MOUNT AIRY — Surrey Bancorp, (Pink Sheets: SRYB), the holding company for Surrey Bank & Trust last week reported net income for the third quarter was up more than 150% from the same period a year ago.
For the quarter ending Sept. 30, net income totaled $2,118,976 or 51 cents per fully diluted share, compared to $842,609, or 20 cents per common share, earned during the third quarter of 2021.
“The increase in earnings results from an increase in the net interest income and the recapture of the provision for loan losses,” the bank said in a statement announcing the results.
Net income for the nine months ending Sept. 30 were also up, though not quite as dramatically. Net income for the period stood at $5,164,161, or $1.24 per share, compared to $3,923,768 or 94 cents per share, for the same period in 2021. The bank cited the same factors — an increase in net interest income and the recapture of loan loss reserves — as the reason beyond the nine-month increase.
Net interest income increased from $2,872,567 in the third quarter of 2021 to $4,396,963 in the third quarter of 2022. Interest income increased from $2,978,081 in the third quarter of 2021 to $4,510,525 in the third quarter of 2022.
“The increase is primarily due to the general increase in interest rates,” the bank’s statement said. “As a result, the overall yield on interest earning assets increased from 2.72% to 3.84% between the third quarter of 2021 and the third quarter of 2022. The cost of funds increased from 0.10% in the third quarter of 2021 to 0.11% in 2022. Interest expense increased from $105,514 in the third quarter of 2021 to $113,562 in the third quarter of 2022.”
The provision for loan losses decreased from $208,145 in the third quarter of 2021 to a provision recapture of $37,348 in 2022, a $245,493 decrease.
Net interest income for the full nine months increased from $9,535,410 in 2021 to $11,053,950 in 2022. The provision for loan losses decreased from $325,931 in 2021 to a provision recapture of $1,114,885 in 2022, a $1,440,816 decrease.
Surrey Bancorp is located at 145 North Renfro Street in Mount Airy. The bank operates full-service branch offices at 145 North Renfro Street, and 2050 Rockford Street and a limited-service branch at 1280 West Pine Street in Mount Airy. Full-service branch offices are also located at 653 South Key Street in Pilot Mountain, 393 CC Camp Road in Elkin and 1096 Main Street in North Wilkesboro, and 940 Woodland Drive in Stuart, Virginia.