SOURCE: Yadkin Valley Financial Corporation

Yadkin Valley Financial Corporation

April 26, 2012 06:45 ET

Yadkin Valley Financial Corporation Continues Strong Operating Results With Third Consecutive Quarter of Profitability

ELKIN, NC--(Marketwire - Apr 26, 2012) - Yadkin Valley Financial Corporation (NASDAQ: YAVY)

First Quarter Highlights:

  • Net income available to common shareholders for the first quarter of 2012 was $2.7 million, or $0.14 per diluted share.
  • Net interest margin increased by 23 basis points to 3.54% due to continued improvement in our deposit mix, lowering our overall cost of deposits to 1.04%.
  • Adversely classified loans decreased $20 million, nonperforming loans decreased $4.3 million, and loans 30-89 days past due decreased $15.6 million compared to the previous quarter, which in turn led to improved credit quality and a decrease in our provision for loan losses.
  • We have fully realized the results of our expense management plan and believe that we are now operating at a more normalized run rate on employee and occupancy expenses, even though non-interest expense increased slightly in linked quarters.
  • Non-interest income, excluding securities gains, increased quarter over quarter, largely due to increases on gains from mortgage loan sales.
  • Leverage ratio, Tier 1 risk-based capital ratio, and total risk-based capital ratio were 8.6%, 10.9%, and 12.1%, respectively, for the holding company as of March 31, 2012.

Yadkin Valley Financial Corporation (NASDAQ: YAVY), the holding company for Yadkin Valley Bank and Trust Company, announced financial results for the first quarter ended March 31, 2012. Net income available to common shareholders for the quarter was $2.7 million, or $0.14 per diluted share, compared to net income of $2.2 million, or $0.11 per diluted share, in the fourth quarter of 2011, and a net loss of $1.6 million, or $0.10 per diluted share in the first quarter of 2011.

Joe Towell, President and CEO of Yadkin Valley Financial, commented, "Our strategic plan continues to yield results with our third consecutive quarter of meaningful profitability. The Bank's performance continues to stabilize as we improve key metrics such as net interest margin, cost of deposits, and the adversely classified assets ratio.

"Improving asset quality is one of our primary goals for 2012. We are pleased to see a $20 million decrease in our adversely classified loans, as we continue to work through problem loans. This decrease in classified loans, along with lower historical loan charge-offs, led to a lower provision for loan losses this quarter. Our loan loss reserve model has been deemed adequate by management and all third party reviews, and we believe it is on track to cover the potential losses remaining in our loan portfolio.

"We are excited about our strong net interest margin this quarter. While we did have some adjustments to our interest income throughout the second half of 2011, we believe 3.54% is a normalized margin, and we expect that to increase going forward as we continue to focus on improving our deposit mix with core deposit acquisition.

"We recently announced the filing of a Form S-1 resale registration statement. We feel this was a prudent act given the recent activity we have seen from the United States Treasury Department and the auctioning of other Banks' preferred stock held under the Troubled Asset Relief Program (TARP). We want to be ready, should an opportunity be made available to us. However, filing this form is not an assurance that the Company's TARP shares will be included in an auction or sold to one or more investors."

First Quarter 2012 Financial Highlights

Asset Quality

Nonperforming loans continued to decrease, down $4.3 million, to $66.1 million, or 4.69%, of total gross loans at March 31, 2012, compared to $70.4 million, or 4.78%, of total gross loans at December 31, 2011. The strategy regarding nonperforming loans continues to yield results as the inflow to the nonperforming category has slowed considerably. "We continue to keep tight focus on nonperforming loans," said Towell. "We believe that as the inflow to the nonperforming category slows, our credit quality trends are beginning to show improvement."

Nonperforming Loan Analysis
(Dollars in thousands)
March 31, 2012 December 31, 2011
% of % of
Outstanding Total Outstanding Total
Loan Type Balance Loans Balance Loans
Construction/land development $ 18,708 1.33 % $ 19,467 1.32 %
Residential construction 4,612 0.33 % 7,109 0.48 %
HELOC 2,632 0.19 % 2,222 0.15 %
1-4 Family residential 6,245 0.44 % 7,271 0.49 %
Commercial real estate 25,664 1.82 % 24,915 1.69 %
Commercial & industrial 7,782 0.55 % 8,896 0.61 %
Consumer & other 445 0.03 % 475 0.03 %
Total $ 66,088 4.69 % $ 70,355 4.78 %

Other Real Estate Owned ("OREO") totaled $28.8 million at March 31, 2012, an increase of $3.8 million compared to $25.0 million at December 31, 2011. This increase in OREO was the result of $7.1 million in foreclosures for the quarter, offset by dispositions of $2.4 million. We also recognized $774,000 in additional write downs on OREO, as management determined changes in asset values due to market trends. Total nonperforming assets at March 31, 2012 were $94.8 million, or 4.80% of total assets, a decrease of $482,000 from December 31, 2011.

During the first quarter of 2012, the provision for loan losses was $2.4 million, a decrease of $1.2 million from the fourth quarter of 2011. The decrease in provision was driven by a $20 million, or 15%, decrease in adversely classified loans and a 4.5% decrease in total loans compared to the previous quarter. Net charge-offs for the first quarter totaled $5.1 million, or 1.44% of average loans on an annualized basis, an increase of $600,000 from the fourth quarter. Of the $5.1 million in net charge-offs, $1.0 million was related to the valuation and write down of a loan held for potential sale.

At March 31, 2012 the allowance for loan losses was $30.1 million, compared to $32.8 million at December 31, 2011. As a percentage of total loans held-for-investment, the allowance for loan losses was 2.17% in the first quarter of 2012, down from 2.26% in the fourth quarter of 2011. Out of the $30.1 million in total allowance for loan losses at March 31, 2012, the specific allowance for impaired loans accounted for $3.4 million, down from $4.1 million in the fourth quarter. The specific allowance for impaired loans decreased because our impaired loan balances decreased. The remaining general allowance of $26.6 million attributed to unimpaired loans was down from $28.7 million at the end of the fourth quarter. This decrease was driven primarily by continued decreases in loans held-for-investment and improving trends in loans 30-89 days past due.

Net Interest Income and Net Interest Margin

Net interest income increased $279,000, or 1.7%, quarter over quarter, totaling $15.9 million for the first quarter of 2012. The net interest margin improved to 3.54%, up from 3.31% in the fourth quarter. While we are very pleased with our quarter-end net interest margin, the 23 basis point increase is really a stabilization of the margin following several adjustments to interest income that the Company addressed in the third and fourth quarters of 2011. Additionally, the managed shift in our deposit mix improved our net interest margin as cost of total deposits decreased to 1.04% for the quarter as compared to 1.09% in the fourth quarter of 2011.

Non-Interest Income

Non-interest income decreased $539,000, or 11.5%, to $4.1 million compared to $4.7 million in the fourth quarter of 2011. Excluding securities gains, our non-interest income actually increased by $125,000, largely due to our increase in mortgage income for the quarter.

Non-Interest Expense

Non-interest expense increased $260,000, or 1.8%, to $14.2 million, up from $13.9 million in the fourth quarter of 2011. The majority of this increase was driven by increased cost of operation of other real estate owned and the timing of several annual expenses in the salary and benefits line item.

Balance Sheet and Capital

Total assets decreased $16.6 million for the first quarter of 2012 as part of our continued balance sheet management strategy. Gross loans held-for-investment decreased $63.1 million compared to the fourth quarter of 2011, and total deposits decreased $20.5 million. This deposit decrease continues to be mostly higher-cost time deposits, as our non-interest bearing demand deposits continue to increase in volume.

The Bank remains well-capitalized for regulatory purposes. As of March 31, 2012, the Bank's leverage ratio, Tier 1 risk-based capital ratio, and total risk-based capital ratio were 8.3%, 10.6%, and 11.9%, respectively. Leverage ratio, Tier 1 risk-based capital ratio, and total risk-based capital ratio were 8.6%, 10.9%, and 12.1% respectively, for the holding company as of March 31, 2012. For capital adequacy purposes, leverage ratio, Tier 1 risk-based capital ratio, and total risk-based capital ratio must be in excess of 5.00%, 6.00%, and 10.00%, respectively, to be considered well-capitalized. Regulatory capital ratios for the Company continue to improve due to positive operating results.

Conference Call

Yadkin Valley Financial Corporation will host a conference call at 10:00 a.m. EDT on Thursday, April 26, 2012 to discuss financial results, business highlights, and outlook. The call may be accessed by dialing 877-359-3650 at least 10 minutes prior to the call. A webcast of the call audio and accompanying visual aids may be accessed at http://investor.shareholder.com/media/eventdetail.cfm?eventid=112539&CompanyID=YAVY&e=1&mediaKey=C0BD0B7D7BA30A3E46A5C745FA0F7F34. A replay of the call will be available until May 3, 2012 by dialing 855-859-2056 or 404-537-3406 and entering access code 73819351.

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 34 branches throughout its two regions in North Carolina and South Carolina. The Western Region serves Avery, Watauga, Ashe, Surry, Wilkes, Yadkin, and Iredell Counties. The Southern Region serves Durham, Orange, Granville, 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 Greensboro, NC. Securities brokerage services are provided by Main Street Investment Services, Inc., a Bank subsidiary with four 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) the rate of delinquencies and amounts of charge-offs, the level of allowance for loan losses, 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; (2) competitive pressures among depository and other financial institutions may increase significantly and have an effect on pricing, spending, third-party relationships and revenues; (3) 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; (4) the risk that the preliminary financial information reported herein and our current preliminary analysis will be different when our review is finalized; (5) changes in deposit rates, the net interest margin, and funding sources; (6) changes in the U.S. legal and regulatory framework, including the effect of recent financial reform legislation on the banking industry; and (7) 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 statements to reflect circumstances or events that occur after the date the forward-looking statements are made.

Yadkin Valley Financial Corporation
Consolidated Balance Sheets (Unaudited)
(Amounts in thousands except share and per share data)
March 31, December 31, September 30, June 30, March 31,
2012 2011 (a) 2011 2011 2011
Assets:
Cash and due from banks $ 36,478 $ 40,790 $ 32,315 $ 30,011 $ 31,537
Federal funds sold 50 50 50 36 50
Interest-earning deposits with banks 67,443 52,078 136,552 99,122 188,003
U.S. government agencies 23,433 23,726 24,013 34,485 24,262
Mortgage-backed securities 263,230 232,494 201,586 214,796 208,037
State and municipal securities 72,751 73,118 66,369 67,034 68,090
Common and preferred stocks 1,111 1,084 1,110 1,144 1,140
Total investment securities 360,525 330,422 293,078 317,459 301,529
Construction loans 196,991 202,803 229,789 243,681 261,083
Commercial, financial and other loans 187,037 200,750 197,672 204,421 216,056
Residential mortgages 166,563 179,047 179,457 179,372 181,057
Commercial real estate loans 605,539 631,639 625,193 632,209 646,657
Installment loans 34,926 35,465 37,125 39,275 40,546
Revolving 1-4 family loans 196,818 201,220 204,364 205,309 207,308
Total Loans 1,387,874 1,450,924 1,473,600 1,504,267 1,552,707
Allowance for loan losses (30,062 ) (32,848 ) (33,673 ) (35,652 ) (35,860 )
Net loans 1,357,812 1,418,076 1,439,927 1,468,615 1,516,847
Loans held for sale 20,548 19,534 13,801 27,737 32,880
Accrued interest receivable 6,932 6,745 6,447 7,066 7,515
Bank premises and equipment 41,861 42,120 44,074 44,173 46,245
Foreclosed real estate 28,751 24,966 21,307 22,046 27,461
Non-marketable equity securities at cost 6,130 6,130 7,005 7,814 9,416
Investment in bank-owned life insurance 26,091 25,934 25,769 25,602 25,441
Goodwill - - - - 4,944
Core deposit intangible 3,455 3,733 4,015 4,304 4,602
Other assets 20,530 22,610 22,791 27,057 34,421
Total assets $ 1,976,606 $ 1,993,188 $ 2,047,131 $ 2,081,042 $ 2,230,891
Liabilities and shareholders' equity:
Deposits:
Non-interest bearing $ 235,417 $ 229,895 $ 228,448 $ 222,556 $ 222,457
NOW, savings and money market accounts 626,538 625,560 615,303 597,611 631,791
Time certificates:
$100 or more 356,793 360,388 383,877 409,410 443,312
Other 492,072 515,498 556,484 596,218 662,246
Total deposits 1,710,820 1,731,341 1,784,112 1,825,795 1,959,806
Borrowings 105,723 105,539 108,309 103,524 109,452
Accrued expenses and other liabilities 16,571 15,722 16,494 17,656 15,125
Total liabilities 1,833,114 1,852,602 1,908,915 1,946,975 2,084,383
Total shareholders' equity 143,492 140,586 138,216 134,067 146,508
Total liabilities and shareholders' equity $ 1,976,606 $ 1,993,188 $ 2,047,131 $ 2,081,042 $ 2,230,891
Period End Shares Outstanding 19,506,188 19,526,188 19,526,188 19,526,188 16,292,640
(a) Derived from audited consolidated financial statements
Yadkin Valley Financial Corporation
Consolidated Income Statements (Unaudited)
Three Months Ended
(Amounts in thousands except share and per share data)
March 31, December 31, September 30, June 30, March 31,
2012 2011 (a) 2011 2011 2011
Interest and fees on loans $ 18,946 $ 19,186 $ 19,339 $ 20,768 $ 21,349
Interest on securities 2,006 1,709 2,146 2,255 2,108
Interest on federal funds sold 7 6 7 9 6
Interest-bearing deposits 37 71 71 90 115
Total interest income 20,996 20,972 21,563 23,122 23,578
Time deposits of $100 or more 1,993 2,271 2,326 2,541 2,938
Other deposits 2,371 2,569 3,120 3,731 4,380
Borrowed funds 725 504 484 539 570
Total interest expense 5,089 5,344 5,930 6,811 7,888
Net interest income 15,907 15,628 15,633 16,311 15,690
Provision for loan losses 2,350 3,627 1,956 10,393 4,867
Net interest income after provision for loan losses 13,557 12,001 13,677 5,918 10,823
Non-interest income
Service charges on deposit accounts 1,343 1,509 1,604 1,437 1,345
Other service fees 760 874 905 967 962
Net gain on sales of mortgage loans 1,351 1,287 1,122 179 1,899
Income on investment in bank owned life insurance 157 166 167 161 163
Mortgage banking operations 435 6 (21 ) 103 207
Gains on sale of securities - 678 1,556 429 93
Other than temporary impairment of investments - - (74 ) (22 ) (20 )
Other 75 140 90 102 142
Total non-interest income 4,121 4,660 5,349 3,356 4,791
Non-interest expense
Salaries and employee benefits 6,731 6,383 6,198 7,793 7,870
Occupancy and equipment 1,851 1,781 1,962 2,330 2,170
Printing and supplies 145 154 141 156 181
Data processing 387 377 404 381 373
Communication expense 351 367 372 473 445
Advertising and marketing 76 101 127 169 171
Amortization of core deposit intangible 278 282 289 299 305
FDIC assessment expense 694 718 79 1,328 1,350
Attorney fees 216 108 95 194 92
Loan collection expense 249 319 378 465 433
Loss on fixed assets 21 13 286 1,195 -
Net cost of operation of other real estate owned 1,229 1,086 759 2,430 794
Goodwill impairment - - - 4,944 -
Other 1,979 2,258 1,873 2,300 2,725
Total non-interest expense 14,207 13,947 12,963 24,457 16,909
Income (loss) before income taxes 3,471 2,714 6,063 (15,183 ) (1,295 )
Provision for income taxes (benefit) - (211 ) 2,384 5,030 (509 )
Net income (loss) 3,471 2,925 3,679 (20,213 ) (786 )
Preferred stock dividend and amortization of preferred stock discount 821 771 771 674 771
Net income (loss) available to common shareholders $ 2,650 $ 2,154 $ 2,908 $ (20,887 ) $ (1,557 )
Basic $ 0.14 $ 0.11 $ 0.15 $ (1.16 ) $ (0.10 )
Diluted $ 0.14 $ 0.11 $ 0.15 $ (1.16 ) $ (0.10 )
Weighted average number of shares outstanding
Basic 19,378,198 19,371,469 19,364,855 18,041,174 16,130,529
Diluted 19,378,198 19,371,469 19,364,855 18,041,174 16,130,529
(a) Derived from audited consolidated financial statements
Yadkin Valley Financial Corporation
(unaudited)
At or For the Three Months Ended
March 31, December 31, September 30, June 30, March 31,
2012 2011 2011 2011 2011
Per Share Data:
Basic Earnings (Loss) per Share $ 0.14 $ 0.11 $ 0.15 $ (1.16 ) $ (0.10 )
Diluted Earnings (Loss) per Share 0.14 0.11 0.15 (1.16 ) (0.10 )
Book Value per Share 4.92 4.77 4.66 4.45 6.11
Selected Performance Ratios:
Return on Average Assets (annualized) 0.54 % 0.42 % 0.56 % -3.87 % -0.28 %
Return on Average Equity (annualized) 6.48 % 6.17 % 8.49 % -55.25 % -4.27 %
Net Interest Margin (annualized) 3.54 % 3.31 % 3.29 % 3.30 % 3.07 %
Net Interest Spread (annualized) 3.35 % 3.14 % 3.11 % 3.11 % 2.88 %
Non-interest Income as a % of Revenue(6) 23.31 % 27.97 % 28.11 % 36.19 % 30.69 %
Non-interest Income as a % of Average Assets 0.21 % 0.23 % 0.26 % 0.16 % 0.21 %
Non-interest Expense as a % of Average Assets 0.72 % 0.69 % 0.63 % 1.13 % 0.75 %
Asset Quality:
Loans 30-89 days past due (000's) (4) $ 10,245 $ 25,888 $ 23,739 $ 24,368 $ 23,756
Loans over 90 days past due still accruing (000's) - - - - -
Nonperforming Loans (000's) 66,088 70,355 70,775 68,898 71,368
Other Real Estate Owned (000's) 28,751 24,966 21,307 22,046 27,461
Nonperforming Assets (000's) 94,839 95,321 92,082 90,944 98,829
Accruing troubled debt restructurings (000's) (5) 15,259 17,173 21,809 12,932 14,998
Nonperforming Loans to Total Loans 4.69 % 4.78 % 4.76 % 4.50 % 4.50 %
Nonperforming Assets to Total Assets 4.80 % 4.78 % 4.50 % 4.37 % 4.43 %
Allowance for Loan Losses to Total Loans 2.13 % 2.23 % 2.26 % 2.33 % 2.26 %
Allowance for Loan Losses to Total Loans Held for Investment 2.17 % 2.26 % 2.29 % 2.37 % 2.31 %
Allowance for Loan Losses to Nonperforming Loans 45.49 % 47.31 % 47.58 % 51.75 % 50.25 %
Net Charge-offs/Recoveries to Average Loans (annualized) 1.44 % 1.20 % 1.04 % 2.73 % 1.71 %
Capital Ratios:
Equity to Total Assets 7.26 % 7.05 % 6.75 % 6.44 % 6.57 %
Tier 1 leverage ratio(1) 8.30 % 7.99 % 7.58 % 7.14 % 7.07 %
Tier 1 risk-based ratio(1) 10.61 % 10.23 % 9.72 % 9.42 % 9.39 %
Total risk-based capital ratio(1) 11.87 % 11.49 % 10.98 % 10.68 % 10.65 %
Non-GAAP disclosures(2):
Tangible Book Value per Share $ 4.74 $ 4.58 $ 4.45 $ 4.23 $ 5.53
Return on Tangible Equity (annualized) (3) 6.63 % 6.34 % 8.49 % -58.92 % -4.57 %
Tangible Equity to Tangible Assets (3) 7.10 % 6.88 % 6.57 % 6.25 % 6.17 %
Efficiency Ratio 68.54 % 66.41 % 59.60 % 121.07 % 79.86 %
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) Management uses these non-GAAP financial measures because it believes it is 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 provides 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 Equity is the difference of shareholders' 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
(4) Past due numbers exclude loans classified as nonperforming.
(5) Troubled debt restructured loans exclude loans classified as nonperforming.
(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.
Yadkin Valley Financial Corporation
Average Balance Sheets and Net Interest Income Analysis (Unaudited)
Three Months Ended March 31,
2012 2011
(Dollars in Thousands)
Average Yield/ Average Yield/
Balance Interest Rate Balance Interest Rate
INTEREST EARNING ASSETS
Total loans (1,2) $ 1,433,311 $ 18,983 5.31 % $ 1,602,393 $ 21,391 5.41 %
Investment securities 349,550 2,261 2.59 % 296,220 2,375 3.25 %
Interest-bearing deposits & federal funds sold 50,358 44 0.35 % 217,476 121 0.23 %
Total average earning assets (1) $ 1,833,219 21,288 4.66 % (6) $ 2,116,089 23,887 4.58 %
Noninterest earning assets 135,971 148,253
Total average assets $ 1,969,190 $ 2,264,342
INTEREST BEARING LIABILITIES
Time deposits $ 843,763 3,859 1.83 % $ 1,167,137 6,114 2.12 %
Other deposits 616,823 505 0.33 % 605,139 1,204 0.81 %
Borrowed funds 104,187 725 2.79 % 111,065 570 2.08 %
Total interest bearing liabilities 1,564,773 5,089 1.30 % (7) 1,883,341 7,888 1.70 %
Noninterest bearing deposits 224,427 218,444
Other liabilities 16,100 14,618
Total average liabilities 1,805,300 2,116,404
Shareholders' equity 163,890 147,939
Total average liabilities and shareholders' equity $ 1,969,190 $ 2,264,343
NET INTEREST INCOME/ YIELD (3,4) $ 16,199 3.54 % $ 15,999 3.07 %
INTEREST SPREAD (5) 3.35 % 2.88 %
(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 2012 and 2011 includes $41,000 and $176,000, respectively, of accretion for purchase accounting adjustments related to loans acquired in the merger with American Community.
(7) Interest expense for 2012 and 2011 includes $135,000 and $116,000, 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