Surrey Bancorp (Pink Sheets: SRYB), the holding company for Surrey Bank & Trust, recently reported earnings for the fourth quarter of 2021 and the full year.
For the quarter ending Dec. 31, net income totaled $1,179,807 or 28 cents per share, which was down from $1,498,414, or 36 cents per share earned during the fourth quarter of 2020.
The decrease in earnings results from a decrease in net interest income.
Net interest income decreased by 11% from $3,638,909 in the fourth quarter of 2020 to $3,237,515 for the same period in 2021 as net interest income yields declined. The decrease is due to the reduction of loan origination fees from the Small Business Administration’s Paycheck Protection Program (PPP). PPP origination fees totaling $184,751 were recognized in the fourth quarter of 2021 compared to $773,100 recognized in the fourth quarter of 2020. The large decrease in fee recognition was due to the winding down of PPP loans in the fourth quarter of 2021. PPP loans totaling $24,775,780 were paid off in the fourth quarter of 2020 while only $3,331,485 in PPP loans were paid off in the fourth quarter of 2021.
The provision for loan losses decreased from $125,666 in the fourth quarter of 2020 to $61,428 in 2021. Noninterest income decreased from $804,890 in the fourth quarter of 2020 to $488,331in 2021. This decrease was primarily attributable to the reduction in insurance commission due to the sale of SB&T Insurance in the first quarter of 2021. Insurance commissions in the fourth quarter of 2020 amounted to $238,179. Noninterest expenses decreased from $2,441,728 in the fourth quarter of 2020 to $2,142,849 in the fourth quarter of 2021. This decrease is attributable to salaries and employee benefits associated with SB&T Insurance.
Net income for the year rose, however. As of Dec. 31, net income for the year was $5,103,575 or $1.22 per share outstanding, compared to a $4,578,161 or $1.10 per share outstanding for the previous year. Earnings for the year are approximately 11.5% higher than for the same period in 2020. The increase in earnings results from a decrease in the provision for loan losses and a decrease in noninterest expenses.
The provision for loan losses decreased from a provision of $689,853 in 2020 to a provision of $387,359 in 2021. This decrease is due to the estimated economic impact of the pandemic lessening in 2021 as the federal government added stimulus to the economy. Noninterest expenses decreased 4.7%, from $9,196,654 in 2020, to $8,763,536 in 2021. Most of the decrease results from a reduction in salaries and benefits associated with SB&T Insurance.
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, and 2050 Rockford Street in Mount Airy 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.
Surrey Bank & Trust can be found online at www.surreybank.com.
Source: https://www.mtairynews.com
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