Surrey Bancorp reports slight growth in quarterly income


First Posted: 11/3/2009

Surrey Bancorp, the holding company for Surrey Bank & Trust, this week reported earnings for the third quarter of 2009 were up slightly over the same period a year ago.
For the quarter which ended Sept. 30, net income totaled $527,551, or 14 cents per fully diluted share, compared with $456,726, or 13 cents per fully diluted common share, during the third quarter of 2008.
The increase in earnings results from an increase in net interest income, according to the company. Net interest income increased 10.8 percent from $1,796,823 in the third quarter of 2008 to $1,990,519 for the same period in 2009. The continued reduction of deposit costs during the third quarter was largely responsible for the improvement in the margin.
The provision for loan losses increased from $161,791 in the third quarter of 2008 to $261,001 for the same period in 2009. The increase in the loan loss provision results from a continued weakness in the economy which necessitated an increase in reserves associated with impaired loans. Non-interest income remained relatively unchanged, decreasing 0.3 percent to $591,083, compared to $592,490 reported for the quarter ending Sept. 30.
Non-interest expenses decreased slightly from $1,536,756 in the third quarter of 2008, to $1,528,005 in the third quarter of 2009, or 0.6 percent. This decrease is due to small decreases in salaries, employee benefits, and equipment expenses.
Loan loss reserves were $4,101,870 or 2.28 percent of total loans as of Sept. 30. Non-performing assets were 0.40 percent of total assets at Sept. 30, compared to 0.28 percent on that date in 2008. At Sept. 30 the allowance for loan loss reserves equals 118 percent of impaired and non-performing assets, net of government guarantees.
Total assets were $213,182,780 at the end of the quarter, an increase of 3.7 percent from $205,527,349 reported on the same date a year ago. Total deposits were $169,079,189 at quarter-end 2009, a 1.5 percent increase from the $166,528,950 reported at the end of the third quarter of 2008. Net loans increased 2.8 percent to $175,727,802, compared to $170,883,912 in 2008.
Net income for the nine months ended Sept. 30, was $1,929,370, or 51 cents per share, compared to $1,295,869, or 36 per share, for the same period in 2008.
Surrey Bancorp is at 145 N. Renfro St., Mount Airy. The bank operates full service branch offices at 145 N. Renfro St., 1280 W. Pine St. and 2050 Rockford St. in Mount Airy. Full-service branch offices are also located at 653 S. Key St. in Pilot Mountain, and 940 Woodland Drive in Stuart, Va.

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