Surrey Bancorp Reports 2013 Earnings of $2,889,351
MOUNT AIRY, NC--(Marketwired - Feb 14, 2014) - Surrey Bancorp
(the "Company") (PINKSHEETS: SRYB), the holding company for Surrey
Bank & Trust, today reported earnings for the fourth quarter of
2013 and the full year.
For the quarter ended December 31, 2013, net income totaled
$700,849 or $0.17 per fully diluted share, compared with $976,399
or $0.23 per fully diluted common share earned during the fourth
quarter of 2012.
The decrease in quarterly earnings results from an increase in
the provision for loan losses.
The provision for loan losses increased from a recapture of
$309,080 in the fourth quarter of 2012 to a provision of $171,452
for the same period in 2013, a $480,532 difference. The recapture
was the result of significant early payoffs in loans outstanding
during the last quarter of 2012, while loans increased in the
fourth quarter of 2013.
Net interest income decreased by 1.96 percent from $2,321,194 in
the fourth quarter of 2012 to $2,275,796 for the same period in
2013, as asset yields continue to decrease in the low interest rate
environment. Noninterest income increased slightly to $838,663,
compared to $798,359 reported for the quarter ended December 31,
2012. Noninterest expenses decreased from $1,790,262 in the fourth
quarter of 2012 to $1,773,372 in the fourth quarter of 2013. This
decrease is attributable to a reduction in expenses related to
foreclosed assets.
For the year ended December 31, 2013, the Company reported net
income of $2,889,351, or $0.69 per fully diluted common share. This
represents a 3.77 percent increase in profitability from year-end
2012, when the Company reported earnings of $2,782,880, or $0.67
per fully diluted common share. This increase was attributable to a
reduction in the provision for loan losses and an increase in
noninterest income, which more than offset the reduction in net
interest income. Net interest income decreased 2.69 percent from
$9,283,410 for the 2012 year-end to $9,033,671 at year-end 2013, as
asset yields declined. The provision for loan losses decreased from
$471,292 in 2012 to $319,565 in 2013 due to increased loan
guarantee enhancements. Approximately $60,864,000 of the total
loans outstanding at December 31, 2013, carry government guarantees
which reduce the Bank's credit exposure. The guaranteed portion of
these loans amounts to approximately $47,716,000, or 26.0 percent
of total loans outstanding. This compares to guarantees of
$43,118,000, or 24.4 percent of loans outstanding at December 31,
2012. Noninterest income increased 11.2 percent to $2,906,844
compared to $2,613,627 reported for the year ended December 31,
2012 as income from the sale of government guaranteed loans and
subsidiary insurance commission revenue increased. Noninterest
expenses increased modestly, from $6,921,581 in 2012, $6,971,932 in
2013, or 0.73 percent.
Loan loss reserves were $3,375,350 or 1.84 percent of total
loans as of December 31, 2013. Non-performing assets were 1.58
percent of total assets at December 31, 2013, compared to 1.84
percent on that date in 2012. At December 31, 2013, the allowance
for loan loss reserves equals 86.88 percent of impaired and
non-performing assets, net of government guarantees compared to
76.76 percent at the end of 2012.
Total assets were $240,918,977 as of December 31, 2013, an
increase of 4.79 percent from $229,912,432 reported as of December
31, 2012. Total deposits were $195,800,961 at year-end 2013, an
increase of 4.25 percent from the $187,823,037 reported at the end
of year of 2012. Net loans increased 3.65 percent to $179,908,825,
compared to $173,577,565 as of December 31, 2012.
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. The Bank has opened a Loan Production Office at 1328
North Bridge Street in Elkin, North Carolina.
Surrey Bank & Trust is engaged in the sale of insurance
through its wholly owned subsidiary, SB&T Insurance, located at
199 North Renfro Street in Mount Airy. The Bank also owns Surrey
Investment Services, Inc., which provides full-service brokerage
and investment advice through an association with LPL Financial,
and Freedom Finance, LLC, a sales finance company 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) |
|
|
|
|
|
|
|
|
|
|
December 31, 2013 |
|
|
December 31, 2012 |
|
|
|
(unaudited) |
|
|
|
|
Total
assets |
|
$ |
240,919 |
|
|
$ |
229,912 |
|
Total
loans |
|
|
183,284 |
|
|
|
176,981 |
|
Investments |
|
|
40,890 |
|
|
|
37,318 |
|
Deposits |
|
|
195,801 |
|
|
|
187,823 |
|
Borrowed funds |
|
|
7,750 |
|
|
|
7,750 |
|
Stockholders' equity |
|
|
34,218 |
|
|
|
32,237 |
|
Non-performing assets to total assets |
|
|
1.58 |
% |
|
|
1.84 |
% |
Loans
past due more than 90 days to total loans |
|
|
0.02 |
% |
|
|
0.39 |
% |
Allowance for loan losses to total loans |
|
|
1.84 |
% |
|
|
1.93 |
% |
Book
value per common share |
|
$ |
8.57 |
|
|
$ |
8.01 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SURREY
BANCORP |
CONSOLIDATED
FINANCIAL HIGHLIGHTS |
(Dollars in
thousands, except per share amounts) |
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended December 31, |
|
|
For the Twelve Months Ended December 31, |
|
|
|
2013 |
|
|
2012 |
|
|
2013 |
|
|
2012 |
|
Interest income |
|
$ |
2,634 |
|
|
$ |
2,717 |
|
|
$ |
10,539 |
|
|
$ |
10,954 |
|
Interest expense |
|
|
358 |
|
|
|
396 |
|
|
|
1,505 |
|
|
|
1,671 |
|
Net
interest income |
|
|
2,276 |
|
|
|
2,321 |
|
|
|
9,034 |
|
|
|
9,283 |
|
Provision for loan losses |
|
|
171 |
|
|
|
(309 |
) |
|
|
320 |
|
|
|
471 |
|
Net
interest income after provision for loan losses |
|
|
2,105 |
|
|
|
2,630 |
|
|
|
8,714 |
|
|
|
8,812 |
|
Noninterest income |
|
|
838 |
|
|
|
798 |
|
|
|
2,907 |
|
|
|
2,614 |
|
Noninterest expense |
|
|
1,773 |
|
|
|
1,790 |
|
|
|
6,972 |
|
|
|
6,922 |
|
Net
income before taxes |
|
|
1,170 |
|
|
|
1,638 |
|
|
|
4,649 |
|
|
|
4,504 |
|
Provision for income taxes |
|
|
469 |
|
|
|
662 |
|
|
|
1,760 |
|
|
|
1,721 |
|
Net
income |
|
|
701 |
|
|
|
976 |
|
|
|
2,889 |
|
|
|
2,783 |
|
Preferred stock dividend declared |
|
|
46 |
|
|
|
46 |
|
|
|
183 |
|
|
|
183 |
|
Net
income available to common shareholders |
|
$ |
655 |
|
|
$ |
930 |
|
|
$ |
2,706 |
|
|
$ |
2,600 |
|
Basic
net income per share |
|
$ |
0.18 |
|
|
$ |
0.26 |
|
|
$ |
0.76 |
|
|
$ |
0.73 |
|
Diluted net income per share |
|
$ |
0.17 |
|
|
$ |
0.23 |
|
|
$ |
0.69 |
|
|
$ |
0.67 |
|
Return on average total assets (1) |
|
|
1.15 |
% |
|
|
1.69 |
% |
|
|
1.22 |
% |
|
|
1.23 |
% |
Return on average total equity (1) |
|
|
8.10 |
% |
|
|
12.04 |
% |
|
|
8.59 |
% |
|
|
8.86 |
% |
Yield
on average interest earning assets |
|
|
4.64 |
% |
|
|
5.06 |
% |
|
|
4.78 |
% |
|
|
5.24 |
% |
Cost
of funds |
|
|
0.69 |
% |
|
|
0.81 |
% |
|
|
0.75 |
% |
|
|
0.87 |
% |
Net
yield on average interest earning assets |
|
|
4.01 |
% |
|
|
4.32 |
% |
|
|
4.10 |
% |
|
|
4.44 |
% |
Overhead efficiency ratio |
|
|
56.94 |
% |
|
|
57.39 |
% |
|
|
58.39 |
% |
|
|
58.18 |
% |
Net
charge-offs/average loans |
|
|
0.05 |
% |
|
|
0.01 |
% |
|
|
0.19 |
% |
|
|
0.53 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Annualized for all periods presented.
For additional information, please contact Ted Ashby CEO Mark
Towe CFO (336) 783-3900
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