Editor

ELKIN — Yadkin Valley Bank & Trust Co., which has branches in East Bend, Jonesville and Yadkinville, reported last week a 26 percent decrease in its first quarter income, declining to $2.9 million.

Yadkin Valley Financial Corp., the holding company for Yadkin Valley Bank, reported that its earnings decreased 9 percent, or 27 cents a share, compared to the same time period a year ago.

The bank attributed the decrease in earnings to a decline in net interest income of $860,000 and a prior year non-recurring gain of $481,490 from death benefits proceeds from a bank-owned life insurance policy.

As of March 31, the bank had total assets of $1.4 billion, an 18 percent increase. Total loans held for investment rose 16 percent to $1.04 billion and total deposits were up 15 percent to $1.11 billion. Most of the increases were attributed to the acquisition of Cardinal State Bank in Durham, which was completed in April. The move put the Elkin bank — which is primarily concentrated in Northwest North Carolina and the Piedmont Triad — into the target rich communities of the Raleigh-Durham markets, home to The Research Triangle Park and three major universities.

Bill Long, president and chief executive officer of Yadkin Valley Bank & Trust, said that the first quarter results were better than anticipated. Shares of the bank's stock, which are traded on the NASDAQ, have ranged in the last year from $14.50 to $19.25 per share.

According to SNL Financial, which analyzes the nation's top 100 banks, Yadkin Valley Bank accounts for 28.3 percent of the total banking deposits in the county.