Surrey Bancorp reported Wednesday a 12.5% increase in second-quarter net income to $1.1 million.
The Mount Airy-based bank reported diluted earnings were up 3 cents to 26 cents.
One key factor in the profit hike was adding $188,616 to its loan-loss provision, compared with adding $260,051 a year ago.
The provision offers a glimpse at how a bank expects its loan portfolio and revenue stream to perform as customers struggle to make monthly payments. It has a bottom-line effect on a bank’s profitability.
Excluding the provision, loan revenue was up 13.7% to $3.3 million.
Fee income dropped 25% to $501,064. The decrease came mainly from the loss of revenue related to the sale of insurance subsidiary SB&T Insurance, in the first quarter.
The business news you need
Get the latest local business news delivered FREE to your inbox weekly.