YADKIN FINANCIAL CORP 
By ELKIN, NC -- (Marketwired) -- 01/29/14 -- Yadkin Financial Corporation (NASDAQ: YDKN)
Fourth Quarter Highlights:
- Net income available to common shareholders for the fourth quarter of 2013 was $4.2 million, or $0.30 per diluted share.
- The average net interest margin for the quarter was 4.04%, an increase of 11 basis points compared to the prior quarter, and the Company's highest margin in the last eight quarters.
- Total loan balances increased $25.3 million, or 1.9% compared to the prior quarter, our third consecutive quarter of loan growth.
- Nonperforming assets decreased for the fifth consecutive quarter, ending the quarter at 1.03% of total assets.
- Gross charge-offs for the quarter totaled $1.3 million, offset by $1.4 million in recoveries.
Full Year 2013 Highlights
- Net income available to common shareholders for the full year 2013 was $16.9 million, or $1.19 per diluted share.
- Total loan balances increased 3.8% in 2013, demonstrating the Company's strong commitment to organic growth in our markets.
- The average net interest margin for the 12 months ending December 31, 2013 was 3.86%, an increase of 46 basis points compared to the prior year-end.
-
Credit quality continued to improve following the accelerated asset disposition plan carried out during the fourth quarter of 2012. Comparing December 31, 2013 to December 31, 2012:
- Nonperforming loans have decreased 32.5%,
- Loans 30-89 days past due have decreased 37.8%,
- Nonperforming assets have decreased 40.9%
- The allowance for loan losses to total loans held-for-investment was 1.33% at December 31, 2013. It remains adequate for the level of risk on the Company's balance sheet, and management remains committed to maintaining adequate coverage.
- Net interest income after provision for the fourth quarter has increased $36.6 million compared to the fourth quarter of 2012, due to the significant decrease in provision for loan losses during the year as a result of improved credit quality.
Yadkin Financial Corporation (NASDAQ: YDKN), the holding company for Yadkin Bank, announced today financial results for the fourth quarter ended December 31, 2013. Net income available to common shareholders for the quarter was $4.2 million, or $0.30 per diluted share, compared to net income of $4.3 million, or $0.30 per diluted share, in the third quarter of 2013, and net loss of $25.3 million, or $3.63 per diluted share, in the fourth quarter of 2012.
Joe Towell, President and CEO of Yadkin Financial, commented, "2013 was a very strong year for Yadkin Bank. We returned to stability and strength following the execution of our accelerated asset disposition plan at the end of 2012, and we haven't looked back. Every business unit in the Bank worked toward making 2013 a year of consistent and meaningful profitability, and we have accomplished that goal. While doing this, we have continued to improve our credit quality, we have hired several talented individuals in key positions, and we have focused on internal reorganization to ensure efficiency and effectiveness at every level of the Company. All of this progress has allowed us to ensure that customer experience is top of mind in all that we do. I am proud of our team for their hard work throughout the year.
"Our loan growth is the big highlight, both for the fourth quarter and for the year. Loan balances increased 1.9% quarter over quarter, and 3.8% year over year, which exceeded our internal expectations, as economic growth remains at a slower pace. Clearly, this demonstrates our commitment to quality growth, as we have achieved these goals while continuing to show improvement in our overall credit quality metrics.
"In addition to our organic growth, we have continued to explore strategic options available to our Company, and our recent announcement is the culmination of those efforts. We are excited about building the largest community bank in North Carolina through our partnership with VantageSouth Bank, as we announced our plans for a transformational merger-of-equals. We believe this is the best next step for our two companies, and we are fully focused on creating value for our shareholders."
Fourth Quarter 2013 Financial Highlights
Asset Quality
The Bank's key asset quality metrics continue to be strong as we maintain our focus on quality lending, underwriting, and problem asset resolution. First, our adversely classified assets to Tier 1 capital and loan loss reserve ratio has continued to decrease, down to 21.28% at the end of the fourth quarter. Our nonperforming loans decreased $2.5 million compared to the prior quarter, to $15.4 million at December 31, 2013. In addition, the nonperforming loans to total loans ratio decreased to 1.12% at December 31, 2013, compared to 1.33% at September 30, 2013.
Nonperforming Loan Analysis
(Dollars in thousands)
-----------------------------------------
December 31, 2013 September 30, 2013
------------------- -------------------
% of % of
Outstanding Total Outstanding Total
Loan Type Balance Loans Balance Loans
----------------------------------------------------------------------------
Construction/land development $ 1,742 0.13% $ 2,917 0.22%
Residential construction 589 0.04% 548 0.04%
HELOC 1,285 0.09% 1,373 0.10%
1-4 Family residential 2,734 0.20% 3,312 0.25%
Commercial real estate 6,479 0.47% 7,831 0.58%
Commercial & industrial 2,306 0.17% 1,622 0.12%
Consumer & other 258 0.02% 271 0.02%
----------- ------ ----------- ------
Total $ 15,393 1.12% $ 17,874 1.33%
----------- ------ ----------- ------
Other real estate owned (OREO) totaled $3.3 million at December 31, 2013, a slight increase of $278,000 compared to $3.0 million at September 30, 2013. Total nonperforming assets at December 31, 2013 were $18.7 million, or 1.03% of total assets, a decrease of $2.2 million from September 30, 2013. In addition, total gross charge-offs for the fourth quarter of 2013 were $1.3 million, offset by recoveries totaling $1.4 million.
During the fourth quarter of 2013, the provision for loan losses was ($3.0 million). This decrease in provision resulted in a $3.0 million decrease in the allowance for loan losses as well. Following the accelerated asset disposition plan, credit quality has continued to improve, leading to a decrease in the allowance which was prudent given the risk profile of the Company's balance sheet. Management continues to focus on the allowance to ensure that adequate coverage is maintained.
At December 31, 2013, the allowance for loan losses was $18.1 million, compared to $21.0 million at September 30, 2013. As a percentage of total loans held-for-investment, the allowance for loan losses was 1.33% in the fourth quarter of 2013, down from 1.58% in the third quarter of 2013. Out of the $18.1 million in total allowance for loan losses at December 31, 2013, the specific allowance for impaired loans accounted for $557,000, up from $409,000 in the third quarter. The remaining general allowance of $17.5 million attributed to unimpaired loans was down from $20.6 million at the end of the third quarter.
Net Interest Income and Net Interest Margin
Net interest income after provision increased by $3.7 million to $19.8 million for the quarter. Our net interest margin continued to expand with the quarterly average margin increasing 11 basis points to 4.04%, up from 3.93% at September 30, 2013. This increase in margin is due to our continued loan growth, consistent yield on loans, and continued focus on our deposit mix.
In the fourth quarter of 2013, our cost of deposits continued to decrease as we finished our final phase of deposit repricing. Core deposits represent 63.3% of total deposits, and our total deposits increased $27.1 million compared to the prior quarter. As a result of this strategy, our cost of deposits decreased to 0.46% for the quarter as compared to 0.51% in the third quarter of 2013.
Non-Interest Income
Non-interest income decreased $4.2 million to $1.2 million in the fourth quarter compared to $5.4 million in the third quarter of 2013. This decrease is due primarily to a loss on sale of securities, as we restructured a portion of our portfolio to be better positioned in the current rate environment.
Non-Interest Expense
Non-interest expense decreased $438,000 during the fourth quarter, down to $13.7 million as compared to $14.2 million in the third quarter. This decrease is primarily due to year-end accrual adjustments that occurred during the quarter.
Balance Sheet and Capital
Total assets decreased $7.5 million during the fourth quarter of 2013 as our loan growth was offset by a decrease on our securities portfolio. Total loans increased $25.3 million as compared to the prior quarter, marking our third consecutive quarter of loan growth. Total deposits increased $27.1 million and core deposits represented more than 65% of that increase.
The Company's capital ratios have strengthened and continue to exceed all regulatory requirements. As of December 31, 2013, the Bank's leverage ratio, Tier 1 risk-based capital ratio, and total risk-based capital ratio were 11.2%, 13.2%, and 14.5%, respectively. Leverage ratio, Tier 1 risk-based capital ratio, and total risk-based capital ratio were 11.5%, 13.5%, and 14.6% respectively, for the holding company as of December 31, 2013. In addition, the Company's tangible common equity to total tangible assets ratio was 8.5% at the end of the fourth quarter, compared to 8.2% at September 30, 2013. For capital adequacy purposes, leverage ratio, Tier 1 risk-based capital ratio, and total risk-based capital ratio must be in excess of 5.0%, 6.0%, and 10.0%, respectively, to be considered well-capitalized.
About Yadkin Financial Corporation
Yadkin Financial Corporation is the holding company for Yadkin Bank, a full-service community bank with 33 branches throughout its two regions in North Carolina and South Carolina. The Western Region serves Avery, Watauga, Ashe, Surry, Wilkes, Yadkin, Durham, and Orange Counties. The Southern Region serves Iredell, Mecklenburg, and Union Counties in North Carolina, and Cherokee and York Counties in South Carolina. The Bank provides mortgage-lending services through its mortgage division, Yadkin Mortgage, headquartered in Greensboro, NC. Securities brokerage services are provided by Yadkin Wealth, Inc., a Bank subsidiary with offices located throughout the branch network. Yadkin Financial Corporation's website is www.yadkinbank.com. Yadkin shares are traded on NASDAQ under the symbol YDKN.
SAFE HARBOR
This news release contains forward-looking statements, as defined by Federal Securities Laws, including statements about financial outlook and business environment. Forward looking statements generally include words such as "expects," "projects," "anticipates," "believes," "intends," "estimates," "strategy," "plan," "potential," "possible" and other similar expressions. These statements are provided to assist in the understanding of future financial performance and such performance involves risks and uncertainties that may cause actual results to differ materially from those anticipated in such statements. Any such statements are based on current expectations and involve a number of risks and uncertainties. For a discussion of some factors that may cause such forward-looking statements to differ materially from actual results, please refer to the section entitled "Forward Looking Statements" on pages 44-45 of Yadkin Financial Corporation's quarterly report filed on Form 10-Q with the SEC for the quarters ended September 30, 2013, June 30, 2013, and March 31, 2013, and in the section entitled "Risk Factors" in the annual report filed on Form 10-K for the year ended December 31, 2012 and, once available, the annual report filed on Form 10-K for the year ended December 31, 2013. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update or revise forward-looking statements.
Yadkin Financial Corporation
Consolidated Balance Sheets (Unaudited)
(Amounts in thousands except share and per share data)
December September December
31, 30, June 30, March 31, 31,
2013 2013 2013 2013 2012 (a)
----------- ----------- ----------- ----------- -----------
Assets:
Cash and due
from banks $ 32,226 $ 32,417 $ 28,104 $ 22,210 $ 36,125
Federal funds
sold 10 15 50 50 50
Interest-
earning
deposits with
banks 8,759 6,695 4,654 20,447 102,221
U.S. government
agencies 16,392 16,536 16,625 17,232 27,527
Mortgage-backed
securities 170,674 199,492 203,173 248,030 230,894
State and
municipal
securities 98,704 109,626 110,410 115,435 84,567
Common and
preferred
stocks 3,152 3,036 137 149 132
----------- ----------- ----------- ----------- -----------
Total
investment
securities 288,922 328,690 330,345 380,846 343,120
Construction
loans 131,035 128,951 127,564 133,200 131,981
Commercial,
financial and
other loans 206,833 191,874 186,965 182,268 193,810
Residential
mortgages 174,072 171,747 167,784 166,565 140,931
Commercial real
estate loans 621,405 616,116 604,667 596,790 617,468
Installment
loans 31,256 31,450 32,133 32,037 33,426
Revolving 1-4
family loans 194,145 193,299 195,648 193,404 191,888
----------- ----------- ----------- ----------- -----------
Total loans 1,358,746 1,333,437 1,314,761 1,304,264 1,309,504
Allowance for
loan losses (18,063) (21,014) (22,924) (24,492) (25,149)
----------- ----------- ----------- ----------- -----------
Net loans 1,340,683 1,312,423 1,291,837 1,279,772 1,284,355
Loans held for
sale 18,913 12,632 22,545 18,461 27,679
Accrued
interest
receivable 6,219 6,339 6,546 6,502 6,376
Bank premises
and equipment 40,698 41,050 42,410 42,454 41,849
Foreclosed real
estate 3,267 2,989 3,812 5,449 8,738
Non-marketable
equity
securities at
cost 3,473 5,273 3,473 3,474 4,154
Investment in
bank-owned
life insurance 27,032 26,888 26,736 26,587 26,433
Core deposit
intangible 1,974 2,133 2,301 2,475 2,653
Other assets 33,872 35,973 39,102 37,865 39,685
----------- ----------- ----------- ----------- -----------
Total
assets $ 1,806,048 $ 1,813,517 $ 1,801,915 $ 1,846,592 $ 1,923,438
=========== =========== =========== =========== ===========
Liabilities and
shareholders'
equity:
Deposits:
Non-interest
bearing $ 267,596 $ 266,951 $ 252,618 $ 257,388 $ 273,912
NOW, savings
and money
market
accounts 693,558 676,502 686,438 656,524 624,460
Time
certificates:
$100 or more 227,919 236,787 251,168 281,652 316,146
Other 329,350 311,096 332,873 366,095 417,144
----------- ----------- ----------- ----------- -----------
Total
deposits 1,518,423 1,491,336 1,523,097 1,561,659 1,631,662
Borrowings 89,214 131,080 91,896 99,160 105,136
Accrued
expenses and
other
liabilities 13,920 12,229 12,306 10,922 15,846
----------- ----------- ----------- ----------- -----------
Total
liabilities 1,621,557 1,634,645 1,627,299 1,671,741 1,752,644
Total
shareholders'
equity 184,491 178,872 174,616 174,851 170,794
----------- ----------- ----------- ----------- -----------
Total
liabilities
and
shareholders'
equity $ 1,806,048 $ 1,813,517 $ 1,801,915 $ 1,846,592 $ 1,923,438
=========== =========== =========== =========== ===========
Period end
shares
outstanding 14,383,986 14,383,986 14,383,986 14,383,884 14,383,882
(a) Derived from audited consolidated financial statements.
Yadkin Financial Corporation
Consolidated Income Statements (Unaudited)
Three Months Ended
(Amounts in thousands except share and per share data)
December September December
31, 30, June 30, March 31, 31,
2013 2013 2013 2013 2012
----------- ---------------------- ----------- ----------
Interest and fees
on loans $ 17,126 $ 16,849$ 16,950 $ 16,679 $ 17,338
Interest on
securities 1,773 1,616 1,686 1,548 1,381
Interest on
federal funds
sold 1 - 2 6 8
Interest-bearing
deposits 3 5 13 42 66
----------- ---------------------- ----------- ----------
Total interest
income 18,903 18,470 18,651 18,275 18,793
----------- ---------------------- ----------- ----------
Time deposits of
$100 or more 803 877 1,009 1,352 1,346
Other deposits 929 1,034 1,112 1,432 2,132
Borrowed funds 422 423 409 439 570
----------- ---------------------- ----------- ----------
Total interest
expense 2,154 2,334 2,530 3,223 4,048
----------- ---------------------- ----------- ----------
Net interest
income 16,749 16,136 16,121 15,052 14,745
Provision for
loan losses (3,017) 40 55 237 31,554
----------- ---------------------- ----------- ----------
Net interest
income after
provision for
loan losses 19,766 16,096 16,066 14,815 (16,809)
----------- ---------------------- ----------- ----------
Non-interest
income
Service charges
on deposit
accounts 1,264 1,336 1,317 1,269 1,398
Other service
fees 1,066 1,259 1,401 927 986
Income on
investment in
bank-owned
life insurance 145 152 150 153 159
Mortgage
banking
activities 1,162 1,713 2,546 3,288 1,448
Gain (loss) on
sale of
securities (2,884) 253 272 4 96
Other than
temporary
impairment of
investments - - - (39) (50)
Loss on sale of
subsidiary - - - (1) (1,019)
Gain (loss) on
sale of loans 202 - 373 - (2,132)
Gain on sale of
branch - 310 - - -
Other 227 358 125 56 100
----------- ---------------------- ----------- ----------
Total non-
interest
income 1,182 5,381 6,184 5,657 986
----------- ---------------------- ----------- ----------
Non-interest
expense
Salaries and
employee
benefits 7,854 7,780 7,953 7,389 6,935
Occupancy and
equipment 2,049 2,001 1,951 1,815 1,562
Printing and
supplies 151 159 150 163 157
Data processing 376 374 350 395 447
Communication
expense 368 350 338 332 354
Advertising and
marketing (322) 348 433 256 77
Amortization of
core deposit
intangible 159 166 175 178 260
FDIC assessment
expense 433 363 642 592 664
Attorney fees 81 90 178 90 263
Other
professional
fees 456 237 497 476 736
Loan collection
expense 118 203 201 217 569
(Gain) loss on
fixed assets (12) 154 - - 153
Net cost of
operation of
other real
estate owned 302 93 (174) (822) 8,136
Other 1,699 1,832 2,149 2,134 2,395
----------- ---------------------- ----------- ----------
Total non-
interest
expense 13,712 14,150 14,843 13,215 22,708
----------- ---------------------- ----------- ----------
Income (loss)
before income
taxes 7,236 7,327 7,407 7,257 (38,531)
Provision for
income taxes
(benefit) 2,579 2,616 2,598 2,608 (14,632)
----------- ---------------------- ----------- ----------
Net income (loss) 4,657 4,711 4,809 4,649 (23,899)
----------- ---------------------- ----------- ----------
Preferred
stock
dividend and
amortization
of preferred
stock
discount 421 421 590 445 1,419
----------- ---------------------- ----------- ----------
Net income (loss)
available to
common
shareholders $ 4,236 $ 4,290$ 4,219 $ 4,204 $ (25,318)
=========== ====================== =========== ==========
Net income (loss)
per common share
(a)
Basic $ 0.30 $ 0.30$ 0.30 $ 0.30 $ (3.63)
Diluted $ 0.30 $ 0.30$ 0.30 $ 0.30 $ (3.63)
Weighted average
number of common
shares
outstanding
Basic 14,206,070 14,205,705 14,205,223 14,198,382 6,972,526
Diluted 14,259,809 14,249,152 14,223,604 14,200,424 6,972,526
(a) Net income (loss) per share for periods prior to the second quarter of
2013 have been adjusted to reflect the 1-for-3 reverse stock split.
Yadkin Financial Corporation
(unaudited)
At or For the Three Months Ended
-------------------------------------------------
December September June 30, March December
31, 2013 30, 2013 2013 31, 2013 31, 2012
-------- --------- -------- -------- --------
Per Share Data:
Basic Earnings per Share
(8) $ 0.30 $ 0.30 $ 0.30 $ 0.30 $ (3.63)
Diluted Earnings per
Share (8) 0.30 0.30 0.30 0.30 (3.63)
Book Value per Share (8) 10.85 10.47 10.17 10.21 9.93
Selected Performance
Ratios:
Return on Average Assets
(annualized) 0.93% 0.95% 0.93% 0.91% -5.15%
Return on Average Equity
(annualized) 9.31% 9.74% 9.63% 9.94% -53.53%
Net Interest Margin
(annualized) 4.04% 3.93% 3.90% 3.57% 3.28%
Net Interest Spread
(annualized) 3.90% 3.80% 3.76% 3.40% 3.08%
Non-interest Income as a
% of Revenue (6) 5.64% 25.05% 27.79% 27.63% -6.23%
Non-interest Income as a
% of Average Assets 0.07% 0.30% 0.34% 0.30% 0.05%
Non-interest Expense as a
% of Average Assets 0.76% 0.79% 0.82% 0.70% 1.17%
Asset Quality:
Loans 30-89 days past due
(000's) (4) $ 8,702 $ 4,412 $ 6,493 $ 6,060 $ 14,000
Loans over 90 days past
due still accruing
(000's) - - - - -
Nonperforming Loans
(000's) 15,393 17,874 19,698 23,712 22,817
Other Real Estate Owned
(000's) 3,267 2,989 3,812 5,449 8,738
Nonperforming Assets
(000's)(5) 18,660 20,864 23,510 29,161 31,555
Accruing/Performing
troubled debt
restructurings (000's) 6,287 5,599 9,162 8,579 17,667
Nonperforming Loans to
Total Loans 1.12% 1.33% 1.47% 1.79% 1.71%
Nonperforming Assets to
Total Assets 1.03% 1.15% 1.30% 1.58% 1.64%
Allowance for Loan Losses
to Total Loans 1.31% 1.56% 1.71% 1.85% 1.88%
Allowance for Loan Losses
to Total Loans Held for
Investment 1.33% 1.58% 1.74% 1.88% 1.92%
Allowance for Loan Losses
to Nonperforming Loans 117.34% 117.57% 116.38% 103.29% 110.22%
Net Charge-offs
(Recoveries) to Average
Loans (annualized) -0.02% 0.58% 0.49% 0.27% 9.74%
Capital Ratios:
Equity to Total Assets 10.22% 9.86% 9.69% 9.47% 8.88%
Tier 1 leverage ratio(1) 11.24% 10.88% 10.30% 9.72% 8.92%
Tier 1 risk-based
ratio(1) 13.21% 12.92% 12.49% 12.23% 11.73%
Total risk-based capital
ratio(1) 14.41% 14.17% 13.74% 13.49% 12.99%
Non-GAAP disclosures(2):
Tangible Book Value per
Share $ 10.71 $ 10.32 $ 10.01 $ 10.03 $ 9.75
Return on Tangible Equity
(annualized) (3) 9.42% 9.87% 9.76% 10.09% -54.34%
Tangible Common Equity to
Tangible Assets (3) 8.54% 8.19% 8.00% 7.83% 7.30%
Efficiency Ratio (7) 62.80% 63.47% 66.55% 66.39% 88.62%
Notes:
(1) Tier 1 leverage, Tier 1 risk-based, and Total risk-based ratios are
ratios for the bank, Yadkin Bank 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
they are 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 provide 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 Common Equity is the difference of shareholders' equity less
preferred shares and core deposit intangibles. Tangible Assets are the
difference of total assets less core deposit intangibles.
(4) Past due numbers exclude loans classified as nonperforming.
(5) Nonperforming assets exclude accruing troubled debt restructured loans.
(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.
(7) Efficiency ratio is calculated by taking noninterest expense less the
amortization of intangibles and gains on sale of OREO, as a percentage of
total taxable equivalent net interest income and noninterest income less
gains on sale of securities, gains (losses) on sale of loans, gains on sale
of branch and other than temporary impairment of investments.
(8) Per share amounts for periods prior to the second quarter of 2013 have
been adjusted to reflect the 1-for-3 reverse stock split.
Yadkin Financial Corporation
Average Balance Sheets and Net Interest Income Analysis (Unaudited)
Three Months Ended December 31,
--------------------------------------------------------
2013 2012
-------------------------- --------------------------
(Dollars in Thousands)
Average Yield/ Average Yield/
Balance Interest Rate Balance Interest Rate
---------- -------- ------ ---------- -------- ------
INTEREST EARNING
ASSETS
Total loans
(1,2) $1,353,039 $ 17,156 5.03% $1,369,884 $ 17,367 5.04%
Investment
securities 322,969 2,122 2.61% 325,578 1,599 1.95%
Interest-bearing
deposits &
federal funds
sold 7,379 4 0.22% 124,947 74 0.24%
---------- -------- ---------- --------
Total average
earning assets
(1) 1,683,387 19,282 4.54%(6) 1,820,409 19,040 4.16%(6)
-------- --------
Non-interest
earning assets 120,447 128,390
---------- ----------
Total average
assets $1,803,834 $1,948,799
========== ==========
INTEREST BEARING
LIABILITIES
Time deposits $ 541,681 1,442 1.06% $ 766,695 3,203 1.66%
Other deposits 682,524 291 0.17% 615,040 274 0.18%
Borrowed funds 109,655 421 1.52% 104,320 570 2.17%
---------- -------- ---------- --------
Total interest
bearing
liabilities 1,333,860 2,154 0.64%(7) 1,486,055 4,047 1.08%(7)
Non-interest
bearing
deposits 277,172 263,871
Other
liabilities 12,385 11,209
---------- ----------
Total average
liabilities 1,623,417 1,761,135
---------- ----------
Shareholders'
equity 180,417 187,664
---------- ----------
Total average
liabilities and
shareholders'
equity $1,803,834 $1,948,799
========== ==========
-------- --------
NET INTEREST
INCOME/YIELD
(3,4) $ 17,128 4.04% $ 14,993 3.28%
======== ========
INTEREST SPREAD
(5) 3.90% 3.08%
(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 2013 and 2012 includes $60,000 and $95,000,
respectively, of accretion for purchase accounting adjustments related to
loans acquired in the merger with American Community.
(7) Interest expense for 2013 and 2012 includes $9,000 and $43,000,
respectively, of accretion for purchase accounting adjustments related to
deposits and borrowings acquired in the merger with American Community.
Yadkin Financial Corporation
Average Balance Sheets and Net Interest Income Analysis (Unaudited)
Year Ended December 31,
--------------------------------------------------------
2013 2012
-------------------------- --------------------------
(Dollars in Thousands)
Average Yield/ Average Yield/
Balance Interest Rate Balance Interest Rate
---------- -------- ------ ---------- -------- ------
INTEREST EARNING
ASSETS
Total loans
(1,2) $1,333,647 $ 67,719 5.08% $1,399,590 $ 72,093 5.15%
Investment
securities 342,156 7,970 2.33% 343,137 7,761 2.26%
Interest-bearing
deposits &
ederal funds
sold 23,280 72 0.31% 81,748 201 0.25%
---------- -------- ---------- --------
Total average
earning assets
(1) 1,699,083 75,761 4.46%(6) 1,824,475 80,055 4.39%(6)
-------- --------
Noninterest
earning assets 124,481 125,114
---------- ----------
Total average
assets $1,823,564 $1,949,589
========== ==========
INTEREST BEARING
LIABILITIES
Time deposits $ 599,629 7,409 1.24% $ 813,035 14,176 1.74%
Other deposits 669,452 1,139 0.17% 617,724 1,550 0.25%
Borrowed funds 105,286 1,693 1.61% 102,895 2,262 2.20%
---------- -------- ---------- --------
Total interest
bearing
liabilities 1,374,367 10,241 0.75%(7) 1,533,654 17,988 1.17%(7)
Noninterest
bearing
deposits 261,510 244,137
Other
liabilities 12,054 14,666
---------- ----------
Total average
liabilities 1,647,931 1,792,457
---------- ----------
Shareholders'
equity 175,633 157,132
---------- ----------
Total average
liabilities and
shareholders'
equity $1,823,564 $1,949,589
========== ==========
-------- --------
NET INTEREST
INCOME/YIELD
(3,4) $ 65,520 3.86% $ 62,067 3.40%
======== ========
INTEREST SPREAD
(5) 3.71% 3.21%
(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 2013 and 2012 includes $238,000 and $253,000,
respectively, of accretion for purchase accounting adjustments related to
loans acquired in the merger with American Community.
(7) Interest expense for 2013 and 2012 includes $37,000 and $55,000,
respectively, of accretion for purchase accounting adjustments related to
deposits and borrowings acquired in the merger with American Community.
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
Source: Yadkin Financial Corporation
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