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Surrey Bancorp income down

Surrey Bancorp (Pink Sheets: SRYB), the holding company for Surrey Bank & Trust (the “Bank”), this week reported net income of $1,487,503 or 36 cents per fully diluted common share. That was down nearly 25% from the same figures a year ago — $1,987,375 or 48 cents per share — from the same period a year ago.

The bank said the drop was largely because the bank realized non-interest income of $858,778 in the first quarter of 2021 with the sale of its wholly owned insurance agency, SB&T Insurance.

First quarter net interest income for the present year decreased 3.6% from $3,392,180 to $3,271,453. The net interest margin decreased from 3.24% to 2.86% due to a general decrease in interest rates and a change in earning asset mix, bank officials said.

“Higher yielding loans made up 60.5% of average interest earning assets in the first quarter of 2021 as opposed to 53.3% (this year),” the bank noted.

Noninterest income decreased from $1,420,337 in the first quarter of 2021 to $375,109 during the same period in 2022. The decrease is due to the sale of SB&T Insurance.

For more information on the banking company, or a full look at its first-quarter report, visit www.surreybank.com

Insteel sees record earnings

Insteel Industries Inc. (NYSE: IIIN) recently released its second quarter results, showing record net earnings, more than doubling figures recorded over the same period in 2021.

For the quarter ending April 2, Insteel reported quarterly net of $39 million, or $1.99 per diluted share, up from $14.9 million, or 76 cents per share, for the same period a year ago.

The company benefited from strong demand for its reinforcing products and incremental price increases to recover the continued escalation in costs.

Net sales increased to $213.2 million from $139 million for the prior year quarter driven by a 65.4% increase in average selling prices and a 7.2% decrease in shipments. The average selling price increase was the result of price increases implemented across all product lines during the quarter to recover rapidly escalating costs, which offset the impact of lower shipments resulting from tight supply conditions for raw materials.

The company reported gross profit increased to $57.1 million from $30.2 million in the prior quarter. Operating activities provided $6.3 million of cash compared with providing $15.3 million for the prior year quarter due to an increase in net working capital, which used $32.6 million of cash in the current year quarter. In the prior year quarter, net working capital used $800,000.

The strong quarter helped fuel an equally strong six-month year-to-date period, with net earnings for the first six months of fiscal year 2022 $62.1 million, or $3.17 per diluted share. That is more than double the previous year figures, which were $23.1 million, or $1.18 per share, for the same period a year ago.

Net sales increased to $391.7 million from $258.6 million for the prior year period driven by a 67.5% increase in average selling prices and a 9.5% decrease in shipments. Gross profit increased to $99.4 million from $50.1 million in the same

period a year ago.

For more information, visit https://www.insteel.com/

First Community Bank

BLUEFIELD, VA – First Community Bankshares, Inc. (NASDAQ: FCBC) this week reported quarterly income of $9.52 million, or 56 cents per diluted common share, for the quarter ending March 31, a sharp decrease from the $14.61 million reported for the same period a year ago. Despite the drop, the bank declared a 27-cent quarterly cash dividend to common shareholders, an increase of 8% over the dividend paid during the same quarter last year.

The dividend is payable to common shareholders of record on May 6, and is expected to be paid on or about May 20.

The bank said the net income decrease was primarily driven by a return to “more normalized expense in the provision for credit losses of $1.96 million for the first quarter of 2022 compared to a $4 million reversal of provision in the first quarter of 2021.”

The bank said the current year provision is largely due to robust loan growth in the first quarter, principally led by commercial loan demand. The reversal of provision in the first quarter of 2021 was driven by a significantly improved economic outlook than in early 2020.

Salaries and employee benefits increased $787,000 or 7.23%, from last year. During the quarter, the company implemented annualized wage increases of approximately $2.5 million “as part of its ongoing strategic initiative to enhance Human Capital Management, which included an increased minimum wage.”

The Company’s loan portfolio increased by $78.73 million, or an annualized growth rate of 14.74%, during the first quarter this year. “Loan demand and origins were strong in all categories, including construction, commercial real estate, residential, and consumer loans,” bank officials said.

The bank also reported it repurchased 132,000 common shares for $4.09 million during the quarter.

For more information visit www.firstcommunitybank.com

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