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Surrey Bancorp’s quarterly earnings up 1.3 percent

October 30th, 2007 · No Comments

Surrey Bancorp, the Mount Airy-based bank holding company that owns Surrey Bank & Trust, today announced third-quarter earnings of $742,758, or $.21 per fully diluted share. The earnings are 1.3 percent higher than in the third quarter of 2006.

The higher earnings resulted from increases in net interest income and non-interest income that narrowly outpaced an increase in the provision for loan losses and higher expenses. More net interest income came from growth. The increase in non-interest income is primarily the result of an increase in servicing fees for government guaranteed loans sold by the bank and of increased revenue from the insurance and brokerage divisions of Surrey Investment Services Inc., a Surrey Bank & Trust subsidiary.

The increase in the provision for loan losses is attributable to the effects of net charge-offs in the third quarter of 2007 compared to net recoveries in the third quarter of 2006. Non-interest expenses increased primarily due to increases in FDIC insurance assessments and compliance cost associated with the Sarbanes-Oxley Act of 2002.

Total assets were $206.5 million as of Sept. 30, 2007, an increase of 14.5 percent from the $180 million a year earlier. Net loans increased 10.7 percent to $161 million compared to $145.7 million at the end of 2006’s third quarter. Asset quality remained strong with delinquency levels and loan losses in line with industry averages. Loan loss reserves were $2.62 million or 1.60 percent of total loans as of Sept. 30, 2007. Total deposits increased to $165.3 million at the end of the third quarter, a 14.4 percent increase from the end of the third quarter of 2006.

Surrey Bancorp (OTB: SRYB) has offices at Surrey Bank & Trust’s main office, 145 N. Renfro St., Mount Airy, N.C. The bank also operates full service branch offices at 1280 W. Pine St. and 2050 Rockford St. in Mount Airy; 653 S. Key St. in Pilot Mountain, N.C.; 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 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 finance company at 165 N. Renfro St. in Mount Airy.

Tags: Finance

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