Cardinal State Bank Reports Shareholder Merger Approval

DURHAM, N.C., March 20  /PRNewswire-FirstCall/ -- Cardinal State Bank (NASDAQ:CSNC), a North Carolina state chartered bank headquartered in Durham, North Carolina, announced that the Bank's shareholders have overwhelmingly approved its merger with Yadkin Valley Financial Corporation and Yadkin Valley Bank and Trust Company.  At a special meeting of shareholders held on March 19, 2008, approximately 97.8% of the Bank's common shares that were voted were voted in favor of the merger.

"We are very pleased with the support of our shareholders in our merger with Yadkin Valley," said John W. Mallard, Jr., President and CEO of Cardinal State Bank.  "We are planning to close the transaction prior to March 31, 2008.  We continue to look forward to joining forces with Yadkin Valley's fine organization."

Cardinal State Bank is a full-service community bank.  Founded in 2001, the Bank has three offices in Durham:  Homestead Market, Independence Park and Westgate Drive and one office in Hillsborough at 100 S. Churton Street. Plans call to open a branch in Creedmoor at 405 N. Main Street in April 2008.

This news release may contain, among other things, certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, (i) statements regarding certain of Cardinal State Bank's goals and expectations with respect to earnings, earnings per share, revenue, expenses and the growth rate in such items, as well as other measures of economic performance, including statements relating to estimates of credit quality trends, and (ii) statements preceded by, followed by or that include the words "may", "could", "should", "would", "believe", "anticipate", "estimate", "expect", "intend", "plan", "projects", "outlook" or similar expressions. These statements are based upon the current beliefs and expectations of Cardinal State Bank's management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. These forward-looking statements involve certain risks and uncertainties that are subject to change based on various factors (many of which are beyond Cardinal State Bank's control). 

DATASOURCE: Cardinal State Bank



CONTACT:  John W. Mallard, Jr., President and Chief Executive Officer,

Cardinal State Bank, [phone] or  

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