Thursday, January 24, 2013

Yadkin Valley takes loss to write down bad loans

Yadkin Valley Financial Corp. reported a significant loss in the fourth quarter as the bank used new capital to get millions of bad loans off its books -- a move executives called a "success" that will position the bank for growth.

The Elkin-based bank reported Thursday losing $25.3 million, compared with a loss of $88,000 the quarter before and a $2.2 million profit in the fourth quarter of 2011.

But Yadkin Valley was able to charge off $33.6 million of nonperforming loans and foreclosed real-estate -- much more than it usually does in a single quarter. In October, the bank said it had finished raising $45 million in capital for just that purpose.

The bank's stock rose more than 6 percent Thursday, closing at $3.28.

Yadkin Valley operates American Community Bank in Charlotte.