The corporate parent of the new Yadkin Bank generated $14.7 million in net income in the fourth quarter, or 46 cents per share, as the company’s loan portfolio grew at a 10 percent annualized rate.
“We posted our second consecutive quarter of double-digit loan growth,” CEO Scott Custer told analysts during a conference call.
Raleigh-based Yadkin, which was created in July via the merger of VantageSouth Bank and Yadkin Bank, reported its fourth-quarter results Monday before the markets opened. Because of accounting rules governing the merger, the fourth-quarter results aren’t comparable to the bank’s year-ago results.
Net operating earnings, which excludes certain non-operating income and expense, totaled $11 million in the fourth quarter compared to $11.4 million in the third quarter.
Custer called it “a very solid quarter.”
Net interest income declined to $40.8 million in the fourth quarter compared to $41.5 million in the third quarter, “primarily due to lower loan yields, partially offset by interest income from the company’s recent robust loan growth,” Yadkin said.
The provision for loan losses was $843,000, versus $816,000 in the third quarter. The increase primarily was the result of additional reserves for the expanded loan portfolio.
Yadkin recorded $332.6 million in new loans and commitments in the quarter.
Yadkin has 73 branches in North Carolina and upstate South Carolina that cater to more than 80,000 customers. The company, the largest community bank based in North Carolina, has $4.3 billion in assets.
Joe Towell, the bank’s executive chairman, noted that Monday was the one-year anniversary of the announcement of the merger between VantageSouth and Yadkin.
Now that the new Yadkin has two quarters of earnings under its belt, Towell added: “We like where we are right now...I think we are very well-positioned, both financially and on the soft issues of putting the team together.”
Custer said the bank is “on track” to realize the cost savings it expects to gain from the merger.
Yadkin shares were trading early Monday afternoon at $19.14, up 23 cents and slightly above the stock’s 52-week average.