Yadkin Valley Financial Corp., the parent company of Yadkin Valley Bank and Trust, saw its first quarter earnings grow 56 percent from a year earlier to $4.2 million.
Officials with Elkin-based Yadkin Valley Financial (NASDAQ: YAVY) also said that the bank is in the process of re-branding its multiple banking and financial services divisions under one identity. The new brand deletes the word “valley” from its name.
The company lost $25 million in the fourth quarter of 2012, which officials say was caused by the bank opting to charge off bad loans and liquidated foreclosed properties.
According to its financial statements, non-interest income rose 63 percent from a year earlier, to $5.7 million, primarily because of mortgage-related revenue.
Non-interest expense fell 3 percent from a year earlier, to $13.2 million.
Net interest income fell 6 percent from the first quarter of 2012, to $15 million.
The net interest margin expanded 2 basis points from a year earlier, to 3.57 percent.
Total loans decreased roughly 6 percent from a year earlier, $1.3 billion. The loan-loss provision fell significantly from the first quarter of 2012, to $237,000.
Current Yadkin Valley Financial’s various affiliated entities and acquisitions are High Country Bank, Piedmont Bank, Cardinal State Bank and American Community Bank.
Bank officials said having all of these names muddles the messaging and doesn’t allow the public to understand its core business values.
To remedy, company officials said that as of May 28, the company will do business as Yadkin Financial Corp. and Yadkin Bank. The mortgage division will be called Yadkin Mortgage and the brokerage will be Yadkin Wealth. The company’s ticker symbol on the NASDAQ stock exchange will change to YDKN.
“We are very pleased with our results in the first quarter, and we are also excited to be able to announce our re-branding initiative in conjunction with our financial results. With strong core net income, a significant decrease in our non-interest expense, increased loan production, and continued strong results from our mortgage division,we believe that we are getting back to the basics of banking and providing superior financial solutions and service to our customers throughout the Carolinas,” said CEO Joe Towell.
“Our re-branding initiative is a project we have been developing for some time,” said Towell. “While there was benefit to retaining the names of our five community banks, our mortgage division and our brokerage subsidiary over the years, we believe that now is the time to harness the synergy of our organization by bringing the values of our company together under one strong brand.”
In Elkin and surrounding communities, Yadkin Bank signs have replaced the old signs. The new signs are bagged, covered with its current name until until May 28.
“I didn’t even notice the sign construction,” said local customer Walter Wright of State Road. “They have a right to change their name, but like anything else I look for service. I don’t think people care around here what they call themselves, so long as they have good service.”
The bank said first quarter financial highlights were the result of a real estate auction during the quarter, which it said resulted in a $1.1 million net gain.
Net income available to common shareholders for the first quarter of 2013 is $0.10 per diluted share.
The bank is also initiating a reverse stock split. That split would be up to shareholders who must approve the measure when they meet at its annual meeting scheduled for May 23.
Reach Anthony Gonzalez at 3360835-1513 or email at email@example.com.