Thursday, March 21, 2013

Yadkin Valley Financial says it's not backing down in Triangle

Though it is selling one of its few Triangle branches, Yadkin Valley Financial Corp. says it's not planning to pull back in the region.

Yadkin Valley Financial announced Thursday it is selling its branch in Creedmoor, which is 15 miles northeast of Durham, to the Oxford-based Union Bank & Trust Company. The branch had operated under the Cardinal State Bank name.

Yadkin CEO Joe Towell said in a press release that the sale was "consistent with the strategic geographic focus" of the bank. The $1.9 billion-in-assets company, based in Elkin, has most of its 34 branches in the crescent between Charlotte and Winston-Salem, with a few in the Boone/Blowing Rock area.

With the sale, Yadkin Valley will be left with three Triangle-area locations, in Durham and Hillsborough, under the Cardinal State name.

Despite citing the geographic focus, Yadkin Valley Financial says it is not planning any similar moves.

"We are pleased with our operations in the Triangle and we are optimistic about future growth in that market over time," spokeswoman Jill Sutphin told the Observer by email. She said the sale was a "unique opportunity."

Terms of the deal were not disclosed. The Creedmoor branch had about $23 million in deposits, according to the latest FDIC data, making it one of Yadkin Valley's smaller branches.

Union Bank will take on the deposits and the branch's loans, the press release states. The employees at the branch will become Union Bank employees. The deal is expected to close in the next 90 days.