Yadkin Valley Financial posts 10.2 million profit
Aug 07, 2012 (Menafn - The Tribune - McClatchy-Tribune Information Services via COMTEX) --Yadkin Valley Bank & Trust's parent company posted a profit of 10.2 million during the second quarter of 2012.
It was the fourth consecutive quarter in which the Elkin-based company posted a profit.
"Continuing to execute our game plan is proving to be the right strategy for our company. We are glad to see our fourth consecutive quarter of profitability, and a nice boost to net income and capital with the reversal of our deferred tax asset valuation allowance," said Joe Towell, president and CEO of Yadkin Valley Financial Corp. "Excluding the reversal of the valuation allowance of 9.8 million, we posted after-tax net income of 1.2 million before preferred dividends."
"While we are pleased with our results this quarter, we remain intently focused on problem asset resolution," Towell said. "And we recognize that this is not a smooth process due to economic conditions and other factors beyond our control."
On Sunday, Yadkin Valley Financial Corp. was trading as 2.64 a share. In January 2007, it was trading as high as 20.51 a share. In the third quarter of 2011, it posted a 2.9 million profit, in the fourth quarter of 2011 it posted a 2.15 million profit, and in the first quarter of 2012 posted a 3.5 million profit.
The results were a major improvement from the results of the second quarter of 2011, in which the company posted a loss of 20.9 million.
Other second quarter highlights:
-The Company reversed the remaining deferred tax asset valuation allowance, resulting in 9.8 million in recovery to tax expense and a sign of strength for the Company.
-Adversely classified loans decreased 11.5 million, or 10.1%, compared to the first quarter, which contributed to lower provision for loan losses of 2.2 million, down from 2.4 million in the first quarter of 2012.
-Nonperforming assets decreased 5.9 million to 88.9 million, or 4.57% of total assets, down from 94.8 million, or 4.80% of total assets at March 31, 2012.
-Nonperforming loans decreased 2.8 million, down to 63.3 million for the second quarter of 2012.
-Non-interest income increased by 899,000, or 25.4%, to 4.4 million, largely due to increases in mortgage banking activity income.
-Leverage ratio, Tier 1 risk-based capital ratio, and total risk-based capital ratio were 8.8%, 11.2%, and 12.4%, respectively, for the holding company as of June 30, 2012, exceeding all regulatory requirements.
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