Yadkin Valley in N.C. Returns to Profitability

Yadkin Valley Financial (YAVY) in Elkin, N.C., tapped fee income to return to profitability.

The $1.8 billion-asset company earnings rose 56% from a year earlier, to $4.2 million. The company lost $25 million in the fourth quarter.

Noninterest income rose 63% from a year earlier, to $5.7 million, primarily because of mortgage-related revenue. Noninterest expense fell 3% from a year earlier, to $13.2 million.

Net interest income fell 6% from the first quarter of 2012, to $15 million. The net interest margin expanded 2 basis points from a year earlier, to 3.57%.

Total loans decreased roughly 6% from a year earlier, $1.3 billion. The loan-loss provision fell significantly from the first quarter of 2012, to $237,000.

The company also announced plans to change its name as part of a plan to unify its brand. Starting May 28, the company will be named Yadkin Financial, while its units will be Yadkin Bank, Yadkin Mortgage and Yadkin Wealth. The company is expected to change its ticker symbol to "YDKN."

In March, Yadkin Valley announced plans to seek shareholder approval for a three-to-one stock split the company hopes will make its stock more appealing to institutional investors, who are often barred from investing in low-priced shares.

Shareholders are expected to vote on the split at the company's annual meeting on May 23.