Yadkin Valley Financial Corp. (YAVY, Financial) filed Quarterly Report for the period ended 2010-03-31.
Yadkin Valley Financial Corp. has a market cap of $76 million; its shares were traded at around $4.71 with and P/S ratio of 0.6.
Mortgage loans held-for-sale decreased by $25.4 million, or 51.1%, from December 31, 2009 to March 31, 2010 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 March 31, 2010 than at December 31, 2009. Mortgage loans closed in the first three months of 2010 ranged from a low of $40.4 million in February to a high of $57.0 million in January and totaled $145.7 million. Mortgage loans closed during the three months ended March 31, 2009 totaled $563.5 million. The slowdown in refinance activity and overall decrease in real estate sales, contributed to the decrease in gains on sales of mortgages and to the decreased volume in mortgage loans originated and sold.
Deposits increased $87.3 million, or 4.8%, comparing March 31, 2010 to December 31, 2009. Overall, noninterest-bearing demand deposits increased $3.4 million, or 1.6%, NOW, savings, and money market accounts increased $9.7 million, or 2.2%, Certificates of deposit (CODs) over $100,000 decreased $31.6 million, or 5.6%, and other CODs increased $105.8 million, or 17.4%. The Bank promoted one or more special money market account and COD rates throughout the period.
Borrowed funds increased $3.1 million or 2.5% comparing March 31, 2010 to December 31, 2009. Repurchase agreements increased $3.8 million, while advances from FHLB and overnight borrowings decreased slightly. Long term borrowings included $35.0 million in trust preferred securities and advances from the FHLB of $75.1 million. The American Community merger added $10.4 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 $25.9 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.
Net income for the three-month period ended March 31, 2010 was $914,000 before preferred dividends, compared to a net loss of $4.2 million in the same period of 2009. Net income available to common shareholders for the three-month period ended March 31, 2010 was $143,000. Basic and diluted earnings per common share were $0.01 for the three-month period ended March 31, 2010. Basic and diluted loss per common share were $0.40 for the three month period ended March 31, 2009. On an annualized basis, first quarter results represent a return on average assets of 0.03% at March 31, 2010 compared to (1.19%) at March 31, 2009, and a return on average equity of 0.38% compared to (10.24%) at March 31, 2009.
Net interest income, the largest contributor to earnings, increased $6.9 million or 69.5% to $16.8 million in the first quarter of 2010, compared with $9.9 million in the same period of 2009. The increase was attributable to the additional net interest income earned by the recently acquired American Community region of $3.3 million for the period and the accretion of fair market valuations of $1.0 million recorded in connection with the American Community acquisition. The net interest margin increased to 3.47% in the first three months of 2010 from 2.87% in the first three months of 2009. Excluding the accretion, net interest margin for the first three months of 2010 increased to 3.27% as compared to 2.87% in the first three months of 2009. The increase in margin year over year was driven by
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Yadkin Valley Financial Corp. has a market cap of $76 million; its shares were traded at around $4.71 with and P/S ratio of 0.6.
Highlight of Business Operations:
Total assets at March 31, 2010 were $2,203.1 million, an increase of $89.5 million, or 4.2%, compared to assets of $2,113.6 million at December 31, 2009. The loan portfolio, net of allowance for losses, was $1,610.6 million compared to $1,627.8 million at December 31, 2009. Gross loans held-for-investment decreased by $20.4 million, or 1.2%. The allowance for loan losses decreased $3.2 million driven primarily by decreases in substandard loans and decreases in the other qualitative factors related to substandard loans for the three months ended March 31, 2010. Qualitative factors assessed on classified loans decreased as improvements were made in the calculation of potential losses related to classified loans. Beginning in the first quarter of 2010, multiple data points were made to incorporate twelve month averages of default trends and historical charge-offs. Offsetting the decreases in qualitative factors related to classified loans and decreases in loan balances were increases in other qualitative factors impacted by increased past dues, nonaccruals and charge-offs. See Note 9 for further discussion of the allowance for loan losses.Mortgage loans held-for-sale decreased by $25.4 million, or 51.1%, from December 31, 2009 to March 31, 2010 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 March 31, 2010 than at December 31, 2009. Mortgage loans closed in the first three months of 2010 ranged from a low of $40.4 million in February to a high of $57.0 million in January and totaled $145.7 million. Mortgage loans closed during the three months ended March 31, 2009 totaled $563.5 million. The slowdown in refinance activity and overall decrease in real estate sales, contributed to the decrease in gains on sales of mortgages and to the decreased volume in mortgage loans originated and sold.
Deposits increased $87.3 million, or 4.8%, comparing March 31, 2010 to December 31, 2009. Overall, noninterest-bearing demand deposits increased $3.4 million, or 1.6%, NOW, savings, and money market accounts increased $9.7 million, or 2.2%, Certificates of deposit (CODs) over $100,000 decreased $31.6 million, or 5.6%, and other CODs increased $105.8 million, or 17.4%. The Bank promoted one or more special money market account and COD rates throughout the period.
Borrowed funds increased $3.1 million or 2.5% comparing March 31, 2010 to December 31, 2009. Repurchase agreements increased $3.8 million, while advances from FHLB and overnight borrowings decreased slightly. Long term borrowings included $35.0 million in trust preferred securities and advances from the FHLB of $75.1 million. The American Community merger added $10.4 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 $25.9 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.
Net income for the three-month period ended March 31, 2010 was $914,000 before preferred dividends, compared to a net loss of $4.2 million in the same period of 2009. Net income available to common shareholders for the three-month period ended March 31, 2010 was $143,000. Basic and diluted earnings per common share were $0.01 for the three-month period ended March 31, 2010. Basic and diluted loss per common share were $0.40 for the three month period ended March 31, 2009. On an annualized basis, first quarter results represent a return on average assets of 0.03% at March 31, 2010 compared to (1.19%) at March 31, 2009, and a return on average equity of 0.38% compared to (10.24%) at March 31, 2009.
Net interest income, the largest contributor to earnings, increased $6.9 million or 69.5% to $16.8 million in the first quarter of 2010, compared with $9.9 million in the same period of 2009. The increase was attributable to the additional net interest income earned by the recently acquired American Community region of $3.3 million for the period and the accretion of fair market valuations of $1.0 million recorded in connection with the American Community acquisition. The net interest margin increased to 3.47% in the first three months of 2010 from 2.87% in the first three months of 2009. Excluding the accretion, net interest margin for the first three months of 2010 increased to 3.27% as compared to 2.87% in the first three months of 2009. The increase in margin year over year was driven by
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