SOURCE: Yadkin Financial Corporation

Yadkin Financial Corporation

January 29, 2014 06:45 ET

Yadkin Financial Corporation Finishes Strong in 2013, Announces Fourth Quarter Results

ELKIN, NC--(Marketwired - Jan 29, 2014) - Yadkin Financial Corporation (NASDAQ: YDKN)

Fourth Quarter Highlights:

  • Net income available to common shareholders for the fourth quarter of 2013 was $4.2 million, or $0.30 per diluted share.
  • The average net interest margin for the quarter was 4.04%, an increase of 11 basis points compared to the prior quarter, and the Company's highest margin in the last eight quarters.
  • Total loan balances increased $25.3 million, or 1.9% compared to the prior quarter, our third consecutive quarter of loan growth.
  • Nonperforming assets decreased for the fifth consecutive quarter, ending the quarter at 1.03% of total assets.
  • Gross charge-offs for the quarter totaled $1.3 million, offset by $1.4 million in recoveries.

Full Year 2013 Highlights

  • Net income available to common shareholders for the full year 2013 was $16.9 million, or $1.19 per diluted share.
  • Total loan balances increased 3.8% in 2013, demonstrating the Company's strong commitment to organic growth in our markets.
  • The average net interest margin for the 12 months ending December 31, 2013 was 3.86%, an increase of 46 basis points compared to the prior year-end.
  • Credit quality continued to improve following the accelerated asset disposition plan carried out during the fourth quarter of 2012. Comparing December 31, 2013 to December 31, 2012:
    • Nonperforming loans have decreased 32.5%,
    • Loans 30-89 days past due have decreased 37.8%,
    • Nonperforming assets have decreased 40.9%
  • The allowance for loan losses to total loans held-for-investment was 1.33% at December 31, 2013. It remains adequate for the level of risk on the Company's balance sheet, and management remains committed to maintaining adequate coverage.
  • Net interest income after provision for the fourth quarter has increased $36.6 million compared to the fourth quarter of 2012, due to the significant decrease in provision for loan losses during the year as a result of improved credit quality.

Yadkin Financial Corporation (NASDAQ: YDKN), the holding company for Yadkin Bank, announced today financial results for the fourth quarter ended December 31, 2013. Net income available to common shareholders for the quarter was $4.2 million, or $0.30 per diluted share, compared to net income of $4.3 million, or $0.30 per diluted share, in the third quarter of 2013, and net loss of $25.3 million, or $3.63 per diluted share, in the fourth quarter of 2012.

Joe Towell, President and CEO of Yadkin Financial, commented, "2013 was a very strong year for Yadkin Bank. We returned to stability and strength following the execution of our accelerated asset disposition plan at the end of 2012, and we haven't looked back. Every business unit in the Bank worked toward making 2013 a year of consistent and meaningful profitability, and we have accomplished that goal. While doing this, we have continued to improve our credit quality, we have hired several talented individuals in key positions, and we have focused on internal reorganization to ensure efficiency and effectiveness at every level of the Company. All of this progress has allowed us to ensure that customer experience is top of mind in all that we do. I am proud of our team for their hard work throughout the year.

"Our loan growth is the big highlight, both for the fourth quarter and for the year. Loan balances increased 1.9% quarter over quarter, and 3.8% year over year, which exceeded our internal expectations, as economic growth remains at a slower pace. Clearly, this demonstrates our commitment to quality growth, as we have achieved these goals while continuing to show improvement in our overall credit quality metrics.

"In addition to our organic growth, we have continued to explore strategic options available to our Company, and our recent announcement is the culmination of those efforts. We are excited about building the largest community bank in North Carolina through our partnership with VantageSouth Bank, as we announced our plans for a transformational merger-of-equals. We believe this is the best next step for our two companies, and we are fully focused on creating value for our shareholders."

Fourth Quarter 2013 Financial Highlights

Asset Quality

The 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 decrease, down to 21.28% at the end of the fourth quarter. Our nonperforming loans decreased $2.5 million compared to the prior quarter, to $15.4 million at December 31, 2013. In addition, the nonperforming loans to total loans ratio decreased to 1.12% at December 31, 2013, compared to 1.33% at September 30, 2013. 

                     
    Nonperforming Loan Analysis  
    (Dollars in thousands)  
                     
    December 31, 2013     September 30, 2013  
        % of         % of  
    Outstanding   Total     Outstanding   Total  
Loan Type   Balance   Loans     Balance   Loans  
Construction/land development   $ 1,742   0.13 %   $ 2,917   0.22 %
Residential construction     589   0.04 %     548   0.04 %
HELOC     1,285   0.09 %     1,373   0.10 %
1-4 Family residential     2,734   0.20 %     3,312   0.25 %
Commercial real estate     6,479   0.47 %     7,831   0.58 %
Commercial & industrial     2,306   0.17 %     1,622   0.12 %
Consumer & other     258   0.02 %     271   0.02 %
Total   $ 15,393   1.12 %   $ 17,874   1.33 %
                         

Other real estate owned (OREO) totaled $3.3 million at December 31, 2013, a slight increase of $278,000 compared to $3.0 million at September 30, 2013. Total nonperforming assets at December 31, 2013 were $18.7 million, or 1.03% of total assets, a decrease of $2.2 million from September 30, 2013. In addition, total gross charge-offs for the fourth quarter of 2013 were $1.3 million, offset by recoveries totaling $1.4 million.

During the fourth quarter of 2013, the provision for loan losses was ($3.0 million). This decrease in provision resulted in a $3.0 million decrease in the allowance for loan losses as well. 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 December 31, 2013, the allowance for loan losses was $18.1 million, compared to $21.0 million at September 30, 2013. As a percentage of total loans held-for-investment, the allowance for loan losses was 1.33% in the fourth quarter of 2013, down from 1.58% in the third quarter of 2013. Out of the $18.1 million in total allowance for loan losses at December 31, 2013, the specific allowance for impaired loans accounted for $557,000, up from $409,000 in the third quarter. The remaining general allowance of $17.5 million attributed to unimpaired loans was down from $20.6 million at the end of the third quarter.

Net Interest Income and Net Interest Margin

Net interest income after provision increased by $3.7 million to $19.8 million for the quarter. Our net interest margin continued to expand with the quarterly average margin increasing 11 basis points to 4.04%, up from 3.93% at September 30, 2013. This increase in margin is due to our continued loan growth, consistent yield on loans, and continued focus on our deposit mix.

In the fourth quarter of 2013, our cost of deposits continued to decrease as we finished our final phase of deposit repricing. Core deposits represent 63.3% of total deposits, and our total deposits increased $27.1 million compared to the prior quarter. As a result of this strategy, our cost of deposits decreased to 0.46% for the quarter as compared to 0.51% in the third quarter of 2013.

Non-Interest Income

Non-interest income decreased $4.2 million to $1.2 million in the fourth quarter compared to $5.4 million in the third quarter of 2013. This decrease is due primarily to a loss on sale of securities, as we restructured a portion of our portfolio to be better positioned in the current rate environment.

Non-Interest Expense

Non-interest expense decreased $438,000 during the fourth quarter, down to $13.7 million as compared to $14.2 million in the third quarter. This decrease is primarily due to year-end accrual adjustments that occurred during the quarter.

Balance Sheet and Capital

Total assets decreased $7.5 million during the fourth quarter of 2013 as our loan growth was offset by a decrease on our securities portfolio. Total loans increased $25.3 million as compared to the prior quarter, marking our third consecutive quarter of loan growth. Total deposits increased $27.1 million and core deposits represented more than 65% of that increase.

The Company's capital ratios have strengthened and continue to exceed all regulatory requirements. As of December 31, 2013, the Bank's leverage ratio, Tier 1 risk-based capital ratio, and total risk-based capital ratio were 11.2%, 13.2%, and 14.5%, respectively. Leverage ratio, Tier 1 risk-based capital ratio, and total risk-based capital ratio were 11.5%, 13.5%, and 14.6% respectively, for the holding company as of December 31, 2013. In addition, the Company's tangible common equity to total tangible assets ratio was 8.5% at the end of the fourth quarter, compared to 8.2% at September 30, 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.

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 44-45 of Yadkin Financial Corporation's quarterly report filed on Form 10-Q with the SEC for the quarters ended September 30, 2013, June 30, 2013, and March 31, 2013, and in the section entitled "Risk Factors" in the annual report filed on Form 10-K for the year ended December 31, 2012 and, once available, 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)  
    December 31,   September 30,   June 30,   March 31,   December 31,  
    2013   2013   2013   2013   2012 (a)  
Assets:                                
Cash and due from banks   $ 32,226   $ 32,417   $ 28,104   $ 22,210   $ 36,125  
Federal funds sold     10     15     50     50     50  
Interest-earning deposits with banks     8,759     6,695     4,654     20,447     102,221  
                                 
U.S. government agencies     16,392     16,536     16,625     17,232     27,527  
Mortgage-backed securities     170,674     199,492     203,173     248,030     230,894  
State and municipal securities     98,704     109,626     110,410     115,435     84,567  
Common and preferred stocks     3,152     3,036     137     149     132  
    Total investment securities     288,922     328,690     330,345     380,846     343,120  
                                 
Construction loans     131,035     128,951     127,564     133,200     131,981  
Commercial, financial and other loans     206,833     191,874     186,965     182,268     193,810  
Residential mortgages     174,072     171,747     167,784     166,565     140,931  
Commercial real estate loans     621,405     616,116     604,667     596,790     617,468  
Installment loans     31,256     31,450     32,133     32,037     33,426  
Revolving 1-4 family loans     194,145     193,299     195,648     193,404     191,888  
    Total loans     1,358,746     1,333,437     1,314,761     1,304,264     1,309,504  
Allowance for loan losses     (18,063 )   (21,014 )   (22,924 )   (24,492 )   (25,149 )
    Net loans     1,340,683     1,312,423     1,291,837     1,279,772     1,284,355  
Loans held for sale     18,913     12,632     22,545     18,461     27,679  
Accrued interest receivable     6,219     6,339     6,546     6,502     6,376  
Bank premises and equipment     40,698     41,050     42,410     42,454     41,849  
Foreclosed real estate     3,267     2,989     3,812     5,449     8,738  
Non-marketable equity securities at cost     3,473     5,273     3,473     3,474     4,154  
Investment in bank-owned life insurance     27,032     26,888     26,736     26,587     26,433  
Core deposit intangible     1,974     2,133     2,301     2,475     2,653  
Other assets     33,872     35,973     39,102     37,865     39,685  
                                 
    Total assets   $ 1,806,048   $ 1,813,517   $ 1,801,915   $ 1,846,592   $ 1,923,438  
                                 
Liabilities and shareholders' equity:                                
Deposits:                                
Non-interest bearing   $ 267,596   $ 266,951   $ 252,618   $ 257,388   $ 273,912  
NOW, savings and money market accounts     693,558     676,502     686,438     656,524     624,460  
Time certificates:                                
  $100 or more     227,919     236,787     251,168     281,652     316,146  
  Other     329,350     311,096     332,873     366,095     417,144  
    Total deposits     1,518,423     1,491,336     1,523,097     1,561,659     1,631,662  
                                 
Borrowings     89,214     131,080     91,896     99,160     105,136  
Accrued expenses and other liabilities     13,920     12,229     12,306     10,922     15,846  
    Total liabilities     1,621,557     1,634,645     1,627,299     1,671,741     1,752,644  
                                 
Total shareholders' equity     184,491     178,872     174,616     174,851     170,794  
                                 
Total liabilities and shareholders' equity   $ 1,806,048   $ 1,813,517   $ 1,801,915   $ 1,846,592   $ 1,923,438  
                                 
Period end shares outstanding     14,383,986     14,383,986     14,383,986     14,383,884     14,383,882  
                                 
 
(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)  
    December 31,   September 30, June 30,   March 31,   December 31,  
    2013   2013 2013   2013   2012  
                               
Interest and fees on loans   $ 17,126   $ 16,849 $ 16,950   $ 16,679   $ 17,338  
Interest on securities     1,773     1,616   1,686     1,548     1,381  
Interest on federal funds sold     1     -   2     6     8  
Interest-bearing deposits     3     5   13     42     66  
  Total interest income     18,903     18,470   18,651     18,275     18,793  
                               
Time deposits of $100 or more     803     877   1,009     1,352     1,346  
Other deposits     929     1,034   1,112     1,432     2,132  
Borrowed funds     422     423   409     439     570  
  Total interest expense     2,154     2,334   2,530     3,223     4,048  
                               
    Net interest income     16,749     16,136   16,121     15,052     14,745  
Provision for loan losses     (3,017 )   40   55     237     31,554  
Net interest income after provision for loan losses     19,766     16,096   16,066     14,815     (16,809 )
                               
Non-interest income                              
  Service charges on deposit accounts     1,264     1,336   1,317     1,269     1,398  
  Other service fees     1,066     1,259   1,401     927     986  
  Income on investment in bank-owned life insurance     145     152   150     153     159  
  Mortgage banking activities     1,162     1,713   2,546     3,288     1,448  
  Gain (loss) on sale of securities     (2,884 )   253   272     4     96  
  Other than temporary impairment of investments     -     -   -     (39 )   (50 )
  Loss on sale of subsidiary     -     -   -     (1 )   (1,019 )
  Gain (loss) on sale of loans     202     -   373     -     (2,132 )
  Gain on sale of branch     -     310   -     -     -  
  Other     227     358   125     56     100  
    Total non-interest income     1,182     5,381   6,184     5,657     986  
                               
Non-interest expense                              
  Salaries and employee benefits     7,854     7,780   7,953     7,389     6,935  
  Occupancy and equipment     2,049     2,001   1,951     1,815     1,562  
  Printing and supplies     151     159   150     163     157  
  Data processing     376     374   350     395     447  
  Communication expense     368     350   338     332     354  
  Advertising and marketing     (322 )   348   433     256     77  
  Amortization of core deposit intangible     159     166   175     178     260  
  FDIC assessment expense     433     363   642     592     664  
  Attorney fees     81     90   178     90     263  
  Other professional fees     456     237   497     476     736  
  Loan collection expense     118     203   201     217     569  
  (Gain) loss on fixed assets     (12 )   154   -     -     153  
  Net cost of operation of other real estate owned     302     93   (174 )   (822 )   8,136  
  Other     1,699     1,832   2,149     2,134     2,395  
    Total non-interest expense     13,712     14,150   14,843     13,215     22,708  
                               
Income (loss) before income taxes     7,236     7,327   7,407     7,257     (38,531 )
Provision for income taxes (benefit)     2,579     2,616   2,598     2,608     (14,632 )
                               
Net income (loss)     4,657     4,711   4,809     4,649     (23,899 )
    Preferred stock dividend and amortization of preferred stock discount     421     421   590     445     1,419  
Net income (loss) available to common shareholders   $ 4,236   $ 4,290 $ 4,219   $ 4,204   $ (25,318 )
Net income (loss) per common share (a)                              
    Basic   $ 0.30   $ 0.30 $ 0.30   $ 0.30   $ (3.63 )
    Diluted   $ 0.30   $ 0.30 $ 0.30   $ 0.30   $ (3.63 )
                               
Weighted average number of common shares outstanding                              
    Basic     14,206,070     14,205,705   14,205,223     14,198,382     6,972,526  
    Diluted     14,259,809     14,249,152   14,223,604     14,200,424     6,972,526  
                               
 
(a) Net income (loss) 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  
    December 31, 2013     September 30, 2013     June 30, 2013     March 31, 2013     December 31, 2012  
                                         
Per Share Data:                                        
Basic Earnings per Share (8)   $ 0.30     $ 0.30     $ 0.30     $ 0.30     $ (3.63 )
Diluted Earnings per Share (8)     0.30       0.30       0.30       0.30       (3.63 )
Book Value per Share (8)     10.85       10.47       10.17       10.21       9.93  
                                         
Selected Performance Ratios:                                        
Return on Average Assets (annualized)     0.93 %     0.95 %     0.93 %     0.91 %     -5.15 %
Return on Average Equity (annualized)     9.31 %     9.74 %     9.63 %     9.94 %     -53.53 %
Net Interest Margin (annualized)     4.04 %     3.93 %     3.90 %     3.57 %     3.28 %
Net Interest Spread (annualized)     3.90 %     3.80 %     3.76 %     3.40 %     3.08 %
Non-interest Income as a % of Revenue (6)     5.64 %     25.05 %     27.79 %     27.63 %     -6.23 %
Non-interest Income as a % of Average Assets     0.07 %     0.30 %     0.34 %     0.30 %     0.05 %
Non-interest Expense as a % of Average Assets     0.76 %     0.79 %     0.82 %     0.70 %     1.17 %
                                         
Asset Quality:                                        
Loans 30-89 days past due (000's) (4)   $ 8,702     $ 4,412     $ 6,493     $ 6,060     $ 14,000  
Loans over 90 days past due still accruing (000's)     -       -       -       -       -  
Nonperforming Loans (000's)     15,393       17,874       19,698       23,712       22,817  
Other Real Estate Owned (000's)     3,267       2,989       3,812       5,449       8,738  
Nonperforming Assets (000's)(5)     18,660       20,864       23,510       29,161       31,555  
Accruing/Performing troubled debt restructurings (000's)     6,287       5,599       9,162       8,579       17,667  
Nonperforming Loans to Total Loans     1.12 %     1.33 %     1.47 %     1.79 %     1.71 %
Nonperforming Assets to Total Assets     1.03 %     1.15 %     1.30 %     1.58 %     1.64 %
Allowance for Loan Losses to Total Loans     1.31 %     1.56 %     1.71 %     1.85 %     1.88 %
Allowance for Loan Losses to Total Loans Held for Investment     1.33 %     1.58 %     1.74 %     1.88 %     1.92 %
Allowance for Loan Losses to Nonperforming Loans     117.34 %     117.57 %     116.38 %     103.29 %     110.22 %
Net Charge-offs (Recoveries) to Average Loans (annualized)     -0.02 %     0.58 %     0.49 %     0.27 %     9.74 %
                                         
Capital Ratios:                                        
Equity to Total Assets     10.22 %     9.86 %     9.69 %     9.47 %     8.88 %
Tier 1 leverage ratio(1)     11.24 %     10.88 %     10.30 %     9.72 %     8.92 %
Tier 1 risk-based ratio(1)     13.21 %     12.92 %     12.49 %     12.23 %     11.73 %
Total risk-based capital ratio(1)     14.41 %     14.17 %     13.74 %     13.49 %     12.99 %
                                         
Non-GAAP disclosures(2):                                        
Tangible Book Value per Share   $ 10.71     $ 10.32     $ 10.01     $ 10.03     $ 9.75  
Return on Tangible Equity (annualized) (3)     9.42 %     9.87 %     9.76 %     10.09 %     -54.34 %
Tangible Common Equity to Tangible Assets (3)     8.54 %     8.19 %     8.00 %     7.83 %     7.30 %
Efficiency Ratio (7)     62.80 %     63.47 %     66.55 %     66.39 %     88.62 %
 
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.
   
   
   
Yadkin Financial Corporation  
Average Balance Sheets and Net Interest Income Analysis (Unaudited)  
                             
    Three Months Ended December 31,  
    2013     2012  
    (Dollars in Thousands)  
                             
    Average       Yield/     Average       Yield/  
    Balance   Interest   Rate     Balance   Interest   Rate  
INTEREST EARNING ASSETS                                    
Total loans (1,2)   $ 1,353,039   $ 17,156   5.03%     $ 1,369,884   $ 17,367   5.04%  
Investment securities     322,969     2,122   2.61%       325,578     1,599   1.95%  
Interest-bearing deposits & federal funds sold     7,379     4   0.22%       124,947     74   0.24%  
Total average earning assets (1)     1,683,387     19,282   4.54% (6)     1,820,409     19,040   4.16% (6)
Non-interest earning assets     120,447                 128,390            
Total average assets   $ 1,803,834               $ 1,948,799            
                                     
INTEREST BEARING LIABILITIES                                    
Time deposits   $ 541,681     1,442   1.06%     $ 766,695     3,203   1.66%  
Other deposits     682,524     291   0.17%       615,040     274   0.18%  
Borrowed funds     109,655     421   1.52%       104,320     570   2.17%  
Total interest bearing liabilities     1,333,860     2,154   0.64% (7)     1,486,055     4,047   1.08% (7)
                                     
Non-interest bearing deposits     277,172                 263,871            
Other liabilities     12,385                 11,209            
Total average liabilities     1,623,417                 1,761,135            
                                     
Shareholders' equity     180,417                 187,664            
                                     
Total average liabilities and shareholders' equity   $ 1,803,834               $ 1,948,799            
                                     
NET INTEREST INCOME/YIELD (3,4)         $ 17,128   4.04%           $ 14,993   3.28%  
                                     
INTEREST SPREAD (5)               3.90%                 3.08%  
 
(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 2013 and 2012 includes $60,000 and $95,000, respectively, of accretion for purchase accounting adjustments related to loans acquired in the merger with American Community.
(7) Interest expense for 2013 and 2012 includes $9,000 and $43,000, respectively, of accretion for purchase accounting adjustments related to deposits and borrowings acquired in the merger with American Community.
 
   
   
   
Yadkin Financial Corporation  
Average Balance Sheets and Net Interest Income Analysis (Unaudited)  
                             
    Year Ended December 31,  
    2013     2012  
    (Dollars in Thousands)  
                             
    Average       Yield/     Average       Yield/  
    Balance   Interest   Rate     Balance   Interest   Rate  
INTEREST EARNING ASSETS                                    
Total loans (1,2)   $ 1,333,647   $ 67,719   5.08%     $ 1,399,590   $ 72,093   5.15%  
Investment securities     342,156     7,970   2.33%       343,137     7,761   2.26%  
Interest-bearing deposits &                                    
federal funds sold     23,280     72   0.31%       81,748     201   0.25%  
Total average earning assets (1)     1,699,083     75,761   4.46% (6)     1,824,475     80,055   4.39% (6)
Noninterest earning assets     124,481                 125,114            
Total average assets   $ 1,823,564               $ 1,949,589            
                                     
INTEREST BEARING LIABILITIES                                    
Time deposits   $ 599,629     7,409   1.24%     $ 813,035     14,176   1.74%  
Other deposits     669,452     1,139   0.17%       617,724     1,550   0.25%  
Borrowed funds     105,286     1,693   1.61%       102,895     2,262   2.20%  
Total interest bearing liabilities     1,374,367     10,241   0.75% (7)     1,533,654     17,988   1.17% (7)
                                     
Noninterest bearing deposits     261,510                 244,137            
Other liabilities     12,054                 14,666            
Total average liabilities     1,647,931                 1,792,457            
                                     
Shareholders' equity     175,633                 157,132            
                                     
Total average liabilities and shareholders' equity   $ 1,823,564               $ 1,949,589            
                                     
NET INTEREST INCOME/YIELD (3,4)         $ 65,520   3.86%           $ 62,067   3.40%  
                                     
INTEREST SPREAD (5)               3.71%                 3.21%  
 
(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 2013 and 2012 includes $238,000 and $253,000, respectively, of accretion for purchase accounting adjustments related to loans acquired in the merger with American Community.
(7) Interest expense for 2013 and 2012 includes $37,000 and $55,000, respectively, 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