Surrey Bancorp Reports Third Quarter Net Income of $527,551

MOUNT AIRY, N.C., Oct. 29 /PRNewswire-FirstCall/ -- Surrey Bancorp (the
"Company", OTC Bulletin Board: SRYB), the holding company for Surrey Bank &
Trust, today reported earnings for the third quarter of 2009.

For the quarter ended September 30, 2009, net income totaled $527,551 or $0.14
per fully diluted share, compared with $456,726, or $0.13 per fully diluted
common share earned during the third quarter of 2008.

The increase in earnings results from an increase in net interest income. Net
interest income increased 10.8 percent from $1,796,823 in the third quarter of
2008 to $1,990,519 for the same period in 2009. The continued reduction of
deposit costs during the third quarter was largely responsible for the
improvement in the margin. The provision for loan losses increased from
$161,791 in the third quarter of 2008 to $261,001 for the same period in 2009.
The increase in the loan loss provision results from a continued weakness in
the economy which necessitated an increase in reserves associated with
impaired loans. Noninterest income remained relatively unchanged, decreasing
0.3 percent to $591,083, compared to $592,490 reported for the quarter ended
September 30, 2008. Noninterest expenses decreased slightly from $1,536,756 in
the third quarter of 2008, to $1,528,005 in the third quarter of 2009, or 0.6
percent. This decrease is due to small decreases in salaries, employee
benefits, and equipment expenses.

Loan loss reserves were $4,101,870 or 2.28 percent of total loans as of
September 30, 2009. Non-performing assets were 0.40 percent of total assets at
September 30, 2009, compared to 0.28 percent on that date in 2008. At
September 30, 2009, the allowance for loan loss reserves equals 118 percent of
impaired and non-performing assets, net of government guarantees.

Total assets were $213,182,780 as of September 30, 2009, an increase of 3.7
percent from $205,527,349 reported as of September 30, 2008. Total deposits
were $169,079,189 at quarter-end 2009, a 1.5 percent increase from the
$166,528,950 reported at the end of the third quarter of 2008. Net loans
increased 2.8 percent to $175,727,802, compared to $170,883,912 at September
30, 2008.

Net income for the nine months ended September 30, 2009, was $1,929,370, or
$0.51 per diluted share, compared to $1,295,869, or $0.36 per diluted share,
for the same period in 2008.

About Surrey Bancorp
Surrey Bancorp is the bank holding company for Surrey Bank & Trust (the
"Bank") and is located at 145 North Renfro Street, Mount Airy, North Carolina.
The Bank operates full service branch offices at 145 North Renfro Street, 1280
West Pine Street and 2050 Rockford Street in Mount Airy. Full-service branch
offices are also located at 653 South Key Street in Pilot Mountain, North
Carolina, and 940 Woodland Drive in Stuart, Virginia.

Surrey Bank & Trust is engaged in the sale of insurance through its wholly
owned subsidiary, SB&T Insurance, located at 199 North Renfro Street in Mount
Airy. The Bank also owns Surrey Investment Services, Inc., which provides
full-service brokerage and investment advice through an association with UVest
Financial Services, and Freedom Finance, LLC, a sales finance company located
at 165 North Renfro Street in Mount Airy.

Surrey Bank & Trust can be found online at www.surreybank.com.

Non-GAAP Financial Measures
This report refers to the overhead efficiency ratio, which is computed by
dividing non-interest expense by the sum of net interest income and
non-interest income. This is a non-GAAP financial measure that we believe
provides investors with important information regarding our operational
efficiency. Comparison of our efficiency ratio with those of other companies
may not be possible, because other companies may calculate the efficiency
ratio differently. Such information is not in accordance with generally
accepted accounting principles in the United States (GAAP) and should not be
construed as such. Management believes such financial information is
meaningful to the reader in understanding operating performance, but cautions
that such information not be viewed as a substitute for GAAP. Surrey Bancorp,
in referring to its net income, is referring to income under GAAP.

Forward Looking Statements
Information in this press release contains "forward-looking statements." These
statements involve risks and uncertainties that could cause actual results to
differ materially, including without limitation, the effects of future
economic conditions, governmental fiscal and monetary policies, legislative
and regulatory changes, the risks of changes in interest rates and the effects
of competition. Additional factors that could cause actual results to differ
materially are discussed in Surrey Bancorp's recent filings with the
Securities and Exchange Commission, included but not limited to its Annual
Report on Form 10-K and its other periodic reports.

SURREY BANCORP
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Dollars in thousands, except per share amounts)

September December September
30, 2009 31, 2008 30, 2008
-------- -------- --------
(unaudited) (unaudited)
Total assets $213,183 $204,178 $205,527
Total loans 179,830 175,446 173,933
Investments 24,113 19,912 21,535
Deposits 169,079 163,747 166,529
Borrowed funds 13,950 12,440 12,675
Stockholders' equity 28,230 24,383 24,165
Non-performing
assets to total
assets 0.40 % 0.29 % 0.28 %
Loans past due more
than 90 days to
total loans 0.06 % 0.02 % 0.01 %
Allowance for loan
losses to total
loans 2.28 % 1.92 % 1.75 %
Book value per
common share $7.39 $6.87 $6.80

SURREY BANCORP
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Dollars in thousands, except per share amounts)

For the Three For the Nine
Months Ended Months Ended
September 30, September 30,
------------ ------------
2009 2008 2009 2008
---- ---- ---- ----
Interest income $2,756 $3,098 $8,061 $9,536
Interest expense 766 1,302 2,523 4,275
Net interest
income 1,990 1,796 5,538 5,261
Provision for loan
losses 261 161 1,015 397
Net interest
income after
provision for
loan losses 1,729 1,635 4,523 4,864
Noninterest income 591 592 2,738 1,742
Noninterest
expense 1,528 1,537 4,908 4,659
Net income before
taxes 792 690 2,353 1,947
Provision for
income taxes 265 234 423 651
Net income 527 456 1,930 1,296
Preferred stock
dividend declared 65 30 192 89
Net income
available to
common
shareholders $462 $426 $1,738 $1,207
Basic net income
per share $0.14 $0.13 $0.54 $0.38
Diluted net income
per share $0.14 $0.13 $0.51 $0.36
Return on average
total assets * 1.00 % 0.89 % 1.24 % 0.85 %
Return on average
total equity * 7.51 % 7.60 % 9.40 % 7.32 %
Yield on average
interest earning
assets 5.45 % 6.37 % 5.46 % 6.56 %
Cost of funds 1.69 % 2.92 % 1.88 % 3.20 %
Net yield on
average interest
earning assets 3.94 % 3.69 % 3.75 % 3.62 %
Overhead
efficiency ratio 59.19 % 64.32 % 59.31 % 66.52 %
Net charge-offs/average
loans 0.06 % 0.03 % 0.16 % 0.08 %

* annualized for all periods presented

SOURCE Surrey Bank & Trust

Ted Ashby, CEO, or Mark Towe, CFO of Surrey Bancorp, +1-336-783-3900