Yadkin Financial delays vote

First Posted: 2/24/2009

After some opposition to its merger with American Community Bank cropped up at its board meeting. The Yadkin Valley Financial Corp. adjourned its meeting with shareholders for two weeks.
Yadkins board did vote to recommend shareholders approve the merger on a 9-5 ballot, and the company said in a written statement Yadkin Valleys management team remains fully committed to the merger.
That management team, the statement said, believes the merger would offer several benefits to the company and its shareholders. Among those benefits are:
Expansion into the Charlotte and Mecklenburg County market through Americans presence there;
Expansion into South Carolina
Franchise enhancement through a larger branch network and an improved ability to serve customers, leading to an increase in asset size and economies of scale
A stronger competitive position
Broader geographic diversification that the company believes will reduce the credit risk concentration for both banks
The Yadkin Valley shareholders meeting, according to the written statement, is being delayed so that updated information can be provided to its shareholders. Among that information will be preliminary year-end financial results for both banks. That information was not available when the proxy material was sent to shareholders prior to the scheduled shareholder meeting.
American Communitys shareholder meeting to vote on the merger is still scheduled for Thursday.

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