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Surrey Bancorp Reports First Quarter Net Income of $1,056,012

Written by Customer Service on . Posted in Public Companies.

MOUNT AIRY, N.C., April 24, 2020 (GLOBE NEWSWIRE) — Surrey Bancorp (the “Company”) (Pink Sheets: SRYB), the holding company for Surrey Bank & Trust (the “Bank”), today reported earnings for the first quarter of 2020.
For the quarter ended March 31, 2020, net income totaled $1,056,012 or $0.25 per fully diluted common share, compared with $941,764 or $0.23 per fully diluted common share earned during the first quarter of 2019.Net interest income decreased from $3,246,223 in the first quarter of 2019 to $3,192,503 in 2020. The net interest margin decreased from 4.62 percent in the first quarter of 2019 to 4.19 percent in the first quarter of 2020 due to a general decrease in interest rates and a change in earning asset mix. Higher yielding loans made up 81.8 percent of average interest earning assets in the first quarter of 2019 as opposed to 77.8 percent in the first quarter of 2020. Loan yields also decreased from 5.60 percent in 2019 to 5.49 percent in 2020. Income from investments decreased due to the general decrease in interest rates. Investment interest income decreased from $324,516 in the first quarter of 2019 to $263,637 in 2020, an 18.8 percent decrease. The cost of funds increased slightly from 0.47 percent in the first quarter of 2019 to 0.48 percent in the first quarter of 2020. The increase in deposit cost was negated somewhat due to noninterest-bearing deposits making up a higher percentage of average deposits in 2020.The provision for loan losses increased from $62,988 in the first quarter of 2019 to $108,063 in 2020. This change is due to an increase in loans and credit exposure resulting from a reduction in guaranteed loans. Total guaranteed loans at March 31, 2020 decreased $1,088,264 compared to total guaranteed loans at March 31, 2019. The increase in net credit exposure amounted to $8,436,855 in the first quarter of 2020 compared to $4,762,421 in the first quarter of 2019. The gross increase in the provision was offset by a decrease in specific reserves from March 31, 2019 to March 31, 2020. Specific reserves decreased from $389,549 at the end of the first quarter of 2019 to $55,914 at the end of the first quarter of 2020.Noninterest income increased from $629,447 in the first quarter of 2019 to $700,832 during the same period in 2020. The increase is due to increases in deposit and other services charges and insurance commissions. Noninterest expenses increased 1.7 percent from $2,387,645 in the first quarter of 2019, to $2,429,160 in 2020. This increase was primarily due to salaries and benefits.The allowance for loan loss reserves was $4,281,477 or 1.76 percent of total loans as of March 31, 2020. Non-performing assets were 0.13 percent of total assets at March 31, 2020, compared to 1.41 percent on that date in 2019. At March 31, 2020, the allowance equals 369 percent of impaired and non-performing assets, net of government guarantees.Total assets as of March 31, 2020 were $341,786,270, an increase of 9.6 percent from $311,983,430 reported as of March 31, 2019. Total deposits were $288,142,832 at quarter-end 2020, a 10.1 percent increase from the $261,667,363 reported at the end of the first quarter of 2019. Net loans increased to $239,531,513 at the end of the first quarter of 2020, compared to $232,091,275, as of March 31, 2019, a 3.2 percent increase.About Surrey BancorpSurrey 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, 393 CC Camp Road in Elkin and 1096 Main Street in North Wilkesboro, North Carolina and 940 Woodland Drive in Stuart, Virginia.Surrey Bank & Trust is engaged in the sale of insurance through its wholly owned subsidiary Surrey Investment Services, Inc. The insurance agency, dba SB&T Insurance, is located at 199 North Renfro Street in Mount Airy.Surrey Bank & Trust can be found online at www.surreybank.com.

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