Yadkin Valley Financial Corporation Announces Third Quarter 2009 Results
More News related to YAVY
- Yadkin Valley Financial Corporation Announces Third Quarter 2009 Results
- Yadkin Valley Financial Corporation Announces Date for Third Quarter 2009 Financial Results and Conference Call
- Yadkin Valley Financial (YAVY) Announces Suspension of Quarterly Dividend
- Yadkin Valley Financial (YAVY) Names New CFO
- Yadkin Valley Financial (YAVY) Approves $0.06 Per Share Quarterly Dividend
ELKIN, NC -- (MARKET WIRE) -- 10/22/09 -- Yadkin Valley Financial Corporation (NASDAQ: YAVY)
Third Quarter Financial Highlights:
-- Tier 1, tier 1 risk based capital, and total risk based capital ratios
of 7.83%, 9.31%, and 10.53%, respectively for the bank holding company as
reported to the Federal Reserve
-- Provision for loan losses of $18.3 million, an increase of $1.8
million compared to the second quarter 2009
-- Loan loss reserves increased to 3.21% of total gross loans or 3.30% of
total loans held for investment, compared to 2.62% of total gross loans or
2.82% of total loans held for investment in the second quarter 2009
-- Nonperforming loans increased to 2.70% of total gross loans from 1.82%
in the second quarter 2009
-- Nonperforming assets increased to 2.68% of total assets from 1.84% in
the second quarter 2009
-- Net charge-offs increased to $10.3 million or 2.39% of average loans
on an annualized basis, compared to $1.1 million or 0.27% on an annualized
basis in the second quarter 2009
-- Net interest margin was 3.82%, an increase of six basis points
compared to 3.76% in the second quarter
-- Net loss of $68.7 million or $4.26 per diluted share (including
preferred dividends), which includes a non-cash goodwill impairment charge
of $61.6 million
-- Excluding the goodwill impairment charge, the third quarter net loss
was $7.1 million or $0.44 per diluted share
Yadkin Valley Financial Corporation (NASDAQ: YAVY), the holding company for Yadkin Valley Bank and Trust Company, announced financial results for the third quarter ended September 30, 2009. The Company reported a net loss to common shareholders of $68.7 million or $4.26 per diluted share. The net loss primarily reflects a goodwill impairment charge of $61.6 million to write off the majority of the Company's goodwill which has accumulated with each acquisition beginning in 2002. This charge is a non-cash accounting transaction that will not impact cash flows, liquidity, tangible capital ratios, and the Company's ability to conduct business and is primarily due to the current state of the financial markets and Yadkin Valley's stock price performance during 2009. The remaining goodwill of $4.9 million at September 30, 2009 is related to the acquisition of Sidus Financial, LLC, the Company's mortgage subsidiary. Excluding the impact of the goodwill impairment charge, the net loss for the third quarter of 2009 was $7.1 million or $0.44 per diluted share. This compares to a net loss of $7.1 million or $0.46 per diluted share in the second quarter of 2009.
Bill Long, President and CEO commented, "Our third quarter results were most significantly impacted by the $61.6 million goodwill impairment charge. As time progressed and bank stock valuations did not recover, we were compelled to evaluate our goodwill under the assumption that our share price would not recover from this unprecedented economic environment as quickly as we had originally anticipated. Accordingly, the goodwill impairment charge was necessary given the prolonged downturn in the economy.
"As we had anticipated, net charge-offs during the third quarter increased compared to the first half of 2009, and our elevated level of provision for loan losses was primarily due to an increase in recent charge-off activity. We continued to conservatively examine our loan portfolio during the third quarter, with a particular emphasis on real estate loans, and recorded write-downs on our nonperforming loans to net realizable values. The majority of the net charge-off activity that occurred during the third quarter was related to residential construction loans, and included the charge-off of one loan related to the lumber industry. We expect fourth quarter net charge-off activity to be similar to third quarter levels as we continue to aggressively work through our problem assets so that we can return to our focus on growth by early 2010.
"We are confident that the steps we are taking today to manage and work through our problem assets will allow us to emerge from the current credit cycle well-positioned to take advantage of the unique opportunities available across our markets. We are well-capitalized for regulatory purposes both at the bank and holding company level, and will continue to evaluate a number of capital raising options which would increase our already strong regulatory capital levels, support our growth initiatives, and absorb loan losses."
Third Quarter 2009 Financial Highlights
Asset Quality
Nonperforming loans increased by $13.7 million to $45.7 million, or 2.70% of total gross loans, compared to $32.0 million, or 1.82% of total gross loans, as of the second quarter of 2009. The majority of the increase was due to the addition of $24.7 million in nonaccrual loans, which were primarily commercial real estate and land development loans, seven of which were in excess of $1.0 million. These increases were partially offset by $5.1 million in loans charged-off, $3.9 million in loans transferred to other real estate owned, and $700,000 in loans moved out of nonaccrual status at the end of the third quarter.
Nonperforming Loan Analysis
(Dollars in thousands)
Third Quarter 2009 Second Quarter 2009
------------------- -------------------
% of % of
Oustanding Total Oustanding Total
Loan Type Balance Loans Balance Loans
---------- ------- ---------- -------
Construction/land development $ 7,611 0.45% 7,567 0.43%
Residential construction 15,550 0.92% 8,415 0.48%
HELOC 1,425 0.08% 1,229 0.07%
1-4 Family residential 6,784 0.40% 2,754 0.16%
Multifamily residential - 0.00% - 0.00%
Commercial real estate 9,115 0.54% 8,177 0.46%
Commercial & industrial 4,390 0.26% 3,583 0.20%
Consumer & other 810 0.05% 282 0.02%
---------- ------- ---------- -------
Total $ 45,685 2.70% $ 32,008 1.82%
---------- ------- ---------- -------
Other real estate owned (OREO) totaled $9.4 million at the end of the third quarter, up from $7.8 million in the second quarter. The increase in OREO was primarily due to the addition of 15 properties, primarily commercial construction projects, commercial real estate, and 1-4 family residences totaling $4.7 million, offset by sales of $1.8 million and write-downs of $1.2 million. Total nonperforming assets were $55.1 million, or 2.68% of total assets, up from $39.8 million, or 1.84% of total assets, as of June 30, 2009.
During the third quarter of 2009, the provision for loan losses increased $1.8 million to $18.3 million compared to the second quarter. The allowance for loan losses increased to $54.3 million, an increase of $8.1 million compared to $46.2 million in the second quarter. Net charge-offs totaled 2.39% of average loans on an annualized basis compared to 0.27% on an annualized basis during the second quarter. Loan loss reserves as a percentage of total gross loans increased to 3.21%, up from 2.62% in the second quarter, and 3.30% of total loans held for investment, up from 2.82% in the second quarter. Loan loss reserves were 1.19 times nonperforming loans, a decrease from 1.44 times in the second quarter.
Out of the $54.3 million in total allowance for loans losses at September 30, 2009, the specific allowance for impaired loans accounted for $11.4 million, down from $12.0 million at the end of the second quarter. The remaining general allowance, $42.9 million, was attributed to unimpaired loans and was up from $34.2 million at the end of the second quarter. This increase in the general allowance was driven primarily by increased recent charge-offs.
Net Interest Income and Net Interest Margin
Net interest income totaled $18.4 million, an increase of $800,000 compared to the second quarter of 2009. The increase in net interest income is due to a 3% increase in average earning assets and a six basis point improvement in the net interest margin to 3.82% from 3.76% in the second quarter as deposits and borrowings repriced lower to a slightly greater extent than interest earning assets. The net interest margin was positively impacted by adjustments to assets and liabilities to their fair market values as part of purchase accounting treatment relating to the merger with American Community Bank. Excluding these fair market value adjustments, the core net interest margin was 2.93%, an increase of three basis points compared to the second quarter.
Non-Interest Income
Non-interest income decreased 39% to $4.6 million, compared to $7.6 million in the second quarter of 2009. The sequential decrease in non-interest income was primarily due to a 43% decrease in gains on mortgage loan sales related to a decrease in mortgage refinance activity as mortgage rates increased during the quarter. Also impacting non-interest income was a $1.2 million loss on the write-down and sale of other real estate owned.
Non-Interest Expense
Non-interest expense increased by $58.7 million to $77.7 million, compared to $19.0 million in the second quarter of 2009. The increase was primarily due to the non-cash goodwill impairment charge of $61.6 million. Excluding the goodwill impairment charge, non-interest expense decreased 15% due to a decrease of merger-related expenses of $1.9 million and a decrease in FDIC expense of $800,000 due to industry wide one-time assessments recorded in the second quarter.
Balance Sheet and Capital
Compared to the second quarter of 2009, total gross loans and deposits decreased 4% and 2%, respectively, while loans held for investment remained relatively flat. Loan growth within the Company's Yadkin region, primarily in the commercial real estate and commercial and industrial portfolios, slightly offset a modest decrease in loan balances within the American Community region, while loan growth remained flat within the Company's remaining regions due to continued slow loan demand from quality loan applicants. The decrease in total gross loans was primarily attributable to a lower level of loans held for sale due to a decreased amount of mortgage refinance activity at Sidus as mortgage rates increased slightly during the quarter. The decrease in total deposits was related to runoff of higher cost CDs combined with the continued focus on lower cost deposit gathering as part of the Company's strategy to reduce liability costs and improve the funding mix and net interest margin.
The Company remains well-capitalized for regulatory purposes. As of September 30, 2009, the Company's Tier 1, tier 1 risk based capital, and total risk based capital ratios were 7.83%, 9.31% and 10.53%, respectively.
Conference Call
Yadkin Valley Financial Corporation will host a conference call at 10:00 a.m. EDT to discuss financial results, business highlights, and outlook. The call may be accessed by dialing 888-256-9119 at least 10 minutes prior to the call. A webcast of the call may also be accessed at http://investor.shareholder.com/media/eventdetail.cfm?mediaid=39293&c=YAVY&mediakey=565D0C649398A72B1B53DCAC8577A3FD&e=0 (Due to its length, this URL may need to be copied and pasted into your Internet browser's address field. Remove the extra space if one exists.) A replay of the conference call will be available until October 29 by dialing 888-203-1112 and entering access code 8422505.
About Yadkin Valley Financial Corporation
Yadkin Valley Financial Corporation is the holding company for Yadkin Valley Bank and Trust Company, a full service community bank providing services in 42 branches throughout its five regions primarily in North Carolina. The Yadkin Valley Bank region serves Ashe, Forsyth, Surry, Wilkes, and Yadkin Counties. The Piedmont Bank region serves Iredell and Mecklenburg Counties. The High Country Bank region serves Avery and Watauga Counties. The Cardinal State Bank region serves Durham, Orange, and Granville Counties. The American Community Bank region serves Mecklenburg and Union Counties in North Carolina, and Cherokee and York Counties in South Carolina. The Bank provides mortgage lending services through its subsidiary, Sidus Financial, LLC, headquartered in Greenville, North Carolina and operates a loan production office in Wilmington, NC. Securities brokerage services are provided by Main Street Investment Services, Inc., a Bank subsidiary with five offices located in the branch network. Yadkin Valley Financial Corporation's website is www.yadkinvalleybank.com. Yadkin Valley shares are traded on NASDAQ under the symbol YAVY.
FORWARD LOOKING STATEMENTS
Certain statements in this news release contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to future plans and expectations, and are thus prospective. Such forward-looking statements include but are not limited to (1) statements regarding potential future economic recovery, (2) statements with respect to our plans, objectives, expectations and intentions and other statements that are not historical facts, and (3) other statements identified by words such as "believes," "expects," "anticipates," "estimates," "intends," "plans," "targets," and "projects," as well as similar expressions. Such statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Although we believe that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove to be inaccurate. Therefore, we can give no assurance that the results contemplated in the forward-looking statements will be realized. The inclusion of this forward-looking information should not be construed as a representation by our company or any person that the future events, plans, or expectations contemplated by our company will be achieved.
The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements: (1) competitive pressures among depository and other financial institutions may increase significantly and have an effect on pricing, spending, third-party relationships and revenues; (2) the strength of the United States economy in general and the strength of the local economies in which we conduct operations may be different than expected resulting in, among other things, a deterioration in the credit quality or a reduced demand for credit, including the resultant effect on the company's loan portfolio and allowance for loan losses; (3) the rate of delinquencies and amounts of charge-offs, the level of allowance for loan loss, the rates of loan growth, or adverse changes in asset quality in our loan portfolio, which may result in increased credit risk-related losses and expenses; (4) changes in the U.S. legal and regulatory framework; and (5) adverse conditions in the stock market, the public debt market and other capital markets (including changes in interest rate conditions) could have a negative impact on the company. Additional factors that could cause our results to differ materially from those described in the forward-looking statements can be found in our reports (such as Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K) filed with the SEC and available at the SEC's Internet site (http://www.sec.gov). All subsequent written and oral forward-looking statements concerning the company or any person acting on its behalf is expressly qualified in its entirety by the cautionary statements above. We do not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements are made.
Yadkin Valley Financial Corporation
Condensed Consolidated Statements of Income (Loss)
(unaudited)
($ in thousands except share and per share data)
For the Three Months Ended
----------------------------------
Sept. 30, June 30, Sept. 30,
2009 2009 2008
---------- ---------- ----------
INTEREST INCOME:
Interest and fees on loans $ 24,731 $ 23,936 $ 17,552
Interest on federal funds sold 19 1 8
Interest and dividends on securities:
Taxable 1,311 1,363 1,335
Non-taxable 566 513 382
Interest-bearing deposits 10 10 161
---------- ---------- ----------
TOTAL INTEREST INCOME 26,637 25,823 19,438
---------- ---------- ----------
INTEREST EXPENSE:
Time deposits of $100,000 or more 4,517 3,734 2,951
Other interest bearing deposits 3,005 3,753 4,594
Borrowed funds 734 782 1,268
---------- ---------- ----------
TOTAL INTEREST EXPENSE 8,256 8,269 8,813
---------- ---------- ----------
NET INTEREST INCOME 18,381 17,554 10,625
PROVISION FOR LOAN LOSSES 18,286 16,457 1,334
---------- ---------- ----------
NET INTEREST INCOME AFTER PROVISION FOR
LOAN LOSSES 96 1,097 9,291
---------- ---------- ----------
NONINTEREST INCOME:
Service charges on deposit accounts 1,577 1,535 1,172
Other service fees 1,189 1,365 858
Net gain on sales of mortgage loans 2,751 4,802 1,872
Net loss on sales of investment
securities - - (966)
Income on investment in bank owned life
insurance 235 234 238
Mortgage banking income (loss) 7 (207) (11)
Other income (loss) (1,124) (122) (105)
---------- ---------- ----------
TOTAL NONINTEREST INCOME 4,635 7,607 3,058
---------- ---------- ----------
NONINTEREST EXPENSES:
Salaries and employee benefits 7,762 8,299 5,136
Occupancy and equipment expense 1,858 1,842 1,307
Printing and supplies 345 272 176
Data processing 349 427 217
Communications expense 372 330 272
Advertising and marketing expense 357 213 376
Amortization of core deposit intangible 327 350 229
FDIC assessment expense 973 1,797 199
Loss on other than temporary impairment
of securities 175 - -
Goodwill impairment 61,566 - -
Other expense 3,621 5,524 1,849
---------- ---------- ----------
TOTAL NONINTEREST EXPENSE 77,705 19,054 9,761
---------- ---------- ----------
INCOME (LOSS) BEFORE INCOME TAXES (72,974) (10,350) 2,588
INCOME TAX (BENEFIT) (4,716) (3,795) 795
---------- ---------- ----------
NET INCOME (LOSS) $ (68,259) $ (6,555) $ 1,793
Preferred stock dividend 440 528 -
---------- ---------- ----------
NET INCOME (LOSS) TO COMMON
SHAREHOLDERS $ (68,699) $ (7,083) $ 1,793
========== ========== ==========
INCOME (LOSS) PER COMMON SHARE:
Basic $ (4.26) $ (0.46) $ 0.16
Diluted $ (4.26) $ (0.46) $ 0.15
CASH DIVIDENDS PER COMMON SHARE $ - $ 0.06 $ 0.13
AVERAGE SHARES OUTSTANDING:
Basic 16,129,632 15,322,043 11,525,277
Diluted 16,129,632 15,324,914 11,582,742
Yadkin Valley Financial Corporation
Consolidated Statements of Income (Loss)
(unaudited)
($ in thousands except share and per share data)
For the Nine Months Ended
-----------------------------------
Sept. 30, Sept. 30, Sept. 30,
2009 2008 2007
---------- ---------- -----------
INTEREST INCOME:
Interest and fees on loans $ 64,695 $ 50,989 $ 50,694
Interest on federal funds sold 22 45 268
Interest and dividends on securities:
Taxable 3,849 3,985 3,895
Non-taxable 1,463 1,123 887
Interest-bearing deposits 31 301 110
---------- ---------- -----------
TOTAL INTEREST INCOME 70,060 56,443 55,854
---------- ---------- -----------
INTEREST EXPENSE:
Time deposits of $100,000 or more 11,351 8,633 8,858
Other time and savings deposits 10,718 14,105 14,123
Borrowed funds 2,141 3,350 1,520
---------- ---------- -----------
TOTAL INTEREST EXPENSE 24,210 26,088 24,501
---------- ---------- -----------
NET INTEREST INCOME 45,849 30,355 31,353
PROVISION FOR LOAN LOSSES 45,293 3,492 800
---------- ---------- -----------
NET INTEREST INCOME AFTER PROVISION FOR
LOAN LOSSES 556 26,863 30,553
---------- ---------- -----------
NON-INTEREST INCOME:
Service charges on deposit accounts 4,159 3,246 2,938
Other service fees 3,619 2,599 2,719
Net gain on sales of mortgage loans 10,751 5,429 4,394
Net loss on sales of investment
securities - (972) 45
Income on investment in bank owned life
insurance 701 706 785
Mortgage banking income (loss) (507) 67 276
Other income (loss) (1,206) (41) 590
---------- ---------- -----------
TOTAL NON-INTEREST INCOME 17,517 11,034 11,748
---------- ---------- -----------
NON-INTEREST EXPENSES:
Salaries and employee benefits 21,688 15,052 14,453
Occupancy and equipment expense 5,028 3,578 2,987
Printing and supplies 849 557 409
Data processing 909 600 315
Communications expense 1,024 758 934
Advertising and marketing expense 946 712 372
Amortization of core deposit intangible 902 652 589
FDIC assessment expense 3,433 443 134
Loss on other than temporary impairment
of securities 355 - -
Goodwill impairment 61,566 - -
Other expense 11,852 6,204 4,771
---------- ---------- -----------
TOTAL NON-INTEREST EXPENSE 108,552 28,556 24,964
---------- ---------- -----------
INCOME (LOSS) BEFORE INCOME TAXES (90,478) 9,341 17,337
INCOME TAX (BENEFIT) (11,505) 2,907 5,716
---------- ---------- -----------
NET INCOME (LOSS) $ (78,973) $ 6,434 $ 11,621
Preferred stock dividend 1,681 - -
---------- ---------- -----------
NET INCOME (LOSS) TO COMMON
SHAREHOLDERS $ (80,654) $ 6,434 $ 11,621
========== ========== ===========
INCOME (LOSS) PER COMMON SHARE:
Basic $ (5.62) $ 0.57 $ 1.10
Diluted $ (5.62) $ 0.57 $ 1.08
CASH DIVIDENDS PER COMMON SHARE $ - $ 0.39 $ 0.38
AVERAGE SHARES OUTSTANDING:
Basic 14,356,544 11,198,506 10,603,937
Diluted 14,356,544 11,275,946 10,782,365
Yadkin Valley Financial Corporation
Consolidated Balance Sheets
Unaudited
($ in thousands except share and per share data)
As of
----------------------------------
Sept. 30, Dec. 31, Sept. 30,
2009 2008* 2008
---------- ---------- ----------
ASSETS
CASH AND CASH EQUIVALENTS
Cash and due from banks $ 70,702 $ 22,554 $ 26,574
Federal funds sold 1 58 32
Interest-bearing deposits 2,984 3,411 12,515
---------- ---------- ----------
TOTAL CASH AND CASH EQUIVALENTS 73,687 26,023 39,121
---------- ---------- ----------
SECURITIES AVAILABLE FOR SALE 191,423 137,813 140,709
GROSS LOANS 1,646,326 1,187,569 1,118,619
Less: Allowance for loan losses (54,270) (22,355) (16,526)
---------- ---------- ----------
NET LOANS 1,592,056 1,165,214 1,102,093
---------- ---------- ----------
LOANS HELD FOR SALE 46,911 49,929 44,841
ACCRUED INTEREST RECEIVABLE 7,649 5,442 6,284
PREMISES AND EQUIPMENT, NET 44,272 33,900 32,948
FORECLOSED REAL ESTATE 9,366 4,018 3,001
FEDERAL HOME LOAN BANK STOCK, AT COST 10,539 7,877 7,689
INVESTMENT IN BANK-OWNED LIFE INSURANCE 24,308 23,607 23,386
GOODWILL 4,944 53,503 54,149
CORE DEPOSIT INTANGIBLE 6,525 4,660 4,886
OTHER ASSETS 39,992 12,302 10,273
---------- ---------- ----------
TOTAL ASSETS $2,051,672 $1,524,288 $1,469,380
========== ========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
DEPOSITS
Non-interest bearing demand deposits $ 205,674 $ 153,573 $ 157,549
NOW, savings and money market accounts 413,694 283,891 278,827
Time certificates:
Over $100,000 549,493 333,375 285,162
Other 577,884 384,203 386,357
---------- ---------- ----------
TOTAL DEPOSITS 1,746,745 1,155,042 1,107,895
---------- ---------- ----------
SHORT-TERM BORROWINGS 57,264 169,112 153,123
LONG-TERM BORROWINGS 79,002 38,850 45,086
ACCRUED INTEREST PAYABLE 3,389 3,555 3,370
OTHER LIABILITIES 16,163 8,085 7,249
---------- ---------- ----------
TOTAL LIABILITIES 1,902,563 1,374,644 1,316,723
---------- ---------- ----------
SHAREHOLDERS' EQUITY
COMMON STOCK 16,130 11,537 11,533
PREFERRED STOCK 46,018 - -
SURPLUS 118,136 88,030 87,989
RETAINED EARNINGS (ACCUMULATED
DEFICIT) (34,242) 48,070 52,139
ACCUMULATED OTHER COMPREHENSIVE INCOME 3,067 2,007 995
---------- ---------- ----------
TOTAL SHAREHOLDERS' EQUITY 149,109 149,644 152,656
---------- ---------- ----------
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $2,051,672 $1,524,288 $1,469,380
========== ========== ==========
* Note: Derived from audited financial statements
Yadkin Valley Financial Corporation
(unaudited)
At or For the Three Months Ended
------------------------------------------------
Sept. 30, June 30, March 31, Dec. 31, Sept. 30,
2009 2009 2009 2008 2008
-------- -------- -------- -------- --------
Per Share Data:
Basic Earnings (Loss) per
Share $ (4.26) $ (0.46) $ (0.40) $ (0.22) $ 0.16
Diluted Earnings (Loss)
per Share (4.26) (0.46) (0.40) (0.22) 0.15
Book Value per Share 6.39 10.48 12.63 12.97 13.24
Tangible Book Value per
Share 5.68 5.93 7.61 7.93 8.12
Cash Dividends per Share 0.06 0.06 0.06 0.13 0.13
Selected Performance
Ratios:
Return on Average Assets
(annualized) -12.62% -1.27% -1.07% -0.69% 0.49%
Return on Average Equity
(annualized) -125.93% -12.81% -9.25% -6.64% 4.66%
Return on Tangible Equity
(annualized) -191.86% -18.93% -13.62% -10.79% 7.61%
Net Interest Margin
(annualized) 3.82% 3.76% 2.87% 2.94% 3.33%
Net Interest Spread
(annualized) 3.60% 3.45% 2.53% 2.57% 2.90%
Noninterest Income as a %
of Revenue 97.98% 87.40% 113.72% 68.88% 24.76%
Noninterest Income as a %
of Average Assets 0.22% 0.37% 0.34% 0.30% 0.21%
Noninterest Expense as a
% of Average Assets 3.62% 0.92% 0.75% 0.73% 0.68%
Net Noninterest income as
a % of Average Assets -3.41% -0.55% -0.42% -0.42% -0.47%
Efficiency Ratio (3) 67.37% 73.44% 75.38% 73.32% 68.64%
Asset Quality:
Nonperforming Loans
(000s) $ 45,685 $ 32,008 $ 17,420 $ 13,647 $ 9,667
Nonperforming
Assets (000s) 55,051 39,777 21,738 17,665 12,668
Nonperforming Loans to
Total Loans 2.70% 1.82% 1.28% 1.10% 0.83%
Nonperforming Assets to
Total Assets 2.68% 1.84% 1.33% 1.16% 0.86%
Allowance for Loan Losses
to Total Loans Held For
Investment 3.30% 2.82% 2.61% 1.88% 1.48%
Allowance for Loan Losses
to Nonperforming Loans 119.00% 144.00% 177.00% 164.00% 171.00%
Net Charge-offs/Recoveries
to Average Loans
(annualized) 2.39% 0.27% 0.63% 0.60% 0.24%
Capital Ratios:
Equity to Total Assets 7.27% 9.43% 11.00% 9.82% 10.39%
Tangible Equity to
Tangible Assets (2) 6.75% 6.24% 7.73% 6.24% 6.64%
Tier 1 leverage ratio (1) 7.49% 7.87% 8.65% 8.12% 8.36%
Tier 1 risk-based ratio (1) 8.91% 8.67% 9.71% 9.01% 9.40%
Total risk-based capital
ratio (1) 10.18% 9.92% 10.97% 10.26% 10.65%
Notes:
(1) Tier 1 leverage, Tier 1 risk-based, and Total risk -based ratios are
ratios for the bank, Yadkin Valley Bank and Trust Company as reported
on Consolidated Reports of Condition and Income for a Bank With
Domestic Offices Only - FFIEC 041
(2) Tangible Equity is the difference of stockholders' equity less the sum
of goodwill and core deposit intangible Tangible Assets are the
difference of total assets less the sum of goodwill and core deposit
intangible
(3) The Efficiency ratio was calculated excluding the loss on goodwill
impairment of $61,565,768 in the third quarter
Yadkin Valley Financial Corporation
(unaudited)
For the Nine Months
Ended Sept. 30,
----------------------
2009 2008 2007
------ ------ ------
Selected Performance Ratios:
Return on Average Assets (annualized) -5.42% 0.64% 1.40%
Return on Average Equity (annualized) -51.04% 5.87% 12.08%
Return on Tangible Equity (annualized) -75.12% 8.64% 17.04%
Net Interest Margin 3.54% 3.39% 4.26%
Net Interest Spread 3.24% 2.89% 3.55%
Noninterest Income as a % of Revenue 96.92% 29.12% 27.77%
Noninterest Income as a % of Average Assets 0.90% 0.82% 1.06%
Noninterest Expense as a % of Average Assets 5.57% 2.12% 2.25%
Net Noninterest income as a % of Average Assets -4.67% -1.30% -1.19%
Efficiency Ratio (1) 71.86% 66.44% 55.90%
Asset Quality:
Net Charge-offs to Average Loans (annualized) 1.14% 0.13% 0.06%
(1) The Efficiency ratio was calculated excluding the loss on goodwill
impairment of $61,565,768 in the third quarter
Yadkin Valley Financial Corporation
Average Balance Sheets and Net Interest Income Analysis
(Dollars in Thousands)
(Unaudited)
Three Months Ended Sept. 30,
----------------------------------------------------
2009 2008
------------------------- -------------------------
Average Yield/ Average Yield/
Balance Interest Rate Balance Interest Rate
---------- -------- ----- ---------- -------- -----
INTEREST EARNING ASSETS
Total loans (1,2) $1,705,489 $ 24,812 5.77% $1,137,645 $ 17,589 6.13%
Federal funds sold 38,883 20 0.20% 1,659 8 1.91%
Investment securities 193,878 2,252 4.61% 139,266 1,885 5.37%
Interest-bearing
deposits 17,951 10 0.22% 13,642 161 4.68%
---------- -------- ---------- --------
Total average earning
assets (1) 1,956,201 26,932 5.50% 1,292,212 19,643 6.03%
-------- --------
Noninterest earning
assets 189,567 147,891
---------- ----------
Total average assets $2,145,768 $1,440,103
========== ==========
INTEREST BEARING LIABILITIES
Time deposits $1,170,356 $ 6,735 2.28% $ 651,635 $ 6,501 3.96%
Other deposits 416,963 786 0.75% 288,335 1,044 1.44%
Borrowed funds 140,934 734 2.07% 178,080 1,268 2.82%
---------- -------- ---------- --------
Total interest
bearing liabilities 1,728,253 8,255 1.90% 1,118,050 8,813 3.13%
Noninterest bearing
deposits 198,101 159,238
Other liabilities 4,363 10,302
---------- ----------
Total average
liabilities 202,464 1,287,590
---------- ----------
Shareholders' equity 215,051 152,513
Total average
liabilities and ---------- ----------
shareholders' equity $2,145,768 $1,440,103
========== ==========
NET INTEREST INCOME/ -------- --------
YIELD (3,4) $ 18,677 3.82% $ 10,830 3.33%
======== ========
INTEREST SPREAD (5) 3.60% 2.90%
1. Yields related to securities and loans exempt from Federal income taxes
are stated on a fully tax-equivalent basis, assuming a Federal income
tax rate of 34%, reduced by the nondeductible portion of interest
expense
2. The loan average includes loans on which accrual of interest has been
discontinued.
3. Net interest income is the difference between income from earning assets
and interest expense.
4. Net interest yield is net interest income divided by total average
earning assets.
5. Interest spread is the difference between the average interest rate
received on earning assets and the average rate paid on interest bearing
liabilities.
Yadkin Valley Financial Corporation
Average Balance Sheets and Net Interest Income Analysis
(Dollars in Thousands)
(Unaudited)
Nine Months Ended Sept. 30,
----------------------------------------------------
2009 2008
------------------------- -------------------------
Average Yield/ Average Yield/
Balance Interest Rate Balance Interest Rate
---------- -------- ----- ---------- -------- -----
INTEREST EARNING ASSETS
Total loans (1,2) $1,563,466 $ 64,813 5.54% $1,057,970 $ 51,104 6.43%
Federal funds sold 15,946 22 0.18% 4,294 45 1.40%
Investment securities 172,597 5,957 4.61% 142,817 5,603 5.23%
Interest-bearing
deposits 10,190 31 0.41% 11,095 300 3.60%
---------- -------- ---------- --------
Total average earning
assets (1) 1,762,199 70,823 5.37% 1,216,176 57,052 6.25%
-------- --------
Noninterest earning
assets 185,963 129,706
---------- ----------
Total average assets $1,948,162 $1,345,882
========== ==========
INTEREST BEARING LIABILITIES
Time deposits $ 999,200 $ 19,711 2.61% $ 619,681 $ 19,572 4.21%
Other deposits 378,292 2,358 0.83% 269,385 3,165 1.57%
Borrowed funds 139,645 2,141 2.05% 144,163 3,350 3.10%
---------- -------- ---------- --------
Total interest
bearing liabilities 1,517,137 24,210 2.13% 1,033,229 26,087 3.36%
Noninterest bearing
deposits 178,193 155,585
Other liabilities 45,972 10,934
---------- ----------
Total average
liabilities 1,741,302 1,199,748
---------- ----------
Shareholders' equity 206,860 146,134
Total average
liabilities and ---------- ----------
shareholders' equity $1,948,162 $1,345,882
========== ==========
NET INTEREST INCOME/ -------- --------
YIELD (3,4) $ 46,613 3.54% $ 30,965 3.39%
======== ========
INTEREST SPREAD (5) 3.24% 2.89%
1. Yields related to securities and loans exempt from Federal income taxes
are stated on a fully tax-equivalent basis, assuming a Federal income
tax rate of 34%, reduced by the nondeductible portion of interest
expense
2. The loan average includes loans on which accrual of interest has been
discontinued.
3. Net interest income is the difference between income from earning assets
and interest expense.
4. Net interest yield is net interest income divided by total average
earning assets.
5. Interest spread is the difference between the average interest rate
received on earning assets and the average rate paid on interest
bearing liabilities.
For additional information contact: William A. Long President and Chief Executive Officer (336) 526-6312 Jan H. Hollar Executive Vice President and Chief Financial Officer (704) 768-1161 Email Contact Megan R. Malanga Nvestcom Investor Relations (954) 781-4393 Email Contact
Related Categories
Press ReleasesStocks Mentioned
+0.19Related Entities
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
