Exhibit 99.1

Yadkin Valley Financial Corporation Announces
Fourth Quarter and Full Year 2010 Results

Fourth Quarter Highlights:

	•		Provision for loan losses was $6.3 million, a decrease of $1.6 million compared to the third quarter of 2010
	•		Total deposits increased 2% compared to the third quarter of 2010, driven by a 26% increase in NOW, savings, and money market deposits in the fourth quarter of 2010
	•		Net interest margin was 2.97%, a decrease of 15 basis points compared to the third quarter of 2010
	•		Nonperforming assets increased to 3.95% of total assets from 3.77% in the third quarter of 2010
	•		Net charge-offs increased to $13.3 million, or 3.08% of average loans on an annualized basis, compared to $7.4 million, or 1.75% of average loans on an annualized basis, in the third quarter of 2010
	•		Loan loss reserves as a percentage of total loans held for investment decreased to 2.36%, compared to 2.73% in the third quarter of 2010 due to a decrease in allowance for impaired loans
	•		Allowance for impaired loans decreased to $6.3 million from $13.6 million in the third quarter of 2010 due to charge-offs of the impaired portion of collateral dependent loans previously reserved
	•		Leverage ratio, Tier 1 risk-based capital ratio and total risk-based capital ratio were 7.04%, 9.26% and 10.52%, respectively, for the Bank
	•		Net loss available to common shareholders was $9,000, or $0.00 per diluted share

Full Year Highlights:

	•		Sidus Financial closed in excess of $937.0 million in new mortgage loans during 2010 and successfully expanded into three new states in the Mid-Atlantic region
	•		Initiated strategic succession plan and implemented significant expense reduction initiative
	•		Total deposits increased 11%, driven by 32% growth in NOW, savings, and money market accounts
	•		Cumulative net charge-offs of $35.2 million in 2010, and $60.2 million since the beginning of the credit cycle at January 1, 2008
	•		Net loss available to common shareholders of $3.2 million, or $0.20 per diluted share

Elkin, NC — January 27, 2011 — Yadkin Valley Financial Corporation (NASDAQ: YAVY), the holding company for Yadkin Valley Bank and Trust Company, announced financial results for the fourth quarter and full year ended December 31, 2010. Net loss available to common shareholders for the fourth quarter of 2010 totaled $9,000, or $0.00 per diluted share. This compares to a net loss of $2.8 million, or $0.18 per diluted share, in the third quarter of 2010, and net income of $3.2 million, or $0.20 per diluted share, in the fourth quarter of 2009.

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The net loss available to common shareholders for the year ended December 31, 2010 improved to $3.2 million, or $0.20 per diluted share, compared to a net loss of $77.5 million, or $5.23 per diluted share, for the year ended December 31, 2009. Full year 2009 results were significantly impacted by the $61.6 million goodwill impairment charge recorded during the third quarter of 2009. Excluding this charge, the net loss available to common shareholders was $16.0 million, or $1.08 per diluted share, for the full year ended December 31, 2009.

Joe Towell, President and COO of Yadkin Valley Bank and Trust Company, commented, “In the fourth quarter of 2010, we took a conservative stance with our impaired loans by charging down $10.0 million to fair market value. These charge-downs, which were predominantly related to construction/land development loans, had reserves allocated in prior quarters. At the same time, we recognized a reduction in our classified loans, which accounts for the decrease in the overall allowance for loan losses. We are continuing to make progress in quickly and effectively risk grading the portfolio, reserving for impaired loans, and recognizing charge-offs.

Also during the fourth quarter, we significantly reduced our deposit rates; however, we retained a greater amount of CD balances than we had anticipated resulting in excess liquidity. This excess liquidity was invested in cash and equivalents. During the first quarter of 2011, we will be examining the profitability of our CD relationships to further reduce deposit costs, which should alleviate this excess liquidity.

Sidus continues to expand its retail and wholesale operations nationally, and began the first quarter of 2011 with a healthy loan pipeline. We expect Sidus’ fee income contribution to remain consistent with levels in the first quarter of 2010 as long as the interest rate environment remains favorable. In addition to demand for mortgage loans at Sidus, we are also beginning to see demand for owner-occupied commercial real estate loans and commercial and industrial loans at the Bank.

Lastly, we remain well-capitalized from a regulatory perspective. We are continuing to closely monitor our capital levels and are actively evaluating a number of options to improve our capital position. We are carefully considering the best interests of our shareholders in evaluating our capital options.”

Fourth Quarter 2010 Financial Highlights

Asset Quality

Nonperforming loans increased by $2.3 million, to $65.4 million, or 3.96% of total gross loans at December 31, 2010, compared to $63.1 million, or 3.67% of total gross loans at September 30, 2010. The majority of the increase was related to the addition of 130 loans totaling $20.7 million, offset by charge-offs of $9.0 million, principal reductions and upgrades of $3.9 million, and transfers to Other Real Estate Owned (OREO) of $5.6 million. The increase in nonperforming loans was predominantly related to construction/land development, residential construction, and commercial real estate loans. Net charge-offs totaled $13.3 million, or 3.08% of average loans on an annualized basis, up from $7.4 million, or 1.75% of average loans (on an annualized basis) during the third quarter of 2010.

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		Nonperforming Loan Analysis
		(Dollars in thousands)
		December 31, 2010								September 30, 2010
						% of								% of
		Outstanding				Total				Outstanding				Total
Loan Type		Balance				Loans				Balance				Loans
Construction/land development		$	13,919				0.84	%		$	13,346				0.78	%
Residential construction			11,915				0.72	%			11,674				0.68	%
HELOC			3,068				0.19	%			2,294				0.13	%
1-4 Family residential			7,889				0.48	%			7,916				0.46	%
Commercial real estate			24,562				1.49	%			23,034				1.34	%
Commercial & industrial			3,420				0.21	%			4,226				0.25	%
Consumer & other			627				0.04	%			604				0.04	%
Total		$	65,400				3.96	%		$	63,094				3.67	%

OREO totaled $25.6 million at December 31, 2010, an increase of $3.1 million compared to $22.5 million at the end of the third quarter. The increase in OREO was primarily due to the addition of 20 properties totaling $5.8 million. Total nonperforming assets were $91.0 million, or 3.95% of total assets, an increase from $85.6 million, or 3.77% of total assets as of September 30, 2010.

During the fourth quarter of 2010, the provision for loan losses decreased $1.6 million to $6.3 million compared to the third quarter. The allowance for loan losses was $37.8 million, a decrease of $6.9 million compared to $44.7 million at September 30, 2010. As a percentage of total loans held for investment, the allowance for loan losses was 2.36% in the fourth quarter of 2010, down from 2.73% in the third quarter. Loan loss reserves totaled 58% of nonperforming loans, down from 71% at the end of the third quarter. Out of the $37.8 million in total allowance for loan losses at December 31, 2010, the specific allowance for impaired loans accounted for $6.3 million, down from $13.6 million at the end of the third quarter. The decrease in the specific allowance for impaired loans resulted from charge-downs on collateral dependent loans of $10.0 million to fair market value which were reserved for in prior quarters. The remaining general allowance, $31.5 million, attributed to unimpaired loans, was up from $31.1 million at the end of the third quarter due primarily to higher historic loss ratios which resulted from increased charge-offs during the fourth quarter. This increase was partially offset by an overall decrease in classified, non-impaired loans of $26.8 million.

Net Interest Income and Net Interest Margin

Net interest income totaled $16.0 million, a decrease of $300,000, or 2%, compared to the third quarter of 2010. Deposit costs decreased significantly in the fourth quarter of 2010 compared to the third quarter, however, a high level of certificates of deposit was retained resulting in excess liquidity. Loan growth continues to be slow, and as a result, cash and equivalents increased $86.6 million. This resulted in a decrease of 15 basis points in the net interest margin to 2.97%, compared to 3.12% in the third quarter of 2010. Excluding the adjustment of assets and liabilities to their fair market values as part of purchase accounting treatment relating to the merger with American Community Bank, net interest margin was 2.91%, a decrease of 12 basis points compared to 3.03% in the third quarter of 2010.

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Non-Interest Income

Non-interest income increased $1.7 million, or 30%, to $7.3 million from $5.6 million in the third quarter of 2010. The increase in net interest income was primarily related to securities gains of $1.3 million, as well as a $268,000 increase in other service fees and a $445,000 increase in net mortgage sale gains, both of which were due to an increased level of mortgage production at Sidus. Excluding the securities gains, non-interest income increased $470,000, or 8%. Partially offsetting these items was an other than temporary impairment of investment securities of $102,000, which was related to an investment in one financial services company.

Non-Interest Expense

Non-interest expense decreased $397,000, or 2%, to $17.0 million, compared to $17.4 million in the third quarter of 2010. The decrease in non-interest expense was primarily related to a $562,000 decrease in salaries and employee benefits and a $138,000 decrease in occupancy and equipment expense. These decreases were primarily related to the expense reduction plan which was initiated in the third quarter of 2010. Somewhat offsetting these items was a $373,000 increase in other expense, which was related to franchise tax expense as well as a higher level of expenses associated with maintaining foreclosed property.

Balance Sheet and Capital

Compared to the third quarter of 2010, total assets increased $29.8 million, or 1%. The increase in total assets was primarily related to an $86.6 million increase in cash and equivalents. Total gross loans decreased $66.6 million, or 4%. The decrease in total gross loans was primarily due to a $40.8 million decrease in loans held for investment, which was predominantly related to a $21.0 million decrease in construction/land development and residential construction loan balances and a $24.1 million decrease in commercial real estate loans. The decrease in these loans more than offset growth of $3.0 million and $2.3 million, in commercial and industrial loans and residential mortgages, respectively. Total deposits increased $38.9 million, or 2%, compared to the third quarter of 2010, and total core deposits increased 8%. Deposit growth primarily resulted from a $122.1 million increase in NOW, savings and money market deposits, as well as $10.3 million increase in non-interest bearing demand deposits. Brokered CDs and CDARs remain a relatively small portion of the Company’s funding sources, as these deposits represented 5% of total deposits at December 31, 2010, a slight decrease from the level at September 30, 2010.

The Bank remains well-capitalized for regulatory purposes. As of December 31, 2010, the Bank’s leverage ratio, Tier 1 risk-based capital ratio and total risk-based capital ratio were 7.04%, 9.26%, and 10.52%, respectively. For capital adequacy purposes, leverage ratio, Tier 1 risk-based capital ratio, and total risk-based capital ratio must be in excess of 5.00%, 6.00%, and 10.00%, respectively, to be considered well-capitalized.

Conference Call

Yadkin Valley Financial Corporation will host a conference call at 10:00 a.m. EDT on Thursday, January 27, 2011 to discuss financial results, business highlights, and outlook. The call may be accessed by dialing 877-359-3650 at least 10 minutes prior to the call. A webcast of the call may also be accessed at http://investor.shareholder.com/media/eventdetail.cfm?eventid=91811&CompanyID=YAVY&e=1&mediaKey=C0BD 0B7D7BA30A3E46A5C745FA0F7F34. A replay of the call will be available until February 3, 2011 by dialing 800-642-1687 or 706-645-9291 and entering access code 39847894.

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About Yadkin Valley Financial Corporation

Yadkin Valley Financial Corporation is the holding company for Yadkin Valley Bank and Trust Company, a full service community bank providing services in 38 branches throughout its three regions in North Carolina and South Carolina. The Western Region (formerly Yadkin Valley Bank division and High Country Bank division) serves Avery, Watauga, Ashe, Forsyth, Surry, Wilkes, and Yadkin Counties. The Central Region (formerly the Iredell branches of Piedmont Bank division and Cardinal State Bank division) serves Durham, Orange, Granville, and Iredell Counties. The Southern Region (formerly American Community Bank division and the Mecklenburg branches of the Piedmont division) serves Mecklenburg and Union Counties in North Carolina, and Cherokee and York Counties in South Carolina. The Bank provides mortgage lending services through its subsidiary, Sidus Financial, LLC, headquartered in Greenville, North Carolina and operates a loan production office in Wilmington, NC. Securities brokerage services are provided by Main Street Investment Services, Inc., a Bank subsidiary with four offices located in the branch network. Yadkin Valley Financial Corporation’s website is www.yadkinvalleybank.com. Yadkin Valley shares are traded on NASDAQ under the symbol YAVY.

FORWARD LOOKING STATEMENTS

Certain statements in this news release contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to future plans and expectations, and are thus prospective. Such forward-looking statements include but are not limited to (1) statements regarding potential future economic recovery, (2) statements with respect to our plans, objectives, expectations and intentions and other statements that are not historical facts, and (3) other statements identified by words such as “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “targets,” and “projects,” as well as similar expressions. Such statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Although we believe that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove to be inaccurate. Therefore, we can give no assurance that the results contemplated in the forward-looking statements will be realized. The inclusion of this forward-looking information should not be construed as a representation by our company or any person that the future events, plans, or expectations contemplated by our company will be achieved.

The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements: (1) the rate of delinquencies and amounts of charge-offs, the level of allowance for loan loss, the rates of loan growth, or adverse changes in asset quality in our loan portfolio, which may result in increased credit risk-related losses and expenses; (2) competitive pressures among depository and other financial institutions may increase significantly and have an effect on pricing, spending, third-party relationships and revenues; (3) the strength of the United States economy in general and the strength of the local economies in which we conduct operations may be different than expected resulting in, among other things, a deterioration in the credit quality or a reduced demand for credit, including the resultant effect on the company’s loan portfolio and allowance for loan losses; (4) the risk that the preliminary financial information reported herein and our current preliminary analysis will be different when our review is finalized; (5) changes in deposit rates, the net interest margin, and funding sources; (6) changes in the U.S. legal and regulatory framework, including the effect of recent financial reform legislation on the banking industry; and (7) adverse conditions in the stock market, the public debt market and other capital markets (including changes in interest rate conditions) could have a negative impact on the company. Additional factors that could cause our results to differ materially from those described in the forward-looking statements can be found in our reports (such as Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K) filed with the SEC and available at the SEC’s Internet site (http://www.sec.gov). All subsequent written and oral forward-looking statements concerning the company or any person acting on its behalf is expressly qualified in its entirety by the cautionary statements above. We do not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements are made.

For additional information contact:

William A. Long
President and Chief Executive Officer
(336) 526-6312

Joseph H. Towell
President and Chief Operating Officer, Yadkin Valley Bank and Trust Company
(704) 768-1133
joe.towell@yadkinvalleybank.com

Jan H. Hollar
Executive Vice President and Chief Financial Officer
(704) 768-1161
jan.hollar@yadkinvalleybank.com

Megan R. Malanga
Nvestcom Investor Relations
(954) 781-4393
megan.malanga@nvestcom.com

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Yadkin Valley Financial Corporation
Consolidated Balance Sheets (Unaudited)

		(Amounts in thousands except share and per share data)
		December 31,				September 30,				June 30,				March 31,				December 31,
		2010				2010				2010				2010				2009 (a)
Assets:
Cash and due from banks		$	31,967			$	32,112			$	30,178			$	27,002			$	31,939
Federal funds sold			31				2,427				6,123				8				93
Interest-earning deposits with banks			197,782				108,665				184,592				208,727				60,305
U.S. government agencies			14,551				21,966				25,274				39,756				42,894
Mortgage-backed securities			209,706				193,358				126,004				72,810				78,389
State and municipal securities			72,621				73,235				55,868				59,574				61,378
Common and preferred stocks			1,124				1,159				1,134				1,056				1,180
Total investment securities			298,002				289,718				208,280				173,196				183,841
Construction loans			300,877				321,905				333,015				344,138				364,853
Commercial, financial and other loans			222,667				219,660				231,105				265,286				271,433
Residential mortgages			174,536				172,286				177,887				169,267				169,790
Commercial real estate loans			650,696				674,806				648,423				625,394				619,151
Installment loans			42,443				44,070				49,544				47,112				48,545
Revolving 1-4 family loans			209,319				208,660				207,801				204,834				202,676
Total Loans			1,600,538				1,641,387				1,647,775				1,656,031				1,676,448
Allowance for loan losses			(37,752	)			(44,735	)			(44,306	)			(45,399	)			(48,625	)
Net loans			1,562,786				1,596,652				1,603,469				1,610,632				1,627,823
Loans held for sale			50,419				76,199				49,542				24,308				49,715
Accrued interest receivable			7,947				8,176				7,520				7,866				7,783
Bank premises and equipment			45,970				45,368				44,434				44,075				43,642
Foreclosed real estate			25,582				22,480				18,195				16,656				14,345
Non-marketable equity securities at cost			9,416				9,784				10,539				10,539				10,539
Investment in bank-owned life insurance			25,278				25,103				24,852				24,660				24,454
Goodwill			4,944				4,944				4,944				4,944				4,944
Core deposit intangible			4,907				5,212				5,527				5,852				6,186
Other assets			35,563				43,949				41,986				44,647				48,003
Total assets		$	2,300,594			$	2,270,789			$	2,240,181			$	2,203,112			$	2,113,612
Liabilities and shareholders’ equity:
Deposits:
Non-interest bearing		$	216,161			$	205,856			$	210,940			$	211,272			$	207,850
NOW, savings and money market accounts			589,790				467,731				468,773				455,189				445,508
Time certificates:
$100,000 or more			476,826				531,892				516,146				529,253				560,825
Other			737,629				776,012				757,579				713,351				607,569
Total deposits			2,020,406				1,981,491				1,953,438				1,909,065				1,821,752
Borrowings			116,768				119,274				118,621				126,600				123,467
Accrued expenses and other liabilities			15,963				19,364				15,409				14,511				16,127
Total liabilities			2,153,137				2,120,128				2,087,468				2,050,176				1,961,346
Total shareholders’ equity			147,457				150,660				152,713				152,936				152,266
Total liabilities and shareholders’ equity		$	2,300,594			$	2,270,789			$	2,240,181			$	2,203,112			$	2,113,612
Period End Shares Outstanding			16,147,640				16,144,640				16,144,640				16,134,640				16,129,640

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Yadkin Valley Financial Corporation
Consolidated Income Statements (Unaudited)

		(Amounts in thousands except share and per share data)
		December 31,				September 30,				June 30,				March 31,				December 31,
Three months ended		2010				2010				2010				2010				2009
Interest and fees on loans		$	22,500			$	22,921			$	22,458			$	22,958			$	23,627
Interest on securities			2,241				2,096				1,661				1,771				1,839
Interest on federal funds sold			7				1				2				—				4
Interest-bearing deposits			88				110				126				61				13
Total interest income			24,836				25,128				24,247				24,790				25,483
Time deposits of $100,000 or more			3,136				3,503				3,274				3,361				3,273
Other deposits			5,084				4,699				4,781				4,055				3,642
Borrowed funds			660				617				595				567				706
Total interest expense			8,880				8,820				8,650				7,983				7,621
Net interest income			15,956				16,309				15,597				16,807				17,862
Provision for loan losses			6,277				7,879				5,809				4,384				3,146
Net interest income after provision for loan losses			9,679				8,429				9,788				12,423				14,716
Non-interest income
Service charges on deposit accounts			1,498				1,539				1,486				1,437				1,572
Other service fees			1,253				985				917				841				1,250
Net gain on sales of mortgage loans			3,128				2,683				1,876				1,334				2,812
Income on investment in bank owned life insurance			175				251				192				207				145
Mortgage banking operations			(66	)			53				60				56				486
Gains on sale of securities			1,291				1				844				44				—
Other than temporary impairment of investments			(101	)			(115	)			(61	)			(205	)			(17	)
Other			154				175				140				66				64
Total non-interest income			7,332				5,572				5,454				3,780				6,312
Non-interest expense
Salaries and employee benefits			7,686				8,248				6,941				6,663				6,938
Occupancy and equipment			2,160				2,298				1,957				1,966				1,865
Printing and supplies			175				169				259				274				273
Data processing			376				380				384				313				489
Communication expense			453				445				436				459				448
Advertising and marketing			252				362				204				178				414
Amortization of core deposit intangible			305				315				325				334				338
FDIC assessment expense			1,126				1,122				1,288				830				619
Attorney fees			170				222				148				75				112
Loan collection expense			342				307				289				272				637
Net loss on other real estate owned			639				586				402				796				189
Other			3,291				2,918				2,347				2,372				2,161
Total non-interest expense			16,975				17,372				14,980				14,532				14,483
Income (loss) before income taxes			36				(3,370	)			262				1,671				6,545
Provision for income taxes (benefit)			(823	)			(1,299	)			(23	)			757				2,630
Net income (loss)			859				(2,071	)			285				914				3,915
Preferred stock dividend and amortization of preferred stock discount			868				771				771				771				754
Net income (loss) available to common shareholders		$	(9	)		$	(2,842	)		$	(486	)		$	143			$	3,161
Basic		$	(0.00	)		$	(0.18	)		$	(0.03	)		$	0.01			$	0.20
Diluted		$	(0.00	)		$	(0.18	)		$	(0.03	)		$	0.01			$	0.20
Weighted average number of shares outstanding
Basic			16,129,640				16,129,640				16,129,640				16,129,640				16,129,640
Diluted			16,129,640				16,129,640				16,129,640				16,129,640				16,129,640

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Yadkin Valley Financial Corporation
(unaudited)

		At or For the Three Months Ended
		December 31,				September 30,				June 30,				March 31,				December 31,
		2010				2010				2010				2010				2009 (a)
Per Share Data:
Basic Earnings (Loss) per Share		$	(0.00	)		$	(0.18	)		$	(0.03	)		$	0.01			$	0.20
Diluted Earnings (Loss) per Share			(0.00	)			(0.18	)			(0.03	)			0.01				0.20
Book Value per Share			6.24				6.44				6.58				6.61				6.58
Selected Performance Ratios:
Return on Average Assets (annualized)			0.00	%			-0.51	%			-0.09	%			0.03	%			0.62	%
Return on Average Equity (annualized)			-0.02	%			-7.37	%			-1.26	%			0.38	%			8.26	%
Net Interest Margin (annualized)			2.97	%			3.12	%			3.12	%			3.47	%			3.83	%
Net Interest Spread (annualized)			2.77	%			2.91	%			2.84	%			3.25	%			3.59	%
Non-interest Income as a % of Revenue			43.10	%			39.80	%			34.76	%			23.33	%			30.02	%
Non-interest Income as a % of Average Assets			0.32	%			0.25	%			0.25	%			0.18	%			0.31	%
Non-interest Expense as a % of Average Assets			0.73	%			0.77	%			0.67	%			0.68	%			0.71	%
Asset Quality:
Loans 30-89 days past due (000’s)		$	25,353			$	37,682			$	16,163			$	14,297			$	23,190
Loans over 90 days past due still accruing (000’s)			—				—				—				—				6
Nonperforming Loans (000’s)			65,400				63,094				50,853				52,870				36,255
Other Real Estate Owned (000’s)			25,582				22,480				18,195				16,656				14,345
Nonperforming Assets (000’s)			90,983				85,574				69,048				69,526				50,600
Troubled debt restructurings (000’s)			14,733				14,733				8,184				5,267				5,544
Nonperforming Loans to Total Loans			3.96	%			3.67	%			3.00	%			3.15	%			2.10	%
Nonperforming Assets to Total Assets			3.95	%			3.77	%			3.08	%			3.16	%			2.39	%
Allowance for Loan Losses to Total Loans			2.29	%			2.60	%			2.61	%			2.70	%			2.82	%
Allowance for Loan Losses to Total Loans Held for Investment			2.36	%			2.73	%			2.69	%			2.74	%			2.90	%
Allowance for Loan Losses to Nonperforming Loans			57.72	%			70.90	%			87.12	%			86.00	%			134.00	%
Net Charge-offs/Recoveries to Average Loans (annualized)			3.08	%			1.75	%			1.64	%			1.83	%			2.05	%
Capital Ratios:
Equity to Total Assets			6.41	%			6.63	%			6.82	%			6.94	%			7.20	%
Tier 1 leverage ratio(1)			7.04	%			7.40	%			7.53	%			7.76	%			8.16	%
Tier 1 risk-based ratio(1)			9.26	%			9.10	%			9.39	%			9.26	%			9.16	%
Total risk-based capital ratio(1)			10.52	%			10.36	%			10.65	%			10.52	%			10.43	%
Non-GAAP disclosures(2):
Tangible Book Value per Share			5.63				5.82				5.93				5.94				5.89
Return on Tangible Equity (annualized) (3)			-0.02	%			-7.89	%			-1.36	%			0.41	%			8.93	%
Tangible Equity to Tangible Assets (3)			6.01	%			6.22	%			6.38	%			6.48	%			6.71	%
Efficiency Ratio			70.63	%			76.96	%			68.75	%			68.00	%			57.08	%

Notes:

Page 8 of 10

Yadkin Valley Financial Corporation
Average Balance Sheets and Net Interest Income Analysis (Unaudited)

		Three Months Ended December 31,
		2010												2009
		(Dollars in Thousands)
		Average								Yield/				Average								Yield/
		Balance				Interest				Rate				Balance				Interest				Rate
INTEREST EARNING ASSETS
Total loans (1,2)		$	1,708,178			$	22,545				5.24	%		$	1,703,155			$	23,711				24.20	%
Federal funds sold			11,530				7				0.24	%			5,531				3				0.22	%
Investment securities			308,649				2,511				3.23	%			200,603				2,362				4.67	%
Interest-bearing deposits			142,161				88				0.24	%			2,920				14				1.90	%
Total average earning assets (1)			2,170,519				25,150				4.60	% (6)			1,912,209				26,090				5.41	%
Noninterest earning assets			145,760												124,707
Total average assets		$	2,316,279											$	2,036,916
INTEREST BEARING LIABILITIES
Time deposits		$	1,280,449			$	7,200				2.23	%		$	1,100,181			$	6,144				2.22	%
Other deposits			527,697				1,020				0.77	%			428,007				771				0.71	%
Borrowed funds			120,413				660				2.17	%			134,483				706				2.08	%
Total interest bearing liabilities			1,928,559				8,880				1.83	% (7)			1,662,671				7,621				1.82	%
Noninterest bearing deposits			219,818												219,690
Other liabilities			16,136												2,772
Total average liabilities			2,164,513												1,885,133
Shareholders’ equity			151,766												151,783
Total average liabilities and shareholders’ equity		$	2,316,279											$	2,036,916
NET INTEREST INCOME/YIELD (3,4)						$	16,270				2.97	%						$	18,469				3.83	%
INTEREST SPREAD (5)											2.77	%											3.59	%

Page 9 of 10

Yadkin Valley Financial Corporation
Average Balance Sheets and Net Interest Income Analysis (Unaudited)

		Twelve Months Ended December 31,
		2010												2009
		(Dollars in thousands)
		Average								Yield/				Average								Yield/
		Balance				Interest				Rate				Balance				Interest				Rate
INTEREST EARNING ASSETS
Total loans (1,2)		$	1,696,469			$	91,012				5.36	%		$	1,596,094			$	88,486				5.54	%
Federal funds sold			4,424				10				0.23	%			13,090				25				0.19	%
Investment securities			232,577				8,742				3.76	%			189,333				8,051				4.25	%
Interest-bearing deposits			156,583				385				0.25	%			8,344				45				0.54	%
Total average earning assets (1)			2,090,053				100,149				4.79	% (6)			1,806,861				96,607				5.35	%
Noninterest earning assets			142,102												150,434
Total average assets		$	2,232,156											$	1,957,295
INTEREST BEARING LIABILITIES
Time deposits		$	1,258,639			$	28,396				2.26	%		$	1,024,653			$	25,855				2.52	%
Other deposits			472,358				3,497				0.74	%			377,951				3,129				0.83	%
Borrowed funds			120,717				2,440				2.02	%			161,099				2,847				1.77	%
Total interest bearing liabilities			1,851,714				34,333				1.85	% (7)			1,563,703				31,831				2.04	%
Noninterest bearing deposits			211,027												190,363
Other liabilities			15,013												11,866
Total average liabilities			2,077,754												1,765,932
Shareholders’ equity			154,401												191,363
Total average liabilities and shareholders’ equity		$	2,232,155											$	1,957,295
NET INTEREST INCOME/YIELD (3,4)						$	65,816				3.15	%						$	64,776				3.59	%
INTEREST SPREAD (5)											2.94	%											3.31	%

Page 10 of 10