Surry Business

Mount Airy-based Surrey Bancorp (OTC Bulletin Board: SRYB) announced July 26 that it earned $725,038 or $.20 per fully diluted share for the second quarter of 2007. This represents a 21 percent increase in profitability from the second quarter of 2006, when earnings were $600,144 or $.17 per fully diluted share.

Increases in net interest income, non-interest income, and a reduction in the provision for loan losses contributed to the increase in earnings. The increase in net interest income is the result of growth. The increase in non- interest income resulted primarily from an increase in servicing fees from government guaranteed loans sold and increased revenue from SB&T Insurance, a subsidiary of Surrey Bank & Trust. The reduction in the provision for loan losses is due to a reduction in net charge-offs during the second quarter of 2007, compared to the same quarter in 2006.

Total assets were $194,655,681 as of June 30, 2007, an increase of 9.3 percent from the $178,148,909 reported as of June 30, 2006. Net loans increased 9.2 percent to $156,152,095, compared to $143,038,635 at the end of the second quarter of 2006. Asset quality remained strong with delinquency levels and loan losses in line with industry averages. Loan loss reserves were $2,564,921 or 1.62 percent of total loans as of June 30, 2007. Total deposits increased to $156,364,167 at the end of the second quarter, a 10.4 percent increase from the $141,616,662 reported at the end of the second quarter of 2006.

Surrey Bancorp, headquartered at 145 N. Renfro St., is the bank holding company for Surrey Bank & Trust. The bank operates full-service branch offices at 145 N. Renfro St., 1280 W. Pine St. and 2050 Rockford St. in Mount Airy; 653 S. Key St. in Pilot Mountain; and 303 S. Main St. in Stuart, Va.

Surrey Bank & Trust is engaged in the sale of insurance through its wholly-owned subsidiary, SB&T Insurance 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 at 165 N. Renfro St. in Mount Airy.