Surrey Bancorp (Pink Sheets: SRYB), the holding company for Surrey Bank & Trust, on Friday reported net income for the first quarter of 2020 were up nearly 12%.
For the quarter which ended March 31 net income totaled $1,056,012 or 25 cents per fully diluted common share, compared with $941,764 or 23 cents per fully diluted common share earned during the first quarter of 2019, according to figures released by the company.
The increase in earnings primarily resulted from a decrease in the provision for income taxes. Income taxes decreased from $483,273 in the first quarter of 2019 to $300,100 in the first quarter of 2020. The decrease is due to the effects of a reduction in deferred tax assets in the first quarter of 2019 which increased the income tax provision.
Net interest income decreased from $3,246,223 in the first quarter of 2019 to $3,192,503 in 2020. The net interest margin decreased from 4.62% in the first quarter of 2019 to 4.19% in the first quarter of 2020 due to a general decrease in interest rates and a change in earning asset mix. Higher yielding loans made up 81.8% of average interest earning assets in the first quarter of 2019 as opposed to 77.8% in the first quarter of 2020. Loan yields also decreased from 5.60% in 2019 to 5.49% in 2020.
Total assets as of March 31, 2020 were $341,786,270, an increase of 9.6% from $311,983,430 reported as of March 31, 2019. Total deposits were $288,142,832 at quarter-end 2020, a 10.1% increase from the $261,667,363 reported at the end of the first quarter of 2019. Net loans increased to $239,531,513 at the end of the first quarter of 2020, compared to $232,091,275, as of March 31, 2019, a 3.2% increase.
The full first quarter earnings statement can be found online at https://www.surreybank.com/globalassets/new-website-pdfs/2020-press-releases/press-release-1st-quarter-2020.pdf
Source: https://www.mtairynews.com
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