|By Marketwired .||
|July 25, 2014 09:39 AM EDT||
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
Historically, some banking activities such as trading have been relying heavily on analytics and cutting edge algorithmic tools. The coming of age of powerful data analytics solutions combined with the development of intelligent algorithms have created new opportunities for financial institutions. In his session at 20th Cloud Expo, Sebastien Meunier, Head of Digital for North America at Chappuis Halder & Co., will discuss how these tools can be leveraged to develop a lasting competitive advanta...
Mar. 25, 2017 07:45 AM EDT Reads: 2,516
SYS-CON Events announced today that Loom Systems will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Founded in 2015, Loom Systems delivers an advanced AI solution to predict and prevent problems in the digital business. Loom stands alone in the industry as an AI analysis platform requiring no prior math knowledge from operators, leveraging the existing staff to succeed in the digital era. With offices in S...
Mar. 25, 2017 06:45 AM EDT Reads: 996
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 20th Cloud Expo, which will take place on June 6-8, 2017 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 add...
Mar. 25, 2017 06:45 AM EDT Reads: 679
SYS-CON Events announced today that HTBase will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. HTBase (Gartner 2016 Cool Vendor) delivers a Composable IT infrastructure solution architected for agility and increased efficiency. It turns compute, storage, and fabric into fluid pools of resources that are easily composed and re-composed to meet each application’s needs. With HTBase, companies can quickly prov...
Mar. 25, 2017 06:45 AM EDT Reads: 2,660
SYS-CON Events announced today that CA Technologies has been named “Platinum Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business – from apparel to energy – is being rewritten by software. From ...
Mar. 25, 2017 06:30 AM EDT Reads: 1,464
What if you could build a web application that could support true web-scale traffic without having to ever provision or manage a single server? Sounds magical, and it is! In his session at 20th Cloud Expo, Chris Munns, Senior Developer Advocate for Serverless Applications at Amazon Web Services, will show how to build a serverless website that scales automatically using services like AWS Lambda, Amazon API Gateway, and Amazon S3. We will review several frameworks that can help you build serverle...
Mar. 25, 2017 06:15 AM EDT Reads: 1,583
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
Mar. 25, 2017 05:30 AM EDT Reads: 1,343
Culture is the most important ingredient of DevOps. The challenge for most organizations is defining and communicating a vision of beneficial DevOps culture for their organizations, and then facilitating the changes needed to achieve that. Often this comes down to an ability to provide true leadership. As a CIO, are your direct reports IT managers or are they IT leaders? The hard truth is that many IT managers have risen through the ranks based on their technical skills, not their leadership abi...
Mar. 25, 2017 05:00 AM EDT Reads: 10,829
After more than five years of DevOps, definitions are evolving, boundaries are expanding, ‘unicorns’ are no longer rare, enterprises are on board, and pundits are moving on. Can we now look at an evolution of DevOps? Should we? Is the foundation of DevOps ‘done’, or is there still too much left to do? What is mature, and what is still missing? What does the next 5 years of DevOps look like? In this Power Panel at DevOps Summit, moderated by DevOps Summit Conference Chair Andi Mann, panelists l...
Mar. 25, 2017 05:00 AM EDT Reads: 9,623
The essence of cloud computing is that all consumable IT resources are delivered as services. In his session at 15th Cloud Expo, Yung Chou, Technology Evangelist at Microsoft, demonstrated the concepts and implementations of two important cloud computing deliveries: Infrastructure as a Service (IaaS) and Platform as a Service (PaaS). He discussed from business and technical viewpoints what exactly they are, why we care, how they are different and in what ways, and the strategies for IT to transi...
Mar. 25, 2017 05:00 AM EDT Reads: 5,930
Web Real-Time Communication APIs have quickly revolutionized what browsers are capable of. In addition to video and audio streams, we can now bi-directionally send arbitrary data over WebRTC's PeerConnection Data Channels. With the advent of Progressive Web Apps and new hardware APIs such as WebBluetooh and WebUSB, we can finally enable users to stitch together the Internet of Things directly from their browsers while communicating privately and securely in a decentralized way.
Mar. 25, 2017 03:00 AM EDT Reads: 5,666
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...
Mar. 25, 2017 02:00 AM EDT Reads: 2,792
Keeping pace with advancements in software delivery processes and tooling is taxing even for the most proficient organizations. Point tools, platforms, open source and the increasing adoption of private and public cloud services requires strong engineering rigor - all in the face of developer demands to use the tools of choice. As Agile has settled in as a mainstream practice, now DevOps has emerged as the next wave to improve software delivery speed and output. To make DevOps work, organization...
Mar. 25, 2017 01:45 AM EDT Reads: 1,441
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm.
Mar. 25, 2017 12:15 AM EDT Reads: 1,590
What sort of WebRTC based applications can we expect to see over the next year and beyond? One way to predict development trends is to see what sorts of applications startups are building. In his session at @ThingsExpo, Arin Sime, founder of WebRTC.ventures, will discuss the current and likely future trends in WebRTC application development based on real requests for custom applications from real customers, as well as other public sources of information,
Mar. 25, 2017 12:00 AM EDT Reads: 512