Exhibit 99.1

Yadkin Valley Financial Corporation Announces

Second Quarter 2011 Results

Second Quarter Highlights:

Elkin, NC – July 28, 2011 – Yadkin Valley Financial Corporation (NASDAQ: YAVY), the holding company for Yadkin Valley Bank and Trust Company, announced financial results for the second quarter ended June 30, 2011. Net loss available to common shareholders was $20.9 million, or $1.16 per diluted share, compared to a net loss of $1.6 million, or $0.10 per diluted share in the first quarter of 2011, and a net loss of $485,700, or $0.03 per diluted share, in the second quarter of 2010.

Joe Towell, President and CEO of Yadkin Valley Financial, commented, “As we continue to reorganize our Company and carry out our long-term strategic plan, we are seeing very positive initial results in a process that is not yet complete. We will realize a positive long-term impact by remaining steadfast to our strategic plan. The decisions we made during the second quarter, while difficult, are vital to ensure financial improvement as we look ahead to the second half of 2011. Operating losses this quarter were related to prudent Management decisions surrounding credit loss, provision for loan loss, severance, and other expense reduction activities. Additionally, we recognized a valuation allowance for the deferred tax asset for $11 million and a total impairment of our goodwill related to Sidus Financial of $4.9 million.

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In order to improve asset quality, we believe it prudent to absorb the loss that exists, rehabilitate credits where possible, and focus on making new, more profitable loans going forward. We continue to see positive signs in our loan portfolio, as adversely classified loans (which we internally classify as risk grades 6 and 7) continue to decrease. We ended the second quarter of 2011 with $132.1 million in adversely classified loans, down from $152.8 million in the first quarter of 2011 and $189.4 million in the second quarter of 2010. We are also pleased to see nonperforming loan and nonperforming asset balances decrease this quarter.

Due to continued focus on building core deposits, we are very pleased to see our second consecutive quarter of net interest margin expansion. This margin growth continues as deposit cost decreases overall. We have also experienced another successful quarter of expense reduction across the organization. We consolidated one branch this quarter, and we have plans to consolidate three more by the end of the summer, all with minimal impact to our customers. Although we must initially absorb expenses such as severance and lease costs, these expense reductions will positively impact the balance sheet and income statement in future quarters.

Also in the second quarter, we exited our wholesale mortgage business line from Sidus Financial, resulting in a $4.9 million write-off of goodwill. This decision was based on changing wholesale market demand and our desire to place additional focus on our more profitable retail mortgage business. We have a strong retail team in place, and we look forward to their success.

Finally, we continue to be keenly focused on our capital management strategy. Management and the Board will continue to evaluate all strategic capital options that will provide even greater strength to the Company in the future.”

Second Quarter 2011 Financial Highlights

Asset Quality

Nonperforming loans, which include loans in nonaccrual status, decreased by $2.5 million, to $68.9 million, or 4.50% of total gross loans at June 30, 2011, compared to $71.4 million, or 4.50% of total gross loans at March 31, 2011. The percentage of gross loans has remained flat despite the decrease in nonaccrual loans due to the decrease in total gross loans over the last quarter. This decrease in both nonperforming and total gross loans is due to the disposition of several large dollar problem credits in our real estate portfolio and continued diligence surrounding workout strategies. Total TDRs were $36.5 million at June 30, 2011, down slightly from the previous quarter due to the disposition of some of the aforementioned large dollar problem credits. Net charge-offs for the second quarter totaled $10.6 million, or 2.73% of average loans on an annualized basis.

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Other Real Estate Owned (OREO) totaled $22.0 million at June 30, 2011, a decrease of $5.5 million compared to $27.5 million at March 31, 2011. This decrease in OREO was mostly due to the sale of 25 properties totaling $7.1 million during the second quarter and additional write downs of $1.3 million, offset by the addition of $3.0 million in new properties. Our Special Assets team has had continued success with movement of OREO property during the first half of 2011. While we have experienced a decline in some appraised values and sustained some losses on sales, particularly in the residential land and housing portfolio, we continue to be pleased with our OREO disposition rates. Due to this decrease in both OREO and nonaccrual loans, total nonperforming assets were $90.9 million, or 4.36% of total assets, an 8.0% decrease from $98.8 million, or 4.43% of total assets, at March 31, 2011.

During the second quarter of 2011, the provision for loan losses was $10.4 million, an increase of $5.5 million from the first quarter of 2011. The increase in provision was driven mostly by the increase in loan charge-offs for the second quarter. At June 30, 2011, the allowance for loan losses was $35.7 million, compared to $35.9 million at March 31, 2011.

As a percentage of total loans held-for-investment, the allowance for loan losses was 2.37% in the second quarter of 2011, up slightly from 2.31% in the first quarter of 2011. Out of the $35.7 million in total allowance for loan losses at June 30, 2011, the specific allowance for impaired loans accounted for $4.3 million, down from $6.5 million at the end of the first quarter. The remaining general allowance, $31.4 million, attributed to unimpaired loans, was up from $29.4 million at the end of the first quarter of 2011. This increase was driven by higher historic losses in the portfolio, as well as the addition of a new real estate qualitative factor to address continued strain on real estate values in our markets. The allowance for loan losses as a percentage of criticized, non-impaired (internal risk grades 5, 6, and immaterial 7) loans increased to 6.70%, up from 6.66% in the first quarter, and as a percentage of non-criticized loans, increased to 1.48% up from 1.21%.

Net Interest Income and Net Interest Margin

Net interest income totaled $16.3 million, an increase of $621,000, or 4.0%, compared to the first quarter of 2011. We also experienced an increase in net interest margin (NIM) to 3.30%, up 23 basis points from 3.07% in the first quarter of 2011, and up 33 basis points from the fourth quarter of 2010. The NIM increase can be attributed to a shift in our deposit mix from higher cost CDs to lower cost interest-bearing transaction accounts. 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 3.24%, an increase of 23 basis points compared to 3.01% in the first quarter of 2011.

Non-Interest Income

Non-interest income decreased $1.4 million, or 29.2%, to $3.4 million from $4.8 million in the first quarter of 2011. The decrease in non-interest income was primarily related to the wind down of the Sidus wholesale mortgage business.

Non-Interest Expense

Non-interest expense increased $7.5 million, or 44.6%, to $24.5 million, compared to $16.9 million in the first quarter of 2011. $4.9 million of this increase is related to the goodwill write-off from Sidus Financial. Another $2.1 million of the increase is related to expenses relative to severance, lease costs, and fixed asset write-offs from branch consolidation and the closing of the Sidus wholesale mortgage business and its related facilities. In addition, OREO costs continue to be elevated due to declining real estate values.

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Income Tax Expense

A valuation allowance of $11 million was set up during the second quarter as the Company considers both positive and negative evidence in the evaluation of whether the Company will realize the full benefit of the net deferred tax asset. The recent earnings trends and projected earnings and asset quality are reflected in this allowance.

Balance Sheet and Capital

Total assets decreased $149.8 million to $2.1 billion, down from $2.2 billion at March 31, 2011. Over the first half of 2011, total assets decreased $219.6 million, or 9.5%. The decrease in total assets was primarily related to a reduction of cash as a result of planned deposit attrition. Total deposits have decreased $194.6 million, or 9.6%, over the first half of 2011. This deposit decrease continues to be mostly higher cost CD deposits, as our non-interest bearing demand deposits continue to increase in volume. Brokered CDs and CDARs remain a relatively small portion of the Company’s funding sources, as these deposits represented 3.7% of total deposits at June 30, 2011, a continued decrease from the level at March 31, 2011.

Gross loans have decreased by $96.3 million, or 6.01%, since the end of 2010. We continue to manage the growth of our loan portfolio, concentrating our lending efforts toward small businesses and owner occupied commercial real estate loans.

The Bank remains well-capitalized for regulatory purposes. As of June 30, 2011, the Bank’s leverage ratio, Tier 1 risk-based capital ratio and total risk-based capital ratio were 7.14%, 9.43%, and 10.70%, 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.

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Conference Call

Yadkin Valley Financial Corporation will host a conference call at 10:00 a.m. EDT on Thursday, July 28, 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=100172&CompanyID=YAVY&e=1&mediaKey=C0BD0B7D7BA30A3E46A5C745FA0F7F34. A replay of the call will be available until August 4, 2011 by dialing 855-859-2056 or 404-537-3406 and entering access code 85090154.

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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 37 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.

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For additional information contact:

Joseph H. Towell

President and Chief Executive Officer

(704) 768-1133

joe.towell@yadkinvalleybank.com

Jan H. Hollar

Executive Vice President and Chief Financial Officer

(704) 768-1161

jan.hollar@yadkinvalleybank.com

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Yadkin Valley Financial Corporation

Consolidated Balance Sheets (Unaudited)

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Yadkin Valley Financial Corporation

Consolidated Income Statements (Unaudited)

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Yadkin Valley Financial Corporation

(unaudited)

Notes:

Tangible Assets are the difference of total assets less the sum of goodwill and core deposit intangible

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Yadkin Valley Financial Corporation

Average Balance Sheets and Net Interest Income Analysis (Unaudited)