Yadkin Valley Bank Elkin NC

Yadkin Valley Bank Elkin, NC was founded in 1968.  The company took $49MM in tax payer bailout funding, none of which has been paid back.  Their Texas ratio is 40%.

The company has $2.3B in assets, $1.6B in loans with $161MM in equity.

Problem loans consist of $76MM that are 30-90 days past due, $91MM are on non accrual with $25MM in OREO.

If you back out the $49MM tax payer loan from the equity position, equity is $112MM, as this must be payed back, this is debt not so-called “preferred stock”.  The $112MM can’t even support the problem loan base of $231MM.

My question is how are they going to pay the $49MM government loan back?  As they made $1MM in FY10, at that rate it should be paid back by 2060.

Hold on, they lost $20MM in Q2 2011.

At least the executives aren’t being financially strained.

Executive compensation:

William Long        $439K

Jan Holler               $190K

Joseph Howell       $245K

Spencer Crosby      $203K

This crew gets paid well for destroying this company

Not sure if I would be Long on William, he did a good a job at bankrupting this thing.

The market capitalization is $36MM, 17% of book.  The investors have about as much confidence in this company as the tax payer does in getting their money back.

Wow, they raised $6.5MM in a private placement

How is that going to help the $231MM in junk loans, not to mention the $49MM they owe the tax payer.

The $6.5MM is 2% of the bad loans plus the $49MM they owe the tax payer.

That should solve the problem!

This place is a disaster.

Who would even put money into this place.

Check out their new strategic plan?

They made $150k in the first quarter

At this rate, how long will it take them to pay back the tax payer $49MM, how about 80 years.

I would be yakkin if I had money in this bank

Is this your bank?

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