Yadkin Financial posts lower third-quarter profit

Raleigh-based Yadkin Financial Corp. posted lower profit in the third quarter compared with the same period last year, as merger-related expenses weighed on the earnings of North Carolina's largest community bank.

Yadkin reported profit of $319,000 in the third quarter, or 1 cent per share, down from profit of $479,000, or 5 cents per share, in the same quarter last year.

Early in the quarter, Elkin-based Yadkin merged with Raleigh-based VantageSouth Bancshares, forming the state's biggest community bank. The merged bank holding company kept the Yadkin name and made Raleigh the headquarters.

The company said the merger helped boost its net interest income to $41.5 million, up from $19.9 million a year ago. The company also credited the merger with higher non-interest income, which rose to $9.1 million from $4.5 million.

But the merger also drove up expenses, particularly non-interest expense, which more than doubled to $48.2 million. That figure included $17.3 million in costs associated with the merger, including conversion expenses.

Yadkin Financial Corp. is the holding company for Yadkin Bank, which has 260 employees in the Charlotte metropolitan area. The bank's Small Business Administration lending operation is headquartered in Charlotte.

Yadkin Financial Corp. has $4.2 billion in assets.