Surrey Bancorp reported a 31 percent increase in earnings for the third quarter, led by an increase in net interest income and a reduction in the provision for loan losses, the company said in a statement Wednesday.

The Mount Airy-based bank reported net income of $1.68 million, or 40 cents per share, up from $1.28 million, or 31 cents per share, in the third quarter of 2018.

Net interest income increased to $3.66 million from $3.27 million in the same quarter a year ago. The provision for loan losses improved to a provision recapture of $131,847 this quarter from a provision of $122,398 last year.

Noninterest income decreased to $619,031 in the third quarter of 2019 from $694,200 in the third quarter of 2018

Surrey Bancorp is the bank holding company for Surrey Bank & Trust. Surrey Bank & Trust has seven branches in North Carolina and Virginia.

Surrey Bancorp shares were trading at $14.27 on Wednesday, up 14 cents.