Bankers From Russia and the Newly Independent States Embrace Credit Culture With Lending Practices Learned From U.S. Bankers

Banker Exchange Program Designed by the Financial Services Volunteer Corps Teaches Bankers From Russia Small- and Medium-Sized Enterprise Banking

Yadkin Valley Financial Corporation (NASDAQ: YAVY) in conjunction with Bank Management Internship and Training Program (BMIT) was happy to participate in a special project that provides classroom style training followed by an internship hosted at seven U.S. banks located throughout the country. The goal of the program is to provide the participants with a technical and a practical understanding of principles and standards for servicing small- and medium-sized enterprises (SME) and consumers to be applied back at their home institutions.

Bill Long, CEO, Yadkin Valley Financial Corporation, commented, "With only fifteen years distancing their country from a command economy, adapting banking practices to help further stimulate the transition toward a market-based economy is crucial. Empowering small- and medium-sized enterprises is understood to be essential for diversifying their economies, creating jobs, and building a middle-class. We are honored to participate in such a worthwhile endeavor."

This year's BMIT program focused on assisting the bankers with developing new products and services for small- and medium-sized enterprises. Topics to be explored included creating and expanding product offerings, mitigating risk and exposure, cross-selling of products, and learning how to analyze and design business processes. During the internships they shadowed bankers and witnessed their internal operations. They saw first hand how the aspects they learned in the classroom training are applied in day-to-day business, as well as how attention to personnel, customer and regulatory issues make these banks profitable institutions and trusted members of their communities.

Steve Robinson, Regional President of Piedmont Bank (A Division of Yadkin Valley Bank), said, "The visiting bankers program began June 12 with one week of classroom style training at Bank of America's (BOA) International Trade Center in Charlotte, N.C. This week-long portion of the program was led by seasoned professionals from top U.S. banks. Then, beginning the week of June 19, the visiting bankers participated in one-week internships. We hope our guests received as much benefit from participating in the program as we did by hosting them."

Following the internships, the bankers spent time in New York City for a final week of training. During this time each banker will develop a business plan and recommendations for adapting and implementing the new techniques, policies, and procedures learned.

Currently, Yadkin Valley Financial Corporation's primary activity is to hold the stock of Yadkin Valley Bank. Yadkin Valley Bank, a community bank headquartered in Elkin, North Carolina, serves customers from twenty-three full-service banking offices located in the piedmont, foothills and northwest mountains of North Carolina. Offices are located in Jefferson and West Jefferson (Ashe County), Elkin (Surry County), North Wilkesboro and Wilkesboro (Wilkes County), and East Bend, Jonesville and Yadkinville (Yadkin County) under the Yadkin Valley Bank name. The offices in Mooresville and Statesville (Iredell County) and Cornelius and Huntersville (Mecklenburg County) are operated under the assumed name "Piedmont Bank." Offices in Boone (Watauga County) and Linville (Avery County) are operated under the assumed name "High Country Bank." Sidus Financial, LLC, a wholly owned subsidiary with headquarters in Greenville, North Carolina, provides mortgage banking services to customers in North Carolina, South Carolina, Virginia, Alabama, Arkansas, Delaware, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, Tennessee, and West Virginia.