Yadkin Valley Financial Corp. (YAVY) Announces the Closing of Capital Raise
Yadkin Valley Financial Corp., a holding company for Yadkin Valley Bank and Trust Company that offers consumer and commercial banking services in northwestern North Carolina, officially announced the closing of a $6.4 million capital raise.
“We are greatly encouraged by the extraordinary support we received from across our market area to include insiders, such as the Board, executives, and employees, and selected outside investors,” said Joseph H. Towell, President and CEO of Yadkin Valley Financial. “This capital raise is part of Yadkin Valley’s strategic plan to increase shareholder value, and we are very pleased with this progress in a difficult market.”
Executives, Directors, and employees collectively invested almost 50 percent of the funds raised at a price of $2.25 per share, which was the closing price for April 29, 2011. All other investors engaged at $1.98 per share, which represented a 10 percent discount for the 10-day weighted average price, ending April 29, 2011. The Board of Directors recommends to its shareholders to approve of a proposal that would allow the discounted price for employees, executives, and directors. All shareholders will vote upon the proposal at the Company’s annual meeting on June 23, 2011.
The Company said it will continue to monitor other capital opportunities as market conditions continue to improve. “We see this capital raise as a very positive step in our strategic plan,” Towell said. “We will continue to strengthen the Company in the next year as we focus on improving asset quality, continuing to rationalize operating expenses, growing net interest margin, and managing loan growth.”
For more information about the company, visit their company website at: www.yadkinvalleybank.com
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