Surrey Bancorp (Pink Sheets: SRYB), the holding company for Surrey Bank & Trust, this week reported earnings for the second quarter of 2022 were up sharply from the same period a year ago.
Net income for the six months ending June 30 was down slightly, from $3,081,159, or 74 cents per share in 2021, to $3,045,185 or 73 per shared this year.
For the quarter ending June 30, net income totaled $1,557,682 or 37 cents per fully diluted share, compared to $1,093,784 or 26 cents per common share earned during the second quarter of 2021.
The increase in earnings results from a slight increase in the net interest income and the recapture of the provision for loan losses.
Net interest income increased from $3,270,663 in the second quarter of 2021 to $3,385,534 in the second quarter of 2022. The increase in net interest income is a combination of an increase in interest income and a reduction in interest expense. Interest income increased from $3,393,790 in the second quarter of 2021 to $3,470,518 in the second quarter of 2022. The increase is primarily due to an increase in the fed funds rate.
Interest income from deposits with banks increased from $35,336 in the second quarter of 2021 to $434,171 in 2022. Interest income and fees on loans decreased from $3,322,262 in the second quarter of 2021 to $3,008,292 in 2022. The decrease results from a reduction of loan fees recognized by the bank related to the bank’s participation in the Small Business Administration’s Paycheck Protection Program (PPP).
In the second quarter of 2021 the Bank recognized $164,444 of PPP loan fees compared to only $7,462 in the second quarter of 2022. Interest expense decreased from $123,127 in the second quarter of 2021 to $84,984 in the second quarter of 2022.
The provision for loan losses decreased from $188,616 in the second quarter of 2021 to a recapture of $414,965 in 2022, a $603,581 decrease. The 2022 recapture results from a trend in loan charge-off recoveries and a reduction in environmental factors related to the COVID 19 pandemic.
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 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.
For more information about the bank, or to see the full quarterly report, visit https://www.surreybank.com/about-us/
Source: https://www.mtairynews.com
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