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Yadkin Valley merger clears last hurdle

March 20th, 2008 · No Comments

With the approval of Cardinal State Bank’s shareholders, Yadkin Valley Financial Corp. (NASDAQ:YAVY) of Elkin can finalize its purchase of the Durham-based bank, probably by the end of this month.

Yadkin Valley hoped to buy Cardinal State (NASDAQ:CSNC) late in 2007, six months after the Surry County-based bank holding corporation offered $41.8 million in cash and stock. Accounting problems delayed the merger.

In an unrelated development, Yadkin Valley announced Tuesday that it will more than double its provision for loan losses to $2.5 million from $1.1 million. The company said that will cut the company’s 2007 earnings per share to $1.37 from $1.45.

The bank said its annual audit “determined that there exists a material weakness in Yadkin Valley’s internal control over financial reporting.”

The bank says it is remediating the problems and will release audited year-end financial results for 2007 by the end of March.

As of Dec. 31, Yadkin Valley had assets of $1.2 billion, up 8.1 percent for the year.

Yadkin Valley Financial operates 24 Yadkin Valley Bank and Trust Co. branches (those in Iredell and Mecklenburg counties are identified as Piedmont Bank) in North Carolina. The bank provides mortgage lending services through its subsidiary, Sidus Financial LLC in Greenville. Securities brokerage services are provided by Main Street Investment Services Inc., a subsidiary with four offices located in the branch network.

Tags: Finance

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