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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Surrey Bancorp Inc (PK) | USOTC:SRYB | OTCMarkets | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 16.70 | 16.50 | 17.37 | 0.00 | 01:00:00 |
☒
|
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
|
☐
|
TRANSITION REPORT UNDER SECTION 13 OR 15(b) OF THE
SECURITIES EXCHANGE ACT OF 1934
|
NORTH CAROLINA
|
59-3772016
|
|
(State or Other Jurisdiction of incorporation or organization)
|
(IRS Employer Identification No.)
|
Large accelerated filer ☐
|
Accelerated filer ☐
|
Non-accelerated filer ☐
|
Smaller reporting company ☒
|
ITEM 1.
|
BUSINESS
|
Loans and Commitments
December 31,
|
||||||||
Industry
|
2014
|
2013
|
||||||
Real Estate
|
$
|
28,172,000
|
$
|
20,635,000
|
||||
Fabricated Metal Products Manufacturing
|
11,380,000
|
10,622,000
|
||||||
Accommodations
|
10,059,000
|
10,401,000
|
||||||
Heavy and Civil Engineering Construction
|
9,306,000
|
7,007,000
|
||||||
Truck Transportation
|
7,542,000
|
6,352,000
|
||||||
Repair and Maintenance Industries
|
7,450,000
|
6,839,000
|
||||||
Nursing and Residential Care Facilities
|
6,538,000
|
6,567,000
|
||||||
Utilities
|
6,037,000
|
7,786,000
|
||||||
Motion Picture and Sound Recording Industries
|
5,942,000
|
6,358,000
|
||||||
Amusement, Gambling, and Recreation Industries
|
5,576,000
|
5,732,000
|
||||||
Construction of Buildings
|
5,505,000
|
4,570,000
|
||||||
Miscellaneous Manufacturing
|
4,632,000
|
4,556,000
|
||||||
Wood Product Manufacturing
|
4,485,000
|
4,235,000
|
||||||
Motor Vehicle and Parts Dealers
|
4,120,000
|
4,190,000
|
||||||
Specialty Trade Contractors
|
3,416,000
|
3,159,000
|
||||||
Personal and Laundry Services
|
2,455,000
|
2,518,000
|
||||||
Crop Farming
|
2,254,000
|
1,831,000
|
||||||
Educational Services
|
2,153,000
|
861,000
|
||||||
Nonmetallic Mineral Product Manufacturing
|
2,137,000
|
2,461,000
|
||||||
Building Material and Garden Equipment Dealers
|
2,080,000
|
1,250,000
|
||||||
Offices of Physicians
|
1,977,000
|
2,254,000
|
||||||
Gasoline Stations
|
1,925,000
|
1,712,000
|
||||||
Animal Production
|
1,805,000
|
1,942,000
|
||||||
Food Service and Drinking Places
|
1,587,000
|
1,918,000
|
||||||
Religious, Grant Making, Civic Organizations
|
1,511,000
|
1,664,000
|
· | Reduces the assessment rate paid by a bank by up to 0.05% based on the amount of unsecured debt held by the institution; and |
· | Increases a bank’s assessment if it is already considered risky and brokered deposits make up more than 10% of the institution’s domestic deposits. |
·
|
Increased Capital Standards and Enhanced Supervision. In July 2014, the Board of Governors of the Federal Reserve System announced its approval of a final rule to implement the Basel III regulatory capital reforms, among other changes required by the Dodd-Frank Wall Street Reform and Consumer Protection Act. The rule requires banking organizations to hold more and higher quality capital to act as a financial cushion to absorb losses, taking into account the impact of risk. The rule includes a new minimum ratio of common equity Tier 1 capital to risk-weighted assets of 4.5% as well as a common equity Tier 1 capital conservation buffer of 2.5% of risk-weighted assets. The rule also raises the minimum ratio of Tier 1 capital to risk-weighted assets from 4% to 6% and includes a minimum leverage ratio of 4% for all banking institutions. In terms of quality of capital, the rule emphasizes common equity Tier 1 capital and implements strict eligibility criteria for regulatory capital instruments. It also improves the methodology for calculating risk-weighted assets to enhance risk sensitivity. The phase-in for smaller banking organizations, such as the Company and the Bank, will not begin until January 2015, while the phase-in period for larger banks starts in January 2014. Increases in capital requirements could result in a material impact on the Company and the Bank. |
·
|
The Consumer Financial Protection Bureau (“Bureau”). The Dodd-Frank Act created the Bureau within the Federal Reserve. The Bureau is tasked with establishing and implementing rules and regulations under certain federal consumer protection laws with respect to the conduct of providers of certain consumer financial products and services. The Bureau has rulemaking authority over many of the statutes governing products and services offered to bank consumers, and is expected to standardize certain consumer products and to require banks to provide expanded access to account, transaction and fee information. In addition, the Dodd-Frank Act permits states to adopt consumer protection laws and regulations that are more stringent than those regulations promulgated by the Bureau and state attorneys general are permitted to enforce consumer protection rules adopted by the Bureau against state-chartered institutions. |
·
|
Deposit Insurance. The Dodd-Frank Act makes permanent the $250,000 deposit insurance limit for insured deposits. Amendments to the Federal Deposit Insurance Act also revise the assessment base against which an insured depository institution’s deposit insurance premiums paid to the Deposit Insurance Fund (“DIF”) will be calculated. Under the amendments, the assessment base will no longer be the institution’s deposit base, but rather its average consolidated total assets less its average tangible equity during the assessment period. Additionally, the Dodd-Frank Act makes changes to the minimum designated reserve ratio of the DIF, increasing the minimum from 1.15 percent to 1.35 percent of the estimated amount of total insured deposits and eliminating the requirement that the FDIC pay dividends to depository institutions when the reserve ratio exceeds certain thresholds. The Dodd- Frank Act also allows depository institutions to pay interest on demand deposits. |
·
|
Transactions with Affiliates. The Dodd-Frank Act enhances the requirements for certain transactions with affiliates under Section 23A and 23B of the Federal Reserve Act, including an expansion of the definition of “covered transactions” and increasing the amount of time for which collateral requirements regarding covered transactions must be maintained. |
·
|
Transactions with Insiders. Insider transaction limitations are expanded through the strengthening of loan restrictions to insiders and the expansion of the types of transactions subject to the various limits, including derivative transactions, repurchase agreements, reverse repurchase agreements and securities lending or borrowing transactions. Restrictions are also placed on certain asset sales to and from an insider to an institution, including requirements that such sales be on market terms and, in certain circumstances, approved by the institution’s board of directors. |
·
|
Enhanced Lending Limits. The Dodd-Frank Act strengthens the existing limits on a depository institution’s credit exposure to one borrower. Current banking law limits a depository institution’s ability to extend credit to one person (or group of related persons) in an amount exceeding certain thresholds. The Dodd-Frank Act expands the scope of these restrictions to include credit exposure arising from derivative transactions, repurchase agreements, and securities lending and borrowing transactions. |
·
|
Compensation Practices. The Dodd-Frank Act provides that the appropriate federal regulators must establish standards prohibiting as an unsafe and unsound practice any compensation plan of a bank holding company or other “covered financial institution” that provides an insider or other employee with “excessive compensation” or could lead to a material financial loss to such firm. The Company does not believe the Dodd-Frank Act will materially impact the current compensation policies at the Company and Bank. |
·
|
Holding Company Capital Levels. The Dodd-Frank Act requires bank regulators to establish minimum capital levels for holding companies that are at least of the same nature as those applicable to financial institutions. All trust preferred securities, or TRUPs, issued by bank or thrift holding companies after May 19, 2010 will be counted as Tier II Capital (with an exception for certain small bank holding companies). TRUPs issued prior to May 19, 2010 by bank holding companies with less than $15 billion in assets as of December 31, 2009, such as the Company, are exempt from these capital deductions. |
·
|
De Novo Interstate Branching. The Dodd-Frank Act removes restrictions on interstate branching and allows banks to establish branch offices in any state if the laws of that state permit a bank chartered in that state to establish the branch office. This provision may increase competition with the Bank by out-of-state financial institutions. |
·
|
Shareholder Voting. The Dodd-Frank Act requires, at least once every three years, a non-binding shareholder vote on executive compensation. Shareholders must also be given a non-binding vote on the frequency of such “say-on-pay” votes. If shareholders are asked to vote on a merger transaction, they must also be permitted a non-binding vote on any compensation paid to the company’s named executive officers in connection with the transaction. The Act also prohibits brokers from voting on any of these proposals without customer instructions. |
·
|
Volker Rule. On December 13, 2013, the Federal Reserve, the FDIC, and other regulatory agencies adopted the final rule implementing Section 13 of the Bank Holding Company Act. The so-called Volcker Rule generally prohibits, subject to exceptions, certain banking entities from (i) engaging in proprietary trading and (ii) acquiring or retaining ownership interests in, or acting as sponsors to, certain hedge funds and private equity funds. Certain trading and fund activity is expressly permitted – notably, underwriting activities, market-making related activities, and risk-mitigating hedging activities. The Volker Rule is not expected to have any impact on the Company since it does not engage in any trading or fund activity.
|
· | The new rule implements higher minimum capital requirements, includes a new common equity tier 1 capital requirement, and establishes criteria that instruments must meet in order to be considered common equity tier 1 capital, additional tier 1 capital, or tier 2 capital. These enhancements will both improve the quality and increase the quantity of capital required to be held by banking organizations with the intended purpose of better equipping the U.S. banking system to deal with adverse economic conditions. The new minimum capital to risk-weighted assets requirements are a common equity tier 1 capital ratio of 4.5 percent and a tier 1 capital ratio of 6.0 percent, which is an increase from 4.0 percent, and a total capital ratio that remains at 8.0 percent. The minimum leverage ratio (tier 1 capital to total assets) is 4.0 percent. |
· | The new rule improves the quality of capital by implementing changes to the definition of capital. Among the most important changes are stricter eligibility criteria for regulatory capital instruments that would disallow the inclusion of instruments such as trust preferred securities in tier 1 capital going forward, and new constraints on the inclusion of minority interests, mortgage-servicing assets, deferred tax assets, and certain investments in the capital of unconsolidated financial institutions. In addition, the new rule requires that most regulatory capital deductions be made from common equity tier 1 capital. |
· | Under the new rule, in order to avoid limitations on capital distributions, including dividend payments and certain discretionary bonus payments to executive officers, a banking organization must hold a capital conservation buffer composed of common equity tier 1 capital above its minimum risk-based capital requirements. This buffer will help to ensure that banking organizations conserve capital when it is most needed, allowing them to better weather periods of economic stress. The buffer is measured relative to risk-weighted assets. Phase-in of the capital conservation buffer requirements will begin on January 1, 2016. A banking organization with a buffer greater than 2.5 percent would not be subject to limits on capital distributions or discretionary bonus payments; however, a banking organization with a buffer of less than 2.5 percent would be subject to increasingly stringent limitations as the buffer approaches zero. The new rule also prohibits a banking organization from making distributions or discretionary bonus payments during any quarter if its eligible retained income is negative in that quarter and its capital conservation buffer ratio was less than 2.5 percent at the beginning of the quarter. When the new rule is fully phased in, the minimum capital requirements plus the capital conservation buffer will exceed the well-capitalized thresholds. |
· | The new rule also increases the risk weights for past-due loans, certain commercial real estate loans, and some equity exposures, and makes selected other changes in risk weights and credit conversion factors. |
ITEM 1A.
|
RISK FACTORS
|
ITEM 1B.
|
UNRESOLVED STAFF COMMENTS
|
ITEM 2.
|
PROPERTIES
|
ITEM 3.
|
LEGAL PROCEEDINGS
|
ITEM 4.
|
MINE SAFETY DISCLOSURES
|
ITEM 5.
|
MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
|
2014– Price Per Share
|
2013 – Price Per Share
|
|||||||||||||||
High
|
Low
|
High
|
Low
|
|||||||||||||
First Quarter
|
$
|
12.75
|
$
|
10.40
|
$
|
8.75
|
$
|
7.50
|
||||||||
Second Quarter
|
$
|
13.00
|
$
|
12.00
|
$
|
8.25
|
$
|
7.65
|
||||||||
Third Quarter
|
$
|
14.75
|
$
|
12.00
|
$
|
11.00
|
$
|
7.00
|
||||||||
Fourth Quarter
|
$
|
15.50
|
$
|
13.00
|
$
|
12.25
|
$
|
9.10
|
ITEM 6.
|
SELECTED FINANCIAL DATA
|
ITEM 7.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
ITEM 7A.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
ITEM 8.
|
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
|
ITEM 9.
|
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
|
ITEM 9A.
|
CONTROLS AND PROCEDURES
|
ITEM 9B.
|
OTHER INFORMATION
|
ITEM 10.
|
DIRECTORS, EXECUTIVE OFFICERS, AND CORPORATE GOVERNANCE
|
ITEM 11.
|
EXECUTIVE COMPENSATION
|
ITEM 12.
|
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS
|
Plan Category
|
Number of securities
to be issued
upon exercise of
outstanding options,
warrants and rights
|
Weighted-average
exercise price of
outstanding options,
warrants and rights
|
Number of securities
remaining available for
future issuance under
equity compensation plans
(excluding securities
reflected in column(a))
|
|||||||||
(a)
|
(b)
|
(c)
|
||||||||||
Equity compensation plans approved by security holders
|
22,187
|
$
|
12.06
|
-
|
||||||||
Equity compensation plans not approved by security holders
|
NA
|
NA
|
NA
|
|||||||||
Total
|
22,187
|
$
|
12.06
|
-
|
ITEM 13.
|
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE
|
ITEM 14.
|
PRINCIPAL ACCOUNTING FEES AND SERVICES
|
ITEM 15.
|
EXHIBITS, FINANCIAL STATEMENT SCHEDULES
|
2014 Annual Report
To Stockholders Pages*
|
||
1. Consolidated Financial Statements
|
||
Consolidated Balance Sheets December 31, 2014 and 2013
|
3
|
|
Consolidated Statements of Income Years ended December 31, 2014 and 2013
|
4
|
|
Consolidated Statements of Comprehensive Income Years ended December 31, 2014 and 2013
|
5
|
|
Consolidated Statements of Changes in Stockholders’ Equity Years ended December 31, 2014 and 2013
|
6
|
|
Consolidated Statements of Cash Flows Years ended December 31, 2014 and 2013
|
7 – 8
|
|
Notes to Consolidated Financial Statements
|
9 – 39
|
|
Report of Independent Registered Public Accounting Firm
|
40
|
2. | Consolidated Financial Statement Schedules |
3. | Exhibits |
Exhibit
|
Description
|
|||
3.1
|
Surrey Bancorp Articles of Incorporation
|
Incorporated by reference to Exhibit 3.1 to the Registrant’s form 10K dated March 28, 2011.
|
||
3.2
|
Surrey Bancorp Bylaws
|
Incorporated by reference to Exhibit 3(i) to the Registrant’s form 8K dated May 1, 2003
|
||
10.1
|
1997 Incentive Stock Option Plan
|
Incorporated by reference to Exhibit 4.1 to the Registrant’s Form S-8 dated September 11, 2003
|
||
10.2
|
1997 Nonstatutory Stock Option Plan
|
Incorporated by reference to Exhibit 4.1 to the Registrant’s Form S-8 dated September 11, 2003
|
||
10.3
|
Executive Salary Continuation Agreement of Edward C. Ashby, III
|
Incorporated by reference to Exhibit 10.1 to the Registrant’s 2005 2nd Quarter Form 10Q
|
10.4
|
Executive Salary Continuation Agreement of Mark H. Towe
|
Incorporated by reference to Exhibit 10.3 to the Registrant’s 2005 2nd Quarter Form 10Q
|
||
10.5
|
Executive Salary Continuation Agreement of Pedro A. Pequeno, II
|
Incorporated by reference to Exhibit 10.2 to the Registrant’s 2005 2nd Quarter Form 10Q
|
||
10.6
|
409A Amendment to Surrey Bank & Trust Executive Salary Continuation Plan between the Bank and Edward C. Ashby, III
|
Incorporated by reference to Exhibit 10.3 to the Registrant’s 2008 2nd Quarter Form 10Q
|
||
10.7
|
409A Amendment to Surrey Bank & Trust Executive Salary Continuation Plan between the Bank and Mark H. Towe
|
Incorporated by reference to Exhibit 10.3 to the Registrant’s 2008 2nd Quarter Form 10Q
|
||
10.8
|
409A Amendment to Surrey Bank & Trust Executive Salary Continuation Plan between the Bank and Pedro A. Pequeno, II
|
Incorporated by reference to Exhibit 10.3 to the Registrant’s 2008 2nd Quarter Form 10Q
|
||
10.9
|
Amendment No. One to Employment Agreement of Edward C. Ashby, III
|
Incorporated by reference to Exhibit 10.3 to the Registrant’s 2007 Form 10-K
|
||
10.10
|
Amendment No. One to Employment Agreement of Mark H. Towe
|
Incorporated by reference to Exhibit 10.4 to the Registrant’s 2007 Form 10-K
|
||
10.11
|
Amendment No. One to Employment Agreement of Pedro A. Pequeno, II
|
Incorporated by reference to Exhibit 10.6 to the Registrant’s 2007 Form 10-K
|
||
10.12
|
Amendment No. Two to Employment Agreement of Edward C. Ashby, III
|
Incorporated by reference to Exhibit 10.12 to the Registrant’s 2008 Form 10-K
|
||
10.13
|
Amendment No. Two to Employment Agreement of Mark H. Towe
|
Incorporated by reference to Exhibit 10.13 to the Registrant’s 2008 Form 10-K
|
||
10.14
|
Amendment No. Two to Employment Agreement of Pedro A. Pequeno, II
|
Incorporated by reference to Exhibit 10.14 to the Registrant’s 2008 Form 10-K
|
||
2014 Annual Report to Stockholders (such report, except to the extent incorporated herein by reference, is being furnished for the information of the SEC only and is not deemed to be filed as part of the Report on Form 10-K)
|
Filed herewith
|
|||
Subsidiaries of the Registrant
|
Filed herewith
|
|||
Consent of Elliott Davis Decosimo, PLLC
|
Filed herewith
|
|||
Rule 13a-14(a)/15d-14(a) Certification of Principal Executive Officer
|
Filed herewith
|
|||
Rule 13a-14(a)/15d-14(a) Certification of Principal Financial Officer
|
Filed herewith
|
|||
Section 1350 Certifications
|
Filed herewith
|
|||
101
|
Interactive Data Files
|
Filed herewith
|
SURREY BANCORP
|
||
3/27/15
|
s/ Edward C. Ashby, III
|
|
Date
|
Edward C. Ashby, III
|
|
President and Chief Executive Officer
|
||
(Principal Executive Officer)
|
Signature
|
Title
|
Date
|
||
s/ Edward C. Ashby, III
|
Director, President and
|
3/27/15
|
||
Edward C. Ashby, III
|
Chief Executive Officer
|
|||
(Principal Executive Officer)
|
||||
s/ Mark H. Towe
|
Sr. Vice President and
|
3/27/15
|
||
Mark H. Towe
|
Chief Financial Officer
|
|||
(Principal Financial Officer)
|
||||
s/ Robert H. Moody
|
Chairman of the Board
|
3/27/15
|
||
Robert H. Moody
|
||||
s/ Elizabeth Johnson Lovill
|
Director
|
3/27/15
|
||
Elizabeth Johnson Lovill
|
||||
s/ Gene Rees
|
Director
|
3/27/15
|
||
Gene Rees
|
||||
s/ Tamra W. Thomas
|
Director
|
3/27/15
|
||
Tamra W. Thomas
|
||||
s/ Tom G. Webb
|
Director
|
3/27/15
|
||
Tom G. Webb
|
||||
s/ Buddy Williams
|
Director
|
3/27/15
|
||
Buddy Williams
|
Letter to Stockholders
|
1
|
Financial Highlights Summary
|
2
|
Consolidated Balance Sheets
|
3
|
Consolidated Statements of Income
|
4
|
Consolidated Statements of Comprehensive Income
|
5
|
Consolidated Statements of Changes in Stockholders’ Equity
|
6
|
Consolidated Statements of Cash Flows
|
7
|
Notes to Consolidated Financial Statements
|
9
|
Report of Independent Registered Public Accounting Firm
|
40
|
Management’s Discussion and Analysis
|
41
|
Board of Directors and Officers
|
59
|
Stockholder Information
|
60
|
2014
|
2013
|
2012
|
2011
|
2010 2
|
||||||||||||||||
Summary of Operations
|
||||||||||||||||||||
Interest income
|
$
|
10,816
|
$
|
10,539
|
$
|
10,954
|
$
|
10,936
|
$
|
11,150
|
||||||||||
Interest expense
|
1,350
|
1,505
|
1,671
|
2,116
|
2,472
|
|||||||||||||||
Net interest income
|
9,466
|
9,034
|
9,283
|
8,820
|
8,678
|
|||||||||||||||
Provision for loan losses
|
212
|
320
|
471
|
744
|
3,004
|
|||||||||||||||
Other income
|
3,255
|
2,907
|
2,614
|
2,571
|
2,739
|
|||||||||||||||
Other expense
|
7,315
|
6,972
|
6,922
|
7,031
|
6,481
|
|||||||||||||||
Income taxes
|
1,751
|
1,760
|
1,721
|
1,369
|
694
|
|||||||||||||||
Net income
|
3,443
|
2,889
|
2,783 |
2,247
|
1,238
|
|||||||||||||||
Preferred stock dividends declared
|
(183
|
)
|
(183
|
)
|
(183
|
)
|
(183
|
)
|
(301
|
)
|
||||||||||
Net income available to common stockholders
|
$ |
3,260
|
$
|
2,706
|
$ |
2,600
|
$ |
2,064
|
$ |
937
|
Per Common Share Data | ||||||||||||||||||||
Net income:
|
||||||||||||||||||||
Basic
|
$ |
0.92
|
$ |
0.76
|
$ |
0.73
|
$ |
0.58
|
$ |
0.27
|
||||||||||
Diluted
|
0.82
|
0.69
|
0.67
|
0.54
|
0.27
|
|||||||||||||||
Cash dividends declared
|
0.22
|
0.21
|
0.18
|
0.15
|
n/a
|
|||||||||||||||
Book value per common share
|
9.27
|
8.57
|
8.01
|
7.45
|
7.03
|
Balance Sheet | ||||||||||||||||||||
Loans, net
|
$
|
189,549
|
$
|
179,909
|
$
|
173,578
|
$
|
175,446
|
$
|
171,794
|
||||||||||
Investment securities available for sale
|
4,364
|
4,550
|
3,503
|
2,506
|
2,012
|
|||||||||||||||
Total assets
|
253,201
|
240,919
|
229,912
|
224,728
|
213,652
|
|||||||||||||||
Deposits
|
206,667
|
195,801
|
187,823
|
183,938
|
173,960
|
|||||||||||||||
Stockholders’ equity
|
36,771
|
34,218
|
32,237
|
30,227
|
28,644
|
|||||||||||||||
Interest-earning assets
|
232,441
|
223,497
|
213,560
|
213,301
|
194,936
|
|||||||||||||||
Interest-bearing liabilities
|
159,947
|
160,838
|
158,594
|
161,287
|
155,455
|
Selected Ratios | ||||||||||||||||||||
Return on average assets
|
1.38
|
%
|
1.22
|
%
|
1.23
|
%
|
1.00
|
%
|
0.57
|
%
|
||||||||||
Return on average equity
|
9.65
|
%
|
8.59
|
%
|
8.86
|
%
|
7.53
|
%
|
4.26
|
%
|
||||||||||
Dividends declared on common stock as a percent of net income available to common stockholders
|
23.95
|
%
|
27.50
|
%
|
24.53
|
%
|
25.70
|
%
|
n/a
|
|
1.
|
In thousands of dollars, except per share data.
|
2.
|
Adjusted for the effects of a common stock split affected in the form of a 10% common stock dividend declared on November 28, 2011.
|
2014
|
2013
|
|||||||
Assets
|
||||||||
Cash and due from banks
|
$
|
6,236,749
|
$
|
7,424,593
|
||||
Interest-bearing deposits with banks
|
37,315,779
|
34,351,505
|
||||||
Federal funds sold
|
1,212,776
|
1,311,641
|
||||||
Investment securities available for sale
|
4,363,805
|
4,549,702
|
||||||
Restricted equity securities
|
618,109
|
676,799
|
||||||
Loans, net of allowance for loan losses of $3,554,664 in 2014 and $3,375,350 in 2013
|
189,549,072
|
179,908,825
|
||||||
Property and equipment, net
|
4,368,589
|
4,440,215
|
||||||
Foreclosed assets
|
280,821
|
-
|
||||||
Accrued interest and other income
|
997,681
|
966,042
|
||||||
Goodwill
|
120,000
|
120,000
|
||||||
Bank owned life insurance
|
5,623,087
|
5,462,336
|
||||||
Other assets
|
2,514,855
|
1,707,319
|
||||||
Total assets
|
$
|
253,201,323
|
240,918,977
|
|||||
Liabilities and Stockholders’ Equity
|
||||||||
Liabilities
|
||||||||
Deposits:
|
||||||||
Noninterest-bearing
|
$
|
52,969,691
|
$
|
42,713,122
|
||||
Interest-bearing
|
153,696,890
|
153,087,839
|
||||||
Total deposits
|
206,666,581
|
195,800,961
|
||||||
Federal Home Loan Bank advances
|
6,250,000
|
7,750,000
|
||||||
Dividends payable
|
827,159
|
790,259
|
||||||
Accrued interest payable
|
110,261
|
123,558
|
||||||
Other liabilities
|
2,576,668
|
2,236,573
|
||||||
Total liabilities
|
216,430,669
|
206,701,351
|
||||||
Commitments and contingencies – Note 16
|
||||||||
Stockholders’ equity
|
||||||||
Preferred stock, 1,000,000 shares authorized, 189,356 shares of Series A, issued and outstanding with no par value, 4.5% convertible non-cumulative, perpetual; with a liquidation value of $14 per share;
|
2,620,325
|
2,620,325
|
||||||
181,154 shares of Series D, issued and outstanding with no par value, 5.0% convertible non-cumulative, perpetual; with a liquidation value of $7.08 per share;
|
1,248,482
|
1,248,482
|
||||||
Common stock, 10,000,000 shares authorized at no par value; 3,549,665 shares issued and outstanding in 2014 and 3,542,984 shares issued and outstanding in 2013
|
12,101,480
|
12,061,153
|
||||||
Retained earnings
|
20,808,309
|
18,329,089
|
||||||
Accumulated other comprehensive loss
|
(7,942
|
)
|
(41,423
|
)
|
||||
Total stockholders’ equity
|
36,770,654
|
34,217,626
|
||||||
Total liabilities and stockholders’ equity
|
$
|
253,201,323
|
$
|
240,918,977
|
2014
|
2013
|
|||||||
Interest income
|
||||||||
Loans and fees on loans
|
$
|
10,634,674
|
$
|
10,377,342
|
||||
Federal funds sold
|
2,720
|
2,286
|
||||||
Investment securities, taxable
|
60,427
|
55,648
|
||||||
Investment securities, dividends
|
24,419
|
22,190
|
||||||
Deposits with banks
|
93,744
|
81,449
|
||||||
Total interest income
|
10,815,984
|
10,538,915
|
||||||
Interest expense
|
||||||||
Deposits
|
1,067,116
|
1,175,130
|
||||||
Federal funds purchased and securities sold under agreements to repurchase
|
19
|
80
|
||||||
Short-term debt
|
-
|
38,543
|
||||||
Federal Home Loan Bank advances
|
282,431
|
291,491
|
||||||
Total interest expense
|
1,349,566
|
1,505,244
|
||||||
Net interest income
|
9,466,418
|
9,033,671
|
||||||
Provision for loan losses
|
211,863
|
319,565
|
||||||
Net interest income after provision for loan losses
|
9,254,555
|
8,714,106
|
||||||
Noninterest income
|
||||||||
Service charges on deposit accounts
|
795,832
|
863,862
|
||||||
Gain on the sale of government guaranteed loans
|
127,362
|
229,130
|
||||||
Fees on loans delivered to correspondents
|
30,650
|
78,763
|
||||||
Other service charges and fees
|
678,053
|
576,993
|
||||||
Gain (loss) on sale of investment securities
|
(1,670
|
)
|
9,206
|
|||||
Income from bank owned life insurance
|
160,752
|
163,982
|
||||||
Insurance commissions
|
766,855
|
666,704
|
||||||
Other operating income
|
278,365
|
318,204
|
||||||
Life insurance proceeds
|
419,150
|
-
|
||||||
Total noninterest income
|
3,255,349
|
2,906,844
|
||||||
Noninterest expense
|
||||||||
Salaries and employee benefits
|
3,931,262
|
3,762,207
|
||||||
Occupancy expense
|
442,858
|
429,536
|
||||||
Equipment expense
|
269,221
|
237,229
|
||||||
Data processing
|
453,417
|
414,309
|
||||||
Foreclosed assets, net
|
3,331
|
(3,312
|
)
|
|||||
Postage, printing and supplies
|
189,646
|
190,985
|
||||||
Professional fees
|
463,844
|
389,338
|
||||||
FDIC insurance premiums
|
119,794
|
104,317
|
||||||
Other expense
|
1,441,848
|
1,447,323
|
||||||
Total noninterest expense
|
7,315,221
|
6,971,932
|
||||||
Net income before income taxes
|
5,194,683
|
4,649,018
|
||||||
Income tax expense
|
1,751,114
|
1,759,667
|
||||||
Net income
|
3,443,569
|
2,889,351
|
||||||
Preferred stock dividends
|
(183,423
|
)
|
(183,423
|
)
|
||||
Net income available to common stockholders
|
$
|
3,260,146
|
$
|
2,705,928
|
||||
Basic earnings per common share
|
$
|
0.92
|
$
|
0.76
|
||||
Diluted earnings per common share
|
$
|
0.82
|
$
|
0.69
|
||||
Basic weighted average common shares outstanding
|
3,544,057
|
3,542,984
|
||||||
Diluted weighted average common shares outstanding
|
4,179,908
|
4,176,919
|
||||||
Dividends declared per common share
|
$
|
0.22
|
$
|
0.21
|
2014
|
2013
|
|||||||
Net income
|
$
|
3,443,569
|
$
|
2,889,351
|
||||
Other comprehensive income:
|
||||||||
Investment securities available for sale
|
||||||||
Unrealized holding gains
|
51,631
|
39,126
|
||||||
Tax effect
|
(19,252
|
)
|
(14,627
|
)
|
||||
Reclassification of (gains) losses recognized in net income
|
1,670
|
(9,206
|
)
|
|||||
Tax effect
|
(568
|
)
|
3,130
|
|||||
33,481
|
18,423
|
|||||||
Comprehensive income
|
$
|
3,477,050
|
$
|
2,907,774
|
Preferred
|
Accumulated Other
|
|||||||||||||||||||||||
Stock
|
Common Stock
|
Retained
|
Comprehensive
|
|||||||||||||||||||||
Amount
|
Shares
|
Amount
|
Earnings
|
Income (Loss)
|
Total
|
|||||||||||||||||||
Balance, January 1, 2013
|
$
|
3,868,807
|
3,542,984
|
$
|
12,061,153
|
$
|
16,367,187
|
$
|
(59,846
|
)
|
$
|
32,237,301
|
||||||||||||
Net income
|
-
|
-
|
-
|
2,889,351
|
-
|
2,889,351
|
||||||||||||||||||
Other comprehensive income
|
-
|
-
|
-
|
-
|
18,423
|
18,423
|
||||||||||||||||||
Dividends declared on Series A convertible preferred stock ($.63 per share)
|
-
|
-
|
-
|
(119,294
|
)
|
-
|
(119,294
|
)
|
||||||||||||||||
Dividends declared on Series D convertible preferred stock ($.35 per share)
|
-
|
-
|
-
|
(64,129
|
)
|
-
|
(64,129
|
)
|
||||||||||||||||
Dividends declared on common stock ($.21 per share)
|
-
|
-
|
-
|
(744,026
|
)
|
-
|
(744,026
|
)
|
||||||||||||||||
Balance, December 31, 2013
|
3,868,807
|
3,542,984
|
12,061,153
|
18,329,089
|
(41,423
|
)
|
34,217,626
|
|||||||||||||||||
Net income
|
-
|
-
|
-
|
3,443,569
|
-
|
3,443,569
|
||||||||||||||||||
Other comprehensive income
|
-
|
-
|
-
|
-
|
33,481
|
33,481
|
||||||||||||||||||
Common stock options exercised, net of shares surrendered in cashless exchange
|
- |
6,681
|
40,327
|
-
|
- |
40,327
|
||||||||||||||||||
Dividends declared on Series A convertible preferred stock ($.63 per share)
|
-
|
-
|
-
|
(119,294
|
)
|
-
|
(119,294
|
)
|
||||||||||||||||
Dividends declared on Series D convertible preferred stock ($.35 per share)
|
-
|
-
|
-
|
(64,129
|
)
|
-
|
(64,129
|
)
|
||||||||||||||||
Dividends declared on common stock ($.22 per share)
|
-
|
-
|
-
|
(780,926
|
)
|
-
|
(780,926
|
)
|
||||||||||||||||
Balance, December 31, 2014
|
$
|
3,868,807
|
3,549,665
|
$
|
12,101,480
|
$
|
20,808,309
|
$
|
(7,942
|
)
|
$
|
36,770,654
|
2014
|
2013
|
|||||||
Cash flows from operating activities
|
||||||||
Net income
|
$
|
3,443,569
|
$
|
2,889,351
|
||||
Adjustments to reconcile net income to net cash provided by operations:
|
||||||||
Depreciation and amortization
|
271,024
|
257,213
|
||||||
Provision for loan losses
|
211,863
|
319,565
|
||||||
Gain on the sale of foreclosed assets
|
(39,610
|
)
|
(65,786
|
)
|
||||
Gain on the sale of government guaranteed loans
|
(127,362
|
)
|
(229,130
|
)
|
||||
(Gain) loss on the sale of investments
|
1,670
|
(9,206
|
)
|
|||||
(Gain) loss on disposal of property and equipment
|
(3,867
|
)
|
452
|
|||||
Deferred income taxes
|
(186,258
|
)
|
(25,498
|
)
|
||||
Amortization of premiums on securities, net of accretion of discounts
|
27
|
40
|
||||||
Changes in assets and liabilities:
|
||||||||
Accrued interest and other income
|
(31,639
|
)
|
13,056
|
|||||
Increase in cash surrender value of life insurance
|
(160,751
|
)
|
(163,982
|
)
|
||||
Other assets
|
(641,098
|
)
|
(82,189
|
)
|
||||
Accrued interest payable
|
(13,297
|
)
|
(12,243
|
)
|
||||
Other liabilities
|
340,095
|
545,516
|
||||||
Net cash provided by operating activities
|
3,064,366
|
3,437,159
|
||||||
Cash flows from investing activities
|
||||||||
Net increase in interest-bearing deposits with banks
|
(2,964,274
|
)
|
(1,985,187
|
)
|
||||
Net (increase) decrease in federal funds sold
|
98,865
|
(601,053
|
)
|
|||||
Purchases of investment securities
|
(2,150,382
|
)
|
(2,081,221
|
)
|
||||
Maturities of investment securities
|
2,256,480
|
1,009,520
|
||||||
Purchases of restricted equity securities
|
(310
|
)
|
(275
|
)
|
||||
Redemption of restricted equity securities
|
59,000
|
61,800
|
||||||
Net increase in loans
|
(10,126,482
|
)
|
(6,697,105
|
)
|
||||
Proceeds from the sale of investment securities
|
131,403
|
63,937
|
||||||
Proceeds from the sale of foreclosed assets
|
160,523
|
603,490
|
||||||
Proceeds from sale of property and equipment
|
5,575
|
100
|
||||||
Purchases of property and equipment
|
(201,106
|
)
|
(154,242
|
)
|
||||
Net cash used in investing activities
|
(12,730,708
|
)
|
(9,780,236
|
)
|
||||
Cash flows from financing activities
|
||||||||
Net increase in deposits
|
10,865,620
|
7,977,924
|
||||||
Maturities of long-term debt
|
(1,500,000
|
)
|
-
|
|||||
Dividends paid on preferred stock
|
(183,423
|
)
|
(183,296
|
)
|
||||
Dividends paid on common stock
|
(744,026
|
)
|
-
|
|||||
Common stock options exercised
|
40,327
|
-
|
||||||
Net cash provided by financing activities
|
8,478,498
|
7,794,628
|
||||||
Net increase (decrease) in cash and due from banks
|
(1,187,844
|
)
|
1,451,551
|
|||||
Cash and due from banks, beginning
|
7,424,593
|
5,973,042
|
||||||
Cash and due from banks, ending
|
$
|
6,236,749
|
$
|
7,424,593
|
2014
|
2013
|
|||||||
Supplemental disclosures
|
||||||||
Interest paid
|
$
|
1,362,863
|
$
|
1,517,487
|
||||
Income taxes paid
|
$
|
2,009,722
|
$
|
1,819,472
|
||||
Loans transferred to foreclosed properties
|
$
|
401,734
|
$
|
46,280
|
||||
Cash dividends declared but not paid
|
$
|
827,159
|
$
|
790,259
|
||||
Change in unrealized losses on investment securities available for sale, net
|
$
|
33,481
|
$
|
18,423
|
Note 1.
|
Organization and Summary of Significant Accounting Policies
|
Note 1. | Organization and Summary of Significant Accounting Policies, continued |
Note 1. | Organization and Summary of Significant Accounting Policies, continued |
Note 1. | Organization and Summary of Significant Accounting Policies, continued |
Years
|
||||
Buildings and improvements
|
10-40
|
|||
Furniture and equipment
|
3-25
|
Note 1. | Organization and Summary of Significant Accounting Policies, continued |
Note 1. | Organization and Summary of Significant Accounting Policies, continued |
Note 1. | Organization and Summary of Significant Accounting Policies, continued |
Note 2. | Restrictions on Cash |
Note 3. | Securities |
Amortized
Cost |
Unrealized
Gains |
Unrealized
Losses |
Fair
Value |
|||||||||||||
2014
|
||||||||||||||||
Government-sponsored enterprises
|
$
|
3,500,000
|
$
|
1,170
|
$
|
4,640
|
$
|
3,496,530
|
||||||||
Mortgage-backed securities
|
25,592
|
715
|
-
|
26,307
|
||||||||||||
Corporate bonds
|
300,000
|
-
|
45,000
|
255,000
|
||||||||||||
Equities and mutual funds
|
552,635
|
42,900
|
9,567
|
585,968
|
||||||||||||
$
|
4,378,227
|
$
|
44,785
|
$
|
59,207
|
$
|
4,363,805
|
Amortized
Cost |
Unrealized
Gains |
Unrealized
Losses |
Fair
Value |
|||||||||||||
2013
|
||||||||||||||||
Government-sponsored enterprises
|
$
|
3,500,000
|
$
|
795
|
$
|
2,030
|
$
|
3,498,765
|
||||||||
Mortgage-backed securities
|
32,099
|
1,022
|
-
|
33,121
|
||||||||||||
Corporate bonds
|
550,000
|
-
|
99,000
|
451,000
|
||||||||||||
Equities and mutual funds
|
535,326
|
43,260
|
11,770
|
566,816
|
||||||||||||
$
|
4,617,425
|
$
|
45,077
|
$
|
112,800
|
$
|
4,549,702
|
Amortized
Cost |
Fair
Value |
|||||||
Due in one year or less
|
$
|
1,552,635
|
$
|
1,586,427
|
||||
Due after one year through five years
|
2,810,353
|
2,761,699
|
||||||
Due after five years through ten years
|
5,846
|
5,998
|
||||||
Due after ten years
|
9,393
|
9,681
|
||||||
$
|
4,378,227
|
$
|
4,363,805
|
Note 3.
|
Securities, continued
|
Less Than 12 Months
|
12 Months or More
|
Total
|
||||||||||||||||||||||
Fair
Value
|
Unrealized
Losses
|
Fair
Value
|
Unrealized
Losses
|
Fair
Value
|
Unrealized
Losses
|
|||||||||||||||||||
2014
|
||||||||||||||||||||||||
Government-sponsored enterprises
|
$
|
1,995,360
|
$
|
4,640
|
$
|
-
|
$
|
-
|
$
|
1,995,360
|
$
|
4,640
|
||||||||||||
Corporate bonds
|
-
|
-
|
255,000
|
45,000
|
255,000
|
45,000
|
||||||||||||||||||
Equities and mutual funds
|
69,129
|
5,592
|
107,999
|
3,975
|
177,128
|
9,567
|
||||||||||||||||||
$
|
2,064,489
|
$
|
10,232
|
$
|
362,999
|
$
|
48,975
|
$
|
2,427,488
|
$
|
59,207
|
2013
|
||||||||||||||||||||||||
Government-sponsored enterprises
|
$
|
1,497,970
|
$
|
2,030
|
$
|
-
|
$
|
-
|
$
|
1,497,970
|
$
|
2,030
|
||||||||||||
Corporate bonds
|
-
|
-
|
451,000
|
99,000
|
451,000
|
99,000
|
||||||||||||||||||
Equities and mutual funds
|
245,218
|
11,770
|
-
|
-
|
245,218
|
11,770
|
||||||||||||||||||
$
|
1,743,188
|
$
|
13,800
|
$
|
451,000
|
$
|
99,000
|
$
|
2,194,188
|
$
|
112,800
|
Note 4. | Loans Receivable |
2014
|
2013
|
|||||||
Commercial and industrial
|
$
|
56,602,425
|
$
|
66,612,984
|
||||
Real estate:
|
||||||||
Construction and land development
|
10,061,249
|
6,353,787
|
||||||
Residential, 1-4 families
|
41,824,806
|
40,203,978
|
||||||
Residential, 5 or more families
|
1,109,586
|
1,515,239
|
||||||
Farmland
|
3,486,002
|
2,219,688
|
||||||
Nonfarm, nonresidential
|
74,275,793
|
60,316,018
|
||||||
Agricultural
|
675,474
|
107,974
|
||||||
Consumer, net of discounts of $11,950 in 2014 and $11,931 in 2013
|
4,997,023
|
5,685,407
|
||||||
193,032,358
|
183,015,075
|
|||||||
Net, deferred loan origination costs (fees)
|
71,378
|
269,100
|
||||||
193,103,736
|
183,284,175
|
|||||||
Allowance for loan losses
|
(3,554,664
|
)
|
(3,375,350
|
)
|
||||
$
|
189,549,072
|
$
|
179,908,825
|
Note 5. | Allowance for Loan Losses |
Construction
& |
1-4 Family
Residential |
Nonfarm,
Nonresidential |
Commercial
and |
Consumer
|
Other
|
Total
|
||||||||||||||||||||||
2014
|
||||||||||||||||||||||||||||
Allowance for credit losses:
|
||||||||||||||||||||||||||||
Beginning balance
|
$
|
73,000
|
$
|
617,629
|
$
|
753,050
|
$
|
1,708,962
|
$
|
181,309
|
$
|
41,400
|
$
|
3,375,350
|
||||||||||||||
Charge-offs
|
-
|
(102,168
|
)
|
(1,778
|
)
|
(146,444
|
)
|
(66,581
|
)
|
-
|
(316,971
|
)
|
||||||||||||||||
Recoveries
|
-
|
1,463
|
80,630
|
160,418
|
41,911
|
-
|
284,422
|
|||||||||||||||||||||
Provision
|
87,100
|
281,275
|
235,413
|
(421,036
|
)
|
2,111
|
27,000
|
211,863
|
||||||||||||||||||||
Ending balance
|
$
|
160,100
|
$
|
798,199
|
$
|
1,067,315
|
$
|
1,301,900
|
$
|
158,750
|
$
|
68,400
|
$
|
3,554,664
|
||||||||||||||
Ending balance: individually evaluated for impairment
|
$
|
-
|
$
|
97,799
|
$
|
117,215
|
$
|
162,900
|
$
|
-
|
$
|
-
|
$
|
377,914
|
||||||||||||||
Ending balance: collectively evaluated for impairment
|
$
|
160,100
|
$
|
700,400
|
$
|
950,100
|
$
|
1,139,000
|
$
|
158,750
|
$
|
68,400
|
$
|
3,176,750
|
||||||||||||||
Loans Receivable:
|
||||||||||||||||||||||||||||
Ending balance
|
$
|
10,061,249
|
$
|
41,824,806
|
$
|
74,275,793
|
$
|
56,602,425
|
$
|
4,997,023
|
$
|
5,271,062
|
$
|
193,032,358
|
||||||||||||||
Ending balance: individually evaluated for impairment
|
$
|
13,536
|
$
|
574,078
|
$
|
2,658,938
|
$
|
1,399,469
|
$
|
-
|
$
|
228,111
|
$
|
4,874,132
|
||||||||||||||
Ending balance: collectively evaluated for impairment
|
$
|
10,047,713
|
$
|
41,250,728
|
$
|
71,616,855
|
$
|
55,202,956
|
$
|
4,997,023
|
$
|
5,042,951
|
$
|
188,158,226
|
||||||||||||||
2013
|
||||||||||||||||||||||||||||
Allowance for credit losses:
|
||||||||||||||||||||||||||||
Beginning balance
|
$
|
86,300
|
$
|
668,700
|
$
|
801,999
|
$
|
1,604,510
|
$
|
198,789
|
$
|
42,800
|
$
|
3,403,098
|
||||||||||||||
Charge-offs
|
-
|
(26,967
|
)
|
(238,541
|
)
|
(87,374
|
)
|
(79,667
|
)
|
-
|
(432,549
|
)
|
||||||||||||||||
Recoveries
|
587
|
401
|
2,426
|
52,433
|
29,389
|
-
|
85,236
|
|||||||||||||||||||||
Provision
|
(13,887
|
)
|
(24,505
|
)
|
187,166
|
139,393
|
32,798
|
(1,400
|
)
|
319,565
|
||||||||||||||||||
Ending balance
|
$
|
73,000
|
$
|
617,629
|
$
|
753,050
|
$
|
1,708,962
|
$
|
181,309
|
$
|
41,400
|
$
|
3,375,350
|
||||||||||||||
Ending balance: individually evaluated for impairment
|
$
|
-
|
$
|
10,829
|
$
|
131,950
|
$
|
206,162
|
$
|
-
|
$
|
-
|
$
|
348,941
|
||||||||||||||
Ending balance: collectively evaluated for impairment
|
$
|
73,000
|
$
|
606,800
|
$
|
621,100
|
$
|
1,502,800
|
$
|
181,309
|
$
|
41,400
|
$
|
3,026,409
|
||||||||||||||
Loans Receivable:
|
||||||||||||||||||||||||||||
Ending balance
|
$
|
6,353,787
|
$
|
40,203,978
|
$
|
60,316,018
|
$
|
66,612,984
|
$
|
5,685,407
|
$
|
3,842,901
|
$
|
183,015,075
|
||||||||||||||
Ending balance: individually evaluated for impairment
|
$
|
318,111
|
$
|
337,767
|
$
|
2,912,421
|
$
|
2,499,531
|
$
|
-
|
$
|
-
|
$
|
6,067,830
|
||||||||||||||
Ending balance: collectively evaluated for impairment
|
$
|
6,035,676
|
$
|
39,866,211
|
$
|
57,403,597
|
$
|
64,113,453
|
$
|
5,685,407
|
$
|
3,842,901
|
$
|
176,947,245
|
Note 5.
|
Allowance for Loan Losses, continued
|
Recorded
Investment |
Unpaid
Principal |
Related
Allowance |
Average
Recorded |
Interest
Income |
||||||||||||||||
2014
|
||||||||||||||||||||
With no related allowance recorded:
|
||||||||||||||||||||
Construction and development
|
$
|
13,536
|
$
|
13,536
|
$
|
-
|
$
|
13,788
|
$
|
2,710
|
||||||||||
1-4 family residential
|
174,314
|
174,314
|
-
|
174,882
|
7,269
|
|||||||||||||||
Nonfarm, nonresidential
|
1,806,013
|
1,806,013
|
-
|
1,826,306
|
94,953
|
|||||||||||||||
Commercial and industrial
|
844,682
|
844,682
|
-
|
986,462
|
9,452
|
|||||||||||||||
Consumer
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
Other loans
|
228,111
|
228,111
|
-
|
228,884
|
15,244
|
|||||||||||||||
3,066,656
|
3,066,656
|
- |
3,230,322
|
129,628
|
||||||||||||||||
With an allowance recorded:
|
||||||||||||||||||||
Construction and development
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||||
1-4 family residential
|
399,764
|
399,764
|
97,799
|
402,691
|
8,141
|
|||||||||||||||
Nonfarm, nonresidential
|
852,925
|
852,925
|
117,215
|
852,872
|
358
|
|||||||||||||||
Commercial and industrial
|
554,787
|
554,787
|
162,900
|
552,865
|
72
|
|||||||||||||||
Consumer
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
Other loans
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
1,807,476
|
1,807,476
|
377,914
|
1,808,428
|
8,571
|
||||||||||||||||
Combined:
|
||||||||||||||||||||
Construction and development
|
$
|
13,536
|
$
|
13,536
|
$
|
-
|
$
|
13,788
|
$
|
2,710
|
||||||||||
1-4 family residential
|
574,078
|
574,078
|
97,799
|
577,573
|
15,410
|
|||||||||||||||
Nonfarm, nonresidential
|
2,658,938
|
2,658,938
|
117,215
|
2,679,178
|
95,311
|
|||||||||||||||
Commercial and industrial
|
1,399,469
|
1,399,469
|
162,900
|
1,539,327
|
9,524
|
|||||||||||||||
Consumer
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
Other loans
|
228,111
|
228,111
|
-
|
228,884
|
15,244
|
|||||||||||||||
$
|
4,874,132
|
$
|
4,874,132
|
$
|
377,914
|
$
|
5,038,750
|
$
|
138,199
|
|||||||||||
2013
|
||||||||||||||||||||
With no related allowance recorded:
|
||||||||||||||||||||
Construction and development
|
$
|
318,111
|
$
|
318,111
|
$
|
-
|
$
|
320,260
|
$
|
21,825
|
||||||||||
1-4 family residential
|
263,562
|
263,562
|
-
|
261,364
|
21,295
|
|||||||||||||||
Nonfarm, nonresidential
|
2,095,645
|
2,165,883
|
-
|
2,144,605
|
120,322
|
|||||||||||||||
Commercial and industrial
|
1,359,371
|
1,561,253
|
-
|
1,393,077
|
71,409
|
|||||||||||||||
Consumer
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
Other loans
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
4,036,689
|
4,308,809
|
-
|
4,119,306
|
234,851
|
||||||||||||||||
With an allowance recorded:
|
||||||||||||||||||||
Construction and development
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||||
1-4 family residential
|
74,205
|
74,205
|
10,829
|
77,144
|
4,300
|
|||||||||||||||
Nonfarm, nonresidential
|
816,776
|
816,776
|
131,950
|
930,060
|
24,653
|
|||||||||||||||
Commercial and industrial
|
1,140,160
|
1,140,160
|
206,162
|
1,163,698
|
47,393
|
|||||||||||||||
Consumer
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
Other loans
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
2,031,141
|
2,031,141
|
348,941
|
2,170,902
|
76,346
|
||||||||||||||||
Combined:
|
||||||||||||||||||||
Construction and development
|
$
|
318,111
|
$
|
318,111
|
$
|
-
|
$
|
320,260
|
$
|
21,825
|
||||||||||
1-4 family residential
|
337,767
|
337,767
|
10,829
|
338,508
|
25,595
|
|||||||||||||||
Nonfarm, nonresidential
|
2,912,421
|
2,982,659
|
131,950
|
3,074,665
|
144,975
|
|||||||||||||||
Commercial and industrial
|
2,499,531
|
2,701,413
|
206,162
|
2,556,775
|
118,802
|
|||||||||||||||
Consumer
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
Other loans
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
$
|
6,067,830
|
$
|
6,339,950
|
$
|
348,941
|
$
|
6,290,208
|
$
|
311,197
|
Note 5. | Allowance for Loan Losses, continued |
30-59 Days
Past Due |
60-89 Days
Past Due |
90 Days Plus
Past Due |
Total
Past Due |
Current
|
Total
|
Recorded
Investment |
||||||||||||||||||||||
2014
|
||||||||||||||||||||||||||||
Construction and development
|
$
|
94,736
|
$
|
-
|
$
|
-
|
$
|
94,736
|
$
|
9,966,513
|
$
|
10,061,249
|
$
|
-
|
||||||||||||||
1-4 family residential
|
362,406
|
274,595
|
172,981
|
809,982
|
41,014,824
|
41,824,806
|
-
|
|||||||||||||||||||||
Nonfarm, nonresidential
|
137,733
|
105,473
|
663,902
|
907,108
|
73,368,685
|
74,275,793
|
-
|
|||||||||||||||||||||
Commercial and industrial
|
63,744
|
20,476
|
1,271,937
|
1,356,157
|
55,246,268
|
56,602,425
|
-
|
|||||||||||||||||||||
Consumer
|
169,895
|
48,785
|
54,306
|
272,986
|
4,724,037
|
4,997,023
|
53,184
|
|||||||||||||||||||||
Other loans
|
-
|
-
|
-
|
-
|
5,271,062
|
5,271,062
|
-
|
|||||||||||||||||||||
Total
|
$
|
828,514
|
$
|
449,329
|
$
|
2,163,126
|
$
|
3,440,969
|
$
|
189,591,389
|
$
|
193,032,358
|
$
|
53,184
|
||||||||||||||
Percentage of total loans
|
0.43
|
%
|
0.23
|
%
|
1.12
|
%
|
1.78
|
%
|
98.22
|
%
|
100.00
|
%
|
||||||||||||||||
Non-accruals included above
|
||||||||||||||||||||||||||||
Construction and development
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||||||||||
1-4 family residential
|
162,027
|
56,664
|
172,981
|
391,672
|
112,752
|
504,424
|
||||||||||||||||||||||
Nonfarm, nonresidential
|
133,147
|
-
|
663,902
|
797,049
|
395,558
|
1,192,607
|
||||||||||||||||||||||
Commercial and industrial
|
18,859
|
-
|
1,271,937
|
1,290,796
|
-
|
1,290,796
|
||||||||||||||||||||||
Consumer
|
-
|
-
|
1,122
|
1,122
|
-
|
1,122
|
||||||||||||||||||||||
Other loans
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||
$
|
314,033
|
$
|
56,664
|
$
|
2,109,942
|
$
|
2,480,639
|
$
|
508,310
|
$
|
2,988,949
|
|||||||||||||||||
2013
|
||||||||||||||||||||||||||||
Construction and development
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
6,353,787
|
$
|
6,353,787
|
$
|
-
|
||||||||||||||
1-4 family residential
|
544,559
|
165,244
|
173,786
|
883,589
|
39,320,389
|
40,203,978
|
-
|
|||||||||||||||||||||
Nonfarm, nonresidential
|
193,411
|
336,036
|
791,148
|
1,320,595
|
58,995,423
|
60,316,018
|
-
|
|||||||||||||||||||||
Commercial and industrial
|
84,145
|
2,528
|
929,552
|
1,016,225
|
65,596,759
|
66,612,984
|
15,837
|
|||||||||||||||||||||
Consumer
|
103,463
|
68,767
|
20,742
|
192,972
|
5,492,435
|
5,685,407
|
19,601
|
|||||||||||||||||||||
Other loans
|
-
|
-
|
-
|
-
|
3,842,901
|
3,842,901
|
-
|
|||||||||||||||||||||
Total
|
$
|
925,578
|
$
|
572,575
|
$
|
1,915,228
|
$
|
3,413,381
|
$
|
179,601,694
|
$
|
183,015,075
|
$
|
35,438
|
||||||||||||||
Percentage of total loans
|
0.51
|
%
|
0.31
|
%
|
1.05
|
%
|
1.87
|
%
|
98.13
|
%
|
100.00
|
%
|
||||||||||||||||
Non-accruals included above
|
||||||||||||||||||||||||||||
Construction and development
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
70,058
|
$
|
70,058
|
||||||||||||||||
1-4 family residential
|
29,269
|
-
|
173,786
|
203,055
|
190,032
|
393,087
|
||||||||||||||||||||||
Nonfarm, nonresidential
|
85,646
|
-
|
791,148
|
876,794
|
1,222,090
|
2,098,884
|
||||||||||||||||||||||
Commercial and industrial
|
-
|
-
|
913,715
|
913,715
|
321,592
|
1,235,307
|
||||||||||||||||||||||
Consumer
|
259
|
547
|
1,141
|
1,947
|
1,044
|
2,991
|
||||||||||||||||||||||
Other loans
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||
$
|
115,174
|
$
|
547
|
$
|
1,879,790
|
$
|
1,995,511
|
$
|
1,804,816
|
$
|
3,800,327
|
Note 5.
|
Allowance for Loan Losses, continued
|
Note 5.
|
Allowance for Loan Losses, continued
|
Total
|
Pass Credits
|
Special
Mention |
Substandard
|
Doubtful
|
||||||||||||||||
December 31, 2014
|
||||||||||||||||||||
Construction and development
|
$
|
10,061,249
|
$
|
10,061,249
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||||
1-4 family residential
|
41,824,806
|
41,009,963
|
641,862
|
172,981
|
-
|
|||||||||||||||
Nonfarm, nonresidential
|
74,275,793
|
72,657,724
|
1,618,069
|
-
|
-
|
|||||||||||||||
Commercial and industrial
|
56,602,425
|
55,274,007
|
1,328,418
|
-
|
-
|
|||||||||||||||
Consumer
|
4,997,023
|
4,996,479
|
544
|
-
|
-
|
|||||||||||||||
Other loans
|
5,271,062
|
5,254,896
|
16,166
|
-
|
-
|
|||||||||||||||
$
|
193,032,358
|
$
|
189,254,318
|
$
|
3,605,059
|
$
|
172,981
|
$
|
-
|
|||||||||||
100.0
|
%
|
98.0
|
%
|
1.9
|
%
|
0.1
|
%
|
-
|
%
|
|||||||||||
Guaranteed portion of loans
|
||||||||||||||||||||
Construction and development
|
$
|
15,604
|
$
|
15,604
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||||
1-4 family residential
|
584,842
|
306,212
|
278,630
|
-
|
-
|
|||||||||||||||
Nonfarm, nonresidential
|
29,914,244
|
29,082,499
|
831,745
|
-
|
-
|
|||||||||||||||
Commercial and industrial
|
13,858,258
|
12,877,497
|
980,761
|
-
|
-
|
|||||||||||||||
Consumer
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
Other loans
|
768,869
|
760,786
|
8,083
|
-
|
-
|
|||||||||||||||
$
|
45,141,817
|
$
|
43,042,598
|
$
|
2,099,219
|
$
|
-
|
$
|
-
|
|||||||||||
Total
|
Pass Credits
|
Special
Mention |
Substandard
|
Doubtful
|
||||||||||||||||
December 31, 2013
|
||||||||||||||||||||
Construction and development
|
$
|
6,353,787
|
$
|
6,283,729
|
$
|
70,058
|
$
|
-
|
$
|
-
|
||||||||||
1-4 family residential
|
40,203,978
|
39,586,647
|
617,331
|
-
|
-
|
|||||||||||||||
Nonfarm, nonresidential
|
60,316,018
|
58,188,799
|
2,022,868
|
104,351
|
-
|
|||||||||||||||
Commercial and industrial
|
66,612,984
|
64,556,331
|
2,056,653
|
-
|
-
|
|||||||||||||||
Consumer
|
5,685,407
|
5,684,245
|
1,162
|
-
|
-
|
|||||||||||||||
Other loans
|
3,842,901
|
3,842,901
|
-
|
-
|
-
|
|||||||||||||||
$
|
183,015,075
|
$
|
178,142,652
|
$
|
4,768,072
|
$
|
104,351
|
$
|
-
|
|||||||||||
100.0
|
%
|
97.3
|
%
|
2.6
|
%
|
0.1
|
%
|
-
|
%
|
|||||||||||
Guaranteed portion of loans
|
||||||||||||||||||||
Construction and development
|
$
|
73,000
|
$
|
73,000
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||||
1-4 family residential
|
673,854
|
629,939
|
43,915
|
-
|
-
|
|||||||||||||||
Nonfarm, nonresidential
|
26,835,404
|
26,063,658
|
771,746
|
-
|
-
|
|||||||||||||||
Commercial and industrial
|
19,589,284
|
18,737,759
|
851,525
|
-
|
-
|
|||||||||||||||
Consumer
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
Other loans
|
544,195
|
544,195
|
-
|
-
|
-
|
|||||||||||||||
$
|
47,715,737
|
$
|
46,048,551
|
$
|
1,667,186
|
$
|
-
|
$
|
-
|
Note 5.
|
Allowance for Loan Losses, continued
|
For the year ended
December 31, 2014
|
For the year ended
December 31, 2013
|
|||||||||||||||||||||||
Number of Contracts
|
Pre-Modification Outstanding Recorded Investment
|
Post-Modification Outstanding Recorded Investment
|
Number of Contracts
|
Pre-Modification Outstanding Recorded Investment
|
Post-Modification Outstanding Recorded Investment
|
|||||||||||||||||||
Troubled Debt Restructurings
|
||||||||||||||||||||||||
Construction and development
|
-
|
$
|
-
|
$
|
-
|
-
|
$
|
-
|
$
|
-
|
||||||||||||||
1-4 Family residential
|
4
|
327,724
|
331,425
|
1
|
55,336
|
55,336
|
||||||||||||||||||
Nonfarm, nonresidential
|
-
|
-
|
-
|
1
|
145,219
|
145,219
|
||||||||||||||||||
Commercial and industrial
|
-
|
-
|
-
|
1
|
22,065
|
22,065
|
Note 6.
|
Loan Servicing
|
Note 6.
|
Loan Servicing, continued
|
Level 3
|
||||||||
2014
|
2013
|
|||||||
Fair
Value |
Fair
Value |
|||||||
Balance, January 1
|
$
|
260,862
|
$
|
63,017
|
||||
Capitalized
|
97,221
|
200,839
|
||||||
Amortization included in other income
|
(7,851
|
)
|
(2,994
|
)
|
||||
Balance, December 31
|
$
|
350,232
|
$
|
260,862
|
Note 7. | Property and Equipment |
2014
|
2013
|
|||||||
Land and improvements
|
$
|
1,625,879
|
$
|
1,625,879
|
||||
Buildings and improvements
|
3,891,557
|
3,845,457
|
||||||
Furniture and equipment
|
2,820,417
|
2,703,601
|
||||||
8,337,853
|
8,174,937
|
|||||||
Less accumulated depreciation
|
(3,969,264
|
)
|
(3,734,722
|
)
|
||||
$
|
4,368,589
|
$
|
4,440,215
|
2015
|
$
|
35,685
|
||
2016
|
29,900
|
|||
2017
|
29,900
|
|||
2018
|
29,900
|
|||
2019
|
29,900
|
|||
$
|
155,285
|
Note 8. | Deposits |
2015
|
$
|
50,274,234
|
||
2016
|
17,408,010
|
|||
2017
|
4,388,220
|
|||
2018
|
4,203,282
|
|||
2019
|
3,727,426
|
|||
$
|
80,001,172
|
Note 9. | Short-Term Debt |
2014
|
2013
|
|||||||
Outstanding balance at December 31
|
$
|
-
|
$
|
-
|
||||
Year-end weighted average rate
|
-
|
%
|
-
|
%
|
||||
Daily average outstanding during the year
|
$
|
1,583
|
$
|
950,544
|
||||
Average rate for the year
|
1.20
|
%
|
4.09
|
%
|
||||
Maximum outstanding at any month-end during the year
|
$
|
78,000
|
$
|
3,743,820
|
Note 10.
|
Federal Home Loan Bank Advances
|
2015
|
$
|
3,500,000
|
||
2016
|
1,000,000
|
|||
2017
|
1,750,000
|
|||
2018
|
-
|
|||
2019
|
-
|
|||
$
|
6,250,000
|
Note 11. | Fair Value |
Level 1 | Valuation is based upon quoted prices for identical instruments traded in active markets. |
Level 2 | Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. |
Level 3 | Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques. |
Note 11. | Fair Value, continued |
(in thousands)
|
||||||||||||||||
December 31, 2014
|
Total
|
Level 1
|
Level 2
|
Level 3
|
||||||||||||
Government-sponsored enterprises
|
$
|
3,497
|
$
|
-
|
$
|
3,497
|
$
|
-
|
||||||||
Mortgage-backed securities
|
26
|
-
|
26
|
-
|
||||||||||||
Corporate bonds
|
255
|
-
|
-
|
255
|
||||||||||||
Equities and mutual funds
|
586
|
586
|
-
|
-
|
||||||||||||
Total assets at fair value
|
$
|
4,364
|
$
|
586
|
$
|
3,523
|
$
|
255
|
(in thousands)
|
||||||||||||||||
December 31, 2013
|
Total
|
Level 1
|
Level 2
|
Level 3
|
||||||||||||
Government-sponsored enterprises
|
$
|
3,499
|
$
|
-
|
$
|
3,499
|
$
|
-
|
||||||||
Mortgage-backed securities
|
33
|
-
|
33
|
-
|
||||||||||||
Corporate bonds
|
451
|
-
|
-
|
451
|
||||||||||||
Equities and mutual funds
|
567
|
567
|
-
|
-
|
||||||||||||
Total assets at fair value
|
$
|
4,550
|
$
|
567
|
$
|
3,532
|
$
|
451
|
2014
|
2013
|
|||||||
(in thousands)
|
||||||||
Corporate Bonds-Available for Sale
|
||||||||
Balance, January 1
|
$
|
451
|
$
|
443
|
||||
Total realized gain (losses) included in income
|
-
|
-
|
||||||
Total unrealized gain (losses) included in other comprehensive income
|
54
|
8
|
||||||
Net purchases, sales, calls and maturities
|
(250
|
)
|
-
|
|||||
Net transfers in/out of Level 3
|
-
|
-
|
||||||
Balance, December 31
|
$
|
255
|
$
|
451
|
Note 11.
|
Fair Value, continued
|
(in thousands)
|
||||||||||||||||
December 31, 2014
|
Total
|
Level 1
|
Level 2
|
Level 3
|
||||||||||||
Impaired loans:
|
||||||||||||||||
Commercial and industrial
|
$
|
392
|
$
|
-
|
$
|
-
|
$
|
392
|
||||||||
Nonfarm, nonresidential
|
736
|
-
|
-
|
736
|
||||||||||||
1- 4 family residential
|
302
|
-
|
-
|
302
|
||||||||||||
Foreclosed assets
|
281
|
-
|
-
|
281
|
||||||||||||
Servicing assets
|
350
|
-
|
-
|
350
|
||||||||||||
Total assets at fair value
|
$
|
2,061
|
$
|
-
|
$
|
-
|
$
|
2,061
|
||||||||
(in thousands)
|
||||||||||||||||
December 31, 2013
|
Total
|
Level 1
|
Level 2
|
Level 3
|
||||||||||||
Impaired loans:
|
||||||||||||||||
Commercial and industrial
|
$
|
934
|
$
|
-
|
$
|
-
|
$
|
934
|
||||||||
Nonfarm, nonresidential
|
685
|
-
|
-
|
685
|
||||||||||||
1- 4 family residential
|
63
|
-
|
-
|
63
|
||||||||||||
Foreclosed assets
|
-
|
-
|
-
|
-
|
||||||||||||
Servicing assets
|
261
|
-
|
-
|
261
|
||||||||||||
Total assets at fair value
|
$
|
1,943
|
$
|
-
|
$
|
-
|
$
|
1,943
|
Fair Value at
December 31, 2014
|
Valuation Technique
|
Significant
Unobservable Inputs
|
Significant Unobservable
Input Value
|
||||||||
Corporate bonds
|
$
|
255
|
Third party estimate
|
Sales of comparable instruments
|
n/a
|
||||||
Servicing assets
|
$
|
350
|
Management estimate
|
Present value of future payments/useful life
|
n/a
|
|
|||||
Impaired loans
|
$
|
1,430
|
Management estimate
|
Appraisals and/or sales of comparable properties
|
n/a
|
|
|||||
Foreclosed assets
|
$
|
281
|
Management estimate
|
Appraisals and/or sales of comparable properties
|
n/a
|
|
|||||
Fair Value at December 31, 2013
|
Valuation Technique
|
Significant
Unobservable Inputs
|
Significant Unobservable
Input Value
|
||||||||
Corporate bonds
|
$
|
451
|
Third party estimate
|
Sales of comparable instruments
|
n/a
|
|
|||||
Servicing assets
|
$
|
261
|
Management estimate
|
Present value of future payments/useful life
|
n/a
|
|
|||||
Impaired loans
|
$
|
1,682
|
Management estimate
|
Appraisals and/or sales of comparable properties
|
n/a
|
|
Note 11. | Fair Value, continued |
Note 11. | Fair Value, continued |
Fair Value Measurements
|
||||||||||||||||||||
(dollars in thousands) |
Carrying
Amount |
Fair Value
|
Quoted
Prices in |
Significant
Other |
Significant
Unobservable |
|||||||||||||||
December 31, 2014
|
||||||||||||||||||||
Financial Instruments - Assets
|
||||||||||||||||||||
Loans
|
$
|
189,549
|
$
|
195,254
|
$
|
-
|
$
|
-
|
$
|
195,254
|
||||||||||
Financial Instruments – Liabilities
|
||||||||||||||||||||
Deposits
|
206,667
|
202,750
|
-
|
61,925
|
140,825
|
|||||||||||||||
Federal Home Loan Bank advances
|
6,250
|
6,486
|
-
|
-
|
6,486
|
|||||||||||||||
December 31, 2013
|
||||||||||||||||||||
Financial Instruments - Assets
|
||||||||||||||||||||
Loans
|
$
|
179,909
|
$
|
179,531
|
$
|
-
|
$
|
-
|
$
|
179,531
|
||||||||||
Financial Instruments – Liabilities
|
||||||||||||||||||||
Deposits
|
195,801
|
171,649
|
-
|
171,649
|
-
|
|||||||||||||||
Federal Home Loan Bank advances
|
7,750
|
8,100
|
-
|
8,100
|
-
|
Note 12. | Earnings Per Common Share |
2014
|
2013
|
|||||||
Net income
|
$
|
3,443,569
|
$
|
2,889,351
|
||||
Convertible preferred stock dividends (Series A and D)
|
(183,423
|
)
|
(183,423
|
)
|
||||
Net income available to common shareholders
|
$
|
3,260,146
|
$
|
2,705,928
|
||||
Weighted average common shares outstanding
|
3,544,057
|
3,542,984
|
||||||
Effect of dilutive securities:
|
||||||||
Options
|
1,916
|
-
|
||||||
Convertible preferred stock (Series A and D)
|
633,935
|
633,935
|
||||||
Weighted average common shares outstanding, diluted
|
4,179,908
|
4,176,919
|
||||||
Basic earnings per common share
|
$
|
0.92
|
$
|
0.76
|
||||
Diluted earnings per common share
|
$
|
0.82
|
$
|
0.69
|
Note 13. | Employee Benefit Plans |
Note 14.
|
Stock Based Compensation
|
Options
Outstanding
|
Weighted
Average
Exercise
Price
|
|||||||
Balance at December 31, 2012
|
41,190
|
$
|
12.06
|
|||||
Exercised
|
-
|
-
|
||||||
Authorized
|
-
|
-
|
||||||
Forfeited
|
-
|
-
|
||||||
Granted
|
-
|
-
|
||||||
Expired
|
-
|
-
|
||||||
Balance at December 31, 2013
|
41,190
|
12.06
|
||||||
Exercised
|
(19,003
|
)
|
12.06
|
|||||
Authorized
|
-
|
-
|
||||||
Forfeited
|
-
|
-
|
||||||
Granted
|
-
|
-
|
||||||
Expired
|
-
|
-
|
||||||
Balance at December 31, 2014
|
22,187
|
$
|
12.06
|
Note 14.
|
Stock Based Compensation, continued
|
Exercise Price
|
Number of
Options
Outstanding
|
Weighted
Average
Exercise Price
|
Weighted Average
Contractual Life
Remaining
(Years)
|
Number of
Options
Exercisable
|
Weighted
Average
Exercise Price
|
||||||||||||||||
$ |
12.06
|
22,187
|
$
|
12.06
|
2.4
|
22,187
|
$
|
12.06
|
|||||||||||||
Total/Average
|
22,187
|
12.06
|
2.4
|
22,187
|
12.06
|
Note 15.
|
Income Taxes
|
2014
|
2013
|
|||||||
Current
|
$
|
1,937,372
|
$
|
1,785,165
|
||||
Deferred
|
(186,258
|
)
|
(25,498
|
)
|
||||
$
|
1,751,114
|
$
|
1,759,667
|
2014
|
2013
|
|||||||
Expected tax expense
|
$
|
1,766,192
|
$
|
1,580,666
|
||||
State income tax, net of federal tax benefit
|
184,559
|
207,817
|
||||||
Tax exempt income
|
(227,117
|
)
|
(75,568
|
)
|
||||
Nondeductible and other items
|
27,480
|
46,752
|
||||||
$
|
1,751,114
|
$
|
1,759,667
|
Note 15.
|
Income Taxes, continued
|
2014
|
2013
|
|||||||
Deferred tax assets
|
||||||||
Allowance for loan losses
|
$
|
939,429
|
$
|
878,918
|
||||
Deferred compensation liability
|
700,077
|
609,777
|
||||||
Net unrealized loss on securities available for sale
|
6,480
|
26,301
|
||||||
Interest income on non-accrual loans
|
211,177
|
162,335
|
||||||
Lower of cost or market adjustment on loans transferred from available for sale to portfolio
|
13,880
|
15,322
|
||||||
1,871,043
|
1,692,653
|
|||||||
Deferred tax liabilities
|
||||||||
Depreciation
|
305,846
|
305,985
|
||||||
Net deferred loan cost
|
112,466
|
100,374
|
||||||
Other
|
19,091
|
19,091
|
||||||
437,403
|
425,450
|
|||||||
Net deferred tax asset
|
$
|
1,433,640
|
$
|
1,267,203
|
Note 16.
|
Commitments and Contingencies
|
Note 16.
|
Commitments and Contingencies, continued
|
2014
|
2013
|
|||||||
Commitments to extend credit, including unused lines of credit
|
$
|
36,699,062
|
$
|
34,138,058
|
||||
Standby letters of credit
|
2,414,247
|
1,601,847
|
||||||
$
|
39,113,309
|
$
|
35,739,905
|
Note 17.
|
Regulatory Restrictions
|
Note 17.
|
Regulatory Restrictions, continued
|
Note 17.
|
Regulatory Restrictions, continued
|
Actual
|
Minimum
Required
For Capital
Adequacy Purposes
|
Minimum To Be Well
Capitalized Under
Prompt Corrective
Action Provisions
|
||||||||||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||||||||
December 31, 2014
|
||||||||||||||||||||||||
Total Capital (to Risk-Weighted Assets) Consolidated
|
$
|
37,412
|
21.55
|
%
|
$
|
13,888
|
8.00
|
%
|
$
|
n/
|
a
|
n/
|
a
|
|||||||||||
Surrey Bank & Trust
|
$
|
36,623
|
21.11
|
%
|
$
|
13,878
|
8.00
|
%
|
$
|
17,348
|
10.00
|
%
|
||||||||||||
Tier I Capital (to Risk-Weighted Assets) Consolidated
|
$
|
35,225
|
20.29
|
%
|
$
|
6,944
|
4.00
|
%
|
$
|
n/
|
a
|
n/
|
a
|
|||||||||||
Surrey Bank & Trust
|
$
|
34,438
|
19.85
|
%
|
$
|
6,939
|
4.00
|
%
|
$
|
10,409
|
6.00
|
%
|
||||||||||||
Tier I Capital (to Average Assets) Consolidated
|
$
|
35,225
|
13.93
|
%
|
$
|
10,117
|
4.00
|
%
|
$
|
n/
|
a
|
n/
|
a
|
|||||||||||
Surrey Bank & Trust
|
$
|
34,438
|
13.65
|
%
|
$
|
10,094
|
4.00
|
%
|
$
|
12,618
|
5.00
|
%
|
||||||||||||
December 31, 2013
|
||||||||||||||||||||||||
Total Capital (to Risk-Weighted Assets) Consolidated
|
$
|
34,880
|
21.90
|
%
|
$
|
12,740
|
8.00
|
%
|
$
|
n/
|
a
|
n/
|
a
|
|||||||||||
Surrey Bank & Trust
|
$
|
34,154
|
21.46
|
%
|
$
|
12,730
|
8.00
|
%
|
$
|
15,913
|
10.00
|
%
|
||||||||||||
Tier I Capital (to Risk-Weighted Assets) Consolidated
|
$
|
32,872
|
20.64
|
%
|
$
|
6,370
|
4.00
|
%
|
$
|
n/
|
a
|
n/
|
a
|
|||||||||||
Surrey Bank & Trust
|
$
|
32,148
|
20.20
|
%
|
$
|
6,365
|
4.00
|
%
|
$
|
9,548
|
6.00
|
%
|
||||||||||||
Tier I Capital (to Average Assets) Consolidated
|
$
|
32,872
|
13.58
|
%
|
$
|
9,685
|
4.00
|
%
|
$
|
n/
|
a
|
n/
|
a
|
|||||||||||
Surrey Bank & Trust
|
$
|
32,148
|
13.31
|
%
|
$
|
9,663
|
4.00
|
%
|
$
|
12,079
|
5.00
|
%
|
Note 18.
|
Transactions with Related Parties
|
2014
|
2013
|
|||||||
Balance, beginning
|
$
|
2,954,100
|
$
|
4,060,425
|
||||
New loans
|
698,101
|
684,223
|
||||||
Repayments
|
(868,652
|
)
|
(1,790,548
|
)
|
||||
Balance, ending
|
$
|
2,783,549
|
$
|
2,954,100
|
Note 19.
|
Parent Company Activity
|
2014
|
2013
|
|||||||
Assets
|
||||||||
Cash and due from banks
|
$
|
1,033,992
|
$
|
89,528
|
||||
Dividends receivable from subsidiary
|
-
|
867,000
|
||||||
Investment securities available for sale
|
585,968
|
566,816
|
||||||
Other assets
|
16,427
|
11,972
|
||||||
Investment in subsidiaries
|
35,972,759
|
33,483,275
|
||||||
$
|
37,609,146
|
$
|
35,018,591
|
|||||
Liabilities and Capital
|
||||||||
Liabilities
|
||||||||
Dividends payable
|
$
|
827,159
|
$
|
790,259
|
||||
Other liabilities
|
11,333
|
10,706
|
||||||
838,492
|
800,965
|
|||||||
Capital
|
||||||||
Preferred stock
|
3,868,807
|
3,868,807
|
||||||
Common stock
|
12,101,480
|
12,061,153
|
||||||
Retained earnings
|
20,808,309
|
18,329,089
|
||||||
Accumulated other comprehensive loss
|
(7,942
|
)
|
(41,423
|
)
|
||||
36,770,654
|
34,217,626
|
|||||||
$
|
37,609,146
|
$
|
35,018,591
|
2014
|
2013
|
|||||||
Income
|
||||||||
Equity in undistributed income of subsidiary
|
$
|
2,457,219
|
$
|
1,790,589
|
||||
Dividends from subsidiary
|
1,020,000
|
1,122,000
|
||||||
Gain (loss) on the sale of investment securities
|
(1,670
|
)
|
9,206
|
|||||
Interest income
|
9
|
8
|
||||||
Dividend income
|
24,419
|
22,190
|
||||||
Total income
|
3,499,977
|
2,943,993
|
||||||
Expenses
|
||||||||
Other expense
|
72,835
|
66,614
|
||||||
Income before income taxes
|
3,427,142
|
2,877,379
|
||||||
Income tax benefit
|
(16,427
|
)
|
(11,972
|
)
|
||||
Net income
|
3,443,569
|
2,889,351
|
||||||
Preferred stock dividends
|
(183,423
|
)
|
(183,423
|
)
|
||||
Net income available to common stockholders
|
$
|
3,260,146
|
$
|
2,705,928
|
Note 19.
|
Parent Company Activity, continued
|
2014
|
2013
|
|||||||
Cash flows from operating activities
|
||||||||
Net income
|
$
|
3,443,569
|
$
|
2,889,351
|
||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Equity in undistributed earnings of subsidiary
|
(2,457,219
|
)
|
(1,790,589
|
)
|
||||
(Gain) loss on the sale of investment securities
|
1,670
|
(9,206
|
)
|
|||||
(Increase) decrease in dividends receivable from subsidiary
|
867,000
|
(867,000
|
)
|
|||||
Net (increase) decrease in other assets
|
(4,455
|
)
|
8,868
|
|||||
Net decrease in other liabilities
|
-
|
(942
|
)
|
|||||
Net cash provided by operating activities
|
1,850,565
|
230,482
|
||||||
Cash flows from investing activities
|
||||||||
Purchase of investment securities
|
(150,382
|
)
|
(81,221
|
)
|
||||
Proceeds from the sale of investment securities
|
131,403
|
63,938
|
||||||
Net cash used by investing activities
|
(18,979
|
)
|
(17,283
|
)
|
||||
Cash flows from financing activities
|
||||||||
Common stock options exercised
|
40,327
|
-
|
||||||
Dividends paid
|
(927,449
|
)
|
(183,296
|
)
|
||||
Net used by financing activities
|
(887,122
|
)
|
(183,296
|
)
|
||||
Net increase (decrease) in cash and due from banks
|
944,464
|
29,903
|
||||||
Cash and due from banks, beginning
|
89,528
|
59,625
|
||||||
Cash and due from banks, ending
|
$
|
1,033,992
|
$
|
89,528
|
Note 20.
|
Subsequent Events
|
Periods Ended December 31,
|
||||||||||||||||||||||||||||||||||||
2014
|
2013
|
2012
|
||||||||||||||||||||||||||||||||||
Average
Balance
|
Income
Interest /
Expense
|
Yield/
Cost
|
Average
Balance
|
Interest
Income/
Expense
|
Yield/
Cost
|
Average
Balance
|
Interest
Income/
Expense
|
Yield/
Cost
|
||||||||||||||||||||||||||||
Interest-earning assets
|
||||||||||||||||||||||||||||||||||||
Deposits in other banks
|
$
|
38,408
|
$
|
93
|
0.24
|
%
|
$
|
32,398
|
$
|
82
|
0.25
|
%
|
$
|
24,253
|
$
|
49
|
0.20
|
%
|
||||||||||||||||||
Taxable investment securities
|
5,075
|
85
|
1.67
|
%
|
5,103
|
78
|
1.53
|
%
|
3,775
|
61
|
1.63
|
%
|
||||||||||||||||||||||||
Federal funds sold
|
1,241
|
3
|
0.22
|
%
|
1,049
|
2
|
0.22
|
%
|
713
|
2
|
0.22
|
%
|
||||||||||||||||||||||||
Loans 1 2
|
186,428
|
10,635
|
5.70
|
%
|
181,895
|
10,377
|
5.71
|
%
|
180,342
|
10,842
|
6.01
|
%
|
||||||||||||||||||||||||
Total interest-earning assets
|
231,152
|
10,816
|
220,445
|
10,539
|
209,083
|
10,954
|
||||||||||||||||||||||||||||||
Yield on average interest-earning assets
|
4.68
|
%
|
4.78
|
%
|
5.24
|
%
|
||||||||||||||||||||||||||||||
Noninterest-earning assets
|
||||||||||||||||||||||||||||||||||||
Cash and due from banks
|
8,188
|
6,987
|
6,371
|
|||||||||||||||||||||||||||||||||
Property and equipment
|
4,403
|
4,470
|
4,546
|
|||||||||||||||||||||||||||||||||
Foreclosed assets
|
108
|
228
|
477
|
|||||||||||||||||||||||||||||||||
Interest receivable and other
|
9,385
|
8,873
|
8,698
|
|||||||||||||||||||||||||||||||||
Allowance for loan losses
|
(3,511
|
)
|
(3,344
|
)
|
(3,800
|
)
|
||||||||||||||||||||||||||||||
Total noninterest-earning assets
|
18,573
|
17,214
|
16,292
|
|||||||||||||||||||||||||||||||||
Total assets
|
$
|
249,725
|
$
|
237,659
|
$
|
225,375
|
||||||||||||||||||||||||||||||
Interest-bearing liabilities
|
||||||||||||||||||||||||||||||||||||
Demand deposits
|
$
|
30,093
|
$
|
63
|
0.21
|
%
|
$
|
27,445
|
$
|
67
|
0.24
|
%
|
$
|
23,510
|
$
|
71
|
0.30
|
%
|
||||||||||||||||||
Savings deposits
|
39,640
|
166
|
0.42
|
%
|
37,363
|
187
|
0.50
|
%
|
34,847
|
218
|
0.63
|
%
|
||||||||||||||||||||||||
Time deposits
|
84,659
|
838
|
0.99
|
%
|
84,312
|
921
|
1.09
|
%
|
87,086
|
1,083
|
1.24
|
%
|
||||||||||||||||||||||||
Fed funds purchased/repurchase0 agreements
|
2
|
1
|
1.23
|
%
|
9
|
1
|
0.93
|
%
|
15
|
1
|
0.97
|
%
|
||||||||||||||||||||||||
Short-term debt
|
-
|
-
|
-
|
%
|
942
|
38
|
4.09
|
%
|
-
|
-
|
-
|
%
|
||||||||||||||||||||||||
Long-term debt
|
7,450
|
282
|
3.79
|
%
|
7,750
|
291
|
3.76
|
%
|
7,898
|
298
|
3.78
|
%
|
||||||||||||||||||||||||
Total interest-bearing liabilities
|
161,844
|
1,350
|
157,821
|
1,505
|
153,356
|
1,671
|
||||||||||||||||||||||||||||||
Cost of average interest bearing liabilities
|
0.83
|
%
|
0.95
|
%
|
1.09
|
%
|
||||||||||||||||||||||||||||||
Noninterest-bearing liabilities
|
||||||||||||||||||||||||||||||||||||
Demand deposits
|
48,658
|
43,072
|
37,851
|
|||||||||||||||||||||||||||||||||
Interest payable and other
|
3,521
|
3,132
|
2,746
|
|||||||||||||||||||||||||||||||||
Total noninterest-bearing liabilities
|
52,179
|
46,204
|
40,597
|
|||||||||||||||||||||||||||||||||
Total liabilities
|
214,023
|
204,025
|
193,953
|
|||||||||||||||||||||||||||||||||
Stockholders' equity
|
35,702
|
33,634
|
31,422
|
|||||||||||||||||||||||||||||||||
Total liabilities and stockholders' equity
|
$
|
249,725
|
$
|
237,659
|
$
|
225,375
|
||||||||||||||||||||||||||||||
Net interest income$
|
9,466
|
$
|
9,034
|
$
|
9,283
|
|||||||||||||||||||||||||||||||
Net yield on interest-earning assets
|
4.10
|
%
|
4.10
|
%
|
4.44
|
%
|
1.
|
Includes non-accrual loans.
|
2.
|
Amortization of deferred loan fees are included in interest income.
|
2014 Compared to 2013
|
2013 Compared to 2012
|
|||||||||||||||||||||||
Interest
Income/
Expense
Variance
|
Variance
Rate
|
Attributed
To
Volume
|
Interest
Income/
Expense
Variance
|
Variance
Rate
|
Attributed
To
Volume
|
|||||||||||||||||||
Interest-earning assets
|
||||||||||||||||||||||||
Deposits in other banks
|
$
|
12
|
$
|
(2
|
)
|
$
|
14
|
$
|
33
|
$
|
13
|
$
|
20
|
|||||||||||
Taxable investments securities
|
7
|
7
|
-
|
16
|
(3
|
)
|
19
|
|||||||||||||||||
Federal funds sold
|
1
|
-
|
1
|
1
|
-
|
1
|
||||||||||||||||||
Loans
|
257
|
(1
|
)
|
258
|
(465
|
)
|
(559
|
)
|
94
|
|||||||||||||||
Total
|
277
|
4
|
273
|
(415
|
)
|
(549
|
)
|
134
|
||||||||||||||||
Interest-bearing liabilities
|
||||||||||||||||||||||||
Demand deposits
|
(4
|
)
|
(10
|
)
|
6
|
(5
|
)
|
(16
|
)
|
11
|
||||||||||||||
Savings deposits
|
(21
|
)
|
(32
|
)
|
11
|
(31
|
)
|
(46
|
)
|
15
|
||||||||||||||
Time deposits
|
(83
|
)
|
(87
|
)
|
4
|
(161
|
)
|
(127
|
)
|
(34
|
)
|
|||||||||||||
Federal funds purchased/
|
||||||||||||||||||||||||
Repurchase agreements
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Short-term debt
|
(38
|
)
|
-
|
(38
|
)
|
38
|
-
|
38
|
||||||||||||||||
Long-term debt
|
(9
|
)
|
2
|
(11
|
)
|
(7
|
)
|
(2
|
)
|
(5
|
)
|
|||||||||||||
Total
|
(155
|
)
|
(127
|
)
|
(28
|
)
|
(166
|
)
|
(191
|
)
|
25
|
|||||||||||||
Net interest income
|
$
|
432
|
$ |
(131
|
)
|
$
|
301
|
$
|
(249
|
)
|
$
|
(358
|
)
|
$
|
109
|
December 31, 2014
|
December 31, 2013
|
|||||||||||||||
30-89 Days
|
90 Days Plus
|
30-89 Days
|
90 Days Plus
|
|||||||||||||
Construction and development
|
$
|
94,736
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||
1-4 Family residential
|
637,000
|
172,981
|
709,803
|
173,786
|
||||||||||||
Nonfarm, non-residential
|
243,206
|
663,902
|
529,447
|
791,148
|
||||||||||||
Commercial and industrial
|
84,221
|
1,271,937
|
86,673
|
929,552
|
||||||||||||
Consumer
|
218,680
|
55,428
|
172,230
|
20,742
|
||||||||||||
Other loans
|
-
|
-
|
-
|
-
|
||||||||||||
$
|
1,277,843
|
$
|
2,164,248
|
$
|
1,498,153
|
$
|
1,915,228
|
|||||||||
Percentage of total loans
|
0.66
|
%
|
1.13
|
%
|
0.82
|
%
|
1.05
|
%
|
||||||||
Guaranteed portion of past dues
|
$
|
100,869
|
$
|
1,935,839$
|
288,601
|
$
|
1,193,581
|
For the Period Ended
December 31,
|
||||||||
2014
|
2013
|
|||||||
Service charges on deposit accounts
|
$
|
795,832
|
$
|
863,862
|
||||
Gain on the sale of government guaranteed loans
|
127,362
|
229,130
|
||||||
Fees on mortgage loans delivered to correspondents
|
30,650
|
78,763
|
||||||
Gain on the sale of investment securities
|
(1,670
|
)
|
9,206
|
|||||
Other service charges and fees
|
204,653
|
156,172
|
||||||
Debit/ATM card income
|
473,401
|
420,821
|
||||||
Insurance commissions
|
766,855
|
666,704
|
||||||
Brokerage commissions
|
173,070
|
160,562
|
||||||
Income from bank owned insurance
|
160,752
|
163,982
|
||||||
Other income
|
105,294
|
157,642
|
||||||
Life insurance proceeds
|
419,150
|
-
|
||||||
$
|
3,255,349
|
$
|
2,906,844
|
For the Period Ended
December 31,
|
||||||||
2014
|
2013
|
|||||||
Salary and benefits
|
$
|
3,931,262
|
$
|
3,762,207
|
||||
Occupancy expenses
|
442,858
|
429,536
|
||||||
Furniture/equipment expenses
|
269,221
|
237,229
|
||||||
Data processing
|
453,417
|
414,309
|
||||||
Foreclosed assets, net
|
3,331
|
(3,312
|
)
|
|||||
Postage, printing and supplies
|
189,646
|
190,985
|
||||||
Advertising and business promotion
|
111,89
|
129,048
|
||||||
Professional fees
|
463,844
|
389,338
|
||||||
FDIC insurance premiums
|
119,794
|
104,317
|
||||||
Other expenses
|
1,329,957
|
1,318,275
|
||||||
$
|
7,315,221
|
$
|
6,971,932
|
For the Year Ended
December 31, 2014
|
For the Year Ended
December 31, 2013
|
|||||||||||||||
Average
Balance
|
%
|
Average
Balance
|
%
|
|||||||||||||
Interest earning assets
|
||||||||||||||||
Loans, net
|
$
|
186,428,192
|
74.65
|
%
|
$
|
181,895,084
|
76.54
|
%
|
||||||||
Investment securities
|
5,075,482
|
2.03
|
%
|
5,103,188
|
2.15
|
%
|
||||||||||
Federal funds sold
|
1,240,509
|
0.50
|
%
|
1,049,132
|
0.44
|
%
|
||||||||||
Interest-bearing bank balances
|
38,407,941
|
15.38
|
%
|
32,397,555
|
13.63
|
%
|
||||||||||
Total earning assets
|
231,152,124
|
92.56
|
%
|
220,444,959
|
92.76
|
%
|
||||||||||
Nonearning assets
|
||||||||||||||||
Cash and due from banks
|
8,187,795
|
3.28
|
%
|
6,986,618
|
2.94
|
%
|
||||||||||
Property and equipment
|
4,402,816
|
1.76
|
%
|
4,470,613
|
1.88
|
%
|
||||||||||
Foreclosed assets
|
108,019
|
0.05
|
%
|
227,602
|
0.10
|
%
|
||||||||||
Other assets
|
9,385,436
|
3.76
|
%
|
8,873,679
|
3.73
|
%
|
||||||||||
Allowance for loan losses
|
(3,511,165
|
)
|
(1.41
|
)%
|
(3,344,026
|
)
|
(1.41
|
)%
|
||||||||
Total nonearning assets
|
18,572,901
|
7.44
|
%
|
17,214,486
|
7.24
|
%
|
||||||||||
Total assets
|
$
|
249,725,025
|
100.00
|
%
|
$
|
237,659,445
|
100.00
|
%
|
December 31, 2014
|
December 31, 2013
|
December 31, 2012
|
||||||||||||||||||||||
Amount
|
%
|
Amount
|
%
|
Amount
|
%
|
|||||||||||||||||||
Construction and development
|
$
|
10,061,249
|
5.21
|
%
|
$
|
6,353,787
|
3.47
|
%
|
$
|
4,873,512
|
2.76
|
%
|
||||||||||||
1-4 family residential
|
41,824,806
|
21.67
|
%
|
40,203,978
|
21.97
|
%
|
36,091,051
|
20.43
|
%
|
|||||||||||||||
5 or more family residential
|
1,109,586
|
0.57
|
%
|
1,515,239
|
0.83
|
%
|
1,676,449
|
0.95
|
%
|
|||||||||||||||
Farmland
|
3,486,002
|
1.81
|
%
|
2,219,688
|
1.21
|
%
|
2,284,155
|
1.29
|
%
|
|||||||||||||||
Nonfarm, nonresidential
|
74,275,793
|
38.48
|
%
|
60,316,018
|
32.96
|
%
|
48,993,867
|
27.73
|
%
|
|||||||||||||||
Total real estate
|
130,757,436
|
67.74
|
%
|
110,608,710
|
60.44
|
%
|
93,919,034
|
53.16
|
%
|
|||||||||||||||
Agricultural
|
675,474
|
0.35
|
%
|
107,974
|
0.06
|
%
|
147,860
|
0.08
|
%
|
|||||||||||||||
Commercial and industrial
|
56,602,425
|
29.32
|
%
|
66,612,984
|
36.40
|
%
|
75,914,072
|
42.97
|
%
|
|||||||||||||||
Consumer
|
4,997,023
|
2.59
|
%
|
5,685,407
|
3.10
|
%
|
6,703,363
|
3.79
|
%
|
|||||||||||||||
Other
|
-
|
-
|
%
|
-
|
-
|
%
|
3,000
|
-
|
%
|
|||||||||||||||
Total
|
$
|
193,032,358
|
100.00
|
%
|
$
|
183,015,075
|
100.00
|
%
|
$
|
176,687,329
|
100.00
|
%
|
December 31, 2011
|
December 31, 2010
|
|||||||||||||||
Amount
|
%
|
Amount
|
%
|
|||||||||||||
Construction and development
|
$
|
6,213,443
|
3.46
|
%
|
$
|
5,986,045
|
3.35
|
%
|
||||||||
1-4 family residential
|
39,499,189
|
22.02
|
%
|
46,356,711
|
25.98
|
%
|
||||||||||
5 or more family residential
|
2,214,365
|
1.23
|
%
|
1,853,346
|
1.04
|
%
|
||||||||||
Farmland
|
2,722,872
|
1.52
|
%
|
2,854,481
|
1.60
|
%
|
||||||||||
Nonfarm, nonresidential
|
47,867,333
|
26.69
|
%
|
48,170,698
|
27.00
|
%
|
||||||||||
Total real estate
|
98,517,202
|
54.92
|
%
|
105,221,281
|
58.97
|
%
|
||||||||||
Agricultural
|
29,493
|
0.02
|
%
|
73,852
|
0.04
|
%
|
||||||||||
Commercial and industrial
|
73,756,422
|
41.13
|
%
|
66,377,076
|
37.20
|
%
|
||||||||||
Consumer
|
7,041,846
|
3.93
|
%
|
6,759,770
|
3.79
|
%
|
||||||||||
Other
|
-
|
-
|
%
|
-
|
-
|
%
|
||||||||||
Total
|
$
|
179,344,963
|
100.00
|
%
|
$
|
178,431,979
|
100.00
|
%
|
Commercial
Financial and
|
Real
|
Total
|
||||||||||||||||||
Agricultural
|
Estate
|
Others
|
Amount
|
%
|
||||||||||||||||
Fixed rate loans
|
||||||||||||||||||||
Three months or less
|
$
|
11,715,612
|
$
|
20,639,708
|
$
|
797,618
|
$
|
33,152,938
|
17.17
|
%
|
||||||||||
Over three months to twelve months
|
11,904,015
|
11,746,943
|
1,129,479
|
24,780,437
|
12.84
|
%
|
||||||||||||||
Over one year to five years
|
18,856,681
|
34,695,409
|
1,551,737
|
55,103,827
|
28.55
|
%
|
||||||||||||||
Over five years
|
482,243
|
9,609,690
|
912,028
|
11,003,961
|
5.70
|
%
|
||||||||||||||
Total fixed rate loans
|
$
|
42,958,551
|
$
|
76,691,750
|
$
|
4,390,862
|
$
|
124,041,163
|
64.26
|
%
|
||||||||||
Variable rate loans
|
||||||||||||||||||||
Three months or less
|
$
|
1,814,138
|
$
|
412,556
|
$
|
160,572
|
$
|
2,387,266
|
1.24
|
%
|
||||||||||
Over three months to twelve months
|
730,296
|
382,419
|
198,550
|
1,311,265
|
0.68
|
%
|
||||||||||||||
Over one year to five years
|
1,844,145
|
4,044,193
|
247,039
|
6,135,377
|
3.18
|
%
|
||||||||||||||
Over five years
|
9,930,769
|
49,226,518
|
-
|
59,157,287
|
30.64
|
%
|
||||||||||||||
Total variable rate loans
|
$
|
14,319,348
|
$
|
54,065,686
|
$
|
606,161
|
$
|
68,991,195
|
35.74
|
%
|
||||||||||
Total loans
|
||||||||||||||||||||
Three months or less
|
$
|
13,529,750
|
$
|
21,052,264
|
$
|
958,190
|
$
|
35,540,204
|
18.41
|
%
|
||||||||||
Over three months to twelve months
|
12,634,311
|
12,129,362
|
1,328,029
|
26,091,702
|
13.52
|
%
|
||||||||||||||
Over one year to five years
|
20,700,826
|
38,739,602
|
1,798,776
|
61,239,204
|
31.73
|
%
|
||||||||||||||
Over five years
|
10,413,012
|
58,836,208
|
912,028
|
70,161,248
|
36.34
|
%
|
||||||||||||||
Total loans
|
$
|
57,277,899
|
$
|
130,757,436
|
$
|
4,997,023
|
$
|
193,032,358
|
100.00
|
%
|
In One Year
or Less
|
One Year
Through
Five Years
|
After Five
Through
Ten Years
|
After Ten
Years
|
Total
|
Market
Value
|
|||||||||||||||||||
Investment securities
|
||||||||||||||||||||||||
Government-sponsored enterprises
|
$
|
1,000,000
|
$
|
2,500,000
|
$
|
-
|
$
|
-
|
$
|
3,500,000
|
$
|
3,496,530
|
||||||||||||
Government-sponsored enterprises pools (MBS)
|
-
|
10,353
|
5,846
|
9,393
|
25,592
|
26,307
|
||||||||||||||||||
Corporate securities
|
-
|
300,000
|
-
|
-
|
300,000
|
255,000
|
||||||||||||||||||
Equities and mutual funds
|
552,635
|
-
|
-
|
-
|
552,635
|
585,968
|
||||||||||||||||||
Restricted
|
618,109
|
-
|
-
|
-
|
618,109
|
618,109
|
||||||||||||||||||
Total
|
$
|
2,170,744
|
$
|
2,810,353
|
$
|
5,846
|
$
|
9,393
|
$
|
4,996,336
|
$
|
4,981,914
|
||||||||||||
Weighted average yields
|
||||||||||||||||||||||||
Government-sponsored enterprises
|
0.33
|
%
|
0.92
|
%
|
-
|
%
|
-
|
%
|
0.75
|
%
|
||||||||||||||
Government-sponsored enterprises pools (MBS)
|
-
|
%
|
3.29
|
%
|
2.43
|
%
|
1.57
|
%
|
2.46
|
%
|
||||||||||||||
Corporate securities
|
-
|
%
|
4.14
|
%
|
-
|
%
|
-
|
%
|
4.14
|
%
|
||||||||||||||
Equities and mutual funds
|
4.20
|
%
|
-
|
%
|
-
|
%
|
-
|
%
|
4.20
|
%
|
||||||||||||||
Restricted
|
3.67
|
%
|
-
|
%
|
-
|
%
|
-
|
%
|
3.67
|
%
|
||||||||||||||
Consolidated
|
2.27
|
%
|
2.47
|
%
|
2.43
|
%
|
1.57
|
%
|
1.70
|
%
|
December 31, 2013
|
December 31, 2012
|
|||||||||||||||
Total
|
Market
Value
|
Total
|
Market
Value
|
|||||||||||||
Investment securities
|
||||||||||||||||
Government-sponsored enterprises
|
$
|
3,500,000
|
$
|
3,498,765
|
$
|
2,500,000
|
$
|
2,504,875
|
||||||||
Government-sponsored enterprises pools (MBS)
|
32,099
|
33,121
|
41,659
|
42,975
|
||||||||||||
Corporate securities
|
550,000
|
451,000
|
550,000
|
442,750
|
||||||||||||
Equities and mutual funds
|
535,326
|
566,816
|
508,836
|
512,252
|
||||||||||||
Restricted
|
676,799
|
676,799
|
738,324
|
738,324
|
||||||||||||
Total
|
$
|
5,294,224
|
$
|
5,226,501
|
$
|
4,338,819
|
$
|
4,241,176
|
For the Year Ended
December 31, 2014 |
For the Year Ended
December 31, 2013 |
For the Year Ended
December 31, 2012 |
||||||||||||||||||||||
Interest-bearing deposits
|
Average
Balance
|
%
|
Average
Balance
|
%
|
Average
Balance
|
%
|
||||||||||||||||||
NOW Accounts
|
$
|
30,092,922
|
14.82
|
%
|
$
|
27,444,968
|
14.28
|
%
|
$
|
23,509,879
|
12.83
|
%
|
||||||||||||
Money Market
|
29,532,120
|
14.54
|
%
|
28,762,185
|
14.97
|
%
|
27,917,572
|
15.23
|
%
|
|||||||||||||||
Savings
|
10,108,273
|
4.98
|
%
|
8,601,190
|
4.48
|
%
|
6,928,659
|
3.78
|
%
|
|||||||||||||||
Small denomination certificates
|
47,257,856
|
23.27
|
%
|
48,622,243
|
25.29
|
%
|
48,459,992
|
26.43
|
%
|
|||||||||||||||
Large denomination certificates
|
35,067,026
|
17.27
|
%
|
32,576,002
|
16.95
|
%
|
34,360,587
|
18.75
|
%
|
|||||||||||||||
Brokered certificates
|
2,334,099
|
1.15
|
%
|
3,113,408
|
1.62
|
%
|
4,265,650
|
2.33
|
%
|
|||||||||||||||
Repurchase agreements
|
-
|
-
|
%
|
-
|
-
|
%
|
-
|
-
|
%
|
|||||||||||||||
Total interest-bearing deposits
|
154,392,296
|
76.03
|
%
|
149,119,996
|
77.59
|
%
|
145,442,339
|
79.35
|
%
|
|||||||||||||||
Noninterest-bearing deposits
|
48,657,700
|
23.97
|
%
|
43,072,005
|
22.41
|
%
|
37,851,154
|
20.65
|
%
|
|||||||||||||||
Total deposits
|
$
|
203,049,996
|
100.00
|
%
|
$
|
192,192,001
|
100.00
|
%
|
$
|
183,293,493
|
100.00
|
%
|
Remaining maturity of three months or less
|
$
|
8,849,567
|
||
Remaining maturity of three through six months
|
5,285,128
|
|||
Remaining maturity over six through twelve months
|
7,045,237
|
|||
Remaining maturity over twelve months
|
12,375,005
|
|||
Total time deposits of $100,000 or more
|
$
|
33,554,937
|
2014
|
2013
|
2012
|
2011
|
2010
|
||||||||||||||||
Nonaccrual loans
|
$
|
2,988,949
|
$
|
3,800,327
|
$
|
3,740,725
|
$
|
4,395,210
|
$
|
6,362,127
|
||||||||||
Loans past due 90 days and still accruing
|
53,185
|
35,439
|
683,720
|
49,881
|
-
|
|||||||||||||||
Troubled debt restructured loans
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
Foreclosed assets
|
280,821
|
-
|
491,424
|
560,018
|
450,532
|
|||||||||||||||
Total
|
$
|
3,322,955
|
$
|
3,835,766
|
$
|
4,915,869
|
$
|
5,005,109
|
$
|
6,812,659
|
||||||||||
Total assets
|
$
|
253,201,323
|
$
|
240,918,977
|
$
|
229,912,432
|
$
|
224,727,764
|
$
|
213,652,484
|
||||||||||
Ratio
|
1.31
|
%
|
1.59
|
%
|
2.14
|
%
|
2.23
|
%
|
3.19
|
%
|
||||||||||
Interest receivable on original note terms
|
$
|
566,158
|
$
|
435,214
|
$
|
327,714
|
$
|
201,828
|
$
|
127,836
|
||||||||||
Interest actually recorded in income
|
$
|
40,481
|
$
|
27,463
|
$
|
7,733
|
$
|
11,646
|
$
|
38,271
|
December 31,
2014 |
December 31,
2013 |
|||||||
Construction and development
|
$
|
13,536
|
$
|
318,111
|
||||
1-4 family residential
|
601,587
|
386,564
|
||||||
Nonfarm, non-residential
|
2,658,937
|
2,912,421
|
||||||
Commercial and industrial
|
1,399,470
|
2,499,531
|
||||||
Consumer
|
8,854
|
2,991
|
||||||
Other loans
|
228,111
|
-
|
||||||
Total impaired and nonaccrual
|
$
|
4,910,495
|
$
|
6,119,618
|
December 31,
|
||||||||||||||||||||
2014
|
2013
|
2012
|
2011
|
2010
|
||||||||||||||||
Balance at January 1
|
$
|
3,375
|
$
|
3,403
|
$
|
3,881
|
$
|
6,684
|
$
|
4,670
|
||||||||||
Recoveries
|
||||||||||||||||||||
Commercial
|
161
|
52
|
151
|
91
|
151
|
|||||||||||||||
Residential, 1-4 family
|
1
|
1
|
1
|
63
|
2
|
|||||||||||||||
Nonfarm, nonresidential property
|
81
|
3
|
84
|
109
|
21
|
|||||||||||||||
Loans to individuals
|
42
|
29
|
19
|
24
|
28
|
|||||||||||||||
Total recoveries
|
285
|
85
|
255
|
287
|
202
|
|||||||||||||||
Charged-off loans
|
||||||||||||||||||||
Commercial
|
(146
|
)
|
(87
|
)
|
(711
|
)
|
(2,258
|
)
|
(546
|
)
|
||||||||||
Residential, 1-4 family
|
(102
|
)
|
(27
|
)
|
(305
|
)
|
(1,249
|
)
|
(27
|
)
|
||||||||||
Nonfarm, nonresidential property
|
(2
|
)
|
(239
|
)
|
(22
|
)
|
(271
|
)
|
(110
|
)
|
||||||||||
Loans to individuals
|
(67
|
)
|
(80
|
)
|
(166
|
)
|
(56
|
)
|
(509
|
)
|
||||||||||
Total charge-off loans
|
(317
|
)
|
(433
|
)
|
(1,204
|
)
|
(3,834
|
)
|
(1,192
|
)
|
||||||||||
Net charge-offs
|
(32
|
)
|
(348
|
)
|
(949
|
)
|
(3,547
|
)
|
(990
|
)
|
||||||||||
Provision for loan losses
|
212
|
320
|
471
|
744
|
3,004
|
|||||||||||||||
Balance at December 31
|
$
|
3,555
|
$
|
3,375
|
$
|
3,403
|
$
|
3,881
|
$
|
6,684
|
||||||||||
Total loans outstanding
|
$
|
193,032
|
$
|
183,015
|
$
|
176,687
|
$
|
179,345
|
$
|
178,432
|
||||||||||
Average outstanding loans during period
|
$
|
186,428
|
$
|
181,895
|
$
|
180,342
|
$
|
180,256
|
$
|
181,184
|
||||||||||
Allowance for loan losses to loans outstanding
|
1.84
|
%
|
1.84
|
%
|
1.93
|
%
|
2.16
|
%
|
3.74
|
%
|
||||||||||
Ratio of net charge-offs to average loans outstanding
|
0.02
|
%
|
0.19
|
%
|
0.53
|
%
|
1.97
|
%
|
0.55
|
%
|
December 31, 2014
|
December 31, 2013
|
December 31, 2012
|
December 31, 2011
|
December 31, 2010
|
||||||||||||||||||||||||||||||||||||
(Dollars in thousands)
|
Amount
|
% of
Total
Loans
|
Amount
|
% of
Total
Loans
|
Amount
|
% of
Total
Loans
|
Amount
|
% of
Total
Loans
|
Amount
|
% of
Total
Loans
|
||||||||||||||||||||||||||||||
Construction and development
|
$
|
160
|
0.08
|
%
|
$
|
73
|
0.04
|
%
|
$
|
86
|
0.05
|
%
|
$
|
103
|
0.06
|
%
|
$
|
119
|
0.06
|
%
|
||||||||||||||||||||
Residential, 1-4 family
|
1,302
|
0.42
|
%
|
618
|
0.34
|
%
|
669
|
0.38
|
%
|
837
|
0.47
|
%
|
1,696
|
0.95
|
%
|
|||||||||||||||||||||||||
Nonfarm, nonresidential property
|
798
|
0.55
|
%
|
753
|
0.41
|
%
|
802
|
0.45
|
%
|
866
|
0.48
|
%
|
1,199
|
0.67
|
%
|
|||||||||||||||||||||||||
Commercial and industrial
|
1,067
|
0.67
|
%
|
1,709
|
0.93
|
%
|
1,605
|
0.91
|
%
|
1,808
|
1.00
|
%
|
3,411
|
1.91
|
%
|
|||||||||||||||||||||||||
Consumer
|
159
|
0.08
|
%
|
181
|
0.10
|
%
|
199
|
0.11
|
%
|
211
|
0.12
|
%
|
206
|
0.12
|
%
|
|||||||||||||||||||||||||
Other
|
69
|
0.04
|
%
|
41
|
0.02
|
%
|
42
|
0.02
|
%
|
56
|
0.03
|
%
|
53
|
0.03
|
%
|
|||||||||||||||||||||||||
Total
|
$
|
3,555
|
1.84
|
%
|
$
|
3,375
|
1.84
|
%
|
$
|
3,403
|
1.93
|
%
|
$
|
3,881
|
2.16
|
%
|
$
|
6,684
|
3.74
|
%
|
1 - 3
Months
|
4 - 12
Months
|
13 - 60
Months
|
Over 60
Months
|
Total
|
||||||||||||||||
Earning Assets
|
||||||||||||||||||||
Loans
|
$
|
40,804,415
|
$
|
22,438,350
|
$
|
88,488,583
|
$
|
41,301,010
|
$
|
193,032,358
|
||||||||||
Investments
|
1,341,007
|
510,101
|
2,506,699
|
5,998
|
4,363,805
|
|||||||||||||||
Interest-bearing balances with banks
|
37,315,779
|
-
|
-
|
-
|
37,315,779
|
|||||||||||||||
Federal funds sold
|
1,212,776
|
-
|
-
|
-
|
1,212,776
|
|||||||||||||||
Total
|
$
|
80,673,977
|
$
|
22,948,451
|
$
|
90,995,282
|
$
|
41,307,008
|
$
|
235,924,718
|
||||||||||
Interest-bearing deposits
|
||||||||||||||||||||
NOW accounts
|
$
|
30,302,622
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
30,302,622
|
||||||||||
Money market
|
32,841,594
|
-
|
-
|
-
|
32,841,594
|
|||||||||||||||
Savings
|
10,551,502
|
-
|
-
|
-
|
10,551,502
|
|||||||||||||||
Certificates of deposit
|
20,894,970
|
29,379,264
|
29,726,938
|
-
|
80,001,172
|
|||||||||||||||
Long-term debt
|
-
|
3,500,000
|
2,750,000
|
-
|
6,250,000
|
|||||||||||||||
Total
|
$
|
94,590,688
|
$
|
32,879,264
|
$
|
32,476,938
|
$
|
-
|
$
|
159,946,890
|
||||||||||
Interest sensitivity gap
|
$
|
(13,916,711
|
)
|
$
|
(9,930,813
|
)
|
$
|
58,518,344
|
$
|
41,307,008
|
$
|
-
|
||||||||
Cumulative interest sensitivity gap
|
$
|
(13,916,711
|
)
|
$
|
(23,847,524
|
)
|
$
|
34,670,820
|
$
|
75,977,828
|
$
|
75,977,828
|
||||||||
Ratio of sensitive assets to sensitive liabilities
|
85.29
|
%
|
69.80
|
%
|
280.18
|
%
|
-
|
%
|
147.50
|
%
|
||||||||||
Cumulative ratio of sensitive assets to sensitive liabilities
|
85.29
|
%
|
81.29
|
%
|
121.68
|
%
|
147.50
|
%
|
147.50
|
%
|
December 31,
|
||||||||||||
2014
|
2013
|
2012
|
||||||||||
Return on average assets
|
1.38
|
%
|
1.22
|
%
|
1.23
|
%
|
||||||
Return on average equity
|
9.65
|
%
|
8.59
|
%
|
8.86
|
%
|
||||||
Average equity to average assets
|
14.30
|
%
|
14.15
|
%
|
13.94
|
%
|
||||||
Dividends declared on common stock as a percent of net income available to common stockholders
|
23.95
|
%
|
27.50
|
%
|
24.53
|
%
|
Edward C. Ashby, III
|
Surrey Bank & Trust
|
Elizabeth Johnson Lovill
|
Town and Country Builders of Mount Airy, Inc.
|
Robert H. Moody
|
Moody Funeral Services, Inc.
|
Gene Rees
|
F. Rees Company, Inc.
|
Tamra W. Thomas
|
Retired
|
Tom G. Webb
|
Westwood Partners, LLC
|
Buddy Williams
|
Ten Oaks, LLC
|
Robert H. Moody
|
Chairman
|
Edward C. Ashby, III
|
President and CEO
|
Peter A. Pequeno
|
Senior Vice President and CLO
|
Mark H. Towe
|
Senior Vice President, Treasurer and CFO
|
John Canosa
|
Vice President
|
Lesa Hensley
|
Vice President
|
William Johnson
|
Vice President
|
Jared Moser
|
Vice President
|
Mark Dodson
|
Vice President
|
J. Cory Tucker
|
Vice President
|
Independent Auditors
|
Stock Transfer Agent
|
Elliott Davis Decosimo, PLLC
|
Broadridge Corporate Issuer Solutions, Inc.
|
Certified Public Accountants
|
51 Mercedes Way
|
700 East Morehead Street, Suite 400
|
Edgewood, NY 11717
|
Charlotte, North Carolina 28202
|
145 North Renfro Street
Mount Airy, North Carolina
(336) 783-3900
|
1280 West Pine Street
Mount Airy, North Carolina
(336) 783-3920
|
940 Woodland Drive
Stuart Virginia
(276) 694-4825
|
2050 Rockford Street
Mount Airy, North Carolina
(336) 783-3940
|
1328 North Bridge Street
Elkin, North Carolina
(336) 526-1803
|
653 South Key Street
Pilot Mountain, North Carolina
(336) 368-1122
|
Freedom Finance, LLC
165 North Renfro Street
Mount Airy, North Carolina
(336) 783-3980
|
SB & T Insurance
199 North Renfro Street
Mount Airy, North Carolina
(336) 783-3939
|
Surrey Investment Services, Inc.
145 North Renfro Street
Mount Airy, North Carolina
(336) 783-3938
|
Name
|
State of Incorporation
|
Surrey Bank & Trust
|
North Carolina
|
(1) | I have reviewed this annual report on Form 10-K of Surrey Bancorp, a North Carolina company (the "registrant"); |
(2) | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
(3) | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
(4) | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal controls over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; and
|
(c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth quarter in case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
(5) | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors: |
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Date: March 27, 2015
|
s/ Edward C. Ashby, III
|
President and Chief Executive Officer
|
|
(Principal Executive Officer)
|
(1) | I have reviewed this annual report on Form 10-K of Surrey Bancorp, a North Carolina company (the "registrant"); |
(2) | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
(3) | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
(4) | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal controls over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; and
|
(c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth quarter in case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
(5) | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors: |
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Date: March 27, 2015
|
s/ Mark H. Towe
|
|
Chief Financial Officer
|
||
(Principal Financial Officer)
|
SURREY BANCORP
|
||
Date: March 27, 2015
|
By:
|
|
s/ Edward C. Ashby, III
|
||
President and Chief Executive Officer
|
||
(Principal Executive Officer)
|
||
Date: March 27, 2015
|
By:
|
|
s/ Mark H. Towe
|
||
Chief Financial Officer
|
||
(Principal Financial Officer)
|
1 Year Surrey Bancorp (PK) Chart |
1 Month Surrey Bancorp (PK) Chart |
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