SOURCE: Yadkin Valley Bank and Trust Company

April 21, 2006 15:36 ET

Yadkin Valley Bank and Trust Company Announces Net Income Increase of 18.9% for the First Quarter

ELKIN, NC -- (MARKET WIRE) -- April 21, 2006 -- Yadkin Valley Bank and Trust Company, Elkin, NC, (NASDAQ: YAVY) reports earnings of $2,928,201 for the quarter ended March 31, 2006, an increase of 18.9% as compared with earnings of $2,462,712 for the same quarter last year. Basic and diluted earnings per share were $0.27 and $0.23, for the quarters ended March 31, 2006 and 2005, respectively.

Total assets grew by $13.7 million during the quarter or 5.4%, annualized. Deposit growth of $19.2 million at an annualized rate of 9.6% was used to fund the $8.5 million growth in gross loans held for investment and to repay borrowed funds. The net interest margin expanded to 4.55% in the first quarter of 2006 from 3.99% in the first quarter of 2005.

Commenting on the results, Bill Long, President and CEO, stated, "Our loan and deposit growth continues to be steady from four new branches opened in the last eighteen months and from business development in our established branches. Total loans and deposits from the four new branches were $28.6 million and $45.4 million, respectively, at March 31, 2006. Our strength in community banking continues to be in personal relationships with consumers and growing businesses in the communities we serve. Building these relationships and developing products to increase fee income while keeping expenses under control has allowed us to grow earnings while adding branches and building an infrastructure to support further growth and profitability."

Yadkin Valley Bank and Trust Company is a full service community bank providing services in twenty-three branches throughout its three regions in North Carolina. The Yadkin Valley Bank region serves Ashe, 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 Bank provides mortgage services through its subsidiary, Sidus Financial, LLC, headquartered in Greenville, North Carolina. Securities brokerage services are provided by Main Street Investment Services, Inc., a Bank subsidiary with four offices located in the branch network.

This news release contains forward-looking statements. Such statements are subject to certain factors that may cause the Bank's results to vary from those expected. These factors include changing economic and financial market conditions, competition, ability to execute our business plan, items already mentioned in this press release, and other factors described in our filings with the Federal Deposit Insurance Corporation. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's judgment only as of the date hereof. The Bank undertakes no obligation to publicly revise these forward-looking statements to reflect events and circumstances that arise after the date hereof.


Yadkin Valley Bank and Trust Company
(Amounts in thousands except per share data)
(unaudited)
                                             For the Three Months Ended
                                            March 31,           March 31,
                                              2006                2005

Net interest income                            $9,795              $8,066
Provision for loan losses                         565                 382
Other income                                    3,346               2,929
Other expenses                                  8,126               7,016
Income taxes                                    1,522               1,134
Net income                                      2,928               2,463
Income per share:
 Basic                                          $0.27               $0.23
 Diluted                                        $0.27               $0.23



                                       As of March 31,   As of December 31,
                                               2006                2005 *

Assets                                     $1,037,951          $1,024,295
Securities available for sale                 115,471             113,716
Gross loans held for investment               746,065             737,530
Allowance for loan losses                      (9,977)             (9,474)
Loans held for sale                            40,372              31,427
Goodwill                                       32,136              32,136
Core deposit intangible                         5,643               5,850
Non-interest bearing deposits                 143,588             135,912
NOW, savings, and money market                246,999             251,423
Time deposits over $100,000                   179,408             170,574
Other time deposits                           263,554             256,444
Stockholders' equity                          117,628             116,323
Shares outstanding                             10,659              10,680

* Note: Derived from audited financial statements



Yadkin Valley Bank and Trust Company
(unaudited)



                            Mar 31,   Dec 31,   Sep 30,   Jun 30,   Mar 31,
                             2006      2005      2005      2005      2005
Per Share Data:
Basic Earnings per Share    $ 0.27    $ 0.28    $ 0.27    $ 0.26    $ 0.23
Diluted Earnings per Share  $ 0.27    $ 0.27    $ 0.27    $ 0.26    $ 0.23
Book Value per Share        $11.04    $10.89    $10.80    $10.65    $10.48
Tangible Book Value per
 Share                      $ 7.49    $ 7.33    $ 7.27    $ 7.10    $ 6.91
Cash Dividends per Share    $ 0.11    $ 0.11    $ 0.11    $ 0.11    $ 0.10

Selected Performance Ratios:
Return on Average Assets
 (annualized)                 1.18%     1.17%     1.17%     1.16%     1.05%
Return on Average Equity
 (annualized)                10.06%    10.03%    10.07%     9.87%     8.93%
Return on Tangible Equity
 (annualized)                14.82%    14.82%    14.98%    14.82%    13.48%
Net Interest Margin           4.55%     4.26%     4.04%     4.03%     3.99%
Net Interest Spread           4.09%     3.81%     3.64%     3.68%     3.65%
Noninterest Income as a %
 of Revenue                  26.61%    27.69%    30.76%    28.54%    27.60%
Noninterest Income as a %
 of Average Assets            0.33%     0.34%     0.37%     0.33%     0.31%
Noninterest Expense as a %
 of Average Assets            0.81%     0.78%     0.77%     0.73%     0.74%
Efficiency Ratio             59.37%    59.49%    58.94%    58.26%    61.16%

Asset Quality:
Nonperforming Loans (000's)  3,478     3,199     3,059     4,076     4,919
Nonperforming Assets(000's)  3,765     3,962     4,085     4,972     6,025
Nonperforming Loans to Total
 Loans                        0.44%     0.42%     0.40%     0.54%     0.68%
Nonperforming Assets to Total
 Assets                       0.36%     0.39%     0.41%     0.50%     0.63%
Allowance for Loan Losses to
 Total Loans                  1.27%     1.23%     1.23%     1.19%     1.20%
Allowance for Loan Losses to
 Nonperforming Loans          2.87      2.96      3.04      2.21      1.77
Net Charge-offs to Average
 Loans (annualized)           0.03%     0.15%     0.11%     0.03%     0.20%

Capital Ratios:
Equity to Total Assets       11.33%    11.36%    11.58%    11.49%    11.70%
Tangible Equity to Total
 Tangible Assets              7.98%     7.94%     8.10%     7.97%     8.04%
Tier 1 leverage ratio         8.31%     8.19%     8.14%     8.10%     8.12%
Tier 1 risk-based ratio       9.49%     9.38%     9.45%     9.35%     9.52%
Total risk-based capital
 ratio                       10.66%    10.51%    10.59%    10.46%    10.64%

Contact Information

  • For additional information contact:
    William A. Long
    President and CEO
    Edwin E. Laws
    CFO
    (336) 526-6312