Yadkin Valley Financial Corp. (YAVY, Financial) filed Quarterly Report for the period ended 2009-09-30.
Yadkin Valley Bank and Trust Company is a North Carolina state chartered bank headquartered in Elkin North Carolina. The Bank's primary business is providing general banking services for northwest North Carolina. Yadkin Valley Bank and Trust Company operates in the northwest Piedmont area of North Carolina serving the counties of Surry Wilkes Yadkin Ashe Iredell North Mecklenburg Watauga and Avery. The Bank enjoys the scenic beauty of the Blue Ridge Mountains. Each season offers a wide variety of outdoor activities including hiking camping skiing auto racing white water rafting and sports activities on every level. Yadkin Valley Financial Corp. has a market cap of $53.1 million; its shares were traded at around $3.29 with and P/S ratio of 0.6. The dividend yield of Yadkin Valley Financial Corp. stocks is 7.3%. Yadkin Valley Financial Corp. had an annual average earning growth of 18.4% over the past 5 years.
Loan growth concentration was divided within the following categories. Commercial loans increased by $30.9 million with $58.3 million acquired at the American Community merger. Commercial real estate loans increased by $151.2 million with $99.4 million acquired at the American Community merger. Construction and land development loans increased by $142.3 million with $131.9 million acquired at the American Community merger. Home equity lines of credit increased $64.5 million with $47.8 million acquired at the American Community merger. Consumer loans increased by $12.5 million with $12.9 million acquired at the American Community merger. Loans were funded by certificates of deposit (CODs), negotiable orders of withdrawal (NOW), and money market deposits. The Bank promoted one or more special COD rates throughout the period.
Mortgage loans held for sale decreased by $3.0 million, or 6.1%, from December 31, 2008 to September 30, 2009 as the Bank continued its strategy of selling mortgage loans mostly to various investors with servicing rights released and to a lesser extent to the Federal National Mortgage Association with servicing rights retained. These loans are normally held for a period of two to three weeks before being sold to investors. The timing of the loans closed within each month allowed the Bank to sell more of its outstanding loans at September 30, 2009 than at December 31, 2008. Mortgage loans closed in the first nine months of 2009 ranged from a low of $72.5 million in September to a high of $225.4 million in March and totaled $1,392.0 million. In the first nine months of 2008, total loans closed were $772.6 million. Mortgage loans sold during the nine months ended September 30, 2009 totaled $1,396.0 million compared to $780.5 million during the same period in the prior year. During April, 2008, Sidus expanded its footprint along the East Coast by entering into nine new states in the New England area. This, along with the drop in mortgage interest rates, contributed to the increase in gains on sales of mortgages and to the increased volume in mortgage loans originated and sold.
Other assets increased $27.7 million due largely to the $13.3 million acquired in the purchase of American Community, of which $7.0 million was related to deferred tax assets and income tax receivables. OREO increased $5.3 million with $433,000 attributable to the American Community merger and foreclosures in the amount of $9.5 million less dispositions of $3.2 million and losses of $1.4 million.
Deposits increased $591.7 million, or 51.2%, comparing September 30, 2009 to December 31, 2008. Deposits totaling $439.9 million were attributable to the American Community acquisition. Overall, noninterest-bearing demand deposits increased $52.1 million, or 33.9%, which includes $50.2 million from the American Community acquisition. NOW, savings, and money market accounts increased $129.8 million, or 45.7%, with American Community contributing $82.6 million. Certificates of deposit (CODs) over $100,000 increased $216.1 million, or 64.8%, and other CODs increased $193.7 million, or 50.4%. American Community contributed $183.5 million in CODs over
Borrowed funds decreased $71.7 million or 34.5 % comparing September 30, 2009 to December 31, 2008. Advances from the FHLB decreased $89.4 million excluding the $26.0 million in FHLB advances acquired from American Community, for a net decrease in FHLB advances of $63.4 million. Repurchase agreements increased $14.8 million, with $16.9 million added in the American Community merger, and overnight borrowings decreased $23.2 million. Long term borrowings included $34.9 million in trust preferred securities and advances from the FHLB of $39.1 million. The American Community merger added $10.3 million in trust preferred securities at a rate equal to the three-month LIBOR rate plus 2.80% and will mature in 2033. Yadkin Valley Statutory Trust I (the Trust) issued $25.8 million in trust preferred securities at a rate equal to the three-month LIBOR rate plus 1.32%. The trust preferred securities mature in 30 years, and can be called by the Trust without penalty after five years.
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Yadkin Valley Bank and Trust Company is a North Carolina state chartered bank headquartered in Elkin North Carolina. The Bank's primary business is providing general banking services for northwest North Carolina. Yadkin Valley Bank and Trust Company operates in the northwest Piedmont area of North Carolina serving the counties of Surry Wilkes Yadkin Ashe Iredell North Mecklenburg Watauga and Avery. The Bank enjoys the scenic beauty of the Blue Ridge Mountains. Each season offers a wide variety of outdoor activities including hiking camping skiing auto racing white water rafting and sports activities on every level. Yadkin Valley Financial Corp. has a market cap of $53.1 million; its shares were traded at around $3.29 with and P/S ratio of 0.6. The dividend yield of Yadkin Valley Financial Corp. stocks is 7.3%. Yadkin Valley Financial Corp. had an annual average earning growth of 18.4% over the past 5 years.
Highlight of Business Operations:
Total assets at September 30, 2009 were $2,051.7 million, an increase of $527.4 million, or 34.6%, compared to assets of $1,524.3 million at December 31, 2008. The increase included assets acquired from the American Community merger totaling $545.1 million. Without the additional assets acquired in the merger, assets would have decreased $17.6 million or 1.2%. The loan portfolio, net of allowance for losses, was $1,592.1 million including net loans at fair value from the American Community acquisition of $416.3 million at April 17, 2009, compared to $1,165.2 million at December 31, 2008. Gross loans held for investment increased by $458.8 million, or 38.6%, of which $416.3 million came from the American Community acquisition. Excluding the impact of the American Community acquisition, gross loans held for investment increased by $42.5 million, or 3.6%. The allowance for loan losses increased $31.9 million driven primarily by increased net charge-offs for the nine months ended September 30, 2009, which totaled $13.4 million,Loan growth concentration was divided within the following categories. Commercial loans increased by $30.9 million with $58.3 million acquired at the American Community merger. Commercial real estate loans increased by $151.2 million with $99.4 million acquired at the American Community merger. Construction and land development loans increased by $142.3 million with $131.9 million acquired at the American Community merger. Home equity lines of credit increased $64.5 million with $47.8 million acquired at the American Community merger. Consumer loans increased by $12.5 million with $12.9 million acquired at the American Community merger. Loans were funded by certificates of deposit (CODs), negotiable orders of withdrawal (NOW), and money market deposits. The Bank promoted one or more special COD rates throughout the period.
Mortgage loans held for sale decreased by $3.0 million, or 6.1%, from December 31, 2008 to September 30, 2009 as the Bank continued its strategy of selling mortgage loans mostly to various investors with servicing rights released and to a lesser extent to the Federal National Mortgage Association with servicing rights retained. These loans are normally held for a period of two to three weeks before being sold to investors. The timing of the loans closed within each month allowed the Bank to sell more of its outstanding loans at September 30, 2009 than at December 31, 2008. Mortgage loans closed in the first nine months of 2009 ranged from a low of $72.5 million in September to a high of $225.4 million in March and totaled $1,392.0 million. In the first nine months of 2008, total loans closed were $772.6 million. Mortgage loans sold during the nine months ended September 30, 2009 totaled $1,396.0 million compared to $780.5 million during the same period in the prior year. During April, 2008, Sidus expanded its footprint along the East Coast by entering into nine new states in the New England area. This, along with the drop in mortgage interest rates, contributed to the increase in gains on sales of mortgages and to the increased volume in mortgage loans originated and sold.
Other assets increased $27.7 million due largely to the $13.3 million acquired in the purchase of American Community, of which $7.0 million was related to deferred tax assets and income tax receivables. OREO increased $5.3 million with $433,000 attributable to the American Community merger and foreclosures in the amount of $9.5 million less dispositions of $3.2 million and losses of $1.4 million.
Deposits increased $591.7 million, or 51.2%, comparing September 30, 2009 to December 31, 2008. Deposits totaling $439.9 million were attributable to the American Community acquisition. Overall, noninterest-bearing demand deposits increased $52.1 million, or 33.9%, which includes $50.2 million from the American Community acquisition. NOW, savings, and money market accounts increased $129.8 million, or 45.7%, with American Community contributing $82.6 million. Certificates of deposit (CODs) over $100,000 increased $216.1 million, or 64.8%, and other CODs increased $193.7 million, or 50.4%. American Community contributed $183.5 million in CODs over
Borrowed funds decreased $71.7 million or 34.5 % comparing September 30, 2009 to December 31, 2008. Advances from the FHLB decreased $89.4 million excluding the $26.0 million in FHLB advances acquired from American Community, for a net decrease in FHLB advances of $63.4 million. Repurchase agreements increased $14.8 million, with $16.9 million added in the American Community merger, and overnight borrowings decreased $23.2 million. Long term borrowings included $34.9 million in trust preferred securities and advances from the FHLB of $39.1 million. The American Community merger added $10.3 million in trust preferred securities at a rate equal to the three-month LIBOR rate plus 2.80% and will mature in 2033. Yadkin Valley Statutory Trust I (the Trust) issued $25.8 million in trust preferred securities at a rate equal to the three-month LIBOR rate plus 1.32%. The trust preferred securities mature in 30 years, and can be called by the Trust without penalty after five years.
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