Attached files
| file | filename |
|---|---|
| 8-K - 8-K - YADKIN FINANCIAL Corp | form8-k2q13.htm |
Yadkin Financial Corporation Announces Second Quarter 2013 Results; Continued Solid Profitability
Second Quarter Highlights:
• | Net income available to common shareholders for the second quarter of 2013 was $4.2 million, or $0.30 per diluted share. |
• | The average net interest margin for the quarter was 3.90%, an increase of 33 basis points compared to the prior quarter. |
• | Total loan balances increased $10.5 million compared to the prior quarter - our first quarterly increase in more than 2 years. |
• | Net interest income increased $1.1 million compared to the prior quarter due primarily to decreased deposit interest expense. |
• | The Company successfully completed its rebranding initiative and the 1-for-3 reverse stock split during the second quarter. |
Elkin, NC - July 25, 2013 - Yadkin Financial Corporation (NASDAQ: YDKN), the holding company for Yadkin Bank, announced today financial results for the second quarter ended June 30, 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 $4.2 million, or $0.30 per diluted share, in the first quarter of 2013, and net income of $10.2 million, or $1.57 per diluted share, in the second quarter of 2012.
Joe Towell, President and CEO of Yadkin Financial, commented, “I'm very pleased to report another quarter of solid performance. Our main area of focus in 2013 is solid profitability, and we have delivered on that goal through the first half of the year. We are also maintaining our clean credit profile, which is key to delivering core earnings. Our net interest margin expanded nicely this quarter, as we continue to drive net interest income through loan growth and improving our deposit mix.
During the second quarter, the Company hit several major milestones: we completed our rebranding initiative, with all divisions of the Company now operating under the Yadkin name; we effected our 1-for-3 reverse stock split; and we were included in the Russell 2000® Small Cap Index. Those items, along with $4.2 million in net income, add up to a very positive quarter and yet another important pillar in the strength of the Yadkin story. Our performance continues to produce strong results, and our Board, management team, and employees are focused on the future. We are looking forward to continued success throughout the second half of 2013."
Second Quarter 2013 Financial Highlights
Asset Quality
The Bank's key asset quality metrics continue to be strong as we maintain a clean credit profile. First, our adversely classified items to Tier 1 capital and loan loss reserve ratio has continued to decrease, down to 22.34% at the end of the second quarter. Our nonperforming loans decreased $4.0 million compared to the prior quarter, to $19.7 million.
In addition, nonperforming loans to total loans ratio decreased to 1.47% at June 30, 2013, compared to 1.79% at March 31, 2013.
Nonperforming Loan Analysis | ||||||||||||
(Dollars in thousands) | ||||||||||||
June 30, 2013 | March 31, 2013 | |||||||||||
Loan Type | Outstanding Balance | % of Total Loans | Outstanding Balance | % of Total Loans | ||||||||
Construction/land development | $ | 3,545 | 0.27 | % | $ | 5,290 | 0.40 | % | ||||
Residential construction | 553 | 0.04 | % | 2,284 | 0.17 | % | ||||||
HELOC | 2,003 | 0.15 | % | 2,005 | 0.15 | % | ||||||
1-4 family residential | 2,749 | 0.21 | % | 3,027 | 0.23 | % | ||||||
Commercial real estate | 7,739 | 0.58 | % | 8,040 | 0.61 | % | ||||||
Commercial & industrial | 2,743 | 0.21 | % | 2,756 | 0.21 | % | ||||||
Consumer & other | 366 | 0.03 | % | 310 | 0.02 | % | ||||||
Total | $ | 19,698 | 1.47 | % | $ | 23,712 | 1.79 | % | ||||
Other real estate owned (OREO) totaled $3.8 million at June 30, 2013, a decrease of $1.6 million compared to $5.4 million at March 31, 2013. We sold a large portion of our commercial OREO as part of our accelerated asset disposition plan, and we continue to have success moving our residential properties. Total nonperforming assets at June 30, 2013 were $23.5 million, or 1.30% of total assets, a decrease of $5.7 million from March 31, 2013.
During the second quarter of 2013, the provision for loan losses was $55,000, a decrease of $182,000 from the first quarter of 2013. This decrease is due to the continued clean credit profile of the Company following the completion of the accelerated asset disposition plan. Total net charge-offs for the second quarter of 2013 were $1.6 million, or 0.49% of average loans on an annualized basis.
At June 30, 2013, the allowance for loan losses was $22.9 million, compared to $24.5 million at March 31, 2013. As a percentage of total loans held-for-investment, the allowance for loan losses was 1.74% in the second quarter of 2013, down from 1.88% in the first quarter of 2013. While credit quality has improved, the reserve remains at a conservative level due to continued economic uncertainty and other external factors in our markets. Out of the $22.9 million in total allowance for loan losses at June 30, 2013, the specific allowance for impaired loans accounted for $2.0 million, down from $2.1 million in the first quarter. The remaining general allowance of $20.9 million attributed to unimpaired loans was down from $22.4 million at the end of the first quarter.
Net Interest Income and Net Interest Margin
Net interest income was up $1.1 million quarter over quarter, totaling $16.1 million for the second quarter of 2013. We also experienced a significant increase in our net interest margin. The quarterly average margin increased 33 basis points to 3.90%, up from 3.57% at March 31, 2013. This increase in margin is due primarily to a continued decrease in deposit interest expense.
In the second quarter of 2013, we continued to strategically shift our deposit mix and lower our cost of deposits. Core deposits now represent 61.7% of total deposits, our highest percentage in the last eight quarters, as we focus on core deposit growth. As a result of this strategy, our cost of deposits decreased to 0.55% for the quarter as compared to 0.71% in the first quarter of 2013.
Non-Interest Income
Non-interest income increased $527,000 to $6.2 million compared to $5.7 million in the first quarter of 2013. This increase is due primarily to the increase in service fees this quarter.
Non-Interest Expense
Non-interest expense increased in the second quarter of 2013 to $14.8 million as compared to $13.2 million in the first quarter of 2013. We expect part of this increase to be unique to the second quarter as we recorded many of the budgeted expenses related to our rebranding initiative during the quarter.
Balance Sheet and Capital
Total assets decreased $44.7 million during the second quarter of 2013. However, for the first time in the last two years, we had an increase in total loans, up $10.5 million compared to the prior quarter. The decrease in total deposits of $38.6 million consisted primarily of a reduction in higher cost time deposits. Core deposits increased $25.1 million compared to the prior quarter.
The Company's capital ratios have strengthened and continue to exceed all regulatory requirements. As of June 30, 2013, the Bank's leverage ratio, Tier 1 risk-based capital ratio, and total risk-based capital ratio were 10.3%, 12.5%, and 13.7%, respectively. Leverage ratio, Tier 1 risk-based capital ratio, and total risk-based capital ratio were 10.6%, 12.8%, and 14.0% respectively, for the holding company as of June 30, 2013. In addition, the Company's tangible common equity to total tangible assets ratio was 8.0% at the end of the second quarter, compared to 7.8% at March 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. EST on Thursday, July 25, 2013 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 audio may be accessed at http://www.media-server.com/m/p/bns4u78z. A replay of the call will be available until July 31, 2013 by dialing 855-859-2056 or 404-537-3406 and entering Conference ID 20307852.
####
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, and Iredell Counties. The Southern Region serves Durham, Orange, 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 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 quarter ended June 30, 2013 and in the sections entitled “Risk Factors” in quarterly reports filed on Form 10-Q for the quarters ended March 31, 2013, September 30, 2012, and June 30, 2012, and annual report filed on Form 10-K for the year ended December 31, 2012. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update or revise forward-looking statements.
For additional information contact:
Joseph H. Towell
President and Chief Executive Officer
(704) 768-1133
joe.towell@yadkinbank.com
Jan H. Hollar
Executive Vice President and Chief Financial Officer
(704) 768-1161
jan.hollar@yadkinbank.com
Yadkin Financial Corporation | |||||||||||||||||||
Consolidated Balance Sheets (Unaudited) | |||||||||||||||||||
(Amounts in thousands except share and per share data) | |||||||||||||||||||
June 30, 2013 | March 31, 2013 | December 31, 2012 (a) | September 30, 2012 | June 30, 2012 | |||||||||||||||
Assets: | |||||||||||||||||||
Cash and due from banks | $ | 28,104 | $ | 22,210 | $ | 36,125 | $ | 26,048 | $ | 25,642 | |||||||||
Federal funds sold | 50 | 50 | 50 | 50 | 50 | ||||||||||||||
Interest-earning deposits with banks | 4,654 | 20,447 | 102,221 | 97,124 | 75,895 | ||||||||||||||
U.S. government agencies | 16,625 | 17,232 | 27,527 | 32,869 | 23,058 | ||||||||||||||
Mortgage-backed securities | 203,173 | 248,030 | 230,894 | 221,806 | 248,674 | ||||||||||||||
State and municipal securities | 110,410 | 115,435 | 84,567 | 54,769 | 66,607 | ||||||||||||||
Common and preferred stocks | 137 | 149 | 132 | 1,112 | 1,133 | ||||||||||||||
Total investment securities | 330,345 | 380,846 | 343,120 | 310,556 | 339,472 | ||||||||||||||
Construction loans | 127,564 | 133,200 | 131,981 | 147,408 | 189,840 | ||||||||||||||
Commercial, financial and other loans | 186,965 | 182,268 | 193,810 | 190,294 | 189,245 | ||||||||||||||
Residential mortgages | 167,784 | 166,565 | 140,931 | 174,728 | 167,774 | ||||||||||||||
Commercial real estate loans | 604,667 | 596,790 | 617,468 | 615,733 | 594,798 | ||||||||||||||
Installment loans | 32,133 | 32,037 | 33,426 | 34,216 | 34,177 | ||||||||||||||
Revolving 1-4 family loans | 195,648 | 193,404 | 191,888 | 196,489 | 196,547 | ||||||||||||||
Total loans | 1,314,761 | 1,304,264 | 1,309,504 | 1,358,868 | 1,372,381 | ||||||||||||||
Allowance for loan losses | (22,924 | ) | (24,492 | ) | (25,149 | ) | (27,231 | ) | (28,797 | ) | |||||||||
Net loans | 1,291,837 | 1,279,772 | 1,284,355 | 1,331,637 | 1,343,584 | ||||||||||||||
Loans held for sale | 22,545 | 18,461 | 27,679 | 24,766 | 24,867 | ||||||||||||||
Accrued interest receivable | 6,546 | 6,502 | 6,376 | 6,229 | 6,512 | ||||||||||||||
Bank premises and equipment | 42,410 | 42,454 | 41,849 | 41,460 | 41,547 | ||||||||||||||
Foreclosed real estate | 3,812 | 5,449 | 8,738 | 22,294 | 25,573 | ||||||||||||||
Non-marketable equity securities at cost | 3,473 | 3,474 | 4,154 | 4,155 | 4,630 | ||||||||||||||
Investment in bank-owned life insurance | 26,736 | 26,587 | 26,433 | 26,274 | 26,114 | ||||||||||||||
Core deposit intangible | 2,301 | 2,475 | 2,653 | 2,914 | 3,180 | ||||||||||||||
Other assets | 39,102 | 37,865 | 39,685 | 26,871 | 28,273 | ||||||||||||||
Total assets | $ | 1,801,915 | $ | 1,846,592 | $ | 1,923,438 | $ | 1,920,378 | $ | 1,945,339 | |||||||||
Liabilities and shareholders' equity: | |||||||||||||||||||
Deposits: | |||||||||||||||||||
Non-interest bearing | $ | 252,618 | $ | 257,388 | $ | 273,896 | $ | 256,402 | $ | 244,191 | |||||||||
NOW, savings and money market accounts | 686,438 | 656,524 | 624,460 | 606,220 | 613,051 | ||||||||||||||
Time certificates: | |||||||||||||||||||
$100 or more | 251,168 | 281,652 | 316,146 | 342,356 | 348,072 | ||||||||||||||
Other | 332,873 | 366,095 | 417,160 | 446,482 | 468,049 | ||||||||||||||
Total deposits | 1,523,097 | 1,561,659 | 1,631,662 | 1,651,460 | 1,673,363 | ||||||||||||||
Borrowings | 91,896 | 99,160 | 105,136 | 102,299 | 99,310 | ||||||||||||||
Accrued expenses and other liabilities | 12,306 | 10,922 | 15,846 | 11,383 | 18,087 | ||||||||||||||
Total liabilities | 1,627,299 | 1,671,741 | 1,752,644 | 1,765,142 | 1,790,760 | ||||||||||||||
Total shareholders' equity | 174,616 | 174,851 | 170,794 | 155,236 | 154,579 | ||||||||||||||
Total liabilities and shareholders' equity | $ | 1,801,915 | $ | 1,846,592 | $ | 1,923,438 | $ | 1,920,378 | $ | 1,945,339 | |||||||||
Period end shares outstanding | 14,383,986 | 14,383,884 | 14,383,882 | 6,667,896 | 6,667,896 | ||||||||||||||
(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) | |||||||||||||||||||
June 30, 2013 | March 31, 2013 | December 31, 2012 | September 30, 2012 | June 30, 2012 | |||||||||||||||
Interest and fees on loans | $ | 16,950 | $ | 16,679 | $ | 17,338 | $ | 17,735 | $ | 17,944 | |||||||||
Interest on securities | 1,686 | 1,548 | 1,381 | 1,674 | 1,754 | ||||||||||||||
Interest on federal funds sold | 3 | 6 | 8 | 9 | 8 | ||||||||||||||
Interest-bearing deposits | 12 | 42 | 66 | 28 | 38 | ||||||||||||||
Total interest income | 18,651 | 18,275 | 18,793 | 19,446 | 19,744 | ||||||||||||||
Time deposits of $100 or more | 1,009 | 1,352 | 1,346 | 1,762 | 1,913 | ||||||||||||||
Other deposits | 1,112 | 1,432 | 2,132 | 2,018 | 2,193 | ||||||||||||||
Borrowed funds | 409 | 439 | 570 | 477 | 480 | ||||||||||||||
Total interest expense | 2,530 | 3,223 | 4,048 | 4,257 | 4,586 | ||||||||||||||
Net interest income | 16,121 | 15,052 | 14,745 | 15,189 | 15,158 | ||||||||||||||
Provision for loan losses | 55 | 237 | 31,554 | 4,251 | 2,218 | ||||||||||||||
Net interest income after provision for loan losses | 16,066 | 14,815 | (16,809 | ) | 10,938 | 12,940 | |||||||||||||
Non-interest income: | |||||||||||||||||||
Service charges on deposit accounts | 1,317 | 1,269 | 1,398 | 1,319 | 1,325 | ||||||||||||||
Other service fees | 1,401 | 927 | 986 | 857 | 893 | ||||||||||||||
Income on investment in bank owned life insurance | 150 | 153 | 159 | 159 | 157 | ||||||||||||||
Mortgage banking activities | 2,546 | 3,288 | 1,448 | 1,599 | 1,674 | ||||||||||||||
Gains on sale of securities | 272 | 4 | 96 | 1,348 | 300 | ||||||||||||||
Other than temporary impairment of investments | — | (39 | ) | (50 | ) | — | — | ||||||||||||
Loss on sale of subsidiary | — | (1 | ) | (1,019 | ) | — | — | ||||||||||||
Loss on sale of loans | — | — | (2,132 | ) | (900 | ) | — | ||||||||||||
Other | 498 | 56 | 100 | 283 | 57 | ||||||||||||||
Total non-interest income | 6,184 | 5,657 | 986 | 4,665 | 4,406 | ||||||||||||||
Non-interest expense: | |||||||||||||||||||
Salaries and employee benefits | 7,953 | 7,389 | 6,935 | 6,914 | 6,354 | ||||||||||||||
Occupancy and equipment | 1,951 | 1,815 | 1,562 | 1,794 | 1,790 | ||||||||||||||
Printing and supplies | 150 | 163 | 157 | 168 | 151 | ||||||||||||||
Data processing | 350 | 395 | 447 | 456 | 453 | ||||||||||||||
Communication expense | 338 | 332 | 354 | 314 | 354 | ||||||||||||||
Advertising and marketing | 433 | 256 | 77 | 103 | 100 | ||||||||||||||
Amortization of core deposit intangible | 175 | 178 | 260 | 266 | 275 | ||||||||||||||
FDIC assessment expense | 642 | 592 | 664 | 650 | 659 | ||||||||||||||
Attorney fees | 178 | 90 | 263 | 311 | 150 | ||||||||||||||
Other professional fees | 497 | 476 | 736 | 491 | 479 | ||||||||||||||
Loan collection expense | 201 | 217 | 569 | 69 | 192 | ||||||||||||||
(Gain) loss on fixed assets | — | — | 153 | — | (1 | ) | |||||||||||||
Net cost of operation of other real estate owned | (174 | ) | (822 | ) | 8,136 | 1,322 | 2,745 | ||||||||||||
Other | 2,149 | 2,134 | 2,395 | 1,934 | 2,031 | ||||||||||||||
Total non-interest expense | 14,843 | 13,215 | 22,708 | 14,792 | 15,732 | ||||||||||||||
Income (loss) before income taxes | 7,407 | 7,257 | (38,531 | ) | 811 | 1,614 | |||||||||||||
Provision for income taxes (benefit) | 2,598 | 2,608 | (14,632 | ) | 54 | (9,383 | ) | ||||||||||||
Net income (loss) | 4,809 | 4,649 | (23,899 | ) | 757 | 10,997 | |||||||||||||
Preferred stock dividend and amortization of preferred stock discount | 590 | 445 | 1,419 | 838 | 833 | ||||||||||||||
Net income (loss) available to common shareholders | $ | 4,219 | $ | 4,204 | $ | (25,318 | ) | $ | (81 | ) | $ | 10,164 | |||||||
Net income (loss) per common share (a) | |||||||||||||||||||
Basic | $ | 0.30 | $ | 0.30 | $ | (3.63 | ) | $ | (0.01 | ) | $ | 1.57 | |||||||
Diluted | $ | 0.30 | $ | 0.30 | $ | (3.63 | ) | $ | (0.01 | ) | $ | 1.57 | |||||||
Weighted average number of shares outstanding | |||||||||||||||||||
Basic | 14,205,223 | 14,198,382 | 6,972,526 | 6,463,084 | 6,462,173 | ||||||||||||||
Diluted | 14,223,604 | 14,200,424 | 6,972,526 | 6,463,084 | 6,462,173 | ||||||||||||||
(a) Net income (loss) per share for prior periods has been adjusted to reflect the 1-for-3 reverse stock split. | |||||||||||||||||||
Yadkin Financial Corporation | |||||||||||||||||||
(unaudited) | |||||||||||||||||||
At or For the Three Months Ended | |||||||||||||||||||
June 30, 2013 | March 31, 2013 | December 31, 2012 | September 30, 2012 | June 30, 2012 | |||||||||||||||
Per Share Data: | |||||||||||||||||||
Basic Earnings (Loss) per Share (8) | $ | 0.30 | $ | 0.30 | $ | (3.63 | ) | $ | (0.01 | ) | $ | 1.57 | |||||||
Diluted Earnings (Loss) per Share (8) | 0.30 | 0.30 | (3.63 | ) | (0.01 | ) | 1.57 | ||||||||||||
Book Value per Share (8) | 10.17 | 10.21 | 9.93 | 16.08 | 16.02 | ||||||||||||||
Selected Performance Ratios: | |||||||||||||||||||
Return on Average Assets (annualized) | 0.93 | % | 0.91 | % | (5.15 | )% | (0.02 | )% | 2.08 | % | |||||||||
Return on Average Equity (annualized) | 9.63 | % | 9.94 | % | (53.53 | )% | (0.21 | )% | 26.93 | % | |||||||||
Net Interest Margin (annualized)(7) | 3.90 | % | 3.57 | % | 3.28 | % | 3.37 | % | 3.39 | % | |||||||||
Net Interest Spread (annualized)(7) | 3.76 | % | 3.40 | % | 3.08 | % | 3.19 | % | 3.21 | % | |||||||||
Non-interest Income as a % of Revenue(6)(7) | 27.79 | % | 27.63 | % | (6.23 | )% | 29.90 | % | 25.40 | % | |||||||||
Non-interest Income as a % of Average Assets (7) | 0.34 | % | 0.30 | % | 0.05 | % | 0.24 | % | 0.23 | % | |||||||||
Non-interest Expense as a % of Average Assets (7) | 0.82 | % | 0.70 | % | 1.17 | % | 0.76 | % | 0.80 | % | |||||||||
Asset Quality: | |||||||||||||||||||
Loans 30-89 Days Past Due (000's) (4) | $ | 6,493 | $ | 6,060 | $ | 14,000 | $ | 13,354 | $ | 10,321 | |||||||||
Loans Over 90 Days Past Due Still Accruing (000's) | — | — | — | — | — | ||||||||||||||
Nonperforming Loans (000's) | 19,698 | 23,712 | 22,817 | 57,053 | 63,305 | ||||||||||||||
Other Real Estate Owned (000's) | 3,812 | 5,449 | 8,738 | 22,294 | 25,573 | ||||||||||||||
Nonperforming Assets (000's) | 23,510 | 29,161 | 31,555 | 79,347 | 88,878 | ||||||||||||||
Accruing/Performing Troubled Debt Restructurings (000's) (5) | 9,162 | 8,579 | 17,667 | 13,929 | 12,596 | ||||||||||||||
Nonperforming Loans to Total Loans | 1.47 | % | 1.79 | % | 1.71 | % | 4.12 | % | 4.53 | % | |||||||||
Nonperforming Assets to Total Assets | 1.30 | % | 1.58 | % | 1.64 | % | 4.13 | % | 4.57 | % | |||||||||
Allowance for Loan Losses to Total Loans | 1.71 | % | 1.85 | % | 1.88 | % | 1.97 | % | 2.06 | % | |||||||||
Allowance for Loan Losses to Total Loans Held for Investment | 1.74 | % | 1.88 | % | 1.92 | % | 2.00 | % | 2.10 | % | |||||||||
Allowance for Loan Losses to Nonperforming Loans | 116.38 | % | 103.29 | % | 110.22 | % | 47.73 | % | 45.49 | % | |||||||||
Net Charge-offs/Recoveries to Average Loans (annualized) | 0.49 | % | 0.27 | % | 9.74 | % | 1.66 | % | 0.99 | % | |||||||||
Capital Ratios: | |||||||||||||||||||
Equity to Total Assets | 9.69 | % | 9.47 | % | 8.88 | % | 8.08 | % | 7.95 | % | |||||||||
Tier 1 Leverage Ratio(1) | 10.30 | % | 9.72 | % | 8.92 | % | 8.73 | % | 8.55 | % | |||||||||
Tier 1 Risk-based Ratio(1) | 12.49 | % | 12.23 | % | 11.73 | % | 11.18 | % | 10.89 | % | |||||||||
Total Risk-based Capital Ratio(1) | 13.74 | % | 13.49 | % | 12.99 | % | 12.44 | % | 12.15 | % | |||||||||
Non-GAAP Disclosures(2): | |||||||||||||||||||
Tangible Book Value per Share | $ | 10.01 | $ | 10.03 | $ | 9.75 | $ | 15.64 | $ | 15.54 | |||||||||
Return on Tangible Equity (annualized) (3) | 9.76 | % | 10.09 | % | (54.34 | )% | (0.21 | )% | 27.54 | % | |||||||||
Tangible Common Equity to Tangible Assets (3) | 8.00 | % | 7.83 | % | 7.30 | % | 5.44 | % | 5.33 | % | |||||||||
Efficiency Ratio (7) | 66.55 | % | 66.40 | % | 88.62 | % | 66.46 | % | 65.63 | % | |||||||||
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 it is 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 provides 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, less the sum of goodwill and core deposit intangible. Tangible Assets are the difference of total assets less the sum of goodwill and core deposit intangible. |
(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) | Certain income and expense amounts in the prior periods have been reclassified based on a change in our mortgage reporting segment. |
(8) | Prior period per share amounts 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 June 30, | ||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||
Average | Yield/ | Average | Yield/ | |||||||||||||||||||
Balance | Interest | Rate | Balance | Interest | Rate | |||||||||||||||||
INTEREST EARNING ASSETS | ||||||||||||||||||||||
Total loans (1,2) | $ | 1,325,313 | $ | 16,978 | 5.14 | % | $ | 1,405,230 | $ | 17,980 | 5.15 | % | ||||||||||
Investment securities | 353,837 | 2,041 | 2.31 | % | 352,876 | 2,000 | 2.28 | % | ||||||||||||||
Interest-bearing deposits & federal funds sold | 17,741 | 15 | 0.34 | % | 74,548 | 46 | 0.25 | % | ||||||||||||||
Total average earning assets (1) | 1,696,891 | 19,034 | 4.50 | % | (6) | 1,832,654 | 20,026 | 4.39 | % | (6) | ||||||||||||
Non-interest earning assets | 123,142 | 124,972 | ||||||||||||||||||||
Total average assets | $ | 1,820,033 | $ | 1,957,626 | ||||||||||||||||||
INTEREST BEARING LIABILITIES | ||||||||||||||||||||||
Time deposits | $ | 607,172 | $ | 1,835 | 1.21 | % | $ | 835,120 | $ | 3,665 | 1.77 | % | ||||||||||
Other deposits | 674,966 | 285 | 0.17 | % | 616,773 | 440 | 0.29 | % | ||||||||||||||
Borrowed funds | 99,379 | 410 | 1.65 | % | 103,715 | 480 | 1.86 | % | ||||||||||||||
Total interest bearing liabilities | 1,381,517 | 2,530 | 0.73 | % | (7) | 1,555,608 | 4,585 | 1.19 | % | (7) | ||||||||||||
Non-interest bearing deposits | 251,482 | 238,370 | ||||||||||||||||||||
Other liabilities | 11,260 | 12,278 | ||||||||||||||||||||
Total average liabilities | 1,644,259 | 1,806,256 | ||||||||||||||||||||
Shareholders' equity | 175,774 | 151,370 | ||||||||||||||||||||
Total average liabilities and | ||||||||||||||||||||||
shareholders' equity | $ | 1,820,033 | $ | 1,957,626 | ||||||||||||||||||
NET INTEREST INCOME/ | ||||||||||||||||||||||
YIELD (3,4) | $ | 16,504 | 3.90 | % | $ | 15,441 | 3.39 | % | ||||||||||||||
INTEREST SPREAD (5) | 3.76 | % | 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 $68,000 and $62,000, 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 $79,000, respectively, of accretion for purchase accounting adjustments related to deposits and borrowings acquired in the merger with American Community. |