First Posted: 4/28/2009
Surrey Bancorp, the holding company for Surrey Bank & Trust (the Bank) announced earlier this week its first quarter income had more than doubled from the same period a year ago.
For the quarter ending March 31, net income was $985,668 or 27 cents per fully diluted share, compared with $403,885, or 11 cents per fully diluted common share earned during the first quarter of 2008.
The increase in net income was attributable to earnings in the banks sales finance subsidiary, which recorded tax-exempt life insurance proceeds of $1 million in the first quarter of 2009.
Excluding these proceeds, the company incurred a net loss of $14,332 which was due to a significant increase in the provision for loan losses. The provision, increased primarily due to reserves placed on impaired loans, totaled $754,716 for the first quarter of 2009, compared to $141,737 in the first quarter of 2008. Loan loss reserves were $4,005,207 or 2.26 percent of total loans as of March 31.
Non-performing assets were 0.29 percent of total assets at March 31, compared to 0.17 percent on that date in 2008. As of March 31 the allowance for loan loss reserves equals 166 percent of impaired and non-performing assets, net of government guarantees.
The increase in reserves was a reflection of the current difficult economic environment and the banks conservative response to problem loans, said Ted Ashby, president and chief executive officer..
Net interest income decreased 3.5 percent from $1,787,829 in the first quarter of 2008 to $1,724,834 in 2009. Ashby stated, the net interest margin stabilized and showed improvement late in the first quarter of 2009, as deposits cost declined from the artificially high levels we experienced in 2008.
Non-interest income increased 178 percent to $1,574,767, from the $567,387 reported as of March 31, 2008, primarily due to the proceeds from life insurance. Non-interest expenses increased to $1,629,281 which represents a 1 percent increase from the $1,612,481 reported at the end of the first quarter of 2008.
Total assets were $207,214,651 as of March 31, an increase of 2.2 percent from $202,842,892 reported as of March 31, 2008. Total deposits were $165,479,688 at quarter-end 2009, a 1 percent increase from the $163,916,840 reported at the end of the first quarter of 2009.Net loans increased 3.3 percent to $173,403,182, compared to $167,904,198 at March 31, 2008.
Surrey Bancorp is located 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.
Surrey Bank & Trust is engaged in the sale of insurance through its wholly owned subsidiary, SB&T Insurance, located at 199 N. Renfro St. in Mount Airy. The bank also owns Surrey Investment Services Inc., which provides full-service brokerage and investment advice through an association with UVest Financial Services, and Freedom Finance LLC, a sales finance company located at 165 North Renfro Street in Mount Airy.