Surrey Bancorp, the holding company for Surrey Bank & Trust, today reported earnings for the fourth quarter of 2016 were up roughly 12 percent over the same quarter the previous year, and earnings for all of 2017 were up more than 17 percent.
For the quarter ended Dec. 31, net income totaled $895,499 or 21 cents per fully diluted share, compared with $794,153 or 19 cents per common share earned during the fourth quarter of 2015.
For the year the company reported net income of $3,596,628, or 86 per share. “This represents a 17.6 percent increase in profitability from year-end 2015, when the company reported earnings of $3,061,110, or $0.73 per fully diluted common share,” the company said in a written statement announcing the income.
The increase in quarterly earnings results from an increase in net interest income and a decrease in the provision for
loan losses, according to the firm.
“Net interest income increased by 10.5 percent from $2,595,079 in the fourth quarter of 2015 to $2,866,692 for the
same period in 2016 due to loan growth. The net yield on average interest-earning assets improved increasing from
4.09 percent in the fourth quarter of 2015 to 4.54 percent in the fourth quarter of 2016. Noninterest income
decreased 7.3 percent to $742,463, compared to $800,542 reported for the quarter ended Dec. 31.”
The decrease results from a reduction in service charges on deposit accounts and other service charges and fees.
The provision for loan losses decreased from $156,728 in the fourth quarter of 2015 to a provision of $64,752 for the same period in 2016.
“This in part results from loan reductions in the fourth quarter of 2016,” the company said. “Total loans decreased $2,490,747 in the fourth quarter of 2016 compared to an increase of $2,808,324 in the fourth quarter of 2015. Additionally, the Bank closed its finance subsidiary, Freedom Finance, LLC, in July of 2016. In the fourth quarter of 2015, Freedom Finance, LLC had a provision for loan losses of $35,686.
For the year, the company said the 17.6 increase in net income “was attributable to increases in net interest income and noninterest income. Net interest income increased 10.5 percent from $9,968,598 for the year ended 2015 to $11,018,850 at year-end 2016. This increase was due to loan growth and stable net asset yields.”
Total assets were $277,102,385 as of Dec. 3 an increase of 7.5 percent from $257,776,555 reported as of Dec. 31, 2015. Total deposits were $230,261,545 at year-end 2016, an increase of 8.3 percent from the $212,687,961 reported at the end of year of 2015. Net loans increased 5.5 percent to $208,690,443, compared to $197,904,895 as of Dec. 31, 2015.