SOURCE: Yadkin Financial Corporation

Yadkin Financial Corporation

April 24, 2014 06:45 ET

Yadkin Financial Corporation Announces First Quarter 2014 Results, Highlights Strength of Core Banking Activities

ELKIN, NC--(Marketwired - Apr 24, 2014) -  Yadkin Financial Corporation (NASDAQ: YDKN)

First Quarter Highlights:

  • Net income available to common shareholders excluding merger-related expenses for the first quarter of 2014 was $4.6 million, or $0.32 per diluted share. Net income available to common shareholders was $3.3 million, or $0.23 per diluted share.
  • The Company incurred merger-related expenses in the first quarter in association with our pending merger with VantageSouth of $1.4 million or $0.09 per diluted share.
  • The average net interest margin for the quarter was 4.11%, an increase of 7 basis points compared to the prior quarter.
  • Total loan balances increased $24.0 million, or 1.8%, compared to the prior quarter, our fourth consecutive quarter of loan growth.
  • Nonperforming assets decreased for the fifth consecutive quarter, ending the quarter at 0.99% of total assets.
  • Net charge-offs totaled $1.1 million, or 0.32% of average loans on an annualized basis, for the first quarter of 2014.

Yadkin Financial Corporation (NASDAQ: YDKN), the holding company for Yadkin Bank, announced today financial results for the first quarter ended March 31, 2014. Net income available to common shareholders excluding merger-related expenses for the quarter was $4.6 million, or $0.32 per share. Net income available to common shareholders for the quarter was $3.3 million, or $0.23 per diluted share, compared to $4.2 million, or $0.30 per diluted share, for the fourth quarter of 2013, and $4.2 million, or $0.30 per diluted share, for the first quarter of 2013.

Joe Towell, President and CEO of Yadkin Financial Corporation, commented, "We are pleased with our results for the first quarter of 2014 and are particularly proud of our net interest margin, which is increasing due to the strong performance of our core bank. Our net interest margin expanded to 4.11% this quarter as a result of commercial and consumer loan growth, a decrease in our cost of deposits, and increasing yield in our securities portfolio. Furthermore, our asset quality continues to improve, as our nonperforming assets to total assets ratio was 0.99% at the end of the first quarter.

We continue to execute on our organic loan growth strategy and capitalize on increasing loan demand in our markets. Loan balances increased for the fourth consecutive quarter, and are up 1.8% over the prior quarter. Additionally, we are excited about the response from our recent launch of the Business Express loan program for small business customers. This expedited loan platform streamlines the paperwork and approval process so that qualified customers can receive loan decisions quickly and efficiently. Small businesses are at the core of our community banking strategy, and we believe this program allows us to serve them in even better ways.

We are working diligently through the integration process in our pending merger with VantageSouth. We have been encouraged to see the success of our teams working together, as we target closing the merger in the third quarter of 2014. Our strategic focus in this merger process is to create the least amount of disruption for customers on both sides while working to create an efficient community bank with a robust set of products and services. We will continue to provide updates on our progress in the coming quarters."

First Quarter 2014 Financial Highlights

Asset Quality

Yadkin Bank's key asset quality metrics continue to be strong as we maintain our focus on quality lending, underwriting, and problem asset resolution. First, our adversely classified assets to Tier 1 capital and loan loss reserve ratio has continued to exceed expectations, down to 17.01% at the end of the first quarter. Our nonperforming loans were down slightly compared to the prior quarter, totaling $15.1 million at March 31, 2014. In addition, the nonperforming loans to total loans ratio decreased to 1.09% at March 31, 2014, compared to 1.12% at December 31, 2013. 

                     
                     
    Nonperforming Loan Analysis  
    (Dollars in thousands)  
                     
    March 31, 2014     December 31, 2013  
        % of         % of  
    Outstanding   Total     Outstanding   Total  
Loan Type   Balance   Loans     Balance   Loans  
Construction/land development   $ 1,595   0.12 %   $ 1,742   0.13 %
Residential construction     586   0.04 %     589   0.04 %
HELOC     904   0.07 %     1,285   0.09 %
1-4 Family residential     2,682   0.19 %     2,734   0.20 %
Commercial real estate     7,797   0.56 %     6,479   0.47 %
Commercial & industrial     1,245   0.09 %     2,306   0.17 %
Consumer & other     272   0.02 %     258   0.02 %
Total   $ 15,081   1.09 %   $ 15,393   1.12 %
                         

Other real estate owned (OREO) totaled $2.8 million at March 31, 2014, a decrease of $400,000 compared to December 31, 2013. Total nonperforming assets at March 31, 2014 were $17.9 million, or 0.99% of total assets, a decrease of $750,000 from December 31, 2013. In addition, total net charge-offs for the first quarter of 2014 were $1.1 million, or 0.32% of average loans on an annualized basis.

During the first quarter of 2014, the recovery of loan losses was $460,000, which combined with the net charge-offs noted above, resulted in a $1.5 million decrease in the allowance for loan losses as compared to the prior quarter. Following the accelerated asset disposition plan, credit quality has continued to improve, leading to a decrease in the allowance which was prudent given the risk profile of the Company's balance sheet. Management continues to focus on the allowance to ensure that adequate coverage is maintained.

At March 31, 2014, the allowance for loan losses was $16.5 million, compared to $18.1 million at December 31, 2013. As a percentage of total loans held-for-investment, the allowance for loan losses was 1.19% in the first quarter of 2014, down from 1.33% in the fourth quarter of 2013. Out of the $16.5 million in total allowance for loan losses at March 31, 2014, the specific allowance for impaired loans accounted for $690,000, up from $557,000 in the fourth quarter. The remaining general allowance of $15.8 million attributed to unimpaired loans was down from $17.5 million at the end of the fourth quarter.

Net Interest Income and Net Interest Margin

Net interest income after provision decreased by $2.7 million to $17.1 million for the quarter. In the prior quarter, the Company recorded a $3.0 million provision reversal, which positively impacted our net interest income after provision. In the first quarter of 2014, we recorded $460,000 in provision reversal, leading to the decrease in net interest income after provision. Our net interest margin continued to expand with the quarterly average margin increasing 7 basis points to 4.11%, up from 4.04% at December 31, 2013.

In the first quarter of 2014, our core deposits increased by $31.0 million, and core deposits now represent 65.0% of total deposits. As a result of this strategy, our cost of deposits decreased to 0.45% for the quarter as compared to 0.46% in the fourth quarter of 2013.

Non-Interest Income

Non-interest income increased $3.5 million to $4.7 million in the first quarter compared to $1.2 million in the fourth quarter of 2013. This increase is due primarily to a gain on sale of securities recognized during the quarter, as management made a strategic decision to redeploy the cash from this gain on sale to our lending activities.

Non-Interest Expense

Non-interest expense increased $1.5 million during the first quarter, to $15.2 million as compared to $13.7 million in the fourth quarter. This increase is primarily the result of $1.4 million in merger-related expenses recorded during the first quarter of 2014.

Balance Sheet and Capital

Total assets increased $7.5 million during the first quarter of 2014, due primarily to our continued loan growth, offset by the decrease in our securities portfolio.

The Company's capital ratios have strengthened and continue to exceed all regulatory requirements. As of March 31, 2014, the Bank's leverage ratio, Tier 1 risk-based capital ratio, and total risk-based capital ratio were 11.7%, 13.7%, and 14.8%, respectively. Leverage ratio, Tier 1 risk-based capital ratio, and total risk-based capital ratio were 11.9%, 13.9%, and 15.0% respectively, for the holding company as of March 31, 2014. In addition, the Company's tangible common equity to total tangible assets ratio was 8.8% at the end of the first quarter, compared to 8.5% at December 31, 2013. For capital adequacy purposes, leverage ratio, Tier 1 risk-based capital ratio, and total risk-based capital ratio must be in excess of 5.0%, 6.0%, and 10.0%, respectively, to be considered well-capitalized.

Conference Call

Yadkin Financial Corporation will host a conference call at 10:00 a.m. EDT on Thursday, April 24, 2014 to discuss financial results, business highlights, and outlook. The call may be accessed by dialing 877-312-5527 at least 10 minutes prior to the call. A webcast of the call audio may be accessed at http://www.media-server.com/m/p/58beuukr. A replay of the call will be available until April 30, 2014 by dialing 855-859-2056 or 404-537-3406 and entering Conference ID 28304860.

About Yadkin Financial Corporation
Yadkin Financial Corporation is the holding company for Yadkin Bank, a full-service community bank with 33 branches throughout its two regions in North Carolina and South Carolina. The Western Region serves Avery, Watauga, Ashe, Surry, Wilkes, Yadkin, Durham, and Orange Counties. The Southern Region serves Iredell, Mecklenburg, and Union Counties in North Carolina, and Cherokee and York Counties in South Carolina. The Bank provides mortgage-lending services through its mortgage division, Yadkin Mortgage, headquartered in Greensboro, NC. Securities brokerage services are provided by Yadkin Wealth, Inc., a Bank subsidiary with offices located throughout the branch network. Yadkin Financial Corporation's website is www.yadkinbank.com. Yadkin shares are traded on NASDAQ under the symbol YDKN.

SAFE HARBOR

This news release contains forward-looking statements, as defined by Federal Securities Laws, including statements about financial outlook and business environment. Forward looking statements generally include words such as "expects," "projects," "anticipates," "believes," "intends," "estimates," "strategy," "plan," "potential," "possible" and other similar expressions. These statements are provided to assist in the understanding of future financial performance and such performance involves risks and uncertainties that may cause actual results to differ materially from those anticipated in such statements. Any such statements are based on current expectations and involve a number of risks and uncertainties. For a discussion of some factors that may cause such forward-looking statements to differ materially from actual results, please refer to the section entitled "Forward Looking Statements" on pages 1-2 of Yadkin Financial Corporation's annual report filed on Form 10-K with the SEC for the year ended December 31, 2013, and in the section entitled "Risk Factors" in the annual report filed on Form 10-K for the year ended December 31, 2013. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update or revise forward-looking statements.

   
Yadkin Financial Corporation  
Consolidated Balance Sheets (Unaudited)  
   
    (Amounts in thousands except share and per share data)  
    March 31, 2014   December 31, 2013
(a)
  September 
30, 2013
  June 30, 2013   March 31, 2013  
Assets:                                
Cash and due from banks   $ 32,254   $ 32,226   $ 32,417   $ 28,104   $ 22,210  
Federal funds sold     15     10     15     50     50  
Interest-earning deposits with banks     29,249     8,759     6,695     4,654     20,447  
                                 
U.S. government agencies     16,324     16,392     16,536     16,625     17,232  
Mortgage-backed securities     165,519     170,674     199,492     203,173     248,030  
State and municipal securities     82,178     98,704     109,626     110,410     115,435  
Common and preferred stocks     3,072     3,152     3,036     137     149  
    Total investment securities     267,093     288,922     328,690     330,345     380,846  
                                 
Construction loans     124,946     131,035     128,951     127,564     133,200  
Commercial, financial and other loans     197,109     206,833     191,874     186,965     182,268  
Residential mortgages     180,106     174,072     171,747     167,784     166,565  
Commercial real estate loans     655,190     621,405     616,116     604,667     596,790  
Installment loans     32,546     31,256     31,450     32,133     32,037  
Revolving 1-4 family loans     192,801     194,145     193,299     195,648     193,404  
    Total loans     1,382,698     1,358,746     1,333,437     1,314,761     1,304,264  
Allowance for loan losses     (16,522 )   (18,063 )   (21,014 )   (22,924 )   (24,492 )
    Net loans     1,366,176     1,340,683     1,312,423     1,291,837     1,279,772  
Loans held for sale     6,962     18,913     12,632     22,545     18,461  
Accrued interest receivable     5,915     6,219     6,339     6,546     6,502  
Bank premises and equipment     40,396     40,698     41,050     42,410     42,454  
Foreclosed real estate     2,828     3,267     2,989     3,812     5,449  
Non-marketable equity securities at cost     2,789     3,473     5,273     3,473     3,474  
Investment in bank-owned life insurance     27,169     27,032     26,888     26,736     26,587  
Core deposit intangible     1,818     1,974     2,133     2,301     2,475  
Other assets     30,823     33,851     35,973     39,102     37,865  
                                 
    Total assets   $ 1,813,487   $ 1,806,027   $ 1,813,517   $ 1,801,915   $ 1,846,592  
                                 
Liabilities and shareholders' equity:                                
Deposits:                                
Non-interest bearing   $ 287,585   $ 267,596   $ 266,951   $ 252,618   $ 257,388  
NOW, savings and money market accounts     704,581     693,558     676,502     686,438     656,524  
Time certificates:                                
  $100 or more     218,273     227,919     236,787     251,168     281,652  
  Other     315,035     329,350     311,096     332,873     366,095  
    Total deposits     1,525,474     1,518,423     1,491,336     1,523,097     1,561,659  
                                 
Borrowings     90,039     89,214     131,080     91,896     99,160  
Accrued expenses and other liabilities     9,198     13,920     12,229     12,306     10,922  
    Total liabilities     1,624,711     1,621,557     1,634,645     1,627,299     1,671,741  
                                 
Total shareholders' equity     188,776     184,470     178,872     174,616     174,851  
                                 
Total liabilities and shareholders' equity   $ 1,813,487   $ 1,806,027   $ 1,813,517   $ 1,801,915   $ 1,846,592  
                                 
Period end shares outstanding     14,380,673     14,383,986     14,383,986     14,383,986     14,383,884  
                                 
                                 
(a) Derived from audited consolidated financial statements.  
   
   
   
Yadkin Financial Corporation  
Consolidated Income Statements (Unaudited)  
   
  Three Months Ended  
  (Amounts in thousands except share and per share data)  
  March 31,   December   September   June 30,   March 31,  
  2014   31, 2013   30, 2013   2013   2013  
                               
Interest and fees on loans $ 16,937   $ 17,126   $ 16,849   $ 16,950   $ 16,679  
Interest on securities   1,719     1,773     1,616     1,686     1,548  
Interest on federal funds sold   1     1     -     2     6  
Interest-bearing deposits   9     3     5     13     42  
  Total interest income   18,666     18,903     18,470     18,651     18,275  
                               
Time deposits of $100 or more   845     803     877     1,009     1,352  
Other deposits   824     929     1,034     1,112     1,432  
Borrowed funds   394     422     423     409     439  
  Total interest expense   2,063     2,154     2,334     2,530     3,223  
    Net interest income   16,603     16,749     16,136     16,121     15,052  
Provision for (recovery of) loan losses   (460 )   (3,017 )   40     55     237  
Net interest income after provision for (recovery of) loan losses   17,063     19,766     16,096     16,066     14,815  
                               
Non-interest income                              
  Service charges on deposit accounts   1,224     1,264     1,336     1,317     1,269  
  Other service fees   1,025     1,066     1,259     1,401     927  
  Income on investment in bank-owned life insurance   137     145     152     150     153  
  Mortgage banking activities   1,022     1,162     1,713     2,546     3,288  
  Gain (loss) on sale of securities   1,128     (2,884 )   253     272     4  
  Other than temporary impairment of investments   -     -     -     -     (39 )
  Loss on sale of subsidiary   -     -     -     -     (1 )
  Gain on sale of loans   -     202     -     373     -  
  Gain on sale of branch   -     -     310     -     -  
  Other   161     227     358     125     56  
    Total non-interest income   4,697     1,182     5,381     6,184     5,657  
                               
Non-interest expense                              
  Salaries and employee benefits   7,917     7,854     7,780     7,953     7,389  
  Occupancy and equipment   1,746     2,049     2,001     1,951     1,815  
  Printing and supplies   193     151     159     150     163  
  Data processing   275     376     374     350     395  
  Communication expense   380     368     350     338     332  
  Advertising and marketing   205     (322 )   348     433     256  
  Amortization of core deposit intangible   156     159     166     175     178  
  FDIC assessment expense   151     433     363     642     592  
  Attorney fees   65     81     90     178     90  
  Other professional fees   344     456     237     497     476  
  Loan collection expense   97     118     203     201     217  
  (Gain) loss on fixed assets   -     (12 )   154     -     -  
  Net cost of operation of other real estate owned   310     302     93     (174 )   (822 )
  Merger related expenses   1,352     -     -     -     -  
  Other   2,002     1,699     1,832     2,149     2,134  
    Total non-interest expense   15,193     13,712     14,150     14,843     13,215  
                               
Income before income taxes   6,567     7,236     7,327     7,407     7,257  
Provision for income taxes   2,659     2,579     2,616     2,598     2,608  
                               
Net income   3,908     4,657     4,711     4,809     4,649  
    Preferred stock dividend and amortization of preferred stock discount   559     421     421     590     445  
Net income available to common shareholders $ 3,349   $ 4,236   $ 4,290   $ 4,219   $ 4,204  
Net income per common share (a)                              
    Basic $ 0.24   $ 0.30   $ 0.30   $ 0.30   $ 0.30  
    Diluted $ 0.23   $ 0.30   $ 0.30   $ 0.30   $ 0.30  
                               
Weighted average number of common shares outstanding                              
    Basic   14,211,456     14,206,070     14,205,705     14,205,223     14,198,382  
    Diluted   14,269,453     14,259,809     14,249,152     14,223,604     14,200,424  
                               
                               
(a) Net income per share for periods prior to the second quarter of 2013 have been adjusted to reflect the 1-for-3 reverse stock split.  
   
   
   
Yadkin Financial Corporation  
(unaudited)  
    At or For the Three Months Ended  
    March 31,   December   September   June 30,   March 31,  
    2014   31, 2013   30, 2013   2013   2013  
                                 
Per Share Data:                                
Basic Earnings per Share (8)   $ 0.24   $ 0.30   $ 0.30   $ 0.30   $ 0.30  
Diluted Earnings per Share (8)     0.23     0.30     0.30     0.30     0.30  
Book Value per Share (8)     11.15     10.85     10.47     10.17     10.21  
                                 
Selected Performance Ratios:                                
Return on Average Assets (annualized)     0.76 %   0.93 %   0.95 %   0.93 %   0.91 %
Return on Average Equity (annualized)     7.29 %   9.31 %   9.74 %   9.63 %   9.94 %
Net Interest Margin (annualized)     4.11 %   4.04 %   3.93 %   3.90 %   3.57 %
Net Interest Spread (annualized)     3.97 %   3.90 %   3.80 %   3.76 %   3.40 %
Non-interest Income as a % of Revenue (6)     21.59 %   5.64 %   25.05 %   27.79 %   27.63 %
Non-interest Income as a % of Average Assets     0.26 %   0.07 %   0.30 %   0.34 %   0.30 %
Non-interest Expense as a % of Average Assets     0.85 %   0.76 %   0.79 %   0.82 %   0.70 %
                                 
Asset Quality:                                
Loans 30-89 days past due (000's) (4)   $ 11,372   $ 8,702   $ 4,412   $ 6,493   $ 6,060  
Loans over 90 days past due still accruing (000's)     -     -     -     -     -  
Nonperforming Loans (000's)     15,082     15,393     17,874     19,698     23,712  
Other Real Estate Owned (000's)     2,828     3,267     2,989     3,812     5,449  
Nonperforming Assets (000's)(5)     17,910     18,660     20,864     23,510     29,161  
Accruing/Performing troubled debt restructurings (000's)     3,444     6,287     5,599     9,162     8,579  
Nonperforming Loans to Total Loans     1.09 %   1.12 %   1.33 %   1.47 %   1.79 %
Nonperforming Assets to Total Assets     0.99 %   1.03 %   1.15 %   1.30 %   1.58 %
Allowance for Loan Losses to Total Loans     1.19 %   1.31 %   1.56 %   1.71 %   1.85 %
Allowance for Loan Losses to Total Loans Held for Investment     1.19 %   1.33 %   1.58 %   1.74 %   1.88 %
Allowance for Loan Losses to Nonperforming Loans     109.55 %   117.34 %   117.57 %   116.38 %   103.29 %
Net Charge-offs (Recoveries) to Average Loans (annualized)     0.32 %   -0.02 %   0.58 %   0.49 %   0.27 %
                                 
Capital Ratios:                                
Equity to Total Assets     10.41 %   10.22 %   9.86 %   9.69 %   9.47 %
Tier 1 leverage ratio(1)     11.71 %   11.24 %   10.88 %   10.30 %   9.72 %
Tier 1 risk-based ratio(1)     13.73 %   13.21 %   12.92 %   12.49 %   12.23 %
Total risk-based capital ratio(1)     14.82 %   14.41 %   14.17 %   13.74 %   13.49 %
                                 
Non-GAAP disclosures(2):                                
Tangible Book Value per Share   $ 11.03   $ 10.71   $ 10.32   $ 10.01   $ 10.03  
Return on Tangible Equity (annualized) (3)     7.36 %   9.42 %   9.87 %   9.76 %   10.09 %
Tangible Common Equity to Tangible Assets (3)     8.75 %   8.54 %   8.19 %   8.00 %   7.83 %
Efficiency Ratio (7)     66.14 %   62.80 %   63.47 %   66.55 %   66.39 %
Net Income to common shareholders excluding merger costs (9)   $ 4,576   $ 4,236   $ 4,290   $ 4,219   $ 4,204  
                                 
Notes:
(1) Tier 1 leverage, Tier 1 risk-based, and Total risk-based ratios are ratios for the bank, Yadkin Bank
  as reported on Consolidated Reports of Condition and Income for a Bank With Domestic Offices Only - FFIEC 041.
(2) Management uses these non-GAAP financial measures because it believes they are useful for evaluating our operations and performance over periods of time, as well as in managing and evaluating our business and in discussions about our operations and performance. Management believes these non-GAAP financial measures provide users of our financial information with a meaningful measure for assessing our financial results and credit trends, as well as comparison to financial results for prior periods. These non-GAAP financial measures should not be considered as a substitute for operating results determined in accordance with GAAP and may not be comparable to other similarly titled financial measures used by other companies.
(3) Tangible Common Equity is the difference of shareholders' equity less preferred shares and core deposit intangibles.
  Tangible Assets are the difference of total assets less core deposit intangibles.
(4) Past due numbers exclude loans classified as nonperforming.
(5) Nonperforming assets exclude accruing troubled debt restructured loans.
(6) Ratio is calculated by taking non-interest income as a percentage of net interest income after provision for loan losses plus total non-interest income.
(7) Efficiency ratio is calculated by taking noninterest expense less the amortization of intangibles and gains on sale of OREO, as a percentage of total taxable equivalent net interest income and noninterest income less gains on sale of securities, gains (losses) on sale of loans, gains on sale of branch
and other than temporary impairment of investments.
(8) Per share amounts for periods prior to the second quarter of 2013 have been adjusted to reflect the 1-for-3 reverse stock split.
(9) Net income to common shareholders excluding merger costs was calculated by adding back $1,352 in merger costs, less a $125 adjustment for taxes for the three months ended March 31, 2014.
   
   
   
Yadkin Financial Corporation
Average Balance Sheets and Net Interest Income Analysis (Unaudited)
 
  Three Months Ended March 31,    
  2014     2013    
  (Dollars in Thousands)    
       
  Average Balance   Interest   Yield/
Rate
    Average Balance   Interest   Yield/
Rate
   
INTEREST EARNING ASSETS                                    
Total loans (1,2) $ 1,371,694   $ 16,966   5.02 %   $ 1,321,253   $ 16,708   5.13 %  
Investment securities   286,094     2,046   2.90 %     364,453     1,838   2.05 %  
Interest-bearing deposits & federal funds sold   16,794     10   0.24 %     62,707     48   0.31 %  
Total average earning assets (1)   1,674,582     19,022   4.61 % (6)   1,748,413     18,594   4.31 % (6)
Non-interest earning assets   122,754                 128,610              
Total average assets $ 1,797,336               $ 1,877,023              
                                     
INTEREST BEARING LIABILITIES                                    
Time deposits $ 548,673     1,376   1.02 %   $ 693,150     2,510   1.47 %  
Other deposits   685,356     293   0.17 %     638,377     274   0.17 %  
Borrowed funds   89,624     394   1.78 %     101,763     439   1.75 %  
Total interest bearing liabilities   1,323,653     2,063   0.63 % (7)   1,433,290     3,223   0.91 % (7)
                                     
Non-interest bearing deposits   276,878                 259,883              
Other liabilities   10,459                 12,307              
Total average liabilities   1,610,990                 1,705,480              
                                     
Shareholders' equity   186,346                 171,543              
                                     
Total average liabilities and shareholders' equity $ 1,797,336               $ 1,877,023              
                                     
NET INTEREST INCOME/                                    
YIELD (3,4)       $ 16,959   4.11 %         $ 15,371   3.57 %  
                                     
INTEREST SPREAD (5)             3.97 %               3.40 %  
   
(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 35%, 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.
(6) Interest income for 2014 and 2013 includes $57,000 and $45,000, respectively, of accretion for purchase accounting adjustments related to loans acquired in the merger with American Community.
(7) Interest expense for 2014 and 2013 includes $9,000 of accretion for purchase accounting adjustments related to deposits and borrowings acquired in the merger with American Community.
   

Contact Information

  • For additional information contact:

    Joseph H. Towell
    President and Chief Executive Officer
    (704) 768-1133
    Email Contact

    Jan H. Hollar
    Executive Vice President and Chief Financial Officer
    (704) 768-1161
    Email Contact