new cloud applications? There are proven methods to bind both legacy voice applications and traditional PSTN audio into cloud-based applications and services at a carrier scale. Some of the most successful implementations leverage WebRTC, WebSockets, SIP and other open source technologies. In his session at @ThingsExpo, Da...
Dec. 5, 2016 06:00 AM EST Reads: 1,678
Kubernetes is a new and revolutionary open-sourced system for managing containers across multiple hosts in a cluster. Ansible is a simple IT automation tool for just about any requirement for reproducible environments. In his session at @DevOpsSummit at 18th Cloud Expo, Patrick Galbraith, a principal engineer at HPE, discussed how to build a fully functional Kubernetes cluster on a number of virtual machines or bare-metal hosts. Also included will be a brief demonstration of running a Galera MyS...
Dec. 5, 2016 04:30 AM EST Reads: 5,225
Internet-of-Things discussions can end up either going down the consumer gadget rabbit hole or focused on the sort of data logging that industrial manufacturers have been doing forever. However, in fact, companies today are already using IoT data both to optimize their operational technology and to improve the experience of customer interactions in novel ways. In his session at @ThingsExpo, Gordon Haff, Red Hat Technology Evangelist, will share examples from a wide range of industries – includin...
Dec. 5, 2016 04:15 AM EST Reads: 1,617