Yadkin Valley Financial rises on higher Q2 profit
Shares of Yadkin Valley Financial Corp. (Nasdaq: YAVY) have managed a small gain following news of a second-quarter earnings increase.
The net income for the three months ended June 30 was $3.79 million, an increase of 10.7% compared with $3.42 million a year earlier, the Elkin, N.C.-based bank holding company announced before the opening bell.
That comes to $0.35 per share, in line with what three analysts polled by Thomson Financial were expecting. Yadkin Valley Financial had a profit of $0.32 per share during the second quarter of 2006.
The company attributed its improved profitability to a 17.9% rise in non-interest income and a 63.6% drop in provision for loan losses.
Yadkin Valley’s second quarter was marked by the purchase of Durham, N.C.-based Cardinal State Bank (Nasdaq: CSNC) for about $41.8 million.
“The merger process is moving along very smoothly, and we anticipate a mid-September 2007 closing and a mid-January 2008 system conversion,” Yadkin Valley President and CEO Bill Long said.
Cardinal State Bank operates in Durham County, the top North Carolina county for loan and deposit growth in 2006.
Yadkin Valley Financial Corp.’subsidiary, Yadkin Valley Bank and Trust Company, is a full service community bank with 26 branches in North Carolina.
At 11:53 a.m. ET the stock was up $0.27, or 2%, to $17.67. The 52-week high of $21.15 was reached on Jan. 31. The 52-week low of $14.49 was set on July 24, 2006.
