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Yadkin Valley Financial closer to acquiring Cardinal State

September 25th, 2007 · No Comments

Yadkin Valley Financial Corp. of Elkin (Nasdaq: YAVY), owner of Yadkin Valley Bank and Trust Co., and Cardinal State Bank (Nasdaq: CSNC) of Durham are one step closer to completing their proposed merger. On Sept. 19, the North Carolina Commissioner of Banks approved their application for merger. The Federal Deposit Insurance Corp.’s approval for the merger is later this month or in early October.

“These approvals clear the way for final preparations for our merger,” said John W. Mallard, Jr., president and chief executive officer of Cardinal State Bank. “The combined staff of the two banks is an exceptional team. We are working together to integrate the policies and systems of both banks to provide our communities with an exceptional local community bank.”

Plans call for completing the merger in December.

On June 14, the two companies announced the agreement whereby Yadkin Valley Financial Corp. and its wholly owned subsidiary, Yadkin Valley Bank and Trust Co., will acquire Cardinal State Bank. Cardinal shareholders will receive $17.62 per Cardinal share (a transaction with a total value of approximately $41.8 million based on stock prices at the time) or the equivalent value in shares of Yadkin Valley Financial Corp. stock.

Bill Long, president and chief executive officer of Yadkin Valley Financial, said, “Our merger with Cardinal State Bank brings a number of advantages to Yadkin Valley Financial. First, Cardinal has reached a point of critical mass where the momentum for quality asset growth and profitability are present. Second, (CEO and President) John Mallard has built a solid banking team at Cardinal that aligns culturally with our organization. Third, although we believe Yadkin’s existing markets are excellent, the demographics of Durham and Orange counties are even better, in terms of income, home values, education and employment. Cardinal also has secured a site for a future office in western Wake County, an affluent, high-growth area with some of the nation’s best demographic characteristics. Fourth, Cardinal’s operations complement Yadkin’s broader North Carolina franchise, roughly bounded by Interstates 77 and 40.

“When the merger is completed, Yadkin Valley Financial will be a $1.4 billion institution with 28 branches covering almost 200 miles of central North Carolina and a dozen of the state’s best counties.”

Tags: Businesses · Finance

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