Shareholders' Equity

9 Months Ended

Sep. 30, 2013

Equity [Abstract]

Shareholders' Equity

Shareholders' Equity

Effective October 1, 2012, North Carolina passed the Banking Modernization Act, pursuant to Section 53C-4-7 of which, the Bank, as a North Carolina banking corporation, may pay dividends if such distributions will not reduce its capital below its applicable “required capital.” The Bank's “required capital” is that amount of capital required for the Bank to be deemed “adequately capitalized” under applicable federal regulatory capital ratios. Currently, the Bank exceeds each of these federal regulatory capital ratios. However, the Bank is currently prohibited from paying dividends to the holding company without prior approval of the Federal Deposit Insurance Corporation (the “FDIC”) and the North Carolina Banking Commissioner. In addition, the Company has committed to the regulators that the Bank will maintain a Tier 1 leverage ratio of 8.0%, which is higher than the statutory Tier 1 leverage ratio of 5.0% to be classified as well-capitalized. The Bank's Tier 1 leverage ratio is 10.9% at September 30, 2013 and exceeds committed levels.

As further explained in Note 16, Other Events, during the second quarter of 2013, the Company executed a one-for-three reverse stock split and amendments to the Company's and the Bank's Articles of Incorporation changing their names to Yadkin Financial Corporation and Yadkin Bank, respectively. Both of these events, along with the Company's new NASDAQ ticker symbol, YDKN, were effective on May 28, 2013. All references to net income per share and weighted average shares outstanding have been adjusted for the effect of this reverse stock split.