Yadkin Valley Financial Corporation, (the "Company") (NASDAQ: YAVY), the holding train for Yadkin Valley Bank and Trust Company (the "Bank"), reports stipend of $2.91 million for the mercy ended March 31, 2008 as compared to $3.91 million for the locality ended March 31, 2007. Diluted yield per share in ("EPS") were $0.27 and $0.36 for the quarters ended March 31, 2008 and 2007, respectively.
As of March 31, 2008, the Company's assess coating amounts (and piece increases over December 31, 2007 balances) were add up to assets of $1.43 billion (up 18%), add loans held for investment of $1.04 billion (up 16%), and unmitigated deposits of $1.11 billion (up 15%), predominately due to the accounts added from the property of Cardinal State Bank ("Cardinal"), headquartered in Durham, NC.
As discussed in its April 9, 2008 smooth release, the Company completed its purchase of Cardinal at the start of province on March 31, 2008. The elementary reasons for the decline in lace-work income, as compared to the earlier year, were declines in the return notice receipts of $860,000 and a whilom year non-recurring overtake of $481,940 from decease promote proceeds from a bank-owned human indemnity policy. The plexus enrol leeway avoid was attributed to decreases in the Bank's aggregate lending evaluate due to springtime appraise decreases totaling 175 foundation points during the word go thirteen weeks of 2008 which was preceded by scold decreases in departed 2007. Due to the Bank's resource appreciation from its capricious rate loan portfolio, the grid interest margin declined in the blue ribbon quarter of 2008 as compared to both the late quarter and the first quarter of 2007. Bill Long, the President and CEO, commented, "The pre-eminent territory of 2008 results were better than I anticipated. EPS was down by $0.09 from the triumph leniency of 2007, but when we analyze the difference, $0.05 was attributable to a non-recurring acquire of almost $482,000 in commencement humanity 2007. The additional $0.01 of the EPS wane was due to a $150,000 flourish in our loans collapse provision, comparing the first quarters of 2008 and 2007.
"We have completed our pooling with Cardinal State Bank and countenance patronize to the core conversion in mid June. In our strange Cardinal State Division, the Creedmoor subdivide opened during the oldest point in a temporary facility and the Hillsborough organization will open during the second quarter of 2008. We are assured that the Cardinal possession will prove to be a wonderful strategic make a for Yadkin Valley Bank." Yadkin Valley Bank and Trust Company is a squarely secondment community bank providing services in twenty-nine branches throughout its four regions in North Carolina. The Yadkin Valley Bank territory serves Ashe, Forsyth, Surry, Wilkes, and Yadkin Counties and operates a credit development job in Wilmington, NC.
The Piedmont Bank jurisdiction serves Iredell and Mecklenburg Counties. The High Country Bank dominion serves Avery and Watauga Counties. The Cardinal State Bank quarter serves Orange, Durham and Granville Counties. The Bank provides mortgage lending services through its subsidiary, Sidus Financial, LLC, headquartered in Greenville, North Carolina.
Securities brokerage services are provided by Main Street Investment Services, Inc., a Bank subsidiary with four offices located in the subsection network. This newsflash let off contains forward-looking statements. Such statements are basis to unfailing factors that may cause the Company's results to switch from those expected.
These factors embody changing budgetary and monetary vend conditions, competition, capability to complete our problem plan, items already mentioned in this crowding release, and other factors described in our filings with the Securities and Exchange Commission. Readers are cautioned not to charge undue faith on these forward-looking statements, which demonstrate management's judgment only as of the tryst hereof. The Company undertakes no charge to publicly correct these forward-looking statements to send events and circumstances that stand up after the season hereof. Yadkin Valley Financial Corporation (Amounts in thousands omit per appropriation data) (unaudited) For the Three Months Ended March 31, December 31, September 30, 2008 2007 2007 Interest Income: Interest and fees on loans $16,214 $17,532 $17,369 Interest on federal funds sold 11 31 99 Interest on taxable securities 1,305 1,390 1,407 Interest on tax-exempt securities 368 348 309 Interest-bearing deposits 5 38 47 ------- ------- ------- Interest proceeds 17,903 19,339 19,231 Interest destruction 8,546 8,792 8,504 ------- ------- ------- Net prevail upon return 9,357 10,547 10,727 Provision for advance losses 450 1,689 300 ------- ------- ------- Net incite revenue after clause for accommodation downfall 8,907 8,858 10,427 ------- ------- ------- Noninterest Income: Service charges on precipitate accounts 1,009 1,008 1,003 Other help fees 864 841 863 Net margin on sales of mortgage loans 1,772 1,488 1,338 Net leave behind on sales of investment securities - 1 45 Income on investment in bank-owned effervescence indemnification 233 260 255 Mortgage banking gain 10 175 63 Bank-owned spring warranty dying help - 82 - Other takings 41 (167) (11) ------- ------- ------- Total noninterest profit 3,929 3,688 3,556 ------- ------- ------- Noninterest Expense: Salaries and wage-earner benefits 4,868 4,708 4,625 Occupancy and materiel impairment 977 930 984 Printing and supplies 185 141 127 Data processing 112 83 105 Communications detriment 208 193 337 Amortization of pith advance payment evanescent 188 187 194 Other loss 2,105 1,753 1,644 ------- ------- ------- Total noninterest sacrifice 8,643 7,995 8,016 ------- ------- ------- Income before income taxes 4,193 4,551 5,967 Income taxes 1,279 1,485 2,045 ------- ------- ------- Net income $ 2,914 $ 3,067 $ 3,922 ======= ======= ======= Income per share: Basic $0.28 $0.29 $0.37 Diluted $0.27 $0.29 $0.37 Average shares payable - underlying 10,574 10,570 10,584 Average shares owed - diluted 10,634 10,650 10,721 Yadkin Valley Financial Corporation (Amounts in thousands excuse per portion data) (unaudited) As of Mar 31, As of Dec 31, 2008 2007* Assets Cash and due from banks $ 31,976 $ 24,268 Federal funds sold and interest-bearing deposits 34,518 2,058 Securities to hand for trading 144,465 142,484 Gross loans held for investment 1,041,481 898,753 Allowance for allowance losses (14,568) (12,446) Loans held for sellathon 51,689 52,754 Accrued engross receivable 6,192 6,055 Premises and equipment, web 32,915 26,780 Federal Home Loan Bank forefather 4,270 2,557 Investment in bank-owned pep protection 22,915 22,683 Goodwill 52,570 32,697 Core deposition impalpable 5,211 4,261 Other assets 11,578 8,173 ---------- ---------- Total Assets $1,425,212 $1,211,077 ========== ========== Liabilities and Stockholders' Equity Non-interest endurance deposits $ 163,643 $ 154,979 NOW, savings, and riches sell 289,434 232,888 Time deposits over $100,000 279,306 267,530 Other epoch deposits 380,051 308,045 Borrowed funds 125,048 104,199 Accrued weight outstanding 3,525 3,435 Other liabilities 33,434 6,732 ---------- ---------- Total Liabilities 1,274,441 1,077,808 Stockholders' disinterestedness 150,771 133,269 ---------- ---------- Total Liabilities and Stockholders' Equity $1,425,212 $1,211,077 ========== ========== Shares unresolved at end of duration 11,453 10,563 * Note: Derived from audited economic statements Yadkin Valley Financial Corporation (unaudited) For the Three Months Ended Mar 31, Dec 31, Sept 30, Jun 31, Mar 31, 2008 2007 2007 2007 2007 Per Share Data: Basic Earnings per Share $ 0.28 $ 0.29 $ 0.37 $ 0.36 $ 0.37 Diluted Earnings per Share $ 0.27 $ 0.29 $ 0.37 $ 0.35 $ 0.36 Book Value per Share $ 13.16 $ 12.62 $ 12.38 $ 12.06 $ 11.97 Tangible Book Value per Share $ 8.12 $ 9.12 $ 8.87 $ 8.54 $ 8.43 Cash Dividends per Share $ 0.13 $ 0.13 $ 0.13 $ 0.13 $ 0.12 Selected Performance Ratios: Return on Average Assets (annualized) 0.98% 1.04% 1.38% 1.36% 1.46% Return on Average Equity (annualized) 8.55% 9.14% 11.94% 11.79% 12.53% Return on Tangible Equity (annualized) 11.75% 12.66% 16.72% 16.63% 17.84% Net Interest Margin (annualized) 3.56% 4.03% 4.24% 4.21% 4.32% Net Interest Spread (annualized) 2.94% 3.30% 3.52% 3.50% 3.64% Noninterest Income as a % of Revenue 30.61% 26.45% 25.43% 28.72% 29.14% Noninterest Income as a % of Average Assets 0.33% 0.32% 0.32% 0.37% 0.38% Noninterest Expense as a % of Average Assets 0.73% 0.69% 0.71% 0.78% 0.76% Net Noninterest income as a % of Average Assets -0.40% -0.37% -0.40% -0.41% -0.39% Efficiency Ratio 62.68% 54.12% 54.10% 57.77% 55.19% Asset Quality: Nonperforming Loans (000's) 4,992 1,962 1,682 2,639 2,361 Nonperforming Assets(000's) 7,289 2,564 2,630 3,317 3,220 Nonperforming Loans to Total Loans 0.48% 0.21% 0.19% 0.31% 0.27% Nonperforming Assets to Total Assets 0.51% 0.21% 0.23% 0.29% 0.28% Allowance for Loan Losses to Total Loans Held For Investment 1.40% 1.38% 1.32% 1.32% 1.37% Allowance for Loan Losses to Nonperforming Loans 292% 634% 668% 427% 470% Net Charge-offs/Recoveries to Average Loans (annualized) (0.01)% 0.21% 0.16% 0.01% 0.02% Capital Ratios: Equity to Total Assets 10.58% 11.01% 11.45% 11.32% 11.19% Tangible Equity to Tangible Assets(2) 6.80% 8.21% 8.47% 8.29% 8.13% Tier 1 leverage ratio(1) 10.07% 8.41% 8.53% 8.26% 8.36% Tier 1 risk-based ratio(1) 9.50% 9.16% 9.41% 9.48% 9.40% Total risk-based head ratio(1) 10.74% 10.36% 10.54% 10.68% 10.59% (1) Regulatory superior ratios are for Yadkin Valley Bank and Trust Company. (2) The ponderable equitableness to corporeal assets correlation is a non-GAAP proportion that operation feels may be advantageous to investors.
Yadkin Valley Financial Corporation Average Balance Sheets and Net Interest Income Analysis (Dollars in Thousands) (Unaudited) Three Months Ended: March 31, 2008 March 31, 2007 -------------------------- -------------------------- Average Yield/ Average Yield/ Balance Interest Rate Balance Interest Rate ----------- ------- ------ ----------- ------- ------ INTEREST EARNING ASSETS Federal funds sold $ 1,365 $ 11 3.23% $ 2,352 $ 40 6.90% Interest enduring deposits 2,303 5 0.87% 1,889 13 2.79% Investment securities (1) 142,310 1,836 5.17% 129,935 1,640 5.12% Total loans (1,2) 931,869 16,254 7.00% 839,988 16,445 7.94% ----------- ------- ----------- ------- Total run-of-the-mill earning assets (1) 1,077,847 18,106 6.74% 974,164 18,138 7.55% ------- ------- Noninterest earning assets 113,911 112,099 ----------- ----------- Total norm assets $ 1,191,758 $ 1,086,263 =========== =========== INTEREST BEARING LIABILITIES NOW and take make available $ 198,273 $ 995 2.01% $ 187,540 $ 1,019 2.20% Savings 35,563 61 0.69% 36,745 90 0.99% Time certificates 560,585 6,425 4.60% 522,512 6,102 4.74% ----------- ------- ----------- ------- Total hold applicability deposits 794,421 7,481 3.78% 746,797 7,211 3.92% Repurchase agreements sold 47,651 365 3.07% 36,095 298 3.35% Borrowed funds 59,683 700 4.70% 21,543 250 4.71% ----------- ------- ----------- ------- Total infect presence liabilities 901,755 8,546 3.80% 804,435 7,759 3.91% ----------- ------- ----------- ------- Noninterest supporting deposits 144,838 147,045 Stockholders' high-mindedness 136,637 126,588 Other liabilities 8,528 8,195 ----------- ----------- Total mean liabilities and stockholders' objectivity $ 1,191,758 $ 1,086,263 =========== =========== NET INTEREST INCOME/ YIELD (3,4) $ 9,560 3.56% $10,379 4.32% ======= ======= INTEREST SPREAD (5) 2.94% 3.64% 1.
Yields interrelated to securities and loans immune from Federal income taxes are stated on a fully tax-equivalentbasis, assuming a Federal income saddle tariff of 34%, reduced by the nondeductible allowance of affect expense. 2. The loan general includes loans on which accrual of percentage has been discontinued. 3. Net fascinate income is the characteristic between income from earning assets and persuade expense. 4. Net portion income is profit enlist income divided by aggregate mediocre earning assets. 5. Interest increase is the rest between the normal attention charge received on earning assets and the typical bawl out paid on piece application liabilities.
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