|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
One of the hottest areas in cloud right now is DRaaS and related offerings. In his session at 16th Cloud Expo, Dale Levesque, Disaster Recovery Product Manager with Windstream's Cloud and Data Center Marketing team, will discuss the benefits of the cloud model, which far outweigh the traditional approach, and how enterprises need to ensure that their needs are properly being met.
Jul. 30, 2015 07:00 AM EDT Reads: 1,671
The speed of software changes in growing and large scale rapid-paced DevOps environments presents a challenge for continuous testing. Many organizations struggle to get this right. Practices that work for small scale continuous testing may not be sufficient as the requirements grow. In his session at DevOps Summit, Marc Hornbeek, Sr. Solutions Architect of DevOps continuous test solutions at Spirent Communications, explained the best practices of continuous testing at high scale, which is rele...
Jul. 29, 2015 11:45 PM EDT Reads: 1,367
"We got started as search consultants. On the services side of the business we have help organizations save time and save money when they hit issues that everyone more or less hits when their data grows," noted Otis Gospodnetić, Founder of Sematext, in this SYS-CON.tv interview at @DevOpsSummit, held June 9-11, 2015, at the Javits Center in New York City.
Jul. 29, 2015 11:45 PM EDT Reads: 1,022
"We have been in business for 21 years and have been building many enterprise solutions, all IT plumbing - server, storage, interconnects," stated Alex Gorbachev, President of Intelligent Systems Services, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
Jul. 29, 2015 10:45 PM EDT Reads: 1,027
In a recent research, analyst firm IDC found that the average cost of a critical application failure is $500,000 to $1 million per hour and the average total cost of unplanned application downtime is $1.25 billion to $2.5 billion per year for Fortune 1000 companies. In addition to the findings on the cost of the downtime, the research also highlighted best practices for development, testing, application support, infrastructure, and operations teams.
Jul. 29, 2015 05:30 PM EDT
"We specialize in testing. DevOps is all about continuous delivery and accelerating the delivery pipeline and there is no continuous delivery without testing," noted Marc Hornbeek, Sr. Solutions Architect at Spirent Communications, in this SYS-CON.tv interview at @DevOpsSummit, held June 9-11, 2015, at the Javits Center in New York City.
Jul. 29, 2015 05:15 PM EDT Reads: 363
How do you securely enable access to your applications in AWS without exposing any attack surfaces? The answer is usually very complicated because application environments morph over time in response to growing requirements from your employee base, your partners and your customers. In his session at @DevOpsSummit, Haseeb Budhani, CEO and Co-founder of Soha, shared five common approaches that DevOps teams follow to secure access to applications deployed in AWS, Azure, etc., and the friction an...
Jul. 29, 2015 04:30 PM EDT Reads: 501
"Alert Logic is a managed security service provider that basically deploys technologies, but we support those technologies with the people and process behind it," stated Stephen Coty, Chief Security Evangelist at Alert Logic, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
Jul. 29, 2015 04:15 PM EDT Reads: 328
Digital Transformation is the ultimate goal of cloud computing and related initiatives. The phrase is certainly not a precise one, and as subject to hand-waving and distortion as any high-falutin' terminology in the world of information technology. Yet it is an excellent choice of words to describe what enterprise IT—and by extension, organizations in general—should be working to achieve. Digital Transformation means: handling all the data types being found and created in the organizat...
Jul. 29, 2015 04:00 PM EDT Reads: 1,070
The Internet of Everything (IoE) brings together people, process, data and things to make networked connections more relevant and valuable than ever before – transforming information into knowledge and knowledge into wisdom. IoE creates new capabilities, richer experiences, and unprecedented opportunities to improve business and government operations, decision making and mission support capabilities.
Jul. 29, 2015 03:15 PM EDT Reads: 242
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 tran...
Jul. 29, 2015 03:15 PM EDT Reads: 396
The Software Defined Data Center (SDDC), which enables organizations to seamlessly run in a hybrid cloud model (public + private cloud), is here to stay. IDC estimates that the software-defined networking market will be valued at $3.7 billion by 2016. Security is a key component and benefit of the SDDC, and offers an opportunity to build security 'from the ground up' and weave it into the environment from day one. In his session at 16th Cloud Expo, Reuven Harrison, CTO and Co-Founder of Tufin,...
Jul. 29, 2015 03:00 PM EDT Reads: 468
The Internet of Things is not only adding billions of sensors and billions of terabytes to the Internet. It is also forcing a fundamental change in the way we envision Information Technology. For the first time, more data is being created by devices at the edge of the Internet rather than from centralized systems. What does this mean for today's IT professional? In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists addressed this very serious issue of pro...
Jul. 29, 2015 03:00 PM EDT Reads: 1,258
With SaaS use rampant across organizations, how can IT departments track company data and maintain security? More and more departments are commissioning their own solutions and bypassing IT. A cloud environment is amorphous and powerful, allowing you to set up solutions for all of your user needs: document sharing and collaboration, mobile access, e-mail, even industry-specific applications. In his session at 16th Cloud Expo, Shawn Mills, President and a founder of Green House Data, discussed h...
Jul. 29, 2015 02:30 PM EDT Reads: 326
Container technology is sending shock waves through the world of cloud computing. Heralded as the 'next big thing,' containers provide software owners a consistent way to package their software and dependencies while infrastructure operators benefit from a standard way to deploy and run them. Containers present new challenges for tracking usage due to their dynamic nature. They can also be deployed to bare metal, virtual machines and various cloud platforms. How do software owners track the usag...
Jul. 29, 2015 02:30 PM EDT Reads: 111