Yadkin Valley in N.C. Plans Reverse Stock Split

Yadkin Valley Financial (YAVY) in Elkin, N.C., is seeking shareholder approval for a three-to-one reverse stock split.

The share split is intended to make Yadkin's stock more appealing to institutional investors, who are often prohibited from investing in low-priced shares, the company said in a filing Monday. Directors approved the split March 21, and shareholders will vote on the initiative at an annual meeting on May 23.

The news was first reported in the Charlotte Business Journal.

The split would reduce the number of shares authorized to be issued to 33.3 million from the current 100 million. Of that total, 43.1 million are issued and outstanding. Yadkin's shares closed Monday at $4 apiece, up 1%.

Shareholders are expected at the annual meeting to elect directors, approve a stock awards program and ratify the appointment of the accounting firm Dixon Hughes Goodman.

The $1.9 billion-asset Yadkin has sold a branch and its reinsurance business over the last several months. It raised $45 million through a private auction in October.