Surrey Bancorp (Pink Sheets: SRYB), the holding company for Surrey Bank & Trust, last week reported earnings for the second quarter of 2015 were slightly lower than earnings for the same period in 2014, though up slightly for the first six months of the year when compared to 2014.
For the quarter ending June 30, net income totaled $739,936 or 18 cents per share, compared to $767,779 or 18 cents per common share earned during the second quarter of 2014.
Net income for the six months ended June 30, was $1,468,370 or 35 cents per share, compared to $1,444,179 or 35 cents per share in 2014.
Earnings for the three months ending June 30 are approximately 3.6 percent lower than for the same period in 2014. The decrease in earnings results from a decrease in gains on the sale of government guaranteed loans, according to the company.
“A gain of $127,362 was recognized in the quarter ended June 30, 2014. No such gains occurred in the second quarter of 2015,” the bank holding company said in a written statement.
Net interest income increased from $2,335,307 in the second quarter of 2014 to $2,437,301 in 2015.
“Most of this increase is due to loan growth. Average loans outstanding increased 4.3 percent from the second quarter of 2014 to the second quarter of 2015, or approximately $7,851,000,” the bank said.
The net interest margin increased slightly from 4.09 percent to 4.10 percent from 2014 to 2015 due to lower deposit costs. Asset yields dropped from 4.69 percent in 2014 to 4.59 percent in 2015 but the reduction was offset by a reduction in the cost of funds. The cost of funds decreased from 0.66 percent in the second quarter of 2014 to 0.54 percent in the second quarter of 2015. The provision for loan loss reserves increased from $55,787 in the second quarter of 2014 to a provision of $70,298 in 2015. The increase in the provision is partially due to an increase in the historical loss component of the allowance for loan losses.
Loan loss reserves were $3,686,569 or 1.91 percent of total loans as of June 30, 2015. Non-performing assets were 0.78 percent of total assets at June 30, 2015, compared to 1.28 percent on that date in 2014. At June 30, 2015, the allowance for loan loss reserves equals 102 percent of impaired and non-performing assets, net of government guarantees.
Total assets were $253,079,571 as of June 30, 2015, an increase of 1.2 percent from $250,056,330 reported as of June 30, 2014. Total deposits were $207,433,069 at quarter-end 2015, a 2.0 percent increase from the $203,356,899 reported at the end of the second quarter of 2014. Net loans increased to $189,881,404, or 5.0 percent, compared to $180,910,373, at June 30, 2014.
Surrey Bancorp is the bank holding company for Surrey Bank & Trust and is located at 145 North Renfro Street, Mount Airy. 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, and 940 Woodland Drive in Stuart, Virginia. The bank has loan production offices at 1328 North Bridge Street in Elkin and 717 Main Street in North Wilkesboro.