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8-K - 8-K - YADKIN FINANCIAL Corp | form8-k4q13.htm |
Yadkin Financial Corporation Finishes Strong in 2013, Announces Fourth Quarter Results
Fourth Quarter Highlights:
• | Net income available to common shareholders for the fourth quarter of 2013 was $4.2 million, or $0.30 per diluted share. |
• | The average net interest margin for the quarter was 4.04%, an increase of 11 basis points compared to the prior quarter, and the Company's highest margin in the last eight quarters. |
• | Total loan balances increased $25.3 million, or 1.9% compared to the prior quarter, our third consecutive quarter of loan growth. |
• | Nonperforming assets decreased for the fifth consecutive quarter, ending the quarter at 1.03% of total assets. |
• | Gross charge-offs for the quarter totaled $1.3 million, offset by $1.4 million in recoveries. |
Full Year 2013 Highlights
• | Net income available to common shareholders for the full year 2013 was $16.9 million, or $1.19 per diluted share. |
• | Total loan balances increased 3.8% in 2013, demonstrating the Company's strong commitment to organic growth in our markets. |
• | The average net interest margin for the 12 months ending December 31, 2013 was 3.86%, an increase of 46 basis points compared to the prior year-end. |
• | Credit quality continued to improve following the accelerated asset disposition plan carried out during the fourth quarter of 2012. Comparing December 31, 2013 to December 31, 2012: |
◦ | Nonperforming loans have decreased 32.5%, |
◦ | Loans 30-89 days past due have decreased 37.8%, |
◦ | Nonperforming assets have decreased 40.9% |
• | The allowance for loan losses to total loans held-for-investment was 1.33% at December 31, 2013. It remains adequate for the level of risk on the Company's balance sheet, and management remains committed to maintaining adequate coverage. |
• | Net interest income after provision for the fourth quarter has increased $36.6 million compared to the fourth quarter of 2012, due to the significant decrease in provision for loan losses during the year as a result of improved credit quality. |
Elkin, NC - January 29, 2014 - Yadkin Financial Corporation (NASDAQ: YDKN), the holding company for Yadkin Bank, announced today financial results for the fourth quarter ended December 31, 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 $4.3 million, or $0.30 per diluted share, in the third quarter of 2013, and net loss of $25.3 million, or $3.63 per diluted share, in the fourth quarter of 2012.
Joe Towell, President and CEO of Yadkin Financial, commented, "2013 was a very strong year for Yadkin Bank. We returned to stability and strength following the execution of our accelerated asset disposition plan at the end of 2012, and we haven't looked back. Every business unit in the Bank worked toward making 2013 a year of consistent and meaningful profitability, and we have accomplished that goal. While doing this, we have continued to improve our credit quality, we have hired several talented individuals in key positions, and we have focused on internal reorganization to ensure efficiency and effectiveness at every level of the Company. All of this progress has allowed us to ensure that customer experience is top of mind in all that we do. I am proud of our team for their hard work throughout the year.
Our loan growth is the big highlight, both for the fourth quarter and for the year. Loan balances increased 1.9% quarter over quarter, and 3.8% year over year, which exceeded our internal expectations, as economic growth remains at a slower pace. Clearly, this demonstrates our commitment to quality growth, as we have achieved these goals while continuing to show improvement in our overall credit quality metrics.
In addition to our organic growth, we have continued to explore strategic options available to our Company, and our recent announcement is the culmination of those efforts. We are excited about building the largest community bank in North Carolina through our partnership with VantageSouth Bank, as we announced our plans for a transformational merger-of-equals. We believe this is the best next step for our two companies, and we are fully focused on creating value for our shareholders."
Fourth Quarter 2013 Financial Highlights
Asset Quality
The 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 decrease, down to 21.28% at the end of the fourth quarter. Our nonperforming loans decreased $2.5 million compared to the prior quarter, to $15.4 million at December 31, 2013. In addition, the nonperforming loans to total loans ratio decreased to 1.12% at December 31, 2013, compared to 1.33% at September 30, 2013.
Nonperforming Loan Analysis | ||||||||||||
(Dollars in thousands) | ||||||||||||
December 31, 2013 | September 30, 2013 | |||||||||||
Loan Type | Outstanding Balance | % of Total Loans | Outstanding Balance | % of Total Loans | ||||||||
Construction/land development | $ | 1,742 | 0.13 | % | $ | 2,917 | 0.22 | % | ||||
Residential construction | 589 | 0.04 | % | 548 | 0.04 | % | ||||||
HELOC | 1,285 | 0.09 | % | 1,373 | 0.10 | % | ||||||
1-4 family residential | 2,734 | 0.20 | % | 3,312 | 0.25 | % | ||||||
Commercial real estate | 6,479 | 0.47 | % | 7,831 | 0.58 | % | ||||||
Commercial & industrial | 2,306 | 0.17 | % | 1,622 | 0.12 | % | ||||||
Consumer & other | 258 | 0.02 | % | 271 | 0.02 | % | ||||||
Total | $ | 15,393 | 1.12 | % | $ | 17,874 | 1.33 | % |
Other real estate owned (OREO) totaled $3.3 million at December 31, 2013, a slight increase of $278,000 compared to $3.0 million at September 30, 2013. Total nonperforming assets at December 31, 2013 were $18.7 million, or 1.03% of total assets, a decrease of $2.2 million from September 30, 2013. In addition, total gross charge-offs for the fourth quarter of 2013 were $1.3 million, offset by recoveries totaling $1.4 million.
During the fourth quarter of 2013, the provision for loan losses was ($3.0 million). This decrease in provision resulted in a $3.0 million decrease in the allowance for loan losses as well. 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 December 31, 2013, the allowance for loan losses was $18.1 million, compared to $21.0 million at September 30, 2013. As a percentage of total loans held-for-investment, the allowance for loan losses was 1.33% in the fourth quarter of 2013, down from 1.58% in the third quarter of 2013. Out of the $18.1 million in total allowance for loan losses at December 31, 2013, the specific allowance for impaired loans accounted for $557,000, up from $409,000 in the third quarter. The remaining general allowance of $17.5 million attributed to unimpaired loans was down from $20.6 million at the end of the third quarter.
Net Interest Income and Net Interest Margin
Net interest income after provision increased by $3.7 million to $19.8 million for the quarter. Our net interest margin continued to expand with the quarterly average margin increasing 11 basis points to 4.04%, up from 3.93% at September 30, 2013. This increase in margin is due to our continued loan growth, consistent yield on loans, and continued focus on our deposit mix.
In the fourth quarter of 2013, our cost of deposits continued to decrease as we finished our final phase of deposit repricing. Core deposits represent 63.3% of total deposits, and our total deposits increased $27.1 million compared to the prior quarter. As a result of this strategy, our cost of deposits decreased to 0.46% for the quarter as compared to 0.51% in the third quarter of 2013.
Non-Interest Income
Non-interest income decreased $4.2 million to $1.2 million in the fourth quarter compared to $5.4 million in the third quarter of 2013. This decrease is due primarily to a loss on sale of securities, as we restructured a portion of our portfolio to be better positioned in the current rate environment.
Non-Interest Expense
Non-interest expense decreased $438,000 during the fourth quarter, down to $13.7 million as compared to $14.2 million in the third quarter. This decrease is primarily due to year-end accrual adjustments that occurred during the quarter.
Balance Sheet and Capital
Total assets decreased $7.5 million during the fourth quarter of 2013 as our loan growth was offset by a decrease on our securities portfolio. Total loans increased $25.3 million as compared to the prior quarter, marking our third consecutive quarter of loan growth. Total deposits increased $27.1 million and core deposits represented more than 65% of that increase.
The Company's capital ratios have strengthened and continue to exceed all regulatory requirements. As of December 31, 2013, the Bank’s leverage ratio, Tier 1 risk-based capital ratio, and total risk-based capital ratio were 11.2%, 13.2%, and 14.4%, respectively. Leverage ratio, Tier 1 risk-based capital ratio, and total risk-based capital ratio were 11.5%, 13.5%, and 14.6% respectively, for the holding company as of December 31, 2013. In addition, the Company's tangible common equity to total tangible assets ratio was 8.5% at the end of the fourth quarter, compared to 8.2% at September 30, 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.
####
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 44-45 of Yadkin Financial Corporation’s quarterly report filed on Form 10-Q with the SEC for the quarters ended September 30, 2013, June 30, 2013, and March 31, 2013, and in the section entitled "Risk Factors" in the annual report filed on Form 10-K for the year ended December 31, 2012 and, once available, 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.
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) | |||||||||||||||||||
December 31, 2013 | September 30, 2013 | June 30, 2013 | March 31, 2013 | December 31, 2012 (a) | |||||||||||||||
Assets: | |||||||||||||||||||
Cash and due from banks | $ | 32,226 | $ | 32,417 | $ | 28,104 | $ | 22,210 | $ | 36,125 | |||||||||
Federal funds sold | 10 | 15 | 50 | 50 | 50 | ||||||||||||||
Interest-earning deposits with banks | 8,759 | 6,695 | 4,654 | 20,447 | 102,221 | ||||||||||||||
U.S. government agencies | 16,392 | 16,536 | 16,625 | 17,232 | 27,527 | ||||||||||||||
Mortgage-backed securities | 170,674 | 199,492 | 203,173 | 248,030 | 230,894 | ||||||||||||||
State and municipal securities | 98,704 | 109,626 | 110,410 | 115,435 | 84,567 | ||||||||||||||
Common and preferred stocks | 3,152 | 3,036 | 137 | 149 | 132 | ||||||||||||||
Total investment securities | 288,922 | 328,690 | 330,345 | 380,846 | 343,120 | ||||||||||||||
Construction loans | 131,035 | 128,951 | 127,564 | 133,200 | 131,981 | ||||||||||||||
Commercial, financial and other loans | 206,833 | 191,874 | 186,965 | 182,268 | 193,810 | ||||||||||||||
Residential mortgages | 174,072 | 171,747 | 167,784 | 166,565 | 140,931 | ||||||||||||||
Commercial real estate loans | 621,405 | 616,116 | 604,667 | 596,790 | 617,468 | ||||||||||||||
Installment loans | 31,256 | 31,450 | 32,133 | 32,037 | 33,426 | ||||||||||||||
Revolving 1-4 family loans | 194,145 | 193,299 | 195,648 | 193,404 | 191,888 | ||||||||||||||
Total loans | 1,358,746 | 1,333,437 | 1,314,761 | 1,304,264 | 1,309,504 | ||||||||||||||
Allowance for loan losses | (18,063 | ) | (21,014 | ) | (22,924 | ) | (24,492 | ) | (25,149 | ) | |||||||||
Net loans | 1,340,683 | 1,312,423 | 1,291,837 | 1,279,772 | 1,284,355 | ||||||||||||||
Loans held for sale | 18,913 | 12,632 | 22,545 | 18,461 | 27,679 | ||||||||||||||
Accrued interest receivable | 6,219 | 6,339 | 6,546 | 6,502 | 6,376 | ||||||||||||||
Bank premises and equipment | 40,698 | 41,050 | 42,410 | 42,454 | 41,849 | ||||||||||||||
Foreclosed real estate | 3,267 | 2,989 | 3,812 | 5,449 | 8,738 | ||||||||||||||
Non-marketable equity securities at cost | 3,473 | 5,273 | 3,473 | 3,474 | 4,154 | ||||||||||||||
Investment in bank-owned life insurance | 27,032 | 26,888 | 26,736 | 26,587 | 26,433 | ||||||||||||||
Core deposit intangible | 1,974 | 2,133 | 2,301 | 2,475 | 2,653 | ||||||||||||||
Other assets | 33,872 | 35,973 | 39,102 | 37,865 | 39,685 | ||||||||||||||
Total assets | $ | 1,806,048 | $ | 1,813,517 | $ | 1,801,915 | $ | 1,846,592 | $ | 1,923,438 | |||||||||
Liabilities and shareholders' equity: | |||||||||||||||||||
Deposits: | |||||||||||||||||||
Non-interest bearing | $ | 267,596 | $ | 266,951 | $ | 252,618 | $ | 257,388 | $ | 273,912 | |||||||||
NOW, savings and money market accounts | 693,558 | 676,502 | 686,438 | 656,524 | 624,460 | ||||||||||||||
Time certificates: | |||||||||||||||||||
$100 or more | 227,919 | 236,787 | 251,168 | 281,652 | 316,146 | ||||||||||||||
Other | 329,350 | 311,096 | 332,873 | 366,095 | 417,144 | ||||||||||||||
Total deposits | 1,518,423 | 1,491,336 | 1,523,097 | 1,561,659 | 1,631,662 | ||||||||||||||
Borrowings | 89,214 | 131,080 | 91,896 | 99,160 | 105,136 | ||||||||||||||
Accrued expenses and other liabilities | 13,920 | 12,229 | 12,306 | 10,922 | 15,846 | ||||||||||||||
Total liabilities | 1,621,557 | 1,634,645 | 1,627,299 | 1,671,741 | 1,752,644 | ||||||||||||||
Total shareholders' equity | 184,491 | 178,872 | 174,616 | 174,851 | 170,794 | ||||||||||||||
Total liabilities and shareholders' equity | $ | 1,806,048 | $ | 1,813,517 | $ | 1,801,915 | $ | 1,846,592 | $ | 1,923,438 | |||||||||
Period end shares outstanding | 14,383,986 | 14,383,986 | 14,383,986 | 14,383,884 | 14,383,882 |
(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) | |||||||||||||||||||
December 31, 2013 | September 30, 2013 | June 30, 2013 | March 31, 2013 | December 31, 2012 | |||||||||||||||
Interest and fees on loans | $ | 17,126 | $ | 16,849 | $ | 16,950 | $ | 16,679 | $ | 17,338 | |||||||||
Interest on securities | 1,773 | 1,616 | 1,686 | 1,548 | 1,381 | ||||||||||||||
Interest on federal funds sold | 1 | — | 3 | 6 | 8 | ||||||||||||||
Interest-bearing deposits | 3 | 5 | 12 | 42 | 66 | ||||||||||||||
Total interest income | 18,903 | 18,470 | 18,651 | 18,275 | 18,793 | ||||||||||||||
Time deposits of $100 or more | 803 | 877 | 1,009 | 1,352 | 1,346 | ||||||||||||||
Other deposits | 929 | 1,034 | 1,112 | 1,432 | 2,132 | ||||||||||||||
Borrowed funds | 422 | 423 | 409 | 439 | 570 | ||||||||||||||
Total interest expense | 2,154 | 2,334 | 2,530 | 3,223 | 4,048 | ||||||||||||||
Net interest income | 16,749 | 16,136 | 16,121 | 15,052 | 14,745 | ||||||||||||||
Provision for loan losses | (3,017 | ) | 40 | 55 | 237 | 31,554 | |||||||||||||
Net interest income after provision for loan losses | 19,766 | 16,096 | 16,066 | 14,815 | (16,809 | ) | |||||||||||||
Non-interest income: | |||||||||||||||||||
Service charges on deposit accounts | 1,264 | 1,336 | 1,317 | 1,269 | 1,398 | ||||||||||||||
Other service fees | 1,066 | 1,259 | 1,401 | 927 | 986 | ||||||||||||||
Income on investment in bank owned life insurance | 145 | 152 | 150 | 153 | 159 | ||||||||||||||
Mortgage banking activities | 1,162 | 1,713 | 2,546 | 3,288 | 1,448 | ||||||||||||||
Gain (loss) on sale of securities | (2,884 | ) | 253 | 272 | 4 | 96 | |||||||||||||
Other than temporary impairment of investments | — | — | — | (39 | ) | (50 | ) | ||||||||||||
Loss on sale of subsidiary | — | — | — | (1 | ) | (1,019 | ) | ||||||||||||
Gain (loss) on sale of loans | 202 | — | — | — | (2,132 | ) | |||||||||||||
Gain on sale of branch | — | 310 | — | — | — | ||||||||||||||
Other | 227 | 358 | 498 | 56 | 100 | ||||||||||||||
Total non-interest income | 1,182 | 5,381 | 6,184 | 5,657 | 986 | ||||||||||||||
Non-interest expense: | |||||||||||||||||||
Salaries and employee benefits | 7,854 | 7,780 | 7,953 | 7,389 | 6,935 | ||||||||||||||
Occupancy and equipment | 2,049 | 2,001 | 1,951 | 1,815 | 1,562 | ||||||||||||||
Printing and supplies | 151 | 159 | 150 | 163 | 157 | ||||||||||||||
Data processing | 376 | 374 | 350 | 395 | 447 | ||||||||||||||
Communication expense | 368 | 350 | 338 | 332 | 354 | ||||||||||||||
Advertising and marketing | (322 | ) | 348 | 433 | 256 | 77 | |||||||||||||
Amortization of core deposit intangible | 159 | 166 | 175 | 178 | 260 | ||||||||||||||
FDIC assessment expense | 433 | 363 | 642 | 592 | 664 | ||||||||||||||
Attorney fees | 81 | 90 | 178 | 90 | 263 | ||||||||||||||
Other professional fees | 456 | 237 | 497 | 476 | 736 | ||||||||||||||
Loan collection expense | 118 | 203 | 201 | 217 | 569 | ||||||||||||||
(Gain) loss on fixed assets | (12 | ) | 154 | — | — | 153 | |||||||||||||
Net cost of operation of other real estate owned | 302 | 93 | (174 | ) | (822 | ) | 8,136 | ||||||||||||
Other | 1,699 | 1,832 | 2,149 | 2,134 | 2,395 | ||||||||||||||
Total non-interest expense | 13,712 | 14,150 | 14,843 | 13,215 | 22,708 | ||||||||||||||
Income (loss) before income taxes | 7,236 | 7,327 | 7,407 | 7,257 | (38,531 | ) | |||||||||||||
Provision for income taxes (benefit) | 2,579 | 2,616 | 2,598 | 2,608 | (14,632 | ) | |||||||||||||
Net income (loss) | 4,657 | 4,711 | 4,809 | 4,649 | (23,899 | ) | |||||||||||||
Preferred stock dividend and amortization of preferred stock discount | 421 | 421 | 590 | 445 | 1,419 | ||||||||||||||
Net income (loss) available to common shareholders | $ | 4,236 | $ | 4,290 | $ | 4,219 | $ | 4,204 | $ | (25,318 | ) |
Net income (loss) per common share (a) | |||||||||||||||||||
Basic | $ | 0.30 | $ | 0.30 | $ | 0.30 | $ | 0.30 | $ | (3.63 | ) | ||||||||
Diluted | $ | 0.30 | $ | 0.30 | $ | 0.30 | $ | 0.30 | $ | (3.63 | ) | ||||||||
Weighted average number of shares outstanding | |||||||||||||||||||
Basic | 14,206,070 | 14,205,705 | 14,205,223 | 14,198,382 | 6,972,526 | ||||||||||||||
Diluted | 14,259,809 | 14,249,152 | 14,223,604 | 14,200,424 | 6,972,526 | ||||||||||||||
(a) Net income (loss) 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 | |||||||||||||||||||
December 31, 2013 | September 30, 2013 | June 30, 2013 | March 31, 2013 | December 31, 2012 | |||||||||||||||
Per Share Data: | |||||||||||||||||||
Basic Earnings (Loss) per Share (8) | $ | 0.30 | $ | 0.30 | $ | 0.30 | $ | 0.30 | $ | (3.63 | ) | ||||||||
Diluted Earnings (Loss) per Share (8) | 0.30 | 0.30 | 0.30 | 0.30 | (3.63 | ) | |||||||||||||
Book Value per Share (8) | 10.85 | 10.47 | 10.17 | 10.21 | 9.93 | ||||||||||||||
Selected Performance Ratios: | |||||||||||||||||||
Return on Average Assets (annualized) | 0.93 | % | 0.95 | % | 0.93 | % | 0.91 | % | (5.15 | )% | |||||||||
Return on Average Equity (annualized) | 9.31 | % | 9.74 | % | 9.63 | % | 9.94 | % | (53.53 | )% | |||||||||
Net Interest Margin (annualized) | 4.04 | % | 3.93 | % | 3.90 | % | 3.57 | % | 3.28 | % | |||||||||
Net Interest Spread (annualized) | 3.90 | % | 3.80 | % | 3.76 | % | 3.40 | % | 3.08 | % | |||||||||
Non-interest Income as a % of Revenue(6) | 5.64 | % | 25.05 | % | 27.79 | % | 27.63 | % | (6.23 | )% | |||||||||
Non-interest Income as a % of Average Assets | 0.07 | % | 0.30 | % | 0.34 | % | 0.30 | % | 0.05 | % | |||||||||
Non-interest Expense as a % of Average Assets | 0.76 | % | 0.79 | % | 0.82 | % | 0.70 | % | 1.17 | % | |||||||||
Asset Quality: | |||||||||||||||||||
Loans 30-89 Days Past Due (000's) (4) | $ | 8,702 | $ | 4,412 | $ | 6,493 | $ | 6,060 | $ | 14,000 | |||||||||
Loans Over 90 Days Past Due Still Accruing (000's) | — | — | — | — | — | ||||||||||||||
Nonperforming Loans (000's) | 15,393 | 17,874 | 19,698 | 23,712 | 22,817 | ||||||||||||||
Other Real Estate Owned (000's) | 3,267 | 2,989 | 3,812 | 5,449 | 8,738 | ||||||||||||||
Nonperforming Assets (000's) | 18,660 | 20,864 | 23,510 | 29,161 | 31,555 | ||||||||||||||
Accruing/Performing Troubled Debt Restructurings (000's) (5) | 6,287 | 5,599 | 9,162 | 8,579 | 17,667 | ||||||||||||||
Nonperforming Loans to Total Loans | 1.12 | % | 1.33 | % | 1.47 | % | 1.79 | % | 1.71 | % | |||||||||
Nonperforming Assets to Total Assets | 1.03 | % | 1.15 | % | 1.30 | % | 1.58 | % | 1.64 | % | |||||||||
Allowance for Loan Losses to Total Loans | 1.31 | % | 1.56 | % | 1.71 | % | 1.85 | % | 1.88 | % | |||||||||
Allowance for Loan Losses to Total Loans Held for Investment | 1.33 | % | 1.58 | % | 1.74 | % | 1.88 | % | 1.92 | % | |||||||||
Allowance for Loan Losses to Nonperforming Loans | 117.34 | % | 117.57 | % | 116.38 | % | 103.29 | % | 110.22 | % | |||||||||
Net Charge-offs/Recoveries to Average Loans (annualized) | (0.02 | )% | 0.58 | % | 0.49 | % | 0.27 | % | 9.74 | % | |||||||||
Capital Ratios: | |||||||||||||||||||
Equity to Total Assets | 10.22 | % | 9.86 | % | 9.69 | % | 9.47 | % | 8.88 | % | |||||||||
Tier 1 Leverage Ratio(1) | 11.24 | % | 10.88 | % | 10.30 | % | 9.72 | % | 8.92 | % | |||||||||
Tier 1 Risk-based Ratio(1) | 13.21 | % | 12.92 | % | 12.49 | % | 12.23 | % | 11.73 | % | |||||||||
Total Risk-based Capital Ratio(1) | 14.41 | % | 14.17 | % | 13.74 | % | 13.49 | % | 12.99 | % | |||||||||
Non-GAAP Disclosures(2): | |||||||||||||||||||
Tangible Book Value per Share | $ | 10.71 | $ | 10.32 | $ | 10.01 | $ | 10.03 | $ | 9.75 | |||||||||
Return on Tangible Equity (annualized) (3) | 9.42 | % | 9.87 | % | 9.76 | % | 10.09 | % | (54.34 | )% | |||||||||
Tangible Common Equity to Tangible Assets (3) | 8.54 | % | 8.19 | % | 8.00 | % | 7.83 | % | 7.30 | % | |||||||||
Efficiency Ratio (7) | 62.80 | % | 63.47 | % | 66.55 | % | 66.39 | % | 88.62 | % |
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) | Efficiency ratio is calculated by taking non-interest expense less the amortization of intangibles and gains on sale of OREO, as a percentage of total taxable equivalent net interest income and non-interest 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. |
Yadkin Financial Corporation | ||||||||||||||||||||||
Average Balance Sheets and Net Interest Income Analysis (Unaudited) | ||||||||||||||||||||||
Three Months Ended December 31, | ||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||
Average | Yield/ | Average | Yield/ | |||||||||||||||||||
Balance | Interest | Rate | Balance | Interest | Rate | |||||||||||||||||
INTEREST EARNING ASSETS | ||||||||||||||||||||||
Total loans (1,2) | $ | 1,353,039 | $ | 17,156 | 5.03 | % | $ | 1,369,884 | $ | 17,367 | 5.04 | % | ||||||||||
Investment securities | 322,969 | 2,122 | 2.61 | % | 325,578 | 1,599 | 1.95 | % | ||||||||||||||
Interest-bearing deposits & federal funds sold | 7,379 | 4 | 0.22 | % | 124,947 | 74 | 0.24 | % | ||||||||||||||
Total average earning assets (1) | 1,683,387 | 19,282 | 4.54 | % | (6) | 1,820,409 | 19,040 | 4.16 | % | (6) | ||||||||||||
Non-interest earning assets | 120,447 | 128,390 | ||||||||||||||||||||
Total average assets | $ | 1,803,834 | $ | 1,948,799 | ||||||||||||||||||
INTEREST BEARING LIABILITIES | ||||||||||||||||||||||
Time deposits | $ | 541,681 | $ | 1,442 | 1.06 | % | $ | 766,695 | $ | 3,203 | 1.66 | % | ||||||||||
Other deposits | 682,524 | 291 | 0.17 | % | 615,040 | 274 | 0.18 | % | ||||||||||||||
Borrowed funds | 109,655 | 421 | 1.52 | % | 104,320 | 570 | 2.17 | % | ||||||||||||||
Total interest bearing liabilities | 1,333,860 | 2,154 | 0.64 | % | (7) | 1,486,055 | 4,047 | 1.08 | % | (7) | ||||||||||||
Non-interest bearing deposits | 277,172 | 263,871 | ||||||||||||||||||||
Other liabilities | 12,385 | 11,209 | ||||||||||||||||||||
Total average liabilities | 1,623,417 | 1,761,135 | ||||||||||||||||||||
Shareholders' equity | 180,417 | 187,664 | ||||||||||||||||||||
Total average liabilities and | ||||||||||||||||||||||
shareholders' equity | $ | 1,803,834 | $ | 1,948,799 | ||||||||||||||||||
NET INTEREST INCOME/ | ||||||||||||||||||||||
YIELD (3,4) | $ | 17,128 | 4.04 | % | $ | 14,993 | 3.28 | % | ||||||||||||||
INTEREST SPREAD (5) | 3.90 | % | 3.08 | % |
(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 $60,000 and $95,000, 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 $43,000, respectively, of accretion for purchase accounting adjustments related to deposits and borrowings acquired in the merger with American Community. |
Yadkin Financial Corporation | ||||||||||||||||||||||
Average Balance Sheets and Net Interest Income Analysis (Unaudited) | ||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||
Average | Yield/ | Average | Yield/ | |||||||||||||||||||
Balance | Interest | Rate | Balance | Interest | Rate | |||||||||||||||||
INTEREST EARNING ASSETS | ||||||||||||||||||||||
Total loans (1,2) | $ | 1,333,647 | $ | 67,719 | 5.08 | % | $ | 1,399,590 | $ | 72,093 | 5.15 | % | ||||||||||
Investment securities | 342,156 | 7,970 | 2.33 | % | 343,137 | 7,761 | 2.26 | % | ||||||||||||||
Interest-bearing deposits & federal funds sold | 23,280 | 72 | 0.31 | % | 81,748 | 201 | 0.25 | % | ||||||||||||||
Total average earning assets (1) | 1,699,083 | 75,761 | 4.46 | % | (6) | 1,824,475 | 80,055 | 4.39 | % | (6) | ||||||||||||
Non-interest earning assets | 124,481 | 125,114 | ||||||||||||||||||||
Total average assets | $ | 1,823,564 | $ | 1,949,589 | ||||||||||||||||||
INTEREST BEARING LIABILITIES | ||||||||||||||||||||||
Time deposits | $ | 599,629 | 7,409 | 1.24 | % | $ | 813,035 | 14,176 | 1.74 | % | ||||||||||||
Other deposits | 669,452 | 1,139 | 0.17 | % | 617,724 | 1,550 | 0.25 | % | ||||||||||||||
Borrowed funds | 105,286 | 1,693 | 1.61 | % | 102,895 | 2,262 | 2.20 | % | ||||||||||||||
Total interest bearing liabilities | 1,374,367 | 10,241 | 0.75 | % | (7) | 1,533,654 | 17,988 | 1.17 | % | (7) | ||||||||||||
Non-interest bearing deposits | 261,510 | 244,137 | ||||||||||||||||||||
Other liabilities | 12,054 | 14,666 | ||||||||||||||||||||
Total average liabilities | 1,647,931 | 1,792,457 | ||||||||||||||||||||
Shareholders' equity | 175,633 | 157,132 | ||||||||||||||||||||
Total average liabilities and | ||||||||||||||||||||||
shareholders' equity | $ | 1,823,564 | $ | 1,949,589 | ||||||||||||||||||
NET INTEREST INCOME/ | ||||||||||||||||||||||
YIELD (3,4) | $ | 65,520 | 3.86 | % | $ | 62,067 | 3.40 | % | ||||||||||||||
INTEREST SPREAD (5) | 3.71 | % | 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 $238,000 and $253,000, 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 $37,000 and $55,000, respectively, of accretion for purchase accounting adjustments relate to deposits and borrowings acquired in the merger with American Community. |