Yadkin Financial Corporation Announces First Quarter 2014 Results, Highlights Strength of Core Banking Activities
ELKIN, NC--(Marketwired - Apr 24, 2014) - Yadkin Financial Corporation (NASDAQ: YDKN)
First Quarter Highlights:
- Net income available to common shareholders excluding merger-related expenses for the first quarter of 2014 was $4.6 million, or $0.32 per diluted share. Net income available to common shareholders was $3.3 million, or $0.23 per diluted share.
- The Company incurred merger-related expenses in the first quarter in association with our pending merger with VantageSouth of $1.4 million or $0.09 per diluted share.
- The average net interest margin for the quarter was 4.11%, an increase of 7 basis points compared to the prior quarter.
- Total loan balances increased $24.0 million, or 1.8%, compared to the prior quarter, our fourth consecutive quarter of loan growth.
- Nonperforming assets decreased for the fifth consecutive quarter, ending the quarter at 0.99% of total assets.
- Net charge-offs totaled $1.1 million, or 0.32% of average loans on an annualized basis, for the first quarter of 2014.
Yadkin Financial Corporation (NASDAQ: YDKN), the holding company for Yadkin Bank, announced today financial results for the first quarter ended March 31, 2014. Net income available to common shareholders excluding merger-related expenses for the quarter was $4.6 million, or $0.32 per share. Net income available to common shareholders for the quarter was $3.3 million, or $0.23 per diluted share, compared to $4.2 million, or $0.30 per diluted share, for the fourth quarter of 2013, and $4.2 million, or $0.30 per diluted share, for the first quarter of 2013.
Joe Towell, President and CEO of Yadkin Financial Corporation, commented, "We are pleased with our results for the first quarter of 2014 and are particularly proud of our net interest margin, which is increasing due to the strong performance of our core bank. Our net interest margin expanded to 4.11% this quarter as a result of commercial and consumer loan growth, a decrease in our cost of deposits, and increasing yield in our securities portfolio. Furthermore, our asset quality continues to improve, as our nonperforming assets to total assets ratio was 0.99% at the end of the first quarter.
We continue to execute on our organic loan growth strategy and capitalize on increasing loan demand in our markets. Loan balances increased for the fourth consecutive quarter, and are up 1.8% over the prior quarter. Additionally, we are excited about the response from our recent launch of the Business Express loan program for small business customers. This expedited loan platform streamlines the paperwork and approval process so that qualified customers can receive loan decisions quickly and efficiently. Small businesses are at the core of our community banking strategy, and we believe this program allows us to serve them in even better ways.
We are working diligently through the integration process in our pending merger with VantageSouth. We have been encouraged to see the success of our teams working together, as we target closing the merger in the third quarter of 2014. Our strategic focus in this merger process is to create the least amount of disruption for customers on both sides while working to create an efficient community bank with a robust set of products and services. We will continue to provide updates on our progress in the coming quarters."
First Quarter 2014 Financial Highlights
Asset Quality
Yadkin 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 exceed expectations, down to 17.01% at the end of the first quarter. Our nonperforming loans were down slightly compared to the prior quarter, totaling $15.1 million at March 31, 2014. In addition, the nonperforming loans to total loans ratio decreased to 1.09% at March 31, 2014, compared to 1.12% at December 31, 2013.
Nonperforming Loan Analysis | ||||||||||||
(Dollars in thousands) | ||||||||||||
March 31, 2014 | December 31, 2013 | |||||||||||
% of | % of | |||||||||||
Outstanding | Total | Outstanding | Total | |||||||||
Loan Type | Balance | Loans | Balance | Loans | ||||||||
Construction/land development | $ | 1,595 | 0.12 | % | $ | 1,742 | 0.13 | % | ||||
Residential construction | 586 | 0.04 | % | 589 | 0.04 | % | ||||||
HELOC | 904 | 0.07 | % | 1,285 | 0.09 | % | ||||||
1-4 Family residential | 2,682 | 0.19 | % | 2,734 | 0.20 | % | ||||||
Commercial real estate | 7,797 | 0.56 | % | 6,479 | 0.47 | % | ||||||
Commercial & industrial | 1,245 | 0.09 | % | 2,306 | 0.17 | % | ||||||
Consumer & other | 272 | 0.02 | % | 258 | 0.02 | % | ||||||
Total | $ | 15,081 | 1.09 | % | $ | 15,393 | 1.12 | % | ||||
Other real estate owned (OREO) totaled $2.8 million at March 31, 2014, a decrease of $400,000 compared to December 31, 2013. Total nonperforming assets at March 31, 2014 were $17.9 million, or 0.99% of total assets, a decrease of $750,000 from December 31, 2013. In addition, total net charge-offs for the first quarter of 2014 were $1.1 million, or 0.32% of average loans on an annualized basis.
During the first quarter of 2014, the recovery of loan losses was $460,000, which combined with the net charge-offs noted above, resulted in a $1.5 million decrease in the allowance for loan losses as compared to the prior quarter. 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 March 31, 2014, the allowance for loan losses was $16.5 million, compared to $18.1 million at December 31, 2013. As a percentage of total loans held-for-investment, the allowance for loan losses was 1.19% in the first quarter of 2014, down from 1.33% in the fourth quarter of 2013. Out of the $16.5 million in total allowance for loan losses at March 31, 2014, the specific allowance for impaired loans accounted for $690,000, up from $557,000 in the fourth quarter. The remaining general allowance of $15.8 million attributed to unimpaired loans was down from $17.5 million at the end of the fourth quarter.
Net Interest Income and Net Interest Margin
Net interest income after provision decreased by $2.7 million to $17.1 million for the quarter. In the prior quarter, the Company recorded a $3.0 million provision reversal, which positively impacted our net interest income after provision. In the first quarter of 2014, we recorded $460,000 in provision reversal, leading to the decrease in net interest income after provision. Our net interest margin continued to expand with the quarterly average margin increasing 7 basis points to 4.11%, up from 4.04% at December 31, 2013.
In the first quarter of 2014, our core deposits increased by $31.0 million, and core deposits now represent 65.0% of total deposits. As a result of this strategy, our cost of deposits decreased to 0.45% for the quarter as compared to 0.46% in the fourth quarter of 2013.
Non-Interest Income
Non-interest income increased $3.5 million to $4.7 million in the first quarter compared to $1.2 million in the fourth quarter of 2013. This increase is due primarily to a gain on sale of securities recognized during the quarter, as management made a strategic decision to redeploy the cash from this gain on sale to our lending activities.
Non-Interest Expense
Non-interest expense increased $1.5 million during the first quarter, to $15.2 million as compared to $13.7 million in the fourth quarter. This increase is primarily the result of $1.4 million in merger-related expenses recorded during the first quarter of 2014.
Balance Sheet and Capital
Total assets increased $7.5 million during the first quarter of 2014, due primarily to our continued loan growth, offset by the decrease in our securities portfolio.
The Company's capital ratios have strengthened and continue to exceed all regulatory requirements. As of March 31, 2014, the Bank's leverage ratio, Tier 1 risk-based capital ratio, and total risk-based capital ratio were 11.7%, 13.7%, and 14.8%, respectively. Leverage ratio, Tier 1 risk-based capital ratio, and total risk-based capital ratio were 11.9%, 13.9%, and 15.0% respectively, for the holding company as of March 31, 2014. In addition, the Company's tangible common equity to total tangible assets ratio was 8.8% at the end of the first quarter, compared to 8.5% at December 31, 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.
Conference Call
Yadkin Financial Corporation will host a conference call at 10:00 a.m. EDT on Thursday, April 24, 2014 to discuss financial results, business highlights, and outlook. The call may be accessed by dialing 877-312-5527 at least 10 minutes prior to the call. A webcast of the call audio may be accessed at http://www.media-server.com/m/p/58beuukr. A replay of the call will be available until April 30, 2014 by dialing 855-859-2056 or 404-537-3406 and entering Conference ID 28304860.
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 1-2 of Yadkin Financial Corporation's annual report filed on Form 10-K with the SEC for the year ended December 31, 2013, and in the section entitled "Risk Factors" in 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) | ||||||||||||||||||
March 31, 2014 |
December 31, 2013 (a) |
September 30, 2013 |
June 30, 2013 | March 31, 2013 | ||||||||||||||
Assets: | ||||||||||||||||||
Cash and due from banks | $ | 32,254 | $ | 32,226 | $ | 32,417 | $ | 28,104 | $ | 22,210 | ||||||||
Federal funds sold | 15 | 10 | 15 | 50 | 50 | |||||||||||||
Interest-earning deposits with banks | 29,249 | 8,759 | 6,695 | 4,654 | 20,447 | |||||||||||||
U.S. government agencies | 16,324 | 16,392 | 16,536 | 16,625 | 17,232 | |||||||||||||
Mortgage-backed securities | 165,519 | 170,674 | 199,492 | 203,173 | 248,030 | |||||||||||||
State and municipal securities | 82,178 | 98,704 | 109,626 | 110,410 | 115,435 | |||||||||||||
Common and preferred stocks | 3,072 | 3,152 | 3,036 | 137 | 149 | |||||||||||||
Total investment securities | 267,093 | 288,922 | 328,690 | 330,345 | 380,846 | |||||||||||||
Construction loans | 124,946 | 131,035 | 128,951 | 127,564 | 133,200 | |||||||||||||
Commercial, financial and other loans | 197,109 | 206,833 | 191,874 | 186,965 | 182,268 | |||||||||||||
Residential mortgages | 180,106 | 174,072 | 171,747 | 167,784 | 166,565 | |||||||||||||
Commercial real estate loans | 655,190 | 621,405 | 616,116 | 604,667 | 596,790 | |||||||||||||
Installment loans | 32,546 | 31,256 | 31,450 | 32,133 | 32,037 | |||||||||||||
Revolving 1-4 family loans | 192,801 | 194,145 | 193,299 | 195,648 | 193,404 | |||||||||||||
Total loans | 1,382,698 | 1,358,746 | 1,333,437 | 1,314,761 | 1,304,264 | |||||||||||||
Allowance for loan losses | (16,522 | ) | (18,063 | ) | (21,014 | ) | (22,924 | ) | (24,492 | ) | ||||||||
Net loans | 1,366,176 | 1,340,683 | 1,312,423 | 1,291,837 | 1,279,772 | |||||||||||||
Loans held for sale | 6,962 | 18,913 | 12,632 | 22,545 | 18,461 | |||||||||||||
Accrued interest receivable | 5,915 | 6,219 | 6,339 | 6,546 | 6,502 | |||||||||||||
Bank premises and equipment | 40,396 | 40,698 | 41,050 | 42,410 | 42,454 | |||||||||||||
Foreclosed real estate | 2,828 | 3,267 | 2,989 | 3,812 | 5,449 | |||||||||||||
Non-marketable equity securities at cost | 2,789 | 3,473 | 5,273 | 3,473 | 3,474 | |||||||||||||
Investment in bank-owned life insurance | 27,169 | 27,032 | 26,888 | 26,736 | 26,587 | |||||||||||||
Core deposit intangible | 1,818 | 1,974 | 2,133 | 2,301 | 2,475 | |||||||||||||
Other assets | 30,823 | 33,851 | 35,973 | 39,102 | 37,865 | |||||||||||||
Total assets | $ | 1,813,487 | $ | 1,806,027 | $ | 1,813,517 | $ | 1,801,915 | $ | 1,846,592 | ||||||||
Liabilities and shareholders' equity: | ||||||||||||||||||
Deposits: | ||||||||||||||||||
Non-interest bearing | $ | 287,585 | $ | 267,596 | $ | 266,951 | $ | 252,618 | $ | 257,388 | ||||||||
NOW, savings and money market accounts | 704,581 | 693,558 | 676,502 | 686,438 | 656,524 | |||||||||||||
Time certificates: | ||||||||||||||||||
$100 or more | 218,273 | 227,919 | 236,787 | 251,168 | 281,652 | |||||||||||||
Other | 315,035 | 329,350 | 311,096 | 332,873 | 366,095 | |||||||||||||
Total deposits | 1,525,474 | 1,518,423 | 1,491,336 | 1,523,097 | 1,561,659 | |||||||||||||
Borrowings | 90,039 | 89,214 | 131,080 | 91,896 | 99,160 | |||||||||||||
Accrued expenses and other liabilities | 9,198 | 13,920 | 12,229 | 12,306 | 10,922 | |||||||||||||
Total liabilities | 1,624,711 | 1,621,557 | 1,634,645 | 1,627,299 | 1,671,741 | |||||||||||||
Total shareholders' equity | 188,776 | 184,470 | 178,872 | 174,616 | 174,851 | |||||||||||||
Total liabilities and shareholders' equity | $ | 1,813,487 | $ | 1,806,027 | $ | 1,813,517 | $ | 1,801,915 | $ | 1,846,592 | ||||||||
Period end shares outstanding | 14,380,673 | 14,383,986 | 14,383,986 | 14,383,986 | 14,383,884 | |||||||||||||
(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) | |||||||||||||||||
March 31, | December | September | June 30, | March 31, | |||||||||||||
2014 | 31, 2013 | 30, 2013 | 2013 | 2013 | |||||||||||||
Interest and fees on loans | $ | 16,937 | $ | 17,126 | $ | 16,849 | $ | 16,950 | $ | 16,679 | |||||||
Interest on securities | 1,719 | 1,773 | 1,616 | 1,686 | 1,548 | ||||||||||||
Interest on federal funds sold | 1 | 1 | - | 2 | 6 | ||||||||||||
Interest-bearing deposits | 9 | 3 | 5 | 13 | 42 | ||||||||||||
Total interest income | 18,666 | 18,903 | 18,470 | 18,651 | 18,275 | ||||||||||||
Time deposits of $100 or more | 845 | 803 | 877 | 1,009 | 1,352 | ||||||||||||
Other deposits | 824 | 929 | 1,034 | 1,112 | 1,432 | ||||||||||||
Borrowed funds | 394 | 422 | 423 | 409 | 439 | ||||||||||||
Total interest expense | 2,063 | 2,154 | 2,334 | 2,530 | 3,223 | ||||||||||||
Net interest income | 16,603 | 16,749 | 16,136 | 16,121 | 15,052 | ||||||||||||
Provision for (recovery of) loan losses | (460 | ) | (3,017 | ) | 40 | 55 | 237 | ||||||||||
Net interest income after provision for (recovery of) loan losses | 17,063 | 19,766 | 16,096 | 16,066 | 14,815 | ||||||||||||
Non-interest income | |||||||||||||||||
Service charges on deposit accounts | 1,224 | 1,264 | 1,336 | 1,317 | 1,269 | ||||||||||||
Other service fees | 1,025 | 1,066 | 1,259 | 1,401 | 927 | ||||||||||||
Income on investment in bank-owned life insurance | 137 | 145 | 152 | 150 | 153 | ||||||||||||
Mortgage banking activities | 1,022 | 1,162 | 1,713 | 2,546 | 3,288 | ||||||||||||
Gain (loss) on sale of securities | 1,128 | (2,884 | ) | 253 | 272 | 4 | |||||||||||
Other than temporary impairment of investments | - | - | - | - | (39 | ) | |||||||||||
Loss on sale of subsidiary | - | - | - | - | (1 | ) | |||||||||||
Gain on sale of loans | - | 202 | - | 373 | - | ||||||||||||
Gain on sale of branch | - | - | 310 | - | - | ||||||||||||
Other | 161 | 227 | 358 | 125 | 56 | ||||||||||||
Total non-interest income | 4,697 | 1,182 | 5,381 | 6,184 | 5,657 | ||||||||||||
Non-interest expense | |||||||||||||||||
Salaries and employee benefits | 7,917 | 7,854 | 7,780 | 7,953 | 7,389 | ||||||||||||
Occupancy and equipment | 1,746 | 2,049 | 2,001 | 1,951 | 1,815 | ||||||||||||
Printing and supplies | 193 | 151 | 159 | 150 | 163 | ||||||||||||
Data processing | 275 | 376 | 374 | 350 | 395 | ||||||||||||
Communication expense | 380 | 368 | 350 | 338 | 332 | ||||||||||||
Advertising and marketing | 205 | (322 | ) | 348 | 433 | 256 | |||||||||||
Amortization of core deposit intangible | 156 | 159 | 166 | 175 | 178 | ||||||||||||
FDIC assessment expense | 151 | 433 | 363 | 642 | 592 | ||||||||||||
Attorney fees | 65 | 81 | 90 | 178 | 90 | ||||||||||||
Other professional fees | 344 | 456 | 237 | 497 | 476 | ||||||||||||
Loan collection expense | 97 | 118 | 203 | 201 | 217 | ||||||||||||
(Gain) loss on fixed assets | - | (12 | ) | 154 | - | - | |||||||||||
Net cost of operation of other real estate owned | 310 | 302 | 93 | (174 | ) | (822 | ) | ||||||||||
Merger related expenses | 1,352 | - | - | - | - | ||||||||||||
Other | 2,002 | 1,699 | 1,832 | 2,149 | 2,134 | ||||||||||||
Total non-interest expense | 15,193 | 13,712 | 14,150 | 14,843 | 13,215 | ||||||||||||
Income before income taxes | 6,567 | 7,236 | 7,327 | 7,407 | 7,257 | ||||||||||||
Provision for income taxes | 2,659 | 2,579 | 2,616 | 2,598 | 2,608 | ||||||||||||
Net income | 3,908 | 4,657 | 4,711 | 4,809 | 4,649 | ||||||||||||
Preferred stock dividend and amortization of preferred stock discount | 559 | 421 | 421 | 590 | 445 | ||||||||||||
Net income available to common shareholders | $ | 3,349 | $ | 4,236 | $ | 4,290 | $ | 4,219 | $ | 4,204 | |||||||
Net income per common share (a) | |||||||||||||||||
Basic | $ | 0.24 | $ | 0.30 | $ | 0.30 | $ | 0.30 | $ | 0.30 | |||||||
Diluted | $ | 0.23 | $ | 0.30 | $ | 0.30 | $ | 0.30 | $ | 0.30 | |||||||
Weighted average number of common shares outstanding | |||||||||||||||||
Basic | 14,211,456 | 14,206,070 | 14,205,705 | 14,205,223 | 14,198,382 | ||||||||||||
Diluted | 14,269,453 | 14,259,809 | 14,249,152 | 14,223,604 | 14,200,424 | ||||||||||||
(a) Net income 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 | ||||||||||||||||
March 31, | December | September | June 30, | March 31, | ||||||||||||
2014 | 31, 2013 | 30, 2013 | 2013 | 2013 | ||||||||||||
Per Share Data: | ||||||||||||||||
Basic Earnings per Share (8) | $ | 0.24 | $ | 0.30 | $ | 0.30 | $ | 0.30 | $ | 0.30 | ||||||
Diluted Earnings per Share (8) | 0.23 | 0.30 | 0.30 | 0.30 | 0.30 | |||||||||||
Book Value per Share (8) | 11.15 | 10.85 | 10.47 | 10.17 | 10.21 | |||||||||||
Selected Performance Ratios: | ||||||||||||||||
Return on Average Assets (annualized) | 0.76 | % | 0.93 | % | 0.95 | % | 0.93 | % | 0.91 | % | ||||||
Return on Average Equity (annualized) | 7.29 | % | 9.31 | % | 9.74 | % | 9.63 | % | 9.94 | % | ||||||
Net Interest Margin (annualized) | 4.11 | % | 4.04 | % | 3.93 | % | 3.90 | % | 3.57 | % | ||||||
Net Interest Spread (annualized) | 3.97 | % | 3.90 | % | 3.80 | % | 3.76 | % | 3.40 | % | ||||||
Non-interest Income as a % of Revenue (6) | 21.59 | % | 5.64 | % | 25.05 | % | 27.79 | % | 27.63 | % | ||||||
Non-interest Income as a % of Average Assets | 0.26 | % | 0.07 | % | 0.30 | % | 0.34 | % | 0.30 | % | ||||||
Non-interest Expense as a % of Average Assets | 0.85 | % | 0.76 | % | 0.79 | % | 0.82 | % | 0.70 | % | ||||||
Asset Quality: | ||||||||||||||||
Loans 30-89 days past due (000's) (4) | $ | 11,372 | $ | 8,702 | $ | 4,412 | $ | 6,493 | $ | 6,060 | ||||||
Loans over 90 days past due still accruing (000's) | - | - | - | - | - | |||||||||||
Nonperforming Loans (000's) | 15,082 | 15,393 | 17,874 | 19,698 | 23,712 | |||||||||||
Other Real Estate Owned (000's) | 2,828 | 3,267 | 2,989 | 3,812 | 5,449 | |||||||||||
Nonperforming Assets (000's)(5) | 17,910 | 18,660 | 20,864 | 23,510 | 29,161 | |||||||||||
Accruing/Performing troubled debt restructurings (000's) | 3,444 | 6,287 | 5,599 | 9,162 | 8,579 | |||||||||||
Nonperforming Loans to Total Loans | 1.09 | % | 1.12 | % | 1.33 | % | 1.47 | % | 1.79 | % | ||||||
Nonperforming Assets to Total Assets | 0.99 | % | 1.03 | % | 1.15 | % | 1.30 | % | 1.58 | % | ||||||
Allowance for Loan Losses to Total Loans | 1.19 | % | 1.31 | % | 1.56 | % | 1.71 | % | 1.85 | % | ||||||
Allowance for Loan Losses to Total Loans Held for Investment | 1.19 | % | 1.33 | % | 1.58 | % | 1.74 | % | 1.88 | % | ||||||
Allowance for Loan Losses to Nonperforming Loans | 109.55 | % | 117.34 | % | 117.57 | % | 116.38 | % | 103.29 | % | ||||||
Net Charge-offs (Recoveries) to Average Loans (annualized) | 0.32 | % | -0.02 | % | 0.58 | % | 0.49 | % | 0.27 | % | ||||||
Capital Ratios: | ||||||||||||||||
Equity to Total Assets | 10.41 | % | 10.22 | % | 9.86 | % | 9.69 | % | 9.47 | % | ||||||
Tier 1 leverage ratio(1) | 11.71 | % | 11.24 | % | 10.88 | % | 10.30 | % | 9.72 | % | ||||||
Tier 1 risk-based ratio(1) | 13.73 | % | 13.21 | % | 12.92 | % | 12.49 | % | 12.23 | % | ||||||
Total risk-based capital ratio(1) | 14.82 | % | 14.41 | % | 14.17 | % | 13.74 | % | 13.49 | % | ||||||
Non-GAAP disclosures(2): | ||||||||||||||||
Tangible Book Value per Share | $ | 11.03 | $ | 10.71 | $ | 10.32 | $ | 10.01 | $ | 10.03 | ||||||
Return on Tangible Equity (annualized) (3) | 7.36 | % | 9.42 | % | 9.87 | % | 9.76 | % | 10.09 | % | ||||||
Tangible Common Equity to Tangible Assets (3) | 8.75 | % | 8.54 | % | 8.19 | % | 8.00 | % | 7.83 | % | ||||||
Efficiency Ratio (7) | 66.14 | % | 62.80 | % | 63.47 | % | 66.55 | % | 66.39 | % | ||||||
Net Income to common shareholders excluding merger costs (9) | $ | 4,576 | $ | 4,236 | $ | 4,290 | $ | 4,219 | $ | 4,204 | ||||||
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. |
(9) | Net income to common shareholders excluding merger costs was calculated by adding back $1,352 in merger costs, less a $125 adjustment for taxes for the three months ended March 31, 2014. |
Yadkin Financial Corporation | ||||||||||||||||||
Average Balance Sheets and Net Interest Income Analysis (Unaudited) | ||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||
Average Balance | Interest |
Yield/ Rate |
Average Balance | Interest |
Yield/ Rate |
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INTEREST EARNING ASSETS | ||||||||||||||||||
Total loans (1,2) | $ | 1,371,694 | $ | 16,966 | 5.02 | % | $ | 1,321,253 | $ | 16,708 | 5.13 | % | ||||||
Investment securities | 286,094 | 2,046 | 2.90 | % | 364,453 | 1,838 | 2.05 | % | ||||||||||
Interest-bearing deposits & federal funds sold | 16,794 | 10 | 0.24 | % | 62,707 | 48 | 0.31 | % | ||||||||||
Total average earning assets (1) | 1,674,582 | 19,022 | 4.61 | % | (6) | 1,748,413 | 18,594 | 4.31 | % | (6) | ||||||||
Non-interest earning assets | 122,754 | 128,610 | ||||||||||||||||
Total average assets | $ | 1,797,336 | $ | 1,877,023 | ||||||||||||||
INTEREST BEARING LIABILITIES | ||||||||||||||||||
Time deposits | $ | 548,673 | 1,376 | 1.02 | % | $ | 693,150 | 2,510 | 1.47 | % | ||||||||
Other deposits | 685,356 | 293 | 0.17 | % | 638,377 | 274 | 0.17 | % | ||||||||||
Borrowed funds | 89,624 | 394 | 1.78 | % | 101,763 | 439 | 1.75 | % | ||||||||||
Total interest bearing liabilities | 1,323,653 | 2,063 | 0.63 | % | (7) | 1,433,290 | 3,223 | 0.91 | % | (7) | ||||||||
Non-interest bearing deposits | 276,878 | 259,883 | ||||||||||||||||
Other liabilities | 10,459 | 12,307 | ||||||||||||||||
Total average liabilities | 1,610,990 | 1,705,480 | ||||||||||||||||
Shareholders' equity | 186,346 | 171,543 | ||||||||||||||||
Total average liabilities and shareholders' equity | $ | 1,797,336 | $ | 1,877,023 | ||||||||||||||
NET INTEREST INCOME/ | ||||||||||||||||||
YIELD (3,4) | $ | 16,959 | 4.11 | % | $ | 15,371 | 3.57 | % | ||||||||||
INTEREST SPREAD (5) | 3.97 | % | 3.40 | % |
(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 2014 and 2013 includes $57,000 and $45,000, respectively, of accretion for purchase accounting adjustments related to loans acquired in the merger with American Community. |
(7) | Interest expense for 2014 and 2013 includes $9,000 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