Parent Company Activity (Tables)

12 Months Ended

Dec. 31, 2014

Parent Company Activity [Abstract]

Summary of Condensed Balance Sheet

Surrey Bancorp owns all of the outstanding shares of the Bank. Condensed financial statements of Surrey Bancorp follow:

Condensed Balance Sheets

December 31, 2014 and 2013

	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

Summary of Condensed Statements of Income

Condensed Statements of Income

For the years ended December 31, 2014 and 2013

	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

Summary of Condensed Statements of Cash Flows

Condensed Statements of Cash Flows

For the years ended December 31, 2014 and 2013

	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