Welcome!

News Feed Item

Surrey Bancorp Reports Second Quarter Net Income of $767,779

MOUNT AIRY, NC -- (Marketwired) -- 07/25/14 -- Surrey Bancorp (the "Company"), (PINKSHEETS: SRYB), the holding company for Surrey Bank & Trust, today reported earnings for the second quarter of 2014.

For the quarter ended June 30, 2014, net income totaled $767,779 or $0.18 per fully diluted share, compared with totaled $800,843 or $0.19 per fully diluted common share earned during the second quarter of 2013.

Earnings for the three months ended June 30, 2014 are approximately 4.4 percent lower than for the same period in 2013. The decrease is the result of a reduction in noninterest income and an increase in noninterest expenses. Noninterest income decreased from $796,643 in the second quarter of 2013 to $731,886 in 2014. The gain on the sale of government guaranteed loans dropped from $229,130 in the quarter ended June 30, 2013 to $127,362 in 2014. Noninterest expenses increased 7.1 percent from $1,678,757 in the second quarter of 2013, to $1,797,745 in 2014, primarily due to increases in personnel-related expenses and costs associated with foreclosed assets. Other expenses increased 12.8 percent from $336,965 in 2013 to $380,235 in 2014 due to cost associated with software license, consulting, and electronic banking expenses. The provision for loan losses decreased from $93,402 in the second quarter of 2013 to $55,787 in 2014. This decrease is partially due to net charge off recoveries in the second quarter of 2014 compared to 2013. Net recoveries amounted to $103,450 in June 2014, compared to net charge offs of $4,064 in the second quarter of 2013. At June 30, 2014, the percentage of loans receiving pass credit risk grades was 98.1 percent, compared to 97.3 percent at December 31, 2013 and 98.3 percent at June 30, 2013. Credit quality continues to be enhanced by government guarantees. At June 30, 2014, the guaranteed portion of loans equaled 25.2 percent of total loans compared to 26.1 percent at December 31, 2013 and 25.1 percent at June 30, 2013. Net interest income increased from $2,251,138 in the second quarter of 2013 to $2,335,307 in 2014. This increase is due to loan growth. Asset yields decreased from 4.83 percent to 4.69 percent from the quarters ended June 2013 to June 2014, partially due to the change in average earning asset mix from higher yielding loans to lower yielding deposits in other banks. However, loan yields increased from 5.71 percent in the second quarter of 2013 to 5.82 percent in the second quarter of 2014, but the increase was not enough to offset the change in the earning asset mix.

Loan loss reserves were $3,523,464 or 1.91 percent of total loans as of June 30, 2014. Non-performing assets were 1.28 percent of total assets at June 30, 2014, compared to 1.55 percent on that date in 2013. At June 30, 2014, the allowance for loan loss reserves equals 124 percent of impaired and non-performing assets, net of government guarantees.

Total assets were $250,056,330 as of June 30, 2014, an increase of 6.6 percent from $234,574,115 reported as of June 30, 2013. Total deposits were $203,356,899 at quarter-end 2014, a 6.9 percent increase from the $190,147,848 reported at the end of the second quarter of 2013. Net loans increased to $180,910,373, or 0.3 percent, compared to $180,450,435, at June 30, 2013.

Net income for the six months ended June 30, 2014, was $1,444,179 or $0.35 per diluted share, compared to $1,452,619 or $0.35 per diluted share, for the same period in 2013.

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.

Surrey Bank & Trust is engaged in the sale of insurance and provides full-service brokerage and investment services through its wholly owned subsidiary Surrey Investment Services, Inc. The insurance division, dba SB&T Insurance, is located at 199 North Renfro Street in Mount Airy. The brokerage division which operates through an association with LPL Financial, is located at 145 North Renfro Street in Mount Airy. The Bank also has a subsidiary sales finance company, Freedom Finance, LLC, 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)


                                      June 30,    December 31,   June 30,
                                        2014          2013          2013
                                    (unaudited)                 (unaudited)
Total assets                        $   250,056  $     240,919  $   234,574
Total loans                             184,434        183,284      183,882
Investments                              48,072         40,890       34,980
Deposits                                203,357        195,801      190,148
Borrowed funds                            7,750          7,750        7,750
Stockholders' equity                     35,617         34,218       33,599
Non-performing assets to total
 assets                                    1.28%          1.58%        1.55%
Loans past due more than 90 days to
 total loans                               0.05%          0.02%        0.35%
Allowance for loan losses to total
 loans                                     1.91%          1.84%        1.87%
Book value per common share         $      8.96  $        8.57  $      8.39


                               SURREY BANCORP
                     CONSOLIDATED FINANCIAL HIGHLIGHTS
              (Dollars in thousands, except per share amounts)

                                         For the Three       For the Six
                                             Months             Months
                                         Ended June 30,     Ended June 30,
                                       -----------------  -----------------
                                         2014      2013     2014      2013
                                       -------   -------  -------   -------
Interest income                        $ 2,679   $ 2,648  $ 5,312   $ 5,293
Interest expense                           344       397      691       782
Net interest income                      2,335     2,251    4,621     4,511
Provision for loan losses                   56        93       (7)      136
Net interest income after provision
 for loan losses                         2,279     2,158    4,628     4,375
Noninterest income                         732       797    1,313     1,455
Noninterest expense                      1,798     1,679    3,665     3,520
Net income before taxes                  1,213     1,276    2,276     2,310
Provision for income taxes                 445       475      832       857
Net income                                 768       801    1,444     1,453
Preferred stock dividend declared           46        46       91        91
Net income available to common
 shareholders                          $   722   $   755  $ 1,353   $ 1,362
Basic net income per share             $  0.20   $  0.21  $  0.38   $  0.38
Diluted net income per share           $  0.18   $  0.19  $  0.35   $  0.35
Return on average total assets (1)        1.23%     1.36%    1.17%     1.23%
Return on average total equity (1)        8.68%     9.62%    8.26%     8.82%
Yield on average interest earning
 assets                                   4.69%     4.83%    4.70%     4.88%
Cost of funds                             0.66%     0.80%    0.67%     0.79%
Net yield on average interest earning
 assets                                   4.09%     4.11%    4.08%     4.16%
Overhead efficiency ratio                58.61%    55.08%   61.76%    59.01%
Net charge-offs (recoveries)/average
 loans                                   (0.06%)    0.00%   (0.08%)    0.06%

(1) Annualized for all periods presented.

For additional information, please contact
Ted Ashby
CEO
Mark Towe
CFO
(336) 783-3900

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
In his session at @DevOpsSummit at 20th Cloud Expo, Kelly Looney, director of DevOps consulting for Skytap, showed how an incremental approach to introducing containers into complex, distributed applications results in modernization with less risk and more reward. He also shared the story of how Skytap used Docker to get out of the business of managing infrastructure, and into the business of delivering innovation and business value. Attendees learned how up-front planning allows for a clean sep...
IoT is at the core or many Digital Transformation initiatives with the goal of re-inventing a company's business model. We all agree that collecting relevant IoT data will result in massive amounts of data needing to be stored. However, with the rapid development of IoT devices and ongoing business model transformation, we are not able to predict the volume and growth of IoT data. And with the lack of IoT history, traditional methods of IT and infrastructure planning based on the past do not app...
Enterprise architects are increasingly adopting multi-cloud strategies as they seek to utilize existing data center assets, leverage the advantages of cloud computing and avoid cloud vendor lock-in. This requires a globally aware traffic management strategy that can monitor infrastructure health across data centers and end-user experience globally, while responding to control changes and system specification at the speed of today’s DevOps teams. In his session at 20th Cloud Expo, Josh Gray, Chie...
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, shared examples from a wide range of industries – including en...
In IT, we sometimes coin terms for things before we know exactly what they are and how they’ll be used. The resulting terms may capture a common set of aspirations and goals – as “cloud” did broadly for on-demand, self-service, and flexible computing. But such a term can also lump together diverse and even competing practices, technologies, and priorities to the point where important distinctions are glossed over and lost.
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. Jack Norris reviews best practices to show how companies develop, deploy, and dynamically update these applications and how this data-first...
Intelligent Automation is now one of the key business imperatives for CIOs and CISOs impacting all areas of business today. In his session at 21st Cloud Expo, Brian Boeggeman, VP Alliances & Partnerships at Ayehu, will talk about how business value is created and delivered through intelligent automation to today’s enterprises. The open ecosystem platform approach toward Intelligent Automation that Ayehu delivers to the market is core to enabling the creation of the self-driving enterprise.
"At the keynote this morning we spoke about the value proposition of Nutanix, of having a DevOps culture and a mindset, and the business outcomes of achieving agility and scale, which everybody here is trying to accomplish," noted Mark Lavi, DevOps Solution Architect at Nutanix, in this SYS-CON.tv interview at @DevOpsSummit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"We're here to tell the world about our cloud-scale infrastructure that we have at Juniper combined with the world-class security that we put into the cloud," explained Lisa Guess, VP of Systems Engineering at Juniper Networks, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"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.
In his session at 20th Cloud Expo, Mike Johnston, an infrastructure engineer at Supergiant.io, discussed how to use Kubernetes to set up a SaaS infrastructure for your business. Mike Johnston is an infrastructure engineer at Supergiant.io with over 12 years of experience designing, deploying, and maintaining server and workstation infrastructure at all scales. He has experience with brick and mortar data centers as well as cloud providers like Digital Ocean, Amazon Web Services, and Rackspace. H...
Consumers increasingly expect their electronic "things" to be connected to smart phones, tablets and the Internet. When that thing happens to be a medical device, the risks and benefits of connectivity must be carefully weighed. Once the decision is made that connecting the device is beneficial, medical device manufacturers must design their products to maintain patient safety and prevent compromised personal health information in the face of cybersecurity threats. In his session at @ThingsExpo...
All organizations that did not originate this moment have a pre-existing culture as well as legacy technology and processes that can be more or less amenable to DevOps implementation. That organizational culture is influenced by the personalities and management styles of Executive Management, the wider culture in which the organization is situated, and the personalities of key team members at all levels of the organization. This culture and entrenched interests usually throw a wrench in the work...
Detecting internal user threats in the Big Data eco-system is challenging and cumbersome. Many organizations monitor internal usage of the Big Data eco-system using a set of alerts. This is not a scalable process given the increase in the number of alerts with the accelerating growth in data volume and user base. Organizations are increasingly leveraging machine learning to monitor only those data elements that are sensitive and critical, autonomously establish monitoring policies, and to detect...
SYS-CON Events announced today that Grape Up will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct. 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Grape Up is a software company specializing in cloud native application development and professional services related to Cloud Foundry PaaS. With five expert teams that operate in various sectors of the market across the U.S. and Europe, Grape Up works with a variety of customers from emergi...